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Al-Quds Index at its lowest level since a year

2020-06-25

Sahem Weekly Trading Report (21-25)-06-2020

In the penultimate week of June, Al-Quds Index traded as its lowest level for a year, recording 469.91 points; down by -0.85% than its previous weekly closing level, and by -12.22% than the same period a year ago. Whereby, it traded in a relatively narrow range. While the three blue-chips witnessed declining in their prices than the previous week due to scarce transactions that didn’t exceed $200 thousands for each of them. On another hand, this week witnessed executing a transaction on the leading stock of the Arab Palestinian Investment Company APIC- of 0.13 million shares. According to the expectations, the semi-annual financial data disclosures for the listed companies are the most important anticipation for the investors in the PEX with their different types. Whereby, the long term investors may formulate a very clear vision about their annual return due to these disclosures, while speculators will follow any price wave that results from the financial disclosure.

Regarding the price dynamics, the current price of Palestine Telecommunications Company PALTEL- the largest company by market capitalization and the highest weighted stock in Al-Quds Index- records premium to 52-weeks low of 2.44%, and discount to 52-weeks high of -14.09%. Moreover, the stock of the largest investment company by market capitalization - Palestine Development and Investment Company PADICO- records, based on the current price, premium to 52-weeks low of 1.22%, and discount to 52-weeks high of -36.15%. However, regarding the stock of the largest bank by market capitalization- Bank of Palestine BOP-, it records premium to 52-weeks low based on the current price of 2.30% and discount to 52-weeks high of -16.04%. On the other hand, the leading stock of the Arab Palestinian Investment Company APIC, reports, based on the current price, premium to 52-weeks low of 6.49% and discount to 52-weeks high of -8.21%.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS and Palestine Monetary Authority PMA, the primary results of the International Investment Position IIP (external assets – foreign liabilities) for Palestine at the end of the first quarter 2020  revealed that the net IIP reached $1,763 million; down by 16% compared to the previous quarter, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad. On the other hand, the Gross External Debt on the Palestinian economic sectors reached $2,051 million; up by 4% compared with previous quarter. The debt on the government sector represented 62%, while debt on the banking sector reached 35%, and debt on other sectors (nonbanking financial corporations, non-financial corporations, NGOs and households sector) amounted to 2%, and the lending between affiliated companies reached less than 1%.