Ezz Steel Company

Best company to invest in stock market

(Ezz Steel Co.)

Contents

1.        Introduction about stock market        3

The Egyptian Stock market trading behavior        3

2.        Factors affecting this success.        4

Brief about EZZ eldkhela        4

Performance of the company        5

3.        Company profile over the past ten years        5

The Purpose Company        6

Effect of imports on long steel supply in Egypt:        7

The authority of the egyptian competition's        8

The ECA’s assessment of EZ’s distribution policy        10

Monopolization claims        11

4.        The expected performance over the coming ten yeas        14

5.        References        15

Abstract

Egyptian stock market establish in 1988 and started the activity by 1940. In 1959 major nationalization program adopted by the government which led to reduction in stock market until 1991. The reform program that imitated in between 90 and 91 contributed to revival and enhancement of the capital market.

After 40 years of stagnation the market the Egyptian exchange market awarded the best in competition organized by N.Y and considers the second best developing stock market in Africa back between the period 2008 – 2009.

Ezz steel company one of the most promising steel company in Egypt and middle east. The Huge capability of this company empowered it to control the market of steel and holding one of the top five stock market. The company establish in 1994 and began the production in 1996 with 3600 employee functioning these facilities.  

Objective

The aim of this paper is to prove that Ezz steel C. (EZDK) is the best company that should be invested in among the other companies that lead the Egyptian exchange market due to the many advantages that the company have which contribute to become one of the league of the stock market.

1. Introduction about stock market

The Egyptian stock market started the activity since 1888 since the inaugurated of Alexandria stock exchange. The establishment of Cairo stock exchange since 1903 and the activation for trading started in 1940s, the ranking compared to the world Egyptian exchange ranking was the fifth during this period in most active stock market.

The socialist policies which was adopted by the government during this period that led to major nationalization program in 1959, led to reduction in the activity of the stock market for 1961 to 1991. the exchange remained operating during this period but the trading was effectively inactive on the floor. Between 1990 to 1991, major economic reform program imitated by the government targeting the free market privatization and mechanism. The major dimensions which reform and targeted by the program toward the market led to revival of the capital market by the enactment of the capital market low No.95/1992. This low have contributed in generating great momentum and increased the market capitalization by the privatization and reform progressed(Profile, 2015).

The Egyptian stock market consider on the oldest market around the word, since it comprises two exchanges market which have recently integrated in order to allowing the investors to access both of them. After 40 years of stagnation the market have recovered again in 1990, and since that time the Egyptian stock market considered the premier capital market that serves its stakeholders among middle east and north Africa. The Egyptian exchange market awarded the best in competition organized by N.Y stock exchange in 2008, and considers the second best developing stock market in Africa back in 2009(Profile, 2015).

The Egyptian Stock market trading behavior

The information size and the direction negligible effect on conditional volatility, since the Egyptian stock market hold about 79 listed companies over a period from 1998 to 2005, and the result was present of noise trading  is suspected. According to study applied on Egyptian stock exchange about 26 securities in the period of 1998-2005 have establishes several regularities about the role of trading volume. The occlusion was lagged stock trading having little role to play and predict the nature return volatility(Aly, Mehdian, & Perry, 2004).  

1. Factors affecting this success.

Brief about EZZ eldkhela

Ezz Steel Company (EZ) is an independent producer of steel that offers products such as wire rods, welded wire, mesh, rebars and hot rolled coils. The company operates in north Africa and middle east region and primarily operate in Egypt, since the headquartered in Cairo. This company employs around 3600 employees. The company founded in 1994 and after one year it acquired Al Ezz rolling mills. This company began the production of long steel back in 1996. After for year of production the company listed its shares on the Egyptian exchange market and acquired a stake in EZDK steal company (EZDK). The production of the company started by flat steel in 2010. The company received a new license for the construction of direct reduced rion (DRI) after the company changed the name to Ezz steel co back to 2009(Metwally & Darwish, 2015).

The Company consider an Egypt-based independent steel producer in the North Africa, Middle East and Egypt. manufacturing plants operated by company the in Suez, Alexandria, and Egyptian interior at 10th of Ramadan City, Sadat City and.

This company produce direct reduced iron consist of modules and additional melt shop facilities. a revenues recorded of EGP19,397.8 million at the end of December 2014 with a decrease of 8.9 percent comparing to 2013 which consider a loss to the company and estimated about 73.2 million Egyptian pound to 1.604.5 million EGP back in 2013

In spite of the fact that the monetary vacillations that hit the economy range from blast and top periods, the Egyptian steel industry is one of the commercial ventures that stay unaffected by any financial changes. The fundamental explanation for this inspirational state of mind of the steel business is the passage of the steel in every fabricated item as cars and development part. The steel could be utilized either as conclusive items or middle person items(Metwally & Darwish, 2015).

The Egyptian steel industry is a standout amongst the most commercial enterprises in the Egyptian economy as it has a determined power for the monetary development and the financial advancement, Egypt positioned 27th among steel makers worldwide and third in the area behind Turkey and Iran.