Jordan’s Inter Exchange Report

Wednesday, 25 April 2007

Jordan’s  Capital Market Day

 Under the patronage of the Jordan Securities Commission (JSC), the Amman Stock Exchange (ASE), in cooperation with the London Stock Exchange (LSE) and in partnership with the Securities Depository Center (SDC), organized a Jordan Capital Market Day seminar at the London Stock Exchange on the 1st of February 2007, to maintain ways of communications with world financial markets and international investors. 

 The meeting was attended by around 40 investment managers representing the largest funds managers in the United Kingdom that invest in the Middle East and North Africa.  Jordanian companies representing major financial and industrial institutions also took part in the day.

 The importance of such day that it provides a major opportunity for Jordanian companies and British investors to meet and explore joint investment opportunities. Meeting investors in London is crucial for companies that wish to raise their international profile because of London status as one of the leading financial centers in the world.

It is noteworthy to mention here that the most important foreign companies that participated in the seminar included:  JP Morgan, Merrill Lynch International, Deutsche Bank, Citigroup, Genesis Investment Management, Aberdeen Asset Management, AXA Framlington, F & C Asset Management, Fortis PIM, Hoodless Brennan, IAF Group, Jefferies,  Numis Securities, Panmure Gordon, Schroders, Seymour Pierce, and Walker, Crips, Weddle & Beck.

 Participating companies are: Arab Bank, The Housing Bank For Trade and Finance, Jordan Investment Trust, United Arab Investors, Taameer Jordan, Middle East Complex For Engineering, Electronics & Heavy Industries, Alia-Royal Jordanian Airlines, and Hikma Pharmaceuticals.

All details of the Day can be found at the following link:

ASE Investment Guide

 The ASE has issued the “Guide for Investing in the ASE”, which includes an introduction about the securities market and the purposes and goals of the Jordanian Capital Market Institutions, as well as the principles of investment in the stock exchange and the main regulations that need to be adhered to by investors.  The Guide also stated the guidelines, the glossary and the financial ratios used in capital markets, due to their importance for people who are interested in and who deal with the Jordanian capital market.

The issuance of this Guide is in line with the ASE’s keen interest in enhancing its connections and continuous outreach with the local community as well as its policy of promoting the investment culture and raising the awareness of citizens and people who deal with securities.

 ASE Website

The ASE website won for the third year the Award of the best financial website in Jordan during its participation through its website in the Regional Website and Information Technology Exhibition (WEBIT 2007) that was held in Amman.

 Non-Jordanian Investments

 The total value of shares that were bought by Non-Jordanian investors since the beginning of 2007 until the end of March was JD753 million, representing 21.4% of the overall trading volume, while the value of shares sold by them amounted to JD670.6 million. As a result, the net of non-Jordanian investment since the beginning of 2007 until the end of March showed an increase by JD82.4 million, compared to an increase by JD50.6 million for the same period in 2006.

 Arab investors purchases since the beginning of 2007 until the end of March was JD670.1 million, or 89% of the over all purchases by non-Jordanians, while the value of non-Arab purchases amounted to JD82.9 million, constituting 11.0%. Arab investors sales amounted to JD481.4 million, 71.8% of non-Jordanians total sales, while the value of non-Arab sales amounted to JD189.2 million, representing 28.2% of the total sales by non-Jordanians.

 Non-Jordanian ownership in companies listed at the ASE by end of March 2007 represented 45.9% of total market value, 34.9% for Arab investors and 11.0% for non-Arab investors. At the sector level, the non-Jordanian ownership in the financial sector was 48.2%, in the services sector was 35.9%, and in the industrial sector was 44.7%.

 ASE Performance

 The ASE performance indicators have revealed a remarkable improvement during the first quarter of the year 2007. The weighted by market capitalization price index closed at 6149 points at the end of March, a 11.4% increase in comparison with the end of 2006. The weighted by free-float market capitalization price index closed at 3274 points at the end of March, an 8.6% increase in comparison with the end of 2006. At the sector level, sector indices increased for each of the Services, Industry, and Financial sectors by 13.7%, 7.8%, and 7.4% respectively. The trading volume during the 1st quarter reached US$5 billion. The number of traded shares increased to around one billion shares. The number of executed transaction reached around one million transactions. Market capitalization of listed companies reached US$33.1 billion, an 11.5% increase against the end of year 2006, constituting 233% of the GDP.