This study aimed to analyze the status of shares related to the
banking sector in Amman Stock Exchange, through the use of time series
analysis, relying on the achievement of the following objectives:
1- Analysis of the status of shares related to
the banking sector in
Amman Stock Exchange, through the use of time series analysis.
2- Access to an efficient market through the application of the
conditions existing in the market.
3- Analysis of the status of the general trend of stock prices in
Amman Stock Exchange, through the turnover rate of shares over
twelve months for eight years starting from 2000-2007 in order to
find the variables affecting performance.
4- Identifying the most important components of the time series
affecting stock prices in Amman Stock Exchange (seasonal,
periodical, and random), in addition to identifying which of these
components are responsible for stock price changes.
5- Trying to determine the general tendency of the time series of
stock prices for the coming period through the use of the model of
basic components.
This study was based on three major hypotheses. The study sample
consisted of the banks listed in Amman Stock Exchange with a total of 17
banks. Furthermore, Microsoft Office Excel had been used to analyze the
data of turnover rate of shares in Amman Stock Exchange to reach
conclusions.
The study came to a number of conclusions such as:
• Results showed that the influence of irregular variables on the
turnover rate of shares related to the banking sector, listed in
Amman Stock Exchange, was clear, in addition to the impact of
changes related to the general trend as well as the seasonal and
periodical changes.
• Results showed that the size of circulation plays a major role in
changing the direction of prices. Thus, in the case of higher prices,
increased circulation is desired, while decreased circulation will be
the case for low prices.
Based on the above conclusions, the researcher presented a series
of suitable recommendations for the use of analysis model of time series
in analyzing the status of shares in Amman Stock Exchange.
