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2015-06-04
Weekly Trading Report [31/05-04/06/ [2015
In the middle of the year, the wave of holding the general assembly GA meetings for the listed companies in order to distribute dividends receded, while, new anticipations appear towards the mid-year financial data disclosures or the approaching of important entitlements in Palestine Stock Exchange PEX in September. What resulted from these meetings is a supporting element for what will be achieved by the PEX of being listed on international indices in the medium run, because of its effect on the investment decision making, parallel to dragging the attention of the world for the opportunities in the PEX. In this context, the average dividends yield of the listed companies reached 6.16% for the year 2014; calculated by dividing the total cash dividends distributions by the market capitalization of the companies that distributed cash dividends for the year 2014. In this way, the PEX status is strengthened on the international investment funds’ screens in terms of the investment feasibility due to the competitiveness in the attraction indicators, especially after meeting the qualities of markets criteria, including: regulatory environment, capital controls, clearing & settlement, and market transparency. Accordingly, optimism dominates for the results of the inclusion in the international indices prior to the end of the current year.
The average dividends yield for the year 2014 is higher by 3.70% than the year 2013 due to the decrease in market capitalization in the PEX by 1.85% between the two years. Accordingly, the high-market capitalization stocks constituted the highest weights in the weighted average. The individual dividends yield for each stock that distributed cash dividends ranged between 11% and less than 5%, while 13 companies out of 20 companies that distributed dividends recorded dividends yield of more than 5%. According to the PEX’s CEO, the dividends distribution and yields are rewarding despite the economics and political challenges facing Palestine that are represented by the political deadlock, Gaza war, halting the reconstruction of Gaza after the war, delaying transferring the taxes to the Palestinian Authority by Israel and the currency exchanges’ fluctuations .
On the other hand and regarding the trading in the PEX during the week, the trading indicators are still weak and lacking the momentum. Whereas, Al-Quds Index slightly decreased to close in the red zone; declining below the 480 points, parallel to slowness in executing the trading movements and high-volume transactions on some stocks. Regarding the price trends, the decrease in Palestine Telecommunications PALTEL’s stock was the main reason for the decrease in the Index, versus an increase in the leading stocks of Palestine Development and Investment Company PADICO and Bank of Palestine BOP.
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