send to a friend by email

Growing anticipation for leading companies data

2015-02-05

Sahem Weekly Trading Report [01-05/02/ [2015

Despite all the challenges facing the investment environment in Palestine and their reflection on the capital market indicators, the future growth and progress still lead the incentives of all of the Palestinian capital market’s parties in order to step forward towards developing the necessary mechanisms to get rid of the lack of liquidity and create activity on the listed companies’ stocks. The main driver stems from the fact that Palestine Stock Exchange PEX is feasible and retains investment opportunities especially that stock prices reflect attractive market indicators. The main challenge is centered on an increase in liquidity with its varying resources, investment objectives and sizes to create circulation on the stocks; leading to a growth in market capitalization and the corrective movements in the capital market.

Within opening new investment prospects for the Palestinian economy and attracting the Palestinian and foreign investors to invest in Palestine, an economic conference will be held in Turkey to discuss the prospects through three main aspects, including the investment realities in Palestine, the contribution of the Palestinians in Diaspora and the businessmen in this investment, the international and Turkish tourism towards Palestine and the Palestinian products’ realities and mechanisms of opening the Arabic, Turkish and international markets towards these products. Optimism by the Participant Delegation from the Palestinian Businessmen Union are growing to achieve outcome in terms of announcing launching mutual investment projects between the Palestinian private sector and the participant Palestinian and foreign investors, in which can contribute into pushing the national economy wheel .

Regarding the week’s transactions, which were characterized with routine scarcity that is correlated with the beginning of the year and the FY2014 financial data preliminary disclosure, Al-Quds Index continued to fluctuate around the 500 point level; affected by ranging the leading stocks, with their heavy weights in the index, around the targeted resistance levels. With the varied investors’ expectations and their acceptance of the change rates of the listed companies net income, the investors’ positions has varied also – mainly by small investors and speculators-, to be reflected in relatively weak performance and ambiguity in price trend due to the lack of the substantial news. Regarding the week’s performance, Al-Quds Index declined by 0.65%, affected by the closing of the stock of Palestine Development and Investment Company PADICO in the red zone at $1.27; down by 2.31%, through very weak transactions. On the other hand, the stock of Palestine Telecommunications PALTEL closed at its previous week closing level at JD5.80 through relatively medium-volume transactions. Regarding the liquidity indicators, the stock of the Arab Palestinian Investment Company APIC recorded trading value of 35.88% from the PEX’s total trading value due executing institutional transaction during the week.