Sustainable Shivers - Atlas Market Brief Jan 30, 2002

For the second week in a row, the market continued its downward momentum and incurred observable losses. Throughout the week, prices retracted to levels similar to those recorded at the end of last year. Because of the current situation in Palestine, demand toned down as many cautious traders stayed on the sidelines. This pushed a number of panicky investors to sell some of their holdings at losses. Although some bloc trades were executed on Arab Pharmaceutical Industries (APHA), Bank of Jordan (BOJX), and Jordan Investment and Finance Bank (JIFB), overall liquidity levels remained intact with almost JD8.5 million shares trading in deals worth over JD18.4 million.

So far, twin pharmaceuticals, Dar Al Dawa for Development & Investment (DADI) and Arab Pharmaceutical Industries (APHA) remained intact and managed to hold onto most of their previous gains. Advanced Pharmaceuticals Industries (ADPH) and Middle East Pharmaceuticals, on the other hand, were among the week's worst performers, losing some 14% and 7%, respectively.

Times were mixed for two of the biggest state owned companies. Although Arab Potash (APOT) maintained its JD3.59 price, Jordan Phosphate Mines (JOPH) came under pressure as demand on its stock virtually disappeared. With both companies geared up for privatization, their stocks have become favorites among traders hoping to capitalize on improved prospects.

Meanwhile, the government has announced that it plans to sell its remaining 14% stake in Jordan Cement Factories (JOCM). Although the details of the deal remained officially undisclosed, local papers reported that the Palestinian National Authority (PNA) could be a possible acquirer. Soon after the privatization of JOCM, the Palestine Commercial Services Company (PCSC) - which represented the PNA - was negotiating to purchase a stake in the company. The PCSC, which is the sole distributor of Jordanian cement in the West Bank and Gaza Strip, made an investment recently of up to $100 million dollars in Orascom Telecom's Algerian GSM operation.

The much-awaited preliminary results for the Arab Bank (ARBK) have finally become public. The biggest company listed on the exchange posted preliminary net earnings of JD139 million for 2001, up by around 7% from the previous year. The net interest margin year-on-year was relatively flat with the growth this year coming primarily from non-interest income. The bank's various entities and branches in the Arab world performed notably better than their international ones. Jordan Kuwait Bank (JOKB) also posted its most recent earnings showing a 43% increase in its bottom line to JD7.6 million. Meanwhile, National Steel (NAST), which in recent times has come unexpectedly into the spotlight, also announced its financial figures. Although the company suffered a 30% drop in its sales to JD6.5 million, it managed to completely close off its retained losses and proposed a JD0.15 cash dividend, the first in several years.