Regarding the commencement of using the discovery session's prices on Thursday, August 7th, 2014 session, EGX would like to clarify the following:
- The opening price requires objective standards to ensure that there are means for the bid and ask which have influence on the closing price. These guarantees limiting the intentional influence to initiate a new opening price that has no material news requiring this change. If these standards are not provided, the opening price will be the same as the previous closing price.
- The price limits and temporary suspension limits should be calculated based on the opening price according to the alternatives in the previous item.
- For the main market, prices are allowed to move up or down with a limit of 10% from the previous day's closing price during the discovery price. There is another 10% from the opening price at the official trading session. For NILEX companies the percentage is 5%.
- If the closing price exceeds the limits for the temporarily instant suspension, temporary suspension is implemented for 30 minutes.
- The official trading session may start with a temporarily suspension on the shares that reached the maximum or minimum limits during the discovery session (more or less than 5% of the reference price)
- In case of suspending trading on a share for reaching the allowed percentages of the temporary suspension (5%), the share is not suspended again for changing in the same direction, yet it is suspended if it retreated to the opposite direction as well as in the case it crossed the temporarily suspension percentages (5%) of the reference price.
- The reference price of the discovery session refers to the closing price of the previous session while the reference price of the official trading session is the opening price that is equal to the closing price of the previous day or it differs in case of meeting the conditions of the discovery session and obtaining a new opening price.