BSI Up by 0.66% Amid the Formation of the Government

Over the course of the past week: the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis increased by 0.66% reaching 1,060.50 on September 10, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) decreased from $10.92B last week to $10.87B. The average volume and value of trades also totaled 91,351 shares worth $2,315,804 compared to 121,514 shares worth $2,091,201 last week.

This week, finally the government has been formed after more than one year of political deadlock. The formation of the new government will have a direct positive effect on the Lebanese market, as we are already witnessing (today) an appreciation of the Lebanese lira against the dollar to reach 16,000 LBP/USD. However, this positive effect may be temporary, as the government has a lot of challenges in order to save the Lebanese economy.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 index, and S&P Pan Arab increased weekly by 1.43%, and 0,92%, respectively, while the MSCI index decreased this week by 0,91% compared to last week. In the Arab World, the bourse of UAE was the top gainer this week, and witnessed an increase of 2.71% compared to last week. However, least gainer was Egypt with a drop of 2.17%.

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 97.62%, while banking sector and industrial sector grasped the rest with a stake of 2.34% and 0.04% respectively. The most noteworthy trades throughout the mentioned period included:

• Audi Listed increased by 6.53% to $2.61/share
• Audi GDR increased by 1.63% to $2.50/share
• Byblos gained 3.16% to $0.98/share
• Solidere (A) shares contracted by 0.49% to $32.72/share
• Solidere (B) shares increased by 1.37% to $32.45/share
• Rymco shares dropped by 14% to $18.02/share

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

The political developments like forming a new government may give some hopes to Lebanese people that the situation could improve. But let’s not to be overoptimistic, as some a bold and unpopular steps should be taken by this new government in order to save the Lebanese economy and rejuvenate financial markets.