Stock market cites 41.8% increase in profits of public shareholding companies

AMMAN — The net profit generated from public shareholding companies listed in the Amman Stock Market (ASM) has increased by 41.8 per cent in 2018, hitting JD1.17 billion, in comparison with JD824.6 million in 2017.

The data is based on the initial results of 193 companies which on Monday submitted their financial data to the ASM, as the audited financial statements are scheduled for the end of March.

The industrial sector’s net profit increased by 198.5 per cent, to JD175.9 million in 2018, compared with JD58.9 million in 2017, the Jordan News Agency, Petra, reported.

The primary data also showed that the financial sector has recorded a 38.45 per cent increase in profits made, totalling at JD851.5 million, in comparison with JD615 million in 2017.

Services sector profits dropped by 5.12 per cent to JD142.9 million from JD150.6 million the year before, Petra added.

Commenting on the results, economist and businessman Khaled Wazani said that the increase in the public shareholding companies’ net profit should reflect on economic growth especially that these companies represent various segments of the national economy.

The companies’ performance in 2018 is better than 2017, but this performance must reflect positively on the growth and stability of the overall national economy and the supply of jobs created, he added.

However, Wazani underlined the decline in the performance of the service sector, which comprises some 70 per cent of the Kingdom’s economy, could have weighed heavily on the country’s growth prospects.

It could be the reason why positive results were not realised on global indices, despite the overall growth in stock exchange profits, he explained.