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Al-Quds Index below the 640 points level amid medium liquidity


 Sahem Weekly Trading Report (18-22)-09-2022

With the approaching end of September, Al-Quds Index traded below the 640 points level after trading in a relatively narrow range, to close at 637.17 points; down by 0.62% than the previous week. While the week witnessed active trading and small- volume transactions on the blue-chips and other stocks in the market. With medium liquidity levels for a period of time; the investors’ expectations and behaviors- with their different types- in Palestine Stock Exchange PEX vary, but in all stages; expectancy towards annual yield is the preponderance based on the quarterly financial disclosures, and this grants the PEX its uniqueness and results into stability- even if gradually. And despite the different and varied investors' motives in the PEX, but the current recorded price levels by the companies’ stocks are considered attractive to buy given the competitive reported market indicators after the accumulated profits over the first nine months. Basically, all the elements of the market are waiting for new data to be a foundation stone for the continuation of a gradual climb in the PEX, which in turn also needs new liquidity with a leverage nature to support the desired price momentum.

Regarding a report by Palestine Monetary Authority, forecasts show expecting high inflation in the third quarter 2022, reaching around 4.10%. This mainly results after recording inflation of 3.90% in the second quarter; the highest since 2010. The reasons behind this mainly come from the increased commodity prices in the market worldwide, particularly energy and food. And also due to the Russian-Ukrainian war and supply chain crisis, leading to an increase in the cost of imports and the prices for the majority of goods in the Palestinian consumer basket. While forecasts show that the year 2022 as a whole is expected to record inflation of 3.80% on average compared to the previous year. However, these forecasts remained vulnerable to some risks, such as those associated with higher than expected domestic demand and global prices, leading to a further rise in inflation, up to 4.20% in 2022. While lower than expected decline will drive inflation to slow slightly to about 3.40% over the same period.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, exports decreased in July, 2022 by 7% compared to June, 2022. While it increased by 12% compared to July, 2021 and reached $122.5 million. On the other hand, imports increased in July, 2022 by 5% compared to June, 2022. It also increased by 35% compared to July, 2021 and reached $685 million. While the trade balance which represents the difference between exports and imports showed an increase in trade deficit by 8% in July, 2022 compared to June, 2022. It also increased by 42% compared to July, 2021 and reached $562.5 million.




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