Rallies at the Beirut Stock Exchange (BSE) are rare. There has
been little interest In Lebanese stocks for the last two and a half
years. Trading volume dropped from $640 million in 1997 to $90
million last year. In the first eight months of 2000, it dropped
another 30% compared to the same period in 1999. One of many
complaints among stockbrokers has been the market’s antiquated
fixing system. Even though the BSE Is ready to bring In
continuous trading – a two-hour session after price fixing – the
government has been slow giving a green light. According to Fadi
Khalaf, BSE chairman, the council of ministers gave approval in
May but passed it on to the Shura council.
Is the government offering another example of taking forever
to approve a change that brings positive results? “The delay
is due to the Shura council who has sat on the decree for several
months,” says Georges Corm, minister of finance. “Now its
opinion has been given, and we hope the decision will be published
in the official gazette [in the beginning of October]. The
changes are all made, no more steps, except the signature of the
prime minister and the president.”
But allowing continuous trading in October is still an ‘if.’ A government
heading for the exit may be reluctant to make any decision.
“It’s difficult to predict,” says Khalaf. “Hopefully It will
happen soon.”
