EGX Indices Lose EGP 175 Bln in Q1 as Coronavirus Hit Markets

The Egyptian Stock Exchange market (EGX) Indices lost about EGP 175 billion in 3 months, including a loss of about EGP 134 billion in March alone as coronavirus hit global markets.

The decline in the stock exchange indicators fell during the first quarter of 2020 due to pressure from the effects of the spread of the coronavirus and panic among investors after its declaration by the World Health Organization (WHO) as a global epidemic.

The main index EGX 30 dropped by 26.25 % to close at the level of 9,593 points during the three months ending in March.

While the EGX 70 EWI declined in March by 18% and by 21.48 % since the beginning of the year to close at 994.9 points.

The broader index "EGX 100" dropped by 21.3 % in March and 26.26%  since the beginning of 2020 to close at 1,030 points.

Moreover, the EGX 50 Index fell by 31.46 % since the beginning of the year to close at 1348 points.

Also, market capital lost EGP 134 billion during March to  record EGP 532.874 billion, losing EGP 175.39 billion during Q1 2020 to settle at EGP 532,874 billion

It is worth mentioning that the government decided on March 17 to reduce the stamp duty on non-residents to EGP 1.25 per thousand instead of EGP 1.5 per thousand, and EGP 0.5 per thousand instead of EGP 1.5 per thousand for residents, until the implementation of capital gains tax (CGT) at the beginning of 2022.

It was decided to reduce the Dividend Distribution Tax (DDT) to listed companies by 50% to 5%.