Company mid-year results drift in slower than expected in Jordan
One third of the companies have supplied the bourse with their half- year results despite the Amman Stock Exchange's (ASE) strict instructions to its listed firms to submit their results, bourse sources said on Tuesday, August 15.
Out of the 189 listed firms, only 53 have abided by the regulation and submitted their half-year results to the Jordan Securities Commission (JSC).
Brokers said the delay in submitting half-year results was mainly due to the "negative" results some companies have recorded this year.
"Some of them are hiding these results and are declining to make them public because they did not record positive results this year and they cannot show this to their shareholders," one broker said.
"Others have registered humble results, below expectations," the broker, who asked not be named, told the Jordan Times.
An official at the JSC said the firms' response was not great "but we are happy that the responses coming in day after day." "They have been asked to disclose their half-year and annual results and we hope that they will abide by the rules," the official told the Jordan Times.
He indicated that articles 64 and 65 stipulate some "actions" against those who decline to abide by the transparency rules, which include among other things the suspension of the company from trading on the bourse.
"They should know that this matter is to their benefit whether they record profits or incurred losses," the JSC's official said.
The ASE's sources said that, only five have made their half-year results public.
The Housing Bank for Trade out of the 17 listed banks and Finance (HBTF), Jordan's largest bank in terms of capital has not submitted its half-year results.
HBTF sources said the bank's results have been submitted to the Central Bank of Jordan for approval and are expected to be released soon.
In the industrial sector, 15 firms out of 88 have given their results, in the insurance sector only 8 out of 26 have implemented the rule.
The ASE's sources said that among the companies that declined to publish their result was the Jordan Phosphate Mines Company (JPMC) which, according to some sources, has recorded JD53 million in losses in the first half of this year, the worst in its history.
Although the company's Chairman of the Board of Directors Fawzi Gharaybeh denied this information, but he confirmed that his firm has recorded a loss.
Gharaybeh told the Jordan Times that the board of directors met on August 16th to finalize the half-year results before they are made public.
He said the company differed with the auditors who are checking the JPMC's budget.
"They [the auditors] wanted to apply international auditing standards but some believe that domestic standards should be applied, This is the reason behind the delay," Gharaybeh said.
"But the fact, we can confirm at this stage, is that we have incurred losses this year," he added. ― (Jordan Times)
By Tareq Ayyoub
© 2000 Mena Report (www.menareport.com)