BSI Up by 0.08% Despite a drop in Solidere Prices

Over the course of the past week: the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis increased by 0.08% reaching 1,053.544 on September 3, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) decreased from $10.92B last week to $10.64B. The average volume and value of trades also totaled 121,514 shares worth $2,094,201 compared to 32,425 shares worth $601,179 last week.

The uptrend of some stocks trading on the BSE may come to an end, as we witness a general decrease in stock prices for the second consecutive week. In details, the real estate stock prices of Solidere A and B dropped from a high $35.13 and $35.41 to $32.88 and $32.01 for the week of September 3, 2021.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 index, S&P Pan Arab and MSCI index increased weekly by 0.71%, 1.25% and 3.62% compared to last week. In the Arab World, the bourse of Egypt and Saudi Arabia were the top gainers this week, and witnessed an increase of 1.24% and 0.58%, compared to last week. However, least gainers were Tunisia and Qatar with a drop of 0.50% and 0.33%.

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 93.39%, while the Industrial sector gained 4.10% this week and banking sector grasped the rest with a stake of 2.51%. The most noteworthy trades throughout the mentioned period included:

• BLOM Listed increased by 21.88% to $3.90/share
• Audi Listed increased by 2.08% to $2.45/share
• Audi GDR dropped by 0.81% to $2.46/share
• Byblos gained 2.15% to $0.95/share
• BEMO dropped by 8.33% to $1.10/share
• Solidere (A) shares contracted by 1.41% to $32.88/share
• Solidere (B) shares decreased by 5.77% to $32.01/share
• Rymco shares dropped by 2.82% to $3.10/share

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

Lebanon’s macroeconomic conditions continue on deteriorating amidst currency depreciation, rampant inflation and shortage in fuel, medical care and water supplies.  We observe that the economic situation along with the lingering off-putting political decisions will fail to provide a solid foundation for the establishment of a new administration needed to unlock international aid for the country, in addition to negatively affecting Lebanon’s capital market.