The wealthy Khamis family of Egypt has lost EGP466.6 million ($25.2 million) on the market value of their joint interest in Oriental Weavers after the company’s share price fell by double digits in 48 days due to profit-taking and portfolio-rotation activities on the Egyptian Exchange.
Oriental Weavers, which has manufacturing facilities in three countries, is one of the world’s largest manufacturers of machine-made carpets.
Under the leadership of Yasmine Mohamed Khamis and other members of the Khamis family, who together possess a 56.58-percent controlling interest in the leading carpet maker, the Egypt-based group sells its finished products in around 150 countries worldwide.
The trading price of Oriental Weavers shares on the Egyptian bourse as of press time on May 11 was EGP7.77 ($0.42), down 1.27 percent from the market opening price of EGP7.87 per share on May 10.
Since March 24, shares in the leading carpet manufacturer on the Egyptian Exchange have fallen from EGP9.01 ($0.49) per share to EGP7.77 ($0.42) per share, a 13.76-percent loss for shareholders in just 48 days.
The decline in the market value of Oriental Weavers’ shares can be attributed to a recent shift in market sentiment as investors reduce or sell their stakes in companies they believe are overvalued as part of a strategic move to channel investment into less risky and fundamentally strong stocks trading at a discount.
As a result of the decline in the company’s shares, the market value of the Khamis family’s stake in Oriental Weavers has fallen from EGP3.39 billion ($183.45 million) on March 24 to EGP2.92 billion ($158.21 million) at the time of drafting this report.
This equates to a total loss of EGP466.6 million ($25.2 million) for the multimillionaire family, who are set to earn EGP376.3 million ($23.9 million) in final dividends from their shareholding in the leading carpet manufacturer.
The multimillion-dollar dividend will be paid from the group’s retained profits and reserves of EGP1.63 billion ($103.3 million) as of Dec. 31, 2021.