EGX trades in red zone, market cap. loses LE 9.9B despite not imposing taxes

CAIRO – 6 September 2021: The Egyptian Exchange (EGX) ended Monday in red, losing around LE 9.97 billion of market capitalization, amid Egyptian selling, despite the denial of imposing taxes on the stock exchange.

The Egyptian Minister of Finance, Mohamed Maait, confirmed that no new taxes have been imposed on the stock exchange, denying any intention to do so.

The Egyptian minister said in a statement, Monday that the imposition of laws can only be done through legislation approved by the Cabinet and approved by the House of Representatives, and not by ministerial decisions.

The minister explained that Ministerial Resolution No. 428 of 2021, which came in implementation of the provisions of the laws in force, and which are now in force, includes only the rules and instructions for the tax treatment of capital gains resulting from the disposal of securities, shares and treasury bills, as well as the stamp tax on dealing in securities.

The benchmark EGX30 dropped 0.29 percent, or 31.72 points, to end at 11,064.17 points.

The equally weighted index EGX 50 dipped 3.61 percent, or 88.59 points, to end at 2,363.31 points.

The small and mid-cap index EGX 70 lessened 5.13 percent, or 150.02 points, to close at 2,774.06 points, and the broader index EGX 100 declined 4.09 percent, or 160.31 points, to close at 3,755.23 points.

Market capitalization lost around LE 9.97 billion, recording LE 718.67 billion, compared to LE 728.64 billion in Sunday’s session.

The trading volume reached 488.24 million shares, traded through 57,432 transactions, with a turnover of LE 1.68 billion.

Egyptian investors were net sellers at LE 46.36 million, while Arab and foreign investors were net buyers at LE 630,105, and LE 45.73 million, respectively.

Arab and foreign individuals were net sellers at LE 7.63 million, and LE 823,476, respectively, while Egyptian organizations were net sellers at LE 11.8 million.

Arab and foreign organizations bought at LE 8.26 million, and LE 46.56 million, respectively, while Egyptian organizations sold at LE 58.18 million.

Delta Insurance, General Silos & Storage, and El Obour Real Estate Investment were top gainers of the session at 19.98 percent, 12.72 percent and 8.60 percent, respectively.

Meanwhile, Gulf Canadian Real Estate Investment Co., North Cairo Mills, and Mansourah Pourtly were top losers of the session by 19.99 percent, 19.99 percent, and 19.57 percent, respectively.