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Sahem Weekly Trading Report (12-16)-02-2017
Al-Quds Index ended this week in the red zone, to close at the level of 535.68 points; down by 0.14% than its previous closing level. On another hand, Palestine Stock Exchange PEX witnessed, during the week, a momentum in the significant news of the Palestinian companies coinciding with the end of the legal period granted to these companies to disclose their preliminary annual financial data for the year 2016. However, the anticipations dominated the trading nature in the few previous weeks in waiting for disclosing the companies’ financial data and their dividends distributions’ trend accordingly, while, the coming period will witness a variation in the investors’ behavior. Whereby, building investment positions for some stocks on one hand, and the price speculations that constitute an essential part within the stocks’ routine price cycles, in parallel to the dividends’ distribution season are what may distinguish the coming weeks.
The disclosed results by the blue-chips were one of the most significant and noticed issues from all the Palestinian securities’ parties this week. Whereby, Bank of Palestine- the largest bank by market capitalization- announced posting net income attributable to the shareholders of the parent company of $50.99 million at the end of 2016; up by 18.32% than the year 2015, coinciding with an increase of 28.95% in net interests and commissions. Accordingly, BOP records book value BV of $1.88 and P/BV of 1.46x. Also, BOP recorded earnings per share EPS of $0.27 and PE ratio of 10.19x. On the other hand, the leading company- Arab Palestinian Investment Company APIC- disclosed recording net income attributable to the shareholders of the parent company of $8.27 million in the year 2016; up by 15.71% than the year 2015, and supported by a growth of 16.38% in the company’s total revenues, to record EPS of $0.13. Accordingly, APIC records BV of $1.32, P/BV of 1.43x and PE ratio of 14.54x. However, regarding the largest investment company by market capitalization- Palestine Development and Investment Company PADICO-, it disclosed recording net income attributable to the shareholders of the parent company of $19.01 million at the end of 2016; down by 14.76% than the year 2015, affected by the decrease in the company’s stake from its associates’ profits and the performance of its subsidiaries, to record EPS of $0.08. Accordingly, PADICO records BV of $1.75, P/BV of 0.61X and PE ratio of 13.38x.
Regarding the other significant news, the PEX announced listing and starting trading on the shares of Sanad Construction Resources Company under the symbol SANAD beginning from the trading session of Monday 20/02/2017, to bring the number of listed companies to 49 companies. SANAD will be listed in the investment sector in the secondary market with authorized and paid-up capital of $66.00 million. On the other hand and regarding the dividends distribution announcements, the board of directors BOD of Birzeit Pharmaceutical Company BPC proposed to the general assembly GA, which will be holding a meeting on 17/04/2017, distributing 20% cash dividends for the year 2016, to record dividends yield of 4.04%. Moreover, the BOD of the Vegetable Oil Industries Company VOIC recommended to the GA that will be holding a meeting in the second half of April 2017, distributing 60% cash dividends for the year 2016, to record dividends yield of 5.82%. Also, the BOD of the Arab Company for Paint Products APC proposed to the GA that will be holding a meeting on 27/02/2017, distributing 40% cash dividends for the year 2016, to record dividends yield of 7.72%. Also, the BOD of the Arab Islamic Bank AIB proposed to the GA, which will be holding a meeting in the second half of March 2017, distributing 12% cash dividends for the year 2016, to record dividends yield of 6.74%. On the other hand, the BOD of Palestine Islamic Bank ISBK proposed raising the bank’s paid-up capital by $6.50 million through distributing 5.60% stocks dividends ($3.50 million) and offering $3.00 million for secondary subscription, to raise the paid-up capital to $69.00 million. The BOD also proposed to the GA, which will be holding ordinary and extraordinary meetings on 29/03/2017, distributing 8.50% cash dividends, to record dividends yield of 4.01%.