The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily rose weekly by 2.08% to 2,146.69 points on November 29th, 2024. This increase is largely attributed to the recent ceasefire agreement between Lebanon and Israel, which has boosted investor confidence and optimism about economic stability in Lebanon. As the prospects for a lasting peace improve, the market has responded positively, reflecting hopes for future economic growth and stability.
On the Beirut Stock Exchange (BSE), the real estate sector dominated trading, accounting for 92.05% of the exchange’s total trading value, while the remaining were by the banking sector (2.93%) and industrial sector (5.02%). The most noteworthy trades throughout the mentioned period included:
As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78.
U.S. stock indices recorded gains this week, with the S&P 500 rising by 0.49%, the Dow Jones increasing by 0.96%, and the NASDAQ Composite gaining 0.30%. Markets were closed Thursday for Thanksgiving and are set to close early on Friday. S&P 500 and Dow Jones recorded new historical highs on Tuesday as the post-Trump effect on US stocks continued. Markets welcomed Trump’s nomination of Scott Bessent for Treasury secretary. In a CNBC interview after Trump’s victory, and prior to Bessent’s nomination, Bessent predicted that Trump’s policies would reduce inflation and boost growth. On Wednesday, US markets fell as investors took profits following November’s strong rally.
Across the Atlantic, European stock markets had mixed performances this week. The DAX rose by 0.46% to 19,410.63, and the FTSE 100 increased by 0.22% to 8,280.32. However, the CAC 40 fell by 1.04% to 7,179.87, and the STOXX600 declined by 0.21% to 507.39. The French stock markets saw a brief rebound after Prime Minister Michel Barnier abandoned plans to raise electricity taxes, calming fears of government collapse amid National Rally party pressure. Amid these political uncertainties, European banking stocks fell. The European auto sector also recorded weekly losses due to US tariff threats, and the energy sector underperformed as oil prices fell.
Asian stock markets had varied performances this week. Japan’s Nikkei 225 declined by 0.20% to 38,208.03 JPY, largely due to the Yen’s strengthening, making Japanese stocks more expensive for holders of other currencies. In contrast, the Hang Seng index in Hong Kong rose by 1.01% to 19,423.61 points, while the Shanghai Composite index climbed by 1.81% to 3,326.46 points. This rise was driven by expectations that Beijing will announce additional stimulus measures during key policy meetings in December, including the Politburo meeting and the Central Economic Work Conference. Investors are closely watching these events for potential policy updates.
As for the MSCI Emerging Market index, it also fell this week by 0.58% to record 1,079 points.
Arab stock markets showed mixed performance this week. The S&P Pan Arab index fell by 0.80% to 963.54 points, while Kuwait’s Bourse dropped by 1.08% to 7,751.36 points. The Saudi Stock Exchange declined by 1.68% to 11,641.31 points. In contrast, the Qatar Stock Exchange rose by 0.22% to 10,417.82 points, and the Abu Dhabi Securities Exchange increased by 0.44% to 9,272.50 points. Dubai Financial Market outperformed others with a 2.71% gain, reaching 4,851.78 points. The ceasefire between Lebanon and Israel eased geopolitical tensions, boosting stock performance. However, fluctuating oil prices negatively impacted markets, especially in oil-dependent economies like Saudi Arabia. Additionally, the Saudi government’s decision to scale back projects such as the Neom development reduced investor appetite for the country’s stock market.
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