FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 68
PALESTINE SECURITIES EXCHANGE
LETTER FROM THE CHAIRMAN
The Exchange held one hundred trading sessions and
scored a number of achievements including the listing
of a number of industrial companies and the
establishment of a reserve site for the Exchange.
The past year has been a very difficult one for
all in Palestine. The second and third quarters,
in particular, were marked by very critical
events. More than half of the trading sessions
at the Palestine Securities Exchange (PSE)
were disrupted due to prolonged and tight
curfews imposed on most Palestinian cities.
In spite of this, the presence of the Palestinian
bourse in the midst of siege and violence has
proven that the PSE can rise up to the
challenges by succeeding to hold trading
sessions even under these circumstances.
Against this background, the volume of trading
in 2002 plummeted more than 40% in
comparison to 2001. The benchmark, the
Al-Quds Index, also dropped by 22.5%. In
spite of this, the Exchange held one hundred
trading sessions and scored a number of
achievements including the listing of a number
of industrial companies and the establishment
of a reserve site for the Exchange. The new
site now houses major equipment to be used
in emergency situations. The PSE has
contributed to the drafting of an integrated
disclosure system, the development of training
issues and modifications to the Al-Quds Index.
The management continued its efforts to
encourage the concerned authorities to
approve the Capital Markets Authority Law,
previously passed on its second reading by
the Palestinian Legislature Council. The
management is still encouraging the issuance
of the Securities Law and the modernization
of the Company Law. Management has also
established a research and development unit,
which has enhanced Exchange activities.
requested from FEAS to freeze our
membership until the conditions improve in
Palestine. We have faith that we will come
back stronger to enhance our role in the
Federation.
We hope 2003 will be better and that peace
will prevail in the Holy Land and in the whole
world.
Sabih Taher Al-Masri
Chairman
Given the drastic decline in turnover at the
PSE due to frequent disruptions, we have
HISTORY AND DEVELOPMENT
The Palestine Securities Exchange (PSE) was
incorporated as a private shareholding company
in early 1995, with the Palestine Development
& Investment Company (PADICO) and SAMED
as its major investors. After the Palestinian
National Authority (PNA) approved a PADICO-
sponsored design and work plan in July 1995, a
project team was put together by the PSE and
entrusted to establish a fully electronic exchange
and depository. EFA Software Services, a
Canadian company, provided both the trading
and settlement and clearing systems. By August
1996 the Exchange was fully operational and on
November 7 of that year, the PSE signed an
operating agreement with the PNA, allowing for
the licensing and qualification of brokerage firms
to take place. On 18 February 1997, the PSE
conducted its first trading session. More than
20 shareholding companies have been approved
for listing so far with additional companies expected to be listed in the near future. The
current list of companies spans a wide range of
sectors including pharmaceuticals, utilities,
telecommunications and financial services. There
are currently an estimated 40 Palestinian
companies eligible to be listed on the Exchange
with a market capitalization of over US$ 1 billion.
greater emphasis on training issues; putting into effect the Capital Markets Authority
(CMA) Law.
FUTURE OUTLOOK
The PSE hopes that the situation will improve in
2003 to achieve the following goals:
launching an investor education campaign to
increase public awareness in the securities sector;
establishing a library in the PSE containing
publications pertaining to the securities sector;
developing and updating software and hardware
systems;
listing more shareholding companies;
finalizing and approving a disclosure system;
and