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Sahem Weekly Trading Report (09-13)-04-2017
Palestine Stock Exchange PEX’s transactions were characterized by slowness and conservatism amid growing momentum of general assemblies’ meetings and a steady flow dividends decisions in conjunction with the start of the earnings announcements of listed companies to disclose their financial statements for the first quarter of this year 2017. However, with the mid of April, the other half of the month is on the radar to start reporting first quarterly financial data disclosures, thereby, the conservative behavior of investors in the market was reinforced due to the overlapping of the elements causing the anticipation and driving the prudence prior to taking any investment or liquidation decision. Whereby, taking any decision in this period is difficult due to the expensive opportunity cost. Distributing dividends on one hand and prospects of increase in stock price due to the accumulation of operating revenues over the quarters of the year on another hand are always parallel motives prior to the investment decision.
Regarding the dividends distribution approval for 2016, the general assembly of Global United Insurance Company GUI approved, on its meeting on 10/04/2017, the board of directors’ recommendation to distribute 10% cash dividends, to record dividends yield of 5.49% based on the price on the entitlement date, and 126.58% payout ratio. Moreover, Trust International Insurance Company TRUST approved, in its general assembly meeting on 12/04/2017, distributing 15% cash dividends, to record dividends yield of 3.33% based on the price on the entitlement date, and 34.01% payout ratio.
In the context of continuing the dividends’ distribution recommendation for the year 2016, the board of directors of Nablus Surgical Center NSC raised a recommendation to the general assembly, which will be holding a meeting on 27/04/2017, to distribute 10% cash dividends, to record dividends yield of 7.46% based on the current market price. Moreover, the board of directors of Jerusalem Pharmaceutical Company JPH proposed to the general assembly, which will be holding a meeting on 27/04/2017, distributing 10% cash dividends for the shareholders, to record dividends yield of 5.68% based on the current market price. In the banking sector, the board of directors of Al-Quds Bank QUDS proposed to the general assembly, which will be holding a meeting on 08/05/2017, distributing 12% stocks dividends, to raise the paid-up capital to $68.38 million. Furthermore, the board of directors of Palestine Investment Bank PIBC recommended to the general assembly, which will be holding a meeting on 30/04/2017, distributing 2.35% stocks dividends, to raise the paid-up capital to $61 million.
On another hand, the listed companies started to disclose their Q1 2017 financial data, whereby, the PEX maximum grants the listed companies a period month from the end of the first quarter of the year to disclose their financial and operating quarterly data. In this context, the Arab Company for Paints Products APC disclosed its Q1 2017 financial data; to be the first listed company to disclose its data. Whereby, it noted posting net income of JD0.33 million in Q1 2017; up by 2.86% than the corresponding period of 2016. This increase followed a growth in the company’s net sales. Based on the disclosure, APC records book value BV of JD2.40 and P/BV of 2.16x, while, it records earnings per share EPS of JD0.22 and P/E ratio of 5.89x.