EGX launches its Treasury Bonds Index

Tuesday, 3 August 2021


The Egyptian Exchange (EGX) launches its Treasury Bonds Index on the 3rd of August, after the adoption of its methodology by the Indices Committee.  The new index is to complement EGX’s efforts for developing its indicators to measure the performance of securities traded.  This is done in accordance with international best practices and for the first time in the history of the Egyptian exchange.

EGX’s indices have been designed to include bonds with sufficient liquidity, reliable pricing and complete and easily monitored terms. The EGX Treasury Bond Index measures the market-value-weighted performance of local currency Treasury bond markets.

The Treasury bond index comprises 4 sub-indices to be launched shortly and are determined based on maturities.  The sub-indices allow investors to compare the performance of Treasury bonds with close maturities.  The Treasury Bonds index is reviewed monthly.  The review includes the exclusion of ineligible bonds and the inclusion of bonds that meet the criteria for joining the index in order to ensure good representation of the Egyptian bond market.  Treasury bond indices have been calculated starting from January 3, 2021 with a value of 1000 points.

EGX provides credible, transparent prices through its Government Fixed Income trading system “GFIT” through which competitive pricing is provided, the presence of a reference indicator allows the development of new financial products such as index funds on bonds, as the index is a good tool that financial institutions can target to issue ETFs.

The Egyptian Exchange publishes the criteria for accession and exclusion from the index and the method of calculating it, as well as all statistical data on the indicators on EGX’s bulletins and on its website allowing investors to track its rebalancing.