As storms hit Lebanon this week, the local bourse found itself in the middle of its own kind of turbulent weather. The BLOM Stock Index (BSI) regained some lost ground at the start from last week’s freefall but a gust of profit-taking in Solidere amid continued investor unease following recent Israeli prime ministerial elections blew it back down to yet another all-time low on Tuesday of 504.05.
However, undeterred, Solidere in the form of its “A” share withstood the blustery conditions to help the BSI back-up over 520 before losing its footing just as the “B” share found some firm ground.
The BSI weather vane closed at 518.89, spinning in the wind and directionless. Solidere was the only stock that witnessed price movement, as the remainder stayed in port, although even fairer weather often fails to bring them out much. The week’s inclement climate was not just confined to domestically listed stocks, as Lebanese GDRs found themselves rocked about to varying extents, with investor sentiment towards emerging markets perturbed by events in Turkey resulting in the effective devaluation of its currency.
Interest in Solidere this week was such that the company’s shares almost monopolized the relatively subdued activity on the Beirut bourse, accounting for 74.9 percent of turnover with class “A” alone representing more than half the total. Solidere “A” could not manage to hold its ground further as it slipped back 2.2 percent to close at $5.5, a level close to its all-time low of $5.375 recorded last week. On the other hand, thinner volumes in Class “B” helped it to break-away from “A”, ending 11.36 percent higher at $6.125.The company’s GDR fell
0.9 percent to $5.8.
Bank of Beirut was the only traded bank repeating a “deja vu” activity as 500 shares were exchanged daily at $7.563. Bank stocks generally have been quite immobile since the beginning of the year, hampered by lackluster economic conditions and equity market. On the international front, banks’ GDRs witnessed a collective retreat, as BLOM dropped 7.7 percent, while Audi and BLC retreated 5.1 percent and 0.5 percent respectively. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
