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Lack of liquidity despite exchange of roles within the activity list

2016-03-03

Sahem Weekly Trading Report (28/02-03/03) -2016

The observer to the performance of Palestine Stock Exchange PEX is still under the relatively-unknown status, which has started since several years. It has started when some of the financial market theoretical objectives couldn’t meet with the attractive market indicators created by the companies’ stocks. The observer, technically and scientifically, to the performance of the Palestinian stocks throughout the years whereby the PEX recorded competitive yields, knows that essential factors are still lacked in implementing the technical role of the “financial market” in Palestine as for the world, which with their absence, the investor, speculator, observer, analyst and issuer are still in a frequent and far-ending anticipation. Moreover, the anticipation is always dominated by new lifting liquidity or active circulation even if horizontal.

With the entry of the annual routine price cycles following the financial data disclosures and dividends distribution trends’ announcements, this week doesn’t differ from its corresponding in the year 2016. Despite changing the positions of the most active stocks, the lack of liquidity still dominates the trading in the PEX. The high-volume institutional transactions are the main leverage for the trading value this year only, whereby undoubtedly, some drivers for these transactions fall within the routine cycles of the price movements.  

The stock of Al-Takaful Palestinian Insurance Company TIC topped the PEX by 50.06% after executing an institutional transaction of the company’s stocks which its motives may fall within distributing the investments between a holding company and its subsidiaries before the entitlement of the investments’ dividends. Whereby, the general assembly GA of TIC will be holding its ordinary and extraordinary meeting in the last week of March to approve distributing 10% stocks dividends for the year 2015. According to the proposal, TIC will raise its paid-up capital to $9.35 million. Regarding the activity, the stock of the Arab Palestinian Investment Company APIC followed when its transactions constituted 16.49% from the PEX total trading value after the flow of new institutional liquidity in the last trading sessions. It is worth mentioning that APIC proposed distributing 5% cash dividends and 5% stocks dividends for the year 2015, while it hasn’t determined the GA meeting date yet. Within the dividends proposals, the board of directors BOD of the Arab Islamic Bank recommended distributing 7% stocks dividends for the year 2015, to raise the paid-up capital to $53.50 million. Furthermore, the BOD of Global United Insurance Company GUI proposed, to the GA that will be holding a meeting on 10/04/2016, distributing 7.5% cash dividends for the year 2015.