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Sahem Weekly Trading Report [22-26/09] 2013
With the approaching end of the first nine months of the year 2013, the trading movement indicates anticipations for positive factors represented in an improvement in the companies’ performance for the period and achieving good profits in this routine phase. With the quiet movement, the trapped liquidity and the low circulation of random speculations; investors’ expectations and behaviours in Palestine Stock Exchange PEX vary, but in all stages; expectancy towards annual yield is the preponderance based on the quarterly financial disclosures, and this grants the PEX its uniqueness and results into stability- even if gradually. With the sequencing of activity in the PEX along with varying the causes and motivations of anticipation among investors, numeric incentives appear from time to time to significantly impact the world economies. Despite the scarcity of viable economic stability in Palestine and its thirst for growth and progress in the economic sectors and in parallel to the World Bank’s Economic Monitoring Report that is presented to the Ad Hoc Liaison Committee meeting of the donor countries in New York, Palestine Monetary Authority PMA exalted its role in supervising the banking system to reach the trust, credibility and durability that it enjoys today. According to the report, the PMA has made continuous efforts since its establishment, to enhance its institutional capacity and build the capabilities of a central bank. Throughout the years, the PMA has successfully implemented regulatory and structural measures aimed at building a modern banking system, and it has adopted regulations in line with international standards including those related to loans classification, licensing procedures, good governance, capital adequacy, risk management and applying an effective anti-money laundering law that was prepared in line with international standards. The report also referred to the PMA`s efforts to enhance the infrastructure of the banking sector and praised the Deposit Insurance Law that was signed by the President. It was emphasized that this system will strengthen public confidence in banks, and hence, mobilize more savings and deposits which will in turn contribute to enhancing the soundness of the overall financial sector.
Substantial news was reported during the week on some of the listed companies, whereby, some is directly related to the operational performance of the companies and others are related to the companies’ strategies to grow and expand their business. In the context, Palestine Mortgage & Housing Corporation PMHC along with Cairo Amman Bank CABK signed an agreement to provide custody to the bonds that will be issued by the company. This coincided with the strategic objectives of the company to provide new financial instruments to the investors in Palestine Stock Exchange PEX , whereby, PMHC will be issuing Mortgage-backed bonds as a first of its kind issuance in Palestine with a total portfolio size of $80 million that will be issued in the coming three years. Regarding other news, Palestine Islamic Bank ISBK signed a partnership agreement with Jericho Agro-Industrial Park JAIP through Istisna’a system , to become the banking and investment partner in developing JAIP. ISBK prepared a plan to finance the investors in JAIP as a commitment towards the nation to encourage the investment. JAIP is believed to be an appropriate investment opportunity to the local and foreign investors as it is considered a regional-national project to provide adequate infrastructure according to the international standards.
Regarding this week’s trading, the share of Palestine Telecommunications PALTEL- the largest company by market capitalization topped the PEX in terms of trading value when recorded $0.96 million; around 27.96% of the PEX’s total trading value. PALTEL decreased by 0.98% closing at the level of JD5.05. Furthermore, trading on the share of Palestine Development and Investment Company PADICO was characterized with weakness and slow movement after recording trading value of $0.26 million, to close at the level of $1.02; down by 3.77%. On the other hand, trading on the banking sector’s companies was active after executing institutional transactions on the shares of Palestine Islamic Bank ISBK, the Arab Islamic Bank AIB, and Palestine Investment Bank PIBC. In addition, the leading share of Bank of Palestine BOP recorded trading value of $0.48 million, whereby, closed at the level of $2.88; down by 1.71%.