Arab Bank drives market exuberance on Amman Stock Exchange
The Amman Stock Exchange (ASE) took a roller coaster ride this week, as a run of zealous trading caused the exchange to witness a record daily trading value of 18.35 million Jordanian dinars on Sunday, reported Atlas Investment Group, a Jordan-based research firm.
The Central Bank of Jordan (CBJ)’s interest cut that took effect a few weeks ago also played its part as the liquidity that was pumped into the market began to show its effect. However, towards the end of the week investors started to shift to the sidelines as they await listed companies’ semi-annual results.
The Arab Bank (ARBK) played its part as a market driver while weathering some selling pressure along the way. The stock’s weekly trade amounted to approximately JD90 million as it closed at JD222, down four percent.
The Bank of Jordan (BOJX) and the Export and Finance Bank (EXFB) saw respective hikes of 15 percent and 10 percent as shareholders await the banks’ mid-year results. Jordan Telecom (JTEL) climbed all the way to JD2.35, before settling at JD2.28, as regional institutional buyers moved in on the stock.
Jordan Cement (JOCM) faced similar buying sprees from such investors as well, which pushed the stock up four percent to JD5.59. Specialized Investment Compounds (SPIC) and Middle East Complex for Eng. Elec. & Heavy Industries (MECE) both experienced healthy trading with 1.2 million and 2.7 million of their shares changing hands, respectively. SPIC climbed five percent to JD1.39 while MECE rose 11 percent to JD1.09.
The Executive Privatization Unit (EPU) finally announced the preferred bidder for the privatization scheme of Arab Potash (APOT). Canadian contender, Potash Corporation of Saskatchewan (PCS), submitted the highest offer to buy a 26 percent stake in the company, which is currently owned by the Jordanian government. Jordan Phosphate Mines (JOPH), which is still waiting to see its own privatization program through and is also in negotiations with PCS, advanced 11 percent to JD2.50 as a little more than one million of its shares traded. — (menareport.com)
© 2003 Mena Report (www.menareport.com)