Stagnation of the Stock Market despite the Positive Performance of Solidere Shares

On the Beirut Stock Exchange, the BLOM Stock Index (BSI) rose by 0.05% during the week to 1,148.25 points. The average traded volume and value increased from last week’s 67,941 shares worth $576,242 to 81,401 shares worth $765,983. Over the past week, the market capitalization on the Beirut Stock Exchange increased from $9.47B to $9.48B.

The BSI outperformed all three of its regional peers since the S&P Pan Arab Composite Large-Mid-Cap Index, the Morgan Stanley Emerging Markets Index (MSCI) and the S&P AFE 40 Index recorded weekly losses of 5.20%, 2.13% and 5.95%, respectively.

The only two Arab bourses with a positive performance this week were Tunisia and Amman with gains of 2.34% and 0.20%, respectively.

However, mass sell-offs and investors pulling out of the market led the Egyptian stock exchange to plummet by 15.38%. As for stock markets in Gulf countries, they all suffered the impact of lower oil prices and growing concerns over the health of the global economy. Saudi Arabia’s equity market lost a weekly 6.22% with the Tadawul Stock Market Index reaching its lowest level since March 2011. Qatar’s stock exchange followed suit with a 5.96% weekly drop, Dubai and Abu Dhabi’s markets fell by 5.09% and 4.35%.

On the Beirut Stock Exchange, the banking sector captured 92% of the total traded value during the past week while the remaining 8% were accounted for by real estate sector.

In the banking sector, BLOM Bank’s listed shares gained 0.53% to $9.50 while Bank Audi’s listed shares shed 0.83% to $6.00.

As for the performance of preferred shares, it was contrasted and resulted in a minor 0.01% weekly uptick in the BLOM Preferred Shares Index (BPSI) to 105.87 points. Bank Audi’s preferred F and G shares lost 0.10% and 0.30% to close at $101.60 and $100.90, respectively. BLC’ Preferred B shares also lost 0.98% to $101.50. Meanwhile, Bank Byblos’ preferred 08 and 09 shares added 0.10% and 0.50% to end the week at $101.30 and $101.10, respectively.

In the real estate sector, Solidere A shares gained 0.70% to $10.05 while Solidere B shares rose by 0.81% to $9.91, after they slipped below the $10 mark over the week.

Looking ahead, rising political tensions and announced delays in the plan for exporting garbage might hinder the performance of the Beirut Stock Exchange.


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