The Nabataeans –Raef Al-Sheyyab – Financial experts said that the decision to resume trading on the Amman Stock Exchange tomorrow, Sunday, came at the appropriate time after most Arab markets returned to trading.
Financial analyst Nizar Al-Taher told Jordan News Agency (Petra) that the decision to close trading on the Amman Stock Exchange at the beginning of the crisis was a wise decision because the Amman Financial Market could not bear any shocks.
He said that the resumption of trading tomorrow comes at an important time and is expected by the domestic and foreign investment in the stock market and in order to preserve the feature of the international market, expected that tomorrow and next days trading will witness a decrease in the general index of the stock market.
Al-Tahir indicated that adjusting margin maintenance ratios reduces pressure on the market and is not sufficient, but rather the source of liquidity pumping to the market locally and abroad.
The board of directors of the Stock Exchange decided to resume trading from tomorrow, Sunday, as the daily allowable rate of increase and decline for trading and deals was set at 2.5 percent of the reference price of the securities traded on the stock exchange.
In turn, the financial markets expert, Wajdi Al-Makhamra, confirmed to (Petra) that the return of the market to trading is a positive matter according to international standards and the stock market is the mirror of the national economy, praising the reduction of the trading period to an hour, and determining the rates of rise and decline.
He expected that the shares of the pharmaceutical and chemical industry would witness a good boom in light of the demand for their products during the period of the Corona crisis, in addition to the possibility of some companies buying treasury shares, in reference to the positive side of market trading in the coming period.
Al-Makhamara called for the necessity of a “market maker” by issuing a defense order to establish an investment fund for trading shares by banks operating in Jordan and the Social Security Fund in order to invest in the leading shares in his favor, and alleviate any possible decline that might happen in the market, which means pumping more Liquidity to the market.
For his part, the head of the investment department in the First Jordan Investment Company, Hazem Marian, stressed that the return to market circulation in the absence of a clear stimulus policy for the market, first of all, by pumping liquidity, is futile and unattractive to invest in the stock market.
In his speech to (Petra), he pointed out that the incentive measures taken by the Securities Commission come within its authority, which is the most that the authority can go to, but it is not sufficient.
Marian called for the suspension of some articles in the companies law related to the mechanism of buying treasury shares, which require in the current situation the approval of the general assembly of the company on the decision to purchase treasury shares, which is considered a delay in issuing the unjustified decision at the present time, as the market needs liquidity in the fastest At the time, and the delay is not possible, as described, suggesting that the boards of directors of companies give absolute authority in the decision to purchase treasury shares.
Marian explained that this decision would create activity in the market, absorb the expected decrease in the index, and in trading volumes in the coming period and work to pump the liquidity that the domestic and foreign investor is looking for in the market.
He called for the need to address the Securities Commission of the Central Bank to allocate part of its financing programs to support companies for the purpose of supporting financial brokerage firms.