The 21 companies listed on the Cyprus Stock Exchange that announced their nine month results ending September 2006 reported a combined 132% increase in profits to EUR 466 mln, from EUR 201 mln profits reported in 9M05, according to a Financial Mirror survey, thus justifying the spectacular rise in share prices.
The 16 companies listed in the CSE’s Main Market reported a combined 130% increase in 9M06 profits to EUR 451 mln from EUR 196 mln in the same period a year ago.
Bank of Cyprus Pcl (BOCY) delivered half of the total Main Market profits by reporting a 158% YoY increase in 9M06 profit to EUR 225 mln and was the most profitable company on the CSE.
Laiki Bank Pcl (CPB) contributed a quarter of the Main Market profits total after reporting a 105% YoY increase in 9M06 profit to EUR 109 mln, and was the second most profitable on the CSE.
Hellenic Bank Pcl (HB) followed with the biggest percentage rise in profits among Main Market stocks, as its 9M06 profits climbed 591% YoY to EUR 35 mln. Very close behind was Louis Pcl (LUI) lifting profits by 61% to EUR 33.4 mln.
Of the 16 Main Market stocks, only Libra Holidays Group reported a 9M06 loss of EUR 13.55 mln, compared to a loss of EUR 11.9 mln in the same period last year.
The only other exception was A. Zorbas & Sons Pcl (ZRP), which saw a 5% YoY decline in 9M06 profit to EUR 3.07 mln.
Â
Strong gains
The other five stocks reporting their 9M06 results also recorded a substantial improvement in performance as their combined profits surged 223% YoY to EUR 14.6 mln from only EUR 4.5 mln in the 9M05 period.
A.L. Prochoice (PROP) recorded the best percentage growth in performance, lifting 9M06 profit by a whopping 7229% to EUR 5.5 mln from only EUR 75.000 a year ago, at par with Laiki Investments Pcl (LI), which saw 9M06 profits surge 161% to EUR 5.5 mln. Alliance Re (ALL) also reported an above-average performance, lifting profits by 2968% to EUR 1.4 mln.
Â
Rally justified
The spectacular performance of the CSE reporting companies also justifies the year-to-date rally, with many stocks doubling up their gains by early December from the beginning of the year.
In the case of BOCY, the 158% increase in 9M06 profits fully justifies the 113% gain in the value of the stock until December 4, when the Financial Mirror survey was conducted.
The same is also true in the case of Laiki and Hellenic, with both stocks having racked up solid gains since the beginning of the year and for most other titles which recorded substantial gains.
Proof that the market is behaving rationally may be arrived from the fact that only the share price of Libra is down 18% since the start of the year, reflecting the increase in losses up to 9M06 as well as the problems associated with its subsidiary ajet, formerly Helios, that recently terminated its aviation operations.
