Jul. 12--WEEKLY ANALYSIS

AMMAN -- The downward trend at regional and international exchanges drove the Amman Stock Exchange (ASE) to its lowest level since November 2004 on Wednesday before rebounding on Thursday to regain some of the losses it suffered last week.

The index closed at 2,581.39 points, a decline of 5.9 per cent amid notably lower trading volumes.

We expect international markets to continue influencing the ASE index this week with a chance for a rebound in share prices of some strategic companies which have reached attractive price levels.

All sectors regressed with real estate posting the largest loss as its index declined by 8.9 per cent.

As for trading activity, 66.4 million shares exchanged hands leaving gains at 41 firms and losses at 147 entities out of 200 traded companies.

In terms of value traded by sector, real estate came in first place accounting for 24.3 per cent of total value followed by the services sector with 23.5 per cent and then the diversified financial services which accounted for 19 per cent of total value traded last week.

The most actively traded shares were those of United Arab Investors, Darweesh Khalili and Sons, and Ad Dulayl Industrial Park with a combined value traded of JD11.8 million accounting for 11.7 per cent of total value traded.

One block deal valued JD3.7 million was executed on Royal Jordanian shares.

The ASE approved listing 13 million new shares in the paid-up capital of Jordan New Cable increasing its capital to JD40 million.

The ASE also approved listing 15.17 million new shares in the paid-up capital of Al Tajamouat for Touristic Projects increasing its capital to JD55.17 million.

United Arab Investors Company sold its 15 per cent stake in Kingdom Electricity Co. netting a profit of JD2.9 million.

The ASE approved the listing of 4.31 million new shares in the paid-up capital of Al Faris National Company for Investment & Export increasing its capital to JD33.31 million.

Data issued by the Department of Statistics (DoS) showed that the consumer price index rose by 0.5 per cent during the first six months of 2009 compared to the same period last year.

According to statistics issued by ASE, net foreign investments reached JD67.5 million during the first six months of this year compared to JD185.8 million for the same period last year.

The Land and Survey Department revealed that real estate trading volume dropped by 38 per cent during the first six months of 2009 to JD1.9 billion compared to JD3.2 billion during the same period last year.

Data issued by the Central Bank of Jordan (CBJ) indicated that total credit facilities extended by licensed banks rose by JD177.2 million or 1.4 per cent during the first five months of 2009 compared to an increase of JD293.3 million or 2.4 per cent during the same period last year.

Statistics issued by the Ministry of Finance showed that the central government's internal debt rose by 2.9 per cent or JD426 million during the first four months of this year to JD6,180 million.

The Income and Sales Tax Department increased collections by 10 per cent during the first half of 2009 to JD1.4 billion.

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