Egypt's EGX amends minimum limit on closing prices of shares

The new rules stipulate that the number of traded shares shall not be less than 0.5% of the daily average turnover of each share during the last three months

  
The Egyptian Exchange bell is seen at the stock exchange in Cairo, April 28, 2015. Image used for illustrative purpose

The Egyptian Exchange bell is seen at the stock exchange in Cairo, April 28, 2015. Image used for illustrative purpose

REUTERS/Mohamed Abd El Ghany
 

Egypt - The board of directors of the Egyptian Exchange (EGX) has issued a resolution regarding the amendment of the minimum value of shares' closing prices during auction and continuous trading sessions, the EGX announced in a statement.

This amendment is effective as of Sunday, September 19th, according to the statement.

The new rules stipulate that the number of traded shares shall not be less than 0.5% of the daily average turnover of each share during the last three months, as the value of these shares shall not be less than EGP 300,000 in the main market and EGP 150,000 in the small- and medium-sized enterprises (SME) market.

Moreover, the rules included that a closing price is calculated based on the conditional value, which represents the total turnover of a stock in the last three months or the number of trading days, multiplied by 0.5% and at a minimum of EGP 300,000 in the main market and EGP 150,000 in the SMEs market.

The conditional value is being calculated once every three months and a new closing price of a stock would not be calculated in case the actual value is less than the conditional value.

A new closing price will be set for the stock if its actual value equals or is higher than the conditional value based on a moving-volume weighted average price (Moving VWAP).

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