January Jiggles - Atlas Market Brief 17 Jan 2002

The details of the 2002 budget were finally revealed only one day before a new Cabinet of Ministers was sworn in. The budget, which was approved by a Royal Decree, is expected to top JD2.4 billion with a deficit of JD237 million, or 6.5% of GDP excluding foreign aid. According to the figures published by the Ministry of Finance, allocations for capital expenditures increased by some 38% to reach JD500 million, while current expenditures are expected to rise by a mere 7%.

Traders experienced mixed sessions throughout the week. At the start of the week, the market continued its upward trend on the heels of earlier gains. Later on in the week, individual and institutional profit taking pushed prices down slightly, before bouncing back up again to close at slightly higher levels. At the same time, liquidity remained solid with more than 16 million shares trading in deals valued at JD22.5 million. Worth noting is the sizeable amount of bloc trade executions on stocks such as the Arab Bank (ARBK), Dar Al Dawa (DADI), Middle East Complex (MECE), and Middle East Investment Bank (MEIB).

For a change, National Steel (NAST) the smaller steel producer listed on the exchange stole the spotlight from Jordan Steel (JOST). On Monday, pent up demand from traders bid the stock above its maximum allowable limit and eventually halted its trading. As the stock resumed trading, it approached the JD2 level and closed 12% higher at JD1.90.

Strong local demand for pharmaceutical pair Dar Al Dawa (DADI) and Arab Pharmaceuticals (APHA) pushed the stocks' prices upwards throughout the entire week as they gained 8% and 7%, respectively. Meanwhile, banks in general were a bit quiet as the Arab Bank (ARBK), Export and Finance Bank (EXFB), and Jordan Kuwait Bank (JOKB) all closed relatively unchanged.

Jordan Phosphate Mines (JOPH), which is all geared up for privatization, experienced a bumpy week. Despite a local institutional investor liquidating some of its holdings in the company, the stock remained solid and closed only 2% lower at JD1.84.

Finally, a number of changes in our recommendations on companies have been made recently. Please review the Market Scan for further details.