Jerusalem Index Jumps 18% in the First Half of This Year

SadaNews Economy - In its best performance in more than 15 years, the Jerusalem Index of the Palestine Stock Exchange surged by 18% in the first half of 2025, closing at 586.7 points.

This came after a series of consecutive increases in the last two months and a significant rise in trading values, which reached $181 million compared to $70 million for the same period in 2024. The total market capitalization also increased by about $600 million to reach $4.7 billion, which is 14% of the total.

The Chairwoman of the Board of Directors of the Palestine Stock Exchange, Rula Shnaar, expressed her happiness with this performance, appreciating the Palestinian spirit of challenge, especially the initiatives of many listed companies to support and strengthen their financial positions and adapt to difficult circumstances. They have undertaken a series of strategic moves, including cost rationalization and increasing hedges, in addition to enhancing their cash liquidity by more than $150 million through raising capital and selling treasury shares.

Additionally, Bank of Palestine raised its subscribed and paid-up capital by a total of 30 million shares, rising from approximately 231 million to 261 million shares, through private subscriptions from strategic investors, most notably the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). The bank's General Assembly also approved at the beginning of June 2025 a raise in the authorized capital ceiling by $50 million, bringing it to $350 million.

In his comments, the Chairman of the Board of Bank of Palestine, Hashim Al-Shawa, said, "In the years 2024 and 2025, Bank of Palestine successfully raised its capital to historic levels by attracting strategic and international investors, reflecting strong confidence in the bank, the regulatory environment, and the Palestinian economy, which is witnessing difficult conditions. This capital increase will support the bank's growth locally and its regional expansion plans in Gulf Cooperation Council countries and Egypt."

The Arab Palestinian Investment Company (APIC) managed to support its financial position and investment expansions by raising its capital by $30 million through a secondary public subscription for its shareholders.

The Chairman and CEO of APIC, Tarek Al-Aqqad, stated, "Despite the severe challenges facing Palestine, particularly the devastating war on Gaza, the escalating Israeli aggression in the West Bank, and deep economic slowdown, the secondary offering for APIC shareholders has significantly exceeded expectations, being subscribed at 180%, surpassing the targeted capital. This strong demand reflects the confidence of the company's shareholders in its resilience in facing crises. Additionally, the success in issuing bonds worth $120 million with the participation of prestigious financial institutions, including the International Finance Corporation of the World Bank, enhances APIC's status and credibility internationally, confirming its operational efficiency."

As for the Palestinian Islamic Bank, it announced a public offering of 6 million shares for secondary subscription valued at $6 million, based on the decision of the bank's Board of Directors last May, which was based on the General Assembly's decision in April 2023 to increase the subscribed and paid capital to become $106 million. In the same context, Safa Bank raised its subscribed and paid capital by a total of 12 million shares, reaching approximately 64 million shares, through a secondary public offering allocated to the bank's shareholders.

Shnaar emphasized the importance of attracting new investors and strategic partners to the Palestinian market, stating, "The stock exchange provides a channel for injecting capital into listed companies to enable them to expand and grow and provide new job opportunities."

Palestine Development and Investment Company (PADICO) recorded the highest increase in its share price during the first half of 2025 by 100%, followed by Arkan Real Estate with 49%, Jerusalem Cigarettes by 43%, Palestine Real Estate Investment by 29%, and Palestine Mobile Communications by 27%. The significant increase in PADICO's share price is attributed to the steps taken by the company, most notably selling shares owned by its subsidiaries worth $59 million and issuing bonds worth $120 million, which bolstered the confidence of PADICO's major shareholders and increased their demand for the stock.