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2017-05-04
Sahem Weekly Trading Report (30-04)-(04-05)-2017
Amid the quarterly financial disclosures receding after the end of the legal period granted by Palestine Stock Exchange PEX to the listed companies to disclose their financial data for Q1 2017, in addition to the slowing in the pace of holding the general assembly GA meetings of the companies, Al-Quds Index increased in this week- with four trading sessions- supported by an increase in the prices of some blue-chips versus a slight decline in others, to close at the level of 525.85 points; up by 0.55% than the previous week. On the other hand, the PEX still witnesses relatively medium liquidity levels controlled by the leading stock of Palestine Development and Investment Company PADICO, which witnessed active trading- for the third week in row- prior to holding the GA meeting in the coming two weeks. However, the attention is dragged on the coming period in waiting for any positive point, which in turn, would lead to a beginning of transformation or any reversed direction, supported by the institutional and foreign liquidity to stimulate in individual or local speculative rotation.
Regarding the dividends’ entitlements for the year 2016, the GA of Palestine Investment Bank PIBC approved, in its meeting on 30/04/2017, distributing 2.35% stock dividends, to raise the paid up capital to $61.00 million. In addition, the GA of Beit Jala Pharmaceuticals BJP approved, in its meeting on 03/05/2017, distributing 15% cash dividends, to record 6.22% dividends yield based on the price on the entitlement date and 54.55% payout ratio. Also, the GA of Palestine Industrial Investment Company PIIC – PADICO Holding’s Investment arm in the industry and agriculture sectors- approved the board of directors BOD’s recommendation to distribute 6% cash dividends, to record 2.67% dividends yield based on the price on the entitlement date and 27.91%payout ratio. This came at the GA meeting which was held on 04/05/2017. At the same date, the GA of Palestine Poultry Company AZIZA- a subsidiary of Palestine Industrial Investment Company PIIC- approved, distributing 18% cash dividends, to record 6.77% dividends yield based on the price on the entitlement date and 75.00% payout ratio. On the other hand, the GA of Union Construction and Investment Company UCI approved, in its meeting on 02/05/2017, the BOD’s recommendation in its meeting prior to the GA meeting, distributing 5.50% cash dividends, to record 12.50% dividends yield based on the price on the entitlement date and 183.33% payout ratio.
Regarding the quarterly financial data disclosures of the blue-chips, Palestine Development and Investment Company PADICO- the largest investment company by market capitalization- disclosed posting net income attributable to the shareholders of the parent company of $4.23 million in the first three months of the year 2017; down by 36.20% compared to the corresponding period of 2016. This followed a decrease in PADICO’s stake from its associates’ profits and a decrease in PADICO’s operating revenues which usually come from its subsidiaries. Based on the disclosed figures, PADICO records book value BV of $1.78 and P/BV of 0.68x. it is worth mentioning that the company will be holding its GA meeting on 15/05/2017, to discuss distributing 5% cash dividends for the year 2016, to record 4.10% dividends yield based on the current market price. In the same context, Bank of Palestine BOP – the largest bank by market capitalization- disclosed recording net income of $12.35 million in the first three months of the year 2017; up by 18.74% compared to the corresponding period of 2016. This followed a noticeable increase of 42.06% in net interests, commission, financing and investment income. Based on the disclosed figures, BOP records BV of $1.94 and P/BV of 1.27X.
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