Cairo – Mubasher: Mubasher Financial Services, one of the five largest non-banking financial institutions in Egypt, seeks to attract new segments of customers to invest in the Egyptian Exchange (EGX) through raising financial and investment awareness.
Mubasher has launched a new brand named Du, the first of its kind in the Middle East, with an investment of more than EGP 360 million.
The Managing Director of Mubasher Trade, Mostafa El-Debawy, said that the newly-launched Du Trade platform allows individuals and institutions to directly trade in the bourse without the need for intermediaries.
It also encourages people aged 25-35 years old who know how to use mobile apps to make easy and wise investment decisions with the help of financial and technical reports and news on listed securities provided by Du Trade.
This comes in line with the strategic approach adopted by the Egyptian bourse which has recently allowed young people between 16 -21 years old to obtain a code for investment in the stock market by submitting a photocopy of the national ID without the need for documents from the guardian or trustee, El-Debawy noted.
Du Trade will help broaden the investor base in the Egyptian bourse because it’s an easy-to-use platform connecting between investors and the stock market without barriers.
This will also support the government’s efforts in achieving digital transformation and financial inclusion plans which include increasing savings and investments with the aim of recording a stronger economic growth rate.
In February, the Financial Regulatory Authority’s (FRA) Chairman, Mohamed Omran, issued a decision to allow youth aged between 16 and 21 to trade in the stock market with a maximum value of EGP 10,000.
Trading for those under the age of 21 will be limited to buying and selling stocks only and will not include margin trading and short selling transactions.
Data showed that 56% of traders in the bourse, amounting to about 215,000, own portfolios with a value less than EGP 5,000, while two-thirds of traders or about 253,000 own portfolios with a value less than EGP 10,000.
The Managing Director of Mubasher Trade said that the company plans to address many segments such as university students by holding seminars and discussion panels at Egyptian universities in order to raise awareness of investment in general and Du app in particular.
Through Du platforms, Mubasher aims to expand the investor base in the stock market by providing financial education and diversified products and services such as financial statement analysis as well as technical analysis to help customers better understand the market.
Mohamed Farid, Chairman of the Arab Federation of Exchanges (AFE), said that decision-makers at stock markets are currently working to speed up the process of introducing digital transformation and financial technology applications, especially for the stock market industry-related tasks, such as trading and disclosures.
He affirmed that financial technology applications will facilitate access to all financial services, which will contribute to achieving financial inclusion.
The chairman also revealed that the percentage of transactions conducted by individuals out of the total daily trading value increased, noting that this will require further development and modernisation of all systems that help individuals improve their investments and facilitate their access to them.