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Relative quietness in the PEX amid a lack in the general drivers


 Sahem Weekly trading Report (17-21)-11-2019

The motionlessness status imposed itself on Palestine Stock Exchange PEX this week, amid horizontal movement of Al-Quds Index that is skewed to slightly decline through transactions following the lack of drivers in general. Moreover, the liquidity was trapped around the prevailing trading prices amid rising anticipation for the remaining period of the year 2019. On another hand, the PEX witnessed executing several transactions of 1.60 million shares this week on the stock of Sanad Construction Resources SANAD, to raise the trading value to the medium level. It is good to note that the PEX is characterized with a unique nature of anticipation stages’ succession with their varying reasons, whereby, investors are not able to complete building their investment portfolios until new anticipation features appear in the horizon.  

On another hand, a report by Palestine Monetary Authority PMA showed that the inflation rate in Palestine would accelerate a little bit as of the final quarter of the current year 2019 but not enough to raise the whole year’s inflation, which is expected to settle at around 0.9%.  Whereby, inflation rate in Palestine is still very slight as it has been for approximately the past three years. This trend continued into 2019 as well and the first quarter of 2019 registered growth in consumer prices of no more than 0.8%. This minor growth occurred against the backdrop of an average increase in consumer price in the West Bank alongside with a continuous drop in the Gazan prices. Moreover, the PMA expected a continuation in stagnation of consumer price in the second and third quarters, and that inflation would record values that are very close to those of the first quarter (0.8% for each quarter). The low inflation rate in Palestine occurs against the backdrop of a tendency in global inflation rates to decline in the first quarter of 2019 as a result of commodity prices’ fall in global markets. This equally applies to advanced economies, emerging and developing countries, in addition to Palestine’s main trading partner countries especially China, Turkey, Eurozone and Jordan. However in Israel, the largest trading partner of Palestine, it experienced slow growth in inflation rate, which stayed low, as has been the case for several quarters.

Regarding this week’s trading, the price performance of the leading stocks did not witness any significant activity for any of them, to end their trading with varied changing in weights in Al-Quds Index. Whereby, the stock of the largest company in the PEX by market capitalization- Palestine Telecommunication PALTEL- declined by 0.72% than the previous week, to close at the level of JD4.11 after transactions worth $0.42  million. On another hand, the stock of the largest investment company in the PEX- Palestine Development and Investment Company PADICO- stabilized at the level of $1.18 without any change than the previous week through transactions worth $0.01 million. It is worth mentioning that the board of directors BOD of PADICO will be holding a meeting on 04/12/2019, to discuss the company’s investments and projects, in addition to the estimated budget of 2020. In contrast, the stock of the largest bank by market capitalization- Bank of Palestine BOP- increased by 1.00% than the previous week, to close at the level of $2.03 through transactions worth $1.19 million. In is good to note that the BOD of the bank will be holding a meeting on 28/11/2019, to discuss the bank’s operations report for the end of October 2019.




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