Amman, March 29 (Petra) -- Amid regional developments, the Amman Stock Exchange has emerged as a notable case, as it has not witnessed sharp declines in its general indices, supported by strong national economic indicators. Still, it has reflected shifts in trading patterns and the distribution of liquidity among sectors, led by the financial sector.

The market rose by 3% during the regional crisis and by 1.5% since the beginning of the year, while the daily trading value stands at around JD9 million.

The average daily trading volume on the Amman Stock Exchange during the period from March 24 to 26 reached about JD20.6 million, compared with JD10.9 million in the previous week, marking an increase of 90.3%.

Total trading volume amounted to approximately JD61.9 million, compared with JD54.3 million in the previous week, while the number of traded shares reached 10.8 million through 9,339 transactions.

By sector, the industrial sector led trading with a value of JD33.36 million, accounting for 53.86%, followed by the services sector with JD15.26 million, or 24.63%, and then the financial sector with JD13.33 million, or 21.51%.

Several internal factors contributed to limiting the full transmission of the shock, including continued inflows of remittances from expatriates, foreign aid, and the nature of some domestic sectors that rely more heavily on local demand, creating a market environment characterized by caution without sliding into sharp turbulence, while at the same time producing clear disparities in performance across sectors and companies.

Financial expert Wajdi Al-Makhamrah said that performance on the Amman Stock Exchange was relatively stable and positive compared with difficult regional conditions, as the general index closed on March 26 at 3,659 points compared with 3,558.5 points on March 1, at the onset of regional developments, marking an increase of 2.8%.

He told Petra that sector performance was generally positive, with advances in the services and industrial sectors, as well as the financial sector in some sessions.

He noted that factors supporting the exchange’s resilience include Jordan not being a direct party to the war in the region, the national economy being supported by expatriate remittances, foreign currency reserves, and a number of positive indicators achieved recently, along with the stability of domestic sectors such as banking, services companies, and industrial firms, in addition to the profits of listed public shareholding companies and increased dividend distributions.

Al-Makhamrah urged investors to focus on companies’ fundamentals and select financially strong firms with stable profits and low debt in sectors such as banking, industry and domestic manufacturing, while avoiding random speculation under current conditions and emphasizing diversification and risk management.

Meanwhile, Professor of Finance at Al al-Bayt University Omar Al-Gharaibeh said that the average return for all listed companies, numbering 156, reached around 0.02% during the period from February 28 to March 28, a level that almost reflects a halt in growth. However, this average conceals underlying disparities, as certain sectors achieved tangible gains while others faced selling pressure.

This interpretation is supported by risk indicators, as the average standard deviation reached about 1.31%, while the average spread between the highest and lowest returns during the month stood at 5.24%, levels that reflect a widening range of volatility and indicate that investors were dealing with the market based on multiple and open-ended scenarios. This volatility was not random but closely linked to the nature of sectors and their sensitivity to geopolitical developments.

Al-Gharaibeh said that despite these disparities, the Amman Stock Exchange managed to maintain the cohesion of its general index without sharp declines due to structural factors related to the nature of the Jordanian market, where the banking sector enjoys strong capitalization and a local focus, making it less exposed to cross-border capital fluctuations. The relatively low level of foreign ownership in the market also contributed to reducing the intensity of reactions associated with global risk-off waves.

//Petra// AF