DAILY MARKETS BRIEF I LOCAL MARKETS

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1 DAILY MARKETS BRIEF I LOCAL MARKETS BEIRUT STOCK EXCHANGE Last Daily % YTD % Dividend % MSCI Lebanon % -0.48% Development and Reconstruction Solidere A % -1.37% Solidere B % -1.38% Banking Audi Listed % 0.00% 8.67% BLC Listed % 0.00% BOB Listed % 0.00% 3.52% Byblos Listed % 0.00% 8.27% BEMO Listed % 0.00% 4.07% BLOM Listed % 0.00% 8.51% Trading RYMCO % 0.00% Industrial Holcim % 0.00% 16.51% Ciments Blancs % 0.00% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE SOVEREIGN CURVE Anticipated increases in wages coupled with lower rents are expected to make the UAE s new value-added-tax (VAT) more bearable for a population used to a mostly tax-free existence, according to recruitment agents and analysts. Sharjah, UAE has announced a budget with total expenses of Dh22.1 billion ($6 billion) for 2018, marking a six per cent growth in comparison with the budget of Source: Daily Star, Gulf Base GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % -0.75% Kuwait % -1.62% Oman % -0.09% Qatar % 1.37% KSA % -0.76% Dubai % 1.59% Abu Dhabi % 1.03% LOCAL/GCC FOREIGN EXCHANGE Cross Last Price Lebanese Pound Spot /LBP Bahraini Dinar Spot /BHD Kuwaiti Dinar Spot /KWD Omani Rial Spot /OMR Qatari Riyal Spot /QAR 3.66 Saudi Riyal Spot /SAR UAE Dirham Spot /AED MSCI GCC INDEX - 30 DAYS CHART GCC INDICES DAILY PERFORMANCE

2 DAILY MARKETS BRIEF I EQUITY MARKETS UNITED STATES EQUITY MARKET INDICES Last Price Daily % YTD % 10D Vol Major Indices DowJones % 0.42% -0.49% S&P % 0.83% 1.15% Nasdaq % 1.50% 2.97% Sectors Indices Discretionary % 1.51% 2.76% Staples % -0.55% 1.09% Energy % 1.79% 1.66% Financials % -0.06% -1.41% Healthcare % 1.23% 4.20% Industrials % 0.76% 0.36% IT % 1.41% 2.85% Materials % 1.50% 0.10% Telecom % 0.23% -1.16% Utilities % -0.87% -0.39% Real Estate % -0.59% -0.08% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE Equity momentum from last year carried over into the start of 2018, pushing the S&P 500 to achieve something it hasn t done since 1992: a record high on the first trading day of a year. Stocks advanced as tech shares rallied after a two-week decline and analyst upgrades fueled gains in consumer-discretionary companies. European stocks fell in the first trading session of 2018 as the euro advanced and personal and household goods companies slid to a four-week low. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 0.73% 1.19% Developed % 0.60% 0.55% Emerging % 1.69% 4.40% Frontier % 0.92% 1.13% Europe % -0.24% -1.67% Latin America % 2.89% 5.07% Asia Pacific % 1.00% 2.11% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -0.39% -0.08% FTSE % -0.52% 1.20% CAC % -0.45% 0.18% DAX % -0.36% -0.19% Swiss SMI % 0.00% 0.00% Nikkei % 0.00% 0.00% CSI % 1.84% 0.41% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major Cross Rate Index % 0.16% - EUR/ % 0.21% /JPY % 0.11% GBP/ % 0.01% /CAD % -0.72% AUD/ % 0.35% NZD/ % 0.50% /CHF % -0.16% /NOK % -0.08% /SEK % 0.32% /CNY % 0.42% Major EUR Cross Rate EUR/GBP % 0.18% EUR/CHF % -0.29% EUR/JPY % 0.02% DISTANCE FROM 52 WEEKS LOW/HIGH The dollar edged up on Wednesday to snap five days of losses on higher Treasury yields, with some traders unwinding long positions in other major currencies. The pound touched a three-month high as the dollar weakened and U.K. manufacturing data showed the sector held up in December. EUR/ climbed as much 0.6% to , its strongest level since a Sept. 8 high of ; a rise above would be highest since Jan. 2, 2015, when the currency pair peaked at , a level that may offer technical resistance. EUR/ 30 DAYS SUPPORT & RESISTANCE GBP/ 30 DAYS SUPPORT & RESISTANCE /JPY 30 DAYS SUPPORT & RESISTANCE /CAD 30 DAYS SUPPORT & RESISTANCE

4 DAILY MARKETS BRIEF I FIXED INCOME GLOBAL BOND INDICES Yield Yield (in Bps) Benchmark Indices US 10 Years Benchmark EU 10 Years Benchmark UK 10 Years Benchmark Sovereign Bonds US Treasury Bond Eurozone Sovereign Bond 0 0 Japan Sovereign Bond US TREASURIES YIELD CURVE EUR GENERIC YIELD CURVE Corporate Bonds US Corporate TR US High Yield Bond TR EUR Aggregate Corporate TR EUR High Yield TR Emerging Market IG & HY The yield spread between 10-year U.S. Treasuries and similar-maturity Treasury Inflation Protected Securities climbed above 2 percentage points Tuesday, the first time since March that it s exceeded the Federal Reserve s target level for inflation. The breakeven rate, as the gap is known, remained subdued for much of 2017 as consumer price index data missed forecasts. Yet manufacturing indexes coming out this week from China to the U.K. suggest factories may need to boost prices as the global economy heats up. OVERNIGHT RATES - SWAPS Yield Yield (in Bps) 3M LIBOR M EUR EURIBOR M GBP LIBOR Y SWAP Y SWAP Y SWAP Y SWAP Spread (in FIXED INCOME SPREADS r Spread Bps) 3M vs 10Y Spread Spread Spread (in Bps) 2Y 3M vs vs 10Y 10Y Spread IG 2Y Spread vs 10Y Spread (0.0100) HY IG Spread Spread (0.0800) HY Spread 3.25 (0.0600) EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread (0.0005) EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread CORPORATES - 30 DAYS SPREAD EU VS US - 30 DAYS SPREAD

5 DAILY MARKETS BRIEF I COMMODITIES GLOBAL COMMODITIES MARKET Last Price Daily % Commodity Index % Energy WTI Crude Future % Brent Crude Future % NYMEX Gasoline % NYMEX Heat Oil % ICE Gasoil % NYMEX Natural Gas % COMMODITY INDEX SUPPORT & RESISTANCE WTI OIL 30 DAYS SUPPORT & RESISTANCE Precious Metals Gold Spot $/Oz % Silver Spot $/Oz % Platinum Spot $/Oz % Palladium Spot $/Oz % Gold Future % Silver Future % Platinum Future % Palladium Future % Base Metals LME Aluminum % LME Copper % LME Zinc % LME Nickel % LME Lead % LME Tin % Agricultural Corn CBT % Wheat CBT % Soybeans CBT % Bean Meal CBT % Rough Rice CBT % MDE Palm Oil % Soybean CBT % Coffee ICE % Sugar #11 ICE % Cotton #2 ICE % Cocoa ICE % Ethanol CME % Lumber CME % Orange Juice ICE % Live Cattle CME % Feeder Cattle CME % Lean Hogs CME % Oil traded near the highest close in more than two years before U.S. government data forecast to show stockpiles extended declines for a seventh week and as unrest continued in OPEC s third-biggest producer. GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE

6 DAILY MARKETS BRIEF I COMPANY NEWS S&P 500 Stocks TOP 10 WINNERS Ticker Last Price Daily % ADV MICRO DEVICE AMD INCYTE CORP INCY ADVANCE AUTO PAR AAP MICRON TECH MU DISH NETWORK-A DISH RANGE RESOURCES RRC APACHE CORP APA BIOGEN INC BIIB UNDER ARMO-C UA PATTERSON COS PDCO S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % VERISIGN INC VRSN HUNTINGTON INGAL HII XL GROUP LTD XL TRAVELERS COS IN TRV ALLSTATE CORP ALL AMERICAN WATER W AWK CHUBB LTD CB WYNN RESORTS LTD WYNN CLOROX CO CLX CINCINNATI FIN CINF S&P 500 DISTRIBUTION S&P VOLATILITY INDEX WINNERS LOSERS LOW VOLATILITY HIGH VOLATILITY Pokemon Go is finally set to make its debut in China after developer Niantic struck a partnership with local games company NetEase. Russia is exploring ways to create a "cryptoruble" that could help it circumvent Western sanctions. Bonuses and pay raises are back at Deutsche Bank as Germany's biggest lender emerges from its most turbulent period. After eliminating Lockheed Martin and Kratos from its program to develop a "flying aircraft carrier," DARPA is narrowing in on prototypes of privately held Dynetics and General Atomics. Tie-up talks between Boeing and Embraer do not contemplate a change of control at the Brazilian planemaker. Alibaba s UC Browser mobile browser dominates emerging markets in Asia that have lower-end smartphones and unreliable cellular service. Apple instructs Apple Store employees to offer the $29 replacement batteries to anyone who owns an iphone 6 or newer. Amazon shipped 5B items to Prime members during Alphabet s Google moved $19.2B to a Bermuda shell company in 2016 to save $3.7B in taxes, according to regulatory filings from the Netherlands. Spotify has been hit with a $1.6B lawsuit that claims the streaming service infringed on thousands of song copyrights Source: Seeking Alpha

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv(M) Actual Prior Time Bahrain GDP Constant Prices QoQ % Eurozone TOPLive: First Day of MiFID II Rules in Europe 9:00 Germany Unemployment Change (000's) -13k k 10:55 Germany Unemployment Claims Rate SA 5.50% % 10:55 Germany CPI Brandenburg MoM % 11:00 Germany CPI Brandenburg YoY % 11:00 Jordan GDP Constant Prices QoQ % United Arab Emirates Dubai Airport Cargo Volume YoY % United Arab Emirates CPI MoM % United Kingdom Markit/CIPS UK Construction PMI :30 United States ISM Manufacturing :00 United States MBA Mortgage Applications % 14:00 United States Construction Spending MoM 0.50% % 17:00 United States ISM Prices Paid :00 United States Wards Total Vehicle Sales 17.50m m United States Wards Domestic Vehicle Sales 13.35m m United States FOMC Meeting Minutes :00 United States ISM New Orders :00 United States ISM Employment :00 United States FOMC Minutes From Dec Meeting 21:00 Banque BEMO sal Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: , Beirut - Lebanon Tel: Fax: Wealth & Investment Management research@bemobank.com Beirut Central District Riad El Solh Square, Esseily Building Bloc A, 7th Floor Beirut - Lebanon Tel: Fax: Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources considered to be reliable (Bloomberg, SeekingAlpha, DailyStar ), but we do not guarantee or assume responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. This report is not to be relied upon in substitution for the exercise of specialists. We may not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. The investments and services contained or referred to herein are not purported to be exhaustive, any person considering an investment should seek specialist advice on the suitability of an investment. Nothing in this report constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation. Clients understand that it is their responsibility to seek legal and/or tax advice regarding the legal and tax consequences of their investment transactions. The consequences of any action taken on the basis of information contained herein are solely the responsibility of the recipient. Investment instruments are subject to risk, including possible loss of principal amount invested. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Some investments mentioned in this report may have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when that investment is realized. Some investments may not be readily realizable and it may be difficult to sell or realize those investments, similarly it may prove difficult to obtain reliable information about the value, or risks, to which such an investment is exposed. This report may provide the addresses of websites or references. We have not reviewed any such site and takes no responsibility for the content contained therein. Such address or reference is provided solely for convenience and information. Accessing such website through this report shall be at the recipients own risk.