BSI Down Amid a Slight Improvement In The Lebanese Pound

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis slightly decreased by 0.40% reaching 997.694 on December 3, 2021. The Market capitalization on the Beirut Stock Exchange (BSE) witnessed a decrease from $10.28B to $10.23B. The average volume and value of trades also totaled 59,888 shares worth $582,176 compared to 50,398 shares worth $775,394 last week.

This week, Lebanon witnessed the resignation of Minister of Information, George Kordahi after challenges with the gulf countries last month. During a press conference on the 3^rd of December, Kordahi added “I decided to give up my ministerial position because Lebanon is more important than I am”. Moreover, some good news extended around an $18 million World Bank loan to be allotted to the public health sector in Lebanon to help reduce bills for patients. Lately hospitals have raised their bills to cope with the extra costs incurred by the devaluation.

Regionally, the major Arab markets witnessed a worst performance this week. The S&P Pan Arab, the S&P AFE 40, and MSCI index all decreased weekly by 2.83%, 2.08% and 1.47%, respectively. Moreover, in the Arab World, the bourse of UAE and Morocco were the top gainer this week, and witnessed an increase by 1.09% and 0.10%, respectively. UAE this week celebrated its 50th National Day. Also, it is worth mentioning that Multiply Group, a subsidiary of Abu Dhabi conglomerate International Holding Company (IHC) will list directly on the Abu Dhabi Securities Exchange on Dec. 5. allowing companies to list on the stock market without a traditional and more costly initial public offering.

Meanwhile, least gainers were Saudi Arabia, Kuwait and Tunisia with a drop of 3.69%, 2.43%, and 0.97% each.

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 78.97%, while banking and the industrial sectors grasped the rest with stakes of 7.90% and 13.13%, respectively. The most noteworthy trades throughout the mentioned period included:

• Solidere (A) shares soared by 1.15% to $30.85/share
• Solidere (B) shares decreased by 0.95% to $30.18/share
• BLOM (GDR) added 0.51% to $3.92/share
• Audi (GDR) retreated by 17% to $2.05/share
• Byblos decreased by 2.27% to $0.86/share
• BEMO dropped by 0.95% to $1.04/share
• Rymco increased by 0.10% to $3.50/share

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

While major financial markets are considered to be free-floating, led almost unconditionally by supply and demand, the Beirut Stock Exchange (BSE) seems always to move in inverse correlation with the Lebanese Pound. Moreover, the BSE dropped this week as the LBP/USD exchange rate further depreciated between 23,000 LBP/USD and 24,000 LBP/USD. After the resignation of Minister Kordahi, the Lira witnessed an appreciation after the exchange rate reached 22,000 LBP/USD.