Is Ibnsina’s decline good for other health care companies?
The relative performance of Ibnsina’s share price to other companies within the sector on Sunday.
By Markets Chimp
3/4/18 11:00 PM
Ibnsina Pharma (EGX: ISPH) was the highlight of Sunday’s trading session on the Egyptian Exchange, shedding nearly 12.50% on the day but nearly 20% in cumulative losses over the last two sessions. The sharp decline seen in the stock price was attributed to Egypt's Economic Court’s ruling to charge Ibnsina – along with other companies – some EGP5 billion in fines for exercising monopolistic activities. Despite Ibnsina Pharma's efforts to appeal the court’s decision, the stock continued to slip, down on Thursday and Sunday.
However, we noticed a corresponding, yet notable gains for other listed stocks within the health care sector. As can be seen in the above chart, while Ibnsina fell significantly, many of the sector’s members managed to add between 4% to 7% to their market value. This may hint to funds re-allocation within the same health care sector as opposed to flowing in from other sectors.