Egyptian multimillionaire businessman Hisham Talaat Moustafa’s investment in Talaat Moustafa Group Holding (TMG Holding) has dropped by more than $8 million in four weeks, while shares in the real estate holding have dropped by more than five percent.
TMG Holding is a leading player in Egypt’s real estate sector. Established in 1974 by the late Moustafa, the business has evolved to become one of Egypt’s largest real estate holdings.
Moustafa, who played a seminal role in the company’s transformation, controls a 43.16-percent stake in the conglomerate for the Talaat Moustafa family.
As of press time, shares in the real estate holding group were trading at EGP7.67 ($0.398) per share on the Egyptian Stock Exchange, 1.05-percent higher than their opening price, as investors continued to closely follow both economic and financial data.
Shares in the real estate holding have fallen from EGP8.08 ($0.42) on Aug. 8 to EGP7.67 ($0.398) at the time of writing, as market investors reduced stakes in the firm under the contagion effect of broad economic instability in Europe.
The market value of Moustafa’s 43.16-percent ownership in the real estate group has reduced by more than $8.2 million as a result of the five-percent drop in TMG’s share price on the Egyptian Stock Exchange (EGP157.6 million).
The recent decline in the market value of his shareholding brings his year-to-date loss on his TMG investments to $27.9 million as the local bourse remains under selling pressure.
TMG reported a net profit after tax of EGP554 million ($28.8 million) in the first quarter of 2022, a 27-percent drop from EGP434.6 million ($23.4 million) in the first quarter of 2021, owing primarily to a double-digit increase in revenue and increased efficiency due to management’s cost-cutting strategies.
The sustained increase in demand for real estate assets, which led to a rise in the price of developed properties, drove a 12-percent increase in revenue from EGP2.7 billion ($145.35 million) to EGP3.02 billion ($162.5 million) during the period under review.