Major Developments of 2023

Highlights 2023

1. Legislative Environment:

• The Council of Ministers ratified the Regulation on Dealing with Foreign Stock Exchanges by Securities Companies No. (17) of 2023.
• The PCMA’s Board of Directors issued instructions for Transforming the Legal Form of Public Shareholding Companies Listed on the Exchange No. (3) of 2023.
• The PCMA’s Board of Directors issued Instructions No. (2) of 2023 on the Company’s Purchase and Disposition of its Shares.
• The PCMA’s Board of Directors approved the directive to separate the Deposit and Transfer Center from the Palestine Exchange, including the technical, administrative, financial and information systems aspects, in accordance with the provisions of the Securities Law No. (12) of 2004.

2. Measures Taken by the PCMA with the Aim of Mitigating the Impact of the Aggression on the Market:

With the beginning of the Israeli aggression on 7/10/2023, the PCMA at the level of the securities sector took a series of measures to preserve shareholders’ rights, the most prominent of which were:

• • The request to lift the trading restriction on all insiders, based on Instructions No. (1) of 2019 regarding dealing in securities, in response to the needs of listed companies to support the stability of their securities, and to monitor market conditions and transactions on the stock exchange. This is with the exception of any measures related to directives from supervisory regulatory authorities, sovereign bodies, or instructions from Palestinian courts and the Public Prosecution, starting from Sunday, October 15, 2023.
  • The request to approve the Palestine Electricity Company’s application to suspend trading of its securities starting from the trading session on Tuesday, October 10, 2023, while maintaining the execution of transfers through the Deposit and Transfer Center.
  • Request the listed companies that have headquarters, branches, or offices in the Gaza Strip to disclose through the Electronic Disclosure System (IFSAH) the nature of the damages they are exposed to as a result of the aggression on the Gaza Strip, the size of these damages, and their expected impact on business results and financial positions.
  • The circular regarding the temporary regulation of the mechanisms for companies to purchase their shares directly on 29/10/2023, which allowed listed public shareholding companies to purchase their shares without requiring the extraordinary general assembly’s convening and approval, and for a period of three months, so that a company only must submit a request to the PCMA to obtain its approval after verifying compliance with the legal requirements in accordance with the provisions of Law by Decree No. (42) of 2021 regarding companies, and instructions for companies to purchase and dispose of their shares No. (2) of 2023 issued by the PCMA.
  • Extending the disclosure period for the third quarter for an additional 30 days, so that the disclosure deadline is 17/12/2023 instead of 15/11/2023.

3. Services Provided to the Sector:

• Approving the nominations of board members and the appointments of professionals in member securities companies.
• Renewal of licenses for 10 member securities companies to conduct financial brokerage for their own account and on behalf of others, and to manage issuances. Additionally, renewal of licenses for 28 certified brokers, 6 financial advisors, and 5 banks to operate as custodians, as well as the renewal of the Palestine Exchange’s license and other legal entities to engage in investment advisory and issuance management activities.
• Addressing two written complaints and taking the necessary legal measures to protect the rights of market participants.
• Approve the following issuances:

4. Disclosure:

• The following table shows the extent of the listed companies’ commitment to disclose periodic reports during the year 2023:

* The number of companies committed to disclosure during the first quarter and the first half of 2023 decreased due to the granting of listed insurance companies an additional period for disclosure until 31/7/2023, in order to review their data based on Standard (17), based on the PCMA’s Board of Directors Resolution No. (8/2023) in its meeting No. (2/2023) held on 12/4/2023, and as a non-extendable deadline.

5. Regional and International Cooperation:

• Membership of the working Committee emanating from the Union of Arab Securities Authorities, which is concerned with preparing a pilot study on best practices in the field of combating money laundering and terrorist financing within the Arab financial markets.
• Membership of the working Committee emanating from the Union of Arab Securities Authorities, which is concerned with preparing a pilot study on the principles of sustainability in the Arab financial markets.
• Participating actively in the World Investor Week for the sixth consecutive year and implementing specialized awareness programs focused on important topics related to the basics of investment in general, most notably: sustainable financing, the risks of investing in crypto currencies.

Sector Statistics 2023