NAZAHAREPORT

MARKETSOVERVIEW
BETAVERSION
March 2, 2011

Markets Overview:
Stocks listed in the energy-rich Gulf states dropped, some sharply, on
Disclaimer: Wednesday as they reeled under the impact of sweeping unrest in
Views and opinions
expressed on Nazaha many Arab countries. Oil prices continue to go up, not benefitting the
Markets are those of
the authors alone and
region this time.
do not in any way
represent the official
views, positions or Equities Markets: XU100 Index was 0.8%
opinions of the higher. The Egyptian stock market
employers – both past
or present – of the
Stocks in Saudi Arabia fell is still closed and is scheduled
author in question, or
any other institutions sharply Wednesday as the In Tunisia, where a revolt to re-opens on March 6, 2011.
and corporations
associated with the benchmark TASI index closed forced President Zine El At the time if this writing, the
author. Neither the
information nor any down 3.9%, leading Middle Abidine Ben Ali into exile on Market Vectors Egypt Index
opinions contained or
Eastern markets broadly lower. Jan. 14 and sparked uprisings ETF was down by
expressed above and
elsewhere on Nazaha
Elsewhere in the region, in other countries including -2.16%. Egypt’s bourse, home
Markets constitutes or
should be construed Dubai’s DFM stock index sank Egypt, the market regulator to the world’s worst
as a solicitation or
offer by Nazaha 3.5% to 1,374.43, while the suspended trading for the performing benchmark index
Markets to buy or sell
Abu Dhabi Securities second time since the leader’s this year, risks losing
any securities or other
financial instruments
Exchange’s General Index ouster on Feb. 28 after protests international investment after
or to provide any
investment advice or declined 1.8% and the Qatar forced the prime minister to failing to resume trading amid
recommendations.
Nazaha Markets shall Exchange’s QE Index gave up resign. The benchmark protests from local investors
not be liable for any
claims or losses of any 3.6%. Tunindex has fallen 11 percent who fear deeper losses.
nature, arising
In Jordan, the Amman since trading resumed after a
indirectly or directly
from use of the
Stock Exchange’s benchmark two-week suspension. The Morocco’s MADEX Free
information on or
accessed through the ASE Index slipped 1.3%. country’s regulator hasn’t said Float Index declined 0.3
site. Please see full
disclaimers here. And late in the day, the when the bourse will open percent at 3:09 p.m. in
Istanbul Stock Exchange’s again. Casablanca.

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NAZAHAMARKETS March 2, 2011 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 Asia’s
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 Yilmaz’s efforts to restrain domestic demand
aren’t 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
“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 capital
structure and the
funding to complete
its business plan
and support the
growth of the
company.”
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against default on Wednesday, according to data
provider Markit. The spread on five-year Saudi
Arabian credit default swaps, or CDS, widened to 143
basis points from 136 basis points on Tuesday, Markit
said. That means it would now cost $143,000 a year
to
The Fitch agency on Wednesday
downgraded Tunisia's long-term debt
rating to BBB-, with a negative outlook,
due to the uncertainty over the troubled
country's stability and economic policy.
insure $10 million of Saudi government debt against
default for five years, up $7,000 from Tuesday. The
spread on Bahrain CDS widened 12 basis points to
313, while Lebanon widened 9 basis points to 365 and
Qatar widened 4 basis points to 119. (MarketWatch)
Fitch Ratings has downgraded UAE-based Dubai
Bank's (DB) Individual Rating to 'D/E' from 'D' and
maintained it on Rating Watch Negative (RWN).
In other news, National Central Cooling Co., the
United Arab Emirates company known as Tabreed,
said it will receive 3.1 billion dirhams ($844 million)
from Mubadala Development Co. as part of a
recapitalization. The agreement with Abu Dhabi’s
investment arm provides Tabreed with long-term
capital comprised of 1.7 billion dirhams in
subordinated mandatory convertible notes maturing
2019 and a subordinated convertible loan facility for
as much as 1.4 billion dirhams maturing at the end of
December 2012, he said. (Bloomberg).
NAZAHAMARKETS March 2, 2011

“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 to
clients 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.”

Commodities
Oil prices climbed nearly 3% Tuesday as violence in Prompt delivered Europe physical coal prices were little
Libya and the potential spread of the turmoil in the Middle changed on Wednesday after a day of thin trading. No fresh
East and North Africa continued to feed concerns over deals were reported and few bids and offers were seen.
global oil supplies, prompting futures prices to mark the Despite volatility in oil prices and fears of further
highest closing level in over two years. disruption to Libyan oil supply, coal, gas and power markets
Light sweet crude for April delivery rose $2.66, or 2.7%, remained sluggish. (Reuters)
to close at $99.63 a barrel on the New York Mercantile
Exchange. That’s the strongest closing level for a most active Major North American markets tumbled on Tuesday as
contract since September 2008. (Market Watch) concern about the continuing turmoil in Libya and other
Gold also benefited from the geopolitical problems in oil-producing countries sent commodity prices higher,
the Middle East and North Africa. renewing fears that the economic recovery could be stalled.
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.

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