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Sahem Weekly Trading Report [27-31/10] 2013
The legal period granted by Palestine Stock Exchange PEX for the listed companies to disclose their 9M financial statements ended by the end of this October, whereby, this week was characterized with earnings announcements momentum on one hand and transactions scarcity on another hand. The financial results of blue-chips- that were distinguished- revived the PEX in terms of prices but without any significant changes in the liquidity indicators. It is worth mentioning that the PEX was influenced by the anticipations of the 9M financial statements disclosures for a long period of time, abandoning some pricing levels that were established earlier to become support levels that could protect from selling pressures. During the week, heavy weighted shares and shares with distinguished data had repositioned these levels, leaving the narrow range trading and gaining noticeably, supported by what was disclosed.
In an unique disclosure and within the company’s strategic plan and as an extension to the first half of the year 2013’s financial statements, Palestine Development and Investment Company PADICO announced achieving net income attributable to the shareholders of the parent company of $21.84 million in 9M 2013; significantly up by 34.15% compared to the same period of 2012. This came as a result of the company’s investments and new projects that has been launched during the past 3 years and has begun to report positive returns during the last few months. According to the company’s management, these disclosed results are a positive indicator for more profits and achievements, and also confirm the successful investment direction of the company. From the financial statements, the profitability indicators showed significant increases, supported by the increase in the consolidated revenues of 17.57% that resulted from the increase in operating revenues from PADICO’s subsidiaries by 20.05% in addition to the advance in PADICO’s share from the profits of its associates by 9.94%. Moreover, the external debt from loans and bonds decreased to $218.82 million in 9M 2013 compared to $225.29 million at the end of 2012.
Palestine Telecommunications PALTEL maintained its growth trend by announcing achieving net income of JD68.56 million in 9M 2013; up by 9.53% compared to the same period of 2012. This came as a result of an increase in gross income by 5.96% supported by increasing the operating revenues in addition to a significant decrease in the cost of revenues, therefore resulting in enhancement in all of the company’s profitability margins. According to PALTEL’s management, the financial results prove the ability of PALTEL to continue its growth either in the Palestinian market or in its investment base to ensure feasible returns for its shareholders. Moreover and regarding the other leading companies, Bank of Palestine BOP disclosed achieving net income of $29.29 million in 9M 2013; slightly down by 1.56% than the same period of 2012. This slight decrease came due to an increase in tax expenses in addition to an increase in operating expenses that came in parallel to the continuous expansion of the bank. This came despite recording a significant increase in net interest and commissions of 18.34%.