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Company profits climb 107.2% in 1st quarter

ASE
(File photo: Jordan News)
AMMAN — Company profits climbed 107.2 percent on the Amman Stock Exchange (ASE) in the first quarter of the year, compared with the corresponding period in 2021, ASE CEO Mazen Al-Wathafi said.اضافة اعلان

In a statement Sunday, Wathafi said the figures were based on financial data of 93 percent of the 169 companies registered with ASE, a figure the ASE chief said illustrated the companies’ dedication to the principles and standards of disclosure and transparency.
945.3% Of earnings were from the service industry
The service industry had the lion’s share of the earnings at 945.3 percent, followed by the manufacturing sector at 268.7 percent and the financial sector at 26.8 percent.

Economist Salameh Aldarawi told Jordan News that profits of private sector firms have been on the rise since economic activity picked up with the full reopening of businesses in the wake of COVID-19.

Jordanian companies have promising opportunities because financial liquidity is available, Darawi asserted. He explained that the profits pointed to a hiked business activity, including exports to fill a gap caused by the Russian-Ukrainian war.

The ASE figures are reasonable and in line with the boosted activity in some industries, such as banking and mining, which have experienced unparalleled record earnings.

The private sector, according to Darawi, was unaffected by global political and economic developments, foremost the war in Ukraine. Rather “its impact is limited to public finances and the state treasury, while the private sector is currently enjoying its heyday,” he said.

Economist Wajdi Makhamreh said profits recorded by the mining sector exceeded expectations, despite global conditions that generated a shortage of some resources such as phosphate and potash, allowing Jordanian enterprises to export them significantly.

The Russian-Ukrainian war halted the export of several important commodities to the world, including minerals, Makhamreh said. Consequently, prices increased, and the demand rose globally for certain products, including Jordanian phosphate ores and potash.

Makhamreh said in an interview that the rise in profits of the service sector was mainly due to a heightened tourist activity. He explained that the tourism sector has been recovering since last spring after a ‘’hibernation’’ caused by closures in the aftermath of COVID-19 

The high rates were predicted and underline a recovery from the COVID-19 era, said economic expert Youssef Damra. Currently, metals and the banking sector are the frontrunners, he added.

Despite global disasters, the private sector stands to benefit, partly from the scarcity of basic materials globally, as prices and demand rise dramatically, resulting in an increase in profits for some firms, such as fertilizers in Jordan, according to Damra.

Damra predicted that the profits will continue an upward trend this year, as exports grew by  37 percent in the first quarter this year.


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