Jordan Times
Sunday, May 28, 2006
weekly analysis: Amman Stock Exchange
AMMAN — Trading sessions were shortened to four
days last week as the Kingdom celebrated Independence Day on May 25. The Amman
Stock Exchange (ASE) index fell below the 7000 points barrier to finish the week
at 6981.90 points, down by 1.66 per cent. The market capitalisation stood at
JD24.8 billion.
According to the World Bank’s director for the MENA region, Jordan would likely
acquire the highest share of foreign investments that are flowing into the area
due to the soaring oil prices.
The director expressed confidence that the ASE will recuperate from the low
levels recorded throughout the first quarter of the year.
On the trading floor, three block deals were executed last week on 390,800
shares of the Jordan Islamic Bank, 445,000 shares of Al Amin for Investment and
730,900 shares of the National Cable & Wire Manufacturing for a total value of
around JD4.771 million.
Average daily trading volume [excluding the block deals] dropped by 20.68 per
cent reaching JD72.219 million. Overall, decliners outnumbered advancers as 73
companies out of 156 declined, while 69 companies advanced.
In the banking sector, Britain’s Financial Services Authority approved the
establishment of Europe Arab Bank in London with a paid up capital of 500
million euros.
The new entity, which will be 100 per cent owned by the Arab Bank, will
incorporate the bank’s existing branches in Europe under its umbrella, allowing
Arab Bank to enhance its presence in all European Union countries by providing
trade-related business to Europe, the Middle East and North Africa’s largest
trading partner. It will also focus on private banking services, corporate
finance, and treasury operations.
Arab Bank’s share price closed at JD27.70, down by 2.77 per cent.
In the insurance sector, Jordan Securities Commission (JSC) approved the
increase in Al Nisr Al Arabi Insurance’s paid up capital by 2.5 million shares
through a private placement to Arab Bank at a price of JD4.5 per share. Al
Nisr’s share price closed at JD9, unchanged for the week.
The insurance index finished the week at 5793.5 points, down by 5.35 per cent.
In the services sector, shares of Al Sharq Investment Projects resumed trading
at the ASE after completing merger with Al Sharq for Hotels and Tourism.
The company’s opening share price reached JD2.03 while it ended the weekly
session at JD1.93, down by 4.9 per cent.
The JSC approved the registration of 12 million shares of Masafat for
Specialised Transport. Of the total, nine million shares were covered by the
company’s founders. The remaining three million shares will be issued to the
public in an offering that will take place between May 29 and June 8, 2006 at a
price of JD1 per share.
Jordan Telecom is expected to hold its general assembly meeting next month to
discuss the board of directors’ proposal to distribute a 34 per cent cash
dividend. The share price of Jordan Telecom closed at JD5.22, up by 0.38 per
cent.
In the industrial sector, the chief executive officer of Jordan Petroleum
Refinery announced completion of the feasibility study of its fourth expansion
project. The $750 million project is set to increase the refinery’s production
capacity from its current level of 100,000 to 150,000 barrels per day. The share
price of the refinery closed at JD5.24, down by 2.06 per ecnt.
The industrial index finished the week at 2607.3 points, down by 0.97 per cent.