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Rally of 368% in Egypt Fertilizer Maker Running Out of Steam

  • Shares gain as co. benefited from exports, higher production
  • Stock is the 2nd biggest gainer in Cairo’s main index in 2018
Rising Trend
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The rally that powered the shares of Egypt’s biggest producer of fertilizers to a more than fourfold surge since January last year may finally be running out of steam.

Abou Kir Fertilizers & Chemical Industries has gained as additional local output meant that the company can export more at a time when Egypt has floated its currency. The shares traded at an estimated price-to-earnings ratio of about 17, compared with about 12 for Egypt’s main index as well as for chemical companies in emerging markets.