CAIRO: The Egyptian Exchange (EGX) indexes edged up during Wednesday’s mid-session after trimming morning losses, amid sideways performance despite the landslide victory of Abdel Fatah Al-Sisi in presidential election.
Experts expected a second wave of decline as the short-term rebound was inevitable 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 rose 0.38 percent to reach 7,993 points, up from than Tuesday’s close at 7.963 points. The small and mid-cap index EGX70 went up 0.95 percent to hit 570 points and the broader index EGX100 added 0.75 percent to reach 997 points.
Market capitalization gained around 1.1 EGP to record 465.2 billion EGP, compared to 464.1 billion EGP Tuesday. Turnover reached 326.5 million EGP.
Ehab Saeed, head of technical analysis at Osool ESB Brokerage, attributed the sideways movement to investors’ anticipation about the amendments of the capital gains tax and uncertainty over whether the new president would endorse it.
Saeed told The Cairo Post that the EGX30 is likely to resume its downward correction once more if the benchmark fails to stay above 8,020 points.
“The market is witnessing a corrective wave and could re-test 7,400 points in the short term,” he added.