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Al Quds Index declines and trading value increase on institutional transactions

2016-08-18

Weekly Trading Report ]14-18/08 [2016

The price range of Al-Quds Index widened this week, while, the index didn’t succeed to close around its previous closing level due to a decline in the price of some stocks with the heaviest weights, despite the unique positive performance of other stocks. Regarding the liquidity levels, 89.51% from total trading value were limited to 4 stocks only. The stock of Palestine Development and Investment Company PADICO topped Palestine Stock Exchange PEX after executing institutional transaction with a high volume. Back to the most dominants on the market of anticipation motives, one whole week remains to the extended legal period for the listed companies to disclose their financial data for the 30^th of June 2016. Some companies have already disclosed their data during the week, while the coming week is expected to witness disclosures’ momentum. However, the disclosed financial data of the listed companies varied between positive and negative, to help vary the trading pace on  the stock of the company that disclosed its data, to end with opposing performance sometimes and conservative sometimes on another hand.

One of the most anticipated disclosures was the disclosure of the Arab Palestinian Investment Company APIC following the fiery price performance witnessed for a while. In this week, APIC disclosed posting net income attributable to the shareholders of the parent company of $4.34 million; up by 18.09% than the corresponding period of 2015, to record earnings per share EPS of $0.66.  This increase came despite the decline in the operating income following the strategic expanding and development by the company to target new markets and improve the provided products and services. Whereby, the other revenues contributed in increasing the profits compared to the corresponding period of 2016, in which, has recorded loss provision for liquidating a subsidiary of APIC in Africa. However, the operating indicators are still under the eyes of analysts. Regarding the data, APIC records P/BV of 1.42x and PE 13.61x. On the other hand, and regarding the other disclosures, the stock of Palestine Telecommunications PALTEL declined by 4.60%, to reach JD40.80 million in H1 2016. This decrease followed a decline in gross income despite the growth of revenues, and the increase in the company’s stake from affiliates’ loss. Based on the disclosure, PALTEL records P/BV of 1.29x and PE of 8.18x.

Regarding the other disclosures, the net income of the Vegetable Oil Industries Company VOIC increased by 4.13% in H1 2016 following the increase in sales. VOIC recorded net income after tax of JD2.59 million following an increase in the operating income and the company’s stake from associates’ profits. Accordingly,  VOIC records BV of JD5.83 and P/BV of 1.67x. On the other hand, Birzeit Pharmaceuticals Company BPC recorded net income attributable to the shareholders of the parent company of $4.69 million; down by 2.29% compared to the corresponding period of 2015. This followed a decrease in gross and operating income. It is worth mentioning that the company trades on P/BV of 1.32x.