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Sahem Weekly Trading Report [15-19/06[2014
Palestine Stock Exchange PEX has barely captured its breaths during the last two weeks through a rebound up, but quickly dropped on a security situation flopping in the country and vague determination conditions. Whereby, Al-Quds Index declined during the week to approach its lowest achieved level during 2014, but the accumulation of the purchasing bids on some blue chips, led the index to rebound upwards within an enhancement in the general liquidity indicators. At the end of the week, the PEX proved the ability to absorb shocks due to growing investors’ awareness and the domination of long-term investors rather than speculators after recording a decrease of 1.92%, however, the index’s losses reached 3.31% during trading sessions. On the other hand, the share of Palestine Development and Investment Company PADICO constituted the main engine of the index amid a decrease that is characterized with lack of liquidity and price rebounding with smooth activity that is supported by heavy purchasing bids.
Within this week’s trading, the share of Palestine Development and Investment Company PADICO – the largest investment company by market capitalization- topped the PEX in terms of trading volume, to constitute 58.91% from the PEX total trading volume. PADICO’s share recorded losses of 7.32% to close at the level of $1.52, rebounding from the $1.42 level that has been touched during the week through heavy purchasing bids around the approached levels, supported by the attractive market indicators and approaching H1 2014 financial statements disclosure period. Moreover, the share of Palestine Telecommunications PALTEL- the largest company by market capitalization- declined by 1.44% to close at the level of JD5.48 through medium volume transactions that constituted 39.94% from the PEX total trading value during the week through executing an institutional transaction on the company’s share. Moreover, the share of Bank of Palestine BOP- the largest bank in terms of market capitalization- maintained a narrow trading range, to close at the level of $2.88; down by 0.35% through transactions worth $0.60 million.
Regarding the substantial news of the week, Palestine Commercial Bank PCB announced offering bonds for public subscription and secondary subscription for the shareholders of the bank registered as of 19/03/2014, with priority to the bank’s shareholders. According to the announcement, the number of bonds offered for subscription is 10,000 bonds, with a total value of $10,000,000; par value per bond of $1,000. Whereby, The bonds are subject to fixed interest rate, for the first thirty months, of 6.5% annually, and an annual variable interest for the remaining thirty months that is not less than the applicable interest rate throughout the life of the bond, with a floor of 6.5% and ceiling of 7.5% per annum until the maturity of bonds and conversion into stocks. Moreover, the issuance date is on 03/07/2014 and maturity date is on 03/07/2019. Regarding the banking sector, The National Bank TNB announced signing an agreement to purchase new banking development system with Temenos Company- a leading global provider of banking systems- to provide the bank with the most sophisticated banking system T24. This coincides with the bank’s expansion plan in Palestine after seeking the competitiveness in the Palestinian banking market through offering technological banking services.