EGX slumps again on local sales, benchmark down 1.9%
Egyptian Exchange - REUTERS

CAIRO: The Egyptian Exchange (EGX) continued its losing streak at the close of Monday’s session, hammered by local sell-offs.

The market shrugged off a presidential decree issued late Sunday that reducing the top tax rate on individuals and companies from 25 percent to 22.5 percent, and suspending a controversial 10 percent capital gains tax for two years.

On Monday, Egypt’s benchmark index EGX30 plunged 1.92 percent to end at 6,654 points, down from 6,784 points on Sunday.

Market capitalization shed around 7.8 billion EGP ($996.1 million,) totaling 420.8 billion EGP, down from 428.6 billion EGP on Sunday.

CIB, the market bellwether, inched up 0.84 percent to close at 45.58 EGP per share, up from 45.2 EGP per share. The heavyweight’s moderate rebound reduced the benchmark’s losses compared to the other indexes.

The small and mid-cap index EGX70 plummeted 5.17 percent to end at 365.48 points, compared to 385 points in the last session.

The broader index EGX100 also dropped 3.82 percent to close at 794 points, after 825.6 points on Sunday.

Egypt stocks posted a sharp slip on Sunday and its benchmark EGX30 plummeted 5.42, shading global markets’ slips amid fears about a China-led economic slowdown, in addition to a fresh slide of oil prices.

The EGX was also hurt dramatically by Saudi stock market’s slump following a Friday decision by Fitch Ratings to downgrade its outlook for the kingdom from “stable” to “negative,” citing lower oil prices.

Meanwhile, the rating agency affirmed Saudi Arabia’s ratings at ‘AA.’

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