Abstract

This study aims to examine the effect of macroeconomic factors (interest rate, national product, money supply and industrial product index) on stock prices at Amman Stock Exchange, and to measure the impact of these factors on the general index of prices and the index for each sector (bank, industrial, insurance and services), for the time period from 1992 to 2010.

The results were that the factors mentioned above combined with a significant statistical impact on share prices, but when we examine each factor with the index (general, bank, industrial, insurance and services) we found that the interest rate has a statistically significant impact on the prices of the shares in Amman Financial Market, and the effect was negative on behalf of the index and the sectors index. The other variable, which had a significant impact, was the production index where its impact was negative for general and sectors index except the insurance sector, which had a positive impact.

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