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Al-Quds Index at a new psychological barrier that has abandoned since August 2019

2020-02-13

 Sahem Weekly Trading Report (09-13)-02-2020

Al-Quds Index broke-through, in this week, a new psychological barrier that has abandoned since August 2019, to close at the level of 531.54 points; with gains of 0.70% than its previous weekly closing level. This was supported by an increase in the prices of some leading stocks with highest weights in the Index amid relatively weak transactions. On another hand, Palestine Stock Exchange PEX witnessed, during the week, a momentum in the significant news on the Palestinian companies coinciding with the end of the legal period granted to these companies to disclose their preliminary annual financial data for the year 2019 on the 15th of February, in addition to the start of the dividends distribution proposals announcements- whether cash, stocks or both-. However, the anticipations dominated the trading nature, while, the coming period will witness a variation in the investors’ behavior with their various types. Whereby, building investment positions for some stocks on one hand, and the price speculations that constitute an essential part within the stocks’ routine price cycles, in parallel to the dividends’ distribution season are what may distinguish the coming weeks.

On another hand, the recommendations to distribute dividends for the shareholders continued. Whereby in the insurance sector, the board of directors of the National Insurance Company NIC raised a recommendation to the general assembly, which will be holding a meeting on 24/03/2020, to distribute 22.5% cash dividends for the year 2019, to record dividends yield of 5.57% based on the current market price. Moreover, the board of directors of Global United Insurance Company GUI proposed to the general assembly, which will be holding a meeting on 06/04/2020, distributing 10% cash dividends for the year 2019, to record dividends yield of 3.85% based on the current market price.

Regarding the listed companies preliminary financial data disclosures for the year 2019, the Vegetable Oil Industries Company VOIC disclosed posting net income of JD6.70 million at the end of 2019, compared to net income of JD6.38 million at the end of 2018. This came mainly as a result of an increase in the company’s net sales slightly versus a decline in the costs of these sales, in addition to recording JD0.12 million gains from foreign currency exchange at the end of 2019 versus recording losses from foreign currency exchange at the end of 2018. Based on the disclosed figures, VOIC records book value BV of JD9.69 and P/BV of 1.36x. In the same context, Palestine Industrial Investment Company PIIC- the investment arm of PADICO Holding in the agriculture and industrial sectors- disclosed posting net income attributable to the shareholders of the parent company of JD5.17 million at the end of 2019; up significantly by 52.98% at the end of 2018. This mainly followed an increase in the company’s net sales, its stake from its affiliates’ profits, versus not recording any losses from excluding a subsidiary as the year 2018. Based on the disclosed figures, PIIC records BV of JD2.33 and P/BV of 0.97x. Regarding the leading companies, the largest company in the PEX by market capitalization- Palestine Telecommunications PALTEL- noted posting net income attributable to the shareholders of the parent company of JD63.97 million at the end of 2019; down by 4.66% than the year 2018. This mainly followed a decline in the company’s net sales, profits from investments, and its stake from its affiliates’ profits. Based on the disclosed figures, PALTEL records BV of JD3.61 and P/BV of 1.22x.