The Real Estate Sector Dragged Down the Lebanese Bourse over the Week

The real estate sector continued to enervate the Beirut Stock Exchange (BSE), despite that most banks posted positive financial results for the 3rd quarter of 2015. The BLOM Stock Index (BSI) declined by 0.57% to end the week at 1,131.22 points. However, the average traded volume and value went up from 206,860 shares worth $1.49M last week, to 243,130 shares worth $1.61M. As for the market capitalization, it narrowed from $9.45B to $9.40B.

However, the BSI managed to outperform the Morgan Stanley Emerging Markets Index (MSCI), the S&P AFE 40 Index and the S&P Pan Arab Composite Large-Mid-Cap Index, which recorded respective weekly losses of 1.40%, 2.02%, and 2.76%, over the week.

Most Arab Bourses saw weekly downturns, the largest being in Abu Dhabi, Saudi Arabia, and Dubai, decreasing by 3.64%, 3.49%, and 2.36%, respectively. These declines were mainly due to low oil prices and instability in the global economy. On the other hand, the only 2 bourses that saw improvement were Muscat and Qatar, gaining weekly 0.38% and 0.17% respectively.

Back to the Beirut Stock Exchange, the banking sector captured 78.61% of the total traded value during the week while the real estate and industrial sectors grasped the remaining 21.34% and 0.05%, respectively.

In the banking sector, BLOM listed shares and Audi GDR shares gained weekly 0.53% and 0.34%, to close the week at $9.45 and $5.97, respectively. BLOM Bank has released its financials for the 3rd quarter on the 27th of October, posting profits of $290M.In contrast, Audi listed shares and BEMO listed shares lost 0.17% and 18.42% to $5.94 and $1.55, respectively. As for the performance of preferred shares, the BLOM Preferred Shares Index (BPSI) progressed slightly by 0.03% to 105.56 points. This was caused by Audi preferred shares class “F”, and BLOM preferred shares 2013 augmenting by 0.40% and 0.10% to $101.50 and $10.16, respectively.

In the real estate sector, Solidere shares classes “A” and “B” lost 2.14% and 3.40%, during the week, to $9.59 and $9.39, respectively. Worth mentioning that on Thursday, Solidere shares class “A” reached $8.92, its lowest level since 2006.

In the industrial sector, HOLCIM shares added 0.26% to end the week at $15.15.

For the coming weeks, the BSE will remain affected by the uncertainty on the political front.

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