The performance of companies listed on the Amman Stock Exchange (ASE) during the first nine months of 2026 reflects an improvement in market activity, corporate profitability, and market capitalisation. However, a closer economic assessment requires looking beyond the headline figures to examine the sustainability of this growth and its relationship with the underlying performance of companies and the wider economy.

 

After-tax profits attributable to shareholders increased by 4.8 per cent, reaching JD1.776 billion, compared with JD1.695 billion during the same period in 2025. Meanwhile, pre-tax profits rose by 5 per cent to JD2.474 billion. These figures indicate an improvement in corporate profitability, although the growth rate remains relatively moderate and should be assessed against economic growth, inflation, financing costs and developments in domestic demand.

 

One of the most notable findings is the variation in profitability across economic sectors. After-tax profits in the services sector increased by 66 per cent, while the financial sector recorded growth of 4.7 per cent. In contrast, industrial sector profits declined by 9.6 per cent. This divergence deserves particular attention. The industrial sector plays a central role in domestic production, exports, employment and economic competitiveness. Therefore, understanding the reasons behind this decline is important, particularly in relation to production costs, domestic demand, financing conditions and external competition.

 

Market indicators, meanwhile, recorded stronger performance. The ASE General Index increased by 14 per cent since the beginning of the year, reaching 4,117.3 points. The ASE20 Index rose by 12.3 per cent, while the Total Return Index increased by 18.2 per cent. Trading activity also strengthened considerably, with total trading volume increasing by 55.8 per cent. Average daily trading value reached JD13.4 million, compared with JD8.8 million during the corresponding period of 2025. Market capitalisation also increased by 9.1 per cent to JD28.9 billion.

 

These developments point to improving investor interest and greater market activity. Nevertheless, it is important to distinguish between rising share prices and improvements in the underlying financial performance of listed companies. The difference between the growth in corporate profits and the stronger performance of market indices raises questions about market valuations, investor expectations and the sustainability of current price movements.

 

Another positive development is the 99 per cent compliance rate among listed companies in submitting their reviewed interim financial statements through the electronic disclosure system (XBRL). This represents an important institutional achievement in strengthening transparency, corporate governance, and investor confidence. Timely and reliable financial disclosure is essential for improving market efficiency and supporting informed investment decisions.

 

These results are particularly significant in the context of Jordan's ambition to upgrade the Amman Stock Exchange from frontier market status to emerging market status. Achieving this objective, however, requires more than improvements in market indices and corporate profitability. It demands deeper market liquidity, a larger investable market capitalisation, higher free-float ratios, a broader base of listed companies, greater participation by foreign institutional investors, and more efficient trading, clearing, and settlement systems.

 

The improvement in ASE performance provides a positive foundation for further market development. The real challenge is to transform this momentum into sustainable growth and stronger market fundamentals. A well-developed stock market should not merely reflect economic performance; it should also contribute to economic growth by mobilising savings, attracting investment, and directing financial resources towards productive activities.