The BSI down This Week As Government Crisis Persists

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis declined weekly by 2.18% to reach 601.77 by the week ending October 2, 2020 and the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 2.18% to reach $6.16B on October 2. Moreover, the average volume and value of trades this week totaled 81,804 shares worth $1.18M traded, compared to 87,009 shares worth $1.25M traded last week.

Regionally, the major Arab markets witnessed a positive activity this week. In details, the, S&P Pan Arab Composite Large Mid Cap Index and the MSCI Emerging Markets Index rose weekly by 0.43% and  2.56%, respectively.  Meanwhile, the S&P AFE 40 recorded a weekly downtick of 0.12%. 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 Qatar, Egypt and KSA were the week’s top gainers adding by 2.22% , 1.28%  and 0.71%, 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 96.14%. The industrial sector grasped the remaining share of 3.56%. The most noteworthy trades throughout the week included:

  • Solidere “A” shares, which declined by a weekly 5.31% to $14.97/share.
  • Solidere “B” shares dropped by 5.19% to $14.99
  • HOLCIM shares rose by 5.92% to $12.71
  • Ciments Blancs (N) shares declined by 15.56% to $3.80.

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 remained unchanged this week and reached $0.42 and $1.70, respectively.

The BSE weak performance this week is mainly related to Cabinet formation efforts which remain stalled by sharp differences among rival factions over the shape and size of the next government. Moreover, the economic and social situation will aggravate in the upcoming week given the Corona Crisis. In details, the government announced a weeklong lockdown of 111 towns and villages across the country due to a high number of coronavirus infections.

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