| 04/11/2016 | 28/10/2016 | % Change | |
| BLOM Stock Index* | 1,217.62 | 1,226.59 | -0.73% |
| Average Traded Volume | 402,122 | 2,131,976 | -81.14% |
| Average Traded Value | 2,823,196 | 8,303,506 | -66.00% |
Though a president was elected earlier this week, and after witnessing a couple of weeks of improving performance, the Lebanese bourse recorded a slight downward correction this week. Hence, the BLOM Stock Index (BSI) registered a 0.73% weekly fall to 1,217.62 points. Accordingly, market capitalization on the Beirut Stock Exchange (BSE) declined from $10.32B last week to $10.24B this week
Moreover, the average traded volume and value on the Lebanese bourse respectively plunged from last week’s 2,131,976 shares worth $8.30M to 402,122 shares worth $2.82M this week.
The BSI outperformed some of regional equities, as the Morgan Stanley (MSCI) Emerging Markets index registered a 2.25% loss during this week. Moreover, both the S&P Pan Arab Composite LargeMidCap Index and the S&P AFE40 observed respective declines of 1.23% and 1.52%.
As for Arab stock exchanges, the best performer of the week was the Egyptian bourse after the central bank floated the currency in an attempt to resolve its currency shortage and raised interest rates by 300 basis points, hence the pound depreciated by 32.3% to $/EGP 13. The Egyptian index was followed by the Saudi index which recorded a 1.38% rise on the second week of the new bond issue. However, the Qatari bourse declined the most during this week, with a loss of 1.84%. As a Reuter’s poll published, this fall was mainly due to fund managers expressing their concern about high valuations in Qatar, hence expecting to cut allocations to that market within the next three months. Moreover, Dubai and Bahrain’s gauges registered respective drops of 0.68% and 0.59%.
The banking sector grasped the largest share this week of 52.50% out of the total value traded on the Lebanese Bourse. In details, BLOM Bank’s GDR shares gained 1.45% to close at $10.50. Moreover, Audi common shares rose by 0.96% to stand at $6.30. Meanwhile, Byblos Bank registered a decrease of 1.20% to $1.65. Also, BEMO shares fell from $1.67 to $1.60.
As for the BLOM Preferred Shares Index (BPSI), it grew by 0.19% to 104.88 points due to the rise in 5 main stocks. In details, Audi Preferred class “F” and “G” shares witnessed respective rises of 1% and 0.20% to $101.5 and $102, respectively. Moreover, Byblos preferred 2008 and 2009 increased by 0.40% and 0.20% to $101.50 and $101.60, respectively. BEMO Preferred 2013 shares also grew by 0.50% to reach $100.
The real estate sector, contributed to 47.50% of the total weekly traded value with Solidere A and B shares falling from $12.48 and $12.22 last week, to $11.84 and $11.74 at the end of this week.
On the London Stock Exchange, most stocks witnessed drops in their prices. Solidere GDRs, BLOM GDRs and Audi GDRs respectively fell by a weekly 3.42%, 0.47%, and 0.63% to $11.30, $10.50, and $6.32.
Even with a new president and positive bank results, the BSE index failed to maintain its positive performance. The BSE’s performance in the upcoming weeks will highly depend on the political agreements regarding the Cabinet formation.