November Nudges - Atlas ASE Market Brief 29 Nov 2001

The latest political developments swayed investors towards adopting a precautionary attitude as the United States hinted that Iraq, Jordan's biggest trade partner, might be an upcoming target in their military operations. The market shrugged off the earlier gains as a growing number of investors stayed on the sidelines and adopted a 'wait and see' approach. This, in addition to some profit taking, pushed the AMI 1% lower, or about 0.65 points with an average daily value traded of around JD2.7 million. Decliners outnumbered advancers by approximately 11 to 4.

Banks had a mixed session this week. Although the Arab Bank (ARBK) started on a positive note, local and foreign selling on the stock put its price under pressure again pushing it JD1 lower for the week. Demand for Export and Finance Bank (EXFB), on the other hand, cooled off after the earlier hype on its stock - it closed at JD1.74. At the same time, Jordan Kuwait Bank (JOKB) continued its rise, but this week increased demand for the bank caused it to close at the maximum allowable limit for two days in a row. It rose by 13% closing at JD3.5, making it the week's biggest winner.

Pharmaceuticals managed to hold on to the gains they achieved over previous weeks amidst the general cooling off sentiment in the market. Jordan Press Foundation (PRES), which publishes the kingdom's leading newspaper, lost some of its earlier gains and closed around JD0.29 lower from its week-high as investors locked in their profits. Nevertheless, it still achieved a 5% gain for the week. Jordan Steel (JOST) also lost its earlier gains and sunk to JD1.65 where it was met by strong support levels before it pulled back up to JD1.67.

Some notable activity has been taking place around mining stocks, particularly Jordan Phosphate Mines (JOPH) and Arab Potash (APOT). As part of the privatization initiative and in line with the Economic Consultative Council's recommendation for the government to divest its stakes in the sector, the privatization process is scheduled to be underway during 2002. Both companies have already begun receiving solicitations by suitors with the expectation that a conditional, non-binding offer for JOPH should be received as early as the first week of December.