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2018-08-09
Sahem Weekly Trading Report (05-09)-08-2018
Al-Quds Index increased for the second week in row by 0.47% than its previous weekly closing level, to record 543.95 points. This followed executing a cross transaction on the stocks of the largest investment company in Palestine Stock Exchange PEX by market capitalization- Palestine Development and Investment PADICO- of 1.23 million shares during the week, to raise the price of PADICO significantly by 3.91% and close at the level of $1.33 after trading in a relatively wide range. Whereby, the PEX witnessed an increase in trading value, in which lacked momentum and was characterized with liquidity scarcity and growing stalemate for several weeks.
In regard to the slowness in the disclosures and their pace that didn’t exceed the five companies till this moment. The anticipation for the leading companies’ disclosures, in which one of them already disclosed its H1 2018 financial data till this moment, increases for a number of reasons. Whereby, creating a clearer visions for the annual yield from dividends constitutes the largest pace, especially that the price change for the heaviest weighted stocks, since the beginning of the year, is negative and will decrease the total return for the investor. Moreover, there are policies adopted by some companies that are on the radar by analysts and medium and long-term investors in order to grab new investment opportunities or monitor attempts for changing the investment positions. Among them, companies’ policies in term of hedging against external factors in their attempt to control net profits and in terms of cost control opposed to operating revenues simulation in some sectors in order to achieve good and progressing profit margins.
Regarding the blue-chips’ semi-annual financial data disclosures of 2018, the disclosure of Palestine Telecommunications Company PALTEL- the largest company in the PEX by market capitalization- was the first in this context. Whereby, the company noted posting net income of JD36.62 million in the first six months of the year 2018; up by 10.77% than the corresponding period of 2017. This followed an increase in the company’s investment profits versus a decrease in its administration and operation expenses. However and according to the disclosed figures, PALTEL records book value BV of JD3.55 in H1 2018 and P/BV of 1.23x.It also records EPS of JD0.278 and PE ratio of 7.82x.
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