Jordan Times
Tuesday, January 13, 2004
Amman Stock Exchange scales new heights
By Samir Ghawi
AMMAN — 2003 was an outstanding year for the Amman Stock Exchange (ASE) which scaled new heights, eclipsing all records set since the bourse was established in 1978.Talking about the 2003 performance of the ASE at a press conference held Monday at the Jordan Securities Commission (JSC), Amman Bourse Board Chairman Mohammad Saleh Hourani indicated that the general price index closed last year at 261.5 points after peaking at 262.6 points on Dec. 23, 2003. The closing level was 53.8 per cent higher than the price index at the end of 2002.
According to Hourani, the volume of trade surged by 95.2 per cent last year, reaching JD1.9 billion, and the turnover ratio increased to 49.1 per cent, compared to 26.5 per cent in 2002.
The market value of the shares listed on the ASE went up by 54.6 per cent, to JD7.8 billion, representing 116.8 per cent of the gross domestic product. This rate was described by the chairman as being among the highest in the world, reflecting the relative importance of the Amman Bourse to the national economy.
The investments of non-Jordanians in the bourse increased from JD0.9 million in 2002 to JD81.9 million in 2003, Hourani said. JSE President Bassam Saket estimated the market value of shares owned by non-Jordanians at around 40 per cent.
The boom at the stock exchange was attributed to the great advancement in the legislative and technical realms of the bourse, which "now matches the most developed in the world."
Another remarkable achievement at the ASE was in the area of control and disclosure.
Hourani also highlighted the Jordanian economic growth over the years, the substantial decline in interest rates on bank deposits, low borrowing costs, less uncertainty in the region, the stability in the Kingdom and optimism of continued economic improvement in the future as key areas that attracted the interests of local, Arab and foreign investors to the stock exchange.
Saket, on the other hand, mentioned the various achievements and developments over the past year, such as issuing regulations governing margin financing and custodian operations, as well as issuing a guide specifying fines for violators of laws and regulations.
The JSC chief pointed out that 458 violations were detected in 2003; 376 of these violations were related to public shareholding companies listed on the bourse that did not abide by disclosure instructions.
He said that 391 violators, or 85 per cent, rectified their behaviour, noting that other measures were being taken against the remaining 15 per cent which did not amend their ways.
Saket revealed that the JSC last year granted licences to 35 businesses to carry out brokerage, consultancy and investment management operations.
AMMAN — 2003 was an outstanding year for the Amman Stock Exchange (ASE) which scaled new heights, eclipsing all records set since the bourse was established in 1978.Talking about the 2003 performance of the ASE at a press conference held Monday at the Jordan Securities Commission (JSC), Amman Bourse Board Chairman Mohammad Saleh Hourani indicated that the general price index closed last year at 261.5 points after peaking at 262.6 points on Dec. 23, 2003. The closing level was 53.8 per cent higher than the price index at the end of 2002.
According to Hourani, the volume of trade surged by 95.2 per cent last year, reaching JD1.9 billion, and the turnover ratio increased to 49.1 per cent, compared to 26.5 per cent in 2002.
The market value of the shares listed on the ASE went up by 54.6 per cent, to JD7.8 billion, representing 116.8 per cent of the gross domestic product. This rate was described by the chairman as being among the highest in the world, reflecting the relative importance of the Amman Bourse to the national economy.
The investments of non-Jordanians in the bourse increased from JD0.9 million in 2002 to JD81.9 million in 2003, Hourani said. JSE President Bassam Saket estimated the market value of shares owned by non-Jordanians at around 40 per cent.
The boom at the stock exchange was attributed to the great advancement in the legislative and technical realms of the bourse, which "now matches the most developed in the world."
Another remarkable achievement at the ASE was in the area of control and disclosure.
Hourani also highlighted the Jordanian economic growth over the years, the substantial decline in interest rates on bank deposits, low borrowing costs, less uncertainty in the region, the stability in the Kingdom and optimism of continued economic improvement in the future as key areas that attracted the interests of local, Arab and foreign investors to the stock exchange.
Saket, on the other hand, mentioned the various achievements and developments over the past year, such as issuing regulations governing margin financing and custodian operations, as well as issuing a guide specifying fines for violators of laws and regulations.
The JSC chief pointed out that 458 violations were detected in 2003; 376 of these violations were related to public shareholding companies listed on the bourse that did not abide by disclosure instructions.
He said that 391 violators, or 85 per cent, rectified their behaviour, noting that other measures were being taken against the remaining 15 per cent which did not amend their ways.
Saket revealed that the JSC last year granted licences to 35 businesses to carry out brokerage, consultancy and investment management operations.