Lebanon Businessnews News

After falling to $44.5
Solidere shares rebound
Volatility is attributed to a rise

in lollar value following rumors

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Solidere shares witnessed a sharp decline in their prices in the last week of August and until September 6. Its ‘A’ share reached a bottom of $44.5 on September 6 to rebound again the next day.

The ‘A’ share shed 23 percent of its value between August 25 and September 6 and then increased by 12 percent in two days to close at $50 on September 8.

The recent decline in the Solidere share price is mainly attributed to rumors that the Central Bank would issue a circular allowing lollar withdrawals at an exchange rate of LL12,000 instead of LL8,000, said Faysal Barbir Director of Capital Markets at FFA Private Bank. This rumor triggered an increase in demand for lollar checks which resulted in an improvement in their prices, in other words, they were sold at lower discounts, he said.

According to Barbir, investors who had bought Solidere shares at low prices saw the opportunity to achieve substantial profits by selling their shares and buying lollar checks since their value increases by 50 percent when their exchange rate is raised from LL8,000 to LL12,000.

“This is a technical and short-term matter,” he said. As long as there is no improvement in the economy, no reforms, and no IMF agreement, investors will continue to favor the Solidere share with its underlining real estate assets because it remains a better investment than lollars, Barbir said.

Last May, Solidere ‘A’ shares surged by $26 dollars or 66 percent within ten days in parallel to a jump in the exchange rate of the dollar vis-à-vis the lira which led to a further decline in the value of the lollar.
Date Posted: Sep 08, 2022
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