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The PEX records average PE of 12.4x and average P/BV of 1.27x in FY2021

2022-02-24

Sahem Weekly Trading Report (20-24)-02-2022

Al-Quds Index recorded, in this week, a decline by 0.96% than the previous week, to close at 616.20 points amid relative quietness among all investors and lack of general liquidity. On the other hand, with the disclosures’ completion of 45 companies out of 47 listed companies required to disclose their data for FY2021, the PEX records an average PE ratio of 12.4x and an average P/BV of 1.27x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 28.49% 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 FY2021. According to the disclosed data, the average PE of the sector records 12.2x, and average P/BV reached 1.13x. This came due to the increase in the sector’s profits attributable to the parent companies by 111.99%. While, Bank of Palestine BOP constitutes the lion’s share of 48.31% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 4.19% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where 43% 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 20.17% in FY2021. According to the disclosed data, the insurance sector records an average PE of 16.9X, the highest among all sectors, and an average P/BV of 1.37x.

In another context, the services sector contributed by the highest percentage of 33.69% from the total disclosed companies among all sectors in the PEX. Where 89% of the disclosed companies in the sector achieved profits attributable to the parent companies in FY2021, whereas, 11% of the disclosed companies in the sector realized net losses in FY2021. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 78.87% from the total sector’s profits attributable to the parent companies, in which increased in total by 55.39% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 12.9x, and average P/BV of 1.57x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 18.82% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies increased by 337.70% in FY2021. Where the sector records an average PE of 13.8x, and average P/BV of 1.12x; the lowest among all sectors. Regarding the Industry sector, it witnessed an increase in the sector’s profits attributable to the parent companies by 55.19% in FY2021; constituting 14.81% from total sector’s profits attributable to the parent companies, whereby, Birzeit Pharmaceuticals Company BPC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 56.14% 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 8.9x, the lowest among all sectors, and average P/BV of 1.16x.