BSI Down to 996.714 Amid a New Diplomatic Crisis for Lebanon

5/11/202129/10/2021% Change
BLOM Stock Index         996.714          999.324-0.26%
Average Traded Volume           37,171            44,164-15.83%
Average Traded Value         900,210          788,96514.10%


This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis slightly decreased by 0.26% reaching 996.714 on November 05, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) witnessed a decrease from $10.26B to $10.21B. The average volume and value of trades also totaled 37,171 shares worth $900,210 compared to 44,164 shares worth $788,965 last week.

This week, a new crisis has taken the headlines in Lebanon, “GCC-Lebanese diplomatic crisis” which added more pressure on the Lebanese economy. In fact, the crisis could embrace harmful measurements on the country’s exportations as Saudi Arabia declared banning imports from Lebanon, an act that would push Lebanon further into financial meltdown. Moreover, remittances from the diaspora, especially Lebanese located in the GCC countries, would be affected as they have been a vital part of the Lebanese economy.

Regionally, the major Arab markets witnessed a better performance this week. In details, the S&P AFE 40 and the S&P Pan Arab index both increased weekly by 1.31% and 0.73%, respectively. However, the MSCI index dropped by 0.60%. In the Arab World, the bourse of UAE, Bahrain and Qatar were the top gainer this week, and witnessed a significant increase by 8.50%, 2.42%, and 2.36%, respectively. Meanwhile, least gainer was Saudi Arabia and Tunisia with a drop of 0.47% and 0.21%.

It is important to note that the global economy today is focusing on walking out of fossil fuel by relying more on renewable energy. Exit from coal, oil or even gas is gaining momentum with G20 countries. This act would add pressure on the Gulf countries with OPEC cannot stand still while the world is looking to reduce strongly the CO2 emissions. Furthermore, revolutionary change in the energy sector would create an exceptional opportunities for some investors, and equally it would urge the Gulf countries towards real diversification in their economic structure.

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 94.53%, while banking and the industrial sectors grasped the rest with stakes of 4.81% and 0.67%, respectively. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares added 1.32% to $29.90/share
  • Solidere (B) shares jumped 1.02% to $29.75/share
  • Holcim shares soared by 10.93% to $20.00/share
  • BLOM Listed retreated by 3.05% to $3.61/share
  • Audi Listed went down by 6.49% to $2.45/share

As for the BLOM Preferred Shares Index (BPSI), it remains the same at 44.99 by the end of this week.

This week, the stock market in Lebanon was backed by the Real Estate sector. The two real estate shares listed on the BSE recorded a slight increase despite the increasingly difficult situation in the country. In addition, the exchange rate of the USD/LBP on the black market has remained stable for this week, ranging between 20,100 USD/LBP and 20,800 USD/LBP.

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