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The PEX records PE of 12.17x and average P/BV of 1.06x in H1 2018

2018-09-06

Sahem Weekly Trading Report (02-06)-09-2018

In the first week of September Al-Quds Index increased by 0.92% than its previous weekly closing level, to record 541.86 points, where Palestine Stock Exchange PEX witnessed weak trading, which lacks any institutional transactions. In the other hand, the PEX witnessed a momentum of significant news this week,The general assembly of the Arab Palestinian Investment Company APIC will be holding a meeting on 19/09/2018, whereby, will discuss acquiring 50% of Medical Supplies and Services Co. MSS, to become the fully owner of the company. This will happen through a strategic deal to aquire the stake of Mr. Walid Kayyali through a private placement of 7.00 million shares of $2.15 per share. Therefore this will raise APIC'S paid-up capital from $75 million to $82 million. In another context, The general assembly GA of Dar Al-Shifa'a for the Manufacturing of Pharmaceuticals PHARMACARE approved, in its extraordinary meeting on 09/08/2018, distributing either 8% cash dividends to its shareholders as for the general assembly date or 2.20% stocks dividends. Whereby, the shareholders’ have the right to decide between cash dividends and stocks dividends and inform the company within ten days from the date of notification.On the other hand, with the disclosures’ completion of 46 companies out of 48 listed companies required to disclose their data by the end of the first half of 2018, the PEX records an average PE ratio of 12.17 and an average P/BV of 1.06x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 29.86% from total disclosed companies’ profits attributable to the parent companies. Whereby, all companies in the sector recorded profits by the end of H1 2018. According to the disclosed data, the average PE of the sector records 12.86x, and average P/BV reached 0.88x- the lowest value among all sectors,. This came despite the decrease in the sector’s profits attributable to the parent companies by 1.01%. While, Bank of Palestine BOP constitutes the lion’s share of 50.18% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 7.41% from total disclosed companies’ profits attributable to the parent companies. where 71.42% of the disclosed companies in the sector recorded an increase in their profits attributable to the parent companies. but the sector’s profit attributable to the parent companies slightly decreased by 0.53% in H1 2018. According to the disclosed data, the insurance sector records an average PE of 9.12x; the lowest value among all sectors, and records an average P/BV of 1.23x.

In the service sector, 9 out of 11 listed companies among the sector disclosed their H1 2018 financial results; where the services sector contributed by the highest percentage of 36.45% from the total disclosed companies among all sectors in the PEX. Where 78% of the disclosed companies in the sector achieved profits attributable to the parent companies in H1 2018, whereas, 22% of the disclosed companies in the sector realized net losses compared to the corresponding period of 2017, while; two companies didn’t disclose their financial results for H1 2018 within the granted period by the PEX. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 91.91% from the total sector’s profits attributable to the parent companies, in which increased in total by 11.87% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 10.61x, and average P/BV of 1.30x.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 15.88% from the total disclosed companies’ profits attributable to the parent companies, while, the investment sector’s profits attributable to the parent companies increased by 13.32% in H1 2018, to record an average PE of 15.83x.and average P/BV of 0.99x. Regarding the Industry sector, it witnessed a decrease in the sector’s profits attributable to the parent companies by 33.35% in H1 2018; constituting 10.40% from total sector’s profits attributable to the parent companies, whereby, Birzeit Pharmaceuticals BPC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 66.54% from total sector’s profits attributable to the parent companies. Accordingly, the Industry sector records an average PE of 12.21xand average P/BV of 1.22x.