BSI Up to 1,238.237 Driven by Higher Solidere Prices

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded an increase of 2.16% to reach 1,238.237 on September 09, 2022. The market capitalization on the Beirut Stock Exchange (BSE) expanded weekly from $12.42B to $12.91B. The average volume and value of trades also totaled 42,030 shares worth $1,482,565 compared to 39,263 shares worth $1,736,546 last week.

In the Arab region, it is crucial to admit that this would be the golden era of the Gulf countries. Perhaps, the UAE, Qatar, Bahrain and Saudi Arabia would witness a promising growth in the upcoming period. Two main reasons drive this progress, sound economic stability under strong rebound in tourism and a noticeable boost in hydrocarbon export growth. As such, major Arab bourses recorded a worst performance this week. The MSCI and the S&P Pan Srab index both decreased by 2.34% and 1.52%, respectively, compared to last week. Moreover, Bourse of Egypt, Tunisia, and Bahrain added 3.31%, 0.56%, and 0.28% respectively by the end of this week. Meanwhile, the bourse of Saudi Arabia, UAE, and Kuwait registered a downtick of 2.54% and 1.50%, and 1.25%, respectively, by the end of this week.

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 98.51%, while the banking sector and the industrial sector grasped the rest of 1.28% and 0.21%, respectively. The most noteworthy trades throughout the mentioned period included:

• Solidere (A) shares increased by 4.95% to settle at $51.70/share
• Solidere (B) shares added 8.06% to settle at $51.35/share
• Audi GDR soared 5.67% to settle at $1.49/share
• Byblos Preferred 08 jumped by 8% to settle at $26.99/share
• Holcim Liban dropped by 1.61% to settle at $30.50/share

As for the BLOM Preferred Shares Index (BPSI), it recorded a significant increase from 40.66 by September 02, 2022 to 41.01 by September 09, 2022.

The BSI fluctuated during this week, from a low of 1,149.693 points to end up the week on a higher level driven by significant rebound in Solidere prices. The Real Estate stock prices gradually re-picked this week after recording sharp falls the week before while, in parallel, the Lebanese exchange rate followed an adverse trend to reach an all-time low. Solidere stocks were about to lose their momentum as the safest haven but they have reaffirmed in the market their positive correlation with the Lebanese exchange rate. However, complete absence of recovery plan would keep the Real Estate market on spotlight in Lebanon.