Amman, Sep. 11 (Petra) – The Amman Stock Exchange (ASE) posted a significant leap on Thursday, restoring momentum to the Kingdom’s financial market. The ASE general index crossed the 3,003-point threshold, marking its highest level since the 2008 global financial crisis. Market capitalization also reached JD23.1 billion, its highest value since December 15, 2009.

This surge reflects the cumulative impact of a package of government incentive measures that have reshaped the investment climate and strengthened confidence among both domestic and international investors.

As part of the Economic Modernization Vision, the government introduced a series of legislative and regulatory reforms designed to enhance market efficiency and attractiveness. The latest measure exempted mutual funds from taxes imposed on dividends and shares distributed by listed companies.

Under current regulations, a fund is not classified as a financial institution within the meaning of the Banking Law. Mutual funds are instead subject to a flat income tax of 0.08 percent (eight per ten thousand) of the sale value of shares by both the seller and the buyer for each transaction. They are also exempt from Article 11/B of the existing Income Tax Law regarding income tax rates levied on legal persons.

Additional measures include extending trading hours to 10:30 a.m.–1:30 p.m. and the Jordan Securities Commission’s decision to cut broker commissions by up to 25 percent. These reforms have deepened market liquidity, mitigated trading risks, and attracted new capital inflows.

The total market capitalization of listed shares jumped to JD221 billion, compared with JD17.65 billion at the end of 2024, while average daily trading volume climbed more than 83 percent to JD11.4 million. This robust performance underscores the transformation underway at the ASE, rooted in rising confidence in the macroeconomic environment and in the financial results of listed companies.

Blue-chip stocks were the primary drivers of the rally, with the Arab Potash Company and the Jordan Phosphate Mining Company leading the trading session on strong earnings and rising global demand.

Arab Potash shares advanced sharply following the announcement of new expansions and partnerships, while Jordan Phosphate Mining Company consolidated its export position through strategic contracts that strengthened its market performance.

The banking sector also played a pivotal role, buoyed by stable monetary policies and an expanding credit base. Leading banks, including Arab Bank, Jordan Islamic Bank, and Ahli Bank, reported higher net profits and expanded investment portfolios, prompting institutional investors to channel more capital into financial sector equities.

Jordan Petroleum Refinery Company’s shares also recorded active trading, supported by improved operational performance and stable energy prices.

This exceptional performance has restored the Amman Stock Exchange to prominence at the regional level and demonstrated the market’s inherent capacity to sustain its attractiveness, contingent upon continued political and legislative support.

Investor enthusiasm toward the government’s recent measures highlights the importance of investing in the regulatory framework of capital markets as much as in physical infrastructure.

Market analysts anticipate that the ASE index will maintain its upward momentum in the short and medium term, especially if the government continues implementing reforms that enhance transparency, stimulate new listings, and attract foreign capital inflows.

If leading companies maintain their current performance trajectory, the ASE could enter a new phase of sustained recovery and growth, transforming from a once-stagnant exchange into a dynamic regional investment hub.

The ASE’s latest surge sends a clear message: financial markets rapidly respond to positive signals when backed by policy action rather than promises. This historic leap would not have been possible without a credible reform environment that is now yielding tangible results. The challenge moving forward is to sustain and broaden these gains across all components of the national economy.

//Petra// AJ

11/09/2025 18:24:01