FEAS Yearbook FEAS Yearbook 2003 | Page 79

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 PAGE 77