Sayyed Nasrallah’s speech reinforces Beirut Stock Exchange by 40%

Translated by Local Editor, 24-02-2010

On the anniversary of the "Martyred Leaders Week" Sayyed Hassan Nasrallah's speech came both reassuring and positive, but only for the Lebanese people who had earlier been for many weeks under a heavy down pour of daily threats of war to be launched against them by the leaders of the usurper entity, and leaks of possible war scenarios. The speech came reassuring and positive for Lebanon at both the economic and financial levels, with Beirut Stock Exchange (BSE) in the past week witnessing an improvement in the performance and stability in its price index.

"Alintiqad.net" spoke with two economists Dr. Ghazi Wazni and Dr. Eli Yashui to see the positive effects of Sayyed Hassan Nasrallah's speech on the Lebanese economy.
Economist Dr. Ghazi Wazni pointed out, "If we want to take into account Sayyed Hassan Nasrallah's speech, we can say it was characterized by being reassuring from an economic sense, because it included several points confirming the absence of any possibility of a war in the foreseeable future to say the least."

He added: "Domesticly, Sayyed Nasrallah's speech reassured the Lebanese when he stressed that "Israel" will not be offered any excuse to launch aggression on Lebanon, while he extended a hand of partnership, stressing on understanding and consensus with other political forces, of course, this leads to an improvement in the government's political, security and economic performance."

As for the indicators which clearly confirm an improved economic situation in Lebanon after the speech by Sayyed Nasrallah, Wazni presented the most important points, saying:

1 - With regard to the performance of the BSE: the BSE performance size improved by 40%, additional to the existing stability in its price index of shares.

2 - Transfers continued from the dollar to the Lebanese pound, with the Lebanon Reserve Bank interfering through buying almost $150 million, an indication of confidence and sense of security by the investor or Lebanese depositor in Lebanese pounds, the financial situation and Lebanon's economic future.

3 - The government issuances of Euro Bounds amounting to nearly a billion dollars and the great interest by Lebanese and foreign banks as well as foreign investors, especially since the interest on this issue was low - about six and a quarter percent - this led to great interest and demand at both fronts home and abroad.

4 - Global reports of last week and beginning of this week, starting from the global institution "Fitch" showed improved performance ratings of the Lebanese government, in addition to the World Foundation Report "Marily Linch", which predicted positives on the Lebanese economic front, whether in terms of very strong growth in 2010 or in terms of investment or monetary inflows.

Based on the abovementioned Dr. Wazni considered year 2010 indices will be very positive, in that "We expect the economic growth rate to exceed 7% in addition to the remarkable banking sector growth exceeding 15%. A prediction also exists that the number of tourists in Lebanon this summer is to reach 2.5 million, an increase of more than 35% from last year, additional to continuing financial inflows, whereby Lebanese transfers have exceeded 7 billion dollar, significantly contributing to the balance of payments surplus."

On the other hand, Dr. Wazni saw that the "Economic and financial situation in Lebanon is entering into the calculations of the war that may be waged against it by "Israel" through:

First: the ways in which "Israel" is trying to deal with the Lebanese abroad by way of combating the Lebanese investors or expatriates in European or African countries.
Secondly: that Lebanon was considered in 2009 a model economy in the world and an investment and financial haven, while the "Israeli" economy was buffeted by the global financial crisis because of its economy's link to the U.S. and EU economies," adding: ""Israel" knows that the Lebanese economy, which depends on the capital of expatriates as an essential component for the steadfastness of its citizens, confirming that an economic war starts outside and goes inwards."

In the same context, the economic expert considered "Israel" not prepared for any war, attributing the causes to its open and exposed economy, which is closely tied to external economies, especially U.S. and Europe - currently suffering from the consequences of the global financial crisis."

Wazni indicated that the "Israeli" economy depends on two elements:

First: domestic tourism that is affected by the implications of security and war.

Secondly: the technology industry or advanced high-tech industry, primarily associated with the global economy, particularly the U.S. and EU, currently suffering under the global financial crisis, which refers to the usurper entity's inability to carry out any aggression it currently threatens Lebanon or Syria with.

Yashui

Meanwhile, economic expert Dr. Eli Yashui commenting on what came through the Zionist newspaper "Haaretz" that the high prices of apartments and land in Beirut and "Tel Aviv" is an indicator of the exclusion of war, he said that "Any balance in the increased activity between the real estate sectors of Beirut and "Tel Aviv", also hides a balance in the balance of power, and therefore, a reduction in the possibility of a future war by the enemy. This practically means that the balance of power is entering a tie between the two sides, thus automatically bringing the economy component to the fore of focus, within which real estate becomes a fundamental pillar."

Yashui felt that Sayyed Nasrallah's speech on military force not only deters the enemy from carrying out easy or improvised brutal attacks, it will positively reflect on the economy, contrary to the case that would have been if our country remained at the mercy of this enemy, which deems permissible the defiling of livelihoods and the wasting of lives."

Yashui saw that the stands made by the Secretary General of Hizbullah during his recent speech, emphasized that war on Lebanon is no longer a picnic, and positively reflected on the financial market in Lebanon.