The Chief Executive Officer of the Amman Stock Exchange (ASE), Mr. Mazen Wathaifi said that despite the difficult circumstances that the world financial markets faced, the ASE has recorded positive indicators during 2022. indicating that the ASE was one of the three best major Arab stock exchanges in terms of the performance of the general index during the year 2022, the general index weighted by free float shares ASE100 recorded an increase at the end of 2022 by 18.1%, to close at 2501.6 points, compared with 2118.6 points at the end of 2021, recording its highest level since 2009. Thus, the General Index has achieved the highest annual gains in fifteen years during the years 2022 and 2021. The ASE20 also increased by 25.2% to reach 1345.3 points at the end of 2022, compared with 1074.4 points at the end of 2021, the Total Return index ASETR increased by 33.1%, and the market capitalization for listed companies reached JD18 billion at the end of 2022, an increase of 16.2%, compared with 2021 closing representing 56% of the GDP. Thus, the market capitalization has reached its highest level since 2014.
As for the trading volume of the markets (first and second markets, bonds market, and the OTC market), amounted JD2.01 billion during the year 2022 compared to JD2.03 billion for the year 2021, a decrease of 0.98%. The number of traded shares during the year 2022 reached 1.3 billion shares, traded through 788 thousand transactions, compared with 1.7 billion shares traded through 873 thousand transactions for the year 2021.
Mr. Wathaifi added that the improvement of the ASE’S indicators during the year 2022 was supported by the improvement of the performance of the listed companies' indicators in terms of achieving significant & large unprecedented net profits which reached JD1997 million, for the first three quarters of 2022, an increase of 121.7% compared to the same period of 2021. In addition to the emergence of the national economic recovery signs and the improvement of macro-economic performance indicators, most importantly the increase in exports by 43.4%. And the recording of positive growth rates that reached 2.9% in the second quarter of 2022, and an increase in tourism income by 115% by the end of November 2022, as well as monetary stability and Jordanian economic rating improvement, which was recently announced by the international rating entities.
Mr. Wathaifi added that the ASE has implemented several projects of its strategic plan during the last year with the aim of developing the legislative and technical frameworks and enhancing the digital transformation at the ASE in accordance with the latest international standards and practices, in a way that enhances the investment climate and increases the ASE’s attractiveness to local and foreign investments, thus contributing to the development of the national economy and attracting more investors. Among the most important projects that have been implemented and the importance of the diversity of indices in the market due to the information they provide and a broader and more accurate picture of stock price movements, ASE launched the Total Return Index (ASETR), which is a weighted index based on the market capitalization for the free float shares, that aims to enable the investors to measure the total return achieved on their investments in ASE20 Index companies shares, assuming that the cash dividends generated from these companies have been reinvested in the in addition to the capital gains achieved as a result of a change in the market prices. And as a first step in preparation for the generalization of the rest of the companies, the companies included in the ASE20 Index were required to issue sustainability reports related to its three main aspects, which are corporate governance, social responsibility and environmental responsibility, as of 2022, due to its importance in enhancing the competitiveness of the ASE and the listed companies, as the commitment to sustainability standards has become a necessity that investors and investment fund managers consider when investing in financial markets. Also, in cooperation with the United Nations Development Program (UNDP), the United Nations Global Compact Network in Jordan (UNGC), and Social Value International, ASE held a training course on sustainability for ASE20 Index companies to familiarize them with the importance of issuing sustainability reports and how these reports are prepared. As for enhancing disclosure and transparency in the market and the competitiveness of listed companies, the ASE issued certain rules for managing investor relations in companies, as the ASE20 Index companies were required to establish a special unit for investor relations during the year 2023. The ASE held a training course last year for representatives of the ASE20 Index companies on “Investor Relations” in order to make them aware of the importance and benefits of establishing an investor relations unit within the company.
And as a continuation of the ASE's approach to enhance disclosure and transparency in the national capital market and to apply the best international standards, the ASE launched a corporate climate change disclosure initiative in cooperation with the International Finance Corporation (IFC), where the ASE signed an agreement with the IFC, by which the IFC will provide technical support and training to the employees of the ASE and its listed companies to enhance their knowledge and awareness with regard to issues and subjects related to the disclosure and reporting on actions undertaken by companies to address the challenge of climate change, in addition to supporting the development and launching of a climate disclosure guidance to serve as a manual for implementation by listed companies. The ASE is the first exchange in the Middle East and the fifth in the world to launch such an initiative. The ASE also worked during the last year to enhance the awareness and investment culture in the market through awareness campaigns and procedures, the most important of which is signing memoranda of understanding with a number of universities in order to cooperate and enhance the culture of investment and prepare students for the labor market by training and introducing them to the practical and applied aspect related to the national capital market and its institutions. The ASE has also worked on preparing a number of brochures and educational videos, and published them on its website and other social media websites.
Mr. Wathaifi added that the Economic Modernization Vision formed a road map and a comprehensive and integrated methodology that was accomplished in partnership between the public and private sectors to achieve the visions of His Majesty King Abdullah II and his directives to achieve comprehensive and sustainable growth in a way that enhances job opportunities, raises the living standards for citizens, and enhances the competitiveness of the national economy by unleashing the energies and potentials inherent in all sectors of our national economy. The services and financial markets sector was one of the most important sectors due to its strengths and important competitive advantages. As this sector contributes strongly to the national economy in all of its segments and institutions due to its essential role in terms of providing financing, the comprehensiveness of the services it provides, and the strong financial, technical, and organizational structure and qualified workforce. The Vision included a number of initiatives that will be implemented by the ASE and other market institutions in order to develop this market in accordance with the latest international standards and practices.
Mr. Wathaifi also said that this year will witness, God willing, the implementation of the projects included in the vision for the national capital market, in addition to the projects and programs included in the ASE strategic plan (2021-2023) with the aim of developing legislative and technical frameworks in accordance with the latest international standards and practices, in a way that enhances the investment climate and increases the competitiveness and attractiveness of the ASE for local and foreign investments. In addition to enabling the ASE to provide a better service and enhance the economic benefit provided.