Stock Exchange Cuts Number of Companies Listed on EGX30 

The Egyptian Stock Exchange Indices Committee approved the development of the EGX30 index methodology, as well as adding a new standard for listing companies in the rest of the stock market so that the indices conform to the listing rules, as well as maintaining their stability.

This comes in light of the continuous development of indicators’ methodologies, their extent and suitability to international best practices after consulting with various research houses in various brokerage firms and investment banks.

The new methodology is based on setting a maximum number of companies from the same sector, not to exceed five companies, as they are weighted based on the market capital in free circulation, which contributes to achieving more persity of the sectors that make up the market indices to comprehensively reflect on the circulation and performance of the market.

It also includes setting a minimum limit for the issued capital of the company to be listed in the main market indices, where it is required that the issued capital must be fully paid up and not less than EGP 100 million or its equivalent in foreign currencies, based on the latest annual or periodic financial statements accompanied by a comprehensive audit report and certified by the company’s general assembly.

Mohamed Farid, Chairman of the Egyptian Stock Exchange said that the build-out  of the methodology aims to integrate with the listing rules and achieve more stability for market indices, enhance investment attractiveness, as well as contribute to improving the persification of the sectors that make up the index, in line with the best international practices.

The new methodology will be applied during the current review process in early August.