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The Egyptian Exchange (EGX) did its periodical review of the indices‐Jan 2021. The Indices committee reviewed the EGX30 methodology to maintain its stability and investment attractiveness and contribute further to improving the relative distribution of companies within the index.
The modified methodology requires the value of the adjusted market capitalization to be not less than the median of the adjusted market capitalization for the top 60 companies in terms of "liquidity". This is to ensure that companies with high liquidity are well represented, which also maintains the attractiveness of the index to invest domestically and globally.
The amendment seeks more stability in the components of the index and is in line with the best global practices, where companies will be ranked in terms of liquidity. This is followed by applying the buffer Rule, All companies ranked in the top 27 as per the liquidity screening process. Next, any current constituent companies remaining within the top 27 are re‐selected for index inclusion, in order by rank, until the 30 company target count has been reached. If the target count still has not been reached, the highest‐ranking non‐constituents are selected until 30 companies are included. This rule enhances the stability of the components of the index and limits the possibility of a large number of companies exiting the index during the single review. In addition of excluding companies that announced its liquidation, or disclosed its probability of liquidation.
Dr. Mohamed Farid, Executive Chairman of EGX, said that the amendment done on EGX30 methodology aims to have a more stable index, enhance its investment attractiveness, as well as contributing to improving the relative distribution rates of the companies that make up the index. This is done in line with international practices. He added that the new methodology of the index, includes a combination between liquidity and the size of the company, which is "market capital weighted by free float".
EGX50EWI index review excluded 10 companies, EGX70EWI index review excluded 19 companies, 5 of which joined EGX30, and the EGX100EWI index excluded 15 companies.
EGX’s Indices constituents are reviewed on semi‐annual base (1st of February and 1st of August) by EGX Index Committee, whereby constituents are changed (added or deleted), if necessary, based on the above mentioned criteria.
The Nile Index excluded two companies of 20, as the Nile Index methodology does not require a specified number of its constituent companies. Worth mentioning that EGX is in the process of developing a new index to be more reflective of the performance of the SMEs market.
Semi-Annual Review for EGX Indices
The following are changes in constituents for the EGX Indices which will take place as of the close of January 31, 2021.
EGX30 Index
|
No. |
List of Included Companies |
No. |
List of Excluded Companies |
|
1 |
Alexandria Mineral Oils Company |
1 |
Juhayna Food Industries |
|
2 |
Abou Kir Fertilizers |
2 |
Dice Sport & Casual Wear |
|
3 |
CI Capital Holding For Financial Investments |
3 |
Egyptian Iron & Steel |
|
4 |
Fawry For Banking Technology And Electronic Payment |
4 |
Cairo For Investment And Real Estate Development |
|
5 |
MM Group For Industry And International Trade |
5 |
Belton Financial Holding |
EGX50 Equally Weighted Index
|
No. |
List of Included Companies |
No. |
List of Excluded Companies |
|
1 |
MM Group For Industry And International Trade |
1 |
Egyptian Iron & Steel |
|
2 |
Egyptians Housing Development & Reconstruction |
2 |
Egyptian International Pharmaceuticals (EIPICO) |
|
3 |
Egyptian Financial & Industrial |
3 |
Orascom Development Egypt |
|
4 |
Cairo Poultry |
4 |
Six of October Development & Investment (SODIC) |
|
5 |
The Egyptian Company for Construction Development-Lift Slab |
5 |
Juhayna Food Industries |
|
6 |
Emerald Real Estate Investment |
6 |
Cairo For Investment And Real Estate Development |
|
7 |
El Nasr Clothes & Textiles (Kabo) |
7 |
Arabian Food Industries DOMTY |
|
8 |
Giza General Contracting |
8 |
Egyptian Chemical Industries (Kima) |
|
9 |
Mansourah Poultry |
9 |
Tenth Of Ramadan Pharmaceutical Industries & Diagnostic-Rameda |
|
10 |
Arab Cotton Ginning |
10 |
Orascom Construction PLC |
EGX70 Equally Weighted Index
|
No. |
List of Included Companies |
No. |
List of Excluded Companies |
|
1 |
ODIN Investments |
1 |
Housing & Development Bank |
|
2 |
Al Tawfeek Leasing Company-A.T.LEASE |
2 |
Suez Cement |
|
3 |
International Agricultural Products |
3 |
Extracted Oils |
|
4 |
Arab Real Estate Investment CO.-ALICO |
4 |
Alexandria Flour Mills |
|
5 |
Juhayna Food Industries |
5 |
MM Group For Industry And International Trade |
|
6 |
Cairo For Investment And Real Estate Development |
6 |
United Housing & Development |
|
7 |
El Ahli Investment and Development |
7 |
Alexandria Mineral Oils Company |
|
8 |
Belton Financial Holding |
8 |
Paint & Chemicals Industries (Pachin) |
|
9 |
Sharm Dreams Co. for Tourism Investment |
9 |
Qatar National Bank Alahly |
|
10 |
Engineering Industries (ICON) |
10 |
Arab Moltaka Investments Co |
|
11 |
Dice Sport & Casual Wear |
11 |
Arabian Food Industries DOMTY |
|
12 |
Emerald Real Estate Investment |
12 |
Cairo Oils & Soap |
|
13 |
Arab Valves Company |
13 |
Abou Kir Fertilizers |
|
14 |
EL Ezz Aldekhela Steel - Alexandria |
14 |
CI Capital Holding For Financial Investments |
|
15 |
Rowad Tourism (Al Rowad) |
15 |
Alexandria Containers and goods |
|
16 |
Lecico Egypt |
16 |
Faisal Islamic Bank of Egypt - In US Dollars |
|
17 |
Mansourah Poultry |
17 |
Maridive & oil services |
|
18 |
Universal For Paper and Packaging Materials (Unipack |
18 |
Egyptian Transport (EGYTRANS) |
|
19 |
Speed Medical |
19 |
Fawry For Banking Technology And Electronic Payment |
EGX100 Equally Weighted Index
|
No. |
List of Included Companies |
No. |
List of Excluded Companies |
|
1 |
Al Tawfeek Leasing Company-A.T.LEASE |
1 |
Egyptian Iron & Steel |
|
2 |
International Agricultural Products |
2 |
Housing & Development Bank |
|
3 |
El Ahli Investment and Development |
3 |
Alexandria Flour Mills |
|
4 |
Engineering Industries (ICON) |
4 |
Arabian Food Industries DOMTY |
|
5 |
Arab Valves Company |
5 |
Cairo Oils & Soap |
|
6 |
Rowad Tourism (Al Rowad) |
6 |
Suez Cement |
|
7 |
Mansourah Poultry |
7 |
Extracted Oils |
|
8 |
ODIN Investments |
8 |
United Housing & Development |
|
9 |
Arab Real Estate Investment CO.-ALICO |
9 |
Paint & Chemicals Industries (Pachin) |
|
10 |
Sharm Dreams Co. for Tourism Investment |
10 |
Qatar National Bank Alahly |
|
11 |
Emerald Real Estate Investment |
11 |
Arab Moltaka Investments Co |
|
12 |
EL Ezz Aldekhela Steel - Alexandria |
12 |
Alexandria Containers and goods |
|
13 |
Lecico Egypt |
13 |
Faisal Islamic Bank of Egypt - In US Dollars |
|
14 |
Universal For Paper and Packaging Materials (Unipack |
14 |
Maridive & oil services |
|
15 |
Speed Medical |
15 |
Egyptian Transport (EGYTRANS) |
Nile Index
|
No. |
list of Included Companies |
No. |
list of Excluded Companies |
|
|
|
1 |
International Business Corporation For Trading and Agencies |
|
|
|
2 |
Genial Tours |
