FEAS Yearbook FEAS Yearbook 2021 | Page 56

The Egyptian Exchange

The Federation of Euro-Asian Stock Exchanges

About Company

Established: 1903

Address: 4A, El Sherifien St., Downtown, Cairo

Working Hours: 08:30 - 15:30

Contact Name: Heba Eissa

Email: [email protected]

Website: www.egx.com.eg

- Joined FEAS in 1998 -

Dr. Mohamed Farid Saleh

Chairman of FEAS

Executive Chairman of EGX

The year 2021 represented the year of recovery and preparation for future developments of The Egyptian Exchange (EGX). It witnessed the continuation of the pandemic difficult conditions that began in 2020 but with set goals in 2021 to recover, develop and prepare for the future.

This year witnessed the implementation of 3 initial Public offerings worth EGP7.95 Bln, in addition to EGP4.26 Bln new segments offerings, including the dual listing of a company in London Stock Exchange (LSEG). EGX succeeded in attracting 59,002 new investors by the end 2021 including 1,621 funds and institutions, 950 of which are foreign funds and institutions.

EGX30 Index achieved an increase of 10.18% on 2021 compared to last year. The most indicative gainer was the EGX30TR index, increasing by 13%, while the least was EGX70EWI increasing by 2.64%, and EGX100 EWI increasing by 5.08%. Market cap this year increased by 17.5%, reaching EGP 765 bln, compared to EGP 651 bln last year.  The market value of treasury bonds increased by 47% reaching EGP 2,406 bln, compared to EGP 1,641 bn at the end of 2020.

Total trading values exceeded trillion Egyptian Pounds during 2021, compared to EGP689 bn in 2020, including the trading values of listed companies, treasury bonds, over the counter (OTC) and deals.

Total trading value of bonds and treasury bonds during the year 2021 recorded a significant increase by 44% to reach EGP 544 bln, compared to EGP 378 bln achieved during the last year. By passing the pandemic’s negative impact on Capital Markets was a global challenge facing all exchanges. Dealing with the health precautions of WHO and the new norm was on top of the challenges facing EGX. Putting the health and safety of EGX’s staff on top was of utmost importance and the challenge was the continuation of business as requested with not the slightest change from our clients. Overcoming the pandemic’s drawback was essential for markets sustainability and development. Improving the trading

environment and developing the existing trading mechanisms to suit the new norm and improve our competitive position among emerging markets was a challenge. EGX applied the best practice related to trading systems to attract Egyptian and foreign investors. Most important of which was the introduction of the closing price auction session and amending the calculation of closing price to reflective the real price movement.

Development of the Egyptian SMEs market was another challenge that needed EGX’s management attention. EGX conducted a study in collaboration with European Bank for Reconstruction and Development (EBRD) to evaluate the current status of the market and measures to be taken for its development in line with international markets practices.

Another challenge that needed to be dealt with decisively was the problem of capital gains taxes because of the importance this issue represent to the present and future of the Egyptian Capital Market. EGX held intensive meetings with all parties including Ministry of Finance and market parties to closely discuss this issue. We were able to develop a proposal to be presented to Egyptian Prime Minister, and as a result the government adopted a number of incentives for the market on November 10, 2021.

These trading reforms, as well as the continued approach

Year in review

SMEs Development Project

Development of Egyptian SMEs market

Resilience

EFG Hermes Holding

Project of the year

Event of the year

Word of the year

Member of the year

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