The Lebanese Bourse recovered from a lackluster performance a week ago, where the BLOM Stock Index (BSI) registered a weekly increase of 1.22%% to 1,204.52 points, broadening its year-to-date gain to 2.93%.
As for the average daily traded volume, it went down to close at 125,245 shares worth $1,458,594 compared to 131,496 shares summing to $1,307,087 last week. In the same context, market capitalization expanded from $10.05B to $10.14B.
On a comparative scale, the BSI outpaced the S&P Pan Arab Composite Large-Mid-Cap Index, the S&P AFE 40 Index and the Morgan Stanley Emerging Markets Index (MSCI), which gained weekly 0.24%, 0.45% and 1.06%, respectively.
On the regional front, some GCC Bourses trailed despite oil prices rallying by 1.80% from May 8th. Egypt’s stock market was the worst performer, declining by 5.02%, which was dragged by Telecom Egypt Co, whose price tumbled after its exclusion from MSCI Emerging Markets Index. Furthermore, Egypt’s government lately finalized the tax regulation on capital gains and dividends (10%), causing investors to go on a frenzy. Dubai’s bourse then followed, ticking down by 0.75% followed by Kuwait with a downturn of 0.63% weekly.
The main gainers in the region were Tunisia with a 2.41% increase during the week, followed by Qatar and Abu Dhabi with respective upturns of 1.90% and 1.65%, over the same period. Qatar’s bourse might have improved considering that the Qatari government offered international oil and gas companies to compete for expansion and development of its offshore biggest oil field called the Al-Shaheen reservoir.
Back to Lebanon, the banking sector grasped 73.21% of total traded value, while the real estate sector contributed to the remaining 26.18%.
In the banking sector, BLOM listed and Byblos listed shares gained 2.15% and 2.34% to end the week at $9.50 and $1.75, respectively. Worth mentioning, that 95,065 BLOM listed shares were cross traded. Furthermore, Audi common shares up ticked weekly by 0.32% to settle at $6.19 while its GDR shares lost 0.15% to close at $6.55.
The BLOM Preferred Shares Index (BPSI) declined by 0.81% to 104.92 points, on the back of Bank of Beirut preferred shares classes “E” and “F” both edging down weekly by 3.77% to the same quote of $25.50, in addition to its preferred shares class “I” decreasing by 2.50% to close the week at $25.35. Moreover, BLC shares class “A” dropped by 3.85% to $100, over the same period as BLC announced that the ex-dividend date was on the 13th of May 2015.
The real estate sector experienced a positive performance, where Solidere classes “A” and “B” shares augmented by 2.31% and 3.41% to close the week at respective quotes of $11.51 and $11.52.
In the industrial sector, HOLCIM shares recovered during the week, from last week’s 9.78% fall, edging up by 10.37% to settle at $16.18.
Looking ahead, the stock market activity will rely on the ongoing cabinet budget discussions and the outcome of public sector wage hike. Notably, Lebanon’s Finance Minister warned against the possible loss of up to $1.2B in soft loans including $600M from the World Bank if the parliament doesn’t convene to approve the necessary laws.