Jordan Times
Sunday, May 20, 2007
weekly analysis: Amman Stock
Exchange
AMMAN — The index of the Amman Stock Exchange (ASE) edged down by 0.77 per cent
last week driven by lower prices of leading stocks in the banking sector. The
index ended last week’s trading session at 5886.92 points. Market capitalisation
declined steadily to reach JD22.7 billion; down by 0.72 per cent for the week.
For the second week in a row, the industrial sector index was the only index to
record gains, increasing by 1.76 per cent.
The banking sector was the biggest loser as the sector’s index recorded a loss
of 3.14 per cent by the end of the week amidst low trading volumes.
As for trading activity, 69.65 million shares exchanged hands, while average
daily trading value increased by 11.8 per cent to JD30.442 million. Overall,
decliners outnumbered advancers as 73 companies out of 176 advanced, while 86
declined.
In terms of value traded by sector, real estate came in first place accounting
for 28 per cent of the total value traded followed by the industrial sector with
25.2 per cent and the banking sector which accounted for only 21.4 per cent of
the value traded for this week.
The top most actively traded shares last week were the Industrial Commercial &
Agricultural Company, Middle East Complex and Ittihad Schools, with a combined
value traded of JD28 million accounting for 18.5 per cent of the week’s total
value traded.
Additionally, several block deals were last week, the most significant of which
were deals on shares of Middle East Complex, Jordan Ahli Bank and Jordan New
Cable Company with transaction values of JD24.9 million, JD21.5 million and
JD5.5 million respectively.
Foreign trade data published by the Department of Statistics revealed that
national exports rose by 15.9 per cent during the first quarter of this year to
JD795 million compared to JD685.7 million during the same period in 2006. The
trade balance deficit narrowed by 8.4 per cent to JD1,085.8 million down from
JD1,185.1 million in the first quarter of 2006.
According to the Central Bank of Jordan, the money supply dropped by 1.2 per
cent during the first quarter of 2007 from the level in December 2006 when it
reach JD14.2 billion compared to a drop of only 0.9 per cent during the first
three months of 2006.
The general assembly of Arab Potash Company agreed to the proposition made by
its board of directors to distribute a 35 per cent cash dividend after the
company achieved a net income of JD39.14 million in 2006.
A significant growth in the company’s bottom line was registered in the first
quarter of 2007 as net income reached JD52 million compared to JD9.5 million in
the same period of last year.
This was mainly due to the 50 per cent increase in sales compared to the first
quarter of 2006 as well as the write-off of the JD22 million provision
previously taken against its guarantees relating to Kemira Arab Potash Company.
Arab Potash also received $40 million in a settlement of its arbitration case
regarding Jordan Magnesia Company.
Middle East Specialised Cables Co. announced its intention to increase its stake
in the Jordan New Cable Company from 39.5 per cent to 45 per cent.
The Jordan Securities Commission agreed to register the additional shares in the
capital of the Arab Banking Corporation, amounting to 11.2 million, through the
capitalisation of JD8.9 million of the bank’s retained earnings and JD2.2
million from voluntary reserves. This will raise the bank’s paid- up capital to
JD56.06 million.
The Arab German Insurance Company has achieved a pretax income of JD145,801 in
the first quarter of this year. The company’s share price declined by 17.65 per
cent to finish the week at JD1.26 down from JD1.53.