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Sahem Weekly Trading Report [(07-11)-09-2014]
The activity drivers in Palestine Stock Exchange PEX have not changed than in the last few weeks. Where the general outlook that is characterized with political cautiousness and filled with anticipation for solid steps and actions to be taken, remains the main dominant on the investors’ behavior, which in turn is reflected in the varied degrees of optimism or pessimism, to result in this quietness in transactions and controlled price volatility. This week, none of the leading companies’ shares topped any distinguished trading, where the execution of several large institutional transactions on some of small-medium caps stocks has lifted the trading value significantly in parallel with a relative weakness in volumes on the other shares.
Regarding this week’s trading, Al-Quds Index decreased by 0.76%, but hasn’t surpassed its last week’s closing during the trading sessions. This decrease came due to a significant decline in Palestine Development and Investment Company PADICO- the largest investment company in terms of market capitalization- by 3.07%, to close at the level of $1.58 after transactions worth $0.75 million. Moreover, the share of Palestine Telecommunications Company PALTEL- the largest company by market capitalization- slightly declined by %0.18, to end the week at the level of JD5.59 after transactions worth $0.45 million. On the other hand, the share of Bank of Palestine BOP- the largest bank by market capitalization- stabilized at the level of $2.80 without any change after transactions worth $0.28 million. The trading value of the Arab Palestinian Investment Company APIC reached $0.23 million, whereby, the share stabilized at the level of $1.11.
The substantial news about companies subsided this week; while the following week will witness holding several leading companies’ boards of directors meetings to discuss the financial results of the companies and other important issues. On the other hand, several positive reports accelerated; some were issued by Palestine Monetary Authority PMA with the title “Financial Stability for the year 2013”, which showed the results of the procedures that have been taken that were reflected in the positive performance of the Palestinian banking sector that clearly appeared in the financial indicators and the banks’ ability in facing the expected and unexpected risks. And within the Palestinian Council of Ministries new decision is approving the national exports strategy that aims to increase the exports volume and integrate with the regional and global economies. Within expectation, this strategy will lead in achieving increases in the exports products during the coming five years by 67%, 13% yearly, and reducing the trade deficit in the goods trade balance, in addition to reducing the excessive dependence on Israel in the exporting and obtaining raw materials and intermediates.