nazaha markets daily report: march 2, 2011

8/7/2019 Nazaha Markets Daily Report: March 2, 2011

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Markets Overview:Stocks listed in the energy-rich Gulf states dropped, some sharply, onWednesday as they reeled under the impact of sweeping unrest inmany Arab countries. Oil prices continue to go up, not benefitting theregion this time.

Equities Markets:

Stocks in Saudi Arabia fell

sharply Wednesday as the

benchmark TASI index closed

down 3.9%, leading Middle

Eastern markets broadly lower.

Elsewhere in the region,

Dubais DFM stock index sank

3.5% to 1,374.43, while the

Abu Dhabi Securities

Exchanges General Index

declined 1.8% and the Qatar

Exchanges QE Index gave up

3.6%.

In Jordan, the Amman

Stock Exchanges benchmark

ASE Indexslipped 1.3%.And late in the day, the

Istanbul Stock Exchanges

XU100 Indexwas 0.8%higher.

In Tunisia, where a revolt

forced President Zine El

Abidine Ben Ali into exile on

Jan. 14 and sparked uprisings

in other countries including

Egypt, the market regulator

suspended trading for the

second time since the leaders

ouster on Feb. 28 after protests

forced the prime minister to

resign. The benchmark

Tunindex has fallen 11 percent

since trading resumed after a

two-week suspension. The

countrys regulator hasnt said

when the bourse will open

again.

The Egyptian stock market

is still closed and is scheduled

to re-opens on March 6, 2011.

At the time if this writing, the

Market Vectors Egypt Index

ETF was down by

-2.16%.Egypts bourse, hometo the worlds worst

performing benchmark index

this year, risks losing

international investment after

failing to resume trading amid

protests from local investors

who fear deeper losses.

Moroccos MADEX Free

Float Index declined 0.3

percent at 3:09 p.m. in

Casablanca.

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NAZAHAREPORTMARKETSOVERVIEWBETAVERSION

March2,2011
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In Asia, The FTSE Bursa Malaysia KLCI Index fell

2.96, or 0.2 percent, to 1,499.28, its first drop in three

days. AirAsia Bhd. (AIRA MK), Southeast Asias

biggest budget carrier, and Malaysian Airline System

Bhd. (MAS MK) dropped as oil prices above $100 a

barrel raised concerns fuel costs will increase. AirAsia

slid 6.3 percent to 2.40 ringgit, the steepest drop since

Feb. 22. Malaysian Airline fell 2.2 percent to 1.82

ringgit, the lowest close since Feb. 19, 2010.

The Jakarta Composite index fell 27.78 points, or

0.8 percent, to 3,484.84, the first drop in four days.

The ISE National 100 Index of stocks reversed

early gains and closed 0.1 percent lower at 61,282.87

at 5:30 p.m. in Istanbul. Bonds fell, sending the yield

on two-year bonds 15 basis points higher to 8.78

percent, the highest since June 2010 according to the

RBS Istanbul Benchmark Bond Index. The lira

weakened 0.2 percent to 1.6014 per dollar. The trade

gap in January was $7.3 billion, 89 percent more than

the same month in 2010 and bigger than the median

estimate of $4.1 billion in a Bloomberg survey of six

analysts. The gap suggests Central bank Governor

Durmus Yilmazs efforts to restrain domestic demand

arent yet working.

Fixed-Income and Sukuk Markets:

Fears that turmoil in the Middle East and North

Africa could spread to Saudi Arabia and other major

oil producers helped push up the cost of insuring

sovereign debt issued by Middle Eastern governments

against default on Wednesday, according to data

provider Markit. The spread on five-year Saudi

Arabian credit default swaps, or CDS, widened to

basis points from 136 basis points on Tuesday, Ma

said. That means it would now cost $143,000 a ye

to

insure $10 million of Saudi government debt agai

default for five years, up $7,000 from Tuesday. Th

spread on Bahrain CDS widened 12 basis points t

313, while Lebanon widened 9 basis points to 365

Qatar widened 4 basis points to 119. (MarketWatc

Fitch Ratings has downgraded UAE-based Du

Bank's (DB) Individual Rating to 'D/E' from 'D' a

maintained it on Rating Watch Negative (RWN).

In other news, National Central Cooling Co.,

United Arab Emirates company known as Tabree

said it will receive 3.1 billion dirhams ($844 millio

from Mubadala Development Co. as part of a

recapitalization. The agreement with Abu Dhabi

investment arm provides Tabreed with long-term

capital comprised of 1.7 billion dirhams in

subordinated mandatory convertible notes maturi

2019 and a subordinated convertible loan facility f

as much as 1.4 billion dirhams maturing at the en

December 2012, he said. (Bloomberg).

The Fitch agency on Wednesday

downgraded Tunisia's long-term debt

rating to BBB-, with a negative outlook,

due to the uncertainty over the troubledcountry's stability and economic policy.

NAZAHAMARK

ETSMarch2,2011

We are in the final

stages of our

recapitalization

program, Chief

Financial Officer

Stephen Ridlington

of Dubai Bank said

on a conference call

today. The program

will leave Tabreed

with a stable long-

term capitalstructure and the

funding to complete

its business plan

and support the

growth of the

company.
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It is clear that Saudi Arabia has enough

spare capacity to make up for the

current estimated (800,000 barrels a day)

shortfall from the disruptions in Libya

as well as any further reductions,

analysts at J. P. Morgan said in a note toclients Tuesday. As Saudi Arabia was

already in the process of raising output

ahead of the disruption, the process of

restarting capacity may take less time.

Oil prices climbed nearly 3% Tuesday as violence in

Libya and the potential spread of the turmoil in the Middle

East and North Africa continued to feed concerns over

global oil supplies, prompting futures prices to mark the

highest closing level in over two years.

Light sweet crude for April deliveryrose $2.66, or 2.7%,to close at $99.63 a barrel on the New York MercantileExchange. Thats the strongest closing level for a most active

contract since September 2008. (Market Watch)

Gold also benefited from the geopolitical problems in

the Middle East and North Africa.

Spot bullion hit an intra-day high of $1,434.45, just 20

cents below the record high hit in the previous session. It

had since edged lower and quoted at $1,429.85.

Spot silver struck $34.74 an ounce, its highest since

early 1980. It was trading at $34.55 by 0614 GMT.

Prompt delivered Europe physical coal prices were little

changed on Wednesday after a day of thin trading. No fresh

deals were reported and few bids and offers were seen.

Despite volatility in oil prices and fears of further

disruption to Libyan oil supply, coal, gas and power markets

remained sluggish. (Reuters)

Major North American markets tumbled on Tuesday as

concern about the continuing turmoil in Libya and other

oil-producing countries sent commodity prices higher,

renewing fears that the economic recovery could be stalled.

Commodities

NAZAHAMARK

ETSMarch2,2011
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nazaha markets daily report: march 2, 2011

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