Jordan Times
Sunday, March 4, 2007
weekly analysis: Amman Stock Exchange
AMMAN — The Amman Stock Exchange index fluctuated
during the week, recording a gain of 2.45 per cent at the end of Wednesday’s
trading session. However, the index lost part of its gains as it ended the week
at 6439.1 points, up by a slight 0.81 per cent. The market capitalisation stood
at JD24,490,637,046.
According to the international report of Doing Business 2007, Jordan ranked 5th
among countries in the Middle East and North Africa region, thus reflecting
improvements in the country’s business climate due to the various reform
policies adopted by the government.
Meanwhile, according to the Ministry of Tourism and Antiquities’ preliminary
estimates, the Kingdom’s total tourism receipts grew to JD106.1 million during
January of this year, showing a 23 per cent increase compared to the JD86.2
million achieved during the same period of 2006.
On the trading floor, average daily trading volume increased by 27.4 per cent to
reach JD73.392 million. Overall, advancers outnumbered decliners as 107
companies out of 175 advanced, while 58 companies declined.
In the banking sector, non-Jordanian investors executed a JD39.7 million-block
deal on 1.5 million Arab Bank (ARBK) shares at a price of JD26.50. ARBK’s share
price finished the weekly session at JD26.40, down by 1.49 per cent.
On a different note, negotiations regarding National Bank of Kuwait’s (NBK)
entry as a strategic shareholder in Union Bank for Saving and Investment (UBSI)
proved unsuccessful as the two parties failed to reach an agreement as to the
share premium to be paid by NBK. UBSI’s share price closed at JD3.93, up by 0.51
per cent.
In the insurance sector, Al Nisr Al Arabi Insurance Company (AAIN) achieved net
profits of JD1.9 million in 2006, an increase of 39.6 per cent from the previous
year’s profits. AAIN’s board of directors proposed to the general assembly a
JD1.5 million cash dividend distribution representing 30 per cent of the
company’s paid- up capital, in addition to increasing the company’s paid- up
capital from JD5 million to JD10 million through capitalising issuance premium
and distributing 100 per cent bonus shares. AAIN’s share price increased by
11.46 per cent during the week to close at JD9.53.
On a similar note, Middle East Insurance’s (MEIN) net income reached JD4.026
million in 2006, declining by 75.3 per cent compared to 2005 levels. The
company’s board of directors proposed a JD3 million increase in capital to JD18
million through a 20 per cent stock dividend distribution, in addition to a cash
dividend distribution of 10 per cent of the company’s existing paid-up capital.
MEIN’s share price closed at JD3.62, down by 0.82 per cent.
In the services sector, Real Estate Development Company’s (REDV) board of
directors proposed to its general assembly the increase in capital from JD50
million to JD100 million through offering 50 million shares to strategic
partners at a minimum price of JD2.25. REDV’s share price ended the week at
JD2.34, up by 0.86 per cent.
Moreover, Bindar for Trade & Investment (BIND) announced 2006 net income of
JD1.024 million compared to the JD74,900, achieved in 2005. The company’s board
of directors proposed an 11 per cent cash dividend. BIND’s share decreased by
2.06 per cent to close at JD3.80. As of last Sunday, Comprehensive Land
Development & Investment’s (ATTA) 6.049 million additional shares were listed on
the ASE, bringing the company’s listed number of shares to 12 million.
In the industrial sector, Ready Mix Concrete & Construction Supplies’ (RMCC)
board of directors announced its preliminary approval for the entry of an
international company as a strategic partner with a stake of more than 25 per
cent. RMCC’s share price closed at JD4.86, up by 15.71 per cent.
In other news, Union Advanced Industries (UADI) recorded net profits of 1.383
million in 2006, growing by 21.4 per cent compared to 2005 earnings. The
company’s general assembly approved a 20 per cent cash dividend distribution.
UADI’s share decreased by 12.0 per cent to close at JD3.52.