Week 12 Economic Report - Lebanon

CORPORATE NEWS

BBAC’s net profits up by 22.9% to US$ 20.8 million in 2007
Bank of Beirut and the Arab Countries (BBAC) posted US$ 20.8 million in 2007 net profits, up by 22.9% from US$ 16.9 million in 2006.

Intercontinental Bank of Lebanon to increase capital by US$ 20 million

Banque BEMO Saudi Fransi gets final affiliate finance unit license

ATFP grants Byblos Bank a US$ 25 million credit line


MARKETS IN BRIEF

Rising interest in Lebanese Eurobonds after the recent cut in US interest rates
Lebanese capital markets were affected by internal and external factors that contributed to boosting their performance during this week that was shortened to three working days due to the holidays. On the Eurobond market, both local and foreign investors showed appetite for Lebanese debt instruments after the US Federal Reserve announced the cut of interest rates by 75 basis points. It is worth mentioning that some market players consider placing funds in Lebanese Eurobonds a lucrative investment, especially when taking into account the diversification of the investment portfolio, the low correlation between the Lebanese debt instruments and Eurobonds in other emerging markets, and the clean record of the Lebanese government. Within this context, bond prices improved this week and the average spread widened slightly by four basis points to reach 631 basis points due to a decrease in Lebanese yields and a slightly higher decline in benchmark yields. At the level of the equity market, all eyes were directed towards the announcement made by Bank Audi sal-Audi Saradar Group about holding exploratory discussions with EFG-Hermes Holding sae regarding a possible combination of the two institutions. This news contributed to bolstering activity on the BSE with the trading volume index surging by 142.5%. The total trading value amounted to US$ 12.8 million in three working days against US$ 8.8 million for last week’s five working days, noting that Bank Audi captured 71.5% of activity and its listed shares and GDRs prices reached a record high level, reporting a week-on-week increase of 15.0% and 7.7% respectively. Under such conditions, the price index increased by 2.8% this week to close at 150.43.


--Source-- Bank Audi >> Full PDF



tags: economic report, lebanon, beirut, lebanese, week 12, march 2008, bank audi, finance, weekly report

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