Non-Arab Foreign Sales Drag Egypt’s Benchmark Below 5395 Pts – Opening
Egypt’s bourse has opened sessions of Wednesday incurring losses of EGP 490 million driven by the non-Arab foreign selling pressures.
Accordingly, the bourse indices were wavering in red notes on Wednesday morning.
Benchmark EGX30 inched down by 0.28% to 5392.77 p. EGX20 also fell by 0.34% to 6119.76 p.
Meanwhile, the mid- and small-cap index, the EGX70 dipped by 0.26% to 441.19 p. Price index EGX100 dropped by 0.28% to 744.09 p.
The capital market has amounted to EGP 360.946 billion, according to data compiled by Amwal Al Ghad English at 11:15 a.m. Cairo time (09:15 GMT) during the opening session of Wednesday.
Trading Volumes & Values:
The trading volume has recorded 5.569 million securities worth EGP 20.973 million, exchanged through 1113 transactions during Wednesday’s opening.
Also during the opening session, 67 listed securities have been traded in; 7 declined, 30 advanced; while 30 steadied.
Investors’ Activities:
The non-Arab foreigners’ selling pressures have triggered EGX’s opening losses as they were net sellers seizing 34.87% of the total markets, with a net equity of EGP 1.989 million excluding the deals.
Meanwhile, Egyptians and Arabs were net buyers seizing 61.62% and 3.51% respectively, of the total markets, with a net equity of EGP 1.301 million and EGP 687.342 thousand, excluding the deals.
Egypt Bourse Stamp Tax – Day Nine:
Egypt’s Central Clearing, Depository and Registry house (MCDR) started a week earlier collecting the recently-approved stamp tax on Egyptian stock exchange’s daily buying and selling transactions.
As pursuant to the recently-approved draft, the stamp tax shall be imposed on the Cairo bourse’s daily selling and buying transactions at 0.001. The stamp tax shall be also applied on the advertisements at 20%.
Capital market experts alongside EG-Finance, Division of Securities, Egyptian Capital Market Association (ECMA) and Egyptian Investment Management Association (EIMA) are urging the decision makers in Egypt to reconsider imposing the stamp tax on the bourse daily transactions amid the current sharp decline in the volumes and values of trades driven by the political and economic turbulence.
They further said imposing the stamp tax on the daily transactions will increase the burden on the investors by 40-65%. Accordingly, heavier burdens will likely drive the investors to exit the market soon.
