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Stock prices return to the levels of 2004 and create vast opportunities for repurchasing

2008-11-30

"What is happening (in the Palestinian stock market) is not understandable at all, the banking system is good, lending is available, and we do not suffer of liquidity crisis or decline in economic activity, and public spending is rising, and the real estate sector is in a major expansion, the loan guarantee programs have multiplied dozens of times, and there is no single company that suffers from a crisis, so why there is a significant decline?". That was what Dr.Amin Haddad the general manager of the Palestinian Banking Corporation had expressed about his surprise regarding the continuing series of bleeding in the Palestinian Stock Market, which had ignored the assurances from the officials and economists and academics. And the weirdest matter is to ignore the most surprising performance that had been showed by the companies" disclosures which are moving towards unprecedented profits this year. Despite the performance of the companies and all assurances, with the closure of last week"s trading the share prices returned to the levels of 2004, erasing the huge gains they achieved in 2005 and the first half of this year. In the last week the Palestinian shares lost approximately $188 from its market capitalization due to a decline in Al-Quds index by %10.69 to close at the level of 416.90 points which is the minimum level that had reached since 26 August 2007.