The Lack of Positive News had its Toll on Lebanese Stocks

The banking and industrial sector lagged this week causing the Beirut Stock Exchange (BSE) performance to decline. In details, the BLOM Stock Index (BSI) recorded a weekly downtick of 0.34% to 1,190.03 points, narrowing its year-to-date gain to 1.69%.

 As for the average traded volume, it went up to settle at 131,496 shares worth $1,307,087 compared to 55,747 shares amounting to $717,401. In the same context, market capitalization contracted from $10.05B to $10.02B.

 On a comparative scale, the BSI outpaced the S&P Pan Arab Composite Large-Mid-Cap Index, the S&P AFE 40 Index and the Morgan Stanley Emerging Markets Index (MSCI), which lost a weekly 0.83%, 0.80% and 3.27%, respectively.

 On the regional front, oil prices slightly fell by 0.86% from April 30th weighing heavily on some GCC Bourses. This was illustrated in Dubai’s stock market being the worst performer, decreasing by 2.97%, followed by Abu Dhabi and Saudi Arabia with respective weekly downturns of 1.98% and 1.24%. Dubai and Abu Dhabi’s stock market tumbled as investors opted to cash out on a high, following the highest weekly gains in 15 months. Saudi-Arabia’s stock market also lagged despite alleged reports that their promise to open their doors for foreign investors next month is still on going. 

 Small gains characterized some positive performance in some Arab stock markets, with Qatar being the best performer, increasing by 0.97% from April 30th, while Egypt and Amman gained respectively 0.76% and 0.46% over the same period. The uptick in the Egyptian Bourse might have been on the back of the Central Bank selling $298M (the highest amount sold in an auction since the inception of the policy in Dec 2012) to creditors in order to stop the ongoing dollar shortage.

 Back to Lebanon, the banking sector grasped 88.91% of total traded value, while the real estate sector contributed to the remaining 11.09%.

 In the banking sector, Audi listed and GDR shares lost 0.48% and 0.76% to close at $6.17 and $6.56, respectively. Furthermore, Byblos Bank common shares down ticked by 2.84% to settle at $1.71. In contrast, BLOM GDR shares and BEMO Bank listed shares gained 3.63% and 0.53% to close the week at $10.00 and $1.89.

 The BLOM Preferred Shares Index (BPSI) marginally augmented by 0.12% to 105.78 points, on the back of Bank Audi preferred shares class “F” and Byblos Preferred shares 2008 increasing respectively by 0.30% and 1.48% to $100.30 and $102.60. These increases were partially offset by BLOM preferred shares 2011 declining by 0.68% to $10.15.

 The real estate sector saw a mixed performance, where Solidere shares class “A” rose by 1.08% to $11.25, while that of class “B” edged down by 0.09% to settle at $11.14.

 In the industrial sector, HOLCIM shares plunged by 9.78% to close the week at $14.66.

 Looking ahead, an improvement in the stock market activity will depend on the maintenance of a stable security situation, and positive developments of some economic indicators including the actual fiscal deficit and the one projected in the government budget of 2015

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