The trading of the first week of the year 2014 was unique; characterized with activity and rapid price movements. The positive optimism stems from fundamental indicators built in Palestine Stock Exchange PEX for years; enhanced by the distinctive financial performance of the listed companies, growing dividends distributions and the policy of reserving and maintaining the investments against all obstacles and is added up by any hope to approach any political solutions. Despite the varied behavior of investors in building their portfolios based on their investment strategies, all attentions head towards the annual financial statements of companies, to predict the financial returns from the distributed dividends from one hand and the capital gains from another hand. The optimism stemming from the feasibility of investment in Palestine Exchange is also associated with the period’s dynamics which are to what may result from the initiative of the U.S. Secretary of State John Kerry.
During the week, Al-Quds Index reached price levels that have been abandoned for more than five years within fiery performance of the leading companies with the highest weights in Al-Quds Index and high turnovers. The biggest challenge is now structured around accessing liquidity with variable resources, objectives and sizes to create new momentum and break through these new levels- that historically are considered physiological- to preface the gradual growth in the market capitalization as healthy corrective movements in the capital market. It is worth mentioning that the investors started purchasing activity since the beginning of the current year- especially in the first quarter, in intention for profits entitlements during the general assembly meetings. Regarding this week’s trading, the growth in the high weighted leading shares - that exceed 50%- was the most significant when the shares of both Palestine Telecommunications PALTEL and Palestine Development & Investment Company PADICO were the core leverage for the increase in Al-Quds Index by 0.91% due to active liquidity.
The share of Palestine Telecommunications PALTEL achieved significant weekly gains of 1.89%, to close at the level of JD5.93, touching through its transactions that valued $1.56 million the level of JD5.98; the highest level achieved since June 2009. Moreover, the share of Palestine Development & Investment Company PADCIO increased by 0.71% to close at the level of $1.41 after transactions of $2.86 million, leading the share to touch the level of $1.43; the highest level achieved since July 2010. What is never forgotten is the historical price correlation between both shares, whereby, traders closely monitor this relation since acquiring a strategic stake in PADICO of 16.3% by PALTEL and what has this deal imposed of great exposure between the two companies.
On the other hand, as it is considered a city for various investment funds and a center for capital pooling from several countries in the world and a base from which many international companies export their financial investments to several countries around the world especially the Middle East, the leaders of Palestine’s Export and investment community will be visiting London on the 16th and 17th January 2014 to reinforce trade links between the UK and Palestine and attract investment to the nation’s flourishing stock market. The Road Show is part of a strategic drive to increase exports of the Palestinian services sector by promoting potential investment opportunities in the Palestinian economy and portraying success stories of listed companies. It also aims at attracting institutional investors to stocks listed on the Palestine Exchange (PEX), building long term relationships with UK companies, and demonstrating the promising trading environment that Palestine represents.