BSI On Steady Increase Despite Fluctuation in Stock Prices

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis increased by 0.52% from last week to reach 1,070.602 on August 20, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) increased from $10.91B last week to $10.97B on August 20, 2021. Moreover, the average volume and value of trades during the week ending August 20, 2021 totaled 91,110 shares worth $1,158,947 compared to 216,169 shares worth $2,369,392 during last week.

The week of August 20, 2021, continues with tough challenges on the economy. Fuel shortage is remarkably adding pressure along with electricity blackouts, which is leading some hospitals, bakeries, and businesses to close. Moreover, water supplies and essential health services are threatened, a warning sign of a humanitarian catastrophe as a senior U.N. official explained.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 index increased weekly by 0.20%, however, S&P Pan Arab and MSCI index decreased weekly by 0.41% and 4.53% compared to last week. In the Arab World, the bourse of UAE and Kuwait were the top gainers this week, and witnessed an increase of 0.79% and 1.00%, compared to last week. However, least gainers were Bahrain and Saudi Arabia with a drop of 3.75% and 1.32%.

On the Beirut Stock Exchange (BSE), the real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 91.52%, while the banking grasped the rest with a stake of 8.48%. The most noteworthy trades throughout the mentioned period included:

• BLOM GDR decreased by 2.77% to $3.16/share
• Audi GDR jumped by 4.63% to $2.26/share
• Byblos listed contracted by 5.10% to $0.93/share
• Solidere (A) shares increased by 2.01% to $35.01/share
• Solidere (B) shares increased by 0.50% to $34.43/share

As for the BLOM Preferred Shares Index (BPSI), it remained at 45.06 points by the end of this week.

The real estate sector remains the driving force behind the BSE this year, irrespective of the state of the economy. Will it stay as such if a new reforming government is formed? In other words, will it stay as the best (and perhaps the only) financial investment in the country? Time will tell.