Jordan Times
Tuesday, November 18, 2008
Analysts doubt recovery at ASE
By Mohammad Ghazal
AMMAN - A recovery at the Amman Stock Exchange (ASE) on Monday failed to
convince analysts that the bourse has bottomed out and that it is now on upward
trend.
With trading volume at JD48.5 million, the share prices index rose Monday by 3.3
per cent to 2,989 points after an almost 16 per cent decline in six days of
trading. Out of 185 corporations whose shares were traded, prices of 134 firms
rose, and prices of 40 declined.
Jawad Kharouf, president of the Association of Certified Capital Market
Professionals, described the stock market as directionless.
“Nothing is clear to enable us to detect a trend. The market might be up for one
or two more days and might continue bleeding again," he said.
Kharouf attributed the rise in the ASE on Monday to signs of recovery in the
Gulf markets.
Most markets in the Gulf rose with Dubai leading the way, spurred by the real
estate sector, which rebounded strongly following two months of deep losses, the
Agence France-Presse (AFP) reported Monday.
Hani Halawani, CEO of IFA Financial Services in Amman, said several large
investors started building new positions yesterday, especially since prices of
blue chips reached very tempting levels to buy. "You cannot tell the market's
trend because it is tied to the regional and global markets. It might rise for
few days and then sink, shedding all the gains. But investors are buying,"
Halawani told The Jordan Times over the phone yesterday.
He said the 16 per cent drop in the ASE over the past week was not justified and
was mainly caused by "panicking" investors rushing to sell at any price.
Monday's top five gainers were, the Int'l Arabian Development and Investment
Trading by 5 per cent, Middle East Pharmaceutical and Chemical Industry and
Medical Appliances by 5 per cent, Jordan Islamic Bank For Finance and Invstment
by 5 per cent, First National Vegetable Oil Industries by 5 per cent, and the
Professional for Real Estate Investment and Housing by 5 per cent.
The top five losers were, the Nopar for Trading and Investment by 5.03 per cent,
Al Shamekha for Realestate and Financial Investments by 5.02 per cent, Jordan
International Trading Centre by 5 per cent, Enjaz for Development and Multi
Projects by 5 per cent, and Bindar Trading and Investment by 5 per cent.