Weekly rise in BSE cannot hide negative sentiment
Last week, ending February 16, activity on the Beirut Stock Exchange improved dramatically from the previous week due a rise in trading in Solidere stock. Solidere dominated trading, accounting for 91 percent of total volume and 97.5 percent of aggregate turnover. However, rising regional tension and election results in Israel continue to negatively affect investor sentiment.
But Irrespective of who wins elections in Israel and the final shape of a new Cabinet, the Lebanese government must proceed with economic reforms to stimulate growth, improve the investment climate and restore confidence. On a weekly basis, volume increased 519 percent to 415,193 shares and turnover rose 845 percent to $2.24 million.
Solidere’s stock continued to register low activity. The firm’s “A” shares dropped 8.2 percent to $5.625 while “B” shares plunged 18.5 percent to $5.50. A total of 376,537 shares changed hands for a value of $2.18 million compared to a volume of 32,291 shares and a turnover of $202,972 for the previous week.
Bank stocks contributed 1.5 percent of turnover on the bourse for the week. Byblos was the only mover, rising 1.9 percent to $1.71.All other stocks maintained their previous prices.
Ciments Libanais traded 30,301 shares, but its stock price remained unchanged at $0.406.
Lebanese GDRs were largely unchanged. Solidere rose 0.9 percent while Audi and Blom dropped 0.7 percent and 0.4 percent respectively. — ( Lebanon Invest )
© 2001 Mena Report (www.menareport.com)