Jordan Times
Sunday, July 30, 2006
weekly analysis: Amman Stock Exchange
AMMAN — The Amman Stock Exchange (ASE) last week recouped part of the losses it incurred as a result of the regional instability. The index of the bourse finished the week at 5854.9 points, up by 1.14 per cent. The market capitalisation stood at JD21.9 billion.
Government tax revenues reached JD315 million during the first half of this year while a report issued by the International Monetary Fund (IMF) predicted an economic growth of five per cent for the country
At the ASE trading floor, the average daily volume increased by 55.7 per cent to JD49.892 million. Overall advancers outnumbered decliners as 94 companies out of 161 advanced, while 54 companies declined.
Two block deals worth JD1.7 million were executed last week. The first covered 250,000 shares of Real Estate Development and the second 450,000 shares of Al Ammal Financial Investment Company.
The trading volume in Arab Bank shares increased by 148.5 per cent last week, reaching around JD67.8 million, compared to JD27.3 million in the previous week. Net profit of Union Bank for Saving and Investment amounted to JD8.3 million during the first half of 2006, a 54.1 per cent drop from the JD18.1 million recorded during the first half of last year. The share price closed at JD3.54, up by 1.72 per cent.
In the insurance sector, the semiannual results of Oasis Insurance showed a loss of around JD1 million, compared to JD908,900 profit in the same period of last year. The amount was in the red mostly as a result of a JD718,600 loss in investment income during the first six months of this year. Investment income was JD926,800 in the black during the first half last year. The company’s share price finished the week at JD3.07, up by 3.02 per cent.
In the services sector, the net profit of Jordan Telecom declined by 11.7 per cent to JD42.1 million during the first half of 2006 compared to JD47.7 million for the same period last year.
Nevertheless, based on the first quarter results, the 2006 net income of Jordan Telecom is expected to reach JD78.3 million, up by 8.3 per cent from a previous forecast of JD72.3 million.
The Executive Privatisation Commission put on sale 2.5 per cent of the government’s shares in Jordan Telecom through a secondary public offering at JD4.66 per share.
Emmar Investments and Real Estate Dev. posted JD788,600 net profit before tax and provisions for the first half of this year compared to JD26,200 in losses for the period starting January 25 and ending June 30, 2005.
Bindar for Trade & Investment increased its semiannual net profit by 774.2 per cent to JD423,000 compared to JD48,500 for the same period last year.
In the industrial sector, Jordan Diary Company announced semiannual profit of around JD100,000 in 2006, down by 315.8 per cent from the JD476,000 recorded in the corresponding period last year, raising the forecasted net income for the year by 0.5 per cent to JD252,900. At the company’s extraordinary general assembly meeting, shareholders approved an increase in the capital by 52.4 per cent to four million shares.