ABN AMRO has issued the first certificate on the Cairo & Alexandria Stock Exchanges Case30 Index.
The Egyptian Stock Market Certificate is a simple financial instrument that enables investors to gain exposure to the entire Case30 Index, without having to buy each individual stock. Investors access the performance of the Case30 Index as the Certificate effectively replicates the performance of the Index.
Tailor-made structured products for private and retail clients are increasingly in demand in the Middle East. Given the boom financial markets in the region are experiencing, it isn't surprising there is such high demand for structures on local underlying assets, according to Sven Haefner of ABN AMRO Private Investor Products.
“We aim to provide these opportunities to our clients, and to offer access to markets in several Arab countries by creating joint ventures with local stock exchanges,” he said.
“The foundations for growth in the regional derivatives market are being laid as many Arab countries have completed, and more are in the process of, capital market liberalisation and corporate governance reforms. The environment for domestic, regional and international investors in Middle Eastern structured products is very favourable. The Egyptian Stock Market Certificate was an exciting prospect, but the reality is even better,” Haefner said.
The CASE 30 Index consists of the 30 most highly capitalised and liquid stocks on the Cairo & Alexandria Stock Exchanges. Its current composition is diversified and includes telecoms, cotton and textile, banking and construction companies. These companies hold strong positions both domestically and across the Middle East, with many expanding beyond the region.
The Egyptian Stock Market Certificate has an Open-ended maturity and is listed on the SWX Swiss Stock Exchange.
The current composition of the CASE 30 Index is highly diversified and includes telecoms, cotton and textiles, banking and construction companies. These companies hold strong positions both domestically and across the Middle East and Africa, with many also expanding beyond the region.