Global Stocks deteriorated this week amid Fed’s reports to stay the course

10/2/20223/2/2022% Change
BLOM Stock Index1,470.3661,469.6210.05%
Average Traded Volume50,60534,85545.19%
Average Traded Value3,241,0081,310,149147.38%

This week, the BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a slight rise of 0.05% to reach 1,470.366 on February 10th, 2023. The market capitalization on the Beirut Stock Exchange (BSE) increased weekly from $15.06B to $15.07B. The average volume and value of trades also totaled 50,605 shares worth $3,241,008 compared to 34,855 shares worth $1,310,149 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 99.93%, while the banking and industrial sectors grasped the remaining 0.02% and 0.05% respectively. The most noteworthy trades throughout the mentioned period included:

  • Solidere (B) shares slightly added 0.08% to settle at $64.1/share
  • Byblos Listed shares dropped by 5.41% to settle at $0.7/ share
  • Ciments Blancs shares increased significantly by 26.09% to settle at $14.5/ share

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 41.01 by February 10, 2023.

In the Arab region, major Arab bourses deteriorated this week. In fact, S&P Pan Arab and MSCI indexes dropped respectively by 1.5% and 1.37% by February 10, 2023 compared to last week. Moreover, Bourse of Egypt, Morocco and UAE DFM added respectively 8.35%, 3% and 2.63%, by the end of this week. Meanwhile, the bourse of Saudi Arabia, Qatar and Tunisia dropped respectively by 2.71%, 2.56% and 1.43% by the end of this week.

As for the US equity market, stocks deteriorated on February 10th, 2023 amid anticipation from the Federal Reserve to stay the course. In fact, Federal Reserve Chair Jerome Powell reported that although inflation is starting to ease, however interest rates could rise more than markets anticipate if the economic data doesn’t cooperate. Accordingly, the S&P 500 and NASDAQ fell remarkably by 1.33% and 1.81% on a weekly basis to stand at 4,081.5 and 11,789.58 respectively by Friday February 10, 2023.

In the same token, equity market in Europe deteriorated weekly by February 10, 2023, as investors assess the economic outlook and the potential for further monetary policy tightening from US Federal Reserve. In more details, recent data showed the UK economy slumped as FTSE 100 registered a downfall of 0.58% to stand at 7,855.9.  In fact, U.K. GDP showed that the economy remained unchanged in the fourth quarter to narrowly avoid a recession. Similarly, DAX and CAC 40 registered respectively a decline of 1.23% and 1.92% to stand at 15,285.4 and 7,095.33 by Friday, February 10, 2023. Finally, the Japanese economy improved this week as NIKKEI index grew by 0.59% to stand at 27,670.98.

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