|
October - December 2000 |
| New Beirut Stock Exchange new trading system applies to SOLIDERE shares |
| Trading on the Beirut Stock Exchange has benefited from a major improvement since October 27. The outcry system was introduced by the Exchange to replace the previous price fixing system. The new system is an interim measure, pending the intended establishment of the more developed continuous trading system. The 10:00 am opening price is calculated, using the old price fixing method. Between 10:00 am and 12:00 pm, stocks trade using the outcry system. Investors wishing to trade must 'dematerialize' their shares before placing any buy/sell orders. Trading occurs without certificate cancellation or delivery. The broker provides the investor with a written confirmation of the transaction. Each broker enters buy or sell orders, cumulated under his own name and not under the investors' names, at any time during the two hours the market is open. Matching orders, if any, are entered at each level and trade occurs accordingly. The last price at which the shares are traded represents the closing price of the stock. |
| Beirut Exchange registers SOLIDERE share transaction |
| Around
the end of 1999, SOLIDERE had concluded the sale of 7 million of its treasury
shares with a sale-back option. The Beirut Stock Exchange had refused to recognize and register this transaction, and SOLIDERE had contested this decision, as the sale was considered to be perfectly legal and regular. The issue was resolved in the last quarter of the year 2000. The Exchange consequently reversed its decision and the transaction was finally registered. |
| Half-year accounts |
| SOLIDERE
published in the last quarter its audited half-yearly financial statements,
following their approval by the Board of Directors on September 25. The
results show a midyear loss of US$2.7 million, mostly due to delays in closing
negotiated deals, and the cancellation of a number of sales because of
administrative hindrances to the issuing of regulatory building and occupancy
permits. The Company considers that the reported loss is not a good indicator of the expected year-end results. The new government's approach to solving outstanding problems is greatly improving investors' expectations, and is hoped to give a new thrust to the city center. |
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| SOLIDERE
shares were actively traded during this quarter, with about 825,000 shares
exchanging hands. Starting October 27, the trading followed the newly adopted
outcry system. Both shares closed the quarter downbeat, as economic uncertainty still loomed over the markets. Share A closed the quarter at US$65/8, representing an 11.67% drop compared to the previous closing level; while share B closed the quarter at US$73/8, at the same level as the previous closing price. |