Market Closed Date 30/04/2017
Exchange news 2005

December 2005

 

New Mechanism for Calculating Open Price

The ASE Board of Directors decided during its session on 23rd November 2005 to adopt a new mechanism for calculating the open prices for companies that increase their capital through private placement. Opening price is calculated for the said companies on ex-date day (the next working day following the tenth day of the Jordan Securities Commission (JSC) board acceptance of the registration of the increase and specifying the day that shareholders have the right to take part in the company’s private subscription).  The ASE calculates a new opening price for those companies while taking into consideration the closing price of the company after ten the day of the JSC approval in addition to the capital increase, on the basis that it is equal to sum of the company market value prior to the private subscription and the value of the subscription proceedings divided by the company news capital. This mechanism will replace the ASE’s current one of not calculating a new opening price for those companies. The decision is important to maintain the liquidity of listed securities and will enable securities owners to deal with securities in a speedy manner, especially in the increasing number of companies that increase their capital thought private subscription.

October 2005

Election of the Third ASE's Board
The General Assembly for ASE held it's meeting in September 8, 2005, to elect a new Board of Directors for the coming three years, which is the third Board since establishing the ASE on March 11th, 1999. Jordan Islamic Bank For Finance And Investment on its behalf Mr. Adnan Madi and the Housing Bank for Investment and Trade on its behalf Mr. Saker Abudfatah were elected as representatives of banks licensed as brokers and brokers, which are owned by or associated with banks. Two members were elected as representatives of financial services companies licensed as financial brokers whom are Al-Amal Financial Investment on its behalf Mr. Jawad Al-Karoof and Aman For Securities on its behalf Mr. Younes Al-Kawasmi. The elections results was approved by the Jordan Securities Commission (JSC) in their session in September 12, 2005, the JSC has also appointed H.E Mr. Mohammad Saleh Hourani, Mr. Mansour Haddadin and Mr. Abdulhadi Al-Alaween as ASE members from the private sector. The Board of Directors elected H.E Mr. Hourani as a chairman and Mr. Haddadin as a vice chairman.

 

September 2005

Election of the third Amman Stock Exchange's Board of Directors
The General Assembly of the Amman Stock Exchange (ASE) was convened on September 8, 2005, during which the election of a new ASE Board of Directors took place. According to ASE internal regulations, two members representing banks licensed as brokers and brokers which are owned by or associated with banks and two members representing financial service companies licensed in the field of financial brokerage are elected. Three other members are appointed by the Jordan Securities Commission's Board of Commissioners to the ASE Board to represent the private sector who are experts in legal, financial and economic fields.

August 2005

New Logo for Amman Stock Exchange
Starting on Sunday August 15, 2005 the Amman Stock Exchange started using its new logo which was designed while bearing in mind the following values, evocation and themes: •  Dynamism •  Modernity •  Advancement The logo is a symbolic expression of Amman Stock Exchange's mission. It also articulates visually its vision to keep on advancing as a distinctive body in Jordan for stock exchange.
Logo Geometrical Shape
An interactive and unevenly geometrical shape that symbolizes a start conveys the vigor, advancement, continues movement and progressiveness of the Amman Stock exchange. Moreover, the star shape design is organic, which inspires the image of something continuously moving and interacting.
Logo Colors
The use of the gray color reflects the vibrant and futuristic approach Amman Stock Exchange uses to achieve its mission and vision. The blue color reveals a corporate image. Therefore, the combinations of the two colors prove to be ideal for the desired image Amman Stock Exchange wishes to portray.
Logo Typography
The typography used is solid font by which the image of credibility and trust is inspired.

A National Campaign By Capital Market Institutions
The Amman Stock Exchange, the Jordan Securities Commission and the Securities Depository Center launched the national campaign, (the Jordanian Capital Market – A Safe and Prosperous Environment), that aims to enhance the national securities market, develop it, raise public's awareness about it, to increase the culture of securities investment and to save national assets. The campaign focuses on strengthening the idea and culture of investing in the securities market and encouraging Jordanians to save their assets in a secure and stable environment governed by law and regulatory legislations that are on par with international standards.
The purposes of the campaign:
•  To enhance the national securities market raising, develop it, raise public's awareness about it, and to entrench the culture of securities investment and saving national assets.
•  To strengthen the habit of saving assets among Jordanians in a secure and stable environment governed by law and regulatory legislations that are on par with international standards.
•  To encourage investors to diversify their investments in order to save their assets and minimize risks.
•  To continue to work on attracting and maintaining Jordanian and Arab capital abroad for investment in the national capital market.
•  To encourage the investor's knowledge of his rights and responsibilities by familiarizing him with the rules and regulations that govern the capital market and with the benefits of capital market investments as opposed to benefits from traditional types of investment.
•  To provide investors with good advice about their investments on the basis of accurate numbers and data in order to protect them and encourage them to diversify their investments, particularly the long-term investments in companies and securities.

Circulars and Disclosures on ASE Website
As part of its policy of stepping up market transparency and efficiency, the ASE started to disseminate all its circulars and disclosures the ASE on its website at the Arabic version Home Page. This step made by the ASE is yet another step of ASE's outreach policy aiming at providing immediate access to information to the largest segment of interested parties. Said information is to help investors to keep abreast of the latest news on the ASE, the financial brokers (members of the ASE) and public shareholding companies, by means of the annual, semi-annual and quarterly reports, their preliminary financial results and any other material information that said companies discloses and that may impact the stock prices. This service is free of charge and is considered as a qualitative move in terms of data dissemination, which is to satisfy investors and interested parties. All ASE circulars and disclosures the ASE receive will be posted on the ASE website for five successive days, following their publication, to enable those concerned to benefit thereof. The ASE website is one of the most active in the Kingdom, with more than 40 million hits a month.

Public Shareholding Companies' Performance, First Half 2005
Public shareholding companies' performance registered an improvement in their first half of the year 2005 against the same period of last year. Financial data of 135 companies, which reported to the ASE via their semi-annual reports, indicate a 4.9% total assets growth as compared to the previous year, amounting to JD37.3 billion; the shareholders equity increased by 18.4%, reaching JD5.7 billion. Pre-tax income increased by 131.6% to reach JD741.7 compared to JD320.3 million for the year 2004. At the sector level, the pre-tax income increased for the insurance sector from JD8.8 million in 2004 to JD44.7 million in 2005, namely a 410.2%, the services sector grew from JD59.0 million in 2004 to JD263.5 million in 2005, by 346.4%, the industrial sector, from JD72.5 million in 2004 to JD125.7 million in 2005, by 73.4%, and the banking sector grew from JD180.0 million in 2004 to JD307.8 million in 2005, by 71.0%.

Securities Listing Directives at the ASE
The Amman Stock Exchange (ASE) began implementing the Securities Listing Directives at the ASE after amending Article (5). The amendment features facilitating procedures for public shareholding companies that wish to list their securities on the ASE, whereby the ASE would handles securities listing procedures. The amended instructions, that were recently approved by the Jordan Securities Commission Board of Commissioners, include an obligation by securities issuers who wish to list their securities on the ASE to publish their securities data prior to trading on the ASE, which will serve the public trading in securities. The amendment comes as part of the policy of capital market institutions in Jordan that seeks to strengthen the investment climate in Jordan and to encourage companies to list their securities on the ASE while assuring the principles of disclosure and transparency in the market. It is noteworthy that the ASE has started implementing the valid Listing Directives since the beginning of July 2004. These Directives include major changes to the listing conditions, most important of which is committing the companies listed in the First Market of providing quarterly reports reviewed by their auditors. The amended Securities Listing Directives can be viewed on the website of the Amman Stock Exchange 194.165.154.66 .

ASE visits Euronext Stock Exchanges
Represented by Mr. Nader Azar, Deputy Executive Director, Mr. Adel Abu Assaf and Mr. Mohammad Shnewer, the Amman Stock Exchange (ASE) joined a delegation comprised of Jordanian capital market institutions on a tour of a number of capital market institutions in Paris, Brussels and Stockholm between 6-12 July 2005. During the tour, the delegation viewed trading regulations employed by these institutions, as well as their electronic monitoring systems. This visit comes as part of efforts by capital market institutions to develop and modernize the trading regulations that are currently in place and to use new regulations for monitoring trading operations.

July 2005

The New Sectoral Classification
As of July 2005, the ASE will adopt a new sectoral classification for the listed companies, which applies with the international standards. This new classification clearly show the nature and objectives of the company facilitating which will give investors an easy access to information for purposes of company financial analysis. It will also highlight the relative importance of each sector and thus provide an evaluation measurement tool of the company's performance in comparison with similar companies in the same sector. Based on this classification, companies listed at the ASE have been classified into three major sectors: the financial sector, the services sector, and the industrial sector. The financial sector consists of four sub-sectors: banking, insurance, financial services, and real estate. The services sector includes eight sub-sectors: energy and utilities, education, telecommunications, healthcare, commercial services, media, transportation, and hotels & tourism. The industry sector consists of eleven sub-sectors: pharmaceutical and medical industries, chemical industries, paper and cardboard industries, printing and packaging, food and beverages, tobacco and cigarettes, mining and extractive industries, engineering and construction industries, electrical industries, glass & ceramic industries, and finally, the textile, leather & clothing industries. The ASE has revised its main indicators and statistics based on the new classification. It has also recalculated its indices; the free float weighted index and the unweighted index for the main sectors and sub-sectors. ASE has also re-evaluated historical data; the trading volumes, market capitalization, and the non-Jordanians ownership information for the years (2002-2005) based on the new classification. These new data will be published through the ASE website 194.165.154.66 on a special section as well as in the ASE publications that will be restructured soon.

Performance of the Amman Stock Exchange
Performance of the ASE during the first half of the current year surpassed all expectations. Stock prices increased by (73.7%) over the first six months of the year 2005, and the weighted index closing at the (7374.7) point for the same period. At the sectoral level, the index increased for all sectors: insurance, services, banking and industry sectors increasing by (91.19%), (102.81%), (86.62%), and (27.76%) respectively. This increase in stock prices, in addition to increase of capital of many companies, led to a noticeable increase in the market capitalization of the ASE, which increased by JD(10.2) billion, reaching JD(23,23); an increase of (78.2%) over the end of 2004, and representing (302.9%) of the GDP. Trading volume reached JD(6.78) billion, and increase of (350.76%), compared to JD(1.5) billion during the same period of 2004. The number of shares traded increased by (140.9%) reaching (1333.12) million shares, compared with (553.38) million shares during the same span of 2004. As for number of transactions; the daily average number of transactions reached about (8.9) thousand; totaling (1088) million during the first half of 2005, an increase of (118.90%) over the same period of last year. Finally, the turnover ratio for the ASE over the first six months increased for all sectors. Turnover ratio in the services, industry, banking and insurance sectors increased by (67.88%), (45.26%), (38.97%), and (27.67%) respectively, thus increasing the overall turnover ratio to (51.0%), compared with (25.5%) for the same period of year 2004.

Amman Stock Exchange Publishes Stocks Opening Prices
The ASE has started the dissemination of information related to stocks' opening prices in its daily bulletins beginning June 2005. This step indicates the ASE's concern for continuous improving and upgrade of its bulletins and its keenness to provide important information that benefit investors and all market parties. The dissemination of the opening price of companies' shares present in the ASE in the daily and weekly bulletins, representing the price of the first transaction implemented on the company's share, reflects the importance of opening prices for investors in their investment-related decision-making process. It is noteworthy that the opening price has been placed instead of the reference price, which represents the basis for calculating the price limits movements allowed in the ASE. The reference price does not differ from the last closing price except in the case of reservation against the security resulting from that security's bid or ask outside permissible limits. This information is published in a special section of the trading bulletin. Moreover, the ASE has recently undertaken the update and development of its bulletins, so that they would include all the significant information that help investment-related decision-making processes. The ASE also publish this information on its website: 194.165.154.66 in the trading bulletins.

Training Course for Financial Brokers
The ASE has organized two training courses for financial brokers during June 2005 in cooperation with capital market institutions, with the participation of around 70 trainees from the licensed brokerage companies. These courses aim to provide the necessary qualified human resources in view of the Jordanian capital market's need for raising the number of financial brokers due to the noticeable increase of the number of people dealing in securities and of the trading volumes. During these courses, participants are introduced to the basic concepts and skills related to dealing in securities as well as the tasks and duties of each of the Jordan Securities Commission, the Amman Stock Exchange and the Securities Depository Center. Additionally, practical training courses are provided on the electronic dealing system that is used by the ASE and the systems of the Securities Depository Center. Successful completion of this course is considered one of the requirements for obtaining the license to practice the profession of brokerage for practitioners of financial professions.

June 2005

ASE Performance
ASE performance indicators revealed remarkable performance since the beginning of the year until the end of May 2005, as the weighted index closed at (6657.4 ) points at the end of May, a (56.81 %) increase in comparison with the end of 2004. At the sectoral level, sectoral indices increased for each of the Industry, Banking, Insurance and Services sectors by (%21. 8 ), (%66.8), (%65.1), and (%79.6) respectively. The trading volume increased since the beginning of the year to JD(4673.9 ) million compared to JD (1268.4) million with the same period of last year, a (%268.5) increase. The number of traded shares increased to (962.4 ) million shares in comparison with (439.6 ) million shares with the same period of last year, a (%118.9) increase. The number of executed contracts increased to (813.1 ) thousand contracts, an increase of (%107.2) in comparison with the same period of last year. The turn over ratio of shares at the ASE increased to (%) from (%) in 2004. Market capitalization of listed companies rose by JD (7.6 ) billion to JD ( 20.6) billion, a (%58.3) increase against the end of 2004, constituting (%269.0) of the GDP.

Meetings with the Judiciary
The JSC held a number of meetings at its headquarters with the Judiciary Council, the Amman Financial Court of First Instance, the ASE and the SDC in order to exchange knowledge about the financial markets legislations. Dr. Bassam Saket opened this meeting that was attended by a number of Jordanian Judges representing the Amman Court of Appeals as well as different First Instance and Magistrate courts of Amman, in addition to the CEOs of the ASE and the SDC. This meeting is one in a series of discussion meetings that the JSC, in cooperation with the Judiciary Council, will hold throughout a one-month period, and that aim at exchanging thoughts with a large number of judges in the Kingdom.
Important issues were discussed, particularly the main features of the Securities Law, JSC's regulatory role and its authority to supervise and control the parties that fall under its mandate, to inspect financial services companies and to investigate breaches. Dr. Saket said that the Securities Law has identified specific tasks for the JSC, mainly to protect securities investors, to regulate and develop the capital market and to create a favorable legislative environment for investment. He added that the JSC has undertaken the responsibility of achieving these goals through adopting the latest international standards and practices. Practical discussions and interaction took place between lawyers, judges, the of Commissioners, and the CEOs of the ASE and the SDC, directors of the JSC's technical departments during which important and new capital markets concepts established by the JSC were presented. Such concepts focus on establishing a culture of disclosure and transparency, in order to provide investors with adequate information that enable them to take informed investment decision, as well as on the importance of these practices in promoting confidence in the national capital markets. Mr. Jalil Tarif, the CEO of ASE, and Mr. Nader Azar, Deputy CEO, made presentations on the major latest developments introduced to the capital market at the legislative, technical and technological levels. Mr. Tarif stressed the importance of the role of capital market institutions in protecting investors, and establishing the principles of disclosure and transparency in a manner that enhances the efficiency and liquidity of the securities market. Mr. Azar pointed out the importance of the stock exchange in mobilizing savings, increasing economic activity, attracting foreign and Arab investment in addition to the large activity that the ASE has witnessed during the recent years.

Lecture at the Military Iftta Directorate
As part of the ASE efforts to interact with the local community institutions, Mr. Sami Hattab, Head of the Research and International Relations Department, was invited to lecture at the Military Ifta Directorate about the work mechanisms of the ASE and its latest developments. A large number of Muftis , coming from different sectors of the Armed Forces, attended the lecture that concluded by responding to a host of questions raised by the participants.

Isra'a University Delegation Visits the ASE
The ASE received a delegation of students from the Department of Financial and Banking Services at Isra'a University, who watched a special film on the ASE, presenting the historical development of securities trading in Jordan. The delegation also attended a lecture on the ASE, its trading mechanisms and its recent progress. Finally, the Delegation toured the different facilities at the ASE.

May 2005

The first quarterly report 2005
By virtue to the ASE Listing Directives, all companies listed at the First Market must submit reviewed quarterly reports during the first month follows the said quarter. Such a step, shall increase transparency and disclosure in the Jordanian capital market, by providing information to investors on companies' performance which help investors in making their investment decisions. The ASE received the first quarterly reports prepared by First Market companies. By the deadline; the number of companies that submitted their reviewed reports was 73, representing 89% of the overall companies listed on the First Market, inclusive of 6 companies that submitted un-reviewed reports to the ASE. Nine companies did not submit their reports within the time limit, in breach of Article 15(b) of the ASE Listing Directions, and the ASE shall be imposing penalties thereon as stipulated for in said Directions. Penalties vary from warning, fining to company de-listing. The ASE circulated the received quarterly reports to all its members through Intranet to enable them to inform their clients thereof. Copies of said reports were also posted on the ASE website (Arabic version) 194.165.154.66 in the section corporate actions news 2005/ quarterly reports.

Royal Defense College visits the capital market institutions
A delegation from the Royal Defense College, made up of high ranking officials, trainees and students, paid a visit to the capital market institutions, where they were received by Dr. Bassam Al-Saket, the Chairman of the Jordan Securities Commission (JSC), members of the Commissioners Board, Mr. Jalil Tarif, the ASE's CEO and Mr. Khalil Naser, Deputy CEO of the Securities Depository Center (SDC). Dr. Al-Saket briefed the delegation on developments made by the JSC since its establishments in terms of restructuring and development of the Jordanian capital market. He underscored the importance of communication between the capital market and public, security and civil institutions. Mr. Tarif gave a lecture on the latest developments made on the ASE. During its visit, the delegation took stock of the operation mechanisms of the capital market institutions, the electronic systems used in the ASE and how they operate, the latest legislative and technical developments on the ASE, the most significant achievements made by the ASE over the last few years and investment opportunities on the ASE.

A Provence University delegation visits the ASE
A delegation of MBA students from the University of Marsiellei-Provence-Aix in France was received by Mr. Jalil Tarif. This visit came as part of the cultural exchange program with the University of Yarmook. Mr. Sami Hattab, the head of the Research and International Relations Department briefed the delegation on the latest legislative and technical developments made by the ASE and showed them the ASE facilities and Investor's Gallery.

Use of new data dissemination systems
In line with its keen interest in continuous upgrade of the services it provides to its members to ensure efficient, rapid and fair information access, the ASE adopted new systems on its Intranet. IBM Domino.doc is now used to archive documents issued by the ASE to its members, and this includes broker work reports, trading bulletins, circulars, disclosures, budgets and ASE Instructions. Oracle system is used to convey data directly from the trading system to the brokers' internal programs without having to pass through any other files. Same Time system enables correspondence between the ASE and brokers and among brokers directly. All these software came to replace the Out Look program currently in use and which will be stopped during May 2005 . The ASE has trained brokerage firm staff on the use of all these new systems upon their installation on the brokers' hardware.

April 2005

Use of new data dissemination systems
In line with its keen interest in continuous upgrade of the services it provides to its members to ensure efficient, rapid and fair information access, the ASE adopted new systems on its Intranet. IBM Domino.doc is now used to archive documents issued by the ASE to its members, and this includes broker work reports, trading bulletins, circulars, disclosures, budgets and ASE Instructions. Oracle system is used to convey data directly from the trading system to the brokers' internal programs without having to pass through any other files. Same Time system enables correspondence between the ASE and brokers and among brokers directly. All these software came to replace the Out Look program currently in use and which will be stopped during May 2005 . The ASE has trained brokerage firm staff on the use of all these new systems upon their installation on the brokers' hardware.

March 2005

Getting live trading information from the ASE
Early March, the ASE has started to receive requests from companies and institutions that wish to get instant trading information issued by the ASE, in preparation for provision of said information under agreements that regulate said practice. Such a step solidifies the principles of disclosure and transparency at the Jordanian capital market, provides a fair and efficient market and meets the needs and requests of investors and interested parties in the market. Such a service will provide live trading information for a group of operators, institutional investors, companies, institutions and others. That will have a positive impact on Jordanian market by increasing its efficiency and liquidity. This step was the result of ASE's belief in the need to disseminate information on the trading and market depth live to help investors and decision makers make an informed and punctual investment decision.
It will be possible for investors to get live trading information against a monthly fee. Connection will be through leased lines or Integrated Services Digital Network (ISDN).

The ASE Sixth General Assembly
On March 10, 2005 the ASE held its Sixth General Assembly Meeting, during which the ASE Board Report on the ASE activities and future plans was discussed. The ASE auditor reported on its budget, financial statements and financial situation; the annual budget was discussed; and the income statement as well as the cash flow statement of 2004 were presented.

February 2005

Time of Execution of Trading Transactions
The ASE has started to post on its website the time of execution of transactions of listed companies. In addition to the time of execution, the information includes price, volume and quantity per executed order, selling and buying brokers executing each transaction. Said info comes in to reinforce the principles of disclosure and transparency of the Jordanian capital market, to provide a fair and efficient securities market and to meet the needs and requirements of investors and stakeholders on the Jordanian capital market. Such a service shall boost investment in Jordanian securities, given the fact that it will show investors details on traded securities and the commitment of financial service providers to execute selling and buying orders of their customers. This will be positively reflected on the Jordanian securities market and will enhance its efficiency.

 

The ASE New Website
The ASE has officially started the operation of its new website 194.165.154.66 and has cancelled the old one. The new website meets the requirements of investors and capital market stakeholders in terms of comprehensive and sufficient information that assist investors and researchers to make sound decisions. It also buttresses the foundations of disclosure and transparency of the Jordanian capital market and provides a fair and efficient market for securities. The ASE is fully convinced of the need to disseminate trading information and to inform investors of the market depth.

January 2005

Release of the eighteenth shareholding company guide
The ASE has just released its eighteenth public shareholding company guide CD for 2004. The CD operates automatically and friendly user to investors and researchers who would like to have information on public shareholding companies. Financial data is designed and put on Excel to facilitate dealing with the data. This release is part of an overall policy to provide information for all concerned with the securities market, and to enable them to study and analyze the situation of companies in a very easy, accurate and transparent manner. Just like in previous releases, the CD contains information about the companies themselves and the shareholder composition. As for financial data, it covers the years 2000-2003, an aggregated data for the years 2002-2003. The CD can be accessed on the ASE website 194.165.154.66 to facilitate access by investors from inside and outside Jordan.

Printing ASE instructions and regulations
To bolster full transparency and disclosure on the Jordanian capital market, the ASE published the following regulations in brochure form or pamphlet forms: ASE By-Laws, Instructions on Dispute Resolution, Listing Instructions, Fees and Commissions Regulations, Administration Regulations, Trading Instructions, and Disclosure Instructions. The ASE has circulated copies of said instructions to all public share holding companies and concerned parties.

Release of a CD on the ASE
To disseminate investor culture and to introduce the public to the ASE, the ASE has released a CD entitled “Fact Book” introducing itself, its objectives, members and contacts. In addition to that the CD contains the Securities Law, ASE regulations and instructions, listed securities, both shares and bonds, as well as comprehensive information about the history of, trading on and other related information to the capital market in Jordan, foreign investment on the ASE, a register of the most salient events on the ASE. You can also find an Investor's Guide with the fess of registration and listing and trading commissions, and some very useful websites that are of great interest to investors.