Cairo (APD) - The new trading system of "Same-Day Trading" will start today for the first time on the Cairo and Alexandria Stock Exchange (CASE) but will be limited to only 17 listed shares.
The board of Capital Market Authority had approved early August adding a new trading system to Egypt's bourse which will allow selling securities that were bought early in the day in the same day's trading session.
The 'Same-Day Trading' requires adopting a new mechanism to allow settlement on the same day T+0 - which is applied in Egypt's bourse for the first time.
The 17 listed shares are: Egyptian Financial Group Hermes Holding Company, Arabia Cotton Ginning Company, Arab and Polvara Spinning and Weaving Company, Orascom Hotels and Development, Egyptian Media Production City, Orascom Construction Industries, Egyptian Company for Mobile Services, Vodafone Egypt, Egyptian American Bank, Orascom Telecom Holding, Commercial International Bank (Egypt), Al Ezz Ceramics and Porcelain Company, Misr Cement Company (Qena), Alexandria National Iron and Steel Company, Olympic Group for Financial Investments, Al Watany Bank of Egypt, and Misr Chemical Industries Company.
The Same-Day Trading will be applied daily to the 17 listed companies while other shares could be added later to this group of companies.
The CMA has previously set technical and financial requirements for brokerages in order to obtain the licenses for the same-day trading. As for the financial requirements, the brokerages should deposit LE 5 million at a custodian bank for settling transactions.
Hany Serry al-Din, president of the Capital Market Authority, said last August that the new mechanism would boost the volume of transactions that would lead to more liquidity in the market, increase competitiveness of the Egyptian bourse on the regional level, and lure more foreign investments to the bourse.
On the other hand, the value of transactions traded in Wednesday's trading session reached LE 740.8 million with 19.1 million shares trading hands. [EW-FC]
© APD (Arab Press Digest) 2005
