Real Estate Equities Lower as Week’s Activity winds down 

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a decrease by 1.40% to reach 1,431.442 on June 24, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) decreased weekly from $14.88B to $14.67B. The average volume and value of trades also totaled 94,293 shares worth $3,137,051 compared to 71,458 shares worth $2,505,605 last week.

It was a disruptive week for Lebanon as the level of risk was very high. Difficulties concerning forming a Government are at the front line and challenges of total collapse fluctuated the stock market. With the presidential elections looming, the need for a comprehensive clearance is essential this time.

In the Arab region, all major Arab bourses followed a downturn as global oil prices dropped this week amid lower demand due to concerns over outlook. As such, the S&P Pan Arab, S&P AFE 40 and MSIC all dropped by 4.06%, 3.88%, and 1.27%, respectively compared to last week. Moreover, the major bourses in the Arab market also followed a downtick. Qatar, Saudi Arabia, and Egypt as well as Bahrain decreased by 6.44% and 4.34%, 4.33%, and 1.91%, 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 97.14%, while banking sector grasped 2.55% and the industrial sector gripped the remaining of 0.31%. The most noteworthy trades throughout the mentioned period included:

• Solidere (A) shares decreased by 2.48% to settle at $60.95/share
• Solidere (B) shares decreased by 2.96% to settle at $60.75/share
• Audi GDR shares jumped by 28.39% to settle at $1.99/share
• Byblos shares added 2.74% to settle at $0.75/share
• Ciment Blancs (N) shares increased by 4.14% to settle at $7.55/share

As for the BLOM Preferred Shares Index (BPSI), no major changes were recorded as the index stood at 40.66 by the end of this week.

The BSI dropped this week although it witnessed strong transactions in term of volumes and values. Index was influenced by Real Estate stock prices despite surge in banking and industrial sectors’ stock, and investors looked like holding a lot of concerns. Though pressure was on Solidere stocks, but the core driven in demand and supply was the stability of the Lebanese exchange rate.