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2019-08-08
Sahem Weekly Trading Report (04-08)-08-2019
In the first week of August, the trading in Palestine Stock Exchange PEX is still characterized with liquidity scarcity, rigidity in price movements and momentum lacking amid the absence of any institutional transactions on the leading stocks and others. On the other hand, Al-Quds Index increased by 0.03% than its previous weekly closing level, to record 531.17 points. With the approaching end of the legal period granted by the PEX to the listed companies to disclose their semi-annual financial data for the year 2019 with mid-August, the trading pace witnessed slowness, whereby, the number of companies that disclosed their data didn’t exceed ten till this moment. However, the anticipation for the leading companies’ disclosures increases for a number of reasons. Whereby, creating a clearer vision for the annual yield from dividends constitutes the largest pace, especially that the price change for the heaviest weighted stocks, since the beginning of the year, is negative and will decrease the total return for the investor. Moreover, there are policies adopted by some companies that are on the radar by analysts and medium and long-term investors in order to grab new investment opportunities or monitor attempts for changing the investment positions. Among them, companies’ policies in term of hedging against external factors in their attempt to control net profits and in terms of cost control opposed to operating revenues simulation in some sectors in order to achieve good and progressing profit margins.
Regarding the semi-annual financial data disclosures for the listed companies for the year 2019, the Arab Company for Paints Products APC disclosed posting net income of JD0.42 million in the first six months of the year 2019; up by 43.10% than the corresponding period of the year 2018. This mainly followed a decline in the company’s expenses. Regarding the disclosed figures, APC records book value BV of JD2.76, and P/BV of 2.17x. In the insurance sector, Global United Insurance Company GUI disclosed reporting net income attributable to the shareholders of the parent company of $1.01 in H1 2019, compared to $1.00 million in the corresponding period of 2018. This mainly followed a decline in the company’s expenses as well. Regarding the disclosed figures, GUI records BV of $1.66, and P/BV of 1.54x. On another hand, Al-Shark Electrode Company ELECTRODE disclosed posting net income of JD0.02 million in H1 2019, compared to JD0.03 million in H1 2018. This mainly followed a decline in the company’s sales. Based on the disclosed figures, ELECTRODE posts BV of JD3.86 and P/BV of 0.52x. In another context, the Vegetable Oil Industries Company VOIC disclosed posting net income of JD3.21 million in H1 2019; down by 10.55% than H1 2018. This mainly followed a decline in the company’s stake from its associates’ profits. Based on the disclosed figures. VOIC posts BV of JD8.78, and P/BV of 1.59x.Regarding the blue-chips, the largest company by market capitalization- Palestine Telecommunications PALTEL- disclosed posting net income of JD35.68 million in H1 2019, compared to net income of JD36.62 million in H1 2018. This mainly followed a decline in the company’s revenues. Based on the disclosed figures, PALTEL records BV of JD3.48 and P/BV of 1.20x.
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