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Weekly Trading Report [02-06/08/ [2015
Within the continuation of liquidity scarcity in Palestine Stock Exchange PEX and the increase of indolence in parallel to expecting a momentum in the semi-annual financial data disclosures, Al-Quds Index ranged itself around the prevailing support levels, following the variation in the general direction for the heaviest weighted stocks. However, some institutional or high-volume transactions appear, to raise the trading value from time to time far from the most important and effectible circulation on trading activity. The deadlock in the political horizon and its direct effect on the local economy is one of the clearest reasons for the weak trading in the PEX. The idleness is clear and investors’ conservatism is hard to predict in size and continuity for its relation with general and dominating reasons. Despite this, hope for price revival appears following a healthy trading momentum that is connected to the substantial issues for the listed companies in the PEX. Whereby, the dividends distribution policy is stable and growing for some companies, and dividends yield and market indicators compete strongly with the regional financial markets. This is attributable to the companies’ ability to operate in the hardest conditions while earning continuous profits.
In regard to the slowness in the disclosures and their pace that didn’t exceed the two companies till this moment, the anticipation for the leading companies’ disclosures increases for a number of reasons. Whereby, creating a clearer visions for the annual yield from dividends constitutes the largest pace, especially that the price change for the heaviest weighted stocks, since the beginning of the year, is negative and will decrease the total return for the investor. Moreover, there are policies adopted by some companies that are on the radar by analysts and medium and long-term investors in order to grab new investment opportunities or monitor attempts for changing the investment positions. Among them, companies’ policies in term of hedging against external factors in their attempt to control net profits and in terms of cost control opposed to operating revenues simulation in some sectors in order to achieve good and progressing profit margins.
Regarding the week’s trading, the price range of Al-Quds Index exceeded five points when some stocks recorded new price levels. In this context and despite its weak transactions and difficulty in filling orders, the stock of Palestine Development and Investment Company PADICO recorded its lowest level during one year, when touched the level of $1.12 during the trading sessions of the week. PADICO ended its trading value that hit $0.15 at the level of $1.14 without change. On the other hand, the stock of Palestine Telecommunications PALTEL recorded, within medium-volume trading that reached $0.54 million, a slight increase by 0.37%, to close at the level of JD5.47. On the other hand, the stock of Bank of Palestine BOP topped the PEX’s trading value when constituted 79.87% after executing an institutional transaction that exceeded the 2 million shares. While BOP closed at the level of $2.60; up by 0.78%.