Driven by New Taxes, Egypt Stocks End Week with EGP12 billion Losses
Egypt’s stocks ended this week with substantial losses amounting to 12.2 billion Egyptian pounds driven by the decision to impose capital taxes. As a result, the main stock index, EGX30 dove below 8245 points on Thursday.
Egyptian Ministry of Finance confirmed in a statement on Thursday the news about imposing taxes on capital gains achieved in the EGX.
The ministry stated that the that the calculation of the tax on profits will be on the net value of the market capitalization portfolio by the end of year, compared to its value at the date of approving that law regardless of the purchase date preceding this law, taking into consideration to relay any losses achieved by the investor for the coming 3 years.
On the other side, ex-army chief Abdel Fattah al-Sisi is on course for a sweeping victory in Egypt’s presidential elections as pursuant to provisional results.
Sisi captured 92.2 percent of votes cast in more than 50 percent of polling stations, judicial sources said. His only rival, leftist politician Hamdeen Sabahi, gained 3.8 percent while 4.2 percent of votes were declared void.
Meanwhile, the EGX indices were wavering in dark red notes during the closing session of Thursday.
Indices
Egypt’s benchmark index EGX30 ended 3.45 per cent lower to 8242.94 pts; while EGX20 finished 3.46 per cent down to 9919.58 pts.
In addition, the mid- and small-cap index, the EGX70 pushed down by 2.63 per cent to end at 589.5 pts. The price index EGX100 tumbled by 2.61 per cent to conclude at 1030.85 pts.
Furthermore, the market capitalization recorded EGP 476.290 billion on Thursday.
Turnovers Cross EGP1 Billion
Through the closing session of Thursday, the trading volume has reached 395.520 million securities, with turnovers worth EGP 1.337 billion, exchanged through 46.888 thousand transactions.
Also during the closing session, 191 listed securities have been traded in; 167 declined, 10 advanced; while 14 keeping their previous levels.
Investors’ Activities
Egyptian and Arab investors were net buyers seizing on Thursday 80.73% and 6.08% respectively of the total markets, with a net equity of EGP 10.253 million and EGP 19.247 million respectively, excluding the deals.
On the other hand, the non-Arab foreign investors were net buyers capturing 13.18% of the total market, with a net equity of EGP 29.500 million, excluding the deals.
