Palestine Securities Exchange Price Fluctuation Limit

During the previous nine months, the Palestine Securities Exchange (PSE) has been adjusting its procedures in accordance to the economic and financial reports in Palestine. These adjustments were implemented in an effort to reduce the negative effects of the current political situation imposed, and to enhance the investor's confidence in the market by PSE's commitment to its goals.

Accordingly, in the PSE's board of directors meeting convened on June 27, 2001, the board resolved to adopt a policy of a price fluctuation limit of 5% from the previous session's close price of shares listed, as well as keeping the trading days as they are: Monday, Tuesday and Wednesday.

The price fluctuation limit of 5% was previously adopted, and in light of the current crisis the PSE has adopted different limits appropriate to the situation. The return to the previous limit will stabilize prices in response to the present supply and demand in the market.

The PSE administration expects the cooperation of market participants in the securities sector, particularly the listed companies in providing investors with information pertaining to its operations and finances.