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2016-03-17
Sahem Weekly Trading Report (13-17)-03-2016
Amid significant variation in the trading value and volume during this week and the previous one, the limited fluctuations dominated the performance of Al-Quds Index during the trading sessions, to end the week with slight negative change, due to a balancing in the percentage change of the blue-chips with the effective weights in the Index, amid a diversity in the dividends distribution trends of these companies with the approaching holding of the general assembly meetings. This relative coherent performance of Palestine Stock Exchange PEX is supported by the market performance of each company based on the disclosed financial indicators for the year 2015, and motivated by the cheapness of the prevailing prices compared to the book values and attractive market indicators; to increase the fact of the feasibility of investment in the PEX, especially with the financial returns that will be achieved with the increase in the companies’ dividends distribution proposals. The capital gains – despite the speculative movements from time to time- are still focused on due to the exceptional conditions of the Palestinian economic and investment environments which are ruled by political causes that may result in fated developments in general.
Regarding the dividends’ proposals, the board of directors of Palestine Poultry Company AZIZA- which is owned by Palestine Industrial Investment Company PIIC; the investment arm of Palestine Development and Investment Company PADICO in the industry sector- proposed to the general assembly distributing 15% cash dividends for its shareholders, to record dividends yield of 5.79%. Within the significant news of the strategic policy of the companies, the Arab Palestinian Investment Company APIC announced that one of its subsidiaries -Siniora Food Industries- is planning to acquire Diamond Meat Processing Company (Al-Masa) in UAE. It is worth mentioning that APIC owns a stake of 61.18% in Siniora, whereby, the company noted in a press release that this acquiring will strengthen its subsidiary’s position in the Gulf countries and its total revenues and profits, which in turn will be positively reflected on APIC’s stock.
Regarding the market, Palestine Telecommunications PALTEL constituted around 24.65% from the PEX’s total trading value of the week, to close at the level of JD5.58; slightly down by 0.36% after trading in a narrow price range. This follows the approaching holding of the general assembly meeting at the end of March to approve distributing 45% cash dividends. The stock of the Arab Islamic Bank AIB followed, to secondly top the PEX in terms of activity by 21.13%. On the other hand, AIB’s stock stabilized at the level of $1.50 without any change than the previous week. The stock of Palestine Commercial Bank PCB followed when its transactions constituted 19.40% from PEX’s total trading value, to accordingly decline significantly by 4.26% and close at the level of $0.90.
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