EGX Develops Calculating the Closing Price Methodology

Monday, 2 August 2021


The Egyptian Exchange (EGX) is adopting amendments for its closing price calculation on September 2021.  The amendments is for the calculation of intraday closing price based on the 30-minute moving VWAP, instead of the current method which is based on quantities weighted average throughout the trading session.

The amendments include the adoption of Pre-close auction session, within the last half hour of the trading session.  If Pre-close auction results in a new closing price, it will be the only execution price during the Trade at close session.  If the auction does not result in a new price, the last instant closing price shall be considered, which is the average price weighted by the quantities for the last 30 minutes or the last closing price for the security. 

These amendments are in line with developed and emerging markets’ best practices, using bidding systems in determining their closing price. This process comes not only to keep up with the best implementations worldwide, but also to increase the rates of institutional investment.  Through monitoring foreign institutional investors’ needs, the need for the development of closing price that tracks the performance of index trackers follows the performance of market indicators.

The amendments also include the price limits to be 20% for the main market and 10% for the SMEs market throughout the day which include the pre-opening auction session, the continuous trading session and the Pre close auction.

The period until implementation in September 2021 allows time for all relevant parties to resolve their conditions with regard to the required technological infrastructure.