Arab Finance: The Egyptian Exchange (EGX) has approved amendments to the timeline for announcing and implementing periodic reviews of its main market indices, giving investors and asset managers more time to prepare for index changes, as per a statement.

Approved by the EGX Index Committee, the updates apply to the EGX30, EGX70 EWI, EGX100 EWI, EGX33 Shariah, EGX35-LV, EGX30 Capped, and EGX30 TR indices, as well as sector indices.

Under the new rules, the results of the periodic reviews will be announced at least two weeks before they take effect. The implementation of semi-annual review results will shift to the first business day of March and September each year, replacing the previous timeline of February 1st and August 1st.

The changes are intended to improve the efficiency and transparency of the index review process while providing investors, asset managers, and investment funds with sufficient time to prepare for adjustments resulting from the reviews. The revisions align its index methodology with international best practices.

The comprehensive semi-annual reviews, conducted in March and September, will include additions and deletions of index constituents, as well as reviews of the Adjusted Weight Factor (AWF) for constituents of the EGX30 Capped, EGX70 EWI, EGX100 EWI, EGX33 Shariah, EGX35-LV, and sector indices.

Quarterly reviews, scheduled for June and December, will continue to assess the AWF for constituents of the same indices without changing their composition. Any resulting weight adjustments will take effect on the first business day of June and December.

The amendments also introduce the publication of a pre-announced calendar for each periodic review, outlining the review period, the date of the review results announcement, and the effective date.

The EGX Index Committee said the revised procedures will take effect starting with the next periodic review.