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Indian Rupee futures start year on a high note
Record open interest of 807 lots in the DGCX Indian Rupee futures contract
Total volume of Indian Rupee futures rose 530% in 2009 to 66,346 contracts
January 13, 2010--Demonstrating increased demand for its Indian Rupee futures contract, the Dubai Gold & Commodities Exchange today said that Open Interest in the contract stood at a record 807 lots as at close of business on Tuesday January 12th.
The Open Interest, contracts which roll over to the next trading session, reflects the build up of hedging participation and ongoing momentum in the product. The trend is also supported by the rise in annual volumes of DGCX Indian Rupee/Dollar futures.
“The record Open Interest and sustained volume sets the tone for the product's growth this year,” said Eric Hasham, Chief Executive Officer of DGCX.
“The Indian Rupee contract is an important driver of the Exchange's currency portfolio, having gained favour with many market participants. The changes to the contract in 2008, based on member feedback, led the contract to a new level of growth. The contract is now cash settled based on the US Dollar reference rate published by the Reserve Bank of India, providing transparency and facilitating settlement for all participants. We anticipate further interest in the contract, backed by participants' better understanding of its benefits and India's strong economic prospects,” he added.
Total Indian Rupee futures volume rose 530% in 2009 to 66,346 contracts. Volume in December 2009 was 346% higher compared with the same period last year. The DGCX Indian Rupee/Dollar futures contract is the only contract of its kind outside of India and thus available to international participants. The contract is available for trading from 8.30am to 11.30pm Dubai time, Monday through to Friday.
SSE Cyclical, Non-Cyclical Indices to be Launched on Feb. 3
January 12, 2010--The SSE Cyclical Industry 50 Index (SSE Cyclical, with the code of "000063") and the SSE non-Cyclical Industry 100 Index (SSE non-Cyclical, with the code of "000064") will be officially launched on February 3, 2010 as benchmarks for the trends of stocks in different industries to offer investors new investment targets, the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) announced recently. The base days of the above two new indices are both December 31, 2003, with the base points of both 1,000.
According to the published index compilation schemes, both SSE Cyclical and non-Cyclical constituents are selected from that of SSE Large & Mid & Small Cap Index. Constituents of SSE Cyclical are made up of 50 stocks with large market capitalization and sufficient liquidity in five industries with strong cyclical features, namely finance and insurance, mining, transportation and storage, metal and non-metal and real estate, while constituents of SSE non-Cyclical consist of 100 stocks with large market capitalization and sufficient liquidity in the remaining 17 industries subject to the industry classification of the China Securities Regulatory Commission.
Statistics show that by January 11, 2010, the market capitalizations of SSE Cyclical and non-Cyclical had been RMB10,630.7 billion and RMB2,798.3 billion, or 58.87% and 15.50% of that of A shares on the SSE, respectively, with the free float adjusted market capitalizations of RMB2,465.6 billion and RMB1,234.0 billion, accounting for 41.81% and 20.92% of that of A shares on the SSE, respectively.
Following the adjustment to the constituents of the SSE Large & Mid & Small Cap Index, the SSE Cyclical and non-Cyclical indices undergo biannual regular adjustments, with the time for the adjustments on the first trading days in January and July each year. Special adjustments will also be made under special circumstances. For compilation methods and detailed materials of the SSE Cyclical and non-Cyclical indices, please refer to the websites of the SSE and CSI.
It is learnt that some fund companies have committed themselves to the development of ETF products of the SSE Cyclical and non-Cyclical indices.
As of January 11, 2010, the SSE Cyclical and non-Cyclical indices had closed at 2,947 and 2,409 points, respectively.
Al Sorayai plans to boost exports to Europe to increase their share in European Union market
January 12, 2010--Manufacturing industries across the Kingdom of Saudi Arabia intend to increase their exports to Europe in order to meet the growing demand for high quality Saudi products across the European Union (EU) market.
This move will help maintain the Kingdom's status as one of the EU's top 15 international trading partners. The country is especially monitoring Europe's construction industry, the region's biggest sectoral employer and one of its major sources of gross capital. The European construction sector is expected to achieve market stability within 2010 and open up various opportunities in related businesses such as flooring and carpeting.
HSBC launches fund to help small businesses in UAE
January 12, 2010--HSBC Bank Middle East has launched a $100m fund specifically for UAE small and medium-sized enterprises with a turnover of $30m or below.
SMEs in the UAE that need working capital finance for international expansion will be able to utilize the fund, with high priority accorded to Emirati-owned businesses. The fund is the result of a memorandum of understanding that the lender signed with the ministry of economy.
ADX announces Investment Literacy Index and Market Sentiment Index
January 11, 2010--Abu Dhabi Securities Exchange (ADX) today announced the introduction of its Investment Literacy Index and Market Sentiment Index.
In early December ADX issued an E-questionnaire to assess the investment knowledge and understanding of ADX active and early-stage investors and the results of the survey have been used to derive an ADX Investor Literacy Index and a Market Sentiment Index.
Dubai Gold And Commodities Exchange Weekly Views January 10, 2010
January 10, 2010--Commodities Overview
Commodities prices are expected to show strength in the first few months of this year. The strength will not be one-way, however. Periods of profit taking should be expected at times. This week petroleum prices may back off, following strong increases in recent weeks. Gold and silver prices may show continued strength this week, in contrast, as investors continue to buy these metals in expectation of higher prices over the next few months.
Economic conditions continue to drive much of investor interest in commodities, including other, industrial metals. With increasing indications that the U.S. economy is joining other geographical markets in moving toward recovery and revival, investors are buying a range of commodities, expecting upward pressure on prices. Industrial demand is showing signs of increasing, meanwhile, adding to the upward pressure.
Currencies Overview
The dollar still seems most likely to rise. The upward momentum remains in place, and has shown signs of gaining strength as investors focus on potentially stronger U.S. economic growth and equity markets than may be seen in Europe, England, and Japan this year. The dollar was hit last Friday by weaker employment figures than the market had expected, but soon recovered some of its composure as the market re-focused on the fact that the U.S. longer term employment trends are moving from disastrous conditions in late 2008 and the first few months of 2009 toward turning positive. Also, many investors are aware that employment trends lag overall economic condition. Thus, they understand that employment statistics should not be expected to turn positive until a recovery is well in place. Insofar as the U.S. employment situation is stabilizing after earlier nightmare conditions, it suggests to investors that the U.S. economy indeed is likely to see positive growth of 1.5% - 2.5% for the full year 2010.
Government of Dubai approves budget for 2010
January 9, 2010--His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, has approved the law of the fiscal year budget for the year 2010 of the government sector in the Emirate of Dubai.
The Public Budget of the Government of Dubai reflects Sheikh Mohammed trends assuring need to work within the framework of a fiscal policy which aims to raising economic growth rates and to overcoming the repercussions of the global crisis and in the same time commitment with the internationally recognized financial rules regarding the budget deficit and public expenditure management.
Moody's updates on review of government support for UAE corporates
January 7, 2010--As previously announced, Moody's Investors Service has today published a Special Comment explaining the criteria it is applying to its ongoing review of the support assumptions for all corporate government-related issuers (GRIs) in the United Arab Emirates (UAE).
This is in line with Moody's press release from 9 December 2009, in which the rating agency placed on review for downgrade the ratings of all GRIs owned by Abu Dubai and the federal government of the UAE and also announced that it would in due course publish a Special Comment expanding on its criteria and approach.
DFM closes up almost 1%
January 07, 2010,-The Dubai Financial Market (DFM) closed up by 0.95% to 1,837.14 on the last day of trading of the week.
Six stocks fell, five held steady and 19 rose. Arabtec was the day's biggest gainer, closing up 6.25% to Dhs2.89.
ADX slips 0.32%
January 7, 2009-The Abu Dhabi Securities Exchange (ADX) closed up by 0.32% to 2,775.50. Eight stocks fell, eight held steady and 12 rose. Union Cement Co (UCC) had the biggest rise of the day, moving up by 8.97% to Dhs1.71.
Conversely Gulf Cement Co (GCEM) was the day's biggest loser, falling 5.81% to Dhs1.62.
