For the first time in its history, the Egyptian Stock Exchange launches a new index for government bonds

The Egyptian Stock Exchange will launch today an index for the restricted Egyptian treasury bonds traded on the Egyptian Stock Exchange, after the Stock Exchange's Indicators Committee approved the new index methodology.

The EGX management said that the move comes as a continuation of its efforts to develop indicators to measure the performance of traded securities, allowing the availability of investment products that follow these indicators and enhancing the diversity of investment products available to the public. All categories of investors, in line with international best practices in the field of developing and managing stock exchange indices.

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

Treasury bond indices consist of a general index that will be launched today, Tuesday, and 4 sub-indices that will be launched soon, determined based on different maturities. The sub-indices allow followers to compare the performance of Treasury bonds with close maturities.

The treasury bond indices are reviewed monthly by the relevant department of the Stock Exchange, and the review includes excluding non-qualified bonds and listing 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.

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