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Palm Hills Falls Most in 4 Months After Reporting 2011 Loss

Palm Hills Developments SAE (PHDC) tumbled the most in almost four months after the Egyptian developer of luxury property reported a 2011 loss that was more than estimated following last year’s popular uprising.

The shares declined 5.6 percent, the most since Nov. 14, to 2.03 Egyptian pounds at the 2:30 p.m. close in Cairo, valuing the company at 2.13 billion pounds ($353 million). That pared the stock’s surge to 86 percent this year. The benchmark EGX 30 Index retreated 1.5 percent today.

Palm Hills said it had a loss of 331.3 million pounds in 2011, compared with a profit of 526.4 million pounds in the previous year. The median of five analysts’ estimates compiled by Bloomberg was for a loss of 32 million pounds. Annual revenue fell to 560.1 million pounds from 1.7 billion pounds a year- earlier, the Cairo-based company said in a filing to the Egyptian bourse today.

Palm Hills has traditionally targeted the upper-end of the market which has slumped because of the unrest,” said Hany Samy, director at CI Capital Research who has a hold rating on the shares.

The EGX 30 Real Estate Index (EGXREAL) declined 3.9 percent today, trimming this year’s advance to 58 percent. The gauge lost 67 percent last year.

To contact the reporters on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net; Alaa Shahine in Dubai at asalha@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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