Positive Political Discussions Boost the Lebanese Bourse During the Week

Considering the positive impact of discussions for regarding the fiscal budget for 2015, after 3 ministries’ budgets were approved as well as the allocation of funds to all the ministries, the Lebanese Bourse saw higher trading activity through the week. The BLOM Stock Index (BSI) mirrored the stock market’s performance and increased by 0.17% to 1,193.65 points this week, broadening its year-to-date gains to 2.00%

 Average daily traded volume went up to 397,118 shares worth $3.46M compared to 128,093 shares worth $2.46M last week. Market capitalization expanded from $10.03B to $10.05B.

 On a comparative scale, the BSI outperformed the S&P Pan Arab Composite Large-Mid-Cap Index, S&P AFE 40 Index and the Morgan Stanley Emerging Markets Index (MSCI) which respectively lost 1.39%, 2.36% and 2.24% since last week.

 On the regional front, most GCC Bourses took a heavy hit due to the 6% decline in Brent crude oil during the week, bearing in mind that Saudi Arabia has shipped, in the month of March alone, their highest level of oil since November 2007. Qatar’s Stock Exchange was the worst performer, plunging by 4.35% as 14 FIFA officials were arrested due to fraud, bribery and racketeering charges. This opens the door for many countries to bid for the 2022 World Cup. Dubai’s Bourse also ticked down by 2.87% followed by Abu Dhabi that posted a weekly downturn of 1.92%.

 Worth mentioning, Federal Reserve statement about raising interest rates might affect some equity markets in the region since all Gulf States are pegged to the dollar.

 In contrast, Amman’s Stock Market was the best performer, increasing by 0.58% from last week, followed by Tunisia’s and Muscat’s Stock Markets that up-ticked by 0.56% and 0.11%, respectively.

 Back to Lebanon, the banking sector grasped 87.60% of total traded value, while the real estate sector contributed to the remaining 12.40%.

 In the banking sector, BLOM Bank listed and GDR shares gained 1.05% and 0.50% to end the week at respective levels of $9.60 and $10.05, noting that 500,165 BLOM’s common shares were cross traded. Bank Audi GDR shares also increased by 0.61% to $6.59 while its common shares lost 0.16% to $6.11.

 The BLOM Preferred Shares Index (BPSI) edged down by 0.01% to 104.43 points, on the back of BLC Preferred shares class “C” declining by 0.99% to $100.00 by the end of the week. Meanwhile, Byblos preferred shares 2008 went up by 0.10% to $100.30, over the same period.

 In the real estate sector, Solidere shares class “B” lost 0.26% to close the week at $11.38 while it’s “A” counterpart traded at last week’s quote of $11.50. Solidere declared its results for year 2014, achieving consolidated profits of $113.70M and the possibility to distribute dividends after a 3 year halt.

 Looking ahead, the expected final cabinet meeting relating to 2015 budget is expected to keep on positively impacting the Beirut Stock Exchange. However, the parliamentary session, scheduled next week on the 3rd of June, may have a considerable influence on trading activity if any political breakthrough was reached.

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