Boosting Banks

In what started out as a regular week on the ASE, unexpectedly developed into one of the most exciting sessions for the year. With the exception of banks, pharmaceuticals, and a few selected stocks, volumes were generally mild and prices stable. The AMI closed almost 5% higher at 104.80, as around 7.4 million shares changed hands in deals worth more than JD15 million.

As trading commenced on a healthier mood from last week, most stocks made mild advances as volumes flushed in early sessions. By mid week, the modest gains triggered a wave of buy orders on the Arab Bank (ARBK) especially from foreign investors and pushed its price beyond the JD200 mark for the first time in almost two years before closing at JD201.5. Other winners among banks were the Export and Finance Bank (EXFB) and Bank of Jordan (BOJX), both of which closed around 8% higher. Cairo Amman Bank (CABK) made similar advances, albeit at very thin trading levels, and closed at JD1.92.

The improvement also touched up on some pharmaceuticals. Dar Al Dawa for Development and Investment (DADI) and Arab Pharmaceutical Manufacturing (APHA) made relatively smaller gains of 5% and 6%, respectively. Other favorites such as International Tobacco and Cigarettes (ITCC) and Jordan Steel (JOST) remained fairly active and stable throughout the week.

Jordan Press and Publishing (JOPP), which publishes the country's second largest daily paper, reported its earnings for the nine-month period ending September 30th. Over the same period last year, net earnings jumped by around 105% while prospective earnings for the entire year are expected to reach around JD0.75 million, the company announced.

Despite the apparent improvement, investors were not pleased and JOPP shed some 14% of its value, as it was the week's biggest decliner.

Specialized Investment Compounds (SPIC), the only Qualifying Industrial Zone listed on the ASE, has received an US$8 million loan from World Bank Group member, the International Finance Corporation (IFC). Under the terms of the deal, the IFC will finance part of an US$18 million expansion project that should boost the zone's capacity by some 70%. SPIC, which traded only by around JD3,000, ended the week almost 4% higher at JD0.54.

The ASE is underway to establish a specialized exchange for technology, media, and telecom companies. According to a report in a local paper, the proposed exchange would come as a combined effort between selected regional stock markets and companies alike. The paper reported that out of 96 local tech companies registered at the Ministry of Trade and Industry, only 15 have shown interest by attending the first meeting that was set up to promote the idea among companies operating in the field.