Weekly Market Review

Weekly Market Review
28th September 2014 - 4th October 2014
CONTENTS
International Equity Markets
GCC Equity
Currencies
Commodities
Interest Rates
Equity Markets - Top Most & Bottom Most
Commodity Markets - Top Most & Bottom Most
INTERNATIONAL EQUITY MARKETS
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US non farm payrolls rose by 2,48,000 and jobless rate fell to 5.9% in September, lowest since July 2008
 Small business hiring hits 8-month high in Sept and weekly initial jobless claims fell by 8,000
US service sector growth slipped in Sept according to surveys from Markit and Institute of Supply Management
New orders for US factory goods dropped 10.1% in Aug, the largest drop in records since 1992
Markit’s Euro zone Composite PMI fell to 52 in Sept from 52.5 in Aug, suggesting economic recovery remains fragile
 Euro zone consumer prices rose 0.3% YoY in Sept, less than 0.4% rise seen in Aug and July
 Factory prices slid 0.1% from July, less than expected as the cost of heavy machinery rose
ECB left interest rates unchanged and rolled out measures to revive the euro zone economy and raise inflation
German joblessness rose unexpectedly by 13,000 in Sept while jobless rate held steady at 6.7%
 Retail sales rose by 2.5% in Aug, sharpest increase in more than three years
France’s national debt hit a record high of $2.53tn in 2Q2014 to 95.1% of annualized economic output
Britain’s GDP rose 0.9% in 2Q2014 led by strongest expansion in vast services industry
Greece’ deputy FM said that it will aim to achieve a primary budget surplus of 2.9% of GDP, close to bailout target
Japanese household spending fell 4.7% YoY in August, worse than economists' median estimate for a 3.8% decline
Japan’s industrial output unexpectedly declined 1.5% in Aug as activity struggles to recover following sales tax hike
China’s official non-manufacturing PMI edged down to 54 in Sept from 54.4 in Aug as new orders shrank
Brazil posted its 4th straight monthly primary deficit of $5.89bn in Aug, the biggest for the month since at least 2001
Consumer prices in Russia jumped 8% in Sept, the fastest pace in 3 years, putting pressure on central bank to raise
interest rates even as economic growth shrivels
Canada’s real GDP was unchanged in July from June, ensuring Bank of Canada will be in no rush to raise rates
S&P 500 – 1 year performance
Source: Bloomberg, Mashreq Private Banking
Last Close
Change
5 Day %
YTD %
1,967.90
-14.95
-0.75
6.47
17,009.69
-103.46
-0.60
2.61
4,475.62
-36.57
-0.81
7.16
335.19
-7.11
-2.08
2.11
FTSE 100
6,527.91
-121.48
-1.83
-3.28
Dax
9,195.68
-294.87
-3.11
-3.73
CAC 40
4,281.74
-113.01
-2.57
-0.33
Nikkei 225
15,708.65
-521.21
-3.21
-3.58
Hang Seng
23,064.56
-613.85
-2.59
-1.04
Brazil - Bovespa
54,539.55 -2,672.83
-4.67
5.89
S&P 500
DJI
Nasdaq Comp
Euro Stoxx 600
Russia - Micex
BSE Sensex
Shanghai Comp
1,384.66
-49.54
-3.45
-7.94
26,567.99
-58.33
-0.22
25.49
2,363.87
16.15
0.69
11.72
Source: Bloomberg, Mashreq Private Banking
Euro Stoxx 600 – 1 year performance
GCC EQUITIES
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Arabtec Holding announced that its $40bn Egypt housing project’s planning and designing is near completion;
Egyptian prime minister said that Arabtec will be responsible for raising cash needed to pay for the housing project
UAE-based Ghantoot Group plans to invest around $700mn in a bio-fertilizer plant proposed at Duqm SEZ, Oman
Amlak Finance’s shareholders approved issuance of $572mn Shari’ah-compliant convertible instrument
Dubai World secured agreement from more than 60% of its creditors to reschedule its debt repayment
Union Properties confirmed plans to launch AED3.5bn worth of new projects over the next three years
Amanat Holdings plans to raise AED1.375bn in an IPO on DFM during October 2014 by selling 55% of its shares
Emaar Properties plans to list its Egyptian unit in about June 2015 and float hotel subsidiary after the success of its
malls unit IPO
Dana Gas’ Egyptian subsidiary concluded a Gas Production Enhancement Agreement with two Egyptian companies
Saudi Arabia’s National Commercial Bank plans to raise $6bn from IPO by selling 500mn shares at SR45 apiece
Saudi Electricity Corporation awarded seven contracts worth SR2.56bn to supply electricity to Riyadh metro
KSA’s National Industrialization Company plans raising stake in its Cristal subsidiary by further 13% for SR1.8bn
Qatar based Barwa Real Estate sold a land plot worth QR2.54bn in Lusail city to the government
Vodafone Qatar agreed to buy state-owned Qatar National Broadband Network for QAR210mn by end-2014
National Bank of Kuwait sold its 30% stake in International Bank of Qatar for $537.5mn
BP Oman awarded $730mn worth long-term drilling contracts for the Khazzan project
Oman Oil Company signed a $1.85bn revolving credit facility with 16 local, regional and international banks
Oman Investment Fund will acquire Al Anwar Holdings ' entire 33.63% stake in Taageer Finance Co.
Bahrain based Investcorp announced it remains on track to complete sale of Berlin Packaging valued at $1.43bn
DFMGI – 1 year performance
Source: Bloomberg, Mashreq Private Banking
Last Close
Change
5 Day %
YTD %
Dubai
4,958.18
-96.07
-1.90
47.14
Abu Dhabi
5,111.25
-16.35
-0.32
19.14
Saudi Tadawul
10,851.48
86.46
0.80
27.13
Qatar Index
13,830.90
-44.07
-0.32
33.25
Kuwait Index
7,647.98
-7.59
-0.10
1.30
Oman MSM 30
7,479.57
20.67
0.28
9.44
Bahrain All Share
1,472.39
3.38
0.23
17.90
Egypt EGX 30
9,727.18
29.87
0.31
43.41
Istanbul 100
Index
74,384.37
-248.05
-0.33
9.71
Source: Bloomberg, Mashreq Private Banking
Saudi Tadawul – 1 year performance
CURRENCIES
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The US currency climbed against all of its 16 major counterparts as Bloomberg Dollar Spot Index rose 1.1% to
1,078.65 in the week fueled by monthly jobs gains and unemployment data
Last Close
Change
5 Day %
YTD %
EUR/USD
1.2516
-0.0168
-1.32
-8.93
The euro slumped 1.3% to 1.2516 in the week, dropping the most since the week ended Sept. 5 as European Central
Bank held interest rates at a record low
GBP/USD
1.5973
-0.0277
-1.70
-3.53
AUD/USD
0.8675
-0.0090
-1.03
-2.71
The pound had its biggest weekly drop in 15 months, sliding 1.7% to $1.5973 after Bank of England policy maker
Ben Broadbent said that the recovery may not be strong enough to warrant higher rates
USD/JPY
109.7600
0.4700
0.43
4.23
USD/CHF
0.9675
0.0161
1.69
8.35
USD/CAD
1.1244
0.0090
0.81
5.85
USD/BRl
2.4584
0.0383
1.58
4.08
USD/RUB
39.9381
0.7685
1.96
21.50
USD/INR
61.6100
0.4525
0.74
-0.31
USD/CNY
6.1395
0.0128
0.21
1.41
DXY Index
86.6940
1.0540
1.23
8.32
The Canadian dollar weakened 0.8% in the week to 1.1244 per US dollar after the nation posted an unexpected
trade deficit in August, supporting the Bank of Canada’s cautious outlook on the economy
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Brazil’s real dropped 1.6% in the week to 2.4584 per US dollar, marking the fifth weekly decline and the one-month
implied volatility on options for the real increased almost 18% as the weekend vote approaches
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The offshore Yuan in Hong Kong slid 0.26% in the week to 6.1608 per dollar, the biggest weekly drop since June as
pro-democracy protests blocked roads and disrupted business in and around the city’s Central business district

Malaysia’s ringgit advanced 0.1% from Sept. 26, snapping a run of four weekly declines, as the government
increased fuel prices for the first time in more than a year to narrow the budget deficit
EUR/USD – 1 year performance
Source: Bloomberg, Mashreq Private Banking
Source: Bloomberg, Mashreq Private Banking
GBP/USD – 1 year performance
COMMODITIES
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Gold fell 2.2% in the week to $1,191.35 an ounce and silver slumped 4.5% in the week to $16.84 an ounce after US
employers added more jobs in September, stoking speculation that Fed will move closer to raising interest rates
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Brent fell 4.8% in the week to $92.31 a barrel while WTI crude for Nov delivery on Nymex also lost more than 4% to
$89.74 a barrel on speculation rising global supplies will be more than enough to meet slowing demand
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Cocoa futures posted a weekly loss of 7.7% on news that top producers Ivory Coast and Ghana would increase price
supports for farmers, which was expected to increase supply
Last Close
Gold spot
Arabica coffee vaulted almost 11% in the week as concerns renewed over the impact of dry weather in top-grower
Brazil on its 2015-16 crop
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Platinum and Palladium futures lost 5.85% and 3.7% in the week amid concerns that slowing growth in Europe and
China would lower the metals demand used in automotive exhaust filters

Corn prices dove to a 5-year low in the week, driven lower by heavy supplies of the grain. US Department of
Agriculture, in its Sept 30 quarterly grain stockpile report, showed a whopping 1.236bn bushels of corn leftover
from last year
WTI Crude – 1 year performance
Source: Bloomberg, Mashreq Private Banking
5 Day %
YTD %
1,191.35
-27.03
-2.22
-1.19
16.84
-0.80
-4.53
-13.48
299.85
-3.70
-1.22
-10.69
Brent - ICE
92.31
-4.69
-4.84
-13.58
WTI - Nymex
89.74
-3.80
-4.06
-3.86
565.79
-16.72
-2.87
-10.52
1,037.00
-12.00
-1.14
-54.46
Silver spot
Copper-CMX

Change
S&P GSCI Spot
Index
Baltic Dry Index
Source: Bloomberg, Mashreq Private Banking
GOLD – 1 year performance
INTEREST RATES
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The US 10-year note yield fell 9.36 bps to 2.43% as higher yields relative to Group of Seven nations increased
treasuries demand worldwide amid concern global economic growth is stalling
Last Close
Change
5 Day %
YTD %
USD-1w Libor
0.12
0.0010
0.81
-8.39
USD-3m Libor
0.23
-0.0015
-0.64
-5.89
USD-6m Libor
0.32
-0.0057
-1.73
-6.70
USD-10yr
2.43
-0.0936
-3.70
-19.62
British 10-year government bond prices rose in the week and yields slid 7.9 bps to 2.39% while stock prices fell after
the ECB gave less detail about a plan to buy asset-backed securities than the market had hoped for
AED-1m EIBOR
0.39
-0.0157
-3.83
-14.28
AED-3m EIBOR
0.70
-0.0143
-2.01
-14.24
Japan 10-year yields declined 0.5 bps in the week to 0.51% amid the Bank of Japan record purchase of 3.5tn Yen in
treasury bills as the central bank pushes forward with unprecedented monetary easing to reach its 2% inflation
target
AED-12m EIBOR
1.03
-0.0143
-1.37
-13.39
UK-10yr
2.39
-0.0790
-3.20
-20.95
Japan-10yr
0.51
-0.0050
-0.97
-30.20
Euro area government bonds rose and yields fell as Euro zone inflation slowed to a five-year low, boosting bets
the European Central Bank will take more steps to revive the region’s economy. In the week, German 10-yr yield
declined 5 bps to 0.93%, Spanish 10-yr yields fell 9 bps to 2.1% while Italian 10-yr yields dropped 8 bps to 2.31%
Swap rates in Brazil, a gauge of expectations for changes in borrowing costs, rose 24 bps in the week to 11.91% as
the central government’s primary deficit, excluding interest payments, widened in August to 10.4bn reais
Source: Bloomberg, Mashreq Private Banking
US 10 year Generic Yield – 1 year performance
Source: Bloomberg, Mashreq Private Banking
UK 10 year Generic Yield – 1 year performance
EQUITY MARKETS - TOP MOST & BOTTOM MOST
WEEKLY
YTD
1
Slovakia
3.86%
Weekly Change
(USD Adj.)
2.48%
2
Serbia
2.58%
3
Sri Lanka
4
1
Argentina
111.82%
YTD Change
(USD Adj.)
63.12%
1.23%
2
Dubai−UAE
47.14%
47.13%
2.39%
2.37%
3
Egypt
43.41%
39.39%
Hungary
1.56%
1.03%
4
Qatar
33.25%
33.23%
5
Pakistan
1.34%
1.58%
5
Kazakhstan
29.52%
9.80%
6
Taiwan
1.30%
0.91%
6
Slovenia
27.77%
16.37%
7
Vietnam
1.09%
0.80%
7
Saudi Arabia
27.13%
27.09%
8
Romania
1.07%
-0.17%
8
India
25.49%
25.88%
9
Kenya
0.81%
0.69%
9
Sri Lanka
25.26%
25.69%
10
Morocco
0.80%
-0.23%
10
Philippines
23.04%
21.89%
Ref
Country
Ref
1
Country
Argentina
Weekly Change
Weekly Change
-8.90%
Weekly Change
(USD Adj.)
-9.11%
Ref
Country
YTD Change
1
Russia
-24.30%
YTD Change
(USD Adj.)
-24.30%
-15.36%
-22.91%
Ref
Country
YTD Change
2
Russia
-5.54%
-5.54%
2
Portugal
3
Peru
-5.18%
-5.68%
3
Austria
-15.31%
-22.87%
4
Brazil
-4.67%
-6.16%
4
Jamaica
-10.92%
-16.03%
5
Luxembourg
-4.65%
-5.91%
5
Greece
-9.71%
-17.78%
6
Kazakhstan
-4.55%
-4.60%
6
Malta
-9.10%
-17.21%
7
Norway
-3.71%
-4.12%
7
Latvia
-7.90%
-16.13%
8
Japan
-3.71%
-4.71%
8
Estonia
-6.72%
-15.05%
9
Indonesia
-3.57%
-4.60%
9
Mongolia
-4.69%
-13.62%
10
Greece
-3.38%
-4.66%
10
Germany
-3.73%
-12.33%
Source: Bloomberg, Mashreq Private Banking
COMMODITY MARKETS - TOP MOST & BOTTOM MOST
WEEKLY
Ref
Commodity
YTD
Weekly Change
Ref
Commodity
YTD Pct Change
1
Coffee
10.99%
1
Coffee
86.54%
2
Natural Gas
8.94%
2
Feeder Cattle
44.50%
3
Lumber
6.72%
3
Lean Hogs
23.62%
4
Sugar
6.68%
4
Live Cattle
20.74%
5
Feeder Cattle
3.34%
5
Nickel
19.06%
6
Zinc
2.80%
6
Cocoa
12.81%
7
Live Cattle
2.49%
7
Zinc
10.43%
8
Wheat
2.42%
8
Aluminium
6.32%
9
Soybean Oil
1.16%
9
Palladium
5.47%
10
Cotton
0.94%
10
Orange Juice
3.26%
Weekly Change
Ref
Ref
Commodity
Commodity
YTD Pct Change
1
Gasoline
-10.65%
1
Rubber
-39.71%
2
Cocoa
-7.70%
2
Soybeans
-30.50%
3
Platinum
-5.85%
3
Bean Meal
-29.63%
4
Ethanol
-5.24%
4
Cotton
-25.48%
5
Brent Crude
-4.84%
5
Steel Rebar
-25.18%
6
Silver
-4.56%
6
Corn
-23.40%
7
Gasoil
-4.24%
7
Ethanol
-21.51%
8
Palladium
-3.70%
8
Natural Gas/ICE
-20.07%
9
Heat Oil
-3.12%
9
Wheat
-19.74%
10
Nickel
-2.53%
10
Rough Rice
-18.86%
Source: Bloomberg, Mashreq Private Banking
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
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