Titan, which has two cement plants in Beni Suef and Alexandria, controls about 9 percent of Egypt’s fast growing cement market, the Athens-based brokerage said in a report.
“The current social turmoil might prove to be a negative catalyst for Titan’s shares,” National Securities said. It nonetheless added that “cement production and consumption cannot be disrupted on a constant basis by such turmoil, and this has been the case so far.”
Titan shares fell 2.1 percent to 15.78 euros at 12:50 p.m. in Athens today, valuing the business at 1.28 billion euros ($1.75 billion).
Other Greek companies face limited risk from political uncertainty in Egypt, the report said. Piraeus Bank SA has 48 branches in Egypt with 1.7 billion euros in assets, or about 3 percent of total assets, and National Bank of Greece SA, the biggest Greek bank, has 15 branches with 73.8 million euros in loans.
Both presences are “quite limited” at a group level, National Securities said. National Bank shares added 0.1 percent to 6.98 euros while Piraeus gained 1.2 percent to 1.66 euros in Athens.
“Assuming the situation remains under control and that orderly change in leadership can preserve public order and minimal business disruptions, we expect minimal tangible impact on fundamentals,” the brokerage firm added.
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