Jordanian stock market
Subtitle: should you invest in it for risk diversification or performance?
By: prepared by Tahsin Saadi-Sedik and Martin Petri.
Contributors: Petri, Martin.; International Monetary Fund. Middle East and Central Asia Dept.
Series: IMF working paper -- WP/06/187
Publisher: International Monetary Fund, Middle East and Central Asia Dept.
Published: 2006
Place of publication: [Washington, D.C.]
Language: eng
Number of pages: 36
Subjects: Būrṣat ʻAmmān.; Stock exchanges -- Jordan.; Cointegration -- Arab countries.
Description: We analyze the performance of the Amman Stock Exchange (ASE) and its integration with other markets. Using cointegration techniques, we find that the ASE and other Arab stock markets are cointegrated, which implies little long-run risk diversification. However, there is no cointegrating relationship between the ASE and other emerging or developed stock markets. Two of the main regional stock markets-Kuwait and Saudi Arabia-Grangercause the Jordanian stock market. The paper finds that there may have been some overvaluation at end-2005, but that the market correction in early 2006 and strong recent earnings growth have reduced overvaluation concerns.
Notes: Caption title.

"August 2006."

Includes bibliographical references (p. 35-36).

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