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48 issues in the treasury bond index on the Egyptian Stock Exchange, with a market value of 1.4 billion pounds


The Egyptian Stock Exchange announced the results of the periodic review of the treasury bond index on the Egyptian Stock Exchange during the periodic review period. 14 issues came out of the index, in return for the entry of 13 issues of treasury bonds, bringing the total number of bonds included in the index to 48 issues, with a total market value of 1.371 billion pounds. Compared to a market value of EGP 1,177 billion for the current index components.


The management of the Egyptian Stock Exchange, last month, launched an index of the Egyptian treasury bonds listed and traded on the Egyptian Stock Exchange, as a continuation of its efforts to develop indicators for measuring the performance of traded securities, allowing the availability of investment products that follow these indicators and enhancing the diversity of investment products available to all categories of investors. This is in line with international best practices in the field of developing and managing stock exchange indices, for the first time in the history of the Egyptian Stock Exchange.

 

The new index includes the most liquid bonds, while the market value of the bond determines the weight of each issue within the index. The index takes into account both the return resulting from the change in bond prices, and the return resulting from the coupons due, which reflects the total return for the performance of the government bonds that make up the index.

 

Treasury bond indices consist of a general index that has been launched, and 4 sub-indices that will be launched soon to be determined based on different maturity periods, as the sub-indices allow the followers to compare the performance of treasury bonds with close maturity periods. Non-qualified bonds and the inclusion of bonds that meet the criteria for joining the index in order to ensure a good representation of the Egyptian bond market. Treasury bond indices were calculated starting from January 3, 2021 at a value of 1000 points.

 

While the Egyptian Stock Exchange provides an electronic system for pricing treasury bonds, through the electronic government bonds trading system “GFIT”, which allows providing competitive pricing through it, the presence of a reference index that allows the development of new financial products such as index funds on bonds, as the index is a good tool that financial institutions can Targeting it to issue investment funds traded on it.

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