Amman market stock
The Amman stock market was established in the year 1999 and functions as a privately run non-profit organization that has both financial as well as administrative autonomy. It is certified for the trading of securities and is administrated by a board of directors that consists of seven members. The chief executive officer monitors the daily activities of the market and reports them to the board.
There are 65 brokerage firms that are members of the Amman stock market. The Amman City> stock exchange is a member of the Federation of Euro-Asian Stock Exchanges (FEAS), the Union of Arab Stock Exchanges and also is an affiliate with the International Organization for Securities Commissions (IOSCO) and World Federation of Exchanges (WFE) .
The Amman stock market aims towards functioning with transparency and provides a secure atmosphere for trading securities and on the same hand it also guarantees the rights of its investors. For functioning in a proper way the Amman stock market has adopted directions that are internationally recognized for the listing criteria of securities and market divisions. For carrying this out successfully they function along with the Jordan Securities Commission on matter related to surveillance and also has good bonds with international markets and other associations and exchanges.
The functions of the Amman stock market include:
Providing modern and effective facilities and equipment for trading the recoding of trades and publication of prices
Encouraging an active market in listed securities based on the effective determination of prices and fair and transparent trading
Monitoring and regulating market trading, coordination with the JSC
Ensuring the provision of timely and accurate information of issuers to the market
Setting out and enforcing a professional code of ethics among its member directors and staff
Broadcast market information to the public
Main Indices of Amman Stock market
The Amman City stock exchange indices are used for the representation of the way in which the stock prices move and to assess the performance of the exchange expressed as returns. These indices are calculated based on the latest closing prices that are reviewed everyday. These indices consist of 70 companies that are classified into the first and the second market.
These ASE indices are adjusted so as to maintain the stability and protecting them from the sudden market drifts. With the help of these indices the exact market trends can be assessed. The components of the indices of the Amman stock market are reviewed and attuned every year. However at times there are some adjustments that are made for stocks that have been not traded permanently or for a long time.
The market division
The share trading in Amman stock market basically takes place in two markets namely the First and the Second market. These markets are divided as per the profit and the liquidity criteria of the company.
The listing requirement in the First market:
The shares must have been previously listed for one full year in the Second Market
The company must have earned net pre-tax profits for at least two out of the last three years
The Net Shareholders? Equity must not be less than 100% of the paid-in capital
The Free Float in the company must not be less than: 5% if the capital is JD50 million or more.
The days of company trading must not be less than 20% of the overall trading days for the fiscal year, and trading must be with at least 10% of the free float of the company for the same period
The number of shareholders must be 100 or more
Foreign investment of the Amman Stock market
In the last few years there have been a number of investments in the Amman stock market. The foreign investment policies of the Amman stock exchange aim at promoting foreign and Arab investments. According to the By-Law No. 54 that was taken out in the year 2000 foreigners can have the full capital ownership in companies in almost all the sectors of the market.
The latest statistics for foreign investments in March 2007 are as follows:
The value of shares that were bought by non-Jordanians came up to JD255.1 million.
The cost of shares sold by non-Jordanians came up to JD65.6 million
The net investment by non-Jordanians increased by JD77.8 million
Towards the end of March it was seen that 45.9% of the shares, in the Amman stock market capitalization were owned by- non-Jordanians, 34.9% by Arabs and the remaining 11.0% by non-Arab investors.
The trading rules of the Amman stock market are carried out through the electronic trading system. This is regulated by a code of ethics and monitored by the administrative and regulatory aspects related to electronic trading.
Advantages of investing
The AmmanCity> stock market provides its investors with secure investments in a well-managed internationally amenable market, access to rising market growth with unmatched possibility for return, geographic diversification for balanced portfolio management.
They provide companies with visibility and publicity in the marketplace; access to growth capital; enhancement of corporate reputation and credibility; access to a broad range of domestic and international investors; facilitated mergers and acquisitions in an orderly market place.
You can trade in the Amman trading market from Sunday to Thursday from 9.30 a.m. to 12.15 p.m.
The future of Amman stock market
Amman stock market is working on various future projects like
Up-gradation of the technical infrastructure
Applying for full membership in the World Federation of Exchanges
Introduction of internet trading
Improve on-line trading information
Launching new financial instruments
Introduce a new composite index and a blue chip index in cooperation with International Index provider.
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