Ghabbour extends drop on profit fears, Egypt index downBy ReutersFirst Published: January 25, 2009
CAIRO: Shares of Ghabbour Auto, Egypt's largest car maker by market value, posted their second largest daily fall in two months on Sunday, weighing on Egypt's market, on fears profits could slow.
Shares of the company, which said last year its profit growth could ease as Egypt's economy weakens, shed 6.14 percent to LE 13 ($2.34). It was the tenth straight session of declines for the stock, which has fallen 16.31 percent this year to Thursday's close.
The firm said in November it would not likely continue to match the 88 percent growth in net profit it posted in the third quarter as a worsening economy hits car sales.
"The automotive industry in the world is facing a lot of problems, so this normally has an effect on Ghabbour," said Karim Hosny, trader at Pharos Securities.
Shares of Orascom Construction Industries, Egypt's largest builder by market value, shed 5.42 percent to LE 101.40, extending declines to a fourteenth straight session.
Orascom Construction shares have dropped 23.62 percent this year to Thursday's close, the third worst performers this year on the CASE 30 index.
Shares of Orascom Telecom, the largest Arab mobile operator by market value, shed 8.53 percent to LE 21.23. Down 23.80 percent this year to Thursday's close, they are the second-worst performers on the index.
Shares of both firms were falling to match declines in their global depositary receipts, traded in London, late Thursday and Friday, when Egypt's local bourse was closed, traders said.
"Some investors who want to short Egypt's market have no other means of doing so then selling Orascom Construction and Orascom Telecom, which are the most actively traded," he says. "Some people anticipate the market will go down further."
The CASE 30 index fell 4.38 percent to 3,643.34 points, its thirteenth session of declines. The Hermes index dropped 3.64 percent to 355.60 points and the broader CIBC index shed 2.96 percent to 265.1 points. –Reuters
