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The PEX records 5% average dividends yield

2019-05-30

 Sahem Weekly Trading Report (26-30)-05-2019

With the approaching end of May 2019 and the receding in the wave of holding the general assembly meetings for the listed companies, the dividends yield was formed at the ultimate. According to the approved dividends distribution, the total cash dividends amount reached $151.28 million for the year 2018, to record average dividends yield of 5.30%, compared to 5.98% for the year 2017; calculated by dividing the total cash dividends distributions by the market capitalization of the companies that distributed cash dividends for the year 2018. Accordingly, Palestine Stock Exchange PEX has entered a decreasing in prices phase for the companies that approved dividends to reach price balancing. While the major reason for the declining in Al-Quds Index and its closing around the current levels, is trading around the most declining stocks with the heaviest weights- the leading stocks. On the other hand, the scarce liquidity and trading rigidity in the PEX are most obvious during this period.

In this week, Al-Quds Index declined, like the previous weeks, by 0.06% than its previous weekly closing levels after trading in a relatively narrow range, to record 525.43 points. While the Index is expected to report increases in the coming few weeks, which coincides with the start of June and the end of the first half of the year 2019. However, the PEX will witness new anticipations towards the semi-annual financial data disclosures of this year, especially with the distinguished data disclosures for Q1 2019-especially for the blue-chips-, leading the investor to at least predict a stability in the annual yield.

On the other hand, and regarding a statistics report by Palestine Central Bureau of Statistics PCBS, exports increased in March 2019 by 12% compared to February 2019. While it decreased by 1% compared to March 2018 and reached $93.8 million. On the other hand, imports decreased in March 2019 by 1% compared to February 2019. It also decreased by 2% compared to March 2018 and reached $456.7 million. While, the trade balance which represents the difference between exports and imports showed a decrease in trade deficit by 4% in March 2019 compared to February 2019, it also decreased by 2% compared to March 2018 and reached $362.9 million.