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Sahem Weekly Trading Report (10-14)-04-2016
With the continuous holding of GA meetings for the listed companies in order to close the previous fiscal year and approve the dividends distribution, the calmness pace accelerates in terms of liquidity on one hand and price movements in Palestine Stock Exchange PEX on another hand. With the mid of this month, the other half of April is on the radar to start reporting first quarterly financial data disclosures, thereby, the conservative behavior of investors in the market was reinforced due to the overlapping of the elements causing the anticipation and driving the prudence prior to taking any investment or liquidation decision. Monitoring the financial yield mainly constitutes the largest spot in any investor’s philosophy in the market, whereby, taking any decision in this period is difficult due to the expensive opportunity cost. Distributing dividends on one hand and prospects of increase in stock price due to the accumulation of operating revenues over the quarters of the year on another hand are always parallel motives prior to the investment decision.
In terms of dividends distribution of this year, the GA of Global United Insurance Company GUI approve on its meeting distributing 5% cash dividends for its shareholders as for 11/04/2016, to record payout ratio of 55.56% for the year 2015 and dividends yield of 3.03% . Moreover, the GA of the National Bank TNB approved, on its meeting on 14/04/2016, distributing 5% cash dividends, to record payout ratio of 68.49% for the year 2015 and dividends yield of 3.57%. On the other hand, the board of directors BOD of Al-Quds Bank QUDS proposed, to the GA which will be holding a meeting on 03/05/2016, distributing 11% stocks dividends, to raise the paid-up capital from $55 million to $61.05 million.
As for significant news of the listed companies, the Vegetable Oil Industries VOIC disclosed its Q1 2016; to be the first to disclose its financial data. VOIC noted posting JD0.95 million in Q1 2016; up by 18.47% than the corresponding period of 2015. This increase came due to the increase in the company’s stake of its subsidiaries’ profits and the growth in the operating profits, the available for sale assets and the profits from the foreign exchange currencies. It is good to note that the company will hold GA meeting on 27/04/2016 to discuss distributing 50% cash dividends, to record dividends yield of 5.13% and payout ratio of 37.31%. On the other hand, The bonds-holder general assembly of Palestine Commercial Bank PCB, approved on its meeting on 12/04/2016, cancelling, liquidating and paying the full value of the bonds issued by the bank which equal 10 thousands bonds worth $10 million, with paying the interests only till 13/07/2016 after taking the approval of the extraordinary general assembly of PCB. This came after Bank of Palestine BOP approved the merger with PCB in its extraordinary GA meeting at the end of March.