How did the brokerage companies face in the face of the current market conditions?

The brokerage companies operating in the local market suffered, as a result of the negative conditions witnessed by the Egyptian Stock Exchange, which were severely pressured for their dependence mainly in their revenues on the values of trading in the market.

The heads of brokerage companies operating in the local market said that the conditions of the Egyptian Stock Exchange caused severe damage to the activities of the companies, which resorted to a set of measures to reduce the decline in profitability and maintain the continuation of the activity, the most prominent of which was the cessation of appointments, while some resorted to laying part of their employment, or closing someThe branches, the freezing of geographical expansion plans, or dispensing with some services provided, such as research, stock recommendations, or even the trading screen, as well as the war of burning fierce commissions.

The arrangement of brokerage companies at the end of last February witnessed the first 10 companies to obtain 61.2 %of the stock exchange transactions in that month, while 118 companies obtained the remaining 38.8 %.

The total trading of the Egyptian Stock Exchange last year recorded 1.015 billion pounds (the treasury bonds seized more than 50 %of them at a value of 544 billion pounds, while the share of trading in a market outside the cabin was 93 billion pounds, and the share of trading companies is 683 billion pounds only).

بلوم: البعض اضطر للاستغناء عن بعض الوظائف منها التحليل المالى والفني

Mohamed Fathallah, Managing Director of Blum Egypt Securities Trading Company, said that brokerage firms have suffered from a decline in revenues since 2011, as well as the low returns of investor protection fund that was supporting companies, poor trading, minimum commissions, and some companies resorting to warBurning commissions in light of strong competition to attract customers.

Fathallah pointed out that the concerted factors, some companies, especially the medium, were forced to dispense with some jobs, including financial and technical analysis departments, and some other jobs, given that this group of companies do not have a supporter, nor will they be able to pass the costs of the incident.Its customers.

Fathallah believes that the largest cake of revenue is distributed to the largest bigger brokerage companies, and there are some companies that have influenced safety and stopped their activities, while others have demobilized employment.

The monthly ranking of the brokerage companies in February witnessed the acquisition of the two sisters, the financial group of brokerage, and Hermes to mediate in the securities, at 25 %of the total market trading by 15.8 %and 9.2 %, respectively.

العربى الإفريقي: الكيانات الكبرى الأكثر تأثرًا

For his part, Yasser Al -Masry, Managing Director of the Arab African Securities Trading Company, said that the significant decline in the values of trades created a crisis for all brokerage companies, and perhaps the major companies in more ways, as a result of the high costs of these companies.

He pointed out that some companies- who preferred not to be named- held public societies to vote on the continuation of the activity after they lost 50 %of their capital, and other companies canceled the geographical expansion plans, and others that closed some branches.

ثرى واي: نتائج الربع الأخير من 2021 أطاحت بأرباح أول 9 أشهر من السنة

Rania Yaqoub, a member of the Egyptian Stock Exchange Board of Directors, Chairman of the Board of "Thari Way" for securities, says that all economic sectors have been strongly affected since the Corona crisis erupted, and accordingly, brokerage firms, which suffered severely, were affected by high costs, and the inability to pass these increases toThe prices of services provided to customers.

"Yaqoub" pointed out that the results of companies in the last quarter of 2021 were strongly affected in light of the pressures witnessed by the governor of senior customers, some of which were completely erased as a result of the speculation and marginal purchase, until small customers became the main source of revenues, stressing that what has been achieved fromProfits during the first nine months of 2021, were severely affected in the fourth quarter.

She also continued a rise against costs on many companies, and the weak ability of companies to pass these increases to customers, causing severe pressure that led some companies to close branches, or lay off the "cadres" workers, which creates fears of the weakness of companies' ability to keep pace with changes, most notablyThis technology with financial inclusion and technological transformation.

A member of the Egyptian Stock Exchange Board of Directors, Chairman of the Board of Directors of "Thari Way" for the circulation of securities, pointed out that within the framework of technology and mechanization operations, brokerage firms are obligated to implement the electronic bill system starting from February 15, 2022, and that the penalty for failure will be a fine of 100 thousand pounds,According to the notification mentioned by the Tax Authority in this regard.

"Yaqoub" indicated that the companies have applied through the Egyptian Securities Association "Ekka" and the Securities Division to request the Investor Protection Fund to support companies with the value of the electronic bill program, and that companies are waiting for the fund's response.

كايرو كابيتال: إيقاف أو اندماج أو استحواذات متوقعة على الكيانات الصغيرة

For his part, Ahmed Abu Hussein, Managing Director of Cairo Capital Securities, said that the market is going through difficult conditions for the current period, as a result of the decline in trading, which casts a shadow over companies ’revenues, and we hope that this period will be temporary.

Abu Hussein classified the companies to 3 types, the first is the major companies and their costs are high, pointing out that these companies will suffer from the decline in their revenues, and in the event of continued trading in the current situation they may turn into losses, and the second type of companies are medium, which will be able to achieve balance, givenBecause the size of its costs is less, while the suffering will be from the share of small companies, which may have to stop the activity or closure, or may become a target of integration and acquisition, stressing that the image is not completely clear.

The Managing Director of Cairo Capital Cylorests for Securities Trading, pointed out that some companies have stopped the new appointments in light of their affected costs, and in an attempt to reduce expenses, stressing what Jacob said about the companies' demand for the Investor Protection Fund to support the value of the electronic bill program.

أسطول: ملف الضرائب ووقف التعاملات أثر على نشاط المستثمرين

Esmat Yassin, head of trading individuals at a fleet company for securities trading, said that small companies and some medium companies resorted to stopping the new appointments, and reducing the number of employment they have, pointing out at the same time that the companies affiliated with holders or banks have succeeded in creating balances that secure them for some time.

Yassin pointed out that companies cannot raise their services commission to meet the high costs on them, due to the commission war that companies are witnessing among them.

The head of the trading of individuals at a fleet company for securities trading company said that the file of taxes and repeated stops for transactions contributed to concerns among the market investors that led them to reserve their dealings.

"Yassin" confirmed that some companies resorted to stopping the activity, as a result of the negative conditions in the market.

تايكون: إيقاف التعيينات والتسريح أحد الأسلحة لمواجهة زيادة المصروفات

Doaa Zaidan, deputy head of the technical analysis department at Taikon Securities Trading Company, said that companies are strongly suffering from slowdown and weak trading, which affected their revenues strongly.

She emphasized that some companies resorted to stopping appointments and contenting with the employment available to them, while others tended to reduce employment to the minimum possible.

An official in one of the brokerage firms - preferred not to be named or his position - said that the negative conditions in the market were reflected on his company personally, stressing that customers rarely call for operations.

He pointed out that the consequences of what the company witnessed last year was severely reflected on the trading of corporate as a result of the influence of customer portfolios, and their loss of the largest percentage of them, due to speculation operations, and the repeated suspension of transactions on some shares, which created reluctance to investors, and that the banks ’stopping the lending operations for marginal purchase is behindA strong effect on trading.