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:
- Porto Holding (PORT)
- Dice Sport & Casual Wear (DSCW)
- Ghabbour Auto (AUTO)
Deletions:
- Oriental Weavers (ORWE)
- Abu Dhabi Islamic Bank - Egypt (ADIB)
- Egyptian Iron & Steel (IRON)
Table: EGX30 constituents post-rebalancing
| EGX30 Companies | Code | Six-Months Turnover | New Weight | Current 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% |
|