Cairo – Mubasher: Up to 73% of companies listed on the Egyptian Exchange (EGX) are trading at price-to-earnings ratios of 10x and around 7% of companies are trading at P/E ratio of 10-15x, said Mohamed Omran, EGX chairman, in a statement on Sunday.
More than a third of companies whose yields on dividends exceeded 10%, he added.
Omran explained that half of the EGX’s sectors are trading at P/E ratio that is 10 times less and around 25% of sectors’ P/E ratio is 10-15x, while over 40% of sectors achieved a yield on dividends of more than 10%.
Global markets suffered a state of panic on Friday after the UK voted to leave the European Union (EU), said Omran, noting that that was normal for stock markets where news spreads quickly and has immediate impacts.
It is still early to pinpoint the Brexit’s effects on the global economy, the EGX chief added.
EGX indices continued to decline on Sunday after EGX30 plunged 5.7% or 415.60 points to 6,837.7 points by 12:17pm Cairo time.
