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ASE to become public shareholding soon

By - Jan 04,2017 - Last updated at Jan 04,2017

ASE CEO Nader Azar addresses journalists at a press conference on Wednesday (Petra photo)

AMMAN — The Amman Stock Exchange (ASE) will soon become a public shareholding corporation and this will help it build partnerships with regional and international stock markets, its CEO Nader Azar said on Wednesday.

Speaking at a press conference, Azar indicated that this way, the company will have a chance to diversify its sources of income and increase revenues. 

It will "easily access" funding and loans to improve its competitiveness, he told the press.

“Procedures to transform the ASE into a company will most likely be finalised by the end of this month,” he said, adding that this will be good for the economy. 

The Cabinet had approved the transformation last year.

Despite all challenges facing the country, the ASE is “doing well”, Azar conceded. 

Investors from more than 97 nationalities own shares in companies listed on the ASE, making up 50 per cent of the total investors, he said.

By the end of 2016, the ASE price index, weighted by free float shares, went up by 1.6 per cent to reach 2170.3 points compared with the previous year, the CEO indicated. 

The market capitalisation of listed shares at the ASE decreased by 3.6 per cent to JD17.3 billion; compared with 2015 closing, constituting 65 per cent of the GDP, he added.

Also, the trading value for the ASE dropped by 31.8 per cent during 2016 to JD2.3 billion compared with JD3.4 billion for the year 2015, according to the Bourse chief.

Moreover, Azar pointed out that the Amman Bourse has joined a joint project with regional exchanges that include Muscat, Beirut and Tunisia to implement a new trading system, developed by a French company. 

The system will allow for broader trading, he said. 

The Amman Bourse was established in 1999 as a non-profit institution with administrative and financial autonomy.

Chamber assists in improving business environment — Murad

By - Jan 04,2017 - Last updated at Jan 04,2017

AMMAN — The Amman Chamber of Commerce has cooperated with the government over the past year in resolving and following up on several issues to ease the flow of business, the chamber’s President Issa Murad, who is also a senator, said on Wednesday.

Speaking in an interview with the Jordan News Agency, Petra, he said the chamber helped reduce customs fees for hybrid vehicles and facilitate dealings related to work permits for Syrians, besides organising high- level business meetings. He highlighted several events the chamber hosted last year to provide a platform for discussing various issues, including agriculture, healthcare, bourses and modern challenges, according to Petra. 

Palestinians face budget cuts after sharp fall in foreign funding

By - Jan 03,2017 - Last updated at Jan 03,2017

Palestinian President Mahmoud Abbas lays a wreath to the mausoleum of former Palestinian leader Yasser Arafat during the celebrations of the 52nd foundation anniversary of the Fateh movement in Ramallah, West Bank, on Saturday (Anadolu Agency photo)

RAMALLAH, West Bank — Foreign financial support to the Palestinian budget is running at about half the forecast level, the Palestinian prime minister told local media on Tuesday, meaning deep cuts will have to be made to the budget this year.

At its Cabinet meeting, the government said it expected to run a budget deficit of 4.12 billion shekels in 2017 ($1.06 billion), approaching 15 per cent of the gross domestic product.

"We had expected to get $1.2 billion in [external] support and offers but we have only received $640 million so far," Prime Minister Rami Al Hamdallah told Al Quds newspaper.

Saudi Arabia has in the past been a reliable supporter of the Palestinians, as have the United Arab Emirates and Turkey, but it has cut back its contributions sharply in recent months.

Normally, Saudi Arabia pays about $20 million a month into the budget, but it stopped making regular contributions last April, in part to apply pressure on President Mahmoud Abbas to implement political changes.

The European Union and the United States have also reduced direct budget support, preferring instead to fund development programmes that target
specific areas.

The Cabinet statement said the total shortfall in foreign funding was forecast to be $765 million in 2017, which will put pressure on government departments to cut costs.

"Such a decline compels us to adopt an austerity policy in all fields," the statement said.

More than half of all spending — 55 per cent — goes on salaries and wages for the Palestinian Authority's 156,000 state employees, from teachers and doctors to police and public security staff, according to the finance ministry's 2016 budget.

 

While the economy in the Israeli-occupied West Bank and Gaza grew by about 1.5 per cent in 2015, the last full figures available, unemployment continued to rise, standing at 27.4 per cent overall — 18.7 per cent in the West Bank and 42.7 per cent in Gaza, the ministry said.

GDP grows by 1.8 per cent in 2016 Q3

By - Jan 03,2017 - Last updated at Jan 03,2017

AMMAN — The country’s gross domestic product (GDP) grew by 1.8 per cent during the third quarter of 2016 compared to the figure recorded in the same period of the previous year due to better performance by several service sectors.

The Department of Statistics (DoS) report indicated that most economic sectors reflected positive growth in 2016’s third quarter, compared to the same period of 2015, the Jordan News Agency, Petra, reported on Tuesday.

The electricity and water sector registered the highest growth, totalling 6.3 per cent at fixed market prices, followed by the finance, insurance, real estate and business service sectors at 4.2 per cent. 

New high for eurozone stock markets

By - Jan 02,2017 - Last updated at Jan 02,2017

A trader at the New York Stock Exchange in Manhattan, New York City, on Friday (Reuters photo)

LONDON — Eurozone stocks opened 2017 by climbing to their highest in more than a year on Monday after data showed manufacturers in the currency bloc ramped up activity at the fastest pace in more than five years.

With all of Asia's major markets closed for the New Year holiday — along with Britain and Switzerland in Europe — trade was thin, which could cause some volatility. The United States and Canada markets were also closed.

The eurozone's blue-chip Euro STOXX 50 index rose half a per cent to its highest since December 2015 after the purchasing managers' index (PMI) for factories in the currency bloc came in at 54.9 — well above the 50 mark that separates growth from contraction.

The euro, though, took no comfort from the figures, slipping 0.4 per cent back below $1.05 after climbing to as high as $1.07 during a flash surge in low trading volumes in Asia on Friday.

Analysts said the fall was mainly due to a resumption of an up-trend in the greenback that saw it surge to 14-year highs in December on the view the US Federal Reserve will hike rates as many as three times this year, and that Donald Trump's administration will stoke growth and inflation with a programme of fiscal expansion.

The dollar index — which measures the greenback against six major rivals — climbed half a per cent, having hit a two-week-low on Friday.

"In the last days of 2016 we saw the dollar retreat somewhat, and there might be some sense of a correction from Europe this morning. I don't see any fundamental drivers for the moves," said Commerzbank currency strategist Esther Reichelt, in Frankfurt.

Italy's top share index hit its highest level since January last year, outperforming other major European stock indexes, with a rally in its banks and a strong manufacturing report improving sentiment.

Italy's FTSE MIB index was up 1.5 per cent by 1215 GMT at its highest level since January 15 of 2016. Germany's DAX was up 0.9 per cent at its highest in nearly 17 months, while France's CAC was up 0.5 per cent at a 13-month peak.

As European stocks climbed, a rally in risk appetite also pushed down the yields on lower-rated government bonds in the eurozone to multi-week lows. Italian, Spanish and Portuguese 10-year bond yields were down roughly 8 basis points each on the day.

 

Terrorist attacks

 

A gun attack in Istanbul that killed 39 people was seen having little impact on markets, with the Japanese yen — traditionally used as a safe haven — falling 0.3 against the dollar, close to an 11-month low.

The Deash terror group claimed responsibility on Monday for the New Year's Day mass shooting, which was carried out by a lone gunman in a packed nightclub in the Turkish city.

A separate Daesh attack in Baghdad killed 24 people on Monday.

"After all the big political shocks last year and muted market reaction, it is tempting to argue that the markets are very resilient," said Finland-based Nordea Chief Market Strategist Jan Von Gerich.

"I would say this is too optimistic an assumption and I think we will see more volatility this year."

The Turkish lira slipped half a per cent after the attack to 3.5440 per dollar, close to a record low of 3.5840 the lira touched in December.

"The problem is that this once again stresses the increasing instability and the security issues, and we're seeing tourist numbers going down, which will have a lasting negative impact on the Turkish economy... and that's Turkish lira-negative," said Commerzbank's Reichelt.

Data released earlier in the day showed China's manufacturing sector expanded for a fifth month in December, though growth slowed a touch more than expected in a sign that government measures to rein in soaring asset prices are starting to have a knock-on effect on the broader economy.

The Chinese yuan suffered its biggest annual loss in more than 20 years in 2016, with an almost 7 per cent fall making it the worst-performing currency in Asia.

 

Digital currency bitcoin started the year by jumping above $1,000 for the first time since late 2013.

Foxconn invests $8b in China LCD plant

By - Dec 31,2016 - Last updated at Dec 31,2016

Terry Gou, founder and chairman of Taiwan's Foxconn Technology, is shown on a screen during the third annual World Internet Conference in Wuzhen town of Jiaxing, Zhejiang province, China, on November 17 (Reuters photo)

BEIJING — Taiwan tech-giant Foxconn plans to build an $8.8-billion factory in China, state media said Saturday, amid reports its billionaire boss is cooling off on future US investments.

Foxconn, a major Apple supplier, will spend the vast sum on an industrial complex in the sprawling southern city of Guangzhou.

The factory will make large-screen liquid crystal displays (LCD), the firm said at an event in the Chinese city on Friday. It will be operational by 2019.

"We have in China a government that knows how to be efficient and supports new technology," said Foxconn President Terry Gou in an interview with China's 21st Century Business.

"As to whether we'll invest in the US in the future I've no idea. As a matter of fact, the new administration isn't in office and its new policies aren't in place," Gou added.

Foxconn employs around a million workers at its factories across China and has operations in more than 10 countries.

In the US, it has a plant in Virginia for packaging and engineering which employs over 400 people. 

Earlier this month Foxconn confirmed it was in talks over a new US investment, while Japanese telecom giant SoftBank shares soared after President-elect Donald Trump unveiled a $50 billion deal with the two firms.

Trump announced the agreement — which he said would bring 50,000 jobs — in the lobby of Trump Tower in New York.

Gou said he would only divulge details after discussions with relevant US authorities, but made no mention of it during the factory announcement Friday.

 

The Guangzhou plant will be jointly run by Foxconn and Japan electronics firm Sharp, which Foxconn has a 66 per cent stake in.

Dubai giant ups stake for majority share in Korean port

By - Dec 29,2016 - Last updated at Dec 29,2016

DP World operates 77 marine and inland terminals across six continents (Reuters photo)

DUBAI — Dubai-based port operator DP World said Thursday it has acquired an additional 23.94 per cent stake in South Korea’s Pusan NewPort Company (PNC), giving it a majority shareholding.

The purchase from Samsung Corporation brings to 66.03 per cent DP World’s stake in PNC, which operates the largest terminal at the port of Pusan, the company said in a statement.

“We expect the port of Pusan to remain an important part of our global network and this investment further underlines our commitment to South Korea,” DP World Chairman Sultan Ahmed Bin Sulayem said in the statement. 

PNC is a joint venture led by DP World together with Samsung, Hanjin Heavy Industries and Construction and a number of other Korean construction companies.

It commenced operations in 2006.

The port is situated on the southeastern tip of the Korean Peninsula and is South Korea’s leading port city and gateway to the Pacific Ocean.

DP World operates 77 marine and inland terminals across six continents, with container handling being its core business.

 

In 2015, it shipped 61.7 million TEU, 20-foot equivalent units used to measure containers, across its portfolio.

Many months and millions of dollars needed to rebuild Aleppo

By - Dec 28,2016 - Last updated at Dec 28,2016

A Syrian worker stands in front of a reservoir on Tuesday at the water station in Aleppo's Suleiman Al Halabi neighbourhood (AFP photo)

ALEPPO, Syria — Midnight means lights out in Syria's Aleppo: as the clock strikes 12, overworked power generators shut off across the city, plunging war-ravaged neighbourhoods and heritage sites into darkness.

It will take many months and millions of dollars to breathe life back into Aleppo's devastated water, electricity, and transportation networks.

Four years of fighting have transformed it from Syria's industrial and commercial powerhouse to a divided and dysfunctional city.

"We sold our vacuum cleaner — what's the point in having one if we don't have electricity?" asked Umm Fayez, a housewife who lives in the central district of Furqan.

"It's been two years since we used our washing machine. We wash everything by hand, but the water is too cold now and I can't take it anymore," the mother-of-two told AFP, sitting in the dark amid piles of dirty laundry.

Forces loyal to President Bashar Assad declared full control over Syria's second city last week, after a landmark evacuation deal ended years of clashes.

Rocket fire, air strikes and shelling partly or totally destroyed more than half Aleppo's infrastructure and buildings, according to a "preliminary, optimistic evaluation" by local authorities.

Water shortages 

 

The main power station at Safirah to the southeast has been off line for two years because of the fighting.

Aleppo's residents are forced to rely on noisy generators that supply electricity through a web of thick cables snaking through scarred streets.

But they are shut down at midnight to save diesel supplies.

Umm Fayez's husband walks home every night from his sweetshop using a small torch to guide the way through pitch-black darkness.

"We have two projects that will re-establish electricity to Aleppo," an electricity ministry official told AFP, speaking on condition of anonymity.

He said new power lines would be laid from the neighbouring province of Hama within a year, but that it would cost more than four billion Syrian pounds, or about $8 million (7.6 million euros).

Residents are also impatient for water shortages to end, with the main pumping station currently operating at just a third of its capacity.

"We can only pump water to 20 per cent of Aleppo. Before the crisis, it was 70 per cent," said Issa Korj, chief mechanic at the Suleiman Al Halabi water plant.

He said it would take "many months" to repair the facility, but even then, water provision was likely to remain a problem for residents.

Most of the water pumped to Aleppo comes from the Euphrates Dam in the adjacent province of Raqa, which is held by the Daesh terror group. 

"They regularly cut off the water," said Fakher Hamdo, who heads Aleppo's water administration.

He added that global economic sanctions imposed on Syria since 2011 make spare parts nearly impossible to import.

 

‘Aleppo is one' 

 

But before any major rebuilding projects can begin, local authorities must clear away barricades and sand berms that had divided Aleppo between the rebel-controlled east and the government-held west.

Bulldozers can already be seen in the bombed-out streets, clearing rubble and dismantling metal barriers.

"The municipality immediately mobilised to open up the main thoroughfares," said city administrator Nadim Rahmoun.

"Opening up the roads will allow us to pump life back into the city with economic and social activity and public services," he added.

Aleppo's Old City — a renowned UNESCO World Heritage site — is at the heart of this effort.

The district witnessed some of the most brutal moments of the battle for Aleppo, and restoring its celebrated buildings will pose major challenges.

Municipal teams are carefully sorting through the rubble, setting aside original centuries-old stonework that will be used in the restoration.

In the nearby district of Aqyul, Abduljawad Najed, 32, had to negotiate heaps of sand to check on his brother's house. 

"It took more than an hour and a half," he said.

After the barricades were cleared, the same journey took Najed 10 minutes.

"Things were much easier and I was able to come by car," he said, loading some household effects into his small pick-up.

Najed's enthusiasm was shared by furniture store owner Zakariya, 42.

 

"Thank God, all the roads are now linked together. Aleppo is one again," he said.

US consumer confidence at highest since 2001

By - Dec 27,2016 - Last updated at Dec 27,2016

A shopper returns to his car at a mall in King of Prussia, Philadelphia, in this photo taken on December 8 (AP photo)

WASHINGTON — US consumer confidence posted sharp gains in December, hitting its highest level in 15 years, according to survey data released on Tuesday.

The Conference Board said its consumer confidence index jumped 4.3 points for the month to 113.7, easily surpassing an analyst forecast and extending gains made in November to reach the highest point since August 2001.

The monthly jump was solely due to an increase in survey respondents' expectations for business, income and employment in the coming six months, the board said in a statement.

Lynn Franco, director of economic indicators, said the Expectations Index also hit a 13-year high at 105.5, with post-election optimism most pronounced among older consumers.

"Consumers' assessment of current conditions, which declined, still suggests that economic growth continued through the final months of 2016," Franco said in the statement. 

The share of consumers saying business conditions were good fell 0.5 points to 29.7 per cent, but those saying things were bad rose by a greater degree, 2.1 points to 17.3 per cent.

Views on the current jobs situation were more stable: the share of people saying jobs were "plentiful" fell 0.9 points to 26.9 per cent, while those who said jobs were hard to get rose 1.3 points to 22.5 per cent.

The short-term outlook was much rosier. Expectations for business conditions jumped 7.2 points to 23.6 per cent and those foreseeing more jobs moved up 5.9 points to 21 per cent.

 

"Looking ahead to 2017, consumers' continued optimism will depend on whether or not their expectations are realised," Franco said.

QAIA receives over 488,000 passengers in November

By - Dec 27,2016 - Last updated at Dec 27,2016

AMMAN — Airport International Group (AIG), the Jordanian company responsible for the rehabilitation, expansion and operation of Queen Alia International Airport (QAIA) said QAIA welcomed 488,215 passengers during November, registering a 9.1 per cent rise compared to the figure recorded in the same month last year. 

The airport also registered 5,278 aircraft movements (ACM) compared to 5,173 in 2015, indicating a 2 per cent year-on-year rise, according to an AIG statement. 

Cargo figures dropped 5.6 per cent as QAIA handled 8,130 tonnes as opposed to 8,612 tonnes during the same month of last year, the statement added.  

The increase in airport traffic during November raised the 2016 year-to-date (YTD) passengers to 6,871,408. 

Additionally, YTD ACM increased by 2.9 per cent to settle at 67,831 ACM, while YTD cargo traffic figures went up 1.5 per cent to reach 92,255 tons. 

“We’re excited about the growth we witnessed in November, and we’re looking forward to closing the year with even higher numbers than last year. 2016 has been great for QAIA, filled with achievements across the board, and we look forward to adding one final triumph to its record during the final month of the year,” AIG CEO, Kjeld Binger said.

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