The BSI Maintained its Correction Pattern After the President Elections

The Lebanese Bourse registered a marginal fall this week, where the BLOM Stock Index (BSI) dropped by a weekly 0.04% to 1,217.12 points. Accordingly, market capitalization on the Beirut Stock Exchange (BSE) declined by $4.2M to $10.24B this week.

Moreover, the average traded volume and value on the Lebanese bourse respectively fell from last week’s 402,122 shares worth $2.82M to 181,622 shares worth $2.72M this week.

The BSI was outperformed by some of its regional peers, as the S&P Pan Arab Composite LargeMidCap Index and the S&P AFE40 observed respective rises of 5.02% and 4.84%. However, The Morgan Stanley (MSCI) Emerging Markets index registered a 0.89% loss during this week.

In the Arab world, The Egyptian bourse witnessed a significant improvement in its gauge, where the index rose by a weekly 21.31% after last week’s currency float and subsequent devaluation. The Egyptian index was followed by the Saudi index which recorded a 7.72% weekly rise, as the Riyadh government stated its aim to settle its unpaid debts to the public sector by the end of the year. However, the Dubai index and the Tunisian bourse observed respective marginal falls of 0.74% and 0.18%.

The banking sector grasped the largest share this week of 64.70% out of the total value traded on the Lebanese Bourse. In details, BLOM Bank’s GDR and BLOM listed shares gained 0.95% and 1% to close at $10.50 and $10.10, respectively. Moreover, Audi common shares and Audi GDRs rose by 1.59% and 2.17% to reach $6.40 and $6.58, respectively. Also, Byblos Bank listed shares registered a rise of 1.21% to $1.67.

As for the BLOM Preferred Shares Index (BPSI), it fell by 0.02% to 104.86 points. In details, Audi Preferred class “F” and Byblos Preferred 2008 witnessed respective falls of 0.49% and 0.30% to $101 and $101.2, respectively. Moreover, Byblos preferred 2009 increased by 0.40%  to $102.10.

The real estate sector grasped 20.06% of the total weekly traded value with Solidere A and B shares dropping from $11.84 and $11.74 last week, to $11.35 and $11.38 at the end of this week.

The manufacturing sector contributed to 15.24%, with HOLCIM shares falling 2.97% to $15.33 while Ciments-Blancs shares rose 0.74% to $2.72.

On the London Stock Exchange, Solidere GDRs  fell 1.77% to reach $11.10, while Audi GDRs rose by 3.64% to $6.55.

Two weeks following the election of the President, the BSI started its correction pattern especially that no final agreement was reached concerning the Cabinet formation. As such, any new political development will dictate the performance of the Lebanese Bourse in the coming period.

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