The BSI down by 1.67% amid Political and Social Turbulence

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis decreased by 1.67% from last week to 1,052.602 on August 27, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) decreased from $10.97B last week to $10.79B on August 27, 2021. Moreover, the average volume and value of trades during the week ending August 27, 2021 totaled 32,425 shares worth $601,179 compared to 91,110 shares worth $1,158,947 during last week.

The honeymoon between the financial crisis and some of the stocks on the BSE may come to an end. For the second consecutive week we are witnessing a general decrease in the real estate stock prices (Solidere A and B) for the first time since the crisis begins. After all, Lebanon is sinking, while policymakers are failing to form the awaited government in order to begin the necessary reforms requested by the IMF.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 index and MSCI index increased weekly by 0.42%, and 2.74$ 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 2.18% and 2.13%, compared to last week. However, least gainer was Bahrain with a drop of 3.85%.

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 93.42%, while the banking grasped the rest with a stake of 6.52%. The most noteworthy trades throughout the mentioned period included:

• BLOM GDR increased by 9.81% to $3.47/share
• Audi GDR jumped by 9.73% to $2.48/share
• Ciments blancs (N) increased by 50.50% to $6.05/share
• Solidere (A) shares contracted by 4.74% to $33.35/share
• Solidere (B) shares decreased by 1.34% to $33.97/share

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

The unpromising political events that are happening in Lebanon will affect negatively the capital market in Lebanon. The failure to find a long term solution for the fuel and medicine and other basic needs are an indicator that this country is led by incompetent governors. In the end, capital markets required political and economic stability in order to grow and be efficient, which is still lacking “big time” in Lebanon.