By: Mahmoud Salah Eldin
Cairo - Mubasher: On its first day of trading on the London Stock Exchange (LSX), the Arabian Food Industries Company’s (Domty) GDRs declined 7.7%.
The company’s board previously approved the decision to list the company’s global depositary receipts (GDRS) on the London Exchange with a minimum of 33% of local capital.
On Wednesday, Domty’s stock registered the highest traded value on the Egyptian Exchange (EGX) as investors were seeking trading the GDRs, said Ayman Fouda, head of capital market committee at the African Economic Council.
The stock dropped 3.15% and closed at EGP 6.45, falling to remain over EGP 6.66.
The continuous declines the stock saw since its listing, is a result of not disclosing its fair value, and not promoting it properly by showing the company’s actual results, added Fouda.
This led to a fall in the stock price from EGP 10.85 to 6.31 its lowest level that was seen on Wednesday’s trading session, meaning that it dropped 41.8% since its inception less than 6 months ago, Fouda Explained.
Translated by: Moslem Ali
