EGX: Majority of Listed Companies Support Extending Trading Hours

More than half of companies listed on the Egyptian Exchange (EGX) support extending daily trading hours by one additional hour, according to Islam Azam, Chairman of the EGX, as the bourse seeks to boost liquidity and attract regional investors.

Azam said 54% of listed companies approved the proposal following a comprehensive survey conducted across the market. Under the plan, trading hours would be extended to run from 9:30 a.m. to 3:00 p.m., compared with the current schedule of 10:00 a.m. to 2:30 p.m.

Speaking to Asharq, Azam said the primary objective of the extension is to better align trading hours with UAE stock exchanges, particularly during Egypt’s summer time, in order to attract investors, especially Arab investors, during the early trading session.

In a separate development, Azam said there is agreement between the Financial Regulatory Authority (FRA) and the Egyptian Exchange to transform the EGX into a joint-stock company.

He explained that the move would enable the exchange to increase its capital when needed, particularly to finance development projects, without resorting to higher operating expenses.

The Egyptian Exchange has also signed a cooperation agreement with the 6th of October Investors Association, which includes members of the board of the General Union of Investors.

Under the agreement, EGX teams will conduct outreach programs to introduce companies to listing procedures and provide educational courses on investment fundamentals. Azam said many small and medium-sized enterprises (SMEs) affiliated with the association have expressed interest in listing, a move he said would help stimulate market activity.

Azam said the market is awaiting the listing of two large companies, one in the tourism sector and the other in healthcare, echoing earlier comments he made to Asharq earlier this month.

On the prospect of linking the Egyptian Exchange with other African stock markets, Azam said there is strong interest across the continent, but challenges remain, particularly differences in currencies and clearing and settlement systems.

He noted that African counterparts are working to overcome these obstacles. The African Securities Exchanges Association currently includes more than 20 markets, according to its official website.

Azam confirmed that the EGX is preparing to launch a new Sustainability Index next month, as planned, in cooperation with S&P Dow Jones Indices.

The index is expected to include around 30 listed companies that meet criteria related to corporate governance, environmental and social responsibility, as well as liquidity standards.

Azam also highlighted the strong performance of the Egyptian stock market this year, noting that the EGX 30 Index has surged by 60% since the start of the year, making it the best-performing stock index globally, second only to South Korea’s benchmark index.