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The blue-chips above their equivalent prices and a momentum in the significant news

2022-05-19

 Sahem Weekly Trading Report (15-19)-05-2022

In this week and with the completion of holding the general assembly meetings of the blue-chips with highest market capitalization and circulation in the market, Al-Quds Index witnessed an increase of 2.68% than the previous week after trading in a relatively wide range, to close at 637.89 points. This mainly came due to the increase in the blue-chips’ prices that approved distributing dividends for the year 2021 above their equivalent prices after the distribution, which mainly several transactions were executed on. On another hand, the anticipation increases among all investors to capture the best opportunities to build investment positions in Palestine Stock Exchange PEX.

Regarding the Q1 2022 financial data disclosures of the blue-chips, the Arab Palestinian Investment Company APIC disclosed posting net income attributable to the shareholders of the parent company of $9.92 million in Q1 2022 compared to $7.16 million in the same period a year earlier. This mainly came due to an increase in the gross profits from sales and services by 22.99%, in addition to recording other revenues of $1.74 million in Q1 2022 compared to other losses in Q1 2021. Regarding the disclosed figures, APIC posts net income of $1.64, and P/BV of 2.30x. Also, Bank of Palestine BOP announced posting net income attributable to the shareholders of the parent company of $15.71 million in Q1 2022, compared to $10.08 million in Q1 2021. This mainly came due to an increase in net interests, commissions, investing and financing income by 15.80%, in addition to reducing the provision of expected credit losses by 20.33%. Regarding the disclosed figures, BOP posts net income of $2.08, and P/BV of 0.99x.

Regarding the significant news and following the extraordinary general assembly meeting decision of Palestine Telecommunications PALTEL on 22/03/2022 regarding granting one share in the new established company (Arkan Real Estate Company) for each owned share in PALTEL till 28/06/2022 (the entitlement date), the paid-up capital of the new company ( Arkan Real Estate Company) will be 131,625,000 shares/$1 par value per share with book value of around $358 million according to the audited financial data of 2021. After taking all approvals from Palestine Capital Market Authority, trading on PALTEL will be halted for two working days (29-30)/06/2022, while will be resumed on 03/07/2022 and on the same date, trading will start on Arkan Real Estate Company. A prospectus for Arkan Real Estate Company will be issued on 29/05/2022, one month before the entitlement date.