PALESTINE SECURITIES EXCHANGE
Dr. Rami Himdallah
Chairman
Every scheduled trading
session in 2003 was
held without fail and, at
the same time,
noticeable growth in
more than one aspect
was achieved.
Within the brief period since I became
Chairman of the Board of Directors of the
Palestine Securities Exchange (PSE), I have
been able to comprehend the difficulties and
challenges the Exchange had to face during
2003 and, correspondingly, highly appreciate
the Exchange’s fulfilled achievements. Unlike
2002, every scheduled trading session in 2003
was held without fail and, at the same time,
noticeable growth in more than one aspect was
achieved.
I was amazed as to how the PSE could
accomplish the growth and development the
way it did despite the prevailing unrest and the
pressures of budget constraints. My conclusion
is that it is the human factor, the staff at the
PSE, that has made the difference and helped
the PSE advance to where it is now.
The PSE can no longer be looked upon as a
typical or routine establishment. It has become
a paradigm to look up to when it comes to
crisis management. It has not only survived the
worst conditions Palestine has ever known but
has also achieved a growth exemplified by the
rise in the Al-Quds Index of approximately 19%,
an increase in traded volume of roughly 116%
and in trading value by more than 29%. The
highest growth percentage was that of the
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 to allow for the licensing and qualification
of brokerage firms. On 18 February 1997, the
PSE conducted its first trading session. So far,
more than 20 shareholding companies have
been approved for listing with additional
number of trades, which exceeded 130%.
Furthermore, the market capitalization of the
listed companies was restored, regaining part
of earlier losses and reaching a growth of
approximately 13% by the end of 2003.
We wish 2004 to be a better year, for we have
so many plans and hopes that we look forward
to achieving, regardless of how tough the
conditions may be and how much our
resources may be squeezed, because we still
have the desire and will to bring the securities
sector in Palestine up to the promising levels
we all wish to reach.
FUTURE OUTLOOK
companies 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.
The PSE has been working to achieve a set of
goals under unique and difficult
circumstances. The PSE looks forward to
accomplishing better results in 2004 in the
following areas:
• listing more shareholding companies that
enjoy sound positions;
• attracting more investors to an improving
investing environment;
• enhancing investor education to increase
public awareness in the securities sector;
• continuing the PSE sophisticated data
dissemination program to reach the maximum
number of people through media, including
dissemination of live trading through local TV
stations, internet, mobile network (SMS),
telephone lines (voice data) and newspapers;
• visiting and exchanging information with
foreign bourses and related institutions;
• developing and updating software and
hardware systems;
• updating the PSE regulations, rules and
procedures;
• assisting the legislators to adopt and ratify
related regulations and laws; and
• creating a disclosure mechanism through
the PSE website.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
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