The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis rose weekly by 0.02% to reach 604.69 by the week ending December 04, 2020. The Market capitalization on the Beirut Stock Exchange (BSE) recorded weekly an uptick of 0.02% to reach $6.20B on December 04, 2020. Moreover, the average volume and value of trades this week totaled 109,002 shares worth $743,011 traded, compared to 76,321 shares worth $541,639 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 slightly increased by 0.05% and 0.22% respectively. In addition, the MSCI rose by 0.80%.
In the Arab World, the bourses of Bahrain and Qatar were the top gainers increasing by 1.96% and 1.70%, respectively. In details, Bahrain is still enforcing Covid-19 restrictions and implementing public health measures to help minimize number of infectious cases. Moreover, Bahrain authorities have started accepting applications and issuing work permits after having suspended the process in March, thus ensuring their economic stability.
We also note that the bourse of Kuwait and Saudi went down by is 0.51% and 0.21%. In fact, Kuwait is witnessing problems with illegal workers, thus providing expatriates with a grace period until the end of December to readjust their status and comply with labour regulations.
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 65.09%. The banking and industrial sectors grasped the share of 18.80% and 16.11%, respectively as of this week. The most noteworthy trades throughout the week included:
- Blom GDR shares rose by a weekly 5.26% to $2.00/share
- Blom listed shares dropped by a weekly 2.44% to $2.00/share
- Byblos shares dropped by a weekly 3.70% to $0.54/share
- Solidaire (A) shares rose by a weekly 1.20% to $15.97/share
- Solidaire (B) shares dropped by a weekly 0.32% to $15.75/share
- HOLCIM Liban shares rose by 0.15% to $13.05/share
As for the BLOM Preferred Shares Index (BPSI), it remained unchanged this week and reached 48.75 points.
This week, Lebanon is still struggling to cope with the rising of Covid-19 cases which explains why mild restrictions are enforced this week, such as social distancing and curfew in addition to the Higher Defense Council’s recommendation to extend the general mobilization period in Lebanon until March 2021. Moreover, on Thursday, President Michel Aoun had announced the low probability of forming a new government soon, explaining that Prime Minister-designate Saad Hariri is facing difficulties with forming a cabinet of nonpartisan specialists, noting that the absence of structural reforms will further threaten the country’s economic conditions and food security with its adverse effect on capital markets.