Slight Improvement Seen in the BSE during the Week Ending October 3, 2014

Activity on the Beirut Stock Exchange (BSE) took place, during the week ending October the 3^rd, 2014, at a high average volume of 2.55M traded shares amounting for $15.59M, compared to 791,450 shares worth $6.36M, last week. Audi listed stocks were the most traded this week, with an average daily traded volume of 2.50M shares, due to the issuance of 50M new Audi common shares that started to be traded on the 30th of September.

Lebanese equities improved slightly, where the BLOM Stock Index (BSI) progressed by 0.07% to close the week at 1,174.41 points with a year-to-date gain of 2.11%. As for the market capitalization, it broadened by $307.91M to settle at $9.71B.

The BSI outperformed the Morgan Stanley Emerging index (MSCI) which shed for the fourth week in a row by 3.23% to 992.53 points, the S&P AFE40 Index that lost 0.39% to 74.87 points. However, the BSI failed to top the S&P Pan Arab Composite Large Midcap Index that gained 0.12% to reach 163.07 points.

Among Arab Bourses, the top performers this week were Saudi Arabia’s Bourse, Egypt’s Stock Exchange and Muscat’s equity market increasing by 0.80%, 0.31% and 0.28%, respectively.

In contrast, Dubai’s stock exchange was the worst performer for the week, falling by 1.90%, due to the Emaar Malls Group (EMG) shares that started trading on Dubai’s bourse. These shares, which are not yet included in Dubai’s main index, drew the attraction of investors who rushed to buy EMG shares and sold their other shares. Tunis equity market came in second, losing 0.77%, followed by the bourses of Qatar and Abu Dhabi that dropped by 0.32% each.

 Back to the BSE, the banking sector contributed for 97.67% of total traded value and was followed by the real estate sector that took 2.28% share of the total.

In the banking sector, BLOM GDR shares were the only traded shares in the banking sector to post a weekly increase in price, adding 0.32% to $9.50. In contrast, Byblos listed shares and Audi GDR shares fell by 0.61% and 0.81%, to end the week at $1.63 and $6.00, respectively.

Likewise, the BLOM Preferred Stock Index (BPSI) inched up by 0.01% to 104.78 points. The slight increase was triggered by the performances of Byblos preferred 2008 shares that increased by 0.10% $100.70.

In the real estate sector, Solidere shares class “A” and “B” gained 1.25% and 0.25% from last week to close at $12.11 and $12.00, respectively, surpassing $12.00 mark.

In the industrial sector, HOLCIM shares added a marginal 0.07% to $15.01.

In the manufacturing sector, RYMCO shares lost 2.35% to $3.32.

For the week to come, an improvement in investors’ appetite remains affected by developments in the political, security and economic fronts of the country. Unless a president were elected or a consensus were reached concerning the salary scale and other draft laws, activity on the BSE is expected to remain frail.