EGX retreats sharply over local sell-offs, benchmark dips 3.2%
Egyptian Exchange - YOUM7

CAIRO: The Egyptian Exchange (EGX) posted a sharp slip at the close of Sunday’s session, as the benchmark index EGX30 tumbled 3.19 percent over intensive sell-offs from local institutions and retailers.

The benchmark dropped to 8,607 points at close, compared to 8,891points Thursday. Also, the small and mid-cap index EGX70 slipped 3.15 percent to end at 489.9 points, down from 505.8 points in its last session. The broader index EGX100 lost 2.78 percent, recording 997.2 points.

Egypt’s market rode a violent downward movement over the past three weeks, shrugging off positive incentives from the Egypt Economic Development Conference held in Sharm al-Sheikh in March 13-15, which resulted in anticipated investments of $72.5 billion.

Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post that the extended slip was initially triggered from traders’ anger over the government’s insistence on imposing a capital gains tax on stock market profits and dividends approved in July.

The market is still waiting for the issue of the bylaws of this tax system.

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