Lebanon’s BLOM Stock Index (BSI) had a bumpy ride this week, all on the back of Solidere, sinking to a new all-time low of 562.56 before recovering to 580.82 at the close. The fortunes of Lebanon’s largest company and those of the local equity market seem almost inseparable, with the former acting effectively as a barometer of economic confidence. That confidence has over the past year or two taken a bit of a knock.
However, as down as both Solidere and the market have appeared at times, they are by no means out. The government’s drive to stimulate economic growth if successful would help in creating an environment in which the market could at least escape the depths reached this week. The recovery witnessed at the end of the week perhaps testifies to the view that the levels of recent days mark something of a bottom. As far as Solidere was concerned, that view was extended onto the international front, as its GDR distinguished itself by being the only riser.
No price changes were registered among the banks listed on the Beirut bourse. Three bank stocks were traded, Byblos “C” on a single day’s volume of 24,000, Bank of Beirut “C” on turnover of 45,530, and the uncommon sight of BLC “C”, which was subject to a trade of 115 shares. Before this week, BLC had not witnessed any trade since last September. However, BLC’s GDR could not emulate the feat of its brethren, as its price gave the convincing impression of being in a state of suspended animation. Although it has to be said, that condition has not been unknown to others at various times. Audi’s GDR fell off its $16.15 perch by 2.6 percent to $15.73,while BLOM’s GDR edged back 0.3 percent to $21.625.
Not surprisingly, Solidere continued to be the most actively traded stock on the bourse, with 95.8 percent of total market volume exchanged at a continuous trading session on Friday. Demand on class “A” caused its price to appreciate 3.92 percent to $6.625, after dropping to $6.125, the lowest price since November 1999. The “B” share saw its price rise 1.85 percent to close at $6.875. International investors appeared to regain some of their optimism on Solidere, perhaps remembering that the new government is expected to help revive its activities, as the price of its GDR gained 6.9 percent to $6.175. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
