Whiff of Profits

Volumes continued to rise at the Amman Stock Exchange (ASE) as investors decided to take advantage of the capital gains they achieved, which were due to escalating prices. As a result, 49 million shares, worth approximately JD114.5 million, changed hands as the AMI retracted by 0.75% to 215.83 while the ASMI advanced by half a percentage point.

The Arab Bank (ARBK) and the Jordan Kuwait Bank (JOKB) both steadied on this week after experiencing relatively significant hikes the past fortnight. ARBK reached all the way up to JD340 before settling at JD315.5 while JOKB fell 3% to JD10.50.

Investment companies were the first to begin disclosing their profits for 2003. United Financial Investments (UCFI) announced to a local daily that its preliminary results show a net profit of JD0.885 million which translates into an increase of 216% from last year's level. The stock climbed 13% to JD3.00. United Arab Investors (UAIC), on the other hand, expects to post JD5.663 million in pre-tax income, which it plans to use in order to distribute a 10% cash dividend in addition to a 21.2% stock dividend. UAIC rose 7% to JD3.76 with more than 1 million shares traded.

International Tobacco and Cigarette (ITCC)'s general manager denied reports published in a newspaper last week that the company plans to merge with Al Ekbal Printing and Packaging (EKPC). ITCC shed 1% as it closed at JD3.79 while EKPC fell 8% to JD1.42.

Meanwhile, more Jordanian companies are being awarded tenders to supply Iraq with much needed goods. National Cable and Wire Manufacturing (WIRE) got hold of a EURO 2.4 million contract to export electrical cables through the United Nations (UN) program. Alternatively, Middle East Complex for Engineering and Heavy Industries (MECE) intends to distribute US$35 million's worth of products in the Iraqi market through its various distributors there. Both stocks enjoyed very healthy trading, with WIRE advancing 15% to JD1.48 while MECE rose 12% to JD1.69.