Weak Transaction Volume on the BSE, amid a Stable FX rate

 10/6/20223/6/2022% Change
BLOM Stock Index      1,475.940       1,461.5900.98%
Average Traded Volume           45,516          111,624-59.22%
Average Traded Value      1,988,869       4,075,101-51.19%


This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded an increase by 0.98% to reach 1,475.940 on June 10, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $14.98B to $15.12B. The average volume and value of trades also totaled 45,516 shares worth $1,988,869 compared to 111,624 shares worth $4,075,101 last week.

The national currency has succeeded to maintain a stable rate for the third consecutive week, due to the BDL’s intervention through the circular 161. It seems that the FX rate will remain stable in this period, at least during the summer season, as Lebanon is expecting thousands or millions of tourists, and expatriate. As such, maintaining a stable FX rate can establish some sort of minimum political and economic stability.


In the Arab region this week, the S&P Pan Arab, S&P AFE 40 and decreased by 0.56%, 1.26%, respectively, while MSIC increased by 0.54% compared to last week. Moreover, this week the bourse in UAE and Qatar increased by 2.34% and 2.28%, respectively, while the bourse in Kuwait decreased by 1.78%.


On the Beirut Stock Exchange (BSE), the real estate sector grasped the biggest share of the BSE’s trading value with a stake of 93.73%, while industrial stock grasped 0.28% and the banking sector grasped the remaining of 5.99%. The most noteworthy trades throughout the mentioned period included:


  • Solidere (A) shares increased by 2.63% to settle at $64.40/share
  • Solidere (B) shares decreased by 1.85% to settle at $63.80/share
  • HOLCIM shares increased by 5.04% to settle at $25/share
  • Blom shares decreased by 5.26% to settle at $3/share
  • Blom GDR shares decreased by 3.85% to settle at $2.50/share
  • Audi shares increased by 1.19% to settle at $1.70/share


As for the BLOM Preferred Shares Index (BPSI), it recorded a decrease from 41.54 to 40.66 by the end of this week.


This week, the BSI witnessed weak transactions in term of volumes and values. It’s important to take a look on the FX market, and observe how it is affecting the transaction movement on the BSE. In this respect, we can say that when the FX market is volatile and unstable, investors have more appetite to execute transaction on the BSE in order to protect the value of their assets. On the contrary, when the FX market is stable like it was this week, investors are less interested to make such moves on the Lebanese stock market. As such, a high volatility on the FX market increase the transaction on the stock market, while a stable FX market decrease the transactions on the BSE. In other words, we have a positive correlation between the volatility in FX market and the volume of transaction in the Lebanese stock market.

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