Jordan Times
Sunday, April 2, 2006
Weekly Analysis: Amman Stock Exchange
AMMAN — The Amman Stock Exchange (ASE) index lost
some of the gains achieved early last week amid expectations that the Central
Bank of Jordan (CBJ) will raise interest rates again following the Federal
Reserve Bank's recent increase in key dollar interest rates by 0.25 per cent.
The index closed down by 0.52 per cent to finish the week at 7,069.7 points. The
market capitalisation stood at JD24.8 billion.
During a two-day conference, organised by “MEED,” officials and investors
highlighted the investment opportunities in the Kingdom, focusing on the real
estate and tourism sectors which have both witnessed significant growth over the
past few years.
Speakers emphasised the importance of attracting investments to other productive
sectors in order to speed up economic growth in Jordan.
On the trading floor, average daily trading volume increased by 25.6 per cent
reaching JD57.41 million. Overall, advancers outnumbered decliners as 88
companies out of 160 advanced, while 64 companies declined.
In the banking sector, Fitch Ratings upgraded Arab Bank's long-term credit
rating from BBB+ to A- reflecting the expected growth in the bank following the
increase in its paid up capital from JD176 million to JD356 million at the
beginning of this year. Arab Bank share price finished the week at JD29.37 down
by 0.94 per cent.
Cairo Amman Bank's (CAB) board of directors revised its earlier proposal,
recommending an increase in the paid-up capital from JD45 million to JD67.5
million through a 50 per cent bonus share, in addition to the distribution of a
10 per cent cash dividend instead of 15 per cent. CAB's share price closed at
JD9.26 down by 1.49 per cent.
In the insurance sector, Middle East Insurance's (MEI) board of directors
recommended the increase in paid-up capital from JD10 million to JD15 million
through the capitalisation of JD5 million from retained earnings and the
distribution of 50 per cent stock dividend, along with the distribution of a 10
per cent cash dividend.
A block deal was executed on 87,950 MEI shares amounting to around JD599,800.
MEI's share price closed at JD7.25, up by 11.54 per cent.
In the services sector, Jordan Press & Publishing / Ad Dustour's general
assembly approved the increase in paid-up capital from JD3.3 million to JD4
million through the distribution of 350,000 bonus shares along with the private
placement of 350,000 shares at JD1 per share. Ad Dustour's share price closed at
JD4 up by 14.29 per cent.
Union Land Development Corporation's (ULDC) general manager announced that the
company's investments in lands reached JD20 million in 2005 with plans set forth
to further expand its investments in residential and commercial projects during
the year. ULDC's share price closed at JD2,46 up by 5.13 per cent.
In the industrial sector, Jordan Steel signed an agreement with the Saudi Group
for Construction Material Company whereby the Saudi company will have the
exclusivity to distribute 20,000 tonnes of the company's concrete reinforcement
bars in Saudi Arabia this year. Jordan Steel share price closed at JD4,98 down
by 0.20 per cent.
Last Wednesday, the government completed the sale of 27.750 million shares of
its stake in Jordan Phosphate Mines Company (JPMC), representing 37 per cent of
the company's paid-up capital, to the Brunei Investment Agency at a price of
JD2.83 per share, leaving its ownership in the company at 25.6 per cent. Trading
in JPMC's share resumed Thursday, closing at JD4, down by 4.3 per cent.
Another block deal was executed on 800,000 shares of Al Ekbal Printing and
Packaging amounting to JD680,000. The company's share price closed at JD0.81, up
by 9.46 per cent.