No Improvements in the Lebanese Stock Exchange this Week


As no improvement was denoted on the Lebanese scene, the Lebanese stock market dropped further this week, where the BLOM Stock Index (BSI) dropped by 0.49% from last week’s value to reach 1,145.11 points. As such, the Beirut Stock Exchange’s (BSE) market cap dropped from $9.52B to reach $9.47B on August 19th 2016.

Due to last week’s high cross trades, both average traded volume and average traded value fell from 1.09M shares to 65,224 shares and from $11.31M to $479,427, respectively.

Moreover, the BSI lagged behind the S&P Pan Arab Composite LargeMidCap Index, the S&P AFE40, and the Morgan Stanley (MSCI) emerging index which recorded respective weekly rises of 0.14%, 0.98%, and 0.97%.

All of the Arab bourses, except for Qatar and Dubai stock markets, witnessed negative performances during this week. The Qatari stock market index rose 3.33%, mainly due to the expectations of fund inflows as the FTSE will be promoting Qatar on September 19 from a frontier market to an emerging market. The Dubai bourse registered a weekly rise of 1.37%.

As for this week’s worst performers, Saudi Arabia stock markets recorded a drop of 1.55%, although oil prices recuperated from last week’s levels. Egypt bourse’s fall of 0.72% can be attributed to the financial results of Amer group, a real estate firm, which depicted a 60% decline y-o-y in its net income. Moreover, each of the Bahraini and Jordanian stock markets plunged by a similar 0.65%, from last week’s level.

On the BSE, the banking sector grasped 69.34% of total traded value. Audi and Byblos common stocks’ prices dropped 1.61% and 1.23% to $6.10 and $1.60, respectively. However, BLOM GDR shares’ price rose 0.40% to $10.10.

As for the preferred shares, the BLOM Preferred Shares Index (BPSI) escalated by 0.15% to 104.51 points, mainly due to the respective rises of 0.2% and 0.10% in Audi Preferred “H” and “F” shares that both converged to the same price of $101.00. Similarly, Byblos Preferred 2008 and Byblos Preferred 2009 increased 0.9% and 0.1% to $101.00 and $100.20, respectively.

In the real estate sector, which occupied 30.64% of total traded value, Solidere class “A” mounted 0.32% to $9.53, while Solidere class “B” shares fell 1.99% to $9.35.

The industrial sector witnessed some fluctuations this week. This resulted from the plunging prices of both Holcim and Ciments  Blancs Bearer shares’ price by 0.28% and 10% to $14.21 and $2.70, respectively.

On the London Stock Exchange, all GDRs observed an increase, with BLOM GDR and Audi GDR prices climbing 1.00% and 0.33% to $10.10 and $6.12 by the end of the week. Also, Byblos and Solidere GDRs respectively rose 6.67% and 0.32% to $80.00 and $9.38.

As expected, trading activity declined further this week. Unless any new positive political change develops, the performance of the Lebanese Bourse will on dwindling.

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