RAMALLAH, Tuesday, September 22, 2020 (WAFA) – Trading at the Palestinian stock market, Palestine Exchange (PEX), has declined in the first eight months of this year by 70% compared to the corresponding period last year, today said Ahmed Oweida, PEX Chief Executive Officer.
He told Voice of Palestine radio that the average value of one-session of trading for the year 2020 has decreased to about one million dollars, which is a continuation of the decline over the previous years.
Oweida described the year 2020 as an "exceptional year by all standards, not only in the Palestine Exchange but in all stock markets of the world due to the Corona pandemic and its repercussions on the economy, which was directly reflected on the liquidity and the trading of Palestinian stocks."
He explained that the semi-annual disclosures of the listed companies showed a decline in their profits and financial performance, pointing out that "the performance of the Palestine Exchange was similar to a large number of Arab stock markets because all stock markets have headed in the same direction and (PEX’s) Al-Quds Index lost more than 15% of its value since the beginning of this year."
Oweida attributed the decline in the profits of Palestinian companies to a significant contraction in the economy, in addition to the repercussions of the Corona pandemic and the inability of the State of Palestine to pay its financial dues, including the salaries of its employees, not to mention the political crisis and its implications.
He stressed that the Palestinian economy "is going through a real liquidity crisis," indicating that recovery of the stock market is linked to the end of the Corona pandemic, finding a solution to the financial crisis afflicting the State of Palestine, and a general political and economic breakthrough.