EGX: New Mechanism For Closing Price To Come Into Effect By Thursday

The Egyptian Exchange (EGX) will start on Thursday applying the new mechanism to calculate the stock’s closing price. This comes after the EGX  had successfully completed the latest basic update on its current trading version “X Stream OMX”.  The latest update on the EGX trading system will work on executing the orders much faster alongside multiple features and advantages.

The latest update will also enable the EGX to apply the new mechanism of the stock’s closing price determinants which the Egyptian Financial Supervisory Authority (EFSA) had recently ratified. The new mechanism aims to control the state of volatility in the EGX-listed stocks’ prices.

Under the new mechanism, the amount of stocks whose average determines the closing price must be equivalent to at least 0.5 per cent of the stock’s average daily turnover over three months. The stocks must also be valued at over EGP 10,000 or its equivalent in foreign currency.

From his side, the EGX Chairman Mohamed Omran has said the latest updates come on the sidelines of the bourse’s objectives to keep up with the up-to-dates  and with the most recent techniques necessary for the market efficiency boost alongside the skills and competences upgrade.