Dividends Surprise

Investors continued to trade with zeal at the Amman Stock Exchange (ASE) as 24.3 million shares, worth approximately JD50.7 million, changed hands. The bulk of trading was concentrated on selective stocks that have recently been under the public eye. Consequently, the AMI rose to 219.76, while the ASMI advanced by more than 0.50% to 323.23.

Jordan Cement Factories (JOCM)'s general manager announced that the company raised its production by 30% for the first five months of the year vis-à-vis last year's level in order to meet an equivalent increase in local consumption. Consequently, JOCM had 0.366 million of its shares exchanged as it hiked 18% to close at JD8.75. On the other hand, the 1.87 million Resources for Qualified Industrial Zone (JOMA) shares that traded managed to push the stock's price up 16% to JD0.58, while parent company, Jordan Industrial Resources (JOIR), climbed 9% to JD1.06.

Meanwhile, during its annual general assembly yesterday, Arab Potash (APOT)'s shareholders approved a 12% cash dividend. Thin trading caused the stock to remain unchanged at its JD4.14 level, while APOT's subsidiary, Jordan Magnesia (JMAG), saw 1.784 million of its shares exchanged in a block deal that was executed at JD1.00.

National Portfolio Securities (NSPC) and United Arab Investors (UAIC) experienced heightened activity. NSPC advanced 16% and closed at JD3.02, while UAIC remained unchanged at JD3.54 with more than 1.3 million shares traded.

Tranquility prevailed on the banking front this week, as the Arab Bank (ARBK) retracted 0.01% to JD154.75 with Bank of Jordan (BOJX) following suite as it closed at JD4.30. BOJX's capital will be raised by 13% and the new shares will be listed at the ASE starting Sunday. Similarly, Middle East Complex (MECE), which has finalized its capital raising procedures, will see the new 3.2 million shares listed at the ASE on the same day. MECE advanced by 1% to JD1.72.