Delivery vs Payment - Atlas Market Brief Oct 10, 2002

The Amman Stock Exchange (ASE) faced bouts of selling pressure this week as a number of stocks broke through lower bands, even if momentarily. However trading activity was kept at a bare minimum, with a few cross deals to add. Consequently, market indicators hardly moved with the AMI retracting 0.55% to 125.87, while the ASMI inched up 0.01%.

The Arab Bank (ARBK) held on tight to its JD190 position, while the Jordan Kuwait Bank (JOKB) experienced some strain but managed to close at JD3.85, up 4%.

Pharmaceutical companies, which in theory, should withstand such stress, wobbled at their low points, threatening to fall through. Dar Al Dawa (DADI) closed at JD4.67 with approximately 0.13 million shares changing hands, while Arab Pharmaceutical Manufacturing (APHA) retracted by 1% to JD3.63.

International Tobacco and Cigarette (ITCC) and Jordan Steel (JOST) continued with their downward trend as investors continued to fret about the pending US strike on Iraq. Both ITCC and JOST fell by 1% to JD3.75 and JD1.80, respectively.

Jordan's oldest brewery, General Investments (GENI) saw some activity, rising 10% to JD1.65 as some investors positioned themselves in anticipation of Heineken continuing with its very recent shopping spree in emerging markets including Egypt and Central America.

Meanwhile, the Security Depository Commission (SDC) began using on October 6th, 2002, the EFA (Equator) Settlement and Clearing system to settle all transactions for Jordan's most actively traded companies. The 13 companies, whose shareholder information has been uploaded, represent over 60% of the ASE's capitalisation. The EFA system is an internationally recognised standard for electronic clearing and settlement, which enables the free flow of capital while providing efficiency, accountability, and control risk. It is expected that by the end of 2002/beginning 2003 all companies listed on the exchange will use the system for settlement. This is another breakthrough for the SDC as it strives to become fully DVP (Delivery versus Payment) compliant with international standards.