The Quarterly J u ly   -  S e p t e m b e r   1 9 9 8
Financial News
In the July 1998 SG Emerging Markets Equity Research report on Lebanon, Société Générale European Emerging Markets Limited devoted a section to SOLIDERE in which it published a positive investment recommendation, based on the Company's excellent fundamentals.

Thomson Bankwatch updated on August 31, 1998 its outlook for Lebanon's economy from stable to positive, due to progress in reducing the fiscal deficit in accordance with the targets set for 1998, a narrowing trade deficit and renewed interest from Arab tourists and investors. The international rating agency reaffirmed its B+ sovereign rating for Lebanon.

A vote of confidence in Lebanon's future, especially in banking services, was given by Konrad Peterson, head of ING Baring's Beirut branch, in an interview published by the local Daily Star on September 9, 1998.

The Lebanese government issued US$350 million in Eurobonds during September 1998. The spread on the seven-year, bullet-repayment bonds is a 390 basis points over 7-year US Treasuries. Foreigners subscribed to 36% of the amount.

Investment managers representing several international investment funds visited SOLIDERE and the BCD in September 1998. These include Edinburgh Fund Managers, Martin Currie Investment Management, Dresdner RCM Global Investors and Scottish Equitable plc.
Performance of the shares during the 3rd quarter

SOLIDERE shares were negatively affected by world markets turmoil as they retreated during the quarter, from a high of US$11 7/8 to a low of US$10 3/8. Share A closed the quarter at US$10 1/2, a 14.3% drop over the previous quarter closing price, while share B closed at US$11, representing a 10.2% drop over the previous quarter closing price. Both shares reached their lows around the end of July, and remained at these levels for the remainder of the quarter on low volume.