The BSI dropped amid Governmental Uncertainty

12/2/20208/1/2021% Change
BLOM Stock Index           679.77            656.883.48%
Average Traded Volume         169,210            26,551537.30%
Average Traded Value         928,625          300,230209.30%

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis increased by 3.48% since January 8, 2021 to reach 679.77. The Market capitalization on the Beirut Stock Exchange (BSE) increased from $6.73B to $6.97B on February 12, 2021. Moreover, the average volume and value of trades this week totaled 169,210 worth $928,625, compared to 26,551 shares worth $300,230, during the week ending January 8, 2021.


Regionally, the major Arab markets witnessed a better performance this week. In details, the MSCI increased weekly by 2.90%, the S&P Pan Arab Composite index added 2.18%, and the S&P AFE 40 index grew by 1.38%. In the Arab World, the bourses of Saudi Arabia and Tunisia were the top gainers this week increasing by 4.70% and 0.67% respectively. In the month of February, the Crown Prince of Saudi Arabia, His Royal Highness Mohammed bin Salman announced the launch of THE LINE, a revolution in urban living situated in northwest Saudi Arabia. Hoping for a new future, the project is a destination for people who dream in creating booming businesses, and re-initiating environmental protection.

Meanwhile, the bourses of Abu Dhabi, Morocco and Egypt were the worst performers this week declining by 2.91%, 1.71%, and 0.63%, 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 83.22%. The banking sector grasped a share of 15.39% and the industrial sector held a share of 1.39%. The most noteworthy trades throughout the mentioned period included:

  • BLOM GDR shares dropped by 3.64% to $2.12/share
  • Audi Listed shares increased by 10% to $1.32/share
  • Byblos (C) shares added 2% to $0.51/share
  • Solidaire (A) shares rose by 6.38% to $19.68/share
  • Solidaire (B) shares went up by 6.07% to $19.4/share
  • HOLCIM Liban shares decreased by 6.90% to $13.50/share

As for the BLOM Preferred Shares Index (BPSI), it remained unchanged this week at 47.08 points.

More than three weeks after the start of the total lockdown in Lebanon, the number of reported COVID-19 daily cases remained high. Overall the country has reported over 300,000 cases which is more than 5 % of the Lebanese population. The tight restriction on movement across the country is compounded by a financial crisis and an explosion in August that had already brought the health system into the collapse.

As an immediate action, Lebanon will have to prioritize building better institutions, good governance, and a better business environment, along physical reconstruction. However, given the lack of sufficient Foreign Exchange reserves, international aid and foreign investments will be essential for the recovery. The speed of aid depends on whether the authorities can act rapidly on the reforms. Moreover, without them there can be no sustainable recovery and the social, financial, and economic situation will continue to worsen. And that will also reflect on the prospects for the BSE.


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