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Relative Calmness in the PEX and a momentum in holding the general assembly meetings

2021-04-08

 Sahem Weekly Trading Report (04-08)-04-2021

In this week, Al-Quds Index regained its balancing after declining significantly during the previous week due to the dividends’ entitlement of the two largest companies in terms of market capitalization in Palestine Stock Exchange PEX, to close at the level of 474.23 points; up by 1.50% than its previous weekly closing level. While the market transactions were characterized by slowness and conservatism amid growing momentum of general assemblies’ meetings and a steady flow of dividends decisions. Whereby, the PEX witnessed a calm pace in terms of liquidity. However, following the Coronavirus pandemic and its repercussions, the legal period granted by the PEX to the listed companies to disclose their Q1 2021 financial data was extended to 31/05/2021 instead of 30/04/2021. Whereby, with entering the legal disclosure period in the coming week, an overlapping will appear in the anticipation factors among investors and prevailing prices solidity in this period given the fact of conservatism domination more than changing the investment positions.

Regarding the dividends distribution proposals and approvals, the board of directors of the Arab Palestinian Investment Company APIC raised a recommendation to the general assembly, which will be holding a meeting on 05/05/2021, to raise the paid-up capital from $96.20 million to $105.00 million through distributing 9.1476% stocks dividends for the year 2020. It also recommended distributing 7.50% cash dividends for the year 2020, to record dividends yield of 2.46% based on the current market price. In regard to the dividends distribution approvals, the general assembly of Palestine Electric Company PEC approved, in its meeting on 07/04/2021, distributing 10% cash dividends for the year 2020, to record dividends yield of 5.88% based on the price on the entitlement date. Whereby, PEC will start paying the approved dividends from 23/05/2021. Also, the general assembly of Trust International Insurance Company TRUST approved in its meeting on 08/04/2021, distributing 10% cash dividends for the year 2020, to record dividends yield of 3.13% based on the price on the entitlement date. In the banking and financial services sector, the general assembly of Al-Quds Bank QUDS approved in its ordinary and extraordinary meetings on 08/04/2021, raising its paid-up capital from $93.17 million to $96.43 million through distributing 3.50% stocks dividends. It also approved distributing 4.50% cash dividends for the year 2020, to record dividends yield of 2.96% based on the price on the entitlement date.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics, the overall Industrial Production Index IPI in Palestine reached 99.07 during February 2021 with a decrease of 2.43% compared to 101.54 in January 2021 (Base Year 2019). IPI for February 2021 decreased due to the decrease in the activities of mining and quarrying by 12.32%, which constitute 2.89% of the total industry, the activities of water supply, sewerage, waste management and remediation by 9.31%, which constitute 1.84% of the total industry, and the activities of manufacturing industry by 2.24%, which constitute 87.89% of the total industry, while the activities of electricity, gas, Steam and air conditioning supply increased by 0.39%, which constitute 7.38% of the total industry.