Jordan Times
Sunday, June 25, 2006
weekly analysis: Amman Stock Exchange
The Amman Stock Exchange (ASE) recuperated the
losses of the first two trading sessions amid investors’ relief regarding Jordan
Securities Commission’s decision to postpone the implementation of the new cash
trading guidelines till year-end.
The ASE index finished the week at 6435.40 points, up by 1.09 per cent whereas
the market capitalisation stood at JD23.9 billion.
According to official statistics, the gross domestic product grew by 6.7 per
cent at constant prices during the first quarter of 2006, compared to a real
growth rate of 7.7 per cent for the same period of last year.
Workers’ remittances reached JD410 million for the first three months of 2006, a
year-on-year rise of 11 per cent.
The ASE constructed a new index that will be weighted by market cap based on
free-floated shares rather than total listed shares. Based on the new criteria,
the maximum weight of each company in the index sample will not exceed 10 per
cent, limiting the influence of large cap companies on the index.
Moreover, the ASE rearranged sector classification to include three major
sectors and 23 sub sectors, thus facilitating peer group comparisons.
On the trading floor, four block deals were executed on 100,000 shares of
Taameer Jordan, 490,000 shares of Arab East for Real Estate Inv., 48,000 shares
of Housing Bank for Trade & Finance and 2.7 million shares of the Industrial
Commercial & Agricultural for a total value of JD9.9 million.
Total trading volume amounted to JD250 million last week. Overall, decliners
outnumbered advancers as 83 companies out of 165 companies declined, while 72
companies advanced.
In the banking sector, a 4.16 per cent rise in the heavyweight Arab Bank’s share
price to JD26.56 steered the sector index up by 1.94 per cent.
Jordan National Bank announced a strategic partnership with an Emirati
investment group to launch “Invest One”, a AED10 million-brokerage firm that
will conduct brokerage activities in the Dubai and Abu Dhabi stock markets. The
bank’s share price closed at JD3.05, down by 0.33 per cent.
In the insurance sector, Investment House for Financial Services (IHFS) will
manage the JD16 million IPO of First Insurance Company, which will provide
Islamic cooperative insurance services. The IHFS will carry out due diligence in
Jordan as well as the Gulf states.
In the services sector, the general assembly of Jordan Telecom approved the
distribution of JD85 million in cash dividends, equivalent to 34 per cent of the
company’s paid-up capital.
Jordan Telecom will hold an extraordinary general assembly meeting on July 3,
2006 to amend the company’s memorandum of incorporations and articles of
association amid expectations that the government will finalise the sale of its
remaining stake within the coming week. The company’s share price closed at
JD4.61, down by 7.06 per cent.
Bindar for Trade & Investment’s board of directors will propose to its general
assembly a 100 per cent increase in paid-up capital to JD13 million, in order to
enhance the company’s financing capabilities. Bindar’s share price closed at
JD3.06, up by 25.93 per cent.
Emmar Investments and Real Estate Development established “Jordan Mounts for
Real Estate Development”, a 50-50 strategic partnership with Hamad Bin Saedan &
Co. for Real Estate Development, in order to develop a JD25 million residential
area at Al Mushaqar. The company’s share price closed at JD3.57, up by 6.25 per
cent.
In the industrial sector, the first quarter results of Jordan Phosphate Mines
showed JD559,600 in pretax profit compared to around JD388,000 during the same
period of 2005. The company’s share price closed at JD3.13, up by 10.21 per
cent.