| 14/10/2016 | 07/10/2016 | % Change | |
| BLOM Stock Index* | 1,164.01 | 1,163.61 | 0.03% |
| Average Traded Volume | 33,698 | 1,793,580 | -98.12% |
| Average Traded Value | 316,988 | 18,241,182 | -98.26% |
Positively impacted by the current political talks, the Beirut Stock Exchange (BSE) continued to improve for the sixth week in a row with the BLOM Stock Index (BSI) registering an accumulated increase of 1.78%. In specific, the BSI rose this week by a mere 0.03% to 1,164.01 points with the market capitalization adding $103.34M to settle at $9.69B. The weekly progress in the market capitalization can partly be linked to the listing of 4M Bank of Beirut preferred shares class “K” on October 10, 2016.
However, activity on the BSE seemed to have contracted when compared to last week as revealed by the average traded volume that shed from 1.79M shares worth $18.24M to 33,698 traded shares worth $316,988.
Moreover, the BSI was outperformed by the S&P Pan Arab Composite LargeMidCap Index, which witnessed a weekly rise of 0.23%. However, the Morgan Stanley (MSCI) emerging markets index and the S&P AFE40 lagged behind the Lebanese gauge with respective weekly drops of 2.88% and 0.10%.
Regionally, no major changes occurred this week on the Arab stock markets. The Egyptian stock index recorded a 1.63% weekly rise, mainly due to reports on a $2B deposit at the Egyptian Central Bank from Saudi Arabia. Also, Saudi Arabia and Muscat’s indices observed respective rises of 1.11% and 0.90%. In contrast, Abu Dhabi and Dubai’s indices marginally lost 0.97% and 0.59%, respectively.
The banking sector grasped the largest share of 65.45% out of the total value traded on the Lebanese Bourse. BLOM listed and GDR shares lost weekly 0.99% and 0.78% to $10.00 and $10.22, respectively. Audi GDRs and common shares rose by 0.64% and 0.65% to $6.25 and $6.24, respectively. Byblos common shares also added 1.84% to end the week at $1.66.
As for the BLOM Preferred Shares Index (BPSI), it regressed by 0.74% to 104.03 points. This fall was mainly caused by the 1.08% decline in Audi preferred “G” shares to reach $100.70.
The real estate sector, contributing to 34.24% of total weekly traded value, witnessed mixed performance this week. In fact, solidere class “A” shares continued their increase this week following the release of positive H1 results last week as they rose by 0.52% compared to the increase of 2.80% last week to $9.61. In contrast, the class “B” shares witnessed a correction this week declining by 1.64% compared to an increase of 3.28% last week, thus converge to $9.60.
As for the manufacturing sector, HOLCIM shares dropped by 0.90% to reach $14.37.
On the London Stock Exchange, Solidere GDRs increased by 2.63% over the week to stand at $9.75, while, Audi GDRs fell 0.96% to $6.19.
The positive vibes deriving from the increased political talks about a potential breakthrough when it comes to the election of a new president continued to positively impact activity on the Lebanese Bourse. Still, investors’ optimism could start fading in the coming weeks, even before the expected parliamentary session in October 31st, if no progress was achieved.