Solidere shares up ten percent
amid a surge in trading volume

Rally anticipates decision about lollar deposits

Solidere ‘A’ shares closed 9.8 percent higher on Wednesday at $90.6 and its “B’ shares ended the day at $91.1, up 9.2 percent.

Over 62,800 ‘B’ shares changed hands, up by more than 12 times compared to Tuesday. Trading volume of the ‘A’ share almost tripled and reached more than 45,700 shares.

The price rally started on Tuesday with ‘A’ rising by 4.2 percent and ‘B’ by 8.7 percent.



The market rally is likely to have resulted from speculations anticipating an approaching decision by the Central Bank regarding lollar deposits especially that shares are bought by lollar checks, said Faysal Barbir, Director of Capital Markets at I&C Bank. He said that there is an inverse relationship between Solidere shares and the discount rate of lollar checks.

The rally could also have been driven by profit taking and by the fact that some traders rebalance their positions at the end of the month, Barbir said. He said that Solidere shares remain a valuable store of value for holders of lollar deposits especially that it owns a stake of around 47 percent in Solidere International which operates abroad.