New Indices Pertain to First, Second and Third Markets
The Acting Chief Executive Officer (CEO) of Amman stock Exchange (ASE), Mr. Nader Azer, said that as of the beginning of January 2013, the ASE will start calculating new indices for each individual market of the three equity markets on which the listed companies have been distributed on - under the new Listing Directives- whereas the work on the new distribution has been started on November 1st, 2012.
The ASE will publish the closing values of these indices after the end of the trading session through its bulletins, which are posted on its website www.exchange.jo, Moreover, the value of said indices will be published throughout the daily statistics being prepared and published on its website .
Azar signified that the mechanism of calculating the new indices will adopt the methodology applied by Standard & Poor's Dow Jones (S&P Dow Jones), leading in indices. The methodology considers the market capitalizations of the free float shares in calculating the index, note that there is a capping factor of 10% on any company in the index. The methodology also depends on market capitalization and trading activity in choosing the sample of the index, it is the same methodology currently used by the ASE in calculating the general index and sectoral indices, also used by S&P Dow Jones to calculate the index Dow Jones ASE 100 of the ASE.
"As in other world indices, the ASE will have a periodic quarterly review of the indices sample coincide with a review of the general index sample", added Azar. It is worth mentioning that the closing of the year 2012 will be adopted as the base year with (1000) points' base value to the three indices.