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Medium-cap banking stocks dominate transactions

2016-01-14

Weekly Trading Report [10-14/01/ [2016

With the increase in the trading value than the first week of the year 2016, medium-cap stocks in Palestine Stock Exchange PEX acquired the highest liquidity percentages this week; to outperform the leading stocks that maintain the highest turnover and weights in Al-Quds Index. While some of the banking sector’s stocks constituted the highest stake in trading value; transactions on some investment stocks of the same market value levels were active too. On the other hand, the anticipation in the PEX increases in waiting for the companies’ financial and operations data disclosures in 2015. This was reflected in conservatism among several investors’ types on the trading or its nature especially on the leading stocks in this period. With the entry of the year 2016, the routine cycle starts in the stock market, which with its sequences stages; the price impact varies with the variation in traders’ behaviours. The fiscal year ends and the annual financial disclosures start, then the dividends’ distribution decisions’ announcements follow, then the entitlements come next, and finally measuring the return on investment. This comes with efficient price reflections and well expected routine cycles if other factors remain constant.

Despite the extraordinary difficult conditions of the Palestinian political and economic scene, the optimism increases, to achieve a growth in the annual total profits of the listed companies in the PEX for the year 2015, as what the first nine months of 2015 showed, in which in turn the truth has strengthen about the companies’ ability to adapt with all conditions and overcome all the external obstacles as a result of managing assets optimally. During the week, many listed companies held their board of directors meetings prior to disclosing their annual financial data. Some companies will recommend in their coming meetings distributing dividends for the shareholders for the year 2015. In this context, a clearer vision appeared about the leading companies like “PALTEL” and “PADICO”, which held their meetings this week without taking into consideration the dividends distribution recommendation; therefore anticipation now look forward for the coming meetings.

In this week, the stock of Palestine commercial Bank PCB topped the PEX by constituting 23.00%, to record sharp gains of 8.16% and close at the level of $1.06. It is worth mentioning that PCB is not calculated in the sample companies of Al-Quds Index. The stock of Palestine Telecommunications PALTEL – the largest company by market capitalization- followed when constituted 19.37% from PEX total trading value, to increase by 1.27% and close at the level of JD5.57. The stock of Al-Quds Bank QUDS followed when contributed for 18.42% of total trading value, to grow by 0.74% and close at the level of $1.36. Moreover, activity was noticed on the stock of the Arab Palestinian Investment Company APIC, to constitute 11.21% from the weekly value. APIC achieved gains of 2.70% and closed at the level of $1.14.