Jordan Times
Sunday, May 7, 2006
weekly analysis : Amman Stock
Exchange
AMMAN — The index of the Amman Stock Exchange (ASE) fluctuated between 6995.8
and 7101.0 points during last week before closing at 7050.6 points, slightly up
by 0.16 per cent.
While many investors were building up new positions, others were busy
liquidating their positions amid profit-taking activities. The market
capitalisation stood at JD24,856,074,223.
Out of 96 public shareholding companies listed on the first market, 91 announced
first quarter results in compliance with the deadline set by the ASE.
On the trading floor, average daily trading volume increased by 8.4 per cent
reaching JD110.8 million. Overall, advancers outnumbered decliners as 72
companies out of 158 advanced, while 70 companies declined.
In the banking sector, 12 Jordanian banks recorded JD221 million of net profits
for the 1st quarter of 2006. Arab Bank Group accounted for 47.8 per cent of the
total as its net profit reached around $149 million for the period, up by 23.2
per cent year-on-year. The share price of the Arab Bank closed at JD28.0, down
by 0.85 per cent.
The net profit of the Housing Bank For Trade and Finance reached JD20.5 million
for the first three months of this year, compared to JD15 million for the same
period of 2005. The share price of the Housing Bank declined by 0.42 per cent to
the JD9.45 level. During an extraordinary general assembly meeting, shareholders
of the Jordan Islamic Bank approved a JD25 million increase in the paid-up
capital to JD65 million through the distribution of a 25 per cent stock dividend
in addition to a private placement of 15 million shares at JD2 per share. The
pretax profit of the Jordan Islamic Bank rose by 23.2 per cent reaching JD4.9
million during the 1st quarter of this year.
The index of the insurance sector finished the week at 6258.4 points, up by 2.19
per cent buoyed by the 6.64 per cent increase in the heavyweight Jordan
Insurance Company’s (JIC) share price, which finished the week at JD4.98 despite
the 65.1 per cent decline in (JIC’s) net profit. During the first quarter of
this year, the JIC net profit declined to JD888,400 as a result of a significant
85.5 per cent drop in investment income reaching JD288,900.
In the services sector, shareholders of Arab East Investment approved at the
ordinary and extraordinary general assembly meetings the distribution of a 100
per cent stock dividend along with a 30 per cent cash dividend.
The general assembly of Arab East for Real Estate Investments approved the
distribution of JD10 million in cash dividends, equivalent to 100 per cent of
its paid-up capital. The company’s pretax profit declined by 28.4 per cent
reaching approximately JD1.7 million during the 1st quarter of this year as
compared to JD2.4 million for the same period of 2005, mainly as a result of a
133.3 per cent drop in investment income.
In the industrial sector, the employees of Arab Potash Company (APC) resumed
work on Sunday following a four-day strike, as the management was granted a week
to reconsider employees’ demands and requirements. During the strike, APC’s
daily losses were estimated at JD1.2 million. APC’s share price finished the
week at JD11.0, down by 2.57 per cent.
Shareholders of the Middle East Complex (MEC) decided to retain its JD22 million
earnings from last year in order to finance expansion projects. At an
extraordinary session, MEC’s general assembly approved the purchase of 10 per
cent of its outstanding shares as treasury stock.
The general assembly of the Arab Pharmaceutical Manufacturing Company (APMC)
approved the distribution of a 25 per cent cash dividend. APMC’s profit
increased by 17.6 per cent reaching JD2 million for the period ending March 31,
2006.