Egypt Stocks start New Week Bearish as Tax lingers on

Egypt’s stock market lost Sunday 4.6 billion Egyptian pounds (US$603 million) as investors were hoping the government would remove or change the tax on stocks dividends and capital gains.

Yet, the Egyptian finance ministry asserted late Thursday that discussions over amendments to the capital gains and dividends tax concerned only the payment mechanism.

Investors unhappy with the new levies had hoped that they would be able to persuade the government to remove or change them, for example by replacing the capital gains tax with a stamp duty.

The market capitalization has registered 495.157 billion pounds during the closing session of Sunday.

Indices:

Egypt’s benchmark index, EGX30 pushed down by 1.26 percent to close at 8562.97 points. EGX20 tumbled by 1.32 percent to 8963.24 points.

In addition, the mid- and small-cap index EGX70 sank by 2.20 percent to 464.97 points. The price index, EGX100 fell by 1.54 percent to 956.83 points.

Turnovers Too Humble
On Sunday, the bourse’s trading volume has recorded 114.484 million securities, with turnovers closed at EGP 299.644 million, exchanged through 14.149 thousand transactions.

Also during the closing session, 163 listed securities have been traded in; 118 declined, 19 advanced; while 24 kept their previous levels.

Investors’ Activities

Local and non-Arab foreign investors were net sellers on Sunday seizing 79.43% and 12.7% respectively of the total markets, with a net equity of EGP 15.433 million and EGP 729.686 thousand, respectively, excluding the deals.

Arab investors were net buyers capturing 7.87% of the total market, with a net equity of EGP 16.163 million, excluding the deals.