image

business forward

HC Securities, Contact Factoring cooperate to finance stock exchange investors by LE 400M - Egypttoday

FILE- Employees in the EGX following performance of the trading session on December 12, 2017

FILE- Employees in the EGX following performance of the trading session on December 12, 2017

CAIRO – 18 August 2021: HC Securities signed a cooperation agreement with Contact Factoring Company with the aim of financing HC clients trading in stocks and securities through margin trading, with a value of LE 400 million.

This cooperation provides the first discounting program for the purchase of securities on margin. It contributes to enriching the trading operations in the Egyptian Stock Exchange and expanding the base of traders, which will reflect on the growth of the Egyptian economy, according to a press release issued Wednesday.

It added that this cooperation comes in line with the decision of the Financial Regulatory Authority issued this year to allow factoring companies to provide quick loans to clients of securities trading companies who deal in margins.

Hassan Shoukry, Managing Director of HC Securities and Bonds Trading, confirmed that this agreement provides great opportunities to serve a broad base of shareholders in the stock exchange of all categories, by facilitating financing operations through the first factoring program for the purchase of securities on margin.

β€œThe brokerage firms were mainly dependent on their own resources to serve the margin dealers of their clients, however, in light of the interest in encouraging small investors to trade and spreading the culture of investment in the stock exchange among them, such agreements provide great opportunities to pump new money, whereby clients can trade in larger amounts, which is reflected in increasing liquidity in the market and achieving a better investment environment,” he added.

For his part, Saeed Zaatar, CEO of Contact Financial Holding Group, confirmed that the cooperation between the two companies aims to expand the base of clients and small investors to encourage trading in securities on the Egyptian Stock Exchange, as it reflects our confidence in the Egyptian economy and the structural reforms that have taken place in the Egyptian state.