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Al-Quds Index continues its increasing despite the prevailing political situation

2021-05-20

 Sahem Weekly Trading Report (16-20)-05-2021

Despite the prevailing political conditions and the aggression the country is witnessing on Gaza Strip, and what follows of destruction of facilities and infrastructure, apart from the human, material and moral losses, but Al-Quds Index continued its growth that has started before Eid El-Fiter Holiday in this week- with four trading sessions, to close at the level of 498.94 points; up by 1.61% than its closing on the last week it traded. This followed a trading activity on the leading stocks with heaviest weights and effects on the Index specifically. And if this shows anything, it shows that Palestine Stock Exchange PEX has repeatedly emphasized its ability to isolate itself by itself from any political or economic developments.  On another hand, the listed companies witnessed significant news momentum, varying between dividends distribution approvals and quarterly financial data disclosures, to raise expectations among investors to monitor the best opportunities for building the investment positions in the PEX.

On another context, the listed companies started to disclose their Q1 2021 financial data, whereby, the Arab Company for Paints Products APC noted posting net income of JD0.20 million in Q1 2021, compared to net income of JD0.86 million in Q1 2020. This decrease came due to a decline in the company’s net sales by 74.52% compared to the corresponding period of 2020. Based on the disclosed figures, APC records book value BV of JD3.07 and P/BV of 1.96x. However, regarding the leading companies, Palestine Telecommunications PALTEL disclosed posting net income attributable to the shareholders of the parent company of JD17.11 million in Q1 2021; up significantly by 143.32% than the correspond period of 2020. This mainly followed an increase in the company’s revenues and recording profits from investments compared to investment loss in Q1 2020. Based on the disclosed figures, PALTEL records book value BV of JD3.10 and P/BV of 1.36x.

Regarding the dividends distribution approvals for the year 2020 and their effects, the general assembly of Palestine Poultry Company AZIZA approved in its meeting on 20/05/2021, distributing 18% cash dividends for the year 2020, to record dividends yield of 6.67% based on the price on the entitlement date. Also, the general assembly of Beit-Jala Pharmaceuticals Company BJP approved in its meeting on 19/05/2021, distributing 10% cash dividends for the year 2020, to record dividends yield of 3.92% based on the price on the entitlement date. On the other hand, the general assembly of Palestine Insurance Company PICO approved in its meeting on 19/05/2021, raising the paid-up capital from $7.20 million to $9.00 million through distributing 25% stocks dividends for the year 2020.