Egypt Stocks ascend to 2-year high as Bourse Tax shelved

Egypt’s stock market soared Monday to two-year high gaining 20 billion Egyptian pounds (US$2.6 billion) as government announced earlier a decision to put the capital gains tax on hold for two years.

The market capitalization has recorded 501.590 billion pounds during the closing session of Monday.

Earlier Monday, the Egyptian Cabinet decided to suspend 10 percent tax on capital gains for two years but a 10 percent tax on stock dividends will remain, the government said in a statement.

Hossam al-Qawish – Cabinet Spokesman – said holding the capital gains tax was meant “to preserve competition in the Egyptian bourse… as part of ongoing efforts at economic reform.”

The Egyptian stock Exchange (EGX)’s management for thirty minutes after the benchmark index, EGX30 soared by 5 percent at Monday’s early trade.

Indices

Egypt’s benchmark index, EGX30 hiked by 6.50 percent to a two-year high of 8798.17 points. EGX20 soared by 7.46 percent to 9104.08 points.

In addition, the mid- and small-cap index EGX70 surged by 7.47 percent to 469.08 points. The price index, EGX100 inched up by 6.47 percent to 979.8 points.

Turnovers doubled
On Monday, the bourse’s trading volume has recorded 223.462 million securities, with turnovers closed at EGP 2.070 billion, exchanged through 23.685 thousand transactions.

Also during the closing session, 193 listed securities have been traded in; 4 declined, 167 advanced; while 15 kept their previous levels.

Investors’ Activities

Local and Arab investors were net buyers on Monday acquiring 87.21% and 4.27% respectively of the total markets, with a net equity of EGP 26.915 million and EGP 49.906 million, respectively, excluding the deals.

On the contrary, the non-Arab foreign investors were net sellers seizing 8.53% of the total market, with a net equity of EGP 76.821 million, excluding the deals.