Daily News Egypt

EGX raises transactions value minimum, sets closing price at EGP 30,000 as of Tuesday - Daily News Egypt

Advertising Area




Advertising Area




EGX raises transactions value minimum, sets closing price at EGP 30,000 as of Tuesday

Decision would have positive impact on trading volumes during upcoming period, says Aswaq managing director


Mohamed Farid, chairperson of the Egyptian Exchange (EGX), made a decision to raise minimum transactions value, setting the closing price at EGP 30,000 instead of EGP 10,000, in order to tighten control on market transactions on the EGX.

“This decision has been made because trading volumes registered great increases as of 2012,” Farid assured.

In this respect, the EGX chairperson declared that this decision will be applied as of the first trading session after 31 December, i.e. next Tuesday.

Hereby, Hosam Al-Ghayesh, managing director at Aswaq for Financial Investment, illustrated that the decision is supposed to have a positive impact on trading volumes during the coming period.

“It grants investors the ability to make rational investment decisions, led by actual strong trading volumes that can impact closing prices,” he explained.

As a result, investors will be able to have a clear vision about the movement of traded shares, according to Al-Ghayesh.

“The decision is linked to the effect of cash distribution on the market price of traded shares. Furthermore, it gives the chance for trading volumes and price limits to move according to the value of cash distribution, whether it is strong or weak,” Al-Ghayesh stated.

In this regard, the EGX chairperson assured that this decision—which was implemented last Sunday—enables a supply and demand mechanism to absorb the full impact of cash distribution on market prices of traded shares, without letting stock stop temporary limits or the previously activated price limits prevent the market from absorbing the impact of cash distribution.

“This supports the continuity of trading and offers a better environment to determine market prices according to supply and demand,” Farid affirmed.

Topics: EGX transactions
https://www.dailynewsegypt.com/2017/12/30/egx-raises-transactions-value-minimum-sets-closing-price-egp-30000-tuesday/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe