Difficult week for stocks, Aqaba SEZ launch

Aqaba Launch

Today marks the official inauguration of the Aqaba Special Economic Zone (ASEZ) by HM King Abdullah II. The ASEZ has emerged amidst a number of tools that the government has employed to draw investments to the kingdom. Trade in the ASEZ surpassed US$100 million for the first two months, with prices nearly halving as it came into effect. The transformation of the Red Sea port city into an ASEZ is expected to create around 70,000 jobs and attract direct investments over a course of 20 years.

In other macroeconomic related news, the yearly report published by the Central Bank of Jordan (CBJ) has issued its expectations for growth figures in 2001. According to local papers, the CBJ expects that GDP growth will stand at around 3% driven by economic and monetary policy reforms.

On the local market, the AMI made a smooth climb throughout the week, to close 1.2% higher at 89.69, as the value traded stood at JD6.4 million, with more than 4 million shares changing hands. Advancers outnumbered decliners by a cool three to one.

Jordan Steel (JOST) continued its ascent to close 8% higher, pulling the other listed steel company, National Steel (NAST), into a similar 8% rise. Perennial favorite, Arab Bank (ARBK), made its highest close since March, by 2% at JD161.25. Other stocks which improved on the heals of this week's trading sessions were the Jordan Kuwait Bank (JOKB), Universal Modern Industries (UMIC), and Dar Al-Dawa (DADI), which closed up 11%, 5%, and 5%, respectively. Zara Investments (ZARA) closed unchanged for the week ahead of its Annual General Meeting and its Extraordinary General Meeting this coming Saturday.

Palestine Securities Exchange (PSE)

Weekly Commentary (13-17 May)

Numbers Say It All

The Al Quds index retracted this week by 3.6%, to close at 171.25. Trading volume was relatively heavy, reaching JD 1.02 million, with moderate selling pressure on major stocks. The Palestine Telecommunications Co. (PALTEL) captured 88% of the total trading volume was almost 0.318 million of its shares changed hands. Its price dropped by 3.6% to reach JD2.70 from last week's JD2.80.

The Palestine Development and Investment Co. (PADICO) and Beit El Mal Holdings Co. (BETMAL) also experienced a decline in their value, falling by 5.6% and 4.8%, respectively. PADICO ended the week at US$1.01 with 65,300 shares traded, while BETMAL closed at JD0.59 with 2,100 shares changing hands.

The Arab Co. for Paints Products saw quite a lot of activity this week as 49,500 of its shares traded to capture almost 4% of the total trading volume. The stock's price remained unchanged at JD0.88. The Jerusalem Cigarette Co. (JCC) was the only advancer of the week. With 1,842 shares traded, the stock's price climbed by less than 1% to settle at JD2.75.

In a report published on the company's performance for the last 40 years, the Bank of Palestine Ltd., revealed that its earnings for 2000 had reached US$2.5 million. Total assets stood at US$240 million vis-à-vis customer deposits, which reached US$213 million, while US$94 million were offered in credit facilities.

According to the Palestinian Central Bureau of Statistics (PCBS), the Palestinian consumer price index rose by 0.27% in April 2001 to reach 124.94, in comparison with this March's 124.60. The index also managed to top last April's level by 1.61%, while at the same time rising by 1.72% in comparison with September 2000's figure.

Meanwhile, the Palestinian Ministry of Finance announced in several reports that the Palestinian economy was still tumbling as Israel continues with its incessant bombardment of the West Bank and Gaza Strip. Nearly 76% of Palestinians now live below the poverty line as unemployment levels have reached 58%. Around 135,000 workers were employed inside Israel, generating in total around US$7 million on a daily basis. Needless to say, they have not been permitted to enter since the beginning of the blockades last October.