The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a weekly loss of 0.30% to reach 619.23 by the week ending November 06, 2020 and the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 0.30% to reach $6.35B on November 06, 2020. Moreover, the average volume and value of trades this week totaled 64,321 shares worth $637,288 traded, compared to 76,070 shares worth $1.10M traded last week.
Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 Index and the S&P Pan Arab Composite Large Mid Cap Index increased by 1.53%, and 1.67% respectively. In addition, the MSCI rose by 4.11%. The increase of MSCI is explained by the fact that all emerging markets, especially Chinese market, turned positive as the result in the US election, favors Joe Biden over Donald Trump.
In the Arab World, the bourses of Saudi Arabia and UAE were the top gainers increasing by 2.29% and 1.24%, respectively. Abu Dhabi index closed up to 0.6%, with First Abu Dhabi Bank rising 1.2%.
On the Beirut Stock Exchange (BSE), Lebanon’s real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 95.46%. The banking sectors grasped the remaining share of 4.54%. The most noteworthy trades throughout the week included:
- Blom GDR shares rose by a weekly 5.71% to 2.59$/share
- Audi GDR shares rose by a weekly 15.79% to 1.10$/share
- Audi listed shares, dropped by a weekly 10.43% to $1.03/share
- Byblos shares rose by a weekly 4.55% to $0.46/share
- Solidaire (A) shares rose by a weekly 0.06% to $15.80/share
- Solidaire B shares rose by a weekly 1.09% to $15.80/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 6.76% to reached $0.60 .Meanwhile Audi GDR dropped weekly by 8.57% to reach $0.32.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. The last trading day in London Stock Exchange for Blom GDR, and Audi GDR will be in 24 November, and 16 November, 2020 respectively.
Lebanese stock market is still suffering, the performance of the banking sector in the market is poor due to Lebanese financial crisis, and the contraction in Lebanese economy. Further, the real estate companies like solidaire had a good performance during this week, as their prices improved from the beginning of the year, noting that investors are investing in real estate in order to liberate their money from banks. However, Lebanese market is affected by the domestic and region political situation; and with the failure to form a new government, and without the IMF aid or intervention, our outlook for the Lebanese market will be negative.