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Weekly Trading Report [18-22/10/ [2015
Within significant gains for Al-Quds Index, substantial news on some listed companies was the main leverage for the increase this week, without paying attention to the continuous security escalation in the Palestinian Territories. Whereby, Al-Quds Index contrasted the current general situation, which in turn is difficult to predict its impacts. During the week, some stocks continued to record gains after interacting positively with the released news in the current month that may affect their operating results in the medium and long run. However, the disclosed financial results during the week also created a momentum on some stocks. Whereas, the disclosed financial data, further motivated the hike in prices after developing a clearer vision for the expected annual return; especially with the fundamental positive changes in the net income of 9M 2015 for some companies.
In terms of disclosures’ momentum, the announcement of Palestine Electric Company PEC dragged the most attention this week. PEC noted posting net income of $9.87 million in 9M 2015; significantly up by 630% than the corresponding period of 2014. This growth followed the increase in operating income by 58%, in addition to not incurring any extraordinary losses like the year 2014. It is worth mentioning that the company didn’t distribute any dividends for the year 2014 after reporting weak profits due to the Israeli aggression on its power plant in Gaza Strip, which led to a decrease in the monthly bill in addition to incurring repair expenses after the unplanned damages. According to the disclosure, PEC records a book value of $1.46. While accordingly, the stock recorded price gains of 9.71%, to close at the level of $1.13 and record P/BV of 0.77x.
In the blue-chips disclosures, Bank of Palestine BOP- the largest bank by market capitalization- announced posting net income of $33.31 million in 9M 2015; up by 20.46% than 9M 2014. This growth followed an increase in gross income by 20.61% due to noticeable increases both of net interest and commissions’ income and gains from foreign exchange currencies. Accordingly, BOP records BV of $1.68. And the share closed at the level of $2.58; up by 2.79% and recording P/BV of 1.54x. In the same context of the attention dragging announcements, the financial data of the Vegetable Oil Industries Company VOIC showed posting a net income of JD4.30 million in 9M 2015; up by 9.06% than the corresponding period of 2014. This growth came after an increase in the company’s stake of its affiliates’ profits and a decrease in the loss from exchanging foreign currencies despite the decrease in the operating income. VOIC records BV of JD5.54 and P/BV of 1.56x.