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PEX’s CEO: Palestinian exchange rides regional upheavals

2011-10-26

The Palestinian stock exchange has proved resilient in the face of regional political upheaval, but is still heavily undervalued because of the territory’s reputation for violence and strife, the bourse’s CEO said on Monday. Since the start of the year, the Palestine Securities Exchange (PSE) has fallen just 1.5 percent, against drops of up to 40 percent in some neighbouring markets, such as Egypt, chief executive operator Ahmad Aweidah said in an interview. “Shares are cheap. Companies are profitable. They are paying dividends. Intifada or no intifada, Arab Spring or no Arab Spring, military takeovers, curfews, roadblocks, we have been through it all and survived,” he told the Reuters Middle East Investment Summit. Aweidah said uprisings that have swept the Arab world this year would prove positive for the Palestinians, who expected more sympathetic governments to take power in various states. However, uncertainty over the unresolved conflict with Israel continues to weigh on sentiment, with the Palestinian’s recent unilateral bid for statehood recognition at the United Nations the latest cause for concern. Both Israel and its main ally, the United States, are opposed to the move, and the U.S. Congress has frozen aid funding to the Palestinians for pushing ahead with the plan.“We have gone through much worse than what we are seeing now,” Aweidah said. “The problem is that ‘brand Palestine’ is not there. This place is only talked about when people are being blown up. … The Palestinian equity story is not told.”

LOOKING TO LIST ITSELF

The PSE is based in Nablus, some 40 kilometre (25 miles) north of Ramallah, the Palestinian administrative capital in the Israeli-occupied West Bank. Some 45 companies are listed on the exchange, with a 46th due to join next month. Its total market capitalization is just under $3 billion, and average daily trading volumes have come in at just under $2 million so far this year, Aweidah said, adding that 47 percent of all shares were foreign-owned. Two companies, holding company Palestine Development and Investment Inc. and Paltel , account for 40 percent of that turnover. Pointing to the low valuations, Aweidah said Paltel was trading on a P/E ratio of 7.9, paying a dividend of almost 8 percent annually for the last three years, while the average P/E ratio for telecoms firms in the Middle East was 12. “It is beyond ridiculous,” he said. Aweidah is using such valuations to try to convince investors to buy into the exchange itself, and is hoping to list the PSE within the next three months. “We believe that listing the exchange will further enhance our credibility,” he said, adding: “Our biggest selling point is our upturn potential, which is huge.” The PSE is looking to sell up to 25 percent of its capital through private placements, hoping to secure backing from two or three big institutional investors, who could bring in know-how and business. Aweidah was due to travel to Dubai on Tuesday for talks with potential buyers, but did not give names. Amongst other potential boons for the exchange are steps by the local authorities to authorise and regulate a private pensions sector, which could generate funds of perhaps $100 million a month, some of which would be invested in stocks. But Aweidah also acknowledged that there were hurdles to development, citing, among others, a lack of diversity in the local banking sector and tight regulatory restrictions that discouraged banks from taking positions in the stock exchange. Despite these problems, along with the constant worry of a deterioration of relations with Israel, Aweidah said he believed Palestinian shares remained a sound investment. “If you had invested $1,000 in the Palestinian exchange in 1997 (when it opened), today you would have $5,000, despite everything that has happened. That’s not bad,” he said.


 

2018-02-22
The PEX records average PE of 13.8x and average P/BV of 1.23x

2018-02-21
NSC posts net income of JD0.37 million at the end of 2017

2018-02-21
UCI records net income of $0.68 million at the end of 2017

2018-02-21
TIC proposes 10% cash dividends for the year 2017

2018-02-19
APC reports net income of JD1.20 million at the end of 2017

2018-02-19
PIBC reports net income of $3.91 million at the end of 2017

2018-02-19
PID realizes net loss of JD0.01 million at the end of 2017

2018-02-19
PRICO realizes net loss of JD13.49 million at the end of 2017

2018-02-19
RSR reports net income of JD0.48 million at the end of 2017

2018-02-19
NIC posts net income of $7.70 million at the end of 2017

2018-02-19
NIC posts net income of $7.70 million at the end of 2017

2018-02-19
JCC posts net income of JD0.51 million at the end of 2017

2018-02-19
ABRAJ records net income of $2.25 million at the end of 2017

2018-02-18
WASSEL posts net income of 0.06 million at the end of 2017

2018-02-18
SANAD records net income of $10.05 million at the end of 2017

2018-02-18
BPC records net income of $10.28 million at the end of 2017

2018-02-18
PADICO posts net income of $5.68 million at the end of 2017

2018-02-18
WATANIYA realizes net losses of $6.64 million at the end of 2017

2018-02-18
NCI posts net income of $0.16 million at the end of 2017

2018-02-18
AHC realizes net losses of JD1.52 million at the end of 2017

2018-02-18
AIB posts net income of $6.40 million at the end of 2017

2018-02-18
JPH records net income of $6.18 million at the end of 2017

2018-02-18
AIG posts net income of $3.12 million at the end of 2017

2018-02-18
JREI posts net income of $0.01 million at the end of 2017

2018-02-18
MIC posts net income of $3.26 million at the end of 2017

2018-02-18
LADAEN records net losses of JD0.05 million at the end of 2017

2018-02-18
PIIC records net income of JD5.50 million at the end of 2017

2018-02-18
AZIZA posts net income of JD3.18 million at the end of 2017

2018-02-18
APC proposes 50% cash dividends for the year 2017

2018-02-18
PALTEL recommends 40% cash dividends for the year 2017

2018-02-18
GUI proposes 20% stocks dividends and 10% cash dividends for the year 2017

2018-02-18
NIC proposes 25% stocks dividends and 25% cash dividends for the year 2017

2018-02-18
ELECTROODE proposes 12% cash dividends for the year 2017

2018-02-18
NAPCO proposes 5% cash dividends for the year 2017

2018-02-18
BOP proposes 13.5% cash dividends for the year 2017

2018-02-18
TRUST proposes 50% stocks dividends and 20% cash dividends for the year 2017

2018-02-15
A momentum in the dividends proposals and varied financial performance for the blue-chips

2018-02-15
TNB posts net income of $9.20 million at the end of 2017

2018-02-15
AQARIYA posts net income of JD 0.39 million at the end of 2017

2018-02-15
PALTEL posts net income of JD70.53 million at the end of 2017

2018-02-15
PALAQAR records net income of JD3.77 million at the end of 2017

2018-02-15
GUI records net income of $3.77 million at the end of 2017

2018-02-15
PEC posts net income of $8.64 million at the end of 2017

2018-02-15
GMC posts net income of JD1.78 million at the end of 2017

2018-02-15
TIC records net income of $2.19 million at the end of 2017

2018-02-15
BJP posts net income of JD1.64 million at the end of 2017

2018-02-15
ISBK records net income of $14.53 million at the end of 2017

2018-02-15
PICO reports net income of $4.79 million at the end of 2017

2018-02-13
TRUST records net income of $5.43 million at the year 2017

2018-02-13
PSE reports net income 0.68 million at the year 2017

2018-02-13
BPC proposes 2.7% stocks dividends and 20% cash dividends for the year 2017

2018-02-13
ELECTRODE posts net income JD0.07 million at the year of 2017

2018-02-12
VOIC posts net income of JD6.83 million at the end of 2017

2018-02-11
APIC reports net income of $17.44 million at the end of 2017

2018-02-08
Inactivity state in the market with the approaching end of the disclosures’ period

2018-02-08
VOIC recommends 60% cash dividends for the year 2017

2018-02-07
QUDS posts net income of $11.18 million for the year 2017

2018-02-06
ARAB reports net income of JD0.05 million for the year 2017

2018-02-05
PCMA and JSC signed memorandum of understanding

2018-02-05
BOP proposes distributing 13.5% cash dividends for the year 2017

2018-02-05
Nasdaq and Palestine Exchange sign new market technology agreement

2018-02-05
BOP reports net income of $54.00 million at the end of 2017

2018-02-01
NAPCO records net income of JD0.46 million at the end of 2017

2018-02-01
Several transactions in the PEX and the companies have started their disclosures

 

 

 
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