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July 31, 2025: EGX35

New EGX index dropping

What: The EGX announced the launch of a new index under the name EGX35 LV (Low Volatility), set to debut in early August 2025.

It includes 35 companies across 13 sectors, all selected based on their relatively steady share price movements and low sensitivity to market changes.

So what: The new index is one of several index funds that the EGX has launched in the past. Current index funds in EGX’s portfolio include EGX30, EGX70, EGX100, and the EGX33 Sharia-Compliant Index.

The selection criteria for the EGX35 LV index are broken down into three major metrics, which together aim to create a stable and balanced investment tool for risk-conscious investors. They are:
– Diverse sectors: A core feature of the EGX 35 LV index is its sectoral diversification. The index includes companies from 13 different sectors of the 18 on the EGX.

This approach helps investors spread their risk across multiple industries. So, if one sector is facing challenges or uncertainty, others within the index might remain stable or even perform better. This reduces the impact of sector-specific instability, making the index more suitable for investors looking for steady, low-risk returns.

– Low Volatility: This feature ensures the index includes stocks that have shown long-term price stability. These companies experience minimal significant fluctuations, making them less sensitive to short-term market shocks. As a result, the index offers investors a more predictable and less risky investment path, especially during times of market uncertainty or economic downturns.

– Liquidity and Market Presence: The EGX35 LV includes many well-known, high-profile companies such as CIB and TMG. These are stocks with high trading activity and solid reputations in the market. Their presence in the index helps boost investor confidence, knowing they’re investing in companies that are both trusted and widely followed on the EGX.

Now what: Once the index is officially launched, it could create new opportunities for asset managers to introduce an index fund that tracks the EGX 35 LV.

This would open the door for both retail and institutional investors to gain exposure to a low-volatility, diversified portfolio through a single investment tool.

If a fund tracking the EGX35 LV were to be established, would you invest in it?

RAYA CX

What: Raya Financial Holding’s (RAYA) Board of Directors agreed to submit a mandatory tender offer to increase its stake in Raya Customer Experience (RACC).

The offer aims to acquire an additional 63.5 million shares, raising Raya Holding’s ownership from 122.9 million shares (59.9%) to approximately 186.4 million shares, representing around 90% of Raya Contact Center’s total capital.
RAYA has valued the offer at a share price ranging between 6.87 – 7.50.
CLAPS Class: Mandatory tender offer is when an entity submits a proposal to acquire at least ⅓ of a company’s capital and voting rights.
So what: Raya Financial Holding is the parent company of Raya Contact Center, but both entities operate independently and are separately listed on the Egyptian Exchange (EGX).

This acquisition could indicate several things. First, it may signal that Raya Holding has strong confidence in the long-term potential of Raya CX, which is a good indicator for current investors.

Additionally, the move may reflect plans to fully consolidate Raya CX under the parent group, potentially for operational efficiency, strategic repositioning, or simply as an investment. This could also pave the way for future restructuring.