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Al-Quds Index increases amid the start of the listed companies’ disclosures for the Y2018

2019-02-07

Sahem Weekly Trading Report (03-07)-02-2019

With the approaching end of the legal period granted to the listed companies to disclose their preliminary annual financial data, the investors’ anticipation increases during the week. Moreover, Al-Quds Index increased slightly this week by 0.88% than its previous weekly closing levels, to record 535.77 points. In another context, the number of companies that disclosed their operating and financial results did not exceed two companies until now although only one week left of the legal granted period by Palestine Stock Market PEX to the listed companies to disclose their operating and financial data for the Y2018, which is 45 days since the beginning of the current year. And therefore the next week is expected to witness a momentum of disclosures. On the other hand and regarding a press release by the CEO of the PEX, he pointed out that the profitability percentages reached by the PEX during 2018 were good in comparison to the prevailing economic conditions. He also noted that the current year 2019 will witness listing of new companies on the PEX, where at least three companies will be listed, including Al Safa Bank, and Tamkeen Palestinian Insurance.

Regarding the PEX’s indicators and the start of the listed companies’ disclosures, The Arab Company for Paints Products APC was the first to announce its financial results for the year 2018, noting posting net income of JD0.50 million for the year 2018 compared to net income of JD1.20 million achieved by the company during the year 2017; down by 58.29% compared to the year 2017. This mainly followed a decrease in the company’s net sales by 9.09% and an increase in the general and administrative expenses and marketing expenses by 17.21% and 7.10% respectively.  However, based on the disclosed figures, APC records book value BV of JD2.74 and P/BV of 2.37x. Moreover, it is worth mentioning that the board of directors BOD of the company will be holding a meeting on 09/02/2019. In the services sector, Wataniya Palestine Mobile Telecommunications OOREDOO was the first to announce its financial and operating data for 2018, noting posting net profit of $0.10 million at the end of 2018 compared to a net loss of $6.64 million in 2017. Where the year 2018 is the first year the company achieves profit since the establishment of the company in 2009 to achieve profits in. This mainly followed an increase in the company’s revenues and interests revenues by 17.25% and 230.03% respectively. Based on the figures disclosed, OOREDOO records BV of $0.33 and a P/BV of 2.45x. It is worth mentioning that the BOD of the company held a meeting on 21/01/2019. Whereby, the date for the general assembly meeting was scheduled in March 2019. 

Regarding the Blue-Chips trading this week, the stock of the largest company by market capitalization – Palestine Telecommunication company PALTEL – closed at the level of JD4.45; up by 0.68% than its previous weekly closing level. when its transactions contributed for 10.72% from PEX’s total trading value. However, regarding the largest investment company by market capitalization – Palestine Development and Investment Company PADICO -, it closed at the level of $1.36; up by 2.25% than its previous weekly closing level,  when its transactions contributed for 14.66% from PEX’s total trading value. Moreover, the stock of the largest bank by market capitalization – Bank of Palestine BOP -, it stabilized at the level of $2.20, without any change than its previous weekly closing level. when its transactions contributed for 31.25% from PEX’s total trading value.