Amman, March 12 (Petra) -- The Amman Stock Exchange (ASE) recorded a notable increase in liquidity this week, with the average daily trading value rising by 10.3 percent to JD9.5 million, indicating a partial return of market activity, while investors remain cautious and selective.

The financial sector benefited the most from the inflow of liquidity, accounting for 39 percent of total trading value. It also posted the highest rise in its price index at 1.31 percent, reflecting investor confidence in leading banking and insurance stocks, particularly amid current conditions that favor relatively safer assets.

In contrast, the industrial sector showed weaker performance. Despite contributing 28.6 percent of total trading value, it was the only sector to close lower, with its price index declining by 0.8 percent, indicating possible selling pressure or a shift by investors toward other sectors.

The ASE general index edged up 0.86 percent to close at 3,629 points. However, the gains were not broad-based, as 52 companies ended the week lower compared with 41 that recorded increases, suggesting that the market’s rise was driven by limited gains in certain stocks rather than a widespread upward trend.

Individual stock performance varied widely. Shares of Jordan Insurance Company jumped 19 percent, while other companies, including Al Amal Holding and National Insurance, declined between 6 and 9 percent which requires investors to carefully select individual stocks rather than relying solely on overall market performance as an indicator.

Financial expert Saher Adous said in remarks to the Jordan News Agency (Petra) that the ASE’s performance this week carries positive signals regarding liquidity, but also reflects a state of anticipation and uncertainty that continues to influence trading decisions.

He noted that the 10.3 percent rise in average daily trading value indicates the presence of liquidity, reaching JD 9.5 million, which seeks investment opportunities. However, the uneven distribution of trading across sectors shows that investors remain highly cautious and are still testing the market before committing to larger positions.

Adous added that the financial sector’s leadership in trading activity, alongside a 1.31 percent increase in its price index, reflects positive expectations for banks and financial companies, especially with the approaching financial disclosure season and dividend distributions, which tend to be more consistent in this sector.

Regarding the industrial sector’s decline despite strong trading activity, he said this may signal portfolio restructuring, as some investors prefer reducing exposure to sectors more affected by global market volatility and rising production costs.

Looking ahead, Adous expects the market to continue moving sideways in the near term, with sector performance likely to remain uneven. He added that stronger positive momentum may emerge with the announcement of first-quarter financial results, which could boost investor confidence and support more sustainable market gains.

//Petra// NQ