By Zulfa Shahrour

RAMALLAH, April 18, 2011 (WAFA) – Maher Al-Masri, head of the Palestine Capital Market Authority (PCMA), said on Monday that unlike other Arab markets, the Palestinian stock market was relatively stable during the first quarter of this year.

He said this was due to the profits the local companies had made, stressing that 70-75% of the local companies were making profit and abide by the market rules and regulations.

Masri said that the problem with the stock market is the level of trading. He said the current level is relatively low, pointing out to the small number of registered companies, which is 40, and the low level of trading by foreign companies through their investment portfolios. The PCMA, he said, is working on increasing level of trading in the stock market.

Masri said that the role of the PCMA is to oversee the work of the stock market and to reduce the financial risk in the work of the market. The PCMA, he said, implements the highest world standards in overseeing the work of the stock market, which makes it ready to function as a state institution.

He said there are some issues the stock market is not obliged to do, but that the PCMA would like to see implemented.

The regulations say a member of the board of a registered company should be a shareholder. However, said Masri, he would like to see non-share holders to also be members of the board to increase transparency.

The minority shareholders should also be able to be represented in the board, he said, which is not the case at the moment.

The PCMA, said Masri, is working with the individual companies to introduce these changes whenever possible to increase transparency and sound management.

W.S./M.A.