The BLOM Stock Index (BSI) dropped to a new all-time low, hitting 555.84 on the first trading day and remaining stable till the end of last week, February 9, compared to a previous bottom of 560.41 the week before.
Solidere was the guilty party as on many other occasions, however, the company’s shares avoided touching their record lows. Although Solidere has by far the largest market capitalization of any listed stock, most other listed shares are trading lower now than during November 1999 when the BSI hit its nadir prior to this year, including the next two largest market constituents, Byblos Bank and Ciments Libanais.
Israeli elections and the landslide victory of the right-wing leader Ariel Sharon acted as something of a deterrent to foreign investors when viewing regional markets. The wait-and-see attitude on the international front was confirmed as Lebanese GDRs remained largely unchanged, with the exception of Audi’s slight drop.
Banking stocks were less active than of late, with only two being traded on the bourse this week. Bank of Beirut was one of those, registering a volume of 2,060 shares at an unchanged price of $7.563. The other performer was Byblos “C”, redeeming itself from the shame of a blank sheet as 4,279 exchanged hands in a single trade on Wednesday, February 7, holding its price at $1.688.
On the GDR front, BLOM and BLC distinguished themselves by merely holding their ground at $23.25 and $5.125 respectively, as Audi fell 0.54 percent to close at $13.75. Not surprisingly, Solidere continued to be the most actively traded stock on the bourse, accounting for almost half of the total market volume, but still at low turnover rates compared to previous months. Class “A” shares faced increased pressure this week, shedding 2 percent to close at a low of $6.125. However, Solidere “B” managed to remain unchanged at $6.75, on thin volume of 8,170.
On the international front, Solidere’s GDR was able to hold its position at $5.825, a commendable achievement given the latest political events in Israel, with investors perhaps opting to sit on the sidelines for now. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
