Capital Markets
From The Report: Jordan 2013
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After the rough and tumble of the last few years, Jordan’s capital markets are now at a potential turning point. Although the Amman Stock Exchange saw four de-listings in 2012, it is still one of the most populous exchanges in the MENA region, with 243 companies listed. The three-tier market structure has been welcomed by investors for providing clarity on the status of companies. New regulations, including daily limits established on stock price volatility and different trading hours for the third tier of the exchange, are designed to increase stability and investor confidence. Further to this, a US offer to back Jordanian bond issues may help lower the kingdom’s borrowing costs, further boosting confidence in the country’s securities and aiding in reducing the budget deficit.
This chapter contains interviews with Adel Kasaji, CEO, AB Invest; and Nader Azar, Acting CEO, Amman Stock Exchange.

Articles from this Chapter

Overview

Bouncing back: After five years of decline, there are signs that the market may be set for an uptick
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After the rough and tumble of the last few years, Jor-dan’s capital markets are now at a potential turning point. There are some significant signs that the mar-ket is returning to more realistic levels. Meanwhile, sector players are pressing for regulators and gov-ernment actors to open the way for a more diverse product range, via a wider bond and Islamic bond (sukuk) market, while encouraging businesses to look to the capital markets for financing. Challenges remain in a region beset by political…

Overview

Retail therapy: Opening the market to a wider range of investors could help to stimulate activity
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With bond issues equivalent to around one-third of the total market capitalisation of the Amman Stock Exchange (ASE), the fixed-income market in Jordan clearly has some weight. Yet with few of these bonds ever traded, many market watchers wonder how this potential could be more fully realised. Opening the mar-ket outwards could be one way, bringing in different types of investors as well as more issues, with positive knock-on effects for the economy as a whole. GOVERNMENT ISSUES: Some JD3.96bn…

Interview

OBG talks to Adel Kasaji, CEO, AB Invest
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Interview:Adel Kasaji What are the key components for developing a more sophisticated debt market in Jordan? ADEL KASAJI: Currently, in the Jordanian debt market, there are 17 T-bills, two corporate bonds, 17 public entity bonds and 139 government bonds listed on the Amman Stock Exchange (ASE). The value of active government bonds alone is nearly JD9bn ($12.7bn); however, the val-ue of bonds traded between 2005 and 2012 inclusive was just JD12.6m ($17.7m). Clearly, much has to be done to…

Interview

OBG talks to Adel Kasaji, CEO, AB Invest
OBG
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Interview:Adel Kasaji What are the key components for developing a more sophisticated debt market in Jordan? ADEL KASAJI: Currently, in the Jordanian debt market, there are 17 T-bills, two corporate bonds, 17 public entity bonds and 139 government bonds listed on the Amman Stock Exchange (ASE). The value of active government bonds alone is nearly JD9bn ($12.7bn); however, the val-ue of bonds traded between 2005 and 2012 inclusive was just JD12.6m ($17.7m). Clearly, much has to be done to…

Interview

OBG talks to Nader Azar, Acting CEO, Amman Stock Exchange (ASE)
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Interview:Nader Azar What levels of activity are expected in the Jordan-ian stock market in 2013? NADER AZAR: This year is expected to be a promising one for the ASE. Since the beginning of 2013 we have seen sub-stantial positive growth in market activity indicators and investor appetite has come on very strong. There was a 41% increase in value traded in the first quarter of 2013, compared to 2012. The number of traded shares went up 29% and the number of executed transactions rose 15% in…

Analysis

Foreign friends: Investment from abroad holds firm
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reverses in 2009 and 2010. These, in turn, had followed major gains in the years leading up to the global down-turn, with the net figure standing at just over JD300m ($422m) in 2008. “As a small market, we really bene-fitted from foreign investment funds targeting phos-phates, potash and others,” said Tarek Yaghmour, the vice-president and head of research at Capital Invest-ments. “These funds benefitted us, first by attracting money into the market due to strong buying, and sec-ond by giving…

Analysis

Easing rates: New avenue of support could increase investor confidence
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A US offer to back Jordanian bond issues may help low-er the kingdom’s borrowing costs as well as boost con-fidence in the country’s securities, which has been dented by regional instability that has slowed econom-ic growth. On March 22, 2013, during a visit to Amman, US President Barack Obama said his administration would work with Congress to obtain approval to issue a guarantee for Jordanian bonds in the international market. While no specific timing has been given, Oba-ma did say they…

Analysis

AOIC: Insurance
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THE COMPANY: Over the past few years, AOIC man-aged to assert itself as a leader in the Jordanian insur-ance sector with a comprehensive product mix, strong connections with leading regional insurers and global re-insurers, and exceptional financial results. The strong performance of AOIC is most evident by the B++ rat-ing it received from A.M. Best, the leading insurance rating authority in the world. AOIC offers a wide range of insurance products that include medical, property, motor, general and travel insurance, among others, but does not offer life insur-ance currently. AOIC distinguishes itself by offering a wider selection of products,…

Analysis

Afaq for Energy (MANE): Oil and gas
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THE COMPANY: Afaq for Energy (MANE) was estab-lished in August 2008 and listed on the Amman Stock Exchange (ASE) in December of the same year. It cur-rently has a paid-up capital of JD110m ($154.7m). The emergence of MANE coincided with a strong pri-vatisation programme and the opening-up of Jordan’s economy, including the previously government-con-trolled energy sector. The government’s push has been, and remains, based on Jordan’s limited local energy sources and, consequently, the need to diver-sify its energy production mix and improve its deliv-ery and marketing systems. MANE was set up to invest in the energy sector in general…