Jordan Times
Sunday, June 24, 2007
Amman Stock Exchange
AMMAN — Driven by higher prices of leading stocks in the services and banking
sectors, the Amman Stock Exchange (ASE) index rose slightly by 0.37 per cent and
ended last week’s trading session at 5,825.18 points. Market capitalisation grew
steadily to reach JD22.6 billion, up by 0.34 per cent for the week.
The indices of the services and banking sectors were the only ones to record
gains increasing by 2.46 per cent and 0.87 per cent respectively. The real
estate sector was the biggest loser as the sector index dropped by 0.74 per cent
by the end of the week.
As for trading activity, 129.5 million shares exchanged hands while average
daily trading value dropped by 11.7 per cent to JD50.61 million. Overall,
advancers outnumbered decliners as 98 companies out of 178 advanced, while 64
declined.
In terms of value traded by sector, the services sector came in first place
accounting for 26.8 per cent of the total value traded followed by the real
estate sector at 25.7 per cent and then the banking sector which accounted for
15.7 per cent of the value traded.
The most actively traded shares last week were Ittihad Schools, International
Arabian Development and Investment, and First Finance, with a combined value
traded of JD50.38 million, accounting for 19.9 per cent of the week’s total
value traded.
Additionally, several block deals were executed; the most significant were deals
on shares of the Bank of Jordan, Real Estate and Investment Portfolio Co. and
Arab German Insurance with transaction values of JD2.83 million, JD1.21 million
and JD0.695 million respectively.
According to the preliminary statistics published by the Department of
Statistics, the gross domestic product measured at constant prices increased by
5.9 per cent in the first quarter of 2007 compared to the same period of 2006
while the inflation rate, as measured by the price consumer index, reached 8.2
per cent up from 4.4 per cent during the first quarter of last year.
Additionally, the unemployment rate rose from 13.4 per cent in the first quarter
of 2006 to 14.3 per cent in the same period this year. The trade deficit dropped
by 8.4 per cent to 43.2 per cent of the gross domestic product down from 53.3
per cent in quarter one of 2006.
The Central Bank of Jordan revealed that the Kingdom’s foreign reserves amounted
to $6.29 billion at the end of May compared to $6.31 billion at the end of April
this year.
The ASE management decided to suspend the trading of Real Estate Development
Company’s shares as of June 17, 2007 following the Jordan Securities
Commission’s approval to register the 39 million additional shares in the
company’s capital through the subscription of 37 million shares by the Arab East
Investment Company, and two million shares by Global Jordan Fund at a price of
JD2.35 per share.
Euromoney magazine named the Housing Bank for Trade and Finance as the “Best
Bank in Jordan”. This award was a part of the annual “Euromoney Awards for
Excellence”, which are regarded as the benchmark for high-quality products and
services across all areas of commercial and investment banking worldwide. The
bank’s share price increased by 2.31% per cent to end last week’s trading
session at JD6.2.
According to preliminary statistics published by the Insurance Commission, gross
insurance premiums reached JD96.9 million at the end of April this year compared
to JD84.8 million during the same period of 2006, an increase of 14 per cent.
The ASE approved the listing of additional shares in the paid-up capitals of
Cairo Amman Bank, Union Bank for Saving and Investment, Jordan Electric Power,
and Arab East Investment Company which amounted to JD7.5 million, JD11 million,
JD6 million, and JD11.9 million respectively.
The ASE’s decision came after the above motioned companies finalised all
requirements for listing new shares.