The Egyptian Stock Exchange launches a new index for government bonds tomorrow

Tomorrow, Tuesday, the Egyptian Stock Exchange will launch an index for Egyptian treasury bills listed and traded on the Egyptian stock market, after the Exchange Indicators Committee approved the new index methodology, allowing the provision of investment products that follow these indices and enhancing the diversity of investment products available to all categories of investors, for the first time in the history of the Egyptian stock exchange.

The new indicators include the most liquid bonds, while the bond’s market value determines the weight of each issue within the index, in how much the index takes into account both the return from the change in bond prices and the return from coupons two, which reflects the total return for the performance of the government bonds that make up the index.

The indices of treasury bills are composed of a general index that will be launched tomorrow, Tuesday, and of 4 sub-indices that will be launched shortly, to be determined in The review includes the exclusion of non-qualifying securities and the inclusion of securities that meet the criteria for joining the index, in order to ensure a good representation of the Egyptian bond market. status were calculated starting from January 3, 2021 at a value of 1,000 points.

While the Egyptian Stock Exchange provides an electronic system for the listing of treasury bills through the “GFIT” electronic trading system for government bonds which provides competitive prices through it, the presence of a reference index allows the development of new financial products such as bond index funds, in as the index is a good tool that financial institutions can aim to issue investment funds traded on it.

This step represents a continuation of the EGX administration’s efforts to develop a trading system for government bonds, in through a notable and exceptional activity in the trading of government bonds.The new trading system developed by the management of the Egyptian Stock Exchange includes a mechanism of asking for price, Request for Quotation, mechanism that allows the principals dealer to submit requests for quotation of securities through the system, in addition to the “SCREEN QUOTATION” screen, which allows any large dealer to quote the security it intends to sell or buy, as well as continue trading through the convergence of buy and sell orders – and work is underway to activate it After obtaining the necessary authorizations – and many options that facilitate the process of communicating with dealer of this market, instead of the previous one, which is a screen for executing agreed trades outside the “Trade Reporting” system.

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