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Sahem Weekly Trading Report (21-24)-12-2014
With the approaching end of the current year 2014, the routine trading signs are rapidly appearing at the end of the year. Some may suggest what the New Year brings, and some may reinforce the balanced standing of Palestine Stock Exchange PEX, while others may dominate investors’ confidence in the attractiveness of the listed Palestinian equities and their beliefs about maintaining their investment positions waiting for a growth that is supported by the flow of institutional and foreign liquidity. Undoubtedly, the PEX’s transactions are spelled with anticipation for satisfactory economic data, positive changes in the political situation or progress in listing the PEX on emerging markets indices. In any case, the financial and operational performance of the companies for 2014 is still the largest dominator on the investment decisions of traders in order to monitor the turning points in the nature and identity of their investment plans for the next year.
Within significant weekly gains, Al Quds Index had succeeded to return to trade around the level of 500 points, whereby reducing a good portion of the fourth quarter’s drops, which were recorded following the blue chips’ disclosures for a decline in their profits in 9M 2014 in effect of the war on Gaza. This increase and the gradual increases for the last three weeks came within an improvement in the prices of the leading shares; namely Palestine Development & Investments, Palestine Telecommunications and Wataniya Palestine Mobile Telecommunications. Although of the different weights of these companies in Al Quds Index, but the performance was almost every time within the balance that was more likely to rise, until it reached in turn to achieve gains and reduce losses. As part of the optimism is reflected in the price performance of the leading shares, it may be attributed to the extent of the ability of these companies to disclose good profits for the fourth quarter that is able to accumulate on the first six months earnings to alleviate the declines recorded in the third-quarter earnings after the Gaza war losses.
As for the liquidity indicators, they have been relatively weak, which in turn controlled the two phases, the decline phase and the current rise phase. If cross institutional trades that occur from time to time on selected stocks were excluded, trades are characterized with slowness and lack of quality. Reasons may return to the general situation in the Palestinian arena, which includes lack of any updates on the political level on the one hand and investors’ conservatism to their investment positions in anticipation of financial statements for 2014, on the other hand. In general, touching on some of the high prevails optimism, but overcoming resistance levels remains dependent on the momentum of liquidity with more institutional quality in order to be able to traverse and be stabile above significant price levels.