By : Nedal Zubeidi
Jordan Daily – Mohammad Qaryouti, financial and investment advisor provided an in-depth take on the current state of the Amman Stock Exchange (ASE), focusing on key statistics, market values, and strategic recommendations for growth, urging significant reforms to address ongoing undervaluation and stimulate investment.
Qaryouti revealed in a recent interview with the Jordan Daily that the book value of the companies listed on ASE today stands at approximately JD17.261 billion, equating to their market value. He highlighted a troubling disparity: the market value of these companies reaches around JD16.551 billion. This discrepancy suggests that the market is substantially undervalued, a situation he attributes to a range of factors including the stagnation of new company registrations.
According to Qaryouti, no new companies have joined the financial market in the past 15 years, indicating a period of prolonged stability for existing companies. He noted that banks and mining industries are the predominant players in this market, with banks contributing close to JD 6 billion and mining about JD 5 billion, together representing two-thirds of the market’s value.
Qaryouti expressed concern over the current market activity, which has seen daily transactions shrink to between JD 2 million and 3 million. This downturn, he argues, is largely driven by margin trading rather than genuine capital investment, reflecting a shift from robust market engagement to speculative trading.
To revitalize the financial market, Qaryouti proposed two key solutions. First, he called for the injection of fresh cash to enhance market liquidity and align share prices with their fair values, stressing that increased trading activity is essential for restoring market vitality and attracting both local and foreign investors.
Second, Qaryouti advocated for enhanced investment incentives for banks and investment funds. He suggested that legislative and regulatory reforms could play a critical role in rejuvenating these sectors, promoting more active participation in the financial market.
Qaryouti’s recommendations highlight the pressing need for strategic reforms to tackle market undervaluation and encourage investment. By addressing these issues, he believes the financial market can achieve greater stability and growth, benefiting investors and bolstering the broader economy
