Tel Aviv's Positive Response Marks Step Forward In Creation Of Regional Stock Market Index

by Carla Johnson, Investors Offshore.com

08 June 2001

The Cyprus Stock Exchange (CSE), the Athens Stock Exchange (ASE) and the Financial Times Stock Exchange (FTSE) have jointly proposed the creation of a regional stock market index in the Middle East. So far they have approached the exchanges of Tel Aviv (TASE), Cairo and Alexandria and although they are still awaiting a response from the latter two exchanges which is crucial to the success of the project, the mood is optimistic as TASE has already made some positive noises over the idea.

According to the Xak online news service, it is hoped that the joint stock index will enable the authorities in Egypt, Cyprus and Israel to work more closely on constructing financial links between the countries. Although the deep-seated political unrest in the Middle East could prevent any attempts at cooperation in the region, the CSE, ASE and FTSE are hoping that TASE's decision to 'issue a positive response' to their request could influence the Egyptian exchanges (in terms not being left out of the competition) to agree to the initiative.

ASE Chairman, Panayiotis Alexakis Panayiotis, said he was optimistic of the outcome of the negotiations as he claimed: 'The credibility of FTSE indices, which are already in place on the markets in question, creates the right conditions for the success of the index and, by extension, the quality of the companies that make it up.'

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