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Sahem Weekly Trading Report [15-19/05/ [2016
Listed companies in Palestine Stock Exchange PEX continued to hold their general assembly GA meetings to approve dividends distribution for the year 2015. This week, the GA meetings of blue-chips with the highest market caps, weights and circulation in the market were completed, to start a routine price declines wave in order to balance the prices after the dividends’ distribution. In accordance, Al-Quds Index was affected once again and declined significantly this week, to trade around the levels recorded in October last year. It is worth mentioning that with the price declines to support levels- historically strong-, the anticipation degrees among investors increase in order to capture the best opportunities to build investment positions in the PEX. Whereby, with the price routine cycles of the leading stocks prior and after the dividends distribution, the main reason for the price movements in the PEX in general appear.
Regarding the significant news of the week, the GA of Palestine Development and Investment Company PADICO approved distributing 5% cash dividends for the year 2015, to record dividends yield of 4.39% and payout ratio of 54.35% based of the EPS attributable to the parent company of 2015. In the market, PADICO’s price declined by a percentage that exceeded the dividends’ yield, to decrease sharply below its equivalent price and stabilize at the level of $1.06 at the end of the week. However, the eyes are dragged by several traders’ categories for what may accrue in prices in the coming week. Moreover, the GA of the Arab Palestinian Investment Company APIC approved distributing 5% cash dividends, to record dividends yield of 3.85% and payout ratio of 42.02% based on the EPS attributable to the parent company for the year 2015. On the other hand, the GA also approved distributing 10% stocks dividends (6 million shares), to raise the paid-up capital to $66 million. This had a significant price effect, to close at the level of $1.12 after modifying the market capitalization before and after the stocks dividends’ distribution on one level and trading between cum- dividend and ex-dividend.
Regarding other news, Palestine Capital Market Authority PCMA approved the prospectus of offering the shares of Islamic Bank Al-Safa- the new Islamic bank in Palestine- by an amount of 38.04 million shares from 75 million shares for Initial Public Offering IPO, whereby, the founders subscribed to a total of 36.95 million shares. The bank will be the third Islamic bank in Palestine after Palestine Islamic Bank ISBK and the Arab Islamic Bank AIB.