HC Securities Says to Launch EGP100 million Index Fund This Year

Egypt-based HC Securities & Investment targets the launch of its exchange-traded fund (ETF) within the few next months, according to chairman Hussein Choucri.

With a capitalization amounts to EGP 100 million, HC plans to launch its own ETF within the next few months, Choucri further told Amwal Al Ghad in a recent statement.

Last March, Egypt’s market watchdog, seeking to attract capital back to the stock market, released rules to facilitate the creation of index and real estate funds as well as amendments to margin trading rules.

Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority (EFSA), said the changes would increase liquidity in the market and draw more local and foreign investors.

ETFs, which seek to track the movements of a market index, are less risky than other funds because they invest across the market and are not based on a single fund manager’s view.