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Egypt’s bourse losses register EGP6.4bn in April

The Egyptian Exchange suffered losses, registering an EGP6.4bn loss in April, with the announcement of the executive regulations of the capital gains and dividends law, reports UAE-based Al Bayan.

In early April 2015, the Egyptian government approved the executive regulations of the law, which imposes a 10 per cent tax on capital gains and dividends.

The benchmark index EGX 30 dropped to 8672.29 points in April, down by 462.49 points or 5.06 per cent compared with 9134.78 points in March.

Sameh Gharib, head of technical research, Roots Securities Brokerage, says the index plunged to 8317 during the month, but purchasing powers seen in the last week helped trim its losses.

Gharib adds that the index is still moving sideways between the level of 8124 points and 10066 points, anticipating continued movement within such a range in May.

Meanwhile, the small- and mid-cap index EGX 70 declined by 8.15 per cent to end at 475.44 points, compared with 517.61 points by the end of March. The broader index EGX 100 also fell 7.07 per cent to 971.75 points from 1045.63 points.

EGX 70 fell to an eighteen-month low of 460 points, but was propped up in late April by strong buying, says Gharib.

The index is still moving downwards, he says, adding that it may reverse its direction in May.