Palestine Securities Exchange PSE

Transcription

1 Palestine Securities Exchange PSE

2 Contents Palestine Economy Foreign investment in Palestine Market Highlights Company Highlights Why Invest in Palestine Contacts

3 Palestine Economy Key Economic Indicators Real GDP(USD m) Real GDP growth GDP per capita (USD) Population ('000) Inflation Rate Unemployment rate 12, % 2,944 4, , % 2,852 4, , % 2,864 4, , % 2,923 4, , % 2,923 4, Market Capitalization (USD m) Market Cap /GDP 3, % 3, % 3, % 3, % 3, % GDP Breakdown 2017 Transportation and storage 2.4 Financial and insurance activities 4.3 Agriculture, forestry and fishing 2.6 Information and communication 5.2 Construction 7.4 Other** 13.0 Mining, manufacturing, electricity and water 14.1 Public administration and defense 12.9 Wholesale and retail trade 17.2 Services

4 Foreign Investment in Palestine Q 2018 FDI in Palestine (USD m) 2,450 2,453 2,511 2, Market Capitalization 3,247 3,187 3,339 3,390 3,891 3,891 FI in Equity (USD m) 1,324 1,354 1,321 1,330 1,446 1,411 Foreign ownership of Equity (%) Foreign institutional investors ownership (%) 33.87% 20.61% 36.12% 22.33% 36.86% 22.55% 34.16% % 20.52% 31.78% 23.5 No. of shareholders No.of shares Value (US$) 45% 4 35% 3 25% 2 15% 1 5% Q2018 4

5 MARKET HIGHLIGHTS- PEX at Glance Milestones Strengths Growth Challenges 2017: The agreement with Nasdaq to Buy X-Stream trading System. 2016: : Full member at the World Federation of Exchanges(WFE) - Gained "Frontier Market" exchange at FTSE indices. - Launched e-ipo system-" EKTITAB. 2015: Launched PEX E-disclosure System-IFSAH 2014: - Added Palestine to FTSE indices Watch List - Listing the first corporate bond since inception. 2013: - The highest trading value in one session 48m USD. - Launched the cash settlement through PEX. - S&P and MSCI created a stand alone index for Palestine. 2012: Listing the Palestine Securities Exchange (PSE). 2011: Listing a record seven new companies in one year. 2010: Became a public shareholding company and acquired a new corporate identity. 2009: Rated second among Arab exchanges in providing investor protection. 2007: Launched online trading service (E-Trading). 2006: Launched Investor Education Program. 2005: Al-Quds index rose by 306% achieving the highest value in global markets. 1997: The first trading session is held. 1995: Established as a private shareholding company. The PSE is the National Exchange of Palestine, no other exchange is expected to be established. The PSE has captured most Palestinian Public shareholding companies. Operating cost is declining. The PSE is diversifying its sources of income. High scope for growth (domestic penetration ratio is only of 3% today). The PSE has highly skilled human capital with proven experience. 1. The political conditions and the future uncertainty are the main challenges of the investment environment in Palestine. A positive political move will have an immediate impact on the Palestinian economy. 2. Strong competition with other regional stock markets like Jordan, Egypt & the UAE, since many local investors are active in those markets. 5

6 MARKET HIGHLIGHTS- PEX Structure & Key Indicators Listed Companies Key Indicators Q PEX Structure Banks & Financial Services Sector Trading Value (USD m) Trading Volume ( m) Daily Avg. value (USD m) Transactions # ( 000) Market Cap. (USD m) , , , , , , % 22% 32% 5% Industry Sector Insurance Sector Investment Sector Services Sector 60,000 50,000 40,000 30,000 20,000 10,000 0 Turnover ratio/yearly Number of Trades 15.02% 12.97% 11.08% % % 14% 12% 1 8% 6% 4% 2% Number of Trades Turnover ratio 6

7 Millions (US$) MARKET HIGHLIGHTS- PEX Investors, Trading & Profits Investors No. Key Indicators ,815 73, , , ,811 1Q ,572 Listed Companies net profit USD m Free Float of shares(%) 41.16% 42.35% 42.38% 41.02% 38.78% 38.19% Institutional investors shares ownership (%) 63.93% 62.21% 62.62% 62.79% 66.28% 66.25% Institutional investors (%) of M.Cap 62.15% 62.66% 61.58% 62.48% 64.12% P/E Vs. Value Traded % 13.22% 13.79% 14.56% 13.42% 14.22% 12.41% 11.99% 13.37% 16% 14% 12% % % 4% 2% Value traded P/E 7

8 MARKET HIGHLIGHTS- PEX Trading Average Traded Value Average traded Volume Q2018 8

9 Company Highlights 9

10 COMPANY HIGHLIGHTS - PSE Ownership PSE Ownership Structure as of 31 Dec % 0.23% 2.17% Main shareholders as of 31 Dec PADICO Holding 74.7 Capital Trust Investment Limited 5% Al Sanabil Trading & Investment Co % 17% Others 3.3 Natural Persons Brokerage Firms and Banks Corporations Funds (Pension & investment) 10

11 Alquds Index PSE share price COMPANY HIGHLIGHTS - Share Performance As of 31 March 2018 Name Ticker ISIN No. Market Issue Size High Price (USD) Low Price (USD) Last Price (USD) Traded Value (USD) Traded Shares Palestine Securities Exchange PSE PS Palestine Exchange PEX 10 million Shares During 1Q /01/ /01/ /01/ /01/ /01/ /01/ /01/2018 Al Quds Index 20/02/ /02/ /02/ /02/ /02/ /02/ /02/ /03/ /03/ /03/ /03/ /03/ /03/ No. of Transactions 00 Market Cap ( USD Mn)

12 Millions Company HIGHLIGHTS - Financial Performance Operating income increased qoq in 2018 due to increase in trading value during the 1Q 2018,Op. cost declined(47%) qoq in 2018 USD 000 Operating Income Operating Cost ,289 18, , , , , , , , , , , Revenue Structure Operating Result EBIT 370, , , ,291-12, ,829 40, , , , , , EBITDA 563, , , , , , Net Profit/Loss 443, , ,577 88, , , EPS (USD) Cost Structure Q2017 1Q Q Q Q 2013 Trading and transfer commissions Membership and registration fees Securities collateral commission Other operating revenues Interest revenues Investment revenues Other revenues Q2017 1Q Q Q Q 2013 Salaries and related expenses Other general and administrative expenses Depreciation 12

13 COMPANY HIGHLIGHTS - Main Priorities & Projects 2018 Apply BPM in PEX Depts. Renew & Replace main servers and electronic infrastructure. Co operate with EBRD on a gap analysis study for Palestine securities sector. Target family owned & public companies for listing. Prepare for the new core system (X-Stream). Review laws, regulations and rules in light of the new core system. Go on with the public awareness activities & enhance PEX presence in social media. 13

14 WHY INVEST IN PALESTINE 14

15 WHY PALESTINE - Corporate TAX Income Tax Rate Capital Gains Tax Dividend Tax Rate Palestine 15% Palestine 15% (Suspended) Palestine 5% (Suspended) Jordan 35% Jordan Jordan Egypt 22.5 Egypt 1 Egypt 1 Lebanon KSA Kuwait Qatar UAE Turkey Israel 1 15% 15% % Lebanon KSA Kuwait Qatar UAE Turkey Israel % 2 24% Lebanon KSA Kuwait Qatar UAE Turkey Israel 5% 1 15% 15% 3 Source: World wide Corporate Tax Guide Ernest & Young official website 15

16 WHY PALESTINE - Natural Persons TAX Capital Gains TAX Dividend Tax Rate Palestine 15% (Suspended) Palestine 1 (Suspended) Jordan Jordan Egypt Egypt 1 Lebanon 1 Lebanon 1 KSA KSA 5% Kuwait Kuwait Qatar Qatar UAE UAE Turkey Turkey 15% Israel 25% Israel 25% Source: World wide Personal Tax & Immigration Guide Ernest & Young official website 16

17 WHY PALESTINE - Ease of Doing Business (2017 Ranking) New Zealand UAE Bahrain KSA Jordan Palestine Argentina Iran Brazil Egypt Lebanon Algeria Iraq Sudan Syria Libya Getting Credit Trading Cross Border Source: Doing Business World Bank Group official website. 17

18 WHY PALESTINE - Dividend Yield Vs Interest Rates on Deposits USD Rate JOD Rate ILS Rate Dividend Yield Source: Palestine Monetary Authority - Official Website. 18

19 WHY PALESTINE - PEX Potentials & Opportunities % Dividend Yield 6.11% 5.92% 5.94% 5.58% Net profits Vs Dividends (USD m) Net Profits Dividends 19

20 WHY PALESTINE - Arab Markets Performance 1Q EGYPT TUNIS SUDAN IRAQ SAUDI CASABLANCA AMMAN ABU DHABI KUWAIT BEIRUT DAMASCUS QATAR BAHRAIN PALESTINE MUSCAT DUBAI 20

21 WHY PALESTINE - P/E comparing with Arab Markets Bahrain Beirut Egypt Muscat Qatar Palestine Kuwait Abu Dhabi Saudi Tunis Dubai Casablanca Amman Source: Bloomberg

22 WHY PALESTINE - Dividend Yield Comparing with Arab Markets Source: Bloomberg

23 WHY PALESTINE - Trading Fees Comparison discount is applicable Iraq Palestine Syria Mascut Lebanon Dubai Abu Dhabi Bahrain Qatar Jordan Kuwait KSA Egypt 0 Source: 2016 Trading fees-exchanges Official Websites. 23

24 Contacts Palestine Securities Exchange plc., Mohammad Khraim Manager of Public Relations & Investor Education Nablus- Amman St., Trust Building, 4 th floor P.O Box 128, Nablus-Palestine Tel: +970 (or 972) Fax: +970 (or 972) ir@pex.ps 24