AMMAN — The Amman Stock Exchange (ASE) index edged up slightly by 0.26 per cent last week to 6136.2 points amid uncertainties over corporate third-quarter results that should be submitted to the bourse by the end of the month.

The market capitalisation stood at JD23.3 billion.

In economic news, the Ministry of Finance announced that the 2007 government budget would reach around JD3.6 billion with a deficit ranging between 3.5 per cent and 4.0 per cent of the expected 2006 gross domestic product (GDP) of JD11.3 billion.

The International Monetary Fund (IMF) expects a GDP growth of six per cent for 2006, and five per cent for 2007. The government’s total debt to GDP ratio is anticipated to reach 72.6 per cent this year and 66.2 per cent by next year.

The Department of Statistics also revealed that the inflation during the first nine months of this year reached 6.24 per cent compared to the same period of last year.

On the trading floor of the Amman bourse, two block deals were executed on 1.555 million shares of Investors & Eastern Arab for Industrial & Real Estate Investments and 0.649 million shares of Jordan Real Estate Company for Development amounting to around JD5.1 million and JD1.167 million respectively.

The average daily trading volume fell by 9.40 per cent to JD42.80 million. Overall, decliners outnumbered advancers as 110 companies out of 177 declined, while 57 companies advanced.

In the banking sector, banks’ shares accounted for 8.37 per cent of total trading volume for the week, with Arab Banking Corporation’s share price achieving the highest increase and closing at JD3.05, up by 10.91 per cent. The share trades at a P/E multiple of 12.21x based on our earnings forecasts for 2006.

In the insurance sector, the general assembly of Arab German Insurance approved the merger with Al Basma Trading Company. The new combined paid up capital will reach JD10.4 million. The share was last traded at JD1.53, before it was suspended due to the merger.

Arab Orient Insurance received the approval of the Jordan Securities Commission (JSC) to increase its paid up capital by five million shares through a private subscription at JD1 per share. The share price finished the week at JD5.75, down by 0.35 per cent.

In the services sector, Jordan Telecom was returned to trading as of the beginning of the week, after it was suspended due to the privatisation process. The share price finished the week at JD4.39.

Arab Real Estate Develop- ment (ARED) received the JSC’s approval to increase its paid up capital by JD5 million through allocating the increase to two strategic partners at JD2 per share. The company revealed its intentions to acquire the remaining 46.5 per cent share in Osool Investments and Financial Services, in order to resell the company at a later stage to Aman for Securities. ARED’s share price closed at JD2.30, up by 2.68 per cent.

The bourse authorised the listing of 20 million shares of Al Sanabel International Co. for Islamic Financial Investment, a diversified financial services company listed in the second market, as of 10/10/2006. The company’s share price opened at JD2, and finished the week at JD1.75 down by 12.50 per cent.

In the industrial sector, National Cable & Wire Manufacturing received the JSC’s approval to increase its paid up capital by JD2.5 million to JD12.5 million, through a private subscription at JD1 per share. The company’s share price finished the week at JD2.57, down by 2.65 per cent.

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