Overheated Fuel Prices to Boost GCC Economy

29/4/202221/4/2022% Change
BLOM Stock Index      1,027.871   1,001.6712.62%
Average Traded Volume         244,885          174,16240.61%
Average Traded Value      2,572,744       2,511,9862.42%

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded an increase by 2.62% to reach 1,027.871 on April 29, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $10.26B to $10.53B. The average volume and value of trades also totaled 244,885 shares worth $2,572,744 compared to 174,162 shares worth $2,511,986 last week.

This week, the most rolling news is the Capital Control Law that the Government was about to grant it approval this time, but no agreement was reached and the session was cut short amid protests held in Beirut on Tuesday. On a different note, Saudi Arabia and France pledged $76M for Lebanon aid. This collaborated Fund held to support aid in different sectors, such as food safety, health, education, energy, water and interior security forces.

In the Arab region this week, GCC market observed the biggest quarterly gain since worldwide financial crisis. Despite some rise and fall on a weekly basis, all markets were standing in the green during Q1, 2022 with Abu Dhabi market recorded a 17% gain. Hence, Arabic markets witnessed fluctuations in their performance this week. In details, the S&P AFE 40 slightly increased by 0.39%, whereas the MSCI and S&P pan Arab index both retreated by 4.99% and 0.11%, respectively, by the week ending April, 29, 2022. Moreover, after several disputes over additional IMF loan, Egypt received support of $22B from Gulf countries as the country is severely impacted by the Russia-Ukraine war. As a result, the bourse in Egypt, UAE and Kuwait recorded an increase this week by 5.75%, 1.98%, and 1.49%, while the bourse of Qatar and Bahrain decreased by 3.03% and 1.87%, respectively.

On the Beirut Stock Exchange (BSE), the real estate sector grasped the biggest share of the BSE’s trading value with a stake of 87.20%, while banking sector grasped the rest with 12.80% and industrial sector did not undergo any trade transaction. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares increased by 6.36% to $36.80/share
  • Solidere (B) shares jumped by 3.57% to $36.25/share
  • Audi Listed decreased by 1.18% to $1.68/share
  • Audi GDR retreated by 3.95% to $1.70/share
  • BLOM GDR contracted by 5.48% to $2.93/share

As for the BLOM Preferred Shares Index (BPSI), no major changes recorded during the period as it stood at 41.54 by the end of this week.

This week, the Beirut Stock Exchange (BSE) was not good for bank stocks but witnessed a better performance backed by the real estate rallied prices. Solidere A and B remained the central relief of major investors and maintained resilient prices around $37. In fact, prolonged period to start implementing needed reforms may pave the way for the real estate company to boost their shares in the market and observe a determined gain due to the ongoing situation. Until the awaited developments shake up the situation, the Real Estate sector would remain the ultimate financial investment for the Lebanese.

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