After experiencing a significant loss amounting to over EGP 15.99bn on Sunday, the Egyptian stock market surged minimally to register a gain of EGP 8.13bn Monday. This is the first gain witnessed by the market since 25 May.
The benchmark index EGX-30 rose by 1.53% to reach 8015.23 points, compared to Sunday’s 7894.73 points. The broader EGX-100 index also surged from 985.24 points to 990.94 points, a 0.58% increase.
The small and medium enterprises EGX-70 Index climbed by 0.5%, registering 563.51 points, compared to 560.73 points recorded Sunday.
The trading day closed with 109 gainers, 47 declines and 27 were unchanged.
Chairman of Arabia Online Brokerage Co. Hisham Tawfik said this is a “bounce back” from the losses the market has experienced.
Tawfik added that low share prices also contributed to the rise the market witnessed Monday.
Commenting on the capital gains tax law, the stock market expert said: “It is not a disastrous situation. Some investors still need time to study and reassess the market while others are choosing to enter”.
Stock market analysts as well as investors blamed the capital tax law, which was announced by the government last week.
Last Thursday, the bourse suffered from a major loss that registered over EGP 12bn.
During the first elections day, the bourse’s benchmark index EGX-30 dropped minimally from 8762.86 points on 25 May to 8736.28 points on 26 May, losing almost EGP 1bn.
On the second day of elections, following the announcement of interim Prime Minister Ibrahim Mehleb that the second day would be a national holiday, the market was closed. The third day, however, witnessed a notable plummet, with the market losing over EGP 6bn.