2024/06/12

TMG dominates Egyptian Sharia Index with 15% weight

Talaat Moustafa Group (TMG), with the largest weighting of 15% in the EGX33 Sharia Index, benefited from recent strong performance and frequent trading on the Egyptian Stock Exchange.

The list also included Elsewedy Electric shares in second place with a share of 10.27%, and Abu Qir Fertilizers and Chemical Industries in third place with 9.08%.

Telecom Egypt came fourth with 8.46%, and Fawry for Banking and Electronic Payments Technology came fifth with 7.02%. In sixth place came Egypt for fertilizer production - MOPCO with 6.45%, and seventh for Sidi Kreer Petrochemicals - SIDPEC with 4.86%.

In eighth place was Faisal Islamic Bank of Egypt with 4.72%, Edita Food Industries ranked ninth with 3.48%, and Orascom Construction PLC ranked tenth with 3.15%.

The Egyptian Exchange (EGX) today launched the EGX33 Shariah Index, a new index that tracks the performance of 33 companies whose activities comply with Islamic Sharia law principles.

“The companies were selected based on a methodology approved by the Sharia Supervisory Committee, which includes a group of Sharia scholars, Islamic economics experts, and experts in Islamic financial transactions,” said EGX Chairman Ahmed El Sheikh during a press conference held Wednesday. “These companies represent 16 sectors of the sectors in which the shares of companies are listed on the EGX.”

El Sheikh added that the EGX has received repeated requests from a large number of local, regional, and international investors to launch a Shariah index on the EGX due to their desire to invest in companies whose activities comply with the provisions and principles of Islamic Sharia law.

The Egyptian Exchange (EGX) has established a set of criteria for selecting companies to join the EGX33 Shariah Index. These criteria are designed to ensure that the index includes only companies that are truly Shariah-compliant. Criteria for Shariah Index includes: revenue from permissible activities, liquidity ratio, debt-to-equity ratio, interest-bearing investments, to the company’s total assets or to the company’s average market value, whichever is higher, in addition to the ratio of the value of interest-bearing borrowed amounts to the company’s total assets or to the company’s average market value, whichever is higher.

El Sheikh clarified that the EGX33 Shariah Index, launched on January 1, 2022, has emerged as the top-performing index on the Egyptian Exchange (EGX) since the beginning of 2024.

To meet investor needs and better reflect market dynamics, the index comprises companies from the EGX100 index and those with Sharia Supervisory Boards, provided they meet minimum liquidity criteria set by the index's Sharia Supervisory Committee and adhere to all quality standards applied to other EGX indices.