BLOM Stock Index Recorded a Weekly 0.61% Decrease to 1,176.62 Points

The Beirut Stock Exchange regressed this week, as the BLOM Stock Index (BSI) recorded a weekly 0.61% downturn to close at 1,176.62 points after the security situation deteriorated again following battles in north of Lebanon.

The average traded volume went up from 58,498 shares worth $693,898 to 85,447 shares worth $661,163. As for the market capitalization, it narrowed by $60.72M since last week to $9.83B.

Despite the decrease, the BSI still managed to outperform its regional peers. The Morgan Stanley Emerging Markets Index (MSCI), the S&P AFE40 Index and the S&P Pan Arab Composite Large Midcap Index posted declines of 2.54%, 2.66% and 2.07%to 986.91 points, 65.51 points and 140.44 points, respectively.

In the Arab World,the BSI was outperformed by the stock markets in Egypt, Jordan and Tunisia, whose bourses posted increases of 1.42%, 0.86% and 0.02% to respective 9458.57 points, 2145.85 points, and 4981.97 points.

Meanwhile, OPEC’s decision to maintain oil production levels has kept prices low, and in turn dictated another poor week for most Arab financial markets. The two worst performers were Dubai and Muscat, due to Saudi Arabia exporting oil at prices up to $2 per barrel cheaper than their Emirati and Omani counterparts (with respective drops of 7.19% and 5.19%). Qatar also suffered from low oil prices, with the stock market losing 4.37%.

Back to the BSE, the banking sector contributed around 59.87% of total traded value and was followed by the real estate sector with a share of 40.13%. In the banking sector, Byblos listed shares, BEMO listed shares and Audi GDR shares increased by 1.23%, 1.16% and 2.36% to respectively close at $1.64, $1.75 and $6.50. On the other hand, Audi listed shares and BLOM listed shares lost a weekly 1.89% and 0.57% to $6.22 and $8.75.

The BLOM Preferred Stock Index (BPSI) also weakened, posting a 0.09% downturn to 105.53 points, as Byblos preferred shares 2009 lost 1.36% to $101.60. In contrast, Audi preferred shares class “F” gained 0.99% to $102.00. In the real estate sector, Solidere shares classes “A” and “B” halted their two-week improvements, and revealed weekly losses of 2.06% and 3.15% to $11.41 and $11.36, respectively.

Looking forward, we expect the Lebanese stock market to continue its downward trend throughout the coming week, negatively affected by renewed battles between the army and enemy militant forces.

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