The Palestine Securities Exchange (PSE) during the Second Intifada : Challenges and Achievements

Abstract

The Palestine Securities Exchange (PSE) was incorporated as a private

shareholding company in early 1995, with the Palestine Development &

Investment Company (PADICO) and (SAMED) as its major investors.

The aim of this study was to know the concept of the securities exchange

and also to testify the impact of the bad political and economical situations

on the Palestinian securities exchange and the companies listed on it.

To achieve this purpose, we examined the Alquds index for the period

from (1997 To April 2005), we also randomly selected four companies as a

sample in order to help us determine and classify the activity of these

companies

The major findings were:

1. The strong relationship between the political and economical stablilty

and the availability of healthy investment environmental.

2. There was major impact of the Intifadah on the companies and great

losses occurred during the study period.

3. lack of knowledge and awareness of the importance of investment

among those who have surplus or fear of risking their money in any

investment due to the closure of geographical areas and the bad

political situations in addition to the sharp decrease of the

individuals‘ income which surely effected the possibility and ability

of entering the investment market. In the light of the findings, we suggested a number of recommendations:

1. Encouraging the capital of the internal and external owners to establish

their own projects in Palestine.

2. Legislating acts and rules, which control the market activity and help

to create full confidence for the investor.

3. It is very important to mention that the listed companies in the securities

market announce the fact and the real financial conditions of their

companies.

4. Creating an independent personality for the Palestine securities

exchange.

5. Updating the management schemes of the listed companies.

6. Organizing awareness programs for the public especially regarding

clearing the advantages of investing in securities market and bonds.

7. Providing the information and necessary data for all investors about

market and the listed companies to provide equal opportunities to

gain profits.