Beating Around Bush - Atlas ASE Market Brief Mar 13, 2003

Trading volumes at the Amman Stock Exchange (ASE) picked up as investors began to get swayed both by good company results, and by news that Britain is prolonging the issue of attacking Iraq. All in all, more than 5.7 million shares, worth approximately JD7.8 million, traded. The AMI retracted by 1% to 120.31, leaving the ASMI to fall further to 148.55.

The banking sector saw some of its smaller institutions pull some weight during the week. Beit Al Mal Saving and Investment for Housing (BAMB) hiked 18% to JD0.93 as investors smelled the sweet aroma of expected dividends. The Philadelphia Investment Bank (PHIB) and the Jordan Gulf Bank (JOGB) finally saw some activity as they both fell by more than 35% from their previous levels to end the week at JD0.18 and JD0.16, respectively.

Jordan Steel (JOST) climbed 1% to JD1.96, with more than 0.5 million of its shares changing hands, as the company posted a 36% increase in net profits for the fiscal year 2002. Conversely, Arab Potash (APOT) shed 6%, closing at JD3.51, as its 2002 net income was slashed in half to JD13.55 million.

Meanwhile, the Jordan Petroleum Refinery (JOPT) witnessed a bloc deal involving 60,000 of its shares today. The stock declined by 1%, however, to JD12.50.

In a lecture at the Association of Banks in Jordan, the Governor of the Central Bank of Jordan (CBJ), Dr. Umayya Touqan, described interest rates imposed by local banks as 'normal'. He intimated that high rates are needed to maintain margins used to cover administrative expenses and bad debt provisions. He also mentioned that this is the main reason for inviting foreign banks, mainly Kuwaiti and Lebanese ones to operate in Jordan, all in order to bring down the cost of banking services.