Stock Futures Stand Lower On Declining Hopes of Diplomatic Progress Between Russia and Ukraine

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis slightly increased by 1.09% to reach 970.049 on March 11, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $9.78B to $9.84B. The average volume and value of trades also totaled 68,006 shares worth $633,186 compared to 61,865 shares worth $1,613,207 last week.

This week, some media outlets had reported that Sayrafa platform had stopped working, however Central Bank Governor confirmed that the news is false. It is worth mentioning that although Sayrafa platform continues to secure the US dollar against the Lebanese pound, the ceiling price of Sayrafa has increased from 20,200 to reach 20,900 on Friday 11^th along with the increase of exchange rate in the parallel market. And many banks had stopped large transaction on Sayrafa, meanwhile using it under limited margins and quotas.

Regionally, Arab markets have benefited from the war in Europe between Russia and Ukraine and recorded a very good performance this week, amid the massive increase in oil prices. The S&P Pan Arab, S&P AFE 40 index and the MSCI index increased all by 0.59% and 0.59%, and 5.95% respectively. Moreover, the bourse in Kuwait and Qatar recorded an increase this week of 1.82% and 1.26% reflecting the positive outlook for the economy. In addition, Kuwait has sent a loaded plane with 33.5 tons of medical and food supplies to Ukraine on Thursday in hopes to secure supplies to the Ukrainian refugees.

UAE this week announced that it favors increase in hydrocarbon/Oil production thus encouraging OPEC to consider higher production, as UAE’s Ambassador explained that stability in energy markets is critical to the global economy.

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 90.17%, while banking sector grasped 9.80% and industrial sector gripped the rest with stakes of 0.55%. The most noteworthy trades throughout the mentioned period included:

• Solidere (A) shares increased by 3.14% to $31.50/share
• Solidere (B) shares increased by 0.16% to $30.92/share
• Audi (GDR) improved by 4.97% to $1.90/share
• BLOM Listed increased by 0.30% to $3.31/share
• Byblos listed decreased by 1.20% to $0.82/share
• HOLCIM Liban increased by 0.26% to $19.05/share

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

Worth mentioning that an increase in the parallel market caused positive changes in stock prices, as such Solidere stocks increased this week to record $31.50/share and $30.92/share for A and B respectively.

Globally, this Thursday witnessed a sharp fall in U.S. stock futures. As Russia-Ukraine talks failed, oil and gasoline prices moved higher, investors are most probably to witness an increase in inflation.