Egypt Stocks Slump Most in a Year on Tax Plans; Abu Dhabi Drops - Bloomberg

Egypt Stocks Slump Most in a Year on Tax Plans; Abu Dhabi Drops - Bloomberg:



"Egypt’s benchmark EGX 30 Index fell the most in a year after the government said it’s preparing a levy on investor profits. Abu Dhabi’s measure also retreated. 




Egypt’s gauge dropped 4.2 percent to 7,894.73 at the close in Cairo. Trading was halted for 30 minutes after the broader EGX 100 Index slid 5 percent. About 803 million Egyptian pounds ($112 million) of stocks traded, compared with a one-year full-day average of 594 million pounds. Commercial International Bank Egypt SAE, the country’s biggest publicly traded lender, led declines with a 2.7 percent slide. Abu Dhabi’s ADX General Index fell from an eight-year high. 




Stocks in the North African country have tumbled 9.9 percent over the past four days amid plans for the tax and as investors collected profits on former army chief Abdel-Fattah El-Sisi winning the presidency. The government submitted a draft law today for ratification, calling for a 10 percent annual tax on net realized portfolio profits and cash dividends, according to a bourse statement.



“The market is panicking, especially retail investors that have made substantial profits,” Mohamed Ebeid, head of brokerage at EFG-Hermes Holding SAE, said by phone from Cairo. “This tax will have a long-term impact, especially on companies that are considering initial public offerings.”"



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