Cashing Out - Atlas Market Brief Oct 17, 2002

A little volume and a lot of anxiety sent the Amman Stock Exchange (ASE) reeling downhill as the usual scuffle regarding possible attacks on Iraq was again the centre of attention. Needless to say, this caused many stocks to dip beyond their recent lows, consequently dragging the AMI and ASMI indices down 3%. In addition to these predominant factors, some individual investors and brokers where cashing out of their positions in order to ready themselves for the Jordan Telecommunication Co. (JTC)'s IPO.

The Arab Bank (ARBK) plunged to JD177, a price it had not seen for a while, but managed to pick up towards the end of the week, closing at JD185. The Industrial Development Bank (INDV) clambered on the scene again, with 0.16 million shares changing hands. INDV retracted 5% to JD0.89.

Pharmaceutical duo Dar Al Dawa (DADI) and Arab Pharmaceutical Manufacturing (APHA) followed ARBK's example and broke through their lows. However, they both ended the week down only 1%.

The Jordan Phosphate Mines (JOPH) fell 8% this week to JD1.41, as news that talks between the Jordanian government and Potash Corporation of Saskatchewan (PCS) regarding JOPH's pending privatisation had fallen through. The government has decided instead to appoint two consultants to evaluate JOPH's stock and to look for other possible strategic investors. Naturally, Arab Potash (APOT) followed suit and dropped 6% to JD3.76.

Otherwise, companies continued to stagger, especially those with direct exports to Iraq. International Tobacco (ITCC) and Jordan Steel (JOST) shed 7% and 6%, respectively. ITCC closed at JD3.5 with 0.27 million shares traded, while JOST ended the week at JD1.7 with around 0.44 million shares changing hands.