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Al-Quds Index declines slightly and the blue-chips that approved dividends under their equivalent prices

2019-04-04

 Sahem Weekly Trading Report (31-03)-(04-04)-2019

Al-Quds Index witnessed a slight decline of 0.01% in this week- with four trading sessions- than its previous weekly closing level, to record 538.38 points. This followed the dividends’ entitlement of the two largest companies in terms of market capitalization in Palestine Stock Exchange PEX and the two heaviest weighted stocks in Al-Quds Index – Palestine Telecommunications PALTEL and Bank of Palestine BOP-. As the period of holding the general assembly meetings of the listed companies is still at its most, the PEX has entered the legal period of disclosing the first quarter of 2019 financial data with the start of April. This leads to an overlapping in the anticipation factors among investors and prevailing prices solidity in this period given the fact of conservatism domination more than changing the investment positions. However, despite attempts to catch investment opportunities by investors and enlarge the yield during the dividends’ distribution period, the observer monitors the quiet liquidity pace in general and lack of speculations.

Regarding the dividends’ distribution proposals for the year 2018, 23 listed companies raised their recommendations to distribute dividends for their shareholders for the year 2018 till this moment. 8 companies of them proposed distributing both cash and stocks dividends, 14 companies of them proposed distributing only cash dividends, while only one company proposed distributing stocks dividends. Whereby, 7 companies approved their distribution till this moment; two companies in the banking and financial services sector, two companies in the industry sector, one company in the insurance sector, one company in the investment sector and one company in the services sector. It is good to note that two companies approved both cash and stocks dividends distribution, while 5 companies approved cash dividends distribution only. Where in this week, the board of directors of the National Aluminum and Profile Company NAPCO proposed to the general assembly, which will be holding a meeting on 18/04/2019, raising the paid-up capital from JD6.90 million to JD7.31 million through distributing 6% stocks dividends for its shareholders. On another hand, the coming weeks will witness a momentum in holding the general assembly meetings in order to approve the recommended dividends distribution to the shareholders for the year 2018.

Regarding the blue-chips’ trading in this week, the stock of the largest investment company in the PEX by market capitalization – Palestine Development and Investment Company PADICO- increased by 2.19% than its previous weekly closing level, to record $1.40 through transactions worth $1.32 million; to top the PEX by 27.24%. On another hand and due to dividends entitlements, the stock of the largest company in the PEX – Palestine Telecommunications PALTEL- declined by 0.74% than its previous weekly closing level; down by 0.50% than its equivalent price after the distribution approval, to close at the level of JD4.00 after transactions worth $0.73 million. Moreover, the stock of the largest bank by market capitalization- Bank of Palestine BOP- declined by 9.02% than its previous weekly closing level; down by 2.63% than its equivalent price after the dividends’ distribution approval, to close at $2.22. This followed transactions worth $0.86 million.