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The PEX records average PE of 12.7x and average P/BV of 1.34x in 2022

2023-03-02

Sahem Weekly Trading Report (26-02)-(02-03)-2023

Al-Quds Index declined by 0.31% than the previous week after trading in a relatively narrow range; closing at 657.34 points. This came mid medium-volume transactions. On the other hand, with the disclosures’ completion of 47 companies out of 47 listed companies required to disclose their data for 2022, the PEX records an average PE ratio of 12.7x and an average P/BV of 1.34x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 34.09% from total disclosed companies’ profits attributable to the parent companies; the largest percentage among all sectors. Whereby, all of the companies that disclosed their data in the sector recorded profits in 2022. According to the disclosed data, the average PE of the sector records 10.5, and average P/BV reached 1.11x. This came due to the increase in the sector’s profits attributable to the parent companies by 32.18%. While, Bank of Palestine BOP constitutes the lion’s share of 45.53% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 5.22% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where 88% 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 increased by 68.15% in 2022. According to the disclosed data, the insurance sector records an average PE of 13.1x, and an average P/BV of 1.24x.

In the services sector, all of the sector’s companies disclosed their 2022 financial results; where the services sector contributed by 32.08% from the total disclosed companies among all sectors in the PEX. Where 78% of the disclosed companies in the sector achieved profits attributable to the parent companies in 2022, whereas, 22% of the disclosed companies in the sector realized net losses in 2022. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 73.08% from the total sector’s profits attributable to the parent companies, in which increased in total by 4.46% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 12.4x, and average P/BV of 2.45x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 17.78% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies increased by 3.14% in 2022. Where the sector records an average PE of 17.9x, the highest among all sectors, and average P/BV of 1.04x, the lowest among all sectors. Regarding the Industry sector, it witnessed a decline in the sector’s profits attributable to the parent companies by 19.09% in 2022; constituting 10.84% 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 47.45% 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 12.1x, and average P/BV of 1.26x.