ASE Market Wrap-Up 13 August 2014

ASE Market Wrap-Up
13 August 2014
The ASE snaps a 3-day losing streak; stocks rebound
30
2200
25
2100
2000
20
1900
15
1800
10
Points
JD Million
ASE General Index
1700
5
1600
0
1500
Value Traded(Left )

Jordanian stocks recorded their biggest daily gain in more than 2 weeks after adding
9.4 points on Wednesday. The general index closed the session at 2,097.15,
approaching its 2,100 support level as sector indices end the day mixed.

Investors built new positions in the shares of mining heavyweights Arab Potash
Company (APOT, 5.5%) & Jordan Phosphate Mines (JOPH, 0.6%). Industrials led
gainers for the session, up by 0.73%.

Similarly, Arab Bank (ARBK) rebounded, advancing by 3.7% to push the index
higher. Jordan Ahli Bank (AHLI, 1.6%) also contributed to sector and market gains
pushing the banking sector 0.68% higher.

On the other hand, Jordan Electric Power (JOEP) fell by 1.5% to weigh on the
services (-0.10%) sector. The real estate & insurance sectors fell by 0.46% & 0.21%
respectively.
ASEIndex(Right )
Regional Markets
Trading Activity
Value
JD5.40 million
Volume
4.60 million
Source: ASE
Market Breadth
Gainers
Losers
43
Unchanged
46
46
Source: ASE
Top Gainers
Price
% Chg
South Electronics
0.07
16.67%
Babelon
2.18
9.55%
Resources Invest
0.15
7.14%
Source: ASE
Amman SE (ASE)
Index
2097.15
Daily
0.45%
MTD
-1.85%
YTD
1.52%
Dubai FM (DFM)
4805.07
-0.13%
-0.58%
42.59%
Abu Dhabi SE (ADX)
5003.03
0.31%
-1.03%
16.61%
Saudi SE (TASI)
10593.10
0.04%
3.70%
24.10%
Kuwait SE (KSE)
7245.71
0.15%
1.61%
-4.02%
Doha SM (DSM)
13522.79
1.83%
5.01%
30.28%
Bahrain SE (BAX)
1470.13
-0.52%
-0.11%
17.72%
Muscat SM (MSM)
7298.35
0.09%
1.36%
6.79%
Egypt SE (EGX 30)
9288.24
0.15%
5.23%
36.94%
91.15
3.63%
-2.68%
-19.44%
Iraq SE (ISX)
Source: Bloomberg
Sector Indices
Top Losers
Price
% Chg
Financial
Al-Manara Insurance
0.11
-8.33%
Banks
J. Press Foundat
1.92
-4.95%
Insurance
Al-Quds Ready Mix
0.20
-4.76%
Diversified Fin. Ser.
Source: ASE
Real Estate
Most Active
Price
% Chg
Taj Catering Housing
0.86
-1.15%
Jordan Ahli Bank
1.30
1.56%
J D Properties
0.74
1.37%
Services
Industrial
Value Traded (JD)
No. of Shares
Close
% Chg
3,767,171
3,170,986
2,850.01
0.52%
1,828,463
661,915
4,200.93
0.68%
9,046
19,444
1,921.40
-0.21%
206,229
317,578
1,789.61
0.27%
1,723,433
2,172,049
1,934.36
-0.46%
539,566
590,433
1,631.01
-0.10%
1,126,758
872,460
1,872.55
0.73%
Source: ASE
Source: ASE
Top Value Traded
Price
Arab Bank
7.47
% Chg
3.75%
Taj Catering Housing
0.86
-1.15%
Jordan Ahli Bank
1.30
1.56%
Corporate News

Source: ASE
Trading by Investor Type
Buy
Sell
Retail
64.36%
74.56%
Institutional
35.64%
25.44%
Source: SDC
Buy
Sell
Jordanians
78.61%
87.00%
Arabs
11.13%
10.97%
Foreigners
10.26%
2.03%
Source: SDC
Economic News

Trading by Nationality
Capital Bank of Jordan (EXFB) signed an agreement with Jordan Mortgage Refinance
(JMRC), under which JMRC will grant the bank a JD10 million loan to refinance housing
loans granted by the bank, to guarantee mortgages.
According to the Department of Statistics (DOS), the inflation reached 3.2% during the
first seven months of this year. The DOS attributed the rise to higher rents, besides an
increase in the prices of clothes and shoes, tobacco, transport and education. This rise
was coupled with a decrease in the prices of meat and poultry, hygienic products, oil and
fat as well as telecommunications.
1
ASE Market Wrap-Up
Economic News (cont’d)

The Social Security Corporation (SSC) posted a 9.4% increase in insurance revenues in
2013, reaching JD976 million from JD892 million the year before, a SSC report showed
Wednesday. The rise in revenues, however, was coupled with an increase in expenditure
to cover insurance services of pensions, work injuries and compensations, which went up
by 11.5% last year to reach JD609 million, compared with JD546 million in 2012, the
SSC said in a statement e-mailed to The Jordan Times. But despite the increase in
expenditure, the corporation recorded a higher surplus last year, amounting to JD334
million compared with JD306 million in 2012. The surplus is the difference between the
revenue generated from insurance subscription fees and funds spent to cover pensions,
work injuries and compensations, among other obligations. The number of active
subscribers exceeds one million, working in 45,165 establishments, while the number of
subscribers who joined the SSC insurance voluntarily went up by 5.9% to reach
64,191people, according to the SSC report. The number of overall pensioners reached
153,167 by the end of last year; 8,540 people retired in 2013, nearly 59% of whom took
early retirement, the statement said. The number of work injuries recorded by the SSC
dropped by 7.4% to 15,822 last year, the corporation said, attributing the decline to
awareness and media campaigns it organized.

The value of government subsidies for various goods and services amounted to over
JD2.2 billion in 2013, Planning Minister Ibrahim Saif said on Wednesday. Saif revealed
the figures while briefing the Council of Ministers on the volume of government subsidies
according to Finance Ministry data, indicating that it constituted 9.2% of the Kingdom's
gross domestic product (GDP) and 36.4% of overall government spending last
year. Non-Jordanians' share of the subsidy was 4%, which is around JD85.6 million, the
minister said, noting that the data also calculated the share of each income segment
according to the living expenses of households. The underprivileged bracket is the one
where an individual’s annual expenditure is below the poverty line of JD813.7, while the
annual individual expenditure of the bracket below the middle class is between JD813
and JD1,627. Individuals whose annual expenditure is two to four times the poverty
line, from JD1,627 to JD3,245, are classified as middle income, whereas the rich are
those who spend more than JD3,254 per year. Saif pointed that the government’s
support for bread through selling subsidized flour to bakeries amounted to JD185 million
in 2013.
He indicated that nearly 88% of the bread subsidy went to middle and lower income
households. Turning to water subsidies, Saif said they amounted to JD345.2 million,
while subsidies for gas cylinders used for cooking and heating purposes were JD39.7
million. Subsidizing electricity tariffs represented the highest cost on the budget last
year, reaching JD1.321 billion, the minister said, noting that the poor bracket received
the smallest share of this subsidy. Poor families benefited the least from the electricity
subsidy as their share was only JD105 million last year, while those of the middle class
and the bracket classified below middle income were JD447 million and JD456 million.
Meanwhile, the rich segment’s share was JD311 million, he said. The education sector
subsidy, mainly to public universities, stood at JD68.5 million by the end of last year,
Saif added, noting it did not include the financial support provided to the fund for
underprivileged students. Subsidies for the health sector totaled JD157.2 million, while
cash support disbursed by the National Aid Fund to poor families across the Kingdom
amounted to JD85.9 million, according to the Planning Ministry statement.

The Attarat Power Company on Wednesday said it is awaiting the government’s response
on when to sign agreements to go ahead with its USD2.4 billion oil shale-fuelled power
plant. “The government approved the deal, but it seems the National Electric Power
Company is still waiting for official approval over parts of the agreement from the
concerned authorities before they can invite us to sign the documents,” Andres Anijalg,
chairman of the Attarat Power Company, said in an e-mail to The Jordan Times. “As
soon as the government of Jordan is ready to sign the agreement with Attarat Power
Company, we can move forward with the necessary preparations to start the
construction next year”. Earlier this year, the Cabinet approved signing an agreement to
build the plant by the company, which is owned by Enefit (Eesti Energia AS), YTL Power
International Berhad and Near East Investments Limited. The plant’s 470-megawatt
capacity will account for some 15% of Jordan’s current overall electricity capacity of
3,200 megawatts. The plant, which is expected to be operational in February 2018, will
be established on a build, own, and operate basis.
2
ASE Daily Top 30
Rank
Ticker
Closing
Price
52 Week
Change
Last
Report
P/E TTM
P/BV Div. Yield
Net Income (JD Mil)
MKT Cap
(JD Mil)
Change
YTD
FY 2013
Arab Bank Group
ARBK
7.47
3.7%
6.52
10.50
Q2
11.4
0.8
4.0%
4,254.9
-4.6%
352.4
293.7
1.1%
6.8%
2
The Housing Bank
THBK
9.10
0.0%
8.45
9.15
Q2
21.2
2.4
1.6%
2,293.2
4.6%
99.8
6.1%
57.0
16.8%
1.5%
11.3%
3
Arab Potash Company
APOT
24.80
5.5%
20.47
37.62
Q2
25.6
2.6
6.0%
2,066.3
-11.6%
130.7
-34.2%
43.2
-53.7%
8.2%
9.3%
4
Jordan Telecom
JTEL
3.07
0.0%
2.87
4.14
Q2
15.7
2.3
6.8%
767.5
-25.1%
51.5
-38.1%
22.6
-10.2%
8.1%
13.8%
5
Jordan Islamic Bank
JOIB
3.43
0.6%
2.92
4.50
Q2
11.9
2.0
4.4%
514.5
0.3%
45.1
23.6%
22.7
-7.9%
1.3%
17.1%
6
Jordan Phosphate Mines
JOPH
6.69
0.6%
5.43
8.75
Q1
89.8
0.7
4.5%
501.8
-6.4%
1.2
-99.1%
N/A
N/A
0.5%
0.7%
7
Bank of Jordan
BOJX
2.57
-0.4%
2.20
2.81
Q2
9.3
1.3
5.8%
398.6
2.8%
40.7
12.3%
22.1
11.3%
2.0%
14.2%
8
Jordan Kuwait Bank
JOKB
3.67
0.0%
3.08
4.35
Q2
7.3
0.9
5.4%
367.0
-5.7%
49.6
7.1%
27.6
3.6%
2.0%
12.6%
9
Cairo Amman Bank
CABK
2.86
0.0%
2.51
4.04
Q2
8.1
1.3
5.9%
357.5
2.9%
40.8
15.7%
20.6
18.0%
2.0%
16.9%
10
Eqbal Investment Company
EICO
12.60
0.0%
10.10
15.90
Q2
11.3
5.9
7.9%
315.0
-10.0%
28.7
36.9%
12.5
-6.6%
32.2%
50.6%
11
Afaq Energy
MANE
2.82
-0.7%
1.47
3.18
Q2
12.9
2.4
4.3%
310.2
36.9%
18.5
152.9%
10.5
113.0%
9.4%
18.9%
12
Capital Bank of Jordan
EXFB
1.64
0.0%
1.09
2.32
Q2
8.1
1.1
6.1%
297.7
2.5%
35.1
78.1%
18.5
9.3%
2.0%
14.4%
13
Arab Jordan Invest Bank
AJIB
1.64
0.0%
1.40
2.73
Q2
14.2
1.3
7.9%
246.0
-17.2%
16.1
9.1%
9.0
16.2%
1.3%
11.8%
14
Jordan Ahli Bank
AHLI
1.30
1.6%
1.07
1.49
Q2
7.2
0.8
4.6%
227.5
6.6%
16.0
-33.0%
25.5
156.3%
1.2%
11.0%
15
Jordan Electric Power
JOEP
2.71
-1.5%
2.60
3.40
Q2
NEG
2.6
2.8%
204.9
-16.9%
-7.9
-180.9%
-7.1
22.4%
-0.8%
-6.7%
16
Jordan Petroleum Refinery
JOPT
4.55
1.1%
3.78
5.15
Q1
6.0
1.4
-
182.0
-6.2%
28.2
31.7%
N/A
N/A
1.8%
25.3%
17
Bank Al-Etihad
UBSI
1.63
0.0%
1.30
2.01
Q2
7.3
0.7
3.7%
179.3
-1.2%
23.1
56.6%
11.6
14.2%
1.3%
9.8%
18
Arab Int. for Education & Inv.
AIEI
4.40
0.0%
3.06
4.51
Q2
9.0
2.2
6.8%
178.2
19.2%
17.5
27.6%
12.1
22.4%
18.1%
25.2%
19
Northern Cement
NCCO
2.90
0.0%
1.30
3.10
Q2
11.1
2.3
3.4%
159.5
-3.3%
6.2
39.7%
9.8
540.0%
19.0%
22.3%
20
Invest Bank
INVB
1.37
-0.7%
1.04
1.70
Q2
11.3
1.0
5.1%
137.0
14.2%
13.1
16.3%
6.4
-12.6%
1.6%
8.8%
21
Union Land Development Corp
ULDC
2.80
1.1%
2.70
4.15
Q2
302.2
2.3
-
126.0
-15.2%
2.3
-136.8%
0.6
-75.4%
0.6%
0.7%
22
JDFS
16.00
0.0%
11.10
15.01
Q2
9.0
3.4
6.3%
120.0
30.6%
9.9
22.5%
8.2
71.1%
34.2%
40.2%
UTOB
7.79
0.0%
5.19
10.23
Q2
104.3
3.1
5.1%
116.9
1.8%
3.5
3.5%
1.2
-65.4%
1.2%
2.6%
24
Jordanian Duty Free Shops
Union Tobacco & Cigarette
Industries
Jordan Projects for Tourism
JPTD
5.40
0.0%
5.40
5.75
Q2
NEG
5.3
-
116.1
-1.3%
-3.5
-9.3%
-0.9
39.5%
-4.6%
-12.4%
25
Arab Banking Corporation
ABCO
1.05
1.0%
0.98
1.29
Q2
9.8
0.8
-
115.5
-4.5%
11.7
5.8%
6.3
2.7%
1.2%
8.8%
26
Jordan Commercial Bank
JCBK
1.05
-0.9%
0.88
1.19
Q2
72.3
0.9
-
105.0
1.0%
3.6
68.1%
0.7
-76.5%
0.1%
1.3%
27
Mediterranean Tourism Inv.
MDTR
2.22
0.0%
1.86
2.35
Q2
36.5
2.0
2.7%
99.9
-0.9%
3.0
26.0%
1.6
-13.8%
5.1%
5.5%
28
Zara Investment
ZARA
0.62
0.0%
0.54
0.74
Q2
149.0
0.5
-
91.9
14.8%
-1.1
-201.6%
1.8
2106.0%
0.2%
0.4%
29
Jordan Cement Factories
JOCM
1.43
0.0%
0.89
1.57
Q2
NEG
1.0
-
86.4
6.7%
-27.6
-31.5%
-0.9
-93.3%
-7.6%
-15.4%
30
Union Investment Corporation
UINV
1.71
-0.6%
1.72
2.67
Q2
NEG
2.4
-
85.5
-21.6%
4.4
-207.0%
0.6
-89.0%
-0.1%
-0.5%
15.87
1.28
4.2%
15102.7
-4.3%
1012.4
-4.9%
637.6
2.0%
1.5%
8.1%
23
ASE Top 30 totals
Q1: Ratios are based on Q1 2014 results
Q2: Ratios are based on Q2 2014 results
NEG: P/E ratio is negative
N/A: Not Available
High
H1 2014
ROaE
TTM
1
Low
Change
YoY
44.4%
ROaA
TTM
Change
YoY
7.9%
Company Name
3
Research Contacts:
Trading contacts:
Customer Service:
Tarek Yaghmour
Head of Research
Khaldon Al-Zoubi
Head of Brokerage
Sawsan Saleh
Head of Customer Service
Tel: +962 6 5200330 Ext. 327
[email protected]
Tel: +962 6 5200330 Ext. 351
[email protected]
Tel: +962 6 5200330 Ext. 349
[email protected]
Hamzeh Abdul-Hadi
Research Analyst
Tel: +962 6 5200330 Ext. 478
[email protected]
Mohammad Al-Zoubi
Research Analyst
Tel: +962 6 5200330 Ext. 805
[email protected]
Disclaimer
The information and opinions contained in this document have been compiled in good faith from sources believed to be reliable. Capital
Investments makes no warranty as to the accuracy and completeness of the information contained herein. All opinions and estimates
included in this report constitute and reflect our independent judgment as of the date published on the report and are subject to
change without notice. Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any
part of this report. Capital Investments and its related companies may have performed or seek to perform any financial or advisory
services for the company mentioned in this report. Capital Investments, its funds, or its employees may from time to time take
positions or effect transactions in the securities issued by the company mentioned in this report .This document may not be reproduced
in any form without the expressed written permission of Capital Investments.
4

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