send to a friend by email

The PEX records average PE of 19.3x and average P/BV of 1.11x

2020-06-04

 Sahem Weekly Trading Report (31-05)-(04-06)-2020

In the first week of June, Al-Quds Index recorded an increase of 0.53% than the previous week with two trading sessions, to close at the level of 478.89 points. While the liquidity is still scarce; lacking any momentum due to the absence of general incentives. However and regarding the quarterly disclosures for Q1 2020, and with the completion of the announcements of 43 listed companies out of 48 required to disclose their financial data for Q1 2020, the PEX records an average PE ratio of 19.3x and an average P/BV of 1.11x. 

Regarding the data of the PEX’s sectors, 86% of the companies in the banking and financial services’ sector achieved profits in Q1 2020, whereby, 43% of the banks recorded growth in profits during the period. However, the sector’s profits contributed for 41.46% from the total disclosed companies’ profits attributable to the parent company; the largest contribution percentage. According to the disclosed data, the average PE of the sector records 14.3x, and average P/BV of the sector reports 1.13x. This followed a decline of 20.52% in total sector’s profits. On the other hand, the profits of Bank of Palestine BOP constitute the lion’s share of 41.73% from total achieved profits in the banking and financial services’ sector.

In the services sector, 88% of the listed companies in the sector achieved profits for Q1 2020, and on the top comes Palestine Telecommunication Company PALTEL, which constitutes 70.02% from the total sector’s profits. While, only one company realized net loss for Q1 2020, and three companies couldn’t disclose their financial data within the legal granted period. On the other hand, the sector’s profits constitute 31.79% from the total disclosed companies’ profits attributable to the parent company. Accordingly, the sector records average PE of 19.16x and average P/BV of 1.18x. Regarding the insurance sector, all the listed companies in the sector achieved profits in Q1 2020, while two companies couldn’t disclose its quarterly data within the legal granted period. According to the disclosed data, the sector records average PE of 11.23x; the lowest among all sectors and average P/BV of 1.36x; the largest among all sectors.

In the same context, the profits of the listed companies in the industry sector constitute 11.59% from the total disclosed companies’ profits attributable to the parent company. Whereby, Palestine Poultry Company AZIZA and Jerusalem Pharmaceuticals Company JPH achieved the highest profits, where both contribute for 50.78% from total sector’s profits. Accordingly, the sector records average PE of 18.49x and average P/BV of 1.08x. Moreover, the investment sector records the highest PE ratio among all sectors of 71.0x and the lowest average P/BV among all sectors, with an average of 0.96x. On another context, the sector’s profits contribute for 5.82% from total sectors’ profits; the lowest contribution percentage. On the other hand, the sectors’ profits declined by 87.65% in Q1 2020 compared to the corresponding period of Q1 2019.