AMMAN — The Amman Stock Exchange (ASE) index decreased slightly by 0.23 per cent to close at 6084.3 points during the first week of Ramadan, in anticipation of this year’s third-quarter results. The market capitalisation stood at JD23,168,309,678.

According to recent statistics issued by the Jordan Investment Board, new projects benefiting from the investment promotion law during the first seven months of the year reached JD1.634 billion, distributed over 499 companies, compared to JD749.9 million in 2005. Foreign investment showed a remarkable growth of 536 per cent, while local investments grew by 70 per cent. Additionally, according to the department of statistics, the unemployment rate dropped during the first nine months of this year from 15.2 to 14.3 per cent.

On a different note, the electronic website of the JSC revealed that primary issuances, registered for the first time at the JSC, totalled 14 issues with a paid up capital of JD368.5 million for this year. On the trading floor, average daily trading volume decreased by 18.26 per cent reaching JD45.547 million. Overall, advancers outnumbered decliners as 82 companies out of 170 advanced, while 71 companies declined.

In the banking sector, total trading volume for the Arab Bank (ARBK) decreased by 38.2 per cent during the week, reaching around JD6.86 million, compared to JD11.1 million last week. ARBK’s stock price declined by 1.28 per cent to close at JD23.85. Based on our estimates for ARBK’s 2006 net income, the bank’s shares are trading at a forward P/E multiple of 18.01x. In the insurance sector, trading volume on Arab American Takaful Insurance (ARAI) share reached JD2.06 million, accounting for 73.90 per cent of total trading volume within the sector. ARAI’s share price closed at JD2.30, up by 1.32 per cent.

In the services sector, informed sources revealed that Jordan’s Executive Privatisation Commission is still in the negotiation process with Al Nour for Communications to sell the government’s remaining shares in Jordan Telecom (JTEL). Whereby, according to the agreement, Al Nour ought to either buy the remaining shares or help find another investor.

On a different subject, investors in the region are focusing their investments in the real estate sector due to the sector’s high returns and liquidity. A report issued by the Department of Lands and Survey revealed that the real estate sector witnessed a growth of around 40 per cent in 2005, as 17.8 thousand apartments, and 116 thousand houses and lands were sold. Foreigners’ share from sales transactions reached around $212 million, hence Iraqis continued to top the non-Jordanians sales list with a total share of 67 per cent. Moreover, Jordanian real estate development projects that are currently underway are estimated at a total value of $8.5 billion. On the same note, Tameer - Jordan (TAMR) presented the master plan for the housing units. TAMR is intending to build in Al-Jeza. TAMR’s share price closed at JD2.35, up by 2.62 per cent. Likewise, Investors & Eastern Arab for Industrial & Real Estate Investments (IEAI), owner of Al-Mushata Industrial Park, signed an agreement with JOFFCO, whereby the latter will build a 3,000-square metre factory. The aim of the factory is to assemble and produce high-pressure fire extinguishers, water hoses, alarms and security systems. Furthermore, Int’l Arabian development & Investment Trading’s (INMA) board of directors decided to increase the company’s capital through the allocation of 2.1 million shares for private subscription, and allocating 900 thousand shares to Arab American Takaful Insurance (ARAI).

In the industrial sector, the sector’s index closed at 2564.75 points, up by 1.73 per cent. Ad-Dulayl Industrial Park’s (IDMC) share price closed at JD1.77, down by 1.67 per cent, amid active trading that captured 20.81 per cent of the sector’s total trading volume.

Back to October 1, 2006