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The PEX records average PE of 12.1x and average P/BV of 1.21x in Q1 2021

2021-06-10

 Sahem Weekly Trading Report (06-10)-06-2021

In this week, Al-Quds Index witnessed an increase of 0.40% than its previous weekly closing level after trading in a relatively narrow range, closing at 534.65 points. In another context, Palestine Stock Exchange PEX witnessed a momentum in executing transactions on medium-cap companies. Whereby, a transaction of 0.96 million shares on the stock of the Arab Company for Paints Products APC was executed, and a transaction of 0.50 million shares on the stock of Palestine Islamic Bank ISBK was executed. Also, a transaction of 0.26 million shares was executed on the stocks of Tamkeen Palestinian Insurance Company TPIC, whereby, the Palestinian Pension Agency has bought TPIC’s shares. On the other hand, with the disclosures’ completion of 41 companies out of 46 listed companies required to disclose their data for Q1 2021, the PEX records an average PE ratio of 12.1x and an average P/BV of 1.21x. It is good to note that the figures of TPIC has not been included after being listed in the PEX on 06-06-2021 and raising the listed companies to 47 company.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 28.83% from total disclosed companies’ profits attributable to the parent companies. Whereby, all of the companies that disclosed their data in the sector recorded profits in Q1 2021. According to the disclosed data, the average PE of the sector records 13.2x, and average P/BV reached 1.14x. This came due to the increase in the sector’s profits attributable to the parent companies by 52.89%. While, Bank of Palestine BOP constitutes the lion’s share of 47.14% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 5.88% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where 33% 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 declined by 6.09% in Q1 2021. According to the disclosed data, the insurance sector records an average PE of 12.5x, and an average P/BV of 1.33x.

In the services sector, 7 out of 9 listed companies among the sector disclosed their Q1 2021 financial results; where the services sector contributed by the highest percentage of 36.29% from the total disclosed companies among all sectors in the PEX. Where 86% of the disclosed companies in the sector achieved profits attributable to the parent companies in Q1 2021, whereas, 14% of the disclosed companies in the sector realized net losses compared to the corresponding period of 2020, while, two companies didn’t disclose its financial results for Q1 2021 within the granted period by the PEX. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 89.66% from the total sector’s profits attributable to the parent companies, in which increased in total by 137.92% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 10.5x, and average P/BV of 1.50x.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 19.81% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies increased by 337.25% in Q1 2021. However, one company couldn’t disclose its data within the granted period. The sector records an average PE of 12.6x, and average P/BV of 1.04x; the lowest among all sectors. Regarding the Industry sector, it witnessed an increase in the sector’s profits attributable to the parent companies by 38.67% in Q1 2021; constituting 9.19% from total sector’s profits attributable to the parent companies, whereby, Jerusalem Cigarette Company JCC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 41.81% 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 13.6x and average P/BV of 1.08x.