Another year ended, another annual fall in the BLOM Stock Index (BSI). But, at least the drop in the BSI in 2000 was less than in 1999, 17.9 percent against 20.9 percent. However, the volume level in 2000 was up 17.7 percent in 2000, to 19.8 million thanks to a number of large block trades.
As for the new year, it got off to a slightly inauspicious start as the BSI slipped back 2 percent from its 2000 close to 580.59, with Solidere again being the main determinant of its movement. Hopes of it ending the year up on the level it started are higher than 12 months ago thanks to a degree of optimism surrounding expected government economic initiatives.
Listed banks had a slow start to 2001, with Byblos “C” and Bank of Beirut the only ones witnessing trades, both at unchanged prices. Over the year 2000, Audi “C”, BLC “C” and Byblos “C” had bumpy rides, going down 26.2 percent, 25.9 percent and 30 percent respectively, while BEMO distinguished itself by being the only riser, going up 16 percent during the period.
Lebanese GDRs were mostly down in the first week of the year, with international investor interest firmly focused on US markets after the Federal Reserve cut short-term rates by half a percentage point.
The Lebanese GDRs did not have a good 2000, suffering from general investor caution towards emerging markets, especially at a time when western equity markets were subject to a great deal of volatility, while regional tensions and a sovereign credit ratings downgrade from S&P did not help matters. Audi’s GDR was stable this week at $16.15 while BLOM’s GDR dipped 1.56 percent to $20.475.
Relatively thin volumes in Solidere could not prevent both share classes losing further ground this week, as “A” shed 3.8 percent to close at $6.375 and “B” fell 1.7 percent to $7.25. The recent change in government is expected to make 2001 a more positive year for Solidere and its operations than the one just past, when “A” fell 20.9 percent and “B” 13.2 percent. Solidere GDR’s greater exposure to foreign investors in comparison to other Lebanese GDRs resulted in its price dropping 20.5 percent in 2000. That decline continued this week, as the GDR fell a further 2.85 percent to $5.95.
Ciments Libanais was the only industrial traded this week, with 7,500 shares changing hands on Friday, January 5th, at a steady price of $0.406. The share price of Lebanon’s largest industrial company had ended 1999 at $0.5. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
