The BSI Slightly Dropped This Week Driven by the Lebanese Political Situation Ambiguity

The BLOM Stock Index (BSI) compiled daily by BLOMInvest Bank witnessed a weekly downtick of 0.26% to reach 618.15 on November 20, 2020. In addition, the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 0.25% to reach $6.33B on November 20, 2020. Moreover, the average volume and value of trades this week totaled 82,584 shares worth $719,018 traded, compared to 45,522 shares worth $558,822 traded last week.

Regionally, the major Arab markets witnessed a positive performance this week. In details, the S&P AFE 40 Index and the S&P Pan Arab Composite Large Mid Cap Index slightly increased by 0.32%, and 0.89% respectively. In addition, the MSCI rose by 1.55%. In fact, the emerging markets bounced back this week after the Lira Turkey improved against the dollar driven by a new policy rate adopted by the Turkey’s central bank.

In the Arab World, the bourses of Saudi Arabia and UAE were the top gainers increasing by 1.70% and 2.35%, respectively. The bourse of Qatar was the top loser decreasing by 1.03%. The good performance on Saudi Arabia and UAE market is attributed to positive news about trials of Moderna Vaccine for Covid-19. As a result, the oil price increased by 1.54% this week, which rose expectations for an early rebound in the Arab market.

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 95.92%. Meanwhile, the banking sector grasped the remaining share of 4.08%. The most noteworthy trades throughout the week included:

• Blom GDR shares dropped by a weekly 9.78% to $2.03/share
• Audi GDR shares rose by a weekly 0.92% to $1.10/share
• Byblos shares rose by a weekly 2.08% to $0.49/share
• Solidaire (A) shares rose by a weekly 0.19% to $15.85/share
• Solidaire (B) shares dropped by a weekly 0.95% to $15.71/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 22.50% to reached $0.49.  It’s worth mentioning that Blom intends to delist from the London stock exchange. In details, the last trading day in London Stock Exchange for Blom GDR, will be on November 24, 2020.

With failing to from a new government due to political conflict, Lebanon might lose his last chance to save the Lebanese economy through the IMF program. The Lebanese stock market with low trade volume cannot be a reliable source to measure the health of Lebanese economy, however it can reflect the hard situation in all sectors, (Real estate, Banking and industrial sectors). Meanwhile our outlook for the Lebanese market will remain negative.