Jordan Times
Sunday, March 19, 2006
Amman Stock Exchange
AMMAN — The Amman Stock Exchange (ASE) Index took another turn this week as
selling pressure dominated trading sessions amid uncertainties about the
market's future trend. The index closed down by 3.40 per cent to finish the week
at 7326.2 points. The market capitalisation stood at JD25,533,953,804. According
to recent statistics, GDP grew by 6.6 per cent in constant prices during the
fourth quarter of 2005. As a result, real economic growth rate reached 7.2 per
cent for the whole year, translating into a growth rate of 11.7 per cent in
nominal terms. On the trading floor, average daily trading volume increased by
6.15 per cent reaching JD56.05 million for the week. Overall, decliners
outnumbered advancers as 102 companies out of 160 declined, while 55 companies
advanced. In the banking sector, a block deal was executed on 14,500 Arab Bank (ARBK)
shares. ARBK's share price finished the week at JD31, down by 4.17 per cent.
On a different note, Export & Finance Bank (EXFB) will hold ordinary and extraordinary assembly meetings on March 30 to discuss the increase in its paid up capital by JD14 million to reach JD116 million through the capitalisation of the bank's voluntary reserves and retained earnings, in addition to the change in the bank's name to “Capital Bank of Jordan.” EXFB's share price closed at JD2.71, down by 10.56 per cent. Arab Jordan Investment Bank's (AJIB) share price captured the highest gains within its sector as it appreciated by 8.55 per cent to close at JD4.70. AJIB's share is currently trading on a trailing P/E of 15.7x. In the insurance sector, Arab Jordan Group Insurance's (ARGR) board of directors proposed the increase in paid up capital by 35 per cent instead of 40 per cent to reach JD8.775 million through the distribution of stock dividends. ARGR's share price closed at JD2.95, up by 0.34 per cent. In the services sector, Al-Tajamouat for Touristic Projects' (MERM) board of directors proposed the increase in the company's paid up capital from JD14 million to JD40 million through the allocation of 16.8 million shares to a strategic partner, Unicorn Investment Bank of Bahrain, at JD1.25 per share, along with a private placement of 9.2 million shares at par. MERM's share price ended the week at JD2.09, down by 1.88 per cent. Likewise, Real Estate Development's (REDV) extraordinary general assembly approved the capitalisation of JD5 million from retained earnings and their distribution as a 10 per cent stock dividend, bringing up paid up capital to JD55 million. REDV's share price closed at JD2.20, up by 7.32 per cent. Furthermore, Jordan Real Estate Company's (Taameer) public offering of JD53 million/shares was oversubscribed by 14 times as total proceeds exceeded JD700 million at the closing date of the subscription.
As for the industrial sector, Middle East Complex For Eng.& Electronics (MECE) bought 550 thousand shares of Arab American Takaful Insurance (ARAI) bringing up its ownership in the company to 9.12 per cent. Meanwhile, International Tobacco & Cigarettes' (ITCC) general assembly approved the distribution of 25 per cent cash dividends. ITCC will hold an extraordinary meeting at a later date to discuss the increase in paid up capital from JD16.5 million to JD20 million through a 21.2 per cent bonus share.