Most Financial Markets Posted Weekly Declines During the Week Ending January 9, 2015

The Beirut Stock Exchange (BSE) did not maintain its momentum it had at the start of 2015, where the BLOM Stock Index (BSI) saw a 0.34% weekly drop to close at 1,176.56 points on Friday.

Trade activity dropped over the week, with an average of 244,425 shares worth $1.53M being traded each day, compared to an average volume of 861,173 shares worth $5.02M the previous week. As for the market capitalization, it narrowed by $33.77M to $9.83B.

Despite its decline, the BSI was able to outperform 2 of its regional peers, the S&P Pan Arab Composite Large Midcap Index and the S&P AFE 40 Index, which recorded weekly decreases of 1.54% and 1.52% to 131.06 points and 60.84 points, due to the continued drop in oil prices. However, the Morgan Stanley Emerging Markets Index (MSCI) increased by 0.27% to 958.83 points.

In the Arab World, only two financial markets posted weekly increases, Egypt’s stock market and Qatar’s bourse with respective gains of 0.22% and 0.16%. The rise in the Egyptian market was mainly due to the improving political environment and the launching of the government’s medium-term economic reform plan.

In contrast, Dubai’s financial market was the worst performer, dropping 2.64%, followed by Muscat’s bourse and the Saudi financial market declines of 1.57% and 1.48%, respectively.

Back to the BSE, the banking sector contributed 89.59% of total traded value, followed by the real estate sector and the industrial sector with respective shares of 10.03% and 0.38%.

In the banking sector, Audi GDR shares and Byblos listed shares lost 4.27% and 3.61% to close the week at $6.50 and $1.60, respectively. In contrast, BLOM GDR shares, Audi listed shares and BEMO listed shares improved by 1.22%, 2.62%, and 2.29% to $9.92, $6.26, and $1.79, respectively.

Similarly, the BLOM Preferred Stock Index (BPSI) edged down by 0.10% to 105.82 points, as Byblos preferred 09 shares and BLC preferred shares class “A” dropped 0.88% and 2.91%, weekly, to $101.20 and $100, respectively. Meanwhile, Audi preferred shares class “F” and BEMO preferred 2013 shares added 0.59% and 1% to $102.80 and $101, respectively.

In the real estate sector, Solidere shares classes “A” and “B” witnessed weekly declines of 2.18% and 1.07% to $11.22 and $11.11, respectively.

In the industrial sector, Holcim shares recovered its last week’s decrease, gaining 1.64% to $15.50.

Looking forward, the BSE is forecasted to improve over the coming week, as the 4th quarter bank results are predicted to be released by next week.

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