Juhayna Food Industries, Egypt’s biggest producer of packaged milk, rose the most in six months after filing documents with Egypt’s antitrust commission in response to claims of monopolistic practices.
Shares of the Cairo-based company climbed 4.8 percent, the most since April 13, to 4.82 Egyptian pounds at the 2:30 p.m. close in Cairo. The benchmark EGX 30 Index gained 2.6 percent. The documents filed by Juhayna defend against allegations it is not paying a fair price for raw milk from farmers, Al Alam Al Youm reported today. The company agreed with farmers to link the milk price to what the farmers pay for fodder, the Cairo-based newspaper cited Juhayna’s deputy financial manager Sameh El Hudeibi as saying.
“From the company’s communications and financials, it is evident they are not paying a fixed price for raw milk, which is what some of the farmers are claiming,” said Shaymaa El Nemr, an equity analyst at Cairo-based Pharos Holding who has a “hold” rating on the stock. “The fluctuation in the price they are paying farmers supports the company’s position.”