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Successive anticipations coinciding with continuing to propose dividends’ distribution

2022-03-17

 Sahem Weekly Trading Report (13-17)-03-2022

Al-Quds Index maintained a relatively narrow price range, in this week, to close at the level of 615.59 points; up by 0.14% than its previous closing level. On another hand and despite the reinforcement of the investment feasibility in Palestine Stock Exchange PEX- with the expectations’ rise of the returns’ achievement with the increase in dividends’ proposals of the listed companies-, the calmness in the PEX may be justified with the decline in the general incentives. However, with the approaching end of the first quarter of the year 2022, the coming period will witness new anticipation with the start of listed companies to disclose their quarterly financial and operational results, to charge some optimism for that could appear as new liquidity activity. It is good to note that Palestine Stock Exchange PEX has extended the legal period for the listed companies’ quarterly disclosures for Q1 and Q3 from 30 day to 45 days.

On another hand, the listed companies continued to raise their recommendations to distribute dividends for their shareholders for the year 2021. In this context, the board of directors of Jerusalem Pharmaceuticals Company JPH raised a recommendation to the general assembly to distribute 12% cash dividends for the year 2021, to record dividends yields of 3.95% based on the current market price. Also, the board of directors of Palestine Industrial Investment Company PIIC raised a recommendation to the general assembly, which will be holding a meeting in the last quarter of April 2022, to distribute 10% cash dividends for the year 2021, to record dividends yield of 3.66% based on the current market price. In addition, the board of directors of Palestine Poultry Company AZIZA raised a recommendation to the general assembly, which will be holding a meeting in the last quarter of April 2022, to distribute 18% cash dividends for the year 2021, to record dividends yield of 6.67% based on the current market price. 

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Consumer Price Index CPI for Palestine during February 2022 recorded an increase by 0.61% compared with January 2022 (0.77% in Gaza Strip, 0.69% in Jerusalem, and 0.54% in the West Bank). The increase in the CPI came due to the increase in the prices of the following expenditure sub groups compared with previous month: fresh chicken by 6.77%, dried vegetables by 6.41%, liquid fuel for car "Diesel" by 3.40%, liquid fuel for car "Petrol" by 2.71%, fresh vegetables by 2.39%, eggs by 2.05%, non-alcoholic beverages by 1.79% and gas by 1.13%, despite a decline in the prices of potatoes and other tubers by 7.28%. Where the Palestinian CPI during February 2022 increased by 2.97% compared with February 2021 (3.96% in Jerusalem, 2.99% in Gaza Strip, and 2.77% in the West Bank).