As the 9 ministers announced in Egypt's cabinet reshuffle have been finally sworn in, the Egyptian Exchange (EGX) has managed to end Tuesday's session posting gains of around EGP 4 billion backed by Arab buyers. The EGX's gains have been also powered by the bourse regulator's announcement that the same-day trading settlement known as T+0 will come into force by the trading session of Thursday May 23rd, 2013. The capital market has reached to EGP 362.562 billion during Tuesday's closing session. The EGX indices ended Tuesday in green notes. Egypt's benchmark index EGX30 climbed by 1.82% to close at 5372.63 p; while the EGX20, it also soared by 2.27% to end at 6161.87 p. Meanwhile, the mid- and small-cap index, the EGX70 rebounded by 0.59% to conclude at 451.31 p. Price index EGX100 advanced by 1% to finish 760.96 p. During Tuesday's closing, the trading volume hit 92.673 million securities, higher than Thursday's session of 49.406 million securities, representing an increase of 43.267 thousand securities. For the traded value, it reached EGP 365.164 million, exchanged through 17.666 thousand transactions. This was after trading in 161 listed securities; 14 declined, 114 advanced; while 33 keeping their previous levels. Arabs' buying transactions have backed EGX's gains as they were net buyers seizing 8.17% of the total markets, with a net equity of EGP 21.095 million, excluding the deals. Meanwhile, Egyptians and the non-Arab foreigners were net sellers seizing 75.16% and 16.67% respectively, of the total markets, with a net equity of EGP 12.080 million and EGP 9.015 million excluding the deals. Egypt Cabinet Reshuffle: The new nine ministers in the cabinet reshuffle, accompanied by Prime Minister Dr. Hisham Kandil, swore in the constitutional oath in front of president Mohamed Morsi in the presidency premises on Tuesday morning. The cabinet announced the names of the new ministers in the new lineup which includes nine new ministers as follows: - Mr. Ahmed Mohamed Suliaman- Minister Of Justice, - Mr. Hatem Hamed Abdullah Bagato- Minister Of State For Parliamentary Councils, - Eng. Sherif Hassan Ramadan Hadara- Minister Of Petroleum - Dr Ahmed Mahmoud Ali Al Gezawi- Minister Of Agriculture And Land Reclamation, - Dr Fayad Abdel Moneim Hassanein- Minister Of Finance - Dr Ahmed Mohamed Amr Darrag- Minister Of Planning And International Cooperation - Dr Alaa Abdel Aziz Abdel Fattah- Minister Of Culture - Mr. Hamed Abdel Samie Hamed- Minister Of Investment. Egypt Restores T+0 Settlement By May 23: Egypt's financial regulator announced on Tuesday that the same-day trading mechanism which is known as T+0 will come into effect as of the trading session of Thursday May 23rd, 2013. The Egyptian Financial Supervisory Authority (EFSA) has decided to resume the T+0 Settlement mechanism by May 23rd, looking forward to providing more liquidity for the market. The EFSA stated that this comes in the wake of holding experimental sessions by the Egyptian stock exchange (EGX) and Egypt's Central Clearing, Depository and Registry house (MCDR) to verify the market's readiness for the resumption of the same-day trading mechanism. It is worth noting that the Egyptian Exchange (EGX) management halted the same-day trading mechanism following the January uprising in 2011 as uncertainty swept the market. Trading settlement in Egypt's stock market is currently undertaken using a T+1 system for government bonds and a T+2 system for all other securities. Under the T+0 mechanism, traders will be allowed to sell any portion of their available stocks and then buy them again at the same session. Boosting Market Liquidity: Dr. Ashraf El-Sharkawy - the Chairman of the Egyptian Financial Supervisory Authority (EFSA) – further noted that the T+0 settlement mechanism will contribute to boosting the volume of trades by 30-40% in the Egyptian Exchange (EGX) which currently incurs severe liquidity shortage. Mohsen Adel, Vice Chairman of EG-Finance explained that the re-launch of the same-day trading mechanism (T+0) will represent the return of another financial instrument necessary to add more vitality to the market.
