Market retreats after Nasrallah’s interview

 

The Beirut Stock Exchange did not like what it heard from Hezbollah leader Sayyed Hassan Nasrallah during his last night’s interview on NBN TV . His defiance sent the share prices down.

 

Shares of Solidere ( the largest real estate company in Lebanon ) went down. Obviously the real estate boom that Michel Hayek has predicted will have to wait till there is a light at the end of the tunnel. The market only saw darkness after Nasrallah’s speech .

 

Solidere “A” shares closed at $ 22.00 and “B” shares at $ 21.68. “A” shares went down 1.56% and “B” shares 2.51%

 

Bank shares were mixed but mostly down too.

Banque Audi GDR went down 1.55 % and closed at $ 75.80.
BLOM bank GDR was up a fraction and closed at $ 89.90.
Byblos Bank “listed shares” was down a fraction and closed at $ 2.21.
Byblos Bank “Priority” went down 1.33% and closed at $ 2.21.
HOLCIM Liban a cement manufacturing company was unchanged at $ 20.75.

Market Capitalization for the shares traded on the exchange was down at $ 10,716 billion.

The Lebanese Pound ( Lira) was unchanged at USD/LBP :1507.5

Volume of trade today was very light . Only 174,115 shares traded hand . Value of traded shares was $4,467,727.

 

The seemingly endless debate over the presidency and the government, coupled with sporadic assassinations, has left deep marks on the already fragile economy. In 2007, Lebanon, which saw impressive growth in 2004 and 2005, failed to take advantage of the oil boom in the region as Gulf investors sought suitable places to put their money.

 

“We have good weather, beautiful mountains, a multilingual population and a free economy. But what is missing are wise politicians,” one economist said.

 

The President of the Investment Development Authority for Lebanon, Nabil Itani, proclaimed earlier this year that more than US$5 billion worth of investments was expected to come to Lebanon in 2007.

 

“If the situation was normal in Lebanon, the Lebanese and Gulf investors would have invested heavily in the tourism and real-estate sectors,” Itani said.

 

Nasrallah, s interview last night did not help the economy either . He is still insisting on a government of national unity in which the Iranian and Syrian backed opposition will have a veto power and wants the agreement on this issue before the election of the president . PSP leader Walid Jumblatt said ” not over our dead bodies ” . This veto will be handed on a silver platter to Iran and Syria to further control and destabilize this country. Jumblatt urged the opposition to” think Lebanon first ” and stop taking orders from Iran and Syria. Jumblatt said “Nasrallah is not a free man”