Egyptian Exchange to Launch Single-Stock Futures for CIB & TMG

The Egyptian Exchange (EGX) will launch single-stock futures contracts linked to Commercial International Bank (CIB) and Talaat Mostafa Group (TMG) on June 18th, marking the next phase in the development of Egypt's derivatives market.

According to a statement from the bourse, the new products will offer three- and six-month contracts with a standard size of 100 shares. The launch follows the introduction of EGX30 index futures in March, the exchange's first derivatives product.

Khaled Amer, CEO of Tasweyat, the EGX's futures clearing arm, said the exchange is preparing additional products, including EGX70 derivatives and options contracts, with timing dependent on market demand and trading activity.

CIB and TMG were selected due to their liquidity. According to an EGX report, CIB recorded EGP 10.4 billion in trading during May, representing 6.6% of total listed stock turnover, while TMG posted EGP 9.7 billion, accounting for 6.3%. Together, the two stocks represented nearly 13% of the value of listed share trading during the month.

The contracts are expected to provide investors with additional portfolio management and hedging tools. Amr El Alfy, head of equities at Thndr, noted that investors could use a combination of EGX30 futures and positions in the two stocks to gain exposure to other components of the index.