Weekly Market Review March 27, 2016 – April 2, 2016

April 3, 2016

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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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Americas

US non-farm jobs rose by 215,000 in Mar, marginally above estimates. Jobless rate inched up to 5% (vs. 4.9% in Feb)

US consumer confidence index moved up to 96.2 in Mar (vs. 94.0 in Feb), beating consensus

Consumer spending inched up 0.1% in Feb, after rising 0.1% (downwardly revised) in Jan

Europe

Markit’s Eurozone composite output PMI reached 3-month high of 53.7 in Mar due to pick-up in services activity

European Commission’s economic sentiment index slipped for a 3rd consecutive month in Mar to 103

Germany’s consumer price index ticked up 0.3% YoY in Mar (vs. remaining flat in Feb), higher than estimates

Rest of the World

Thomson Reuters/INSEAD Asian Business Sentiment Index rose to 65 in 1Q16 from a 4-year low of 58 in 4Q15

Westpac MNI China consumer sentiment indicator rose 6.1% to 118.1 in Mar; its highest level since Sep 2015

S&P lowered China`s credit rating to negative; affirmed AA- long-term and A-1+ short-term sovereign credit rating

Caixin/Markit China`s manufacturing PMI rose to 50.2 in Mar (vs. 49 in Feb); highest score in 13 months

Japan’s industrial output slid 6.2% MoM (seasonally adjusted) in Feb, after rising 3.7% in Jan; more than estimates

Asian Development Bank cut 2016 developing Asia’s growth estimate to 5.7% from 6.0% on slowing Chinese growth

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

Source: Bloomberg, Mashreq Private Banking; *Current

INTERNATIONAL EQUITY MARKETS

Last Close 5 Day % YTD % P/E (2015) *Div. Yield

S&P 500 2,072.78 1.81 1.41 17.55 2.18

DJI 17,792.75 1.58 2.11 16.36 2.55

Nasdaq Comp 4,914.54 2.95 -1.85 20.85 1.29

Euro Stoxx 600 333.15 -0.58 -8.93 15.18 3.68

FTSE 100 6,146.05 0.65 -1.54 16.38 4.47

Dax 9,794.64 -0.58 -8.83 12.43 3.06

CAC 40 4,322.24 -0.17 -6.79 14.27 3.47

Nikkei 225 16,164.16 -4.93 -15.08 14.88 1.88

Hang Seng 20,498.92 0.75 -6.46 10.83 4.12

Brazil - Bovespa

50,561.53 1.82 16.64 14.06 3.68

Russia - Micex 1,856.77 -0.51 5.42 6.85 4.51

BSE Sensex 25,269.64 -0.27 -3.25 15.46 1.62

Shanghai Comp 3,009.53 1.01 -14.97 13.07 2.03

Source: Bloomberg, Mashreq Private Banking

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UAE

MEED: A JV between Arabtec and Turkey’s TAV will raise AED4bn loan to construct Bahrain’s new airport terminal

Dubai Parks & Resorts seeks shareholders’ nod to increase its issued share capital by AED1.68bn to AED8bn

Majid Al Futtaim’s FY15 net profit attributable to equity holders jumped to AED3.28bn (vs. AED2.50bn in FY14)

Al Barakah Int. Inv. appointed Commercial Bank of Dubai to arrange financing for its AED850mn mixed-use project

Saudi Arabia

Saudi Arabian Capital Market Authority approved Al Yamamah Steel’s IPO, which will run from Apr 27-May 3

Savola said European Bank for Reconstruction & Development will invest $100mn in its indirect subsidiary in Egypt

S&P lowered long-term counterparty credit rating for Nat. Comm. Bank, Riyad Bank, Al Rajhi Bank & Samba Fin. Gp.

Rest of GCC

Qatar First Bank expects to get approval for listing of its shares on the Qatar Stock Exchange by April-end

Qatar International Islamic Bank plans to issue non-convertible Sukuk of up to QAR3bn to boost its capital ratio

Al Ahli Bank of Kuwait signed deal with Piraeus Bank to acquire its Egyptian unit for $150mn

Nogaholding secured 5-year $570mn financing facility to support investment in a no. of oil & gas projects in Bahrain

Investcorp Bank reportedly plans IPO of KSA’s Leejam Sports Company; to sell 30% stake worth around SAR1bn

Last Close 5 Day % YTD % P/E (2015) *Div. Yield

Dubai 3,355.53 1.11 6.49 9.49 3.72

Abu Dhabi 4,390.42 1.35 1.93 9.81 5.56

Saudi Tadawul 6,223.13 -2.01 -9.96 12.33 4.17

Qatar Index 10,376.20 0.88 -0.51 12.08 4.00

Kuwait Index 5,228.75 -0.75 -6.88 – 4.94

Oman MSM 30 5,467.42 -1.20 1.13 9.65 4.77

Bahrain All Share

1,131.11 -2.40 -6.97 – 4.91

Egypt EGX 30 7,524.99 -0.31 7.41 8.93 1.44

Istanbul 100 Index

82,359.44 1.23 14.82 9.29 3.09

Source: Bloomberg, Mashreq Private Banking; *Current

DFMGI – 1 year performance Saudi Tadawul – 1 year performance

GCC EQUITIES

Source: Bloomberg, Mashreq Private Banking

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US dollar weakened against major currencies from Mar 25 and USD index fell 1.72% after comments from the Federal Reserve Chair Janet Yellen earlier this week reflected concern that global headwinds may restrain the US economy, dimming the prospects for higher interest rates

British pound depreciated 1.33% against euro in the week as a report showed a gauge of manufacturing output held near the lowest level since 2013, adding to investor concerns that the UK growth is slowing

Russia’s ruble ended the week edging up 0.72% against US dollar even as crude oil prices declined, as signals that the US Federal Reserve would not rush to lift interest rates stoked appetite for developing-nation assets

Brazil’s real gained 3.39% against US dollar this week after the central bank sold a fraction (2,900 out of 17,000) of contracts it offered to protect against a decline in the currency, indicating traders are still betting on appreciation

Canadian dollar strengthened 1.95% against US dollar during the week as data showed Canada’s GDP rose at more-than-expected 0.6% in Jan, boosting speculation that the Bank of Canada will refrain from cutting rates in 2016

Indian rupee appreciated 0.58% against US dollar in the week, aided by continued selling of the greenback by banks and exporters amid increased foreign fund inflows, and, dovish comments on US interest rates by Janet Yellen

Last Close 5 Day % 1 Mth. % YTD % 1 Year %

USD Index 94.6190 -1.72 -3.66 -4.07 -1.99

EUR/USD 1.1391 2.01 4.81 4.87 3.85

GBP/USD 1.4227 0.67 1.06 -3.45 -4.64

USD/JPY 111.6900 -1.23 -1.58 -7.10 -6.12

USD/CHF 0.9580 -2.00 -3.89 -4.40 0.66

USD/CAD 1.3011 -1.95 -3.03 -5.98 4.22

USD/BRL 3.5538 -3.39 -8.74 -10.28 13.80

USD/RUB 67.6825 -0.72 -7.35 -6.67 19.43

USD/INR 66.2475 -0.58 -1.92 0.14 6.00

USD/CNY 6.4818 -0.52 -1.06 -0.18 4.64

USD/AUD 1.3021 -2.24 -5.01 -5.12 -0.65

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

Source: Bloomberg, Mashreq Private Banking

CURRENCIES

Source: Bloomberg, Mashreq Private Banking

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US WTI & Brent crude futures tumbled 6.77% & 4.38%, respectively, from Mar 25 on signs the world’s biggest exporters may fail to complete a deal to cap their output on Apr 17. KSA’s deputy crown prince, Mohammed bin Salman, said the Kingdom will freeze its oil output only if Iran and other major producers agree to curb theirs

Gold edged up 0.50% during the week ended Apr 1 as US dollar slid following dovish remarks by Janet Yellen earlier this week, lowering chances for higher interest rates. A weakening dollar raises allure of the safe haven commodity

COMEX copper futures edged lower 2.76% this week after ratings agency S&P lowered outlook for China’s credit rating, which added to concerns on global demand

Chicago Board of Trade (CBoT) corn futures ended the week down 4.32% after the US Agriculture Department forecasted 2016 planted acreage well above trade expectations

CBoT wheat futures edged up 2.75% over the past five days on short covering, led by spring wheat futures which gained nearly 3% after the US government pegged planted acreage below expectations at the lowest since 1972

Baltic Dry Index jumped 10.84% in the week boosted by stronger rates across all vessel segments. The Singapore Exchange said seasonal strength in demand may continue to drive freight rates moderately higher through 2Q16

Last Close 5 Day % 1 Mth. % YTD % 1 Year %

Brent – ICE 38.67 -4.38 4.71 3.73 -29.63

WTI – Nymex 36.79 -6.77 6.15 -0.67 -25.13

Gold Spot 1,222.50 0.50 -1.41 15.18 1.63

Silver Spot 15.05 -0.80 0.72 8.62 -12.74

Copper - CMX 216.30 -2.76 -0.67 1.31 -20.89

S&P GSCI Spot Index

316.40 -3.51 3.27 1.52 -21.09

Baltic Dry Index 450.00 10.84 34.33 -5.86 -23.47

WTI Crude – 1 year performance GOLD – 1 year performance

Source: Bloomberg, Mashreq Private Banking

COMMODITIES

Source: Bloomberg, Mashreq Private Banking

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The 10-year US bond yield declined 12.95 basis points (bps) to 1.77%, its biggest weekly drop since Jan 29, as the Fed’s Chairwoman Janet Yellen said only gradual increases in the Federal Funds rate are warranted in coming years

China’s 14-day and one-month rates climbed 34 bps and one bps to 3.1433% & 1.9823%, respectively, due to end of quarter cash demand. However, 7-day repo rate slipped one bps to 2.2786% on the back of strong cash injections by the central bank

Tunisia`s central bank kept its key interest rate unchanged at 4.25% on Mar 31, after cutting it in Oct from 4.75%, in a bid to boost economic growth as inflation fell. Tunisia’s inflation fell to 4.9% in 2015 from 5.5% in 2014

Romania`s central bank kept its benchmark interest rate on hold for a 7th time at a record low 1.75% on Mar 31, balancing briefly falling prices with rising fiscal pressure ahead of two elections in 2016

The Czech National Bank Board held its key interest rate steady for a 26th straight month at 0.05% on Mar 31. The central bank affirmed its exchange rate commitment while saying that the currency ceiling may be discontinued around the middle of 2017, owing to the anti-inflationary risks

Israel’s central bank left its benchmark interest rate at 0.1% on Mar 28 for a 13th straight month and said the eventual start of rate hikes would be delayed into 2017

Last Close 5 Day % 1 Mth. % YTD % 1 Year %

USD-10yr 1.77 -6.82 -2.98 -21.98 -7.39

USD-2yr 0.72 -16.86 -13.91 -31.05 33.88

Fed Funds Rate 0.25 -32.43 -30.56 25.00 108.33

USD-3m Libor 0.63 0.08 -0.40 2.68 129.81

USD-6m Libor 0.90 -1.08 2.09 6.49 124.63

German-10yr 0.13 -25.56 -8.22 -78.70 -30.93

UK-10yr 1.41 -3.03 0.86 -28.11 -11.49

Japan-10yr (0.07) -31.63 -1.47 -125.77 -120.00

AED-3m EIBOR 1.03 -0.04 -2.58 -2.82 39.88

AED-6m EIBOR 1.28 0.30 0.76 4.61 43.98

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

Source: Bloomberg, Mashreq Private Banking

INTEREST RATES

Source: Bloomberg, Mashreq Private Banking

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Ref Country Weekly Change Weekly Change

(USD Adj.)

1 Japan -4.93% -3.75%

2 Kazakhstan -3.45% -3.21%

3 Norway -3.29% -1.47%

4 Morocco -2.44% -1.26%

5 Bahrain -2.40% -2.39%

6 Vietnam -2.39% -2.30%

7 Israel -2.39% -0.80%

8 Italy -2.14% -0.18%

9 Spain -2.13% -0.17%

10 Portugal -2.13% -0.16%

Ref Country Weekly Change Weekly Change

(USD Adj.)

1 Argentina 5.45% 3.42%

2 Hungary 3.40% 5.58%

3 Luxembourg 2.70% 4.76%

4 Greece 2.61% 4.66%

5 Austria 2.03% 4.08%

6 Poland 1.91% 4.22%

7 Mongolia 1.88% 1.88%

8 Brazil 1.82% 5.40%

9 US 1.81% 1.81%

10 Pakistan 1.74% 1.68%

WEEKLY

Ref Country YTD Change YTD Change (USD Adj.)

1 Peru 20.73% 23.33%

2 Brazil 16.64% 29.99%

3 Colombia 15.59% 20.82%

4 Kazakhstan 14.93% 14.38%

5 Turkey 14.82% 18.72%

6 Russia 13.86% 13.86%

7 Argentina 12.89% -1.31%

8 Namibia 12.34% 18.20%

9 Slovakia 11.29% 16.71%

10 Hungary 9.99% 16.03%

YTD

Ref Country YTD Change YTD Change (USD Adj.)

1 Ukraine -18.85% -25.15%

2 Italy -17.00% -12.96%

3 Japan -15.08% -8.59%

4 China -14.97% -14.81%

5 Mongolia -14.30% -16.60%

6 Switzerland -12.81% -8.80%

7 Sri Lanka -11.77% -12.93%

8 Nigeria -10.95% -10.90%

9 Saudi Arabia -9.96% -9.89%

10 Spain -9.87% -5.48%

EQUITY MARKETS - TOP MOST & BOTTOM MOST

Source: Bloomberg, Mashreq Private Banking

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Ref Commodity Weekly Change

1 Gasoil -6.93%

2 WTI Crude -6.77%

3 Heat Oil -5.53%

4 Rough Rice -4.97%

5 Gasoline -4.39%

6 Brent Crude -4.38%

7 Sugar -4.35%

8 Corn -4.32%

9 Nickel -4.31%

10 Tin -3.69%

Ref Commodity Weekly Change

1 Orange Juice 8.46%

2 Natural Gas 8.31%

3 Soybean Oil 3.83%

4 Aluminium 3.82%

5 Wheat 2.75%

6 Cotton 2.56%

7 Palm Oil 2.14%

8 Zinc 1.96%

9 Ethanol 1.40%

10 Platinum 0.97%

WEEKLY

Ref Commodity YTD Pct Change

1 Steel Rebar 24.50%

2 Lumber 16.73%

3 Rubber 16.63%

4 Zinc 16.35%

5 Gold 15.18%

6 Tin 14.74%

7 Lean Hogs 13.38%

8 Palm Oil 13.30%

9 Soybean Oil 12.77%

10 Gasoline 10.61%

YTD

Ref Commodity YTD Pct Change

1 Natural Gas -16.30%

2 Rough Rice -15.65%

3 Cocoa -10.28%

4 Cotton -6.45%

5 Feeder Cattle -6.41%

6 Nickel -5.67%

7 Lead -2.51%

8 Live Cattle -2.08%

9 Corn -1.32%

10 WTI Crude -0.67%

COMMODITY MARKETS - TOP MOST & BOTTOM MOST

Source: Bloomberg, Mashreq Private Banking

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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.