Egypt’s Financial Regulator Says Same-Day Trading Will Return May 23

EGX
By Yomna Yasser

Egypt’s financial regulator announced on Tuesday that the same-day trading mechanism which is known as T+0 will come into effect as of the trading session of Thursday May 23rd, 2013.

The Egyptian Financial Supervisory Authority (EFSA) has decided to resume the T+0 Settlement mechanism by May 23rd, looking forward to providing more liquidity for the market.

The EFSA stated that this comes in the wake of holding experimental sessions by the Egyptian stock exchange (EGX) and Egypt’s Central Clearing, Depository and Registry house (MCDR) to verify the market’s readiness for the resumption of the same-day trading mechanism.

It is worth noting that the Egyptian Exchange (EGX) management halted the same-day trading mechanism following the January uprising in 2011 as uncertainty swept the market.

Trading settlement in Egypt’s stock market is currently undertaken using a T+1 system for government bonds and a T+2 system for all other securities.

Under the T+0 mechanism, traders will be allowed to sell any portion of their available stocks and then buy them again at the same session.

Boosting Market Liquidity:

Dr. Ashraf El-Sharkawy – the Chairman of the Egyptian Financial Supervisory Authority (EFSA) – further noted that the T+0 settlement mechanism will contribute to boosting the volume of trades by 30-40% in the Egyptian Exchange (EGX) which currently incurs severe liquidity shortage.

Mohsen Adel, Vice Chairman of EG-Finance explained that the re-launch of the same-day trading mechanism (T+0) will represent the return of another financial instrument necessary to add more vitality to the market.

Firms To Practice Same-Day Trading:

On April 14, the Egyptian Exchange’s management has released the list of the EGX-listed firms qualified to practice a number of bourse systems, notably the same-day trading mechanism (T+0) which is expected to return to the Egyptian market very soon.

In the EGX’s list, there are around 102 listed firms.

The EGX’s list for the firms ready to practice the T+0 Mechanism includes;

1.  Ismailia National Company for Food Industries (Foodico) (INFI.CA),

2.  Cairo Poultry (POUL.CA),

3.  Mansourah Poultry (MPCO.CA),

4.  Egypt for Poultry (EPCO.CA),

5.  International Co. for Agricultural Crops (IFAP) (IFAP.CA),

6.  ASEC Company for Mining (ASCM.CA),

7.  Arabia Investments, Development (AIND.CA),

8.  Delta Construction & Rebuilding Co. (DCRC.CA),

9.  Upper Egypt Contracting (UEGC.CA),

  1. Giza General Contracting & Real Estate Investment (GGCC.CA),
  2. Egyptian for Developing Building Materials (LIFT SLAB MISR) (EDBM.CA),
  3. El Nasr For Manufacturing Agricultural Crops (ELNA.CA),
  4. Delta Sugar Co. (SUGR.CA),
  5. Sharkia National Food (SNFC.CA),
  6. Middle Egypt Flour Mills (CEFM.CA),
  7. Egyptian Starch & Glucose (ESGI.CA),
  8. National Maize Products (NCMP.CA),
  9. Juhayna Food Industries (JUFO.CA),
  10. Arab Cotton Ginning (ACGC.CA),
  11. Arab Polvara Spinning & Weaving (APSW.CA),
  12. El Nasr Clothing & Textile (KABO.CA),
  13. Rakta Paper Manufacturing (RAKT.CA),
  14. Alexandria Mineral Oils Co. (AMOC.CA),
  15. Sidi Kerir Petrochemicals (SKPC) (SIDPEC.CA),
  16. Universal for Paper and Packaging Materials (Unipack) (UNIP.CA),
  17. GlaxoSmithKline (BIOC.CA),
  18. Egyptian Chemical Industries (Kima) (EGCH.CA),
  19. Misr Chemical Industries (MICH.CA),
  20. Extracted Oils (ZEOT.CA),
  21. Egyptian Financial & Industrial (EFIC.CA),
  22. Kafr El Zayat Pesticides and Chemicals (KZPC.CA),
  23. El Ezz Porcelain (Gemma) (ECAP.CA),
  24. Ezz Steel (ESRS.CA),
  25. South Valley Cement (SVCE.CA),
  26. Sinai Cement (SCEM.CA),
  27. Egyptian Iron & Steel (IRON.CA),
  28. Arab Valves Company (ARVA.CA),
  29. Engineering Industries (ICON) (ENGC.CA),
  30. El Nasr Transformers (El Maco) (NASR.CA),
  31. Electro Cable Egypt (ELEC.CA)
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