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Sahem Wekkly Trading Report (26-29)-04-2015
Amid a four-trading sessions’ week in Palestine Stock Exchange PEX, Al-Quds Index continued its coherent performance that is leaning to slightly rise or decline, amid medium liquidity controlled by one of the leading stocks every time. During the week, the heavy weighted stocks traded in a narrow price range; while, the widening in the price movements and achieving significant gains for the lower-weighted stocks in the Index led Al-Quds Index to continuously close in the relative stability zone. Within the liquidity indicators, the leading companies that are holding their general assembly GA meetings exchange roles in topping the PEX’s trading value when their stocks enter the routine period of trading between the pre-entitlement and ex-dividends.
Regarding the leading companies’ disclosures at the end of the week, Palestine Telecommunications Company PALTEL noted posting net income after tax of JD22.22 in Q1 2015; down by 14.45% than Q1 2014. This decline was attributable to a decrease in both of operating revenues due to the currency exchange fluctuations and the investments profits following the decline in the cash dividends distribution for some of PALTEL’s investments in addition to a decline in the prices of some stocks in the PEX. Based on the disclosed financial data and after the approval to distribute 45% cash dividends for the year 2014, PALTEL recorded a book value of JD3.62 and P/BV ratio of 1.44x.
Moreover, Palestine Development and Investment Company PADICO noted posting a decline in its net income attributable to the shareholders of the parent company by 19.81%, when reached $5.78 million in Q1 2015. This followed the variation in the profitability of subsidiaries and affiliates, whereby, the investment arm of PADICO in the real estate sector achieved an increase in its net income due to an increase in the sales of Al-Ghadir Residential project. On the other hand, a witnessing decline in both PADICO’s arm in the industry sector which reported a lower income due to a decline in the poultry products prices and the investment arm of PAIDCO in the tourism sector giving its sensitivity to the political and economic issues. Whereby PADICO recorded a BV of $1.75 and P/BV of 0.73x. It is worth mentioning that the company hasn’t distributed the recommended cash dividends yet, whereby, the general assembly of the company will be holding a meeting on 18/05/2015 to discuss the recommendation of distributing 5% cash dividends for the year 2014, a dividend yield of 3.94%.
At the end of the previous week, Bank of Palestine BOP held its GA meeting and approved distributing 12% cash dividends and 9.375% stocks dividends, to raise the bank’s paid-up capital to $175 million. Moreover, BOP disclosed its Q1 2015 financial data, noting recording net income after tax of $9.99 million; up by 4.46% than the corresponding period of 2014. This was attributable to an increase in gross profits that dominated the growth in operating expenses and impairment provision of direct credit facilities. On the other hand, the Arab Palestinian Investment Company APIC disclosed posting net income attributable to the shareholders of the parent company of $1.79 million; down by 24.62% due to a decrease in net sales and recording a slight non-operating loss. According to the data, APIC records a BV of $1.32 and P/BV of 0.83x. It is worth mentioning that the BV doesn’t include the approved decision of distributing dividends for the year 2014 that includes distributing 7.5% cash dividends, to record dividends yield of 6.88%.