Lift Off? - Atlas Market Brief May 09, 2002

The market started out on a high note this trading session with the first three days of the week experiencing strong gains amidst heavy trading activity. Towards the end of the week, however, as fresh regional violence resumed, investors took a more precautionary attitude. Both the AMI and ASMI closed 1.3% and 3.2% higher, respectively, as more than 5 million shares traded in deals worth more than JD10 million.

On Wednesday, Jordan National Bank (JONB), Jordan Investment & Finance Bank (JIFB), and Jordan Gulf Bank (JOGB) - all of which were exposed in the banking scandal - rose by the maximum daily limit as reports surfaced that the prime suspect of their case had finally been arrested. After the reports were denied on Thursday, JIFB and JOGB fell back again. Bank stocks, in general, have picked up steam on the back of increasing speculation that one or more gulf-based institutions are seriously considering the acquisition of Jordanian banks. Jordan National Bank (JONB) and the Housing Bank (THBK) closed around 4% higher while Bank of Jordan (BOJX) and Export & Finance Bank (EXFB) closed around 3% higher.

The pharmaceutical ride continued for yet another week albeit at a much milder pace with Dar Al Dawa for Development and Investment (DADI) and Arab Pharmaceutical Manufacturing (APHA) gaining around 3.4% and 7%, respectively. Advanced Pharmaceuticals (ADPH), on the other hand, had a bumpy ride this week, and closed at JD0.78.