CAIRO: The first transaction under the newly applied block trading mechanism, announced Monday by EGX, totaled 2.1 billion EGP ($300 million.)
The deal involved 58.45 million Commercial International Bank shares at 36.34 EGP (US$ 5.11) per share, according to a Monday EGX statement.
Through the deal, Actis Capital LLP sold shares from its 6.5 percent stake in Commercial International Bank to Fairfax Financial Holdings Ltd.
Egypt’s stock exchange announced Sunday that the system of volume transactions, known as block trading, which was approved by EGX early May, aims to protect the market and its participants from “the influence of the change in prices” resulting from “huge trades” made at prices differing from market prices.
Block trading is intended for “transactions or deals valued at more than the daily average trading volume of the security shop and not less than 1% of the voting rights,” at a minimum of 1 million EGP, “or those processes in excess of 10 million EGP,” the statement added.