What is EGX 30 Index?
EGX 30 Index is a market capitalization weighted index. The index methodology requires that the market capitalization of the index is adjusted by free float. Thus the constituents of the index market capitalization are multiplied by the percent of free float of each constituent. Liquidity is the most important criteria for selecting the constituents or companies that comprise EGX 30 Index. Choosing constituents is not based on ranking them according to their market capitalization (Highest to lowest) but according to their trading activity or liquidity. Also profitability is not a must for companies to be included in the index.
