The Egyptian Stock Exchange will lift the limit on intraday share price moves to 20 percent from September, the bourse said on Sunday.
With this decision, all other precautionary measures introduced after the 2011 revolt would have been repealed.
The board of directors decided to adopt the full amendments on the trading regulations, read a statement by the Egyptian Stock Exchange received by Asharq Al-Awsat.
The new methodology uses a 30-minute moving-volume weighted average price (Moving VWAP) instead of the current VWAP methodology, which takes into account all the traded volume throughout a daily session to determine the closing prices of shares, the EGX said.
It also includes the creation of an auction session to determine the closing price of the pre-close auction, before the end of the trading session and within the last half an hour, provided that the date of the auction takes place a week later, using “Trade-at-close” system.
Meanwhile, Moody’s projected that the Egyptian economy would witness a growth rate of 5.5 percent during the current fiscal year, compared to what was expected during the last fiscal year at 2.8 percent.
The growth is attributed to high expected contribution from several sectors, such as the technology and communications, health and government services, wholesale and retail, and agriculture. Tourism, aviation, manufacturing and the building and construction sectors will also contribute positively.
Senior analyst of the macroeconomics and financial services sector at HC, Monet Doss, expected the inflation rate in June to reach 0.8 percent monthly, and 5.6 percent on an annual basis, in the target scope of the Central Bank of Egypt at 7 percent (+/- 2 percent) for the fourth quarter of 2022.
Doss forecast the treasury bond revenues to remain unchanged at the current levels, as foreign flows into the Egyptian treasury bonds remain a driver to the country’s net international reserves given the slow recovery in tourism.
