Providing a Safe Investment Environment

Palestine Exchange (PEX) was established in 1995 to promote investment in Palestine. The PEX was fully automated upon establishment- a first amongst the Arab Stock Exchanges. The PEX became a public shareholding company in February 2010 responding to principles of transparency and good governance. The PEX operates under the supervision of the Palestinian Capital Market Authority.

The PEX strives to provide an enabling environment for trading that is characterized by equity ,transparency and competence, serving and maintaining the interest of investors.

The PEX is very appealing in terms of market capitalization, it is financially sound, and well capitalized to maintain a steady business in a volatile world, as it passed with the minimum level of impact of the global financial crisis compared to other MENA Exchanges.

There are 48 listed companies on PEX as of 31/03/2013 with market capitalization of about $ 3 billion across five main economic sectors; banking and financial services, insurance, investments, industry, and services. Most of the listed companies are profitable and trade in Jordanian Dinar, while others trade in US Dollars. Only stocks are currently traded on PEX, but there is potential and readiness to trade other securities in the future.

In 2009, the PEX ranked thirty third amongst the worldwide security markets, and regionally comes in second in terms of investor protection.

PEX Vision

We seek to be a model for Arab and regional financial markets, through providing innovative services, proposing ideal investment opportunities in securities, attracting investments, the use of state of the art technology, compliance to the rules of corporate governance and establishing constructive relations with Arab, regional and global markets.

PEX Mission

To provide a fair, transparent and efficient market for trading securities that serves investors, protects their interests, contributes to creating an enabling environment that attracts local and foreign investments, and interacts with local and Arab relevant institutions in a manner that serves the national economy and enhances the culture of investment in financial markets.

PEX Objectives

• To provide a safe and enabling trading environment characterized by efficiency, fairness and transparency.
• To increase the investment awareness of the local community and enhance PEX relations with local, Arab and international economic institutions and forums.
• To develop domestic investments and attract Palestinian diaspora & foreign capital.
• To increase the depth of the exchange by continuously listing new companies and     providing new and diverse financial tools and services.
• To create a proficient working environment within the PEX by investing in human capital, and maintaining an up-to-date technologies of stock markets.

There are many reasons to invest in the Palestine Exchange:

1. Small yet robust.
2. Great spring back potential.
3. Tried & tested.
4. Undervalued stocks.
5. Evolving and efficient regulatory environment within international best practice.
6. No restrictions on foreign investment or taxation of capital gains, no foreign exchange restrictions.
    

PEX Regulatory Framework

In 2005, with the development of the legal structure of the securities sector in Palestine, particularly the issuance of the Securities Law No. (12) of 2004 and the Capital Market Authority Law No. (13) of 2004, the Palestine Capital Market Authority (CMA) took over the responsibility of supervising the PEX and issuing securities by the public shareholding companies.

The PEX operates in accordance with the Securities Law No. (12) of 2004, and the bylaws that stemmed from it in a manner that does not contravene with the CMA directives.

The PEX works also in accordance with modern regulations, which form a strong basis to ensure a fair trading environment. These regulations include: listing regulation, trading regulation, disclosure regulation, membership regulation, dispute resolution regulation and the regulation of professional conduct.

"Palestine of Opportunities"

PSE seeks to develop Palestine’s capital market and to enhance its qualitative presence amongst its regional and international peers. We aim to:

1.     Strengthen market governance through improving our legislation, regulation, systems, operational procedures, information security, and internal audit mechanisms in keeping with best practice.

2.     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.

3.     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).

·          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).

4.     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.

5.     Strengthen our relationship with regional and international markets, and to obtain full membership of the World Federation of Exchanges (WFE).

6.     Promote the development of effective, best practices for corporate governance and investor relations in Palestinian companies.

Q: What is the trading symbol of the Palestine Securities Exchange,PLC?

A: The trading symbol is PSE.

Q: What is the total number of the PSE shares?

A: The total number of shares issued and fully paid is 10,000,000 (10m USD).

Q: How can I buy and trade the PSE shares?

A: You can buy and sell the PSE shares via the authorized brokerage firms members at the Palestine Exchange.

Q: Is there any restriction on the number of shares I can buy?

A: There are no ownership restrictions. All investors, domestic and foreign, are can invest in the PSE.

Q: How can I obtain a certificate of shares that I own in the PSE?

A: You may ask for a certificate either directly from the central securities depository or by submitting the application through your broker.

Q: What should I do if I change my address?

A: Whenever you change your address, please fill in the Information change request Form through your broker who will send it to the central securities depository.

Q: When does the PSE fiscal year finish?

A: It finishes at the end of the normal calendar year (31 December).

Q: Who is the PSE’s external auditor?

A: The PSE external auditor is Ernst & Young.

Q: What is the PSE’s dividend policy?

 A: PSE policy depends upon profitability and the availability of sufficient reserves to distribute those dividends to shareholders. Dividend distribution is not guaranteed. For more information about the dividends history, please review the Dividends page.

Q: When are dividends paid and how?
A: Dividends are paid upon realization and subject to the announcement of the Company's General Assembly. The company announces the payment mechanism through newspapers, its website, and by sending a circular to shareholders.

Q: What is the mechanism for un-received dividends?

A: Un-received dividends will be maintained by the company until the shareholder claims them.

Q: When is the company’s' General Assembly held?

A: It is usually held in April each year, subject to the announcement of the company in newspapers, the website and the shareholder invitation 2 weeks prior to the meeting.

The PSE encourages shareholders to attend the general assembly meeting as it will be a meeting to exchange ideas between the shareholders, board of directors and the executive management.

Q: How can I contact the Investor Relations Department at Palestine Exchange, PLC?

A: You can communicate through:

E-mail: IR@pex.ps

Tel: +970 9 2390 999    Direct: +970 9 2390 945

Fax: +970 9 2390998