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General anticipation with the approaching year end

2016-12-15

Sahem Weekly Trading Report (12-15)-12-2016

Amid prediction and uncertainty in the international and regional stock markets prior to the Federal Reserve Bank meeting and the witnessed fluctuations after their decision to raise the interest rate by a quarter of a percent rate, in parallel to good expectations regarding the labour market and inflation rate in the United States of America, Palestine Stock Exchange PEX isolated itself from the external influences within its unique entity. Whereby, Al-Quds Index closed, in this week with 4 trading sessions, at the level of 528.54 points; down by 0.11% than its previous closing level, after trading in a relatively narrow price range, and affected by the varied declines of the heaviest weighted stocks in the index. Regarding the liquidity, it didn’t witness any changes in its levels than the previous week; however, the PEX is currently witnessing an increase in anticipation with the approaching end of the current year for what may accrue in the last trading sessions.

Regarding the significant news, the general assembly of the Arab Palestinian Investment Company APIC approved in its extraordinary meeting on 08/12/2016 issuing bonds worth $35 million that are not convertible into shares and not listed or traded on any stock exchange with a 5 year term and bullet repayment. Based on the company’s disclosure, the bonds will be issued through a private offering, however, the issuance proceeds will be utilized and used for repaying the existing bonds which will mature by the end of January 2017, settling of existing term loans, raising the registered share capital of APIC’s subsidiary- The Arab Leasing Company- and financing other investments of the company, in addition to other general corporate use.  On the other hand, the general assembly ratified the authorization of the Chairman to proceed with all the issuance procedures of the bonds and carry out all the procedures relating to the repayment of the existing bonds and the mechanism for doing so.

According to this week’s trading, the leading stock of the Arab Palestinian Investment Company APIC topped the PEX when its transactions constituted 22.39% from PEX total trading value, to close at the level of $1.91, without any change than its previous closing level. The stock of the largest company by market capitalization- Palestine Telecommunications PALTEL-followed, when its transactions constituted 20.51% from PEX total trading value, to close at the level of JD5.05; down by 0.98% than its previous closing. Furthermore, trading was active on the stocks of the banking sector, whereby, the transactions of the Islamic Bank of Palestine ISBK constituted 14.32% from total trading value, to stabilize at the level of $1.70, without any change than its previous closing level. Moreover, the stock of the largest bank by market capitalization- Bank of Palestine BOP- increased by 0.38%, to close at the level of $2.62 through transactions that constituted 16.73% from PEX total trading value. On the other hand, the stock of Palestine Development and Investment Company PADICO closed at the level of $1.15; up by 0.88% than its previous closing level and through weak transactions worth $0.04 million.