Amman stock market
The Amman stock market is focused around the Amman Stock Exchange, abbreviate ASE. Just as the name suggests, the Amman Stock Exchange is located in Amman, the capital city of the Hashemite Kingdom of Jordan. Amman – sometimes spelled Ammann – is the administrative and commercial centre of Jordan and the focal point not only for the Amman stock market but for the entire Jordan stock market.
The Amman Stock Exchange is a fairly new exchange, founded in 1999 as a non-profit, private institution granted with both administrative and financial autonomy. The Amman Stock Exchange is authorized to facilitate securities trading on the Amman stock market and governed by a Board of Directors consisting of seven members. The day-to-work is the responsibility of a chief executive who reports to the Board of Directors. Today, 65 brokerage firms active on the Amman stock market are members of the ASE.
As mentioned above, the ASE facilitates securities trading on the Amman stock market, and it operates a bond market and an equities market. The equities market is divided into two different markets: the First Market and the Second Market.
The Amman Stock Exchange have several different indices, including the ASE Market Capitalization Weighted Index and the ASE Unweighted Index. According to estimations made by the World Bank, the stock market capitalisation of listed companies in Jordan reached US$37,639 million in 2005.
The Amman Stock Market is naturally heavily influenced by the overall economic situation in Jordan. Since 1995, the economic growth in this mall kingdom has been slow and the real GDP has increased with no more than 1.5% annually. The official unemployment rate for Jordan is 14%, but most experts agree that the unofficial rate is at least twice as high. Both budget deficit and public debt has stayed at a high level, but inflation has been kept low since 1995. One positive aspect of the Jordan economy is the fact that the export of manufactured goods have increased at an annual rate of 9%, and this is naturally good new for the Amman stock market. Monetary stability has also been reinforced, even during the period in 1999 when King Hussein fell ill and died.
Jordan has entered a peace treaty with Israel, but security-related limitations concerning trade with the West Bank and the Gaza Strip continues to be a problem and has greatly reduced the Jordan exports. When King Abdullah ascended the throne after the death of King Hussein, he managed to improve Jordan's relations with Syrian and the Arabic states of the Persian Gulf, but this has yet produced only a minor effect on the Jordan economy an the Amman stock market. Jordan is now focusing on attaining a WTO membership and entering a Free Trade Agreement with the United State, something that is believed to increase export and boost the Amman stock market. Jordan is also hoping for more tourists to visit now that the peace treaty with Israel has been signed. Jordan offers a sunny climate, sandy beaches and pristine waters and if they would emerge as an alternative to Egypt among holiday makers and scuba divers that would have a welcome effect on the Jordan economy.
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