Jordan Times
Sunday, March 26, 2006
weekly analysis: Amman Stock Exchange
AMMAN — The Amman Stock Exchange (ASE) index
fluctuated within tight ranges last week amid mixed sentiments regarding the
market's future trend.
The index closed down by three per cent to finish the week at 7106.6 points. The
market capitalisation stood at JD24.9 billion.
ASE is currently testing the implementation of a new e-trading platform aimed at
enhancing fair-trading activities and transparency of the market.
On the trading floor, the average daily trading volume decreased by 18.4 per
cent reaching JD45.7 million. Overall, decliners outnumbered advancers as 93
companies out of 157 declined, while 51 companies advanced.
In the banking sector, the index declined by 3.94 per cent reaching 14404.0
points. The heavyweight Arab Bank's share price decreased by 4.35 per cent to
close at JD29.65.
In the insurance sector, Gerasa Insurance will hold an extraordinary assembly
meeting on April 6 to discuss an increase in paid up capital to JD2.8 million
through the distribution of a 40 per cent stock dividend.
National Ahlia Insurance's (NAI) board of directors proposed raising the paid up
capital to JD5 million through the capitalisation of JD1.5 million from retained
earnings, in addition to the issuance of 1.5 million shares for private
subscription at JD1 per share. NAI's share price closed at JD3.41 down by 4.48
per cent.
In the services sector, Al Sanabel International for Islamic Financial
Investments announced intentions to offer 25 per cent of its JD20 million
authorised capital for public subscription at JD1 per share. The initial five
million-share issue is scheduled to take place early in May, while the company
plans to increase its paid up capital in two stages reaching JD100 million by
the end of 2006.
Similarly, Al Mythaq for Real Estate Investment will soon offer 1.525 million
shares for public subscription, which is equivalent to 30.5 per cent of its JD5
million paid up capital.
Arab East Investment's (AEI) board of directors recommended the distribution of
80 per cent stock dividends and 30 per cent cash dividends, as well as
purchasing five per cent of its outstanding shares as treasury stock. AEI's
share price decreased by 4.48 per cent to JD14.49.
Darweesh Khalili and Sons' board of directors proposed the distribution of stock
dividends equivalent to 25 per cent of its JD6 million paid up capital. The
company's net profit during its first year of operations as a public limited
company reached JD1.56 million, a growth of about 300 per cent from the 2004
level.
Int'l Arabian Development & Investment Trading's year-to-date profits reached
approximately JD300,000, thus exceeding the company's budget for this period.
Arab East for Real Estate Investments was one of the top gainers within its
sector for the second consecutive week, as its share increased by 8.07 per cent
closing at JD14.73.
In the industrial sector, a block deal was executed on 62,900 Union Tobacco &
Cigarettes Industries shares with a total value of JD428,978. The company's
share price finished the week at JD6.45, down by 3.73 per cent.
Middle East Complex recorded an 18.75 per cent increase in its share price amid
active trading volume reaching JD17.89 million for the week.