CAIRO: Egypt’s stock exchange will close an hour early when it reopens on Sunday after a two-week closure, the stock exchange announced in a statement.
The market’s regulatory authority — along with the Egyptian Financial Supervisory Authority, Misr for Central Clearing, Depository and Registry, related companies and the Central Bank of Egypt — announced a set of new stringent measures that will be in effect for a week starting Sunday to be reevaluated at the end of the week.
Until the market opens, meetings will be coordinated between related authorities and companies to further clarify the new regulations, created in a bid to mitigate negative effects of the recent developments in Egypt, which resulted in the second largest drop in the history of the market when it closed on Jan. 27.
The main EGX 30 index closed 10.52 percent lower on Jan. 27 after dropping 6.14 percent a day earlier.
The measures are meant to safeguard the resumption of trading from a panic-driven selloff in the market, “which is a vital part of Egyptians’ investments and of the country’s wealth as well as to preserve credibility and sustainability of operations on the market.”
After reducing trading hours, it was also decided to cancel posting of the normal pre-session exploratory prices before trade opens.
Trading on stocks will be carried on within the pre-set price range, to be halted for a half hour in case of a 10 percent change in value. A 20 percent change in value will warrant a suspension of trading on that stock until the end of the session.
The price range of stocks on the Nilex will be reduced by 5 percent daily and maintained until end of the trading session.
A new price range will be set for the EGX 100 whereby trading will halt for a half hour if there’s a 5 percent change, and for as long as decreed by the chairman in case of a 10 percent change and suspending trade of that session.
The minimum capital requirement for brokerage firms has been reduced from 10 percent to 5 percent, giving them more liquidity.
Authentification procedures will be reduced on requests from companies to buy treasury stocks to be completed on the same day they are submitted at the capital market authority’s headquarters on Talaat Harb Street starting Feb. 9.
Employees of listed companies will be allowed to purchase shares in these company according to Article 19 of capital market regulations.
Moreover, the authority will accept orders for IPOs and fund recovery at the authority’s office in Emad Eddin Street on Feb. 9. Also, listed companies are to regularly disclose information on operations, finances and administrative measures.
Brokerage firms and companies operating in the capital market are required to keep the authority updated on their operational capacity ahead of the start of trading, publicizing any branches that may be closed and alternative offices for clients.
