The BSI Reveals Improvement for this Week

Lebanon’s Bourse observed a slight improvement this week, where the BLOM Stock Index (BSI) rose 0.12% to reach 1,224.62 points. As such, market capitalization on the Beirut Stock Exchange (BSE) increased from $10.29B to $10.30B this week.

 Nonetheless, the average traded volume and value on the Lebanese bourse respectively increased from last week’s 330,145 shares worth $2.77M to 841,417 shares worth $2.98M this week.

When compared to regional indices, the BSI followed its regional peers’ upward trend; however, it was outperformed by the Morgan Stanley (MSCI) Emerging Markets, S&P Pan Arab Composite LargeMidCap, and the S&P AFE40 indices, which recorded respective weekly rises of 2.44%, 1.01%, and 1.49%.

In the Arab world, all stock markets closed in the green this week, with the three best performers being Dubai, Abu Dhabi, and Qatar. In details, Dubai and Abu Dhabi’s stock markets surged 5.88% and 4.84%, respectively, as blue chips in the UAE rose, such as Emaar Properties’ price which recorded an 8.50% weekly rise.  Also, Qatar’s index rose 1.41% end of this week.

The banking sector constituted the largest share this week of 90.35% out of the total value traded on the Lebanese Bourse. In details, BLOM listed shares and BLOM GDRs registered respective rises of 0.58% and 1.83% to close at $10.36 and $11.10. Also, Audi common shares rose by a weekly 0.90% to $6.76. However, Audi GDRs and Byblos common shares witnessed respective declines of 1.32% and 1.18% to reach $6.75 and $1.67.

As for the Bourse’s preferred shares, the BLOM Preferred Shares Index (BPSI) increased by a weekly 0.60% to 105.58 points, where Audi preferred “F”, Audi preferred “G”, and Byblos Preferred 2009 rose by a weekly 1.98%, 0.40%, and 3.26% to stand at $103, $101.5, and $104.5, respectively. Worth mentioning, Bank Audi will increase its capital to LBP 672,334,681,824 ($445.99M) Through the issuance of 2.5M new Preferred Series “I” shares.

As for the real estate sector, which constituted 9.55% of the total weekly traded value, Solidere A shares dropped by a weekly 1.34% to $11.04, while Solidere B shares rose by 0.36% to $11.14

In the manufacturing sector, HOLCIM shares plunged 1.36% to $13.07.

On the London Stock Exchange, BLOM GDRs and Solidere GDRs registered respective gains of 0.92% and 0.91% to stand at $10.95 and $11.10, while Audi GDRs fell 0.74% to $6.75.

For the coming weeks, activity on the Lebanese bourse is expected to slow down ahead of Christmas and New Year’s holidays. However, if a political agreement was reached regarding the cabinet formation before the year end, then this may spur positive hopes among investors.

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