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Al-Quds Index in the red zone with the start of August

2024-08-01

 Sahem weekly trading report (28-07)-(01-08)-2024

With the start of August, the trading pace in Palestine Stock Exchange PEX didn’t differ than the other weeks; it is still weak and lacks any momentum and institutional transactions that may raise the trading value in the PEX from time to time. While Al-Quds Index traded in a relatively narrow range, standing still, with no significant change than the previous weeks, to close in the red zone. Where the performance of one share of the listed companies didn’t shine than any other, while, some of the leading stocks of heaviest weights in the Index stabilized and slightly increased. On another hand, the listed companies continued scheduling their board of directors meetings, in order to discuss their financial data for the first half of the current year to disclose them, where the anticipation increases, while only one company disclosed its H1 2024 financial data till this moment.

Regarding the listed companies financial and operational data disclosures for H1 2024, Wataniya Palestine Mobile Telecommunications OOREDOO was the first to disclosure its data. Whereby it disclosed posting net income of $7.00 million in H1 2024 compared to net income of $9.26 million in the corresponding period of 2023. This mainly came due to the decline in the company’s revenues, and recording impairment losses and impairment in the value of trade and other receivables.  Based on the disclosed figures, OOREDOO posts book value of $0.54, and P/BV of 1.46x. It also records earnings per share EPS of $0.024 and P/E of 16.46x. In the same context, the coming weeks are expected to witness a momentum in H1 2024 financial data disclosures, whereby, the disclosures periods was postponed to 15/09/2024.

Regarding the economic indicators and according to the Palestinian Central Bureau of Statistics PCBS, the overall Producer Price Index (PPI) for Palestine with its base year (2019) reached 133.25 in June 2024, as it decreased by 0.87% compared to May 2024. It is worth noting that the relative distribution in production, which is represented by the Producer Price Index (PPI) in all economic activities, where the West Bank represents 90% of it compared to 10% in Gaza Strip. Therefore, the main impact in determining the direction of the PPI is based on price changes in the West Bank, at the level of all activities represented by the Producer Price Index. As a result of the ongoing Israeli occupation aggression on Gaza Strip, it is estimated that the quantities of industrial and agricultural production have decreased by about 95%, which includes the cessation of production in many activities; thus, the impact of product price changes in Gaza Strip on the overall PPI diminishes to less than 2%.