EGX30 Index methodology developed

The new methodology aims for attracting more investments

  
Traders work at the Egyptian stock exchange in Cairo, Egypt February 13, 2018.

Traders work at the Egyptian stock exchange in Cairo, Egypt February 13, 2018.

REUTERS/Amr Abdallah Dalsh

ArabFinance: The Egyptian Exchange (EGX) completed the development of the EGX30 Index methodology, which covers the eligible companies for inclusion, as well as the standards for listing and delisting the firms, according to a January 18th emailed press release.

The new methodology aims for attracting more investments, while maintaining the index’s stability. This is besides improving the proportional distribution of the firms that are listed under EGX30 Index.

Chairman of the EGX Mohamed Farid stated that the new methodology will be officially operational as of February 1st.

The developments will be announced in detail during the last week of January, Farid noted.

The EGX carries out revisions for its indices twice a year, with the first being operational during the July 1st to December 31st period. The second review is applied during the period from January 1st until June 30th each year.

The EGX had published in 2019 a report on EGX30 Index methodology, which indicated that the benchmark index was launched on February 1st 2003. The index includes top 30 companies, based on liquidity and activity.

EGX30 Index is weighted by the adjusted free floated market cap, while it avoids “concentration on one industry/sector and therefore has a good representation of various industries/sectors in the economy,” according to the report.

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