Ahead of 2011 Uprising’s 3rd Anniversary, Egypt Shares Gain EGP990mn in Week

Ahead of the third anniversary of 2011 Uprising, the country’s shares attained gains totaled EGP 990 million in a week.

The capital market reached EGP 444.450 billion last Thursday, compared to EGP 443.460 billion at the end of a week earlier.

Accordingly, the Egyptian Exchange’s benchmark index EGX 30 index inched up by 1.26% this week, registering an increase of 89.76 points, ending Thursday’s transactions at 7233.38 points compared to 7143.62 points at the end of a week earlier.

The main gauge index registered its highest point on Thursday closing at 7233.38 points, where its lowest point recorded on Sunday at 7003.26 points.

Meanwhile, the mid- and small-cap index, the EGX70  rose by 0.14% closing at 565.15 points during Thursday’s session, compared to 564.34 points at the end of a week earlier. The price index, EGX100 also grew by 0.07% concluding by 959.67 points during Thursday’s session, against 958.93 points at the end of a week earlier.

Higher Turnovers & Traded Volumes:

Through the week, the trading volume has reached 1.3 million securities, compared to 1.302 million securities at the end of a week earlier. For the traded value, it hit EGP 4.2 billion against EGP 3.939 billion a week earlier.

EGX’s Traded Shares Vs. Burger King – Report

According to a report issued by the Economist earlier last week, in many emerging markets, the value of all the freely traded shares of firms that feature in the local MSCI share index (which typically tracks 85% of local listings) is equivalent to a single Western firm.

For instance, the value of the listed firms in the Egyptian Exchange (EGX) is equivalent to the global chain of hamburger fast food restaurants Burger King Worldwide Inc (BKW:New York).

The report  suggests that the emerging economies need deeper, more liquid markets- and investors need more perspective.

“Investors love the promise of high returns from emerging-market equities, but there are not many of them to buy. Especially if you exclude stakes held by governments, the market capitalisation of bourses beyond the rich world is tiny.” The report noted

In addition, the report suggests that shares trading in South Africa are the same as General Electric Co (GE:New York).

Bond Market Activation in Q2 – EGX

The EGX Chairman Mohamed Omran said Tuesday a bond trading platform in Egypt that has been 10 years in the planning could open for business in the second quarter of 2014.
Omran had said in October that trading via the electronic platform could start as early as the first quarter of this year if progress on the project continued without hindrance.

“We hope to activate the bonds market in the second quarter of this year. The file is now with the central bank to come to an agreement with banks on how to issue certain percentages of the bonds for trading,” Omran told Reuters.

New Rules for EGX-listed Companies on Feb 1

Egypt’s financial regulator will implement new regulations for companies listed on the stock exchange on Feb. 1 to help boost trading on the bourse and attract more investment, its chairman said on Wednesday.

A listed company will no longer need permission from the Egyptian Financial Supervisory Authority to split shares or have to call a general assembly prior to a capital increase as long as it complies with pre-set rules, EFSA head Sherif Samy told Reuters by phone.

The new rules will also make it easier for companies wishing to list on the stock exchange, Samy said.

Samy told Reuters in October that listing regulations were in “dire need” of change.