CAIRO: The Egyptian Exchange (EGX) indexes ended on a mixed note Tuesday after reducing morning gains, hurt by profit taking following the market rally over the Cabinet’s decision to amend a capital gains tax on stock market profits.
Experts expected a second wave of decline as the short rebound was expected after the sharp slump triggered by the government’s announcement last week that it will mull a 10 percent annual tax on stock market profits and dividends.
The benchmark index EGX30 dropped 0.65 percent to reach 7,963 points, lower than Monday’s close at 8,015. The small and mid-cap index EGX70 went up 0.27 percent to hit 565 points and the broader index EGX100 lost 0.1 percent to reach 989 points.
Market capitalization lost around 500 million EGP ($70 million) to record 464.1 billion EGP, compared to 464.6 billion EGP Monday. Turnover reached 894.1 million EGP.
Ahmed Khaled, head of technical analysis at Arabeya Online Brokerage, attributed the benchmark decline to selling pressures on blue chips by the end of the session, most notably market bellwether CIB, Talaat Moustafa, Hermes and Citadel Capital.
Khaled told The Cairo Post that the EGX30 is likely to resume its downward correction once more if the benchmark failed to stay above 8,130 to 8,245 points.
“The market is witnessing a corrective wave and could re-test 7,400 points in the short term,” he added.