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Sahem Weekly Trading Report (09-13)-10-2016
In a week with heavy transactions and slow price movements, the anticipation in the financial disclosures’ month dominated the investment appetite and investors’ behavior. Where, stalling in the place outweighed pursuing any price trend. Despite the similar general trend in the blue-chips’ stocks, but the momentum factors vary among them following the varied growth factors that has been drawn by each alone, and which was extracted by the investor since the beginning of the year, in parallel to the quarterly financial data disclosures. The 9M financial data disclosures are one of the important things that boost the growth expected factors in the market.
As the first financial data disclosure, the Vegetables Oil Industries Company VOIC noted posting net income of JD4.58 million in 9M 2016; up by 6.47% in 9M 2016, compared to 9M 2015. This increase followed the growth in the operating income by 49.46% and the company’s stake of its subsidiaries profits from the National Beverage Company Coca-Cola by 8.85%, which in return constitutes around 98% from VOIC’s total profits. Accordingly, VOIC records EPS of JD1.14 and net margin of 107.53% for 9M 2016. Moreover, VOIC records BV of JD6.33 as of the end of the period and P/BV of 1.53x and PE ratio of 6.33x.
Regarding the most important news of the week, the board of directors of the Arab Palestinian Shopping Centers BRAVO- a subsidiary of the Arab Palestinian Investment Company APIC- approved establishing a private shareholding company and transferring the supermarkets’ operations and the net assets worth $1.8 million to it, excluding the buildings and real estate as an in kind contribution in the company’s capital. Accordingly, BRAVO will become a real estate specialized company. It is worth mentioning that BRAVO has realized net loss of JD0.54 million in 2015 and net loss of JD0.35 million in 9M 2016. While the company records in its accounts as for the 30th of June 2016 around JD15.62 million properties, plants and equipments; whereby lands record 36.76% and the buildings record 35.79%. Regarding other news, Dar Al-shifa’a for the Manufacturing of Pharmaceuticals PHARMACARE and Beit Jala Pharmaceutical Company BJP signed a memorandum of understanding with a group of Chilean businessmen of Palestinian descent, to begin the procedures of registering and licensing Palestinian medicines in Chile, in preparation to open export channels.