Jordan Times
Sunday, July 1, 2007
weekly analysis: Amman Stock
Exchange
AMMAN — Declining liquidity levels and blue chip stock prices, especially in the
financial sector, brought down the index of the Amman Stock Exchange (ASE) by
1.09 per cent to 5,761.6 points at the end of last week.
Market capitalisation dropped steadily to reach JD22.4 billion, down by 0.8 per
cent for the week.
The banking, insurance and industry sector indices were the only indices to
record gains during the week, increasing by 0.24 per cent, 0.15 per cent and
0.09 per cent respectively. The services sector was the biggest loser as the
sector index dropped by 1.73 per cent by the end of the week.
As for trading activity, 92.3 million shares exchanged hands, while average
daily trading value dropped by 11.7 per cent to JD42.8 million. Overall,
decliners outnumbered advancers as 56 companies out of 179 advanced, while 111
declined.
In terms of value traded by sector, the real estate sector came in first place,
accounting for 28.1 per cent of the total value traded, followed by the banking
sector with 23.8 per cent and then the industry sector which accounted for 14
per cent.
The most actively traded shares last week were Cairo Amman Bank, Amwal Invest
and Resources Company for Development and Investment with a combined value
traded of JD43.50 million accounting for 20.33 per cent of the week’s total
value traded.
Several block deals were executed, the most significant of which were deals on
shares of the Middle East Complex, Real Resources Company for Development and
Investment. and Bank of Jordan with transaction values of JD12.88million, JD9.78
million and JD7.85 million respectively.
According to Central Bank of Jordan (CBJ) Governor Umayya Toukan, Jordan is
recording good economic performance. He expected 6 per cent economic growth this
year.
The CBJ announced a drop in foreign direct investment during the first quarter
of this year by 62 per cent to reach JD342.2 million.
External and domestic debts declined during the first quarter by JD72.9 million
from the end of year balance to JD7.27 billion, constituting 64.1 per cent of
the gross domestic product.
The Ministry of Industry and Trade, in cooperation with the private sector,
intends to ask the World Trade Organisation for a one-year extension before
removing full support of domestic exports.
Issam Salfiti, CEO of Union Bank for Saving and Investment, revealed an
agreement signed by Global Investment House and United Arab Investors to
increase the bank’s capital of from JD66 million to JD95 million. First quarter
profit of Union bank’s reached JD6.5 million compared to JD4.5 million during
the same period last year, recording an increase by 43 per cent. The share price
of Union Bank increased by 0.23 per cent to close at JD3.4.
Jordan Mortgage Refinance singed a JD2 million loan agreement with Société
Générale Bank to support residential financing.
Taameer Jordan finalized major plans of the Jizeh residential project which
comprises more than 15,000 residential units valued at $900 million. The project
targets the limited income sector as prices start from JD21,000. The share price
of Taameer edged down by 0.03 per cent to close at JD2.24.
City Banking Group and Middle East Complex in association with OPEC, signed a
financing agreement of JD20 million. The share price of the company declined by
0.08 per cent to close at JD2.36.
Al Faris National Company for Investment and Export concluded arrangements of
owning AlliedSoft that specialises in improving information technology
programming. The share price of Al Faris decreased by 0.08 per cent to close at
JD1.52.