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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