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Sahem Weekly Trading Report[03-06/11] 2013
With the end of the interim financial statements momentum in hope to overcome the routinely periodic anticipations, the total net income for the period ended on 30/09/2013 of listed companies significantly grew by 28.50% to settle at $188.74 million compared to the corresponding period of 2012. Moreover, the percentage of companies that achieved profits for this period reached around 77%, whereby, 51% managed to increase their profits. Within this context of successive progress in profits, the beholder in Palestine Stock Exchange PEX- with an investment intension- is motivated for PEX feasibility by two essential factors with no other alternatives. The first stems from the fact that the companies’ shares’ prices are relatively stable with attractive market indicators and annual cash dividends return, and the second stems from the accumulation of the profits that have accelerated growth rates higher than the dividends ascending rates and maximize the shareholders equity from one side, and puts the beholder among an anticipation for potential price correction following these accumulation from another side.
During the first week of November, the liquidity indicators witnessed a relative activity without any noticeable change in prices. This came in contrary to the last week of October that witnessed price movements. The witnessed activity- even if slight- can be due to the disclosed financial statements, but definitely the leading shares with the heaviest weights in Al-Quds Index still maintain the largest trading volume, within exchanging their leading roles. Regarding the price movements, Al-Quds Index traded in a narrow range during the week that didn’t exceed the 4 points.
Regarding the blue-chips, the share of Palestine Telecommunications PALTEL – the largest company by market capitalization and the heaviest weighted share in Al-Quds Index- topped the PEX in terms of trading value when reached $2.92 million; contributing around 65% of the PEX’s total trading value. PALTEL’s transactions witnessed a momentum and quick transactions amid accumulation of purchasing bids around important support levels. Furthermore, PALTEL closed at the level of JD5.12; down by 0.39%. Regarding the leading share in the investment sector; Palestine Development and Investment Company PADICO closed at the same level of its last week closing at $1.03 within a trading range of 4% and through transactions worth $0.70 million.
On the other hand and regarding the companies’ substantial news, the BOD of The Arab Palestinian Shopping Center PLAZA approved the Arab Palestinian Investment Company APIC"s request to subscribe the unsubscribed shares of 4.24 million (by its total stake of 3.04 million shares in addition to the unsubscribed shares by the other shareholders of 1.19 million shares) through capitalizing their due debt on PLAZA. Moreover, the BOD of The Arab Islamic Bank AIB assigned the shareholders as of 20/11/2013 for the secondary subscription in order to complete the paid up capital.