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Cyprus Mail: News Articles in English, 00-11-24
CONTENTS
[01] Investors grumble over IMC facilities
[02] Bourse down after break
[03] Twenty Turkish jets over Cyprus
[04] `Dud Slovak guns being dumped with the National Guard'
[05] Travel agent hits back at government criticism of Istanbul trip
[06] Government hopes Denktash will return to the talks
[07] British expert insists Cyprus beef is safe
[08] Unions strike against CoLA
[09] More illegal immigrants on the loose, police say
[01] Investors grumble over IMC facilities
IT WAS meant to be the start of a new era in spacious, state-of-the-art
surroundings. But when the Cyprus Stock Exchange reopened yesterday at its
new IMC premises on the outskirts of Nicosia, it was business as usual,
with the index on the slide and investors complaining about the facilities.
There was considerable irritation on the investors' floor that the writing
on the computer monitors was so small it was impossible to read the latest
prices without craning necks and crowding to the front. The murmurs of
disapproval among the investors crowded in the ground floor room worsened
as the index plunged below the previous trading day's close. Another six
terminals were blank because they still had not been wired up. But they
were hanging so low that critics were quick to brand them a safety hazard,
lest anyone hit their heads on the sharp corners. Investor Andreas Charitou
said there had been a delay in applying for the electric transmitting
system, which was consequently running at just a third of its power. And he
added investors were still waiting for a central registry system that would
give them direct access to the system. "Therefore, we won't be dependent on
the brokers. Two or three brokerages already offer an online service. Why
can't we have this here? With ISDN lines and one or two computers in the
room as well it would be much better. It would stop the unfair exclusivity
that brokers have," he said. Formal complaints were made to the Investors'
Association and the CSE authorities. One observer said the new place was
nothing on the old one. "It was like a coffee shop before. It was smaller
and better. To tell you the truth I've heard quite a lot of bad comments,"
he said. But PR executive for Hermes International Stavros Elias liked the
new building, and thought it wouldn't be long before the CSE took over the
rest of the space. "I'm not sure these people even care," he said of the
investors. "They just care whether the index will go up. As long as they
make money, they'll be happy," he said. But the index put in a dismal
performance yesterday, closing 1.02 per cent down on the back of a feeble
£11.59 million in volume. Some 123 stocks lost value, opposed to just 46
that notched up minor gains. Despite the huge second floor given over to
the CSE, stockbrokers still seemed to be battling for space. The offices
were bunched up in one section of the open plan area. While there was
plenty of space at the back, brokers and secretaries were still squeezing
along a tight corridor next to the hub of activity. There were insufficient
chairs. Several brokers were reduced to perching on drawers to sit at their
computers, in one case, two to a drawer. George Karagiorgis, head of the
Hellenic Bank;s brokerage division, said yesterday his firm alone was still
waiting for five new computers before it could do its work properly. He was
nonetheless upbeat about the situation. "The move has been carried out
terribly efficiently and the transfer has gone OK. There haven't been any
serious problems and when the new computers come next week, we'll be fine,"
he said. The mood at the top was one of satisfaction and optimism. The
director general of the CSE, Nondas Metaxas yesterday told the Cyprus Mail
that he was delighted to be at the IMC. "We are very pleased that we're
finally here. It's an extremely modern premise and we are now ready to
implement our development programme. We are very optimistic that our
institution will see better days," he said. Meanwhile the Supreme Court
yesterday heard the case against an application of appeal against the CSE
move made by Nicosia mayor Lellos Demetriades. Demetriades maintains that
the IMC Building and the CSE failed to process the move through the proper
channels. He also argues it is wrong to move a national institution outside
the city centre. But his criticism of the location was not shared by any of
the brokers or investors who spoke to the Cyprus Mail yesterday. "If you
look at London, then no one part of it is the `centre'," said one.
"Different areas have different focuses," he added. "The distance is not a
problem. The building brings us prestige and it's more accessible to
Larnaca and Limassol," said one investor. Another broker added that it was
just a matter of getting used to a different drive to work in the morning.
[02] Bourse down after break
THIS WEEK'S three-day break in trading failed to lift the market out of the
doldrums when the bourse reopened in its new premises yesterday. Gains,
which followed last week's huge losses on Monday and Tuesday, did not
inspire investors to keep up the momentum resulting in losers outpacing
gainers by 123 to 46 yesterday while 38 companies remained unchanged. One
broker said it was because the last two or three sessions were not based on
economic fundamentals but rather on the psychological effects resulting
from the boost Bank of Cyprus (BoC) engineered by handing out new
investment loans to staff. BoC stocks soared for three days in a row while
the rest of the index continued to slump but the overall picture presented
was a positive one based on trading in a few chosen stocks. Yesterday the
all-share index closed at 261.5 points, a drop of 1.02 per cent. Although
trading open on a higher note than Friday's 2.67 close, optimism soon fell
and took the index with it. Volume hit a low £11.5 million as selling ruled
the day. All sectors except construction and fish farms sustained losses
ranging from 0.45 per cent in the financial sector to 4.01 in the trading
sector. The banking sector fell 0.48 per cent as heavy trading in bank
stocks led the way. BoC, which dragged the market up last week with a bout
of buying, slid back seven cents yesterday to close at £4.81 on a volume of
some £2 million. In Athens BoC shares have managed to remain stable during
the CSE break and yesterday registered no change, closing at 2,980 drachmas
(£4.98) with 70,000 shares changing hands. The general ASE index fell by
1.42 per cent and the banking sector by 1.23 per cent. Back on the CSE,
Laiki shares which usually takes their lead from the performance of BoC,
added eight cents yesterday to close at £5.79 on a volume of £1.75 million.
Elsewhere, GlobalSoft, the third most active share of the day after the two
banks, lost 12 cents to end at £5.73. The three stocks accounted for over
40 per cent the total volume of the day. Broker Demos Stavrides told Cyprus
Mail they had expected a small drop yesterday due to the recent instability
in the Greek market. "Bank of Cyprus is doing okay and it's stable," he
said. "But the remainder of the Greek market is worrying." Stavrides said
the current low level of trading on the CSE is mainly due to and apparent
lack of interest by investment companies. "They have £430 million to invest
and they are not doing so. This is worrying," he said. Stavrides said that
out of yesterday's £11 million volume, investment companies accounted for
only £4 million. The fact they are not investing makes no sense," he said
referring to the low prices on the market. "Of course if we study some
analysis, we can see that most of them are inexperienced and can't cope so
they are afraid to enter the market and are sitting back to wait and see
what will happen," he added. Stavrides said small investors were
disappointed with yesterday's session and it appeared the index was in for
a further downslide in the coming days.
[03] Twenty Turkish jets over Cyprus
AN UNPRECEDENTED 20 Turkish air-force fighters taking part in the Toros
2000 exercise yesterday violated Cyprus airspace. A Defence Ministry
spokesman said 20 F-16s flying in pairs bombed targets near Kormakitis in
the north west of the island, while two navy frigates patrolled the sea
area. The planes then flew over the occupied Kythrea, where they were
joined for the final phase of the exercise by two more F-16s, which have
been stationed in Lefkoniko since Wednesday. On Tuesday night, six F-16s
carried out night raids, hitting ground targets with live fire. Defence
Minister Socratis Hasikos yesterday said the National Guard was monitoring
the situation closely, but that the TOR-M1 anti-aircraft missile system had
not locked on to the F-16s. During the National Guard's Nikiforos exercise,
the TOR-M1s locked on to two Turkish jets flying over the island, something
described as an act of war by Turkish Cypriot leader Rauf Denktash. The
event caused jubilation amid sections of the local media, which declared
the Turkish planes had turned back after their cockpit systems warned them
they were being targeted by missiles. But according to military analysts,
the short range of the TOR-M1 - kill range is12 kilometres -- limits its
ability to tackle planes flying out of range and capable of releasing long
range, stand off missiles such as the HARM and Popeye systems, which
currently serve the Turkish air-force. HARM missiles - High speed Anti-
Radiation Missile - are aimed at suppressing enemy air defence (SEAD) and
can be released from around 50 kilometres, while the Israeli-made Popeye
could hit targets at a range of around 75 kilometres. In theory, the TOR
system could stop the stand-off missiles, said strategic analyst Aristos
Aristotelous, but that depended on the extent of the attack - planes,
missiles, electronic warfare, etc. Aristotelous said the TOR was a good
system but that air defence was a complex issue and Cyprus "had a long way
to go". "It needs a lot of work. It's not like before but it still needs
work," he added.
[04] `Dud Slovak guns being dumped with the National Guard'
A BATCH of artillery pieces of dubious reliability ordered by the Greek
Defence Ministry have been earmarked for delivery to the National Guard, a
Greek defence magazine has reported. According to the monthly magazine,
Strategiki (Strategy), Greece in May signed an agreement to procure 12
155mm self-propelled Slovak-made Zuzana guns. Strategiki claims the guns
were destined for Cyprus in accordance with an agreement between the two
countries to deploy the Russian-made S-300 missiles to Crete instead of
Cyprus. Greece has agreed to pay Cyprus £91 million, which had been already
paid to Russia for the missiles, Strategiki said. The magazine claims the
money would be returned in the form of military aid, the Zuzanas being part
of that aid. But according to the magazine, the Slovak-made gun is
unreliable, to say the least, suggesting there were better options for
Cyprus in the international market. Last February, when the reports first
emerged, Greek newspaper Pontiki published the results of an investigation
that appeared to substantiate the reports that the gun was problematic.
Quoting a report drawn up by a committee of Greek officers who had watched
a demonstration of the weapon, Pontiki said all but one of the rounds fired
failed to hit the target - or did not discharge at all because of
malfunction. At the time, Pontiki said, the Slovak army was not even using
the gun, Greek officers' questions concerning the system were not answered,
and the unit's fire control centre was still under development. Despite the
findings, which according to the newspaper would have been enough to scrap
the project, procedures for its acquisition continued and a committee was
sent to assess the gun anew. The findings of the second committee
apparently mirrored the first assessment, including misfires. The gun was
also unable to use a variety of ammunition - the specifications said the
gun should be able to use all modern NATO ammunition - effectively limiting
its range compared to other systems. But the newspaper said Greece went
ahead with the deal and purchased the gun, saying its "operational
capabilities have been confirmed". The paper charged that having realised
they were useless, Greece decided to dump the Zuzanas on Cyprus. The
Defence Ministry was yesterday unavailable for comment on the issue.
[05] Travel agent hits back at government criticism of Istanbul trip
THE NICOSIA travel agent organising a trip to Istanbul at Christmas
yesterday hit back at the government and the press for their hostile
attitude towards his holiday plan. The matter first came to public
attention earlier this month when Tsangaris Tours advertised the last
remaining places on the package tour in two Greek newspapers. Some 40
people signed up for the holiday. Interest was so strong that Christodoulos
Tsangaris said he was planning a second visit for spring 2000. The
government issued a statement on Tuesday warning that Cypriot passport
holders were barred from entering Turkey on a tourist visa. But Tsangaris
flew back from Athens yesterday, after handing in the visa applications for
his group to the Turkish Embassy. It is his fifth visit to the embassy, and
he has been assured that the necessary arrangements can be made once he has
made all the bookings. The Turkish Embassy confirmed to the Cyprus Mail
last week that Cypriots were eligible to visit Turkey, provided they flew
in with a visa. The Foreign Ministry on Tuesday expressed its fear that
Cypriots could be left stranded in case of accident or emergency, because
there is no Cyprus Embassy in Turkey. But Tsangaris interpreted the
government's intervention as tantamount to an attempt to restrict the
movement of free citizens. "What do you mean, if there is an accident? Is
the Cyprus Government always going to send an ambulance if someone is hurt
abroad?" he wondered. He said none of the 40 participants had decided to
cancel their holiday. "Most of them have called me and told me that I have
their support. They fear nothing from the Turks, but instead they are
frightened from people in Cyprus who are writing and shouting about it," he
said. Tsangaris expects to hear whether the visa applications have been
granted by the Embassy in Athens within 10 days. He said insurance would be
finalised after that, but said the local company he dealt with had raised
no objections to insuring a Greek Cypriot party bound for Turkey.
[06] Government hopes Denktash will return to the talks
THE GOVERNMENT said yesterday it hoped the Turkish Cypriot side would take
part in the sixth round of UN-led proximity slated for the end of January
in Geneva. The message came on the eve of Turkish Cypriot leader Rauf
Denktash's departure for Turkey to discuss his participation in the next
round. Government Spokesman Michalis Papapetrou told his daily press
briefing yesterday that the only way to find a settlement in Cyprus was
through a dialogue under UN auspices. He confirmed that the Greek Cypriot
side would be in Geneva, provided that nothing came up until then to force
President Glafcos Clerides to reassess his position. Tension has arisen in
the past two weeks over Turkey's relations with the EU -- which has
inserted a call to Ankara to support the settlement talks in its latest
assessment of Turkey's accession bid -- and on Cyprus` participation in a
future European army. Denktash warned again yesterday that if the Greek
Cypriot side pursued its present course and was accepted into a EU army, he
would break off all contact. "In the event that the EU accepts, there will
be no reason whatsoever to talk to the Greek Cypriots and we will break off
our relations by increasing the wall between us," he said. Denktash is also
angry at a non-paper that UN chief Kofi Annan gave the two sides during the
fifth round of talks in Geneva earlier this month. Papapetrou said the
government hoped the Turkish Cypriot side would return to the negotiating
table in January, although there hadn't been any change in Turkey's stance
on the Cyprus problem. Referring to Denktash's talks in Ankara, Papapetrou
said: "We are waiting for their decision. We expect and hope that Denktash
will come to the negotiating table as this is the only way for a settlement
to the Cyprus question to be reached, under the UN aegis." Papapetrou said
the Greek Cypriot side was looking forward to the dialogue and believed
this was the only way a settlement could be found. UN special envoy Alvaro
de Soto, the mediator in the ongoing proximity talks is due on the island
on December 3 for a two-day visit when he will have contacts with both
sides.
[07] British expert insists Cyprus beef is safe
By a Staff Reporter
A BRITISH expert has said Cyprus beef is free from all risks of BSE
contamination and is perfectly safe to eat. His words of reassurance come
in the midst of a frenzy of media scare stories about the menace could lurk
in the island's herds. According to yesterday's Politis, there are fears
that bull sperm imported to Cyprus from France could have introduced the
BSE virus in local cattle. An agreement drawn up between Cyprus and France
in 1998 has brought over 22,000 sperm samples to the island. The last
French sperm injected into Cyprus cows was in 1999. BSE is thought to
spread through feeding meat and bone feed to cattle. But Dr Roger Dawson,
Secretary General of the UK Animal Health Distributors, who is currently in
Cyprus, said cattle here was fed exclusively on vegetable materials, grain,
soya and crop products. Cyprus banned the use of meat meal for cattle in
1990, a practice not stopped in the UK until 1996. Cyprus has adopted
precautionary measures against BSE for a number of years. The government
announced on Wednesday that calf exports to Lebanon and Israel had reached
20,000 over the last four years, citing increased demand as a validation of
safe beef in Cyprus. Dawson recommended this month that the UK Food
Standards Agency halt beef imports from EU countries, where there is doubt
about the content of cattle feed. He blamed the recent outbreak of BSE
fear on "the stupidity of the French and Germans in carrying on feeding
meat and bone meal to their livestock, while continuing to ban the import
of British beef." Meanwhile Alithia newspaper went public with reports
that some 15 to 20 flocks of sheep were in quarantine after cases of
scrapie, the ovine equivalent of BSE, had been detected. But Dawson
dismissed scrapie as harmless to humans. "Sheep in many countries have had
scrapie for centuries. It has never passed to human beings," he said.
British sheep are still under scrutiny to ensure no strand of BSE has
passed from British cattle to British flocks. "It is a reasonable
precaution, but it doesn't mean that sheep are any less safe than they have
been for centuries," he affirmed. Both the Veterinary Department and the
Agriculture Minister, Costas Themistocleous, who is abroad, were yesterday
unavailable for comment. The government intends to buy a testing system
from Ireland to facilitate mass testing of all cattle under the age of 30
months, in keeping with the latest EU policy regarding the problem.
[08] Unions strike against CoLA
TWELVE trade unions representing semi-government workers at the island's
ports and airports yesterday staged a three-hour strike to protest changes
to the Cost of Living Allowance (CoLA). Services to the public were not
affected. Strikers included some Cyprus Airways (CY) pilots and engineers,
but no flights were affected. A company source said the strikers had made
arrangements to ensure services would not suffer. The strike lasted from
11.30am to 2.30pm. Around 50 people marched to the House of Representatives
in Nicosia, where a letter of protest was presented to House President
Spyros Kyprianou. The strike was part of a series of measures being
organised by left-wing umbrella union PEO to protest against what they call
the annihilation of CoLA, the six-monthly index-linked allowance added to
wages to cover inflation. The unions are demanding a return to the system
that existed before the government removed consumer tax increases from the
CoLA calculation in 1999. "Our position is based on the fact that this
arrangement will scrap CoLA," a statement from the union said. "It has
already deducted 1.95 per cent from the allowance and not only this, but
the government's decision goes back on social agreements without the
consent of all the social partners that signed the deal." PEO said the
government's position was negative and offensive to the majority of working
people and their trade unions, and vowed to continue their battle with
further measures. "The escalation of measures is not our choice. We are
forced to do this because of the stubbornness of the government," the union
said.
[09] More illegal immigrants on the loose, police say
By a Staff Reporter
POLICE were yesterday looking for 14 Syrian illegal immigrants believed to
have arrived on the island by boat on Tuesday night. One of the Syrians was
arrested, and yesterday appeared before the Famagusta district court
sitting in Paralimni. Investigating officer Tassos Vassiliou told the court
that the 25-year-old suspect, Khaled Lotfi, was arrested near Cape Greco on
Wednesday afternoon. Vassiliou added that three more men were with Lotfi
but managed to escape despite a police chase. The suspect claimed that only
the four of them had arrived at Cape Greco on a fishing boat at midnight on
Tuesday. Police, however, refuted this claim, citing information
suggesting the illegal immigrants actually numbered 15. Vassiliou told
Judge Yiasemis Yiasemi that the Syrians' destination was Larnaca, where the
former employer of one of the men had been waiting for them. Police said
they had testimony that the employer was to provide the men with food and
lodging. At this point, the suspect interjected: "Lies, lies: everything
the investigating officer said are lies." Lotfi was remanded in custody for
eight days. Last week, 45 illegal immigrants, among them six women and 13
children, were arrested in the Cape Greco area. The influx has prompted the
government to take immediate measures for reinforcing the coastguard, which
in recent weeks has been stretched to the limit.
Cyprus Mail 2000
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