Egypt’s stocks were mostly higher on Wednesday despite the government’s decision to move ahead with taxes imposed on capital gains and dividends.
Powered by Moody’s upgrade on Egypt’s credit rating, the Egyptian stock market has managed to close on Wednesday with gains totalling around 6 billion Egyptian pounds (US$786.6 million).
Moody’s Investors Service raised Tuesday its credit rating on Egypt by a notch to B3 from Caa1, citing improved economics, with a stable outlook.
The market capitalization has recorded 508.786 billion pounds during the closing session of Wednesday.
Capital Tax Law:
The government’s decision to move ahead with taxes imposed on capital gains and dividends has heightened fears of steering foreigners away from investing in Egypt’s bourse.
The law, passed on Tuesday, comes after months of negotiations and debate since the government first imposed a 10% on bourse profits and unlisted companies in July 2014.
Egypt’s benchmark index, EGX30 edged up by 0.83 percent to close at 8788.91 points. EGX20 rose by 0.42 percent to 9417.36 points.
In addition, the mid- and small-cap index EGX70 tumbled by 0.11 percent to 495.16 points. The price index, EGX100 increased by 0.15 percent to 1008.01 points.
On Wednesday, the bourse’s trading volume has hit 174.329 million securities, with turnovers closed at EGP 2.849 billion, exchanged through 22.107 thousand transactions.
Also during the closing session, 182 listed securities have been traded in; 69 declined, 71 advanced; while 30 kept their previous levels.
The non-Arab foreign and Arab investors were net buyers on Wednesday capturing 7.45% and 1.33% respectively of the total markets, with a net equity of EGP 92.799 million and EGP 3.781 million, respectively, excluding the deals.
On the other hand, local investors were net sellers seizing 91.22% of the total market, with a net equity of EGP 96.581 million, excluding the deals.