AMMAN -- The Amman Stock Exchange (ASE) got off to a good start in 2006 amid investors' expectations of record financial results last year for listed companies.
The index rose by 6.81 per cent to finish the weekly session at 8749.4 points, thus compensating for part of the losses it suffered during the final weeks of 2005.
The market capitalisation stood at JD28.5 billion.
The average daily trading volume last week reached JD58.8 million, up by 17.62 per cent from the levels of the previous week. Overall, advancers outnumbered decliners as 116 companies out of 150 advanced, while 25 companies declined.
In the banking sector, Arab Bank/Syria began its operations in Damascus with a total capital of $30 million, 49 per cent of which is owned by Arab Bank while the remaining 51 per cent is owned by Syrian investors. The bank announced its plans to open several branches throughout the year. The share price of Arab Bank rose by 6.86 per cent to close at JD67.64.
In the insurance sector, net income of Arab Orient Insurance (AOI) surpassed JD2 million in 2005, a four per cent increase over the previous year.
AOI board of directors decided to propose to the general assembly increasing the paid-up capital from JD3.75 million to JD5 million by means of distributing one stock dividend for every three existing shares.
In the services sector, 7.5 million shares of Al Ammal Financial Investments Company were listed on the ASE on Wednesday at an opening price of JD4. The share price closed the week at JD4.41. The company's preliminary financial statements showed JD1.75 million in net income before taxes and allocations for 2005.
United Financial Investments (UFI) achieved net income after taxes of JD3.945 million in 2005, an increase of 276 per cent above 2004 levels. UFI intends to increase its paid-up capital from JD2 million to JD5 million through a stock dividend distribution rather than private subscription. UFI's share price rose by 5.47 per cent during the week, closing at JD15.22.
Jordan Trade Facilities (JTF) signed an agreement with Amwal Invest to manage the issue of JTF's additional 7.5 million shares through private subscription at JD1 per share.
Al Tajamouat for Touristic Projects signed a letter of intent with Unicorn Investment Bank of Bahrain regarding the bank's plans to hold a minimum 26 per cent stake in the company's paid-up capital after it is increased during the first six months of 2006.
Al Tajamouat for Catering and Housing announced its strategic partnership agreement to establish a new company in Qatar.
In the industrial sector, six million shares of Arab Pesticides and Veterinary Drugs Manufacturing Company's were listed on the ASE on Monday with an opening price of JD4. The share finished the weekly session at JD3.95.
© Jordan Times 2006
