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Al-Quds Index ends the week in the green zone and the institutional transactions raise the trading value

2021-06-17

 Sahem Weekly Trading Report (13-17)-06-2021

Al-Quds Index continued its gradual increase in this week as well, to end the week in the green zone; up by 0.97% than its previous weekly closing level after recording 539.81 points. Regarding the liquidity levels, the institutional transactions dominated the market, to raise the trading value side by side to the relative activity of the effected stocks. In this context, several transactions of 2.70 million shares were executed on the stocks of the National Bank TNB, where Orchid Investment Company has sold 2.40 million shares of its owned shares in TNB. It is good to note that Orchid Investment Company has owned 2.69 million shares in TNB (2.93% of TNB’s paid-up capital) as of the end of 2020. On another hand and with the end of June, the anticipation increases by all kinds of investors for the semi-annual financial data disclosures of the listed companies, especially with the distinguished disclosures that were announced for the end of Q1 2021.

Regarding the listed companies financial data disclosures for Q1 2021, Palestine Electric Company PEX disclosed posting net income of $3.22 million in Q1 2021; down by 24.21% than the corresponding period a year earlier. This came despite the increase in the company’s revenues by 10.24% between the two periods, and due to an increase in the financing expenses, in addition to recording $0.54 million expected credit losses provision in Q1 2021. Based on the disclosed figures, PEX records book value BV of $1.71 and P/BV of 0.96x. In the same context, Sanad Construction Resources Company SANAD disclosed posting net income attributable to the shareholders of the parent company of $0.15 million in Q1 2021, compared to net loss of $1.73 million in Q1 2020. This came due to recording $2.11 million realized and unrealized profits from selling a stake in a subsidiary in Q1 2021. Based on the disclosed figures, PEX records BV of $0.61 and P/BV of 3.18x.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Consumer Price Index CPI for Palestine during May 2021 recorded a slight increase by 0.08% compared with April 2021 (by 0.26% in the West Bank, and by 0.24% in Jerusalem, while it decreased by 0.61% in Gaza Strip). Whereby, the increase in the Palestinian CPI for May 2021 came due to the increase in the prices of the following expenditure sub groups, compared with previous month: fresh fruit by 6.43%, fresh chicken by 1.74%, gas by 0.71%, fresh meat by 0.41%, versus a decline in the prices of dried vegetables by 17.93%, eggs by 11.32%, fresh vegetables by 5.52%, fish (live, fresh, chilled or frozen) by 2.61%, potatoes and other tubers by 1.89% and vegetable oil by 1.11%. The Palestinian CPI during May 2021 increased by 2.30% compared with May 2020 (by 2.99% in Jerusalem, by 2.89% in the West Bank, and with a slight increase by 0.01% in Gaza Strip).