Cyprus Internet Directory Jobs In Cyprus
  Cyprus Internet Directory Search       
Google Search
Cyprus Internet Directory Search
Cyprus Comming Events    Cyprus 
Cyprus News Articles    Cyprus News 
and Articles
Cyprus Guide    e Guide
to Cyprus
Quick Links

By Peter Stevenson MEMBERS of Volunteer Doctors Cyprus have treated around 350 people at their free clinic in Nicosia since it opened three months ago, while two more, one in Paphos and one in Polis are due to open today. Limassol also has a free clinic, which was opened only last month, and plans have been drawn ...
Read More

SOME 10 days ago, foreign minister Ioannis Kasoulides raised expectations by announcing the possibility of a deal with Turkey for the opening of the fenced off area of Famagusta, for the return of its inhabitants. In exchange the Cyprus government would agree to the opening of Tymbou airport to direct flights. ...
Read More

By George Psyllides PRIVATE auditors have expressed doubt the electricity authority (EAC) could be considered a going concern and have asked its board to draft a credible plan to tackle the problem, according to the auditor-general’s 2012 report on the semi-state company. Among other issues, ...
Read More

Cyprus Internet Directory [ Cyprus Stock Exchange companies profits up 63% in 2007 ]

Cyprus Stock Exchange companies profits up 63% in 2007

Cloudy ’08 outlook wipes EUR 6 bln in market cap


Companies listed on the Cyprus Stock Exchange increased their combined profits for 2007 by 62.5% to EUR 1.57 bln (CYP 922 mln) compared to EUR 969.5 mln (CYP 567 mln) in 2006, according to Financial Mirror data, but fears that companies will not be in a position to maintain the double digit gains in 2008 has forced equity prices sharply lower.

The 62.5% profit growth of the CSE companies adequately justifies the 24% gain registered by the CSE Index in 2007, which saw the total market capitalization of the CSE climb to EUR 20.5 bln.

Since then however, equity prices have been sliding lower amid fears that the profit growth in 2008 will not be maintained at the robust pace seen in 2006 and 2007, which was instrumental in pushing equity prices higher.

The decline in the pace of profit growth was confirmed by Bank of Cyprus, which is promising only 11% increase in 2008 profit growth while Hellenic Bank is forecasting a 15% decline in profits.


Market cap below GDP


The more than 30% decline in equity prices since the start of the year has also corrected to a large extent the over-valuation of the CSE. By the end of February, the total market cap of the CSE had declined by EUR 6 bln to EUR 14.5 bln, as investors dumped stocks.

Measured another way, the decline has brought the total CSE market cap below Cyprus’ gross domestic product (GDP), which according to the Statistics Department, Cystat, climbed 4.4% in 2007 to EUR 15.5 bln.


Market p/e at 11.2x


The significant decline in equity prices has also corrected the price to earnings (p/e) ratio of the CSE, which according to Financial Mirror calculations has declined to a more manageable 9.5x on gross calculation basis. When adjusted for the weighted market cap of the profit reporting companies, the 2007 p/e is 11.2x.

The Financial Mirror method of calculating the p/e takes the market cap and results of the profit reporting companies and excludes all loss making, investment and special category companies.


Profit growth


The Main Market reported a 91% YoY increase in total profits to EUR 1.1 bln with the 15 stocks listed in this category accounting for 75% of total profits of EUR 1.5 bln.

The Parallel Market, listing a total of 16 titles lifted combined profits by 215% to EUR 54.5 mln, while the Alternative Market, which includes the results of 72 stocks boosted profit by 134% to EUR 203 mln.

The investment companies sector, hosting a total of 16 companies reported the worst performance, with combined profits declining 39% to EUR 143 mln from EUR 234 mln in 2006. The Shipping sector, with only one title had EUR 2.5 mln profit while the Special Category sector reported a loss of EUR 13.4 mln for 2007.

(Source: Financial Mirror)

Article Options

Email to a friend Email To A Friend     Print Article Print Article     Add Article To Favorites Add Article To Favorites


Other Related Articles

Cyprus News Article Submission

If you have an article and you wish to submit it to our database please send us an email. In your email subject quote "Article Submission" and attach the article to the email. To email us Click Here

Cyprus Holiday Villas-Investment Properties

A wide range of holiday villas, investment properties, building plots and apartments in Cyprus for sale by owner. Save money on your holiday villa in Cyprus and enjoy the holiday feeling for ever.