Equity Markets in Metldown amid Rising Risks


27/10/202320/10/2023% Change
BLOM Stock Index               1,611.915  1,722.138-6.40%
Average Traded Volume                    72,553       24,475196.44%
Average Traded Value               3,787,455     847,109347.10%

The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis dropped weekly by 6.40% to reach 1,611.915 on October 27, 2023 down from 1,722.138 on October 20, 2023. The BSI drop could be attributed to traders’ reactions to a new announcement from the Beirut Stock Exchange. The announcement requires traders to pay a portion of their trader commissions in fresh cash dollars. This circular likely prompted increased trading activity throughout the week as traders rushed to execute buy and sell orders at any available price. The sudden change in payment requirements and the resulting frenzy in the market contributed to the significant drop in the BSI, in addition to the risky political environment in the Middle East because of the Israel-Hamas war.

Meanwhile, the market capitalization on the Beirut Stock Exchange (BSE) decreased weekly from $17.65B to $16.52B. The average volume and value of trades also totaled 72,553 shares worth $3,787,455 compared to 24,475 shares worth $847,109 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 98.90%, while the banking sector and industrial sector grasped the remaining shares of 0.69% and 0.41%.  The most noteworthy trades throughout the mentioned period included:

  • Solidere (A) shares declined by 9.87% to settle at $68/ share
  • Solidere (B) shares contracted by 4.68% to settle at $69.25/ share
  • HOLCIM shares went down by 5% to settle at $57/share
  • BLOM GDR shares dropped by 6.98% to settle at $2/ share
  • BLOM Listed shares retreated by 6.25% to settle at $3/share
  • Audi GDR shares dropped by 13.97% to settle at $1.17/ share
  • Byblos Listed shares plunged by 6.58% to stand at $0.71/ share

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 39.62 by October 27, 2023.

Uncertainty and geopolitical tensions in the Middle East pushed the global equity markets down this week as investors seek safer assets such as Gold and T-bills. As such, the Arab stock market contracted this week as S&P Pan Arab and MSCI dropped respectively by 3.33% and 3.77% to stand at 859.04 and 920.78 by the end of this week. Moreover, the bourse of Egypt expanded by 7.61% while most of the Arab bourses dropped in the wake of war in Palestine. Qatar, Kuweit, and Saudi Arabia contracted respectively by 4.92%, 4%, and 2.31% while UAE slightly recorded a 0.81% drop by October 27, 2023.

Same for the Western markets, S&P 500 and NASDAQ decreasing respectively by 4.88% and 7.21% weekly to stand at 4,137.23 and 12,595.61 points by October 27, compared to the previous week. Elsewhere, DAX dropped by 3.23% to reach 14,788.34 on Friday October 27, 2023 while CAC 40 declined by 1.08% to 6,846.85 down from last week 6,921.37 points. Furthermore, FTSE 100 decreased by 3.16% to stand at 7,363.03 points by the end of this week while Japan market recorded a loss of 4.10% on a weekly basis to settle at 30,991.69 down from 32,315.99 in the previous week.

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