nazaha markets daily report: march 2, 2011
TRANSCRIPT
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8/7/2019 Nazaha Markets Daily Report: March 2, 2011
1/31 Official launch: March 25, 2011 Visit us online: http://nazahamarkets.com/wordpress/
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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8/7/2019 Nazaha Markets Daily Report: March 2, 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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8/7/2019 Nazaha Markets Daily Report: March 2, 2011
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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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