Government Measures Expected To Boost Activity On Amman Stock Exchange

(MENAFN- Jordan News Agency)

Amman, Jan. 21 (Petra) -- The Amman stock exchange (ASE) anticipates a financial market revival in 2024, driven by record-high annual profits expected from listed companies. This optimism was expressed by ASE CEO Mazen Wathaifi during a panel discussion hosted by the Jordanian Businessmen Association on Monday evening.
Wathaifi highlighted the critical role of government economic policies in stimulating investment and trading. He noted, "We place significant reliance on government measures and decisions to enhance investment and activity in the ASE."
Key factors identified as opportunities for investors include the cessation of Israeli aggression in Gaza, expectations of declining global interest rates, and improved conditions in Syria, which Wathaifi said could encourage the creation of additional investment funds.
Wathaifi also expressed hope for several reforms to bolster the market, such as enabling government bond trading on the ASE, revisiting taxes on trading, and listing government-owned companies. These steps, he stated, would strengthen market confidence and stimulate trading activity.
The ASE has implemented several strategic initiatives, including advanced electronic systems aligned with global standards, a redesigned website, and a market development plan developed in partnership with the European Bank for Reconstruction and Development.
Additional achievements include revising regulatory frameworks, launching a new version of the ASE news application, and introducing smartphone apps to facilitate real-time market monitoring. Notable innovations such as the Total Return Index and electronic disclosure systems were also highlighted.
Wathaifi reported positive performance indicators for the ASE in 2024. The ASE General Index (ASEGI) rose by 2.4% compared to 2023, reaching its highest level since 2009, excluding 2022. The ASE20 index grew by 2.7%, and the Total Return Index (ASETR) increased by 10.3% over the same period.
Market capitalization of listed companies also expanded by 4.2% in 2024, achieving its highest value since 2015, excluding 2022. Non-Jordanian investors contributed significantly, holding 47.1% of the total market capitalization, with Arabs accounting for 31.5% and other foreign investors for 15.6%.
Despite these achievements, Wathaifi underscored the need for further incentives to lower trading costs, support the establishment of investment funds, and encourage bank and Social Security Investment Fund participation in the market.
Vice President of the Jordanian Businessmen Association, Mohammad Balbisi, emphasized the importance of reducing taxes on public shareholding companies and eliminating taxes on capital gains from stock and fund trading. These measures, he said, would attract more local and foreign investors and align with Jordan's Economic Modernization Vision.
Balbisi also called for enhanced public-private partnerships to support large-scale developmental projects through the ASE. Improving financial services, developing capital markets, and increasing liquidity were identified as critical steps to achieving this goal.
The discussion also highlighted the growing competitiveness in the region to attract financial market investments. Participants urged the government to introduce incentives, reduce fees, and restrict government bond trading to the ASE to enhance investor confidence and draw global funds to Jordan.
Established in 1999 and converted into a publicly owned company in 2017, the ASE continues to play a pivotal role in Jordan's economic landscape, leveraging strategic initiatives and regulatory reforms to foster market growth.

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