Mid-session: EGX down over Sisi Income Tax Law decree
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) indexes showed a collective decline during Wednesday’s early and mid-session trading hurt by selling pressures from local retail investors and Arab institutions.

The market was also harmed by a Tuesday presidential decree to amend some provisions of the Income Tax Law and Stamp Duty Law amid efforts to revive Egypt’s limping economy.

“This amendment is aimed at redistributing the burdens of fiscal and economic reform on the widest possible tax base, excluding low-income people,” the statement read.

Sisi’s announcement followed remarks by Prime Minister Ibrahim Mahlab during a Monday interview with Al-Watan newspaper that the capital gains tax on stock market profits and dividends would be applied “very soon” and with “no amendments” according to an interview published Monday.

The benchmark index EGX30 dropped 0.96 percent to hit 8,084 points, down from Monday’s close at 8,162 points. EGX was closed Tuesday on the occasion of banks holiday, marking the beginning of 2014/15 FY.

The small and mid-cap index EGX70 lost 0.21 percent to hit 589 points and the broader index EGX 100 also fell 0.29 percent to reach 1,031points.

Market capitalization lost around 2.7 billion EGP ($377.5 million,) registering 474.9 billion EGP, compared to 477.6 billion EGP Monday.

Ibrahim El-Nemr, head of the Technical Analysis Desk at Naeem Brokerage told The Cairo Post that the benchmark is still trading in the support range of 8,000-8,130 points.

“A breach above 8,190 points may send the EGX 30 higher towards 8,500 points, but a breach below 8,000 may drag it lower towards 7,720 points,” he said.

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