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Weekly Trading Report [17-21/11] 2013
Positivity and green closings dominated the trading this week, leading Palestine Stock Exchange PEX with its weekly gains of $112.25 million to record new figures that haven’t reached since more than three years. Al-Quds Index succeeded to increase further towards its highest level since February 2010, whereby breaking through new resistance levels with the support of the flaming performance of the blue chips with the highest weights in Al-Quds Index and other medium market capitalization shares that reported growing and attractive operational indicators in the first nine months of the current year, to record weekly significant gains of 3.94% closing at the level of 531.62 points. Al-Quds Index gradually increased during the week within healthy movements. This came due to the cautious actions, varied degrees of optimism, an indecision status by some investors and profit taking transactions by speculators. Where these reasons altogether had tested the price levels recorded by the stocks that led this growth, amid an inevitable slowdown in the first trading sessions, accompanied by a healthy circulation without negativity, on the contrary countered with a progressive positivity. The PEX’s market capitalization recorded $3.18 billion; up by 3.65% than the previous week and by 11.35% than the end of 2012, resulting by price jump that was anticipated by all segments of the capital market sector, especially after the accumulation and enhancement in the listed companies’ book values, which in turn was alerting in a hope of market price reflection.
The share of Palestine Development & Investment Company PADICO continued to top the trading screens in extension to the selectivity status that has started in the previous week. Away from the record titan transactions, PADICO’s share maintained its activity pace that was supported by tangible enhancement on the trading liquidity value, amid optimism for achieving other price increases. This week, PADICO’s share tested its previous closing level and surpassed it strongly, continuing to record gains that reached 4.07% this week, to close at the level of $1.28 , while touching the level of $1.30 which had been abandoned since the beginning of May 2011, recording a trading value of $2.89 million. On the other hand, and within a formal disclosure by Palestine Telecommunications Company PALTEL- the major shareholder of PADICO’s shares by 16.31%-; the company indicated that they will announce in time of additional shares purchases in PADICO, and the overall ownership percentage will not exceed 20% from PADICO’s paid up capital; an increment of 9.23 million shares than the shares currently owned by PALTEL.
The performance of the share of Palestine Telecommunications PALTEL - the heaviest weighted share in Al-Quds Index- was characterized with uniqueness, due to remarkable price jumps that transferred it to price levels that hadn’t been seen since March 2010. During the week, the trading value of the share reached $2.54 million amid fast movements and transactions filling that enhanced the increase of the share by 5.56% to close at the level of JD5.70. PALTEL will be the focus of attention of all the investors’ segments in the coming week, due to approaching new resistance and physiological barrier. In terms of stocks with medium market capitalizations, some stocks have been active in terms of prices, some of which had begun its upward trend in the previous week and some of which have initiated it this week. The reasons could go back to a general optimism and positivity in the stock market in addition to riding the wave, but there is no doubt that every company is characterized with the reasons of its investment feasibility entitlement. Among the active shares; Arab Islamic Bank AIB which grew its market price reached 4.35% after active trading of $1.76 million following the execution of noticeable institutional transactions, and the Palestine Islamic Bank ISBK which gained 8.00% after trading worth of $0.74 million.