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Weekly Trading Report [03-07/05/ [2015
The blue-chips continued to trade in its narrow price range, whereby, Al-Quds Index closed with a slight negative change; trading around its current levels for a medium-term period. The roles of some stocks with medium market capitalizations and weights may be highlighted from time to time in terms of significant price movements, but the horizontal performance of the heavy weighted stocks in Al-Quds Index primarily dominated the overall performance of Palestine Stock Exchange PEX, especially with the relative declining or absenteeism of the general political or economic incentives. Regarding the liquidity indicators, the flows in the market were not active or extraordinary, but were dominated with speculative movements parallel to holding the general assembly GA meetings period to entitle dividends distribution and enlarge the return on investments. Moreover, purchasing offers with long term investment purpose appeared especially with the decline in the market values of the stocks that distributed dividends.
Regarding the dividends distribution, the number of listed companies that approved dividends distribution for the year 2014 reached 19 companies till now, mostly approved cash dividends, while, two companies approved distributing cash dividends and stocks dividends together. The cash dividends distribution percentages ranged between 5% and 60%, while, the stocks dividends distribution percentages ranged between 9.375% and 10%. This week, the GA of the Arab Islamic Bank AIB approved distributing 8% cash dividends, to record dividends yield of 6.40% for the shareholders as for 03/05/2015. Furthermore, the GA of the National Aluminum and Profile Company NAPCO approved, in its meeting on 30/04/2015, distributing 5% cash dividends for the year 2014, to record dividends yield of 4.85%.
In terms of the weekly trading, the leading stock of Palestine Telecommunications PALTEL- topped the PEX in terms of trading value when constituted 41.79% from total trading value, in which, the stock traded in a narrow range that didn’t exceed the 2 points, to stabilize at the level of JD5.20. The stock of Bank of Palestine BOP came in the second place in terms of activity, when its transactions constituted 25.72% from total trading value of the week. The trading activity has increased on BOP’s stocks after holding its GA meeting and approving distributing cash and stocks dividends leading to new lower price levels that drag the attention of long-term investors and speculators. BOP’s stock closed at the level of $2.60; down by 1.89%. Furthermore, an activity was witnessed on Palestine Real Estate Investment PRICO’s stock – Padico Holding’s investment arm in the real estate sector- this week, to record significant gains of ()% after the company’s Q1 2015 financial data disclosure of posting distinct profits due to the start of selling residential units of Al-Ghadir Residential project. Furthermore, the transactions of the Arab Palestinian Investment Company APIC were of medium-volume due to the spontaneous price decrease by4.59% after approving distributing 7.5% cash dividends for the year 2014.