Egypt’s Financial Regulatory Authority (FRA) has set a trading limit of EGP 10,000 on the Egyptian Exchange (EGX) for those between 16 -21 years old.
The limit was issued under Executive Decision No (23) for 2021, following approval from its Board of Directors to set the maximum limit for this age group.
The decision also limits dealings for this age segment to selling and buying, while margin trading and short selling will not be allowed.
FRA Chairperson Mohamed Omran said that the maximum limit came in light of the statistics presented by the authority’s competent departments that show there are about 383,000 coded dealers who own shares in EGX-listed companies. Of this number, 337,000 dealers (the equivalent of 88%) own portfolios worth EGP 3.4bn, each of a value of EGP 10,000.
Omran added that the statistics show 56%, or nearly 215,000 dealers, own portfolios of less than EGP 5,000 with a total value of EGP 263m, and an average value of EGP 1,220 per portfolio.
About two-thirds of the dealers, or 253,000, own portfolios of less than EGP 10,000 with a total value of EGP 540m, at an average of EGP 2,140 per wallet. On the other hand, statistics show that there are 2,280 legal persons who own about EGP 571bn, an average of EGP 250m per portfolio.