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2019-03-21
Sahem Weekly Trading Report (17-21)-03-2019
The trading in Palestine Stock Exchange PEX in this week witnessed a momentum in executing several institutional transactions on some leading companies and others amid an acceleration in announcing the dividends distribution proposals to the shareholders for the year 2018. Whereby, several transactions were executed on the stocks of the largest bank in the PEX in terms of market capitalization – Bank of Palestine BOP- of more than 0.90 million shares, in addition to executing a transaction of more than 0.98 million shares on the stocks of Wataniya Palestine Mobile Telecommunications OOREDOO. In another context, Al-Quds Index closed with an increase of 0.80% than its previous weekly closing level, closing at the level of 549.24 points. Whereby, this period of time witness liquidity circulation that falls within the investors’ routine investment positions changing in the period that precede the general assembly meetings. With the dividends’ distribution approvals in the coming week, the stocks that distribute dividends will witness an automatic decline in price in the days that follow the distribution decision date by a percentage that approximates its dividends yield in order to meet the equivalent price. This scientifically is attributed to the fact that the stock price that holds the cash dividends prior to the general assembly meeting date is not equivalent to the price that doesn’t hold these dividends after the entitlement.
In waiting for new positives with the approaching end of Q1 2019 to start the anticipation for the quarterly financial data, the investors’ appetite is still open to grab investment positions’ opportunities. A category of speculators may prefer to sell when the dividends’ proposals are announced in order to reposition themselves after the distribution, while, other category may increase the purchasing orders with the increase in expectations regarding the dividends’ recommendations. This week, the number of companies that raised recommendations regarding the dividends’ distribution increased to 17 companies till this moment; four banks, six industrial companies- one has approved its dividends distribution proposal-, four insurance companies, two investment companies and one service company. During this week, the board of directors BOD of Birzeit Pharmaceuticals Company BPC raised a recommendation to the general assembly GA, which will be holding a meeting on 22/04/2019, to distribute 15% cash dividends for the year 2018, to record dividends yield of 2.90% based on the current market price. Also, the BOD of Palestine Investment Bank PIBC raised a recommendation to the GA, which will be holding a meeting on 23/04/2019, to raise the paid-up capital from $75.00 million to $78.00 million through distributing 4% stocks dividends for its shareholders. It also proposed distributing 4% cash dividends for the year 2018, to record dividends yield of 3.39% based on the current market price.
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