- Title: JORDAN: Amman stock exchange plummets after Friday clashes
- Date: 29th March 2011
- Summary: AMMAN, JORDAN (MARCH 28, 2011) (REUTERS) ENTRANCE OF AMMAN STOCK EXCHANGE SIGN OF AMMAN STOCK EXCHANGE MAIN HALL OF MARKET TRADERS LOOKING AT SCREEN SCREEN SHOWING PRICE INDEX PRICE INDEX TRADERS LOOKING AT SCREEN SIGN READING INTERNATIONAL FINANCIAL ADVISORS HANI HALAWANEE, EXECUTIVE DIRECTOR OF EVA COMPANY FOR FINANCIAL INVESTMENT IN OFFICE (SOUNDBITE) (Arabic
- Embargoed: 13th April 2011 13:00
- Keywords:
- Location: Jordan
- Country: Jordan
- Topics: Finance
- Reuters ID: LVA4YF0H1D9RWJMT1L1E58T3GP40
- Story Text: The index of Amman's financial market took a nose dive during the first day of trading on Sunday (March 27) and made a slight recovery on Monday (March 28) following deadly clashes between opposition groups with police and loyalists.
The market index dropped a staggering 33 points, or 1.3 percent, the highest drop in seven years, according to investors.
"The market responded negatively to the regrettable, tragic incidents near al Dakhelia square last Friday. The price index of Amman stock exchange lost more than 33 percent and trading dropped to nearly JD 7 million," said Hani Halawani, executive director of Eva financial investment company.
Panic selling among foreign and local investors lead to a drop in stock value of 98 companies out of 140 companies being traded in the volatile market.
Investors hope a government intervention could stop the market from bleeding.
"The crisis has lately arrived here in Jordan and the incidents near al Dakhelia square affected investors in the Amman stock exchange. But we hope that after promised reform the market will recover. We advise small investors to avoid selling under the current difficult conditions," said investor Ehab Mansour.
Riot police officers on Friday (March 25) stormed a makeshift camp near a busy square in the capital Amman after regime loyalists hurled stones at protesters calling for political reform.
The violent end to Friday's protests could have a profound impact on the future of Jordan's bourse, which heavily relies on the kingdom's reputation of stability to attract foreign investors.
Until the global downturn, the bourse had capitalised on Jordan's role as a relatively stable country, in a region rife with political turmoil from Iraq to Lebanon to the Palestinian territories.
The government recently set up a committee to look at how to rejuvenate trading, raising hopes this could expedite a much-delayed mutual funds law, and pave the way to the introduction of new trading instruments such as equity derivatives.
Islamist, leftist, liberal and tribal figures have staged protests and sit-ins over the past few weeks calling for a constitutional monarchy in Jordan.
The demonstrations have been smaller than others across the Arab world, but underlying tensions between Jordanians of Palestinian origin and the country's indigenous "East Bank" population have resurfaced and could also threaten stability. - Copyright Holder: REUTERS
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