The Egyptian Exchange (EGX) plans to launch a new index to track the performance of small- and medium-sized enterprises (SMEs) during this year. The “Tamayoz” index will include the best SMEs in Egypt, based on the strength of financial and operational performances.
Mohamed Farid, Chairperson of the EGX, told Daily News Egypt in an interview that the new index is part of the authority’s strategy to stimulate the SMEs market in Egypt.
By next June or July, the EGX will adopt a new mechanism for determining the closing prices of stocks, either through the auction or the weighted moving average, he also said.
EGX is well prepared to receive new IPOs, however it would be difficult to predict the performance of the EGX during 2021, he said. The stock market’s performance now depends on the local and global economic situation and the COVID-19-related developments.
The work agenda of the EGX in 2021
The EGX management will focus on two main goals during the current year. The first is the launch of the “Tamayoz” index, which will track the performance of SMEs. The index will include the best SMEs in Egypt, based on the strength of financial and operational performances. It is part of the authority’s strategy to stimulate the SMEs market in Egypt.
The EGX also aims to upgrade its registered sponsors, re-evaluate the listed companies to define the distinct and regular ones, and classify the listed stocks according to several financial criteria. This includes the sales growth, profits, and dividends.
As for the second goal, the EGX aims to adopt a new mechanism for determining the closing prices of stocks, either through the auction or the weighted moving average by next June or July.
