Stock investors shy on Middle East troubles

Published October 25th, 2000 - 02:00 GMT

The bourse fell on Monday in volume dominated by block deals in two mining firms in an otherwise gloomy investor outlook on worries over Middle East stability, dealers said.  

The official 60-share benchmark Amman Stock Exchange (ASE) index weighed by market capitalization shed 0.54 percent to close at 133.52 points in turnover of around JD486,722 ($686,490).  

 

Traders said the continued wave of violence that has erupted in Palestinian territories since Sept. 28, which has left peacemaking in tatters, remains a major deterrent to buying.  

“Investors are worried about the situation in the region,” said Amer Muasher, head of foreign investments in National Securities.  

 

They blamed the violence for aborting a cautious recovery, which had begun about a month ago on prospects of better ties with Iraq, the country's leading trade partner.  

 

Most of the turnover was dominated by block deals in two rarely traded mining firms, Jordan Dead Sea Industries (JODICO) and Jordan Magnesia Company.  

JODICO rose JD0.06 to close at JD1 while Jordan Magnesia was unchanged at a similar JD1.  

 

Traders said the deals appeared to be executed by Arab Potash to raise its majority stake in the two affiliated firms, which exploit Dead Sea minerals.  

 

The sole cement producer, Jordan Cement Factories Company, was unchanged at JD3 in mainly block deals worth nearly JD108,366.  

 

Detergents producer Industrial Commercial Agricultural, rose 3.45 percent to close at JD1.20 after shares worth nearly JD69,000 changed hands.  

 

Another gainer, National Cable and Wire Manufacturing, a blue-chip industrial firm, was up 1.75 percent to close at JD0.58 in one of the heaviest transactions of the day.  

 

There were hardly any deals on Arab Bank, whose price fluctuations heavily influence the ASE index.  

The share, which alone comprises over 40 percent of the bourses' total capitalization, shed 1.28 percent to close at JD154 in only four transactions worth a minimal JD10,810. — (Jordan Times

 

 

© 2000 Mena Report (www.menareport.com)

You may also like