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A variation in the investors’ expectations with increasing the annual disclosures anticipation

2022-01-20

Sahem Weekly Trading Report (16-20)-01-2022

In this week, trading in Palestine Stock Exchange PEX lacked any quality, and conservatism controlled the investors’ behavior coinciding with the routinely anticipation for the listed companies’ annual financial data and dividends distribution trends for the year 2021 and what will devolve in their financial decisions accordingly. Whereby, liquidity scarceness dominated trading for this week, and the PEX lacked any institutional transaction that may increase the trading value from time to time. This coincided with the showiness that is leaning to boredom in the price movements due to heaviness in filling the selling and purchasing orders. Whereby, with the beginning of February, 15 days remain to the legal period granted by the PEX to the listed companies to disclose their financial and operational annual data from the 45 granted days.

The investors’ anticipation during these days, which in turn affects the liquidity levels, is reflected on sellers and buyers of the listed stocks. Whereby, both are conserving their role in executing the transaction despite their different decision taking basis. However, it is undoubtedly that a category of speculators exist who don’t take into account to any basis in this current period. Whereby, whoever conserves purchasing, refers his decision mainly to two factors; either he prefers to purchase after disclosing the financial data of the companies even if the prices rise, or he prefers to postpone the purchasing after the dividends entitlement and what follows of price declines. While, whoever conserves selling, mostly refers his decision on what oppose the buyer’s decision’s basis. He may conserve selling till disclosing the companies’ financial results even if the prices decrease accordingly, or he may prefer to sell before the dividends’ entitlement given the fact that the prices will be higher than what will accrue to later.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Wholesale Price Index (WPI) in Palestine with its base year (2007) reached 126.99 in 2021, which indicates an increase of 1.21% compared with 2020. Prices of WPI for 2021 increased due to the increase in the prices of manufacturing activities by 1.25%, agricultural activities by 1.16%, and mining and quarrying activities by 0.78%, while the prices of fishing activities decreased by 4.40%. However, the prices of imported products increased by 2.78%, while the prices of local products decreased by 0.80% compared with the previous year.