The Beirut Stock Exchange Mimicked the Global Bearish Equity Trend

The BLOM Stock Index (BSI) lost 0.49% over the past week to register 1,168.91 points. The average traded volume and value shrank substantially from 215,424 shares worth $3.44M to 93,184 shares worth $965,131. Accordingly, the market capitalization decreased from $9.89B to $9.84B. 

The BSI managed to outperform 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 recorded respective weekly losses of 5.97%, 5.66% and 3.99%. 

On the regional front, all stock markets closed in the red as oil prices and global emerging markets extended their slump. Dubai ‘s Stock Market was the worst performer, dropping by a weekly 10.17%, followed by Egypt’s Stock Exchange and Saudi Arabia’s Bourse with weekly declines of 8.97% and 7.73%, respectively. Even though Dubai’s economy is relatively well insulated from tumbling oil prices, there is concern over the impact of cheap oil on neighboring economies, and a possible withdrawal of money by Saudi investors injured by the plunge of their own stock market.

Back to the Beirut Stock Exchange, the banking sector captured 81.50% of the total traded value during the week while the real estate sector grasped 17.32% and the industrial sector 1.18%.

 BLOM Bank’s listed shares and Audi GDR shares lost 1.04% and 0.33% over the past week to reach $9.5 and $5.99, respectively. In contrast, Audi listed shares gained 0.84% to stand at $6.

The BLOM Preferred Shares Index fared better, adding 0.09% to 105.18 points. In details, Audi preferred shares class “H”, Bank of Beirut (BoB) preferred shares class “H” and BLOM preferred shares 2011 added 0.10%, 0.59%, and 0.50% to end the week at $100.70, $25.75, and $10.15, respectively. Meanwhile, Byblos preferred shares 2008 and BLC preferred shares class “B” lost 0.10% and 0.50% to $101 and $100, respectively.

In the real-estate sector, Solidere shares classes “A” and “B” shed 1.44% and 5.53% to $10.95 and $10.76, respectively.

In the industrial sector, HOLCIM shares added 1.19% to settle at $15.28.

For the coming weeks, it is expected that the political developments as well as the sluggish economic performance will continue to weigh on the BSE.


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