Weak activity continued on the Lebanese stock market despite initiatives to expedite government formation

The BLOM Stock Index (BSI) slipped by a weekly 0.46%, to 1,038.5 points by the week ending July 13^th. The market capitalization also retreated from last week’s $10.14B to $10.09B this week.

However, the average volume traded on the BSE this week stood at 148,792 shares worth $1.7M, compared to last week’s 91,742 shares worth $663,461.

The MSCI Emerging Markets Index, the S&P AFE 40, as well as the S&P Pan Arab Composite Large Mid Cap Index all concluded the week in the green, rising by a weekly 1.51%, 1.56%, and 1.69%, respectively.

On a regional level, the worst performers included the stock markets of Egypt and Tunisia which recorded losses of 2.54% and 0.48%, respectively. Meanwhile, the region’s top gainers were the bourses of Bahrain, KSA, and Abu Dhabi, as they recorded weekly gains of 1.52%, 1.38%, and 2.03%, respectively.

On the Beirut Stock Exchange (BSE) this week, the banking sector grasped the lion’s share or 91.85% of the total trading value, while the real estate sector grasped the remaining share of 8.15% of the total.

In the banking sector, BLOM Bank and Byblos Bank listed shares fell by 2.39% and 2.7% to reach $10.2 and $1.44, respectively. BLOM GDR shares also dipped by 0.95% to stand at $10.4. Meanwhile, Audi GDR and Listed shares recorded weekly upticks of 5.77% and 0.2%, to $5.5 and $5.01, respectively.  

As for the Blom Preferred shares Index (BPSI), it recorded a rise of 0.68% to end the week at 94.19 points. In details, the climb is attributed to:

• 4.76% weekly uptick in the shares of Bank Audi Pref “J” to $97.95,
• 0.6% weekly rise in the shares of Bank of Beirut Preferred “K” to $25.15,
• 1.05% weekly drop in the shares of Bank Audi Pref “I” to $94.

On the London Stock Exchange, Bank Audi GDR shares increased from $5.2 to $5.35 this week, while BLOM GDR shares retreated from $10.5 to $10.3.

In the real estate sector, Solidere A and B shares recorded weekly downticks of 0.41% and 2.06% to reach $7.22and $7.12, respectively.

A swift government formation remains a top priority for Lebanon. The activity on the Lebanese bourse continued to be subdued despite initiatives taken this week to defuse political rifts to expedite a government formation, including a session scheduled on July 17^th next week to elect members of the parliamentary committees prior to government formation.