Bounce Up...and Down - Atlas Market Brief 01 May 2002

Overall conditions at the market seemed to improve throughout the four-day week, shortened by the Labor Day holiday on Thursday. Although the regional political situation remained bumpy, prices rose slightly as activity picked up, with the AMI and ASMI closing 1.21 points and 2.04 points higher, respectively.

Dar Al Dawa for Development and Investment (DADI) led the upbeat mood, advancing throughout the entire week to close 12.6% higher at JD4.11. This came after weeks of turbulence when a local investor closed his positions in the company's stock. Arab Pharmaceuticals Manufacturing (APHA), on the other hand, closed unchanged.

Banks had a mixed session amidst the improved activity. The Arab Bank (ARBK), Housing Bank (THBK), and Jordan Kuwait Bank (JOKB) closed the week with minimum gains, while Jordan National Bank (JONB) closed almost 6% higher.

Jordanian Electric Power (JOEP) made an impressive comeback this session. After the company's stock fell to JD2.28 in earlier trading sessions, it sprung back to JD2.41. Jordan Steel (JOST) and National Steel (NAST), the only steel companies listed on the exchange, also bounced back by to their opening levels.

Jordan Phosphate Mines (JOPH) improved slightly as a local paper reported that the company had averted a planned strike by its workers. According to the paper, JOPH's management agreed to an annual pay increase of JD120 per worker in addition to other benefits. Investors welcomed the news as JOPH ended the week 2% higher.

On a different note, credit rating agency Standard & Poor changed its rating of Jordan's foreign currency outlook from positive to stable. According to Reuters news agency, the revision comes amidst a deteriorating geopolitical environment that "negatively affects investor and consumer confidence, reduces the country's ability to attract foreign direct investment, and complicates the process of fiscal consolidation and economic reforms."