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.
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