[2007-07-19]  Analysts, investors expect higher share prices, trade volume at Amman Bourse
(MENAFN - Jordan Times) AMMAN — As the deadline for disclosing midyear results approaches, financial analysts and major investors expect a "leap" at the Amman Bourse from next week in terms of share prices and trade volume.

Jawad Kharouf, president of the Association of Certified Capital Market Professionals expects a very good trading volume and an upward price trend before and after the July 31 deadline.

"I am optimistic that there will be a jump in the stock market, especially since there are expectations of good midyear results of the listed companies," Kharouf told The Jordan Times. "I expect that there will be a great turnover by investors to purchase shares."

Sources at the Amman Stock Exchange (ASE) said the midyear results deadline might be extended by one day because of municipal elections which will be held on July 31.

United Financial Investments Company (UFICO) Deputy General Manager Jamal Al Amad also agreed that big shares will take place from next week as some shares are undervalued and few companies have declared their midyear results so far.

According to the ASE, less than 15 companies have announced their midyear results out of the 235 companies listed at the market.

"I expect that next week and the week after, there will be a huge turnover of stocks in certain sectors, especially the real estate and the banking sectors," Amad said.

"People are buying and I think we are on the verge of a new upward trend in the market," Amad added. "Investors are building positions as there are expectations of a leap in the trading volume and prices of stocks."

According to UFICO's deputy general manager, the market may improve following the trend in the stock markets of neighbouring countries, which usually affect the ASE.

Abdul Aziz Haikal, a major trader who has been trading at the ASE since 1979, echoed similar remarks of a possible large turnover and higher prices of shares.

"This is a very good time to buy. I am personally buying shares extensively. I expect the increase will be in the real estate sector as the prices of land are rocketing. However, I do not see a surge in the banking sector," Haikal told The Jordan Times.

Wednesday's share price index rose by 0.26 per cent, closing at 5,738 points. Trading volume reached JD41.7 million. A total of 17.2 million shares were traded through 12,988 transactions.

The top five gainers were, the Jordan Loan Guarantee Corporation by 5 per cent, Contempro for Housing Projects by 5 per cent, Salam Internationl Transport and Trading by 4.9 per cent, International for Medical Investment by 4.88 per cent and Al Bilad for Securities and Investment by 4.79 per cent.

The top five losers were, the Rum Aladdin Industries by 4.85 per cent, Jordan Industrial Resources by 4.55 per cent, Jordan Sulpho-chemicals by 3.65 per cent, Jordan International Investment by 3.57 per cent and Jordan French Insurance by 3.33 per cent.


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