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PEX: Dividends Yield attracted several investment funds

2011-06-05

Palestine Stock Exchange managed to attract a number of investment funds, following the dividends yield and what investors achieved of profits over the listed companies, in which has changed it to an attractive investment environment in the last period. As Abu el Homous reported: "Despite of the relatively small Palestinian stock exchange, where only the market value of listed companies doesn’t exceed $ 2.8 billion; it is a promising investment environment for several reasons which are : ROI, regulatory tools and high transparency. Dividends yield can be seen in Palestine as an average of 6% in the last five years, which is the highest return on investment in various investment instruments in Palestine".

In PEX, investors achieve profits and returns, whether cash or shares, that exceed bank"s returns. Abu al Homos pointed out that most of the listed companies prices in PEX are currently less than their book values, which he considered "very significant investment opportunity".

He also mentioned the entrance of Arab and Foreign investment funds as investors in PEX in the previous months, such as "Rasmala" investment fund which located in UAE and "Siraj" fund which includes Palestinian, Arab and Foreign investors.

He proceeded; listed companies in PEX recorded net profits that exceeded $600 million in the period of 2007-2009, while dividends distributions to shareholders reached more than $333 million, where 15 listed companies in PEX had distributed profits for the last year. Moreover, PEX is still the only Arab stock market that its index closed at an increase during the transactions of the first quarter of the current year.