On Tuesday, the Egyptian Exchange (EGX) has pared its midday gains which eventually reached EGP 2.8 billion backed by local buyers. The EGX have returned to rally following the announcement of cancelling the taxes on acquisitions, mergers and dividends in the EGX. The capital market has reached to EGP 356.595 billion during Tuesday's closing session. The EGX indices ended in green notes. Egypt's benchmark index EGX30 inched up by 0.87% to close at 5157.15 p; while EGX20 hiked by 1.11% to end at 5934.8 p. Meanwhile, the mid- and small-cap index, the EGX70 surged by 1.23% to conclude at 445.77 p. Price index EGX100 advanced by 1.12% to finish at 744.48 p. During Tuesday's closing, the trading volume hit 90.766 million securities, less than Monday's 99.895 million securities, representing a decline of 9.129 thousand securities. For the traded value, it reached EGP 255.887 million, exchanged 16.041 thousand transactions. This was after trading in 169 listed securities; 22 declined, 104 advanced; while 43 keeping their previous levels. Egyptians' buying transactions have backed EGX's closing gains as they were net buyers seizing 65.68% of the total markets, with a net equity of EGP 15.134 million, excluding the deals. Meanwhile, the non-Arab foreigners and Arabs were net sellers seizing 26.57 % and 7.75% respectively, of the total markets, with a net equity of EGP 9.693 million and EGP 5.441 million excluding the deals. Tax Cancelation: On Monday, Dr. Abdullah Shehata, advisor of the Egyptian Finance Minister and head of economic committee at Freedom and Justice Party (FJP) announced that taxes on acquisitions, mergers and dividends in the Egyptian Exchange (EGX) will be cancelled. During an interview with a state-TV talk show on Monday, Shehata said a single tax remains, which is the stamp tax that will be applied at 1/1000 for each of the seller and buyer. The cancellation move will be effective once the law is endorsed by Shura Council (Egypt's Upper House). Accordingly, the 10% tax on NSGB's deal will not be collected.
