Lebanon’s Stock Index in the Red this Week

 The BLOM Stock Index (BSI) ended the week with a 0.20% drop to reach 1,225.25 points. During the week, 48,061 shares worth $539,489 were traded on average compared to 122,865 shares worth $1.36M last week, respectively. Moreover, the market capitalization fell from $10.58B last week to $10.56B this week.

Despite the losses during this week, the BSI outperformed some of its regional peers. In details, the MSCI Emerging Markets Index, S&P Pan Arab Composite LargeMidCap and the S&P AFE40 declined by 1.65%, 0.90%, and 0.95%, respectively.

Regionally, most of the stock exchanges witnessed a downturn with Qatar, Abu Dhabi, and Dubai experiencing the largest weekly losses of 1.87%, 1.72%, 1.38%, respectively.

In Lebanon, the banking sector accounted for 36.18% of the total traded value on the Beirut Stock Exchange.

BLOM Bank’s listed and GDR shares grew by 0.43% and 2.08% to end the week at $11.7 and $12.75, respectively. Bank Audi’s GDR shares fell by 0.60% to reach $6.66.

As for the BLOM Preferred Shares Index (BPSI), it witnessed a weekly drop of 0.21% to 106.22 points. This drop came due to the fall in BLOM Preferred 2011 shares by 1.90% to $10.30.

In the real estate sector that accounted for the largest share of total traded value this week that reached 61.81%, Solidere A and B shares respectively lost 3.59% and 4.36% to $9.12 and $9.

In the industrial sector, Holcim’s shares escalated 9.85% to reach $12.60.

On the London Stock Exchange (LSE), BLOM Bank GDR shares increased by 1.99% to $12.80, while Solidere and Bank Audi’s GDR shares fell by 7.41% and 1.93% to $6.62 and $9.25, respectively.

The disagreement on a new electoral law and the government’s budget draft disturbed investors’ appetite this week. As such, further delays in consensus might drag down the BSI and negatively impact the investment sentiment in the coming weeks.