Egypt Watch

Egyptian Stock Exchange heading to delist Juhayna

The Egyptian Stock Exchange is heading to write off Juhayna Dairy Company, which is subjected to exceptional measures.

The company’s founder, Safwan Thabet, was arrested, and then his son Seif, the CEO.

During the last few weeks, the Egyptian authorities began to put checkpoints on the road in front of Juhayna to prevent the company’s cars from moving. This arbitrary measure led to the revocation of the licences of 94 sales cars, 12 heavy transport vehicles, and 26 heavy transport vehicles belonging to transport contractors, which led some of them to refrain from dealing with the company. Following this procedure, the shares of the company listed on the Egyptian Stock Exchange fell by 4.55 per cent, reaching its value at EGP 5.25.

The company’s stock continued the series of declines from its highest value last July, when it scored about EGP 8.24, recording a decline rate of more than 35 per cent. The Stock Exchange management decided to transfer Juhayna Food Industries Company to List D, claiming that it did not commit to sending the financial statements for the fiscal year ending on December 31, on the dates specified.

News websites revealed the real reasons behind the arrest of Juhayna Company owner Safwan Thabet and his son Seif. Sources stated that the arrest came due to the army’s desire to control the dairy industry in Egypt under the guidance of Sisi.

On the other hand, the main index of the stock exchange EGX30 declined at the end of trading on Tuesday by 0.67 per cent to the level of 10,240 points. The transactions of foreign investors recorded a net sale of EGP 28.5 million. The transactions of Egyptian investors recorded a net purchase of EGP 17.4 million. Foreigners’ sales of shares caused losses to the stock market during the last period, while Arab investors’ transactions today recorded a net purchase of EGP 11 million.