A Tsunami of Liquidity

The Amman Stock Exchange (ASE)'s investors' bullish sentiment persisted throughout the week despite the uncertainties that were gradually mounting over the situation in Iraq. Nevertheless, the Buffets of the ASE did not hesitate for a minute as they pushed the trading value to JD2 million in the first half hour of today's session. Advancers outnumbered decliners by a striking 81 to 11 with most of the action taking place on the industrial front. Approximately 15.5 million shares, worth JD27.1 million, changed hands during the week as the AMI increased by 6.81%, while the ASMI climbed by 7.92%.

The banking sector rose 7.21%, mainly due to the Arab Bank (ARBK)'s 7.16% climb to JD 194.50. The Housing Bank for Trade & Finance (THBK) followed suit as healthy trading helped it advance 7.17%. Beit El-Mal for Saving & Investment (BAMB) was the biggest gainer of the week as it hiked 45.08% to JD 1.77. The Industrial Development Bank (INDV) had a busy week as well, with total shares traded reaching JD 1.8 million as the stock ended the week at JD 1.22.

Jordanian Electric Power (JOEP) was the busiest stock in the services sector, followed by Zarqa Educational & Investment Co. (ZEIC), which rose 13.73% to close at JD 2.90. Unified for Organizing Land Transport (UNIF) didn't miss the party as it climbed 21.21% to JD 0.80.

The industrial sector was very vigorous during the week with most of the action concentrating on Dar Al Dawa (DADI), Jordan Steel (JOST) and International Tobacco (ITCC). Jordan Cement (JOCM) managed to advance 6.14% to JD 3.63. Arab Potash (APOT) experienced a similar increase of 6.8% as it ended the week at JD 3.77.

It's worth mentioning that EPS growth for 2002 for companies included in the AMI and ASMI was -3% and +2.5%, respectively. The decline in the AMI's EPS growth is mainly due to the decline in Arab Bank's EPS. If the Arab Bank were removed, the AMI would have grown by 5%.