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Sahem Weekly Trading Report [02-06/11[2014
Within the financial results variation of the economic sectors that constituent Palestine Stock Exchange PEX in 9M 2014, the total profits of the listed companies decreased by 9.03% in 9M 2014 compared to the corresponding period of 2013. The decline followed the effects and repercussions of the war on Gaza during the third quarter of this year, whereby caused direct and indirect damages to some leading companies and their subsidiaries in Gaza Strip. In the first nine months of the year 2014, 70% of the listed companies reported profits, while 83% of them either recorded profits or reduced their losses. In the same context, most of the companies maintained promising financial performance, especially after recording noticeable growth rates for the few previous years and first half of 2014. Moreover, the anticipation is undoubtedly increasing for Q4 2014, in the hope of improving the effectible companies’ performance, to achieve better results that may be reflected on Al-Quds Index and trading activity in the PEX. On the other hand, the negative figures were reflected in the PEX’s performance this week, as a natural reaction especially from small investors and speculators. However, there is no doubt that some long term investors’ categories are conservative to sell, due to the different investment decisions’ basis. During the week’s trading, Al-Quds Index decreased by -1.93%, chiefly affected by a decrease of -13.29% in PADICO’s stock price that closed at levels that hadn’t been witnessed since November 2013. Regarding the liquidity, executing an institutional transaction on the share of the National Bank TNB increased the PEX’s trading value in this week, while, other companies witnessed medium trading.
Within expectations, Palestine Development and Investment Company PADICO – the largest investment company by market capitalization that has the biggest investment network and is most exposed to the local economy in general; as being a leader in most Palestinian investment sectors- announced reporting $16.69 million net income attributable to the shareholders of the parent company in 9M 2014; down by 23.61% compared to the same period of 2013. This decrease directly reflects the damages that were caused by the Israeli occupation on the company’s investments. According to the income statement of PADICO, the recorded operating revenues from PADICO’s subsidiaries in H1 2014 formed a base for the cumulative revenues recorded at the end of September 2014. Despite a 19.02% decrease in operating revenues in the three months ended in 30 September 2014, but the nine months figure slightly increased by 1.46%. On the other hand, PADICO’s stake from associates profits declined by 4.17% following the decrease in Palestine Telecommunications PALTEL’s net income due to the damages that followed the company in the latest Gaza war that were disclosed as losses and expenses. The effectible factor on PADICO was the significant increase in expenses which limited the profitability levels in many companies and projects due to realizing fixed expenses that cannot be faced, versus affecting the operating revenues in some sectors, especially the tourism sector. On the other hand, the CEO of PADICO said that the company is moving forward in investment and development plans, and in completing and developing their existing projects: Rabyet Alquds Residential project, Jericho Gate Project, Nakheel Palestine Project and Palestine Power Generation Company.