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Relative quietness in the PEX with the start of the year 2019

2019-01-03

Sahem Weekly Trading Report (30-12-2018)-(03-01-2019)

The performance of Palestine Stock Exchange PEX in the last trading session of the year 2018 did not differ from other trading sessions, in which was characterized with slow price movements and lack of liquidity. While 2018 closing was the lowest since 2015, to close at the level of 529.35 points at the end of the year 2018; down by 7.87% compared to its 2017 closing. On the other hand, Al-Quds Index witnessed a slight increase with the start of the new year sessions of 2019. Whereby, Al-Quds index ended the first week of the new year -with its four trading sessions- at the level of 530.56 points; up by 0.45% than its previous weekly session. In another context, the anticipation increases among all investors’ segments towards the disclosed annual financial statements of the listed companies, to predict the capital gains from one hand and the financial returns from the distributed dividends from another hand.

Within its yearly modification that coincides with the end of the year 2018, the PEX announced the new composition of the Al-Quds Index for the year 2019 after reviewing the companies it consists of, to include 15 companies out of 48 listed companies that represent 75.90% of the total PEX market capitalization. Where the number of companies included in the Index did not change, while, the stock of the Arab Islamic Bank AIB in the banking and financial services sector was replaced with Palestine Investment Bank PIBC in the new Index composition and the stock of the Golden Wheat Mills Company GMC in the industry sector was replaced with Birzeit Pharmaceuticals BPC in the new Index composition.

Regarding the PEX’s sectors, the banking and financial services sector recorded a compound annual growth rate CAGR of 5.70% since the year 2007, to close at the level of 150.03 points at the end of 2018; down by 8.54% than the year 2017. Moreover, the industry sector recorded a CAGR of 3.71% since 2007, to close with a slight increase of 0.49% in the year 2018 than 2017 after reporting 98.64 points. Also, the closing of the insurance sector witnessed a significant increase of 27.96% at the end of 2018 compared to 2017 following reporting 90.76 points, while it recorded a CAGR of 1.45% since the year 2007. On the other hand, the investment sector recorded a CAGR of -2.74% since 2007, to close the year 2018 at the level of 28.18; down by 7.61% than the year 2017. Furthermore, the services sector recorded a CAGR of -1.67% since the year 2007, to stand at 40.10 points at the end of 2018; down by 7.90% compared to 2017.