| 1/10/2021 | 24/9/2021 | % Change | |
| BLOM Stock Index | 980.424 | 981.204 | -0.08% |
| Average Traded Volume | 93,416 | 219,608 | -57.46% |
| Average Traded Value | 649,602 | 1,889,087 | -65.61% |
Over the course of the past week: the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis decreased by 0.08% reaching 980.424 on October 01, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) decreased from $10.05B last week to $10.04B. The average volume and value of trades also totaled 93,416 shares worth $649,602 compared to 219,608 shares worth $1,889,087 last week.
This week, the negative correlation between the most traded stock on the BSE ( Solidere A and Solidere B) and the exchange rate continues, as the national currency recorded a depreciation against the dollar to hit again LBP/USD 17,500 while Solidere A and Solidere B prices bounced back to approximately 30$/share.
Regionally, the major Arab markets witnessed a good performance this week. In details, the S&P AFE 40 index, and S&P Pan Arab decreased weekly by 0.63%, and 1.22% %, respectively, while MSCI recorded a decreased by 1.53% this week. In the Arab World, the bourse of Qatar, and Saudi Arabia were the top gainer this week, and witnessed an increase by 2.18%, and 2%, respectively. However, least gainers were UAE and Egypt with a drop each of 1.61%, and 1.17%.
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 86.71%, while banking sector grasped the rest with a stake of 13.29%. The most noteworthy trades throughout the mentioned period included:
As for the BLOM Preferred Shares Index (BPSI), it remains the same at 44.99 by the end of this week.
The awaited negotiations between the government and the IMF will be critical for the banking sector in Lebanon. Any restructuring of debt without the acceptance or coordination between all the parties involved in the financial system can have disastrous consequences. As such, the losses should be disturbed in a very optimal way that can ensure fairness. No doubt that the stock market in Lebanon could suffer more, as we could see many listed banks exiting the market due to the restructuring plan. However, it could be a chance to reconsider the role of this market and to enforce it by encouraging other qualified companies to enter the Lebanese stock market.