FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
PALESTINE EXCHANGE
Ahmad Aweidah
CEO
Listing the Palestine Exchange in 2012 was
a landmark event. This listing enhances the
PEX governance and puts it ahead many peer
exchanges in good corporate governance
practices.
The political and economic turbulence
that Palestine witnessed in 2012 and its
psychological ramifications on investors have
negatively affected trading volume, which
dropped by 25 percent in 2012 compared to
2011. In 2012, the PEX traded about 150 million
shares valued at 274 million US Dollars. The Al-
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.
• 2011: Listing a record seven new
companies.
• 2012: Listed company. (4 April)
FUTURE OUTLOOK
The PEX seeks to develop Palestine’s capital
market and to enhance its qualitative presence
amongst its regional and international peers. We
aim to:
• Strengthen market governance through
improving our legislation, regulation,
systems, operational procedures,
information security, and internal audit
mechanisms in keeping with best practice.
• Enhance our relationship with the PCMA,
member brokers, the listed companies and
other stakeholders to provide premium
timely responses to investor needs and
market evolution.
• Increase Market depth and expand our
investor base, through:
- - Completing the listing of public shareholding
companies, and continuing our educational
outreach to qualified family-owned firms.
- - Including the exchange in the MENA frontier
market indices such as those provided by
MSCI, S&P and FTSE).
Listing the Palestine Securities Exchange
is a milestone. The PEX is the only Arab
exchange that is fully owned by the private
sector and the second Arab exchange to
be listed.
Quds index closed the year 2012 with a slight
increase of 0.14 percent compared to 2011,
and market Cap of listed companies increased
by 2.76 percent for the same year.
2012 saw generous dividend distribution for
the fiscal year 2011 underlining the outstanding
performance of many PEX listed companies;
70 percent of listed companies were profitable
in 2011, cash dividends amounted some 120
million US dollars, with an average return on
investment of 6.09 percent for the same year.
- - Encouraging Diaspora Palestinians to invest
in Palestinian listed companies.
- - Further enhance our continued outreach
campaigns and road shows towards
promoting PEX to institutional and retail
investors (local and regional).
• Diversify our sources of income through:
- - Expansion of our central depository services.
- - Developing better data dissemination
channels and building an online trading and
companies database.
• Strengthen our relationship with regional
and international markets, and to obtain
full membership of the World Federation of
Exchanges (WFE).
• Promote the development of effective, best
practices for corporate governance and
investor relations in Palestinian companies.
Accomplishments 2012
Two New Listings during:
Company
name Trading
Symbol Listing
Date
Sector
Palestine
Securities
Exchange PEX 04/04/2012 Banking
and
Financial
Services
Sector
PALAQAR for
Real Estate
Development
and
Management PALAQAR 03/07/2012 Services
Sector
Events
• Convened the Sixth Annual Palestinian
Capital Market Forum entitled: “Brokerage
Industry, Current Challenges & Future
Prospects”, November 2012. (For more
information, please visit www.facebook.com/
FEXForum6).
Publications
• Listed Companies Guide.
• “Road to IPO” (CD) Guide.
The PEX continued investing in its technological
systems and infrastructure. In 2012 we
developed and launched a comprehensive
financial and managerial system (ERP).
Projects in the pipeline also include “IFSAH”
disclosure system and a new Business Process
Management system (BPM) which should be
completed in 2013.
I wish success to all exchanges and I hope we
will all see growth in 2013.
• The Quarterly Souq El-Mal Magazine (a
specialized magazine in capital markets).
• Monthly Investor Newsletter.
• The PEX Annual Report.
• Daily, weekly and monthly statistical report.
Investor Education
• Continued the Stock Simulation competition
in nine national universities.
• Educational session to schools and
universities students at the PEX premises.
Training Courses
• The following training courses were
convened with the participation of
employees from the capital market sector:
• Strategy and Portfolio Management, July
2012.
• Financial Broker course, September 2012.
• Investor Relations and Corporate
Communication Best Practices course,
November 2012.
Investor Relation
• Launched the Palestine Chapter of the
Middle East IR Society (MEIRS), February
2012.
• Established the PEX Investor Relations
Section.
• Chairwoman of the Palestine Chapter of
MEIRS Ms. Fida Musleh/Azar, also Manager
of Public Relations and Investor Education
Department at the PEX, received the
“Outstanding Individual Contribution to IR”
award, which was presented during the
Annual Conference of Middle East Investor
Relations Society in Abu Dhabi, November
2012.
CDS Development
• Obtain a full member at the Association of
National Numbering Agencies (ANNA).
• Obtain the privilege from the Association of
National Numbering Agencies (ANNA) to be
a PRE-LOU (Local Operating Unit).
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