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Declines in Al-Quds Index and liquidity under the pressure of the general political anticipation

2014-11-20

Weekly Trading Report [16-20/11[2014

The negativity and red closings dominated the trading of this week, coinciding with returning the liquidity levels to a relative weakness in Palestine Stock Exchange PEX that was pursued for a long period before the recovery that has started in the latest months of the year 2013 and continued till the end of the first half of the year 2014. During the week, some leading shares witnessed little cohesion in their indicators without any noticeable momentum, amid a deceleration in investment positions swaps among investors under the pressure of the general political anticipation in Palestine. With growing guesses regarding the security condition in Jerusalem and the slowness in reconstructing Gaza Strip, the investment incentives recede and the PEX enters in dampened price status that is inclined to decline, in waiting for positive factors that are to activate the rebounding attempts. Among the prevailing circumstances and within the varied reasons for lack of liquidity, the fact of liquidity characteristics that is able to compensate this deficit rings the bell again for investors especially that the main reason stems from the political Palestinian unique entity.  

Regarding this week’s trading, Al-Quds Index continued to trade around levels below the 500 points that has abandoned since the first week of the current month, to return exactly to the levels reached 52 weeks ago, which at that time were a starting point for important and active increases wave. The main effect of the decrease in the index was a decline in Palestine Development and Investment Company PADICO’s stock price by 3.79%, when ended its weak trading at the level of $1.27. However, it is witnessed that PADICO’s stock is trading between two important resistance and support levels that need any driver to breakthrough one of them to determine the price trend within an associated liquidity momentum. On the other hand, the heavy weight of Palestine Telecommunication PALTEL share in Al-Quds Index contribute in balancing the price variation for the several previous weeks, to end the week with stability at the level of JD5.43 through scarce trading. Moreover, the 3^rd leading share, the share of Bank of Palestine BOP, ended the week with a slight increase of 0.36% closing at the level of $2.81. 

On the other hand, the significant news of the listed companies subsided during this period. Whereas, some companies determined dates for holding their board of directors BOD meeting in order to discuss the general budget for the year 2015 and strategic plans. In this context, the BOD of PALTEL will be holding a meeting on 02/12/2014, whereby, will revise the financial data till the end of October 2014, in addition to discussing the operating plans and budgets of the group’s companies. On the other hand, the BOD of PADICO will be holding a meeting on 03/12/2014. In another context, Dar Al-Shifa’a for the Manufacturing of Pharmaceuticals PHARMACARE disclosed its 9M financial data after the end of the granted legal period , noting reporting net income of $1.21 million, to record earnings per share EPS of $0.14 and book value BV of $2.58.