AMMAN — Stock prices continued their downward spiral for the fourth week in a row, as the index fell to the lowest level in over a year finishing the week at 6366.3 points, down by 4.43 per cent.

Investors argued that the newly implemented guidelines regarding cash trading came at an inappropriate time, leading to further losses in the market whose capitalisation stood at JD23,712,745,172.

Official statistics revealed a JD132.2 million surplus in the government budget for the first four months of this year, against a surplus of JD79.2 million during the same period in 2005.

Net public debt at the end of April fell by JD72.9 million from its 2005 year-end level, reaching JD7.421 billion, an amount that represents 74.6 per cent of estimated gross domestic product (GDP) for 2006, compared to a debt/GDP ratio of 82.2 per cent for 2005.

On the trading floor, the average daily trading volume declined by 9.1 per cent to 46.3 million. Overall, decliners outnumbered advancers as 121 companies out of 158 companies declined, while 28 companies advanced.

In the banking sector, the index dropped by 4.2 per cent to finish the week at 12660.6 points, due the continuing decline in heavyweight Arab Bank’s share price, which closed at JD25.50, down by 2.86 per cent. The bank’s share currently trades at a forward P/E ratio of 21.2 according to forecasts for the bank’s 2006 earnings.

The new 100 million shares of the Housing Bank for Trade and Finance were listed on the Amman Stock Exchange (ASE) as of Wednesday bringing the bank’s paid-up capital to JD250 million. The share price of the Housing Bank closed at JD9.13, down by 8.61 per cent.

With the exception of Societe Generale Bank (MEIB) which recorded a 20 per cent increase in its year-to-date market capitalisation, Jordan Kuwait Bank and the Housing Bank recorded the smallest declines in market capitalisation within the sector this year, reaching three per cent and 4.9 per cent respectively. The remaining banks saw more severe declines ranging between 23 per cent and 43 per cent.

In the insurance sector, the index closed at 5386.3 points, down by 2.04 per cent. Arab American Takaful Insurance captured the largest portion of the sector’s trading volume, accounting for 46.6 per cent, as its share price declined by 3.49 per cent to close at JD2.21.

In the services sector, Taameer Jordan’s (TAMR) share shed most of the gains achieved since its listing last week amid heavy selling pressure, which pushed its price down by 15.5 per cent to end the week at JD2.68.

Emmar Investments and Real Estate Development completed the first phase of its marketing process that involved the sale of 25 per cent of its Emmar Towers project for JD7.5 million. The company’s share price declined by 6.15 per cent, closing at JD3.36.

On Tuesday, four block deals were executed on one million shares of Consulting & Investment Company Group (CICG) shares for a total of JD2.21 million. The CICG share price closed at JD2.00, down 18 per cent.

Aman for Securities, United Arab Investors’ investment arm, and Osool Investments and Financial Services signed an agreement with Al Mal Capital - Dubai to establish the largest Arab brokerage firm with a paid up capital of $85 million, to be based in Amman.

Middle East Complex’s board of directors approved the increase in capital of its subsidiary Amman General Industries and Marketing from JD10 million to JD50 million, bringing the company’s stake in the company to 92 per cent. The board also decided to enter into a 50-50 strategic partnership with Arab American Telecom, doubling its paid up capital to JD4 million. The company’s share price closed at JD2.48, down 10.8 per cent.

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