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The PEX records average PE of 12.4x and average P/BV of 1.51x in 9M 2022

2022-12-01

Sahem Weekly Trading Report (27-11)-(01-12)-2022

Al-Quds Index recorded gains of 1.51% than the previous week after trading in a relatively wide range; closing at 639.26 points. This came due to the increase in the prices of most blue-chips with heaviest weights and effects in Al-Quds Index. On the other hand, with the disclosures’ completion of 48 companies out of 49 listed companies required to disclose their data for 9M 2022, the PEX records an average PE ratio of 12.4x and an average P/BV of 1.51x.

Regarding the data of the PEX’s sectors, the banking and financial services’ sector contributed in 33.88% from total disclosed companies’ profits attributable to the parent companies. Whereby, all of the companies that disclosed their data in the sector recorded profits in 9M 2022. According to the disclosed data, the average PE of the sector records 10.2, and average P/BV reached 1.14x; the lowest percentage among all sectors. This came due to the increase in the sector’s profits attributable to the parent companies by 24.06%. While, Bank of Palestine BOP constitutes the lion’s share of 46.98% from the total achieved profits attributable to parent companies in the sector. In the same context, the insurance sector contributed in 3.86% from total disclosed companies’ profits attributable to the parent companies; the lowest contribution among other sectors. Where 63% of the disclosed companies in the sector recorded an increase in their profits attributable to the parent companies. However, the sector’s profits attributable to the parent companies increased by 77.31% in 9M 2022. According to the disclosed data, the insurance sector records an average PE of 17.4x, and an average P/BV of 1.27x.

In the services sector, all of the sector’s companies disclosed their 9M 2022 financial results; where the services sector contributed by the highest percentage of 34.27% from the total disclosed companies among all sectors in the PEX. Where 78% of the disclosed companies in the sector achieved profits attributable to the parent companies in 9M 2022, whereas, 22% of the disclosed companies in the sector realized net losses in 9M 2022. Whereby, Palestine Telecommunications Company PALTEL’s profits contributed in 72.81% from the total sector’s profits attributable to the parent companies, in which increased in total by 7.96% compared to the corresponding period of last year. According to the disclosed data, the sector records average PE of 11.1x, and average P/BV of 2.41x; the highest among all sectors.

On the other hand, the investment sector’s profits attributable to the parent companies contributed in 16.17% from the total disclosed companies’ profits attributable to the parent companies. While, the investment sector’s profits attributable to the parent companies declined by 8.48% in 9M 2022. Where the sector records an average PE of 19.8x, the highest among all sectors, and average P/BV of 1.57x. Regarding the Industry sector, it witnessed a decline in the sector’s profits attributable to the parent companies by 7.78% in 9M 2022; constituting 11.82% from total sector’s profits attributable to the parent companies, whereby, Birzeit Pharmaceuticals Company BPC and the Vegetable Oil Industries Company VOIC achieved the highest profits, in which both contributed for 49.45% from total sector’s profits attributable to the parent companies. However, one company couldn’t disclose its data within the granted legal period. Accordingly, the Industry sector records an average PE of 10.8x, and average P/BV of 1.24x.