The Chairman of the Board of Directors of the Egyptian Exchange (EGX), Mohamed Omran, has announced that ten new companies will join EGX during the first half of 2015.
Mr. Omran revealed that 13 new companies have entered the year on the main market of the EGX and Nile Stock Exchange (NILEX), the market dedicated to small and medium enterprises. These companies have raised a total of 1.9 billion Egyptian pounds an equivalent of $ 265 million, an amount which is ten times bigger than the amount raised by firms that have joined the stock market in 2013. “I expect a big jump in the achievements of the market during next year,” said Mr Omran.
The president of the EGX, moreover, found that ETFs (also called ETF Exchange Traded Fund) will be officially launched by the end of January 2015. The ETFs are investment security funds replicating a market index.
They aim to replicate the changes of an index, both upwards and downwards. It is therefore passive management allowing the product to have a similar variation to that of its underlying without any strategic policy intervention in an attempt to outperform the index.