april 26 - may 2, 2021

1

Marwan Barakat(961-1) [email protected]

Salma Saad Baba(961-1) [email protected]

Farah Nahlawi(961-1) [email protected]

Zeina Labban(961-1) [email protected]

Michele Sakha(961-1) [email protected]

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

CONTACTS

RESEARCH

Treasury & Capital Markets

Bechara Serhal(961-1) [email protected]

Private Banking

Toufic Aouad(961-1) [email protected]

Corporate Banking

Carol Ayat(961-1) [email protected]

LEBANON MARKETS: WEEK OF APRIL 26 - MAY 2, 2021

Economy____________________________________________________________________________p.2 MOODY’S ESTIMATES LEBANON’S USABLE RESERVES AT US$ 1 BILLION AT END-FEBRUARYA new report by Moody’s on Lebanon was issued last week, estimating Lebanon's usable reserves at US$ 1 billion at end-February.

Also in this issuep.3 Opened L/Cs for import’s financing down by 96% over the first two months of 2021p.4 Imports of petroleum derivatives down by a yearly 14% in 2021

Surveys____________________________________________________________________________p.5 LEBANON RANKS 112TH GLOBALLY IN THE WORLD ECONOMIC FORUM’S ENERGY TRANSITION INDEX 2021 The World Economic Forum released its latest report entitled “Fostering EffectiveEnergy Transition” 2021 edition in which Lebanon ranked 112th globally with a score of 44.

Also in this issuep.6 Lebanon is a small market with a low level of integration into regional and global IT hardware, software and services supply chains, as per Fitch Solutions

Corporate News____________________________________________________________________________p.7 PROXIMIE RAISES US$ 38 MILLION FUNDProximie just raised US$ 38 million in series B from international investors F-Prime Capital, Questa Capital, Eight Roads, Maverick Ventures.

Also in this issuep.7 Lebanon launches its first electric car, Risep.8 CMA CGM launches two solutions, SERENITY deductible guarantee and SHIPFIN B/L financingp.8 Garlidoux is a Lebanese product that wants to transform the consumption of garlicp.8 The EU allocates € 2 million to support private sector in Lebanon

Markets In Brief____________________________________________________________________________p.9 MARKETS IN BRIEF: SHY UPWARD BOND PRICE CORRECTIONS AFTER FALLING TO ALL-TIME LOWSAmid a long-stalled cabinet formation process and calls to ration subsidies on essential goods to preserve remaining dwindling FX reserves, and while all eyes remained focused on the upcoming new FX platform, Lebanon’s capital markets saw this week some fluctuations in the LP/US$ exchange rate on the black FX market, while the equity and bond markets pursued their upward trajectory. In details, the LP/US$ rate retreated from LP/US$ 12,200 to LP/US$ 12,700 earlier this week, yet returned to LP/US$ 12,200-LP/US$ 12,250 levels on Thursday after the BDL’s Central Council approved circulars related to the new FX platform aimed to increase the FX market efficiency and contain LP liquidity directed towards the parallel market. On the equity market, the BSE price index rose by 0.8% this week, bringing year-to-date price gains to 33.6% amid hedging against crisis, while the total turnover expanded by 89% week-on-week. In parallel, the bond market saw upward price movements for the second week in a row after crashing to record lows. This brought bond prices to a range of 12.0-12.50 cents per US dollar on Thursday.

Money Market ⬌LP Tbs Market ⬆LP Exchange Market ⬌

BSE Equity Market ⬆Eurobond Market ⬆CDS Market -

APRIL 26 - MAY 2, 2021WEEK 18

LEBANONWEEKLY

MONITOR

Week 07 February 8 - February 14, 2021 1

Week 07 February 8 - February 14, 2021


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ECONOMY______________________________________________________________________________MOODY’S ESTIMATES LEBANON’S USABLE RESERVES AT US$ 1 BILLION AT END-FEBRUARY

A new report by Moody’s on Lebanon was issued last week

The report starts by saying that Banque du Liban (BdL) Governor informed caretaker Finance Minister that the Central Bank could no longer support the government’s import subsidy program in its current form, indicating that usable foreign-exchange reserves have practically been exhausted and that continuation of the program would encroach upon mandatory foreign-exchange reserves held on behalf of commercial banks. Encroaching on banks' mandatory reserves held at the BdL amid a persistent government deadlock would increase banks' counterparty risk, jeopardizing Lebanon's (C no outlook) remaining correspondent banking relationships, further undermining access to cross-border payment services for remittances, trade and tourism, which are key pillars of the economy.

Correspondent bank relationships are predicated on regulatory due diligence – for example, compliance with global anti-money-laundering regulations – and financial stability considerations. Compliance with commercial banks' mandatory reserve requirements within the BdL's financial stability framework includes setting aside the equivalent of 15% of total foreign-currency deposits because of the economy's high degree of deposit dollarization, which has exceeded 80% since last June. Moody’s says there has been a rapid drawdown of usable foreign-exchange reserves when netting out these mandatory reserves from gross foreign exchange reserves held at the BdL. According to this measure, usable reserves declined to US$ 1 billion as of the end of February as per Moody’s estimates.

An alternative measure to estimate usable foreign-exchange reserves is to net out the portion of gross foreign-exchange reserves that represents the counterpart to commercial banks' net foreign liability position that would otherwise raise counterparty risk concerns with foreign counterparties. Moody’s says that commercial banks since 2011 have run up exposures to nonresident counterparties that have not been matched by the accrual of foreign securities or assets held abroad, resulting in a negative net foreign asset position. This dynamic was facilitated by the BdL's incentives to centralize foreign currency

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Mandatory bank reserves (15% of FC deposits)Usable FX reservesGross FX reserves

USABLE FOREIGN-EXCHANGE RESERVES NET OF MANDATORY RESERVES ARE ALMOST EXHAUSTED

Sources: Banque du Liban and Haver Analytics

3Week 07 February 8 - February 14, 2021


liquidity at the central bank in order to bolster gross foreign-exchange reserves. Based on this more restrictive measure, usable foreign-exchange reserves were exhausted last year. This precipitated the sovereign’s default in March 2020 in light of its increasingly impaired external debt service capacity from a shrinking pool of gross foreign exchange reserves when also taking into account financial stability considerations and the continued funding of key imports.

The current import subsid program costs the central bank around US$ 500 million per month, contributing to the continued drawdown of usable reserves to the point of exhaustion. Lebanon's parliament is currently reviewing a government plan to reduce the list of subsidized food products to 100 from 300 and to introduce prepaid ration cards for qualifying households in a program worth US$ 1 billion per year. However, amid the persistent government deadlock, the crawling encroachment on mandatory foreign-exchange reserves held on behalf of commercial banks jeopardizes Lebanon's remaining correspondent banking relationships. A permanent loss of correspondent banking relationships would increase Lebanon's dependence on official external funding to the extent that cross-border payment and clearing services would remain impaired even after a comprehensive debt restructuring, inhibiting any potential recovery.

_____________________________________________________________________________ OPENED L/CS FOR IMPORT’S FINANCING DOWN BY 96% OVER THE FIRST TWO MONTHS OF 2021

Figures released by the Central Bank of Lebanon showed that documentary letters of credits opened to finance imports activities contracted significantly by 95.5% in 2M-2021 to reach US$ 12.7 million, down from US$ 282.1 million over the same period of 2020.

This steep drop in documentary letters of credits was the result of retreating imports over the period.

In parallel, utilized credits for imports by 2M-2021 fell by 94.6% standing at US$ 18.6 million, down from US$ 346.3 million in 2M-2020.

Inward bills for collection, another documentary credit form of financing declined by 29.4% year-on-year in the first two months of 2021 to reach US$ 64.6 million versus US$ 92.2 million in the same period of 2020.

DOCUMENTARY CREDITS FOR IMPORTS' FINANCING

(US$ million) 2M-20 2M-21 2M/2M

Documentary L/Cs

Opened credits 282.1 12.7 -95.5%

Utilized credits 346.3 18.6 -94.6%

Outstanding credits 947.5 176.4 -81.4%

Bills for collection

Inward bills 92.2 64.6 -29.9%

Outstanding bills 121.5 126.4 4.0%

Sources: BDL, Bank Audi's Group Research Department



4

__________________________________________________________________________IMPORTS OF PETROLEUM DERIVATIVES DOWN BY A YEARLY 14% IN 2020

Imports of petroleum derivatives registered a drop by 14.2% over full year 2020 against full year of 2019. The latter retreated from 8,049,695 metric tons to 7,686,060 metric tons between both years, as released by the Central Bank of Lebanon. It is worth noting that the imports of petroleum derivatives stood at 693,697metric tons in December 2020, up from 531,025 metric tons in December 2019.

8,007,573 8,418,357

8,087,580 8,049,695 7,686,060

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2016 2017 2018 2019 2020

Imports of Petroleum Derivatives (Metric Tons)

DOCUMENTARY CREDITS FOR EXPORTS' FINANCING

(US$ million) 2M-20 2M-21 2M/2M

Documentary L/Cs

Opened credits 114.0 46.9 -58.9%

Utilized credits 277.7 10.1 -96.4%

Outstanding credits 1,290 456 -64.6%

Bills for collection

Outward bills 94 40 -57.7%

Outstanding bills 848 634 -25.3%



IMPORTS OF PETROLEUM DERIVATIVES (METRIC TONS)



SURVEYS_____________________________________________________________________________LEBANON RANKS 112TH GLOBALLY IN THE WORLD ECONOMIC FORUM’S ENERGY TRANSITION INDEX 2021

The World Economic Forum released its latest report entitled “Fostering Effective Energy Transition” 2021 edition in which Lebanon ranked 112th globally with a score of 44.

Lebanon scored 42.7 on System Performance and 46.0 on Transition Readiness.

Lebanon ranked last in the Arab MENA region, it was preceded by Kuwait and Bahrain which ranked 102nd and 108th globally respectively.

The Energy Transition Index benchmarks countries on the performance of their energy system, as well as their readiness for transition to a secure, sustainable, affordable, and reliable energy future. ETI 2021 scores on a scale from 0 to 100.

The ETI provides a data-driven framework to foster understanding of the performance and readiness of energy systems across countries for transition.

This year’s edition includes methodological updates to reflect changes in the global energy landscape and the urgency of the task ahead, particularly in taking actions that will reduce carbon emissions.

Scores in the Middle East and North Africa fell last year but the overall trajectory remains moderately positive. Heavy reliance on oil revenue continues to present challenges to sustainable growth. Diversification of the economy and the energy system can improve prospects. Challenges remain in access and security, with heavy concentration in primary energy sources. Several countries in the region have set out ambitious renewables targets for 2030. For this region, the coming decade presents opportunities to invest in an energy transition that can unlock significant cross-system benefits, as per the report.

Sweden leads the global rankings, followed by Norway and Denmark. Among the world’s ten largest economies, only the United Kingdom and France feature in the top 10. The top 10 account for only around 3% of energy-related CO2 emissions and around 2% of the global population, as per the report.

Sources: World Economic Forum, Bank Audi's Group Research Department

ARAB MENA REGION'S ENERGY TRANSITION INDEX 2021

Country Score Global Rank

Qatar 60 53

United Arab Emirates 57 64

Morocco 57 66

Jordan 56 72

Oman 55 74

Egypt 55 76

Algeria 54 79

Saudi Arabia 54 81

Tunisia 52 88

Kuwait 50 102

Bahrain 48 108

Lebanon 44 112



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________________________________________________________________________LEBANON IS A SMALL MARKET WITH A LOW LEVEL OF INTEGRATION INTO REGIONAL AND GLOBAL IT HARDWARE, SOFTWARE AND SERVICES SUPPLY CHAINS, AS PER FITCH SOLUTIONS

According to a recent report by Fitch Solutions, Lebanon is a small market with a low level of integration into regional and global IT hardware, software and services supply chains. The domestic market for hardware solutions is primarily served by imported finished devices, but due to the severity of the political, economic and structural social challenges, it has not witnessed a boom in demand. Currency volatility and macro pressures continue to depress hardware market prospects and the result has been uneven growth over the past decade, as per the report

Like most Middle East countries, Lebanon is a net importer of IT hardware but, unlike with many of its peers, there was no strong growth in demand for imported computer hardware products over the decade to 2019. This was because there was not the same growth in incomes in Lebanon compared to the Gulf Cooperation Council (GCC) states that boomed when oil prices were higher, which boosted consumer demand for notebooks and then tablets. According to Fitch Solutions, the total IT hardware trade deficit in Lebanon was US$ 113 million, down by 26% year-on-year due to the worsening economic climate at home and currency depreciation.

Over the past few years, the market witnessed a collapse in demand over 2016-2019 owing to multitude of reasons. A confluence of political challenges, domestic security concerns, poor headline economic growth and weak consumer and investor sentiment along with evolving form factor trends dampened the import levels.

The latest trade data suggest that there was a 25% contraction in IT hardware imports in 2019 driven by decreasing affordability of laptops, desktop assembly equipment and servers owing to severely crippling economic challenges, as per Fitch Solutions. The agency notes that early indicators suggest that the market faced even more severe challenges in 2020 from COVID-19, the Port explosion in Beirut and the political deadlock.

Though the political environment has previously been a source of disruption in Lebanon, overall, the country still has a fairly stable risk profile, and it scores ahead of African markets in our Operational Risk Indices for the Information Technology industry. It does, however, trail its Middle East peers in most categories, reflecting elevated security risks, and more broadly a challenging operating environment. Furthermore, Lebanon lacks the scale and low-labor costs to challenge the major East Asian production centers for hardware production, therefore, it will continue to rely on imported devices. It does have some positive features that could support the growth of outsourcing activities, such as a small-time difference to major high income markets and language skills in the population.

The most successful part of Lebanon's IT industry is the services segment, where it has emerged as a center of business process outsourcing (BPO). The industry straddles both IT and non-IT activities, including contact centers, back office services (for instance finance, accounting and HR) and IT solutions. Lebanon's investment authority, IDAL, reports there were a total of more than 200 enterprises offering BPO services from Lebanon, with IT outsourcing the largest source of employment at around 90% of the total, as per Fitch Solutions.

According to the report, the domestic software industry is highly export-focused, with up to a third of firms getting 75% of all receipts from regional and Western markets.

According to recent estimates, the software development industry dominated local activity, accounting for 50% of software firms, with a further 37% working on web solutions and 13% mobile applications.



CORPORATE NEWS_____________________________________________________________________________PROXIMIE RAISES US$ 38 MILLION FUND

Proximie just raised US$ 38 million in series B from international investors F-Prime Capital, Questa Capital, Eight Roads, Maverick Ventures.

The startup already raised more than US$ 11 million in series A, in particular from the Emirati investment funds, the American firm Endeavor Catalyst, the Lebanese Cedar Mundi Ventures, as well as individuals like Curtis Chambers, ex CTO from Uber.

The round brings the company’s total funding to US$ 49 million.

Proximie aims to encourage international collaborations and the exchange of good practices bringing the human expertise and technology in order to offer the best possible care to the patient.

Proximie developed a platform that allows surgeons, from all over the world, to interact during procedures using augmented reality, machine learning and artificial intelligence technologies to demonstrate things to the surgeons conducting the operations who are watching the remote surgeons on screens.

Proximie also targets medical student audiences, who can train by monitoring through the remote operations platform, as well as medical device companies who can display their latest technologies to professionals around the world.

It is worth mentioning that it was initially used in war zones, but as soon as the pandemic started across 2020, the number of surgeries increased by 430%.

The start-up was first launched in 2014 in the Beirut Digital District and now is established in three countries, Lebanon, the United Kingdom and the United States.

In Beirut, Proximie’s main partner is AUBMC from which care has been provided remotely, thanks to partnerships throughout the region, such as with the Cleveland Clinic in Abu Dhabi, says the CEO of the company._____________________________________________________________________________LEBANON LAUNCHES ITS FIRST ELECTRIC CAR, RISE

Lebanon is launching its first electric-powered automobile, Rise. The car is cheap and green.

The coupe-style car “Quds Rise” was designed by Lebanon’s EV Electra. This is the first foray into the electric car market which is a fast-growing sector that promises to lower planet-warming emissions.

The engines and the batteries will be imported while the battery system will be assembled in Lebanon.

Rise reaches a speed of 180 kms an hour and a maximum motor power of 120 kWh. EV-Electra will sell the car for US$ 30,000 in Lebanon and Europe in late 2021, pending certification.

The car’s green impact is set to be diluted in a country reliant on fossil fuels for electricity while frequent power outages do not promise well for reliability.



8

_____________________________________________________________________________CMA CGM LAUNCHES TWO SOLUTIONS, SERENITY DEDUCTIBLE GUARANTEE AND SHIPFIN B/L FINANCING

Lebanese-owned CMA CGM recently launched two solutions, SERENITY deductible guarantee and SHIPFIN B/L financing.SERENITY deductible guarantee is a high value-added solution for the customers’ needs that comes along with a cargo insurance to get reimbursement by CMA CGM of the deductible that remains normally at their expense in case of damage to their goods. The clients benefit from quick compensation for lost goods or minor damages occurring during the door-to-door full transportation phase in less than 30 days.

Furthermore, SHIPFIN B/L financing is an innovative financing solution to offer with the Bill of Lading taken as collateral. This solution is offered to clients who want to release funds while awaiting payment from their buyer.The SHIPFIN’s offer provides reliable and rapid financial solutions dedicated respectively to importing and exporting customers. SHIPFIN cargo financing for exporters who want to increase their working capital and ensure their company’s growth. SHIPFIN supply chain financing for importers who want to free up their working capital while stabilizing their supplier relations.

____________________________________________________________________________GARLIDOUX IS A LEBANESE PRODUCT THAT WANTS TO TRANSFORM THE CONSUMPTION OF GARLIC

Garlidoux is a garlic paste brand launched by four Lebanese co-founders that aims to illuminate the problem of eating garlic. Founders who are passionate about cooking, spent seven years in developing and testing the process in several laboratories in Lebanon and Germany.

In 2019, the factory was opened in Karantina and hired around ten employees to produce garlic puree.All the nutritional value of garlic is preserved. The final product is 100% natural, GMO-free and chemical additives free, says one of the co-founders of the company.Garlidoux won a prize in the 2019 Asian Food Innovation Awards and was voted product of the year 2021 by the Lausanne Index Prize, an organization based in the Netherlands which claims to defend consumers' rights by promoting safe and healthy processed products, as per Le Commerce du Levant.

____________________________________________________________________________THE EU ALLOCATES € 2 MILLION TO SUPPORT PRIVATE SECTOR IN LEBANON

The European Union (EU) launched a Technical Assistance Program for the Private Sector in Lebanon (TAF) a budget for around two million Euros to enable Lebanese producers to occupy a larger share of the market basket.

The health, agri-food and technology sectors are mainly targeted by the initiative where 16 companies were selected to benefit from the program; however the total number could reach 70 by the end of the year, as per Le Commerce du Levant.

TAF will not provide direct financial assistance to businesses, it will offer them consultations and access to networks of professionals, investors and to high-quality European certifications, as said in a statement.

Traditionally, this kind of project is channeled through the Ministry of Economy or Industry.

This time the EU decided to contact directly the private sector, maintaining cooperation with third parties such as universities or start-up accelerators.Source: Byblos Bank



CAPITAL MARKETS _____________________________________________________________________________MONEY MARKET: TOTAL RESIDENT DEPOSITS CONTRACT FURTHER WEEK-ON-WEEK With the local currency liquidity remaining quite abundant on the money market, the overnight rate remained stable this week at 3%, noting that its official rate is quoted at 1.90%.

In parallel, the latest monetary aggregates released by the Central Bank of Lebanon for the week ending 15th of April 2021 showed that total resident banking deposits contracted by LP 525 billion. This is mainly due to a LP 266 billion fall in total LP resident deposits amid a LP 105 billion drop in LP demand deposits and a LP 161 billion decline in LP saving deposits, while foreign currency resident deposits contracted by LP 259 billion (the equivalent of US$ 172 million as per the official rate of LP 1,507.5). Accordingly, total resident banking deposits accumulated year-to-date contractions of LP 3,999 billion, given a LP 3,043

INTEREST RATES

billion fall in foreign currency resident deposits (the equivalent of US$ 2,019 million as per the official rate of LP 1,507.5), and a LP 956 billion decrease in total LP resident deposits.

_____________________________________________________________________________TREASURY BILLS MARKET: NOMINAL WEEKLY SURPLUS OF LP 260 BILLION

The latest Treasury bills auction results for value date 29th of April 2021 showed subscriptions in the three-month category (offering a yield of 3.50%), the one-year category (offering a yield of 4.50%) and the five-year category (offering a coupon of 6.0%).

In parallel, the Treasury bills auction results for value date 22nd of April 2021 showed that total subscriptions amounted to LP 571 billion, distributed as follows: LP 13 billion in the six-month category (offering a yield of 4.0%), LP 208 billion in the three-year category (offering a coupon of 5.50%) and LP 350 billion in the seven-year category (offering a coupon of 6.50%). These compare to maturities of LP 311 billion, resulting into a nominal weekly surplus of LP 260 billion.

Source: Bloomberg

Interest rates 30/4/21 23/4/21 31/12/20

Overnight rate (official) 1.90% 1.90% 1.90% →7 days rate 2.00% 2.00% 2.00% →1 month rate 2.75% 2.75% 2.75% →45-day CDs 2.90% 2.90% 2.90% →60-day CDs 3.08% 3.08% 3.08% →



10

________________________________________________________________________FOREIGN EXCHANGE MARKET: MERE FLUCTUATIONS IN LP/US$ RATE ON BLACK FX MARKET While all eyes remained focused on the upcoming new “Sayrafa” platform aimed to increase the FX market efficiency and curb currency swings, and amid dwindling FX reserves, and calls to ration subsidies and pass a draft law related to the prepaid card program to the Parliament, the LP/US$ exchange rate saw some fluctuations on the black FX market over this four-day week. The LP/US$ rate initiated the week at LP/US$ 12,200 and touched the LP/US$ 12,700 level on Tuesday, before closing at LP/US$ 12,225-LP/US$ 12,275 on Thursday after BDL’s Central Council approved circulars related to the new electronic FX platform and to disclose trading in the Lebanese money market. This compared to a rate of LP/US$ 12,175-LP/US$ 12,225 at the end of last week.

_________________________________________________________________________STOCK MARKET: FURTHER WEEKLY PRICE INCREASES IN LEBANON'S EQUITY MARKET

The Beirut Stock Exchange continued to follow an upward trace this week, as reflected by a 0.8% rise in the BSE price index. Five out of ten traded stocks posted price gains, while five stocks saw no price change week-on-week.

EXCHANGE RATES

TREASURY BILLS

Source: Bank Audi’s Group Research Department

Sources: Central Bank of Lebanon, Bloomberg

30/4/21 23/4/21 31/12/203-month 3.50% 3.50% 3.50% →6-month 4.00% 4.00% 4.00% →1-year 4.50% 4.50% 4.50% →2-year 5.00% 5.00% 5.00% →3-year 5.50% 5.50% 5.50% →5-year 6.00% 6.00% 6.00% →7-year - 6.50% 6.50%

Nom. Subs. (LP billion) 571 122Short-term (3&6 mths) 13 -

Medium-term (1&2 yrs) - -

Long-term (3 yrs) 208 20

Long-term (5 yrs) - -

Long-term (7 yrs) 350 102

Maturities 311 191

Nom. Surplus/Deficit 260 -69

Exchange rates 30/4/21 23/4/21 31/12/20LP/US$ 1,507.50 1,507.50 1,507.50 →LP/£ 2,104.17 2,091.66 2,048.54 ⬇LP/¥ 13.82 13.97 14.61 ⬆LP/SF 1,656.41 1,647.00 1,706.67 ⬇LP/Can$ 1,224.71 1,207.64 1,178.66 ⬇LP/Euro 1,826.34 1,818.05 1,851.21 ⬇



_____________________________________________________________________________BOND MARKETS: CONTINUOUS UPWARD BOND PRICE CORRECTIONS ON FOREIGN BIDLebanon’s Eurobond market continued to see some international bid this week, especially on the longer-end of the curve, as some market players found a “good buy” in Lebanese sovereigns after their prices crashed to record lows. Bond price improvements took place despite long-simmering cabinet gridlock and prospects of long-delayed negotiations with the IMF and bondholders. Within this context, Lebanese debt papers maturing between 2020 and 2037 saw price expansions for the second consecutive week of 0.13 pt to 0.38 pt to reach 12.0-12.50 cents per US dollar on Thursday. This helped reducing year-to-date bond price contractions to 0.88 pt- 2.13 pts.

A closer look at individual stocks shows that Bank Audi’s “listed” shares led the advance on the BSE this week, registering a price surge of 3.1% to reach US$ 2.69, followed by BLOM’s GDRs with +2.9% to US$ 3.95, Solidere “B” shares with +2.3% to US$ 25.0, Solidere “A” shares with +0.6% to US$ 24.90, and Bank Audi’s GDRs with +0.5% to US$ 1.86. In parallel, Bank of Beirut Preferred “H” and “J” share prices remained stable at US$ 25.0 each. Byblos Bank’s “listed” share price stood unchanged at US$ 0.85. Prices of Byblos Bank’s Preferred shares 2009 remained stable at US$ 38.50. Holcim Liban’s share price stayed quoted at US$ 15.90.

As far as trading volumes are concerned, the BSE total turnover increased by 89.0% week-on-week, moving from US$ 6.1 million last week to US$ 11.5 million, noting that Solidere shares continued to account for the bulk of activity (90.3%). ____________________________________________________________________________

AUDI INDICES FOR BSE

EUROBONDS INDICATORS

Source: Bank Audi’s Group Research Department

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

30/4/21 23/4/21 31/12/2022/1/96=100

Market Cap. Index 404.17 401.16 302.49 ⬆Trading Vol. Index 128.73 54.50 86.63 ⬆Price Index 84.85 84.22 63.50 ⬆Change % 0.75% 2.49% 4.60% ⬆

30/4/21 23/4/21 31/12/20Market Cap. $m 9,589 9,517 7,176 ⬆No. of shares traded (Exc. BT) 678,478 320,916 650,340 ⬆Value Traded $000 (Exc. BT) 11,522 6,097 5,834 ⬆o.w. : Solidere 10,404 5,823 5,565 ⬆ Banks 1,119 274 264 ⬆ Others 0.3 0.2 5 ⬆

30/4/21 23/4/21 31/12/20Total tradable size $m 32,364 32,364 32,364 →o.w.: Sovereign bonds 31,314 31,314 31,314 →Average Yield 74% 73% 57% ⬆Average Life 6.74 6.77 7.04 ⬇Yield on US 5-year note 0.88% 0.80% 0.37% ⬆



12

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 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.

30-Apr-21 23-Apr-21 31-Dec-20 Weekly change

Year-to-date change

EXCHANGE RATES

YEN/$ 109.31 107.86 103.32 1.3% 5.8%

$/£ 1.382 1.388 1.367 -0.4% 1.1%

$/Euro 1.202 1.210 1.222 -0.6% -1.6%

STOCK INDICESDOW JONES INDUSTRIAL AVERAGE 33,874.85 34,043.49 30,606.48 -0.5% 10.7%

S&P 500 4,181.17 4,180.17 3,756.07 0.0% 11.3%

NASDAQ 13,962.68 14,016.81 12,888.28 -0.4% 8.3%

CAC 40 6,269.48 6,257.94 5,551.41 0.2% 12.9%

Xetra Dax 15,135.91 15,279.62 13,718.78 -0.9% 10.3%

FT-SE 100 6,969.81 6,938.56 6,460.52 0.5% 7.9%

NIKKEI 225 28,812.63 29,020.63 27,444.17 -0.7% 5.0%

COMMODITIES (in US$)

GOLD OUNCE 1,769.13 1,777.20 1,898.36 -0.5% -6.8%

SILVER OUNCE 25.92 26.01 26.40 -0.3% -1.8%

BRENT CRUDE (per barrel) 66.76 66.11 51.80 1.0% 28.9%

LEADING INTEREST RATES (%)

1-month Libor 0.11 0.11 0.14 0.00 -0.03

US Prime Rate 3.25 3.25 3.25 0.00 0.00

US Discount Rate 0.25 0.25 0.25 0.00 0.00

US 10-year Bond 1.63 1.56 0.91 0.07 0.72

april 26 - may 2, 2021

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