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Sahem Weekly Trading Report (07-11)-02-2016
With the approaching end of the legal period granted to the listed companies to disclose their preliminary annual financial data, the investors’ anticipation accelerated during the week to prevail an inactivity state again in the market, which in turn is slow in filling orders and weak in the price depth, in parallel to some exceptions for some companies that have already disclosed its financial data and their strategies for distributing dividends. In terms of prices, Al-Quds Index maintained its stability in coherent range giving the ability of the heavy weighted leading shares to control prices among the last weeks despite the lack of investment environment drivers in general.
Regarding the disclosures during the week that were slow in pace, while, in turn the coming week will witness high disclosures’ momentum, the Arab Palestinian Investment Company APIC was the first to disclose its financial data between the leading companies. It noted posting net income of $12.41 million at the end of 2015; up by 9.40% than the year 2014. It recorded $7.16 million net income attributed to the shareholders of the parent company; reporting earnings per share EPS of $0.119. Accordingly, APIC records BV of $1.36 , P/BV of 0.86x and PE ratio of 9.83x. In the same context, Palestine Securities Exchange Company PSE – the operator of Palestine Stock Exchange PEX- noted posting net income of $0.37 million at the end of 2015; up by 54.04% than the year 2014. This growth followed achieving non-operating revenues that covered the decrease in the operating revenues. These revenues include investment revenues of the financial assets at amortized costs in addition to rent revenues of their previous branch. Accordingly, PSE records BV of $1.07, P/BV of 4.63x and PE ratio of 133x.
Regarding the distinguished disclosures in the week, the Arab Islamic Bank AIB announced posting net income of $5.20 million at the end of 2015; up by 25.95% than the year 2014 due to a sharp increase in gross revenues. Accordingly, AIB reports BV of $1.38, P/BV of 1.12x and PE ratio of 14.90x. Moreover, the Vegetable Oil Industries Company VOIC noted recording net income of JD5.36 million; up by 9.81% than the year 2014. This was attributable to an increase in the company’s stake of its subsidiaries’’ profits and its available for sale investments despite the decrease in operating income. It is worth mentioning that VOIC trades on P/BV of 7.28x and PE ratio of 1.67x after reporting BV of JD5.82 at the end of 2015. From the distinguished disclosures, the announcement of Palestine Electric Company PEC of posting a sharp increase of 624% in its net income for the year 2015 when reached $13.65 million compared to the year 2014, which in turn witnessed loss of assets’ disposal due to the Israeli aggression last year. Accordingly, PEX records P/BV of 5.29x.