Identifier
Created
Classification
Origin
06JERUSALEM2443
2006-06-14 14:26:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Jerusalem
Cable title:  

WHERE IS THE BOTTOM? PALESTINIAN STOCK MARKET

Tags:  ECON EFIN PGOV PREL KWBG 
pdf how-to read a cable
VZCZCXYZ0031
OO RUEHWEB

DE RUEHJM #2443 1651426
ZNR UUUUU ZZH
O 141426Z JUN 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2787
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS JERUSALEM 002443 

SIPDIS

SENSITIVE
SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/GREENE/WATERS/WAECHTER; NSC FOR
ABRAMS/DORAN/LOGERFO; TREASURY FOR NUGENT/ADKINS

E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL KWBG
SUBJECT: WHERE IS THE BOTTOM? PALESTINIAN STOCK MARKET
CONTINUES TO PLUMMET

REF: JERUSALEM 2059

UNCLAS JERUSALEM 002443

SIPDIS

SENSITIVE
SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/GREENE/WATERS/WAECHTER; NSC FOR
ABRAMS/DORAN/LOGERFO; TREASURY FOR NUGENT/ADKINS

E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL KWBG
SUBJECT: WHERE IS THE BOTTOM? PALESTINIAN STOCK MARKET
CONTINUES TO PLUMMET

REF: JERUSALEM 2059


1. (SBU) Palestinian stock prices continued to fall, with
the Al-Quds Index losing 4.57 percent in the week ending June
8 and closing at 540.69. The Average Daily Trading Volume
(ADTV) reached USD 2.89 million compared to USD 4.01 million
four weeks ago. Lotos Investment analyst Waleed Makkieh told
EconOff that the Palestinian Stock Exchange (PSE) had
continued its descent June 13, as a result of the violent
clashes between Fatah and Hamas June 12 and June 13. He said
that many investors were "averaging" their portfolios and
waiting for stock prices to reach bottom in order to buy
stocks at the lower prices and "average out" their original
purchase of stocks at higher prices only a few months ago.


2. (SBU) Makkieh said Paltel had taken a heavy hit reaching
4.33 Jordanian Dinars (JD) (USD 6.11) June 13 down from a
52-week high of 16.40 JD (USD 23.15). Paltel stock began to
tumble after the Palestinian Legislative Council (PLC)
elections in January and continued to fall after the
formation of the Hamas-led government.


3. (SBU) International investors had informed Makkieh that
they were liquidating their position in the PSE only
temporarily and would use their resources to invest in other
timely opportunities. Makkieh added that they did not feel
their return was evenly matched to the risk from political
instability in the West Bank and Gaza. However, in the week
of June 11, some large institutional investors had been
buying heavily in the PSE and planned to hold long-term
positions.


4. (SBU) Makkieh commented that some investors were deterred
from investing in the PSE because the markets were shallow
and prevented investors from easily liquidating their
positions. He said it could take at least a week for some
investors to sell their stocks. Makkieh predicted that the
market has not yet hit bottom, but will continue to fall as
the political and security situation in the West Bank and
Gaza worsens.
WALLES