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Al-Quds Index at its highest level since March 2008

2021-11-04

 Sahem Weekly Trading Report (31-10)-(04-11)-2021

With the start of November and approaching end of the year 2021, Al-Quds Index broke through new physiological barrier than has abandoned since March 2008, to close at 610.01 points; up by 4.52% than the previous week, and by 29.44% than its closing at the end of 2020. Whereby, this week witnessed very active trading and high-volume transactions on the blue-chips and others. Where high-volume transactions were executed on the stocks of Bank of Palestine BOP, the Arab Palestinian Investment Company APIC, and Palestine Development and Investment Company PADICO, besides a low-volume transaction on the stocks of the Palestinian Company for Distribution & Logistics Services WASSEL. With the end of the legal period granted by Palestine Stock Exchange PEX to the listed companies to disclose their 9M 2021 financial and operational data, some disclosures were distinguished than others, especially for the blue-chips, to create in the investors’ minds a clearer vision about the expected annual return.

Regarding the blue-chips financial and operational data disclosures for 9M 2021, the largest company in the PEX by market capitalization – Palestine Telecommunications PALTEL- disclosed posting net income attributable to the shareholders of the parent company of JD50.90 million in 9M 2021; significantly up by 60.16% than the corresponding period a year earlier. This mainly resulted from an increase in the company’s revenues from contracts with clients by 13.23% between the two periods, in addition to recording investment profits of JD8.91 million in the first nine months of 2021, compared to investment losses of JD6.08 in the corresponding period a year earlier. Based on the disclosed figures, PALTEL records book value BV of JD3.59, and P/BV of 1.59x. In the same context, the largest investment company in the PEX by market capitalization – Palestine Development and Investment Company PADICO- disclosed posting net income attributable to the shareholders of the parent company of $17.04 million in 9M 2021, compared to $2.28 million in the corresponding period a year earlier. This mainly resulted from an increase in the company’s revenues by 23.82% between the two periods; including an increase in: PADICO’s shares from its affiliates’ profits by 66.98%, profits from the financial assets portfolio by 2,131.49%, in addition to recording profits from selling investment in properties by $1.10 million. Based on the disclosed figures, PADICO records book value BV of $1.64, and P/BV of 0.78x.

In the same context and in the banking and financial services sector, the largest bank in the PEX by market capitalization- Bank of Palestine BOP- disclosed posting net income attributable to the shareholders of the bank by $39.36 million in 9M 2021, compared to $13.22 million in the same period a year earlier. This mainly resulted from an increase in BOP’s net interest, commissions, investment and financing income by 11.82% between the two periods, in addition to recording a significant increase in the bank’s portfolio from financial assets to hit $6.41 million in 9M 2021. Based on the disclosed figures, BOP records BV of $1.95 and P/BV of 1.05x. On another hand, the leading company of the Arab Palestinian Investment Company APIC disclosed posting net income attributable to the shareholders of the parent company of $27.77 million in 9M 2021, compared to $12.73 million in 9M 2020. This mainly resulted from an increase in the company’s sales by 35.76% between the two periods. Based on the disclosed figures, APIC records BV of $1.57 and P/BV of 2.06x.