Lebanon's stock exchange restarted trading on Tuesday amid intensifying efforts to halt the hostilities between Israeli troops and Hezbollah fighters.
Lebanon's stock exchange took steps to prevent panic selling
One of Beirut's main indexes, the BLOM, closed 4.1% lower at 1,230.22.
Trading hours were shortened and the exchange put a 5% limit on the amount a share could rise or fall, in an effort to control volatility.
Many shares fell the maximum 5%, including property developer Solidere and Lebanon's largest bank Blom.
"Volumes are low," said one trader in Beirut.
"There are many offers in the market but no bids. It looks like we will see more downward pressure this week."
A total of 60,270 shares traded on Tuesday, worth about $952,529 (£510,00).
Observers said that despite the concerns about the ongoing conflict, investors would probably be lured back into the market if share prices fell far enough.
It is the first time the stock market has opened since trading ended on 14 July, and it is uncertain how long it can keep operating.
Israeli forces have pushed deeper into southern Lebanon, widening their ground offensive against Hezbollah. At the same time, Israeli jets hit targets across the country.
Infrastructure Minister Binyamin Ben-Eliezer has told Army Radio that Israel's offensive will be completed within a fortnight.
Beirut Stock Exchange chairman Fadi Khalaf said: "For the time being, we are open.
"We will be in constant contact with the Finance Ministry, monitoring developments in the market and will modify the restrictions accordingly."