Banks on the Run

With more than 44.7 million shares worth JD167.2 million traded, the ASE stayed close to last week's peak volumes, with most of the attention directed towards the Banking sector.

Arab Bank (ARBK) signed two syndicated loan agreements this week, the first was for Ittihad Itisalat in Saudi Arabia for a second GSM operator license in S. A with total amount of US$2.35 billion in participation with 24 other regional and international banks, while the other loan of US$600 million is for a Kuwaiti petrochemicals company to fund the first expansion phase. ARBK stock settled at JD245 up 9% for the week. On the other hand, Jordan Kuwait Bank (JOKB) climbed by 16% to close at JD12.65 with more than 0.255 million shares traded.

In the services sector, Zara Investment (ZARA) soared 26% to close at JD1.32, while Jordan Express Tourist Transport (JETT) jumped 23% to end today's session at JD1.76. The stock, which trades on a forward P/E of 17.20x, saw more than 1 million shares exchanged. Meanwhile, the Jordan Telecommunication (JTEL), represented by France Telecom, will be starting negotiations with the government to renew the management contract for JTEL. In the interim, the Telecommunication Regulatory Commission (TRC) began accepting bids for the new fixed line license. JTEL's stock, which has risen by 60% since the beginning of the year, is currently trading on a trailing P/E of 22.9x; it managed to close at JD3.63.

Jordan Phosphate Mines (JOPH), which is currently being privatised, recorded net profit of JD3.7 million for the first nine months of 2004, JOPH also announced that it is expecting to post JD5 million in net profits by year-end. The stock climbed to the JD3.18 level before it ended the week at JD2.86. On the other hand, 2.78 million of Jordan Industrial Resources (JOIR)'s shares were exchanged pushing the stock up to the JD1.09 level. In the meantime, an official Italian source announced that Italy might start utilizing Jordan's Free Zones as a regional center for storing and assembling goods for re export to neighbouring countries.