Breaking the Ice - Atlas Market Brief 14 March 2002

Sentiment improved at the ASE this week as prices in general rose. Worth noting, however, were the thin volumes especially on Wednesday, when the value traded barely exceeded JD1 million. Over the week, total value traded reached JD7.8 million with close to 4 million shares changing hands. Declining issues outnumbered advancing ones by more than two to one.

On Thursday, investors cheered as the Arab Bank (ARBK), the biggest company listed on the exchange, surpassed the JD200 mark for the first time in more than two weeks. Throughout the week, strong demand on the stock sent its price upwards and eventually closed at JD202. ARBK's general assembly is due at the end of this month. With the exception of Jordan Investment & Finance Bank (JIFB), which was exposed to the recent banking crisis and fell some 15% to JD0.97, most banks closed relatively unchanged.

Jordan Phosphate Mines (JOPH) also made a comeback this week. Throughout the week, JOPH made small advances before gaining the maximum allowable daily limit on both Wednesday and Thursday to end at JD1.61, up 14% for the week. Activity on the stock picked up as speculation mounted over its privatization prospects. Arab Potash (APOT), also geared up for sale, released its preliminary financials earlier this week. Although net earnings for the company fell by only JD1 million to JD28.2 million, APOT did not propose any cash dividends.

Jordanian Electric Power (JOEP), which made considerable advances throughout the recent downturn, finally cooled off this week and fell to JD2.43. Jordan Steel (JOST) and International Tobacco and Cigarettes (ITCC), on the other hand, finished the week unchanged. We expect the market to exhibit volatility over the coming trading sessions as investors eagerly await the US military stance vis-à-vis Iraq.