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Idleness dominates the PEX amid scarce liquidity

2014-11-27

Sahem Weekly Trading Report [23-27/11[2014

Amid the state of political stagnation, the low liquidity levels that dominated the trading in Palestine Stock Exchange PEX for several weeks continued to heavily decline. Amid the receding in the liquidity flow -either new or internal circulation-, the liquidity scarcity reasons are still affected by an anticipation that is far from the stereotyping and routinely of this period of time, but is related to chances of reaching a comprehensive solution on the basis of the applicable international references. While the PEX is characterized with a unique nature of anticipation stages’ succession with their varying reasons, whereby, investors are not able to complete building their investment portfolios until new anticipation features appear in the horizon. This week, political factors that dominate the PEX’s performance didn’t change, leading the price movement to move within its narrow range and end with a semi-relative balance in Al-Quds Index; waiting for an image clearing in the general trend, to activate the idleness that dominate the PEX.

According to the week’s trading, the share of the Arab Palestinian Investment Company APIC topped the PEX in terms of trading activity, to record an increase in trading value to $2.15 due to trading 2.01 million shares through executing institutional transactions in the last two trading sessions of the week. APIC ended the week with an increase by 1.85%, to close at the level of $.1.10 Regarding the blue-chips, the transactions of Palestine Telecommunications Company PALTEL were weak; not exceeding $0.39 million, whereby, the share declined by 0.55%, to close at the level JD5.40. On the other hand the share of Palestine Development and Investment Company PADICO witnessed scarce trading and slow price movement , whereby, it declined by 1.57%, to close at the level of $1.25. It is worth mentioning that the two companies will be holding their board of directors BOD meetings in the coming week to discuss the operating results and business plans.

Regarding the general economic indicators, Palestine Monetary Authority  issued the Inflation Report for Q3 2014, noting that the inflation rate in Palestine reached 2.3 percent in the third quarter of 2014 compared with the third quarter of 2013. The inflation rate was higher than that registered in the previous quarter (1.3 percent), and in the corresponding quarter of 2013 (1.4 percent).The rate is also much lower than that registered in the MENA region (8.1 percent), but higher than in Israel (0 percent). The analysis revealed that inflation in Palestine is largely imported and shows high sensitivity to world prices, particularly food and fuel.