Ending on a Cheerful Note

Market participants at the Amman Stock Exchange (ASE) were busy this week tidying up their portfolios ahead of the close of the year, which helped maintain activity levels. Approximately 28 million shares, worth JD95.5 million, changed hands during the week, as the AMI advanced by 2.72% and the ASMI rose by 3.99%. The ASE traded up until Wednesday of this week.

In the banking sector, Industrial Development Bank (INDV) shot all the way up to JD3.20 before settling back to JD3.07 in healthy trading activity; the stock currently trades on a P/BV of 1.70x. Société Générale Jordanie (MEIB), meanwhile, managed to climb to JD2.09 before it pulled back slightly to close at JD1.95 with more than 1 million shares traded.

Jordan Petroleum Refinery (JOPT) continued last week's ascent and was the week's best performer, as it soared 21% to settle at JD5.41 with approximately 1.3 million shares traded. Arab Potash (APOT), which trades on a prospective P/E of 20.64x, moved up by 14% to JD10.99, while Jordan Phosphate Mines (JOPH) followed suit and jumped by 11% to end the week at JD3.23.

Jordan Cement Factories (JOCM), which currently satisfies almost 100% of the Kingdom's demand for cement, rose by 4% to close at JD12.29; it is trading on a prospective P/E of 13.88x. On the other hand, Jordan Steel (JOST) rose by 2% to end Wednesday's session at JD5.15; it trades on trailing P/E of 15.10x. The management of JOST disclosed that the company would resume exporting to Iraq in the near future after freezing its activities for two years. Resources for Qualified Industrial Zones (JOMA) was floated in the market on December 28, 2004, trading under a new name of Resources Company for Development & Investment (JOMA) after its merger procedures were finalized. The stock closed at JD0.54 up 6%.

Meanwhile, 2004 was another good year for Jordan's Qualified Industrial Zones (QIZ), whose exports grew 30% over last year. In general, QIZs continue to have a positive impact on Jordan's overall exports to the US, which have at an exceptional rate of 900% since 1998 to US$1 billion this year. Exports from QIZs constitute approximately 20% of the Kingdom's total exports.