Amman Stock Exchange expects more flotations

26 February 2012

Jordanian index is generally down, but hopes are still high for performance boost

The Amman Stock Exchange (ASE) expects an increase in initial public offering (IPO) activity as the bourse’s performance improves.

“Some of the listed companies have raised capital and others have the intention to raise capital through share issuance, but we also expect some IPOs during the year,” says Jalil Tarif, chief executive officer at the ASE.

The positive factors influencing the market include an improvement in non-Jordanian investment on the exchange. As of the end of January, foreign investments reached $12.3bn. The highest amount came from Saudi Arabia, accounting for 6.5 per cent of total investment, followed by Kuwait with 5.7 per cent.

“The wait-and-see sentiment is still here regionally and locally, despite the fact there are so many positive factors that should drive the performance of the market,” says Tarif.

Jordanian investments on the ASE have reached $14.2bn in total.

Profits of listed companies have increased by almost 30 per cent, according to Tarif, which has helped to boost the ASE.

“However, these factors have not yet reflected on the performance of the market, but it may be any time now,” says Tarif.

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