EGX 30 Index: A Comprehensive Overview of Egypt's Primary Stock Market Benchmark
The EGX 30 serves as the premier barometer for the Egyptian equity market. Designed and calculated by the Egyptian Exchange (EGX), this index tracks the performance of the most significant securities in Egypt, providing investors and analysts with a clear snapshot of the country's economic health and market trends.
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The Evolution of the Index
Originally known as the CASE 30 Index, the benchmark has evolved alongside the Egyptian financial landscape. While the index officially began its tracking on January 2, 1998, with a base value of 1,000 points, the EGX began wider dissemination of the data on February 2, 2003. This information is shared through various channels, including data vendors, official publications, newspapers, and the EGX website.
To cater to international investors, the index is calculated in local currency and has been denominated in US dollars since 1998. The EGX officially began publishing the dollar-denominated version of the index on March 1, 2009.
How the EGX 30 is Calculated
The EGX 30 is not a simple average; it is a sophisticated measure based on market capitalization—the total market value of a company's outstanding shares—adjusted by the free float. The free float refers to the portion of a company's shares that are actually available for trading by the public, excluding shares held by promoters or governments.
The Calculation Formula
The adjusted market capitalization for any company within the index is determined by the following calculation:
- Number of listed shares × Closing price of the company × Percentage of freely floated shares.
Eligibility and Composition
The index is composed of the top 30 companies in Egypt, selected specifically based on their liquidity (the ease with which shares can be bought or sold without affecting the price) and overall activity levels.
To maintain the integrity of the index, the EGX enforces a strict eligibility rule: a company must have a minimum free float of 15% to be included. This requirement ensures that the index constituents are truly actively traded, making the EGX 30 a reputable and accurate reflection of the Egyptian market.
Key Facts
- Former Name: CASE 30 Index.
- Start Date: January 2, 1998.
- Base Value: 1,000 points.
- Composition: Top 30 companies by liquidity and activity.
- Weighting Method: Market capitalization adjusted by free float.
- Minimum Requirement: At least 15% free float for inclusion.
- Currency: Available in local currency and US dollars (USD version published since March 1, 2009).
| Feature | Detail |
|---|---|
| Calculation Entity | EGX |
| Number of Constituents | 30 |
| Primary Selection Criteria | Liquidity and Activity |
| Weighting Factor | Free-float adjusted market cap |
| Minimum Free Float | 15% |
Frequently Asked Questions
What was the EGX 30 previously called?
The index was previously known as the CASE 30 Index.
When did the EGX 30 start and what was its base value?
The index started on January 2, 1998, with a base value of 1,000 points.
How is a company selected for the EGX 30?
Companies are selected based on being among the top 30 in terms of activity and liquidity, provided they maintain a free float of at least 15%.
In what currencies is the index available?
The index is calculated in local currency and is also denominated in US dollars, with the dollar version being published since March 1, 2009.
What does "free float adjustment" mean in the context of the EGX 30?
It means the index weights companies based on the market value of only the shares available for public trading, rather than the total number of shares issued.