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Belgian scrips marginally firmer

BRUSSELS: Belgian shares closed marginally firmer after another side-winding session as the market came to a virtual standstill before Thursday's Bundesbank meeting.

Traders said they expected the Bel-20 index of leading shares to attempt to break the 1,500 point level if the Buba cut official interest rates, but added more range-trading or even a small correction were likely if rates were left unchanged.

"The market will certainly react positively to a rate cut... everyone seems to be waiting for it to buy," one trader said.

The first trader added that if rates were left unchanged, there appeared to be good support in the 1,460-70 area.

The Bel-20 index closed 0.53 points, or 0.04 percent, up at 1,484.65 after moving in a narrow 4.50 points range.

A low 1.17 billion francs worth of shares were traded, one fifth of which in utility group Electrabel, which closed one percent higher at 6,340.

Traders said Electrabel was sought after for its dividend yield, which they said remained very attractive compared to bond yields. Electrabel's net dividend yield amounted to 5.14 percent compared with 7.18 percent on the benchmark 10-year linear bond.

Glass maker Glaverbel was today's biggest gainer, closing up 130 francs, or 3.3 percent, at 4,030, its highest level since early June before the company announced it was issuing a maximum 1.25 million shares at 3,700 francs per share.

"Due to the share issue Glaverbel has seriously lagged the market over the past two months, but now the new stock has apparently been absorbed," one trader said.

Brokerage Dewaay issued a trading buy on the stock with a target gain of around 10 percent to 4,400-4,500. "Investors are looking for market laggards, Glaverbel surely is worth a bet," the trader said. -Reuter