Jordan Times
Wednesday, January 5, 2005
ASE climbs to 10th rank among the most 27 attractive stock markets of emerging states
AMMAN — US-based Wilshire Associates Incorporated (WAI), an independent employee-owned investment advisory company, ranked the Amman Stock Exchange (ASE) as the 10th among the most 27 attractive stock markets of emerging countries.
The ASE ranked 12th on the WAI scale in 2003.
WAI provides investment products, consulting, and tools to fund sponsors, investment managers and individuals.
WAI serves over 600 organisations in over 20 countries representing assets totalling more than $12.5 trillion. Jordan Securities Commission (JSC) Chairman Bassam Saket attributed the improvement in the ASE ranking to regulatory and legislative changes that have been enforced over the last few years to develop the bourse as well as the improved services provided by the ASE. The ASE achieved record performance last year as the price index closed at 4,264 points, a 63.4 per cent increase over the level posted at the end of 2003. The volume of stocks exchanged in 2004 increased by 107 per cent reaching JD3.8 billion, whereas the number of stocks traded went up by 25 per cent to reach 1.3 billion stocks.
The total number of contracts executed rose by 52 per cent to 1.2 million in comparison with 2003. According to the ASE figures, the market value of stocks increased by JD5.3 billion or 67.7 per cent to reach JD13 billion. Currently, the JSC and the Central Bank of Jordan are reviewing proposals to amend the regulations governing the work of the financial market. The suggestions include expanding trading hours at the ASE from two to four — a proposal that economists across the country described as a smart move. Another proposal is to expand the margin of the limit up/limit down to seven per cent instead of the current five per cent to enable dealers and stakeholders sell stocks and repurchase them more than once. A third proposition is reducing brokerage commissions to range between 0.045 and 0.065 from the current 0.054 to 0.074.