Lebanon’s Bourse observed a slowdown this week, where the BLOM Stock Index (BSI) fell 1.09% to reach 1223.20 points. As such, market capitalization on the Beirut Stock Exchange (BSE) dropped from $10.40B to $10.29B this week.
Nonetheless, the average traded volume and value on the Lebanese bourse respectively increased from last week’s 219,818 shares worth $2.40M to 330,145 shares worth $2.77M this week.
When compared to regional indices, the BSI was outperformed by some of its regional peers, where the Morgan Stanley (MSCI) Emerging Markets, S&P Pan Arab Composite LargeMidCap, and the S&P AFE40 indices registered respective weekly rises of 0.31%, 2.59%, and 2.04%.
In the Arab world, as OPEC has agreed to cut production by 4.5 percent, to 32.5 million barrels per day, in order to boost oil prices, all gulf countries were positively affected. As such, Saudi Arabia’s stock index registered the largest gain for this week with a rise of 4.37%. Similarly, Qatar and Kuwait’s indices witnessed respective rises of 2.05% and 0.28%. However, Bahrain’s stock index dropped 0.72% this week.
The banking sector constituted the largest share this week of 87.82% out of the total value traded on the Lebanese Bourse. In details, BLOM listed shares and BLOM GDRs registered respective rises of 0.93% and 0.98% to close at $10.30 and $10.90. However, Audi common shares and Audi GDRs fell by 0.74% and 2.29% to reach $6.70 and $6.84, respectively. Also, BLC common shares plunged this week from $1.69 to $0.99.
As for the Bourse’s preferred shares, the BLOM Preferred Shares Index (BPSI) declined by a weekly 0.01% to 104.95 points, where Byblos preferred 2008 rose 0.69% to $102, while Byblos Preferred 2009 dropped by a weekly 0.78% to $101.20.
As for the real estate sector, which constituted 12.03% of the total weekly traded value, Solidere A shares and Solidere B shares respectively fell by 2.87% and 1.86% to $11.16 and $11.10.
In the manufacturing sector, HOLCIM shares dropped 2.07% to $13.25.
On the London Stock Exchange, Audi GDRs and Solidere GDRs registered respective losses of 2.86% and 2.22% to stand at $6.80 and $11.00, while BLOM GDRs increased 1.40% to $10.85.
As the Cabinet formation delays, investors are losing hope for additional political improvement. Hence, failing to agree on the electoral law and cabinet formation would lead to further losses in the BSI.