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A decline in the Index in anticipation for the next week

2021-02-11

 Sahem Weekly Trading Report (07-11)-02-2021

In this week, Al-Quds Index traded in a relatively narrow range, declining from the psychological barrier that has recorded in the previous few weeks, to close at 488.79 points; down by 0.07% than the previous week. This mainly followed a decline in the    blue-chips prices- with heaviest weights and effects on Al-Quds Index- than the previous week due to the relative quietness witnessed in Palestine Stock Exchange PEX during the week and absence of institutional transactions momentum that raises the trading value. With the approaching end of the legal period granted to the listed companies to disclose their preliminary annual financial data, the investors’ anticipation accelerated during the week to prevail an inactivity state again in the market, which in turn is slow in filling orders and weak in the price depth, in parallel to some exceptions for some companies that have already disclosed their financial data and their strategies for distributing dividends. On the other hand, it is expected that the next week will witness a momentum of substantial news on the listed companies coinciding with the end of the legal granted period to disclose their data by the mid of the month.

On another hand, the recommendations to distribute dividends for the shareholders started. Whereby in the insurance sector, the board of directors of Trust International Insurance Company TRUST proposed to the general assembly, which will be holding a meeting on 08/04/2021, distributing 10% cash dividends for the year 2020, to record dividends yield of 3.13% based on the current price. On the other hand, the general assembly of the Arab Hotels Company AHC will be holding a meeting on 23/02/2021, whereby, will amortize the company’s losses which reached JD7.77 million by 31/12/2019, and decrease the paid-up capital from JD19.68 million with the amount of mentioned losses, from each shareholder according to the percentage of his ownership to the capital. In addition, AHC will capitalize the JD0.73 million shareholder current account of Al-Quds Bank QUDS as being one of their shareholders and raise the paid-up capital again with the amount of the shareholder current account after subscribing the shares to QUDS. 

Regarding the blue-chips, the stock of the largest company in the PEX in terms of market capitalization – Palestine Telecommunications PALTEL- recoded a decline of 0.24% in its price than the previous week, to close at the level of JD4.14. Also, the stock of the largest bank in the PEX in terms of market Capitalization – Bank of Palestine BOP- declined by 1.84% than the previous week, to close at $1.60. On another hand, the stock of the largest investment company in the PEX in terms of market capitalization- Palestine Development and Investment Company PADICO – increased by 1.25% after trading in a relatively narrow range, to close at the level of $0.81. Meanwhile, trading was active on the leading stock of the Arab Palestinian Investment Company APIC, closing at the level of $2.97; up by 0.34% than the previous week.