Flash Report /
Egypt

Egypt stock exchange rebalancing alert: Additions and deletions for EGX30

    Al Ahly Pharos Securities Brokerage
    14 January 2020

    New criteria for joining the EGX30

    The Egyptian Exchange reviews the constituents of its main index, the EGX30, on semi-annual basis (1st of February and 1st of August) to add new constituents or remove existing ones based on a new criteria which came into effect since February 2019. 

    Liquidity remains to be the most important factor and is measured by ranking the EGX constituents by the total trading value per month after excluding special transactions. Then companies are chosen based on the number of times they rank among the top 30 over the 6-month period, versus previously where stocks where ranked based on the total 6-month turnover. 

    If two stocks have the same rank, the company with the higher 6-months turnover is chose. In case they have the same or close turnover the company with the lower standard deviation between the average value traded and monthly turnover is chosen. 

    Stocks are tested for further filters like minimum number of trading days, which has been modified to 65% of the 6-month period (78 days) up from 50% (60 days) previously. While the minimum free float stays at 15%.

    Pharos’s expectations for EGX30 additions and deletions

    Additions:

    1. Porto Holding (PORT)
    2. Dice Sport & Casual Wear (DSCW)
    3. Ghabbour Auto (AUTO)

    Deletions:

    1. Oriental Weavers (ORWE)
    2. Abu Dhabi Islamic Bank - Egypt (ADIB)
    3. Egyptian Iron & Steel (IRON)

    Table: EGX30 constituents post-rebalancing 

    EGX30 CompaniesCodeSix-Months TurnoverNew WeightCurrent Weight

    CIB

    COMI EY Equity

    12,570,107,263

    41.7%

    38.1%

    Eastern Company

    EAST EY Equity

    2,615,687,023

    7.6%

    8.2%

    Egypt Kuwait Holding Company

    EKHO EY Equity

    2,210,496,077

    5.5%

    5.7%

    Talaat Moustafa Group Holding

    TMGH EY Equity

    2,024,747,653

    4.4%

    5.7%

    Egyptian Financial Group-Hermes Holding Company

    HRHO EY Equity

    2,140,626,981

    4.2%

    4.4%

    El Sewedy Electric

    SWDY EY Equity

    2,913,879,879

    4.1%

    4.8%

    Cleopatra Hospital

    CLHO EY Equity

    2,465,503,749

    3.0%

    1.6%

    Credit Agricole Egypt

    CIEB EY Equity

    706,040,296

    2.7%

    2.8%

    Ibnsina Pharma

    ISPH EY Equity

    953,745,875

    2.3%

    1.7%

    Medinet Nasr Housing

    MNHD EY Equity

    1,857,013,372

    2.2%

    2.4%

    Juhayna Food Industries

    JUFO EY Equity

    757,775,898

    2.0%

    2.5%

    Cairo Investment and Real Estate

    CIRA EY Equity

    958,285,541

    2.0%

    1.6%

    Orascom Construction Limited

    ORAS EY Equity

    934,682,536

    1.7%

    1.5%

    Six of October Development & Investment (SODIC)

    OCDI EY Equity

    1,245,200,491

    1.7%

    1.8%

    Telecom Egypt

    ETEL EY Equity

    1,802,320,341

    1.7%

    2.5%

    Qalaa Holdings

    CCAP EY Equity

    4,006,025,249

    1.7%

    2.2%

    Heliopolis Housing

    HELI EY Equity

    2,148,628,707

    1.5%

    1.5%

    Palm Hills Developments

    PHDC EY Equity

    3,286,258,606

    1.3%

    1.5%

    Sidi Kerir Petrochemicals

    SKPC EY Equity

    2,465,219,157

    1.1%

    1.1%

    Alexandria Mineral Oils Company

    AMOC EY Equity

    859,871,002

    1.1%

    1.2%

    Ghabbour Auto

    AUTO EY Equity

    649,506,710

    1.1%

     

    Ezz Steel

    ESRS EY Equity

    4,874,034,773

    0.9%

    0.8%

    Pioneers Holding for Financial Investments

    PIOH EY Equity

    2,216,202,922

    0.9%

    1.0%

    Orascom Hotels & Development

    ORHD EY Equity

    961,856,956

    0.9%

    0.9%

    Emaar Misr for Development

    EMFD EY Equity

    814,199,952

    0.7%

    0.8%

    Orascom Investment Holding

    OIH EY Equity

    3,055,804,853

    0.6%

    0.7%

    Egyptian Resorts Company

    EGTS EY Equity

    942,707,930

    0.6%

    0.6%

    Egyptian Chemical Industries (KIMA)

    EGCH EY Equity

    667,616,588

    0.3%

    0.4%

    Porto Holding

    PORT EY Equity

    1,362,570,381

    0.3%

     

    Dice Sport & Casual Wear

    DSCW EY Equity

    969,003,063

    0.1%

     

    Source: Pharos Holding