High Note - Atlas Market Brief 13 Dec 2001

Expectedly, prices in general soared this week at the ASE as the renowned year end effect fired up. This time of year, local institutional investors artificially raise prices of companies in which they hold stocks to "window dress" their financials. With high levels of liquidity, the number of advancers outnumbered decliners by around five to three. Despite the general improvement in prices, the AMI lost almost two points due to losses in two of the market's biggest stocks, the Arab Bank (ARBK) and the Housing Bank (THBK). The ASE's performance to date has beaten that of all other emerging markets, including Russia and South Korea.

The star of the session was Jordan Steel (JOST), which reached as high as JD1.92 before closing at JD1.90. Boosted by JOST's performance, National Steel (NAST), the only other steel producer listed on the exchange, gained some 11%. Towards the end of the week, demand mounted for Jordanian Electric Power (JOEP) - its price pushed up as high as JD2.05 before closing at JD2.03.

Banks in general closed higher with the exception of ARBK, which came under fire this week. Continuing selling pressure pushed its price downwards to JD204, where it was met by strong demand by investors hoping to capitalize on the lower price.

Pharmaceuticals, on the other hand, remained relatively stable this week while other blue chips such as International Tobacco and Cigarettes (ITCC), Jordan Phosphate Mines (JOPH), and Arab Potash (APOT) advanced with the overall market movement.