Pharos Research cut its fair value on Al Ezz Steel Rebars to EGP17.3 from EGP18 to reflect the company's performance in the first half of the year.

Last week, Ezz Steel, Egypt's largest steel producer, said its 2009 first-half net profit tumbled about 90 per cent to EGP101 million, but local demand remained strong.

Analyst Franziska Salem said the decline came on the back of margin deterioration and pressure from non-operating items.

The 42.2 per cent drop in revenue in the first half was due to a fall in overall sales volume and lower selling prices, Salem added.

Long steel volumes were up reflecting strong local demand while flat steel volumes continued to show weakness in both local and international fronts, the analyst said, maintaining a "hold" rating on Ezz Steel stock.

Shares of Ezz Steel traded at EGP15.19 Monday in Cairo. – Reuters