BLOM Stock Index in the Red: Trading of Bank Shares Prevalent 

The BLOM Stock Index (BSI) fell over the week ending Aug 23^rd by 1.22% to settle at 804.47 points noting that prior to the Eid El Adha holidays, the index stood at 814.26 points on Aug. 9^th 2019.

In turn, the Market capitalization fell from $7.94B on Aug 9^th to $7.84B this week. Meanwhile, the Average traded volume of listed shares grew from 46,919 shares to 67,197 over the same period, and the Average traded value correspondingly rose from $246,912 to $430,061 this week.

The main regional equity indices also slumped, with the MSCI Emerging Markets Index losing a weekly 0.84%, while the S&P Pan Arab Composite Large Mid Cap and the S&P AFE 40 registered weekly drops of 0.81% and 0.6%.

In turn, the top gainers of the week ending Aug 23^rd were the bourses of Egypt, Qatar and Tunisia which recorded upticks of 1.08%,  0.85% and 0.05%, respectively. Meanwhile, the top losers were the bourses of Dubai and KSA which recorded the weekly down ticks of 2.44% and 1.22%.

On the Beirut Stock Exchange (BSE) this week, the banking sector continued to grasp the lion’s share or 84.14% of the total trading value, while the real estate (RE) and industrial sector each grasped 15.78% and 0.08% of the total, respectively.

In the banking sector, the listed shares of Blom and Audi lost a weekly 0.27% and 1.32% to reach $7.30 and $3.74, respectively. In turn, BLOM and Audi GDR shares also dipped by 1.39% and 1.60% to $7.10 and $3.69 this week. Meanwhile, Byblos listed shares recorded a weekly uptick of 0.88% to $1.15.

On the London Stock Exchange, BLOM and Audi GDR shares retreated by 2.78% and 4.15% to $7.00 and $3.70 this week.

As for the Blom Preferred shares Index (BPSI), it stood at 82.02 points by Aug. 23^rd 2019, having slipped by a weekly 0.64% largely owing it to declines in the prices of the following shares:

• Byblos Preferred 2009 recorded a 5.25% downtick to $65.00
• Audi Preferred H: fell by 2.67% to $73.00 this week.

In the real estate sector, Solidere A and B shares slumped by 6.29% and 4.01% to $5.96 and $5.98, respectively. However, industrial shares, namely HOLCIM’s, added a weekly 1.44% $9.89.

The activity on the Lebanese bourse was further subdued this week following the Eid, but largely due to the negative propaganda regarding a potential downgrade by S&P to Lebanon’s sovereign Credit. Nevertheless, the Cabinet had its first meeting on Thursday which interrupted the cabinet from convening following the Qabrshmoun incident on June 30^th 2019. The performance of the Lebanese stock market in the next few weeks will depend on gradually unlocking the political and economic paralysis including unlocking CEDRE funds, and national authorities showing progress in the implementation of the approved 2019 budget and reforms.