Baby Food - Atlas ASE Market Brief Dec 19, 2002

High investor confidence led the Amman Stock Exchange (ASE) at the beginning of the week as daily volumes overtook the JD3 million level. However, as the spotlight was reverted once again towards the political situation in Iraq, profit taking ensued, creating plenty of selling pressure. Consequently, both the AMI and ASMI retracted by around 1%.

The banking sector was relatively inactive, with both the Arab Bank (ARBK) and the Housing Bank for Trade and Finance (THBK) slipping 2% to JD187 and JD2.41, respectively. The Bank of Jordan (BOJX) followed suite, ending the week at JD2.12, but it was dragged down by affiliate International Tobacco and Cigarette (ITCC), which tumbled 4% to JD3.90.

Jordan Telecommunications Co. (JTEL) managed to budge, even if downwards, to JD2.30, while Al Zarqa Educational and Investment (ZEIC) climbed 2% to JD2.28.

The pharmaceutical sector was the star of the week as investors turned their attention to some of the ASE's sure-bets. Dar Al Dawa (DADI) climbed all the way to JD5.51, and witnessed several bloc deals, before it closed at JD5.34. Similarly, Arab Pharmaceutical Manufacturing (APHA) rose by 4% to JD4.01 but not before first hitting its weekly high of JD4.24.

DADI's subsidiary, Nutri Dar (NDAR), held an extraordinary general assembly today at the company's headquarters in Amman. During the meeting, shareholders approved the board's decision to raise capital to JD6.5 million through a private placement. DADI and NDAR's new strategic partner, Spain's Ordesa, will acquire the additional 2.5 million shares. NDAR recently signed a ten-year contract with Ordesa, which now owns 25% of the company. The agreement will see the transfer of technology and know-how that will allow NDAR to produce its own raw materials among other things. NDAR ended the week at JD1.19, down 3%.