A Bit of Everything - Atlas ASE Market Scan Nov 22, 2001

During the first week of the holy month of Ramadan, the ASE witnessed a slow session as well-performing stocks in general came under pressure triggered by a wave of profit taking. Towards the end of the week, however, prices rebounded as many local investors rushed back into the market looking for bargains. The AMI closed only slightly lower at 112.01 while there was a slight run down on liquidity with total value traded at JD14.5 million. Worth noting is the technical problem experienced at the bourse on Wednesday which delayed the day's session by two hours.

The Arab Bank (ARBK), the biggest stock on the exchange in terms of market capitalization, declined by around JD4 as foreign and local investors continued to close out some of their positions in the stock after its earlier highs. Other banks that also came under pressure were the Export and Finance Bank (EXFB) and Bank of Jordan (BOJX), both of which closed 4% lower. Jordan Kuwait Bank (JOKB) made similar losses albeit on very poor levels of liquidity.

On the regulatory front, the Central Bank of Jordan (CBJ) has toughened its stance on reforming the kingdom's banks. According to a report in a leading daily paper, the CBJ is considering doubling the minimum capital requirements for banks to JD40 million. This move, officials hope, will finally initiate mergers and acquisitions between second tier banks operating in the country. The paper also reported that only three local banks currently meet the anticipated requirements, Arab Bank, Housing Bank (THBK), and Jordan National Bank (JONB).

Pent up demand on the Jordan Phosphate Mines (JOPH) pushed it up by 16% placing it among the biggest winners for the week. Hopeful investors increased their positions in the stock on the promise that JOPH might break-even this year after two successive years of losses. Furthermore, a recently announced move by the government to rehabilitate the Aqaba railway to accommodate JOPH's increased sales also set the stock on a rising path. Another mining company, Arab Potash (APOT), was also among the best performers this week on a much-awaited privatization initiative set out by the government - it gained 9%.

Jordan Steel (JOST), the country's largest steel producer, surprised the market this week as its price remained strong. Despite some selling pressure by investors, there seemed to be a strong line of support for the stock at the JD1.68 levels, which ultimately pushed its price back to the JD1.70's range. Jordan Press Foundation (PRES), on the other hand, continued its ascent on the heals of last week's modest gains. Backed by increased expectations for the company, PRES managed to achieve a 12% hike over a course of just two weeks.