Egypt’s stock Exchange (EGX) announced in a statement on Sunday that it would lift the limit on intraday share price moves to 20 percent starting from September,
The Egyptian bourse currently limits moves in share prices to 10 percent either up or down, after which the share is suspended. The 10 percent limit has been placed in place since February 2011 under measures introduced by Egypt’s Financial Regulatory Authority (FRA) to safeguard the financial market from violent fluctuations after the 2011 uprising.
Prior to then the limit on intraday share price moves had been 20 percent. All other precautionary measures introduced in 2011 had been repealed in 2014, including a pre-opening session to determine opening prices.
The EGX also on Sunday said its board of directors approved a new methodology for calculating the closing prices of shares, effective as of September 1.
The new methodology will be based on using a 30-minute moving-volume weighted average price (Moving VWAP) instead of the current VWAP methodology, which takes into account all the traded volume throughout a daily session to determine the closing prices of shares, the EGX statement added.
The EGX is also set to introduce the trade-at-close session which will enable participants, after a closing price is determined, to trade securities at that closing price during the last 30 minutes of the session.
