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| Cairo and Alexandria Stock Exchange | |
|---|---|
| Name | Cairo and Alexandria Stock Exchange |
| Type | Stock exchange |
| City | Cairo |
| Country | Egypt |
| Founded | 1883 (Cairo), 1866 (Alexandria) |
| Currency | Egyptian pound |
| Indices | EGX 30, EGX 70, EGX 100 |
Cairo and Alexandria Stock Exchange
The Cairo and Alexandria Stock Exchange is Egypt's principal securities market, combining legacy institutions from Alexandria, Cairo, and Ottoman-era commercial centers. The exchange connects capital allocation among corporations such as Commercial International Bank (Egypt), Orascom Construction, and EgyptAir, while interacting with regional markets like the Tel Aviv Stock Exchange and Athens Stock Exchange. Its operations link to policy frameworks shaped by entities including the Central Bank of Egypt, the Ministry of Finance (Egypt), and international bodies like the International Monetary Fund and World Bank.
The exchange traces roots to 19th-century trading in Alexandria and Cairo, influenced by the Khedivate of Egypt and the Suez Canal Company era. Early participants included merchants from Greece, Italy, France, and Lebanon, and the market evolved through episodes such as the Urabi Revolt and the Anglo-Egyptian War. In the 20th century, stock trading adapted to shifts after the Egyptian Revolution of 1952 and the nationalizations under Gamal Abdel Nasser. Reforms in the 1990s, propelled by privatization programs connected to the International Finance Corporation and bilateral partners like France–Egypt relations, led to modernization and the establishment of indices such as EGX 30. Periodic shocks included the impacts of the 2008 global financial crisis and the 2011 Egyptian revolution, which affected listings, liquidity, and cross-border investment flows involving entities like HSBC and Deutsche Bank.
The exchange is organized into trading boards, membership tiers, and a clearing corporation tied to the Egyptian Financial Supervisory Authority framework. Major stakeholders include brokerage firms such as EFG Hermes, CI Capital, and Arqaam Capital. Governance involves boards with representation from listed companies like Telecom Egypt, financial institutions like Misr Insurance Company, and state-owned enterprises formerly overseen by the Ministry of Investment (Egypt). Market indices include the EGX 30, EGX 70, and EGX 100, while segments host sectors exemplified by Orascom Telecom, Arab Contractors, and CIB. Membership and listing rules parallel standards promoted by the International Organization of Securities Commissions and bilateral technical assistance from the European Bank for Reconstruction and Development.
Trading employs both electronic order-matching systems and legacy pre-trade facilities supporting equity, debt, and derivative instruments. Products listed include common shares of companies like Commercial International Bank (Egypt), corporate bonds issued by Elsewedy Electric, and treasury bills coordinated with the Central Bank of Egypt. The exchange has sought to introduce derivatives and exchange-traded funds with reference to models from the Chicago Mercantile Exchange and London Stock Exchange. Market participants range from retail investors in neighborhoods such as Heliopolis to institutional investors including sovereign entities like the Arab Fund for Economic and Social Development and private equity firms like The Abraaj Group.
Regulation is conducted through statutory authorities including the Egyptian Financial Regulatory Authority and fiscal policy alignment with the Ministry of Finance (Egypt), while monetary policy interactions occur with the Central Bank of Egypt. Legal frameworks encompass corporate law reforms inspired by comparative models from the European Union and international conventions such as those promoted by the Organisation for Economic Co-operation and Development. Enforcement actions have involved major brokers and firms linked to scandals or compliance reviews, with coordination among prosecutorial institutions and international auditors like PricewaterhouseCoopers and KPMG.
Key indicators include the EGX 30 index, market capitalization metrics, and turnover rates reflecting activity in sectors like banking, real estate, and telecommunications represented by firms such as Palm Hills Developments and Telecom Egypt. Historical performance shows volatility around geopolitical events like the Yom Kippur War aftermath, the Gulf War (1990–1991), and the Arab Spring. Foreign portfolio flows often respond to credit ratings from agencies such as Moody's Investors Service, Standard & Poor's, and Fitch Ratings, as well as to macro reports by the International Monetary Fund and the World Bank.
Prominent listings encompass banking leaders like Commercial International Bank (Egypt), industrial conglomerates such as Elsewedy Electric and Orascom Construction Industries, telecommunications firms like Telecom Egypt and Orascom Telecom, and real estate developers including SODIC and Palm Hills Developments. Other notable entities listed have included Egyptian Iron and Steel, Alexandria Container & Cargo Handling Company, and energy-related firms tied to projects with BP and Shell joint ventures.
The exchange facilitates capital raising for privatizations and infrastructure projects tied to initiatives involving the Suez Canal Authority and urban development in districts like New Cairo. It serves as a barometer for investor sentiment affecting bilateral investment agreements with states such as Saudi Arabia and United Arab Emirates, and for multilateral projects involving the African Development Bank and European Investment Bank. The market influences corporate governance reforms in listed firms and channels savings from retail networks through banks like Banque du Caire and National Bank of Egypt into corporate finance.
Modernization efforts have included deployment of electronic trading platforms, data dissemination partnerships with vendors akin to Bloomberg L.P. and Thomson Reuters, and upgrades to clearing and settlement systems inspired by models like TARGET2-Securities. Collaborations with technology providers and exchanges such as the Nairobi Securities Exchange and Borsa Italiana informed capacity building. Ongoing initiatives address cybersecurity, connectivity with regional trading hubs, and adoption of market surveillance tools used by entities like NASDAQ and Deutsche Börse.
Category:Stock exchanges in Africa