Egyptian Exchange

Egyptian Exchange

Organization type: Stock Exchange

Established: 1883, Alexandria; 1903, Cairo

Key members: Current chair, Dr. Mohamed Omran

Official site: www.egx.com.eg

Headquarters:

4A, El Sherifien St., Postal Code 11513

P.O. Box 358 Mohamed Farid, Downtown, Cairo

Tel: (202) 23928698 / 23921402 / 23921447

Hours: 10:30 a.m. to 2:30 p.m. every day but Friday and Saturday, as well as holidays.

 

HISTORY:

One of the oldest in the Middle East, the Alexandria stock market opened in 1883, dealing primarily in international cotton exchange. It was followed by Cairo’s market in 1903, centralizing trades that had been taking place in coffee shops or hotels. The markets merged in the 1940s and outperformed through the 1950s to be ranked fifth in the world.

In 1961, under President Gamal Abdel Nasser’s nationalization programs, the Central Bank of Egypt took over the markets, instituting polices that stifled exchange to the point of dormancy from 1961 to 1992. During these three decades only nine companies were listed on the market.

In the 1990s, the stock market was restructured and revived. Then-President Hosni Mubarak’s economic reforms reduced the size of the public sector and increased privatization, alongside arrangements with the IMF and massive debt relief. The Cairo and Alexandria markets elected a new board of directors and established a number of new board committees, culminating in 1998 with the main index CASE30, to be renamed the EGX30 in 2011.

Since the start of the 2011 Revolution, the main index, EGX30, has slowly recovered after shedding over 50 percent of its volume in 2011, with a high of 7210 index points in January 2011 and a low of 3587 that December. On Jan. 25, stocks plummeted 6.25 percent and dropped another 10 percent by Jan. 27. The market then closed for eight weeks, to reopen March 23 only to drop another 8.9 percent.

 

INDEX PROFILES:

Egyptian Exchange’s main indexes are EGX30, EGX70, and EGX100.

The EGX30, the main index, includes the top 30 companies in terms of activity and liquidity. The index is weighted by market capitalization and adjusted by free float; for a company to be included it must have at least 15 percent free float. Its value is calculated in local currency and denominated in U.S. dollars.

The EGX70 Price Index tracks performance of the top 70 companies, excluding the 30 measured on the EGX30. The index measures companies’ closing prices and is not weighted by market capitalization. It opened March 2009 but is retroactively calculated to Jan. 1, 2008.

The EGX100 Price Index, opened Aug. 2009, includes the combined performances of both EGX30 and EGX70 companies. Like the EGX70, this index measures companies’ closing prices and is not weighted by market capitalization.

Other indexes include the EGX20 Capped Index, which measures the top 20 companies, with constituent weight capped at 10 percent, and the Dow Jones EGX Egypt Titans 20 Index, which measures the international performance of the top 20 leading Egyptian stocks by free-float market capitalization, sales/revenue and net income in the Egyptian pound, the euro, and the U.S. dollar.

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