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Sahem Weekly Trading Report (05-09)-06-2016
It has not been difficult to the observer of Palestine Stock Exchange PEX, among the previous few years, to identify the price cycles of most listed companies. The price cycle is the expected price range any stock can reach and form during its movement, to set the bottom and peak of its levels. In the local market, forming strong bottoms and support levels for some stocks- especially the heavy weighted- was noticed during the previous few weeks. Some has started to rebound in a correction since the start of June, especially after achieving the equivalent prices following the dividends distribution, and the receding in selling offers and the domination of purchasing powers due to building new investment positions. Despite that the liquidity indicators are important for guiding the price cycles, but the liquidity levels in the PEX are still scarce and blurry to the observer.
During the week, Al-Quds Index grew by 0.54%; supported by increases in several stocks with different effecting weights. Regarding the trading value, it was distributed between the leading stocks with variation also. The stock of Bank of Palestine BOP- the largest bank by market capitalization- topped the PEX by 37.91%, to increase by 0.80% and close at the level of $2.52. The transactions of Palestine Telecommunications Company PALTEL- the largest company by market capitalization- constituted 20.55% from PEX total trading value. In total, the stock dropped by 0.98% closing at the level of JD5.05.
The stock of Palestine Development and Investment Company PADICO- the largest investment company by market capitalization- followed when its transactions constituted 16.35% from PEX total trading value during the week. PADICO increased by 1.82%, to close at the level of $1.12 due to the accumulation of purchasing bids in the price depth, in addition to the market price orders. While the increase in the stock of the Arab Palestinian Investment Company APIC positively affected the increase in Al-Quds Index when achieving gains of 3.33% and closing at the level of $1.24 through transactions that constituted 15.16% from PEX total trading value of the week.
Despite the slight price increases, the PEX is still in a phase that is characterized with general incentives inactivity due to the unavailability of any developments in the political and economic aspects. Two new routinely anticipations are witnessed meanwhile, which are the slow transactions of the holy month of Ramadan on one side, and the expectancy of semi-annual listed companies disclosures on another side. With the anticipation types sequence, the type of liquidity able to compensate the shortage in the PEX is what occupies the mind of investors always.