EGX: Lists Of Stocks Allowed For Specialized Activities (Feb 2019)

In the framework of EGX periodical review, both lists of stocks allowed for specialized activities are amended as follows starting from 10 February 2019 session: (attached detailed lists)

The First List (A): encompasses 89 securities, a list that allows the same day trading as well as the margin trading and its acceptance as collateral up to 100% of their market value; it is the active market, according to the following criteria:

1. The market capitalization of the free floated shares shall not be less than 2/10000 (two per ten thousand) of the total market capitalization of the free floated shares during the study period.
2. The number of trading days on the share shall not less than 95% of the number of market’s trading days in the during the study period.
3. The number of the brokerage firms trading daily on the share shall not be less than 10% of the average daily number of brokerage companies trading in the market
4. The average daily number of clients trading on the share shall not be less than 0.3% of the average daily number of clients trading in the market during the study period.
5. The turnover of free floated shares shall not be less than 20% during the study period, or the average daily value traded of the share shall not be less than 0.001 of the average daily traded value of the total shares.

The Second List (B): encompasses 50 securities, a list that allows the same day trading as well as the margin trading and its acceptance as collateral up to 80% of their market value and it shall be the average market activity, according to the following criteria:

1. The market capitalization of the free floated shares shall not be less than 5/10000(five per ten thousand) of the total market capitalization of the free floated shares during the study period.
2. The number of trading days on the share shall not less than 75% of the number of market’s trading days in the during the study period.
3. The number of the brokerage firms trading daily on the share shall not be less than 3% of the average daily number of brokerage companies trading in the market.
4. The average daily number of clients trading on the share shall not be less than 0.1% of the average daily number of clients trading in the market during the study period.
5. The turnover of free floated shares shall not be less than 10% during the study period, or the average daily value traded of the share shall not be less than 0.0005of the average daily traded value of the total shares.

The Third list(c): consists of other remaining securities that are not allowed neither for same day trading nor margin trading and it shall be the less active market activity

Deals are excluded when calculating those standards, and EGX may in some take the historic data when adding the company shares resulting from the restructuring in order to  determine the extent of the criteria referred to are met. EGX may exclude companies meeting the previous standards in cases of joint ownership of 30% or more of shares between companies completed the previous items, or in case the issuing company is not abiding by the disclosure rules and procedures. The third List (others): the rest of the listed companies that are not allowed in any activities of the specialized and be the least active market.