Companies comment on Egypt operations

2011-02-15 11:02

Resuming operations over the past week, but the country’s stock exchange has said it would remain closed until stability returns to the economy and financial sector.

The government shut the exchange after political protests caused the benchmark index to plunge by 16% in two days, and analysts have warned of a renewed sell-off by worried investors once trading resumes.

Egypt’s second-biggest listed property developer said on February 8 it had resumed operations following a one-week hiatus.

It said it had confirmed with Egypt’s stock exchange that its shares would be trading normally when the bourse reopened.Palm Hills Development was among the biggest fallers on the main index when it last traded on January 27.

Egypt’s largest steel maker said its plants were operating although not at full capacity and said an investigation involving the chairperson would not affect company activity.

Egypt’s biggest listed company said it had resumed work at almost 90% of its construction sites in Egypt as of Sunday February 6.

OCI said production rates were normal at its fertiliser plants and exports were under way.

Egypt’s biggest investment bank, which has up to $6.2 billion in assets under management, said it had resumed work and there had been no damage to any of its assets or property.

Seal estate firm SODIC has resumed construction in its main developments and all projects are on schedule, a statement on the firm’s website said.

Fixed-line monopoly Telecom Egypt said there were no changes to the firm’s board and that the company was currently evaluating all its locations to check for damage.

Appliance maker Olympic Group said its operations were resuming gradually but sales were still significantly lower than usual.

The firm said there had been no damage to any of its assets and no changes to its board.

LECICO, the ceramics maker said operations have been disrupted for the past two and a half weeks.

It agreed to increase staff pay and benefits after a two-day strike.

Productivity was down 30% during the past two weeks and local commercial and export activity halted for eight days, it said.

Suez Cement, the country’s largest listed cement company said it had resumed shipments of cement stocks that had been suspended by the political protests.

Suez, a subsidiary of Italcementi, resumed operations in all its factories as of February 5.

Egyptian Resorts real estate firm, which makes most of its money selling land to developers, said it had returned to full operations as of February 6.

None of the company’s assets were damaged and its flagship 41 million square metre plot Sahl Hasheesh development was secure, it said.

Al Baraka Egypt Bank, a Cairo-based Islamic Bank, in which Bahrain’s Al Baraka Banking Group (ABG) has a controlling stake, said it had returned to full operation.

Emad Fawzi, CFO of Maridive and Oil Services, the Middle East’s biggest oil services company by fleet size, said it had been operating normally.

“We have no country risk or currency risk because Maridive is a dollar-dominated company.”

Haitham Moneim of Oriental Weavers, the investor relations manager at the world’s largest machine-woven carpetmaker said on February 6: “In the past week, we closed all our production facilities like all other companies, and we secured our showrooms. To avoid any delays to clients, we shifted orders from plants in Egypt to plants in the United States and in China.”

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