AMMAN (JT) — The price index of the Amman Stock Exchange (ASE) fell by 33 per cent this year and the bourse’s trading value was down by 16 per cent compared to 2005 figures.

According to Jalil Tarif, ASE’s chief executive officer, the price index, weighted by market capitalisation, ended 2006 at 5518 points on Wednesday compared to 8192 points at the end of 2005.

The price index weighted by float shares ended this year at 3014 points compared with 2005 closing at 4260 points a 29 per cent drop.

This outcome was a result of a 33 per cent drop in the financial sector index, a 19 per cent decline in the services sector index and a 16 per cent fall in the industry index.

Tarif indicated in a press release that the trading value during 2006 stood at JD14.2 billion, a 16 per cent drop compared to the year 2005.

However, the number of shares traded increased by 59 per cent reaching 4.1 billion shares, and the number of transactions increased by 44 per cent to 3.4 million transactions.

Noting that the turnover ratio for the ASE increased to 101 per cent compared with 94 per cent for the year 2005, Tarif described the ASE performance indicators for this year, except the trading value, as “the highest since the Amman Financial Market was established in 1978”.

The ASE market capitalisation totalled JD21.1 billion on Wednesday, the last trading day for this year. The amount was 21 per cent lower than the total at the end of 2005.
However, the total this year represented 234 per cent of the gross domestic product, a percentage considered to be a high ratio on the international level, reflecting the importance the ASE plays in the national economy, Tarif pointed out.

During 2006, the net investment of non-Jordanians increased by JD152 million, compared to JD413.4 million during 2005. As a result, non-Jordanian ownership in the ASE market capitalisation increased to 45.1 per cent at the end of 2006.

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