EGX retreats as hopes to amend controversial tax frustrated
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) lost ground at the close of Sunday’s  session, hurt by selling pressures from local and foreign traders.

The benchmark index EGX30 dropped 1.26 percent to 8,563 points at close, down from 8,672 points Thursday.

Also, the small and mid-cap index EGX70 slipped 2.2 percent to end at 465 points, compared to 475.4 points in its last session. The broader index EGX100 also fell 1.54 percent as well, closing near 956.8 points.

Market capitalization lost around 4.7 billion EGP ($616.55 million,) totaling 495.1 billion EGP, higher than 499.8 billion EGP Thursday.

During the course of April, the benchmark tumbled 5.06 percent after the government approved the executive bylaw for the stock-market taxes on capital gains and dividends earlier, despite traders’ repeated calls for discarding or suspending it, until the economy recovers.

Meanwhile, a strong rebound was posted Wednesday and Thursday, after it was reported that the government would amend the capital-market taxes.

Traders’ hopes, however, were knocked down once more shortly after the Finance Ministry said Thursday the methods of collecting the taxes are being reconsidered, but no plans to revoke the tax itself.

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