Global Stocks retreated amid concerns over an upcoming recession

20/1/202313/1/2023% Change
BLOM Stock Index1,423.1111,419.4670.26%
Average Traded Volume39,7744,811,478-99.17%
Average Traded Value2,129,0874,897,528-56.53%


This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a slight rise of 0.26% to reach 1,423.111 on January 20, 2022. The market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $14.55B to $14.59B. The average volume and value of trades also totaled 39,774 shares worth $2,129,087 compared to 4,811,478 shares worth $4,897,528 last 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 99.69%, while the banking sector grasped the remaining of 0.31%. The most noteworthy trades throughout the mentioned period witnessed higher real estate prices and lower bank prices and included:

  • Solidere (A) shares increased by 1.05% to settle at $62.4/share
  • Solidere (B) shares jumped by 3.31% to settle at $62.5/share
  • Blom GDR shares fell by 9.09% to settle at $2.5/ share
  • Audi GDR shares dropped by 9.35% to settle at $1.26/share
  • Audi Listed shares dropped by 13.64% to settle at $1.33/ share

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 41.01 by January 20, 2023.

In the Arab region, major Arab bourses recorded overall a slight better performance this week. In fact, despite the slight fall of S&P Pan Arab index by 0.1%, the MSCI index recorded a more pronounced uptick of 0.94% compared to last week. Moreover, Bourse of Egypt, Kuweit and Bahrain added 3.31%, 2.06%, and 1.94% respectively, by the end of this week. Meanwhile, the bourse of Qatar, Saudi Arabia and Tunisia dropped by 1.63%, 0.58% and 0.2% respectively by the end of this week.

As for the US equity market, stocks were headed for a weekly deterioration amid growing worries of an upcoming recession. Accordingly, risky-assets underperformed with the US equity indices ending the day lower. As such, the S&P 500 decreased by 2.12% on a weekly basis to stand at 3,898.85 by Friday January 20, 2023. Furthermore, the NASDAQ retreated by 1.35% on a weekly basis to stand at 10,852.27, by Friday January 20, 2023, driven by an underperformance of the more cyclical sectors.

In the same token, equity market in Europe retreated after recording a solid performance last week. In fact, recent data showed the UK economy pulled back as FTSE 100 registered a downfall of 0.88% to stand at 7,764.68, despite the statement of Governor Bailey pointing towards the beginning of an ease in inflation. Similarly, DAX registered a downfall of 0.46% to stand at 14,980.16, whereas CAC 40 added 0.16% to stand at 6,997.89 by Friday, January 20, 2023. Noting that ECB President Lagarde stated yesterday that inflation is still too high and that the monetary policy should remain restrictive for longer period of time in order to return inflation to 2%. On another note, NIKKEI index recorded a weekly upturn of 1.66% to end up the week at 26,553.53.

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