Egyptian Tourism Resorts to split stock

Cairo: The Egyptian Company for Tourism Resorts has decided on a 10-for-one stock split with effect from Jan. 29, the company said in an announcement published on Tuesday. The new shares will have a nominal value of LE 1 ($0.175) instead of LE 10. The shares were trading on the Egyptian stock exchange on Tuesday at about LE 160. In a separate statement, the Capital Markets Authority said it was tightening the rules for stock splits, rumors of which often cause price fluctuations. Under the new rules, companies will have to present reasons and justifications for splitting stock and obtain approval from the Capital Markets Authority. If the authority approves, the company must call a general assembly within 15 days and once the general assembly agrees, the split must go into effect within one month. Some companies have recently waited months before implementing decisions on stock splits, and speculation about the timing of the split has led to price fluctuations.