Central Pressure - Atlas Market Brief June 20, 2002

What started out as a dynamic week took a downward turn on Tuesday as selling pressure caused most stocks to slip. More than 14.7 million shares changed hands in deals worth JD24.6 million. Despite such healthy activity, both the AMI and ASMI barely levitated with increases of 0.1% and 1.2%, respectively.

The initial excitement at the ASE was set off by the Central Bank of Jordan (CBJ), when it sent out a reminder in this month's circular, which instructed commercial banks to reduce their ownership in non-financial firms and affiliated companies. Banks have up to August 2005 to make sure that their share ownership in any company should not exceed 10% of that company's capital. Moreover, commercials banks' total investments in such firms should not exceed 50% of the banks' capital. Needless to say, this will create downward pressure on prices over the coming months.

The Arab Bank (ARBK) saw the largest block deal in the exchange's history. The JD105 million transaction was an internal transfer between existing shareholders. ARBK closed at 195.5, a 2% increase from last week's level.

A fairly quiet stock, the Philadelphia Investment Bank (PHIB) experienced a good deal of activity this week as more than 0.5 million shares changed hands. PHIB gained 13% to close at JD0.77.

The Jordan Petroleum Refinery (JOPT) managed to break through the JD18 limit on Tuesday. The stock was not able to sustain itself though and dropped back to JD17.75.

Both Jordan Steel (JOST) and International Tobacco & Cigarette (ITCC) were among the more active stocks for the week. JOST shed 5% to level off at JD2.09, while ITCC rose 7% to JD4.18.

Ekbal for Printing and Packaging (EKPC) gained some investors' attention as more than 0.7 million of its shares changed hands. The stock settled at JD1.54.