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Conservative market performance following the end of companies’ financial disclosure

2015-02-19

Sahem weekly trading report [15-19/02/ [2015

Within weak transactions that include a variety of the most active stocks, the price movements of Al-Quds Index were characterized with positive caution, whereby, didn’t decline below the 500-points level, but attempted to record higher price levels. In this context, the stocks of Palestine Telecommunications PALTEL and Palestine Development & Investments PADICO- constituted the main driver of the index’s following expanding its price range under the targeted resistance level. On the other hand, the other stocks traded in conservative price ranges in their movements. On the other hand, the legal period granted for the listed companies to disclose their preliminary FY2014 financial data ended. Whereby, 41 companies out of 48 listed companies disclosed  their financial data within the granted period, 5 companies disclosed after the end of the legal period, while, 2 companies couldn’t disclose their financial data till today. According to the disclosed financial data for 2014 and the market data as of February-mid, Palestine Stock Exchange PEX recorded average P/E ratio of 14.03x and average P/BV of 1.15x. 

According to the net income attributable to the shareholders of the parent company for the disclosed companies in the PEX, net income for the listed companies reached $223.08 million, whereby, the services sector contributed by 44.80%, followed by the banking and financial services sectors by 30.27% and by the investment sector by 12.29%. The industry and insurance sectors’ companies accounted for 7.49% and 5.15% of the total net income attributable respectively. In the services sector, PALTEL’s net income topped the PEX’s and the sectors, after reporting profits of $119.98 million. However, the losses of 6 companies in the sector reduced the sector’s income to $99.95 million. According to the disclosed data, the average P/E ratio of the services sector reached 14.31x and the average P/BV of the sector recorded 1.47x.  

The banking and financial services sector’s total net income reached $67.52 million, whereby, Bank of Palestine BOP constituted 59.50% of the sector’s total net income. All of the listed companies in the banking and financial services sector posted profits for the year 2014, to record an average P/E ratio of 12.10x and average P/BV of 1.20x. In the investment sector, the listed companies recorded net income of $27.41 million, whereby, Palestine Development and Investment Company PADICO Holding’s net income accounted for 73.22% of the sector. The other companies’ financial data ranged between profit and losses, to record an average P/E ratio of 18.81x in the sector and average P/BV of 0.71x.

In the industry sector, the total net income of the sector’s companies reached $16.71 million, whereby, the net income of the Vegetable Oil Industries Company VOIC constituted 41.81% from it. The companies included in the sector recorded an average P/E ratio of 16.11x and an average P/BV ratio of 1.10x. Regarding the insurance sector’s companies, they posted net income of $11.49 million, whereby, 4 companies recorded similar profitability levels, to record average P/E ratio of 8.58x and average P/BV ratio of 1.08x.