(MENAFN - Jordan Times) The general index of the Amman Stock Exchange (ASE) dropped by 1.4 per cent closing last week at 2,581.65 points. The index shed points in each trading session affected by falling share prices of most strategic companies that reported lower profits during the first half of the year compared to the same period in 2008.
We expect investors to start building new positions this week in the shares of companies that announced better than expected semiannual results.
Except for banking and insurance which rose by 0.6 per cent and 0.1 per cent respectively, all other sectors regressed especially the diversified financial services whose index posted the largest loss of 4.62 per cent.
As for trading activity, 78.6 million shares exchanged hands leaving gains at 79 firms and losses at 100 companies out of 197 traded corporations.
In terms of value traded by sector, services came in first place accounting for 24.7 per cent of the total followed by the real estate sector with 23.2 per cent and then the industrial which accounted for 21.1 per cent of the total value traded last week.
The most actively traded shares were those of United Arab Investors, Ad Dulayl Industrial Park, and First Jordan Investment with a combined value traded of JD11.6 million accounting for 10.9 per cent of the total value traded.
Three block deals were executed last week on the shares of Capital Bank of Jordan, Amwal Invest and Al Ahlia Enterprises with transaction value of JD32.2 million, JD4.8 million and JD1.9 million respectively.
Arab Bank Group reported a midyear profit of 343.7 million, 26.2 per cent lower than 465.9 million recorded the midyear of 2008.
Arab Potash Company announced a profit of JD68.54 million during the first half of this year compared to JD90.1 million during the same period of last year.
Jordan Phosphate Mines generated JD67.2 million profit as of June 30, 2009 compared to JD75.3 million on June 30, 2008.
Jordan Petroleum Refinery boosted midyear net profit to JD17.8 million, 682.6 per cent higher than the JD2.3 million recorded in midyear 2008.
Royal Jordanian returned to profitability with a net income of JD7.7 million during the first half of this year compared to a loss of JD4 million during the same period last year.
Jordan Steel's net income amounted to JD6 million as of June 30, 2009, compared to JD14.8 million registered on June 30.2008.
ASE data showed that net non-Jordanian investments dropped by 82.6 per cent during the first seven months of this year to JD40.8 million compared to JD234.3 million during the same period last year.
According to the Central Bank of Jordan (CBJ), total Jordanian remittances declined by 12.1 per cent last June compared to a 20.6 per cent increase during the same month last year.
The volume of real estate trading in Jordan reached JD2,348 million during the first seven months of 2009 compared to JD3,825.0 million during the same period last year, representing a drop of 38.6 per cent.
CBJ data revealed that total credit facilities increased by JD38.2 million, or 0.3 per cent, during the first half of 2009 compared to an increase of JD1,615.7 million, or 14.3 per cent, during the first half of 2008.