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Weekly Trading Report (18-21/05/2015)
Within medium-volume trading, Al-Quds index increased this week, breaking the balancing pace that has been witnessed over the last several weeks. This increase came after the growth preponderance of the heavy-weighted stocks opposed to declines in other stocks amid trading without the entitlement of cash dividends. Whereby, the listed companies- especially the influential ones- are still holding their general assembly GA meetings in order to approve cash dividends distributions for the year 2014. Palestine Stock Exchange PEX witnessed movements and exchanging in the investment positions among traders in order to entitle dividends for some stocks to maximize their return on investment, resulting in price drops due to the varied interests in conjunction with the spontaneous decline of the stocks that distributed dividends during the week.
Recording 2.83% gains of Palestine Telecommunications Company PALTEL’s stock, was the main factor for Al-Quds Index closing in the green zone with relatively good percentage compared to the previous stillness. The price range of PALTEL widened, to touch higher levels, while, settled for JD5.45 after transactions that constituted 23.86% from the weekly trading value. In terms of liquidity, the transactions of the National Bank TNB topped the PEX’s after executing high-volume transactions in the end-of-the-week trading session; increasing its trading value to contribute by 50.47%. In terms of prices, Palestine Development and Investment PADICO opposed the price trend of PALTEL, when it declined by 5.51%, to close at the level of $1.20 after slight transactions worth $0.17 million.
The decrease in the leading stock of Palestine Development and Investment Company PADICO is spontaneous after distributing 5% cash dividends for the year 2014, dividends yield recorded 3.94%. One of the most important issues in the GA meeting was the decision of the board of directors not to execute any new investment projects in the coming period and to focus on developing the established projects in the previous period, in addition to electing a new board of directors of 13 members. Regarding the future plan, the company’s administration noted that the plan is based on maintaining, protecting and developing the current investments, in addition to completing the projects under implementation and improving the performance and profitability of the existing projects. Regarding increasing the cash flow and reducing the debt and administrative expenses, the company will continue reducing the G&A expenses, and reducing the indebtedness of the company in the coming years continuously, in addition to playing a leading role in the reconstruction of Gaza. In this context, the GA of Palestine Investment Bank PIBC approved distributing 2.36% stocks dividends, to raise the paid-up capital from $55 million to $56.30 million.