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Scarce liquidity in the PEX and 3G mobile networks in the West Bank by the end of January

2018-01-18

Sahem Weekly Trading Report (14-18)-01-2018                                                                        

Palestine Stock Exchange PEX continued to sequentially gain since the beginning of the current year, to end the third week with gains of 0.82% and close at the level of 582.85 points after breaking through the 580 points level in this week. Whereby, the liquidity levels are still scarce and price movements are still relatively quiet in the market. However with this routine period, the listed companies’ boards of directors sequence to announce holding their meetings to discuss 2017’s financial results in order to disclose their annual profits, however, the preliminary annual financial data disclosure anticipation firstly remains on the investors agendas, in expectation to the yields that may be achieved in form of dividends to compensate any capital losses.

Regarding this week’s trading, the stock of Palestine Telecommunications Company PALTEL – the largest company by market capitalization and the highest weighted stock in Al-Quds Index- topped the PEX this week when its transactions  recorded $1.64 million, to close at the level of JD4.73; up by 2.83% than its previous weekly closing level after trading in a relatively wide range. On the other hand, the stock of the largest investment company by market capitalization – Palestine Development and Investment Company PADICO - stabilized at the level of $1.45 without any change than its previous weekly closing level after transactions that reached $0.19 million. It is worth mentioning that the board of directors BOD of the company will be holding a meeting on 12/02/2018, whereby, will discuss the financial statements FY2017 and the budget for 2018. Moreover, in the banking and financial services sector, the stock of the largest bank by market capitalization – Bank of Palestine BOP – decreased by 0.38% than its previous weekly closing level, to record $2.61 after transactions worth $0.25 million. Also, the stock of Palestine Investment Bank PIBC closed at the level of $1.35; down by 5.59% than its previous weekly closing level after transactions worth $0.42 million. However regarding the trading activity, the stock of the Vegetable Oil Industries Company VOIC increased significantly by 5.00% than its previous weekly closing level, to close at the level JD13.66 after transactions that did not exceed $5 thousands.  

Regarding the significant news this week, a Palestinian administrator noted that the two cellular providers Jawwal – owned by Palestine Telecommunication Company “PALTEL Group”- and Wataniya Palestine Mobile Telecommunications WATANIYA will launch 3G mobile networks for customers in the West Bank by the end of January 2018, where this service will not extend into Gaza Strip at this stage, noting that Wataniya Mobile and Jawwal presently offer only 2G services in Gaza. Moreover, it is worth mentioning that in 2015, Israel and the Palestinian Authority signed an agreement to allow 3G networks to operate in the West Bank, but the implementation was delayed by Israel.