More like apathy? Egypt's stocks fall on election uncertainty
Egypt’s main index fell on Wednesday as voting in the presidential elections continued and reports surfaced of a possible capital taxes.
The benchmark EGX30 dropped 2.2 percent to 8,537 points, while the broader EGX70 fell 1.3 percent.
“Reports on possible new taxes to be imposed on capital gains drove stocks down,” Mohamed Metwally, equity trader at Cairo-based Prime Securities, told Ahram Online.
Earlier on Wednesday, Reuters cited an anonymous source in the Egyptian government as saying they were studying imposing new taxes on capital gains in the bourse as well as on dividends.
The continuing uncertainty surrounding Egypt’s presidential election is another factor pulling the market down, said Metwally.
The election started on Monday and was planned to take two days but as turnout was below expectations the election committee extended voting by one day. This move came despite the objections of both presidential candidates.
Egyptian investors were net buyers to the tune of LE105 million while Arab investors were mostly selling at a net value of LE85 million.
Eastern Tobacco was the only gainer in the EGX30 index, rising 0.48 percent to LE155 per share.
Market bellwether Commercial International Bank (CIB) declined 1.74 percent to LE38.09 per share while Global Telecom Holding fell 2.72 percent to LE5.39 per share.
Real Estate Talaat Moustafa Group holding dropped 3.7 percent to LE9.6 per share and Palm Hills fell 2.81 percent to LE4.5 per share.
- Understanding the ripple effect: 8 reasons the US economy has slowed down in Q1 of 2015
- Can Bahrian emerge from the oil price plunge 'stronger than ever'?
- Egyptian stocks plummet as Yemen confict deepens
- UAE sweetens flotation regulations to attract more investment
- Replacing Switzerland? Why Lebanon isn't keeping its banking secrecy a secret
- Reports: Israeli Election Date Likely to be May 22
- Egypt firms struggle as political uncertainty hits economy
- Egypt debt insurance cost at record, more currency fall seen
- Japanese Yen Surges as Stocks Drop on Election Results, China Bank Earnings (Euro Open)
- Taiwan Stocks Plummet 6.2 Percent to Lowest Level in Four Years