The BLOM Stock Index (BSI) headed into a downward dive this week towards the 500 mark (half its base level of 1,000 set in January 1996), stopping just short at 508.62 but still managing to lose 8.5 percent in the process.
Behind the Beirut bourse’s retreat was mainly Solidere, which itself visited previously unknown lows. Moreover, the stock has always been the most sensitive to regional developments, and the election in Israel of hardliner Ariel Sharon was hardly seen as being propitious for an already stuttering peace process. International investors, however, appear to be taking a more measured approach, as Lebanese GDRs were subject to little action, with Solidere’s GDR even rising slightly.
The local foreign exchange market witnessed some increased demand for U.S. dollars this week as the election of Likud Party leader Ariel Sharon in Israeli prime ministerial elections unnerved investors.
However, supply of the U.S. currency was limited, forcing the Central Bank to step-in and bridge the gap to the tune of around $60 million according to market sources. The trading range for the Lebanese pound on the interbank market tightened from LP1,513.75- 14.24 to LP1,514-14.25 by the close. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
