Business | Property
Lebanon's Solidere up 12% after crisis eases
Shares in Lebanese real estate market heavyweight Solidere surged 12 per cent on Friday, a day after the country's worst political crisis since the 1975-90 civil war eased.
- Reuters
- Published: 23:39 May 16, 2008
Beirut: Shares in Lebanese real estate market heavyweight Solidere surged 12 per cent on Friday, a day after the country's worst political crisis since the 1975-90 civil war eased.
By 0705 GMT, the company's A shares had risen 12.17 per cent to $28.49 and its B shares were up 12.04 per cent to $28.01 per cent. The market index rose 5.59 per cent.
On Thursday, an Arab League mediation mission sealed an agreement that ended fighting between ruling coalition supporters and Hezbollah.
"The market has been influenced by yesterday's deal and the high expectations that the Lebanese were looking for. Therefore the increase in the market strictly related to the political situation," Firas Hassan, financial analyst at Arab Finance Corporation, told Reuters.
Market outlook
"For the time being, the market has potential to rise even higher, especially if there's a positive solution in Qatar," he said, referring to talks to resolve Lebanon's wider political crisis, which will be held in the Gulf state.
Solidere, the country's largest company by market value, recently said it had agreed to jointly develop a $60 billion project on the coastline of UAE emirate Ajman. The real estate company is seeking to expand its portfolio.
Earlier this month, Solidere's general manager said profits were likely to match last year's levels of $130 million.
Former prime minister Rafik Al Hariri, who was assassinated three years ago, founded Solidere in 1994 to rebuild downtown Beirut after the 1975-1990 civil war.
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