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The PEX records average PE of 16.4x and average P/BV of 1.18x in 9M 2023

2023-12-21

 Sahem weekly trading report (17-21)-12-2023

In this week, Al-Quds Index recorded gains of 0.46% than the previous week, to close at the level of 576.46 points. This came amid relatively weak trading that lacks any momentum and the institutional transactions that may raise the trading value in Palestine Stock Exchange PEX from time to time. On the other hand, and with the disclosures’ completion of 47 companies out of 49 listed companies required to disclose their data for 9M 2023, the PEX records an average PE ratio of 16.4x and an average P/BV of 1.18x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 34.37% 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 9M 2023. According to the disclosed data, the average PE of the sector records 13.5x, and average P/BV reached 0.94x. However, the sector’s profits attributable to the parent companies declined by 31.35%. While, Bank of Palestine BOP constitutes the lion’s share of 33.16% from the total achieved profits attributable to parent companies in the sector. In another context, the insurance sector contributed in 2.43% 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 profits in 9M 2023.  According to the disclosed data, the insurance sector records an average PE of 40.3x, the highest among all sectors, and an average P/BV of 1.29x.

In the services sector, 80% of the sector’s companies disclosed their 9M 2023 financial results; where the services sector contributed by 34.02% from the total disclosed companies among all sectors in the PEX, while two company couldn’t disclose their data within the granted period. Where 75% of the disclosed companies in the sector achieved profits attributable to the parent companies in 9M 2023, whereas, 25% of the disclosed companies in the sector realized net losses in 9M 2023. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 77.95% from the total sector’s profits attributable to the parent companies, in which declined in total by 21.44% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 14.4x, and average P/BV of 2.30x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 17.41% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies declined by 29.00% in 9M 2023. Where the sector records an average PE of 23.1x, and average P/BV of 0.87x, the lowest among all sectors. Regarding the Industry sector, it witnessed a decline in the sector’s profits attributable to the parent companies by 8.28% in 9M 2023; constituting 11.77% from total sector’s profits attributable to the parent companies, whereby, Palestine Poultry Company AZIZA and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 60.59% from total sector’s profits attributable to the parent companies. Accordingly, the Industry sector records an average PE of 16.1x, and average P/BV of 1.24x.