Amman Stock Exchange weekly analysis 

(MENAFN - Jordan Times) The general index of Amman Stock Exchange (ASE) regressed for the second week in a row affected by a sharp drop in trading volumes which led to declining share prices of most strategic companies.

The index closed last week at 2,533.95 points, 1.85 per cent lower than the previous week.

We expect the market to rebound this week driven by improving performance of major regional and international markets following positive economic news from a number of major industrial countries.

All sectors recorded losses last week especially the real estate whose index fell by 4.90 per cent

As for trading activity, 63.1 million shares exchanged hands leaving gains at 55 companies and losses at 120 entities out of 196 traded corporations.

In terms of value traded by sector, services came in first place accounting for 25.4 per cent of the total followed by real estate sector with 22.4 per cent and then the industrial which accounted for 19.9 per cent of the total value traded.

The most actively traded shares last week were those of Contemporary for Housing Projects, Al Ahlia Enterprises, and Ad Dulayl Industrial Park with a combined value traded of JD13.7 million accounting for 17 per cent of total value traded.

Two block deals were executed on the shares of Al Ahlia Enterprises and Specialised Industrial Compounds with transaction value of JD2.1 million and JD0.6 million respectively.

Jordan Dubai Islamic Bank reported a net income of JD1.3 million for the first six months of 2009 compared to JD2.4 million in the same period last year, a drop of 46.4 per cent.

The Jordan Securities Commission approved the registration of 4.5 million new shares in the paid-up capital of Jordan Real Estate Company for Development through the capitalisation of retained earnings.

The Jordan Emirates Insurance Company announced a net income of JD0.1 million for the first six months of 2009 compared with a loss of JD1.8 million for the same period last year.

An agreement was signed by Darkom Investments to purchase land from United Arab Investors Company for an amount of JD4.4 million.

Data issued by the Department of Statistics (DoS) showed that the consumer price index has declined by 0.1 per cent for the first seven months of 2009 compared to the same period in 2008.

DoS data also showed that the agricultural producers' price index has declined by 23.6 per cent in June 2009 compared to the same period last year.

Statistics indicated that the trade balance deficit narrowed by 31.6 per cent in the first six months of this year to JD2,376 million compared to JD,3473 million in the same period of 2008.

According to the Central Bank of Jordan (CBJ), external trade during the first five months of the year has fallen by JD1,186 million to reach JD5,311 million compared to JD6,497 million in the same period last year.

Excess reserves of licensed banks held at the CBJ including overnight deposits reached JD3.41 billion as of 9/7/2009.

The CBJ said total credit facilities extended by banks to individuals during the first half of the year declined by 5.9 per cent.