Stock Split

The Amman Stock Exchange (ASE) faced strong profit taking this week, which played a key role in keeping volumes high. 30.7 million shares, worth JD142.2 million changed hands as both AMI and ASE indices retracted by more than 3%.

Arab Bank (ARBK)'s board of directors decided yesterday on a stock split with the par value changing to JD1 from JD10. This long anticipated decision will be presented to the bank's EGM, normally held in 1Q of the following year. Approximately 0.253 million ARBK shares traded capturing the highest spot in terms of volumes, but the stock slid 3% to close at JD238. Meanwhile selling pressure on the Jordan Kuwait Bank (JOKB)'s stock was enough to push the stock down by 9% to end today's session at JD11.50. Meanwhile, Export & Finance bank (EXFB) was awarded a financial strength rating of BBB- with a stable outlook from the Capital Intelligence, the credit rating agency. The stock closed at JD4.33 down 5%.

On the other hand, Minister of Finance H.E. Mr. Mohammad Abu Hammour, announced that the government will adopt a 5-year plan to liberalize prices of oil derivatives. The plan will reduce oil subsidies by JD60-65 million per year and it will be implemented once the concession contract with the Jordan Petroleum ends. JOPT's share, which is currently trading at a trailing P/E of 29.86x, settled at JD4.10 dropping 4%. Meanwhile, in the mining sector, Arab Potash (APOT), which trades on a forward P/E of 17.87x, managed to close at JD8.58 climbing 1%, while Jordan Phosphate Mines (JOPH) closed at JD2.79 down 2%.

In a first step to develop the telecommunication infrastructure in Aqaba Special Economic Zone Authority (ASEZA), a memorandum of understanding was signed on Sunday between ASEZA and Jordan Telecommunication (JTEL) to prepare the area with the necessary infrastructure. Meanwhile, JTEL fall by 6% to JD3.42 with more than 0.520 million shares changing hands.

In the meantime, Inflation in Jordan has risen since the beginning of the year until November by 3.3% compared with the same period of the last year, and this was mainly due to the increase in meat and poultry products' prices, which rose by 7.6%.