Contraindications - Atlas ASE Market Brief Sep 12, 2002

Trading activity on the Amman Stock Exchange (ASE) could have been mistaken for a cardiogram chart this week as investors tensed up, relaxed, worried and finally unwound. All in all, around 8.5 million shares changed hands in deals worth JD12.9 million as decliners outnumbered advancers eight to one. The AMI closed at 127.34, down 3%, while the ASMI shed 4.84% to end the week at 151.29.

The banking sector quieted down a bit, as a few of the less active banks nabbed most of the activity. The Jordan Gulf Bank (JOGB) retracted 6% to JD0.58 ahead of its general assembly on Sunday, 22 September 2002. The bank's shareholders are expected to approve a JD7 million capital increase. Similarly, the Philadelphia Investment Bank (PHIB) dropped 4% to JD1.01 as two bloc deals involving the stock were executed late Thursday. The Arab Bank (ARBK) closed at JD192.

As fears of a US attack on Iraq resonated, several companies were faced with heavy selling pressure. International Tobacco (ITCC), a company whose major export market is Iraq, was badly hit, falling 9% to JD3.71. Naturally, the stock dragged the Bank of Jordan (BOJX) and Al Ekbal printing and packaging (EKPC) with it. BOJX declined 5% to JD2.1, while EKPC closed at JD1.41, down 3%. Jordan Steel (JOST), another exporter to the land of the Euphrates, was confronted with the same kind of stress, dropping 5% to JD1.80.

In an interesting twist, the ailing pharmaceutical sector, went into shock, as Arab Pharmaceutical Manufacturing (APHA) declared that it was still studying its proposed merger with Al Razi Pharmaceuticals (RAZI), despite the later having been prematurely halted from trading last week. According to a letter sent to the ASE, APHA's board has yet to make a decision regarding the said merger. Consequently, the stock shed 5%, closing at JD3.6.