In The Daily Beam issue published on 26 May 2019, we had advised our clients to be “cautious and avoid the sector altogether” in a story titled “Egypt’s Cement Industry – Another Gloomy Phase”. Ever since then, cement companies’ stocks—without exception—have been witnessing a sector-wide sell-off. The eight EGX-listed cement stocks lost c.12% on average in just one month, underperforming the EGX 30 which was almost flat (+0.7%) over the same period. Tourah Cement (TORA) was the bloodiest (-19.6%), followed by Arabian Cement (ARCC) (-17.5%) and TORA’s parent company Suez Cement (SUCE) (-17.2%). Meanwhile, South Valley Cement (SVCE) declined the least (-4.4%).
For more details, please read the full report below.