FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
PALESTINE EXCHANGE
2011 saw the most generous dividend
distribution on the fiscal year 2010
underlining the outstanding performance of
many PEX listed companies.
Ahmad Aweidah
CEO
Growth in Time of Adversity
The Palestine Exchange (PEX) closed the year
2011 with remarkable achievements which
lined PEX in an advanced position among its
peers. The World Federation of Exchanges
(WFE) promoted PEX status to “Affiliate”.
This announcement has come to recognize
the progress PEX made in its business
development over the last few years as well as
its advanced and efficient working environment.
HISTORY AND DEVELOPMENT
• 1995: Established as a private shareholding
company to promote investment in Palestine.
• 1997: First trading session (18 February).
• 2005: The Al-Quds Index had increased
by 306% compared to 2004, recording the
highest amongst the world Stock Exchanges.
• 2006: Launch of the Investor Education
Program.
• 2007: Launch of E-Trade Service.
• 2009: Ranked 33rd amongst International
Stock Exchanges and 2nd in the region in
terms of investor protection.
• 2010: Became a public shareholding
company…. new corporate identity.
Accomplishments
In 2011, number of listed companies increased
by 18%, a record year for PEX, while market
cap of listed stocks increased by 13.57% to
reach some 3 billion US$ with 100% disclosure
compliance. 2011 saw the most generous
dividend distribution on the fiscal year 2010
underlining the outstanding performance
of many PEX listed companies, 35 out of
46 companies were profitable, dividends
exceeded 152m US$, with an average return
on investment of 13.6%, while dividend ratio to
market cap of listed companies averaged 7%
for the same year. The Arab spring affected most of the Arab
exchanges, yet PEX weathered with minimal
impact of the crisis in comparison to other
MENA exchanges. The Al-Quds Index” led Arab
markets’ indices as close of Q1, H1 & Q3 2011,
while it slightly declined at the end of 2011 by
2.59% and ranked third.
Events
• Road Show to London to market success
stories of listed stocks and attract foreign
investments, June 2011.
• Fifth Annual Palestinian Capital Market
Forum entitled: “Family Businesses…
Strategies for the Future”, November 2011. Investor Education
• Convened the Stock Simulation competition
in seven national universities with the
participation of 250 students.
• Schools and universities educational visits to
PEX premises with the participation of 1000
students.
• Convened a local promotional & educational
campaign including advertising, media and
social media tools, and series of educational
seminars in all Palestinian cities.
Publications
• Listed Companies Guide.
• “Investor Relations” Guide.
• “Initial Public Offering- IPO” Guide.
• The Quarterly Souq El-Mal Magazine (a
specialized magazine in capital markets).
• Monthly Investor Newsletter.
• Proceedings book of the Fifth Annual
Palestinian Capital Market Forum.
• PEX Annual Report.
Seven New Listings:
Company Symbol Sector Date
Wataniya Palestine Mobile
Telecommunications WATANIYA Services 09 JAN
Global United Insurance GUI Insurance 31 MARCH
Palestine Mortgage and Housing
Corporation PMHC Banking &
Financial Services 13 APRIL
Al-Aqariya Trading Investment AQARIYA Investment 25 APRIL
Al-Takaful Palestinian Insurance TIC Insurance 04 MAY
Al-Shark Electrode company ElECTRODE Industry 17 MAY
National Aluminum and Proffile NAPCO Industry 30 NOV
I wish success to all exchanges in 2012 and
I hope we will all see growth and stability and
continued developments of our activities and
markets.
IT development
• Launched a customized mobile version of
PEX website available via wireless or WAP
internet services.
• Deploying an advanced security system
achieving a higher level of protection of all
PEX electronic systems and services.
• The automation of the Clearing and
Settlement Center auditing programs and
reports.
FUTURE OUTLOOK
• Listing PEX on Middle East frontier indices
(MSCI, FTSE, S&P).
• Seeking WFE full membership.
• Quality listing of new companies, large
potential family owned companies pool.
• Targeting substantial and resourceful
Palestinian Diaspora.
• Attracting more foreign investment.
• Enhancing efficient IR practices and good
governance among listed companies.
• Educating Investors.
• Constant investment in best of breed
systems and applications to support growth
and service diversification.
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