 |
|
| (daylife.com) Investors blamed for Amman Stock Exchange drop |
|
|
|
|
(Sukuk.net - Jordan Times) brokers and analysts attributed a 2.53 per cent drop in Amman Stock Exchange's (ASE) price index on Sunday to "dumping" of leading shares, like phosphate and potash.
"Investors at the Amman Bourse follow the herd mentality," Jawad Kharouf, president of the Association of Certified Capital Market Professionals, told The Jordan Times.
"When prices of phosphate, potash and petroleum refinery shares drop, not only these blue chips are dumped but other shares that are not linked to them," he said.
A total of 277,529 Jordan Phosphate Mines Company (JPMC) were yesterday on offer for sale at "limit down" ceiling (or the maximum allowed percentage for higher or lower trading prices). On offer for sale, also at limit down, were 29,632 shares of Arab Potash Company (APC).
According to a broker preferring anonymity, "People get encouraged to buy shares of different companies whenever the prices of JPMC and APC shares go up. If the prices of both companies drop, the whole market goes down."
Noting that this has been a trend for a long time now, he indicated that people are so much influenced with those two companies (JPMC and APC) even when buying and selling other shares that have nothing to do with them.
Kharouf said: "When the phosphate, potash and petroleum refinery shares are down, investors race to sell whatever shares they possess in the equity of other firms."
He acknowledged that the drop of stock markets in Arab Gulf states and the start of Ramadan, when trading volume is low, were factors behind the regress. However, he insisted that the approach or behaviour of investors was the main reason behind the "illogical drop in the ASE index."
"It is regrettable that such conduct takes place," Kharouf elaborated. "Many investors will be out from the market in no time if their collective trading pattern continues in this manner."
Elias Manneh, a civil engineering student, sold almost all the shares in his portfolios "because it became very annoying that when APC and JPMC shares are up, the whole market moves higher with it and vice versa."
"I sold all my shares in banks, real estate companies and industrial corporations because dumping of APC and JPMC shares negatively affects the whole market," Mannah said.
Mutaz Al Shami, a broker at the ASE, said people are waiting for the results of the third quarter noting that investors sell in order to cash their portfolios and buy once results are out.
According to the ASE website, trading value reached JD41.5 million on Sunday as some 13.4 million shares were traded through 9,631 transactions.
Out of 164 companies whose shares were traded, prices of 20 entities rose, and prices of 126 declined.
The top five gainers were, the International Silica Industrial by 4.92 per cent, the Mediterranean and Gulf Insurance-Jordan by 4.91 per cent, Premier Business and Projects by 4.90 per cent, the Industrial Commercial & Agricultural by 4.62 per cent, and Jordan Rock Wool Industries by 4.42 per cent.
The top five losers were, the Mediterranean Tourism Investment by 5 per cent, the Islamic Insurance by 5 per cent , Jordan Petroleum Refinery by 5 per cent , the APC by 4.99 per cent and JPMC by 4.99 per cent.
Source: Sukuk.net
|
