Jordan Times
Sunday, April 29, 2007
weekly analysis: Amman
Stock Exchange
AMMAN — Trading activity at the Amman bourse thinned last week as investors
awaited the release of companies’ first quarter results, which according to
regulations, should be out by the end of this month.
The Amman Stock Exchange (ASE) index closed at 5969.7 points, down by 0.41 per
cent. Market capitalisation stood at JD22.92 billion.
The International Monetary Fund (IMF) predicted that the gross domestic product
growth rate will reach 6 per cent in 2007 and in 2008. Another report issued by
the IMF expected the inflation rate to be 5.7 per cent this year and 3.5 per
cent in 2008.
On the trading floor, the average daily trading volume declined by 27 per cent
to JD21.240 million. Overall, decliners outnumbered advancers as 87 companies
out of 169 declined, while 67 companies advanced.
Jordan Kuwait Bank achieved a 5 per cent increase in net income during the first
quarter of 2007 to JD11.1 million. The bank’s share price closed at 6.69, as it
rose by 1.36 per cent, to trade at a forward P/E multiple of 11.2x based on
CapitalInvest estimates for 2007 earnings.
The general assembly of Cairo Amman Bank approved an increase in paid-up capital
to JD75 million through an 11.1 per cent stock dividend distribution, in
addition to distributing cash dividends at a rate of 10 per cent. The bank’s
share price closed at 3.68, down by 4.17 per cent, with a dividend yield of 2.72
per cent.
The extraordinary general assembly of Union Bank for Saving and Investment
approved the increase in capital from JD55 million to JD66 million through a 20
per cent stock dividend distribution.
The general assembly of Arab Assurers approved an increase in capital from JD5.9
million to JD8 million through a 14 per cent stock dividend, in addition to a
public offering of 19 per cent of the post-dividend paid-up capital.
Union Land Development Corp. announced that net income for the first quarter of
2007 reached JD2.05 million. The chairman of the firm expects net income to
reach JD7-JD 8 million for the year.
The net income of Jordan Press Foundation (Al Rai) exceeded JD2.47 million
during the first three months of the year, registering the highest percentage
increase in the first quarter compared to previous years.
The general assembly of Jordan Cement Factories agreed to the 65 per cent cash
dividend distribution, whereas the company had achieved a net income of JD55.16
million for 2006. The company’s share price dropped by 0.37 per cent closing at
JD13.30 to trade at a trailing P/E multiple of 14.6x, with a dividend yield of
4.89 per cent.
Jordan Phosphate Mines Company received the general assembly’s approval to
distribute cash dividends at a rate of 10 per cent of its JD75 million paid-up
capital.
Sales of Jordan New Cable Company surged by 110 per cent to JD22.3 million
during the first quarter of the year. The company achieved profits of just over
JD3 million in the first quarter 2007, a year-on-year increase of 150 per cent.
The share price of Jordan New cable increased by 2.55 per cent, closing at
JD7.25.