The BSI Down This Week Amid Deadlock in the Government’s Formation

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a weekly downtick of 0.21% to reach 615.15 by the week ending September 25, 2020 and the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 0.22% to reach $6.30B on September 25. Moreover, the average volume and value of trades this week totaled 87,009 shares worth $1.25M traded, compared to 834,865 shares worth $1.20M traded last week.

Regionally, the major Arab markets witnessed a negative activity this week. In details, the S&P AFE 40 , S&P Pan Arab Composite Large Mid Cap Index and the MSCI Emerging Markets Index dropped weekly by 0.99%, 1.05% and 4.43%, respectively. In the Arab World, the bourses of Dubai, Qatar and KSAt were the week’s top losers retreating by 2.95%, 1.55% and 1.22%, respectively. Meanwhile the bourses of Bahrain and Kuwait were the week’s top gainers adding by 3.52% and 1.05%, respectively.

On the Beirut Stock Exchange (BSE), Lebanon’s real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 89.81%. The banking sector grasped the remaining share of 10.19%. The most noteworthy trades throughout the week included:

  • Solidere “A” shares, which declined by a weekly 1% to $15.81/share.
  • Solidere “B” shares increased by 0.25% to $15.81.

As for the BLOM Preferred Shares Index (BPSI), it remained unchanged this week and reached 50.16 points

On the London Stock Exchange, Audi and BLOM GDR shares increased weekly by 5% and 3.03% to $0.42 and $1.70, respectively.

Further delays in the formation of the government despite French intervention does not bode well for the markets and for the economic recovery. Notwithstanding the good performance of the real estate sector made in such conditions the prospects of the BSI remain bleak

 

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