The BSI dropped amid Governmental Uncertainty

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis decreased by 0.33% since February 12, 2021 to reach 677.53. The Market capitalization on the Beirut Stock Exchange (BSE) slightly decreased from $6.97B to $6.94B on February 19, 2021. Moreover, the average volume and value of trades this week totaled 1,533,905 worth $3,344,518, compared to 169,210 shares worth $928,625, during the week ending February 12, 2021. Interesting to note that this week witnessed heightened uncertainty on the formation of government.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P Pan Arab Composite index increased weekly by 0.08%, while the S&P AFE 40 index and the MSCI retreated by 0.61% and 0.19%, respectively. In the Arab World, the bourses of Saudi Arabia and Bahrain were the top gainers this week, the first increased 1.38%, and the second went up by 1.29%.

Meanwhile, the bourses of Qatar, Abu Dhabi, and Egypt were the worst performers this week declining by 2.42%, 2.1%, and 1.42%, respectively.

On the Beirut Stock Exchange (BSE), the banking sector grasped the lion’s share of the BSE’s trading value with a stake of 60.06%. The Lebanon’s real estate sector grasped a share of 38.71% and the industrial sector held a share of 1.23%. The most noteworthy trades throughout the mentioned period included:

  • BLOM GDR shares added 43% to $2.32/share
  • BLOM Listed shares went up by 6.28% to $2.20/share
  • Audi Listed shares increased by 2.27% to $1.35/share
  • Byblos Preferred 08 slumped by 18.60% to $35.00/share
  • Byblos Preferred 09 went down by 1.13% to $39.55/share
  • Solidaire (A) shares decreased by 2.18% to $19.25/share
  • Solidaire (B) shares retreated by 1.08% to $19.19/share
  • HOLCIM Liban shares went down by 3.70% to $13.00/share

As for the BLOM Preferred Shares Index (BPSI), it decreased by 2.17% to reach 46.06.

Lebanese stock market cannot be a reliable indicator of the healthiness of the economy in Lebanon. In fact, the low traded volume in the BSE reflects the weak appetite of the investors. The banking sector and real estate sectors should not be the only source of investments or raising equities. As such, the capital market should play a more active role in the economy.


Leave a Reply

Your email address will not be published. Required fields are marked *