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Weekly Trading Report [03-07/04 [2016
Al-Quds Index regained its balancing this week after had been declining during the previous week due to the dividends’ entitlement of the two largest companies in terms of market capitalization in Palestine Stock Exchange PEX. As the period of holding general assembly meetings of the listed companies is still at its beginning, the PEX has entered the legal period of disclosing first quarterly financial data of 2016 with the start of April. This leads to an overlapping in the anticipation factors among investors and prevailing prices solidity in this period given the fact of conservatism domination more than changing the investment positions. In terms of liquidity, the observer monitors the quiet pace in general and lack of speculations despite attempts to catch investment opportunities and enlarge the yield during the dividends distribution period.
In terms of dividends entitlement, the general assembly GA of the National Insurance Company NIC approved, on its meeting on 31/03/2016 distributing 12.50% cash dividends to its shareholders, to record dividends yield of 4.55%. NIC declined by 1.82%, without further declining to its equivalent price after the distribution. Moreover, the GA of Birzeit Pharmaceuticals Company BPC approved distributing 20% cash dividends to its shareholders as for 04/04/2016, to record dividends yield of 5.63%. Following this decision, BPC automatically declined to a lower level than its equivalent price after the distribution, to record weekly decline of 6.57%. As for dividends recommendations, the board of directors of Jerusalem Pharmaceuticals Company JPH proposed to the GA, which will be holding a meeting on 28/04/2016, distributing 8% cash dividends.
On the trading of this week, the stock of Palestine Telecommunications PALTEL topped the PEX by 37.02%, which in effect, the price movement was slow and in a significant narrow range, while undoubtedly, constituted a solid support level around its equivalent price after the distribution. The stock of Bank of Palestine BOP followed when constituted 13.02% from PEX total trading value, which in turn started to form strength levels around its equivalent price after it had declined from it following the dividends distribution approval. And within a weak trading, the stock of the Arab Palestinian Investment Company APIC followed when its transactions constituted 12.40% from total trading value, while the stock witnessed positive price shifts, to close at its 52 weeks high level; up by 2.44% this week. It is worth mentioning that the BOD recommended distributing 5% cash dividends and 5% stocks dividends, while the GA hasn’t determined its meeting date yet. As for the leading stock of Palestine Development and Investment Company PADICO, its transactions were very weak and slow which didn’t exceed $71 thousands, whereby, the stock traded in narrow range. It is good to note that the BOD proposed to the GA on its meeting on 17/05/2016, distributing 5% cash dividends.