By 10 am Beirut time , the firm's A shares had risen 12.17 percent to $28.49 and its B shares were up 12.04 percent to $28.01 percent. The market index rose 5.59 percent.

On Thursday, an Arab League mediation mission sealed an agreement that ended fighting between ruling coalition supporters and Hezbollah, which is backed by Iran.

"The market has been influenced by yesterday's deal and the high expectations that the Lebanese were looking for. Therefore the increase in the market strictly related to the political situation," Firas Hassan, financial analyst at Arab Finance Corporation, told Reuters.

"For the time being, the market has potential to rise even higher, especially if there's a positive solution in Qatar," he said, referring to talks to resolve Lebanon's wider political crisis, which will be held in the Gulf state.

Solidere, the country's largest company by market value, recently said it had agreed to jointly develop a $60 billion project on the UAE emirate of Ajman's coastline.

Earlier this month, Solidere's general manager said profits were likely to match last year's levels of $130 million.

Former prime minister Rafik al-Hariri, who was assassinated three years ago, founded Solidere in 1994 to rebuild downtown Beirut after the 1975-1990 civil war.

Photo: The hezbollah tents in down town Beirut . Solidere owns all the buildings and the infrastructure of down town Beirut . Hezbollah erected the tents to protest against the government and to overthrow the prime minister . There is hope that the dialogue talks in Doha will end the Hezbollah sit-in protest in downtown Beirut and that is why the market reacted so positively after the announcement of the deal by Qatari Foreign Minister