Company Lookup
عربي
Download Demo
 

Market News

This Month News

This Month News

send to a friend by email

Postponing imposing income tax on the dividends distribution is not a sufficient step

2014-04-03

Weekly Trading Report [30/03-03/04[2014

In a move that contradicted the community claims and charged new burdens on all parties of the Palestinian capital market sector, the government approved a modification law on income tax that hasn’t eliminated the dialogue and participation only, but the efforts of all constituent elements of the Palestinian investment environment over the years.  One of the modifications is imposing 10% tax on profits, whether in the form of stock of cash dividends to be deducted from source. The income tax department in the Ministry of finance circulated later that applying this law will begin from the year 2015. Postponing incurring income tax on the cash dividends for the next year will only result in opening space for migrating of the Palestinian capital abroad and starting to accumulate negative signals on an economy that only lacked a stimulating legislation environment that is able to extract its potentiality amid the occupation discouragement. Over the years, Palestine Stock Exchange PEX, Palestine Capital Market Authority, brokerage firms and the public listed companies gave their efforts to promote the attractive investment environment of the PEX, armed with the competitive financial and operational performance and feasible dividends distributions of the listed companies, and marketing the intrinsic growth factors by considering a harmony between the economic environments. Not suspension of this modified law will contribute in foreign investment exit from the PEX and will discourage any attempt to attract them.

The tax adjustment will not only result in imposing additional taxes on the dividends distributed by the public listed companies only, but will result in reducing the investment attractiveness of the listed shares in the PEX compared with their peers in the regional markets. Over the past years when the PEX trading was characterized with scarce liquidity and relatively nil price movements, cash dividends generally balanced the total shareholders return at the end of the period, and in most cases total shareholders’ equity constituted only from cash dividends. Despite not recording prices growth, the average cash dividends rate in the PEX was competitive compared to the other Arab regions. Imposing income tax on cash dividends will contribute in lowering return on investment, and will contribute in a radical change in the public listed companies’ dividends strategies. This would be an important factor to the lack of success in attracting foreign investment due to the lower yield in addition to the high cost of investments in the PEX. These results will negatively affect the activity in the PEX due to the availability of more feasible opportunities that may be available in local and abroad investment tools.

This week comes within tax queries on one hand, and political queries on another hand, to significantly affect the investors’ appetite in the PEX. Whereby with the latest political developments and negotiations, the anticipation and solidness status by investors increased for what the coming days may hold, however, the door of reaching understandings is still open. These quires affected the trading in the PEX for this week, leading to a decrease in the daily average trading value compared to the beginning of the year, amid a decline in the purchasing orders on the blue-chips, which in turn led to record a declining percentage on Al-Quds Index to erase the entire gains of 2014.  On the other hand, the legal period granted to the listed companies by the PEX to disclose their Q1 financial results has started, to increase the anticipation in the PEX in general and enhance the variation in investment decisions basis for investors, while, there is no doubt that the anticipation is sharply higher for the leading companies due to the growth incentives prediction.   

 

 

 

 

 

 

 

 

 


 

2018-02-25
BJP proposes 15% cash dividends for the year 2017

2018-02-25
PIIC proposes distributing 8% cash dividends for the year 2017

2018-02-22
The PEX records average PE of 13.8x and average P/BV of 1.23x

2018-02-21
NSC posts net income of JD0.37 million at the end of 2017

2018-02-21
UCI records net income of $0.68 million at the end of 2017

2018-02-21
TIC proposes 10% cash dividends for the year 2017

2018-02-19
APC reports net income of JD1.20 million at the end of 2017

2018-02-19
PIBC reports net income of $3.91 million at the end of 2017

2018-02-19
PID realizes net loss of JD0.01 million at the end of 2017

2018-02-19
PRICO realizes net loss of JD13.49 million at the end of 2017

2018-02-19
RSR reports net income of JD0.48 million at the end of 2017

2018-02-19
NIC posts net income of $7.70 million at the end of 2017

2018-02-19
NIC posts net income of $7.70 million at the end of 2017

2018-02-19
JCC posts net income of JD0.51 million at the end of 2017

2018-02-19
ABRAJ records net income of $2.25 million at the end of 2017

2018-02-18
WASSEL posts net income of 0.06 million at the end of 2017

2018-02-18
SANAD records net income of $10.05 million at the end of 2017

2018-02-18
BPC records net income of $10.28 million at the end of 2017

2018-02-18
PADICO posts net income of $5.68 million at the end of 2017

2018-02-18
WATANIYA realizes net losses of $6.64 million at the end of 2017

2018-02-18
NCI posts net income of $0.16 million at the end of 2017

2018-02-18
AHC realizes net losses of JD1.52 million at the end of 2017

2018-02-18
AIB posts net income of $6.40 million at the end of 2017

2018-02-18
JPH records net income of $6.18 million at the end of 2017

2018-02-18
AIG posts net income of $3.12 million at the end of 2017

2018-02-18
JREI posts net income of $0.01 million at the end of 2017

2018-02-18
MIC posts net income of $3.26 million at the end of 2017

2018-02-18
LADAEN records net losses of JD0.05 million at the end of 2017

2018-02-18
PIIC records net income of JD5.50 million at the end of 2017

2018-02-18
AZIZA posts net income of JD3.18 million at the end of 2017

2018-02-18
APC proposes 50% cash dividends for the year 2017

2018-02-18
PALTEL recommends 40% cash dividends for the year 2017

2018-02-18
GUI proposes 20% stocks dividends and 10% cash dividends for the year 2017

2018-02-18
NIC proposes 25% stocks dividends and 25% cash dividends for the year 2017

2018-02-18
ELECTROODE proposes 12% cash dividends for the year 2017

2018-02-18
NAPCO proposes 5% cash dividends for the year 2017

2018-02-18
BOP proposes 13.5% cash dividends for the year 2017

2018-02-18
TRUST proposes 50% stocks dividends and 20% cash dividends for the year 2017

2018-02-15
A momentum in the dividends proposals and varied financial performance for the blue-chips

2018-02-15
TNB posts net income of $9.20 million at the end of 2017

2018-02-15
AQARIYA posts net income of JD 0.39 million at the end of 2017

2018-02-15
PALTEL posts net income of JD70.53 million at the end of 2017

2018-02-15
PALAQAR records net income of JD3.77 million at the end of 2017

2018-02-15
GUI records net income of $3.77 million at the end of 2017

2018-02-15
PEC posts net income of $8.64 million at the end of 2017

2018-02-15
GMC posts net income of JD1.78 million at the end of 2017

2018-02-15
TIC records net income of $2.19 million at the end of 2017

2018-02-15
BJP posts net income of JD1.64 million at the end of 2017

2018-02-15
ISBK records net income of $14.53 million at the end of 2017

2018-02-15
PICO reports net income of $4.79 million at the end of 2017

2018-02-13
TRUST records net income of $5.43 million at the year 2017

2018-02-13
PSE reports net income 0.68 million at the year 2017

2018-02-13
BPC proposes 2.7% stocks dividends and 20% cash dividends for the year 2017

2018-02-13
ELECTRODE posts net income JD0.07 million at the year of 2017

2018-02-12
VOIC posts net income of JD6.83 million at the end of 2017

2018-02-11
APIC reports net income of $17.44 million at the end of 2017

2018-02-08
Inactivity state in the market with the approaching end of the disclosures’ period

2018-02-08
VOIC recommends 60% cash dividends for the year 2017

2018-02-07
QUDS posts net income of $11.18 million for the year 2017

2018-02-06
ARAB reports net income of JD0.05 million for the year 2017

2018-02-05
PCMA and JSC signed memorandum of understanding

2018-02-05
BOP proposes distributing 13.5% cash dividends for the year 2017

2018-02-05
Nasdaq and Palestine Exchange sign new market technology agreement

2018-02-05
BOP reports net income of $54.00 million at the end of 2017

2018-02-01
NAPCO records net income of JD0.46 million at the end of 2017

2018-02-01
Several transactions in the PEX and the companies have started their disclosures

 

 

 
Sahem Trading & Investments Company - PEX Member and licensed by PCMA
© All Rights Reserved 2013