CAIRO: The Egyptian Exchange (EGX) shut on a mixed note Wednesday after offsetting part of early losses over Finance Ministry’s approval of the executive regulations of the income-tax law to accommodate recently introduced capital-market taxes late Tuesday.
The morning’s slip shrugged off Egypt’s credit upgrade by Moody’s Investors Service to B3 from Caa1, with a stable outlook.
According to the new regulations, dividend distributions to individual investors with an annual turnover not exceeding 5 million EGP will only be subject to a 5-10 percent tax. Dividend distributions to those with an annual turnover exceeding 5 million EGP, however, will be subject to the general income tax.
Backed by foreign and Arab institutions’ purchases, the benchmark index EGX30 rose by 0.83 percent to hit 8,789 points at close. In turn, the small and mid-cap index EGX70 lost a slight 0.11 percent to end at 495 points. The broader index EGX100 added only 0.15 percent, recording 1,008 points.
The delay of executive regulations for a tax approved nine months ago along with regional tensions also affected trade volumes and value which saw a remarkable slip in March, totaling 24.2 billion EGP, down from 33.9 billion EGP, according to the EGX monthly report.
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 March 13-15, which resulted in anticipated investments of $72.5 billion.
The benchmark index EGX30 dropped 2.13 percent to end the month at 9,134 points, down from 9,334 at February-end. Further, the small and mid-cap index plunged 7.2 percent, and the broader index EGX100 also dipped 6.2 percent.