Global Stocks improved for the third week in a row

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a rise of 1.51% to reach 1,469.621 on February 3^rd, 2023. The market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $14.84B to $15.06B. The average volume and value of trades also totaled 34,855 shares worth $1,310,149 compared to 50,085 shares worth $1,337,524 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 94.68%, while the banking and industrial sectors grasped the remaining 5.17% and 0.15% respectively. The most noteworthy trades throughout the mentioned period included:

• Solidere (A) shares increased by 1.65% to settle at $64.55/share
• Solidere (B) shares jumped by 1.1% to settle at $64.05/share
• Blom GDR shares jumped by 9.43% to settle at $2.9/ share
• Blom Listed shares dropped by 6.02% to settle at $2.5/share
• Audi GDR shares increased by 6.11% to settle at $1.39/share
• Audi Listed shares jumped by 7.59% to settle at $1.56/ share
• Byblos Listed shares dropped by 1.33% to settle at $0.74/ share
• Holcim Liban shares increased by 3.38% to settle at $32.15/ share

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 41.01 by February 3, 2023.

In the Arab region, major Arab bourses deteriorated this week. In fact, S&P Pan Arab and MSCI indexes dropped respectively by 0.71% and 0.54% by February 3, 2023 compared to last week. Moreover, Bourse of Morocco and UAE DFM added 2.49% and 0.76%  respectively, by the end of this week. Meanwhile, the bourse of Qatar, Tunisia and Egypt dropped respectively by 3.71%, 0.77% and 3.19% by the end of this week.

As for the US equity market, stocks improved in February 3, 2023 amid favorable US employment situation.  In fact, the US labor market remained resilient this week despite higher borrowing costs and fears of an upcoming recession. Federal Reserve Chair Jerome Powell reported that the economy can reach its 2% target inflation without a really significant downturn or a really big increase in unemployment. Accordingly, the S&P 500 and NASDAQ increased remarkably by 2.68% and 4.98% on a weekly basis to stand at 4,179.76 and 12,200.82 respectively by Friday February 3, 2023.

In the same token, equity market in Europe improved weekly by February 3, 2023. Recent data showed the UK economy improved as FTSE 100 registered an uptick of 0.98% to stand at 7,841.10. Similarly, DAX and CAC 40 registered respectively an uptick of 1.78% and 0.79% to stand at 15,420.01 and 7,153.49 by Friday, February 3, 2023. Nevertheless, the European Central Bank and Bank of England will take center stage in the week ahead as both look set to raise interest rates by 50 basis points. Finally, the Japanese economy improved this week as NIKKEI index grew by 0.46% to stand at 27,509.46.