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The WASSEL Administration Board Decides to liquidate the traded equity portfolio and focus on investment in operational activities and the territorial expansion.

2007-08-22

The WASSEL Administration Board Decides to liquidate the traded equity portfolio and focus on investment in operational activities and the territorial expansion.

Abdel Malik Jaber, chairman of WASSEL, announced yesterday that the administration board decided to focus on investments in operational activities and the company’s expansion in neighboring countries and focus on the liquidation of the traded equity portfolio, which suffered big losses last year similar to the other companies due to the sharp decline in equity prices. The WASSEL portfolio concentrated on four companies’ shares: PADICO, PALTEL, GMC and AIB. Aljaber, who was speaking at a meeting in Ramallah discussing the financial results of last year stated, “The Administration Board decided to liquidate the traded equity portfolio, this will take place once stock prices improve rather than immediately in order to reduce losses as much as possible”. WASSEL maintains the maintenance of the purpose of the equity trading valuing 1 million JD, suffering a loss amounting to 1.66 million JD last year. Aljaber stated,”The Administration Board is constantly reviewing the stock losses situation as a lesson for the board, therefore the orientation of this new investment is expanding the company’s major activities in addition to territorial expansions.” He added,”We are waiting for the appropriate opportunity to get out of the portfolio. We expect an improvement in stock prices due to the new political developments.” Aljaber said that the founders of the company worked on establishing the strategic vision.” A new concept of comprehensive logistics services missing from the Palestinian market has been introduced.” In addition to the Palestinian Territories , the company opened branches in Jordan, Egypt and UAE. Aljaber said,”We’ve become the second company to provide logistics services and ancillary services in Jordan , and we are expanding in other countries during this current year.” The audited financial statement of the company showed that operating earnings exceeded 2 million JD last year, but a net loss of 1.63 million JD, resulting particularly from losses of the traded equity portfolio (approximately 1.66 million JD), and the direct costs of operations (about 1 million JD).The total assets of the company amounted to 8.52 million JD at the end of last year, and the rights of shareholders about 6.18 million JD. The assembly ratified the regular balance sheet of the company for 2006 and reports from the company’s auditors. On the other hand, the general authority for WASSEL held a meeting at the request of the capital market where the contract has approved the amendment to add some items: the activities of assistance to secure and provide funds for pensions, except compulsory insurance, and brokerage services or agencies insurance, car rental tourism. The company announced earlier that it had achieved a net profit hit 53.6 thousand dinars in the first half of the current year