| 3/11/2023 | 27/10/2023 | % Change | |
| BLOM Stock Index | 1,580.076 | 1,611.915 | -1.98% |
| Average Traded Volume | 106,940 | 64,540 | -100.00% |
| Average Traded Value | 6,807,871 | 3,297,397 | -100.00% |
The BLOM Stock Index (BSI) compiled by BLOMInvest Bank on a daily basis dropped weekly by 1.98% to reach 1,580.076 on November 3rd, 2023 down from 1,611.915 on October 27, 2023. This decline can be attributed to the new announcement made by Beirut stock exchange, which mandated traders to pay a portion of their commissions in fresh cash dollars. The abrupt change in payment requirements coupled with the volatile political situation in the Middle East due to the Israel-Hamas conflict, contributed to the substantial drop in BSI’s value. As a result of this, there were very active trades before the end of the month, however they had dropped to 0 by November 3rd.
Meanwhile, the market capitalization on the Beirut Stock Exchange (BSE) decreased weekly from $16.52B to $16.19B. The average volume and value of trades also totaled 106,940 worth $6,807,871 compared to 64,540 shares worth $3,297,397 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 99.66%, while the banking sector and industrial sector grasped the remaining shares of 0.13% and 0.22%. The most noteworthy trades throughout the mentioned period included:
As for the BLOM Preferred Shares Index (BPSI), it remained constant at 39.62 by November 3rd, 2023.
The Arab stock market expanded this week as S&P Pan Arab and MSCI rose respectively by 4.39% and 3.10% to stand at 896.25 and 948.26 by the end of this week. Moreover, the bourse of Qatar, Saudi Arabia and UAE expanded respectively by 7.25%, 5.09% and 3.91% while bourse of Tunisia and Morocco contracted respectively by 0.37% and 0.5% by November 3rd, 2023. Indeed, Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed’s policy moves closely. Therefore, stock market in the most gulf countries closed higher on Friday, in line with global equity markets, as investors cheered a pause in U.S. interest rate hikes, improving sentiment across most asset classes. However, geopolitical concerns could continue to weigh on the market
Similarly, S&P 500 and NASDAQ rose respectively by 5.85% and 6.61% weekly to stand at 4358.33 and 13478.28 points by November 3rd, compared to the previous week. Indeed, investors are tempted again into the U.S. stock market following news of smaller than expected US government borrowing and signs that the Federal Reserve is nearing the end of its rate hiking cycle. Moreover, the relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
Europe’s stock market posted its biggest weekly gain since March on Friday, as signs of an end to monetary policy tightening by major central banks boosted sentiment. Indeed, DAX Germany, CAC France and FTSE 100 Britain rose respectively by 3.11%, 3.71% and 1.73% to stand at 15189.25, 7047.50 and 7417.73 on November 3rd, 2023. Moreover, the inflation rate in the Euro Area declined to 2.9% year-on-year in October 2023, reaching its lowest level since July 2021 and falling slightly below the market consensus of 3.1%, as a preliminary estimate showed. Additionally, Japan market recorded a gain of 5.54% on a weekly basis to settle at 32,708.48 up from 30,991.69 in the previous week.