Commentary:

On Monday, 19 July 1999 the CISCO All-Share Index broke through the 1.000-point threshold for the first time in the market's 151/2-year history! From then on, it continued rising at a brisk pace, appearing determined not to let go of the newly conquered highs. The CISCO Index closed on Thursday, 22 July 1999 at 1.107,8 points, after a weekly surge of 191,9 points or 21%!

Abounding investor euphoria was evidenced since last week when subscription lists for the Louis Cruise Lines IPO opened (Monday, 12 July). The issue was an astounding success since the Company announced that:

• A total number of 20.389 applications were received for 1.271.885.625 shares (worth £508.754.250), i.e. an oversubscription of 53 times! Out of the total applications, 76 applications for a total of 71.130.662 shares concerned moneys deposited in foreign currency accounts.
• The Board of Directors of Louis Cruise Lines Ltd, decided according to the relevant allotment policy provisions contained in the Prospectus, to allot 2.500.000 shares to 76 travel agents that cooperate with the Company. The remaining 21.250.000 shares to be issued shall be strictly allotted pro-rata at the rate of 1,67% on the number of shares applied for by each applicant.
• Upon allotment of the shares and the Warrants to the shareholders, fractional entitlements between 0,1 and 0,5 have been ignored, while fractional entitlements between 0,6 and 0,9 have been allotted as an extra share/warrant.
• The letters of allotment, the share certificates and the certificates of the Warrants, as well as the amounts that will be reimbursed, are to be posted on 26 July 1999, according to the relevant CSE regulations.
• Trading of the shares and warrants on the CSE is expected to commence within the first days of August 1999. The exact date will be set by the CSE and will be announced next week.

Bank of Cyprus also announced this week that it has secured the Central Bank's permission to list 50% of its share capital on the Athens Stock Exchange (ASE). The Bank of Cyprus' shares listing on the ASE shall finally be possible provided that:

• Clearance and settlement procedures regarding the transactions effected through the ASE are agreed upon by all parties involved.
• A resolution is passed at an EGM (expected to take place within the second fortnight of September 1999) for the issue of 10% of the Company's share capital in Greece (which in essence constitutes the approval to list the BOC shares on the ASE).
• The relevant procedures regarding the issue of 10% of the share capital in Greece are completed.
• The relevant application in accordance with ASE regulations is submitted.
• The ASE Board of Directors approves the listing of BOC shares on the ASE.

Volume of transactions:

Technical Analysis:

Volume of transactions reached record levels with demand forces outweighing supply during the week with banking stocks driving investor's appetite for investments. Thursday's gains are mainly attributed to the repositioning of some investors in the banking sector.

The ADX Indicator attempts to measure the trending quality of the market by isolating those periods where the market is not trending, i.e. it measures the strength of the prevailing trend. A rising ADX (usually above the 25 level) indicates a strong underlying trend while a falling ADX suggests a weakening trend, which is subject to reversal. ADX was higher this week closing at 65,00.

The long-term 45-day moving average continues moving on an upward slope and breaking new record levels, and accompanied by a healthy moving ADX indicates that the current trend is now intensifying. Small periods of correction in prices are seen as a "break" to the market's steep ascend.

Prepared by
THE CYPRUS INVESTMENT AND
SECURITIES CORPORATION LIMITED (CISCO)
22 July 1999.