Stock indices fell at the end of Thursday’s trading session as Arab and foreign investors tended to sell and Egyptian investors tended to buy.
The main EGX30 index fell by 1.18 percent to 8,340.4 points, the small and medium stocks EGX70 index fell by 0.87 percent to 589.59 points, and the broader EGX100 index fell by 0.82 percent to close at 1,037.20 points.
Total trading stood at LE745.8 million in 24,300 transactions and the market capital lost LE3.3 billion to close at LE480.7 billion.
Minister of Investment Ashraf Salman said the tax on capital gains would not be cancelled. “We need to reduce the budget deficit,” he said, adding that he is working on attracting new investments by removing bureaucratic obstacles, resolving disputes with investors and amending laws.
“Egypt has the second largest return on investment rate after Brazil,” he added.
Meanwhile, investigations are still taking place with members of the Beltone board for buying 250,000 shares of EFG-Hermes before the announcement of their company’s acquisition of 20 percent of Hermes in partnership with businessman Naguib Sawiris.
A source said if those members made use of inside information they would be fined or sentenced to imprisonment.
The Financial Supervisory Authority agreed to publish the acquisition offer for buying 114.6 million shares of EFG-Hermes at a price of LE16 per share.
Edited translation from Al-Masry Al-Youm
