The BSI Slightly Up This Week as Hopes Rose by Nominating a Prime Minister to Form a New Government

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a weekly uptick of  0.90% to reach 623.97 by the week ending October 23, 2020 and the Market capitalization on the Beirut Stock Exchange (BSE) increased by 0.90% to reach $6.39B on October 23. Moreover, the average volume and value of trades this week totaled 42,934 shares worth $395,6010 traded, compared to 44,543 shares worth $661,416  traded last week.

Regionally, the major Arab markets witnessed a poor performance this week. In details, the S&P AFE 40 Index and the S&P Pan Arab Composite Large Mid Cap Index decreased by 0.77%, and 0.79% respectively. However the MSCI rose by 1.43%.This weak performance in Arab region is attributed of declining of price of oil worldwide with a collapse in demand caused by corona virus pandemic threatening to keep crude prices weak for a long time.

In the Arab World, the bourses of Bahrain, Egypt and Kuwait were the week’s top loser retreating by 2.05%, 2.96% and 2.3%, respectively. Meanwhile the bourse of UAE had slightly rose by 0.05%, boosted by real estate and banking shares, as Dubai Islamic Bank gained  1.7% after publishing 3rd Quarter 2020 Group Financial Results that witnessed an increase of total assets and fee income by 29% and 19% YTD 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 91.21%. The banking and industrial sectors grasped the remaining share of 7.87% and 0.92%, respectively. The most noteworthy trades throughout the week included:

• Solidere “A” shares, dropped by a weekly 0.06% to $15.84/share.
• Solidere “B” shares dropped by a weekly 1.07% to $15.70/share
• Byblos C shares rose by a weekly 10% to 0.44$/share
• Audi listed shares rose by a weekly 7.48% to 1.15$/share
• Audi GDR shares rose by a weekly 1% to 1.01$/share
• Blom listed shares rose by a weekly 0.36% to 2.81$/share
• Blom GDR shares dropped by a weekly 4.35% to 2.64$/shares
• HOLCIM Liban shares rose by a weekly 1.88% to 13.01$/share

As for the BLOM Preferred Shares Index (BPSI), it remained unchanged this week and reached 48.75 points.

On the London Stock Exchange,  Blom GDR shares dropped weekly by 15% to reached $0.51 .

After nominating prime minster Saad Hariri to reform a new government in Lebanon, the LBP pound has improved to 6980LL/$ in the black market, after he reached 8,300/$ last week. However, the new government will face major challenges in order to stop the country’s economic collapse. Meanwhile, the activity on the BSE will remain uncertain until serious reforms are set up.