The ASE Index Quarterly Review
Mr. Nader Azar the Chief Executive Officer of the Amman Stock Exchange (ASE) said that the ASE has conducted the periodic quarterly review of the ASE index constituents in purpose of ensuring that the ASE General Price Index reflects the market performance and the trading activity of the listed companies. By this rebalancing, the activity of listed companies in regard to trading during the last quarter has been reviewed. After that, the ASE has conducted its screening process for all listed companies using the full market capitalization of the companies and the number of trading days during last quarter. It is worth mentioning that the criteria adopted by the ASE are similar to the criteria applied by many leading international index providers.
Mr. Azar added that as a result of this review, (8) companies have been excluded from the index sample and other (8) companies have been added. The companies that have been excluded from the index sample were: Arab Financial Investment, Afaq Holding for Investment & Real Estate Development Co. P.L.C, General Investment, Al- Sharq Investments Projects(Holding), Al-Ekbal Printing And Packaging, Societe Generale De Banque - Jordanie, Al-Amin For Investment and The Industrial Commercial & Agricultural.
The companies that have been added to the index sample were: Al-Nisr Al-Arabi Insurance, Jordan Decapolis Properties, Petra Education Company, Comprehensive Multiple Transportations Co., National Chlorine Industries, Nutri Dar, Intermediate Petrochemicals Industries Co. Ltd., And United Iron & Steel Manufacturing Co. P.L.C.
As part of the process, the ASE calculated the free float for all listed companies at the ASE based on the data Received from the Securities Depository Center. This review also includes the reduction of the weights for some companies to maintain the 10% cap that applied to index constitutes.
Mr. Azar clarified that the index sample includes (100) companies which are the most active in the ASE and the highest in terms of market capitalization. The full market capitalization of the index constituents represent (91.2%) of the total market capitalization of the companies listed at the ASE. The free float market capitalization of the index constitutes represents (94.2%) of the total free float market capitalization of the listed companies at the ASE.
In light of the above, the index constituents will be modified on the 2nd of January 2019. Interested parties can access to the constituents of the index with the new weights through the following link.