Jordan Times
Sunday, June 4, 2006
weekly analysis: Amman Stock Exchange
AMMAN — The Amman Stock Exchange (ASE) index
continued its downward trend for the second week in a row amid mixed sentiments
about the market’s future trend.
The index finished the week at 6777.3 points, down by 2.93 per cent. The market
capitalisation stood at JD24.1 billion.
A circular issued by the Jordan Securities Commission (JSC) this week obligates
brokerage firms to abide by the 1995 law concerning capital adequacy
requirements. According to the circular, all receivables, as of June 4, should
be collected within a period of one week from the date the debt arises.
Firms that fail to abide by this law will be subject to legal charges. However,
brokers were granted a grace period until the beginning of next year to clear
withdrawn accounts before the cash trading regulations is implemented as of Jan.
1/2007.
Activities at the stock exchange last month culminated in a trading volume of
around JD2.06 billion, up by 93.52 per cent compared to the same period last
year.
During May, the ASE index fluctuated between the 6800 and 7400 points, ending
the month at 6918.7 points, down by 1.7 per cent from its level at the end of
April 2006.
As for weekly trading, the average daily volume declined by 23.48 per cent
reaching JD55.3 million. Overall, decliners outnumbered advancers as 108
companies out of 159 companies declined, while 43 companies advanced.
In the banking sector, a block deal was executed on 72,000 shares of the Housing
Bank for Trade and Finance for a total value of JD756,000. The bank’s share
price closed at JD10.0, down by 2.82 per cent.
The JSC approved an increase in Jordan National Bank’s paid-up capital by 17
million shares to 102 million shares, through the distribution of a 20 per cent
stock dividend for shareholders as of June 6, 2006
Jordan Kuwait Bank (JKB) also received a JSC approval to register 15 million new
shares, through a 25 per cent private placement at JD3 per share, to raise the
paid up capital to JD75 million.
JKB’s shareholders as of June 6, 2006 will be eligible to subscribe for the
increase in capital. Investors who do not wish to participate in the rights
offering will be entitled to trade these rights from June 7, 2006 to June 13,
2006.
The index of the insurance sector finished the week at 5603.3 points, down by
3.28 per cent.
In the services sector, the general manager of the United Arab Investors signed
an agreement with Canada Mortgage and Housing Corporation to establish a
Jordanian — Canadian mortgage company in Jordan.
The ASE approved listing 211.9 million shares of Jordan Real Estate Company’s (Taameer)
and 20.9 million shares of Consulting & Investment Co. Group’s in the second
market as of June 5, 2006, at floating prices.
By listing 5.9 million new shares at the ASE on May 3, 2006, the paid-up capital
of Jordan Investment Trust increased to around JD22.8 million.
Jordan Telecom will hold its annual general assembly meeting on June 15, 2006.
The company’s share price finished the week at JD5.15, down by 1.34 per cent.
In the industrial sector, the ASE approved listing two million additional shares
of Jordan Worsted Mills as of Wednesday, May 31, 2006, bringing its capital to
10 million shares.
Furthermore, the JSC approved the registration of Jordan Steel’s 8.075 million
additional shares through a private placement of six million shares to
shareholders as of May 30, 2006 at JD2 per share. Two million shares were
allocated to two strategic investors at JD5 per share, while the remaining
75,000 shares will be allotted to the company’s employees.
Jordan Steel’s adjusted share price was set at JD4.01 on May 31, 2006, but lost
ground to finish the week at JD3.85.