Jordan Times
Sunday, February 19, 2006
weekly analysis
Amman Stock Exchange
AMMAN — The price index of the Amman Stock Exchange (ASE) reversed its downward trend in the last trading session of the week after the Lower House rejected the proposal to place an additional fee on share trading.
The ASE index closed at 8387.8 points, down by
3.93 per cent. The market capitalisation stood at JD27.9 billion.
Total trading volume reached JD292.2 million, a week-on-week decline of 4.75 per
cent. Overall, the decliners to advancers' ratio reached around 5.1:1.
Most of the companies announced their 2005 preliminary results by the official
deadline of Feb. 15, 2006. The ASE amended its new listing regulations obliging
companies to submit a listing form to the ASE within five working days after
completing registration procedures of the newly-issued shares.
In the banking sector, Union Bank for Saving and Investment (UBSI) achieved net
income of JD24.6 million in 2005, a year-on -year increase of 128.2 per cent.
UBSI's board of directors will propose to the general assembly the distribution
of a 10 per cent cash dividend along with the increase in paid-up capital from
JD40 million to JD60 million through a 25 per cent bonus share in addition to
the issuance of JD10 million shares for private subscription at JD2 per share.
UBSI's share price closed down by 10.98 per cent at JD9.24.
Jordan Islamic Bank's (JIB) net income increased by 297.4 per cent in 2005
reaching JD13.6 million. JIB's board of directors will suggest to the
extraordinary general assembly meeting on April, 2006 the increase in paid-up
capital to JD60 million through a bonus share and a private issue of 25 per cent
each. JIB's share price lost 16.64 per cent finishing the week at JD4.66.
Export and Finance Bank's (EFB) 2005 results revealed a 72 per cent rise in net
income to JD21.2 million. EFB's board of directors will propose a 15.69 per cent
bonus share bringing up capital to JD118 million.
Societe Generale Bank's net income grew by 88 per cent in 2005 reaching JD2.3
million. the bank's share price stabilised at JD2.50 by the end of the week.
In the insurance sector, four companies managed to achieve varying increases in
their share prices, the highest of which was achieved by Arabian Seas Insurance
at 6.27 per cent.
In the services sector, Al Ammal Financial Investment's (AMAL) board of
directors proposed a cash dividend equivalent to 15 per cent of the company's
JD7.5 million paid-up capital, which brings up the dividend yield to 4.4 per
cent at the closing price of JD3.42. AMAL's preliminary results showed net
income of JD1.3 million for 2005.
South Electronics Company (subsidiary of Middle East Complex (MECE) was ASE's
star for the week recording a 27.16 per cent increase in its share price to
close at JD10.16.
As for the industrial sector, Comprehensive Land Dev. & Inv. (ATTA) achieved net
profits of JD2.2 million in 2005, compared to losses of JD318,300 in 2004.
ATTA's share price closed at JD3.21, an increase of 21.13 per cent.