Yearbook 2018
Second Section:
Developing the technological infrastructure and enhancing trading environment as well as introducing new trading mechanisms and new financial products.
Third Section:
Increasing the communication channels with domestic and international financial institutions and investors.
Disclosure and Listing Activities
Developing Disclosure
1. Encouraging companies to use the electronic disclosure system (ODS)
As part of EGX efforts to promote for the ODS system, EGX held two intensive workshops to explain the system and its benefits to the listed companies. This system allows investors to extract the company’s information in an efficient and swift way.
By the end of 2018, the number of companies using this system reached 220 with a percentage of increase 24.29% compared to 177 listed companies in 2017.
2. Increasing the communication channels between the listed companies and the market participants.
EGX held seminars for listed companies, brokerage firms, mutual funds, financial institutions and Investment Banks. Through these seminars, the listed companies’ highlighted their recent activities, main achievements and plans in addition to answering all questions and clarifying all needed information to the attendees.
During 2017, seven seminars were held promoting for 17 listed companies and 11 more seminars were held in 2018 for another 31 listed companies and attended by an average of 40 financial entities, portfolio managers and brokerages.
Number of listed companies disclosing their companies’ information in dual languages (Arabic & English) increased to reach 53 companies compared to 15 companies in 2016 and 20 companies in 2017.
In this regard, EGX held a series of workshops for the Investor relations officers and managers representing 200 listed companies. During these workshops, EGX highlighted the listing rules amendments adopted by FRA.
3. Enhancing Disclosure and Transparency
One of EGX targets is to enhance investors’ protection. Accordingly, EGX established a new department in 2017, for auditing companies' disclosures either during or after the listing process. This has been reflected on achieving higher transparency for investors. Until the third quarter of the year 2018, this department recorded 770 observations.
Follow-up efforts with non-complying companies to EGX listing rules:
Aiming to improve shareholders protection, EGX focused on achieving greater compliance for listed companies with the listing rules. In that respect, EGX held several meetings with non-compliant companies to identify problems and obstacles related to compliance with the rules, highlighting possible solutions and proposals that help companies meet the listing requirements.
EGX had six initial public offerings (IPOs) in 2018, with a total value of EGP 5.2 billion, 25% higher than the recorded figure in 2017.
Risk Management for Brokerage Firms
EGX issued an updated version of membership manual that included all traded required procedures for member firms. This manual is a comprehensive framework for all organizational procedures and rules for EGX members.
Developing Investors Coding System
As a continuation of cooperation between the Financial Regulatory Authority (FRA) and the Egyptian Exchange (EGX), to simplify and facilitate procedures for investors to enhance the trading and raise the market’s liquidity, FRA has approved EGX’s proposal that allows the Egyptians abroad to be coded and to update their data by using their valid passports which contains their national ID numbers.
Third: Increase Communication with all Local & International Institutions
This year witnessed intensive meetings with financial institutions at the regional and international fronts to present the Egyptian market’s current status and highlight investment opportunities in the Egyptian market.
Local Promotion
EGX sought to increase communication with NGOs and business associations in Egypt through workshops or business events focusing on maximizing their members (companies’ or businessmen) use of the products and financial instruments EGX provides to finance the expansions of interested companies and invests.
EGX participated in the second annual conference for transitioning to cashless economy in January 2018.
93