52-Week Highs..and Lows!

Liquidity at the ASE dried up as investors took a precautionary attitude ahead of mid-year result announcements, due to be completed (according to law only!!) by the end of July. Around 7 million shares changed hands in deals worth around JD6.1 million. The AMI slipped throughout the week by almost 1%, while the number of advancers was almost in parity with that of decliners.

Dar Al Dawa for Investment & Development (DADI) and the Arab Pharmaceutical Manufacturing (APHA) both fell after reaching new 52-week highs earlier this month. DADI fell by almost 2% while and APHA made an insignificant gain and ended the week at JD2.69. The pharmaceutical sector, in general, is expected to make improved earnings on the hopes of new contracts with Iraq, the kingdom's favorite trade partner.

Jordan Kuwait Bank (JOKB) and Export and Finance Bank (EXFB) both reached new 52-week highs (adjusted for their bonus issues) this week. JOKB peaked at JD2.14, while EXFB reached JD1.13.

Jordan Cement Factories (JOCM), in which French cement giant LaFarge has a 43% stake, hit a 52-week low on Wednesday, as its price nose-dived to JD2.70. JOCM is facing difficult times with its concession agreement scheduled to expire this December in addition to a running early retirement program.

On the QIZ front, HM King Abdullah II officially inaugurated Al-Dhulayl Industrial Park. Located on the suburbs of Amman, the park has employed around 2,000 laborers in seven production plants and has successfully attracted US$60 million in foreign direct investments. The QIZ concept is production scheme, whereby producers operating within the designated areas, and meeting certain requirements, can secure their outputs to the US duty- and quota-free.