National companies overcome global challenges with strong profitsTruth Consultancy
Reda Mosallam, partner and general manager of “Truth” Economic and Management Consultancy Company, said that public shareholding companies represent the backbone of the stock market, as one of the most important elements on which the growth of economic development depends. He indicated that banks are the best performers compared to other public joint-stock companies due to the nature of its activity, the telecommunications sector is also one of the sectors that achieve good results due to the nature of its work and its good results, as well as insurance sector companies like banks and telecommunications with the difference in the size and value of profits achieved.
He pointed out that companies working in the field of construction, building and real estate did not achieve performance according to expectations, but it is expected to see improvement in their performance during the current year 2020.
Mosallam made several recommendations that the listed companies should apply to improve their results, which include commitment to implementing the new corporate governance system and guide issued by the Securities and Commodities Authority, and also applying the internal control system and guide and making sure it is fully and accurately implemented, along with the professional conduct system and guide.
He called for the necessity of tightening control over the work of the boards of the losing companies, which we consider to be the primary cause of the inappropriate results of those companies and to find a formula of understanding with the banking system in tolerating the outstanding debts, assisting the financially troubled companies, and providing more facilities according to binding contracts.