Abou Kir Fertilizers stock rally may be “running out of steam” –Bloomberg

The rally in Abou Kir Fertilizers and Chemical Industries’ shares may soon come to an end, Tamim Elyan and Filipe Pacheco write for Bloomberg. Data compiled by Bloomberg showed that the company’s shares “traded at an estimated price-to-earnings ratio of about 17, versus about 12 for Egypt’s main index as well as for chemical companies in emerging markets,” thanks largely to its overseas expansion. This year, however, “easing urea prices abroad and a factory shutdown for maintenance may dent sales,” leading analysts to believe the stock may be overvalued. Plans to float more of Abou Kir’s shares on the EGX are also expected to further pressure the stock, analysts say.