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Active trading at the end of July 2021

2021-07-29

 Sahem Weekly Trading Report (25-29)-07-2021

With the end of the trading of July 2021, Al-Quds Index continued to increase in attempt to break-through the 580 points level after trading in a relatively narrow range. On the other hand, several transactions were executed, during the week, on some blue-chips and others, whereby, a transaction of 0.54 million shares was executed on the stocks of the largest investment company in Palestine Stock Exchange PEX by market capitalization- Palestine Development and Investment Company PADICO-, and a transaction of 0.60 million shares was executed on the stocks of the National Bank TNB, to raise the trading value in the PEX to a relatively high level. Regarding the leading stocks with heaviest weights in Al-Quds Index, some increased and others closed with no change than the previous week with one trading session only. While with the expected start of the acceleration of the listed companies’ semi-annual financial data disclosures in the coming weeks, investors with their different categories are still anticipating these disclosures because of their significant impact on forming a more clear vision of the return on investment on one hand and monitoring opportunities and building positions on another hand.

Regarding the significant news, Bank of Palestine BOP and Proparco jointly announced the signing of an agreement that will see FISEA (the AFD Group fund advised by Proparco), invest $12 million in Bank of Palestine through a special issuance of shares. This investment, which comes along a EUR 340,000 technical assistance program to support BOP’s impact-driven projects, will support BOP’s efforts to expand financial inclusion and help economic and social development in a fragile market, where economic woes were further exacerbated by the Covid-19 health crisis. This agreement comes after an extensive due diligence process conducted by Proparco and is in line with Bank of Palestine’s Extraordinary General Assembly approval to raise the capital of the bank to $250 million. After the special issuance of shares, BOP’s paid in capital will become $217,433,527 in conformity with the bank’s capital adequacy plans for growth. The bank has received all necessary regulatory approvals for the investment and special issuance.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, exports decreased in May 2021 by 10% compared to April 2021, while it increased by 40% compared to May 2020 and reached $103.3 million. Also, imports decreased in May 2021 by 5% compared to April 2021, while it increased by 40% compared to May 2020 and reached $461.7 million. On the other hand, the trade balance which represents the difference between exports and imports showed a decrease in trade deficit by 4% in May 2021 compared to April 2021, while it increased by 40% compared to May 2020 and reached $358.4 million.