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Several executed transactions raise the trading value significantly

2021-01-28

Sahem Weekly Trading Report (24-28)-01-2021

In the last week of January, Palestine Stock Exchange started to recover from the significant witnessed declines since the start of the Coronavirus Pandemic. Whereby, Al-Quds Index returned to breakthrough new psychological barrier that has abandoned since March 2020, to record noticeable gains of 1.74% than the previous week after trading in a relatively wide range, closing at the 490.71 points level. Moreover, the liquidity levels has increased significantly following executing several transactions on the leading stocks and others during the week. In this context, several transactions were executed on the stocks of Al-Quds Bank QUDS exceeding 4.53 million shares; whereby 1.03 million shares were purchased by Jordan Kuwait Bank (a member of the Board of Directors BOD of QUDS), raising its ownership stake in the paid-up capital of QUDS to 11.11%. Also, around 3.53 million shares were purchased by the Palestinian Pension Agency (also a member of the BOD of QUDS), raising its ownership stake in the paid-up capital of QUDS to 13.86%. Accordingly, QUDS price increased noticeably by 6.42% than its previous weekly closing level, to record $1.49. On the other hand, a transaction of 0.43 million shares was executed on the stocks of the largest company in the PEX in terms of market capitalization – Palestine Telecommunications PALTEL- whereby, PALTEL’s Employees Provident Fund sold part of its stake from PALTEL’s paid-up capital. Accordingly, PALTEL price increased significantly by 5.00% than its previous weekly closing level, to record JD4.20. However, it is undoubtedly that the two periods are different from each other- the end of the fiscal year and the beginning of a new one- , whereby, the basis of taking investment decisions vary among them. With entering the New Year 2021 and the end of the first trading month of January, the anticipation’s intensity among all traders’ categories increased for the financial results of the listed companies for Y2020, which through it the investment yield will be clearly determined.

The investors’ anticipation during these days, which in turn affects the liquidity levels, is reflected on sellers and buyers of the listed stocks. Whereby, both are conserving their role in executing the transaction despite their different decision taking basis. However, it is undoubtedly that a category of speculators exist who don’t take into account to any basis in this current period. Whereby, whoever conserves purchasing, refers his decision mainly to two factors; either he prefers to purchase after disclosing the financial data of the companies even if the prices rise, or he prefers to postpone the purchasing after the dividends entitlement and what follows of price declines. While, whoever conserves selling, mostly refers his decision on what oppose the buyer’s decision’s basis. He may conserve selling till disclosing the companies’ financial results even if the prices decrease accordingly, or he may prefer to sell before the dividends’ entitlement given the fact that the prices will be higher than what will accrue to later.

Regarding the economic indicators and According to the Palestinian Central Bureau of Statistics PCBs, exports in Palestine increased in November 2020 by 18% compared to October 2020. It also increased by 24% compared to November 2019 and reached $117.1 million. On the other hand, imports decreased in November 2020 by 2% compared to October 2020. It also decreased by 5% compared to November 2019 and reached $448.9 million. While the trade balance which represents the difference between exports and imports showed a decrease in trade deficit by 8% in November, 2020 compared to October 2020. It also decreased by 12% compared to November 2019 and reached $331.8 Million.