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2014-04-30
Sahem Weekly Trading Report [27-30/04/2014[
Al-Quds Index significantly declined during the week, to record losses of 5.39% at the end of April 2014. This came within weak and scarce trading compared to the performance in Q1 2014. The market status was characterized with solidness and anticipation increasing in the few previous weeks as a result of the blurry political solidness situation on one hand and the routinely quarterly financial statement disclosures period and holding the general assembly GA meeting period on another hand that lead to weaker investors’ investment position movements. Concerning the investors’ expectancy, a growing anticipation appeared regarding the financial results disclosure of the leading companies with the highest market capitalization, turnover and weights in Al-Quds Index. Moreover, this four session week ended with the financial results disclosure of Palestine Telecommunications Company PALTEL- the largest PEX Company in terms of market capitalization-, noting an increase of 11.93% in net income in Q1 2014 compared to the same period of 2013 when recorded net income of JD25.97 million and Earnings per share EPS of JD0.197. This increase came after a growth of 7.93% in gross profits, to record gross margin of 83.23% in the first three months of 2014 compared to gross margin of 78.46% in Q1 2013 as a result of an enlargement in operating revenues and a decrease on direct related costs. In terms of the operational performance, the operating margin increased from 29.64% to 31.02% in Q1 2014. While, the soar of 50.65% in the investment revenues and recording an effective tax rate of 11.83% in Q1 2014 compared to 20.21% in Q1 2013 led to an increase in net margin to 28.90%; up by 10%.
Regarding the leading companies, Bank of Palestine BOP- the largest bank by market capitalization- disclosed recording net income before tax of $12.54 million in Q1 2014; down by 12.66% than the corresponding period of 2013. This decrease came after recording direct credit facilities provision of $1.80 million, in addition to a significant decline in foreign exchange revenues despite an increase in net interest and commission of 6.63% in parallel to recording credit facilities of $1.15 billion at the end of March 2014. On the other hand, the GA of the bank approved, on its meeting on 25/04/2014, distributing 8.33% cash dividends and 6.66% stock dividends for the year 2014, to increase the paid up capital to $160 million.
With the increase in the financial statements disclosures pace coinciding with holding the GA meetings in the last few days of April 2014, the dividends distributions were characterised with feasibility to investors, while actually, some dividends distributions percentages were higher than the percentages distributed in the previous year as a result of an enhancement in net profits recorded in 2013. During this week, the GA of Nablus Surgical Center NSC approved distributing 15% cash dividends, to record dividends yield of 12.93%. Moreover, the GA of The Vegetable Oil Industries Company VOIC approved 50% cash dividends distribution, to record dividends yield of 6.49% according to the price recorded before distribution. In the industry sector, the GA of Birzeit Pharmaceuticals Company BPC approved distributing 15% cash dividends, to record dividends yield of 4.76%. On the other hand, the GA of The Arab Palestinian Investment Company APIC approved distributing stock dividends of 9,990,602 stocks (19.98% from paid up capital) to raise the paid up capital to $60 million.
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