Solidere and major bank shares on the Beirut Stock Exchange (BSE) continue to rise as the value of lollars declines within Lebanese banks. Solidere’s ‘A’ shares closed on Tuesday at 94 lollars, a 12 percent increase from the end of August. Its ‘B’ shares, untraded on Tuesday, closed Monday at 90.3 lollars, reflecting a six percent rise.
BLOM Bank’s common shares more than doubled to seven lollars on October 9, up from 2.9 lollars on July 5. Byblos Bank shares also rose 27 percent to 0.8 lollar on October 10, from 0.63 lollar on August 14.
According to Faysal Barbir, Director of Capital Markets at I&C Bank, “The prices of shares listed on the BSE are inversely related to the value of the lollar. Shares continue trading based on lollars as a ‘store of value,’ where buyers aim to preserve value, while others raise funds to close outstanding loans or accumulate voting rights.”
Barbir also noted, “Even though shares are denominated in lollars, they remain a better investment than keeping your lollars stuck in banks.” The volume of trades remains quite low compared to pre-crisis levels.
