| ||27/5/2022||20/5/2022||% Change|
|BLOM Stock Index|| 1,484.717|| 1,065.682||39.32%|
|Average Traded Volume|| 149,448|| 85,877||74.03%|
|Average Traded Value|| 6,405,991|| 1,803,792||255.14%|
This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a significant increase by 39.32% to reach 1,484.717 on May 27, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $12.71B to $15.21B. The average volume and value of trades also totaled 149,448 shares worth $6,405,911 compared to 85,877 shares worth $1,803,792 last week.
This week, the national currency has depreciated and recorded at 37,600 LBP/USD by the end of this week. The circular 161 that was used before the election to maintain the exchange rate at an “acceptable” rate is not working anymore, and it seems we are now in a freefall situation, where everything is collapsing. On the political front, the situation is uncertain amid the confirmation of multiple resources that the formation of a new government will be very difficult, due to the new political orientation of the majority of new deputies elected. Lebanon needs a government urgently and without delay that can work 24/7 in order to save the Lebanese economy and stop the freefall.
In the Arab region this week, the S&P Pan Arab and S&P AFE 40 index decreased by 0.63% and 1.53% respectively, whereas the MSCI index increased by 0.80%. Moreover, this week the bourse in Egypt, Kuwait and UAE recorded a decrease by 3.31%, 2.96% and 2.75%, 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 98.03%, while industrial stock grasped 0.78% and the banking sector grasped the remaining of 1.18%. The most noteworthy trades throughout the mentioned period included:
- Solidere (A) shares increased by 31.71% to settle at $65.30/share
- Solidere (B) shares jumped by 31.29% to settle at $63.65/share
- HOLCIM shares increased by 1.24% to settle at $23.67/share
- Audi shares decreased by 5.56% to settle at $1.7/share
- Audi GDR shares increased by 2.78% to settle at $1.85/share
- Byblos shares increased by 2.63% to settle at $0.78/share
As for the BLOM Preferred Shares Index (BPSI), no major changes recorded during the period as it stood at 41.54 by the end of this week.
Looking at the Beirut Stock Exchange, at a first glance, we can say that the stock market in Lebanon is doing great due to high BSI rates, and the strong performance of Solidere stocks. However, if we look more profoundly we realize that the BSI rates are inflated due to strong depreciation of the national currency. While Solidere price is above 60$ in terms of “ lollar-Lebanese dollar” at the rate 8,000 LBP/USD , the deterioration of the national currency in the black market is pushing the price of this stock forward in order to fill the gap between the lollar at the rate of 8,000 and the parallel market rate of 37,600 LBP/USD.