ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
PALESTINE SECURITIES EXCHANGE
In 2009, the PSE recovered from the impact
of the global financial crisis with a good
performance relative to other MENA
countries.
Ahmad Aweidah
CEO
Over more than thirteen years, the PSE has
consistently met challenges of a difficult
economic and political reality with a high level
of commitment to its goals and to the
development of an enabling investment
environment.
In 2009, the PSE recovered from the impact
of the global financial crisis with a good
performance relative to other MENA countries:
The Al-Quds index increased by 11.62% by the
end of the year, ranked the eighth among Arab
exchanges in terms of index growth rate. The
PSE is financially sound, and well capitalized to
maintain a steady business in a volatile world.
The year 2009 witnessed continuous attention
by the PSE to strengthening its prominent
presence on many levels; The PSE was able to
enhance its role locally by reinforcing principles
of transparency, investment culture and good
HISTORY AND DEVELOPMENT
• 1996: Established as a private shareholding
company to promote investment in Palestine.
• February 18, 1997: First trading session.
• 2009: a well established exchange with turnover
in 2009 of US$ 500,393,398 and a market
capitalization of US$ 2.37 billion.
• February 2010: became a public shareholding
company responding to principles of transparency
and good governance.
• Listed Companies: 39 Palestinian companies
as of 31/12/2009 across five main sectors:
banking, industry, insurance, investment &
services.
• Member Brokerage Firms: 10 firms as of
31/12/2009 with offices and branches in most of
the Palestinian cities.
• 2005: the Al-Quds Index had increased by
306% compared to 2004, recording the highest
amongst the world Stock Exchanges.
• 2006: Launched the Investor Education
Program.
• E-trading: Launched in April 2007.
• In 2009: the PSE was ranked 33rd amongst
International Stock Exchanges and regionally
comes 2nd in terms of investor protection.
• Only equities are currently traded on the PSE.
2009 ACCOMPLISHMENTS
• Convened the Third Annual Palestinian Capital
Market Forum in November 2009. The Forum
discussed priorities and opportunities of emerging
markets post the global financial crisis. The Forum
was attended by local, regional & international
businessmen, investors and experts, in addition to
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governance. In terms of surveillance, the PSE
and Palestine Capital Market Authority (PCMA)
signed an agreement with Smarts Group of
Australia, to utilize Smarts on Line System for
instant supervision over securities trading.
The year 2009 also witnessed distinctive
developments in terms of the Investor
Education Program; The Stock Simulation
Program was launched targeting university
students in Palestine to educate them on how
to invest in the securities market.
The PSE convened the “Third Annual
Palestinian Capital Market Forum” in October
2009 discussing the priorities and opportunities
of emerging markets post the global financial
crisis. The PSE also strengthened its IT infrastructure
by implementing a hot disaster recovery
backup site with high availability for all
Networks, systems and services.
Two companies were listed in 2009. Today, the
PSE has 39 listed companies across five main
economic sectors; including banking,
insurance, investments, industry and services.
30 companies out of 39 achieved profits during
2009 with 100% compliance with disclosure
requirements. 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.
the Chairman of IOSCO Emerging Markets
Committee, and a Chilean-Palestinian
businessmen delegation.
• Organized promotional Road Show to Santiago,
Chile in May 2009 to attract new investments to
the PSE.
• Listing of two new Companies: Globalcom
Telecommunications Company in October 2009 &
The Palestine Islamic Bank in July 2009. The PSE
now has 39 listed companies on the exchange
working in 5 main sectors; banking, investment,
services, industry & insurance.
• PSE and Capital Market Authority (CMA) signed
an agreement with Smarts Group of Australia, to
utilize Smarts on Line System for instant
supervision over securities trading.
• Implemented a Hot Backup site and high
availability for all Networks and systems and
services, in addition to new infrastructure for
Technologies and Telecommunications, new
Security systems, new trading surveillance system
using SMARTS system, the Stock Simulation
system.
• Developed new portal and a new Data
Dissemination System.
• Run two rounds of Stock Simulation competition
in five national universities in Palestine with the
participation of 180 students.
• Published five new issues of Souk Al-Mal
Magazine (a specialized magazine in capital
markets).
• Held the Accredited Broker Course in December
2009 with the participation of 19 employees of
member brokerage firms at the PSE.
• Announced the approval on the Arab Investment
Group Membership. the PSE has now 10 member
brokerage firms. • Issued the investor number (IN) for shareholders
at the PSE.
• Attained a membership of the Association of
National Numbering Agenda (ANNA) that qualified
the PSE to issue the ISIN (International Securities
Identification Number).
• Issued & distributed multiple studies,
newsletters and statistical reports.
FUTURE OUTLOOK
• Develop domestic institutional investors and
attract Palestinian Diaspora and foreign capital
through local, regional & international road shows
to attract new investments to the exchange;
• Reaching an agreed division of labor on
regulatory matters between PSE and Capital
Market Authority;
• Expand on investor education programs mainly
for students at all academic levels.
• Target public shareholding companies to be
listed on the PSE.
• Target private shareholding companies to go
public and be listed on the PSE.
• Perform all preparations that are needed in
terms of managerial and technical requirements
for a projected independent Central Security
Depository (CSD);
• The PSE will additionally dedicate more effort to
the improvement of the legal environment,
disclosure, transparency, enhancement of listing
rules, and keeping up with the latest
developments together with investment
awareness, communication and state of the art
ICT environment.