Dip - Atlas ASE Market Brief August 15, 2002

Market watchers, who waited anxiously for the week to begin, were gravely disappointed as the Amman Stock Exchange (ASE) plunged even further because of the lack of clarity regarding the region's political future. Trading volumes improved, however, mainly due to a few companies that dominated the scene. More than 9.6 million shares changed hands in deals worth JD12.6 million as decliners outnumbered advancers almost five to one.

The Industrial Development Bank (INDV) was the star of the week as investors, who were still impressed by the significant results the new management were able to achieve, showed their appreciation. Around 3.6 million of INDV's shares traded allowing the stock to reach a high of JD1.07 before settling at JD0.99, up 1% from last week.

Most investors found solace in the banking sector as most of the stocks held on tightly to their positions. Arab Bank (ARBK) and Jordan Kuwait Bank (JOKB) did not budge much, closing at JD191.25 and JD3.69, respectively. The Housing Bank (THBK) dipped by 2% with low trading volumes that did not warrant much attention.

Mining stocks saw conflicting events which sent their prices flying in opposite directions. Jordan Phosphate Mines (JOPH), who appeared to have found a strategic suitor in the on-going privatization, has been very quiet falling 5% to JD1.84. Arab Potash (APOT), on the other hand, climbed 5% to JD 4.38 as Sunday marked the deadline for submitting bids to purchase half of the government's stake in the company. All in all twelve companies presented their offers but only a handful can be considered serious contenders.

Jordan Steel (JOST) fell 8% to JD1.85 after the government proposed to amend regulations governing the import of steel bars that are used for local projects. Pharmaceuticals also declined following the general mood of the market.