The Lebanese stock market failed to improve during this week, where the BLOM Stock Index (BSI) dropped by 0.08% from last week’s value to reach 1,150.73 points. As such, the Beirut Stock Exchange’s (BSE) market cap dropped from $9.523B to reach $9.516B on August 12th 2016.
However, cross trades on BLOM and Solidere listed stocks managed to boost trading activity this week. Thus, average traded volume surged from 50,531 shares to 1.09M shares, with respective average values rising from $481,655 to $11.31M.
However, when compared to regional and emerging markets, the Lebanese index was outperformed by both S&P Pan Arab Composite LargeMidCap Index and the S&P AFE40, which rose 1.41% and 1.65%, respectively. Similarly, the BSI lagged behind Morgan Stanley (MSCI) emerging index, that increased by 3.60% during the week.
Most of the Arab bourses observed a positive performance during this week. Supported by oil prices’ weekly recovery of 4%, most of the top performers for this week were the GCC countries, with Qatar, Dubai, and Saudi Arabia registering respective growths of 2.57%, 1.49%, and 1.27%. Also, Egypt recorded a 1.48% rise in its gauge.
As for this week’s worst performer, besides Lebanon, Jordan was the only one to witness a drop in its stock exchange index. The 1.32% fall can be justified by the Al-Ahli Bank’s, one of Jordan’s top banks, financials registering more than a 50% fall in its profits for the second quarter of 2016. Moreover, the Abu Dhabi and Bahrain bourses saw almost no change in their value when compared to last week’s levels.
On the BSE, the banking sector, which grasped 97.3% of total traded value, saw mixed performance this week. Bemo and Audi’s common stocks’ prices rose 0.67% and 1.64% over the week to reach $1.50 and $6.20, respectively. BLOM GDR shares also witnessed a rise of 0.2% to reach $10.06. However, BLOM and Byblos’s listed shares’ prices fell by 1.39% and 1.82% to reach $9.90 and $1.62, similarly, Audi GDR declined 1.93% to $6.10.
As for the preferred shares, the BLOM Preferred Shares Index (BPSI) grew by 0.06% to 104.35 points, mainly due to the respective rises of 0.8% and 0.59% in Audi Preferred “H” shares and Bank of Beirut Preferred “J” shares that reached $100.80 and $25.65. The only preferred share to witness a downturn was Byblos Preferred 08, with a weekly fall of 0.10% to $100.10.
In the real estate sector, Solidere class “A” plunged 0.63% to $9.50, while Solidere class “B” shares mounted 2.47% to $9.54.
The industrial sector observed a slight change this week, with Holcim shares’ price rising 1.06% to $14.25.
On the London Stock Exchange , Solidere GDRs fell by 1.58% to reach $9.35.
As seen through the eye of the BSI, the Lebanese Stock Exchange is facing slow performance this season. As such, trading activity is expected to remain sluggish unless a new political development emerges in the near future.