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The Egyptian Exchange (EGX) witnessed a significant boost from the beginning of the year till the 20th of August session. EGX30 rose by 39.1% while EGX70 and EGX100 rose by 21.6% and 27.6% consecutively. EGX20 capped recorded a 43.6% rise while S&P/EGX ESG that concerns the corporate governance recorded a 63.6% rise during the mentioned period.
It is worth mentioning that the weights of big companies comprising EGX30 were not an element governing the previously mentioned elevation. The stock exchange studied the impact of the absence of the three top weighted companies which are Commercial International Bank (CIB) Tala?at Mostafa Group (TMG), (Global Telecom was in the second rank before August 2014) and EFG Hermes (TMG was ranked third before August 2014) whose collective weights during the period were between 42% and 49.5% of the index. The index has been re-calculation without those companies on a daily basis since the beginning of the year and the results indicated that the performance of the index was to achieve a rise of 54.6% compared to the current returns on the index that was 39.1%. This denotes that the presence of these companies in the index was the reason for curbing the rising achievement and not the opposite.
Moreover, the study noted that the effect of the exclusion of the top weighted company in the index (CIB, representing 26% of the index) during the mentioned period would result in a rise of 36.8% compared to the current rise that is 39.1%. This ensures the limitation effect of the top weighted company on the index performance since the beginning of the year.
In line with this, EGX has held a comparative study on the performance of its different indices since 30/06/2013 till current that demonstrated the convergence of the performance of EGX30 with the other indices. The main index rose during that period by about 98.6%, compared to an increase of 117.7% for EGX20 capped index and a rise of about 83.1% for EGX70 and about 83.1% for EGX100 index. Additionally, S&P/EGX ESG recoded an increase of 140.3% during the mentioned period, which ensures the harmony in the indices performance and a common trend during the period of the study.
