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Weekly Trading Report 09-13/08/2015
In a week that hasn’t witnessed any change in its liquidity pace from the previous, the price range of Al-Quds Index widened following some leading and effectible stocks touching to higher levels than the previous weeks. Whereby, Al-Quds Index ended the week in the green zone after announcing the initial approval for granting the 3G mobile spectrum to the mobile telecommunications operators in the Palestinian Territories. The semi-annual financial data disclosures witnessed a momentum in the latest days of the granted legal disclosure period, whereby, the disclosure announcements accelerated to formulate a clearer vision about the annual yield on one hand and the investment direction for some traders’ categories on another hand. In regard to the distinguished disclosures, Bank of Palestine BOP – the largest bank by market capitalization- disclosed posting an increase in its net income during the first six months of the year 2015 that reached 19.93% when recorded $22.70 million net income attributable to the shareholders of the bank. This growth came after recording conservative growth rates for a period of time. While this increase comes in parallel to a growth in the gross income due to a significant increase in the net interests and commissions’ income and foreign exchange income, to exceed the expenses conjugated with the bank’s expansion. According to the disclosed data, BOP recorded book value BV of $1.62 and P/BV of 1.61x.
However, several banks disclosed distinguished financial data with double digits growth rates. In this context, Palestine Islamic Bank ISBK recorded 50.59% growth in its net income in H1 2015, to report net income of $5.08 million following an increase in the net income from financing and investing, besides recording recovery from tax provision after completing the tax reconciliation with the Ministry of Finance regarding the bank’s operations and its employees salaries for the period between 2013-2015. It is worth mentioning that ISBK recorded P/BV 0.96x. Moreover, the National Bank TNB noted posting net income after tax of $2.68 million in H1 2015; up by 20.30% than the corresponding period of 2014. This increase followed significant growths in net interests and commissions and foreign exchange income. TNB recorded P/BV of 1.17x.
Regarding the other disclosures that reported declines, the Arab Palestinian Investment Company APIC noted posting net income attributable to the shareholders of the parent company of $3.67 million; down by 35.38% than H1 2014. This decrease came despite the increase in the operation income due to recording contingent liabilities provision of $1.89 million, which represents impairment provision for the investment in Unipal Central and West Africa Company which is currently in liquidation, following the management’s decision during June 2015. According to the disclosed financial data, APIC recorded BV of $1.27 and P/BV of 0.82x. On the other hand, the net income of the Vegetable Oil Industries Company VOIC decreased by 6.95% in H1 2015 due to the foreign currency exchange fluctuations in the compared periods. VOIC recorded net income after tax of JD2.48 million after a decrease in the operation income and the company’s stake from associates’ profits. VOIC recorded BV of JD5.08 and P/BV of 1.69x. While the investment arm of Padico Holding in the industry sector- Palestine Industrial Investment Company PIIC- the holding company of Palestine Poultry Company, the National Carton Industry Company and Palestine Plastic Industrial Company, posted net income attributable to the shareholders of the parent company of JD1.60 million in H1 2015; down by 23.13% compared to the corresponding period of 2014. This followed a decrease in the gross income of Palestine Poultry Company and the significant fluctuations in the poultry market in Q1 2015, in addition to a decrease in the company’s stake from its associates’ profits. PIIC recorded P/BV of 1.06x.