Egypt's El Sewedy Electric says it expects to improve its performance during the second half of 2011 as demand for its products recovers.
Cables, the group’s main product, saw sales volumes increase by 13 per cent during the second quarter of 2011, on the back of heightened government spending in Egypt and Syria, and unprecedented growth in demand from Qatar, Kuwait and Saudi Arabia.
The group also said it expects its transformers segment is to perform better during the second half of 2011, after a spate of new orders, mainly from Syria.
Beltone Financial said in a note to investors Tuesday that it was maintaining its recommendation on buying Sewedy stock.
The investment bank said it expected a stagnant market for the group's products in Egypt, Syria and Libya, but believed it would be counterbalanced by robust exports in the rest of Africa and the Gulf.
''We continue to maintain our optimistic outlook for the Turnkey segment, driven by the growth potential awaiting the African infrastructure sector," Beltone said.
The turnkey segment was the best performer for the group during the second quarter of the year, witnessing 20 per cent growth in its backlog on the segment’s favourable exposure to the markets in Africa.