Equity Markets Rally after US Economic Data and China’s Comprehensive Monetary Stimulus Package
| 27/09/2024 | 20/09/2024 | % Change | |
| BLOM Stock Index | 2,051.63 | 2,010.7 | 2.03% |
| Average Traded Volume | 27,489.4 | 29,457.5 | -6.68% |
| Average Traded Value | 1,296,811.2 | 1,908,477 | -32.05% |
| Market Cap | 21,027,440,708 | 20,608,222,347 |
The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily increased weekly by 2.03% to reach 2,051.63 on September 27th, 2024 up from 2,010.7 on September 20th, 2024.
On the Beirut Stock Exchange (BSE), the real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 96.64%, the banking sector grasped 3.12%, while the industrial sector grasped the remaining 0.24% stake. The most noteworthy trades throughout the mentioned period included:
| 27/09/2024 | 20/09/2024 | % Change | |
| Solidere (A) | 90.25 | 88 | 2.56% |
| Solidere (B) | 89.5 | 86 | 4.07% |
| BLOM GDR | 3.01 | 3.5 | -14.00% |
| HOLCIM | 63.15 | 63 | 0.24% |
| 27/09/2024 | 20/09/2024 | % Change | |
| BLOM preferred Shares Index | 27.78 | 27.78 | 0.00% |
As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on September 27th, 2024.
| Index | Currency | 27/09/2024 | 20/09/2024 | % Change |
| S&P 500 | USD | 5,745.37 | 5,702.55 | 0.75% |
| Dow Jones | USD | 42,175.11 | 42,063.36 | 0.27% |
| NASDAQ Comp | USD | 18,190.29 | 17,948.32 | 1.35% |
*prices are as of the time of writing this report
US stock markets rose over the course of the week following encouraging economic and labor market data. Traders expect more interest rate cuts by the Federal Reserve as consumer confidence data reached its three-year low and recording 98.7. Moreover, the US economy grew by 3% (QoQ) in the second quarter of 2024 in addition to the decrease in jobless claims this week, assisting Federal Reserve in taking the decision to cut rates in November. Semiconductor stocks rallied this week with Micron shares leading the increase by 14.7% after the release of the company’s earnings followed by Applied Materials with an increase of 6.2%.
| Index | Currency | 27/09/2024 | 20/09/2024 | % Change |
| DAX | EUR | 19,315.56 | 18,720 | 3.18% |
| FTSE 100 | GBP | 8,312.9 | 8,229.99 | 1.01% |
| CAC 40 | EUR | 7,758.1 | 7,500.26 | 3.44% |
| STOXX600 | EUR | 526.81 | 514.26 | 2.44% |
*prices are as of the time of writing this report
Across the Atlantic, European stocks rose over the course of the week as STOXX 600 increased by 2.44%. The European markets are ending the week with an increase supported by sectors with large exposure to China which implemented policy support measures to boost the economy. In addition, latest inflation rates released for France and Spain increased the bets for another rate cut of 25 bps by the European Central Bank (ECB) in October.
Similarly, DAX Germany, CAC 40 and FTSE 100 rose by 3.18%, 3.44% and 1.01% respectively reaching 19,315.56, 7,758.1 and 8,312.9.
| Index | Currency | 27/09/2024 | 20/09/2024 | % Change |
| NIKKEI | JPY | 39,829.56 | 37,723.91 | 5.58% |
| Hang Seng | HKD | 20,632.3 | 18,258.57 | 13% |
| Shanghai Comp | CNY | 3,087.53 | 2,736.81 | 12.81% |
*prices are as of the time of writing this report
In Asia, Hong Kong equity market led the Asian Markets gains this week, with an increase of 13% to reach 20,632.3 by September 27th, 2024 after China’s fiscal and monetary measures recently taken by China to boost economic growth.
Likewise, Shanghai Composite index increased by 12.81% this week supported by the comprehensive monetary stimulus package which included a 50 basis point cut to banks’ reserve requirements which will free up to one trillion Yuan in capital.
| Index | Currency | 27/09/2024 | 20/09/2024 | % Change |
| MSCI Emerging Market | USD | 1,136.8 | 1,106.44 | 2.74% |
*prices are as of the time of writing this report
The MSCI Emerging Market index improved by 2.74% to reach 1,136.8.
| Index | Currency | 27/09/2024 | 20/09/2024 | % Change |
| S&P Pan Arab | USD | 998.31 | 982.37 | 1.62% |
| EGX30 – Egypt | EGP | 31,276.91 | 30,937.69 | 1.10% |
| Saudi Stock Exchange | SAR | 12,374.30 | 12,080.47 | 2.43% |
| Qatar Stock Exchange | QAR | 10,581.66 | 10,464.15 | 1.12% |
| Abu Dhabi Securities Exchange | AED | 9,488.50 | 9,438.51 | 0.53% |
| Dubai Financial Market | AED | 4,526.61 | 4,436.37 | 2.03% |
*prices are as of the time of writing this report
The Arab Stock Market increased over the course of the week, in line with global markets with Saudi Stock Exchange (TASI) leading the increase with 2.43%.
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