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The PEX records average PE of 26.2x and average P/BV of 1.06x in H1 2024

2024-10-03

 Sahem weekly trading report (29-09)-(03-10)-2024

In this week, Al-Quds Index recorded a decline of 1.01% than the previous week, to close at the level of 479.25 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 H1 2024, the PEX records an average PE ratio of 26.2x and an average P/BV of 1.06x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 12.64% from total disclosed companies’ profits attributable to the parent companies. Whereby, 88% of the companies that disclosed their data in the sector recorded profits in H1 2024, while one bank recorded losses in the mentioned period. According to the disclosed data, the average PE of the sector records 55.3x; the largest among all sectors, and average P/BV reached 0.79x; the lowest among all sectors. However, the sector’s profits attributable to the parent companies declined by 88.55%. While, the National Bank TNB constitutes the lion’s share of 66.46% from the total achieved profits attributable to parent companies in the sector. In another context, the insurance sector contributed in 8.62% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where all companies in the sector recorded profits in H1 2024.  According to the disclosed data, the insurance sector records an average PE of 20x, and an average P/BV of 1.25x.

In the services sector, 80% of the sector’s companies disclosed their H1 2024 financial results; where the services sector contributed by 43.97% from the total disclosed companies among all sectors in the PEX, while two company couldn’t disclose their data within the granted period. Where 63% of the disclosed companies in the sector achieved profits attributable to the parent companies in H1 2024, whereas, 38% of the disclosed companies in the sector realized net losses in H1 2024. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 84.00% from the total sector’s profits attributable to the parent companies, in which declined in total by 32.54% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 17.4x, and average P/BV of 2.04x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 23.09% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies declined by 58.33% in H1 2024. Where the sector records an average PE of 29.1x, and average P/BV of 0.84x. Regarding the Industry sector, it witnessed a decline in the sector’s profits attributable to the parent companies by 51.93% in H1 2024; constituting 11.67% 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 91.95% from total sector’s profits attributable to the parent companies. Accordingly, the Industry sector records an average PE of 26.2x, and average P/BV of 1.10x.