Gradual Descent

The market took a turn this week as investors decided to cash in on their gains, driving prices down as a result. In addition, debates in parliament over possible price hikes also played their part in abating market participant's enthusiasm. Consequently, volumes at the Amman Stock Exchange (ASE) somewhat dwindled as 0.38 million shares changed hands in deals valued at JD79.6 million, with all indices falling by almost a percentage point.

The Jordan Kuwait Bank (JOKB) announced that during 2003 it achieved a 36% rise in net profits, which totalled JD13.7 million. The bank also plans to distribute a 20% cash dividend while giving out another 25% in bonus shares. JOKB's stock, however, remained unchanged at JD10.5 with very thin volumes. The Export and Finance Bank (EXFB), on the other hand, has paid US$8.5 million in order to acquire a 49% stake in the National Bank of Iraq, giving EXFB a direct footing in Jordan's oil rich neighbour. Approximately 0.65 million EXFB shares changed hands as the stock barely budged, ending the week at JD4.29.

Jordan Press and Publishing (JOPP) was able to cover its 0.5 million capital increase by 6.7x, through both private and public placements which ended on January 12th. The company's board of directors has proposed a JD0.75 million cash dividend for 2003.

Resources for Qualified Industrial Zones, a Jordan Industrial Resources (JOIR)'s spin-off, got the Jordan Securities Commission (JSC)'s approval to raise its capital by 9.4 million shares. The company is expected to be listed soon, once all the procedures are complete. JOIR fell 4% to JD1.47 with 0.94 million shares traded.

Meanwhile, several bloc trades took place throughout the week. The two major deals were transacted on Middle East Complex for Engineering and Heavy Industries (MECE) and the Union Investment Corporation (UINV). MECE saw 1.86 million shares change hands in a few large trades as the stock advanced 3% to JD1.74. UINV, on the other hand had 1 million shares exchanged in total as it climbed 18% to JD2.73.