EGX launches its Equally Weighted Index EGX70EWI

EGX70EWI includes top 70 companies in terms of liquidity and activity after excluding
the constituents of EGX30 and deleting the current EGX70 Index. The Equal weight index
methodology is one of the approaches adopted by many international institutions. This
Index was adopted after deliberations held with all market participants. The Egyptian   
Exchange launches its equally weighted index EGX70EWI today, 02 February 2020.
The index calculation started on 2nd of January 2008 with value of 1000 points. Every
company in the EGX70EWI have a weight of 1.43% at each quarterly review.
The new Index increasing the chance of developing financial products such as Exchange
Traded Funds, as the index is a good tool for financial institutions to issue Exchange
traded funds, or mutual funds that could track the index performance passively “Index
Tracking”. The index is also in line with the requirements of the market participants,
especially mutual fund managers looking for a benchmark index that use equal weight
method. The index complies with the amended percentage mentioned in the executive
regulations of the capital market law and this would contribute to the promotion of the
of mutual funds’ performance.
Mohamed Farid Saleh, Executive Chairman of EGX said that the methodology for
calculating the new index is one of the approaches adopted by many international
institutions that issue indicators reflecting its companies’ performance which is a better
indicator of their price performance.

For more information about the EGX70EWI Index click on the link below: