The CEO of the Amman Stock Exchange (ASE), Mr. Nader Azar said that the ASE has conducted the periodic quarterly review of the ASE index constituents in purpose of ensuring that the ASE General Price Index reflects the market performance and the trading activity of the listed companies. By this rebalancing, the activity of listed companies in regard to trading during the last quarter has been reviewed. After that, the ASE has conducted its screening process for all listed companies using the full market capitalization of the companies and the number of trading days during last quarter. It is worth mentioning that the criteria adopted by the ASE are similar to the international practices applied in this field. These criteria are applied by many leading international index providers.
Mr. Azar added that as a result of this review, eight companies have been excluded from the index sample and other eight companies have been added. The companies that have been excluded from the index sample were: Al-Ekbal Printing and Packaging, Alia- The Royal Jordanian Airlines, Nutri Dar, The Jordanian Pharmaceutical Manufacturing, Jordan Investment Trust, Amoun International For Investment, Tuhama For Financial Investment, and Comprehensive Multiple Project Company.
The companies that have been added to the index sample were: Jordanian CO. For Developing & Financial Investment, Transport & investment barter company, General investment, Methaq real estate investment, Philadelphia international education investment company, Jordan international investment, Future arab investment company and Societe general de banque - Jordan.
As part of the process, the ASE calculated the free float for all listed companies at the ASE based on the Received data from Securities Depository Center (SDC). This review also includes the reduction of the weights for some companies to maintain the 10% cap that applied to index constitutes.
Mr. Azar clarified that the index sample includes one hundred companies which are the most active in the ASE and the highest in terms of market capitalization. The full market capitalization of the index constituents' represent (91.4%) of the total market capitalization of the companies listed at the ASE. The free float market capitalization of the index constitutes' represents (94.8%) of the total free float market capitalization of the listed companies at the ASE.
In light of the above, the index constituents will be modified as of the 2nd of April 2017. Interested parties can access to the constituents of the index with the new weights through the following link:
http://www.exchange.jo/en/constituents