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Aweidah: the PEX sustains immunity towards political issues that may provide a source of protection for foreign investment portfolios

2011-06-20

The CEO of Palestine Stock Exchange Mr. Ahmad Aweidah assured that the PEX sustains immunity towards political issues that may provide a source of protection for foreign investment portfolios which decide to invest in PEX. This came during his participation in a promotional event for "Rasmala Palestine Equity Fund" that was organized by Rasmala Investments in the UAE on 15 and 16 of July 2011, following the announcement of Rasmala in cooperation with the Palestinian Investment Fund to launch Rasmala Palestine Equity Fund in May, in which its investment is expected to reach $115 million.

Aweidah indicated that the limited correlation between the Palestine Stock Exchange and international and regional capital markets, and its relative immunity towards political issues especially that the Palestinian economy works always under volatile political developments, had granted the PEX several advantages that made it a magnet for foreign investment, stressing out that the PEX will continue its “Road Shows” to raise awareness about the multi advantages of investing in the Palestinian listed stocks. He pointed to the diversity of nationalities of the foreign investment in the Palestinian market, especially Qatar, Kuwait and the United Kingdom, which are the most important sources of external investors in the stock market.

Aweidah clarified that the Palestinian Stock Market witnessed 6 new listings that had raised its market capitalization from $2.5 billion to around $3 billion, indicating that Al Quds index had topped all the indices of Arab Capital Markets in 2011, in which recorded an increase of 2.50% until the mid of June opposed to a variable declines recorded by the region indices.

It should be noted that “Rasmala Palestine Equity Fund" is registered in Luxemburg, and this may encourage the entry of foreign investment portfolios which may be reluctant to enter the Palestinian market directly. The Fund is open for weekly payback periods, and represents one of the most attractive opportunities for investment based on the performance of the Palestinian market which is distinguished by a PE ratio that doesn’t exceed 9 times, in addition to a dividends yield of 7% in 2010.