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2021-03-18
Sahem Weekly Trading Report (14-18)-03-2021
In this week, and with the lockdown return to stop the spread of the Coronavirus, Palestine Stock Exchange PEX witnessed relative quietness amid medium-volume liquidity that lacks institutional transactions that may raise the trading value in the market from time to time. While Al-Quds Index recorded an increase by 1.05% that the previous weekly closing level, closing at 488.49 points. However, in waiting for new positives with the approaching end of Q1 2021 to start the anticipation for the quarterly financial data, the investors’ appetite is still open to grab investment positions’ opportunities. With the continuation of raising the recommendations regarding distributing dividends for the year 2020, a category of speculators may prefer to sell when the dividends’ proposals are announced in order to reposition themselves after the distribution, while, other category may increase the purchasing orders with the increase in expectations regarding the dividends’ recommendations. This week, the number of companies that raised recommendations regarding the dividends’ distribution increased to 17 companies by the end of the business day; three banks, one financial services company, six industrial companies, five insurance companies and two services companies.
In the same context, the dividends proposals for the shareholders for the year 2020 continued in this week. In the banking and financial services sector, the board of directors of Palestine Securities Exchange Company PSE raised a recommendation to the general assembly, which will be holding a meeting on 25/03/2021, to distribute 4% cash dividends for the year 2020, to record dividends yield of 0.82% based on the current market price. Also, the board of directors of Al-Quds Bank QUDS raised a recommendation to the general assembly, which will be holding ordinary and extraordinary meetings in the first half of April 2021, to raise its paid-up capital from $93.17 million to $96.43 million through distributing 3.50% stocks dividends. It also recommended distributing 4.50% cash dividends for the year 2020, to record dividends yield of 2.92% based on the current market price.
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 fourth quarter 2020 revealed that the net IIP amounted to $2,859 million; up by 18% compared with previous quarter, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad. On another hand, the Gross External Debt on the Palestinian economic sectors reached $2,052 million; up by 2% compared with previous quarter, the debt on government sector represented 64%, while debt on banks sector reached 33%, and debt on other sectors (non-bank financial corporations, non-financial corporations, NGOs and households sector) amounted to 2%, and the lending between affiliated companies reached less than 1%.
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