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Blue Chips are back to top trading values

2016-02-04

Weekly Trading Report [31/01-04/02/ [2016

The daily average trading value increased significantly during this week compared to the corresponding few previous weeks. Despite the unchanging in the investors’ anticipation drivers so far, but executing some high-volume transactions in the market, which in turn raised the value, may be related to repositioning reasons on specific stocks and sectors during the dividends distribution announcements period. In terms of prices, the total balancing of the stocks included in Al-Quds Index supported the cohesion of the index and its trading in a little wider range. Whereby, despite the price stability for some stocks with heavy weights, some stocks with small and medium market capitalizations and low weights contributed in closing the index in the green zone after recording good gains.

Some of the important news this week is the start of announcing the dividends distribution proposals for the year 2015 in parallel to approving the annual financial data. The disclosure of the National Bank TNB was the most attention dragging this week, whereby it proposed to the general assembly GA distributing 5% cash dividends for its shareholders; the first time to distribute dividends since the bank’s establishment in 2005. This came in parallel to the bank’s succeeding in increasing its financial performance with more than 100%, which accordingly, TNB will rely on systematic policy to ensure stability in the dividends distribution percentages in the coming years based on the financial indicators. According to the proposal, TNB records dividends yield of 3.45%.

In the same context, the board of directors BOD of the Arab Company for Paints Products APC raised a recommendation to the GA, which will be holding a meeting on 15/02/2016, to distributing 50% cash dividends and record dividends yield of 11.11% and payout ratio of 71.43% from the earnings per share EPS of 2015. Moreover, APC disclosed achieving net income of JD1.06 million at the end of 2015; up by 78.54% than the year 2014 in parallel to a sharp growth in the company’s sales and what followed of an increase in gross income. Furthermore, the BOD of the National Insurance Company NIC proposed to the GA, which will be holding a meeting on 31/03/2016, distributing 12.50% cash dividends for the year 2015, to record dividends yield of 4.39%.  While NIC hasn’t disclosed its financial data for the year 2015 yet to determine the reasons of the decrease in the dividends distribution percentage compared to the previous year.

Regarding the trading, the stock of Bank of Palestine BOP topped Palestine Stock Exchange PEX by 39.49% after executing cross deal, whereby, the seller is a member of the bank’s BOD. The stock of Palestine Development and Investment Company PADICO followed when its transactions contributed for 29.98% from total PEX’s trading value.  This resulted from executing cross transaction in the last trading session of the week between the major shareholders and other related parties. While, the stock of Palestine Telecommunications PALTEL followed when its transactions contributed for 21.59% from PEX’s total trading value. And finally, the stock of Palestine Commercial Bank PCB followed with contribution of 6.79%.