The wealthy Khamis family of Egypt has lost more than $50 million in the market value of their equity interest in Oriental Weavers over the past 16 weeks, as sustained selling pressures on the Egyptian Stock Exchange led to a significant decline in the company’s market capitalization.
The Khamis family is one of Egypt’s wealthiest families, having played a key role in the growth of the carpet industry in Egypt and the MENA region.
The family owns a majority stake of 56.58 percent in Oriental Weavers, a leading carpet manufacturer with finished products sold in more than 150 countries.
As of press time on July 14, shares in Oriental Weavers were trading at EGP6.45 ($0.34), up 0.78 percent from their market opening price this morning, as value investors continue to buy into the company after its shares fell below key technical support levels.
Since March 24, shares in Egypt’s leading carpet manufacturer have fallen from EGP9.01 ($0.477) per share to EGP6.45 ($0.342) per share, resulting in a 13.76-percentage loss for shareholders over the past 16 weeks.
Aside from the recent shift in market sentiment, in which investors reduced stakes in companies they believe are overvalued as part of a strategic capital preservation move, the decline in the market value of Oriental Weavers’ shares can be attributed to market reactions to the group’s double-digit profit decline in the first quarter of 2022.
The news comes as the Ukraine conflict and the accompanying economic sanctions against Russia have put a strain on the supply chain, causing energy and raw material prices to rise.
The market value of the family’s stake has decreased from EGP3.4 billion ($179.6 million) on March 24 to EGP2.43 billion ($128.54 million) at the time of writing this report, owing to the recent decline in the company’s shares.
This has resulted in a total loss of EGP963.4 million ($51 million) for the Egyptian multimillionaire family.