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The PEX under heavy lack in liquidity and growing anticipation


Weekly Trading Report [24-28/01/ [2016

Amid a significant horizontal trading of Al-Quds Index this week, the price movements of the majority of traded stock were heavy and slow due to the scarcity in purchasing bids in their prices depth. Whereby, the average daily turnover decreased sharply compared to the last weeks of the last year, which in turn had raised some hopes for the beginning of this year. It is undoubtedly that the two periods are different from each other- the end of the fiscal year and the beginning of a new one- , whereby, the basis of taking investment decisions vary among them. With entering the New Year 2016 and the end of the first trading month of January, the anticipation’s intensity among all traders’ categories increased for the financial results of the listed companies for Y2015, which through it the investment yield will be clearly determined. With the beginning of February, 15 days remain to the legal period for the disclosures from the 45 days granted to the listed companies. However, the board of directors are announcing now the dates of holding their meetings as a prior step to disclose their financial data.

The investors’ anticipation during these days, which in turn affects the liquidity levels, is reflected on sellers and buyers of the listed stocks. Whereby, both are conserving their role in executing the transaction despite their different decision taking basis. However, it is undoubtedly that a category of speculators exist who don’t take into account to any basis in this current period. Whereby, whoever conserves purchasing, refers his decision mainly to two factors; either he prefers to purchase after disclosing the financial data of the companies even if the prices rise, or he prefers to postpone the purchasing after the dividends entitlement and what follows of price declines. While, whoever conserves selling, mostly refers his decision on what oppose the buyer’s decision’s basis. He may conserve selling till disclosing the companies’ financial results even if the prices decrease accordingly, or he may prefer to sell before the dividends’ entitlement given the fact that the prices will be higher than what will accrue to later.

Despite the declining in liquidity levels, the banking stocks with medium-capitalization are still topping the weekly trading value side by side with the routine leading stocks. In this context, the stock Bank of Palestine BOP topped Palestine Stock Exchange PEX by 22.56% this week, to increase by 0.34 at the level of $2.95. The stock of Al Quds Bank QUDS followed with transactions that constituted 22.22% from the PEX’s total trading value, to increase by 0.75% and close at the level of $1.35. Moreover, the stock of Palestine Telecommunications PALTEL followed when its transactions contributed 119.23% from total trading value, while the share dropped by 0.18% closing at JD5.55. The stock of Palestine Development & Investments PADICO came then with a contribution of 8.96%, while the price dropped by 0.84% closing at $1.18.The stock of Palestine commercial Bank PCB came next when its transactions accounted for 6.61% from the PEX’s total trading value, to increase by 0.93% and close at the level of $1.09.






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