The BSI Dropped This Week Affected by the Delisted Announcement for Audi and Blom GDR Shares

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a weekly loss of 0.46% to reach 621.08 by the week ending October 30, 2020 and the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 0.46% to reach $6.36B on October 30,. Moreover, the average volume and value of trades this week totaled 76,070 shares worth $1,10M traded, compared to 42,934 shares worth $395,601 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 2.49%, and 4.46% respectively. In addition the MSCI slumped by 1.44%. The performance of the  Arab markets is certainly affected by the global economy and the decreasing price of oil worldwide, in addition to the rise in corona virus cases.

In the Arab World, the bourses of Saudi Arabia and Qatar were the week’s top loser retreating by 7, 02% and 2.68%, respectively. Further, Saudi Arabia market recorded its lowest close in about months, as the market witnessed losses in the Industrial Investment, and Building& Construction.

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 93.02%. The industrial and banking sectors grasped the remaining share of 6.76% and 0.22%, respectively. The most noteworthy trades throughout the week included:

  • Blom GDR shares dropped by a weekly 7.20% to 2.45$/share
  • Audi GDR shares dropped by a weekly 5.94% to 0.95$/share
  • Solidere “A” shares, dropped by a weekly 0.32% to $15.79/share
  • Solidere “B” shares dropped by a weekly 0.45% to $15.63/share
  • Holcim Liban shares rose by a weekly 0.08% to $13.02/share
  • Ciment Blancs (N) shares rose by a weekly 3.14% to $3.61/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 rose weekly by 10.20% to reached $2.45 .Meanwhile Audi GDR dropped weekly by 7.20% to reach $0.35.The decrease in Audi GDR can be explained by the announcement made by Bank Audi earlier this week stating that it has applied for cancellation of the listing of its global depositary receipts (GDR) from the official list of the UK financial conduct authority. Further, Blom bank intends also to delist from the Luxembourg stock exchange and the international order book of the London Stock Exchange.

While waiting for a reforming new government and the adoption of the necessary reforms, the equity market in Lebanon will continue to suffer as there is no clear economic vision yet from the potential government.

Leave a Reply

Your email address will not be published. Required fields are marked *