{"id":563806,"date":"2021-07-25T04:00:22","date_gmt":"2021-07-25T04:00:22","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/"},"modified":"2021-07-25T04:00:22","modified_gmt":"2021-07-25T04:00:22","slug":"only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/","title":{"rendered":"Only 5 companies from each sector to be included in EGX after August rebalancing"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-08\"><\/a> <strong>A maximum of five companies operating in each sector will be included on the EGX30 <\/strong><strong>index<\/strong>, under new regulations set to take effect at the start of August with the index\u2019s latest rebalancing, the exchange said in a <a href=\"https:\/\/ent.news\/2021\/7\/EGX-30-new-regulations.pdf\">statement (pdf)<\/a>. The change aims to make the index more diverse and more representative of the market, the statement reads, with companies selected for inclusion based on their free float and volume of transactions. <strong>Companies must also have a minimum issued capital of EGP 100 mn <\/strong>or its equivalent in foreign currency. The <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ea745e38-4504-4cd3-affa-33ad53b32eb0\">EGX30 is reviewed (or \u201crebalanced\u201d) twice a year<\/a>, at the beginning of February and August.<\/p>\n<p><strong>The changes should improve diversity across the index, making it more attractive to investors, <\/strong>EGX boss Mohamed Farid said in the statement. The new conditions also bring EGX30 inclusion requirements more in line with general listing requirements \u2014 which also impose an EGP 100 mn minimum issued capital \u2014 said Prime Holding CEO Mohamed Maher, who sits on the EGX indexes committee.<\/p>\n<p><strong>How might this affect current constituents? <\/strong>The only two sectors at risk of being scaled down on the index seem to be real estate and non-banking financial services, which count at least six companies each as <a href=\"https:\/\/www.egx.com.eg\/en\/CurrentIndexConstituntes.aspx?type=1&Nav=1\">constituents of the EGX30<\/a>. In the real estate sector, Emaar accounts for the smallest weighting of the index, at 0.67%, while Orascom Financial Holding comes in at 0.28% in the non-banking financial services sector.<\/p>\n<p><strong>The EGX30 had <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a0cb2af7-3aa5-460f-b75b-10581cc938f3\">undergone changes<\/a><\/strong><strong> to its inclusion criteria during its last rebalancing in February<\/strong> that were meant to make the EGX more attractive to foreign investors by giving more weight to companies with large market capitalizations. Under the new regulations, companies should have a freefloat market cap (the number of shares in freefloat multiplied by the share price) equal to or above the median average of the 60 most actively-traded companies. Constituents must also have a minimum 15% freefloat, be traded on at least 65% of trading days during the rebalancing period, and cannot have 30% of their shares or more in cross-holdings.<\/p>\n<p><strong>The <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/055aeba0-de62-4a61-a8d1-ade902737b05\">last rebalancing in February<\/a><\/strong> saw payments giant Fawry, investment bank and NBFS player CI Capital, consumer stalwart MM Group, state-owned Abu Qir Fertilizers, and Alexandria Mineral Oils Company (AMOC) enter the EGX 30. Education outfit CIRA, dairy producer Juhayna, Egyptian Iron and Steel, clothing manufacturer Dice, and Beltone Financial Holding all left the benchmark index.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A maximum of five companies operating in each sector will be included on the EGX30 index, under new regulations set to take effect at the start of August with the index\u2019s latest rebalancing, the exchange said in a statement (pdf). The change aims to make the index more diverse and more representative of the market, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":563807,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7303],"tags":[102,68,72],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-markets","tag-capital-markets","tag-egx","tag-enterpriseam","wpautop","entry"],"acf":{"mongo_id":"815451f3-a7af-48a7-a836-abec0fd9b1d2","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/7\/230.jpg","photo_position":"above","related_issue":[563790],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Only 5 companies from each sector to be included in EGX after August rebalancing - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Only 5 companies from each sector to be included in EGX after August rebalancing\" \/>\n<meta property=\"og:description\" content=\"A maximum of five companies operating in each sector will be included on the EGX30 index, under new regulations set to take effect at the start of August with the index\u2019s latest rebalancing, the exchange said in a statement (pdf). The change aims to make the index more diverse and more representative of the market, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-25T04:00:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/7\/230.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Only 5 companies from each sector to be included in EGX after August rebalancing\",\"datePublished\":\"2021-07-25T04:00:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\"},\"wordCount\":401,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/7\/230.jpg?fit=%2C&ssl=1\",\"keywords\":[\"capital markets\",\"EGX\",\"EnterpriseAM\"],\"articleSection\":[\"Capital markets\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/25\/only-5-companies-from-each-sector-to-be-included-in-egx-after-august-rebalancing\/\",\"name\":\"Only 5 companies from each sector to be included in EGX after August rebalancing - 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The EGX30 is reviewed (or \u201crebalanced\u201d) twice a year, at the beginning of February and August. Other indexes including EGX50 EWI and EGX70 EWI have\u2026","rel":"","context":"In &quot;SPEED ROUND: CAPITAL MARKETS&quot;","block_context":{"text":"SPEED ROUND: CAPITAL MARKETS","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/487.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":559645,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/31\/fawry-ci-capital-mm-group-make-it-into-egx30\/","url_meta":{"origin":563806,"position":1},"title":"Fawry, CI Capital, MM Group make it into EGX30","author":"enterpriseam admin","date":"31 January 2021","format":false,"excerpt":"Fawry is among five companies that have made it onto Egypt\u2019s benchmark EGX30 index after the bourse completed a rebalancing of the gauge under new inclusion criteria, the EGX said in a statement (pdf). The rebalancing will be reflected on the index as of tomorrow. Fawry became Egypt\u2019s first unicorn\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/1\/365.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564708,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/22\/what-does-it-mean-for-an-index-to-rebalance\/","url_meta":{"origin":563806,"position":2},"title":"What does it mean for an index to \u201crebalance\u201d?","author":"enterpriseam admin","date":"22 February 2021","format":false,"excerpt":"Enterprise Explains: Index rebalancing. Last month, the Egyptian Exchange released new criteria for inclusion in the EGX30 in a bid to make the benchmark index more attractive to foreign investors. The new criteria came into effect on 1 February, which is when the first periodic rebalancing of each year typically\u2026","rel":"","context":"In &quot;GO WITH THE FLOW&quot;","block_context":{"text":"GO WITH THE FLOW","link":"https:\/\/enterpriseam.com\/egypt\/category\/go-with-the-flow\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":559359,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/19\/egx30-gets-a-boost-with-new-criteria\/","url_meta":{"origin":563806,"position":3},"title":"EGX30 gets a boost with new criteria","author":"enterpriseam admin","date":"19 January 2021","format":false,"excerpt":"New criteria for inclusion in the country\u2019s most important stock index are rolling out next month. The changes aim to make the EGX30 more attractive to foreign investors by giving more weight to stocks with large market capitalizations that are more attractive to institutional investors. The changes would give less\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/1\/222.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543550,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/07\/you-can-now-short-buy-on-margin-and-day-trade-these-egx-stocks\/","url_meta":{"origin":563806,"position":4},"title":"You can now short, buy on margin and day trade these EGX stocks","author":"enterpriseam admin","date":"7 February 2022","format":false,"excerpt":"The EGX has shuffled its list of securities eligible for same-day trading, margin trading and short selling as part of its twice-yearly rebalancing, it announced in a statement (pdf) yesterday. The number of companies on the EGX\u2019s category \u2018A\u2019 list (pdf) \u2014 which permits same-day trading and margin trading with\u2026","rel":"","context":"In &quot;EGX&quot;","block_context":{"text":"EGX","link":"https:\/\/enterpriseam.com\/egypt\/category\/egx\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/81.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":558235,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/what-can-you-send-to-the-moon\/","url_meta":{"origin":563806,"position":5},"title":"What can you send \u201cto the moon\u201d","author":"enterpriseam admin","date":"2 August 2021","format":false,"excerpt":"The EGX has changed up its list of shares eligible for same-day trading, margin trading and short-selling as part of its biannual rebalancing, the bourse said in a statement (pdf) yesterday. The number of companies on the EGX\u2019s category \u2018A\u2019 list (pdf) \u2014 which permits same-day trading and margin trading\u2026","rel":"","context":"In &quot;REGULATION WATCH&quot;","block_context":{"text":"REGULATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/50.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=563806"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563806\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/563790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563807"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563806"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563806"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}