BSE up amid rallied real estate prices


8/4/20221/4/2022% Change
BLOM Stock Index      1,001.797      989.5181.24%
Average Traded Volume           84,481            71,11218.80%
Average Traded Value      1,572,028       1,400,98312.21%


This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded an increase by 1.24% to reach 1,001.797 on April 08, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $10.14B to $10.26B. The average volume and value of trades also totaled 84,481 shares worth $1,572,028 compared to 71,112 shares worth $1,400,983 last week.

This week, the most rolling news is the Staff-level agreement with the IMF. However, the agreement still needs a long list of needed reforms to be completed so that the awaited $3B would be released and injected into the Lebanese economy. Moreover this week, Saudi Arabia announced the return of its ambassador to Lebanon for the first time since a row broke out with Beirut last year. The diplomatic row was a blow to the country and a step like this is needed as Lebanon is counting on financial assistance from the Gulf to rescue its economy.

Regionally, the price of oil is fluctuating due to the war between Russia and Ukraine, while the US tries to keep the price controllable, by releasing oil from the strategic reserve. As a result, Arab markets recorded a better performance this week, amid the increase in energy prices.  In details, the S&P AFE 40 and the S&P Pan Arab both increased by 1.85% 1.73%, respectively. Meanwhile, the MSCI index retreated by 1.38% by the week ending April, 08, 2022. Moreover, the bourse in Qatar, Bahrain and Saudi Arabia recorded an increase this week by 4.11%, 2.28%, and 1.71%, while the bourse of Egypt decreased by 1.21%.

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 92.22%, while banking sector grasped 6.32% and industrial sector gripped the rest with stakes of 1.46%. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares increased by 3.42% to $33.57/share
  • Solidere (B) shares jumped by 4.67% to $34.08/share
  • Ciments Blancs shares added 1.67% to $6.71/share
  • Audi Listed soared by 6.47% to $1.81/share
  • Audi GDR decreased by 6.42% to $1.75/share
  • BLOM Listed plunged by 9.09% to $3.00/share
  • BLOM GDR contracted by 6.04% to $3.11/share
  • Byblos retreated by 2.44% to $0.80/share

As for the BLOM Preferred Shares Index (BPSI), no major changes recorded during the period as it stood at 43.85 by the end of this week.

This week, the Beirut Stock Exchange (BSE) followed an additional uptrend backed by the real estate rallied prices. This sector remains the driving force behind the BSE unrelatedly to the situation of the economy. However, the Staff-level agreement and upcoming period developments in the country would affect the investors’ appetite towards such investments. One major question remains “would it hold this privilege as such if the situation adjusts? Differently speaking, would it stay as the ultimate financial investment in the country? Only time will tell.

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