send to a friend by email

Acceleration in the quarterly disclosures’ pace and dividends distribution momentum

2017-04-30

Sahem Weekly Trading Report (23-26)-04-2017

Al-Quds Index continued –in this week with three trading sessions- its coherent performance that is leaning to slightly rise or decline, amid relatively medium liquidity controlled by one of the leading stocks every time. Whereby, the index closed at the level of 522.98 points; down by 0.09% than its previous weekly closing. On the other hand, the stock of the largest investment company by market capitalization- Palestine Development and Investment PADICO- topped Palestine Stock Exchange in terms of trading value by 69% for the second week in row, after executing a transaction of 4.30 million shares. Whereas, the leading companies that are holding their general assembly GA meetings exchange roles in topping the PEX’s trading value when their stocks enter the routine period of trading between the pre-entitlement and ex-dividends. 

Regarding the leading companies, the general assembly GA of the Arab Palestinian Investment Company APIC approved, in its meeting on 23/04/2017, distributing 6.06% stocks dividends, to raise the paid-up capital to $70 million. In addition, it also approved distributing 6.00% cash dividends for the year 2016, to record dividends yield of 3.23% based on the price on the entitlement date and 48.00% payout ratio. However, APIC’s price declined but traded above its equivalent price, to record weekly loss of 7.49%. On the other hand, APIC disclosed its financial results for Q1 2017, noting posting net income attributable to the shareholders of the parent company of $2.09 million in Q1 2017; down by 2.93% than the corresponding period of 2016. Moreover, non-controlling interests increased by 68.95% compared to the corresponding period of 2016. Based on the disclosure, APIC records BV of $1.33 and P/BV of 1.30x. On another hand, Palestine Telecommunication PALTEL- the largest company by market capitalization- disclosed posting net income of JD18.03 million in Q1 2017; down by 19.35% than the correspond period of 2016. This followed an increase in the companies’ operating and administrative expenses and income tax expenses. Accordingly, PALTEL records BV of JD4.38 and P/BV of 1.07x.

According to the companies that announced their strategies regarding distributing dividends for the year 2016 and which held their meetings on 27/04/2017, the GA of the Vegetable Oil Industries Company VOIC approved distributing 60% cash dividends, to record dividends yield of 6.00% based on the price on the entitlement date, and 42.77% payout ratio. In addition, the GA of Nablus Surgical Center NSC approved distributing 10% cash dividends, to record dividends yield of 7.69% based on the price on the entitlement date, and 57.14% payout ratio. Moreover, the GA of the National Carton Industry NCI approved distributing 6% cash dividends, to record dividends yield of 5.26% based on the price on the entitlement date, and 89.55% payout ratio. On another hand, the GA of Jerusalem Pharmaceutical Company JPH approved distributing 10% cash dividends, to record dividends yield of 5.49% based on the price on the entitlement date, and 56.18% payout ratio.

Regarding the quarterly financial disclosures in this week, the financial data of Palestine Electric Company PEC showed recording a decline of 18.71% in its net income for Q1 2017, when recorded $3.61 million. This followed an increase in the company’s operating and finance expenses. Furthermore, the Arab Islamic Bank AIB disclosed reporting net income of $2.25 million in the first three months of the year 2017; up by 45.33% than the corresponding period of 2016, following a growth of 32.28% in net interests from financing and investment. On another hand, Wataniya Palestine Mobile Telecommunications WATANIYA noted realizing net loss of $1.13 million in Q1 2017, compared to net income of $0.25 million in the corresponding period of 2016. This followed an increase in the company’s expenses versus a decline in direct revenues and interest revenues. It is good to note that WATANIYA attained lately the approval from the Israeli occupation to enter Gaza Strip after being banned from providing its services in it since the company’s establishment.