Jordan Times
Sunday, January 28, 2007
weekly analysis: Amman Stock Exchange
AMMAN — The index of Amman Stock Exchange (ASE)
was able to break the 6000-point barrier last week supported by an increase in
the heavyweight Arab Bank’s share price. The index finished its weekly session
at 6129.50 points, an increase of 5.10 per cent. Market capitalisation stood at
JD23.3 billion.
The ASE conducted its annual review on the general index, raising the number of
companies in the index from 70 to 100 according to a list of criteria. The
reviewed index will give a better representation of price movements of companies
listed in the bourse. The selected companies comprised 90.3 per cent of the ASE
market capitalisation and 80.1 per cent of the number of shares traded in 2006.
On the trading floor, the average daily trading volume increased by 27.58 per
cent to JD47.85 million. Overall, advancers outnumbered decliners as 80
companies out of 170 advanced, while 74 companies declined.
The Housing Bank for Trade and Finance was granted a new rating by Moody’s
Investors Service of “A3” regarding the bank’s local long-term deposits. The
bank was assigned D+ for financial strength back in 2005 and was not upgraded
since then. The share price of the Housing Bank finished last week at JD6.93,
down by 0.86 per cent. The share trades at a P/E multiple of 19.4x based on
Capitalinvestments’ earnings estimates for 2006.
Industrial Development Bank’s chairman revealed that Dubai Islamic Bank is the
second institution that showed interest to establish a partnership with the bank
besides Jordan Dubai Capital. Currently, the bank’s share is suspended from
trading.
The Jordanian Insurance Commission published the corporate governance
regulations to enhance the industry’s laws and policies.
The Jordan Securities Commission (JSC) approved capital increases for
Philadelphia Insurance Company and Holy Land Insurance Company by 250,000 and
425,000 shares, respectively, through a public offering for the companies’
shareholders at JD1 per share for each.
Future Arab Investment Company was listed in the second market as of January 25,
2007 at an opening price of JD1.80. The company finished the week at JD1.71,
down by 5.0 per cent.
The board of directors of Specialised Investments Compounds decided to establish
a 100 million Egyptian pounds company in Egypt to set up an industrial zone.
Specialised Investments stake in the firm will be 51 per cent. The company’s
share price finished the week at JD5.25, down by 13.92 per cent.
Jordan’s Executive Privatisation Commission showed intentions to sell the rest
of the government’s shares in the Jordan Telecom, which exceed 11.6 per cent,
during the second half of the year. The share price of Jordan Telecom closed at
JD4.58, up by 3.62 per cent.
Jordan Steel disclosed preliminary results for 2006 showing a net income before
tax of JD4.4 million compared to JD3.2 million in 2005. The board of directors
will propose the distribution of a cash dividend equivalent to 16 per cent of
the company’s paid-up capital. The company’s share price finished the week at
JD3.22, up by 1.26 per cent.
Jordan Cement Factories announced a 17 per cent drop in net income from 2005
levels, which came down to a disappointing JD4.4 million less than estimates for
2006. The company’s board of directors also proposed the distribution of a cash
dividend equivalent to 65 per cent of the company’s paid up capital. The share
price of Jordan Cement finished the week at JD12.95, slightly up by 0.39 per
cent.
Economic news during last week showed that real estate trading volume in the
country reached JD4.9 billion during 2006, up by 40 per cent from JD3.5 billion
in 2005.