Egypt's stocks opened a new week dramatically lower incurring early losses worth 15.7 billion Egyptian pounds amid local and Arab investors' selling pressures due to the newly-announced capital gains tax. Consequently, the main stock index, EGX30 started trading on Sunday deeply lower below 7810 points. struggling to cut the state budget deficit, the Egyptian government has approved the introduction of a 10% capital gains tax on profits made on the stock market, Egyptian Finance Minister Hany Qadry Dimian announced last Thursday. The tax is part of the first phase of income tax reforms in the country expected to bring in 10 billion Egyptian pounds ($1.40 billion), Dimian said. He said the tax would not be retroactive and would be implemented once a law was issued. "The cabinet agreed to impose a 10 percent tax on net capital gains that individuals make at the end of the tax year," Dimian said. "A tax of 10 percent was also imposed on cash dividends and bonus shares." Indices The Benchmark EGX30 dived by 5.32 % to 7804.08 p, and EGX20 pushed down by 5.62% to 9362.28 p. In addition, the mid- and small-cap index, the EGX70 plummeted by 3.27% to 570.21 p. Price index EGX100 sagged by 3.42% to 995.63 p. Furthermore, market capitalization reached EGP 460.586 billion, according to data compiled by Amwal Al Ghad English at 11:06 a.m. Cairo time (08:06 GMT as Egypt turned to Daylight saving time). Trading Volumes & Values The trading volume has recorded 5.698 million securities worth EGP 38.318 million, exchanged through 1531 transactions during Sunday opening. Also during the opening session, 145 listed securities have been traded in; 110 fell, 3 advanced; while 32 keeping their previous levels. Investors' Activities Egyptian and Arab investors were net sellers at early trade on Sunday seizing 73.42% and 0.84% respectively of the total markets, with a net equity of EGP 8.369 million and EGP 330.163 thousand respectively, excluding the deals. On the other hand, the non-Arab foreign investors were net buyers capturing 25.74% of the total market, with a net equity of EGP 8.700 million, excluding the deals.
