Arab Countries to Turn Economic Global Trend

22/7/202215/7/2022% Change
BLOM Stock Index                 1,400.198                 1,432.012-2.22%
Average Traded Volume                      26,141                      20,30628.74%
Average Traded Value                 1,164,595                    672,01773.30%

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a further decrease by 2.22% to reach 1,400.198 on July 22, 2022. The Market capitalization on the Beirut Stock Exchange (BSE) contracted weekly from $14.63B to $14.35B. The average volume and value of trades also totaled 26,141 shares worth $1,164,595 compared to 20,306 shares worth $672,017 last week.

In the Arab region, all the major Arab bourses recorded a better performance as global oil prices jumped this week. As such, the S&P AFE 40, the S&P Pan Arab, and MSIC increased 6.65%, 6.56%, and 2.61%, respectively compared to last week. Moreover, Bourse of Saudi Arabia, Qatar, and Egypt added 7.39%, 7.09%, and 6% respectively by the end of this week.

The MENA region including the Arab countries and most specifically oil exporters’ countries are set to buck the global trend of slower economic growth in 2022. Arab markets are expected to outperform in the upcoming period backed by significant increase in the hydrocarbon production. According to Fitch Solutions, Real GDP growth is forecasted to be around 7.8% for Iran and 7.7%, for both Iraq and Saudi Arabia while UAE’s real GDP is expected to stand at around 6.2% by the end of 2022.

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 98.80%, while banking sector grasped 0.72% and the industrial sector gripped 0.48%. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares decreased by 2.01% to settle at $60.95/share
  • Solidere (B) shares retreated by 4.05% to settle at $60.45/share
  • HOLCIM shares added 0.73% to settle at $27.70/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 retreated this week backed by remarkable drops in Real Estate stocks. Solidere stocks fluctuated all over the week and registered slight uptrends but ended the week on a negative note as fears and concerns weighed over investors’ sentiment. It is agreed that the outlook of political situation and economic recovery path for Lebanon would determine the prices of stocks on Beirut Stock Exchange. But perhaps that wouldn’t clear before the next presidential elections.

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