Egypt’s stocks opened higher on Tuesday earning 2.81 billion Egyptian pounds backed by cabinet amendments to the recently-introduced controversial capital gains tax (CGT) law. In return, the main stock index, EGX30 surged to 8110 points at early trade.
The amendments included exemptions widened and tax rate reduced for some shareholders, who were spooked after approval of capital gains tax (CGT).
Meanwhile, the EGX indices were wavering in green notes during the opening session of Tuesday.
The cabinet of Prime Minister Ibrahim Mahleb decided to amend the CGT on Sunday, exempting share dividends and cash dividends up to EGP 15,000 from paying the new tax.
The tax rate will also be reduced to 5% on cash dividends for shareholders who own 25% or more of the listed companies’ capital.
The cabinet also decided to cancel the 0.001 transaction tax that was imposed on stock exchange investors in 2013.
The Benchmark EGX30 inched up by 1.19% to 8110.98 p, and EGX20 hiked by 1.25% to 9712.94 p.
In addition, the mid- and small-cap index, the EGX70 rose by 0.35% to 565.5 p. Price index EGX100 went up by 0.45% to 995.42 p.
Furthermore, market capitalization reached EGP 467.465 billion, according to data compiled by Amwal Al Ghad English at 11:09 a.m. Cairo time (08:09 GMT as Egypt turned to Daylight saving time).
Trading Volumes & Values
The trading volume has recorded 24.104 million securities worth EGP 64.414 million, exchanged through 2013 transactions during Tuesday opening.
Also during the opening session, 76 listed securities have been traded in; 4 fell, 45 advanced; while 27 keeping their previous levels.
Egyptian investors were net buyers at early trade on Tuesday capturing 83.24% of the total market, with a net equity of EGP 4.504 million, excluding the deals.
On the other hand, Arab and the non-Arab foreign investors were net sellers seizing 3.74% and 13.03% respectively of the total markets, with a net equity of EGP 2.611 million and EGP 1.892 million respectively, excluding the deals.