Palestine Stock Exchange seeks foreign investors

As peace talks stumble forward, "Barron's" has featured an article about the Palestine Securities Exchange entitled "Talking Stocks in Nablus" by Sam Fellman, highlighting the investment potential if peace moves forward.

The Palestine Securities Exchange was set up in 1996 and began trading the following year. Last year it was ranked 33 among international stock exchanges and it became a public company itself in February 2010.

The stock market in Nablus has 41 companies listed with a combined market cap of $2.4 billion. Daily trading turnover is $5-6 million. The market's blue chip index is called the Al Quds (Jerusalem) Index and there are six more indices mainly according sectors. 17% of companies are in the finance sector, 12% insurance, 22% industry, 27% services, and 20% investments.

The biggest company on the Nablus exchange is Palestine Communications with a market cap of $960 million.

According to Barron's the Palestine Securities Exchange Al Quds Index is down 62% from its November 2005 record but has added 0.66% in 2010.

But so much depends on peace. Faisal Ghori, an associate with Emerging Markets Management told Barron's, "Palestinian shares are cheap because of the market's small size and obscurity. But therein lies opportunity, particularly if a peace deal is signed."

Published by Globes, Israel business news - www.globes-online.com - on September 27, 2010