The Beirut Stock Exchange (BSE) progressed for the second week in a row, as fears of a potential war with Israel eased and as banks posted sustainable growth in earnings for the fourth quarter of 2014. The BLOM Stock Index (BSI) recorded a 1.68% weekly increase to 1,190.62 points.
Trade activity improved over the week, with adaily average of 258,178 shares worth $3.07M, compared to an average volume of 101,620 shares worth $603,794 the previous week. As for the market capitalization, it widened by $164.54M to $9.95B.
Among its regional peers, the BSI trailed the S&P AFE Index and the S&P 40 Pan Arab Composite Large Midcap Index, which gained 3.34% and 3.08%, respectively. However, the BSI was able to outperform the Morgan Stanley Emerging Markets Index (MSCI), which added 0.93% compared to last week.
In the Arab World, all stock markets witnessed weekly increases due to rebounding oil prices. Dubai’s financial market was in the lead with a 5.77% weekly rise, followed by Qatar’s stock market with a 5.22% gain and a 3.40% improvement for each of Saudi Arabia’s bourse and that of Abu Dhabi.
Back to the BSE, the banking sector contributed 88.85% of total traded value, followed by the real estate sector and the industrial sector with respective shares of 10.91% and 0.24%, respectively.
In the banking sector, positive earnings for the fourth quarter of 2014 continued to lift the banks’ common shares. Audi listed and GDR shares and Byblos listed shares gained 5.07%, 6.15%, and 3.07% to $6.42, $6.90, and $1.68, respectively.
The BLOM Preferred Stock Index (BPSI) posted a weekly decrease of 0.02% to 105.90 points. The preferred shares of BEMO 2013 lost 0.99% to $100.
In the real estate sector, Solidere shares class “A” saw a 0.55% weekly improvement to $11, while class “B” shares dropped 0.55% to end the week $10.93.
In the industrial sector, HOLCIM shares added 0.07% to $15.01.
Looking ahead, activity on the BSE is expected to maintain its uptrend. The banks positive earnings for the fourth quarter of 2014 would keep on boosting investor sentiment, in the coming weeks.