The Egyptian Exchange (EGX) has ended Sunday’s trading posting gains of EGP 2.6 billion powered by the Egyptian finance minister’s announcement of an upcoming tax settlement agreement between Orascom Construction Industries (OCI) and Egyptian Tax Authority (ETA).
The prolonged tax disputes between OCI and the ETA will be resolved soon through an anticipatory settlement agreement, Egypt’s Finance Minister said on Sunday.
The tax dispute was over EGP 14 billion tax evasion claims erupted by selling Orascom Building Materials to French Lafarge in 2007.
As pursuant to the expectant settlement agreement, OCI shall pay EGP 7.1 billion to the Egyptian government so as to end the company’s tax evasion dispute.
The EGX’s management has suspended trading on OCI’s stock (OCIC.CA) awaiting the firm’s clarifications about the settlement agreement with ETA.
The capital market has reached to EGP 364.148 billion during Sunday’s closing session.
The EGX indices ended Sunday in green notes.
Egypt’s benchmark index EGX30 inched up by 0.60% to close at 5255.75 p; while EGX20 rose by 0.18% to end at 6137.37 p.
Meanwhile, the mid- and small-cap index, the EGX70 climbed by 1.10% to conclude at 458.39 pts. Price index EGX100 surged by 0.66% to finish at 763.28 p.
During Sunday’s closing, the trading volume hit 66.432 million securities, less than Thursday’s 73.161 million securities, representing a decrease of 6.729 thousand securities. For the traded value, it reached EGP 201.249 million, exchanged 14.168 thousand transactions.
This was after trading in 171 listed securities; 31 declined, 100 advanced; while 40 keeping their previous levels.
Egyptian and Arab investors have backed EGX’s gains powered by OCI’s settlement agreement announcement. Egyptians and Arabs were net buyers seizing 95.55% and 1.79% respectively, of the total markets, with a net equity of EGP 14.360 million and EGP 7.872 million excluding the deals.
Meanwhile, the non-Arab foreigners were net sellers seizing 2.66% of the total markets, with a net equity of EGP 22.232 million excluding the deals.
Hope Floats For Potential Tax Settlement:
Egypt’s Finance Minister El-Morsi Hegazy stated that OCI and ETA will be reaching a settlement agreement very soon so as to finally end the tax evasion saga.
On the sidelines of the 2nd International Conference for Public and Private Sector on Sunday, Hegazy noted that the Egyptian government will never be intransigent when it comes to the national firms’ future operations in the country.
The Egyptian government is willing to preserve and support the current investments in the country for they would play a major role in alluring further fresh investments in the upcoming period, the minister added.