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Al-Quds Index in the green zone and a momentum in executing transactions

2021-01-21

 Sahem Weekly Trading Report (17-21)-01-2021

With the approaching end of January, Al-Quds Index ended its trading in the green zone, increasing by 0.97% than its previous weekly closing level, and by 2.35% than its closing at the end of the year 2020, to record 482.33 points. This followed the increase in the blue-chips prices- with heaviest weights and effects on the Index- than the prices recorded in the previous week. On another hand, this week witnessed a momentum in executing transactions. Whereby, two transactions of 0.42 million shares were executed on the stocks of the largest investment company in Palestine Stock Exchange PEX by market capitalization – Palestine Development and Investment Company PADICO-. Moreover, a transaction of 0.05 million shares was executed on the stocks of the largest bank in the PEX in terms of market capitalization- Bank of Palestine BOP-, also, a transaction of 0.05 million shares was executed on the stocks of the leading company- Arab Palestinian Investment Company APIC-. On another context, the normal liquidity is still weak in parallel to the increase in the investors’ anticipation for the listed companies’ annual financial and operational data disclosures for the year 2020 and dividends recommendation. Whereby, with the beginning of February, 15 days remain to the legal period granted by the PEX to the listed companies for the annual disclosures from the 45 granted days. However , the coming weeks will witness a momentum in holding the companies’ board of directors’ meetings as a step to start the financial data disclosures.

According to the economic news, the Palestinian Minister of National Economy announced the entry into force of the temporary trade and political partnership agreement between Palestine and United Kingdom UK, in addition to the joint declarations on the rules of origin with the start of the year 2021. Whereby, in February 2019, the two countries signed an interim trade and political partnership agreement aimed at maintaining the preferential trade and cooperation terms stipulated in the interim partnership agreement, in addition to providing a platform for further trade liberalization and enhancing mutual cooperation. This agreement will facilitate the trade exchange, the exporting of the Palestinian products to UK markets without customs tariffs, in addition to strengthening the economic and trade cooperation between the two countries. It is worth mentioning that the trade volume between Palestine and UK reached $49 million in 2019; up by 15% than the year 2018, concentrated on the trade of goods and services from UK to Palestine. The main imports were medicines and transport cars, while, the main exports were dates and olive oil.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Wholesale Price Index (WPI) in Palestine with its base year (2007) reached 125.48 in 2020, which indicates a decrease by 0.10% compared with 125.61 in the year 2019. Prices of WPI for 2020 decreased due to the decrease in the prices of fishing goods by 2.22%, mining and quarrying activities by 1.56%, and manufacturing activates by 0.24%, while the prices of agricultural goods increased by 0.23%. On another hand, the prices of imported products decreased by 1.00%, while the prices of local products increased by 0.68% compared with the previous year.