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The market is still waiting the PNA's decision regarding PALTEL-ZAIN deal

2009-02-08
Palestine national authority launched a program to rebuild the destroyed houses by the recent Israeli aggression on the Gaza Strip, costing $ 600 million grants through banks and it is expected to be completed within six months, the Government has allocated 67 million dollars from the general budget for  an emergency relief program that includes cash assistance to owners of damaged houses, ranging between one to five thousand dollars, in addition to the reform of the electricity networks, water and sanitation. The Prime Minister Salam Fayyad said the government has made great strides in reforming the systems of basic services, and will begin within a day or two regarding the assistance to owners of damaged houses. Fayyad said that the package is part of an integrated national agreement to be presented to the donors at a conference in Cairo in March 2, 2009 on the title of Gaza Strip reconstruction. On the other hand, the Government is still considering the entry of Kuwaiti ZAIN as strategic partner in the Palestinian Telecommunications Company PALTEL, and the Minister Kamal Hassouna said the "deal is on a positive track," adding that the Government will decide regarding the deal at its weekly meeting the day after tomorrow, before submitting it to President Mahmoud Abbas. It is scheduled to hold a Board of Directors meeting of PALTEL in Ramallah in Monday to discuss the understandings that were supposed to be reached with the Palestinian National Authority regarding the transaction, as stated in the disclosure of the company that had been published by Palestine Securities Exchange on its website. Meanwhile, the Palestinian stock market continues to interact with the news the deal, raising Al-Quds index by 1.47 points, or %0.29 last week, and closed at the level of 511.69 points, driven by the large gains of  Palestine Development and Investment PADICO- the biggest shareholder of PALTEL, after  the company"s CEO Samir Hleileh assurances that it will not sell any of its shares in the PALTEL and will continue to play an active role in the company"s board of directors that will be resulted from PALTEL-ZAIN partnership. Al-Quds index ascending came despite a decrease in 4 of the sectors indices that are represented in the market, limiting the rise in the investment sector index only. As for PADICO it constituted the main lever to the activity of the market, as the stock accounted for more than 73% of the total value traded during the week.