Sahem Weekly Trading Report (01-05)-09-2019

In the first week of September, Al-Quds Index recorded a decline of 0.36% than its previous weekly closing level, after trading in a relatively narrow range, to close at the level of 521.71 points. While Palestine Stock Exchange PEX witnessed trading weakness and price movements slowness. Where the normal trading still lacks any momentum despite executing an institutional transaction on the stocks of Bank of Palestine BOP of 0.23 million shares in the week. On the other hand, with the disclosures’ completion of 46 companies out of 48 listed companies required to disclose their data by the end of the first half of 2019, the PEX records an average PE ratio of 12.26x and an average P/BV of 1.20x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 28.84% from total disclosed companies’ profits attributable to the parent companies. Whereby, all companies in the sector recorded profits by the end of H1 2019. According to the disclosed data, the average PE of the sector records 12.49x, and average P/BV reached 1.22x. This came despite the decrease in the sector’s profits attributable to the parent companies by 4.85%. While, Bank of Palestine BOP constitutes the lion’s share of 46.41% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 5.74% from total disclosed companies’ profits attributable to the parent companies. Where 29% of the disclosed companies in the sector recorded an increase in their profits attributable to the parent companies. but the sector’s profits attributable to the parent companies slightly decreased by 21.18% in H1 2019. According to the disclosed data, the insurance sector records an average PE of 12.20x, and an average P/BV of 1.28x.

In the services sector, 9 out of 11 listed companies among the sector disclosed their H1 2019 financial results; where the services sector contributed by the highest percentage of 35.38% from the total disclosed companies among all sectors in the PEX. Where 78% of the disclosed companies in the sector achieved profits attributable to the parent companies in H1 2019, whereas, 22% of the disclosed companies in the sector realized net losses compared to the corresponding period of 2018, while, two companies didn’t disclose their financial results for H1 2019 within the granted period by the PEX. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 93.03% from the total sector’s profits attributable to the parent companies, in which declined in total by 4.60% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 11.27x, and average P/BV of 1.34x.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 19.49% from the total disclosed companies’ profits attributable to the parent companies, while, the investment sector’s profits attributable to the parent companies increased by 21.68% in H1 2019, to record an average PE of 13.80x; the largest among all sectors, and average P/BV of 1.03x; the smallest among all sectors. Regarding the Industry sector, it witnessed a decrease in the sector’s profits attributable to the parent companies by 8.58% in H1 2019; constituting 10.55% from total sector’s profits attributable to the parent companies, whereby, Birzeit Pharmaceuticals BPC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 59.29% from total sector’s profits attributable to the parent companies. Accordingly, the Industry sector records an average PE of 12.18x and average P/BV of 1.17x.