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Wednesday, 3 March 2021

FRA clamps down on stock splits, harassment in the workplace

The EGX30 fell 0.7% at today’s close on turnover of EGP 1.59 bn (8% above the 90-day average). Foreign investors were net sellers. The index is up 5.05% YTD.

In the green: Sidi Kerir (+0.7%), EKH (+0.6%) and CIB (+0.5%).

In the red: Pioneers (-7.6%), MM Group (-6.3%) and Orascom Financial (-5.9%).

MARKET NEWS- EGX-listed companies now need to make a strong case to justify stock splits and seek approval from the Financial Regulatory Authority (FRA) each time they’re planning to split the par value of their stock, according to an FRA decree (pdf) published this morning. The companies have to state “justifications” for the move, and can only call a general assembly meeting to vote on the stock split after obtaining the go-ahead from the FRA.

SMART POLICY FROM THE FRA- The authority has been working with the Planning Ministry and the National Council for Women to draw up a code of ethics to clampdown on harassment in the workplace. It issued a circular to companies today to follow an official charter that requires EGX-listed and non-banking financial services companies to have in place a mechanism to report incidents to a specialized committee that will be set up by the FRA.

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