Jordan Times
Monday, November 8, 1999
Amman shares lower on profit-taking deals
AMMAN (R) — Amman's shares declined on Sunday on some profit-taking deals as investors took a pause after a week-long rally sparked mostly by strong foreign institutional buying, dealers said.
The Amman Financial Markets index shed 2.73 per cent to close at 162.20 points in thin turnover of JD572,735 ($807,806).
The steep drop in the index reflected mostly an eight dinar fall in heavily weighted Arab Bank, which alone accounts for over half the bourses' total market capitalisation.
“There was profit-taking on most stock in a generally thin market with poor demand,” said Amer Muasher of National Securities.
Dealers attributed Sunday's across the board declines to a pause in institutional buying behind the bourse's rebound last week to its highest level in over three months.
Foreign fund buying, accompanied by some local institutional demand on select undervalued blue-chips, helped to partially recoup the last few months of losses on the back of poor demand.
“The bourse's correction on Sunday was expected. It wasn't possible to maintain this rally without a correction that long,” said Muasher, adding that prices except for Arab Bank, fell marginally.
But the leading blue-chip bank, Arab Bank, which led the bourse's rally last week, fell eight dinars to close at 195 dinars in marginal trade comprised of only eight transactions.
Jordan-Cement however rose 0.03 dinars to close at 3.33 dinars after shares worth JD164,673 were traded, the largest transaction of the day.