Egypt Stocks rally for Second Day on Tax Suspension

Egypt’s stocks posted gains on Tuesday worth 1.15 billion Egyptian pounds (US$150.7 million) backed by local and Arab investors’ buying appetite, one day after Egypt announced a two-year lift on the capital gains tax.

The gains come for the second day in a row as investors show signs of relief with the Egyptian government’s decision on Monday to suspend the capital gains tax, which was set at 10 percent.

The purpose of the suspension is to preserve the competitiveness of Egypt’s financial market and investments pumped into it, cabinet spokesman Hossam al-Qawish had said in a statement.

Taxes on dividends will continue to be applied, with the tax being collected only once and no tax will be collected on the net revenue.

Indices

Egypt’s benchmark index, EGX30 inched higher by 0.90 percent to a two-year high of 8877.68 points. EGX20 climbed by 1.77 percent to 9265.25 points.

In addition, the mid- and small-cap index EGX70 grew by 0.97 percent to 473.63 points. The price index, EGX100 moved higher by 1.09 percent to 990.46 points.

The market capitalization has recorded 502.746 billion pounds during the closing session of Tuesday.

Turnovers

On Tuesday, the bourse’s trading volume has hit 258.353 million securities, with turnovers closed at EGP 921.219 million, exchanged through 29.645 thousand transactions.

Also during the closing session, 181 listed securities have been traded in; 66 declined, 87 advanced; while 26 kept their previous levels.

Investors’ Activities

Local and Arab investors remained net buyers on Tuesday acquiring 72.93% and 7.29% respectively of the total markets, with a net equity of EGP 16.449 million and EGP 31.502 million, respectively, excluding the deals.

On the contrary, the non-Arab foreign investors were net sellers seizing 19.78% of the total market, with a net equity of EGP 47.952 million, excluding the deals.