EGX 101

Kazem Ramadan
Modified on: Mon, 21 Mar, 2022 at 12:52 PM


What is the EGX?

Egypt's stock exchange, comprises two exchanges, Cairo and Alexandria, both governed by the same board of directors and sharing the same trading, clearing and settlement systems.

How do companies become listed on EGX?

Companies need to meet certain legal and financial requirements defined by the EGX. You can find the listing rules here.

How are prices of stocks determined on EGX?

Stock prices are determined by the forces of supply and demand, similar to any other commodity. When a stock is sold, the price for which the stock is purchased becomes the new market price. 

When a second share is sold, this price becomes the newest market price, etc.

What are the trading hours on EGX?

The official trading session is open from 10 am - 2:30 pm. However, a discovery session is open starting 9:30 am.

What is EGX 30?

The EGX 30 Index is a free-float capitalization weighted index of the 30 most highly capitalized and liquid stocks traded on the Egyptian Exchange. Liquidity is the most important criteria for selecting the constituents or companies that comprise EGX 30 Index.

What is EGX 70?

This index tracks the performance of the 70 active companies in terms of liquidity and activity, after excluding the 30 most active constituent-companies of EGX 30 Index. EGX 70 index measures the change in the companies' closing prices, without being weighted by the market capitalization and does not take into account the free float.

What is EGX 100?

This index tracks the performance of the top 100 active companies, including both the 30 constituent-companies of EGX 30 and the 70 constituent-companies of EGX 70. EGX 100 index measures the change in the companies' closing prices, without being weighted by the market capitalization and does not take into account the free float.

What's a Member Firm/Broker?

A member firm is licensed by the Egyptian Financial Regulatory Authority to trade on EGX. They act as agents by buying and selling securities on behalf of investors, since investors are not allowed to trade directly to the EGX trading system. They also provide advice to their customers based on their in house research capabilities.

What is the Financial Regulatory Authority (FRA)?

The Financial Regulatory Authority (FRA) is responsible for supervising and regulating non-banking financial markets and instruments, including Capital Market, Futures Exchanges, Insurance Activities, Mortgage Finance, Financial Leasing, Factoring, and Securitization.

FRA plays a pivotal role in ensuring stability and soundness of these markets and boosting their competitiveness to attract further domestic and foreign investments. FRA also works on reducing risks resulting from the lack of coordination, in addition to addressing problems emanating from the presence of different regulatory methods.

What is Misr for Central Clearing, Depository and Registry (MCDR)?

Misr for Central Clearing, Depository and Registry (MCDR) is a private company that handles the clearing and settlement operations and acts as the Central Depository for all securities in Egypt. The main shareholders of MCDR are EGX, banks, and member firms.

What are the taxation rules when it comes to investment and security?

No taxes are applied on capital gains for individuals, corporations, mutual funds and international funds. Taxes are applicable on cash dividends.

What are Global Depository Receipts (GDRs)?

Global Depository Receipts (GDRs) are negotiable certificates that usually represent a company’s publicly traded equity. They are also considered as an equity substitute for the local shares that can be used to list on a foreign stock exchange e.g. London, Luxembourg, New York, etc.

Are there any Egyptian GDRs listed on foreign exchanges?

Yes, several Egyptian companies have their shares traded on London Stock Exchange in the form of GDRs. You'll also find some companies with shares traded on New York Stock Exchange and Luxembourg Stock Exchange. You can find all traded Egyptian GDRs listed on foreign exchanges here.

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