the lebanon weekly monitor -...

1Week 34 August 13 - August 19, 2012

AUGUST 13 - AUGUST 19, 2012

WEEK 34

Bank Audi sal - Audi Saradar Group - Group Research Department - Bank Audi Plaza - Bab Idriss - PO Box 11-2560 - Lebanon - Tel: 961 1 994 000 - email: [email protected]

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Nadine Akkawi(961-1) [email protected]

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Corporate Banking

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LEBANON MARKETS: WEEK OF AUGUST 13 - AUGUST 19, 2012

The LEBANON WEEKLY MONITOR

Economy___________________________________________________________________________p.2 RETRENCHMENT OF ARAB VISITORS WEIGHS ON TOURISM AND AIRPORT ACTIVITY IN THE FIRST SEVEN MONTHS OF 2012 The latest figures on airport and touristic activity covering the first seven months of 2012 revealed a significant slowdown in the growth of the number of incoming passengers which also reported their first annual drop this year during July 2012, while tourists are still refraining from visiting Lebanon and their number has therefore sustained its annual decline. Also in this issuep.3 Public indebtedness at 135.6% of GDP at end-June 2012p.3 Revenues of the Port of Beirut up by 8.7% year-on-year in the first seven months of 2012p.4 Clearing activity practically stable in the first seven months of 2012

Surveys___________________________________________________________________________p.5 ESCWA FORESEES 2.5% REAL GDP GROWTH IN 2012 FOR LEBANESE ECONOMY The ESCWA released a report on the economic and social developments in West Asia in which it indicated that Lebanon would record a real growth of 2.5% in 2012, slightly up from the 2.0% it had recorded in 2011 but significantly lower than the 8.5% and 7.0% posted in 2009 and 2010 respectively.

Also in this issuep.6 77% of the Lebanese believe that 2011 was a “bad time” to find a job, as per Gallup

Corporate News___________________________________________________________________________p.7 BASSOUL-HENEINE APPOINTED EXCLUSIVE HUSQVARNA MOTORCYCLES AGENTMotor vehicle distributor Bassoul-Heneine announced that it was appointed as sole distributor of Husqvarna motorcycles in Lebanon. According to company sources, this step is in line with the company’s efforts to expand its products and business framework.

Also in this issuep.7 Lebanese-owned CMA CGM Group regroups multi-modal subsidiaries into Greenmodal Transportp.8 Syrian Lebanese Commercial Bank’s total assets at US$ 456.1 million at end-2011

Markets In Brief___________________________________________________________________________p.9 FOREIGN OFFER ALONG WITH CAUTIOUS LOCAL MOOD ON BOND MARKET Lebanese capital markets saw this week some demand for the US Dollar on the FX market, a rise in the cost of insuring debt on the Eurobond market, and a further decline in the price index on the equity market. In details, the FX market saw some demand for the green currency that triggered a rise in the LP/US$ interbank rate from LP 1,501-LP 1,504 last week to LP 1,505-LP 1,508 this week, yet without calling for the BDL’s intervention on the market. At the level of the Eurobond market, some foreign offer, originating mainly from US funds, was observed this week, while local investors preferred to maintain a wait-and-see attitude, showing some reluctance to use their FC liquidity within the context of the recent adverse local political and security developments. Under these conditions, Lebanon’s five-year CDS spread widened from 480-500 bps last week to 500-525 bps this week. At the level of equity market, the price index reported a further slight decline of 0.8% week-on-week. The total trading value was limited to US$ 4 million, versus US$ 14 million last week and an average weekly trading value of US$ 9 million since the beginning of the year 2012.



WEEK 34

ECONOMY_____________________________________________________________________________RETRENCHMENT OF ARAB VISITORS WEIGHS ON TOURISM AND AIRPORT ACTIVITY IN THE FIRST SEVEN MONTHS OF 2012

The latest figures on airport and touristic activity covering the first seven months of 2012 revealed a significant slowdown in the growth of the number of incoming passengers which also reported their first annual drop this year during July 2012, while tourists are still refraining from visiting Lebanon and their number has therefore sustained its annual decline. Indeed, such a performance is mainly tied to the decline in the arrivals of those of Arab origin which have been somewhat dissuaded from visiting the country since mid-May 2012.

In details, the latest statistics published by the Rafic Hariri International Airport showed that the number of arriving passengers increased by 6.4% to reach 1,713 thousand in the first seven months of 2012 driven mainly by arrivals of Lebanese expatriates while those of Arab origin have relatively scaled back their visits to Lebanon. Indeed, the number of incoming passengers has risen at a slower pace from the double-digit annual growth it had posted during previous months of 2012. It is also noteworthy that during the month of July 2012 the aforementioned indicator registered its first annual decline this year of 12.5%. In parallel, the number of aircrafts passing through the Rafic Hariri Airport has shown a weaker momentum during the first seven months of 2012. In fact, airplanes using the airport went up by a mere 1.8% during the aforesaid period of 2012 and reported a decline of 5.4% year-on-year during July 2012 with a drop of 5.8% in the number of incoming aircrafts and 5.1% in that of the departing ones.

Furthermore, Lebanon’s tourism sector remains under the influence of developments from neighboring countries, thus creating spillover fears through several linkages, of which land traveling. The decline in the aggregate number of tourists accelerated to a double-digit rate of 12.4% to reach 871,090 tourists as land travel concerns were exacerbated by the recent developments in the local arena. Indeed, the number of incoming Arab visitors reported an annual decline of 7.0% during the first seven months of this year, after a gradual slowdown witnessed during previous months of 2012. The breakdown of tourists by nationality showed that the French accounted for the majority of visitors with 8.4% of the total, followed by Iraqis with 8.3% of the total, then those from the US with 8.2%, and the Jordanians and Saudis each with 6.6% of the total.

Sources: Rafic Hariri International Airport, Ministry of Tourism, Bank Audi's Group Research Department

TOURISM AND AIRPORT ACTIVITY (FIRST SEVEN MONTHS OF THE YEAR)



WEEK 34

_____________________________________________________________________________PUBLIC INDEBTEDNESS AT 135.6% OF GDP AT END-JUNE 2012

According to figures released by the Association of Banks in Lebanon, the gross public debt reached US$ 55.2 billion at the end of June 2012, constituting an increase of 3.0% from end-2011, and of 5.2% from end-June 2011. When measured against the size of the economy, gross public debt accounted for 135.6% of GDP at end-June 2012, a ratio nearly constant when compared to that reported at the end of 2011.

Domestic debt edged down by 1.7% from end-2011 but was up by 1.1% from end-June 2011 to reach a total of US$ 32.2 billion at end-June 2012. Lebanon’s external debt reported an increase of 10.2% between end-2011 and end-June 2012 and was also up by 11.4% from end-June 2011 to attain US$ 23.1 billion.

The increase in gross public debt during the first half of 2012 comes along with an increase in public sector deposits at the Central Bank, which edged up by 15.6% from end-2011 and by 15.9% from end-June 2011 and stood at US$ 6.1 billion in the aforementioned period of 2012. The rise is mainly attributed to the fact that the Lebanese government hasn’t been apparently resorting to these deposits to finance its growing deficit. As to the public sector deposits at commercial banks, they went up by 1.4% from end-2011 and by 22.4% from end-June 2011 to stand at US$ 2.0 billion at end-June 2012.

As such, net public debt, which excludes the public sector’s deposits at the Central Bank and commercial banks from overall debt figures, increased by 1.6% from end-2011 and by 3.3% from end-June 2011 to reach a total of US$ 47.1 billion, of which net domestic debt amounting to US$ 24.0 billion at end-June 2012.

_____________________________________________________________________________REVENUES OF THE PORT OF BEIRUT UP BY 8.7% YEAR-ON-YEAR IN THE FIRST SEVEN MONTHS OF 2012

The latest statistics of the Port of Beirut showed that its revenues reached a cumulative US$ 100.5 million in the first seven months of 2012, up by 8.7% from the same period of 2011. It is noteworthy that the aforementioned total is the highest one reported since the same period of 2004, thus reflecting the growing trade activity as the Port handles the bulk of the exported and imported merchandise.

Such a fact is even more evident when looking at the tons of goods and the number of containers handled by the Port. In fact, both reported an annual increase of 9.2% and 6.5% respectively, to reach 4,144 thousand tons and 362,432 containers, also the highest levels seen since the first seven months of 2004. Conversely, the number of ships at the Port went down by 3.9% year-on-year to 1,202 vessels in the aforementioned period of 2012.

Sources: Association of Banks in Lebanon, IMF, Bank Audi's Group Research Department

DEBT-TO-GDP



WEEK 34

Sources: Port of Beirut, Bank Audi's Group Research Department

Sources: Association of Banks in Lebanon, Bank Audi's Group Research Department

REVENUES OF THE PORT (000s US$, FIRST 7M OF THE YEAR)

CLEARED CHECKS (US$ MILLION, FIRST 7M OF THE YEAR)

_____________________________________________________________________________CLEARING ACTIVITY PRACTICALLY STABLE IN THE FIRST SEVEN MONTHS OF 2012

The value of cleared checks in the banking system, a coincident indicator of overall spending patterns mainly in the investment component, pointed to an overall stabilization in levels during the first seven months of 2012 thus reflecting a relatively cautious mood mainly amongst investors, within the context of recent developments seen in the local arena, coupled with the intensification of tensions in neighboring countries. In fact, the value of cleared checks, as per the Association of Banks in Lebanon, totaled US$ 41,263 million during the aforementioned period of 2012, declining by a mere 0.1% from the same period of 2011.

In details, a breakdown by currency suggests that banks’ clearings in Lebanese Pounds amounted to LP 12,865 billion, up by 2.1% from the first seven months of 2011. As to those in US Dollars, they reached US$ 32,721 million in the first seven months of 2012, declining by 0.6% from the same period of 2011. Hence, the dollarization of cleared checks reported a slight decline from 80% in the first seven months of 2011 to 79% in the same period of this year.

The impact of the developments witnessed locally and in bordering countries is even more evident when looking at clearing activity during the month of July 2012. As a matter of fact, the latter saw its rising trend reversed during the month of July 2012 to report a drop of 9.7% year-on-year and reach US$ 6,461 million. Banks’ clearing in Lebanese Pounds amounted to LP 1,977 billion in July 2012, up by 7.7% from July 2011 while those in US Dollars reached US$ 5,150 million, down by 13.3% year-on-year.



WEEK 34

SURVEYS_____________________________________________________________________________ESCWA FORESEES 2.5% REAL GDP GROWTH IN 2012 FOR LEBANESE ECONOMY

The ESCWA released a report on the economic and social developments in West Asia in which it indicated that Lebanon would record a real growth of 2.5% in 2012, slightly up from the 2.0% it had recorded in 2011 but significantly lower than the 8.5% and 7.0% posted in 2009 and 2010 respectively.

Subsequent to the significant economic activity Lebanon had reported in 2008 and 2009, uncertainty returned in 2011 as social movements spread across the Arab world and their spillover effects reached the country, with the unrest in Syria affecting Lebanon. Real growth decelerated drastically from 7% in 2010 to 2% in 2011, as per ESCWA. While the tourism sector would continue to be affected by the crisis in Syria, increasing capital inflows and remittances from GCC countries would support growth, as per ESCWA. Real GDP would increase from 2% in 2011 to 2.5% in 2012.

In parallel, uncertainty is a major detriment to investment, as per ESCWA. Jordan and Lebanon will receive lower FDI given their proximity to Syria and vulnerability to the impact of the conflict. FDI inflows in Lebanon had dropped from US$ 4.5 billion in 2010 to US$ 3 billion in 2011.

An assessment of the employment intensity of growth in the ESCWA region over the last decade emphasizes the challenges in the region. Recent research has shown that the slow pace of job creation relative to economic growth is but one factor contributing to unemployment in the ESCWA region. On average, each per cent of GDP growth in the more diversified economies of the ESCWA region yielded employment growth of 0.74%, while each per cent of GDP growth in GCC countries yielded 0.66% employment growth. The ESCWA region shows a greater tendency to create jobs than other middle-income countries, as measured by the average employment to growth elasticity in the 2000-2008 period. In Lebanon, each per cent of GDP growth yielded 0.52% employment growth between 2000 and 2004, 0.37% employment growth between 2004 and 2008. On the overall, each per cent of GDP growth in Lebanon yielded 0.45% employment growth between 2000 and 2008.

REAL GDP GROWTH

Sources: Economic and Social Commission for West Asia, Bank Audi's Group Research Department



WEEK 34

_____________________________________________________________________________77% OF THE LEBANESE BELIEVE THAT 2011 WAS A “BAD TIME” TO FIND A JOB, AS PER GALLUP

Research and consulting company Gallup issued a survey covering 146 countries around the world in which it indicated that the Lebanese were mainly pessimistic about the job market in 2011, a perception in line with that seen in most of the countries within the MENA region as well as around the world.

In fact, 18% of Lebanese respondents believed that 2011 was a “good year” to find a job, while 77% opted for a “bad year” and 5% did not disclose an opinion. A look at the MENA region shows that 28% believed that 2011 was a “good year” to find a job, 64% stated that it was a “bad year” to do so and the rest did not disclose an opinion of the subject. When compared to other regions around the world, job seekers within the Middle East and North Africa had the most pessimistic point of view after those within Europe and before those within the Former Soviet Union.

Globally, Lebanon had the 33rd most pessimistic point of view towards the job market coming after Albania, Georgia and Lesotho while it was followed by Botswana, Czech Republic and Kenya. On a regional basis, Lebanon came fourth, after Egypt, Yemen and Palestine and before Sudan, Tunisia and Jordan.

PERCENTAGE OF PESSIMISTIC RESPONDENTS IN THE MENA REGION

Sources: Gallup, Bank Audi's Group Research Department



WEEK 34

CORPORATE NEWS_____________________________________________________________________________BASSOUL-HENEINE APPOINTED EXCLUSIVE HUSQVARNA MOTORCYCLES AGENT

Motor vehicle distributor Bassoul-Heneine announced that it was appointed as sole distributor of Husqvarna motorcycles in Lebanon. According to company sources, this step is in line with the company’s efforts to expand its products and business framework. Also, this move comes in response to the level of interest expressed by agents towards the Husqvarna brand during previous years.

The newly appointed distributor will have the full range of endurance bikes termed Enduro bikes and off-road bikes as well as its wide range of BMW and MINI. Bassoul-Heneine officials stated that working with Husqvarna motorcycles will enhance the company’s products especially with the fact that Lebanon is rich with amateurs of motorcycling.

Husqvarna Motorcycles has Swedish origins and has over one hundred years of history in motorcycle manufacturing. Husqvarna first began producing bicycles in the late 19th century. In 1903, they made the jump to motorcycle manufacturing. In 1920, Husqvarna produced its first own engine, a twin cylinder. In 1987, the Husqvarna motorcycle division was sold to Italian motorcycle group Cagiva and became part of MV Agusta Motor S.p.A. and production commenced in Italy. In the final months of 2007, Husqvarna Motorcycles was acquired by BMW Group which has several modern production sites across the world. All development, production, design, sales and marketing activities are centralized in Husqvarna Motorcycles' worldwide headquarters in Varese, Italy, which is one of the numerous cutting-edge BMW Group manufacturing facilities. The current range of Husqvarna Motorcycles, produced in Varese, can count on a broad diversification of models in Street, Enduro, Motocross, Supermoto and Dual Purpose categories, with two and four stroke engines. The synergy with BMW allows Husqvarna to develop new models as well as new vanguard engines.

Founded in 1951, Bassoul-Heneine is a Lebanese car dealership offering a wide variety of brands, namely, Renault, Dacia, Alfa Romeo, BMW, and MINI. _____________________________________________________________________________LEBANESE-OWNED CMA CGM GROUP REGROUPS MULTI-MODAL SUBSIDIARIES INTO GREENMODAL TRANSPORT

Lebanese owned CMA CGM announced the establishment of Greenmodal Transport which aims at providing door-to-door service by barge or rail with the “last kilometre” by truck. The objective is to promote modal transfers, with the main advantage being that as a multimodal operator Greenmodal Transport has total control over all means of transportation. As a result, any major logistics problem can be overcome by replacing one saturated or disrupted means of transport with another. Greenmodal Transport also offers solutions for equipments and containers (container storage, repairs, sale and rental) and goods (storage, packing, unpacking, palletizing).

The new organisation groups the following companies in the CMA CGM Group, the world’s third largest container shipping company: Rail Link Europe (offering combined rail-road services for France, Germany and Belgium) established in 2001, River Shuttle Containers (combined barge-road services) set up in 2000, Progeco (container storage and repairs) established in 1980, and TCX (warehouses) created in 1975. In 2011, the combined turnover of these companies, which between them employ 530 people, was € 120 million, as per CMA CGM.

Greenmodal Transport is the only operator, according to CMA CGM, that offers customers the possibility of all three modes: road, rail and inland waterway. The fact the five are complementary means they can offer a one-stop-shop of neutral, efficient and simplified services, with a single point of contact, to meet customer expectations with regards to container transportation, storage and repairs.

It is worth noting that CMA CGM had recently released its financials covering the first quarter of the year. CMA CGM carried volume grew by 13.4% year-on-year to 2.6 million twenty-foot equivalent unit in the



WEEK 34

_____________________________________________________________________________SYRIAN LEBANESE COMMERCIAL BANK’S TOTAL ASSETS AT US$ 456.1 MILLION AT END-2011

Syrian Lebanese Commercial Bank released financial highlights covering 2011 indicating that net interest income amounted to US$ 13.4 million in 2011, remaining almost constant from the total reported in 2010. Net fees and commission income amounted to US$ 4.7 million in 2011, against US$ 7.3 million in 2010. Subsequently, total operating income reached US$ 18.9 million in 2011, compared with US$ 20.3 million in 2010.

In parallel, loan impairment charges totaled US$ 13.7 million last year, up from US$ 0.9 million recorded in 2010. Consequently, net operating income reached US$ 5.2 million in 2011, declining from US$ 19.4 million in 2010. Total operating expenses amounted to US$ 5.2 million as well in 2011, down from US$ 5.5 million in 2010.

Total assets stood at US$ 456.1 million at end-2011, declining from the US$ 544.7 million total recorded at end-2010. Loans and advances to customers went down from US$ 105.7 million at end-2010 to US$ 103.1 million at end-2011. Customer deposits amounted to US$ 65.2 million at end-2011, against US$ 83.6 million at end-2010. Shareholders’ equity declined from US$ 117.9 million at end-2010 to US$ 116.8 million at end-2011.

Syrian Lebanese Commercial Bank was established in 1974 and provides commercial banking services including deposits, loans and credit cards. Its main shareholders include Commercial Bank of Syria, Syria’s Popular Credit Bank and the Syrian Insurance Company.

REVENUES OF CMA CGM (US$ BILLION)

Sources: CMA CGM, Bank Audi's Group Research Department

first quarter of 2012, while consolidated revenue increased by 2.6% to US$ 3.6 billion during the period.Founded in 1978, CMA CGM is the world’s third largest container shipping group and number one in France. CMA CGM is headquartered in Marseille (France), and operates out of over 650 offices and agencies in more than 150 countries.



WEEK 34

CAPITAL MARKETS_____________________________________________________________________________MONEY MARKET: GROWTH IN LP AND FC DEPOSITS WEEK-ON-WEEK

The money market continued to be marked by ample local currency liquidity during this week, which triggered stability in the overnight rate, with the latter standing at its low official level of 2.75% set by the Central Bank of Lebanon. As to Certificates of Deposits, no subscriptions were made during this week. Accordingly, total subscriptions since the beginning of the year 2012 stood at LP 575 billion. Interest rates on the 45-day and 60-day CDs categories remained stable at 3.57% and 3.85% respectively.

The latest figures released by the Association of Banks in Lebanon showed that the weighted average rate on CDs stood at 9.27% at end-June 2012, with no change relative to the previous month, and merely up from 9.26% at end-December 2011. The outstanding CDs portfolio stood at LP 23,097 billion at end-June 2012 versus LP 23,087 billion at end-May 2012 and LP 24,260 billion at end-December 2011.

At the monetary aggregates level, figures for the week ending 2nd of August 2012 released this week showed a rise in local currency deposits of LP 180 billion, as a result of an increase of LP 69 billion in LP time deposits and a growth of LP 111 billion in LP demand deposits week-on-week. Deposits in foreign currencies grew by US$ 13 million. These weekly variations compare to an average weekly increase of LP 128 billion for LP deposits, and an average weekly rise of US$ 36 million for foreign currency deposits since the beginning of the year 2012. Total money supply in its large sense (M4) widened by LP 495 billion week-on-week. This compared to an average weekly growth of LP 187 billion since the beginning of the year.

On a cumulative basis, money supply in its large sense (M4) grew by LP 7,563 billion since the beginning of the year 2012. This is the result of a rise in local currency denominated time deposits of LP 5,541 billion, an increase in foreign currency deposits of LP 1,718 billion (the equivalent of US$ 1,140 million), a contraction in money supply (M1) of LP 111 billion, and a growth in Treasury bills held by the public of LP 415 billion.

_____________________________________________________________________________TREASURY BILLS MARKET: SMALL NOMINAL SURPLUS OF LP 8 BILLION

The latest auction’s results (August 16, 2012) showed stability in the average yields on the three-month, six-month and five-year categories at 4.44%, 4.99% and 6.74% respectively.

On the other hand, the auction results for value date 9th of August, 2012 released by the Central Bank of Lebanon showed that total subscriptions amounted to LP 509 billion and were distributed as follows: LP 32 billion in the one-year category, LP 65 billion in the two-year category, and LP 412 billion in the three-year category. These compare to maturities of LP 501 billion, resulting in a nominal surplus of LP 8 billion.

INTEREST RATES

Source: Bloomberg



WEEK 34

TREASURY BILLS

Sources: Central Bank of Lebanon, Bloomberg

_____________________________________________________________________________STOCK MARKET: PRICE INDEX PURSUES ITS DOWNWARD TRAJECTORY

The BSE price index pursued its downward trajectory, falling by 0.8% week-on-week to close at 106.12, extending its year-to-date decline to 3.9%. The total trading value amounted to US$ 3.9 million this week versus US$ 14.2 million last week and an average weekly trading value of US$ 9.4 million since the beginning of the year 2012. The average daily trading value fell from US$ 2,839 thousand last week to US$ 979 thousand this week, which resulted into a 65.5% drop in the trading volume index to close at 40.69.

_____________________________________________________________________________FOREIGN EXCHANGE MARKET: TINY RISE IN BDL’S FOREIGN ASSETS

The foreign exchange market saw some demand for the US Dollar during this week, which triggered an increase in the LP/US$ interbank rate from LP 1,501-LP 1,504 last week to LP 1,505-LP 1,508, while the Central Bank of Lebanon remained on the sidelines.

The Central Bank of Lebanon’s latest bi-monthly balance sheet ending 15th of August 2012 showed that foreign assets increased slightly by US$ 18 million during the first half of August to reach US$ 35.08 billion at mid-August. The BDL’s foreign assets covered 85.6% of LP money supply, with this coverage ratio rising to 121.8% when accounting for gold reserves estimated at US$ 14.9 billion. In addition, the Central Bank’s foreign assets covered 19.3 months of imports. These ratios reflect the BDL’s strong ability to defend the currency peg and meet demand for foreign currencies should any pressures arise.

EXCHANGE RATES

Source: Bank Audi’s Group Research Department



WEEK 34

EUROBONDS INDICATORS

Source: Bank Audi’s Group Research Department

Solidere shares captured 56.5% of activity. Solidere “A” share price shed 2.4% to US$ 13.29, and Solidere “B” share price dropped by 2.1% to US$ 13.15. The banking shares accounted for 42.2% of the total trading value. Bank Audi’s “listed” share price declined by 0.9% to US$ 5.25, while Bank Audi’s GDR price rose by 3.1% to US$ 6.00. BLOM’s GDR price fell by 1.8% to close at US$ 7.70. Byblos Bank’s “listed” share price decreased by 0.7% to US$ 1.51. As to industrial stocks, Rymco’s share price dropped by 2.1% to US$ 2.29. Holcim’s share price lost 2.9% to close at US$ 15.54.

All in all, the Beirut Stock Exchange performed relatively similarly to other emerging markets, as reflected by a 0.6% decrease in the S&P Emerging Market Composite Index, while other Arabian markets reported a better performance, with the S&P Pan-Arab Composite Index rising by 0.6% week-on-week.

AUDI INDICES FOR BSE

Sources: Beirut Stock Exchange, Bank Audi’s Group Research Department

_____________________________________________________________________________BOND MARKET: RISE IN LEBANON’S FIVE-YEAR CDS SPREAD

The Eurobond market saw some foreign offers that originated mainly from US funds, while local market players preferred to adopt a wait-and-see attitude and showed some reluctance to use their FC liquidity. Under these circumstances, several local investors participated in the execution of a single foreign selling operation. The average yield remained stable at 4.47%, while the average spread contracted by 11 basis points to 334 basis points due to stability in Lebanese yields and a rise in international benchmark yields. For instance, the five-year US Treasuries yield rose from 0.70% last week to 0.81% this week, as economists forecast that a new report will show new home construction in the US was close to the most since 2008. As to the cost of insuring debt, Lebanon’s five-year CDS spread rose from 480-500 basis points last week to 500-525 basis points this week, due to adverse local political and security developments.



WEEK 34

INTERNATIONAL MARKET INDICATORS

Sources: Bloomberg, Bank Audi's Group Research Department

___________________________________________________________________________DISCLAIMER

The content of this publication is provided as general information only and should not be taken as an advice to invest or engage in any form of financial or commercial activity. Any action that you may take as a result of information in this publication remains your sole responsibility. None of the materials herein constitute offers or solicitations to purchase or sell securities, your investment decisions should not be made based upon the information herein.

Although Bank Audi Sal Audi Saradar Group considers the content of this publication reliable, it shall have no liability for its content and makes no warranty, representation or guarantee as to its accuracy or completeness.

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