Weathering Regional Turbulance

The Amman Stock Exchange (ASE) got off to a flying start as the ASE Index reached 196.59. However, the profit-taking wave which ensued managed to push prices down. Nevertheless, it is expected that before the month's out, the market will rise as companies review their stock portfolios prior to publishing their semi-annual figures. Approximately 26.12 million shares, worth JD35.40 million, changed hands during the week with the AMI declining 1.08%, while the ASMI lost 0.41%.

The banking sector index inched down 0.75% as the Arab Bank (ARBK) decreased 1.71% to JD201.50, while the Jordan Islamic Bank for Finance & Investment (JOIB) reached JD1.19, gaining 3.48% as investors speculate that the bank will undertake a revaluation of its assets. The Jordan National Bank (JONB) and the Jordan Investment & Finance Bank (JIFB) both advanced by more than 6% to JD1.08 and JD1.13, respectively. The two banks regained investors interest after one of the prime suspects in the alleged multimillion-dinar bank fraud case, was referred to the State Security Court on Monday to stand trial on several charges.

The services sector had a modest 0.02% increase with healthy trading volumes. Jordanian Electric Power (JOEP) retracted slightly by 0.45% to JD2.19, while Unified for Organizing Land Transport (UNIF) advanced 6.14% to JD1.14. Jordan Investment Trust ((JOIT) was the most active stock, climbing 6.72% to JD1.27 as investors expect the company to post good mid-year results.

The industrial sector retraced by 1.38% due to the decline in price of large cap mining stocks, such as Arab Potash (APOT) and Jordan Phosphate Mines (JOPH), as they fell 3.18% and 1.83% to JD4.26 and JD2.14, respectively. Arab Pharmaceutical Manufacturing (APHA) closed at JD4.00, an increase of 2.33%, while Dar Al Dawa (DADI) managed a slight rise of 0.36% to JD8.38. Jordan Steel (JOST) dropped 2.62% to JD2.23, while Jordan Petroleum Refinery (JOPT) lost the returns made last week and fell by 12.06% to JD3.28. Middle East Complex for Eng. Electronics & Heavy Ind. (MECE) ranked second in terms of volume as it gained 1.09% to reach JD0.93. The company managed to enter the Iraqi market putting pressure on its inventory levels forcing the company to buy-back stock from the market at a 7% premium in order to satisfy Iraqi market demand. International Tobacco & Cigarettes (ITCC) advanced by 0.28% to JD3.59 despite announcing that the company recently signed an agreement with the Eastern Egyptian Company for Manufacturing Tobacco, which will grant ITCC entry into the lucrative Egyptian market alongside with Philip Morris and British American Tobacco.

Please note that the Parliamentary elections will take place this Tuesday, June 17th. Consequently, all public and private businesses will be closed.