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A new EGX index soon?

EGX mulls establishment of a new index combining sustainability and Islamic finance

Following the launch of the Egyptian Stock Exchange’s first Shariah-compliant index in June, the EGX is mulling the establishment of another index that combines sustainability and Islamic finance, and is working to increase the capital of companies listed on the main market with capital below EGP 100 million over the next year, the bourse’s Chairman Ahmed El-Sheikh said in an interview with Asharq.

El Sheikh says the move is aimed at enhancing liquidity and attracting new investor segments.

The main market of the EGX has about 40 companies with capital below EGP 100 million, including firms like “Domty” and “Misr Duty Free Shops,” Asharq notes.

New listing requirements?

El-Sheikh also noted the bourse is considering an amendment to listing and delisting rules for companies on the market.

The amendments under consideration are aimed at ensuring that the calculation of the free float percentage — which shows the percentage of total shares a company has available for trading — is linked to a percentage of the total market capitalization of the market, rather than a fixed percentage as is currently applied.

As things currently stand, the EGX stipulates that a firm’s free float percentage be no less than 10% of its shares.

El-Sheikh notes that the new amendments could provide greater flexibility for large companies in the EGX.

In other news:

El-Sheikh also noted that there are ongoing discussions with the Financial Regulatory Authority to raise the minimum market cap for the small and medium enterprises market to EGP 25 million Instead of the current requirement of EGP 1 million.

MICH reports 14% profit hike in Q1 FY 2024-25

Misr Chemical Industries Company (MICH) recorded a 14% YoY hike in profits to EGP 155.9 million for the first quarter of the current fiscal year (FY 2024-25) on the back of an increase in its products’ selling prices.

Revenues:

The company’s topline saw an 8.3% YoY uptick to EGP 260.3 million during the period.

Remember, this comes after a good performance last year:

MICH saw its net profits increase 22% YoY during the period from July 2023 to June 2024 (FY 2023-24), accumulating EGP 667.4 million on the back of an increase in investment income, gains on currency differences, and a slight increase in product prices and production capacity.

Nahr Al-Khair raises its profits 69% YoY in 1H

Al Khair River For Development Agricultural Investment and Environmental Services Co. (Nahr Al-Khair) recorded a 69.1% YoY growth in net income during the first six months of the year to EGP 30.53 million.

Revenues:

Its semi-annual revenues increased by approximately 33.2% to reach EGP 113.87 million.

About the company:

The company — which made its public debut on the EGX in 2022 — provides land recuperation; equipment and facilities for lands; planting lands; livestock, birds and poultry farming; and offers cleaning services.

What else is clapping?

Abu Qir Fertilizers is investing EGP 90 million to establish a solar power plant with a 2.5 MW generation capacity as part of its target to wean itself off full dependency on natural gas. The plant is being established by the Arab Organization for Industrialization and is scheduled to become operational before the summer of 2025. The company’s partial shift to green energy sources comes after it incurred daily losses of EGP 65.54 million when it had to shutter its factories twice in June due to low gas supplies.