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October 18 2021 5:46 PM ˚

Optimism in Q2 results sustains ASE gains

Value-traded-by-sector
(Amman Stock Exchange)
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AMMAN — Amidst optimism for second-quarter performance of companies listed in the Amman Stock Exchange (ASE), the exchange’s index rose by 0.1 percent, closing at 1,852.45 points.اضافة اعلان

Since the beginning of 2021, the ASE has been evidently active, with the average trading volume rising by JD8–9 million compared to last year. Additionally, it is evident that this rise and improvement, be it in trading volume or market share prices, can be attributed to local investors, according to the statistics of the Securities Depository Center.

According to the results, 162 out of 174 listed companies have provided the ASE with their financial data for the first quarter of 2021. After tax, profits increased to reach JD293.8 million for shareholders in public shareholding companies listed in ASE that have submitted their financial data, compared to JD106.2 million in the first quarter of 2020, marking a 176.6-percent increase.

These companies’ revenue before tax increased to reach JD401.3 million in the first quarter, compared to JD175.2 million in the first quarter of last year; a rise of 129 percent.

On the sector level, the industrial index increased the most, with its after-tax profits rising by 668.8 percent, followed by the services index, which increased 302.2 percent, and then the financial index, which increased by 70.7 percent.

Investors’ optimism is driving them to build financial centers in select shares. Their optimism was renewed by the second wave of the coronavirus being brought under control, in addition to an increase in customers at restaurants. An additional factor is the number of those who have recovered from the virus, which raises the population’s immunity and reduces the uncertainty that overtook security investors, compared to last year’s constant fear of closures.

The return for security investment, compared to that of deposit investment, is doing better, particularly since the Central Bank of Jordan’s reduction of interest rates since the beginning of the pandemic. The central bank’s interest reductions were aimed at energizing the economy and reducing the impact of the pandemic on citizens and business, along with other programs that were implemented to protect the national economy.

During Tuesday’s session, the shares of 96 companies were traded, with the shares prices of 29 companies rising, and the shares prices of 33 declining.

At the sector level, the industrial index increased by 1.06 percent, the financial index decreased by 0.34 percent, and the services index decreased by 0.07 percent.

Read more Analysis.