DAILY MARKETS BRIEF I LOCAL MARKETS Wednesday, January 11, 2017

BEIRUT STOCK EXCHANGE Last Daily % Development and Reconstruction Solidere A 10.05 -0.40% Solidere B 9.87 -2.66% Solidere GDR 9.75 -1.52% Banking Audi Listed 6.66 -2.06% BLC Listed 0.99 0.00% BOB Listed 18.8 0.00% Byblos Listed 1.7 0.00% BEMO Listed 1.7 0.00% BLOM Listed 10.8 1.69% Trading RYMCO 3.25 0.00% Industrial Holcim 11.75 0.00% Ciments Blancs 1.57 0.00%  

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MSCI LEBANON INDEX - 30 DAYS CHART

YTD % Dividend % -3.18% -6.00% -2.50%

0.98% 1.00% 1.01%

-2.06% 0.00% 0.00% 0.00% 0.00% 1.89%

6.00% 0.00% 3.17% 7.80% 2.33% 7.68%

0.00%

3.63%

0.00% 0.00%

7.09% 0.00%

LEBANESE USD SOVEREIGN CURVE

International rating agency Fitch said Lebanese banks have a similar vulnerability level as United States, Germany and Saudi Arabia. Saudi Arabia and Lebanon agreed to finalize two agreements designed to prevent double taxation and encourage investment between the two countries, a move that is expected to give a major boost to trade. The GCC real estate has emerged as one of the fastest growing sectors across the globe despite the recent economic slowdown with Dubai and Abu Dhabi (UAE) and Doha (Qatar).

GCC EQUITY INDICES Bahrain Kuwait Oman Qatar KSA Dubai Abu Dhabi

Last Price 1209.99 6014.36 5779.81 10700.47 7008.03 3725.06 4668.31

Daily % 0.30% 1.05% -0.30% -0.01% -1.04% 0.10% 0.10%

MSCI GCC INDEX - 30 DAYS CHART YTD % -0.99% 5.20% 0.11% 2.46% -2.81% 4.92% 2.46%

LOCAL/GCC FOREIGN EXCHANGE Lebanese Pound Spot Bahraini Dinar Spot Kuwaiti Dinar Spot Omani Rial Spot Qatari Riyal Spot Saudi Riyal Spot UAE Dirham Spot

Cross USD/LBP USD/BHD USD/KWD USD/OMR USD/QAR USD/SAR USD/AED

Last Price 1514.38 0.37703 0.30582 0.38502 3.6407 3.7507 3.673

GCC INDICES DAILY PERFORMANCE

DAILY MARKETS BRIEF I EQUITY MARKETS Wednesday, January 11, 2017

UNITED STATES EQUITY MARKET INDICES

S&P 500 INDEX - 30 DAYS CHART

Last Price Daily % YTD % 10D Vol Major Indices DowJones 19855.53 S&P 500 2268.9 Nasdaq 5551.818 Sectors Indices Discretionary 665.1079 Staples 528.41 Energy 544.11 Financials 389.6 Healthcare 826.66 Industrials 543.43 IT 828.59 Materials 318.12 Telecom 172.68 Utilities 244.05 Real Estate 190.57   

-0.16% 0.47% 0.00% 1.34% 0.36% 3.13%

-0.46% -1.22% -1.36%

0.40% -0.60% -0.95% 0.39% 0.33% 0.32% -0.07% 0.07% 0.05% -0.27% -1.29%

-0.25% -0.13% 0.22% -0.54% -1.69% -1.34% -1.00% -1.19% 1.36% -0.29% -0.42%

2.67% -0.64% -1.87% 0.79% 3.73% 1.00% 2.55% 1.91% -2.23% -1.13% 0.18%

S&P 500 SUPPORT & RESISTANCE

Asian stocks rallied, led by a surge in mining companies, after evidence of quickening price growth in China boosted industrial metals and other commodities. U.S. equities were unchanged Tuesday as a rally in financial companies was offset by losses in energy shares. European stocks were little changed as gains in commodity producers offset losses in utilities and insurance companies.

INTERNATIONAL MARKETS INDICES

DEVELOPED VS EMERGING - 30 DAYS CHART

Last Price Daily % YTD % 10D Vol World Developed Emerging Frontier Europe Latin America Asia Pacific

1779.62 1779.62 885.7 2539.47 123.36 2393.84 139.2

0.15% 72.60% 0.15% 1.62% 0.83% 2.72% 0.95% 5.01% 0.11% 0.70% 0.48% 2.27% 0.47% 3.08%

0.39% 0.39% 0.14% 0.42% -0.23% -0.73% 0.70%

INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx 50 3306.21 -0.08% FTSE 100 7275.47 0.52% CAC 40 4888.23 0.01% DAX 11583.3 0.17% Swiss SMI 8449.19 0.29% Nikkei 225 19364.67 0.33% CSI 300 3336.29 -0.65%

0.48% 1.86% 0.53% 0.89% 2.79% 1.31% 0.79%

-0.02% -0.16% 0.00% 0.12% 0.26% 0.12% 0.54%

 EMERGING  DEVELOPED

INTERNATIONAL EQUITY - 30 DAYS CHART  FTSE 100  CAC 40  DAX  NIKKEI 225

DAILY MARKETS BRIEF I FOREIGN EXCHANGE Wednesday, January 11, 2017

FOREIGN EXCHANGE MARKET

DISTANCE FROM 52 WEEKS LOW/HIGH

Last Price Daily % 10D Vol 25RR Major Indices USD Index 1267.47 0.02% -0.36% EUR/USD 1.056 0.06% -0.60% -0.325 USD/JPY 115.98 0.18% -0.22% -1.025 GBP/USD 1.2154 -0.19% -0.16% -0.625 USD/CAD 1.323 -0.02% 0.07% 0.198 AUD/USD 0.739 0.30% -0.19% -0.770 NZD/USD 0.7005 0.21% -0.45% -0.788 USD/CHF 1.0163 -0.07% -0.30% 0.015 USD/NOK 8.5939 -0.13% -0.98% 0.433 USD/SEK 9.0688 -0.15% -1.11% 0.398 USD/CNY 6.9225 0.01% -0.07% 0.240 Major EUR Cross Rate EUR/GBP 0.86888 0.25% -0.15% 0.338 EUR/CHF 1.07325 0.00% -0.30% -0.383 EUR/JPY 122.48 0.24% 0.08% -0.600   

The dollar rose against most of its major peers as the market awaited Donald Trump’s news briefing for details on his trade and fiscal policies. The Turkish lira and Mexican peso both dropped to records on concern the U.S. President-elect’s protectionist stance will hurt emerging economies. The sterling declined ahead of the Bank of England Governor Mark Carney’s testimony to the Treasury Committee after multiple fiery exchanges last year in which he was grilled on the Brexit vote, record-low interest rates, central bank independence and even his own tenure.

EUR/USD 30 DAYS SUPPORT & RESISTANCE

GBP/USD 30 DAYS SUPPORT & RESISTANCE

USD/JPY 30 DAYS SUPPORT & RESISTANCE

USD/CAD 30 DAYS SUPPORT & RESISTANCE

DAILY MARKETS BRIEF I FIXED INCOME Wednesday, January 11, 2017

GLOBAL BOND INDICES

US TREASURIES YIELD CURVE

Yield (in Bps)

Yield Benchmark Indices US 10 Years Benchmark 2.3757 EU 10 Years Benchmark 0.285 UK 10 Years Benchmark 1.362 Sovereign Bonds US Treasury Bond 1.837 Eurozone Sovereign Bond 0.582 U.K. Sovereign Bond 1.26 Japan Sovereign Bond 0.081 USD Emerging Sovereign Bond 4.822 Corporate Bonds US Investment Grade Bond 3.321 US High Yield Bond 5.931 EUR Investment Grade Bond 0.748 EUR High Yield Bond 2.73 USD Emerging Market IG & HY 5.095   

0.011 0.007 0.027 0.001 0.005 0.021 -0.004 0.012

EUR GENERIC YIELD CURVE

0.004 -0.038 0.008 -0.013 -0.007

The Treasuries yield curve steepened as an auction of three-year notes saw the strongest investor appetite since August. Bund futures stick in a tight range, before breaking higher after supply passes; long-end auctions from Austria and Netherlands are easily absorbed. Peripheral bonds continue to outperform core; 30y Italian Government Bonds yields drop ~4bps, leading Spanish curve flatter, sector is supported by smaller-than-expected size announced for Thursday’s supply.

OVERNIGHT RATES - SWAPS Yield

Yield (in Bps)

3M USD LIBOR 3M EUR EURIBOR 3M GBP LIBOR 3Y USD SWAP 5Y USD SWAP 10Y USD SWAP

1.01483 -0.322 0.36888 1.6723 1.9181 2.2512

0.0000 0.0000 0.0000 0.0088 0.0046 0.0173

30Y USD SWAP

2.4821

0.0178

FIXED INCOME Spread SPREADS (in r Spread USD 3M vs 10Y Spread USD 2Y 3M vs vs 10Y 10Y Spread Spread USD USD IG 2Y Spread vs 10Y Spread USD USD IG Spread USD HY Spread USD HY Spread EU vs US 10Y Spread EU vs US 10Y Spread EU vs US 2Y Spread EU vs US 2Y Spread EM vs Benchmark Spread EM vs Benchmark Spread

Spread 1.85236 1.86301 1.22301 1.18612 1.6 1.5 4.3 3.45 -2.0893 -2.1209 -1.8185 -1.9332 2.928 286.1

Spread (in Bps) 0.0277 0.0008 0.0021 0.0071 (0.0100) (0.0200) (0.0800) (0.0200) (0.0391) (0.0601) (0.0140) -

USD CORPORATES - 30 DAYS SPREAD

EU VS US - 30 DAYS SPREAD

DAILY MARKETS BRIEF I COMMODITIES Wednesday, January 11, 2017

GLOBAL COMMODITIES MARKET Last Price 86.85

Daily % 0.59%

Energy WTI Crude Future Brent Crude Future NYMEX Gasoline NYMEX Heat Oil ICE Gasoil NYMEX Natural Gas

50.82 53.64 154.67 161.14 478.25 3.278

-2.19% -2.37% -1.53% -1.60% -2.05% 5.64%

Precious Metals Gold Spot $/Oz Silver Spot $/Oz Platinum Spot $/Oz Palladium Spot $/Oz Gold Future Silver Future Platinum Future Palladium Future

1187.88 16.7889 979.05 765.28 1185.5 16.848 982.8 765.25

0.57% 1.35% 0.15% 1.01% 0.05% 0.99% 0.02% 1.07%

1749 5758 2720 10615 2189 21150

1.33% 2.99% 1.99% 2.17% 3.84% 0.14%

Commodity Index

Base Metals LME Aluminum LME Copper LME Zinc LME Nickel LME Lead LME Tin

COMMODITY INDEX SUPPORT & RESISTANCE

WTI OIL 30 DAYS SUPPORT & RESISTANCE

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

Oil held losses after falling to the lowest level in a month as investors weigh signs of rising U.S. crude supply against output cuts from OPEC and other producing nations. Gold trades near highest level in six weeks ahead of Donald Trump’s first news conference as president-elect.

GOLD 30 DAYS SUPPORT & RESISTANCE 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

358.25 426.75 1013.75 317.5 9.675 3082 35.64 147.7 20.48 73.19 2207 1.503 322.6 182.7 119.525 130 65.05

-0.49% -0.12% 0.85% 1.15% -0.15% -0.96% 0.42% 2.43% 0.29% 0.27% 1.05% -1.38% 0.16% 1.98% 2.57% 3.59% 2.04%

SILVER 30 DAYS SUPPORT & RESISTANCE

DAILY MARKETS BRIEF I COMPANY NEWS Wednesday, January 11, 2017

TOP 10 WINNERS Ticker

TOP 10 LOSERS

Last Price Daily %

Ticker

Last Price Daily %

S&P 500 Stocks

S&P 500 Stocks ILLUMINA INC BOSTON SCIENTIFC ZIMMER BIOMET HO FREEPORT-MCMORAN ALASKA AIR GROUP

ILMN BSX ZBH FCX ALK

165.04 23.61 113.67 15.55 92

16.60 6.40 6.23 5.93 5.18

ONEOK INC HCP INC HALLIBURTON CO ENVISION HEALTHC

OKE HCP HAL EVHC

56.07 30.05 54.64 65.22

-2.45 -2.47 -2.55 -3.02

WELLTOWER INC

HCN

66.32

-3.04

REGENERON PHARM

REGN

373

5.05

CF INDUSTRIES HO

CF

32.73

-3.08

CHIPOTLE MEXICAN

CMG

414.48

4.92

VERISIGN INC

VRSN

79.25

-3.14

QORVO INC

QRVO

56.4

3.73

VENTAS INC

VTR

61.16

-3.61

GENERAL MOTORS C

GM

37.35

3.72

ENDO INTERNATION

ENDP

15.31

-6.70

DELPHI AUTOMOTIV

DLPH

70.47

3.54

WILLIAMS COS INC

WMB

28.5

-10.74

S&P 500 DISTRIBUTION

WINNERS

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   

LOSERS

S&P VOLATILITY INDEX

LOW VOLATILITY

HIGH VOLATILITY

Amid pressure to build products at home, Apple is seeking to conduct "high-tech manufacturing" and assemble data center server gear at one of its plants in Mesa, Arizona. President-elect Donald Trump had a "great meeting" with Alibaba's Jack Ma on Monday, when they discussed creating 1M new American jobs in five years. In a post-Brexit win for the U.K, Snap has established its international headquarters in Britain, where it will book all sales made outside the U.S. Pokemon Go and other augmented reality games are unlikely to be rolled out in China any time soon, after the state censor said it would not license them until potential security risks had been evaluated. Deepening its integration with brick-and-mortar stores, Alibaba is leading a $2.6B bid to privatize Intime Retail Group, a leading department store chain with 29 outlets and 17 shopping malls across China. After teaming up with Wells Fargo in 2015 to buy most of GE Capital Real Estate, Blackstone is in the final round of an auction to buy GE Water for roughly $3B, the NY Post reports. Airbus has finalized an agreement to sell more than 60 A320neos to Saudi Arabian budget carrier flynas, sources told Reuters. The incoming Trump administration should “rigorously and comprehensively review” Lockheed Martin’s F-35 jet, the Defense Department’s outgoing director of combat testing says. Wal-Mart plans to cut hundreds of jobs before the end of January at its headquarters and regional personnel that support stores, WSJ reports.

DAILY MARKETS BRIEF I ECONOMIC DATA Wednesday, January 11, 2017

KEY ECONOMIC INDICATORS Country United States United States United Kingdom United Kingdom Kuwait China Oman Kuwait United Kingdom United Kingdom Qatar China United Kingdom United Kingdom United Kingdom Japan United Arab Emirates United Kingdom Oman United States

Event DOE U.S. Crude Oil Inventories MBA Mortgage Applications Industrial Production MoM Manufacturing Production MoM M1 Money Supply YoY Money Supply M2 YoY CPI YoY M2 Money Supply YoY Trade Balance Industrial Production YoY CPI YoY New Yuan Loans CNY Visible Trade Balance GBP/Mn Trade Balance Non EU GBP/Mn Manufacturing Production YoY Leading Index CI CPI YoY NIESR GDP Estimate Nominal GDP YTD YoY President-elect Trump Speaks

Surv(M) 1500k -1.00% 0.50% -11.40% ---£3500 0.70% -676.8b -£11150 -£3000 0.40% 102.6 -0.50% --

Actual ---------------102.7 ----

Prior -7051k 0.10% -1.30% -0.90% 4.52% 11.40% 1.85% 5.03% -£1971 -1.10% 2.00% 794.6b -£9711 -£1598 -0.40% 100.8 1.89% 0.40% -11.10%

Time 17:30 14:00 11:30 11:30

11:30 11:30

11:30 11:30 11:30 7:00 17:00

Banque BEMO sal Investment & Research [email protected] Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: 16-6353, Beirut - Lebanon Tel: + 961 1 568 250 Fax: + 961 1 568 266

General Management Beirut Central District Riad El Solh Square, Esseily Building Bloc A, 7th Floor Beirut - Lebanon Tel: + 961 1 992 600 Fax: + 961 1 983 368 www.bemobank.com

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