Orascom Construction Industries’ London-traded equities are trading at a discount to local shares after the global depositary receipts of Egypt’s biggest publicly traded builder tumbled for a second day.
The GDRs sank 5.4 percent yesterday, the most since Jan. 28, to $38.50, or the equivalent of 226.38 Egyptian pounds. Orascom stock in Cairo last traded at 227.07 pounds on Jan. 27 before the government halted trading in the wake of protests seeking to end President Hosni Mubarak’s 30-year rule. Orascom Telecom Holding SAE declined 0.9 percent in London. Bond yields rose yesterday and the cost of insuring Egyptian debt climbed.
“There have been ebbs and flows in market sentiment and the longer the situation draws on the more uncertain it becomes,” said Chet Riley, a Nomura Holdings Inc. analyst based in Dubai. The two-day drop, which is not specific to the company, “seems to suggest investors expect the market to fall.” Stock trading in Cairo resumes on Feb. 13.
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