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Belgian shares

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BRUSSELS: Belgian shares closed 0.42 percent lower amid some profit-taking in anaemic summer trade but dealers predicted a test of the 1,500-point resistance level for the Bel-20 index in the second half of this week.

"There is a very, very strong possibility that 1,500 will be successfully tested," said Frank Dumont at Busschaert & Co.

Dealers said the index's bull run was still intact despite its 6.23-point dip to 1,484.12.

They predicted that the market would consolidate ahead of Thursday's meeting of the Bundesbank council, the first after the summer recess, amid persistent speculation on a rate cut.

The Bel-20 failed to respond favourably to Wall Street's stronger start and the steady dollar.

Most institutionals were absent in Brussels and retail investors helped put together a modest daily volume of 729 million francs. "It's mainly small orders from retail investors who have decided to take some profit now. But there aren't many sellers," Dumont said.

The most prominent victim of todays bout of profit-taking was chemicals and pharmaceuticals company UCB which had been the main driving force behind the Bel-20's rise for the past two weeks.

"(UCB's loss) is normal after such a strong rally," Dumont said. UCB set an all-time high of 33,400 francs last Friday.

Brokerage Vermeulen-Raemdonck gave UCB a hold/buy medium-long term recommendation after the close on Friday.

Vermeulen-Raemdonck said that stronger-than-expected first-half 1995 earnings, announced on July 27, had taken the stock "to levels correctly anticipating the short run and the risk of temporary profit-taking may not be neglected".

Dumont said UCB could now slide to 31,500 francs.-Reuter