The BSI slightly Rose Despite Government Deadlock Formation

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis rose weekly by 1.27% to reach 612.37 by the week ending December 11, 2020. The Market capitalization on the Beirut Stock Exchange (BSE) recorded weekly an uptick of 1.27% to reach $6.27B on December 11, 2020. Moreover, the average volume and value of trades this week totaled 238,092 shares worth $1M traded, compared to 109,002 shares worth $743,011 traded last week. In fact, this week witnessed a remarkable trade activity in different sectors compared to last weeks.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 Index, the S&P Pan Arab Composite Large Mid Cap Index and the MSCI increased weekly by 0.22% and 0.33% and 1.26% respectively. In fact, Oil futures settled higher this week, with the global Brent crude benchmark above $50 for the first time in nine months, on progress toward a U.S. COVID-19 vaccine that may lead to a boost in the economy next year. In the Arab World, the bourses of Dubai and Abu Dhabi were the top gainers this week increasing by 2.26% and 2.91%, respectively. Meawhile, the bourses of Bahrain , Kuwait and KSA were the top lossers this week declining by 0.41%, 0.42% and 0.36%, respectively.

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 70.55%. The banking and industrial sectors grasped the share of 29.03% and 0.42%, respectively. The most noteworthy trades throughout the week included:

• Blom GDR shares rose by a weekly 1.50% to $2.03/share
• Blom listed shares dropped by a weekly 10% to $1.80/share
• Audi GDR shares rose by a weekly 5.45% to $1.16/share
• Audi Listed Shares by rose a weekly 10% to $1.21/share
• Solidaire (A) shares rose by a weekly 0.88% to $16.11/share
• Solidaire (B) shares dropped by a weekly 4.57% to $16.47/share
• HOLCIM Liban shares rose by 0.38% to $13.10/share
• Ciments Blancs (N) shares rose by 10.80% to $4/share

As for the BLOM Preferred Shares Index (BPSI), it dropped this week and reached 47.08 points due mainly to:

• Byblos Preferred 08 shares rose by a weekly 0.03% to $40/share
• Byblos Preferred 09 shares dropped by a weekly 18.12% to $40/share

 Prime Minister-designate Saad Hariri’s optimism about breaking the weeks  long Cabinet deadlock was soon  dampened by a counter-proposal presented by President Michel Aoun to Hariri’s draft Cabinet lineup, thus creating  more uncertainty to a swift cabinet formation.

The trading activity in the coming week will be largely defined by the developments on the political front which usually go hand-in-hand with investors’ confidence in the Lebanese market.