Week 10 Economic Report - Lebanon

SURVEYS

p.4 Lebanon loses 11 ranks in 6 months as per Euromoney’s country risk rankings
In its semi-annual survey on the country risk of 185 countries conducted in March 2008, Euromoney magazine ranked Lebanon in 127th place worldwide, thus demoting its rank by 11 notches from the 116th place globally in its previous survey of September 2007.


CORPORATE NEWS

p.5 Fransabank posts US$ 60.7 million in 2007 net profits
Fransabank reported US$ 60.7 million in net profits in 2007, up by 12.2% from US$ 54.1 million in 2006.

p.5 Banque Libano-Française’s net profits up by 29.7% to US$ 54.5 million in 2007

p.5 Credit Libanais posts US$ 30.5 million in 2007 net profits


MARKETS IN BRIEF

p.6 The Eurobond swap operation captures market players’ interest
Lebanese capital markets were dominated by a wait-and-see mood this week, with all eyes directed towards the new 5-year sovereign bond issue amounting to US$ 875 million for a yield of 9.25%. The issue was managed by Bank Audi and Credit Suisse and its proceeds will be used in settling a previous sovereign bond maturing on March 12, 2008 for an amount of US$ 700 million. Within this context, the Central Bank’s Governor stated recently that the swap operation shall close successfully thanks to the adequate liquidity available in capital markets. In fact, the commercial banks’ primary foreign currency liquidity rose by 9.5% in 2007 and by a CAGR of 13.7% over the past five years, which reflects the mounting investment opportunities available at commercial banks, with these latter assumed to be the major subscribers in the new issue. Under such conditions, a calm mood reigned over the Eurobond market except for some modest selling operations taking place. The average spread widened significantly by 40 basis points to 631 basis points due to a rise in Lebanese yields and decline in benchmark yields. As to the equity market, a weak activity continued to govern within the context of the persisting local political impasse. The total trading value amounted to US$ 9.7 million and the price index nudged down by 0.3% to 144.81. On the foreign exchange market, activity was mostly balanced this week. Only a modest surplus of the US Dollar offer appeared on Monday and Wednesday, which called for the Central Bank’s intervention as a buyer of the green currency at LP 1,512.5.


--Source-- Bank Audi >> Full PDF


BLOM Week 10 - Lebanon Economic Report - Full PDF

Byblos Week 10 - Lebanon Economic Report - Full PDF



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