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Significant drop in the index prior to quarterly disclosure momentum

2014-10-23

Sahem Weekly Trading Report [19-23/10[2014

The quarterly financial data disclosure for the listed companies in Palestine Stock Exchange PEX is still in its weak pace.  Whereas, the PEX enters, in the coming week, the last days of the legal granted period to the listed companies to disclose their quarterly financial results, in which finishes by the end of the current month. It is expected that the coming period witnesses a momentum of disclosures, especially for the blue-chips with heavy weights in the index and highest turnover in the market.  Regarding this week’s trading, the liquidity has weakened, while, Al-Quds Index decreased due to a decline in the prices of the leading shares that are dominated by the anticipation for their financial data, to explain the purchasing depth on some shares with distanced prices, in turn to the existing process that fastened the price slipping. On the other hand, this period is observed with general anticipation, whereby, rebuilding Gaza Strip after the war is one of its motives, but the political shift is its chief motive. 

Regarding the listed companies’ financial data disclosure for 9M 2014, and due to the significant increase of 41.34% in the PEX’s trading value during the current period compared to the corresponding period of 2013, Palestine Securities Exchange Company PSE- the operator of the PEX- announced posting net income of $0.28 million in 9M 2014 compared to net loss of $0.40 million in 9M 2013. This came following the increase in trading and transfer commissions by 40.27%, in addition to a significant increase in membership and registration fees. According to this data, PSE’s book value BV increased to $1.04 compared to $1.01 at the end of 2013. In the context of blue-chips and relative high turnover shares, the Arab Palestinian Investment Company APIC announced posting net income attributable to the shareholders of the parent company of $7.10 million in 9M 2014; up by 25.06% than 9M 2013. This coincides with an increase in net sales by 24.92% and non-operating revenues by 140%. According to the disclosed data, APIC’s BV recorded an amount of $1.28 based on net equity attributable to the shareholders of the parent company. 

As regards to the distinguished disclosures, the financial data of the Vegetable Oil Industries Company VOIC showed posting net income of JD3.94 million in 9M 2014; up by 5.83% than 9M 2013. This came parallel to an increase of 27.70% in operating revenues, as well as a growth in the company’s stake from associates’ profits by 13.90%; contributing around 96.55% from total net income. It is worth mentioning that VOIC’s BV increased to JD4.83 in 9M 2014. On the other hand, Wataniya Palestine Mobile Telecommunications WATANIYA announced lowering its net loss noticeably to $10.67 million in 9M 2014 compared to net loss of $17.48 million in 9M 2013, while the BV of the share continues to decrease to $0.31.