M&A Atlas ASE Market Brief Sep 05, 2002

It was a week of mergers and acquisitions at the Amman Stock Exchange (ASE), which helped improve volumes, propelling some less active stocks to new heights. Despite that, renewed tension regarding the situation in Iraq did not allow for an overall market boom. Consequently, the AMI barely inched up 1% while the ASMI retracted by 0.3%.

Banks were the center of attention for the second week in a row as the Philadelphia Bank (PHIB) announced its intention to raise paid-up capital to JD35 million. PHIB, who only last week saw Ole Petroleum purchase a 10% stake in the company, said it plans to invite another strategic partner to benefit from the capital increase. The stock climbed 8% to JD1.05 as more than 2.1 million of its shares changed hands.

The Middle East Bank (MEIB), who is said to also be in line for a capital increase, experienced heavy trading. Nevertheless, MEIB shed 3% to close at JD0.59. Conversely, the Jordan Gulf Bank (JOGB) rose 5% to JD0.62 with 0.37 million shares changing hands. The Arab Bank (ARBK) also saw a climb, be it only 2%.

In contrast, the pharmaceutical sector witnessed a union as the Arab Pharmaceutical Manufacturing Co. (APHA) decided to amalgamate with Al Razi Pharmaceutical Industries (RAZI). The latter's shares where halted from trading on Wednesday pending completion of the merger. RAZI rose by 8% to JD0.28, while APHA settled at JD3.80.

On the privatization front, Jordan Phosphate Mines (JOPH) fell 9% to JD1.69, as the government announced that it had granted Potash Corporation of Saskatchewan (PCS) three months to reply to its counter proposal. PCS is also a contender for the government's stake in Arab Potash (APOT).