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Al-Quds Index in the red zone in the second week of Ramadan

2017-06-08

Sahem Weekly Trading Report (04-08)-06-2017

Palestine Stock Exchange PEX is still in a phase that is characterized with general incentives inactivity due to the unavailability of any developments in the political or economic aspects. While the PEX currently witnesses two new routinely anticipations, which are the expectancy of semi-annual listed companies’ financial data disclosures on one side, and the slow transactions of the holy month of Ramadan on another side. However, in parallel to the lack of substantial news, the state of lack of liquidity that has dominated the trading process in the PEX for a while continues.  Nevertheless, it is worth mentioning that the institutional transactions raise the trading value from time to time, while the ordinary trading value barely records acceptable levels. With the varied declines in the leading stocks’ prices below their equivalent prices following the dividends distribution approval and the attempts of others to close with slight to medium increases, Al-Quds Index closed, in this week, in the red zone with a decline of 0.08%, to stand at 529.72 points.

Regarding this week’s trading, executing two transactions on the shares of Bank of Palestine BOP- the largest bank by market capitalization- raised the PEX’s trading value, to top it in this week by 46.24%. Whereby, the two executed transactions constituted for 13.95% from PEX total trading volume, while the stock declined by 0.41% than the previous week’s closing after trading in a relatively narrow range and closed at the level of $2.44. Regarding the stock of the largest company by market capitalization- Palestine Telecommunications PALTEL-, it closed at the level of JD4.68; down by 0.43% than its previous weekly closing level after transactions that constituted 7.15% from PEX total trading value. On the other hand, both stocks haven’t witnessed any rebounding in a correction yet, especially with not achieving their equivalent prices after the distribution.

However, regarding the stock of the largest investment company by market capitalization- Palestine Development and Investment Company PADICO- , it traded in a relatively narrow range, to stabilize at the level of $1.30, without any change than its previous weekly closing level. This followed transactions that contributed for 19.03% from PEX total trading value.  Moreover, the leading stock of the Arab Palestinian Investment Company APIC stabilized at the level of $1.70, without any change than its previous closing level and after transactions that constituted 11.13% from PEX total trading value.  On the other hand, the stock of Union Construction and Investment Company UCI witnessed active trading in this week, to record fiery increase of 21.74% than its previous closing level, and trade at $0.56 after transactions that constituted 3.17% from PEX total trading value. It is worth mentioning that UCI has approved distributing 5.50% cash dividends for the year 2016, to record dividends yield of 9.82% based on the current market price.