EGX finalizes semi-annual indices review to be applied on Tuesday

CAIRO – 29 July 2020: The Egyptian Stock Exchange management decided to adopt the amendments approved by the indicators committee within the framework of the semi-annual periodic review of market indicators, to be implemented on Tuesday, August 4.

According to a statement issued by the Stock Exchange Wednesday, the current review witnessed the circulation of the amendment made by the Stock Exchange to the process of selecting companies that make up the EGX30 index on "EGX 50 EWI EGX 70 EWI - EGX100 EWI" indicators, which includes listing companies that achieve high trading values ​​on a monthly basis instead of pricing in total trading values ​​at the end of the review period every 6 months.

Within the framework of the semi-annual review of the market indices, the benchmark  EGX30, as well as both the EGX 30 CAPPED index and the EGX30 TR index, which include the same companies of the EGX30 index, witnessed the exclusion of 5 companies from unqualified companies according to the current methodology, in exchange for joining 5 new companies to the index.

The EGX50 EWI index also witnessed the exclusion of 9 companies and the joining of new 9 new companies, while the EGX70 EWI index witnessed the exit of 14 companies, 5 of which joined the EGX30 index, while the EWI EGX100 index witnessed the exit of 9 companies in exchange for 9 new companies joining the index .

The process of periodic review of the sectoral indicators also ended in obstructing the sectoral indicator "Energy and Support Services", because the index did not meet the criteria and determinants for the formation of sectoral indicators, which is that the number of companies constituting the index is not less than 3 companies.

The Stock Exchange conducts two reviews every year for its indicators, the first ends in January, and work begins on the beginning of February (for the period 1/7 to 12/31), and the second review ends at the end of July and is implemented at the beginning of August (for the period 1/1 to 6/30).

The reviews monitor the change in the trading values ​​of the listed shares and the free trading rate, according to the methodologies for each indicator. The review includes the exclusion of unqualified companies, and the inclusion of companies that meet the criteria.