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Lack of liquidity with the increase in the year-end disclosures’ anticipation

2019-01-10

Sahem Weekly Trading Report (06-10)-01-2019

In the second week of the year 2019, the trading value in Palestine Stock Exchange PEX was characterized with slowness in price movements and declining in the liquidity to low levels in the four trading sessions of the week amid calmness among the investors with their different categories. Whereby, Al-Quds Index closed at the level of 529.71 points; down by 0.16% than its previous weekly closing, through weak trading that didn’t exceed $3 million. On the other hand, the anticipation- with its different types and motives- dominates a large space in the PEX investor’s behaviors despite the varied optimism levels among the securities’ sector parties that stem from important and substantial factors from the Palestinian investment environment and the listed companies, in which follows the unique entity of the PEX that imposes itself as purely political format.

During this week, one listed stock’s performance didn’t exceed any other within a receding in the substantial news on the companies that may increase the intrinsic value of their stocks. And the investors’ buying/selling strategies were also scarce. Whereby in the week, no announcements accelerated except for holding the general assembly meetings in order to review the preliminary annual financial data for 2018. According to the applied law, the PEX grants the listed companies 45 days since the end of the last year to disclose their preliminary financial data. In this context, the anticipation increases more for investors in waiting for the final figures that will be disclosed by the companies and especially the blue-chips in order to predict the investment yield in the form of cash or stocks dividends, which depends mainly on the company’s remaining strategies during the year to maintain specific operation revenues levels versus completely hedging any surrounding changes.

Regarding the blue-chips price dynamics, the current price of the largest company by market capitalization and the highest weighted stock in Al-Quds Index - Palestine Telecommunications Company Buy Cigarettes in USA- records premium to 52-weeks low of 2.38%, and discount to 52-weeks high of -11.13%. Moreover, the current price of Palestine Development and Investment Company PADICO - the largest investment company by market capitalization- records, premium to 52-weeks low of 5.79%, and discount to 52-weeks high of -16.34%. However, regarding the stock of the largest bank by market capitalization- Bank of Palestine BOP-, it currently records premium to 52-weeks low of 2.22%, and discount to 52-weeks high of -13.86%. On the other hand, the leading stock of the Arab Palestinian Investment Company APIC, currently reports premium to 52-weeks low of 19.60% and discount to 52-weeks high of -0.42%.