The ASE's Chief Executive Officer, Mr. Mazen AlWathaifi said that Amman Stock Exchange (ASE) will launch its new index the ASE20 index at the beginning of next month. The ASE20 index is a weighted index based on the market capitalization for the free float shares available for trading. This index is composed of 20 listed companies that are most active and reliable in terms of market capitalization, which are the leading companies in the ASE. The full market capitalization of the index constituents represents 77.6% of the total market capitalization of the companies listed at the ASE, while the free float market capitalization of these companies is 82.2% of the total free float market capitalization of the listed companies at the ASE. A base value of 1000 points at the end of 2014 was stipulated for the ASE20 index.
Mr. AlWathaifi added that the sample of the ASE20 index will be reviewed quarterly at the end of March, June, September and December of each year. This review also includes the calculation of the free float of all listed companies, based on the data received by the Securities Depository Center (SDC). In addition, the factor value is reduced for any company which weighs more than 10% of the market capitalization of index.
Mr. AlWathaifi pointed out that the importance of the diversity of indices in the markets gives more accurate picture of the prices’ movements for different categories of stocks and for the market’s direction. Also, he said that work is currently underway on the preparation of the ASE80 index; it’s composed of 80 listed companies which came after the top 20 companies by market capitalization. It therefore reflects the performance of companies with medium and small market capitalization.
Interested parties can access to the constituents of the ASE20 index through the following link:
https://www.ase.com.jo/en/Constituents-ASE20