The index is a broad benchmark index that tracks the performance of the 100 largest stocks listed at the ASE based on free-float market capitalization.
The Dow Jones ASE 100 Index was developed to meet the demand for index-based products at the Amman Stock Exchange and eventually to replace the ASE general price index. The Dow Jones ASE 100 is expected to further enhance transparency, visibility and accessibility of the performance of the Amman Stock Exchange for local, regional and international market participants by applying Dow Jones Indexes’ well known and widely used index methodology.
“The cooperation with the Amman Stock Exchange confirms once again our position as the leading index provider in the Middle East and North African regions and as the partner of choice for transparent rules-based indexes,” said Michael A. Petronella, president of Dow Jones Indexes. “We are optimistic that this index will help to raise the profile of this ambitious and upcoming financial market.”
“The Amman Stock Exchange is one of the most efficient exchanges in the region. The ASE contributed in establishing most of the regional exchanges.” said Jalil Tarif, the CEO of Amman Stock Exchange. “The ASE has its own indexes since 1980, and introduced new indexes based on free-float market capitalization. I believe that the launching of the Dow Jones ASE 100 index will enhance the ASE exposure to international investors. Foreign investors own more than 49% of the ASE market capitalization.”
The index universe for the Dow Jones ASE 100 Index is defined as all companies domiciled in Jordan, with their primary listing at the Amman Stock Exchange. Eliminated from the index universe are companies which belong to the bottom 1% by full market capitalization and companies which do not trade more than 33.33% of all trading days per quarter. The largest 100 companies remaining by full market capitalization will be included in the index. The Dow Jones ASE 100 Index is weighted by free-float market capitalization. Weights of individual stocks are capped at 10% in order to prevent the index from being dominated by individual securities.
The top five companies in the index by free float market capitalization are: Arab Bank (Banks), Housing Bank for Trading & Finance (Banks), Jordan Electric Power (Utilities), Taameer Jordan Holdings (Real Estate) and United Arab Investors (Financial Services).
The Dow Jones ASE 100 Index, which is calculated in U.S. dollar (USD) and Jordanian Dinar (JOD), is reviewed quarterly in March, June, September and December. Companies deleted in between quarterly reviews will be replaced at the next review date. As of January 31, 2007, the Dow Jones ASE 100 Index (USD) gained 269.83% back tested from its base date, December 31, 19991. Daily index history is available back to December 31, 1999.
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