Egypt launches new SMEs bourse

04 Jun 2010

(MENAFN) Egypt�s new Nilex Stock Exchange kicked off its first day of operation, targeting small and medium-sized enterprise (SME) sector, in a move to open the door for new investments in an often undervalued sector, AP reported.

The launch of the new bourse is seen as a means to providing such SMEs with greater access to capital and increasing a sector described by officials as crucial to growth in the Arab world’s most populous country.

Managing Director of Naeem Funds, Nora Helmy, said that this is the first time that SMEs have been acknowledged, having a stock market that is a channel for firms to attract any strategic investor, even a foreign investor.

The bourse functions the same way as the main stock exchange, allowing investors to place bids through existing brokerage firms. There were no price limitations on the first trading session but the following sessions will have a 20 percent price limit.

The launch of Nilex Stock Exchange was delayed for more than a year because of the global financial crisis, with only 10 companies listed in the bourse so far.

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