Egypt has on Sunday introduced exceptional measures to make it easier for listed companies to purchase treasury stocks. The move aimed at supporting the country’s stock market following a sharp decline in world bourses over the past few days.
According to the new rules – announced by the country’s financial regulator, companies will be temporarily allowed to notify the Egyptian stock exchange (EGX) on the day they intend to buy treasury stocks instead of having to submit three days’ notice.
These rules are expected to allure companies to purchase treasury stocks, which are shares that companies buy back for a period of time and re-sell them later.
“[The change] comes in light of the latest events and developments that the global financial markets have faced and the wave of sharp declines that Arab and foreign exchanges have witnessed,” the financial regulator announced in a statement.
Stock markets worldwide plunged on Friday, bringing total losses for the week to $5 trillion on growing concerns about the economic consequences of the coronavirus outbreak.
Egypt’s benchmark tumbled 6 percent on Sunday, its biggest intraday decline since November 2012.
Other Middle Eastern stocks also sank on Sunday, with Kuwaiti bourse dropping the most.
Source: Reuters
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