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IFG weekly briefing, June 30 2013
 

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    IFG weekly briefing, June 30 2013 IFG weekly briefing, June 30 2013 Document Transcript

    • WEEKLY BRIEFING Issue 38 | Sunday, June 30, 2013 FEATURE Dubai sukuk and bond yields spikes: more than meets the eye By Blake Goud / IFG PORTLAND | Sat, Jun 29 ` Developed market bond funds do invest in sukuk, but they are primarily invested much more in emerging market conventional bonds, so the flows into emerging market fixed income is more likely to flow to conventional bonds, not sukuk. More of the investors in sukuk, even international sukuk, come from regional sharia-sensitive investors that tend to hold them until maturity. - Continued on Page 4 & 5 INSIDE THIS ISSUE Focus session with IIFM CEO on unrestricted master wakala agreement.................................................................................... 3 Dubai sukuk and bond yields spikes: more than meets the eye .. 4 Oman's first sukuk gets regulatory approval -lead........................ 7 MIDEAST DEBT-Sukuk-backed sukuk test industry's appetite for complexity.................................................................................... 8 Anti-Mursi protests to weigh on Egypt bourse .......................... 10 FOREX-Dollar rises on talk of cutback in Fed easing by September .............................................................................. 11 In turbulent times, frontier stocks hold on to long-haul investors 12 ICAP executive seen linked to LIBOR scandal - Wall Street Journal....................................................................................... 13 Source: Thomson Reuters EIKON - Indices Guide <Indices> This week yields rose dramatically for both Dubai‘s bonds and sukuk by the largest amount since the Dubai debt crisis even as the UAE was upgraded to Emerging Market status by index compiler MSCI. The move in sukuk was less dramatic than in bonds, with yields rising 22.5 basis points (bps) compared with a 31.1 bps increase for bonds, with some commentators considering the lower rise in sukuk yields as support to the idea that sukuk markets are more resilient. However, there are other factors that belie this explanation and under different conditions, sukuk yields could move more rapidly than conventional bonds. Emerging markets have seen significant inflows in recent years as yields remain low in developed markets as their central banks continue to hold rates low to try and boost their slow recovery from the Great Recession. 100 103 105 108 110 100 103 105 108 110 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Global Sukuk and Bond Indices DJ Sukuk Index Thomson Reuters Global Sukuk Index 0.4 0.6 0.8 1 1.2 1.4 0.4 0.6 0.8 1.0 1.2 1.4 May-12 Jul-12 Sep-12Nov-12Jan-13Mar-13May-13 IIBR Vs. LIBOR, (USD 6 month) 6 Month USD IIBR 6 Month USD LIBOR
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 2 NEWS WRAP UP  HSBC considers quitting Iraq by selling Dar Es Salaam bank stake - RTRS  New emir: Qatar will pursue its "independent behaviour" - RTRS  Zain Saudi extends $2.4 bln loan until July 31 –statement - RTRS  Dubai developer Nakheel in talks to refinance $2.2 bln loan - RTRS  Mauritius‘ Weston Capital Expresses Interest To Buy Bank Mutiara - Ventures Africa  Basel presses ahead with plans to limit bank borrowing - Financial Times (registration)  DP World increases Dubai port capacity - Zawya  Workers in emerging economies most concerned how companies behave - RTRS  Qatar's emir hands power to son in rare Gulf abdication - RTRS  Egypt debt insurance costs hit record highs-Markit - RTRS*  Bright spots lurk among Asia's submerging markets - RTRS  Islamic finance lobby plans regional network - RTRS  In turbulent times, frontier stocks hold on to long-haul investors - RTRS  Indonesia IPO train derails as investors hit the exits - RTRS  Singapore, Malaysia face economic hit from prolonged smog - RTRS  RPT-INVESTMENT FOCUS-Golden ratings era ending for emerging markets - RTRS  Qatar readies new leadership, little policy change expected - RTRS  Saudi Alhokair units sign $1.2 bln financing for real estate deals - RTRS  Arbitration in Malaysia: Taking it to the next level - The Star  ACWA expects to keep Saudi power plant project after fuel change - RTRS  UPDATE 1-Dubai's Arabtec extends $650 mln share offer period ARTC.DU - RTRS  MIDEAST DEBT-Bahrain between rock and hard place in bond decision - RTRS  UPDATE 1-Dubai Group sells credit card firm to First Gulf Bank - RTRS  Central banks told to head for exit - Financial Times (registration) Watch List  TEXT-Qatari emir's abdication speech - RTRS  StanChart banker Nelson to take helm at Dubai's ENBD - RTRS  Moody‘s affirms A3 of EXIM Bank of Malaysia, raises baseline credit assessment to ba3 - Moody‘s  RAM reaffirms AAA rating of SI Capital's Islamic debt issue - RAM Ratings  Malaysia RAM reaffirms AA3 rating of Prai Power's bonds - RAM Ratings  Moody's: Malaysia's sovereign rating stable but debt levels rising - The Star  Indonesia c.bank sees economy growing 6.4-6.8 pct in 2014 - RTRS  Saudi changes working week to Sun-Thurs - official statement - RTRS  Citigroup to open representative office in Iraq - RTRS  Alizz Islamic Bank appoints Mohammed Al Fahim Deputy Chairman - Press Release - Zawya  BisB appoints Abdul Razak Al-Qassim as Board Chairman - AME Info *This service is only available to EIKON users, click here to register CALENDAR OF EVENTS WEDNESDAY, JULY 3 - 4 MALAYSIA - IFSB - INCEIF Executive Forum on Corporate Governance of Islamic Banks TUESDAY, AUGUST 27 PAKISTAN - IFN Roadshow 2013 Pakistan THURSDAY, AUGUST 29 SRI LANKA - IFN Roadshow 2013 Sri Lanka FRIDAY, AUGUST 30 - 31 CANADA - The First Annual Conference of Islamic Economics & Islamic Finance TUESDAY, SEPTEMBER 3 TURKEY - IFN Roadshow 2013 Turkey The logo of HSBC bank is seen at its office in the Canary Wharf business district of London April 1, 2013. HSBC Holdings said last Tuesday it is considering selling its majority stake in Dar Es Salaam Investment Bank, which has made it the main international lender in Iraq. REUTERS/Chris Helgren
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 3 Contact details IFG Briefing Analyst Team Ameena Al Haddad Ammar Radhi Karim Arafa Redha Al Ansari Shaima Hasan Yusuf Radhi Emmy Abdul Alim (Editor) Community Specialist Team Blake Goud (Community Leader) Duaa Al Masqati Noor Khamdan Telephone +973 1750 2020 Subscription and feedback To subscribe to the Community & Briefings Click Here Already a Community member? Join the Discussion Download RM Web-based RM For any Feedback or Suggestions please contact the IFG Analyst Team IFG community held a focus session this week to discuss the new IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement with Ijlal Ahmed Alvi, CEO of International Islamic Financial Market (IIFM). The standardized Master Agreement which is prepared ‗On-Balance Sheet‘ basis provides an alternative to the oft-criticized but widely used commodity murabaha contract for Islamic inter-bank money markets. The Master Agreement is supplemented with an Operational Guidance Memorandum which explains how the agreement can be used, giving comprehensive recommendations. Clauses in the agreement are obligations while recommendations in the Operational Guidance Memorandum are not contractual obligations. There is flexibility enough for institutions to adapt this agreement as needed. Any institution intending to use or adopt the agreement as it is would first need to send a request letter to IIFM, which would then issue a letter of approval. The institution is then free to use the IIFM sharia pronouncement. But if an institution decides to adopt the agreement with amendements, the institution would need to highlight any changes in the request letter to IIFM. Approval will be given if changes are not contrary to sharia principles and the institution will then be able to use the IIFM sharia pronouncement. As wakala transactions stand now in common practice, there are questions about the interchangeability with commodity murabaha in terms of differential treatment of security of principal and profit under a wakala. In contrast to a murabaha, which provides a guarantee to the degree that the purchasing institution is obligated to pay cost plus profit on a deferred basis, in a wakala arrangement neither the Muwakkil‘s (bank providing financing) principal nor profit can be guaranteed by the Wakil (bank receiving financing). In response, many institutions have shied away from wakala transactions opting instead for commodity murabaha. Alternatively, institutions are using restricted wakala where the funds placed under the wakala agreement are invested in murabaha transactions, something Alvi said the master agreement would replace. The IIFM wakala agreement, which can allow for commingling with the bank‘s other funds (e.g. customer deposits) or segregated investment, provides ways in which the risk to principal is limited and where the bank providing financing can be more confident in receiving the indicative profit in a way that is sharia-compliant. For example, if the wakil knows that the profits will be below the indicative rate, notice must be provided to the Muwakkil, in this case it is up to the Muwakkil‘s discretion to continue in the transaction or to abort it. If he decided to continue then in this case only the actual profit achieved should be paid by the Wakil, even if it is below the indicative profit. This opens up a way for the Wakil to pay the indicative profit even if actual profits fall short in a sharia-compliant fashion since the indicative profit is not legally guaranteed. In practice, most solvent institutions will make the indicative profit payments in order to continue their ability to access the inter-bank market and avoid questions about the quality of their management of the funds placed with them under wakala. Hence, there is a sharia ruling suggesting that where there is such a dispute, the Wakil should bear the burden of proof to demonstrate that the funds were invested properly. While the IIFM master agreement aims to provide more clarity there remain some unresolved questions that each institution and regulator will have to consider about the accounting treatment of on-balance-sheet wakala transactions, which are not specifically addressed in existing Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) guidance. Alvi deferred in response to a question and said accounting and regulatory treatment of these wakala transactions would be left up to AAOIFI and regulators to determine. In order for the unrestricted wakala to be useful to financial institutions, additional safeguards such as revised profit clause etc are included that make the Wakil responsible in more situations other than negligence for a failure to perform under the wakala agreement. It also provides greater transparency requirements to allow banks providing financing to ensure that they are aware of and comfortable with the potential risk to both principal and profit under the IIFM‘s wakala master agreement. COMMUNITY Focus session with IIFM CEO on unrestricted master wakala agreement By Blake Goud / IFG PORTLAND | Fri, Jun 28 Facebook Twitter LinkedIn
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 4 FEATURE Dubai sukuk and bond yields spikes: more than meets the eye PORTLAND | Sat, Jun 29 By Blake Goud / IFG - Continued from Page 1 – The impact of UAE‘s upgrade to Emerging Market status, which will not take effect until next May, comes from investors not restricted by the classification, anticipating future flows into these asset classes based on speculation of events that will change the allocation by institutional investors tied to benchmarks. With the rumors swirling that MSCI was going to upgrade Qatar and the United Arab Emirates to Emerging Market status (which they eventually did), many investors likely bought the debt securities they anticipated would benefit most from the buying that emerging market funds would have to do to move in line with the benchmark change. Note: Data are an average for two bonds (Qatar Telecom 21 and Qatar National Bank 17s) and two sukuk (ADIB Tier 1, DIB Tier 1). As with many events, this led to a ‗buy the rumor and sell the news‘, which was coupled by perceived changes in the Federal Reserve‘s plan to ‗taper‘ its US Government and Agency bond purchases, leading to a dramatic fall in price (which moves inversely with yields). As Mashreq Capital DIFC Ltd‘s Abdul Kadir Hussain is quoted: ―A lot of the sukuk is sitting in hold-to-maturity accounts‖. Chart 1 shows the different allocation of bonds and sukuk by investor type with banks and insurance companies (typically buy and hold investors) taking a larger share of sukuk than bonds while the reverse is true for funds, which are more active in secondary markets. In addition to the types of investors buying bonds compared with sukuk, there is a greater share of regional investors from the Middle East buying sukuk compared with bonds. This will also tend to lower the trading activity in sukuk since many regional investors are hold- to-maturity (in part because of a shortage of supply relative to demand of sukuk, making replacement of a sold sukuk more difficult than bonds). Note: Data are an average for two bonds (Qatar Telecom 21 and Qatar National Bank 17s) and two sukuk (ADIB Tier 1, DIB Tier 1). While the fund flows from global institutional investors as well as shifts in risk appetite driven by central bank policies are the primary driving force for emerging market bonds like Dubai‘s, lower liquidity in sukuk markets discourages the type of arbitrage trading that would be expected to decrease the shifts in the relative yields of conventional bonds and sukuk because sukuk are structured to mirror as much as possible the risk and return profile of conventional bonds. 0% 10% 20% 30% 40% 50% 60% 70% 80% Banks Funds Pension & Insurance Other Chart 1: Investors by Type - 2 Qatar bonds and 2 UAE sukuk Sukuk Bond 0% 10% 20% 30% 40% 50% 60% Middle East Asia Europe & US Chart 2: Investors by Region Sukuk Bond
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 5 Source: Thomson Reuters EIKON Data and IFG Analysis. Spreads are calculated as yield on sukuk (Dubai minus yield on bonds.Sukuk are Dubai 4.051% 16s and DubaI 6.45% 22s. Bonds are Dubai 4% 14s and Dubai 7.75% 20s. However, as Chart 3 shows, yield differences persist for similar bonds and sukuk (using the most similar Dubai sovereign sukuk and bonds with original tenors of 5- and 10-year at issue). Another related possibility is that investors in sukuk are demanding a greater liquidity premium relative to bonds. Both explanations provide further reason for greater development of secondary market liquidity in sukuk markets, which is likely to progress slowly as long as there remains excess demand for sukuk relative to supply. Chart 3 shows the spread of sukuk over conventional bonds for Dubai (5- and 10-year spreads). The yield spread for sukuk relative to bonds rose from the summer of 2012 until the end of 2012 and remained elevated where common expectation given liquid markets would be for funds to shift from bonds to sukuk to capture higher yield for similar securities. One possible explanation for why yields in bonds dropped faster than sukuk is that they attract greater interest from Western asset managers who are unfamiliar with sukuk, and hence when adding exposure to Dubai gravitate more towards bonds. As expectations for an upgrade of these markets to emerging market status rose, investors wanting to move ahead of the funds also chose to invest in bonds rather than sukuk, keeping the yield spread elevated even amidst strong demand for sukuk—particularly sovereign sukuk. -60 -40 -20 0 20 40 60 80 100 120 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Spreads (Sukuk - Bond) Spreads (Sukuk - Bond)
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 6 SUKUK REVIEW Sukuk Market Overview Malaysia has sold 4.0 billion ringgit ($1.3 billion) in Islamic government bonds maturing in 2020 at an average yield of 3.745 percent, the central bank said on Thursday. The bid-to-cover ratio was 1.90 times. RTRS* Thu, 27 Jun RAM Ratings has reaffirmed the respective AAA, AA1, AA2, and AA3 ratings of Axis REIT Sukuk Berhad’s (―ARSB‖ or ―the Issuer‖) RM110 million Class A to Class D Sukuk under its First Sukuk Issue (collectively referred to as, ―the First Sukuk‖); all the ratings have a stable outlook. ARSB is a special-purpose vehicle set up by Axis Real Estate Investment Trust (―Axis REIT‖) as a funding conduit for its 15 year Islamic Medium-Term Notes Programme of up to RM300 million (―Sukuk Programme‖). Supported by a portfolio of 3 industrial and industrial-office mixed properties and 1 retail property (―the Properties‖), the First Sukuk represents the initial issuance under the Sukuk Programme using the Islamic principle of Murabahah. RAM Wed, 26 Jun MARC has assigned a final rating of AA+IS to Kapar Energy Ventures Sdn Bhd’s (KEV) RM2.0 billion Sukuk Ijarah (Sukuk) with a stable outlook. Upon review of the final documentation of the forthcoming Sukuk issuance, MARC is satisfied that the terms and conditions of the Sukuk have not changed in any material way from the draft documents on which the earlier preliminary rating of AA+IS was based. Full details on the assigned rating have been provided in KEV‘s preliminary rating announcement on June 19, 2013. MARC Wed, 26 Jun Cocoa-producing Osun State plans to issue Nigeria's first sukuk bond, starting with 10 billion naira ($62 million), before the end of July, a banking source close to the deal told Reuters on Tuesday. The planned 7- year paper would be the first sukuk bond to be issued in Africa's second-biggest economy and is part of a 60 billion naira debt raising programme by Osun State, which started last year, the banking source told Reuters. The funds will be used to finance the construction of education projects, the source said. Nigeria is home to the largest Muslim population in sub- Saharan Africa, with around half of its 160 million people members of the Islamic faith. It is also home to one of Africa's fastest growing consumer and corporate banking sectors. The Osun bond will be issued through a book-building process which will earn a return for sukuk holders via a semi- annually paid rent structure called the Ijara, the source said, targeting local pension funds and international investors on the bond. Local credit rating agency Agusto & Co has assigned an A rating to the note which will be listed on the Nigerian Stock Exchange, said the banking source, adding that Osun was waiting for Securities and Exchange Commission (SEC) approval to start marketing the bond. In March, Nigeria‘s SEC approved new rules allowing firms to issue Islamic bonds, a move aimed at attracting Middle Eastern investors. RTRS Tue, 25 Jun Morocco has won backing from the Saudi- based Islamic Development Bank for its first sukuk as the cash-strapped North African country looks to attract Middle Eastern investors. ―The Islamic Development Bank has proposed us to buy our sukuk rather than offering us another loan,‖ General Affairs minister Mohamed Najib Boulif said. ―But the amount has not been set yet". Morocco's moderate Islamist Justice and Development Party, which came to power in 2011 after protests prompted by the Arab Spring, has paved the way for Islamic finance by reforming its securitisation law to allow sukuk. Earlier this year, the Morocco agreed a $2.4 billion package with the IDB, under which it will receive $600 million each year from 2013 to 2016. It also raised $750 million last month in a two-part reopening of its $1.5 billion bond. The North African country is considering other financial reforms, such as that of the pension and tax systems, as it grapples with the fall out from the euro zone crisis and the Arab Spring protests. It will also deregulate prices for some basic goods in the next two weeks, its first step towards reducing subsidies, the minister said in an interview last week. He stressed, however, that the timing has not been decided. RTRS* Mon, 24 Jun Source: Thomson Reuters EIKON CDS <REUTERSCDS> *This service is only available to EIKON users, click here to register Credit Default Swaps 100 200 300 400 500 600 700 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Bahrain Egypt Dubai Indonesia 60 80 100 120 140 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Saudi Qatar Malaysia Abu Dhabi
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 7 Oman's first corporate sukuk has received regulatory approval and the five-year, 50 million rial ($130 million) private placement aims to close next month, its lead arranger said on Wednesday. The sukuk will be issued by Tilal Development Co and the proceeds will be used to repay existing debt and expand the Muscat Grand Mall. If successful, the issue could pave the way for other companies in the sultanate to sell Islamic bonds. "We have already done our roadshows and also got some commitments from pension funds locally," Mohsin Shaik Sehu Mohamed, head of Islamic finance at Al Madina Investment, told Reuters. "Now the target is to close this deal. We are trying our best to close it in July." The sukuk, rated BBB+ by Capital Intelligence, will pay a 5 percent profit rate and use an ijara structure, a common sharia- compliant leasing arrangement. Al Madina says it has other Omani sukuk in the pipeline, with one deal targeted for later this year. "We have two more in the pipeline - one government-related entity and one family-owned company," Mohamed said. PIPELINE ISSUE Oman's first sukuk gets regulatory approval -lead By Bernardo Vizcaino / REUTERS Wed, Jun 26 INTERNATIONAL SUKUK WEEK TOP GAINERS* INTERNATIONAL SUKUK WEEK TOP LOSERS* NAME CURRENCY BID ASK MATURITY DATE YIELD TO MATURITY LAST WEEK YIELD YTM WOW% WAKALA GLOBAL USD 103.99 104.99 7/6/2016 1.62 1.892 -14 CBB INTL SUKUK USD 103.73 104.23 6/17/2014 2.28 2.612 -13 INDONESIA SY USD 105.00 105.75 4/23/2014 3.09 2.774 -10 FIRST GULF BANK USD 104.11 104.61 8/2/2016 2.40 2.557 -6 FGB SUKUK USD 104.88 105.38 1/18/2017 2.58 2.743 -5 NAME CURRENCY BID ASK MATURITY DATE YIELD TO MATURITY LAST WEEK YIELD YTM WOW% ANKA A SUKUK AED 103.20 105.80 8/25/2016 9.40 1.418 96 RAK CAPITAL USD 106.00 106.75 7/22/2014 2.20 1.393 58 SIME DARBY GLOB USD 91.14 91.51 1/29/2023 4.42 3.365 32 MEDJOOL USD 91.56 92.56 3/19/2023 6.05 4.664 30 EMAAR SUK USD 109.54 110.29 8/3/2016 5.11 4.018 27 *The top gainers and losers price ranking is driven by the yield to maturity movement on week to week basis Source: Thomson Reuters EIKON – Sukuk Speed Guide - International Sukuk <0#INTLSUKUK> This service is only available to EIKON users, click here to register APPEAL Tilal Development is 40 percent-owned by sovereign wealth fund Qatar Investment Authority. Omani domestic investors such as pension funds and insurance firms have expressed interest in the sukuk and it could have a broader regional appeal, in particular from Qatar, Mohamed added. A corporate sukuk could also be welcomed by local Islamic banks, which are eager for access to more sharia-compliant investment products while Oman's Islamic money markets are underdeveloped. Although the threat of monetary policy tightening in the United States is dampening issuance in other markets, the Tilal sukuk will weather that because of its specific client base, Mohamed said. "What we see is that it will be a private placement and most are sharia-sensitive investors." Oman began to introduce Islamic finance last year. The government has been laying plans to issue a sovereign sukuk, but that issue is expected to occur next year, according to the latest comments by officials.
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 8 ANALYSIS MIDEAST DEBT-Sukuk-backed sukuk test industry's appetite for complexity By Bernardo Vizcaino / REUTERS Thu, Jun 27  Packages of long-term sukuk back short-term programmes  Bahrain's LMC running a programme, IILM plans one  Nigerian central bank guidelines cover them  But multiple approvals by sharia boards raise costs, time  IILM programme delayed by regulatory preparations Interbank lending programmes that securitise sukuk are testing the Islamic finance industry's ability to digest complex financial products. Some firms are starting to combine sukuk, using portfolios of long- term issues to back short-term certificates. This lets them create liquidity programmes that address a major weakness of the Islamic finance industry: a persistent shortage of money market instruments needed by Islamic banks to manage their short-term funds. Such is the approach used by Liquidity Management Centre (LMC), a Bahrain-based wholesale Islamic bank. "The programme is very simple: we have an SPV (special purpose vehicle) where we book all the sukuk. The SPV is fully backed by sukuk of different tenors and rates," said Ahmed Abbas, LMC's chief executive. The rising number of sukuk issuers globally is making it easier to manage the programme, and LMC plans to double its size in a year's time from about $120 million now, Abbas added. "As we speak, we are reviewing our offering circular. We will have more options in terms of tenors, rates and liquidity." He added, "As we see more issuers come to the market, the programme can grow. This helps in geographical distribution, the number of issuers - it helps on many levels." A similar format is to be used by the Malaysia-based International Islamic Liquidity Management Corp (IILM), which plans to launch a Luxembourg-domiciled programme of its own. "All of the assets will be either sovereign, sovereign-linked or supranational assets," said Eric Gretch, senior director at Standard and Poor's, which rates the programme. "Basically you have long-term sukuk assets backing short-term certificates, all of which will be sharia-compliant." The IILM programme was originally to launch by the end of this month; that timetable is now expected to slip because more time is needed to resolve regulatory aspects, according to a source familiar with the programme. But the IILM scheme could encourage others to consider its approach. "We expect other similar programmes to come to market in attempts to replicate this unique structure," Gretch said. LAYERS If these programmes gain traction they could open the door to additional layers of securitisation, not only in Islamic finance's core markets in the Middle East and Southeast Asia, but perhaps further afield. For example, Nigeria is only just starting to develop Islamic finance; its cocoa-producing Osun State plans to issue the first sukuk in the country, a 10 billion naira ($62 million), seven-year issue, by the end of July. But the Nigerian central bank issued guidelines in December for asset-backed securities that would use IILM certificates as collateral - essentially creating three layers of sukuk. LMC plans to develop a product secured by its own short-term sukuk programme through a murabaha structure, a common cost- plus sale transaction, Abbas said. But the nature of Islamic finance raises potential obstacles to such complexity. Boards of scholars at the issuing institution must certify the sharia-compatibility of not only the programme itself, but of all the sukuk backing it. Scholars at each investing institution are supposed to do the same thing - increasing costs and time required with each layer of the product. Since sharia standards are not uniform across countries and investing institutions, the issuer may have to take into account an increasingly complex set of demands as its investor base expands. The complexity of ensuring approvals for a range of sovereign sukuk that will back the IILM's programme appears to be one reason behind delays to its launch. The IILM was established in 2010 and took over two years to even agree on a plan for its programme. Some issuers may seek to minimise the approval problem by placing their products with a relatively small group of like-minded institutions, often from the same geographical area. The LMC programme, launched in 2004, was initially used mainly by its own shareholders and related parties, although its client base has expanded since then, Abbas said. LMC's four shareholders, each with a 25 percent stake, are Bahrain Islamic Bank BISB.BH, Dubai Islamic Bank, the Jeddah-based Islamic Development Bank (IDB) and Liquidity Management House, a unit of Kuwait Finance House. However, the types of sukuk in which the LMC programme can invest has gradually expanded and now includes selected Malaysian and Indonesian issuers, Abbas said. The IILM has not revealed its choice of sukuk to back its programme, but recent issuers of sukuk include IILM shareholders such as the AAA-rated IDB and Qatar's central bank.
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 9 BOOK RUNNER AMOUNT ISSUED ($MILLION) MARKET SHARE NUMBER OF ISSUES HSBC Holdings PLC 1,987.50 16.8 7 Standard Chartered PLC 1,182.00 10 8 Deutsche Bank 1,074.60 9.1 2 Emirates NBD PJSC 886 7.5 7 Citi 782.2 6.6 4 National Bank of Abu Dhabi 704.2 6 5 Dubai Islamic Bank Ltd 682.2 5.8 4 RBS 291.7 2.5 2 RHB 278.5 2.4 2 Malayan Banking Bhd 200 1.7 1 Abu Dhabi Commercial Bank Ltd 165.6 1.4 1 Abu Dhabi Islamic Bank (ADIB) 165.6 1.4 1 Natl Comml Bank Saudi Arabia 125 1.1 1 Kuwait Finance House 125 1.1 1 Natixis 125 1.1 1 Al Hilal Islamic Bank 125 1.1 1 CIMB Group Sdn Bhd 125 1.1 1 Credit Agricole CIB 125 1.1 1 Barwa Bank QSC 125 1.1 1 Masraf Al Rayan 74.6 0.6 1 QInvest LLC 74.6 0.6 1 Alkhair Capital Saudi Arabia 74.6 0.6 1 Goldman Sachs 74.6 0.6 1 BNP Paribas 66.7 0.6 1 Nomura 66.7 0.6 1 Industry Total 11,819.00 100 16 Source: Thomson Reuter SUKUK PIPELINE 2013 Issuer Name Sukuk Structure Country Status Subsc. Date Issue Size ($M) Tenor Arranger/Advisor Doha Bank Ijarah Qatar Delayed - 1,000 - - Inverfin Sukuk Berhad Unknown Malaysia Announced - 4.84 - - Riyad Bank Unknown Saudi Arabia Announced - - - - Bahrain Telecommunications Company Unknown Bahrain Rumoured - - - BNP Paribas, Citigroup Ministry of Finance - Egypt Musharaka Egypt Announced 2014 2,000 3 Years to 5 Years National Bank of Egypt WOM Finance Ijarah Indonesia Announced 2013 30.628 - - Airport Authority Hong Kong Ijarah Hong Kong Rumoured 2013 - - Citigroup Global Markets Limited Al-Amanah Islamic Investment Bank Ijarah Philippines Rumoured 2013 1,000 5 Years - Government of Kenya Unknown Kenya Rumoured 2013 500 - - Islamic Development Bank Ijarah Indonesia Rumoured 2013 - - - First Fidelity Leasing Modaraba (FFLM) Musharaka Pakistan Rumoured 2013 2.03 5 Years IGI Investment Bank Source: Zawya. For complete list of pipeline click here INTERNATIONAL SUKUK LEAD ARRANGERS LEAGUE TABLE 2013
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 10 Equities Review MARKETS OVERVIEW Anti-Mursi protests to weigh on Egypt bourse By Nadia Saleem / REUTERS DUBAI | Sun, Jun 30 MARKET SNAPSHOT MEA Value WoW MTD YTD TASI 7504.38 -0.76% 1.35% 10.34% DFMGI 2226.79 -3.17% -5.92% 37.24% ADI 3552.33 -0.34% -0.30% 35.03% KWSE 7846.17 -2.74% -5.47% 32.22% XU100 76294.51 4.37% -11.28% -2.45% EGX30 4685.09 3.54% -13.86% -14.23% MSI 6354.54 -0.84% -0.99% 10.31% QSI 9280.27 0.53% 0.46% 11.02% Global Value WoW MTD YTD FTSE 100 6215.47 1.62% -5.58% 5.39% DAX 7959.22 2.18% -4.67% 4.56% STOXX 50 1035.15 2.08% -6.03% -1.26% DJIA 14909.60 0.74% -1.36% 13.78% S&P 500 1606.28 0.87% -1.50% 12.63% TOPIX 1075.06 3.18% -0.10% 32.09% HANG SENG 76294.51 4.37% -11.28% -2.45% NIKKEI 13677.32 3.38% -0.71% 31.57% Source: Thomson Reuters EIKON - Indices Guide <Indices> Plans for mass protests against President Mohamed Mursi will weigh on Egypt's bourse on Sunday, because of fears they could result in worse violence after several people were killed and hundreds wounded in the last few days. The Egyptian index .EGX30, which last closed at 4,685 points, is already down 14 percent so far this year and late last week showed tentative signs of bottoming out around 4,500 points, as exchange data showed signs of modest net buying by foreign investors. But the potential for violence - and a further slide by the Egyptian pound EGP= as a result - may deter most buyers on Sunday. The political crisis appears to have once again stalled any progress towards a loan deal between Egypt and the International Monetary Fund. When the index broke earlier this month below major support on the November low of 4,683 points, it triggered a double top formed by the September and January peaks and pointing down further in the medium term - there is no major support left before the June 2012 low of 4,027. In the United Arab Emirates, Aldar Properties will begin trading after its merger with Sorouh Real Estate on Sunday. Some traders think a short-term rise by the stock to mark the merger is on the cards, especially because of the strong tone in global equity markets on Friday. Aldar said it had amended terms on Sorouh's 2.1 billion dirham ($570 million) loan facility by cutting the interest rate to 2.45 percent from 4.5 percent, bringing down the cost of servicing the debt as its risk declined with the merger - a sign of the concrete benefits that could arise from the tie-up. In Qatar, shares in telecommunications operator Ooredoo may gain after it won a licence to provide telecommunications services in Myanmar. But Saudi Arabia's bourse .TASI, starting the week on a Sunday for the first time since the country's weekend was changed, may open lower after fresh declines in crude oil prices. Saudi petrochemical stocks tend to track oil prices; Brent crude oil futures shed 66 cents a barrel on Friday to settle at $102.16. 90 110 130 150 170 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Thomson Reuters/ IR Islamic Indices MENA Global AsiaPac ex Japan
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 11 FOREIGN EXCHANGE REVIEW FOREX-Dollar rises on talk of cutback in Fed easing by September By Gertrude Chavez-Dreyfuss / REUTERS NEW YORK | Fri, Jun 28 The dollar advanced against the yen and the euro on Friday as investors resumed pricing in the possibility that the Federal Reserve will begin to pare back its bond-buying program as soon as its September policy meeting. Fed Governor Jeremy Stein on Friday highlighted September as a possible time when the U.S. central bank will need to consider reducing its 'quantitative easing' economic stimulus progam. Stein said the Fed's eventual decision to scale back its $85 billion in monthly asset purchases must be based on the overall economic progress since it launched the stimulus, and not be "excessively sensitive" to the most recent economic data. "Stein's remarks cannot be lightly dismissed and raise risks that some on the Committee may have already essentially decided on September," said Michael Feroli, economist at J.P. Morgan in New York. "More generally, compared to remarks from Fed officials earlier this week, Stein's speech was less geared toward calming market perceptions of Fed policy and did less to question market pricing of the first rate hike." J.P. Morgan in the past had said that the first 'taper' from the Fed would be a close call between September and December. But since first-quarter U.S. economic growth numbers and potentially second- quarter figures could show low growth, the U.S. bank said the Fed could reduce easing in December. The dollar got an added boost on Friday when a report showed U.S. consumer sentiment improved in late June, ending the month close to a near six-year high set in May, as optimism among higher- income families rose to its strongest in six years, a Thomson Reuters/University of Michigan survey showed. The euro was last down 0.2 percent at $1.3015, with the session low at $1.2990. Against the yen the dollar was up 0.9 percent at 99.20 yen. Volume in dollar/yen surged to US$4.0 billion as of late afternoon trading in New York, while turnover in euro/dollar was US$4.3 billion. For June, the dollar fell 1.2 percent against the yen, snapping eight straight months of gains against the Japanese currency, while the euro was little changed against the dollar. "We are settling into the bottom of the recent range (on euro/dollar) at around $1.3000," said Andrew Dilz, foreign currency trader at Tempus Inc in Washington, "but there is no reason not to be trading at $1.3000." Richmond Fed President Jeffrey Lacker said from West Virginia on Friday that financial markets should brace for more volatility as they digest news that the Fed will scale back bond buying later this year, but added it was an understandable adjustment and will not derail growth. Investors were also beginning to speculate about what announcements may come from the European Central Bank policy meeting next Thursday. Analysts said growing worries about the euro zone's faltering economy, in contrast to the relative optimism around the U.S. economy, could hurt the bloc's common currency. This week ECB President Mario Draghi cited downside risks to growth and said the bank was nowhere near exiting its accommodative monetary policy. "We think President Draghi will use more dovish language in the statement and during the press conference that will highlight the growing prospects of further easing measures, including negative deposit rates," said CitiFX in a research note. The Bank of England, Reserve Bank of Australia and Sweden's Riksbank will also hold monetary policy meetings next week. While the Fed's asset purchases have weighed on the dollar, Song said investors would take it as a positive sign if the ECB ramped up efforts to stoke growth in Europe. "There is a little bit of a different dynamic on the two currencies," Song said. Other analysts cautioned that quarter-end flows were creating some distortion in market sentiment. Large funds rebalance their investment portfolios at the end of each month and quarter, so their flows and requirements to square positions often dominate trade on the last trading day. The Australian dollar was last down 0.6 percent against the Canadian dollar at C$0.9644 and touched a session low of C$0.9607 after the release of IMF data on central bank holdings, which for the first time separated reserves in the two commodity bloc currencies as individual line items. Central banks held US$98.66 billion in the Australian currency globally as of the first quarter, or 1.63 percent of allocated reserves. They held US$94.93 billion in Canadian dollars, or 1.57 percent of known reserves. European Central Bank (ECB) President Mario Draghi arrives at an European Union leaders summit in Brussels June 28, 2013. European leaders agreed on new steps to fight youth unemployment and promote lending to credit-starved small business on Thursday after deals on banking resolution and the long-term EU budget gave their summit a much needed lift. REUTERS/Francois Lenoir
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 12 INVESTMENT FOCUS In turbulent times, frontier stocks hold on to long-haul investors By Carolyn Cohn / REUTERS LONDON | Mon, Jun 24 Hard to enter and hard to leave, frontier stock markets from Bulgaria to Pakistan have attracted investors who are in for the long haul, keeping them clear of the worst of the markets storm. While these less-developed emerging markets suffer from a lack of liquidity, with buyers and sellers struggling to match up at times, that can be a bonus when nervous investors are dashing for the exits elsewhere. More liquid emerging market stocks have slumped 15 percent since May 22, when U.S. Federal Reserve Chairman Ben Bernanke fuelled expectations the Fed will scale back its bond-buying programme, reducing the appeal of high-yielding assets. Those stocks plummeted last week after the Fed laid out a timetable for withdrawing the stimulus, with concern about China's economy and interbank funding adding further pressure. Frontier stocks, in contrast, have fallen only 3 percent since May 22, outperforming even the S&P 500 , although Nigerian stocks fell 6 percent in one week this month when valuations were seen as overstretched. Part of the allure for asset managers is that these markets stand to benefit from growth fuelled by natural resources and young populations with increasing spending power. While they may not be easy stocks to trade, investors know that and accept the risk in view of the long-term rewards. "Markets do not tend to move. Investors understand this is much more of a long-term bet," said Philip Poole, head of global strategy at HSBC Asset Management. While emerging market stocks are down 16 percent this year, frontier markets are up more than 10 percent, although they did underperform last year. Frontier equity funds have seen buoyant inflows of nearly $3 billion this year, according to Boston-based fund tracker EPFR - nearly half of all emerging-plus-frontier fund inflows. LOOSER LINKS One advantage of frontier market stocks is that they tend to be less correlated with both global markets and each another, making them an attractive diversification play. The MSCI Pakistan index, for example, has only a 0.55 correlation with the MSCI Kazakhstan index , according to Datastream, where 1 indicates full correlation. While larger markets have dropped in the past few weeks, some frontier markets have climbed. Dubai, Abu Dhabi and Qatar have gained after MSCI this month upgraded the United Arab Emirates and Qatar to its flagship emerging market index, against which $1.4 trillion is benchmarked. Other frontier markets which have performed well this year include off-index plays like Saudi Arabia and Iraq. Templeton, which manages $4 billion in frontier market assets, where many frontier funds only total $100-200 million, has a 12 percent exposure to Saudi Arabia in its frontiers fund. "If you have a long-term investment horizon of 10 years or more, you cannot ignore (frontier markets)," said Carlos von Hardenberg, frontier stocks fund manager at Templeton. Frontier market fans say their index is more heavily weighted than the energy-heavy emerging markets index to growth stocks in consumer goods and financial services, which cater for the rising middle class in these economies. Like emerging markets, they are also benefiting from intra-regional trade. "There is more trade between frontier markets and emerging markets than a few years back. They do not have too much debt. They have freely floating currencies," said Sven Richter, frontier market fund manager at Renaissance Asset Managers. But even where liquidity is relatively small and the exit channels narrow, overpriced stocks can still suffer. When international consumer names like Nestle Nigeria were showing overstretched valuations of 35 times earnings or more a few weeks ago, it was time for the few investors there were to bail out of Nigeria. "We do not think fundamentals justify those valuations," said Ronak Gadhia, equity analyst for sub-Saharan Africa at frontier markets broker Exotix. "We definitely have a lot more sell than buy recommendations." As rising U.S. Treasury yields increase the attraction of U.S. debt, investors may also be less inclined to battle the liquidity hurdle to access frontier markets. Jeff Shen, head of emerging equities at Blackrock, the world's largest asset manager, told a recent briefing that the fund had found it hard to invest $200,000 in a day across a range of frontier markets because of liquidity issues, adding: "I am not sure (frontier markets) are ready for prime-time investing." But for those who struggle to get in, there are others who may struggle to get out, keeping these markets afloat. "When the market gets itself into a tizz, people tend to sell the stuff they can sell," said Angus Halkett, emerging markets fund manager at Stone Harbor. "When you get a bout of risk-off, this stuff tends to outperform because it does not trade."
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING 13 INTERBANK MARKETS REVIEW Thomson Reuters Islamic Interbank Benchmark Rate (IIBR) The IIBR overnight rate decreased on Sunday to 0.187 from 0.203 and the one week rate to 0.245 from 0.260. The one month rate also dropped to 0.360 from 0.399, the three months rate decreased to 0.510 from 0.557, the six months rate to 0.712 from 0.803 and the one year rate to 1.040 from 1.142 since last week. ICAP executive seen linked to LIBOR scandal - Wall Street Journal By Jed Horowitz / REUTERS NEW YORK / Thu, Jun 27 A senior executive at British brokerage firm ICAP PLC (IAP.L) knew that some of the firm's brokers worked with traders at UBS AG (UBSN.VX) to manipulate benchmark interest rates, according to the Wall Street Journal, which cited sources familiar with the matter. The executive, David Casterton, was included in some emails sent in 2007 documenting the discussions, in which UBS agreed to make quarterly payments to ICAP for help in rigging the London Interbank Offered Rate, or LIBOR, the paper said on its website on Wednesday. A call and email to ICAP spokeswoman Brigitte Trafford were not immediately returned after business hours. The rate-fixing scandal has infected many of the world's biggest banks, put in motion new attempts to set global interest rates and indirectly led to the departure of several top executives at Barclays PLC (BARC.L) and UBS. Casterton, who the paper said is a longtime deputy to ICAP Chief Executive Michael Spencer and currently head of global broking at the London-based firm, would nevertheless be one of the most senior executives affected by the Libor scandal, the Journal said. An ICAP spokeswoman told the paper that no one at the company was "aware of any corrupt payment from any source at any time" and said it would be false and defamatory to suggest otherwise. *The Islamic Interbank Benchmark Rate (IIBR) is published at 11 am Makkah time (GMT +3) Sunday . # The London Interbank Offered Rate (LIBOR) is published at 11 am GMT Friday. Source: Thomson Reuters EIKON <ISL/MONEY> Thomson Reuters Islamic Interbank Benchmark Rate- IIBR <IIBRFIX> 0.19 0.25 0.36 0.43 0.51 0.71 0.87 1.04 0.125 0.161 0.195 0.236 0.273 0.413 0.000 0.686 0 0.5 1 1.5 2 ON SW 1M 2M 3M 6M 9M 1Y Yield Curve: IIBR* and LIBOR IIBR LIBOR 0.060 0.170 0.210 0.220 0.290 0.430 0.530 0.530 0.170 0.210 0.220 0.290 0.430 0.530 0.510 0 0.2 0.4 0.6 0.8 1 ON SW 1M 2M 3M 6M 9M 1Y Yield Curve: Murabaha and Wakala Rates Wakala Murabaha
    • ISLAMIC FINANCE GATEWAY – WEEKLY BRIEFING A service of Thomson Reuters and Zawya Islamic Finance Gateway The contents of this briefing are independently compiled by the Thomson Reuters and Zawya Islamic Finance Gateway Service, a business of the Global Growth and Operations Division. While material is drawn from Reuters News and other sources, Reuters has not participated in the selection of these articles. The production of the briefing is supported by the Bahrain Economic Development Board (EDB) and Tamkeen (Labour Fund) as part of their initiatives to promote Islamic Finance in Bahrain. Privacy Statement: To find out more about how we may collect, use and share your personal information please read our Privacy statement. You may instruct us to remove you from the Thomson Reuters Zawya Islamic Finance Gateway by clicking here. Thomson Reuters, 3 Times Square, New York, NY 10036, USA 14 Global Islamic Indices Last Net Chng WoW Chng MTD Chng YTD Chng Global Indices Last Net Chng WoW Chng MTD Chng YTD Chng Thomson Reuters/IR Islamic GCC Index 134 -0.56 -2.03% -4.59% 9.04% Thomson Reuters GCC 183 -0.45 -0.90% -2.42% 15.12% Thomson Reuters/IR Islamic MENA Index 119 -0.51 -1.92% -4.69% 8.24% Thomson Reuters MENA 122 -0.30 -0.66% -3.06% 12.44% Thomson Reuters/IR Islamic Global Index 168 -0.01 0.79% -2.81% 3.67% Thomson Reuters Global 69 -77.32 -52.10% -53.81% -50.57% DJ Islamic Market World 3129 0.82 0.82% -3.32% 4.34% DJ INDU AVERAGE 14910 -114.89 0.74% -1.36% 13.78% DJ Islamic Sustainability 2678 0.00 1.14% -3.39% 3.37% DJ Sustainability World 80 Price Index 1447 -4.06 2.04% -4.32% 2.09% MSCI World Daily PR 1035 -0.11 1.42% -2.56% 10.33% MSCI World Price Return 1434 -2.48 0.87% -2.61% 7.10% S&P500 Shariah 1381 -5.92 0.35% -2.02% 10.07% S&P 500 1606 -6.92 0.87% -1.50% 12.63% FTSE4GDB Global 5861 0.00 0.95% -2.94% 5.59% FTSE100 6215 -27.93 1.62% -5.58% 5.39% Emerging Markets Islamic Domestic 905 20.74 3.01% -5.17% -10.88% DJIM World Emerging Markets 1939 -0.91 3.59% -6.01% -9.80% DJ Islamic GCC 1826 0.05 -0.76% 0.36% 10.36% Dow Jones GCC 1662 0.05 -0.99% -0.44% 10.59% DJ Islamic Global Finance & Takaful 1126 -0.04 -1.24% -1.87% 7.20% DJ Global Financials 191 0.11 2.04% -3.93% 5.63% Thomson Reuters /IR Islamic Indices Last Net Chng WoW Chng MTD Chng YTD Chng Thomson Reuters National Indices Last Net Chng WoW Chng MTD Chng YTD Chng Malaysia 198.48 0.00 1.11% -0.15% 6.04% Malaysia 437.36 0.00 1.18% -0.55% 8.97% UAE 133.63 -0.72 -2.40% -3.21% 37.03% UAE 232.66 0.17 -1.73% -3.50% 36.03% Indonesia 288.35 0.00 9.23% -2.74% 22.82% Indonesia 487.39 0.00 7.48% -5.49% 11.34% Kuwait 96.06 -0.68 -3.57% -8.01% 1.95% Kuwait 119.71 -0.82 -2.43% -6.93% -0.61% Qatar 199.71 -0.19 -0.33% -0.33% 5.72% Qatar 211.28 -0.68 0.70% 0.37% 11.91% Bahrain 55.86 0.00 -1.72% -4.48% 4.02% Bahrain 111.09 0.78 -2.00% -0.87% 16.59% Turkey 293.04 0.00 2.79% -3.80% 14.31% Turkey 1723.68 0.00 3.56% -9.24% 2.50% Oman 159.29 -0.84 -1.29% -0.75% 12.83% Oman 113.28 0.06 -1.13% -0.88% 9.00% Egypt 104.56 0.00 3.21% -11.81% -15.69% Egypt 131.44 0.00 2.74% -11.95% -14.27% Top Performing Sharia-based Companies Last Country Sector 5D Chng YTD Volume ISLAMIC HOLDING IHGS.QA 43.8 Qatar Financials 10.80% 13.42% 631 AL-AMAN INV CO AMAN.KW 94 Kuwait Financials 9.52% 70.37% 4,652,066 BARKA EGYPT BANK SAUD.CA 10.06 Egypt Financials 9.11% -23.44% - TABUK AGR DEV CO 6040.SE 43.4 Saudi Arabia Non-Cyclical Consumer Goods & Services 8.77% 39.10% - Bottom Performing Sharia-based Companies Last Country Sector 5D Chng YTD Volume 1ST PUNJAB MOD 1PUJ.KA 2.2 Pakistan Financials -13.39% -28.10% 8,000 ABG BARKA.BH 0.74 Bahrain Financials -12.50% -6.06% 201,588 ABD NAT TAKAFU/d TKFL.AD 5 United Arab Emirates Financials -10.99% -1.19% - TAKAFUL-EM/d TKFE.DU 0.62 United Arab Emirates Financials -10.40% -0.64% - Top Performing Sharia-compliant Companies Last Country Sector 5D Chng YTD Volume GEOSPATIAL HLD GSPH.PK 0.125 United States Energy 108.33% 78.57% 25,100 LAKE SHOR LSG.TO 0.32 Canada Basic Materials 100.00% -57.33% 1,943,213 ZCI/d ZCIJ.J 980 Bermuda Basic Materials 78.18% 67.52% 1,800 GREENFIELD CHE/d 0582.HK 0.445 Hong Kong Basic Materials 78.00% 564.18% 187,275,000 Bottom Performing Sharia-compliant Companies Last Country Sector 5D Chng YTD Volume MWANA AFRICA MWA.L 1.488 United Kingdom Basic Materials -48.52% -70.98% 1,679,177 POLIMEXMS PXMP.WA 0.22 Poland Industrials -45.00% -64.52% 21,255,590 WORKSTREAM INC C WSTMF.PK 0.25 United States Technology -44.44% -13.79% 200 PERSEUS FPO PRU.AX 0.435 Australia Basic Materials -43.87% -79.29% 11,322,204 ISLAMIC MARKET INDICATORS Commodities Last Net Chng WoW Chng MTD Chng YTD Chng CRUDE APR3 96.49 -0.50 2.99% 4.91% 5.09% NGAS APR3 3.566 -0.47 -5.44% -10.49% 6.42% GOLD APR3 1234.8 1.00 -4.43% -11.34% -26.42% SILVER MAY3 19.60 4.94 -1.82% -11.90% -35.34% CRUDE APR3 96.49 -0.50 2.99% 4.91% 5.09% Currencies Last Bid Net Chng WoW Chng MTD Chng YTD Chng Euro 1.3011 0.00 -0.85% 0.12% -1.39% Japanese Yen 99.12 0.00 1.26% -1.33% 14.27% GB Pound 1.5209 -0.00 -1.34% 0.07% -6.41% Swiss Franc 0.9447 -0.00 1.10% -1.07% 3.19% Australian Dollar 0.9137 0.00 -0.84% -4.52% -12.09% Indian Rupees 59.523 -0.67 0.43% 5.22% 8.24% Malaysian Ringgit 3.158 -0.02 -1.37% 1.95% 3.30% Bonds (Top Benchmarks) Bid Yield Net Chng WoW Chng MTD Chng YTD Chng US5Y 1.3961 0.00 -2.30% 36.34% 92.57% US10Y 2.4875 0.00 -2.14% 16.67% 41.58% EU5Y 0.736 0.01 -8.91% 47.49% 158.25% EU10Y 1.733 0.00 -0.06% 14.46% 32.80% ES5Y 3.598 -0.01 -2.68% 11.64% -11.38% IT5Y 3.509 0.03 -1.13% 14.75% 4.59% GR10Y 11.016 -0.12 -2.61% 16.24% -6.98% PT5Y 5.558 -0.08 -1.63% 27.04% 7.44%