Impact of Global Financial Crisis on Amman Stock Exchange (ASE) Market

Abdel-Aziz Ahmad Sharabati, Dr.; Abdel-Naser Ibrahim Nour, Prof.

	Impact of Global Financial Crisis on Amman Stock Exchange (ASE) Market
Baghdad College of Economic sciences University
Article 1, Volume 20140416, Issue 0, 2014, Pages 540-558
Authors
Dr. Abdel-Aziz Ahmad Sharabati; Prof. Abdel-Naser Ibrahim Nour
Abstract
The purpose of this study is to investigate the effect of global financial crisis 2008 on Jordanian economy by using Amman Stock Exchange (ASE) market as representative of Jordanian economy. The main data were collected from ASE market database and covered the period from 1999 to 2014, other data sources were used to run analysis such as New York Stock Exchange (NYSE) market, Trading Economies Website and OANDA Forex Trading Website. Empirical analysis results showed that there was no significant correlation between ASE general index and its sectors with NYSE. Also, results indicated that there is a week and not significant relationship between ASE general index and NYSE, and there is no significant effect of NYSE on ASE or any of the three ASE sectors (financial, services and industrial). But the curves showed that the global financial crisis had delay effect on Jordanian market, while the global crisis started and spread in 2008, ASE market dropped down in 2009. Curves also showed that almost all markets started their recovery within one or two years, while ASE market is still suffering until now i.e. delay effect and delay recovery. The curves also pointed out that the behavior of ASE was similar to other Arab countries (gulf countries) stock exchange markets and dissimilar to U.S. and U.K stock exchange markets. Also, results showed that ASE market did not match with European and Chinese stock exchange markets.

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