BSI Down by 10.73%, Despite the Formation of the new Government

 17/9/202110/9/2021% Change
BLOM Stock Index         946.746       1,060.505-10.73%
Average Traded Volume         211,890            91,351131.95%
Average Traded Value      4,761,323       2,315,804105.60%

Over the course of the past week: the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis slumped by 10.73% reaching 946.746 on September 17, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) decreased from $10.87B last week to $9.70B. The average volume and value of trades also totaled 211,890 shares worth $4,761,323 compared to 91,351 shares worth $2,315,804 last week.

This week, the stock market has recorded a bad performance, while the two biggest companies (Solidere A and Solidere B) listed on BSE witnessed a huge drop by 22.52% and 19.91%, respectively on its stock price.  In fact, the appreciation of national currency have made some investors to take the sell side and liquidated their asset to  “lollar” as it’s worth more now than before in dollar terms.

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 0.43%, and 0.23%, respectively, while the MSCI index decreased this week by 1.78% compared to last week. In the Arab World, the bourse of UAE, Kuwait, and Qatar were the top gainer this week, and witnessed an increase, compared to last week, of 1.44%, 1.21%, and 0.95%, respectively. However, least gainers were Tunisia, Saudi Arabia, and Egypt with a drop each of 0.69%, 0.29%, and 0.27%.

Undoubtedly the bourse of UAE is on a steady increase since it is standing at the peak of its glowing era. In turn, it will be hosting, by the 1st of October 2021, “the world expo 2020” in Dubai. It is one of the world’s largest and oldest mega-events, and the first time hosted in the Middle East, North Africa and South Asia (MENASA). In fact, new paths of development and innovation, engaging global community and creating economic impact, all will be reflected in this event.

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 98.83%, while banking sector and industrial sector grasped the rest with a stake of 1.03% and 0.14% respectively. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares slumped by 22.52% to $25.35/share
  • Solidere (B) shares dropped by 19.91% to $25.99/share
  • Audi Listed increased by 1.53% to $2.65/share
  • BLOM Listed decreased by 0.51% to $3.88/share
  • Byblos retreated by 5.10% to $0.93/share

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

The new government has a lot to do in terms of economic reforms. However, it should have a plan to develop the stock market in Lebanon, as it can be a great added value for the Lebanese economy.


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