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The Egyptian Exchange (EGX) completed a comprehensive restructuring process of its market sectors based, in a step aiming to raise the efficiency and competitiveness of the Egyptian capital market.
Through this restructuring, EGX aims to provide sectors that reflect their activities as well as their subsidiaries’, and provide equal opportunities of a single-activity nature listed companies.
The restructuring resulted in adding sectors to have them a total of 18 instead of 17. Sector name of 53 companies changed, 24 companies moved to other sectors after studying their main activities, and 821 companies remained in their sector without modification.
Mohamed Farid Saleh, Executive Chairman of EGX, said that the results of this comprehensive restructuring will be active beginning of the year 2020.
Farid continued, that the coming period will witness the launch of sectoral indices for the newly created sectors adding that the restructuring methodology was a result of studying international markets and adopting the appropriate methodology for the Egyptian market.
The new sector added after the restructure are “Educational services” sector accommodating listed companies active in this field and “Shipping & Transportation services” sector accommodating listed companies operating in transport and shipping.
Some sectors where merged; “Media”, “Technology and Telecommunications” sectors as well as “Chemical” sector and “Basic Resources” sector.
“Building materials” sector became an independent sector from the “Construction” sector, and the “Construction and building materials” sector changed to become the “Contracting and construction engineering” sector. Also “Paper and packaging” sector became an independent sector from the “Industrial goods, services and automobiles” sector.
Finally, the “Financial services excluding banks” sector was renamed to be “Non-Banking financial services” sector, the “Home and personal products” sector was renamed to be “Textile and durables”, the “Gas and petroleum” sector become the “Energy and support services” sector, and the "Distributors and retail" sector become "Trade and distributors" sector.
