EGX 30 Crosses 5300 Level Amid OCI Tax Settlement Optimisms; Closing
The Egyptian Exchange (EGX) has ended Sunday’s session posting gains of EGP 3 billion powered by investors’ optimisms that Orascom Construction Industries’ announcement about reaching a final settlement agreement with Tax Authority within the current week.
The capital market has reached to EGP 363.942 billion during Sunday’s closing session.
The EGX indices ended Sunday in green notes.
Egypt’s benchmark index EGX30 climbed by 1.32% to close at 5300.28 p; while the EGX20, it also surged by 1.52% to end at 6197.95 p.
Meanwhile, the mid- and small-cap index, the EGX70 inched up by 0.78% to conclude at 458.19 p. Price index EGX100 advanced by 0.85% to finish at 763.1 p.
During Sunday’s closing, the trading volume hit 100.506 million securities, less than Thursday’s 129.362 million securities, representing a decline of 28.856 thousand securities. For the traded value, it reached EGP 345.198 million, exchanged 20.795 thousand transactions.
This was after trading in 167 listed securities; 28 declined, 118 advanced; while 21 keeping their previous levels.
The non-Arab foreigners’ buying transactions have backed EGX’s closing gains as they were net buyers seizing 11.33% of the total markets, with a net equity of EGP 28.326 million, excluding the deals.
Meanwhile, Egyptians and Arabs were net sellers seizing 85.84% and 2.83% respectively, of the total markets, with a net equity of EGP 25.686 million and EGP 2.640 million excluding the deals.
The Long-Awaited Tax Settlement:
Omar Derwaza – Head of Investor Relations at Orascom Construction Industries – announced on Sunday that the ongoing negotiations between OCI and the Egyptian Tax Authority are likely to conclude very soon, expecting that the two parties are going to reach a final settlement agreement within the current week.
OCI’s stock edged up by 0.80% to finish at EGP 240.45.
Derwaza declined to give a comment when he was asked about the value and the schedule of the installments OCI pledged to pay off. He said OCI is going to disclose within days all the details of the anticipatory agreement with the Tax Authority.
On Saturday afternoon, sources close to the ongoing negotiations told Amwal Al Ghad that Orascom Construction Industries (OCIC.CA) is offering to pay off US$ 350 million as a first installment to reconcile with Egypt’s Tax Authority over taxes dues worth EGP 7.1 billion.
For the remaining sums, they will be paid over a number of years to be defined in coordination between the company and the Tax Authority, sources said.
The sources further added that OCI has refused to pay the EGP 7.1 billion as one tranche due to reasons related to default on payments besides the lack of a sufficient liquidity for the current phase.
Amwal Al Ghad has quoted the Tax Authority Chief Mamdouh Omar by saying the negotiations with the OCI are still ongoing, asserting that the reconciliation option is very attainable at any moment. Omar has denied that the ETA’s negotiations with OCI have reached a deadlock.
The anticipatory settlement agreement comes after 7-month tax disputes over EGP 14 billion tax evasion claims against OCI erupted by selling Orascom Building Materials to French Lafarge for EGP 68.6 billion in 2007.
