Jordan Times
Saturday, June 27, 1998
Lack of institutional buying remains
By Tareq Ayyoub
AMMAN— Lack of institutional buying and lower share prices at the
Amman Financial Market (AFM) caused a decline in the turnover and in the general price
index, a broker said Friday.
The stock market's weekly bulletin indicated that turnover in the past week dropped by 6.9
per cent to JD4.8 million from JD5.2 million a week ago.
It also showed that three million shares were traded in the market during the past week,
for an average daily trading of 960,000 share compared to 1,040,000 a week ago.
The general price index fell by 2.65 per cent or 4.5 points to 167.05 points compared to
171.6 points a week ago.
Naim Naqeeb, a broker at the AFM, emphasised that the major factor that caused the decline
in the turnover was the absence of “institutional buying” in the stock market.
Mr. Naqeeb added that no major changes had occurred to most of the firms listed on the
market, especially the industrial firms.
“Most of the share prices have slipped in the past few weeks and that caused the
decline in the general price index,” the broker told the Jordan Times.
“If no major developments take place, both internally and externally, I believe
things will continue,” Mr. Naqeeb added.
He pointed that “the coming week might witness a slight increase but it will not be
effective as required.”
The Arab Bank, the Kingdom's largest financial institution, accounted for JD1.4 million,
almost a quarter of the total turnover.
The opening price of the Arab Bank's share in the past week was JD192 but the closing
price was JD186, the lowest price in almost four weeks.
Trading in the baking sector also focused on the Jordan National Bank, the Jordan Kuwait
Bank and the Housing Bank.
The weekly bulletin showed that the banking sector ranked first with a turnover amounting
to JD2.5 million, or 53.5 per cent, followed by the industrial sector with JD1.8 million,
38.8 per cent.
The services sector came third with 280,000, or 5.8 per cent and finally insurance sector
with only 90,000, or 1.9 per cent.
Among the shares that witnessed continuous drop in prices was the Jordan Cement Factories
Company (JCFC), whose share price fell to JD2.10 by the end of last week compared to JD4.1
a year a go.
Mr. Naqeeb said the reason behind the decline in the JCFC's share prices was the selling
by non-Jordanian investors.
The weekly bulletin showed that trading at the organised market amounted to JD4.05
million, while trading in the parallel market amounted to JD789,499.
The Export and Finance Bank received the attention of the investors in the parallel
market, the bulletin said.
Out of the 97 firms' shares that were traded in the market, 18 firms recorded increase in
its share prices, 54 firms registered decrease and 25 witnessed no change in their prices.