Rhetoric Remedies - Atlas ASE Market Brief Dec 06, 2001

Demand mounted at the start of this week's session as the United States toned down its rhetoric towards Iraq, Jordan's primary trading partner. As a growing number of countries cautioned against targeting Iraq, investors picked through the good offers that were left on the table last week and pushed prices upwards. Later on, as the Israeli military escalated its aggression on the Palestinians, some investors chose to stay on the sidelines fearing a downturn. But as trading resumed on Tuesday, the first session after the attacks, the market proved once more that - after just over 14 months - the violence in neighboring Palestine has already been discounted into the prices. Liquidity was modest, as only over JD12 million worth of shares traded.

As the Arab Bank (ARBK) made modest gains at the start of the week, some institutional selling put its price under pressure once more, but it still managed to close relatively unchanged at JD213.5. The Export and Finance Bank (EXFB) and the Bank of Jordan (BOJX) were also a slightly unstable amidst their increased activity.

Meanwhile, as some fund managers evaluate their year-end positions, Cairo Amman Bank (CABK) shot up by approximately 21% to JD2.43 - placing it among the week's highest gainers. Jordan Petroleum Refinery (JOPT) made some unusual gains spurred by strong demand from a number of local investors. The relatively stable stock gained some 9% and closed at just under JD13.

Speculative favorites such as Jordan Steel (JOST), National Aluminum (NATA), and International Tobacco and Cigarettes (ITCC) all fluctuated between positive and negative territory before ending the week relatively unchanged. Generally speaking, the market can be characterized as mildly volatile with a number of deals worth noting.