EGX revises index review schedule

The Egyptian Exchange (EGX) has revised the schedule for announcing the results of its periodic reviews of the main market indices. The changes are intended to enhance the efficiency and transparency of the review process and give investors, asset managers, and investment funds more time to prepare before the revisions take effect.

The changes apply to the EGX30, EGX70 EWI, EGX100 EWI, EGX33 Shariah Index, EGX35-LV, EGX30 Capped, EGX30 TR, and sector indices.

Under the amendments approved by the EGX Index Committee, the results of the periodic reviews will be announced at least two weeks before taking effect. The revised indices will become effective on the first trading day of March and September each year, instead of the first trading day of February and August.

The comprehensive reviews, conducted in March and September, will include the addition and removal of companies from the indices, as well as revisions to the weighting factors of constituent companies based on reviews conducted at the end of February and August. The changes will apply to the EGX30 Capped, EGX70 EWI, EGX100 EWI, EGX33 Shariah Index, EGX35-LV, and sector indices, and will take effect from the first trading day of March and September.

Partial reviews of the EGX30 Capped, EGX70 EWI, EGX100 EWI, EGX33 Shariah Index, EGX35-LV, and sector indices will continue to be conducted at the end of May and November. These reviews will adjust the weighting factors of constituent companies without changing the index constituents, with the revisions taking effect on the first trading day of June and December.

The amendments also introduce a pre-announced calendar for each periodic review, outlining the review period, the date the results will be announced, and the date the changes will take effect.

The EGX Index Committee approved the implementation of the amendments starting with the next periodic review.

Attribution: Amwal Al Ghad English