Following imposing a 10% tax on capital gains and stock dividends, Egypt's stocks closed lower on Wednesday with losses worth 61 million Egyptian pounds. The main stock index, EGX30 retreated below 8145 points driven by foreign investors' sell-offs. On Tuesday, Egypt has passed a new law imposing a 10% tax on capital gains and stock dividends. In this respect, Egypt's President Abdel Fattah al-Sisi signed the law after passing a national budget for the 2014/15 fiscal year that aims to reduce the country's deficit to 10% of gross domestic product. Capital gains taxes are imposed by the state on any profits made on property or investments. Meanwhile, the Egyptian Exchange's indices were wavering in mixed notes during closing session of Wednesday. EGX operates with shortened trading hours during the Islamic fasting month of Ramadan since the exchange would open from 10:00 to 13:30 Cairo time. On occasion of the start of a new fiscal year, EGX halted trading sessions on Tuesday, July 1st. Indices Egypt's benchmark index EGX30 ended 0.24 per cent lower to 8142.25 pts; while EGX20 finished 0.23 per cent down to 9846.52 pts. On the other hand, the mid- and small-cap index, the EGX70 went up by 0.85 per cent to end at 596.18 pts. The price index EGX100 rose by 0.66 per cent to conclude at 1041.1 pts. Furthermore, the market capitalization recorded EGP 477.580 billion on Wednesday. Turnovers below EGP 1 billion Through the closing session of Wednesday, the trading volume has reached 184.877 million securities, with turnovers worth EGP 946.302 million, exchanged through 21.316 transactions. Also during the closing session, 159 listed securities have been traded in; 47 declined, 84 advanced; while 23 kept their previous levels. Investors' Activities Arab and non-Arab foreign investors were net sellers on Wednesday seizing 2.84% and 14.72% respectively of the total markets, with a net equity of EGP 6.333 million and EGP 124.090 million respectively, excluding the deals. On the contrary, Egyptian investors were net buyers capturing 82.43% of the total market, with a net equity of EGP 130.424 million, excluding the deals.
