Palestine – The Al-Quds Index on the Palestine Stock Exchange has declined by nearly a quarter since the outbreak of the Israeli war on Gaza on October 7, 2023, amid a negative mood dominating the market.
The Al-Quds Index on the Palestine Stock Exchange includes the most active companies in terms of the value of shares traded throughout the year, the number of shares traded, the number of transactions, the number of trading days, the share turnover rate, and the market value of the companies.
** Sharp decline
An Anadolu Agency survey based on data from the Palestine Stock Exchange shows that the Al-Quds Index fell by 25 percent to 494.5 points at the end of the session on September 11, compared to the session on the eve of October 7, which amounted to 654.3 points.
The index reading recorded at the end of Wednesday’s session is considered at its lowest levels since May 2021, with the exception of the months of the Israeli war on Gaza.
In contrast, the market value of listed companies fell by 19.8 percent since the last session before October 7, settling at $4 billion, down from $5.02 billion.
The developments witnessed in the West Bank were reflected in the market and investor sentiment in the Palestine Stock Exchange, with the Al-Quds Index declining by 5.6 percent since the beginning of July until Wednesday’s session.
The West Bank is witnessing an escalation in the confrontation with the Israeli army, which has carried out operations and invasions of Palestinian cities and camps during the past weeks, amid the absence of any horizon for ending the tensions.
** Crisis management
Due to the war and its consequences, a package of decisions was issued by the Palestine Stock Exchange, granting companies a longer opportunity to disclose their financial results, especially those operating in the West Bank and Gaza Strip.
While the 49 companies listed on the Palestine Stock Exchange were supposed to finish disclosing their financial results for the first half of 2024, earlier in August, some of them have not disclosed the results to this day.
The companies listed on the Palestine Stock Exchange are distributed across 5 main sectors: banks and financial services, insurance, investment, industry, and services.
At the end of last June, the Palestine Stock Exchange announced receiving financial data for the first quarter of 2024 from 47 out of 49 companies listed on the exchange.
The quarterly financial statements revealed that the listed companies recorded net profits of nearly $52 million for the first quarter of 2024, compared to $100 million for the same period in 2023, a decrease of 47 percent.
The stock exchange justified the decline in profits at the time as “a natural result of the effects of the Israeli aggression on the Gaza Strip, and the accompanying measures in the West Bank.”
Israel has placed more than 700 checkpoints, gates and earthen mounds between the cities and villages of the West Bank, in addition to restrictions on movement from Palestine to Israel, which has brought the economic cycle to a halt.
** Bright spot
Despite the decline in the investment environment in Palestine, due to the war and tensions in the West Bank, companies were able to attract new investments to the local market during the current year.
At the end of last August, the Bank of Palestine, the International Finance Corporation, and the European Bank for Reconstruction and Development announced the signing of an agreement through which each of the two institutions would invest in the Bank of Palestine.
The investment was made through a private issue of shares, exceeding 22.5 million shares and worth nearly $40 million. The agreement aims to support Bank of Palestine’s efforts in banking sustainability and regional expansion.
Thus, the two global financial institutions have become shareholders of approximately 9 percent of Bank of Palestine, which is considered the largest bank in the country in terms of facilities, deposits, assets and geographical spread.
By the end of the first quarter of 2024, Bank of Palestine’s assets approached $7.3 billion, representing nearly a third of the assets of the Palestinian banking sector, which consists of 13 local and foreign banks, during the same period.
While the bank’s customer deposits jumped for the first time above the $6 billion barrier, representing nearly 24 percent of the total deposits of the Palestinian banking sector, by the end of the first quarter.
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2024-09-15 20:18:08
– What factors led to the 25% decline of the Al-Quds Index amid the Israeli war on Gaza?
Table of Contents
Palestine’s Economic Woes: Al-Quds Index Plummets by 25% Amid Israeli War on Gaza
The Palestine Stock Exchange has witnessed a significant decline in its Al-Quds Index, plummeting by nearly a quarter since the outbreak of the Israeli war on Gaza on October 7, 2023. The index, which includes the most active companies in terms of share value traded, has fallen to its lowest levels since May 2021, excluding the months of the Israeli war on Gaza.
Sharp Decline in Market Performance
According to data from the Palestine Stock Exchange, the Al-Quds Index fell by 25% to 494.5 points at the end of the session on September 11, compared to the session on the eve of October 7, which amounted to 654.3 points. Moreover, the market value of listed companies has also taken a hit, declining by 19.8% since the last session before October 7, settling at $4 billion, down from $5.02 billion.
West Bank Tensions Reflected in Market Sentiment
The ongoing escalation in the West Bank, with the Israeli army carrying out operations and invasions of Palestinian cities and camps, has significantly impacted market sentiment. The Al-Quds Index has declined by 5.6% since the beginning of July until Wednesday’s session, reflecting the negative mood dominating the market.
Crisis Management Measures
In response to the war and its consequences, the Palestine Stock Exchange has taken measures to alleviate the burden on listed companies. A package of decisions has been issued, granting companies a longer opportunity to disclose their financial results, especially those operating in the West Bank and Gaza Strip. This move is aimed at providing companies with more time to adjust to the new reality and minimize the impact of the war on their financial performance.
Challenges Faced by Listed Companies
The 49 companies listed on the Palestine Stock Exchange, distributed across 5 main sectors, including banks and financial services, insurance, investment, industry, and services, have been struggling to disclose their financial results amidst the conflict. While some companies have managed to release their financial statements, others have not, citing the difficulties imposed by the war.
Quarterly Financial Statements Paint a Gloomy Picture
At the end of last June, the Palestine Stock Exchange announced receiving financial data for the first quarter of 2024 from 47 out of 49 companies listed on the exchange. The quarterly financial statements revealed that the listed companies recorded net profits of nearly $52 million for the first quarter of 2024, compared to $100 million for the same period in 2023, a decrease of 47%. The stock exchange attributed the decline in profits to the effects of the Israeli aggression on the Gaza Strip and the accompanying measures in the West Bank.
Bright Spot: New Investments in the Local Market
Despite the challenging investment environment in Palestine, companies have been able to attract new investments to the local market during the current year. The Bank of Palestine, the International Finance Corporation, and the European Bank for Reconstruction and Development recently signed an agreement, through which each of the two institutions would invest in the Bank of Palestine. The investment aims to support the bank’s efforts in banking sustainability and regional expansion.
Conclusion
The Palestine Stock Exchange’s Al-Quds Index decline is a reflection of the dire economic situation in Palestine, exacerbated by the ongoing Israeli war on Gaza and the tensions in the West Bank. While the investment environment in Palestine has been affected by the conflict, there are still opportunities for growth and development. The recent investment in the Bank of Palestine is a testament to the resilience of the Palestinian economy and its ability to attract new investments despite the challenging circumstances.
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Palestine Stock Exchange (5)
Al-Quds Index (4)
Israeli war on Gaza (3)
West Bank (3)
Listed companies (3)
Financial results (2)
Crisis management (2)
Investment (2)
Bank of Palestine (2)
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Al-Quds Index
Israeli war on Gaza
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What factors contributed to the sharp decline of the Al-Quds Index in the Palestine Stock Exchange during the Israeli war on Gaza?
Palestine Stock Exchange in Crisis: Al-Quds Index Plummets amid Israeli War on Gaza
The Palestine Stock Exchange, a crucial financial hub in the region, is facing a severe crisis as the Al-Quds Index has plummeted by nearly a quarter since the outbreak of the Israeli war on Gaza on October 7, 2023. The index, which tracks the performance of the most active companies listed on the exchange, has fallen to its lowest levels since May 2021, sparking concerns about the stability of the Palestinian economy.
Sharp Decline in Al-Quds Index
According to data from the Palestine Stock Exchange, the Al-Quds Index has declined by 25% to 494.5 points at the end of the session on September 11, compared to the session on the eve of October 7, which amounted to 654.3 points. This sharp decline is attributed to the negative sentiment prevailing in the market, fueled by the ongoing Israeli war on Gaza and the escalating tensions in the West Bank.
Market Value of Listed Companies Falls
The market value of listed companies has also taken a hit, falling by 19.8% since the last session before October 7, settling at $4 billion, down from $5.02 billion. This decline is a clear indication of the impact of the current crisis on investor confidence and the overall health of the Palestinian economy.
Crisis Management Measures
In response to the crisis, the Palestine Stock Exchange has taken measures to mitigate the impact of the war on listed companies. These measures include granting companies a longer opportunity to disclose their financial results, especially those operating in the West Bank and Gaza Strip. The exchange has also allowed companies to delay the disclosure of their financial results due to the exceptional circumstances.
Quarterly Financial Statements
The quarterly financial statements of listed companies revealed that they recorded net profits of nearly $52 million for the first quarter of 2024, compared to $100 million for the same period in 2023, a decrease of 47%. The decline in profits was attributed to the effects of the Israeli aggression on the Gaza Strip and the accompanying measures in the West Bank.
Bright Spot in a Gloomy Market
Despite the dire situation, there is a glimmer of hope in the Palestinian market. The Bank of Palestine, the International Finance Corporation, and the European Bank for Reconstruction and Development recently announced an agreement to invest in the Bank of Palestine. The investment, worth nearly $40 million, aims to support the bank’s efforts in banking sustainability and regional expansion.
Conclusion
The Palestine Stock Exchange is facing an unprecedented crisis, with the Al-Quds Index plummeting to its lowest levels in over two years. The ongoing Israeli war on Gaza and the escalating tensions in the West Bank have eroded investor confidence, leading to a decline in the market value of listed companies. However, the crisis management measures taken by the Palestine Stock Exchange and the investment in the Bank of Palestine offer a glimmer of hope for the Palestinian economy.
Optimized Keywords: Palestine Stock Exchange, Al-Quds Index, Israeli war on Gaza, West Bank, crisis management, financial statements, Bank of Palestine, investment, Palestinian economy.
Meta Description: The Palestine Stock Exchange is in crisis as the Al-Quds Index plummets amid the Israeli war on Gaza. Read more about the impact of the crisis on the Palestinian economy and the measures taken to mitigate its effects.
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H1: Palestine Stock Exchange in Crisis: Al-Quds Index Plummets amid Israeli War on Gaza
H2: Sharp Decline in Al-Quds Index
H2: Market Value of Listed Companies Falls
H2: Crisis Management Measures
H2: Quarterly Financial Statements
H2: Bright Spot in a Gloomy Market
* H2: Conclusion
