Companies Guide for the Year 2003
The ASE published the Public Shareholding Companies Guide for the year 2003, the seventeenth edition, to the form of Lazer CD that functions automatically. This guide was designed in such a way to facilitate for investors and interested parties the searching for information related to public shareholding companies. It is worth saying that this guide incorporates a large quantity of financial information including general information on public shareholding companies and the structure of shareholders therein, in the same way the previous editions were prepared. As for the financial information, this guide contains financial information for the years 2000, 2001 and 2002.The cumulative data for the first and second markets in this Guide prevailed an increase for the year 2002 of 3.4% compared to the year 2001. Total shareholders equity for the year 2002 went up by 11.5% and net income increased by 2.3%, and the cash dividends increased by 33.4% compared to the year 2001. It is worth saying that the financial data were re-designed using the Excel Program with the aim to facilitate using these data.
The ASE joins the IOSCO as an affiliate member
The ASE was accepted as an affiliate member to the International Organization of Securities Commissions (IOSCO) at their annual meeting held in October 2003 at Seoul, South Korea. Mr. Mohammed Saleh Horani, Chairman of the ASE, represented the ASE at the meeting. Panels were held on the sidelines about rules and regulations that govern disclosure, corporate governance and rating agencies. The IOSCO is based in Madrid, Spain and has 107 ordinary members, 64 affiliate members and 10 associate members. It deals with all issues related to the securities' industry, particularly laws and regulations governing issuance and dealing, and seeks through cooperation to draft standards for raising capital market efficiency, exchange of information and expertise to develop financial markets, and consolidating efforts to create effective supervision and enhance the independence of securities markets. Joining this organization enables members to take advantage of the latest legislative developments in the securities industry as well as to take part in making such legislation.
International Monetary Fund (IMF) delegation visits the ASE
Mr. Jalil Tarif, the Executive Manager of the ASE received an IMF delegation who visit Jordan, Mr. Tarif briefed the delegation, on the structural changes of the capital market in general and the technical developments of the ASE in particular. The delegation expressed its appreciation of said achievements while Mr. Tarif responded to their queries.
The ASE performance have shown a great improvement over the last nine months of this year. The share price index of the ASE overshot its usual record during the trading session of Monday September 15th reaching 244.37 points, the highest since ASE's inception, closing at 237.18 point by end ofSeptember with a 39.50% rise as compared to the beginning of the year. The accumulative volume of trading from the beginning of this year till end of September was JD1201.7 million with a 45.27% rise as compared to the same period of last year. The accumulative number of shares raised to 692.9 million, and the executed contracts reached 564.7 thousand, namely an increase of 81.3% and 58.1% respectively, against the same period of last year. ASE capitalization was around JD7.0 billion, constituting 105.2% of the GDP. It is to be noted that all these are record figures, unprecedented on the ASE.
CNBC Arabia broadcasts shares traded on the ASE
As part of its policy to broadcast trading data through all possible means, the ASE started to have its traded shares broadcasted live on the CNBC Arabia channel. The ASE's share price index and losers and gainers companies during the daily trading sessions will also be broadcasted. CNBC Arabia is a news channel that is specialized in Arab and international economic and financial news, and is shown on the Arab Sat and Nile Sat.
Cooperation agreement with the University of Yarmook
On its premises, an agreement was signed with the Yarmook University to open up a Stock Exchange Simulation Room. It was signed by Mr. Tarif, from the ASE's side and Dr. Fayez Khasawneh, president of the University. The agreement stipulates for joint implementation and is part of the series of cooperation projects with productive sectors supported by the World Bank. The ASE will be providing the necessary human expertise and skills as well as the needed information to set up the project, while the University will contribute the place and human cadre. This project is part of the ASE's awareness-raising campaign aimed at educating the general public of its basic role in investment promotion and economic growth.
The ASE index reaches its all-time-high
The ASE market-weighted index continued its upward trend reaching its peak since the establishment of the AFM (Amman Financial Market). It went up by 4.5% by end of July closing at 227.9 points, an increase of 34% over the beginning of the year level. The ASE's capitalization grew to JD6.7 billion, a rise of 5.3% as compared with end of July and 34.0% as compared to the beginning of year. This figure represents 102.3% of the GDP, which is considered as a high percentage comparable to those prevailing in international exchanges
Inauguration of two financial analysis training programs at the ASE
Under the patronage of H.E. Dr. Bassam Saket and in the presence of the ASE chairman H.E Mr. Mohammed Saleh Horani, Mr. Jalil Tarif the Executive Manager of the ASE, the head of National Fund for the Support of Institutions (NAFES), the assistant director for marketing of the Arab Academy for Financial and Banking Studies, and the Chairman of the Association of Certified Capital Market Professionals, the ASE inaugurated last August two training programs on fundamental financial analysis and technical analysis of securities with the use of computers. During the inauguration, Mr. Tarif explained that such courses were part of the ASE's policy to support training, upgrade the financial professions and raise the securities industry to its highest standards. He added that participants to such courses represented financial brokerage firms operating on the Stock Exchange, with some JSC and ASE employees. The program expanded over 20 days. These two courses were organized by the Arab Academy for Financial and Banking Studies in cooperation with the ASE and the Association of Certified Capital Market Professionals and the support of the National Fund for the Support of Institutions (NAFES) in an attempt to raise the quality of financial brokers and capital market institution employees through training on the latest methods of financial and basic analysis of security prices. This would serve the securities markets and improve their efficiency and liquidity. Participants received certificates by the end of the courses.
Study on the ASE efficiency
The ASE, represented by its Executive Manager, Mr. Jalil Tarif participated in the Workshop on Corporate Governance in Jordan organized by the Jordanian Forum for Economic Development at the Urdun Al-Jadeed Study Center, in cooperation with the International Private Enterprise Center and the World Bank Forum for Governance. In a paper entitled "Governance in Jordan" he presented public shareholding company governance, rules and laws regulating shareholder equity, Board responsibilities and stakeholder role in corporate management, transparency and disclosure of financial data and material information. He quoted some international experiences in corporate governance as well as corporate management in Jordan and the compatibility of these systems with international laws and regulations. Representatives of the Central Bank of Jordan, the banking sector, the JSC and companies operating in the telecommunications sector, the Chartered Accountants' Association and other economic and legal experts took part in the debate. This meeting is to prepare the path for Jordan's contribution in the regional meeting to be held in Cairo next September to discuss regional trends and the coming steps to develop corporate governance. The results of said regional meeting shall later be presented to the international conference to be held in Paris in November 2003.
Positive indicators for the ASE quoted by the AMF
The ASE index calculated by the Arab Monetary Fund (AMF) registered a remarkable 18.9% rise at the end of the second quarter of this year, standing at 135.7 points compare with 114.1 points in the first quarter of the year. The index rise as gauged against the second quarter of last year was 9.2% according to the quarterly bulletin published by the AMF in Abu Dhabi. The bulletin noted the remarkable increase in the market capitalization, the trading volume, the number of traded shares, the turnover ratio and other indicators for the ASE.
Outstanding Performance in the First Half Year with Record Indicators
The ASE performance indicators have reflected a remarkable improvement in the first half of this year, the weighted market capitalization index skyrocketed to 201.58 points during the Sunday 29th of June 2003 trading session, breaking all records since the establishment of the Amman Financial Market. It closed at 200.85 points by the end of the first half of this year, with a 18.1% increase as compared with the beginning of this year. At the sectoral level, the indices of all sectors went up, industry, banks and financial companies, insurance and services by 31.2%, 18.1%, 14.2%, and 2.6% respectively. Trading volume decreased by 9.6% to JD520.3 million against JD575.4 million for the corresponding period of last year. Traded shares went up by 30.9% totaling 337.8 million against 258 million for the same period last year. Number of transactions went up to 228.0 thousand, namely an increase of 28.0% as compared with the same period. In comparison with the beginning of year, the increase in the ASE market capitalization was 17.1%, totaling about JD5.9 billion or a 89.4% of the GDP.
Johns Hopkins University delegation visits the ASE
Mr. Tarif and his assistant Mr. Nader Azar received a delegation of postgraduate students from the International Affairs Department of Johns Hopkins University. Mr. Tarif reviewed the economic developments and structural adjustments that were implemented by the Jordanian government upon the directives of His Majesty King Abdullah the II, which contributed in boosting economic growth and investment in the kingdom, and in attracting more foreign investment. Mr. Azar briefed the visitors of the latest developments on the Jordanian capital market both at the legislative and supervisory levels, the qualitative leap made by the ASE in the technical fields, and the ASE performance. The delegation toured the ASE facilities including the Investors Gallery.
An Exchange of Visits and Training Program between the ASE and Istanbul Stock Exchange
As part of the efforts aimed at bolstering bilateral cooperation between members of the FEAS through bilateral exchange visits and training programs, an ASE delegation composed of Mr. Sami Hattab, head of the Research and External Relations Department, Mr. Adel Abu Assaf, from the IT Department, and Mr. Rami Abdallah from the Trading Department, visited Istanbul Stock Exchange where they undertook a training program prepared by the Istanbul Stock Exchange on research and statistics, market operations, surveillance , derivatives market, IT, and settlement and clearance systems. The delegation briefed on the Turkish experience in international relations and on how to attract local and foreign investors.
The ASE received groups of students from Applied Science University, Economic and Administration Science College. Mr Amjad Al-Qudah presented to the delegations an explanation on trading mechanisms and latest developments, which were achieved in the ASE.
ASE's Performance During April
The ASE's performance during April was outstanding, trading volume reached JD83.4 million, an increase of 81% comparing with March. The trading volume on the ASE till the end of April reached JD232.4 million, compared with JD305.3 million to the same span of 2002. The general price index, weighted by market capitalization, closed at 183.2 points at the end of April, an increase of 7.5% of March closing, and an increase of 7.7% of 2002 closing.
The ASE received groups of students from Irbid Private University, Philadelphia University, and The Intermediate University College. Mr Amjad Al-Qudah presented to the delegations an explanation on trading mechanisms and latest developments, which were achieved in the ASE.
Fourth General Assembly of the ASE
Under the chairmanship of H.E. Mr. Mohammed Saleh Horani, Chairman of the ASE board, and in the presence of Mr. Jalil Tarif, the Executive Manager, Dr. Ibrahim Abasi, the auditor, and Mr. Safwan Batayneh, the Jordan Securities Commission (JSC) representative, the fourth annual general assembly meeting of the ASE was held on March 27, 2003. The Board report's on ASE activities and future plans, as well as the audit's report on the ASE's budget, final statements, financial position, the 2002 annual budget, revenues and expenses and the cash flow statements, and the estimated 2003 budget were discussed at the meeting and the annual report and financial statements were approved. During the meeting, several issues raised by the ASE members have been discussed.
The ASE's Forth Annual Report
The ASE has issued its forth annual report, both in Arabic & English. The report reviews the ASE's major accomplishments during 2002, as well as the ASE's performance and the financial statements. The report also includes a summary on the economic situation and the performance of macro economic indicators in the Kingdom. In addition to the Arab and International Stock Exchanges performance.
The ASE aims at developing and improving the skills of its employees in areas related to securities industry and other ASE business, for example:
- Mr. Nidal Hamdan, Head of the Administrative and Financial Department, took part in the seminar held by the Arab Academy for Financial and Banking Services, in cooperation with the US Banking Association, in Cairo on International Accounting Standards and Financial Statements. The main speaker was Dr. Khaled Amin Abdallah.
- Mr. Mithqal Obeidat, Head of the Legal Department, participated in the meeting organized by the Cairo and Alexandria Stock Exchanges, in cooperation with the New York Stock Exchange, on Arbitration. An eminent group of experts presented their views on arbitration and its application.
ASE General Assembly Meeting
The ASE holds its fourth General Assembly Meeting on 27/3/2003. During the meeting, the report of the Board of Directors on the performance of the stock exchange and its future plans, as well as the auditors report, the financial statements, and estimated budget for the coming year and its legalization will be discussed.
ASE Performance in 2002
The Amman Stock Exchange (ASE) ended the year 2002 with an exceptional performance. In spite of the prevailing political and economic circumstances in the Middle East in particular and the world in general. Trading volume increased notably in 2002 to reach JD950.3 million an increase of 42.1%. Traded shares went up by 35.6% totaling 461.8 million as against 2001. This rise in trading volume and number of traded shares was coupled by an increase in executed transactions approximating 448.6 thousand or a 51.8% as compared with the year 2001. The value of traded development and corporate bonds in 2002 was around JD10 million or a 39% increase as compared with the year 2001. The value of inheritance and family transfers and companies excluded from trading reached to JD282.2 million. Trading value in the Secondary Market was around JD1242.5 million, an increase of 70.9% against 2001, it's the highest since 1978 when Amman financial Market was established.The companies' shares prices had discrepant performance, the insurance and industry indexes went up 12.6%, and 10.8% respectively, while the banks and services sectors had losses of 7.1% and 3.1% respectively. The Market capitalization weighted share price index went down by 1.6%, as compared with 2001. The un-weighted share price index gained momentum to reach 69.2 points, up by 7.1% against the year 2001. As for the market capitalization of listed companies on the ASE it went up by 12.3% in comparison to 2001, totaling about JD5029 million a 80.4% of the GDP. As for Non-Jordanians, the total value of shares were bought by Non-Jordanians in 2002 was about JD233.4 million, i.e. 24.6% of the total trading volume, Arab investors buying formed 85.7% of total foreign buying. Shares sold by Non-Jordanians were about JD232.5 million, 92.7% of which were sold by Arabs. Net investment shows a positive balance of JD0.9 million this year, compared to a negative balance of JD107.5 million in 2001.
ASE Price Index Sample for 2003
ASE has revised its share price index sample to reflect developments in the activities of listed companies. This end-of-year revision aims at making the index representative of changes to share prices. Through the implementation of approved criteria, such as market capitalization, number of trading days, number of transaction, trading volume and number of traded shares per company, eight companies were replaced, and the sample as a whole made up 90% of the total market capitalization, 94% of the trading volume and 85% of the number of traded shares on ASE. Its worth to be mentioned, Jordan Telecom Company has been added to the index sample, which can be found on the ASE website.
A delegation from Baghdad Stock Exchange Visit ASE
Mr. Jalil Tarif had received Mr. Subhi Azzawi the General Manager of Baghdad Stock Exchange (BSE) and Mr. Sherwan Mustafa the Executive Manager of IT department. The delegation had a closer look at the Jordanian experiment, especially in implementing the electronic trading system. The delegation expressed its appreciation of said achievements.