Weekly Market Review - Mashreq · Weekly Market Review July 5, 2015 ... BSE Sensex 27,661.40...

Weekly Market Review July 5, 2015 – July 11, 2015

July 12, 2015

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CONTENTS

International Equity Markets

GCC Equities

Currencies

Commodities

Interest Rates

Equity Markets - Top Most & Bottom Most

Commodity Markets - Top Most & Bottom Most

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Markit US service sector PMI stood at 54.8 in Jun, easing for a 3rd month due to a slowdown in employment, output

US trade gap grew 2.9% to $41.9bn in May as exports slipped 0.8% while imports remained flat

Fed Chief Janet Yellen maintained her call for an interest rate increase in 2015 as economy improves

Weekly jobless claims rose 15,000 to 297,000, suggesting some slowdown in labor market recovery

The IMF trimmed global growth forecast by 0.2 percentage point to 3.3%, citing impact of recent US weakness

The Food & Agriculture Organization's food price index slid 0.9% MoM in Jun as global food prices declined

Paris-based OECD said the US, UK and China are showing fresh signs of weakening while Eurozone activity is firming

German trade surplus widened to a record high €22.8bn, as exports rose 1.7% while imports increased 0.4% MoM

Britain is reportedly planning to sell half of its stake in the Royal Bank of Scotland, worth £16bn

The Bank of France revised down its estimate for 2Q2015 growth to 0.2% from earlier 0.3%

Greek PM Alexis Tsipras won backing from lawmakers on Jul 10 for painful reform proposals to obtain bailout

Jobless rate in Greece edged down to 25.6% in Apr from an upwardly revised 25.8% in Mar

BRICS countries agreed to set up $100bn reserve currency pool to protect the member states from currency shocks

Japan’s current account surplus reached ¥1.88tn in May, exceeding a ¥1.54tn surplus forecast as imports fell 10.3%

Core machinery orders unexpectedly gained 0.6% in May, following a rise of 3.8% in Apr and 2.9% in Mar

China consumer inflation edged up to 1.4% YoY in Jun vs. 1.2% in May, producer price index cooled to -4.8% in Jun

State Council said it will spend Yuan 250bn to foster growth in areas economy needs most support

Australian employers added 7,300 jobs in Jun, much fewer than revised 40,000 in May. Jobless rate edged up to 6%

Brazil’s consumer prices in Jun accelerated to 0.79% from 0.74% in May. Inflation quickened 8.89% YoY in Jun

India’s factory output rose 2.7% in May, below estimates and as compared to a revised 3.4% gain in Apr

Saudi Arabia’s Public Inv. Fund signed agreement with Russian Direct Inv. Fund to invest SAR37.5bn in Russia

S&P 500 – 1 year performance Euro Stoxx 600 – 1 year performance

Source: Bloomberg, Mashreq Private Banking

INTERNATIONAL EQUITY MARKETS

Last Close Change 5 Day % YTD %

S&P 500 2,076.62 -0.16 -0.01 0.86

DJI 17,760.41 30.30 0.17 -0.35

Nasdaq Comp 4,997.70 -11.52 -0.23 5.52

Euro Stoxx 600 388.80 5.38 1.40 13.50

FTSE 100 6,673.38 87.60 1.33 1.63

Dax 11,315.63 257.24 2.33 15.40

CAC 40 4,903.07 94.85 1.97 14.75

Nikkei 225 19,779.83 -759.96 -3.70 13.35

Hang Seng 24,901.28 -1,162.83 -4.46 5.49

Brazil - Bovespa 52,590.72 71.31 0.14 5.17

Russia - Micex 1,623.99 -7.66 -0.47 16.28

BSE Sensex 27,661.40 -431.39 -1.54 0.59

Shanghai Comp 3,877.80 190.89 5.18 19.88


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Damac Properties clarified that it has a 20% stake in London’s Nine Elms project, which is due to complete in 2020

National Central Cooling Co. completed repurchase of 28% mandatory convertible bonds at a price of AED1bn

Abu Dhabi Islamic Bank is mulling acquisitions in Malaysia, Indonesia, Algeria, Jordon & Morocco in the rest of 2015

Union National Bank has mandated a banking consortium to arrange a three-year $500mn syndicated term loan

SABIC Ind. Inv. formed a JV with Korean Global Chem. to produce polyethylene products with a total inv. of $640mn

Almarai Company’s bottom-line jumped 22.4% YoY in 2Q2015 to SAR530.4mn. Operating profit grew 23.8% YoY

Sadara Basic Serv. Co. signed a 20 years electricity supply agreement with Saudi Electricity Co. valued at SAR14bn

Saudi Telecom Co. approved distribution of 10% dividend amounting to SAR2bn for 2Q2015

Advanced Petrochemical Co. reported a 31.6% YoY surge in its 2Q2015 net income to SAR243mn

Saudi Real Estate Co. and Alinma Investment will jointly buy a land in Riyadh, worth SAR1.8bn for property projects

National Commercial Bank’s 2Q2015 net profit slipped 2.56% YoY to SAR2.36bn. BoD recommends 8% dividend

Saudi-based Cayan Group has begun construction on a SAR100mn office tower project in Riyadh

Samba Financial Group’s earnings gained in 2Q2015 to SAR1.33bn from SAR1.26bn in 2Q2014

The Saudi British Bank reported a 1.7% YoY decline in 2Q2015 bottom-line to SAR1.14bn

Kuwait's Al Ahli Bank received central bank approval to buy 98.5% stake in Piraeus Bank Egypt for $150mn

Abraj Energy plans to add 4 new drilling rigs in 2015 to strengthen its position in Oman’s drilling service market

Al Anwar Ceramic’s net profit slid 7.1% YoY in 2Q2015 to OMR4mn. Revenue was up 3.7% YoY to OMR14.7mn

Qatar National Bank’s 1H2015 earnings grew 10.2% YoY to QAR5.6bn, led by 6.7% YoY rise in net interest income

Doha Bank explores opportunity to expand Indian operations by setting up a branch in Kolkata, its fourth in India

Bahrain’s Gulf Finance House plans to sell up to 20% stake in Falcon Cement and make an acquisition in 2H2015

Bahrain-based aluminum rolling mill Garmco partnered with Fives to construct a new casthouse costing $55mn


Dubai 4,017.30 -71.52 -1.75 6.45

Abu Dhabi 4,707.94 -18.78 -0.40 3.95

Saudi Tadawul 9,281.76 145.42 1.59 11.38

Qatar Index 11,880.82 -240.26 -1.98 -3.30

Kuwait Index 6,139.22 -42.67 -0.69 -6.07

Oman MSM 30 6,436.75 -7.21 -0.11 1.47

Bahrain All Share 1,334.54 -15.84 -1.17 -6.45

Egypt EGX 30 7,617.39 -697.33 -8.39 -14.67

Istanbul 100 Index 82,791.85 1,574.87 1.94 -3.42


DFMGI – 1 year performance Saudi Tadawul – 1 year performance

GCC EQUITIES


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The euro strengthened 0.4% against US dollar in the week as Greece offered concessions to its international creditors in its latest reform proposal, stoking investors’ optimism that the country will receive a third bailout

The Japanese yen closed the week gaining marginally against US dollar after investors pushed the currency higher earlier amid the financial-market turmoil triggered by Greek negotiations and the collapse of Chinese stocks

The Australian dollar depreciated around 1.0% in the week against US dollar as falling iron ore prices and a drop in Chinese stocks spooked the market already shaken by Greece’s debt crisis

Brazil’s real weakened 0.8% in the week against US dollar as China’s equity meltdown triggered a plunge in the price of Brazil’s iron-ore exports

The Canadian dollar fell 0.67% against US dollar in the week as the Bank of Canada’s rate meeting next week overshadowed data showing the economy lost fewer jobs than expected in June

The offshore Chinese yuan, which trades freely, dropped 0.16% against US dollar in the week as a rout in the stock market led foreign funds pull money out of Chinese mainland stocks during the week

Ghana’s cedi surged 15.6% in the week to 3.535 per US dollar as speculation increased that dollar inflows will improve after the government sells its Eurobond


EUR/USD 1.1162 0.0048 0.43 -7.74

GBP/USD 1.5517 -0.0053 -0.34 -0.39

AUD/USD 0.7446 -0.0077 -1.02 -8.92

USD/JPY 122.7800 -0.0100 -0.01 2.50

USD/CHF 0.9387 -0.0017 -0.18 -5.59

USD/CAD 1.2658 0.0084 0.67 8.92

USD/BRl 3.1602 0.0259 0.83 18.91

USD/RUB 56.4185 0.4490 0.80 -7.11

USD/INR 63.4000 -0.0388 -0.06 0.57

USD/CNY 6.2094 0.0039 0.06 0.06

DXY Index 96.0250 -0.0880 -0.09 6.38

EUR/USD – 1 year performance GBP/USD – 1 year performance


CURRENCIES


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Spot gold price edged down 0.4% in the week as US Federal Reserve Chief Janet Yellen said she expected the central bank to raise interest rates sometime in 2015 but pointed to concerns that US labor markets remain weak

Brent and West Texas Intermediate (WTI) declined for a second week by 2.6% and 7.4%, respectively as the International Energy Agency forecast prices will need to fall further to curb excess supplies

LME Nickel futures dropped 6.2% in the week, recording the fifth straight weekly decline after swings in China’s equity market roiled commodities

Copper futures dipped 3.4% in the week as concerns persisted over top consumer China's demand for the metal even as Chinese stock markets recovered and in Europe hopes grew for a deal between Greece and its creditors

Corn prices gained 1.8% in the week after the US Department of Agriculture trimmed its estimate of this year’s US harvest and lowered its outlook for near-term supplies of the grain

The Chicago Board of Trade wheat futures settled 0.73% lower in the week after the government predicted higher US production and raised inventory estimates from month-ago levels

Sugar futures firmed 0.9% in the week after a Brazilian consulting firm, Datagro lowered its forecast for Brazil's production of the sweetener to 30.7mn tons from 32.2mn tons in the year beginning Oct 1


Gold spot 1,163.70 -4.78 -0.41 -1.79

Silver spot 15.59 -0.11 -0.70 -0.75

Copper-CMX 254.55 -8.90 -3.38 -9.91

Brent - ICE 58.73 -1.59 -2.64 -5.43

WTI - Nymex 52.74 -4.19 -7.36 -6.26

S&P GSCI Spot Index

415.48 -18.33 -4.22 -0.63

Baltic Dry Index 874.00 69.00 8.57 11.76

WTI Crude – 1 year performance GOLD – 1 year performance


COMMODITIES


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US treasury bonds registered a weekly fall, and the 10-year yield rose 1.5 bps to 2.4% as a recovery of Chinese stock prices and hopes of a Greece debt deal reduced the safe haven allure of US government debt

The Bank of England kept its interest rate at the historically low level of 0.5% on Jul 9 for the 76th month as the threat of a Greek exit from the Eurozone weighs on the economic outlook. Asset purchase was held at £375bn

Benchmark 10-year UK gilts fell in the week, sending 10 year yield 8.3 bps higher to 2.1% as optimism that Greece was heading for an agreement with its creditors damped demand for haven assets

Australian central bank left its key interest rate unchanged at a record-low of 2% on Jul 7, as predicted by markets and economists, and after cuts in May and Feb

China’s benchmark money-market rate declined 32 bps from July 3 to 2.51%, the most since May on speculation a drop in new share sales and central bank measures will support cash supply

The Bank of Korea left its benchmark interest rate unchanged at a record low of 1.5% on Jul 9 as officials monitor the economic fallout from an outbreak of the MERS virus

Peru's central bank held the benchmark interest rate steady at 3.25% for the sixth month in a row on Jul 9 as widely expected amid slow growth, high inflation and a weakening currency


USD-1w Libor 0.15 0.0000 0.00 9.63

USD-3m Libor 0.29 0.0017 0.60 11.89

USD-6m Libor 0.45 -0.0081 -1.77 24.01

USD-10yr 2.40 0.0149 0.63 10.41

AED-1m EIBOR 0.41 0.0000 0.00 4.71

AED-3m EIBOR 0.75 0.0000 0.00 11.18

AED-12m EIBOR 1.09 0.0000 0.00 6.89

UK-10yr 2.08 0.0830 4.16 18.45

Japan-10yr 0.44 -0.0370 -7.74 36.96

US 10 year Generic Yield – 1 year performance UK 10 year Generic Yield – 1 year performance


INTEREST RATES


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Ref Country Weekly Change Weekly Change

(USD Adj.)

1 Egypt -8.39% -9.51%

2 Taiwan -4.75% -5.11%

3 Hong Kong -4.46% -4.44%

4 Laos -3.76% -3.78%

5 Japan -3.70% -3.69%

6 South Korea -3.48% -4.04%

7 Kazakhstan -2.77% -2.95%

8 Peru -2.71% -2.71%

9 Indonesia -2.49% -2.44%

10 Nigeria -2.49% -1.75%

Ref Country Weekly Change Weekly Change

(USD Adj.)

1 Venezuela 15.15% 15.15%

2 China 5.18% 5.11%

3 Denmark 3.07% 3.50%

4 Switzerland 2.48% 2.67%

5 Sweden 2.38% 2.70%

6 Spain 2.38% 2.82%

7 Germany 2.33% 2.77%

8 Belgium 2.30% 2.74%

9 Portugal 2.16% 2.61%

10 France 1.97% 2.41%

WEEKLY

Ref Country YTD Change YTD Change (USD Adj.)

1 Venezuela 298.69% 298.69%

2 Argentina 36.26% 26.46%

3 Hungary 32.65% 24.22%

4 Denmark 32.18% 21.70%

5 Jamaica 28.39% 25.66%

6 Malta 23.95% 14.36%

7 Italy 20.65% 11.31%

8 Ireland 20.18% 10.88%

9 China 19.88% 19.81%

10 Portugal 18.78% 9.59%

YTD

Ref Country YTD Change YTD Change (USD Adj.)

1 Egypt -14.67% -22.04%

2 Peru -14.15% -19.47%

3 Colombia -13.38% -22.99%

4 Bulgaria -9.55% -16.59%

5 Cyprus -9.38% -16.39%

6 Nigeria -8.45% -14.94%

7 Kazakhstan -7.95% -10.02%

8 Indonesia -7.04% -13.50%

9 Slovenia -6.95% -14.14%

10 Bahrain -6.45% -6.46%

EQUITY MARKETS - TOP MOST & BOTTOM MOST


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Ref Commodity Weekly Change

1 WTI Crude -7.36%

2 Nickel -6.17%

3 Heat Oil -5.44%

4 Palladium -4.87%

5 Platinum -4.74%

6 Gasoil -3.69%

7 Copper -3.38%

8 Steel Rebar -3.33%

9 Palm Oil -3.23%

10 Soybean Oil -3.15%

Ref Commodity Weekly Change

1 Gasoline 5.45%

2 Rough Rice 4.58%

3 Bean Meal 2.41%

4 Natural Gas 1.95%

5 Orange Juice 1.88%

6 Corn 1.79%

7 Lumber 1.73%

8 Lead 1.30%

9 Ethanol 1.29%

10 Sugar 0.89%

WEEKLY

Ref Commodity YTD Pct Change

1 Gasoline 41.34%

2 Cocoa 13.47%

3 Cotton 8.69%

4 Corn 7.62%

5 Gasoil 4.34%

6 Soybeans 2.38%

7 Ethanol 1.35%

8 Soybean Oil 1.06%

9 Bean Meal 0.38%

10

YTD

Ref Commodity YTD Pct Change

1 Steel Rebar -33.26%

2 Tin -26.55%

3 Coffee -26.20%

4 Nickel -25.68%

5 Palladium -18.24%

6 Orange Juice -14.89%

7 Platinum -14.58%

8 Sugar -14.53%

9 Natural Gas -11.70%

10 Lumber -11.36%

COMMODITY MARKETS - TOP MOST & BOTTOM MOST


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IMPORTANT NOTICE

This report was prepared by the Private Banking Unit of Mashreqbank psc (“Mashreq”) in the United Arab Emirates (“U.A.E.”). Mashreq is regulated by the Central Bank of the U.A.E. This report is provided for informational purposes and private circulation only and should not be construed as an offer to sell or a solicitation to buy any security or any other financial instrument or adopt any hedging, trading or investment strategy. Prior to investing in any product, we recommend that you consult with a professional financial advisor, taking into consideration investment objectives, financial circumstances and tax implication. While based on information believed to be reliable, we do not guarantee and make no express or implied representation as to the accuracy of this report or complete description of the securities markets or developments referred to in this report. The information, opinions, forecasts (if any), assumptions or estimates contained in this report are as of the date indicated and are subject to change at any time without prior notice. The stated price of any securities mentioned in this report is as of the date indicated and is not a representation that any transaction can be effected at this price. The risks related to investment products described in this report are not all encompassing and investors should refer to the relevant investment offer document for detailed information and applicable terms and conditions. Investment products, including treasury products, are not guaranteed by Mashreq or any of its affiliates or subsidiaries unless stated otherwise and are subject to investment risk, including loss of principal. Investment products are not government insured. Past performance is not an indicator of future performance. US persons (US Citizens; US Green Card Holders; Resident Aliens subject to US income taxes for IRS purposes) are not eligible for any of the investment products introduced by Mashreq unless stated otherwise. This report is for distribution only under such circumstances as may be permitted by applicable law. Neither Mashreq nor its officers, directors or shareholders or other persons shall be liable for any direct, indirect, incidental or other damages including loss of profits arising in any way from the information contained in this report. This report is intended solely for the use by the intended recipients and the contents shall not be reproduced, redistributed or copied in whole or in part for any purpose without Mashreq’s prior express consent.

Weekly Market Review - Mashreq · Weekly Market Review July 5, 2015 ... BSE Sensex 27,661.40...

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Transcript of Weekly Market Review - Mashreq · Weekly Market Review July 5, 2015 ... BSE Sensex 27,661.40...