Burden of Proof - Atlas ASE Market Brief Feb 06, 2002

Political news has once again overwhelmed the Amman Stock Exchange (ASE). Investors who started off the week with some enthusiasm, later panicked, allowing many stocks to tumble before they picked up their courage again, as the United Nations Security Council did not come to a conclusion on the subject of attacking Iraq. Trading volume barely surpassed the 6.2 million-share mark, mainly aided by a couple of bloc deals. Consequently, the AMI, ASMI and ASE indices all fell by more than 3%.

A major bloc deal involving 34,440 Arab Bank (ARBK) shares began Sunday's trading session, heaving many other stocks in its wake. However, as tensions mounted at the ASE, ARBK slipped 4% to JD184. The Jordan Gulf Bank (JOGB), on the other hand, was hard hit as the Central Bank of Jordan has dissolved its board of directors and appointed a committee to oversee the bank's management. JOGB fell 13% to JD0.34.

The United Arab Investors Co. (UAIC) also witnessed a bloc deal through which 0.75 million of its shares changed hands. Therefore, the stock was able to withstand market pressure, retracting by only 1% to JD1.14.

Companies with exports to Iraq have once again been affected by regional news. Investors weighed down heavily on Jordan Steel (JOST) pushing it to JD1.91 as approximately 0.35 million of its shares changed hands. Similarly, International Tobacco and Cigarette (ITCC) reached JD3.26 before it ended the week with just a 7% drop at JD3.39.

Middle East Complex for Eng. Electronics (MECE) is still drawing attention, which has allowed it to contend among blue chips. The stock had almost 1 million of its shares trade as it shed 1% to JD0.71.