Amman Stock Exchange

The Amman Stock Exchange (ASE) recorded a 23.5% year-over-year increase in total trading volume during Q1 2024, reaching $1.2 billion, driven by heightened activity in banking and mineral resource sectors. Investors prioritizing regional diversification should allocate 15-20% of their portfolios to ASE-listed industrials and financial services firms, which currently trade at an average P/E ratio of 13.8–28% below emerging market benchmarks.

Banking stocks dominated Q1 transactions, contributing 42% of total trades, with Arab Bank and Jordan Kuwait Bank securing net profit margins of 12.4% and 9.8%, respectively. Mining equities, particularly phosphate and potash producers, outperformed the ASE All-Share Index by 17.3% due to rising global fertilizer demand. The real estate sector remains volatile, with the Property Sector Index declining 6.1% since January 2024, signaling caution for short-term positions.

Foreign institutional ownership on the ASE rose to 38% in 2023, up from 31% in 2020, reflecting growing confidence in Jordan’s regulatory reforms. The Securities Depository Center’s automated settlement system reduced transaction delays by 74% in 2023, addressing a historic liquidity constraint. For tax-efficient exposure, consider Jordan domiciled ETFs such as ASEID, which tracks the top 30 listed firms and offers a 5.3% dividend yield.

Monitor Jordan’s $2.1 billion renewable energy infrastructure plan, set to launch six solar projects in 2025. Companies like Jordan Solar Energy and Philadelphia Solar have already seen 14% earnings growth in anticipation. Balance ASE equity holdings with Central Bank of Jordan dinar-denominated bonds, yielding 4.7% for 5-year maturities, to hedge against sector-specific volatility.