Egypt construction stocks continue to rise

11 March 2014

Egypt’s construction sector share index is up 26 per cent year-to-date

Share prices of Egypt’s construction and real estate materials companies rose 1 per cent between 9 and 11 March, bringing its year-to-date increase to 26.17 per cent.

Hints by Field Marshall Abdul Fattah al-Sisi that he may run for president and further strengthen Egypt’s ties with the UAE, as well as government announcements aimed at addressing the country’s housing shortage, has prompted share price increases across the construction sector.

Egypt’s third-largest real estate company, Amer Group, saw its share price rise 104.1 per cent year-to-date. On 10 March, the firm announced it was considering bids from investors to participate in development projects, and said it is preparing to tender the second phase of the 6 October project in Cairo soon.

Talaat Mustafa Group (TMG) Holding, Egypt’s largest developer, is up 28.8 per cent year-to-date after it said in January that it was revising down its expected delay in construction work to four to six months instead of eight to 10 months. It also said it is targeting deliveries worth £E5bn ($718.1m) in 2014, compared with £E4bn in 2013.

Palm Hills Development Company, which concluded a £E583m share rights offering in December 2013, saw its share price increase 30.5 per cent year-to-date.

The EGX 30, Egypt’s benchmark index, is up 19.5 per cent year-to-date.

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