Cairo & Alexandria Stock Exchanges: For The First Time Open End Certificates On CASE30 Index Issued To Be Listed And Traded On International Markets

In line with the CASE ongoing plan to attract more foreign investments, ABN-Amro Bank together with CASE agreed to issue Open End Certificates on CASE30 Index to be traded on international stock markets. The bank will issue 500 thousand certificates in Euro to be listed and traded on 4 international stock markets, starting with Swiss Exchange, followed by Amsterdam Stock Exchange, Frankfurt Stock Exchange and Borsa Italiana, respectively.

These certificates will allow the foreign investors and international institutions to invest safely in the Egyptian stock market, avoiding the risk of foreign exchange currency fluctuations. In other words, these open end certificates will serve as a hedging tool for the risk averse foreign investors, who stay away from trading on emerging markets fearing the instability of the foreign exchange markets, as happened during South East Asia, Russia and Turkey crises.

By offering this tool, CASE would be the first Arab stock exchange whereby derivatives products were issued on its in-house made index, rather than international indices like MSDI, S&P/IFC or FTSE.

These certificates, which reflect the foreign confidence in the Egyptian market, are expected to enhance the liquidity and the depth of the market. Moreover, it will strengthen CASE position among the emerging markets in general and the Arab markets in specific.