actuary.jo
July 22nd, 2009, 02:48 PM
Stockbrokers said Tuesday the Amman Bourse may regress following a decision by the Jordan Securities Commission (JSC) to temporarily ban three "major" investors from trading in shares of banks and companies that have "influential" shares in banks.
"Preventing these heavyweight investors, whose portfolios worth millions, from trading is likely to result in a wide-scale dumping when the ban is over,” a broker, who preferred not to be named, said, noting that the shares of many companies in which they trade have already hit the lowest level in Tuesday's trading as the announcement of the ban came in the mid of the trading session.
JSC spokesperson Walid Kheirallah said the decision was taken following signs of trading practices that are likely to harm investors in the Amman Stock Exchange (ASE) in general.
"The decision is temporary to ensure justice and curb speculations that would harm investors in the ASE,” Kheirallah told The Jordan Times over the phone.
Several brokers said the decision would have "disastrous" impact on the ASE.
"The moment the JSC's decision was announced and the news spread, several investors started dumping shares of many companies and panic spread among them," another broker, who asked not to be identified, said.
A third broker said: "The JSC's decision was hastily taken and it is simply a show of authority as this is not the solution to deal with investors."
Out of 172 companies traded Tuesday, share prices of 112 companies declined.
Asked about the impact of the decision on the ASE, the JSC official said: "When the people are more aware of the decision and why it was taken, there will be no negative impact."
"Preventing these heavyweight investors, whose portfolios worth millions, from trading is likely to result in a wide-scale dumping when the ban is over,” a broker, who preferred not to be named, said, noting that the shares of many companies in which they trade have already hit the lowest level in Tuesday's trading as the announcement of the ban came in the mid of the trading session.
JSC spokesperson Walid Kheirallah said the decision was taken following signs of trading practices that are likely to harm investors in the Amman Stock Exchange (ASE) in general.
"The decision is temporary to ensure justice and curb speculations that would harm investors in the ASE,” Kheirallah told The Jordan Times over the phone.
Several brokers said the decision would have "disastrous" impact on the ASE.
"The moment the JSC's decision was announced and the news spread, several investors started dumping shares of many companies and panic spread among them," another broker, who asked not to be identified, said.
A third broker said: "The JSC's decision was hastily taken and it is simply a show of authority as this is not the solution to deal with investors."
Out of 172 companies traded Tuesday, share prices of 112 companies declined.
Asked about the impact of the decision on the ASE, the JSC official said: "When the people are more aware of the decision and why it was taken, there will be no negative impact."