The Cabinet Formation Impasse Keeps the Activity on Lebanon’s Bourse Shy this week

 The BLOM Stock Index (BSI) declined by a weekly 0.53%, to stand at 1,043.25 points by July 06, 2018. The downtick was mirrored by the market capitalization which stalled from last week’s $10.34B to $10.14B this week.

Similarly, activity on the BSE weakened over the week’s five trading sessions, with a traded average of 91,742 shares worth $663,461 as compared to last week’s 385,729 shares worth $2.46M.

The MSCI Emerging Markets Index and the S&P AFE 40 rose by a weekly 0.73% and 0.66%, respectively, while the S&P Pan Arab Composite Large Mid Cap Index lost 0.24%.

Regionally, the worst performers included the bourses of Saudi Arabia, Dubai, and Lebanon which recorded losses of 1.11%, 0.62%, and 0.53%, respectively. However, the stock markets of Bahrain, Qatar and Tunisia registered weekly gains of 0.68%, 1.28%, and 0.16%, respectively.

On the Beirut Stock Exchange (BSE) this week, the banking sector grasped the largest share of the total traded value with 48.99%, while the real estate and industrial sectors grasped the remaining shares of 44.2% and 6.8%, respectively.

In the banking sector, BLOM Bank and Audi Bank listed shares declined by 0.48% and 4.76% to reach $10.45 and $5, respectively. Meanwhile, Audi GDR and Byblos listed shares rose by a weekly 1.96% and 2.07%, to $5.2 and $1.48, respectively.

On the London Stock Exchange, Bank Audi GDR shares increased from $5.1 to $5.2 this week.

In the real estate sector, Solidere A and B shares both recorded weekly gains of 0.28% and 3.12% to reach $7.25 and $7.27, respectively.

In the manufacturing sector, Holcim Liban shares rose by 3.42% over the week to $16.03 and the increase is linked to the dividend distribution announced on July 3rd by the company. The shares are expected to decline following the ex-dividend date.  

The activity on the Lebanese stock market remained shy this week largely due to the continuous Cabinet formation impasse fueled by political bickering. The activity on the Lebanese bourse will largely depend on creating a favorable climate that can speed up the government formation.

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