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Al-Quds Index in the green zone despite the scarcity of new developments

2016-06-02

Sahem Weekly Trading Report (29-05)-(02-06)-2016

The scarce liquidity and trading rigidity in Palestine Stock Exchange PEX are most obvious during this period, and undoubtedly results in performance idleness amid the investors’ conservatism that is hard to predict in size and longevity.  No doubt that the PEX’s observer has clearly seen a bottom of Al-Quds Index, in which, the leading stocks balanced themselves around due to low prices and attractive market indicators’ levels, especially with the distinguished data disclosures for Q1 2016, leading the observer to at least predict a stability in the annual yield. While the cash dividends distribution effects especially on the leading stocks significantly results in a decrease in Al-Quds Index during May and the beginning of June at these low levels, especially with the semi-absence of any updates on the general and political arena. But the simple rebound of some of heavy weighted stocks this week has most importantly impacted the closure of Al-Quds index in the Green Zone.

Regarding this week’s trading which is weak and scarce, especially, if compared to the daily average trading value of 2015, the stock of Al-Takaful Insurance Company topped the PEX by 53.18% of the continuous trading after executing several institutional transactions, in which the chairman and board members sold part of their stakes. The stocks of Bank of Palestine BOP followed in terms of activity, to constitute 17.04% from PEX total trading value. BOP currently trades around important support levels in its routine price cycle. Moreover, the stock of the Arab Palestinian Investment Company APIC followed with medium-cap trading, whereby, the stock is still maintain its levels above the equivalent price after distributing stocks and cash dividends. APIC constitutes 5.53% from PEX total trading value. While the price movements of the stock of Palestine Development and Investment Company PADICO were horizontal along the week but rebounded upward at the last trading session within medium trading worth 5.23%. On the other hand, the stock of Palestine Telecommunications PALTEL witnessed strength at the current support level within transactions that constituted 3.66%.

Regarding the listed companies,  The National Bank TNB signed its first contractual agreements for the Custody Service with the Palestinian Pension Agency, whereby allows the bank to administer the agency’s portfolio, accounts and property. Under the agreement, TNB will provide custody services for all the portfolio of the Investment and Financial Agency and keep them updated of all procedures regarding interests, profits and equity attributable to these financial and investment portfolios, in addition to managing cash surpluses and liquidity based on the instructions of its investment agency, and under the supervision of a professional and trained staff in this field, to ensure an efficient management  of money for the Palestinian retirees optimally.