Building Blocs - Atlas Market Brief 18 Apr 2002

Not much went on at the ASE this week. Although general liquidity levels seem normal, at around JD15 million worth of trades, most of the action came from a number of bloc deals executed this week. The deals could not have come at a more convenient time to cover up the thin volumes. Jordan Petroleum Refinery (JOPT), Export and Finance Bank (EXFB), Jordan French Insurance (JOFR), and United Financial Investments (UCFI) were among the contenders. As the political situation took a turn for the worse, the AMI and ASMI lost 1.5% and 1.7%, respectively.

Pharmaceutical favorite, Dar Al Dawa for Development and Investment (DADI) came under fire once again, as last week's sell-off continued. The company's stock fell by more than 14%, as a local investor closed off positions in the company. This comes ahead of the annual meeting scheduled on the 22nd of this month, when the general assembly is expected to approve a 25% cash dividend and a board reshuffle.

Jordan National Bank (JONB), one of the banks hit by the recent banking scandal, also incurred large losses. Throughout the week, JONB fell by more than 10% to close at JD1.04. Although JONB had announced a 10% cash dividend to deter any would-be sellers earlier this year, the company still suffered heavy losses for this session.

Most of the other stocks remained relatively stable as investors preferred to stay on the sidelines awaiting a breakthrough in the political crisis. The Arab Bank (ARBK), Jordan Steel (JOST), and International Tobacco & Cigarettes (ITCC) remained relatively unchanged.