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Monthly Newsletter
Introduction With less than one month to complete the first half of our investment journey in 2015, global and regional capital markets were hostage to a series of events that resulted in the pop-up of pockets of systematic risks.
Stranded talks over Greece’s debt problem is curbing the momentum of the recovery in Europe and raising uncertainty regarding the socio-economic implications of a potential Greek default or exit from the Euro zone. Not so far from Greece, the Turkish parliamentary election delivered a surprise outcome with no party able to form a government alone.
While the OPEC meeting was a “no event”, news of investigation into bribery at the FIFA took its toll on the Qatari equity markets. On the other hand, regional and international investors are holding their breath awaiting the outcome of the final negotiation regarding Iran’s nuclear deal amid fighting escalation stretching from the Lebanese-Syrian borders all the way to Iraq. With all this noise, and border skirmishes with Yemeni armed groups, Saudi Arabia is on track to open its stock market to foreign investors on June 15.
Turning from geopolitics to macroeconomics, it is worth to note that Europe was showing some signs of green shoots over the past few months on the back of ECB’s commitment to its Quantitative Easing program (purchase of assets by the central bank). However, the US and China in particular were the main contributors to the economic slowdown during the first half of 2015. While weakness in the US could be attributed to seasonal factors, the Chinese authority started recently to take some countercyclical measures that range from accommodative monetary policy to the relaxation of some import duties to encourage consumption. Based on this we expect to see a rebound in economic activity in H2 2015.
Key issues for this recovery to build pace are stability in major currency and fixed income (funding) markets. On the first front we have noticed few statements favoring weaker USD, these include a statement (deemed denied) attributed to President Obama during the G7 meeting in Germany and remarks from Japan’s central bank governor regarding the weakness of the Yen vis a vis the USD.
On the fixed income front, the recent volatility in European bond yields translated into volatility in US treasury and corporate yields not to mention stocks. This upheaval in markets coupled with pronounced selling pressures proved that reduced liquidity and high magnitude volatility are valid concerns although the ECB’s President Mario Draghi and US Fed’s “Chairman” Janet Yellen stressed that markets should expect high volatility. In this context, and because there is a reason to assume fire when we see smoke, as asset managers we take seriously that the IMF and the World Bank urged the US Fed to defer its rate hike to 2016 while major global fund managers are putting the probability of a rate hike in December at below 50%. As such a weaker USD and an accommodative monetary environment are a good recipe in our opinion for global economic growth and capital markets. We will shift our mind- set only when the tide changes course with valid confirmation. Until then we will keep pursuing a cautious approach by maintaining our discipline in being patient while waiting for bargains in an effort to pick investments with a margin of safety and simultaneously diversifying to enhance downside protection.
For further information and to discuss possible investment opportunities, please contact:
Asset Management Dept.
Tel: +962 6 5200330
Ext. 494 and 832
AssetManagement@Capitalinv.com
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Asset Management Dept. | Monthly Newsletter
“There are three classes of people: those who see, those who see when they are shown, those who do not see”-Leonardo da Vinci
“Be happy for this moment. This moment is your life”. –Omar Khayyam
Recent Asset Classes: It was all about Liquidity & Volatility
Macro …Potential Recovery in H2 2015
Oil: Rally is Welcome but may be Reaching its Limit over the Short Run
A Review of Saudi Arabia in Light of Opening the Equity Market to Foreigners
June 11th, 2015
Asset Management Team: Wassim Jomaa, CFA VP, Head of Asset Management Wassim.Jomaa@Capitalinv.com
Samar Miqdadi Senior Portfolio Manager Samar.Miqdadi@Capitalinv.com
Raed Al Momani Senior Financial Analyst Raed.Momani@Capitalinv.com
Qasem Bilbeisi Financial Analyst Qasem.Bilbeisi@Capitalinv.com
This report must be read with the disclaimer at the end of the report.
Monthly Newsletter | Asset Management Dept. 2
June 11th, 2015
Recent Asset Classes: It was all about Liquidity & Volatility
A strong USD coupled with a monetary withdrawal stance from the US Fed have led to a
shrinkage of liquidity, this resulted in sharp moves in markets deemed to be liquid such as the US
and German sovereign bonds. To make a general gauge of the global liquidity we are keeping an
eye on global foreign currency reserves which are following a downward trend since one year
and simultaneously we are closely watching the US Fed monetary base.
The TED spread is the difference between the three-month LIBOR and the three-month T-bill
interest rate. It is an indicator of perceived credit risk in the general economy, since T-bills are
considered risk-free while LIBOR reflects the credit risk of lending to commercial banks. The TED
spread was on a rising trend since Q4 2014, staying persistently above 0.25% is alarming and an
indication of stress in money markets. In addition we have noticed recently an uptick in other key
money market indicators such as the Eurodollar deposits rates and USD 3month Libor which
indicates that there was a little pressure in the funding market.
On the back of weak US macro data over the past few months and thus expectations that the US
Fed would not increase its key interest rates during its June meeting, the USD followed a
downward trend before catching ground on the back of re-assuring figures that the US economy
is back on track for better growth in H2 2015. The fact that the Fed officials are “data
dependent” and will assess potential interest rate increases on a meeting by meeting basis is
keeping investors on their toes and thus raising uncertainty regarding the timing of the hike and
12.03
11.57
10.00
10.50
11.00
11.50
12.00
Intl Reserve Assets Excluding Gold World (Trl USD)
3,951
2,000
2,500
3,000
3,500
4,000
4,500
St. Louis Adjusted Monetary Base (Bln USD)
27.53
18
20
22
24
26
28
30
TED Spread (bps)
94.79
79
84
89
94
99
DOLLAR INDEX SPOT
Sources: Bloomberg, Capital Investments , https://research.stlouisfed.org, Capital Investments The monetary base is also referred to as high powered money. In the money multiplier model, an increase in the monetary base can lead to a bigger proportional increase in overall money supply (broad money). Source: http://www.economicshelp.org
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 3
June 11th, 2015
how it’s going to progress not to mention its potential investment implications. As mentioned
earlier we are starting to notice signs that the probability of an interest rate hike is receding and
the appreciation of the Euro and the spike in German sovereign yields are leading indicators in
this context.
Gyrations in the European bond markets sent waves of turbulence across other financial markets
mainly those of US bonds and equities. The bond market was plagued by rising yields with great
magnitude and thus coupled with a sharp fall in prices (the rise in German 10 year yield from
almost 0.15% to 1% is equivalent to a fall of 10% in bond price or around 1000 points for the Dow
Jones Index). Besides the shocking magnitude of volatility, the rise in yield is taking place amid
mild economic data (in US and Europe), weak macro environment in China, and dovish central
banks in Europe and Japan. We do not think that the rise in German yields is due to the Greek
debt negotiation noise as it is not coupled with a fall in Euro out of fear, however we think it is an
indication of more normalized currency markets that will lead ultimately to a pick- up in growth
in the US and Europe and thus an increase in inflation which would then warrant an interest rate
hike at a later stage by the US Fed.
The above graphs illustrate the behavior of the Dow Jones index and the VIX index (volatility
index or fear gauge), while the Dow Jones was on a downward trend and following a volatile
pattern, it is obvious that the realized volatility in the stock market was not mirrored through the
VIX index which stayed relatively calm.
2.47
1.501.701.902.102.302.502.702.903.10
US Treasury 10 Year Yield, %
1.00
0.000.200.400.600.801.001.201.401.60
Germany 10-yr Gov. Bond Yield, %
17,764
15,700
16,200
16,700
17,200
17,700
18,200
18,700 Dow Jones Industrial Avg. Index
14
9.00
14.00
19.00
24.00
29.00
VIX (Volatility S&P 500), %
Source: Bloomberg, Capital Investments
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 4
June 11th, 2015
As for gold it was relatively moving sideways with a downward bias due to rise in yields and the
recent appreciation of the USD. On a separate note we are following the El Niño phenomenon
which describes the fluctuations in temperature between the ocean and atmosphere in the
region stretching from Australasia to South America. This phenomenon will lead to droughts in
many regions and as a result would deliver potential shocks to commodity prices and food
inflation pressures in the future, these could include: Sugar from Brazil, Indian rice, dairy and
beef in Australia due to less pasture space, in addition to reduction in key metal production that
relies on hydroelectric power.
Macro …Potential Recovery in H2 2015
We mentioned earlier that the US and China were the main contributors to weakness in the
global economy over the past few months. However the softness in the US data could be
attributed to temporary factors such as freezing weather during winter, and ports strike in the
west coast. Despite being mixed, recent data releases pointed that the economy is turning the
corner. Chief among these figures are encouraging non-farm payroll (jobs) data coupled with
rising confidence and improvement in the housing sector as indicated by the graphs below. On
the other hand, weak business investment and high inventory to sales ratio continue to be the
major concerns.
1,190
1100
1150
1200
1250
1300
1350
1400
Gold ($ per Troy Ounce)
229
200
220
240
260
280
300
320
CRB Commodity Index
280
0
100
200
300
400
500
US Employees on Nonfarm Payrolls, MoM Net Change (Thousands)
-2.7
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
US Durable Goods New Orders YoY, %
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 5
June 11th, 2015
On the other side of the Atlantic, the accommodative monetary policy employed by the ECB is
being fruitful as epitomized by the fall in unemployment rate, improvement in inflation figures,
enhancement in sentiment, and most importantly the increase in lending activities.
As for China, reported data continues to be weak at almost all levels, fixed assets investments,
retail sales, and industrial production are growing below expectations. However, Chinese officials
have been taking key measures to manage a growth target of 7% and avoid a hard landing. These
include, lowering interest rates for the third time since November 2014, while requesting banks
to lend to provincial governments, in addition to slashing import duties on a wide range of
consumer product. Through these measures, the Chinese authorities are trying to deal with key
challenges that include, industrial overcapacity, troubled property market, shadow banking, and
local government debt issues in a way to achieve their growth objective and to ensure the
smooth transition of their economy to a new normal based on domestic consumption. We
expect that China will take further measures to step up its economy which would put some
grease to the global economic engine in H2 2015.
95.4
85.00
90.00
95.00
100.00
105.00
Conference Board Consumer Confidence
1135
800850900950
10001050110011501200
Housing Starts (Units/ Thousand)
0.3
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
Eurozone Inflation Rate, %
11.10
10.8010.9011.0011.1011.2011.3011.4011.5011.6011.70
Eurostat Eurozone Unemployment Rate, %
Source: Bloomberg, Capital Investments
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 6
June 11th, 2015
The table below summarizes major PMI’s trends up to May 2015
5.9
5
6
7
8
9
10
11
China Industrial Production YOY Change, %
10
9.009.50
10.0010.5011.0011.5012.0012.5013.00
China Retail Sales YOY Change, %
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Global Manufacturing 52.4 52.5 52.2 52.2 51.8 51.5 51.7 51.9 51.8 51.0 51.2
Global Services 56.0 55.5 55.2 53.6 53.4 52.5 53.0 54.1 55.2 54.8 54.1
Global Compos ite 55.6 55.2 54.8 53.5 53.2 52.4 53.0 53.9 54.9 54.2 53.6
US Manufacturing 56.4 58.1 56.1 57.9 57.6 55.1 53.5 52.9 51.5 51.5 52.8
US Services 57.9 58.6 58.1 56.9 58.8 56.5 56.7 56.9 56.5 57.8 55.7
US Manuf. New Orders 62.0 63.9 59.4 63.0 62.1 57.8 52.9 52.5 51.8 53.5 55.8
EU Manufacturing 51.8 50.7 50.3 50.6 50.1 50.6 51.0 51.0 52.2 52.0 52.2
EU Services 54.2 53.1 52.4 52.3 51.1 51.6 52.7 53.7 54.2 54.1 53.8
EU Compos ite 53.8 52.5 52.0 52.1 51.1 51.4 52.6 53.3 54.0 53.9 53.6
China Manufacturing 51.7 51.1 51.1 50.8 50.3 50.1 49.8 49.9 50.1 50.1 50.2
China Services 54.2 54.4 54.0 53.8 53.9 54.1 53.7 53.9 53.7 53.4 53.2
China Manuf. New Orders 53.6 52.5 52.2 51.6 50.9 50.4 50.2 50.4 50.2 50.2 50.6
* PMI reading above 50 indicates economy expansion
* Red points displayed within the lines above indicate highest point in the range
* Figures in green indicate acceleration from previous month, while red indicate deceleration
Source: Bloomberg, Capital Investments
Purchasing Managers Indices (PMI) (2014-2015):
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 7
June 11th, 2015
Oil: Rally is Welcome but may be reaching its Limit over the Short Run
Almost one year has elapsed since oil prices started to slide and despite the impressive rally since
March 2015 from the mid- forties level to the current price of USD 65 per barrel, oil prices are
still 40% down from their peak in June 2014.
While we welcome the recent rally that was backed by inventory drawdown due to the US
summer fuel demand and the Chinese refilling of their strategic reserves, we think that
sustainable price gain over the short term are unsustainable due to weak underlying
fundamentals.
65.57
40
50
60
70
80
90
100
110
120 Brent Crude Oil Prices (USD/Bbl)
Toward the mid of September 2014 Saudi Arabia declared that it pumped an additional 100k barrel per day amid a glut of supply and that it lowered its official selling price to Asia in a way to protect its market shares which led to further weakness in oil prices that were trading relatively in a range channel during the year
The USD started to appreciate since early July which drove oil prices lower
Oil prices moving in a range channel
On October 13th according to Reuters, Saudi Arabia tells oil market participants to get used to lower oil prices for a longer time while speculation is rising regarding a potential oil supply cut on the November 27th meeting in Vienna
Glut persistent, IEA warns on lack of investment in new production due to low oil prices, Research Houses lower their forecast on oil price to USD 40
October 14th the IEA which is a club representing oil consumers issued a report by which it lowered its forecast for oil consumption in 2015 due to weak economic demand by 300k barrel a day to be 1.1mln barrel a day which led to a 4 USD free fall in oil prices
“OPEC meeting”; On November 27, OPEC governing body represented by the oil ministers of the 12 member countries decided to keep the oil production unchanged at 30mln barrel per day. Oil markets received the news badly and Brent crude oil prices plunged by 11% before stabilizing near USD 70 per barrel
After touching a nadir of $46.6 (Brent) on January 13, 2015, oil prices jumped by 20% on the following supply factors:
- IEA spots signs that oils decline “tide will turn”,
- Rig counts in the US fell significantly,
- Aramco in Saudi, along with BP and others cut spending on Capex significantly in 2015,
- Supply disruptions in Libya - On the demand front OPEC
raised demand forecast for its oil by 430k bpd
Source: Bloomberg, Capital Investments
Oil prices drop from USD 60/barrel as IEA see glut persistent given inventory build -up continues with limited storage capacities in addition to strong USD Oil prices inched higher in April on the back of lower than expected rise in inventory in the US coupled with softer USD, Saudi selling May contract at a premium, & a consensus that Iranian oil will affect the market in 2016
Oil prices rebounded sharply above USD 60 per barrel as the drop in rig counts in the US continued, coupled with a weak USD and supply disruptions from few OPEC members (Libya, Nigeria and Iraq) in addition to easing supply glut in the US
Monthly Newsletter | Asset Management Dept. 8
June 11th, 2015
For instance, current demand is deemed seasonal as refineries will cut their utilization rates once
the US summer driving season ends. On the other hand, the OPEC meeting in June was non
eventful and thus investors focus turned again on production levels which are still high among
OPEC nations and a few shale producers whose cost of production is competitive when oil prices
are above USD 60. The sustained supply is keeping the surplus of inventory in the range of 1.3 to
1.5mln barrel per day.
Some upside risk to our short term price scenarios include, weaker USD, materialization of
growth in demand as forecasted by EIA and OPEC faster than expected due to better global
economic performance, supply disruptions from Iraq, Libya, or Nigeria and environmentalist
pressure to stop oil transportation by rail after the registration of few accidents of trains
derailment in the US and Canada.
A Review of Saudi Arabia in Light of Opening the Equity Market to Foreigners
During the second quarter of 2015, and post the escalation in Yemen, market participants
capitalized on opening the door for foreign investors as well as on the recent enhancement in oil
prices to recoup some gains. Afterward, the Saudi market proved to be quite resilient, though
neither the current valuation nor the expected/ future valuations could justify these levels; It is
imperative to emphasize that the Saudi market witnessed some negative events during this
quarter such as Yemen’s tensions and the IMF projections of 20% budget deficit.
8,619
9,542
8,000
8,500
9,000
9,500
10,000Saudi Arabia Tadawul Index
0
5
10
15
20
25
0
10
20
30
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Tadawul Total Market NetProfit in Billion SAR (LHS)Market PE (RHS)
0%2%4%6%8%10%12%14%16%18%20%
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Tadawul Total Market Salesin Billion SAR (LHS)
EBIT Margin (RHS)
Source: Bloomberg, Capital Investments
The market was trading sideways on a low volume in anticipation of a flow of liquidity upon opening to foreigners which is not guaranteed given valuation levels
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 9
June 11th, 2015
Although it is expected that the market as a whole would deliver better results in the second
quarter in terms of earning vis a vis the first quarter and led by the petrochemical sector due to
higher oil price, on a year on year basis performance will continue to be muted and thus prove
that valuation in certain market pockets are overstretched. In this context, our approach to Saudi
Arabia would be selective on a case by case basis following a clustering structure and clear
investment themes identification.
9%
11%
13%
15%
17%
19%
21%
4550556065707580
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Saudi Tadawul Petrochemical Sector
Sales (LHS) EBIT Margin (RHS)
0
5
10
15
20
25
30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Saudi Tadawul Banking Sector Sales
0%
5%
10%
15%
20%
25%
30%
15
17
19
21
23
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Saudi TadawulTelecom Sector
Sales (LHS) EBIT Margin (RHS)
25%
30%
35%
40%
45%
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Saudi Tadawul Building Materials Sector
Sales (LHS) EBIT Margin (RHS)
On a quarterly basis, the petrochemical sector is expected to register better results than 1Q-2015 but lower than 2Q-2014, since the average oil price for 2Q-2015 is around 15% higher than 1Q-2015 but around 42% lower than 2Q-2014
The second quarter of the year is generally the strongest for banks. However this should be taken with a grain of salt and a differentiation process should be applied on targeted investment universe as some banks are trading at unjustified multiples. Plays would include banks with potential lower provisioning, or higher growth prospects within a cost efficient context along with limited dilution effect in case of capital increase in addition to few beta picks
With the Mobily saga still in play, will it still be the main sector performance driver?
The outlook for the Cement sector in 2Q-2015 is looking solid as the sector sales rose in May and April by 7% and 9% respectively, moreover the sector might benefit from the potential housing theme despite generous dividends investors should factor in the summer seasonality
Source: Bloomberg, Capital Investments
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 10
June 11th, 2015
3%
5%
7%
9%
11%
13%
15%
2
4
6
8
10
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
SAR
Bln
Saudi Tadawul Retail Sector
Sales (LHS) EBIT Margin (RHS)
As for the retail sector, the recent “point of sales” data showed that the impact of the two month salary bonus was short lived, thus it is expected that 2Q-2015 results will be modest, bearing in mind that the food & beverage segment as well as the grocery segment should deliver decent results due to shifting seasonality in Ramadan month. However, some stand -alone names offer selective opportunities coupled with dividend and strong fundamentals Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 11
June 11th, 2015
Major Indices Status as of end Performance
Dec. 2014 May. 2015 May. 2015 YTD (31 May. 2015)
MENA
Abu Dhabi 4,528.93 4,527.63 -2.57% -0.03%
Bahrain 1,426.57 1,363.67 -1.94% -4.41%
Dubai 3,774.00 3,923.24 -7.23% 3.95%
Egypt 8,926.58 8,782.55 1.27% -1.61%
Jordan 2,165.46 2,183.57 3.22% 0.84%
Kuwait 6,535.72 6,292.46 -1.33% -3.72%
Lebanon 1,170.26 1,193.65 -0.03% 2.00%
Morocco 9,620.11 9,711.36 -2.27% 0.95%
Oman 6,343.22 6,387.85 1.03% 0.70%
Palestine 502.79 478.85 -1.07% -4.76%
Qatar 12,285.78 12,048.26 -0.96% -1.93%
Saudi Arabia 8,333.30 9,688.69 -1.48% 16.26%
Tunisia 5,089.99 5,646.40 1.83% 10.93%
S&P Pan Arab Composite 795.11 845.02 -1.82% 6.28%
Dow Jones MENA 599.89 626.91 -2.01% 4.50%
Americas
Dow Jones Industrial 17,823.07 18,010.68 0.95% 1.05%
S&P 500 2,058.90 2,107.39 1.05% 2.36%
NASDAQ Composite 4,736.05 5,070.03 2.60% 7.05%
S&P/Toronto Composite 14,632.44 15,014.09 -1.38% 2.61%
Europe
EURO Stoxx 50 3,146.43 3,570.78 -1.24% 13.49%
S&P Europe 350 Index 1,401.41 1,630.23 0.78% 16.33%
FTSE 100 Index/ London 6,566.09 6,984.43 0.34% 6.37%
FTSE MIB Index/ Italy 19,011.96 23,495.68 1.95% 23.58%
DAX Index/ Germany 9,805.55 11,413.82 -0.35% 16.40%
ASIA/Pacific
NIKKEI 225/ Japan 17,450.77 20,563.15 5.34% 17.84%
S&P/ASX 200/ Australia 5,411.02 5,777.16 -0.22% 6.77%
BRIC
Brazil/ Bovespa 50,007.41 52,760.48 -6.17% 5.51%
Russia/ RTS 790.71 968.81 -5.88% 22.52%
India/ Bombay Sensitive 27,499.42 27,828.44 3.03% 1.20%
China/ Shanghai Composite 3,234.68 4,611.74 3.83% 42.57%
Hong Kong/ Hang Seng 23,605.04 27,424.19 -2.52% 16.18%
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 12
June 11th, 2015
Description Closing Prices as of end Performance
Dec. 2014 May. 2015 May. 2015 YTD (31 May. 2015)
Commodities (in USD)
Brent Spot (Barrel) 55.76 63.89 -1.50% 14.58%
WTI Cushing Spot (Barrel) 53.27 60.30 1.12% 13.20%
Natural Gas NYMEX (MMBtu) 3.01 2.64 -5.71% -12.28%
Gold Spot (OZ) 1,185 1,191 0.52% 0.48%
Silver Spot (OZ) 15.70 16.75 3.72% 6.67%
Copper LME Spot (MT) 6,368 6,005 -0.98% -5.70%
Iron Ore Spot Price 62% USD (MT) 69.30 61.10 11.50% -11.83%
Corn CBOT Active Month (Bushel) 4.13 3.52 -8.52% -14.79%
Wheat CBOT Active Month (Bushel) 5.98 4.77 -7.20% -20.17%
Soybean CBOT Active Month (Bushel) 10.37 9.34 -4.47% -9.93%
Rough Rice Futures (USD/cwt) 12.25 9.51 -14.40% -22.34%
Currencies Spot Exchange Rates Against US Dollar
Euro 1.2098 1.0986 -2.12% -9.19%
GBP 1.5577 1.5291 -0.39% -1.84%
CAD 0.8605 0.8031 -3.04% -6.67%
Yen 0.0084 0.0081 -3.84% -3.59%
CNY 0.1611 0.1613 0.04% 0.12%
Source: Bloomberg, Capital Investments
610
0200400600800
1000120014001600
Baltic Dry Index
The Baltic Dry Index tracks worldwide international shipping prices of various dry bulk cargoes. It provides an assessment of the price of moving the major raw materials by sea. Recently showing demand in emerging markets.
Source: Bloomberg, Capital Investments
Monthly Newsletter | Asset Management Dept. 13
June 11th, 2015
Disclaimer The information and opinions contained in this document have been compiled in good faith from sources believed to be reliable. Capital Investments makes no warranty as to the accuracy and completeness of the information contained herein. All opinions and estimates included in this report constitute and reflect our independent judgment as of the date published on the report and are subject to change without notice. Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any part of this report. Capital Investments and its related companies may have performed or seek to perform any financial or advisory services for the companies mentioned in this report. Capital Investments, its funds, or its employees may from time to time take positions or effect transactions in the securities issued by the companies mentioned in this report .This document may not be reproduced in any form without the expressed written permission of Capital Investments. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice. Prior to investing, investors should seek independent financial, tax and legal advice.
Capital Investments
Asset Management Dept.
Tel: +962 6 5200330 Ext. 494 & 832
AssetManagement@Capitalinv.com