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Blue-chips’ fluctuations dominate Al-Quds Index

2015-01-29

Sahem Weekly Trading Report [25-29/01/ [2015

Despite its most frequent trading above the 500-points during the week, the observer has difficulty in determining the trend of Al-Quds Index. However, a new support for the Index is noticed, but the random price movements for some leading shares with heavy weights in the Index dominated these fluctuated movements without defining the price trends. Moreover, the absence of the liquidity momentum that coincides with the investors’ anticipation for disclosing the financial data for the year 2014, increase the stalemate in movement and the domination of the speculation which in turn the orders within the price depth are receding. In aggregate, Al-Quds Index recorded a decrease of 2.02% compared to the end of 2014, affected by the declining in some leading stock from the high levels that was recorded within the trading routines at the end of that year.

Within the financial data disclosure of the listed companies for the year 2014, The Arab Company for Paints Products APC announced posting net income of JD0.58 million; down by 28.08% compared to the year 2013. This decrease comes following a decline of 10.46% in gross income and an increase in the loss from currency exchanges. APC’s stock recorded a book value BV of JD1.95 and P/BV of 1.90x. However, it is expected that the momentum of financial data disclosure will increase by the beginning of February 2015 and approaching the mid-month. Whereby, the prevailing law grants each listed company maximum a 45 days period from the end of the financial year to disclose its annual financial data for 2014, audited from the internal auditor.

With the acceleration of the financial data disclosures, the listed companies initialize holding its board of directors BOD meetings to propose distributing dividends for the shareholders for the year 2014. Although it hasn’t disclosed its financial data yet, the National Insurance Company NIC proposed, in its BOD meeting on 25/01/2015, distributing 15% cash dividends from the company’s paid up capital ($1.80 million) to the general assembly GA that will be holding a meeting on 26/03/2015. In this context and with the increase in anticipation, Palestine Telecommunications Company PALTEL announced its intentions to hold a BOD meeting on 10/02/2015 to approve its preliminary financial data for the year 2014.

Regarding the week’s trading, Al-Quds Index ended its transactions that reached $2.45 million with a 0.73% decrease, to close at the level of 501.43 points.  This decrease followed a 1.69% decline in PALTEL which closed at the level of JD5.80. On the other hand, the stock of Palestine Development and Investment Company PADICO increased by 1.56%, to close at the level of $1.30. Regarding the liquidity indicators, the stock of Bank of Palestine BOP topped the PEX in terms of trading value; constituting 55.87% from its total value.