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2013-12-05
Sahem Weekly Trading Report [01-05/12] 2013
Inertness and anticipation were imposed on Palestine Stock Exchange PEX in the first week of the last month of the current year, amid horizontal movement in the index that is likely to drop between the levels 526.34 and 530.68; generally following a scarcity of incentives. Trading and price movements were slow this week, and liquidity was trapped around the current trading prevailing prices, amid raising the anticipations for the remaining period of December 2013. Seasonal routines dominate this period, including positions’ swaps among listed shares and attempting to achieve portfolio gains, opposed by the financial settlements and profits taking at the end of the year. Undoubtedly, the PEX has a special characteristics; enabling the investment decision to enter into sequenced anticipations with varied motives, links and consequences, and creates its own seasonality and routines with features that are difficult to predict like the regional Arabic Markets.
The price performance of the leading companies resembled this week, without any witnessed significant activity of any, to end their transactions with a varying weighting and influential decreases in Al-Quds Index. The share of Palestine Telecommunications PALTEL- the largest share by market capitalization and the heaviest weighted share in Al-Quds Index- decreased by 0.89% to close at the level of JD5.58, after transactions of $1.18 million; constituting around 33.48% of the PEX’s total weekly trading value. It is worth mentioning that the BOD of PALTEL will be holding meeting on 11/12/2013 to discuss the business plans, while, PALTEL’s investors- with their different categories- drag their attention to the annual financial results of the company for 2013 in which will be disclosed at the beginning of the next year, to help in forecasting the amount of cash dividends distribution especially with the investment losses reduction in 2013 in parallel with the continuity of improving the operating revenues. The cash dividends distribution higher expectation for the coming years will grow starting from the year 2014, especially with the latest announcement by PALTEL regarding licensing its offshore investment arm VTEL Holding – owned 25% by PALTEL- to operate the 4G Services, in which will significantly reflect the financial statements of VTEL - the main source of investment revenue to PALTEL- in a positive way.
Moreover, the leading share of Palestine development & Investment PADICO- the largest investment company by market capitalization- decreased by 1.49%, to close at the level of $1.32 after transactions worth $0.92 million. This came due to trading in a relatively wide trading range; constituting around 4.58% from the lowest level touched during the week, amid the appearance of purchasing bids in the price depth around $1.30 that supported the share to trade above this level by considering it a support level. On the other hand, the share of Bank of Palestine BOP- the largest bank by market capitalization- stabilized at the level of $3.06 without any change, after the attempts to penetrate the level of $3.10 through transactions worth $0.72 million.
Regarding the substantial news of the listed shares, Ramallah Summer Resorts RSR will be holding an extraordinary general assembly meeting on 27/12/2013 to discuss the reduction of the company"s capital by the non-subscribed shares of 0.14 million shares of the last secondary subscription and raising it again to $4 million shares through offering the shares t public for subscription at a par value of 1JD, plus a premium of JD2.3, to reach JD3.30.
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