Egypt’s stocks turn into green notes Tuesday posting gains worth 3.9 billion Egyptian pounds (US$498 million) as global stocks turnaround following China’s cut of interest rates.
The market capitalisation has recorded 424.795 billion pounds during the closing session of Tuesday.
Global shares surge after China cuts its main interest rate in a bid to calm stock market turmoil.
‘Turnaround Tuesday’
U.S. stocks stepped sharply higher Tuesday, with investors expressing relief after China reduced its benchmark lending rate for the fifth time since November and cut the level of cash reserves required of banks.
On Wall Street, buyers made a comeback on morning session since the Dow soared over 300 points.
Britain’s leading FTSE 100 index opened up 1.7 per cent before climbing throughout the morning as investors in London appeared to shrug off further dramatic falls in Asia overnight.
On early trading session, Abu Dhabi, Dubai stocks stabilise after rout as Abu Dhabi Securities Exchange General Index was 1.24 per cent lower at 4,211.71, while the Dubai index was up 1.17 per cent to be at 3,441.49.
Investors have dubbed today’s trading as “Turnaround Tuesday” following global stocks’ worst day on Monday; “Black Monday” amid China stock crash.
Egypt Indices
Back to indices in Egypt where President Abdel Fattah al-Sisi issued a decree lowering the top tax rate on companies and individuals from 25 percent to 22.5 percent. The decree also suspended a 10 percent capital gains tax for two years as of August 2015.
The highest income bracket to which the new 22.5 percent rate will apply went down from 250,000 Egyptian pounds ($31,948.88) to 200,000, the decree said.
Egypt’s benchmark index, EGX30 edged higher 2.75 percent to 6836.95 points.
The newly-launched EGX50 EWI index increased 1.99 percent to 1173.74 points.
EGX20 also soared by 3.08 percent to 6630.73 points.
In addition, the mid- and small-cap index EGX70 boosted 1.90 percent to 372.42 points. The price index, EGX100 surged 1.03 percent to 802.23 points.
Turnovers improved
On Tuesday, the bourse’s trading volume has reached 229.944 million securities, with turnovers closed at 1.165 billion Egyptian pounds, exchanged 23,821 thousand transactions.
Also during the closing session, 175 listed securities have been traded in; 29 declined, 106 advanced; while 34 kept their previous levels.
Investors’ Activities
Egyptian and non-Arab investors were net sellers seizing 92.72 percent and 4.41 percent, respectively of the total markets, with a net equity of 14.049 million and 11.199 million pounds, respectively, excluding the deals.
On the contrary, Arab investors were net buyers Tuesday getting 2.87 percent of the total market, with a net equity of 25.248 million pounds, excluding the deals.
