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Sahem Weekly Trading Report (14-18)-02-2016
Within a week that witnessed significant news momentum about the Palestinian listed companies, Al-Quds Index continued to trade in balancing within a controlled price range. Whereby, the anticipations dominated the trading nature in the few previous weeks in waiting for disclosing the companies’ financial data and their dividends distributions’ trend accordingly, the variation in the investors’ behaviours is what drags the attention for the coming period. Building investment positions for some stocks is what may distinguish the coming weeks, while undoubtedly price speculations will constitute an essential part too within the stocks’ routine price cycles, in parallel to the dividends’ distribution season. On another hand and regarding the disclosures, the listed companies’ results were unique, to ensure once again their ability to operate and manage their assets despite the surrounding conditions. This week, a number of dividends’ distribution recommendations were raised, to fulfil the constant dividends distribution policy or implement that strategy given initiating enriching the shareholders’ equity.
The disclosed figures by the blue-chips were one of the most significant and noticed issues from all the Palestinian securities’ parties this week. Whereby, Palestine Development and Investment Company PADICO posted an increase of 18.84% in the net income attributable to the shareholders of the parent company, to reach $23.05 million at the end of 2015. This growth followed an increase of 30.67% in the operating revenues of PADICO’s subsidiaries, to record earnings per share EPS of $0.09, BV of $1.78, P/BV of 0.65x and PE ratio of 12.72x. Accordingly, the board of directors of PADICO proposed distributing 5% cash dividends for the year 2015, to record a pay-out ratio of 55.55% and dividends’ yield of 4.27%. Regarding the other leading stocks, Bank of Palestine BOP noted a net income attributable to the shareholders of the parent company of $43.09 million in 2015; up by 7.27% than the year 2014 after reporting and increase of 12.78% in net interests and commissions. Accordingly BOP records BV of $1.74, P/BV of 1.70x, EPS of 0.25 and PE Ratio of 11.8x.
Regarding the highest market capitalization blue-chip in the market- Palestine Telecommunications PALTEL-, the company noted posting net income of JD83.06 million in 2015; slightly down by 2.36% following a decrease in operating revenues due to the variation in the foreign exchange rate between the compared periods, to record EPS of JD0.63 and PE ratio of 8.82x. PALTEL also records BV of JD4.13 and P/BV 1.34x. On the other hand, the BOD of the company raised a recommendation to distribute 45% cash dividends to the general assembly that will be holding a meeting on 28/03/2015. Based on the recommendation, PALTEL records a pay-out ratio of 71.43% and a dividends yield of 8.10%. Regarding the other dividends recommendations, Palestine Islamic Bank ISBK proposed distributing 8.5% cash dividends for the year 2015. Furthermore, Palestine Real Estate Investment Company PRICO proposed distributing 5% cash dividends for its shareholders. Moreover, Birzeit Pharmaceuticals Company BPC recommended distributing 20% cash dividends for the year 2015.