The situation in Jordan could be about to deteriorate, with protests turning more violent, according to Citi’s Jeffrey Williams and Farouk Soussa.Citi’s analysts are now calling time on their trade established back in February.
We recommend unwinding our trade idea from February 1 (Buy Jordan 15s). The situation in Jordan has recently taken a turn for the worse, and we are no longer as confident that the protests will not become more violent. We have already seen escalation, when on March 24th loyalists to the government clashed with demonstrators. The king has distanced himself from these actions. However, it now seems more probable that the protests may intensify. This puts into jeopardy our initial rationale for the trade, which had been based on the belief that the protests in Jordan were likely to remain peaceful.