The Egyptian Exchange approved the listing of the country’s first Exchange Traded Fund certificates on Wednesday.
The fund will trade like an ordinary stock, but it rises and falls according to the value of the benchmark EGX30 index, which includes Egypt’s top 30 traded companies in terms of liquidity and activity. Its initial value will be LE10 million, according to a Wednesday announcement.
“We are glad to list ETFs, which is an important instrument for investors in managing their portfolios, and it’s an important requirement for investors who want to diversify their investments in the Egyptian market,” said EGX chairperson Mohamed Omran in a press statement.
“A part of my pleasure with this important step is that we have fulfilled what we promised, which is listing ETFs before the end of the year 2014,” Omran added.
Egypt’s market regulator approved rules for the ETFs in March, and in April Beltone Financial was granted the first license for a new ETF called XT-Misr. It was expected to begin trading by May, but has been repeatedly delayed.
Beltone Financial was unavailable for immediate comment, and the statement from the EGX does not specify who will be managing the new fund.