Last Week’s Market Summary
EGX30: 11,301 (+1.6%) weekly change, YTD (+4.2%)
Traded Value 1W Avg: EGP 619M, (+26%) 90D Avg.’
EGP:USD: 15.70 (0.0%) weekly change
Taxes imposed on EGX gains🧾
Starting January 2022, a 10% tax will be imposed on capital gains in the stock market. Capital gain is defined as the difference between the selling value and the acquisition cost and any commission paid.
Who is affected🤷: EGX board member Ahmed Abou El-Saad said that the idea of applying taxes on a small-sized emerging market will have a negative impact, and could lead to market contraction. Abou El-Saad pointed out that the ministry of finance did not coordinate with the EGX administration in determining the date of issuing this treatment, which coincided with the application of the new price limits, which may lead to aggressive movements in the market this week.
Why is this important🤔: The capital gains tax controversy has been around for the past six years. In 2015, the Egyptian government decided to impose a 10% tax on capital gains in the stock exchange, but the law didn’t go through. Since 2015, the capital gains tax law has been postponed six times. It is worth mentioning that the stamp tax on the purchase and sale of securities was reduced in March 2020 to 0.5 per 1,000.
Your Souq is now Amazon.eg📦
After more than 10 years, Souq.com in Egypt has rebranded into Amazon.eg.
Who is affected🤷: Existing Souq.com customer information including credentials, wish lists, orders, delivery addresses, payment methods, and customer support queries will seamlessly and safely transition to new Amazon.eg accounts. Customers — whether new, coming from Souq.com or from Amazon outside of Egypt— can shop on Amazon.eg for delivery in Egypt by using the Amazon mobile app and selecting ‘Egypt’ from the settings, according to Amazon.
Why is this important🤔: Amazon.eg provided more than 3,000 jobs and established over 15 delivery stations throughout Egypt. The Egyptian market ranked first in terms of Amazon’s investments in the African continent. Amazon acquired Souq.com in 2017, with reports at the time indicating that the deal was around $1bn.
CIRA, Orcas team up to develop a distance learning platform🏫
Cairo for Investment and Real Estate Development (CIRA) announced the launch of an integrated educational model in partnership with Orcas Company. The joint venture aims to provide a platform for education through social media for better communication between teachers and students and to provide first-of-its-kind support programs for blended learning after working hours.
Who is affected🤷: The company added that an alternative solution will be provided to traditional private teaching programs, and the courses offered will cover theoretical and practical learning objectives. CIRA also noted that the integrated model will be presented through the Orcas online platform and the 21 schools owned by CIRA over seven governorates.
Why is this important🤔: The company said in a statement to the Egyptian Stock Exchange today, that the joint venture works as one of the company’s efforts to raise the quality and possibility of the modern learning experience in the Egyptian market, in line with the Egyptian government’s plan to abolish external private lessons and improve the quality of education.
- Elsewedy Electric (SWDY) signs $16.7 million contract for a substation in Ghana
- Fawry (FWRY) named number one Fintech company in MENA by Forbes
- SODIC’s (OCDI) unit acquires 123-acre in West Cairo
- Kima signs MoU to restructure loan for ammonia, urea project
- AMOC collaborates with refining companies to boost production
WhatsApp fined $267 million for breaching European Union privacy law💬
Facebook-owned WhatsApp has been fined a whopping $267 million for breaching European Union (EU) data privacy rules.
Who is affected🤷: Ireland’s Data Protection Commission (DPC) noted that WhatsApp did not properly inform EU citizens how it handles their personal data, including how it shares that information with Facebook. Europe’s General Data Protection Regulation (GDPR) governs how tech companies gather and use data in the EU. Under the GDPR law passed three years ago, the authorities have the power to fine companies up to 4% of their annual sales.
Why is this important🤔: The fine imposed on WhatsApp is the Irish regulator’s biggest penalty for GDPR violations in Europe where the GDPR requires companies to be clear about how they use customer data. A WhatsApp spokesperson said that the company plans to appeal and that it is committed to providing a secure and private service, and will continue to do so.
- Delta Insurance (DEIN) reported a consolidated net profit of EGP 232.14 million for fiscal year (FY) 2020/2021 a 29% YoY increase
- Dice Sport and Casual Wear (DSCW) posted a consolidated net profit before minority interest of EGP 4.79 million in the first half of 2021, versus a net loss of EGP 91.58 million in H1 2021
- Marseille Almasreia Alkhalegeya For Holding Investment (MAAL) incurred a net loss before minority interest of EGP 10.38 million for the first half of 2021, compared to a profit of EGP 1.39 million in H1 2020
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