BSI on the rise with higher Solidere prices

16/9/20229/9/2022% Change
BLOM Stock Index                 1,372.699                 1,238.23710.86%
Average Traded Volume                      39,241                      42,030-6.64%
Average Traded Value                 1,670,755                 1,482,56512.69%

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a substantial increase of 10.86% to reach 1,372.699 on September 16, 2022. The market capitalization on the Beirut Stock Exchange (BSE) expanded weekly from $12.91B to $14.07B. The average volume and value of trades also totaled 39,241 shares worth $1,670,755 compared to 42,030 shares worth $1,482,565 last week.

In the Arab region, it is crucial to admit that this would be the golden era of the Gulf countries. In fact, “Moody’s” reported that the rise in oil prices will lead to a significant improvement in the financial and external positions of the Gulf countries. Arguably, for many Gulf countries, notably Kuwait, Abu Dhabi and Saudi Arabia, their financial strength is already very high due to relatively low debt burdens and the availability of large financial reserves in the form of assets held by sovereign wealth funds. The MSCI and the S&P Pan Srab index both increased by 0.84% and 0.14%, respectively, compared to last week. Moreover, Bourse of UAE, Qatar, and Kuwait added 3.87%, 2.28%, and 0.74% respectively by the end of this week. Meanwhile, the bourse of Egypt and Tunisia registered a downtick of 1.82% and 0.57%, 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 88.16%, while the banking sector and the industrial sector grasped the rest of 1.51% and 10.33%, respectively. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares increased by 13.44% to settle at $58.65/share
  • Solidere (B) shares added 13.34% to settle at $58.2/share
  • Blom Listed Shares increased by 1.75% to settle at $2.85/ share
  • Audi GDR soared by 0.67% to settle at $1.49/share
  • Byblos Preferred 08 slightly increased by 0.04% to settle at $26.99/share
  • Holcim Liban dropped by 0.03% to settle at $30.50/share

As for the BLOM Preferred Shares Index (BPSI), it recorded a slight increase from 41.01 by September 09, 2022 to 41.02 by September 16, 2022.

This week, BSI significantly improved to reach 1,372.699 on September 16, 2022, driven by continuous increase in Solidere prices. The Real Estate stock prices climbed this week after recording sharp falls at the beginning of the month, 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. Nevertheless, Solidere published its financial statement for the year 2021, indicating losses of USD 21.5M as the establishment was surprisingly unable to register a turnover of USD 63M due to the closure of Lebanese public institutions.

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