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Weekly Trading Report ]07-11/08 [2016
The anticipation for the semi-annual financial data of 2016 continues to be the most dominating factor on Palestine Stock Exchange PEX. Despite extending the legal period for the disclosures till 25/08/2016 in order to grant the listed companies a sufficient time to compensate the holiday days during that period, but the general performance in the market, especially for the leading companies is still conservative. Whereby, these stocks maintain narrow price ranges that are more likely to be positive or negative based on the general trading flavor. While, it is undoubtedly to notice the unique performance of some companies- in terms of price or trading value-, which each witnessed an individual performance that is built on factors that some are related to the positive expectation of the coming financial data.
According to this week’s disclosures, the National Insurance Company NIC announced posting net income attributable to the shareholders of the parent company of $2.35 million for H1 2016; up by 113.61% than H1 2015, to record book value BV of $2.19 for the end of June and P/BV of 1.46x. Moreover, the Arab Company for Paints Company APC noted posting net income of JD0.70 in H2 2016; up by 50.34% than H1 2015. This follows an enhancement in operating profits, to record BV of JD2.22 and P/BV of 2.22x. Furthermore, Al-Shark Electrode Company ELECTRODE noted reporting pretax income of JD0.09 million in H1 2016; up by 31.17% than H1 2015. This followed a noticeable increase in operating income, to record BV of JD4.10 and P/BV of 0.49x.
Regarding other news and based on the decision of the extraordinary general assembly of Palestine Development and Investment Company PADICO, bonds worth $120 million were issued, which was covered fully by 12 banks and financial institution. It is worth mentioning that the bonds proceeds will be used to pay the current bonds and short terms loans, while allocating the excess for investment projects. According to the company’s management, issuing these bonds as the best borrowing tool, suits the company’s investments which are medium to long term development projects that need long period until they start to achieve returns. On the side-lines of the issuance, PADICO revealed its business plan for the coming period. It revealed moving forward in expanding the development projects launched in the previous years. The most important project is Jericho Gate Project-a huge project that needs relatively large financing and long period of 10 years-, in addition to other projects such as: Nakheel Palestine for Agricultural Investment- a project that has been invested in more than $15 million till this moment and is expected to achieve break even point in 2018, and the Power Generating Project in the northern West Bank- a project worth $620 million, in which PADICO owns 20% from it-, and Rabiyet Al-Quds housing project in Al-sharafat in Jerusalem and other investment projects.