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Sahem Weekly Trading Report (27-31)-12-2015
Al-Quds Index was covered in green at the end of the year 2015; achieving annual yield of 4.10% to erase the declines witnessed along the first three quarters of the year. The increases in the last quarter of the year followed the reviving in liquidity and trading values to erase all losses and record premium to low of 11.42% for the year 2015. In this context, Palestine Stock Exchange PEX ended the year with individual and isolated performance from any challenges in terms of the political and security situations, to ensure once again that the basses of investments and the investment decisions stem from substantiality of the Palestinian companies and mainly the environment that incubates them. It is worth mentioning that the year 2016 holds new hopes which may be attributed to what has the year ended with and may drag the attention gradually to the local bourse in parallel to the efforts of all of the parties of the securities sector.
This week has witnessed sharp transactions in control of the cross deals on the leading stocks with the highest weights. Whereas with the routine trading of the end of the year, the movements of changing the investment positions by the institutional investors dominate the profits taking and reporting process or help in transferring the price valuing in the balance sheet. In this context, the stock of Bank of Palestine BOP topped the PEX when its transactions contributed for 41.68% from total trading value. The stock of Palestine Telecommunications PALTEL secondly topped the PEX by 23.84%, while, the stock of Palestine Development and Investment Company PADICO followed BOP when its transactions contributed for 19.22% from the PEX total trading value. Moreover, other banking stocks with lower weights in the index witnessed active and rapid transactions, of which some were accompanied by sharp price changes.
Regarding the substantial news of the PEX and its companies, it is expected that the year 2016 will witness new listings and IPOs; the Islamic Bank Al-Safa , Sbitany & Sons Company, Sanad Construction Industries Company and The Middle East Pharmaceuticals and Cosmetics Laboratories Company. Moreover and routinely, the PEX conducted its annual revision of the sample companies included in the index within the applied methodology on the trading activity on the listed companies. However, no substantial changes have been applied on the sample, whereby the same sample companies of 2015 still fulfil the conditions of accession the Index; to maintain the same sample companies for the year 2016. Furthermore, some economic data accelerated to imply for some general indicators. Preliminary estimates indicated an increase in GDP in Palestine by 3.5% during 2015 compared with 2014; GDP per capita has increased by 0.5% during 2015 compared with 2014.The largest contributor to the increase in GDP in 2015 was the services and other items activity, which is considered the major contributor to GDP.