Amman Stock Exchange [Jordan Times, Amman]

Apr. 4--WEEKLY ANALYSIS

AMMAN -- The Amman Stock Exchange (ASE) general index closed last week at 2531.1 points, 2.6 per cent higher than the closing at the end of the previous week.

The considerable gain was driven by rising share prices of leading companies in the mining and real estate sectors, most significantly were the Jordan Phosphate, Taameer Jordan, and United Arab Investors which rose by 6 per cent, 18 per cent and 18.5 per cent respectively amid notably higher trading volumes.

We expect optimism and improving market sentiment to prevail in the coming few weeks as investors anticipate an improvement in corporate results during 2010.

Only the insurance sector regressed as its index shed 1.8 per cent. The real estate index topped the list with a 9.9 per cent gain followed by the diversified financial services which advanced by 8.2 per cent.

As for trading activity, 231.6 million shares exchanged hands resulting in gains at 127 companies and losses at 56 entities out of 200 traded corporations

In terms of value traded by sector, real estate came in first place accounting for 29.2 per cent of the total followed by the diversified financial services sector at 25.8 per cent and then the industrial which accounted for 19.7 per cent of the total value traded last week

The most actively traded shares were those of Taameer Jordan, United Arab Investors, and Middle East Complex with a combined value traded of JD68.7 million accounting for 41.7 per cent of the total.

Several block deals were executed last week, most importantly on shares of United Arab Investors and Tameer Jordan with transaction values amounting to JD4.4 million and JD2.7 million respectively.

Arab Bank's general assembly approved the board of director's recommendation to distribute a JD0.20 cash dividend to current shareholders.

Jordan Phosphate Mines Company's board of directors recommended to the general assembly the distribution of a JD0.20 cash dividend.

The general assembly of The Housing Bank for Trade and Finance approved the board of director's recommendation to distribute a JD0.20 cash dividend to current shareholders.

Invest Bank's general assembly approved the board of director's recommendation to distribute a 10.7 stock dividend through the capitalisation of JD7.5 million from retained earnings. This will increase the bank's paid-up capital to JD77.5 million.

The general assembly of Arab Orient Insurance Company approved the recommendation of the board of directors to distribute a 16.7 per cent stock dividend through the capitalisation of retained earnings which will increase the company's paid-up capital to JD15 million.

The board of directors of Jordan Insurance Company recommended to the company's general assembly the distribution of a JD0.13 cash dividend.

The general assembly of the First Insurance Company approved the recommendation of the board of directors to distribute a JD0.06 cash dividend to current shareholders.

Jordan's foreign debt rose by 0.2 per cent during January 2010 to JD3.9 billion.

Jordan's public spending fell by JD77.4 million during January 2010 compared to the same month of last year.

Total excess reserves held at the Central Bank of Jordan (CBJ), as of April 1, 2010 amounted JD4.2 billion including overnight window deposits.

Total foreign reserves held at the CBJ increased to JD 7.8 billion in February from JD7.7 billion in January of the current year.

Total credit facilities extended by Jordanian banks to individuals dropped by 2.5 per cent in January 2010 compared to its level at the end of 2009.

Disclaimer: The above information and opinions have been compiled in good faith from sources believed to be reliable, but Capital Investments makes no warranty as to the truth and accuracy of the information contained herein. All opinions expressed are not to be regarded as investment advice, and are only for informative purposes. Therefore, Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any part of this report.

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