Fawry, CI Capital, MM Group make it into EGX30
Fawry is among five companies that have made it onto Egypt’s 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’s first unicorn last year, achieving a market capitalization of USD 1 bn. Its market cap has since nearly doubled to upwards of EGP 29 bn (USD 1.85 bn).
Who else is in? Investment bank and NBFS player CI Capital, consumer stalwart MM Group, state-owned Abu Qir Fertilizers, and Alexandria Mineral Oils Company (AMOC) are now EGX30 constituents.
And who’s out? Education outfit CIRA, dairy producer Juhayna, soon to be defunct Egyptian Iron and Steel, clothing manufacturer Dice, and Beltone Financial Holding have all rotated out of the benchmark index.
The rebalancing also reduced the weight of the EGX30’s heaviest constituents to now account for 36.8% of the index’s combined market capitalization, down from 44.4%, the EGX said. A more even distribution of weights was one of the key targets of introducing the new inclusion criteria, it added. Other changes that took place under the new methodology include shuffling the constituents of the broader EGX50 EWI and EGX100 EWI indices, as well as setting in motion a plan to scrap the Nile Index tracking SMEs companies listed on small-cap NileX in favor of a new, improved “Tamayoz” index. You can read up on the current methodology here (pdf).
The EGX30 is reviewed (or “rebalanced”) every six months, at the beginning of February and of August each year.