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Several transactions in the market raise the trading value in the second week of 2020

2020-01-09

 Sahem Weekly Trading Report (05-09)-01-2020

Al-Quds Index started the second week of the year 2020- with four trading sessions- with attempts to cohere, in order to close in the green zone despite the normal transactions lacking continuity; regardless of executing institutional transactions on the stocks of the leading companies during the week. Whereby, an institutional transaction of 0.50 million shares was executed on the stocks of Bank of Palestine BOP, a transaction of 0.70 million shares was executed on the stocks of Palestine Development and Investment Company PADICO and a transaction of 0.05 million shares was executed on the stocks of Palestine Telecommunications Company PALTEL. While Al-Quds Index closed at the level of 524.80 points; up by 0.46% than the previous weekly closing level. Where, during the week, one listed stock’s performance didn’t exceed any other within a receding in the substantial news on the companies that may increase the intrinsic value of their stocks. The lack of trading may be attributable to anticipating the financial data and operational results for the year 2019 that is supposed to be disclosed through a legal period granted by Palestine Stock Exchange PEX that will end in mid-February. However, with the entry of the year 2020, the routine cycle starts in the stock market, which with its sequences stages; the price impact varies with the variation in traders’ behaviors. The fiscal year ends and the annual financial disclosures start, then the dividends’ distribution decisions’ announcements follow, then the entitlements come next, and finally measuring the return on investment. This comes with efficient price reflections and well-expected routine cycles if other factors remain constant.

Regarding the blue-chips price dynamics, the current price of the largest company in the PEX by market capitalization and the highest weighted stock in Al-Quds Index - Palestine Telecommunications Company PALTEL- records premium to 52-weeks low of 5.06%, and discount to 52-weeks high of -7.57%. Moreover, the current price of Palestine Development and Investment Company PADICO - the largest investment company in the PEX by market capitalization- records, premium to 52-weeks low of 2.80%, and discount to 52-weeks high of -21.43%. However, regarding the stock of the largest bank in the PEX by market capitalization- Bank of Palestine BOP-, it currently records premium to 52-weeks low of 2.56%, and discount to 52-weeks high of -20.00%. On the other hand, the leading stock of the Arab Palestinian Investment Company APIC, currently reports premium to 52-weeks low of 11.95% and discount to 52-weeks high of -0.78%.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Industrial Production Index IPI in Palestine reached 108.72 during November 2019 with a decrease of 1.90% compared to 110.82 during October 2019 (Base Year 2018). IPI for November 2019 decreased due to the decrease in the activities of mining and quarrying by 15.16% which had a share of 2.68% of the total industry, the activities of electricity, gas, steam and air conditioning supply by 7.77% which had a share of 11.95% of the total industry, and the activities of manufacturing industry by 0.83% which had a share of 82.98% of the total industry, while the activities of water supply, sewerage, waste management and remediation increased by 5.38% which had a share of 2.39% of the total industry.