Egypt bourse has ended the sessions on Sunday incurring losses of EGP 2.2 billion driven by non-Arab foreign selling pressures.
Accordingly, the Egyptian Exchange’s indices have closed on dark red notes by Sunday afternoon.
Egypt’s benchmark index EGX30 tumbled by 0.81% to close at 5300.16 p; while the EGX20, it went down by 1.29% to end at 6051.09 p.
Meanwhile, the mid- and small-cap index, the EGX70 dropped by 0.84% to conclude at 443.66 p. The price index EGX100 also fell by 0.80% to finish at 745.46 p.
The capital market has closed at EGP 358.551 billion on Sunday.
During the closing session of Sunday, the trading volume reached 35.147 million securities, less than of the closing session of Thursday of 46.987 million securities, representing a decrease of around 12 thousand securities driven by the recently-adopted stamp tax on the daily selling and buying transactions. For the traded value, it reached EGP 145.993 million, exchanged through 10.143 thousand transactions.
During the closing session of Sunday, 167 listed securities have been traded in; 107 declined, 17 advanced; while 43 keeping their previous levels.
Investors’ Activity:
The non-Arab foreigners’ selling pressures triggered EGX’s losses as they were net sellers seizing 7.8% of the total markets, with a net equity of EGP 11.169 million, excluding the deals.
Meanwhile, Egyptians and the Arabs were net buyers seizing 76.92% and 15.28% respectively, of the total markets, with a net equity of EGP 4.802 and EGP 6.366 million excluding the deals.
Egypt Bourse Stamp Tax – Day Six:
Egypt’s Central Clearing, Depository and Registry house (MCDR) started by the beginning of last week 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.
