The BSI fell This Week Amid A Failing Forensic Audit Scheme

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis fell by 2.2% to reach 604.54 by the week ending November 27, 2020. However, the Market capitalization on the Beirut Stock Exchange (BSE) decreased by 2.2% to reach $6.19B on November 27, 2020. Moreover, the average volume and value of trades this week totaled 76,321 shares worth $541,639 traded, compared to 82,584 shares worth $719,018 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 1.44% and 1.46% respectively. In addition, the MSCI rose by 2.43%.

In the Arab World, the bourses of UAE, Qatar, and Bahrain were the top gainers increasing by 4.89%, 1.81% and 1.18% respectively. In details, UAE had received Mr. Franck Riester, Minister Delegate for Foreign Trade and Economic Attractiveness on 24^th and 25^th of November. He was received by Mr. Ahmed Ali Al Sayegh, Minister of State and Chairman of Abu Dhabi Global Market (AGDM) and discussed France’s willingness to partner with the UAE in future projects, such as renewable energy, transport and sustainable cities, and greening of the economy, ahead of the GITEX innovation and technologies trade fair, which will take place in Dubai from 6 to 10 December 2020.

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 89.82%. The banking sectors grasped the remaining share of 10.18% with no shares traded in the industrial sector as of this week. The most noteworthy trades throughout the week included:

• Blom GDR shares dropped by a weekly 6.40% to $1.90/share
• Blom listed shares dropped by a weekly 26.26% to $2.05/share
• Byblos shares rose by a weekly 10.20% to $0.54/share
• Solidaire (A) shares dropped by a weekly 0.44% to $15.78/share
• Solidaire (B) shares rose by a weekly 0.57% 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 dropped weekly by 6.40% to reach $1.90. It’s worth mentioning that Audi and Blom had announced the delisting of their Global Depositary Shares (the “GDSs”), respectively, from the London stock exchange and Luxembourg stock exchange. The last trading day in London Stock Exchange for Blom GDR and Audi GDR was on the 24^th of November and 16^th of November 2020, respectively.

This week, Lebanon failed to form a new government due to political conflict following the falling apart of the forensic audit scheme last week. However, in today’s parliament discussions, most parties and political authorities supported carrying out the forensic audit considering it a prerequisite to foreign financial assistance and negotiations with the IMF, in hopes to attain part of Lebanon’s obligatory reforms and to rebuild confidence in Lebanon’s institutions.