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The PEX records average PE of 12.1x and average P/BV of 1.31x in H1 2023

2023-08-24

 Sahem Weekly Trading Report (20-24)-08-2023

In this week, Al-Quds Index recorded a decline of 0.66% than the previous week, to close at 643.50 points. While Palestine Stock Exchange PEX witnessed executing a transaction of 2.51 million shares on the leading stock of the Arab Palestinian Investment Company APIC, and a transaction of 0.38 million shares on the stocks of Palestine Development and Investment Company PADICO. And except the insurance sector, and with the disclosures’ completion of 40 companies out of 41 listed companies in the other sectors required to disclose their data for H1 2023, the PEX records an average PE ratio of 12.1x and an average P/BV of 1.31x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 41.27% 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 H1 2023. According to the disclosed data, the average PE of the sector records 8.7x, and average P/BV reached 1.05x. This came due to the increase in the sector’s profits attributable to the parent companies by 22.25%. While, Bank of Palestine BOP constitutes the lion’s share of 49.00% from the total achieved profits attributable to parent companies in the sector.

In the services sector, 90% of the sector’s companies disclosed their H1 2023 financial results; where the services sector contributed by 29.12% from the total disclosed companies among all sectors in the PEX, while one company couldn’t disclose its data within the granted period. Where 89% of the disclosed companies in the sector achieved profits attributable to the parent companies in H1 2023, whereas, 11% of the disclosed companies in the sector realized net losses in H1 2023. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 65.27% from the total sector’s profits attributable to the parent companies, in which declined in total by 6.60% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 14.1x, and average P/BV of 2.46x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 20.79% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies increased by 20.55% in H1 2023. Where the sector records an average PE of 15.0x, the highest among all sectors, and average P/BV of 0.99x, the lowest among all sectors. Regarding the Industry sector, it witnessed a decline in the sector’s profits attributable to the parent companies by 6.75% in H1 2023; constituting 8.81% 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 51.35% from total sector’s profits attributable to the parent companies. Accordingly, the Industry sector records an average PE of 14.9x, and average P/BV of 1.23x.