Sahem Weekly Trading Report (03-07)-12-2023

With the start of December and approaching end of the year 2023, Al-Quds Index traded in a relatively wide range, closing at 571.02 points; down by 1.63% than the previous week. However, the general liquidity in Palestine Stock Exchange PEX was scarce, lacking any institutional transactions that may raise the trading value in the PEX from time to time. This resulted from the continuous Gaza War and absence in the general incentives in the PEX, in addition to the decline in the investors’ appetite that was touched through the slow transactions. On the other hand, most of the leading stocks- with heaviest weights and effects on Al-Quds Index- acquired the majority of trading in the PEX despite its scarceness, and in parallel to the routine anticipation of the trading types for the end of the year.

Regarding the listed companies disclosures for this week, Jerusalem Pharmaceuticals Company JPH disclosed posting net income attributable to the shareholders of the parent company by $5.38 million in 9M 2023, compared to $4.08 million in 9M 2022. This resulted from decreasing the company’s costs and expenses, in addition to recording other profits. Based on the disclosed figures, JPH posts book value BV of $3.52 and P/BV of 1.05x. Moreover, Sanad Construction Resources Company SANAD noted realizing net loss of $0.83 million in 9M 2023, compared to net loss of $4.10 million in 9M 2022. This mainly resulted from a decline in the company’s expenses and the provision of expected credit loss by 56.54%. Based on the disclosed figures, SANAD posts BV of $0.93, and P/BV of 2.37x.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Industrial Production Index IPI in Palestine reached 82.13 during October 2023 with a sharp decrease of 25.11% compared to 109.67 in September 2023 (Base Year 2019). This came as a result of the Israeli aggression on Gaza Strip which led to cessation of working facilities inside the Strip, and also caused a decline in the production of most of the establishments in the West Bank due to the cessation of exports. IPI for October 2023 sharply decreased due to the sharp decrease in the activities of electricity, gas, steam and air conditioning supply by 35.97%, which had a share of 7.38% of the total industry, the activities of mining and quarrying by 27.72%, which had a share of 2.89% of the total industry, the activities of manufacturing industry by 24.07%, which had a share of 87.89% of the total industry, and the activities of water supply, sewerage, waste management and remediation by 11.50%, which had a share of 1.84% of the total industry.