Despite Tax Hike Decree Halt, EGX 30 Fails To Close Above 4980 Pts

During the closing session of Monday, the Egyptian Exchange (EGX) has posted losses of EGP 3.05 billion as the capital market has amounted to EGP 347.524 billion.

The indices closed in red.

The main index, EGX30 fell by 1.50% to end at 4976.22 p. EGX20 edged down by 1.34% to close at 5697.24 p.

Meanwhile, the mid- and small-cap index, the EGX70 dropped by 0.54% to conclude at 436.23 pts.  Price index EGX100 inched lower by 0.83% to finish at 734.44 p.

Traded volume reached 59.378 million securities worth EGP 234.475 million, exchanged 14.306  thousand transactions.

This was after trading in 157 listed securities; 98 declined, 28 advanced; while 31 keeping their previous levels.

Egyptians’ closing selling pressures have driven EGX’s losses as they were net sellers seizing 67.19% of the total markets, with a net equity of EGP 18.396 million excluding the deals.

Meanwhile, the non-Arab foreigners and Arabs were net buyers seizing 29.12% and 3.69% respectively, of the total markets, with a net equity of EGP 12.931 million and EGP 5.465 million excluding the deals.

Egypt President Mohamed Morsi has retracted his Sunday decisions to increase tax burdens on the Egyptian people, and ordered the government to carry out a “social dialogue” on the measures before implementation.

In a statement issued on his official Facebook page at around 2 am on Monday, Morsi said he had put on hold the measures of raising sales taxes on a wide range of consumer goods and services that were made public Sunday afternoon.

“[The President] does not accept that the Egyptian citizen carries any extra burdens without consent. His Excellency has decided to halt the [tax raising] decisions until the degree of public acceptance is made clear,” the statement read.

The measures represent the implementation of an economic programe that Egypt has proposed to the International Monetary Fund (IMF) in order to be eligible for a $4.8 billion loan. They are aimed at reducing public deficit through increasing state revenue.