European Stocks Drop As Rout in Banks Outspreads Deutsche Bank and UBS


24/3/202317/3/2023% Change
BLOM Stock Index                    1,800.160                    2,016.779-10.74%
Average Traded Volume                         55,988                         38,34446.02%
Average Traded Value                    3,084,147                    2,659,82815.95%

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis recorded a weekly drop by 10.74% driven by a plunge for solidere stocks’ prices after hitting an all-time high level previous week. The BSI reached 1,800.160 on March 24, 2023 down from 2,016.779 on March 17, 2023. The market capitalization on the Beirut Stock Exchange (BSE) decreased weekly from $20.67B to $18.45B. The average volume and value of trades also totaled 55,988 shares worth $3,084,147 compared to 38,344 shares worth $2,659,828 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 99.09%, while the banking and industrial sector grasped the respective shares of 0.62% and 0.29%. The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares dropped by 12.65% to settle at $85.60/ share
  • Solidere (B) shares plunged by 15.50% to settle at $84.50/ share
  • Ciments Blancs soared by73% to settle at $14.50/ share
  • Audi increased by 0.67% to settle at $1.51/ share
  • Byblos added 1.39% to settle at $0.73/ share

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 41.01 by March 24, 2023.

In the Arab region, overall bourses recorded a better performance this week as oil prices rebounded from low levels previous week. S&P Pan Arab and MSCI indices both increased weekly by 3.15%  and 3.87%, respectively, to stand at 889.42 and 977.78 point by March 24. Moreover, the bourse of Saudi Arabia, Egypt, Qatar, and Bahrain expanded each respectively by 4.71%, 6.26%, 0.97%, and 0.08% while the bourse of Morocco, Kuwait, and Tunisia contracted by 0.88%, 0.35%, and 0.15% respectively by the end of week March 24, 2023.

As for the U.S equity, the markets’ concerns regarding the overall situation remain high despite that the Fed’s decision about increasing interest rate showed a confidence in the US banking system as well as indicated that inflation is a priority for the Fed. As such, NASDAQ re-picked and added 0.60% weekly to stand at 11,787.40 while S&P 500 slightly dropped by 0.29% to reach 3,948.72 by March 24, 2023.

European stocks set for a weekly drop led by fears over the banking sector, as traders assessed key rates decisions in the European region. Despite the rescue of Swiss second largest bank, worries about banks emerged as Deutsche bank and UBS shares slide after sudden spike in their CDS. Saying this, European indices were broadly lower with DAX and FTSE 100 both decreased by 0.06% and 0.21% respectively on a weekly basis to end the week at 14,860.47 and 7,357.07. In contrast, CAC 40 index recorded a slight increase of 0.15% to stand at 6,982.09 by the end of March 24, 2023 while France is witnessing new strikes amid President’s pension reform.

As for the Japanese stocks, it increased weekly by 0.19% to stand at 27,385.25 points by March 24, 2023 as Japan’s inflation slowed for the first time in more than a year and reached 3.1% annually. With core inflation dropping below 3%, BOJ is unlikely to make any quick retreat from its yield curve control policy.


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