The Egyptian Exchange (EGX) has announced amendments to the timeline for announcing the results of the periodic reviews of its main market indices, in addition to revising the effective dates of such reviews. These amendments aim to enhance the efficiency and transparency of the index review process by providing investors, asset managers, and investment funds with sufficient time to prepare for the changes resulting from the periodic reviews.
The amendments apply to the EGX30, EGX70 EWI, EGX100 EWI, EGX33 Shariah, EGX35-LV, EGX30 Capped, EGX30 TR Indices, in addition to the Sector Indices.
As per the amendments approved by the EGX Index Committee, the results of the periodic reviews for the main market indices will be announced at least two weeks prior to their effective date. The implementation of the review results will take effect as of the first business day of March and September each year, instead of the first of February and August, respectively. This amendment reflects EGX ongoing commitment to continuously enhancing its index methodologies in line with international best practices.
The comprehensive semi-annual reviews, conducted in March and September, include the addition and deletion of index constituents, as well as the review of the Adjusted Weight Factor (AWF) of the constituents, for the EGX30 Capped, EGX70 EWI, EGX100 EWI, EGX33 Shariah, EGX35-LV, and Sector Indices. The revised compositions and weights will become effective as of the first business day of March and September, respectively.
The quarterly reviews, conducted in June and December, include the review of the Adjusted Weight Factor (AWF) for constituents of the EGX30 Capped, EGX70 EWI, EGX100 EWI, EGX33 Shariah, EGX35-LV, and Sector Indices, without any changes to the constituents. The resulting adjustments will become effective from the first business day of June and December, respectively.
The amendments also include the publication of a Pre-announced Calendar for each periodic review sufficiently in advance of the announcement of the review results. The calendar will outline the Review Period, the announcement date of the review results, and the effective date.
The EGX Index Committee also approved that these amendments shall come into effect as of the next periodic review.
