Business Today Egypt (BT) July - August 2021

In Brief Egypt
EGX launches its Treasury Bonds Index
The Egyptian Exchange (EGX) launched its Treasury Bonds
Index on August 3, after the adoption of its methodology by
the Indices Committee.
The EGX clarified that the new index is to complement its
efforts of developing indicators to measure the performance
of securities traded. This is done in accordance with
international best practices, for the first time in the Egyptian
exchange’s history.
EGX’s indices have been designed to include bonds with
sufficient liquidity, reliable pricing as well as complete and
easily monitored terms. The EGX Treasury Bond Index
measures the market-value-weighted performance of local
currency Treasury bond markets.
The Treasury bond index comprises four sub-indices to be
launched shortly and are determined based on maturities.
The sub-indices allow investors to compare the performance
of Treasury bonds with close maturities. The Treasury Bonds
index is reviewed monthly. The review includes the exclusion
of ineligible bonds and the inclusion of bonds that meet
the criteria for joining, ensuring good representation of the
Egyptian bond market. Treasury bond indices were calculated
starting from January 3, 2021 with a value of 1000 points.
Egypt’s stock market develops new methodology for calculating shares’
closing price
The Board of Directors of the Egyptian Stock Exchange
(EGX) has activated full amendments to the Egyptian Stock
Exchange’s trading systems, related to the foundations and
its determinants of calculating shares’ closing prices, to be
implemented early next September.
The new methodology for calculating the intraday closing
price of shares is based on the 30-minute time-moving
“Moving VWAP” weighted average.
This is in lieu of the current method of weighted average
volumes over the duration of the daily trading session.
The new methodology also includes the creation of an
auction session to determine the pre-close auction’s closing
price before the end of the trading session and within the last
half an hour, provided that the stock exchange administration
sets the date of the auction session during the next week.
Moreover, if the auction session results in a new closing
Kuwaiti “Zain” invests $10M in merger of Swvl, Queens Gambit
Mobile Communications Company Zain announced that
it will invest $10 million in the recent merger of Swvl and
Queens Gambit, amounting to approximately 3 million
Kuwaiti dinars.
Zain said in a statement to the Kuwaiti Stock Exchange,
that Swvl and Queens Gambit entered into an agreement
to merge the business to become through Swvl, the first
company in the Middle East with an estimated value of more
than $1 billion to be listed on the Nasdaq Stock Exchange.
price, ownership transfers are allowed for a period
determined by the stock exchange before half past two and
after the auction session on the closing price resulting from
the auction session; this is called “Trade-at-close”.
In the event that the bidding session does not achieve a
new closing price, the transfer of ownership will be allowed
at the last “Moving VWAP” price during the Trade-at-close
session.
The amendments to shares’ closing price also included
unifying the daily rate of listed securities’ prices to be
throughout the entire day in entire sessions combined, which
includes the pre-opening auction session, the continuous
trading session and the auction session determining the
closing price as 20% throughout the entire day, which is the
last of the precautionary procedures applied after the 2011
revolution.
Dubai-based Swvl is the owner of an innovative and
sustainable mass transit platform, while Queens Gambit is
a special purpose acquisition company.
The Egyptian company Swvl was established by Mostafa
Kandil in 2017, as a smart service for mass bus transportation
in Egypt, and then expanded to reach other markets in the
region, and is headquartered in Dubai, while the company
plans to merge with Queens Gambit Growth Capital in a
deal to raise the company’s value to about $ 1.5 billion.
www.BusinessTodayEgypt.com
July-August 2021
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