Dow Jones Indexes, Amman Stock Exchange create Dow Jones ASE 100 index

By Devika Patel

Knoxville, Tenn., Feb. 14 - Dow Jones Indexes and Amman Stock Exchange have formed a new index that tracks the performance of the 100 largest stocks listed at the Amman Stock Exchange based on free-float market capitalization, according to a Dow Jones press release.

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 Amman Stock Exchange general price index.

The index universe is defined as all companies domiciled in Jordan with their primary listing at the Amman Stock Exchange.

Eliminated from the index universe are companies that belong to the bottom 1% by full market capitalization and companies that 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 are Arab Bank, Housing Bank for Trading & Finance, Jordan Electric Power, Taameer Jordan Holdings and United Arab Investors.

The index, which is calculated in U.S. dollars and Jordanian dinar, is reviewed quarterly in March, June, September and December. Companies deleted in between quarterly reviews will be replaced at the next review date.

"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," Dow Jones Indexes president Michael A. Petronella said in the release. "We are optimistic that this index will help to raise the profile of this ambitious and upcoming financial market."

New York-based Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products.

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