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Political anticipation amid dividends recommendations

2015-03-12

Sahem Weekly Trading Report 12/03/2015-09 

The trading pace of Palestine Stock Exchange PEX has not changed this week, whereby; the price movements have not witnessed glamorous performance for the index or any of the leading companies.  The liquidity indicators continued in low rates and Al-Quds Index has continued its fluctuations slightly above the 500-point level, within the heavy-weighted stocks’ attempts to record new price levels. This comes within a phase that is articulated- not routinely- that dominates the investors and the Palestinian investment environment, especially the PEX. Where, the Palestinians await the Israeli Knesset’s elections next week; which one of the potential consequences may be a radical change that can spell some hope for the issues related to the Palestinian cause.  

On the other hand, the boards of directors of the listed companies continue to raise their recommendations to distribute dividends for the year 2014 and schedule the dates for holding the general assembly GA meetings to approve these recommendations. In this context, the BOD of Palestine Development and Investment Company PADICO proposed to the GA that will be holding a meeting in the mid of May, distributing 5% cash dividends, to record a payout ratio of 62.50% based on the net income attributable to the shareholders of the parent company, and dividends yield of 3.87% according to the current market price. Moreover, Palestine Industrial Investment Company PIIC- PADICO’s subsidiary and investment arm in the industry sector- raised a recommendation to the GA that will hold a meeting during the 2^nd half of April, to distribute 10% cash dividends for the year 2014, to record a dividends yield of 5.21% based on the current market price.

Moreover, the BOD of the National Carton Industry Company NCI recommended to the GA that will be holding a meeting on 23/04/2015 distributing 8% cash dividends, to record dividends yield of 7.69%. On the other hand, the BOD of Trust International Insurance Company TRSUT recommended distributing 10% cash dividends for the year 2014, to the GA that will be holding a meeting on 21/04/2015. In this context, four companies out of seven listed companies in the insurance sector raised dividends distributing recommendations for the year 2014. Furthermore, the BOD of the Arab Islamic Bank AIB proposed distributing 8% cash dividends for the year 2014; to be the 2^nd bank that announces its dividends distribution recommendations.