New closing price mechanism to come on 2 September + Farid gets new four-year term as EGX boss
MARKET NEWS- The new mechanism for calculating closing share prices will come into effect on 2 September, the bourse said in a statement (pdf) today. Approved by the EGX last week, a “pre-close auction” system will be introduced in a move designed to improve accuracy, increase trading volumes and boost foreign inflows into Egyptian shares. EGX shares will also be allowed to rise and fall by 20% during a single session, up from a current 10%, while the limit on intraday share price movements on Nilex shares are set at 10% compared to the current 5% limit.
Want to get technical? Farid explained to us how the “pre-close auction” and “MVWAP” will work last month.
IN OTHER EGX NEWS- The EGX chairman is getting another four-year term. EGX Chairman Mohamed Farid has been re-appointed for a second four-year term by Prime Minister Moustafa Madbouly, according to a statement (pdf) from the prime minister’s office. Farid was tapped as chairman of the bourse in August 2017, six years after serving as its vice-chairman (official bio). His return to government service was preceded by a five-year stint as CEO and chairman of private-sector economic think tank Dcode, as well as an adjunct at AUC and the Arab Academy for Science, Technology and Maritime Transport. We grabbed coffee with him back in 2019.
EARNINGS WATCH- Talaat Moustafa Group (TMG) Holding saw its bottomline after taxes and minority shareholders grow 23% y-o-y in 1H2021 to EGP 969.4 mn, according to the company’s consolidated financial statements (pdf). Revenues for the first six months of the year reached EGP 5.5 bn, up 27% y-o-y.
The EGX30 rose 0.14% at today’s close on turnover of EGP 1.76 bn (26.7% above the 90-day average). Local investors were net sellers. The index is down 0.98% YTD.
In the green: Qalaa Holdings (3.4%), Rameda Pharma (+3%), and MM Group (+2.7%).
In the red: Pioneers Holding (-2.3%), Cleopatra Hospitals Group (-1.9%) and Egyptian Resorts Company (-1.4%).