Blissful Blizzards - Atlas Market Brief 11 Jan 2002

Although the kingdom remained under the effect of the snowstorms throughout the week, the market stayed alight. Hopes for cozy profits attracted more traders to the market on the heels of last week's gains. The market advanced throughout most of the week before reversing towards the end of the session, with the AMI changing slightly. More than 21 million shares were traded in deals worth more than JD32 million. Of the 64 advancing issues, 21 gained more than 10%, while only 20 companies ended the week with losses.

Prices for a number of companies surged as expectations for their performance heightened, the most prominent of which was Jordan Steel (JOST). It reached an all time high of JD2.42 before cooling down to JD2.36. Strong demand for National Steel (NAST) and National Aluminum (NATA) also pushed their prices sky high - both gained 20%. Similarly, pharmaceutical companies Advanced Pharmaceuticals (ADPH), Dar Al Dawa (DADI), and Middle East Pharmaceuticals (MPHA) all made impressive advances and gained 8%, 7%, and 12%, respectively.

Banks, on the other hand, did not enjoy the same good fortunes of most industrial companies. Foreign selling resumed on the Arab Bank (ARBK), eventually pushing it down from its week high of JD212 to as low as JD200, where it was supported by strong demand. Bank of Jordan (BOJX) remained vibrant and volatile with speculative trade on its stock kicking in. Export and Finance Bank (EXFB), on the other hand, remained relatively stable as it closed at around JD1.88.

On the macroeconomic level, the government has finally revealed its plans for the 2002 budget. According to a report in a local paper, the proposed budget is expected to exceed JD2.4 billion, with a deficit of around JD430 million excluding foreign aid. The proposed budget, in its final form, is scheduled to be presented to the cabinet of ministers next week before being ratified by parliament.