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PSE has a clear Vision & Mission
PSEVISION
To create 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.
To provide a fair, transparent and efficient market for tradingsecurities that:• serves investors, • protects their interests, • contributes in creating an enabling environment that attracts local and
foreign investments,• interacts with local and Arab relevant institutions, in a manner that
serves the national economy and enhances the culture of investment in financial markets.
PSEMISSION
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The PSE has been trading since 1997
1995 Palestine Development and Investment Company (PADICO) and Palestine National Authority sign an agreement for operating the securities exchange
1997 First trading session held
2009 A well established exchange with turnover in 2009 of US$ 500 million and a market capitalization of $ 2.37 billion
2010 Public Shareholding Company
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39 companies are listed on the PSE
SectorNo. of
companies
Market Capitalization (US$)
(as of 31 December 2009)
Banking 7 601,381,086
Insurance 5 91,712,716
Investment 8 426,815,786
Industry 10 179,229,307
Services 9 1,076,227,636
TOTAL Market CAP as of 31 Dec.2009
2,375,366,531
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New capital raised by shares
Initial Public Offerings (value of money raised at first listing):
2008(US$)
2009(US$)
12,738,436 45,471,808
Secondary public offerings (new capital raised for companies already traded):
2008(US$)
2009(US$)
15,508,692 10,869,054
Expected listing for 2010
CompanyNo. of Shares to
be listedValue (USD)
Al-Wataniah Towers Co. 10 million shares 10,000,000
The Ramallah Summer Resorts Co. 1.625 million shares 2,298,444
Palestine Insurance Co. 5 million shares 5,000,000
Dar-Al-Shifa Company for Manufacturing of Pharmaceuticals (Pharmacare)
5 million shares 7,721,135
Wataniya Mobile 170 million shares 170.000.000
Arab Palestinian Investment Company (APIC) 70 million shares 70,000,000
Club Palestino of Chile 1.5 million shares 1,500,000
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Ownership Profile
Regulatory Framework
• PCMA was established in 2005
• Securities Law No. (12) of the year 2004
• Companies Law No. (12) of the year 1964
• PSE regulations: Trading, Listing, Disclosure, Dispute
settlement, Code of Corporate Governance
• Applicable regulations at the PSE are compatible with
best international practices
• Seeking WFE membership8
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Trading @ the PSE
System: Horizon, NASDAQ OMX
E-Trading since 2007 (one of the first in the
Arab World)
Fully automated trading, clearing, and
settlement system
Surveillance @ the PSE
SMARTS
Best of breed application
Adopted by the PSE and the Palestinian Capital Market
Authority
Monitors the trading session instantly to detect any
unusual behaviors of prices or trading volumes
Any violation is subject to the adopted penalties and
fines.10
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Foreign investment
Friendly and encouraging legal and regulatory
environment vis-à-vis foreign investment in the stock
exchange.
No capital gain taxes and no income tax on the
revenues generated out of trading.
The only determinant for foreign investments is the
preferences of listed companies for foreign ownership
of shares in their capital.
Custodian: HSBC
PSE Daily turn oversince inception
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Composition of the Al-Quds Index
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Sector Listed Company Symbol
Weight of index(as of
28/2/2010)
BankingArab Islamic Bank AIB 2.31%
Alrafah Microfinance Bank AMB 1.07%Bank of Palestine BOP 18.12%
IndustrialBirzeit Pharmaceuticals BPC 3.55%
Golden Wheat Mills GMC 0.74%Insurance Ahliea Insurance Group AIG 1.21%
Investment
Palestine Development and Investment
PADICO15.91%
Palestine Industrial Investment PIIC 0.93%Union Construction and Investment UCI 1.31%
Services
Palestine Telecommunications PALTEL 51.36%Palestine Electric PEC 3.23
Palestine for Distribution & logistics Services
WASSEL
0.25
Turn Over ratios for 2009
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Sector Listed Companies
(included in Al-Quds index)Turn Over Ratio 2009
Daily Average Turn Over Value US$
2009
BankingArab Islamic Bank 51.04 112,686Alrafah Microfinance Bank 37.95 36,134Bank of Palestine 34.51 485,603
IndustrialBirzeit Pharmaceuticals 17.71 56.587Golden Wheat Mills 47.34 46,503Jerusalem Cigarette 12.23 21,734
Insurance Ahliea Insurance Group 11.95 16.963
Investment
Palestine Development and Investment 25.03
352,902
Palestine Real Estate Investment 37.95 101,267Union Construction and Investment 12.04
13,525
Services Palestine Telecommunications 14.91 738,366Palestine Electric 7.20 16,204
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Client typeNo. of
Shareholders% No. of Shares % value $ %
Retail investors 73,644.00 98.90 421,002,645.00 38.90 873,135,386.30 36.80
Institutions 492.00 0.66 216,021,982.00 19.96 583,104,782.52 24.58
Related Party 325.00 0.44 410,844,000.00 37.96 815,693,533.42 34.38
Government 3.00 0.004 34,339,990.00 3.17 100,478,325.03 4.24
TOTAL 74,464.00 100 1,082,208,617.00 100 2,372,412,027.27 100
Breakdown between: Retail Investors and Institutions
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Ownership structure of listed companies by nationality
NationalityNo. of
shareholders% No. of shares % value $ %
Locals 70,959 95.29% 595,346,296 55.01% 1,243,738,366 52.43%
Arabs 2,260 3.04% 222,534,317 20.56% 372,919,426 15.72%
Gulf 221 0.30% 77,365,747 7.15% 177,588,737 7.49%
Western 304 0.41% 80,470,442 7.44% 213,740,664 9.01%
Others 720 0.97% 106,491,815 9.84% 364,424,834 15.36%
TOTAL 74,464 100% 1,082,208,617 100% 2,372,412,027 100%
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More positive intervention will lead for better economic growth and stability
Steady GDP/GNI with growing inward flows and consumption
2005 2006 2007 2008
GDP (current US$ millions) 4,559 4,322 4,536 4,639
GNI per capita, (current us$) 1,519 1,489 1,494 --
Current transfers, non-residents (net, $m) 1,128 1,278 2,093 3,169
Final consumption ($m) 5,609 5,772 6,086 --
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Comparison of trading activity (2009 with 2008)
No. of Trading Sessions
Volume Value)$( No. of Trans.
Daily average turnover
value)$(
Market Capitalization
)$(
Al-Quds index
2008 244 339,168,807 1,185,204,211 152,319 4,857,394 2,123,057,098 441.66
2009 246 238,877,373 500,393,398 88,838 2,034,120 2,375,366,531 493.00
Change % %0.8 -29.57% -57.78% %-41.68 %-58.12 %11.88 %11.62
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PSE in comparison with other regional exchanges
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PSE recovers from the impact of the current global crisis with good
performance
In 2009, MENA markets
de-coupled then re-coupled, but
not entirely!
In 2009, MENA markets
de-coupled then re-coupled, but
not entirely!
PSE stands in the mid between regional markets
PSE stands in the mid between regional markets
Stock Index variationDecember 2009 with December 2008
Exchange %
TUNIS STOCK EXCHANGE 48.50%
EGYPT CAPITAL MARKET 34.73%
BEIRUT STOCK EXCHANGE 32.96%
MUSCAT SECURITIES MARKET 17.05%
ABU DHABI SECURITIES MARKET 14.79%
PALESTINE SECURITIES EXCHANGEPALESTINE SECURITIES EXCHANGE 11.62%DUBAI FINANCIAL MARKET 10.22%
DOHA SECURITIES MARKET 1.06%
CASABLANCA STOCK EXCHANGE -4.92%
AMMAN STOCK EXCHANGE -8.15%
KUWAIT STOCK MARKET -9.99%
BAHRAIN STOCK EXCHANGE -19.17%
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The Palestinian stock market recovery is relatively steady
Daily closing of Al-Quds Index during 2010
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ALL FIGURES IN US$ 2005 2006 2007 2008 2009
Gross revenues 11,781,308 5,349,393 5,065,587 5,538,083 4,011,669
Operating costs 1,310,383 1,717,946 2,287,317 2,812,733 2,614,154Net income (AFTER TAX) 8,730,923 3,033,225 2,312,722 2,157,011 46,247
Equity 6,889,163 9,922,388 14,325,617 12,617,858 11,671,610
2005 2006 2007 2008 2009Non-Current Assets 448,018 2,888,075 7,660,691 10,987,507 10,661,382
Current Assets 8,742,576 9,044,258 7,412,174 3,634,334 1,832,241Total Assets 9,190,594 11,932,333 15,072,865 14,621,841 12,493,623
Equity and Liabilities 2005 2006 2007 2008 2009Total Equity 6,889,163 9,922,388 14,325,617 12,617,858 11,671,610Non-Current
Liabilities 317,656 202,740 273,911 347,439 441,071
Current Liabilities 1,983,775 1,807,205 473,337 1,656,544 380,943
Total Liabilites 2,301,431 2,009,945 747,248 2,003,983 822,013Total Equity and
Liabilities 9,190,594 11,932,333 15,072,865 14,621,841 12,493,623
PSE : A Functioning Profitable Business
Why invest in the PSE?
Small, yet robust and growing fast
Great spring back potential
Efficient structure & operations within best international practice
Regulated market within international standards
PSE: Tried & “TESTED”
Undervalued stocks
Listed companies: consistent good financial performance
Strong reliable infrastructure and banking sector
Strong donor support in state building 24
Thank You
www.p-s-e.com
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