FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
PALESTINE SECURITIES EXCHANGE
The year 2008 witnessed a continuous
attention by the PSE to strengthening the
prominent presence of the PSE on many
levels.
Dr. Rami Hamdallah
Chairman
The Palestine Securities Exchange’s (PSE)
First Trading Session took place on 18
February 1997. On that significant date, the
first stock exchange for trading securities was
established in Palestine.
Over more than ten years, the PSE has
proven to be up to the challenges resisting an
unsmooth economic and political reality with a
high level of commitment to its goals and to
the development of an enabling investment
environment.
In 2008 the PSE had started a recovery trend
through positive performance on its
indicators, the value of traded stocks
increased by more than 25% compared with
its value in the year 2007, this increase put the
PSE as one of the first best three Exchanges
in the region, in addition trading activity in
2008 is considered to be better than the year
2006 in terms of the amount of stocks traded
and number of transactions executed.
HISTORY AND DEVELOPMENT
Palestine Securities Exchange (PSE) is a
private shareholding company that was
established in 1996 and held its first trading
session on the 18th of February 1997. The
PSE Al-Quds Index has so far achieved the
second best performance in the entire Arab
world in 2008 and is the 2nd best
performing index in 2008 out of 88 indices
tracked by Bloomberg. (August 18th 2008).
The PSE operates under the supervision of
the Palestinian Capital Market Authority and
in accordance with the Securities Law No.
(12) 2004 and its bylaws, in addition to
modern regulations, which form a strong
basis that ensure a fair trading environment.
The PSE is committed to the rules of good
institutional governance, uses the latest
technological tools and builds close
relationships with Arab, regional and
international markets.
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The year 2008 witnessed a continuous
attention by the PSE to strengthening the
prominent presence of the PSE on many
levels; The PSE was able to enhance its role
locally by reinforcing principles of
transparency, investment culture and good
governance. The PSE convened the “Second
Annual Palestinian Capital Market Forum” in
October 2008 which gained everyone’s
recognition for its high level of organization,
the high quality of presented papers and vast
participation. The Forum was under the
auspices and participation of His Excellency,
Prime Minister Dr. Salam Fayyad. year 2008. Disclosure represents the most
important pillar of the stock exchange and
one of the important conditions of fair trading.
In 2008, the PSE issued the second version of
its "Companies Guide". It has also expanded
the e-trading service where it was the fourth
Arab exchange to do this. Moreover, the PSE
produced a summary booklet for all laws and
regulations in Arabic and English. The PSE is
very proud of its listed companies where also
2 new companies were listed in 2008, and
PSE was achieving 100% disclosure in the Today we see a locally, regionally and
internationally recognized institution that
competes with many other stock exchanges
with more conducive working environments.
Our common values will always be good
governance, transparency, efficiency, fairness
& equal opportunities. We ask the almighty
God to help us in providing a suitable and
better investment future for Palestine.
The PSE strives to provide a market for
trading securities and financial instruments
that is characterized by equity, transparency
and competence, serving and maintaining
the interest of investors.
There are no restrictions on foreign
investments at the PSE, unless the by-laws
of the listed companies on the exchange
state otherwise. To attract and encourage
foreign investment, the PSE signed a
Custodian Agreement with HSBC Bank in
1999.
Our common values are: good governance,
transparency, efficiency, fairness & equal
opportunity.
Promising Market for Investment
Sound & Secure Investment Environment
Equal Opportunities
The year 2008 also witnessed distinctive
developments in terms of the Investor
Education Program, networking with
stakeholders, and active participation in the
activity of companies’ governance in
Palestine. The PSE also supported the
Palestinian community in the year 2008 by
supporting the education sector, where 3 labs
were opened for students’ practical training in
3 universities.
FUTURE OUTLOOK
The PSE held a two-day strategic planning
retreat on 27 and 28 November 2008 at
Mövenpick, Dead Sea. The objectives of the
activity were to study the status of securities
industry in Palestine, reinforce its internal
structure, explore its features, main
challenges and duties in the coming phase,
and develop a strategic market plan for the
next three years.