Ahead of New Tax, Egypt Stocks End Week with EGP4.3bn Gains
Ahead of applying a new capital gains tax in Egypt by early next week, local stocks ended this week higher with gains totalling 4.3 billion Egyptian pounds. Powered by local and non-Arab foreign investors’ buying appetite, the main stock index, EGX30 further surged approaching 8260 points on Thursday.
Egypt will start implementing a new capital gains tax on Sunday after the law was printed in the official gazette on Thursday, as the country seeks to increase sources of revenue following more than three years of economic and political turmoil.
The managing director of Misr For Clearing, Settlement and Central Depository (MCDR) told Reuters on Thursday that his organisation would start implementing the tax on Sunday.
Meanwhile, the Egyptian Exchange’s indices were wavering in green notes during closing session of Thursday.
EGX operates with shortened trading hours during the Islamic fasting month of Ramadan since the exchange would open from 10:00 to 13:30 Cairo time.
Indices
Egypt’s benchmark index EGX30 ended 1.43 per cent higher to 8258.4 pts; while EGX20 finished 1.69 per cent up to 10013 pts.
On the other hand, the mid- and small-cap index, the EGX70 went up by 0.69 per cent to end at 600.29 pts. The price index EGX100 hiked by 0.89 per cent to conclude at 1050.38 pts.
Furthermore, the market capitalization recorded EGP 481.893 billion on Thursday.
Turnovers below EGP 1 billion
Through the closing session of Thursday, the trading volume has reached 150.206 million securities, with turnovers worth EGP 536.671 million, exchanged through 18.666 transactions.
Also during the closing session, 181 listed securities have been traded in; 33 declined, 126 advanced; while 16 kept their previous levels.
Investors’ Activities
Egyptian and non-Arab foreign investors were net buyers on Thursday capturing 82.83% and 9.21% respectively of the total markets, with a net equity of EGP 302.733 thousand and EGP 4.425 million respectively, excluding the deals.
On the contrary, Arab investors were net sellers seizing 7.96% of the total market, with a net equity of EGP 4.727 million, excluding the deals.
