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Aweidah: The PEX is under the mercy of the financial crisis, the new tax law and clogged political horizon

2012-07-23

Unlike previous times in which were linked to global crises and other external factors, the extreme vulnerability of Palestine Stock Exchange for months is 100% due to domestic reasons, as the CEO Ahmad Awaidah reported. Trading value declined from $1.2 billion in 2008 to $500 million in 2009, $450 million in 2010, to $360 million in 2011. Awaidah said, "We"ll be lucky if the trading value reached $300 million this year." 

He added, in an interview with journalists: "the largest decline in 2008-2009 was linked primarily to the global financial crisis, followed by Israel"s war on Gaza in late 2009, and then the failed merger deal between Palestine Telecommunications and Kuwati Zain and the parallel trading halting on PALTEL’s share for 8 months which is the most influential share in the market, and then the financial crisis in Dubai.

The CEO of Palestine Stock Exchange PEX; Mr. Ahmad Awaidah said: “Unlike previous years, the decline in the PEX’s trading volume this year comes from 100% domestic reasons, where the Palestinian National Authority lives in the most difficult financial crisis that resulted in the amended income tax law that subjected a portion of the capital gains from trading stocks to income tax to the contrary of other regional countries’’. Awaidah drew that there is a great concern by the private sector of losing Palestine investment attractiveness due to getting lost in the economic policy and the clogged political horizon. He indicated: “The only comfort we have is that the picture we have is no different than other markets in the region, perhaps the situation is worst in some markets such as Amman Stock Exchange”. Awaidah predicted a significant decline in the corporate profits this year due to the new income tax Act and postponement of taking advantage of investment promotion incentives, as well as the strengthening of the dollar, as most corporate earnings are in Israel Shekel, while have dollar obligations. He reported: "The effects of these factors will be evident in the companies" results for the first half of the year". “There are no magic solutions” said Aweidah, adding, "What can be done now is to increase the supply and demand through listing new companies. There are efforts to transform family companies into public shareholding companies, and I believe that there is at least one company is on its way to be transformed".

Palestine Securities Exchange management is seeking to develop non-operating income from sources to compensate for the decline in revenues that comes from trading operations; the goal of this revenue (non-operational) is to cover 70% of operating expenses. In 2008, PEX achieved $5.5 million revenues from trading operations, declined in 2011 to $1.4 million; Awaidah expects not to reach $1 million for this year. PSE Company realized a loss of $298 thousand in the first half of this year, compared with a profit of approximately $91 in the first half of the last year. Awaidah reported: for the first time, the PSE realized an operating loss. This is not caused by an increase in expenses; they are stable for almost four years, despite the expansion of investment in technology and other investments. The basic cause for the loss is the decline in trading commissions. He added, “Over a year ago we focus on other sources of income, such as the return on the loan to the parent company PADICO holding, leasing revenues from part of the stock exchange headquarter in Ramallah, and CDS returns that are being transferred to the settlement agent. Also, the membership of national payment system in the Monetary Authority would allow the CDS to provide other services to investors beside to the revenue from membership fees for brokerage firms, and the listing of the listed companies, and corporate sponsors for the activities of PEX.

According to Aweidah, the income from these sources now covers 50% of the operating expenses of PSE, and the strategic goal is to cover 70% of the expenses. Some investors felt that trading volumes decline is due partly to the increase in the trading commission (0.00045), while it"s not exceeding quarter of this value in other regional countries. Awaidah reported "we will discuss this issue when our trading volumes reach such other markets’, the commission reduction is not an option now; all brokerage firms are realizing losses, one closed due to bankruptcy. Also, many foreign companies operating in Palestine, as banks, are achieving significant profits from the Palestinian market, so why not to be listed in PEX?. In this context, he said:  efforts took place, particularly for joint Jordanian companies operating in Palestine, but the basic problem lies in the double taxation between Palestine and Jordan, the Ministry of Finance refused to give these companies exemptions for the purpose of the common listing. He added: we got to despair with the Ministry of finance.

 

 

 


 

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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