Amidst the continued Chinese Stock market crash and the shaky local political scene, the Lebanese Bourse followed the global bearish equity trend. In details, the BLOM Stock Index (BSI) dropped by a weekly 1.85% to reach an 87-week low of 1,147.29, broadening its year-to-date loss to 1.96%. Nevertheless, the volume of traded shares increased over the week as the average traded volume and value went up from 93,184 shares worth $965,131 to 132,754 shares worth $1.59M. In addition, the market capitalization decreased from $9.84B to $9.66B.
However, the BSI managed to outperform the S&P Pan Arab Composite Large-Mid-Cap Index and the Morgan Stanley Emerging Markets Index (MSCI) which recorded respective weekly losses of 3.03% and 2.08%, respectively. Meanwhile, the BSI was outpaced by the S&P AFE 40 Index which declined by a weekly 1.71%.
On the regional front, the two week bearish trend of international oil prices where Brent crude oil declined by 9%, coupled with tumbling Chinese equities have negatively impacted Emerging stock markets. Arab Bourses in particular suffered, as no Arab bourse ended in the green over the week. In details, Saudi Arabia’s Stock Market was the worst performer, dropping by a weekly 5.10%, followed by Muscat’s Stock Exchange with decline of 4.48%, over the same period. The Egyptian bourse also downturned by 4.17% weekly, despite the government announcing the suspension of a 10% tax on capital gain and the reduction of income tax rate to 22.5%
Back to the Beirut Stock Exchange, the banking sector captured 78.0 % of the total traded value during the week while the real estate sector grasped 20.5% and the industrial sector 1.5%.
BLOM Bank’s listed and GDR lost 1.50% and 3.00% over the past week to close at $9.40 and $9.70, respectively. In addition, listed and GDR shares of Bank Audi declined weekly by the same amount of 0.33% to settle at respective quotes of $5.98 and $5.97. Byblos listed shares also dropped by 1.83% to end up at $1.61, over the same period.
The BLOM Preferred Shares Index fared better, losing only 0.25% to 104.92 points. In details, Audi preferred shares class “H”and BLOM preferred shares 2011 down ticked by 0.10% and 0.49% to end the week at $100.60 and $10.10, respectively. Meanwhile, Byblos preferred shares 2008 and 2009 declined weekly by respective amounts of 0.50% and 1.27% to $100.50 and $100.70.
In the real-estate sector, Solidere shares classes “A” and “B” plunged by 6.48% and 4.37% to $10.24 and $10.29, respectively, heavily affected by the demonstrations and riots in the downtown area.
In the industrial sector, HOLCIM shares downturned by 5.04% to settle at $14.51.
As domestic political tensions seem on an upward trend, they will constitute a heavyweight factor impacting the Lebanese stock market in the coming weeks. In the same context, any positive development on the political front will be reflected positively on the Beirut Stock Exchange.