send to a friend by email

The PEX records average PE of 16.6x and average P/BV of 1.10x at the end of 2020

2021-02-25

 Sahem Weekly Trading Report (21-25)-02-2021

Al-Quds Index stood still in this week amid scarce liquidity that didn’t exceed $2.00 million. While the dividends distribution proposals for the year 2020 continued. In this context, the board of directors of Birzeit Pharmaceutical Company BPC proposed to the general assembly, which will be holding ordinary and extraordinary meetings on 28/04/2021, raising the paid-up capital from $19.00 million to $19.38 million through distributing 2% stocks dividends for the shareholders for the year 2020. It also proposed distributing 15% cash dividends for the year 2020, to record dividends yield of 2.83% based on the current market price. Also, the board of directors of the Vegetable Oil Industries Company VOIC raised a recommendation to the general assembly which will be holding a meeting in the second half of April 2021, to distribute 50% cash dividends for the year 2020, to record dividends yield of 4.76% based on the current market price.  On the other hand, with the disclosures’ completion of 43 companies out of 46 listed companies required to disclose their data by the end of the year 2020, the PEX records an average PE ratio of 16.6x and an average P/BV of 1.10x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 24.01% from total disclosed companies’ profits attributable to the parent companies. Whereby, 86% of the companies that disclosed their data in the sector recorded profits by the end of 2020. According to the disclosed data, the average PE of the sector records 21.1x, and average P/BV reached 1.06x. This came despite the decrease in the sector’s profits attributable to the parent companies by 37.15%. While, Bank of Palestine BOP constitutes the lion’s share of 41.01% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 9.08% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where 71% of the disclosed companies in the sector recorded an increase in their profits attributable to the parent companies. However, the sector’s profits attributable to the parent companies increased by 20.59% in 2020. According to the disclosed data, the insurance sector records an average PE of 11.8x, and an average P/BV of 1.18x.

In the services sector, 8 out of 9 listed companies among the sector disclosed their 2020 financial results; where the services sector contributed by the highest percentage of 37.01% from the total disclosed companies among all sectors in the PEX. Where 88% of the disclosed companies in the sector achieved profits attributable to the parent companies in 2020, whereas, 12% of the disclosed companies in the sector realized net losses compared to the corresponding period of 2019, while, one company didn’t disclose its financial results for 2020 within the granted period by the PEX. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 80.25% from the total sector’s profits attributable to the parent companies, in which declined in total by 27.61% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 15.3x, and average P/BV of 1.32x.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 12.87% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies declined by 21.96% in 2020. However, one company couldn’t disclose its data within the granted period. The sector records an average PE of 23.9x; the largest among all sectors, and average P/BV of 0.89x; the lowest among all sectors. Regarding the Industry sector, it witnessed a decrease in the sector’s profits attributable to the parent companies by 5.03% in 2020; constituting 17.02% from total sector’s profits attributable to the parent companies, whereby, Birzeit Pharmaceuticals BPC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 46.07% from total sector’s profits attributable to the parent companies. However, one company couldn’t disclose its data within the granted legal period. Accordingly, the Industry sector records an average PE of 10.0x and average P/BV of 1.02x.