Egypt stocks hit one-month low on new tax scare
Ahram Online, Sunday 1 Jun 2014
As the reality of a new capital gains tax reverberated through Egypt's market, shares dropped across the board, with the EGX30 and EGX70 losing 4.2 pct and 4.8 pct respectively


Egypt's stocks ended the first trading day of the week in the red as echoes of the new 10 percent capital gains tax imposed on bourse investors Thursday reverberated through the market.

The main EGX30 index slumped 4.2 percent, hitting a one-month low to record 7,894 points.

The broader EGX70 index fell 4.8 percent in a session that saw a total daily turnover worth some LE832.3 million.

Earlier Sunday, the stock exchange suspended the trading for 30 minutes after the indices dropped more than five percent.

Once trading resumed, foreign investors were willing to be net-buyers, taking the advantage of lowered prices, which helped the market to stop the bleeding.

Foreigners ended the trade as net-buyers of some LE72.7 million in shares. However, irritated domestic investors were net-sellers at LE77 million.

Out of 184 listed stocks, only six shares were in black as 161 shares headed to south.

The market's bellwether, Commercial International Bank (CIB), fell 2.7 percent to close at LE36 per share.

Prominent communication shares also declined, led by Telecom Egypt (TE) and Global Telecom (GT) that dipped 4.6 percent and 3.6 percent registering LE13.48 and LE5.17 per share respectively.

Real estate developers Talaat Mustafa Group (TMG), Palm Hills Development (PHD) and Six of October Development and Investment (SODIC) all fell, down by 5.3 percent, 6.4 percent and 2.7 percent closing at LE9.10, LE4.22 and LE26.50 per share respectively.

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