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2019-02-14
Sahem Weekly Trading Report (10-14)-02-2019
During a week of momentum in the institutional transactions, activation in the price movements of Al-Quds Index appeared due to the leading companies’ stocks and other stocks’ trading momentum, to close at the level of 541.01 points; up by 0.98% than its previous weekly closing level. On the other hand, this week also witnessed a momentum in the significant news. Where the listed companies’ announcements about their FY2018 financial data disclosure accelerated coinciding with the approaching end of the legal granted disclosures’ period. Also, besides the disclosures, some companies proposed dividends distributions to their shareholders; either cash or stocks. Whereby, the anticipation dominated the trading nature in the few previous weeks, while, the coming period will witness building investment positions for some stocks on one hand, and price speculations coinciding with the stocks’ routine price cycles in parallel to the dividends’ distribution season on another hand.
Regarding the significant news of this week, PADICO Holding Group has lately sold part of its stake in Jericho Gate Real Estate Investment Company, equivalent to 25% of Jericho Gate’s paid-up capital (JD26 million), to raise PALTEL’s stake to 75% in Jericho Gate paid-up capital. This came within the group’s plan to reallocate its investments and current assets to strengthen its profits, in addition to diversify its income sources in the short and medium terms, which helps in executing its investment plan in new projects of promising economic sectors in line with PADICO’s objectives to contribute in building and strengthening the Palestinian economy through continuing efforts to create long term developmental projects.
However, and regarding the listed companies’ dividends distribution proposals to the shareholders for the year 2018, the board of directors BOD of Global United Insurance Company GUI proposed to the ordinary general assembly GA, which will be holding a meeting on 10/04/2019, distributing 10% cash dividends, to record dividends yield of 4.42% based on the current market price. It also proposed to the extraordinary general assembly, which will be holding a meeting on the same date, distributing 10% stocks dividends for the year 2018, to raise the paid-up capital from $9.60 million to $10.56 million. Moreover, the BOD of the Arab Company for Paints Products APC recommended to the GA, which will be holding a meeting on 04/03/2019, distributing 30% cash dividends, to record dividends yield of 4.62% based on the current market price. Also, the BOD of Palestine Telecommunications Company PALTEL raised a recommendation to the GA, which will be holding a meeting on 26/03/2019, to distribute 40% cash dividends, to record dividends yield of 8.91% based on the current market price. On the other hand, the BOD of the National Insurance Company NIC proposed to the GA, which will be holding a meeting on 28/03/2019, distributing 20% cash dividends, to record dividends yield of 5.00% based on the current market price.
In terms of the listed companies’ preliminary financial data disclosures for the end of 2018, the Arab Palestinian Investment Company APIC noted posting net income attributable to the shareholders of the parent company of $13.09 million at the end of 2018; up by 9.69% than the corresponding period of 2017. This followed an increase in the company’s sales and the full acquisition of APIC subsidiary Medical Supplies and Services (MSS), in addition to a number of capital expansions that included increasing APIC's shareholding ownership percentage in its subsidiary Siniora Food Industries, and MadfooatCom. Based on the disclosed figures, APIC records book value BV of $1.41 and P/BV of 1.72x. On the other hand, the Vegetable Oil Industries Company VOIC disclosed posting net income of JD6.54 million at the end of 2018, compared to net income of JD6.84 at the end of 2017. This followed realizing losses from currency exchange rates compared to achieving gains in the year 2017. Based on the disclosed figures, VOIC records BV of JD8.55 and P/BV of 1.70x. Regarding the disclosures of the blue-chips, Palestine Telecommunications Company PALTEL- the largest company in the PEX by market capitalization- disclosed recording net income of JD67.09 million at the end of 2018; down by 4.87% than the year 2017, following a decrease in the company’s revenues. Based on the disclosed figures, PALTEL records BV of JD3.67 and P/BV of 1.22x.
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