Egypt’s stock exchange to launch new index tracking government treasury bonds Tuesday

Egypt’s stock exchange (EGX) will launch on Tuesday a new index to track the listed and traded government treasury bonds, the bourse said in a statement on Monday.

The new index will comprise the most liquid bonds on the stock market. The market value of the bond will determine the weight of each issuance within the index.

The EGX statement added that the index will take into account both the return resulting from the change in the prices of the bond, and the return resulting from the accrued coupons. This will reflect the total return for the performance of the government bonds that make up the index.

In addition, the EGX will also launch four sub-indices for treasury bonds soon, which will be determined according to different maturity periods. The EGX will review these sub-indices monthly to exclude non-qualified bonds and include the bonds that would meet the criteria for joining the index, aiming to ensure a good representation of the Egyptian bond market.

The Egyptian bourse said it would publish the criteria for joining and cases of exclusion from the new index as well as all the statistical data related to the indices in its bulletins.

Treasury bond indices have been calculated as of January 3, 2021 at a value of 1,000 points.