Smoke Rings

Market participants readied themselves for another bout of lucrative trading but were disappointed by the sudden spell of profit taking that began on Monday. As expected, stock prices started to drop as volumes thinned causing decliners to outnumber advancers nine to one. Cautious investors decided to wait on the sidelines for some indication as to where the market is headed, as others decided to benefit from the sudden decline in order to meet their margin calls, which are due by the month's end.

The Arab Bank (ARBK) played a part in the market's wobbly behaviour as it swayed between a high of JD272.5 and a low of JD263. Nevertheless, regional buyers, particularly the Palestinian National Authority (PNA)'s investment funds, helped the stock regain ground as it ended the week at JD270.25. The troubled Jordan Gulf Bank (JOGB), an expected acquisition candidate for ARBK, witnessed heavy trading as more than 2.5 million shares changed hands. The stock could not handle the pressure and fell 14% to JD0.06.

Last month's trendsetters, real estate and Qualified Industrial Zone (QIZ) holding companies bore the brunt of this week's regression. Specialized Investment Compounds (SPIC), the pack's leader, was most hardly hit, shedding 13% to close at JD3.36. Arab East Investment (AEIV) followed suite falling 10% to JD2.38, while Investors and Eastern Arab for Industrial and Real Estate Investments (IEAI) got away with a 6% decrease, closing at JD1.88.

United Arab Investors (UAIC) suffered a 5% drop, settling at JD2.89, despite various disclosures it made concerning third quarter results and future plans. According to the statements, UAIC was able to raise its earnings by 200% over the past year. As of 15 September 2003, the company had posted JD2.6 million in profits versus the 0.88 million it accumulated during the same period last year. In addition, an agreement was signed with the Canadian International Development Agency (CIDA) whereby the latter will provide financial and technical assistance to market UAIC's QIZ scheme, namely the facilities owned by the company's subsidiary, IEAI, in North America and Europe.