Egypt Stock Market climbs 6.5% at Midday on Tax News

Egypt’s stocks extended its upward trend at Monday’s midday trade, posting gains worth 13.6 billion Egyptian pounds (US$1.8 billion) triggered by announcing a government decision to put the capital gains tax on hold for two years.

The market capitalization recorded 500.921 billion pounds, according to data compiled by Amwal Al Ghad English at 12:55 p.m. Cairo time (10:55 GMT).

At early trade, the Egyptian stock Exchange (EGX)’s management for thirty minutes after the benchmark index, EGX30 soared by 5 percent.

Investors win Tax Battle

The Egyptian Cabinet decided to suspend 10 percent tax on capital gains for two years but a 10 percent tax on stock dividends will remain, the government said in a statement released on Monday.

Hossam al-Qawish -Cabinet Spokesman- said that holding the capital gains tax was meant “to preserve competition in the Egyptian bourse… as part of ongoing efforts at economic reform”.

Indices

Egypt’s benchmark index, EGX30 soared by 6.56 percent to 8802.74 points. EGX20 climbed by 7.54 percent to 9110.87 points.

In addition, the mid- and small-cap index EGX70 pushed up by 7.03 percent to 467.19 points. The price index, EGX100 jumped by 6.17 percent to 977.1 points.

Turnovers Surge
At Monday’s midday trade, the bourse’s trading volume has hit 196.719 million securities, with turnovers closed at EGP 1.807 billion, exchanged through 17.518 thousand transactions.

Also during the midday session, 186 listed securities have been traded in; 7 declined, 156 advanced; while 17 kept their previous levels.

Investors’ Activities

local and Arab investors were net buyers at midday trade capturing 88.45% and 4.1% respectively of the total markets, with a net equity of EGP 13.159 million and EGP 50.859 million, respectively, excluding the deals.

On the contrary, the non-Arab foreign investors were net sellers seizing 7.45% of the total market, with a net equity of EGP 64.018 million, excluding the deals.