Arab Stock Markets Down in Q1 Following the Coronavirus Outbreak and Oil Slump

The BLOM Stock Index (BSI) slipped by a weekly 0.35% to stand at 599.11 points on April 3, 2020 while the Market capitalization on the Beirut Stock Exchange (BSE) also fell by 0.35% to $6.05B this week. Meanwhile, activity on the BSE rose this week, as shown by the Average traded volume and value increasing from last week’s 23,216 shares worth $207,458 to this week’s 2,419,583 shares worth $3.27M. In fact, 9M shares of Bank Audi worth $12.16M were traded on Friday 03,2020.

In the MENA region, Stock markets slumped to multi-year lows in the first quarter of this year over coronavirus shutdowns and crashing oil prices. The majority of the losses were sustained in March which saw the collapse of the OPEC+ production cut agreement and the implementation of shutdowns to counter the spread of coronavirus, bringing most businesses to a standstill. Moreover, Oil prices fell on Friday, coming off their biggest one-day gains in the previous session after United States President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce US production.

As a result, the regional indices, MSCI Emerging Markets Index and S&P AFE 40 declined weekly by 1.50% and 0.06% respectively.  Meanwhile The S&P Pan Arab Composite Large Mid Cap Index rose by 2.03%.

In terms of market performers, most of the MENA bourses were in red this week. In details, the bourses of Kuwait, Egypt and UAE recorded the weekly drops of 4.51%, 4.62% and 4.77%, respectively.

On the Beirut Stock Exchange (BSE), the banking sector grasped the highest of the total trading value at 89.31%, while the real estate and industrial sectors grasped the remaining share of 10.64% and 0.05%, respectively.

In the real estate sector, Solidere “A” and  Solidere “B” shares recorded a weekly uptick by 9.90% and 1.65% each to reach  9.99$ and 9.25$, respectively

In the Banking sector ,the most significant price decreases recorded among Banks’ traded shares over the week were:

  • Audi Bank Listed shares by 10% to $1.35.
  • Byblos Bank Listed shares by 7.41% to $0.75

Worth mentioning that Beirut Stock Exchange (BSE) announced that as of March 23rd 2020, an additional 188,789,011 common shares issued by Bank Audi will be listed on the BSE. In fact, on March 18th 2020, Bank Audi announced the completion of its capital increase phase 1.

As for the Blom Preferred shares Index (BPSI), it remained unchanged and ended the week at 66.67 points.

On the London Stock Exchange, BLOM  Bank’s GDR shares increased  by 11.70% to end the week at $1.90.

In  the manufacturing sector, Ciment Blanc (N) shares rose  by a weekly 5.45% to stand at $2.90.

 

 

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