The index fell by 1.39 per cent to 5,643.26 points and market capitalisation dropped by 1.08 per cent to JD21.93 billion.

Insurance was the only sector whose index recorded gain last week, increasing by 0.2 per cent. Real estate was the biggest loser as the sector’s index recorded a loss of 1.9 per cent by the end of the week amidst low trading volumes.

As for trading activity, 59.683 million shares exchanged hands, while the average daily trading value dropped by 20 per cent to JD25.848 million. Overall, decliners outnumbered advancers as 117 companies out of 190 declined, while 56 advanced.

In terms of value traded by sector, the diversified financial services came in first place accounting for 23.7 per cent of the total value traded followed by the real estate sector with 17.9 per cent and then the industrial sector which accounted for 15.5 per cent.

The most actively traded shares last week were United Arab Investors, Jordan Industrial Resources and Arab American Takaful Insurance with a combined value traded of JD26.14 million accounting for 20.22 per cent of the week’s total value traded.

Several block deals were executed, the most significant of which were deals on shares of Bank of Jordan and Jordan Kuwait Bank with transaction values of JD4.278 million and JD1.410 million respectively.

The government announced that there would be no increase in fuel prices this year despite the rise in international oil prices and the negative effect on the budget deficit, an addition of JD337 million to the current deficit which in turn will increase government expenditure from JD4.33 billion to JD4.67 billion.

As a result, the budget deficit-to-projected gross domestic product (GDP) ratio for 2007, excluding foreign grants, was revised upwards to 11.55 per cent from 8.44 per cent, based on forecasted nominal GDP of JD11.1 billion for the year.

The price of fuel rose in the last two years, with the last rise in April of this year. The rise in prices varied between 12 per cent for petrol and 43 per cent for diesel as a step to eliminate all types of fuel subsidies by February 2008 and fully liberalise the energy sector with the end of Jordan Petroleum Refinery Company’s 50-year monopoly.

The general assembly of Capital Bank approved the International Finance Corporation’s offer to acquire a 7.01 per cent stake in the bank. The bank’s shareholders also approved raising the bank’s capital by JD9.28 million to JD132.28 million to implement the acquisition. The general assembly agreed to obtain a $20 million subordinated convertible loan. The share price closed at JD1.95 up by 1.04 per cent whilst trading at a forward P/E ratio 15.91x.

Jordan Mortgage Refinance Company issued the 61st series of its bonds valued at JD2.2 million. The issue, which will mature December 5th of this year, was approved for subscription by the Jordan Securities Commission. The Central Bank of Jordan will act as the custodian and payment agent for the issue.