Arab Markets Surge While Global Indices Struggle

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily increased weekly by 0.68% to 2,172.8 points on November 1^st, 2024.

On the Beirut Stock Exchange (BSE), the real estate sector dominated trading, accounting for 98.58% of the exchange’s total trading value, followed by the Banking sector’s 0.95% stake and the Industrial sector’s 0.47% 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 November 1^st, 2024.

Internationally, U.S. stock markets incurred losses this week due to post-earnings slumps in Microsoft and Meta Platforms that dragged down big tech companies with it. Additionally, uncertainties surrounding the upcoming US presidential election and its potential effect on inflation, and consequently the Federal Reserve interest rate policy, led to cautious trading.

Across the Atlantic, all European stock benchmarks declined this week, primarily influenced by weak earnings reports and higher than expected inflation in the Eurozone. October’s consumer price index rose to 2% YoY, from 1.7% in September, surpassing economists’ 1.9% prediction. In the UK, the FTSE 100 also dipped as traders reacted to UK Chancellor Rachel Reeves’ announcement of £32 billion in additional borrowing in her first Budget, which shifted expectations regarding interest rates and heightened fears of a prolonged inflationary environment.

Asian stock markets showed mixed results this week. Japan’s Nikkei rose by 0.37% to 38,054, while Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index fell by 0.41% and 0.84% to 20,506 and 3,272 points, respectively. The declines in China and Hong Kong were due to investor concerns about China’s economic outlook and caution ahead of the US presidential election. The International Monetary Fund (IMF) warned of increased risks to Asia’s economy from trade tensions and China’s property sector issues.

As for the MSCI Emerging Market index, it fell this week by 1.1% to 1,122 points.

Arab stock markets mainly rose this week, with the Dubai Financial Market and Kuwaiti Market leading the gains. The positive sentiment in the region is attributed to easing geopolitical tensions amid potential ceasefire negotiations between Israel and Lebanon. Notably, the Dubai Financial Market reported a 60% increase in net profit (pre-tax) for the first nine months of 2024, which is expected to attract more trading activity and investment interest, further boosting the DFM index.

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