Global Markets Surged over the Course of the Week and so did the BSI

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily increased weekly by 1.41% to reach 1,739.24 on August 16^th, 2024 up from 1,715.09 on August 9^th, 2024.

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 98.67%, while the banking sector came next with a 1.02% stake along with the industrial sector with a 0.32% stake. The most noteworthy trades throughout the mentioned period included:

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on August 16^th, 2024.

Moving to the global markets, U.S. stocks rallied this week with all 3 of its main indices S&P 500, Nasdaq and Dow being on track to mark their best weekly performance this year. Earlier recession fears and last week’s market turmoil calmed this week after official data showed that the world’s biggest economy is stronger than markets have priced. On one hand, US Inflation fell to 2.9% in July 2024, its lowest level for inflation since March 2021. And on the other hand, Retail sales data came in much stronger than economists expected, with an increase of 1% in July, compared to a 0.3% increase estimate, while weekly jobless claims fell. These factors raised hopes that a soft landing scenario was still possible, and that the US Federal Reserve will begin cutting interest rates at its next policy meeting.

Across the Atlantic, Europe stocks got a boost from Wall Street’s gains. The European index Stoxx 600 increased by  more than 2% this week to reach around €512 putting it on course for its best performance since May 10. FTSE 100 also increased by 2% this week to record £8,332 after UK inflation rate increased by less than expected in July to record a 2.2% increase annually, while the economy grew by 0.6% in the last quarter.

In Asia, Japanese equities led the Asian Markets gains this week, to record their biggest weekly advance since April 2020, as the optimistic risk sentiment dominated global markets movements. At the same time, Japanese stocks performance got a lift from Japan’s GDP growth last quarter that outperformed expectations and by the renewed weakness for yen that resulted from Japanese Prime Minister Fumio Kishida’s stepping down announcement. In China, stocks increased as official data showed a sign of stability in the economy. This came as a result of China’s slowing pace of house prices decrease in July, a sign that the government’s efforts to revive the market are giving fruitful results, and as China’s retail sales in July beat expectations.

Similarly, the MSCI Emerging Market index also scored some weekly gains as it surged by 1.18% to reach $1076.

The Arab Stock Market rallied this week along with its international peers with Egypt’s EGX 30 index and the Saudi Stock Exchange index TASI leading this hike with respective surges of 3% and 2.1%.