By: Heba El-Kordy
Cairo – Mubasher: Eastern Co has hit an all-time high on Sunday, shrugging off the bearish trend the Egyptian Exchange (EGX) witnesses.
By 12: 24 pm Cairo time, Eastern Co’s stock jumped 4.2% to EGP 489.
The stock is seeing significant levels due to the rise in tobacco prices, on which the stock surged 54% on 22 November.
Eastern Co’s stock is touching record highs since tobacco prices hiked, which positively impacted the company, financial analyst at Pharos Research Mohamed Hamza told Mubasher.
The stock is expected to maintain rising over the coming period on the back of this move, Hamza said.
The Egyptian tobacco company’s revenues are likely to surge to EGP 11.5 billion in fiscal year 2017/2018, he forecast, adding that profits are expected to rise to EGP 2.5 billion by the end of the current fiscal year.
The company has been benefited from its material inventory, which it used to own before the Egyptian pound floatation, he indicated, projecting cost of sales to hike over the coming period after it has finished the inventory, which may narrow down the company’s revenues.
Meanwhile, about 119,300 shares were traded on Eastern Co’s stock at a turnover of EGP 56.12 million.
Eastern Co was the only rising stock on EGX, as blue chips were down, pressured by foreign selling.
The benchmark EGX30 index lost 1.43% or 216.2 points to 14,872 points.
Translated by: Mai Ezz El-Din
