Banking on Results

Healthy volumes were the order of the day as liquidity started pouring into the Amman Stock Exchange (ASE). Several companies have published their third quarter results for 2003, which gave investors a fair indication of what they should expect for year-end results, and as a consequence, allowed them to regain their confidence in the market.

The banking sector was this week's leader as several of its stocks captured a good chunk of the overall trading volume. The Jordan Gulf Bank (JOGB) climbed 16% to JD0.22 as 3 million of its shares changed hands, while he Philadelphia Investment Bank (PHIB) had less than one third of that amount trade as it hiked 21% to JD0.23. The Export and Finance Bank (EXFB), on the other hand, saw 1.7 million of its shares exchanged in a bloc deal. The stock closed at JD3.02.

Meanwhile, in a move to enhance its revised strategic direction, which was conceived in 2001, the Arab Bank (ARBK) announced, on Monday, an agreement to acquire Atlas Investment Group. The acquisition is expected to generate notable incremental earnings from the cross-selling opportunities that will be created. ARBK climbed 4% to JD287

Unified for Organizing Land Transport (UNIF) had market participants secured to their seats as the first shipment of Iraqi oil arrived at the port of Aqaba. UNIF rose 10% to JD1.72 as a result.

Advanced Pharmaceutical Industries (ADPH) and Arab Pharmaceutical Manufacturing (APHA) were suspended from trading after announcing their plans to merge. Both stocks shed 2%, with ADPH closing at JD2.78 and APHA ending the week at JD4.40. They will remain halted until the merger is complete.

Note that the period from Monday to Thursday is an official public holiday celebrating the end of the Holy Month of Ramadan, and as a consequence, the ASE will be closed. The exchange will resume trading on Sunday 30 November 2003.