The BLOM Stock Index regained some of the ground it lost in recent weeks as domestic considerations overshadowed regional events, going up 3.7 percent to 640.54.The skeptics may suggest that the domestic economic and financial scene is no more encouraging than the grinding halt the peace process has come to. However, politically at least, hope springs eternal. That hope, as was the case in the aftermath of the parliamentary elections, is focused on the possible, if not probable, return of Rafik Hariri as prime minister. This increased optimism on the former premier’s chances of taking-up his old job certainly helped buoy Solidere shares, which as usual single-handedly directed the market while other stocks generally preferred to remain comatose. The troubles south of the border, though, cannot of course be ignored, and indeed they were not. International investors, as ever wary of the first signs of political instability in the region, registered their concern by exiting Lebanese GDRs, as all headed down.
Bank of Beirut was the first bank to announce its 9-month results on Friday, showing a slight 1.5 percent in profits over the same period last year to $14 million. These results did not have any effect on the bank’s stock price, which had its usual trade of 1,000 shares a day at its unchanged price of $7.563.Byblos “C” ended the week unchanged after surging to $1.813 on Monday on excess demand before falling back to $1.75.Although the other listed banks are expected to release their 9-month results in the coming couple of weeks, they are not expected to have any marked effect on the share prices. Banks GDRs all went south, with Audi down 6.6 percent to $16.18 and BLOM losing 4.8 percent to $21.9.
Solidere “A” distinguished itself in the bourse this week by being the sole mover as its price gained 8.62 percent to close at $7.875.The stock was subject to excess demand from Wednesday to Friday after its price dipped to $7.125 on Tuesday. The excess demand, an unusual situation for the “A” share, probably reflected investors taking positions in the stock at what they consider low prices in anticipation of a rise if Rafik Hariri is appointed prime minister next week. The “B” share was demanded all through the week, with no supply materializing except for 810 shares, which were traded on Thursday. The company’s GDR lost 2.53 percent to close at $6.75 following on from the latest developments in the region.
Ciments Libanais was heavily traded, with 140,000 shares changing hands, 72.4 percent of total market turnover, but the price was unmoved. Ciments Blancs “B” was the only other industrial traded as 4,000 shares were exchanged. – (Banque du Liban et d’Outre-Mer)
