Bloom Egypt Securities CEO Mohamed Fathallah said talking about capital gains tax is a key factor in the decline in trading on the Egyptian Stock Exchange during today’s session.
Fathallah added in an interview with Al-Arabiya who the investors are in waiting for the procedures of the Egyptian Parliament, which is held in this period, and the question was raised again.
Fathallah explained that some are calling for the tax to be superfluous at the moment, in one moment in which the state provides sufficient support to sectors such as tourism and exports, adding: “Isn’t it time yet for there to be support for the stock? market as an indirect investment tool?”
He specified that the tax does not represent 0.001% of the state budget, and the result expected by the Ministry of Finance is less than one billion pounds, in one moment in which requires massive operations.
Fathallah pointed out that most direct investments can test the market by pumping indirect investments into the stock market, and therefore in based on this, the expansion is determined by direct investments in the country.
He continued, “Reversing the tax decision will give foreigners the opportunity to return to the Egyptian stock market again and will give the market an increase in its relative weight among global indices such as Morgan Stanley.”
In another context, Fathallah said that tech stocks open the appetite of investors, be they local or foreign, expecting the success of the e-finance offering, especially since tech stocks have a special attraction for investors.
And he indicated that the share allocated to the e-finance offer is about 90% of the sales offer, and about 10% for the public offer, revealing that the market trend could be affected by the anticipation of tale subscription.
Regarding the performance of the real estate sector in the market, Fathallah pointed out that the sector is going through economic cycles and sales may be a bit low in the current cycle, but some guiding decisions such as the Central Bank’s initiative to invest in the sector. real estate finance extend the period further, remove some obstacles and revitalize the sector.
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