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Amman Stock Exchange

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Mkt/GDP. 2007* 4943.16 4471.71 471 ... 2603349.00 438.00 6/20/2000. 515792.00 386.00 6/21/2000. 2541227.00 394.00 6/22/2000. 514111.00 470.00 6/25/2000. 4906061.80 ... – PowerPoint PPT presentation

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Title: Amman Stock Exchange


1
Amman Stock Exchange
Jalil Tarif Chief Executive Officer
AMEDA Meeting
Dead Sea - Jordan October 2007
2
History of Capital Market
1930s Trading in Securities started
informally. 1976 Amman Financial Market (AFM)
was established. 1978 AFM started
operations. 1997 Capital Market Reforms
introduced, Securities Law issued. 1997 Jordan
Securities Commission (JSC) was established. 1999
Amman Stock Exchange (ASE) was established. 1999
Securities Depository Center (SDC) was
established 2002 New Securities Law Issued.
3
Capital Market in Jordan
Jordan Securities Commission (1997)
Amman Stock Exchange (1999)
Securities Depository Center (1999)
Public Shareholding Companies
Certified Financial Professionals
Mutual Funds
Financial Services Companies
Financial Brokerage
Investment Trusteeship
Investment Management
Financial Advisory
Management of Primary Issues
Custodian
4
Amman Stock Exchange (ASE)
  • Established in March 1999
  • Independent legal entity
  • Managed by private sector
  • Membership of brokers
  • Non for-profit

5
Securities Listing Requirements
Second Market
First Market
Right to Commence Operations
Financial Position Requirements Profitability Div
idends ( Cash or Stock)
Financial Reporting Annual Report Semi Annual
Report
Liquidity Requirements Free Float Turnover Tradin
g Days Number of shareholders
Continuous Listing Requirements
Bonds Government and Corporate Bonds are eligible
for listing
Financial Reporting Annual Report Semi Annual
Report Quarterly Report
6
Trading System Overview
Backup Trading Floor
Surveillance
Production Servers
Remote Brokers
Information Dissemination
(NSC)
(GL)
Websites
TV Channels
UNIX BOX High Availability Cluster Powerful Dual
Processor
CONNECTION Fiber Optics Leased Lines FACILITIES R
emote Trading Remote Inquiry Intranet
Data Vendors
Hosts Main Database Trading System
Mobile Phones
Market Monitors
Users Trading Floor Surveillance
Information Display Screens
7
Information Dissemination
  • ASE disseminates clear, accurate, sufficient and
    timely information and data on securities
    trading.
  • ASE discloses information on issuers, members,
    and material information. Public may have access
    to these material.
  • Data disseminated through GL stations, data
    vendors, market watch, ASE website, and TV
    stations.
  • Times of transactions information posted at the
    ASE site.
  • Post trade data sent to brokers through Domino.

8
http//www.exchange.jo
9
ASE Market Capitalization Trading Value
(US million)
Trading Value
End of September
Market Cap
10
Average Daily No. of Transactions
End of September
11
ASE Performance
()
End of September
12
Primary Market
(US million)
(Point)
End of September
13
Market Velocity
End of September
14
The Market P/E Ratio
(Times)
Historical Average 17
End of September
15
Non-Jordanian Ownership, September 2007
()
16
Recent Study by IMF
  • Investors may be able to achieve additional
    diversification by investing in the ASE
  • On a risk-adjusted basis (Sharp Ratio),the ASE
    outperformed most markets.
  • ASE compares favorably with many other regional
    markets in terms of investment climate.
  • Low price volatility.

17
Permissible Equity Markets Investment Analysis,
CalPERS
Poland Israel South Korea Chile Czech
Republic South Africa Taiwan Hungary Mexico Malays
ia Brazil Jordan India
Country Macro-Factors Political
Stability Transparency Productive Labor Practices
Thailand Turkey Peru Argentina Philippines Colombi
a China Morocco Sri Lanka Venezuela Indonesia Russ
ia Egypt Pakistan
Market Macro-Factors Market Liquidity and
Volatility Transparency Market Regulation/Legal
System/Investor Protection Capital Market
Openness Settlement Proficiency/ Transaction Costs
18
Future Plans
  • Jordan National Financial Center Project
  • Upgrading the trading system
  • Internet trading.
  • Demutualization
  • New ASE Dow Jones Index

19
Jordan National Financial Center Project
  • The Center will contain
  • ASE
  • SDC
  • Financial Studies Center
  • Brokers Offices
  • Investors Gallery
  • Other facilities
  • The Center total area 85758 m2 .(Buildings area
    51766 m2)
  • Total cost US 100 million
  • Expected completion date November 2009

20
Projects Site
21
Projects Concept
The external design of the building is inspired
from the Siqq of Petra which is considered an
ancient symbol in Jordans history.
22
Jordan National Financial Center Project
23
Upgrading the Trading System
  • A contract was signed with AtosEuronext Market
    Solutions and GL Trade for Euro 2.5 million.
  • New trading system V900.
  • Fully Linux environment.
  • System applied in major stock exchanges.
  • Better flexibility to implement market rules.
  • Highly improve system capacity and lower latency.
  • The new system will be up and running by May 2008.

24
Demutualization
  • The new Securities Law for 2002 authorized
    setting up other stock exchanges
  • The ASE may be restructured by a decision of the
    Board of Commissioners of the JSC, upon approval
    of the Council of Ministers.
  • Negotiations are taking place with alliances to
    support demutualization process.
  • The ASE shall become shareholding company totally
    owned by the Government as a first step.
  • The Government then shall sell a share to
    financial institutions, brokerage firms,
    international institutions and other parties.

25
New ASE Dow Jones Index.
  • An agreement with Dow Jones was signed in late
    2006
  • Dow Jones will calculate a new composite index,
    named The Amman Stock Exchange and Dow Jones.
  • The new index will be weighted by market
    capitalization of free float shares.
  • The index can be used as a base tool in forming
    financial derivatives and ETFs.
  • The index will be launched in late 2007.

26
Other Projects
  • Internet Trading.
  • Joining the WFE.
  • Codes of Corporate Governance
  • Introducing new instruments.
  • Marketing strategy.

27
International Exposure
28
Investment Opportunities
Political Stability
Privatization
No ceiling on foreign equity ownership
Free repatriation of investment and income
No taxes on cash dividends
Economic Openness and Free Trade
No capital gains tax
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