Egypt bourse has ended sessions on Wednesday posting gains of EGP 429 million backed by the release of the seven kidnapping army personnel in Sinai.
The Egyptian Exchange’s indices have closed on green notes on Wednesday.
Egypt’s benchmark index EGX30 inched up by 0.17% to close at 5416.2 p; while the EGX20, it rose by 0.11% to end at 6211.83p.
Meanwhile, the mid- and small-cap index, the EGX70 went up by 0.34% to conclude at 450.26 p. On the other hand, the price index EGX100 increased by 0.23% to finish at 757.47 p.
The capital market has closed at EGP 363.714 billion on Wednesday.
During the closing session of Wednesday, the trading volume reported declining levels of 39.219 million securities, less than the closing session of Tuesday of 59.016 million securities, representing a decrease of 19.797 thousand securities coinciding with the 4th day of adopting the stamp tax on the daily transactions. For the traded value, it reached EGP 212.241 million, exchanged through 10.845 thousand transactions.
During the closing session of Wednesday, 160 listed securities have been traded in; 41 declined, 81 advanced; while 38 keeping their previous levels.
Investors’ Activity:
Egyptians and Arabs were net buyers seizing 65.59% and 9.35% respectively, of the total markets, with a net equity of EGP 17.873 and EGP 567.502 thousand excluding the deals.
Meanwhile, the non-Arab foreigners were net sellers seizing 20.07% of the total markets, with a net equity of EGP 18.441 million, excluding the deals.
‘Seven Kidnapping Soldiers Finally Freed’
Seven Egyptian security personnel taken hostage by suspected militants in north Sinai were freed soon after the military started a sweep of the lawless area to secure their release, the army said.
The six members of the police and one army conscript were freed through the efforts of military intelligence in cooperation with the “honorable tribal leaders and residents of Sinai,” according to the army’s Facebook page.
The release of the seven, who were taken hostage May 16, may have averted a large-scale military operation to free them. Security forces had escalated their deployment in the strategic peninsula, and President Mohamed Morsi had said all options were on the table, while ruling out negotiations with what his office described as “criminals.”
Morsi thanked Egypt’s security services in a message posted on Twitter, and also expressed “respect and appreciation to our people in Sinai for putting the interest of the nation above any other consideration.”
The announcement of their release came a day after the state-run Ahram Gate reported that security forces killed one gunman and captured three others in an operation in north Sinai.
Egypt Bourse Stamp Tax – Day Four:
Egypt’s Central Clearing, Depository and Registry house (MCDR) started on Sunday 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.
