EGX Hits 2-Week High, Benchmark Surges 4.9% In Week
In a week, the Egyptian Exchange has hit a two-week high posting remarkable gains of EGP 12.3 billion powered by cancelling the taxes on acquisitions, mergers and dividends in the bourse besides the Qatari pledges to buying t-bonds worth US$3 billion.
The capital market has hit EGP 361.024 billion at the end of last week, compared to EGP 348.707 billion at the end of a week earlier.
Egypt’s stock exchange benchmark EGX 30 index soared by 4.9% this week, representing an increase of 246.42 points, ending Thursday’s transactions at 5231.47 points compared to 4985.05 points at the end of last week.
EGX30 hit its highest point on Thursday closing at 5231.47 points, where its lowest point reported on Sunday at 5032.72 points.
Meanwhile, the mid- and small-cap index, the EGX70 pushed up by 4.6% closing at 454 points during Thursday’s session, compared to 434.03 points at the end of a week earlier. The price index, EGX100 surged by 4.41% concluding by 756 points during Thursday’s session, compared to 724.37 points at the end of a week earlier.
Also in a week, the EGX has recorded a volume of trades hit 477 million securities, compared to 408 million securities a week earlier; while the traded value reached EGP 1.5 billion, opposed to EGP 944 million a week earlier.
Tax Cancellation:
On Tuesday, Dr. Abdullah Shehata, advisor of the Egyptian Finance Minister and head of economic committee at Freedom and Justice Party (FJP) announced that taxes on acquisitions, mergers and dividends in the Egyptian Exchange (EGX) will be cancelled.
During an interview with a state-TV talk show on Monday, Shehata said a single tax remains, which is the stamp tax that will be applied at 1/1000 for each of the seller and buyer.
The cancellation move will be effective once the law is endorsed by Shura Council (Egypt’s Upper House). Accordingly, the 10% tax on NSGB’s deal will not be collected.
Funding Pledges:
On Thursday, the Qatari Prime Minister Sheikh Hamad bin Jassim Al-Thani said Qatar would provide an extra $3 billion on top of some $5 billion the Gulf state has already given Cairo and would extend gas supplies to Egypt this summer as needed.
Later on Wednesday, Egypt’s state news agency MENA reported that neighboring Libya had signed an agreement to give Egypt a $2 billion five-year interest-free loan “to support the Egyptian economy and the state budget and foreign currency reserves”.
