Mubasher TV
Contact Us Advertising   العربية

Egypt's equities lose EGP 1.1bn on institution sell-offs

Egypt's equities lose EGP 1.1bn on institution sell-offs
Photo Credit: Arabianeye-Reuters

The Egyptian Exchange’s (EGX) market capitalisation shed nearly EGP 1.1 billion ($144 million) on a selling spree from local institutions on Wednesday.

The benchmark index EGX30 shifted to the red zone in late trades, losing 0.82% or 72 points to close at 8,756.31 points.

"Locals and institutions started to give up their buying positions on the lack of positive catalysts or any governmental move regarding the capital gains tax dilemma," said Naglaa Farrag, technical analyst at Mediterranean Co. for Securities Brokerage. 

Investors have recently taken aim at Egypt’s government for a law imposing a 10% capital gains tax, arguing that its implementation is not clear and is deterring would-be investors from the market. The finance ministry has pledged to amend the law, but the issue has not yet been solved.   

The small and mid-cap index EGX70 inched down 0.43% to 471.72 points, while the broader EGX100 slid 0.79% to 968.22 points.

Wednesday’s turnover amounted to EGP 418.4 million, while traded volume reached around 119.7 million shares sealed through 17,500 transactions.

Arab traders were buyers by EGP 11.9 million, while local and foreign traders were sellers by EGP 11 million and EGP 950,000, respectively.

Meanwhile, retail traders were net buyers, while institutions were net sellers, particularly locals.

Alexandria National Co for Financial Investment topped gainers, surging 8.98% to close at EGP 11.29.

Misr Oils and Soap led losers, falling 7.50% to close at EGP 9.25.