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Al-Quds Index at its highest level since the beginning of the year

2020-02-06

Sahem Weekly Trading Report (02-06)-02-2020

In the first week of February, Al-Quds Index recorded weekly gains of 1.07%, to close at the level of 527.86 points; reporting its highest level since the beginning of the year. Whereby, the increase in the price of the largest company in Palestine Stock Exchange PEX by market capitalization- Palestine Telecommunications PALTEL- especially after announcing its recommendation to distribute dividends for the year 2019, constituted the main leverage for the Index. On another hand, the all different types of investors’ anticipation increases during the week, with the approaching end of the legal period granted to the listed companies to disclose their preliminary annual financial data on the 15th of February. Whereby in another context, the PEX lacked any trading momentum and witnessed absence in executing any institutional transaction in this period. However, the next week is expected to witness momentum in disclosures, and new recommendations regarding distributing dividends to the shareholders for the year 2019.

On another hand, the listed companies continue to raise their recommendations to distribute dividends for the shareholders. Whereby, the board of directors of Palestine Telecommunications Company PALTEL proposed to the general assembly, which will be holding ordinary and extraordinary meetings on 24/03/2020, distributing 40% cash dividends for the year 2019, to record dividends yield of 9.24% based on the current market price. Moreover, the board of directors of the Arab Company for Paints Products APC raised a recommendation to the general assembly, which will be holding a meeting on 09/03/2020, distributing 40% cash dividends for the year 2019, to record dividends yield of 6.35% based on the current market price. Furthermore, the board of directors of Birzeit Pharmaceutical Company BPC proposed to the general assembly, which will be holding a meeting on 14/04/2020, distributing 22% cash dividends for the year 2019, to record dividends yield of 4.15% based on the current market price.

Regarding the listed companies’ financial data disclosures for the end of 2019, the Arab Company for Paints Products APC noted posting net income of JD0.76 million at the end of 2019, compared to net income of JD0.45 million at the end of 2018. This mainly followed an increase in the company’s net sales by 5.42% at the end of 2019. Based on the disclosed figures, APC records book value BV of JD3.13, and P/BV of 1.69x. Moreover, Palestine Securities Exchange Company PSE disclosed posting net income of $0.60 million at the end of 2019; up by 42.14% than 2018. This mainly followed a decline in the company’s general and administrative expenses by 25.96% in 2019 and an increase in the investment gains by 16.87% and other revenues by 31.07%. Based on the disclosed figures, PSE records BV of $1.21, and P/BV of 4.05x.