New Sectoral Classification and New Index for the ASE

Sunday, 9 July 2006

As part of the Amman Stock Exchange (ASE) policy for upgrading and developing its services to interested parties in the market, the ASE has recently introduced a new sectoral classification for companies listed at the stock exchange. The classification is in line with international standards and provides a clearer picture about listed companies in order to help investors make their investment decisions. The ASE also constructed a new index that is based on free float shares, which provides a better representation of the shares’ prices movement in the market without bias to large cap companies, thus limiting their impact on the index. In order to apply this classification on listed companies, the ASE had studied the international standards applicable in this field, as well as the sectoral classification adopted by some Arab and international stock markets, after which the classification used by the S&P’s was adopted with some minor modifications.