Taking

Stock of Politics Investing in stocks is pure speculation. But for Solidere, the most active company on the Beirut Stock Exchange (BSE), taking up over 70% of the total market cap at around $1.26 billion, speculation zeroes in on what happens in the world of politics. Whenever peace negotiations in the region have picked up, investors have pounced on Solidere shares. During elections its shares traded on the BSE and GDRs had an impressive rally based on anticipation of Rafic Hariri becoming the next prime minister (see graph). “We saw something we haven’t seen in two and a half years,” says Jean Riachi, chairman and general manager at Financial Funds Advisors. “Lebanese people were calling to buy. People we didn’t know came and placed orders. It reminded us of the good old times in 1997.” What got investors excited is clear. When Hariri ‘s stint as premier from 1992 to