CAIRO: A Different number of analysts and observers of the capital market stressed the need of the Stock Exchange to sell shares of new companies, especially since they think the time is not right and the market is suffering from a shortage of liquidity. It will result in the failure of any attempt to introduce new companies to the market. Others called for the fast action to put up new companies to attract new investors and restore confidence in the market again. The head of research at Economic Group, Rania Nassar, said the time is not suitable for new companies because of cash shortage. Nassar said the market is currently suffering from lack of confidence of investors, whether local or foreign, because of political instability and security that will make the demand for new companies small. A financial analyst, Said Adel Muhsin, said the Egyptian Stock Exchange was lacking the past few years to present a major driving force in financial basis for global markets and to attract liquidity from around the world. Muhsin expected new companies to contribute to the recovery of the market and the return of individual investors. In his view, analyst Islam Abdel-Aty said new companies will see the market rebound greatly with the start of IPOs, which would restore luster of investing in The Egyptian Stock Exchange. Abdel Aty asserts new companies will send a message to Arab and foreign investors that the Egyptian market is still vital and dynamic. There is stability enjoyed by the capital market, and any other external factors do not affect in the course of the market.
