The Egyptian Exchange Has Launched the EGX30 Capped Index on February, 2019
Posted: Monday, 4 Feb 2019
The Egyptian Exchange has launched the EGX30 Capped Index on February, 2019.
The index is designed to measure the performance of the most traded companies in
accordance with the rules set for mutual funds, as is stated in Article 174 of the
executive regulations of the Capital Market Law (95) of 1992.
EGX30 Capped Index sets a maximum percentage on the weight of the constituents
that is determined by its adjusted market capitalization. Constituents are capped
quarterly so that the weight of each constituent will not exceed 15% of the total
weight. This would minimize the control of a limited number of constituents on the
overall performance of the index.
The Egyptian Exchange started publishing the EGX30 Capped Index, which has a base
date on 30 January 2003 and a base value of 1000 points. The index is designed to
capture the performance of the most active 30 companies in terms of traded value
and liquidity, while capping the weight of any constituent to a maximum of 15%.
EGX30 Capped constituents are rebalanced four times every year. At the 1st of
February and at the 1st of August, comprehensive rebalances are undertaken to
adjust constituents (added or deleted), if necessary, and to modify the Adjusted
Weight Factor of the constituents. The comprehensive review is accomplished based
on the above mentioned criteria and the results are presented to the EGX Index
Committee for discussion and approval. At the 1st of May and the 1st of November,
rebalances are undertaken to adjust only capping factors of the constituents without
any modification in the constituents.
Mohamed Farid, EGX chairman said that launching EGX30 Capped index is in line
with the requirements of the market participants, especially mutual fund managers
who have the desire to have a benchmark index that complies with the investment
He added that the methodology of setting maximum weight for the index
constituents is one of the approaches adopted by many international institutions like
Dow Jones, FTSE, MSCI and S&P.
For more information about EGX30 Capped Index, please check this link below;
Related Link: http://www.egx.com.eg/en/indexrulesmethodologyegx30-capped.aspx?Nav=13&