Prudence - Atlas Market Brief July 25, 2002

Investors completely held back this week, as regional political issues were drudged up, making for a weary ride. Total trading volume reached 11.43 million shares, and with the exception of a couple of bloc deals, daily average value barely inched up passed the JD2.5 million mark. Decliners outnumbered advancers seven to one as both the AMI and ASMI fell 3.15% and 4.58%, respectively.

Banks got off to a good start on Sunday with two bloc deals taking place. Bank of Jordan (BOJX) lead the way with a deal involving almost 3.5 million shares, while Export and Finance Bank (EXFB), on the other hand, saw 0.15 million shares change hands. Nevertheless, banks were not immune to this week's negative sentiment as the Arab Bank (ARBK) shed 3% settling at JD200 while BOJX dropped 6% to JD2.40.

Industrial companies bore the heaviest burden, as investors speculated on future trade opportunities with Iraq. Arab Potash (APOT), which exports almost exclusively with countries such as India and China, had a close call as it reeled back all the way to JD4.16, before closing at JD4.35, emerging almost unscathed. Arab Pharmaceutical Manufacturing (APHA), on the other hand, was not so lucky, falling 6% to JD4.05. APHA has extensive dealing with Iraq.

Conversely, companies in the service sector stood firm. Both Arab International Education (AIEI) and Al-Zarqa Education (ZEIC) retracted only 1%. AIEI had 10,960 shares trade closing at JD2.38, while ZEIC saw 0.11 million shares change hands, ending the week at JD1.57.

The Jordan Petroleum Refinery (JOPT) oscillated around the JD16 mark ahead of its annual general assembly on Saturday. The company is expected to announce a 16% dividend.