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Sahem Weekly Trading Report (08-12)-05-2016
Within a slight varied price trend performance of the leading stocks in Palestine Stock Exchange PEX which was opposed by a decrease in the trading value of the medium-cap stocks, Al-Quds Index declined below the 500 points level, to trade at the end of the week at its lowest level since November 2015. While the variation in price movements of the blue-chips results from the recession of ex-dividends wave of some stocks after approving the distribution versus the movements on other leaders prior to holding the general assembly GA meeting in the coming week. While the price declines after the ex-dividends of the stocks that distributed dividends during the previous two weeks majorly resulted in breaking the physiological support barrier of the Index.
Within the significant news regarding the dividends distribution this week and its reflection on the market performance, the stock of Palestine Real Estate Investment Company PRICO- the investment arm of Padico Holding in the real estate sector- decreased noticeably by 10.17%. This followed approving distributing 5% cash dividends, to record dividends yield of 8.47% and payout ratio of 294% based on the EPS of 2015. PRICO currently trades on a price level below its equivalent price after distribution. On the other hand, Palestine Industrial Investment Company PIIC- the investment arm of Padico Holding in the industry sector- hasn’t witnessed any change in price after approving 6% cash dividends distribution, to record dividends yield of 3% and payout ratio of 33.33%. Moreover, the stock of Palestine Poultry Company AZIZA- a subsidiary of PIIC- hasn’t also witnessed any change in price after approving 15% cash dividends distribution, to record dividends yield of 6% and payout ratio of 65.22%. While the stock of Al-Quds Bank QUDS declined by 4.00% this week, whereas, it trades above its equivalent price after the stocks dividends distribution.
Regarding the performance this week, the stock of Bank of Palestine BOP topped the PEX by 46.73% after executing high-volume transaction on its stocks. The stock of Palestine Telecommunications Company PALTEL followed when its trading value constituted 19.83% from total trading value of the PEX. It is worth mentioning that the stocks of these two companies trade on a significant discount from their equivalent prices after the distribution. The leading stocks which will be holding their GA meetings in the coming week followed, whereby, the trading value of Palestine Development and Investment Company PADICO constituted 14.04% from total PEX trading value. The GA of PADICO will discuss, on 17/05/2016, distributing 5% cash dividends, to record dividends yield of 4.35% based on the current price. While the trading value of the Arab Palestinian Investment Company APIC constituted 6.40% from total trading value of the PEX, while the GA of the company will discuss, on its meeting on 18/05/2016, distributing 10% dividends between cash and stocks.