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Al-Quds index continues to follow the regional and international markets' movement ignoring the good performance of the Palestinian companies.

2008-10-19

Palestine securities exchange index insisted last week to parallel the regional markets" indices, ascending and descending, despite many economists and analysts" assurance that Al-Quds index tracking to other exchanges is unjustified regarding the weak correlation between the PSE and other regional and international markets. After Al-Quds had gained more than 44 points in the first three trading sessions from the week, it fell by approximately 49 points in the last two sessions to close at the level of 563.09 points declining by 4.71 points or %0.83 comparing to its closing in the previous week. Al-Quds index" movement was similar to the Arab exchanges" indices which in their turn under the effect of the volatility in the international markets, where optimism had vouched in the first half of the week regarding to the success of the steps that had been taken by governments and central banks in the world in order to calm down the markets, but they had returned falling in the second half of the week by showing negative results about the U.S economy. Also after months of Palestinian economists commitment of not commenting on the international financial crisis and it"s probabilities on the Palestinian economy, the statements had been intensified in the last two weeks in order to reassure the traders and to assure that the reaction in the PSE is unjustified, indicating that banks and PMA"s deposits is in safe in addition to the smallness of the outsider investment portfolios in the PSE and that none of them had closed their positions in the Palestinian market. Also the chairman of the CMA assured that the authority had made an examination on the reinsurance companies that it is dealing with and concluded that they are ranked with high classifications and hadn’t been affected by the international financial crisis. And in another step to calm the market, PALTEL group announced that it had pledged JD 20 million to invest in the financial markets when the huge declines in the stocks prices offered a serious investment opportunities, also PADICO the largest holding company in Palestine assured that the financial crisis" effect is limited on the company due to concentrating %87 from its investments in operating activities inside Palestine.