BSI Added 1.69% during the Week Ending October 31, 2014

The Beirut Stock Exchange bounced back this week. The BLOM Stock Index (BSI) gained 1.69% to close at 1,180.48 points. The banking sector stocks were the main reason behind this improvement, after most listed banks posted positive third-quarter earnings.

The average traded volume went from 85,790 shares up to 148,764 shares, while the average traded value grew from $1.25M to $1.45M. As for the market capitalization, it widened by 164.14M since last week to $9.86B.

Globally, the Morgan Stanley Emerging Index (MSCI) outperformed the BSI, improving by 2.63% to 1,007.54 points, while the S&P Pan Arab Composite Large Midcap Index and the S&P AFE40 Index slid by 2.63% and 0.87% to 153.10 points and 70.51 points, respectively.

Among the Arab world, Tunisia’s stock exchange was in the lead, surging by 5.30% since last week, followed by Egypt’s bourse that added 3.62%, and the BSE.

In contrast, Saudi Arabia’s stock exchange was the worst performer dropping 1.28%, due to the tumbling shares in the insurance sector despite posting strong third-quarter earnings. Kuwait’s financial market and Dubai’s bourse followed declining by 0.72% and 0.60%, respectively.

Back to the BSE, the banking sector contributed for around 77.66% of total traded value and was followed by the real estate sector and the industrial sector with shares of 22.13% and 0.22%, respectively.

In the banking sector, all traded shares saw a weekly increase in price. BLOM listed shares and Byblos listed shares added 0.57% and 1.86% to $8.80 and $1.64, respectively. Likewise, Audi listed and GDR shares inched up by 6.33% and 5.19% to $6.38 and $6.49, respectively.

The BLOM Preferred Stock Index (BPSI) improved as well, posting a minor uptick of 0.13% to 105.12 points. This was triggered by Audi preferred shares class “G” and Byblos Preferred 09 shares, gaining 0.50% and 0.40% to $101.00 and $101.30, respectively. However, Byblos preferred 08 shares lost 0.10% to $100.80.

Solidere shares class “A” and “B” remained on their downtrend for the fourth week back-to-back, dropping 1.39% and 0.18%, respectively, to close the week at the same price of $11.39.

In the industrial sector, HOLCIM shares edged up by 3.27% to reach $15.49.

The BSE activity might be able to maintain this week’s positive performance that was mainly pulled up by strong banking sector’s earnings, if some positive political or security developments take place. This will bring back real estate stocks’ performances into the green, and will help boost the BSI value.