Jordan Times
Sunday, February 18, 2007

weekly analysis: Amman Stock Exchange

The index of the Amman Stock Exchange (ASE) advanced last week influenced by an increase in market liquidity levels, along with a rise in the Arab Bank’s heavy weight share price.

The index finished the weekly session at 6334.60 points, an increase of 2.15 per cent. The market capitalisation stood at JD24.11 billion.

The consumer price index has edged up by 0.71 per cent during the first month of 2007 as compared with December 2006 levels, according to the Department of Statistics which also released data showing national exports amounted JD2.9 billion in 2006 compared with JD2.51 billion during 2005, a 12.9 per cent surge.

On the trading floor of the Amman Bourse, average daily trading declined by 16.68 per cent to JD59.4 million. Overall, advancers outnumbered decliners as 89 companies out of 174 advanced, while 71 companies declined.

In the banking sector, the Arab Bank managed a $400 million syndicated loan in favour of the Emirates National Oil Company to be used for purchasing crude oil. The bank’s share price closed at JD26.11, up by 2.80 per cent, while its share trades at a P/E multiple of 21.3x.

Cairo Amman Bank preliminary results showed a sharp drop in net profit from JD31.5 million in 2005 to JD19.2 million in 2006. The bank’s net revenues came in line with forecasts of JD71.1 million. The share price closed at JD4.30, up by 18.46 per cent, while its share trades at a P/E multiple of 15.1x.

The preliminary results of Société Generale Bank showed an increase in net profit from JD2.31 million in 2005 to JD3.28 million in 2006. The bank’s share price, which trades at a P/E multiple of 28.7x, closed at JD3.48 down by 1.97 per cent. Arab Banking Corporation achieved a JD11.0 million net profit last year compared to JD11.9 million in 2005. The bank’s share price closed unchanged for the week at JD2.73, while its share trades at a P/E multiple of 11.1x.

In the insurance sector, the Jordan Insurance Commission announced that three new companies with Gulf and local paid-up capitals will start operating soon in the market, which already has 26 insurance companies.

The preliminary 2006 results of Al Nisr Al Arabi Insurance showed a JD2.0 million in bottom line compared with around JD1.5 million in 2005. The company’s share price finished the week at JD8.55, slightly down by 0.12 per cent.

In the services sector, Jordan Telecom revealed a net profit of JD87.0 million for 2006, slightly up by 0.7 per cent from 2005 figures. The company’s board of directors also proposed the distribution of a cash dividend equivalent to 34 per cent of the paid- up capital. The share price finished the week at JD4.61, up by 1.54 per cent.

Taameer Jordan signed an agreement with Al Arabia for Real Estate — Kuwait, Al Arabia for Real Estate — Jordan, and with Aqarat dot-com, an Emeriti company, to establish a new company with a paid-up capital of $1 million to be contributed equally by the four shareholders. The new company, Real Estate Business House, will transfer Aqarat’s know-how in real estate marketing, selling, buying and client management services into the local market. Taameer’s share price finished the week unchanged at JD2.15.

In the industrial sector, preliminary results of National Steel Industries revealed a negative bottom line of around JD164,000 for 2006 compared to a pretax profit of JD51,000 in 2005. The company’s net sales have, in turn, dropped by 38.8 per cent during the year. The board of directors have set March 3, 2007 as a date for the company’s extraordinary general assembly meeting. The share price of National Steel finished the week at JD1.20, slightly down by 0.83 per cent.