FILE- The EGX trading session on December 12, 2017 FILE- The EGX trading session on December 12, 2017

7 companies confirm coronavirus has no negative impact on operations

Mon, Feb. 17, 2020
CAIRO – 17 February 2020: Seven-listed companies at the Egyptian Exchange (EGX) informed the bourse that the spread of coronavirus has no negative effect on their business and operations.

This came as a response to EGX’s inquiry about the negative effect of the virus on the business of the Egyptian companies.

Canal Shipping Agencies Company stated that its association with the Chinese market is limited by vessels transiting the Suez Canal only, and therefore the potential impacts on supply and operational plans are weak.

Among the unaffected companies by the Coronavirus are Alexandria Container and Cargo Handling, El-Nasr Clothing & Textiles Co. (KABO), Delta for Printing and Packaging, Egyptian Chemical Industries - Kima, Arab Polvara Spinning and Weaving (APSW), Misr Fertilizers Production Co. - MOPCO, and Alexandria Spinning and Weaving.

Oriental Weavers Carpet Company announced several points regarding the negative effects of the spread of the virus. First, the wholly owned subsidiary of the Oriental Weavers Carpet Company, OW China, located in the industrial area of Tianjin, contributes 1 percent to the company's total revenue. Second, China is a major competitor in many export markets for printed and non-woven carpets, which account for about 20 percent of the company's sales. And, based on how long the virus will remain untreated, this represents an opportunity for the Weavers Carpet Company to create new export markets.

Third, imports of raw materials for Oriental Weavers Carpets from China represent 5 percent of the total imports of raw materials for the industry. “We are currently looking for other suppliers in India and Turkey,” the company stated.

On December 31, the first case of coronavirus was reported from Wuhan, China. In January, the virus transmitted to Thailand. The World Health Organization (WHO) announced the outbreak of the virus after more than 40 cases were reported positive and one person died.

The number of confirmed cases worldwide reached 71,431 and 1,775 deaths worldwide.

Coronaviruses are a large family of viruses found in both animals and humans. Some infect people and are known to cause illness ranging from common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS), according to World Health Organization (WHO).

"A novel coronavirus (CoV) is a new strain of coronavirus that has not been previously identified in humans. The new, or “novel” coronavirus, now called 2019-nCoV, had not been previously detected before the outbreak was reported in Wuhan, China in December 2019," it clarified.

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