ASIA PLAN | Page 2 US SHIFT | Page 15 Aramco deals Germany, point to focus Japan push on downstream trade pact

Tuesday, March 21, 2017 Jumada II 22, 1438 AH

QUALITY OF STRATEGY: Page 16 GULF TIMES Porsche sets new record in 2016 BUSINESS fi nancial year Oil revenue more relevant for GCC despite Fed-driven rate hikes: Kamco

By Santhosh V Perumal the development of oil price and oil rev- path against other major central banks. a host of measures by the Saudi Arabian $29bn of bids. Finding that Oman and first time in 2017, by 0.25% on March 15 Business Reporter enue receipts in the near term to become The US Fed alluded to liquidity conditions Monetary Authority have reined in in- Kuwait issued their bonds in 2017 on bet- to a range of 0.75%-1%, from a range of more relevant for the GCC countries until being comfortable, which drove emerging terbank rates from the fourth quarter of ter terms prior to the rate hike, it said the 0.5%-0.75%. The Fed had acknowledged diversification measures take eff ect,” market (EM) equities (+2.1%) and GCC 2016, as Saibor tightened until March 2017. GCC sovereigns are likely to further tap that economic activity has expanded at a The Gulf Cooperation Council (GCC) Kamco said in a report. equities (+1.1%) as fund flows to EMs are Oman’s government resorted to the inter- into the international market sooner than moderate pace and labour market condi- countries, except Oman, have increased Although the US dollar cooled off post expected to remain “positive”. national funding and raised $5bn through later in order to take advantage of lower tions have strengthened. their benchmark interest rate, but the the FOMC (Federal Open Market Com- “However, the focus now shifts back on their single bond issuance in 5, 10 and 30- borrowing costs. The GCC countries, barring Oman, also petrodollars and oil revenue receipts in mittee, US) meet on March 15, following oil prices and its impact on sentiment year tranches, covering 90% of its borrow- “Apart from shoring up budgetary raised rates through the same policy the near term are expected to be more the dovish stance from the US Federal towards the GCC equities, given slowing ing plan for 2017, as order books for the finances, we believe that international tools used in December 2016, given their relevant for the region than the interest Reserve, it expects fresh long positions in credit conditions and a mixed earnings issue were reportedly close to $20bn. bond sales also make GCC credit default currency pegs to the dollar. Saudi Arabia rates, according to a study. the dollar to build up again, in anticipation season,” Kamco said. Kuwait raised $8bn with $3.5bn five-year spreads now more relevant as a measure raised the reverse repo rate to 1%, while “Given the backdrop of slowing credit of more policy action and a more hawkish The GCC interbank rates rose broadly and $4.5bn 10-year sold at a yield of 2.8% of credit risk,” it said. keeping the repo rate unchanged yet growth prevalent in the GCC, with likely stance at the next FOMC meet in June, following the rate hike by the Fed and the and 3.6% respectively, even as the issue The Fed raised the funds rate for the again at 2%, after raising the reverse repo more tightening on the cards, we expect and factoring in the Fed’s rate diff erential respective central banks. Nevertheless, reportedly witnessed an equally strong second time in three months and for the rate in December 2016 to 0.75%.

Qapco and Nakilat Qatar’s commercial banks recognised for digital initiatives

atar Petrochemical Company (Qapco) was recog- to further gain from robust nised as among the “most digitally-innovative” Qorganisations in the Mena region during the ‘SAP Middle East and North Africa Quality Awards’. Recognising regional innovators, global digital trans- formation enabler SAP awarded four organisations as gold winners in its annual awards event. Qapco, a global leader in producing low-density poly- credit demand, says BMI ethylene, was selected as a ‘Gold Winner’ for backing the Qatar National Vision 2030’s economic diversifi cation By Pratap John goals. In partnership with IBM, Qapco digitised its opera- Chief Business Reporter tions in spend management with SAP Ariba, human re- sources with SAP SuccessFactors, and enterprise resource planning with the SAP HANA platform. ommercial banks in Qatar “will “In the highly-competitive and complex petrochem- continue to benefi t” from robust icals industry, real-time technology is providing a new Cdemand for credit over the coming level of business competitiveness and driving Qatar’s years, BMI Research has said in a new re- diversified economy. Qatar Petrochemical Company port. now has full inventory visibility and automated re- “In particular, public sector credit de- ports on manufacturing and customer questions and mand will remain strong, as the govern- insights, leading to faster decision-making and better ment looks to fi nance large-scale invest- visibility on production,” said Qapco IT manager Ah- ments into infrastructure projects linked to mad al-Hashemi. the 2022 FIFA World Cup and the National He added, “We believe that with honest commitment Vision 2030 diversifi cation programme,” and perseverance, which has been the trademark of our the Fitch Group company said. people, success is certain. Our challenge is to not only Illustrating this trend, it said net claims embrace this change unwaveringly but also to leverage its on the public sector increased by 43.8% potential to the fullest.” over the course of 2016. Moreover, global Nakilat (Qatar Gas Transport Company), the world’s hydrocarbon prices are set to rise – BMI’s largest LNG ship owner, was also recognised for its de- analysts forecast Brent crude to average ployment of the cloud-based SAP HANA platform, as well $57 for a barrel and $60 over 2017 and 2018, as SuccessFactors for human resources. respectively, compared with an average Loan growth will remain robust in Qatar over the coming years as government investment into infrastructure fuels credit demand, says “Qatar’s strong progress in digital transformation is of $45.1 in 2016 – boosting consumer and BMI. PICTURE: Nasar TK exemplifi ed by the new digital business models by Qatar business confi dence in Qatar, and in turn Petrochemical Company and Nakilat, which support di- “fuelling” private credit demand. on profi tability. Loan growth will remain The government’s decision on March fund shortfalls. These circumstances will versifi ed economic growth. Overall, BMI forecasts Qatar’s annual asset strong in Qatar over the coming years – 16 to reduce its reserve requirement from raise pressure on asset quality in the coun- “Public-private partnerships enable Middle East or- growth at 12% and 12.5% in 2017 and 2018, re- averaging a forecast 15% annually in the 4.75% to 4.5% will provide some welcome try, and it expects non-performing loans ganisations across all industries to adopt the real-time spectively; the highest level in the GCC. 2017-2021 period – as large-scale govern- breathing space for local lenders, though (NPLs) as a share of total loans to increase technology that is the foundation of digital economy The credit quality of Qatari bank assets ment investments into infrastructure and their increasing exposure to the public sec- gradually from the 1.2% level recorded by competitiveness and customer happiness,” said Frank “remains strong” at present, with non- diversifi cation programmes fuel domestic tor – where interest rates are substantially the IMF in January 2017. Forndron, head of customer offi ce, SAP Mena, and quality performing loans (NPLs) equal to only 1.2% demand for credit. lower than in the private sector – will weigh The NPL ratio will nevertheless remain management, SAP Emerging Markets. of total loans, BMI said citing an IMF report Deposits will expand at a slower pace as on profi tability, in turn strengthening the the lowest compared regionally, and over- Showing the strong potential for digital transformation, earlier this year. lower global energy prices (relative to levels case for future sector consolidation and all sector stability will persist as domestic ICT spending by Qatar’s commercial sector is set to grow According to BMI, loan growth will re- recorded before the H2, 2014 slump) con- overseas expansion. banks have continued success in raising by 47% from $1.9bn in 2015 to $2.8bn in 2019, according main robust in Qatar over the coming years, tinue to impact state earnings and hydro- Deposit growth has slowed in recent money from abroad. to a recent report by the Ministry of Transport and Com- as government investment into infrastruc- carbon sector profi tability. years as lower energy prices have impact- BMI notes that the establishment of munications. In the wider region, the Middle East cloud ture fuels credit demand. Deposits will BMI forecasts Qatar’s loan-to-deposit ed state and hydrocarbon sector earnings, the Qatar Central Bank’s “100% loan-to- infrastructure services market is set to more than triple to expand at a slower pace, as state and oil & ratio to rise from 115.5% in 2016 to 124.4% and will continue to be outpaced by asset deposit ratio target for this year is likely to $7.5bn by 2021. gas sector earnings remain constrained by in 2018. Local banks will rely on external growth – averaging 10.2% over 2017-2018. be postponed for several years”, as a strict Aligned with the Abu Dhabi Vision 2030, Abu Dhabi lower energy prices. sources to fund the shortfalls, and while the Qatari banks, BMI said will as such re- implementation at this point would result Distribution Company, with Clariba, won gold for de- Commercial banks’ increasing exposure sector remains stable, asset quality is set to main reliant on external sources – mainly in a credit squeeze, signifi cantly increasing livering real-time e-Government services to more than to the public sector will continue to weigh gradually decline. within the rest of the GCC and Europe – to costs of borrowing. 300,000 businesses and consumers.

New arbitration law to benefit global firms doing business in Qatar: QFCA

The Qatar Financial Centre Authority detailed provisions on interim companies looking to set up through (QFCA) has welcomed the new measures. “The new arbitration law the QFC. arbitration law, which gave the Qatar has come at an important time and Welcoming the new arbitration law, International Court and Dispute will directly benefit international Laura Warren, partner at Clyde & Resolution Centre (QICDRC) jurisdiction companies doing business in Qatar Co said it brings considerable and to oversee arbitration cases in Qatar in and prove to be an attractive off ering welcome reform to arbitration in Qatar. line with recent local and international to them,” QFCA chief executive Yousuf “Based on the UNCITRAL model law, it developments. Mohamed al-Jaida said. clarifies numerous positions, including The new law, based on the United Highlighting that around the world, those relating to the enforcement and Nations Commission on International arbitration is a sought-after method recognition of arbitral awards in the Trade Law (UNCITRAL) model, aims for resolving international commercial state and brings in the Court of the at simulating and strengthening the disputes and Qatar is no diff erent, he QFC, together with the state courts, as investment and business environment said, “We welcome the publishing of supervisory bodies to provide guidance in Qatar. this new law and see it as an important or assistance where required.” It contains several innovative features step to meeting the economic and Rashid al-Saad, senior partner and aimed at enhancing procedural commercial needs of those doing chief executive at Sharq Law Firm Al-Jaida, al-Saad and Warren: New law is an important step in Qatar. eff iciency, including revised business in Qatar.” and QFC advisory board member, procedures for the replacement of Al-Jaida also acknowledged the role of said the new legislation provides challenging the arbitral award and between investor and companies that the general assembly of the UN, was an arbitrator, the requirement for the QICDRC chief executive Faisal al- for an inclusive mechanism to the organising the arbitration institutions’ choose to settle their disputes through established in 1966 with the general reasonableness of costs, a review Sahouti and the continued eff orts made arbitration procedures, starting from conduct of business. “It is expected that arbitration as organised under Qatari mandate to further the progressive mechanism regarding the costs of by the international courts to provide the arbitration agreement, appointing the law will have a very positive and law,” he said. harmonisation and unification of the arbitration and also includes more a world-class legal environment for the arbitrators, process of arbitration, spectacular impact on settling disputes The UNCITRAL, a subsidiary body of law of international trade. Gulf Times 2 Tuesday, March 21, 2017 BUSINESS

Saudi oil exports fall Saudi’s Asia investments point in January to 7.713mn bpd: JODI to Aramco downstream focus Reuters Dubai Aramco’s $7bn JV in Malaysian southern Johor state, RAPID is just refinery key; deal with Malaysia’s across a narrow strait from Singapore, Petronas helps diversify Aramco; Asia’s oil trading hub. Saudi Arabia’s crude oil exports it also gives Saudi more leverage Some 70% of the oil for the project, dropped by about 300,000 bpd over oil product prices; deals seen set to start in 2019, will come from Saudi in January, off icial data showed helping Aramco valuation ahead of Arabia, giving the kingdom a key outlet yesterday, as the top Opec pro- IPO for its crude in Asia, the world’s fastest ducer played its part in a global growing market. supply-cut pact to support Reuters It is Armaco’s largest refi nery project prices and ease a glut. Singapore outside the kingdom. Saudi Arabia’s crude oil exports Aramco also recently made a deal in January fell to 7.713mn bpd with Indonesia’s Pertamina over a $5bn from 8.014mn bpd in December, audi King Salman’s extensive tour expansion of the country’s largest oil according to data from the Joint of Asia had a marketing mission: refi nery, for which Armaco will supply Organizations Data Initiative STo cement the kingdom’s place as the crude. (JODI). leading oil supplier to the world’s big- “The investments are intended to en- The world’s largest oil exporter gest consumer region. hance Aramco’s competitive position in pumped 9.748mn bpd in Janu- The string of deals inked on his three- Southeast Asia,” said Ihsan Buhulaiga, a ary, in line with its Opec output week tour to Malaysia, Indonesia, Japan Saudi economist. target, down from 10.465mn and China also point to a fresh strategy, The Malaysian investment also allows bpd in December. one to increase Saudi leverage over re- the Saudis to join the hub of refi neries in Saudi Energy Minister Khalid fi ned product and petrochemical mar- and around Singapore that help deter- al-Falih has said the kingdom kets, known as the downstream sector. mine fuel prices in the region. will adhere strictly to its com- “Our strategy is about growth in the Price agency S&P Global Platts as- mitment to cut output and that downstream,” said Amin Nasser, chief sesses dozens of fuel products during a state oil giant Saudi Aramco executive offi cer of state oil company set time every day, based on deliveries in was cutting exports. Aramco, told Reuters on Sunday. “The and out of this region. Riyadh led Opec and other pro- growth in that sector is very important, Platts calls it Market-on-Close, but ducers in December to reach and anything integrated between refi n- traders dub it “the window”, and it in- their first deal since 2001 to cur- ing, petrochemical, with marketing and fl uences pricing of oil products worth tail oil output and prop up weak distribution, is of interest to us.” billions of dollars each day. oil prices which had strained Saudi Arabia’s main infl uence on oil Crude and fuel products by many many producers’ budgets. markets has been via the Organization companies fl ow in and out of the pricing A Saudi Aramco employee sits in the area of its stand at the Middle East Petrotech 2016 in Manama (file). Singapore, along The Organisation of the of the Petroleum Exporting Countries region, known as FOB Straits. with Hong Kong and Tokyo have been mentioned as possible exchanges where Aramco’s shares would be traded after what Petroleum Exporting Countries (Opec), of which it is the de-facto leader. But the only refi neries now in this could be the world’s largest-ever initial public off ering. (Opec) is curbing its output by But Opec’s ability to control prices by price region are operated by US Exx- about 1.2mn bpd from January turning the oil pumping spigots on and on, Anglo-Dutch Royal Dutch Shell, Deputy Crown Prince Mohammed Indonesia and elsewhere are not only ering energy, manufacturing and even a 1, the group’s first reduction in off has waned as non-Opec producers and Singapore Petroleum Corp (SPC), bin Salman, who oversees the kingdom’s aimed at increasing its refi ning capacity. theme park in the kingdom. eight years. like Russia and, more recently, US shale owned by PetroChina. economic policy, has said the sale is ex- Its new deals in the region would also The deals included a memorandum Russia and 10 other non-Opec drillers, have ramped up output and “When you control refi ning capacity pected to value Aramco at $2tn or more. greatly increase its participation in the of understanding between Aramco and producers agreed to cut half eroded its grip on market share. with the capability to deliver petroleum Analysts have estimated a valuation be- petrochemical sector, which involves all China North Industries Group Corp as much. One indication of a shift in Saudi products into the window, you have ac- tween $1tn and $1.5tn. forms of plastics and where profi ts have (Norinco) to look into building refi ning Saudi Arabia’s domestic crude strategy came on the fi rst leg of the tour cess to a physical outlet which also plays Singapore, along with Hong Kong and soared thanks to strong demand. and petrochemical plants in China. inventories fell further to in Kuala Lumpur. a key role in daily price discovery,” said Tokyo have been mentioned as possi- “We have capacity of about 5.4mn John Sfakianakis, director of the Ri- 261.963mn barrels in January Aramco signed a deal to take a $7bn John Driscoll, director of consultancy ble exchanges where Aramco’s shares bpd of participated refi ning capacity, yadh-based Gulf Research Centre, said from 272.621mn barrels in De- investment, in a joint venture with Ma- JTD Energy in Singapore. would be traded. and our target is to reach 10mn barrels that the trip was “the beginning of a cember, the JODI data showed. laysia’s state oil company Petronas in The Saudi move deeper into refi neries The primary listing will be on Saudi by 2030,” Aramco’s Nasser said. long-term strategy of Saudi Arabia to Domestic oil inventories peaked a refi nery and petrochemical project and petrochemical plants would likely Arabia’s domestic exchange, and Riyadh Ultimately, the big prize is China, open itself to Asian investors and vice in October 2015 at a record high known as RAPID (Refi nery and Petro- help the potential valuation of Aramco is also looking at New York or London where Saudi Arabia signed deals that versa” as part of its Vision 2030 policy 329.430mn barrels and have chemical Integrated Development). in what could be the world’s largest- for the secondary listing. could be worth as much as $65bn during to diversify its economy beyond crude declined since. Under construction in Malaysia’s ever initial public off ering. Aramco’s joint ventures in Malaysia, the last leg of the king’s Asian tour, cov- exports. Gulf Times Tuesday, March 21, 2017 3 BUSINESS

Egypt to introduce stamp duty in May, targets 1.5bn pounds in revenues

Reuters Egypt’s finance minister said last month “It will be imposed on all listed and more than 350mn Egyptian pounds in The Higher Investment Council last bank took the historic step of floating Cairo the government planned to introduce unlisted papers whether they are revenues before the levy was replaced year extended the suspension of capital the currency. a stamp duty of 0.125% on buyers and shares or bonds or over the counter,” in July 2014 by a 10% capital gains tax. gains tax until 2020 as part of eff orts to Together, the moves unleashed a sellers of stocks, rising to 0.150% in the he said. The government suspended the capital draw investors back. deluge of investment in the Egyptian Egypt’s new stamp duty on stock second year and 0.175% in the third. The finance ministry is targeting gains tax in May 2015 for two years, Instead, Egypt plans to revive the stock market, which hit record highs. exchange transactions will come into But Munayer told Reuters yesterday revenues of 1bn-1.5bn Egyptian pounds under pressure from investors. stamp duty as part of an economic The blue-chip index was roughly eff ect in May and include for the first the stamp duty would apply to a wider ($54.8mn-$82.2mn) in the first year They said it was discouraging business reform programme that helped it unchanged on yesterday’s news. time a 0.3% levy for investors acquiring ranger of instruments and the higher of the new tax, he said in a telephone just as Egypt was struggling to recover win a $12bn three-year loan from More than 270 companies are listed on more than a third of a company’s duty would be imposed on mergers and interview. from a plunge in confidence after a the IMF. the Egyptian stock exchange and more stocks, deputy finance minister Amr acquisitions where more than 33% of a Egypt imposed a stamp duty on buyers 2011 uprising and subsequent political Egypt won final approval for its IMF than 500,000 investors are registered al-Munayer said. company was being sold. and sellers in May 2013, collecting upheaval. programme just days after the central to trade there.

‘Turkey buyers put Russia wheat Opec leans towards cut deals on hold, despite ban denial’

Reuters extension, but wants Moscow/Hamburg

urkish buyers have put purchases of Russian agricultural products – mainly Twheat, maize (corn) and sunfl ower oil – on hold, despite denials from Ankara that it has eff ectively banned imports from Moscow, trade ‘non-members to be in’ and industry sources said yesterday. Last week, import licences issued by the Reuters the industrialised world to fall Turkish government no longer included Rus- Dubai/London to the average of the past fi ve sia in a list of accepted tax-free origins, the years. sources said, suggesting an import tariff of According to the most re- 130% could be applied to supplies from Rus- pec oil producers cent data, for January, inven- sia. increasingly favour tories of crude and refi ned Turkey’s Economy Ministry said on Friday Oextending beyond products stood 278mn barrels media reports it had banned imports of certain June a pact on reducing above this level. products from Russia were wrong. crude supply to balance the Five other Opec sources However, one trader, speaking on condition market, sources within the said it was increasingly clear of anonymity due to the sensitivity of the mat- group said, although Rus- that the market needed more ter, told Reuters: “The exports from Russia to sia and other non-members than six months to stabilise Turkey remain suspended. My understanding need to remain part of the but added that all producers is that Turkish customs have instructions not initiative. – in Opec plus non-members to allow the discharge of vessels with Russian The Organization of the Pe- – had to agree. wheat, corn, sunfl ower oil and other grain and troleum Exporting Countries “The ministers will meet in agricultural products.” is curbing its output by about May to decide, but everyone According to that trader, and another, a del- 1.2mn bpd from January 1 for has to be on board,” an Opec egation of Turkish milling companies was set to six months, the fi rst reduction source from a major producer meet with the government and Turkey’s state in eight years. said. grain board TMO in Ankara yesterday. Russia and other non-Opec Opec next meets to decide Turkey is the second largest Russian wheat producers agreed to cut half output policy on May 25 in importer after Egypt and one of the largest as much. Vienna. markets for Russian maize and sunfl ower oil. The deal has lifted oil pric- There will also be a gather- For Turkey’s fl our millers, Russian wheat is es, but inventories in indus- ing in May of Opec and non- one of the most important sources of supply. trial nations are rising and Opec producers, Opec sec- “Nothing has changed so far, we are waiting higher returns have encour- retary-general Mohammad and are not buying anything,” a Turkish im- aged US Barkindo said last month. porter of Russian grains said. companies to pump more. “Hard negotiations are on Some market players said Turkey might be A growing number of Opec the way,” another one of the trying to speed up negotiations over tomato offi cials believe it may take sources said. and other vegetable supplies to Russia, which longer than six months to re- Russia, the largest of the Moscow is yet to resume despite an improve- duce stocks. 11 outside producers working ment in relations after an earlier dispute. “An extension is needed to with Opec, has not publicly The disruption of supplies to Turkey could balance the market,” an Opec said whether it supports ex- add further pressure to Russia’s domestic grain delegate said. “Any extension tending the supply cut, but is market, which already has high stocks after a of the cut agreement should wary about the revival of US record grain crop a year ago, trade sources said. be with non-Opec.” shale output due to higher oil Opec sources told Reuters in February that the group could extend the supply-reduction pact, or even apply It is also a chance for Ukraine, Russia’s ri- Opec sources told Reuters prices. deeper cuts from July, if inventories fail to drop to a targeted level val in grain supplies via the Black Sea, to build in February that the group “It’s too early to know up its grain exports to Turkey, some of them could extend the supply- whether everyone will agree production – whose growth Opec ministers and sourc- grow by about 300,000 bpd force and have to make a hard added. reduction pact, or even ap- to this,” a source from a non- added to the oversupply that es, however, have said they this year – a level the market choice between losing part of There was a spike of interest in Ukrain- ply deeper cuts from July, if Opec participant in the deal battered oil prices in mid- don’t see a large rebound in could accommodate. “Opec their market share or steady ian grain from Turkish buyers last week, but inventories fail to drop to a said, referring to prolonging 2014 – has restrained the rally 2017. heavyweights such as Saudi income,” said a source from no large deals have been signed so far because targeted level. the output curb. this year and may worry Opec One Opec source said shale Arabia are not happy with a major non-Gulf Opec pro- traders are waiting for more clarity from the The group wants stocks in The revival of shale oil leaders. production was expected to the return of shale oil in full ducer. Turkish side, two Kiev-based traders said.

DP World optimistic on emerging Dubai starts markets, unconcerned by Trump desert solar

Reuters International Monetary Fund (IMF), trade with other countries. He wants Dubai compared with an average global other countries to open their mar- plant as part growth rate of 3.4%. DP World, one kets,” he said. of the world’s largest port operators, DP World operates ports in China DP World, an operator of ports will spend $1.2bn this year, adding ca- and Canada, two countries tar- of world’s from Algeria to Peru, is optimistic pacity at its flagship Jebel Ali port in geted by Trump’s vow to make steep about growth in emerging markets, Dubai and in ports in China, Senegal, changes to US trade policy. undeterred by US President Donald Somaliland, Canada and the UK. Trump, who has pulled the US out of biggest park Trump’s pursuit of protectionist It will also expand in Ecuador, where a 12-nation trade pact that includes trade policies. it won a 50-year concession last year many Latin American countries, has The Dubai-controlled company’s to develop a port in the country’s said he will renegotiate a multilateral Bloomberg chairman said he expects growth in south-west, bin Sulayem said. trade deal with Mexico and Canada Dubai Latin America, Asia and Africa. Earlier the company reported a and threatened to impose tariff s on “We see some good times,” Sultan 27.6% increase in full year profit to Chinese imports. Ahmed bin Sulayem told reporters $1.13bn for 2016. DP World, which was forced to sell ubai’s government-owned util- on a conference call yesterday. Bin Sulayem said he did not believe US port assets in 2006, is open to ity completed a 200-megawatt Emerging markets and developing Trump’s protectionist policies would re-entering the US market, he said, Dpower plant one month ahead economies are projected to expand aff ect trade. adding that there are no immediate of schedule as part of a plan to build by 4.5% this year, according to the “He’s trying really to balance the plans. the world’s largest solar energy park by 2030. The 1.2bn dirham ($327mn) solar plant in the Dubai desert, led by de- veloper ACWA Power International of Saudi Arabia, was scheduled to be completed in April, said Saeed Mo- hammed al-Tayer, chief executive of- fi cer of the emirate’s utility. Al-Tayer said Dubai Electricity and Water Au- thority will buy power from the plant for 5.6 cents per kilowatt-hour, which was the lowest cost globally for so- lar power at the time the project was awarded in January 2015. Since then, DEWA has contracted power at an even lower price of 2.99 cents for another facility. Dubai plans to have 5,000 mega- watts of solar capacity at the park by 2030 as it seeks to reduce reliance on natural gas as the main source of en- ergy for electricity. A man walks past a DP World sign in Dubai (file). The company’s chairman said he expects growth in Latin The solar plant started yesterday will America, Asia and Africa. produce enough electricity for 50,000 homes. Gulf Times 4 Tuesday, March 21, 2017 BUSINESS

Man Group joins pivot to Fed chief surprises hedge funds local currency EM debt that cut gold bets before rally Bloomberg Hong Kong Bloomberg New York hen it comes to emerging-market anet Yellen’s soothing words on the Wsovereign debt, Man pace of US interest rate hikes were a Group is going local. Jday late for hedge funds losing faith The world’s largest publicly in the metal. traded hedge fund is fi nding bet- Money managers cut their bullish ter value in local currency bonds bets on bullion by the most since 2015 compared with their hard currency in the week ended March 14. The next equivalents, which have become day, Federal Reserve Chair Yellen re- a crowded trade. Local debt has iterated that monetary policy will re- turned a corner in 2017, providing main accommodative for “some time,” more than double the returns of easing market fears that there might be dollar-denominated developing- more than three rate hikes this year. Her country bonds after delivering words sparked the biggest gold rally losses over the past three years, since November. Bloomberg Barclays indexes show. Gold, which climbed through the “On the hard currency side, fi rst two months of the year, had we think there is a lot of com- foundered in March as the prospect of placency,” said Lisa Chua, port- higher borrowing costs curbed the ap- folio manager for emerging peal of non-interest-bearing assets. market debt for Man GLG, a unit Yellen’s remarks came as the Bank of of London-based Man Group. Japan maintains its unprecedented “On the local-currency side, monetary easing programme and the medium term we think there is Bank of England holds its benchmark value there. We think a lot of risk rate at a record low, helping to keep around Trump has been priced yields on trillions of dollars’ worth of in over the medium term.” debt below zero. Man Group joins BNP Pari- “The fact that we still have stimula- bas Investment Partners and tive measures, the fact that we still have JPMorgan Chase & Co’s private negative rates out there - that gener- bank division in turning bull- ates uncertainty in people’s minds,” ish on local-currency credit. said George Milling-Stanley, the head Investors have pumped $4.5bn of gold strategy at State Street Glo- into domestic debt this year, bal Advisors, which oversees $2.47tn. EPFR Global data show, as they “There’s still an awful lot of things out look past the threat of US policy there that are supportive of gold in the tightening and President Donald short-to long-term.” Trump’s protectionist rheto- The funds reduced their gold net- ric. Overseas funds have rapidly long position, or the difference be- boosted their overweight posi- tween bets on a price increase and Gold, which climbed through the fi rst two months of the year, had foundered in March as the prospect of higher borrowing costs curbed the tions in Brazil and Russia the wagers on a decline, by 47% to 49,835 appeal of non-interest-bearing assets past six months amid gradual futures and options contracts in the gains for Indonesia, according to week ended March 14, according Bloomberg Barclays Global Aggregate from the French elections to the UK’s stockpiles before the festival and wed- als, said Chad Morganlander, a money a Goldman Sachs Group survey. to US Commodity Futures Trading Index of investment-grade bonds have formal exit from the European Union ding period that starts next month. manager at Stifel, Nicolaus & Co in Analysts are forecasting gains Commission data released three days fallen below zero, meaning they’re cer- will bolster haven demand. Price dips The precious metal’s rebound has Florham Park, New Jersey, where he for more than half of the emerg- later. That was the biggest decline tain to lose money if held to maturity. toward $1,200 are “attractive entry also been driven in part by risks to glo- helps oversee more than $200bn. Fed ing-market currencies tracked by since December 2015. While the Fed funds rate rose by a quar- levels,” she said in a report March 16. bal growth, the lack of clarity on US tax policy makers have pencilled in two Bloomberg by the end of this year, As traders awaited the Fed meet- ter point to 0.75% to 1% last week, that A pick up in seasonal demand from In- reform and “persistent doubts” about more quarter- point rate increases this and BNP Paribas Investment ing, gold futures in New York dropped upper-band of the range is still well be- dia also limits the downside risk in the the US infrastructure plan by Presi- year and three in 2018. Partners also predicts the dollar in the fi rst part of last week. Yellen’s low the average of 5.18% over the past near-term, Cooper said. dent Donald Trump, Morgan Stanley “The broader trend is still negative” will depreciate against most of statement on March 15 then reversed four decades. Gold imports by India, which com- analysts including Tom Price wrote in for gold, said Rob Haworth, a Seattle- the developing-nation curren- those losses, sending the metal up 2.5% The negative yields give an advan- petes with China for the role of world’s a note March 13. Still, they said they based senior investment strategist at cies in 2017. The Federal Reserve to $1,230.20 an ounce at the close on tage to gold, which some investors biggest consumer, jumped 175% to 96.4 remain “long-term bears because of US Bank Wealth Management, which raised its benchmark lending rate March 17, the biggest two-day gain consider a store of value and a hedge metric tons in February from a year ear- stable global growth, and “pro-active oversees $138bn. “It’s going to be hard a quarter percentage point last since November 2. Prices added 0.2% against infl ation. lier, according to a person familiar with infl ation management.” to sustain the gains with economic week, without accelerating the yesterday to $1,232.80. There are other tailwinds support- provisional data from the fi nance min- Investors also may be underestimat- growth still pretty solid, the Fed look- timetable for future increases. Yields on more than $8tn in gov- ing bullion. Standard Chartered analyst istry who asked not to be identifi ed as ing how eventual monetary tightening ing to raise rates and some prospect for The “Fed’s rates hikes are al- ernment and corporate debt in the Suki Cooper said political uncertainties the data aren’t public. Jewelers boosted could hurt the appeal of precious met- fi scal policy support before year end.” ready priced in, so there’s no ad- ditional strength for the dollar, and emerging market currencies look very cheap at the moment,” said Jean-Charles Sambor, dep- uty head of emerging-market Bond market calm is threatened by Fed’s $1.75tn MBS shift fi xed income at BNP Paribas In- vestment Partners. “The bull run of the dollar for the last couple Bloomberg bated swings in the Treasury market. convexity, that means its price rises ing back their MBS re-investments as swing in growth and infl ation contin- of years - this trend might have New York “You’ll inevitably see more volatil- more than it falls when yields move. soon as the fourth quarter. (Most pre- ues and share prices keep rising, said been over at the end of 2016.” ity,” said David Ader, the chief macro When it’s negative, like mortgage debt, dict the fi rst or second quarter of 2018.) Dominic Konstam, Deutsche Bank’s In Asia, BNP Paribas Invest- strategist at Informa Financial Intel- its price falls more. When rates rise, “This is a story that will play out over global head of rates research. ment Partners likes Indonesian s far as bond buyers go, the Fed- ligence. hedging against convexity grows as the the course of a couple years,” said Jason “That switch can fl ip if there’s a real and Indian local sovereign cred- eral Reserve is pretty laid-back. In 2003, a surge in “convexity hedg- expected life of mortgage debt increas- Callan, head of structured products at breakout of the secular-stagnation sto- its, as well as some local currency A Even as the central bank ing” triggered widespread losses in es. That happens when refi nancing Columbia Threadneedle Investments, ry,” he said. bonds from banks or quasi sover- amassed trillions of dollars of debt to Treasuries as benchmark yields soared slows, and tends to leave holders more which oversees about $500bn. “This More volatility could make it harder eigns, such as in Russia. Sambor prop up the economy following the fi - 1.45 percentage points in two months. vulnerable to losses. won’t be a big bang type eff ect, yet for investors, but any pick-up in trad- also expects Brazil’s real and the nancial crisis, it didn’t hedge its hold- Nobody is predicting anything close to But by protecting against those po- there is certainly reticence in the mar- ing would be a big win for Wall Street. Mexican peso will appreciate fur- ings or worry about gains and losses a repeat. tential losses (selling Treasuries or ketplace as to when the Fed’s reinvest- Big banks, facing a profi t squeeze in ther and lure infl ows into those that might keep ordinary investors up After all, the biggest hedgers back entering into swaps contracts are two ment announcement will happen and recent years, curtailed trading in mort- markets in the longer run. He at night. then were government-sponsored en- ways), traders can end up making the what it will look like.” gage-backed securities, and in some believes the risk of the Fed being This extreme buy-and-hold stance tities like Fannie Mae and Freddie Mac, bond market more turbulent. That’s al- Minneapolis Fed President Neel cases, completely exited the business. seen as hawkish is limited. has had an incredible calming eff ect on which now own just a fraction of what ready starting to happen. Kashkari, the only offi cial to vote Trading desks may also see a boost as On China, the world’s biggest the bond market. Volatility has plum- they did and aren’t coming back. On March 9, analysts say hedging against this month’s rate hike, added investors unwind positions they were emerging market, Man Group’s meted to lows rarely seen in recent But at a time when beleaguered bond activity was triggered when 10-year new urgency to the discussion when forced into when the Fed bought up the Chua expects the nation’s cur- memory. investors are grappling with higher yields hit 2.55% and then 2.6%, which he said last week that he would prefer all MBS, according to Mark Tecotzky, rency “will probably need to But all that is now poised to change. rates and the potential consequences of in turn, pushed yields to a three-month the central bank announce a plan that co-chief investment offi cer of Elling- continue to depreciate,” but it’s With interest rates on the rise, ana- the Trump administration’s spending high of 2.628% March 14. They slipped explains how and when it will begin to ton Residential. unlikely to be extreme. lysts say the Fed could start shrinking plans, the prospect of more volatility to 2.50% yesterday. reduce its balance sheet before boost- “It will result in better profi tabil- “EM has been sold off for its unprecedented $1.75tn position in adds yet another thing to their list of Tighter monetary policy may accel- ing rates again. ity for banks,” said Brad Scott, head of many years and people have very mortgage-backed securities (MBS) by worries. erate hedging. The Fed lift its bench- It’s not just hedging in the MBS mar- trading at RBC Capital Markets in New light positions on EM bonds,” year-end. That’s likely to leave more What exactly is convexity? At its mark rate a quarter-percentage point ket that could hit Treasuries. Insurers, York. Wall Street “will have more op- Ben Sy, head of fi xed income, in the hands in private investors and most basic, it’s a measure of a bond’s last week and signalled two more hikes which have been buying protection portunities based on higher volatility, currencies and commodities result in increased hedging activity, a relative sensitivity to changes in in- this year. A few fi rms like RBC Capital against lower yields for years, may now and there will be more participants that at JPMorgan’s private-banking practice that has historically exacer- terest rates. When a bond has positive Markets say Fed offi cials will start par- do the opposite, especially if the up- are likely to enter the market.” unit in Asia. Nickel markets can shrug off any Philippine mining ban

By Clyde Russell ban “and then we’ll talk”, referring to customers to invest in a domestic 95% of the total, but China is also increasingly turning to low quality suggested last year it could be as much Launceston, Australia miners. processing industry. buying less nickel ore overall, with total Indonesian ferronickel. as 15mn tonnes in 2017, about a quarter The Philippine leader has said his The price of benchmark nickel in imports slipping 9% in 2016 to 32.1mn This will have implications for the of the amount the country shipped out Southeast Asian nation can live London surged some 57% from early tonnes. workings of Chinese nickel pig iron in 2013, the year before the ban was Just how worried should nickel markets without a mining industry, and in broad January in 2014 to May of that year, China is still getting all of the nickel it producers, but overall it seems that imposed. be about the latest threats by Philippine terms he is correct, with the sector but then embarked on a downward needs, simply by increasing the amount China is far from short of the metal It’s also about half of what the President Rodrigo Duterte to stop all contributing just 0.6% directly to gross trajectory, before recovering last year it buys in more refined forms. used to make stainless steel and other Philippines shipped to China last year. mining in the world’s biggest exporter domestic product in 2016, according to in line with a more general rally in Chinese customs classifies nickel corrosion-resistant alloys. If Indonesia does increase exports of of the metal ore? Probably not too data from the government’s Mines and commodity prices. imports into refined nickel and alloy, A further sign of comfort in the Chinese nickel ore, while maintaining those much. Geosciences Bureau. The reason for the price surge was the ores and concentrates, and ferronickel. nickel market is that inventories of its low-grade ferronickel, the risk is The reason to be relatively sanguine While mining will make a bigger fear that the loss of Indonesian supplies Imports of ferronickel surged 60% in monitored by the Shanghai Futures that the market will be oversupplied, about the prospects for nickel supply overall contribution to the economy would substantially tighten the nickel 2016 from the prior year, with Indonesia Exchange are still at relatively high irrespective or whether the Philippines isn’t that Duterte is unlikely to follow up once the services it consumes and the market, but the rally faltered once storming back with a 250% increase to levels. bans mining or not. on his latest threat, although he may employment it provides are factored in, it become clear that Chinese nickel 747,097 tonnes, a 71% share. In the week ended March 13 nickel In some ways Indonesia and the not. it’s likely true that the Philippines can producers could access alternative It’s worth noting that Indonesian stocks were 80,795 tonnes, down from Philippines have been playing an It’s that even if he does, the market is live without a mining sector. suppliers. ferronickel isn’t actually the same the peak in August last year of 111,359, unwitting game of political tag when likely to be able to cope with the loss of But can nickel markets live without One of the main alternatives was as supplies from other countries, but still well above the 43,708 recorded it comes to nickel markets, alternately Philippine nickel ore, despite having to the Philippines, particularly China, the Philippines, which ramped up being less refined and having a lower at the start of 2016. tightening or boosting supply and make some short-term adjustments. the destination of the bulk of the its exports of nickel ore to China as concentrate of nickel, as can be seen by It’s also possible that Indonesia will altering the form in which nickel In the latest twist to Duterte’s ongoing Philippines’ exports of unrefined ore. Indonesia’s dropped to zero by 2016. Chinese customs data that showed in resume exports of nickel ore after reaches China. battle with his country’s miners, the The short answer is most likely yes, But China has been buying less December it was less than half the price the government introduced new But the nickel market has shown it can bombastic and populist leader accused with the experience of Indonesia’s ban Philippine nickel ore in recent years, of cargoes from New Caledonia, the regulations that allow miners to export cope with the inconsistent politics of them of funding eff orts to destabilise on its nickel ore exports in 2014 being with purchases falling 5.9% in 2015 to second-biggest supplier. some unprocessed ore if they are using Indonesia and the Philippines. his government, and mooted a total instructive. 34.28mn tonnes and dwindling another What has eff ectively happened is the capacity at their refineries. ban on mining. Indonesia banned the export of several 11% in 2016 to 30.53mn tonnes. that the Philippines initially replaced While it’s far from certain as to how „ Clyde Russell is a columnist for Duterte told a March 13 media briefing unrefined metal ores in January 2014 The Philippines still dominates China’s Indonesia in supplying nickel ores much nickel ore Indonesia may export, Reuters. The views expressed are those that he was looking at a total mining in a bid to encourage miners and imports of nickel ore, accounting for to top buyer China, but now China is an off icial at the mines ministry of the author. Gulf Times Tuesday, March 21, 2017 5 BUSINESS Russia’s currency war flounders with central bank on the fence

Bloomberg is spending 3.2bn roubles Moscow ($55.6mn) daily to buy foreign exchange. The ministry has already bought Russia’s latest eff ort to talk $500mn for its foreign-currency down its currency is misfiring, obligations this year and leaving the ball in the central could buy “at least $1bn” more bank’s court days before it because “it makes sense to buy reviews interest rates. foreign currency” at current A warning by Finance Minister levels,” Siluanov told reporters Anton Siluanov that the rouble’s in Baden- Baden, Germany, on current level is about 10-12% the sidelines of a Group of 20 “overvalued compared to meeting. fundamental valuations” barely The Finance Ministry conducts registered with investors. such operations directly with Similar comments a week ago the central bank, and it’s started by the economy minister - who to announce and comment on pointed out that its strength them this year in a departure exceeded fundamentals - and from previous practice. The Siluanov’s own remarks early central bank decides whether to this month that the exchange mirror such transactions on the rate was “attractive” for buying open market. It’s opted not to foreign currency, have done buy foreign currency in March, little to take the edge off the according to the Treasury. Employees work in the reception area at the Micex-RTS Moscow Exchange. The benchmark Micex index has dropped 8.6% this quarter, compared with a gain of 13% for the rouble’s rally. The rouble’s status as one MSCI Emerging Markets Index. The verbal interventions have of the most appealing carry been beside the point because trades in emerging markets has the central bank is sticking with undermined the government’s its free float while keeping rates eff orts to slow the pace of on pause since September, appreciation. The currency has making the rouble a magnet for strengthened more than 6% this carry traders as borrowing costs year even though Brent crude remain near historical lows prices have declined almost across developed economies. 10%. World’s best dividends Although policy makers in “The rouble is overvalued by Moscow will have a chance at least 8% at current oil prices to narrow the rate diff erential around $51.50 per barrel,” when they meet on Friday, said Alexey Tretyakov, money most economists surveyed by manager at Aricapital Asset Bloomberg predict the 10% Management in Moscow. “This benchmark will remain on hold. overvaluation in real terms is beckon as Moscow “As before, the only two factors growing by the day.” that matter for the rouble are Russia’s real key rate is above the interest-rate diff erential 6%, VTB Capital estimates, using and oil prices,” said Alexander its inflation projections. The Losev, chief executive off icer of mean analyst forecast for the Sputnik Asset Management in exchange rate by the end of the Moscow. “All the rest are ‘ripples second quarter is 60.25 roubles lags emerging peers on the water’s surface.’” per dollar, about 5% from The rouble slipped initially after current levels. Bloomberg dividend yields - such as Russia - may remain concerned about the two other stock market has an attractive dividend Siluanov’s comments were The central bank has so far Moscow outperform. factors that typically defi ne their interest yield. However, it’s a premium for risk reported yesterday, but then declined to join a drumbeat of “In other markets, such a yield costs in Russian assets. They are watching the and volatility. It’s a bad idea to count just recovered some of the losses. concern about the currency’s double in stock valuations,” said Ekaterina oil-price outlook and the contours of the on the dividends, because if the stock As oil prices fell, the Russian strength. It’s made a resumption he world’s most generous dividends Iliouchenko, a money manager at Union US-Russian relationship. falls 10% to 15% in one week, a high divi- currency traded 0.6% weaker of foreign-currency purchases for are going a-begging as the strongest Investment in Frankfurt, who oversees Here are some more investor views on dend yield won’t compensate for it. at 57.55 against the dollar in reserves conditional on meeting Tquarterly rally since 2012 in emerg- about $215mn in eastern European assets. the attractiveness of Russian dividend “If the sanctions are lifted, the shares Moscow. its inflation target of 4%, according ing markets leaves Russian stocks behind. “While the Trump rally is over, unless oil yields: Elena Loven, who helps man- will rise and the dividend yield will drop The rouble has kept up gains to the head of its monetary Investors are ignoring an estimated pay- collapses, strong crude and good corpo- age more than €1bn ($1.1bn) in Russian to 4%. Despite Russia’s high dividend in the past month even as oil policy department, Igor Dmitriev. out of 5.3% in the next 12 months as they rate fi nancial results should bring inves- stocks at Swedbank Robur in Stockholm: yield, one can lose a lot and very quickly declined. As a result, the price The central bank, which in 2015 dump Moscow-listed shares on concern tors back to the Russian market.” “The high dividend yield is an argument on the market’s decline.” of benchmark Brent crude in announced a goal of boosting the US won’t ease sanctions on Russia as The benchmark Micex index has in Russia’s favour. However, the dividend Mattias Westman, the London-based rouble terms has fallen to the reserves to $500bn in the long quickly as previously expected. The divi- dropped 8.6% this quarter, compared yield alone isn’t enough for the Russian founder of Prosperity Capital Management, lowest level in four months, term, hasn’t bought foreign dend yield is the highest among markets with a gain of 13% for the MSCI Emerg- market rally to resume. It needs a diff er- which oversees about $3.4bn in assets from hurting Russia’s energy- currency for more than a year. with at least $100bn in capitalisation and ing Markets Index. That’s made Russia ent trigger. I think the Russian market can Russia and former Soviet republics: “The dependent budget. February inflation eased to 4.6% is even higher than sovereign-bond yields. look cheap. Micex stocks off er the high- go lower from current levels. Right now, high dividend yield is very attractive. It The Finance Ministry has tried a from a year ago. Price growth But Russia still can’t attract infl ows. est dividends relative to their peers since the stock market isn’t so cheap anymore. shows that Russian companies are highly number of measures to weaken is on track to fall to the central As the performance gap widens be- 2008. Earnings estimates on the dollar- “Many investors are turning nega- cash-fl ow generative and that capex disci- the rouble, whose strength bank’s 4% target by year-end, tween Russia and the rest of emerging denominated benchmark, the RTS Index, tive on oil’s prospects, the optimism pline is much better than some years ago. has hurt Russian exporters. On with the economy set to gain markets, the case for buying Moscow have increased three times as fast as the that sanctions will be eased quickly has “The market is driven by many things, top of verbal interventions, it’s 1.5-2%, according to Siluanov. shares is getting stronger. Some inves- MSCI gauge in the past 12 months. soured. People are taking profi ts and including geopolitical speculation and started a programme to use “The economy needs a free- tors are turning cautious on the rally The biggest Russian equity exchange- don’t have high hopes for the market. It commodity prices. But over time, only windfall revenue from higher- floating rouble,” Dmitriev said from India to South Africa and Mexico, traded fund, VanEck Vectors Russia, had doesn’t make sense to buy Russian stocks cash fl ow determines the value of com- than-forecast oil prices to in an interview. “There’s no as valuations become expensive and an infl ow of $17.5mn on Friday, the largest just for the sake of dividends.” panies and these dividends are very purchase foreign currency. This absolute evil or good in a strong volatility tightens to levels that preced- since January 30. The Micex gained 0.2% Sergey Vakhrameev, a money manager helpful. In addition, Russia investors will month, the Finance Ministry or weak rouble.” ed market declines in the past. If those in Moscow yesterday. While Micex valu- at GL Financial in Zurich, which oversees receive large dividend fl ows and much of markets stall, a portfolio with higher ation measures are tempting, investors about $100mn in assets: “The Russian this will probably be reinvested.” Sensex ends lower; rupee Asia markets turn bearish again strengthens further

AFP Agencies Hong Kong Mumbai

ost Asian markets slipped BSE Sensex and Nifty fell yesterday, taking yesterday following last a breather after the Nifty scaled an all- Mweek’s broad advances, time high last week, as software services with the dollar suff ering fresh sell- exporters remained under pressure on ing pressure after the Federal Re- worries about a stronger rupee. The BSE serve hinted at a slower-than-ex- Sensex closed lower by 130 points, or 0.44%, pected pace of interest rate hikes to 29,519, while the Nifty 50 fell 33 points, or this year. 0.36%, to 9,127. With few events to drive buying, Idea Cellular fell as much as 14.57%, The rupee closed at 65.36 per dollar investors took a step back follow- reversing earlier gains of 14.25%, after the yesterday, a level last seen on ing a recent rally across global trad- telecom services provider said it would October 30, 2015 ing fl oors while there is a nagging merge with Vodafone’s Indian operations. fear that President Donald Trump’s Although traders had initially reacted shareholding limit up to 49%. Meanwhile promised tax cuts and spending positively to the news, doubts about Idea’s the rupee yesterday strengthened further splurge could come later than hoped. valuations after the merger sent shares to close near a 17-month high against the US “Positive catalysts to further downward, according to traders. dollar after foreign investors continued to moves higher appear to be lacking at Still, overall sentiment remains positive on buy in local equity and debt markets. the moment,” said Greg McKenna, hopes for additional economic reforms from The currency closed at 65.36, a level last chief market strategist at AxiTrader, the government. India’s cabinet approved seen on October 30, 2015, up 0.18% from in a note. “The delay on the details of four bills to implement a planned Goods Friday’s close of 65.48. The rupee opened at (Trump’s) tax plan is a risk for stocks and Services Tax (GST), a government 65.39 a dollar and touched a high and low of if US data starts to disappoint.” off icial said yesterday, paving the way for 65.31 and 65.47, respectively. Wall Street provided a damp lead the country to implement the landmark tax The rupee is the third best-performing Asian with the Dow and S&P 500 ending Bull statues are displayed outside the Hong Kong Stock Exchange. The Hang Seng closed up 0.8% to 24,501.99 reform from July. currency this year after the South Korean lower Friday. points yesterday. But concerns about share valuations and a won and Taiwanese dollar, rising 4% since In Asian trade Hong Kong rose lack of big events are likely to keep trading January. So far this year, foreign institutional 0.8% to levels not seen since August year, confounding talk of a possible were concerns about Trump’s plans Cellular reversed an early rally to range-bound, analysts said. “We have moved investors have bought $3.98bn and $1.23mn 2015 and Shanghai edged up 0.4% three or four. for global trade after his Treasury sink 7% after announcing it would to an event vacuum stage as the quarterly from local equity and debt markets, but Sydney shed 0.4%, Seoul also The greenback retreated against Secretary Steven Mnuchin refused merge with British telecoms giant results are some two-three weeks away. We respectively. gave back 0.4% and Singapore was the yen and euro as well as most to renew past anti-protectionist Vodafone’s Indian unit to make the have little of major events now. After testing The 10-year bond yield closed at 6.893%, 0.5% lower. other high-yielding currencies in- pledges at a G20 gathering. country’s biggest operator. the 9,200 levels (in Nifty), markets have little compared with Friday’s close of 6.863%. Bond Wellington tumbled 1.4%, hit by cluding the Australian dollar, South Commitments of support to the The news followed months of to fuel further rally. Investors are looking for yields and prices move in opposite directions. a 10% dive in market giant Fletcher Korean won, Thai baht and Indone- existing multilateral trade system, speculation they were ready to sign bargains,” said Anand James, chief market Asian currencies were trading higher after the Building, which cut its profi t fore- sia’s rupiah. including the World Trade Organi- a deal to help fend off Reliance Jio, strategist at Geojit Financial Services. dollar index weakened to a five-month low cast citing huge losses on a key con- “The less hawkish stance by the sation, were also conspicuously whose recent arrival has shaken up The IT sector accounted for around 50% after a measure of US inflation expectations struction project. Japanese markets Fed has opened the door for lo- missing from the fi nal communique India’s ultra-competitive mobile of the losses on the Nifty50 index, led by dropped to a record low. were closed for a public holiday. cal (emerging market) trade, even from the fi nance ministers’ gather- network market. Infosys which was down around 2%. The South Korean won was up 1%, In foreign exchanges the dollar more so with the stronger-than- ing at the weekend. In Hong Kong, the Hang Seng Among the gainers, Kotak Mahindra Taiwanese dollar 0.51%, Thai baht 0.35%, was down against most other cur- expected Chinese data last week, The move follows Trump’s warn- closed up 0.8% to 24,501.99 points Bank was up 1.23% after the bank said Singapore dollar 0.3%, Indonesian rupiah rencies after the Fed on Wednesday adding to the global dollar squeeze,” ings to throw up levies and revise and Shanghai – Composite edged on Friday that it would seek approval 0.23%, Malaysian ringgit 0.15% and lifted borrowing costs as expected said OANDA senior trader Stephen global agreements he says are unfair up 0.4% to 3,250.81 points at the from shareholders to raise the foreign Philippines peso 0.11%. but pointed to another two rises this Innes. Adding to market unease to the United States. In Mumbai Idea close yesterday. Gulf Times 6 Tuesday, March 21, 2017 BUSINESS

SAUDI ARABIA KUWAIT OMAN

Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume

Saudi Re For Cooperative Rei 8.03 -3.95 4,310,622 Boubyan Intl Industries Hold 24.00 2.13 1,434,405 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 19.59 -5.09 2,118,990 Gulf Investment House Ksc 46.00 0.00 9,333,509 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 19.46 -1.32 928,194 Boubyan Bank K.S.C 420.00 0.00 1,765,880 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 14.45 -0.34 122,338 Ahli United Bank B.S.C 250.00 -1.96 2,753,617 Bankmuscat Saog 0.40 -5.71 753,070 Saudi Printing & Packaging C 17.37 1.82 4,200,808 Osos Holding Group Co 160.00 -1.23 349,500 Bank Sohar 0.15 0.00 2,655 Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 86.00 0.00 20 Bank Nizwa 0.09 0.00 1,317,052 Saudi Paper Manufacturing Co 9.90 -1.00 2,641,873 Qurain Petrochemical Industr 350.00 0.00 1,029,133 Bank Dhofar Saog 0.25 1.63 300,000 Alinma Bank 14.61 0.00 19,685,846 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 4.05 0.00 - Almarai Co 69.50 0.00 242,014 Ekttitab Holding Co Sak 42.00 0.00 2,035,420 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 27.50 -0.36 274,520 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.29 0.00 - QATAR United International Transpo 26.93 -1.25 328,102 Real Estate Trade Centers Co 43.00 3.61 4,360,353 Al-Hassan Engineering Co 0.05 0.00 - Hsbc Amanah Saudi 20 Etf 27.70 0.00 2 Acico Industries Co Kscc 300.00 0.00 241,050 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 17.48 -0.79 243,698 Kipco Asset Management Co 88.00 1.15 109,805 Al-Anwar Ceramic Tiles Co 0.16 0.00 399,089 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 1,240.00 3.33 2,286 Al Suwadi Power 0.18 -3.16 1,292,793 Zad Holding Co 85.20 0.00 921 Saudi United Cooperative Ins 26.74 -1.29 268,404 Alimtiaz Investment Co Kscc 192.00 0.00 11,183,106 Al Shurooq Inv Ser 1.04 0.00 - Widam Food Co 64.60 1.25 5,114 Bank Al-Jazira 15.06 -0.26 2,692,583 Ras Al Khaimah White Cement 100.00 0.00 16,583 Al Sharqiya Invest Holding 0.12 -3.25 14,784 Vodafone Qatar 9.03 0.00 1,632,466 Al Rajhi Bank 63.67 -3.24 2,942,998 Kuwait Reinsurance Co Ksc 192.00 3.23 2,000 Al Maha Petroleum Products M 1.57 0.00 10,000 United Development Co 19.54 0.72 561,890 Samba Financial Group 21.09 0.48 990,246 Kuwait & Gulf Link Transport 68.00 3.03 980,700 Al Maha Ceramics Co Saoc 0.47 0.00 1,062 Salam International Investme 10.53 0.57 27,909 United Electronics Co 34.44 -4.39 392,173 Human Soft Holding Co Ksc 3,020.00 0.67 210,300 Al Madina Takaful Co Saoc 0.10 -1.04 118,425 Qatar & Oman Investment Co 9.90 2.59 1,107 Allied Cooperative Insurance 15.49 0.19 732,348 Automated Systems Co Kscc 275.00 -8.33 301 Al Madina Investment Co 0.07 0.00 162,215 Qatar Navigation 77.00 0.00 141,161 Malath Cooperative & Reinsur 8.60 -0.12 2,944,329 Metal & Recycling Co 76.00 0.00 2,500 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 80.90 4.39 45,350 Alinma Tokio Marine 17.52 0.11 618,304 Gulf Franchising Holding Co 55.00 -3.51 519,197 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 146.90 0.96 272,632 Arabian Shield Cooperative 60.24 -2.74 364,911 Al-Enma’a Real Estate Co 44.50 -2.20 1,737,219 Al Jazeera Steel Products Co 0.23 0.00 5,000 Qatar Islamic Insurance 68.00 0.00 109 Savola 38.80 0.86 190,038 National Mobile Telecommuni 1,180.00 -4.84 59,160 Al Jazeera Services 0.19 0.00 476,550 Qatar Industrial Manufactur 42.70 0.35 7,255 Wafrah For Industry And Deve 23.29 -0.85 346,927 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 0.00 - Qatar International Islamic 68.40 0.15 979,765 Fitaihi Holding Group 12.51 -0.79 212,501 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 64.70 2.70 524,237 Tourism Enterprise Co/ Shams 32.01 -0.77 486,436 Al Salam Group Holding Co 54.00 -1.82 3,825,101 Al Batinah Power 0.18 -2.67 1,969,000 Qatar Islamic Bank 102.00 1.09 60,493 Sahara Petrochemical Co 14.97 -0.13 681,411 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 21.53 0.09 193,109 Herfy Food Services Co 79.47 -0.13 19,312 Al Aman Investment Company 53.00 0.00 1,126,532 Al Batinah Dev & Inv 0.09 -1.16 47,800 Qatar General Insurance & Re 44.50 3.49 143 Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.20 -0.50 360,346 Qatar German Co For Medical 9.60 -0.93 5,995 Manazel Holding 50.00 2.04 12,716,683 Ahli Bank 0.20 0.00 227,100 Qatar Fuel Qsc 136.40 0.74 33,814 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.74 0.00 - Qatar First Bank 8.64 -1.14 1,684,755 KUWAIT Tijara And Real Estate Inves 62.00 0.00 160,070 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 217.50 -1.14 105,373 Kuwait Building Materials 96.00 0.00 19 A’saff a Foods Saog 0.66 0.00 - Qatar Cinema & Film Distrib 26.80 9.84 147 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 580.00 1.75 185,350 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 71.00 -0.84 85,832 Commercial Real Estate Co 84.00 0.00 494,452 Ooredoo Qsc 102.90 0.98 75,138 Securities Group Co 99.00 0.00 101 Future Communications Co 0.00 0.00 - National Leasing 17.44 0.58 40,029 Sultan Center Food Products 66.00 -5.71 439,600 National International Co 73.00 -3.95 1,945,750 Mazaya Qatar Real Estate Dev 13.33 0.60 234,907 Kuwait Foundry Co Sak 305.00 5.17 27,520 Taameer Real Estate Invest C 35.00 -2.78 9,552,910 UAE Mesaieed Petrochemical Holdi 14.70 0.62 98,645 Kuwait Financial Centre Sak 104.00 7.22 56,304 Gulf Cement Co 88.00 0.00 1,119,223 Al Meera Consumer Goods Co 168.50 -2.60 36,634 Ajial Real Estate Entmt 176.00 0.00 19,995 Heavy Engineering And Ship B 210.00 5.00 278,210 Company Name Lt Price % Chg Volume Medicare Group 102.30 0.20 51,952 Gulf Glass Manuf Co -Kscc 325.00 0.00 25,302 Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 82.90 -0.12 3,496 Kuwait Finance & Investment 43.50 6.10 232,768 National Real Estate Co 106.00 0.00 1,753,807 Waha Capital Pjsc 2.21 0.00 637,841 Masraf Al Rayan 41.60 0.24 281,088 National Industries Co Ksc 202.00 1.00 10,000 Al Safat Energy Holding Comp 52.00 1.96 1,730,137 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 14.44 -0.41 119,930 Kuwait Real Estate Holding C 42.50 2.41 563,300 Kuwait National Cinema Co 1,580.00 0.00 1,010 United Arab Bank Pjsc 1.91 0.00 - Industries Qatar 114.40 1.69 149,762 Securities House/The 53.00 0.00 13,654,058 Danah Alsafat Foodstuff Co 99.00 -2.94 4,451,057 Union National Bank/Abu Dhab 4.25 1.19 1,965,521 Islamic Holding Group 64.10 0.79 9,971 Boubyan Petrochemicals Co 580.00 0.00 524,752 Independent Petroleum Group 425.00 6.25 2,500 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 51.40 0.39 87,255 Al Ahli Bank Of Kuwait 305.00 0.00 183,199 Kuwait Real Estate Co Ksc 75.00 0.00 9,250,098 Union Cement Co 1.30 0.00 - Gulf International Services 27.60 -0.90 58,517 Ahli United Bank (Almutahed) 465.00 4.49 292,207 Salhia Real Estate Co Ksc 370.00 -1.33 501 Umm Al Qaiwain Cement Indust 0.95 0.00 - Ezdan Holding Group 15.48 0.78 840,214 National Bank Of Kuwait 750.00 0.00 621,460 Gulf Cable & Electrical Ind 500.00 1.01 134,199 Sharjah Islamic Bank 1.53 -0.41 30,000 Doha Insurance Co 16.30 -6.80 2,060 Commercial Bank Of Kuwait 465.00 0.00 4,536 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 31.40 0.00 43,909 Kuwait International Bank 234.00 -1.68 707,569 Kuwait Finance House 620.00 0.00 4,185,827 Sharjah Group 1.50 0.00 - Dlala Holding 23.50 6.82 585,352 Gulf Bank 246.00 0.00 960,075 Gulf North Africa Holding Co 42.50 0.00 2,152,947 Sharjah Cement & Indus Devel 1.06 1.92 30,000 Commercial Bank Qsc 32.40 1.89 83,892 Al-Massaleh Real Estate Co 50.00 0.00 443,810 Hilal Cement Co 206.00 0.00 17,050 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 34.75 1.61 1,010,704 Al Arabiya Real Estate Co 43.00 -1.15 3,824,110 Osoul Investment Kscc 69.00 2.99 10,700 Ras Al Khaimah White Cement 1.20 0.00 - Al Khaleej Takaful Group 19.40 3.85 121,733 Kuwait Remal Real Estate Co 82.00 6.49 37,455,743 Gulf Insurance Group Ksc 550.00 0.00 17 Ras Al Khaimah Ceramics 2.30 -2.13 26,886 Aamal Co 14.30 -0.49 88,624 Alkout Industrial Projects C 700.00 0.00 5,000 Kuwait Food Co (Americana) 2,500.00 0.00 2,467 Ras Al Khaimah Cement Co Psc 0.82 0.00 - A’ayan Real Estate Co Sak 96.00 0.00 469,306 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.22 0.00 - Investors Holding Group Co.K 29.50 1.72 14,735,085 Aayan Leasing & Investment 50.00 -3.85 13,546,077 Rak Properties 0.73 1.39 3,491,682 Al-Mazaya Holding Co 132.00 0.00 2,359,181 Alrai Media Group Co Ksc 174.00 -1.14 10,000 Ooredoo Qsc 94.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - National Investments Co 118.00 0.00 3,020,325 Oman & Emirates Inv(Emir)50% 0.95 0.00 - Gulf Petroleum Investment 51.00 0.00 15,156,624 Commercial Facilities Co 180.00 0.00 220,000 Nbad Oneshare Msci Uae Ucits 6.26 0.00 - National Takaful Company -1.49 Company Name Lt Price % Chg Volume Mabanee Co Sakc 860.00 0.00 214,374 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.66 20,000 City Group 600.00 0.00 - Afaq Educational Services Co 0.00 0.00 - National Marine Dredging Co 4.50 0.00 - United Wire Factories Compan 23.00 0.52 323,082 Inovest Co Bsc 114.00 -1.72 1,147,400 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.52 0.00 - Etihad Etisalat Co 21.74 -0.28 553,343 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 275.00 10.00 10 National Corp Tourism & Hote 3.00 0.00 - Dar Al Arkan Real Estate Dev 5.95 -0.50 20,137,041 Al-Deera Holding Co 39.00 0.00 1,629 National Bank Of Umm Al Qaiw 2.90 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 385.00 0.00 10 National Bank Of Ras Al-Khai 4.62 -3.55 74,203 Rabigh Refining And Petroche 12.75 -1.47 1,466,508 Mena Real Estate Co 32.00 0.00 2,090,693 National Bank Of Fujairah 3.62 14.92 1,000 Banque Saudi Fransi 24.70 0.20 433,313 National Slaughter House 55.00 -6.78 20,000 National Bank Of Abu Dhabi 10.30 0.49 1,006,128 Saudi Enaya Cooperative Insu 17.04 1.85 1,535,870 Amar Finance & Leasing Co 45.00 0.00 14,600 OMAN Methaq Takaful Insurance 0.81 -3.57 1,232,809 Manazel Real Estate Pjsc 0.55 -1.79 11,874,800 Mediterranean & Gulf Insuran 24.26 1.51 757,011 United Projects For Aviation 840.00 -1.18 7,200 Company Name Lt Price % Chg Volume Saudi British Bank 20.94 -0.38 869,601 National Consumer Holding Co 0.00 0.00 - Invest Bank 2.07 -10.00 3,650 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 88.00 6.02 323,445 Voltamp Energy Saog 0.56 0.00 - Intl Fish Farming Co Pjsc 1.91 -4.50 1,371,202 Red Sea International Co 24.76 -0.88 133,152 Jeeran Holdings 57.00 -1.72 10,000 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.83 0.00 - Takween Advanced Industries 12.23 -1.29 930,385 Equipment Holding Co K.S.C.C 59.00 -1.67 918,119 United Power Co Saog 3.40 0.00 - Gulf Pharmaceutical Ind Psc 2.34 14.71 449,241 Sabb Takaful 28.41 1.90 607,607 Nafais Holding 240.00 0.00 40,480 United Finance Co 0.15 0.00 - Gulf Medical Projects 2.79 0.00 - Saudi Arabian Fertilizer Co 68.09 -0.21 85,464 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.03 -1.90 30,000 National Gypsum 13.63 -0.94 264,074 Arkan Al Kuwait Real Estate 86.00 2.38 155,752 Takaful Oman 0.17 0.00 5,000 Fujairah Cement Industries 0.99 0.00 - Saudi Ceramic Co 28.67 2.03 668,428 Gfh Financial Group Bsc 230.00 0.00 219,944 Taageer Finance 0.13 0.00 100,000 Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 34.45 0.94 134,981 Energy House Holding Co Kscp 39.00 0.00 48,400 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.40 0.00 - Saudi Pharmaceutical Industr 35.80 -0.56 51,004 Kuwait Slaughter House Co 178.00 0.00 10,000 Sohar Power Co 0.22 0.00 - First Gulf Bank 12.80 1.59 2,435,374 Thimar 36.79 0.60 437,689 Kuwait Co For Process Plant 154.00 -6.10 30,929 Sohar Poultry 0.21 0.00 - Finance House 1.75 0.00 - National Industrialization C 16.70 1.15 1,533,951 Al Maidan Dental Clinic Co K 1,220.00 0.00 10 Smn Power Holding Saog 0.70 0.00 - Eshraq Properties Co Pjsc 1.15 -0.86 4,972,904 Saudi Transport And Investme 55.38 -0.57 128,594 National Ranges Company 31.50 0.00 3,322,368 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.90 1.13 936,823 Saudi Electricity Co 23.16 -0.47 762,460 Al-Themar Real International 91.00 0.00 84,809 Shell Oman Marketing 2.01 -0.74 62,000 Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 34.15 -1.13 281,761 Al-Ahleia Insurance Co Sakp 495.00 1.02 153 Sharqiyah Desalination Co Sa 4.50 0.00 - Emirates Driving Company 8.50 3.03 50,000 Arriyadh Development Company 21.17 -0.05 252,155 Wethaq Takaful Insurance Co 59.00 0.00 78,900 Sembcorp Salalah Power & Wat 0.25 0.41 20,000 Dana Gas 0.44 2.33 5,880,806 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 82.00 -1.20 1,484,610 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.80 -9.09 331,288 Saudi Research And Marketing 29.96 1.56 1,042,452 Aqar Real Estate Investments 83.00 0.00 17,800 Salalah Mills Co 1.40 0.00 - Bank Of Sharjah 1.38 0.00 2,169 Aldrees Petroleum And Transp 27.30 0.00 90,280 Hayat Communications 99.00 -1.00 1,060,029 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.72 0.00 - Saudi Vitrified Clay Pipe Co 54.31 0.00 36,879 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.73 -1.35 654,257 Jarir Marketing Co 128.50 1.51 32,565 Soor Fuel Marketing Co Ksc 126.00 -3.08 18,056 Renaissance Services Saog 0.23 0.00 - Alkhaleej Investment 1.32 0.00 - Arab National Bank 19.80 0.00 28,046 Alargan International Real 182.00 0.00 1,000 Raysut Cement Co 1.39 0.73 9,900 Aldar Properties Pjsc 2.40 3.00 9,069,525 Yanbu National Petrochemical 56.96 -0.18 257,788 Burgan Co For Well Drilling 93.00 0.00 5,500 Port Service Corporation 0.29 -0.68 265,897 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 37.80 -0.53 166,576 Kuwait Resorts Co Kscc 86.00 0.00 130,010 Phoenix Power Co Saoc 0.14 -0.70 74,790 Al Khazna Insurance Co 0.41 0.00 24,023 Middle East Specialized Cabl 7.90 -1.62 733,677 Oula Fuel Marketing Co 126.00 -1.56 49,931 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 18.80 0.11 416,821 Palms Agro Production Co 97.00 0.00 12,716 Ooredoo 0.59 0.34 924,777 Al Dhafra Insurance Co. P.S. 3.95 0.00 - Al Sagr Co-Operative Insuran 38.45 0.47 657,032 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.53 0.00 - Al Buhaira National Insuranc 2.16 0.00 - Trade Union Cooperative Insu 18.02 0.61 363,440 Mubarrad Transport Co 80.00 0.00 4,866,849 Oman United Insurance Co 0.41 0.98 198,526 Al Ain Ahlia Ins. Co. 55.00 0.00 - Arabia Insurance Cooperative 13.13 0.69 1,053,389 Al Mowasat Health Care Co 375.00 0.00 2,750 Oman Textile Holding Co Saog 0.76 0.00 - Agthia Group Pjsc 6.40 2.40 57,251 Saudi Chemical Company 33.57 0.15 213,857 Shuaiba Industrial Co 395.00 2.60 4,555 Oman Telecommunications Co 1.38 1.48 418,298 Abu Dhabi Ship Building Co 2.70 0.00 - Fawaz Abdulaziz Alhokair & C 31.28 -0.06 275,287 Hits Telecom Holding 51.00 0.00 1,830,892 Oman Refreshment Co 2.16 0.00 - Abu Dhabi Natl Co For Buildi 0.54 -3.57 14,790 Bupa Arabia For Cooperative 120.97 -0.30 27,907 First Takaful Insurance Co 60.00 -3.23 38,739 Oman Packaging 0.30 0.00 - Abu Dhabi National Takaful C 5.00 0.00 - Wafa Insurance 19.67 1.39 8,237,707 Kuwaiti Syrian Holding Co 43.00 2.38 860,100 Oman Orix Leasing Co. 0.14 0.00 - Abu Dhabi National Insurance 2.80 0.00 - Jabal Omar Development Co 68.50 -0.06 59,106 National Cleaning Company 53.00 0.00 1,288,207 Oman Oil Marketing Company 1.85 0.00 - Abu Dhabi National Hotels 2.94 0.00 1,660,100 Saudi Basic Industries Corp 96.47 -0.22 2,078,397 Eyas For High & Technical Ed 335.00 0.00 30,087 Oman National Engineering An 0.15 0.00 - Abu Dhabi National Energy Co 0.45 -2.17 291,252 Saudi Kayan Petrochemical Co 7.70 -1.91 2,400,357 United Real Estate Company 94.00 0.00 100,629 Oman Investment & Finance 0.23 0.88 656,419 Abu Dhabi Islamic Bank 3.92 0.00 190,806 Etihad Atheeb Telecommunicat 4.15 4.27 1,527,349 Agility 630.00 1.61 847,202 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 121.49 0.76 84,053 Kuwait & Middle East Fin Inv 33.50 1.52 801,029 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 20.24 0.70 156,365 Fujairah Cement Industries 90.00 0.00 405,000 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 12.79 -0.08 411,404 Livestock Transport & Tradng 222.00 -0.89 10,461 Oman Flour Mills 0.86 0.47 6,000 BAHRAIN Gulf General Cooperative Ins 18.04 0.39 410,569 International Resorts Co 37.00 -2.63 2,722,832 Oman Fisheries Co 0.18 -0.56 520,750 Basic Chemical Industries 23.85 -0.63 152,144 National Industries Grp Hold 134.00 -1.47 1,813,093 Oman Fiber Optics 4.57 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -1.37 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 17.23 402,941 64.00 95,002 Zain Bahrain Bscc 0.09 -1.05 236,983 Buruj Cooperative Insurance -1.94 Warba Insurance Co -5.77 Oman Education & Training In 0.13 0.00 - 31.35 1,017,305 98.00 268,520 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -0.40 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 140.37 8,506 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -0.83 First Dubai Real Estate Deve 0.00 Oman Chlorine 0.49 0.00 - 64.22 81,720 65.00 1,932,311 United Gulf Bank 0.38 6.82 145,000 Maadaniyah -0.22 Al Arabi Group Holding Co 5.43 Oman Ceramic Company 0.42 0.00 - 22.58 221,107 97.00 3,763,957 Trafco Group Bsc 0.23 0.00 16,322 Yamama Cement Co -0.55 Kuwait Hotels Sak 0.00 Oman Cement Co 0.50 0.80 178,050 18.15 144,018 250.00 14,205 Takaful International Co 0.00 0.00 - Jazan Development Co -1.39 Mobile Telecommunications Co 2.22 Oman Cables Industry 1.65 0.61 267,973 13.50 410,282 460.00 5,469,537 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.37 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 28.80 27,730 0.00 - Seef Properties 0.21 0.00 59,644 Alujain Corporation (Alco) 1.52 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.13 0.00 - 20.00 538,388 450.00 19 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -1.67 Al Mudon Intl Real Estate Co 1.04 Natl Aluminium Products 0.18 0.00 145,000 11.76 2,182,081 48.50 26,166,766 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 4.77 Kuwait Cement Co Ksc 0.00 National Securities 0.05 0.00 - 15.15 3,549,513 485.00 59,113 National Bank Of Bahrain Bsc 0.70 0.00 15,641 Qassim Cement/The 0.26 Sharjah Cement & Indus Devel -2.27 National Real Estate Develop 5.00 0.00 - 54.25 11,588 86.00 110,402 Nass Corp Bsc 0.12 0.00 143,435 Saudi Advanced Industries -2.56 Kuwait Portland Cement Co 3.77 National Pharmaceutical 0.11 0.00 - 13.68 1,489,154 1,100.00 245,830 Khaleeji Commercial Bank 0.12 -3.36 231,530 Kingdom Holding Co 0.27 Educational Holding Group 4.31 National Mineral Water 0.05 0.00 - 11.01 214,193 242.00 1 Ithmaar Holding Bsc 0.17 0.00 121,000 Saudi Arabian Amiantit Co -0.29 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 6.85 233,415 0.00 - Investcorp Bank -$Us 8.50 0.00 16,000 Al Jouf Agriculture Developm -1.80 Asiya Capital Investments Co 0.00 National Gas Co 0.51 0.00 - 31.16 209,986 36.00 329,426 Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development -3.08 Kuwait Investment Co 0.00 National Finance Co 0.16 0.00 - 11.94 2,017,376 96.00 59,110 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 National Detergent Co Saog 0.70 0.00 - 69.75 - 325.00 1,254,952 Gulf Hotel Group B.S.C 0.59 0.00 3,400 Riyad Bank 0.38 Kuwait Projects Co Holdings -1.02 National Biscuit Industries 3.75 0.00 - 10.44 657,943 485.00 194,014 Gfh Financial Group Bsc 0.73 -2.68 45,978 The National Agriculture Dev 3.09 Al Madina For Finance And In 0.00 National Bank Of Oman Saog 0.25 1.21 604,000 24.34 715,441 54.00 553,100 Esterad Investment Co B.S.C. 0.14 0.00 33,961 Halwani Bros Co 0.41 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.09 0.00 - 51.95 32,202 290.00 8,264 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -0.79 Al Masaken Intl Real Estate 0.00 Muscat National Holding 1.72 0.00 22,180 16.33 319,388 78.00 8,500 Bmmi Bsc 0.81 0.00 50,000 Eastern Province Cement Co 0.92 Intl Financial Advisors 1.16 Muscat Gases Company Saog 0.56 -4.78 377,311 29.47 21,865 43.50 3,495,802 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -1.82 Muscat Finance 0.13 0.00 - 0.00 - 54.00 2,471,334 Bbk Bsc 0.40 -0.50 210,000 Filing & Packing Materials M -0.84 Al Mal In 2.33 Majan Glass Company 0.19 0.00 - 34.35 127,783 vestment Company 22.00 2,918,365 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -3.03 Majan College 0.51 0.00 - 5.75 - Bayan Investment Co Kscc 48.00 1,562,945 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public -1.67 -1.96 Hsbc Bank Oman 0.13 0.78 207,000 22.99 920,183 Egypt Kuwait Holding Co Sae 200.00 696 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The -0.60 -1.02 Hotels Management Co Interna 1.25 0.00 - 13.32 80,946 Coast Investment Development 48.50 3,519,421 Bahrain Telecom Co 0.27 -1.45 142,809 Astra Industrial Group 0.44 -3.57 Gulf Stone 0.12 0.00 - 15.97 628,498 Privatization Holding Compan 54.00 6,741,540 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co -1.33 0.00 Gulf Plastic Industries Co 0.00 0.00 - 14.85 930,063 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.42 0.00 24,442 Taiba Holding Co -0.22 -1.06 Gulf Mushroom Company 0.31 0.00 - 40.90 23,494 Injazzat Real State Company 93.00 100,000 Bahrain Kuwait Insurance 0.55 0.00 2,844 Saudi Industrial Export Co 1.56 0.00 Gulf Investments Services 0.11 0.00 - 33.10 740,988 Kuwait Cable Vision Sak 22.50 101,176 Bahrain Islamic Bank 0.13 0.00 49,795 Saudi Real Estate Co 1.39 -8.47 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 20.38 701,741 Sanam Real Estate Co Kscc 54.00 100,000 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 0.59 -1.92 Gulf International Chemicals 0.29 -0.68 237,663 126.28 9,011 Ithmaar Holding Bsc 51.00 14,286,588 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.91 -0.81 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 36.10 480,389 Aviation Lease And Finance C 244.00 26,267 Bahrain Duty Free Complex 0.84 0.00 50,000 Methanol Chemicals Co 0.00 1.30 Global Fin Investment 0.17 0.00 - 6.90 3,062,825 Arzan Financial Group For Fi 39.00 98,293 Bahrain Commercial Facilitie 0.73 0.69 26,200 Ace Arabia Cooperative Insur -0.79 -1.49 Galfar Engineering&Contract 0.08 0.00 20,000 47.86 158,236 Ajwan Gulf Real Estate Co 66.00 202,800 Bahrain Cinema Co 1.35 0.00 5,000 Mobile Telecommunications Co -0.80 0.00 Galfar Engineering -Prefer 0.39 0.00 - 8.66 1,035,737 Kuwait Business Town Real Es 57.00 1,926,461 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -1.96 0.00 Financial Services Co. 0.17 0.00 - 21.04 632,126 Future Kid Entertainment And 124.00 10,000 Arab Insurance Group(Bsc)-$ 0.44 0.00 15,500 Axa Cooperative Insurance 3.30 0.00 Financial Corp/The 0.09 0.00 - 21.89 1,641,499 Specialities Group Holding C 91.00 56,232 Arab Banking Corp Bsc-$Us 0.37 0.00 224,370 Alsorayai Group -1.82 -1.59 Dhofar University 1.49 0.00 - 10.78 593,572 Abyaar Real Eastate Developm 31.00 119,474,264 Aluminium Bahrain Bsc 0.38 0.00 151,398 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 19.39 - Dar Al Thuraya Real Estate C 150.00 20 Albaraka Banking Group 0.48 0.00 1,119,000 Bank Albilad -0.61 0.00 Dhofar Poultry 0.18 0.00 - 17.94 238,913 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.10 -2.86 285,000 Al-Hassan G.I. Shaker Co 0.00 1.37 Dhofar Intl Development 0.36 0.00 - 15.34 1,146,804 Kgl Logistics Company Kscc 74.00 928,832 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -1.70 0.00 Dhofar Insurance 0.21 0.00 - 28.33 290,006 Combined Group Contracting 495.00 82,249 Ahli United Bank B.S.C 0.81 0.00 458,684 Abdullah Al Othaim Markets 104.25 1.07 6,170 Zima Holding Co Ksc 56.00 -1.75 1,698,074 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 11.10 -0.36 124,290 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, March 21, 2017 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 20,944.86 +30.24 Apple Inc 141.26 0.91 8,446,503 S&P 500 Index 2,376.30 -1.95 Microsoft Corp 64.90 0.05 4,202,188 Nasdaq Composite Index 5,907.00 +6.00 Exxon Mobil Corp 81.67 -0.40 2,514,691 S&P/Tsx Composite Index 15,467.93 -22.56 Johnson & Johnson 128.27 0.16 1,787,744 Mexico Bolsa Index 48,593.44 +536.88 General Electric Co 29.81 -0.25 6,442,244 Brazil Bovespa Stock Idx 64,768.79 +558.85 Jpmorgan Chase & Co 91.01 0.36 5,266,517 Ftse 100 Index 7,422.66 -2.30 Procter & Gamble Co/The 91.30 0.33 2,586,873 Cac 40 Index 5,022.78 -6.46 Wal-Mart Stores Inc 69.95 0.09 2,134,986 Dax Index 12,064.79 -30.45 Verizon Communications Inc 50.30 -0.19 3,990,517 Ibex 35 Tr 10,225.10 -20.70 Pfizer Inc 34.45 0.38 5,650,350 Nikkei 225 19,521.59 -68.55 Visa Inc-Class A Shares 89.24 -1.11 3,589,976 Japan Topix 1,565.85 -6.84 Chevron Corp 107.42 -0.24 1,871,443 Hang Seng Index 24,501.99 +192.06 Coca-Cola Co/The 42.23 0.48 3,469,983 All Ordinaries Indx 5,820.51 -20.26 Intel Corp 35.55 0.78 6,085,358 Nzx All Index 1,302.09 -19.89 Merck & Co. Inc. 64.19 0.45 2,199,298 Bse Sensex 30 Index 29,518.74 -130.25 Cisco Systems Inc 34.31 0.22 3,690,698 Nse S&P Cnx Nifty Index 9,126.85 -33.20 Home Depot Inc 148.30 -0.87 1,433,399 Straits Times Index 3,165.70 -3.68 Intl Business Machines Corp 175.94 0.17 986,574 Karachi All Share Index 32,865.72 +157.94 Walt Disney Co/The 112.89 1.01 2,663,914 Jakarta Composite Index 5,533.99 -6.44 Unitedhealth Group Inc 168.84 -0.51 966,393 3M Co 193.46 0.57 773,429 Mcdonald’s Corp 128.66 0.02 1,162,100 Nike Inc -Cl B 58.54 1.28 5,082,066 TOKYO United Technologies Corp 113.89 0.39 846,262 Boeing Co/The 179.89 -0.12 615,561 Company Name Lt Price % Chg Goldman Sachs Group Inc 243.50 -0.18 1,093,784 Rakuten Inc 1,122.00 0.81 9,120,900 American Express Co 79.24 -0.01 965,014 Kyocera Corp 6,381.00 -0.56 1,206,200 Du Pont (E.I.) De Nemours 81.67 0.52 873,058 Nissan Motor Co Ltd 1,132.00 -0.48 18,007,400 Caterpillar Inc 94.99 2.24 1,781,700 Hitachi Ltd 624.70 -1.59 25,923,000 Travelers Cos Inc/The 122.78 -0.30 302,156 Takeda Pharmaceutical Co Ltd 5,313.00 -0.02 2,443,500 Traders work at the Frankfurt Stock Exchange. The DAX 30 closed down 0.4% to 12,052.90 points yesterday. Jfe Holdings Inc 2,026.50 -0.73 3,430,000 Ana Holdings Inc 351.70 -0.54 13,789,000 FTSE 100 Mitsubishi Electric Corp 1,687.00 -1.29 4,739,400 Sumitomo Mitsui Financial Gr 4,302.00 -0.42 8,325,800 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,534.00 -0.62 3,917,400 Fast Retailing Co Ltd 36,040.00 0.08 571,000 Wpp Plc 1,685.00 -0.06 2,805,293 Ms&Ad Insurance Group Holdin 3,891.00 -0.05 1,347,200 Worldpay Group Plc 290.70 0.03 4,279,852 Kubota Corp 1,778.50 -0.42 5,296,500 G20 divide pulls down Wolseley Plc 5,120.00 0.29 152,470 Seven & I Holdings Co Ltd 4,425.00 -0.05 2,684,100 Wm Morrison Supermarkets 237.50 -0.38 4,217,591 Inpex Corp 1,112.00 -0.49 4,783,200 Whitbread Plc 3,903.00 0.00 140,148 Resona Holdings Inc 639.90 -1.55 16,266,000 Vodafone Group Plc 210.40 -0.47 40,276,070 Asahi Kasei Corp 1,091.50 -0.41 4,158,000 United Utilities Group Plc 1,002.00 0.30 578,129 Kirin Holdings Co Ltd 2,074.00 -0.05 2,399,200 Unilever Plc 4,059.00 0.47 1,239,314 Europe stock markets Marubeni Corp 723.00 -0.03 7,791,300 Tui Ag-Di 1,136.00 -0.53 182,631 Mitsubishi Ufj Financial Gro 759.00 -0.78 67,476,100 Travis Perkins Plc 1,485.00 0.07 646,970 Mitsubishi Chemical Holdings 867.50 -0.97 9,280,400 Tesco Plc 188.75 0.75 11,042,604 ures,” said London Capital Group ana- helped push up the FTSE 100 index by Fanuc Corp 23,075.00 2.69 1,505,700 AFP Taylor Wimpey Plc 193.10 -0.82 7,622,917 lyst Ipek Ozkardeskaya. 0.07% to a new record high. Daito Trust Construct Co Ltd 15,530.00 -0.16 887,400 London Standard Life Plc 362.80 0.83 5,818,539 The move follows Trump’s warn- Many of companies listed blue chip Otsuka Holdings Co Ltd 5,202.00 -0.84 1,501,000 Standard Chartered Plc 733.60 0.44 3,187,227 Oriental Land Co Ltd 6,391.00 -0.41 599,900 ings to throw up levies and revise glo- have most of their revenues in other St James’s Place Plc 1,079.00 0.65 409,566 Sekisui House Ltd 1,910.50 0.13 3,508,100 orld equities wobbled yes- bal agreements he says are unfair to the currencies which are infl ated when Sse Plc 1,503.00 -0.07 1,156,278 Secom Co Ltd 8,277.00 -1.23 745,500 terday after G20 fi nance United States. converted into weaker sterling. Smith & Nephew Plc 1,244.00 0.24 1,145,387 Tokio Marine Holdings Inc 5,112.00 -0.43 2,954,500 ministers failed to renew an Citi analyst Ebrahim Rahbari argued Vodafone shares dipped 0.4 after the Sky Plc 988.50 -0.10 1,807,394 W Aeon Co Ltd 1,619.50 -1.49 4,069,900 Shire Plc 4,758.00 -1.08 897,153 anti-protectionist pledge, in the face in a note to clients that rising protec- British mobile phone giant revealed Mitsui & Co Ltd 1,671.50 -0.80 11,933,400 Severn Trent Plc 2,387.00 0.42 235,849 of Donald Trump’s “America First” tionism posed a key risk to the world it will merge its Indian unit with Idea Kao Corp 6,072.00 0.38 1,889,400 Schroders Plc 3,150.00 0.06 129,781 push. economy. Cellular to create India’s largest tel- Dai-Ichi Life Holdings Inc 2,231.00 -0.53 7,536,800 Sainsbury (J) Plc 274.50 1.78 4,311,303 Mazda Motor Corp 1,618.50 -2.00 6,971,300 Much of Asia and Europe also beat “Overall, we continue to think that ecoms operator. Sage Group Plc/The 641.00 0.31 1,015,054 Komatsu Ltd 3,004.00 0.07 5,138,200 a retreat as investors took profi ts from the new US administration will pursue In Mumbai, Idea Cellular reversed Sabmiller Plc 0.00 0.00 - West Japan Railway Co 7,505.00 -0.82 712,100 last week’s bumper gains and swapped a more aggressive position on interna- an early rally to sink 7%. The news fol- Rsa Insurance Group Plc 590.50 0.25 1,721,129 Murata Manufacturing Co Ltd 16,025.00 -1.45 854,700 Royal Mail Plc 415.00 0.27 1,718,825 risky equities for safer assets. tional trade,” Rahbari said. lowed months of speculation they were Kansai Electric Power Co Inc 1,231.50 -2.34 3,868,300 Royal Dutch Shell Plc-B Shs 2,214.50 -0.70 2,191,385 Over the weekend, in an early taste “We see a continuation of the grad- ready to sign a deal to help fend off Denso Corp 5,260.00 -1.03 2,024,200 Royal Dutch Shell Plc-A Shs 2,113.50 -0.45 2,439,361 of what Donald Trump’s presidency ual rise in protectionism in recent years fi erce Indian competitor Reliance Jio. Sompo Holdings Inc 4,422.00 0.80 1,508,300 Royal Bank Of Scotland Group 240.00 -1.60 5,041,779 In Zurich, Swiss banking giant UBS Daiwa House Industry Co Ltd 3,275.00 0.09 3,127,900 spells for the world, the G20 failed to and for globalisation to stall, but we see Rolls-Royce Holdings Plc 774.50 0.26 2,331,499 Jx Holdings Inc 542.50 -1.90 13,986,700 get Washington to sign off on a pledge a major rise in protectionism — includ- saw its share price slide 0.9% to 15.89 Rio Tinto Plc 3,443.50 -0.29 1,532,378 Nippon Steel & Sumitomo Meta 2,672.50 -0.32 3,456,600 to reject protectionism in a closing ing the risk of trade wars — as one of Swiss francs. Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 4,805.00 -0.33 1,601,600 Legal sources told AFP on Monday Relx Plc 1,539.00 0.20 1,378,130 statement. the main risks to the global outlook.” Nippon Telegraph & Telephone 4,910.00 -0.67 3,329,300 Reckitt Benckiser Group Plc 7,494.00 1.38 541,894 Commitments of support to the In London, the pound took a small that UBS will go on trial in France for Ajinomoto Co Inc 2,282.00 -0.93 1,557,200 Randgold Resources Ltd 7,145.00 1.06 321,277 existing multilateral trade system, hit, initially dropping around half a establishing a wide-ranging tax fraud Mitsui Fudosan Co Ltd 2,518.50 -1.41 4,287,000 Prudential Plc 1,760.50 0.00 2,067,901 including the World Trade Organisa- cent, after the British government an- scheme worth nearly €10bn. Ono Pharmaceutical Co Ltd 2,411.00 -1.21 2,519,000 Provident Financial Plc 2,932.00 -0.14 119,436 Daikin Industries Ltd 11,215.00 0.85 1,083,800 tion (WTO), were also conspicuously nounced it would begin the two-year UBS will be charged with illegal Persimmon Plc 2,117.00 0.47 411,309 Bank Of Yokohama Ltd/The 0.00 0.00 - missing from the fi nal communique procedure to exit the European Union banking practices and dissimulat- Pearson Plc 653.00 0.46 1,540,732 Toray Industries Inc 995.00 -0.70 5,083,000 from the meeting of fi nance ministers on March 29. ing tax fraud, the sources said, adding Paddy Power Betfair Plc 8,715.00 -0.34 24,264 Astellas Pharma Inc 1,493.00 -2.23 14,863,900 Old Mutual Plc 224.90 1.63 3,550,740 from the G20 group of developed and “The news was hardly a surprise — UBS’s French subsidiary will also go on Bridgestone Corp 4,613.00 -0.32 2,143,700 Next Plc 3,859.00 -0.46 373,411 emerging nations in the German spa however the reminder that the UK is trial for complicity. Sony Corp 3,639.00 0.55 5,517,500 National Grid Plc 989.40 0.48 2,030,559 town of Baden-Baden. facing years of diffi cult and likely hos- In London, the FTSE 100 closed up Hoya Corp 5,432.00 -0.69 1,230,800 Mondi Plc 1,936.00 0.05 390,434 “The European equity markets tile trade negotiations seemed to sup- 0.07% to 7,429.81 points; Frankfurt — Sumitomo Mitsui Trust Holdin 4,069.00 0.30 1,943,300 Merlin Entertainment 484.20 -0.02 738,423 Japan Tobacco Inc 3,772.00 -0.29 3,144,700 started the week on a heavy risk-off press investors’ appetite for the cur- DAX 30 fell 0.4% to 12,052.90 points Mediclinic International Plc 764.50 -0.33 279,890 Osaka Gas Co Ltd 434.30 -1.50 9,023,000 sentiment after the G20 communique rency,” said Spreadex fi nancial analyst and Paris — CAC 40 closed down 0.3% Marks & Spencer Group Plc 326.90 -0.73 3,602,127 Sumitomo Electric Industries 1,909.50 -1.22 3,253,200 explicitly refl ected the US intentions Connor Campbell. to 5,012.16 points at the close yester- London Stock Exchange Group 3,098.00 0.91 85,225 Daiwa Securities Group Inc 755.70 1.12 13,876,000 Lloyds Banking Group Plc 69.19 -0.22 67,144,366 to establish trade protectionist meas- The drop in the value of the pound day. Softbank Group Corp 8,432.00 -1.07 4,484,700 Legal & General Group Plc 251.30 0.56 5,219,800 Mizuho Financial Group Inc 212.70 0.24 114,780,100 Land Securities Group Plc 1,045.00 0.77 2,050,231 Nomura Holdings Inc 756.80 -0.07 16,786,300 Kingfisher Plc 345.60 0.06 2,953,539 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,608.50 -1.45 1,890,100 Johnson Matthey Plc 3,007.00 0.00 302,031 Fuji Heavy Industries Ltd 4,349.00 -1.83 3,996,400 Itv Plc 208.60 0.14 3,552,827 Ntt Docomo Inc 2,728.00 -0.56 3,460,400 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 281.00 0.18 1,121,129 Sumitomo Realty & Developmen 3,028.00 -2.13 2,761,000 Intl Consolidated Airline-Di 566.00 -0.44 3,607,465 Aluminum Corp Of China Ltd-H 3.94 -1.99 26,030,776 Hong Kong & China Gas 15.18 0.66 7,505,904 Sumitomo Metal Mining Co Ltd 1,593.50 0.82 4,808,000 Intertek Group Plc 3,908.00 0.15 202,690 Bank Of East Asia Ltd 32.05 0.16 562,705 Hong Kong Exchanges & Clear 200.40 1.98 7,978,380 Orix Corp 1,737.50 -1.73 8,608,600 Intercontinental Hotels Grou 3,890.00 -0.21 300,992 Bank Of China Ltd-H 3.97 0.00 198,933,792 Hsbc Holdings Plc 63.50 -1.01 22,021,106 Asahi Group Holdings Ltd 4,138.00 0.51 1,201,100 Inmarsat Plc 790.00 -0.82 2,007,706 Bank Of Communications Co-H 6.20 0.16 15,629,943 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 44,970.00 -0.51 325,900 Informa Plc 641.50 0.79 1,321,779 Belle International Holdings 5.24 -3.32 39,083,530 Ind & Comm Bk Of China-H 5.19 0.58 190,126,858 Nidec Corp 10,770.00 -0.97 843,800 Imperial Brands Plc 3,896.50 -0.24 524,939 Boc Hong Kong Holdings Ltd 32.15 0.16 5,359,285 Li & Fung Ltd 3.83 0.00 45,252,385 Isuzu Motors Ltd 1,592.50 0.50 3,503,700 Hsbc Holdings Plc 658.20 -0.14 13,500,332 Cathay Pacific Airways 11.20 -0.71 8,028,415 Mtr Corp 42.95 0.70 2,581,910 Unicharm Corp 2,678.00 0.49 1,599,500 Hargreaves Lansdown Plc 1,322.00 0.30 284,551 Ck Hutchison Holdings Ltd 97.00 -0.10 5,021,538 New World Development 9.88 0.61 13,518,308 Shin-Etsu Chemical Co Ltd 9,663.00 -0.14 1,308,500 Hammerson Plc 584.00 0.95 2,898,723 China Coal Energy Co-H 4.18 3.98 44,128,620 Petrochina Co Ltd-H 5.87 0.17 92,602,721 Smc Corp 33,100.00 -0.36 283,300 Glencore Plc 342.30 0.00 22,152,597 China Construction Bank-H 6.45 0.16 157,514,928 Ping An Insurance Group Co-H 43.40 0.93 30,096,866 Mitsubishi Corp 2,472.00 -0.20 9,500,000 Glaxosmithkline Plc 1,689.00 0.09 2,951,784 China Life Insurance Co-H 25.20 0.60 34,248,803 Power Assets Holdings Ltd 68.25 0.07 5,118,854 Nintendo Co Ltd 25,580.00 1.69 2,569,100 Gkn Plc 373.90 0.27 2,785,132 China Merchants Port Holding 21.85 0.00 3,238,043 Sino Land Co 13.58 0.74 4,817,645 Eisai Co Ltd 6,083.00 -0.96 1,014,800 Fresnillo Plc 1,521.00 0.66 360,716 China Mobile Ltd 90.35 3.67 44,873,857 Sun Hung Kai Properties 114.80 -0.09 2,673,001 Sumitomo Corp 1,521.50 0.20 4,627,900 Experian Plc 1,638.00 -0.24 450,756 China Overseas Land & Invest 24.50 -1.61 25,409,610 Swire Pacific Ltd - Cl A 77.95 -0.13 1,679,763 Canon Inc 3,538.00 0.26 4,348,200 Easyjet Plc 1,013.00 -0.88 1,410,182 China Petroleum & Chemical-H 6.01 0.50 73,268,943 Tencent Holdings Ltd 228.20 2.79 24,497,641 Japan Airlines Co Ltd 3,720.00 -0.48 1,564,800 Dixons Carphone Plc 309.80 2.68 2,014,462 China Resources Beer Holdin 17.76 -0.45 1,944,000 Wharf Holdings Ltd 68.50 -0.22 2,068,138 Direct Line Insurance Group 340.30 1.76 2,638,545 China Resources Land Ltd 22.00 -2.44 23,514,166 China Resources Power Holdin 14.92 4.04 10,135,189 Diageo Plc 2,323.50 0.19 1,248,712 SENSEX Dcc Plc 7,120.00 -0.28 58,136 China Shenhua Energy Co-H 19.14 16.28 145,696,323 GCC INDICES Crh Plc 2,857.00 1.06 475,442 China Unicom Hong Kong Ltd 10.20 -0.97 52,838,312 Compass Group Plc 1,513.00 -0.07 1,834,438 Company Name Lt Price % Chg Citic Ltd 11.34 0.71 9,302,398 Indices Lt Price Change Coca-Cola Hbc Ag-Di 1,993.00 -0.65 144,475 Clp Holdings Ltd 80.15 0.94 4,153,228 Doha Securities Market Zee Entertainment Enterprise 521.10 0.36 866,657 10,406.79 +68.24 Centrica Plc 215.00 -0.69 13,869,834 Cnooc Ltd 9.08 -0.55 95,117,270 Saudi Tadawul Yes Bank Ltd 1,515.75 0.52 1,396,718 6,919.25 -33.38 Carnival Plc 4,503.00 -0.13 371,396 Cosco Shipping Ports Ltd 8.70 2.84 2,873,152 Kuwait Stocks Exchange Wipro Ltd 497.50 -1.34 2,009,078 6,868.83 +11.27 Capita Plc 568.00 -0.44 2,065,574 Esprit Holdings Ltd 6.99 1.45 5,030,245 Bahrain Stock Exchage Vedanta Ltd 263.30 -0.59 13,229,081 1,374.23 -2.97 Burberry Group Plc 1,788.00 0.17 456,354 Fih Mobile Ltd 3.12 -3.11 14,888,508 Oman Stock Market Ultratech Cement Ltd 3,999.80 -0.99 562,608 5,670.70 -9.85 Bunzl Plc 2,330.00 0.22 234,525 Hang Lung Properties Ltd 20.50 1.23 2,943,943 Abudhabi Stock Market Tech Mahindra Ltd 481.90 -0.49 3,824,439 4,457.75 +38.37 Bt Group Plc 333.95 -0.12 8,194,727 Hang Seng Bank Ltd 159.30 -0.44 583,243 Dubai Financial Market Tata Steel Ltd 496.65 -1.11 4,457,908 3,477.49 -15.62 British Land Co Plc 617.00 0.82 1,948,773 Henderson Land Development 46.90 1.52 2,226,791 Tata Power Co Ltd 87.15 0.93 4,588,195 British American Tobacco Plc 5,191.00 -0.02 1,104,425 Tata Motors Ltd 476.00 -0.10 3,152,845 Bp Plc 460.10 -0.63 20,374,147 Tata Consultancy Svcs Ltd 2,480.00 -1.81 1,797,959 Bhp Billiton Plc 1,328.50 -0.34 3,719,780 Sun Pharmaceutical Indus 706.55 -0.13 1,537,112 Berkeley Group Holdings/The 3,175.00 0.99 617,423 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 273.90 -0.09 17,784,402 Barratt Developments Plc 545.50 0.46 2,176,153 Reliance Industries Ltd 1,280.80 -1.53 395,130,478 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 228.70 -0.74 15,616,490 Punjab National Bank 145.20 0.28 4,992,721 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 650.00 0.54 3,249,505 Power Grid Corp Of India Ltd 193.60 -0.21 5,547,384 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 922.50 -0.22 517,924 Oil & Natural Gas Corp Ltd 190.85 0.45 5,393,034 this data.” Aviva Plc 539.00 0.56 3,096,294 Ntpc Ltd 161.40 0.91 2,382,141 Astrazeneca Plc 4,907.00 0.20 739,883 Maruti Suzuki India Ltd 6,158.90 -0.54 235,688 Associated British Foods Plc 2,664.00 1.83 428,906 Mahindra & Mahindra Ltd 1,300.20 -0.28 776,333 Ashtead Group Plc 1,683.00 -0.06 424,683 Lupin Ltd 1,464.70 0.56 508,381 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,537.65 -0.96 1,050,650 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 842.00 -1.23 1,557,349 DINAR DINAR Kotak Mahindra Bank Ltd 854.60 0.75 1,715,618 Anglo American Plc 1,270.00 -1.74 2,511,483 Itc Ltd 281.90 0.23 16,875,967 Admiral Group Plc 1,974.00 1.49 801,549 Infosys Ltd 1,021.50 -1.81 2,350,756 3I Group Plc 732.50 1.60 704,564 Indusind Bank Ltd 1,379.60 -0.29 991,813 #N/A 0.00 0.00 - Idea Cellular Ltd 97.70 -9.62 228,019,377 Icici Bank Ltd 275.05 -1.98 12,609,591 TOKYO Housing Development Finance 1,457.75 0.45 1,839,077 Hindustan Unilever Ltd 898.45 -0.45 990,017 Hindalco Industries Ltd 196.20 0.00 7,945,353 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,340.25 -0.17 129,931 East Japan Railway Co 9,987.00 -1.31 1,361,600 Hdfc Bank Limited 1,436.10 0.72 2,112,515 Itochu Corp 1,652.00 -0.27 4,909,400 Hcl Technologies Ltd 864.35 -0.16 1,799,564 Fujifilm Holdings Corp 4,519.00 0.16 1,396,800 Grasim Industries Ltd 1,062.45 2.02 2,527,794 Yamato Holdings Co Ltd 2,461.50 -2.22 2,523,000 Gail India Ltd 374.35 -0.21 3,771,782 Chubu Electric Power Co Inc 1,468.50 -1.48 2,200,300 Dr. Reddy’s Laboratories 2,734.35 -0.07 424,089 Mitsubishi Estate Co Ltd 2,172.00 -0.57 3,200,000 Coal India Ltd 291.80 0.88 7,456,459 Mitsubishi Heavy Industries 482.60 -1.73 44,128,000 Cipla Ltd 596.30 -0.17 1,075,458 Toshiba Corp 190.10 3.54 237,853,000 Cairn India Ltd 293.35 -0.41 2,076,527 Shiseido Co Ltd 2,976.50 -0.07 1,064,300 Bosch Ltd 22,674.70 -0.54 8,570 Shionogi & Co Ltd 5,646.00 -1.45 1,325,400 Bharti Airtel Ltd 349.40 0.74 4,590,575 Tokyo Gas Co Ltd 513.40 -1.29 7,691,000 Bharat Petroleum Corp Ltd 643.60 0.23 1,266,247 Tokyo Electron Ltd 11,595.00 -1.11 1,139,600 Bharat Heavy Electricals 170.90 1.33 6,298,312 Panasonic Corp 1,256.50 -0.87 9,059,700 Bank Of Baroda 165.60 0.42 5,736,006 Fujitsu Ltd 668.90 -0.49 9,422,000 Bajaj Auto Ltd 2,923.55 0.38 201,064 Central Japan Railway Co 18,525.00 -0.38 468,300 Axis Bank Ltd 502.85 -2.77 10,004,625 T&D Holdings Inc 1,825.00 0.00 5,187,500 Asian Paints Ltd 1,079.70 0.02 468,223 Toyota Motor Corp 6,377.00 -1.18 7,952,200 Ambuja Cements Ltd 234.20 0.04 1,031,653 Kddi Corp 3,045.00 0.69 6,515,100 Adani Ports And Special Econ 325.45 0.02 4,746,558 Nitto Denko Corp 8,800.00 -0.43 1,348,200 Acc Ltd 1,408.70 -0.20 235,684 Gulf Times 12 Tuesday, March 21, 2017 BUSINESS Taiwan export orders soar as electronics demand lights up

Reuters growth “could go down because tories are based in China and Taipei the February surge is a result of would have been closed for the base effect,” she said. days. Orders surged 22% in Feb- Orders from Taiwan’s ma- aiwan’s export orders ruary from a year earlier, its jor markets all accelerated at a grew at their fastest pace strongest pace since August double-digit pace. Tin six-and-a-half years 2010, when they expanded Orders from the United in February on strong global 23.3%, and were well above States, where Apple Inc is a demand for electronics that’s growth of 15.8% forecast in a major customer for many Tai- bolstering makers of memory Reuters poll. wanese technology component chips, flat panels and smart- Export orders are a leading makers, jumped 21.1% in Febru- phones. indicator of actual shipments ary from a year earlier, and rose The stronger-than-expect- 2-3 months ahead and a gauge 11.9% for the first two months ed performance and a seventh of demand for Asia’s high-tech of the year. straight month of gains in or- gadgets. The value of export From China, the island’s big- ders for the trade-reliant econ- orders in March is expected to gest trading partner, orders omy reinforce expectations rise to around $37.5bn-$38.5bn, soared 40.5% last month and Taiwan’s central bank will leave from February’s $33.75bn, eco- they were up 20.5% in January- its key policy rate unchanged nomics ministry official LJ Lin February. when it meets on Thursday. told reporters yesterday. Orders for technology parts, Other Asian exporters such January orders totalled including those used in elec- as China and South Korea have $36bn. The jump comes off a tronic, information and tel- also seen marked improvement weak base as export orders were ecommunications goods, also in shipments so far this year stuck in a 16-month stretch of rose by double-digits. as global demand improves, contraction that didn’t end un- Hopes are building that though the size of Taiwan’s til August last year. the 10th anniversary edition jump may be exaggerated by Still, January and February of the iPhone, expected to be comparisons with weak trade performance as a whole was launched later this year, will figures through much of last still strong – up 12.7% from a generate orders for components year, analysts said. year earlier. from Taiwanese tech companies “For tech, the outlook for the Analysts prefer to look at who make much of the guts of first half should be fine, but the combined January and February Apple’s popular smartphone. second half has higher uncer- data due to distortions from the More memory capacity, dual- tainty,” said Claire Huang, an timing of the long Lunar New lenses for its cameras and big- economist with Societe Gen- Year holiday. ger-sized panels will be needed erale in Hong Kong, adding that This year, it began in late Jan- for the new phone, according to prospects for China’s economy uary while last year’s start was a recent research report by the later this year are not clear. in February. Taiwan Institute of Economic People work at the Giant bicycle factory in Taichung. Taiwan’s export orders surged 22% in February from a year earlier, its strongest pace Annual headline export order Many Taiwan-owned fac- Research, a think-tank. since August 2010, when they expanded 23.3%, and were well above growth of 15.8% forecast in a Reuters poll. Gulf Times Tuesday, March 21, 2017 13 BUSINESS

Samsung’s S8 gets its Temasek: India deals picking own AI assistant up as companies pare debt

Bloomberg Bloomberg Seoul Mumbai

amsung Electronics Co’s emasek Holdings Pte, the Singa- upcoming Galaxy S8 will pore state investment company, Sfeature a Siri-like digital Texpects Indian companies to assistant that studies user activ- continue selling assets to pare debt as ity to off er helpful tips and in- corporate balance sheet stress rises. formation, seeking to challenge “For the fi rst time, companies are rivals such as Apple Inc in mobile selling some of their good assets to artifi cial intelligence. deleverage,” Rohit Sipahimalani, a sen- The Galaxy S8 to be unveiled ior managing director at Temasek, told later this month sports a side- a Bloomberg private equity forum on button that can activate a digital Friday in Mumbai. Heavily indebted In- assistant dubbed Bixby, the com- dian companies announced as much as pany said during a pre-launch $20bn of divestments last year as they briefi ng. The artifi cial intelli- sought to cut debt, Sipahimalani said. gence system can analyse user’s Company founders are doing deals activities and identify their in- as they seek “to rescue their reputa- terest in products such as wine, tion and want to get on with their lives,” sharing related information such Sanjay Nayar, chief executive offi cer of as manufacturers and prices. KKR’s India unit, said at the Bloomberg Samsung is banking on its forum. Banks in India have started forc- marquee S8 to bounce back from ing delinquent borrowers to repay loans last year’s botched debut of the by selling assets, according to Sipahi- fi re-prone Note 7 and reclaim malani. That will drive more deal fl ow its global lead in smartphones. and help resolve the South Asian na- The Note 7 got killed off after tion’s bad debt crisis, he said. showing a tendency to catch fi re, The improved environment has at- costing the company more than tracted investors like TPG, which said $6bn. Bixby will come embedded on Friday it’s bullish on private eq- throughout the S8’s interface and uity in India and plans to invest more works in tandem with apps such in the country. Any transactions will as Pinterest and Amazon to draw build on the record $81.2bn of mergers out information, developers said and acquisitions announced by Indian at the briefi ng. The Suwon, South companies last year, data compiled by Korea-based fi rm will pick more Bloomberg show. partners in time, they added. “In India in particular, you have a Digital assistants have become moment where so much is changing at Temasek Holdings, the Singapore state investment company, expects Indian companies to continue selling assets to pare debt as corporate balance sheet stress rises. popular in past years as Silicon the industry level,” Jim Coulter, TPG’s Valley seeks to embed AI deeper co-founder and co-chief executive of- in October to sell control of the nation’s had defaulted on debt repayments, said KKR’s Nayar said there are opportu- country’s retail industry is “a tough into a plethora of devices. Google fi cer, said at the forum in Mumbai. “Pri- second-largest refi nery to a group of last year it will sell cement capacity nities in the industrial sector, particu- space” as business models are evolving Assistant competes against Ap- vate equity has a massive role in sorting investors including Rosneft PJSC and across fi ve Indian states to UltraTech larly in manufacturing facilities, while rapidly, said Mintoo Bhandari, senior ple’s Siri, Amazon’s Alexa and it out.” Trafi gura for about $13bn including Cement Ltd at an enterprise value of high valuations are making investors partner and managing director at Apol- Microsoft’s Cortana. The billionaire Ruia brothers agreed debt. Jaiprakash Associates Ltd, which Rs161.9bn ($2.5bn). wary of deals in fi nancial services. The lo Global Management LLC in India. Secretive billionaire reveals how Flipkart raises $1bn, he toppled Apple in China market

Bloomberg product was the “Subor” gaming console with decided to create a new company. Dubbed seeks a billion more Beijing dual-cartridge slots – a direct shot at Nintendo Oppo, it sold music players but ramped up Co’s classic Family Computer, known else- to smartphones in 2011. In 2009, BBK itself where as the Nintendo Entertainment System. created Vivo, headed by another of Duan’s Bloomberg one of the company’s founders. few years. Paytm E-commerce Duan Yongping is convinced Tim Cook didn’t The 100- to 400-yuan Subor became a hit in disciples, Shen Wei. Bengaluru The latest fundraising shows Pvt, backed by Alibaba Group have a clue who he was when they first met a the absence of local competitors. Duan even “Making mobile phones was not my call,” investors believe Flipkart has a Holding Ltd – the company that couple of years ago. The Apple boss probably enlisted Kung Fu star Jackie Chan to endorse said Duan. “But I reckoned we could do well good chance of beating back the defeated eBay and Amazon in does now. the device. By 1995, revenue from the Subor in this market.” At first, neither label garnered lipkart Online Services Pvt competition, despite a current China – has joined the race. Ali- Duan is the reclusive billionaire who exceeded 1bn yuan. much attention. The iPhone was captivating has completed a $1bn fun- dismal environment for capital- baba also backs Snapdeal.com, founded Oppo and Vivo, the twin smartphone Duan left to set up a new business that users with its revolutionary apps system and Fdraising and aims to raise as raising and the startup’s own Flipkart’s biggest homegrown brands that dealt the world’s largest company year as the operation flourished – a pattern elegant interface, while BlackBerrys lorded much as $1bn more over the next internal ructions. Last summer, competitor. a stinging defeat in China last year. Once he would repeat in later years. He christened over the corporate market. But Oppo and Vivo few months, according to people with Flipkart losing ground to In response, Flipkart’s spend- derided as cheap iPhone knockoff s, they his second venture Bubugao, literally “rising then developed a marketing-blitz approach familiar with the matter, giv- Amazon, Tiger sent in Krishna- ing heavily on promotions and leapfrogged the rankings and shoved Apple higher step-by-step.” BBK, as the company that relied on local celebrity endorsement ing India’s largest e-commerce murthy to turn around the com- off ering discounts in an eff ort Inc out of the top three in 2016 – when iPhone came to be known, created a popular line of and a vast re-sellers’ store network across company capital to battle back pany. Its co-founders stood that’s costing it millions of dol- shipments fell in China for the first time. VCD and MP3 players but later also made DVD China. They crafted an aff ordable image that against rising competition. aside as the former eBay execu- lars a month. Flipkart will have to They managed to do it because the Ameri- players for global brands. Subsidiary Bubugao appealed to a millennial crowd, then tricked Flipkart secured its latest tive took control of its biggest persuade investors to inject still can smartphone giant didn’t adapt to local Communication Equipment Co became one of out their devices with high-end specs. On the funding on Friday at a valuation sale season, fi red senior manag- more capital if it’s to counter its competition, the entrepreneur told Bloomberg the country’s biggest feature-phone makers surface, Oppo and Vivo phones now routinely of about $10bn, said the people, ers and set tough traffi c and sales deep-pocketed rivals. in what he said was his first interview in 10 around 2000, going head-to-head with Nokia surpass the iPhone on measures such as asking not to be named because targets. He was named CEO after India however is going through years. Oppo and Vivo employed tactics Apple and Motorola. charging speeds, memory and battery life. the matter is private. Backers in Flipkart narrowly outsold Ama- its own version of a dot-com was reluctant to match, such as cheaper It paid off . The duo together shipped more this round so far included Micro- zon during the critical year-end bust. Hundreds of Indian inter- devices with high-end features, for fear of Duan is the reclusive billionaire than 147mn smartphones in China in 2016, soft Corp, EBay Inc and Tencent shopping rush – becoming the net startups are losing money, jeopardising its winning formula elsewhere, who founded Oppo and Vivo, dwarfing Huawei Technologies Co’s 76.6mn Holdings Ltd, but the valuation company’s third chief in the cutting jobs and reducing valu- Duan said. the twin smartphone brands units, Apple’s 44.9mn and Xiaomi’s 41.5mn, IDC was a decline from Flipkart’s span of a year. ations in exchange for fresh fi - “Apple couldn’t beat us in China because that dealt the world’s largest estimates. Oppo and Vivo both doubled their $15.5bn in 2015. The company “That Flipkart will get funded nancing. One Bangalore-based even they have flaws,” the 56-year-old company a stinging defeat in 2015 haul. In the fourth quarter, they were No said it doesn’t comment on was never in doubt. The valua- fi rm even put together the Dead- electronics mogul said. “They’re maybe too China last year. Once derided as 1 and No 3, respectively – Huawei was second. “market speculations” as a mat- tion of $10bn is nothing to worry pool list, a catalogue of dead stubborn sometimes. They made a lot of great cheap iPhone knockoff s, they Their approach worked particularly well in lower- ter of policy. about, the funding environment or dying startups similar to the things, like their operating system, but we leapfrogged the rankings and tier cities, where mid-range phones became a The 10-year-old startup is is rather slow globally,” said F**ked Company website created surpass them in other areas.” shoved Apple Inc out of the top mainstream hit, said Tay Xiaohan, an IDC analyst. fi ghting for its life against Ama- Satish Meena, Delhi-based sen- in the aftermath of the US Inter- That’s not to say Duan doesn’t appreciate three in 2016 – when iPhone Duan’s smartphone progeny are also gain- zon.com Inc and other rivals ior forecast analyst at Forrester net bubble. the iPhone maker’s global clout. In fact, the bil- shipments fell in China for the ing some momentum beyond their home turf. looking for a piece of the fast- Research. The fi ght however may “The new funds put Flipkart in lionaire’s obsession with his US rival is legion: fi rst time In the fourth quarter, Oppo and Vivo were growing India market. Earlier just be getting started. Amazon, a strong position and this year’s he’s long been a big-time investor in Apple and fourth and fifth in the world, respectively. this year, New York’s Tiger Glo- determined to get it right in India going to be a direct face-off be- an unabashed fan of its chief executive off icer. It was the first iPhone in 2007 that paved About a quarter of Oppo’s shipments went to bal Management installed its after being vanquished in China, tween Amazon and Flipkart,” “I’ve met Tim Cook on several occasions. He the way for Oppo and Vivo. While they share markets like India, where it hopes to dig in be- own Kalyan Krishnamurthy as has pledged to spend $5bn on its Meena said. “Paytm is still trying might not know me but we’ve chatted a little,” a common founder in Duan, the sister brands fore Apple establishes a meaningful presence. chief executive offi cer to replace India operations over the next to build itself up to scale.” Duan said. “I like him a lot.” are fierce competitors, trotting out duelling Duan also owns a “small amount” of Alphabet Apple couldn’t confirm Duan’s meeting marketing campaigns in markets from India Inc, whose Android operating software runs with Cook when contacted by Bloomberg. But to Southeast Asia. Their salesmanship phi- Oppo and Vivo devices as it does the majority Duan has blogged incessantly about Apple’s losophy plays well in emerging markets, IDC of the world’s smartphones. products, share price and operations since research manager Kiranjeet Kaur said. “Smartphones are an unprecedented op- 2013, when the company was worth half what “The companies fully understand how to portunity. We forecast at least for the next 10 it is today. He needs “a really big pocket” make the best of their people, a specialty or 20 years, there’s no replacement. But we because he carries four devices, including they inherited from Duan,” said Nicole Peng, don’t know,” Duan said. a heavily-used iPhone. In a 2015 post, he a senior director at Canalys. Importantly, they Cook said on the weekend that Apple argued Apple’s profit should reach $100bn understood their millennial audience. “Many doesn’t have a specific goal for market share. within five years. Today, Duan won’t say when of their managers are young and have been “The competition is more fierce in he actually bought in but says much of his working at the company since graduation.” China - not only in this industry, but in many overseas wealth remains tied up in the iPhone Duan’s latest endeavours were, in part, industries,” Cook told the China Development maker. He even lives in Palo Alto, an easy drive dreamed up in Apple’s backyard. By 2001 at Forum in Beijing. “I think that’s a credit to a from Apple’s new UFO-like headquarters in the age of 40, Duan had decided to move to number of local companies that put their ener- Cupertino. California to focus on investment and philan- gies into making good products.” “Apple is an extraordinary company. It is a thropy, later installing his family in a mansion Duan has increasingly kept his distance model for us to learn from,” Duan said. “We he reportedly bought from Cisco Systems Inc from the Chinese smartphone makers despite don’t have the concept of surpassing anyone, chairman John Chambers. But the advent of remaining a significant shareholder (he won’t the focus instead is to improve ourselves.” the smartphone forced the entrepreneur out say how much). He says he prefers to stay Oppo’s gains against Apple may now earn of retirement. By the second half of 2000s, out of the spotlight and enjoy California with an even broader following for the billionaire BBK was on the verge of falling apart as sales his journalist wife and kids. In fact, he attends dubbed China’s Warren Buff ett by local media of its basic devices slowed. The likes of Huawei board meetings but claims to get most of for his investment acumen. Born in Jiangxi, a and Coolpad were making smartphones his information on Oppo and Vivo from the birthplace of Mao Zedong’s Communist revo- priced at around 1,000 yuan. That nearly put Internet, to avoid “disturbing them.” lution, Duan began his career at a state-run the company under, Duan recalled. His rivals have been less considerate. Last vacuum tube plant before making his name “We were in serious discussions about how October, Xiaomi Corp co-founder Lei Jun with homegrown electronics. to close the company peacefully – in a way lambasted competitors who build dense store Duan left the factory floor around 1990, that the employees can leave unhurt and sup- channels in rural areas in pursuit of quick when China was just embracing capitalism pliers don’t lose money,” he said. sales. In an interview with China Entrepre- and opening industries to private investment. Those intense brainstorming sessions neurs Magazine in October, Lei accused such He headed to southern China’s Guangdong spawned the two businesses that would go on players of using “imbalanced information” to province, then the cradle of liberal reforms, to embody Duan’s greatest success. In 2005, trick buyers into shunning Xiaomi, precipitat- Flipkart secured its latest funding on Friday at a valuation of about $10bn, sources said. The latest fundraising to run a struggling electronics plant. His first the entrepreneur and his protege Tony Chen ing its decline from the top spot. shows investors believe Flipkart has a good chance of beating back the competition, despite a current dismal environment for capital-raising and the startup’s own internal ructions, sources said. Gulf Times 14 Tuesday, March 21, 2017 BUSINESS

‘PBoC should clarify Profi ts seen under pressure rate policy’

Reuters Beijing for China banks as costs rise China’s central bank should clarify its new short-term policy Reuters rate and the target rate level Hong Kong/Shanghai as soon possible, according to a central bank working paper, as authorities in the world’s hinese lenders in 2016 likely second-largest economy slowly posted their lowest interest mar- shift to a tightening bias. Cgins since the global fi nancial These actions will help to crisis, due to higher costs and fewer stabilise expectations about lucrative lending options, with the go- the “interest rate corridor” ing set to get tougher as the key gauge of framework, the paper published profi tability stays under pressure. on the PBoC website yesterday While credit growth in China has said. remained strong, bad debt continues The PBoC has raised primary to drag on performance, analysts said, money market interest rates in ahead of annual reports from lenders small increments several times starting next week. since late January, most recently Margins have been hit hard after Bei- last week, while trying to reas- jing cut benchmark interest rates six sure markets with hints that it times in 2014-2015 in a bid to revive a is in no rush to hike benchmark slowing economy. lending and deposit rates soon. The pressure on net interest margins While the tightening ties in – the diff erence between interest paid with one of the government’s and earned – will continue to weigh on top priorities this year – contain- bottom lines across the sector in 2017, ing the risks from a mountain of adding to fi nancial sector vulnerability, debt – market watchers are also analysts said. wondering if the central bank At Agricultural Bank of China, mar- is keen to tailor policy more gins likely fell to 2.27% in 2016, the low- precisely to better support the est since at least 2008 and down from yuan currency rate and reduce 2.66% a year ago, Thomson Reuters pressure from capital outflows. data shows. The working paper, authored Among China’s top fi ve lenders, Bank by the head of the People’s of China, Industrial and Commercial Bank of China’s (PBoC) research Bank of China and China Construction bureau Xu Zhong, said the Bank are all set to see weaker margins. central bank has a lot of room to China’s central bank has moved to improve its communication with marginal tightening this year by rais- financial markets. ing short-term interest rates in what “(The PBoC) should increase economists see as a bid to curb capital the frequency, clarity, accuracy outfl ows, and as policymakers look to and consistency of informa- rein in uncontrolled lending. tion disclosures, and explore Smaller banks will see a “very sharp multiple channels to express its reduction” as liquidity tightens and economic and financial views they face higher funding costs with the and policy intentions,” said the interbank borrowing rates going up, A man and his daughter ride a bicycle past a branch of the Industrial and Commercial Bank of China in Beijing. Chinese lenders in 2016 likely posted their lowest interest paper. The central bank has said Alicia Garcia Herrero, chief Asia margins since the global financial crisis, due to higher costs and fewer lucrative lending options, with the going set to get tougher as the key gauge of profitability stays been developing an interest rate Pacifi c economist at Natixis. under pressure. corridor, which is considered Banks tend to rely heavily on short- a step forward in financial term, interbank lending, which connect growth was twice as fast as nominal But the combined ratio of non-per- Chinese banks’ volume of bad loans medium term, said bankers and sector liberalisation in which rates are strong lenders with weaker ones, and GDP. forming loans and special-mention climbed to 1.51tn yuan at end-2016, the analysts. set by the market within a band higher rates on these loans will result in In 2016, new bank loans totalled loans – credit that may potentially turn highest since 2005. “We have (seen deposits grow), be- established by the PBoC using an increase in bank funding costs. $1.8tn – about the same size as Italy’s sour – could rise to 6.5%-7% by end- China is looking to address this with cause people can’t invest abroad so eas- various short-term policy tools. “It’s getting very tough for smaller total economic output – and surpassed 2017, from around 6% last year, as per regulations, such as those aimed at bol- ily anymore. Some economists say the banks in China in terms of liquidity, the levels of China’s massive credit-led S&P estimates. stering oversight of opaque and shadow They can’t get their money out to buy seven-day reverse repurchase cost of wholesale funding,” Garcia Her- stimulus during the global fi nancial cri- Yulia Wan, bank analyst at rating banking-linked fi nancial assets, in- insurance,” said a banker at one of the rate has become a de facto rero said. sis, calculations based on central bank agency Moody’s, sees banks facing cluding wealth management products top-10 listed banks, referring to main- policy rate, though the PBoC Total credit growth in China jumped data show. “short-term pressures, because to re- (WMPs). land Chinese buying investment-linked said the recent rate hikes do not from slightly below 10% in mid-2015 to Rating agency S&P sees China’s loan duce leverage, fi rms in oversupply-hit A surge in deposits following the insurance products in Hong Kong to cut constitute a benchmark policy 13.5% in January this year. growth, excluding public sector debt, sectors will be shut down or restruc- crackdown on high-yielding WMPs and their exposure to a weaker yuan. rate increase. The International Monetary Fund last slowing to 11% this year from an esti- tured, which typically means credit or capital outfl ow controls could, however, year warned that the country’s credit mated 13% in 2016. economic losses for banks”. ease bad debt concerns in the near to

Xiaomi unveils second Vodafone, Idea in $23bn deal to India manufacturing unit

IANS The company also launched Rs5,999 New Delhi Redmi 4A smartphone powered by create new Indian telecom leader Qualcomm Snapdragon 425 processor paired up 2GB of RAM. Reaff irming its commitment to ‘Make Xiaomi entered India in July 2014 Reuters in India’ after logging $1bn in revenue and quickly announced plans to Mumbai in the country last year, Chinese establish its first manufacturing plant. smartphone-maker Xiaomi yesterday The first plant went live in August announced its second manufacturing 2015 and by March 2016, over 75% of ritain’s Vodafone Group and unit in partnership with Taiwanese its phones were being manufactured Idea Cellular agreed yesterday electronics major Foxconn in Andhra in India. Bto merge their Indian operations Pradesh. The plant has also helped create in a $23bn deal, creating the country’s With the new manufacturing plant employment for more than 5,000 biggest telecoms business after the also at Sri City, in Andhra Pradesh, people from over 100 surrounding entry of a new rival sparked a brutal more than 95% of Xiaomi’s smart- villages. More than 90% of the work- price war. phones sold in India will be manufac- force employed are women. The combined entity would have tured in the country. The new phone with 5-inch-HD dis- almost 400mn customers, overtak- Xiaomi will now have a combined play features 13MP rear camera, 5MP ing market leader Bharti Airtel to ac- production capacity of one phone per front facing camera with Beautify count for about 40% of revenue of the second during operational hours. mode and houses 3,120mAh battery. world’s second-biggest mobile phone “We are present in 20 markets glo- Consumers can buy Redmi 4A services market by users after China. bally but India tops in terms of volume starting March 23, 12 pm onwards The deal underscores how India’s and is also the fastest growing market exclusively on Mi.com and Amazon. mobile industry is being transformed for us. All eyes are on this market and “With this new plant and our latest by the launch last year of Reliance Jio we will continue to do what we are Redmi 4A, we are truly excited to be Infocomm’s 4G mobile broadband doing and provide great after sales playing a role in enhancing the qual- network. service and experience for our users,” ity of life for people in India and being Built at a cost of more than $20bn Manu Jain, vice president and manag- a part of the fabric of the country,” by India’s richest man, Mukesh Am- ing director, Xiaomi India, told IANS. added Jain. bani, Jio has off ered free services for months. That has forced India’s three biggest operators – Bharti, Vodafone and Idea – to slash prices and accept lower profi ts, and sparked a wave of consolidation in the sector. “We are very complementary,” Vo- dafone chief executive Vittorio Colao told a news conference in Mumbai af- Kumar Mangalam Birla, chairman of Aditya Birla Group (left), shakes hands with Vittorio Colao, CEO of Vodafone Group, ter the deal was announced. “Idea is after a news conference in Mumbai yesterday. strong where Vodafone is weaker, Vo- dafone is strong where Idea is weaker.” Friday. Vodafone, the world’s second- offi cer would require the approval of group, a unit of Bharti Airtel and Idea. The two companies, which an- largest cellphone operator, will own both companies, which would get the But Vodafone and Idea said they will nounced in January that they were in 45.1% of the merged entity, after it right to nominate three board mem- look to reduce their tower assets expo- talks, will have to shed spectrum in transfers about 4.9% to promoters of bers each. sure, including selling their stakes in some areas to meet India’s rules, al- Idea or their affi liates for Rs38.74bn Vodafone, which will cut its net the joint venture. though Colao said it would be “small”. ($592.15mn) in cash, Idea said. debt by about $8.2bn with the deal, Analysts have said Jio’s entry is the The deal is expected to close in 2018. Aditya Birla Group, the major- has endured a tumultuous ride since catalyst for mergers and exits of some Shares in Idea rose as much as 14.3% ity owner of Idea, will own 26% while it entered India in 2007, with a high- foreign players. Bharti Airtel is in the immediately after the news but then other shareholders will own the re- profi le tax battle and a long-delayed process of buying Telenor’s India op- fell 9% as traders said the implied maining 28.9%. Indian listing. erations, while two smaller players deal price for Idea was well below the Aditya Birla and Vodafone eventu- The South Asian country contrib- controlled by Malaysia’s Maxis and stock’s close on Friday. ally aim to own an equal share of the utes more than 10% of its revenues. Russia’s Sistema are merging their op- Vodafone shares were fl at in London joint venture, with a combined enter- Colao said on Friday the pending erations with Reliance Communica- trading as of 0942 GMT. prise value of $23.2bn. case, with India demanding more than tions’ wireless unit. Idea said the rough deal price Idea would have the sole right to ap- $2bn in taxes, will not aff ect the deal, “Consolidation is a much anticipat- worked out to Rs72.5 per share but point the chairman, while Vodafone which needs regulatory approval. ed and very welcome development in From left: Xiaomi India vice president and managing director Manu Jain stressed that was only for illustrative would appoint the chief fi nancial of- The deal does not include Voda- this beleaguered telecom sector,” said and product head Jai Mani during the launch of Redmi’s 4A smartphone purposes and was not the actual price. fi cer. The appointment of a chief ex- fone’s 42% stake in Indus Towers, Arpita Pal Agrawal, a partner and tel- in New Delhi yesterday. Idea’s shares closed at Rs108.10 on ecutive offi cer and a chief operating a joint venture between the British ecom analyst at PwC India. Gulf Times Tuesday, March 21, 2017 15 BUSINESS First skirmish of G20 sets scene for battle of trade ideas

Bloomberg Donald Trump. Before he and the rest of might be produced at all. avoided a fallback into protectionism and other signals from the US administration VTB Capital in London and a former UK London the group’s leaders meet in Hamburg in The US delegation, led by Treasury that we kept the global economy open,” were pointing to less interest in global Treasury off icial. “An increase in trade July, his counterparts have little more Secretary Steven Mnuchin, wanted a Moscovici told reporters in Baden-Baden. cooperation,” she said. “What matters the protectionism is a key downside risk for As global finance chiefs return from than 100 days to gauge if the removal of reference on the need for trade to be “I cannot overstate the importance of most is not what they say — it’s what they the global economy.” their first collective engagement with the those words represents the beginning or “fair” while China, a previously unlikely avoiding any rollback on this.” actually do.” However the discourse evolves, Dono- Trump administration, they’re bringing the end of his administration’s attempt to champion in such matters, led a defence Speaking in Hanover on Sunday, One area of contention that remained van of UBS observes that such arguments home a load of unfinished business. reset global terms of trade that it abhors of the existing rules-based regime under German Chancellor Angela Merkel and relatively untouched at the G20 meeting over trade risk being a quarter of a century While the weekend meeting of the as economically unfair. the World Trade Organisation. Japanese Prime Minister Shinzo Abe called was currencies. out of date, because they focus on physical Group of 20 in the German spa town of “Saying that the G20 wishes to avoid In the end, ministers agreed that “we for a concerted eff ort to defend free trade, Despite Trump administration criticism commerce and ignore the changing nature Baden-Baden kept up its tradition of a protectionism does not necessarily make are working to strengthen the contribution saying global markets can be both open of Germany’s trade surplus, US off icials of the economy. Looked at through that communique to present a veneer of agree- it so — arguably protectionism has risen of trade to our economies,” a compromise and fair. “Of course we want fair markets, signed up to the group’s prior comments, prism, the contours of global trade are ment, it only did so by papering over new in the past few years in spite of public pro- to salvage what remained of the founda- but we don’t want to put up barriers,” “including that we will refrain from diff erent: Trump’s complaints about the US cracks in the order underpinning the world nouncements,” Paul Donovan, global chief tions of an understanding that the G20 Merkel said. competitive devaluations and we will not deficit overlook a surplus in services that economy. Barely hinting at the merits economist at UBS Wealth Management had long largely taken for granted. Despite the change in G20 wording, target our exchange rates for competitive amounts to $248bn, encompassing exports of free trade, the statement’s omissions in London, said by e-mail. “However, the Participants such as Pierre Moscovici, observers including Isabelle Mateos y purposes.” That lack of formal discord from education to software. show how global economic diplomacy deliberate change in tone reinforces the the European Union’s commissioner for Lago, a strategist at the BlackRock Invest- doesn’t exclude it also becoming another Donovan predicts that physical com- is now beset with a fault line that could idea that on trade, the Trump administra- economic and financial aff airs, are now ment Institute, remain sanguine about the battleground in due course, not least as merce will decline in relative importance overshadow it for months, if not years. tion will implement at least some of the holding out for the Hamburg summit to Baden-Baden outcome. She told Bloomb- part of the wider trade discussion. because of the virtual economy and the As recently as last July, the G20 had campaign rhetoric.” repair the damage. erg Television that there’s still a “glass half “The G20 communique danced around use of robotics to localise production. promised to “resist all forms of protection- That shift followed hours of wrangling “The single most important decision full” view. the key topic of protectionism and cur- “Supply chains are starting to shrink, ism,” a pledge now absent as the previous that kept off icials in suspense on whether which helped to fend off a type of depres- “The US secretary of the Treasury rency manipulation but bears the imprint and that process is likely to continue,” he consensus on commerce is challenged the G20 would even mention trade, with sion like in the 1930s in the wake of the engaged in the G20 meeting very mean- of the White House trade concerns,” says. “The question is whether it happens by the recent election of US President occasional doubts that a communique Lehman Brothers collapse was that we ingfully and very actively at a time when said Neil Mackinnon, an economist at naturally or in a disruptive manner.”

Hansteen to sell Dutch, German Germany, Japan push trade deal industrial properties as Merkel seeks anti-Trump allies for $1.4bn Reuters Bloomberg London Hanover ritain’s Hansteen Holdings erman Chancellor Angela Mer- has agreed to sell its Ger- kel and Japanese Prime Min- Bman and Dutch industrial Gister Shinzo Abe called for a property portfolios for €1.28bn concerted eff ort to defend free trade, ($1.38bn) to a venture between expanding the list of economic powers Blackstone Group and M7 Real joining together to counter the US shift Estate. towards protectionism. The price represents a pre- Barely 48 hours after Merkel and mium of about 6%, or roughly President Donald Trump clashed on €76mn, to the assets’ valuations economic policy at their fi rst White at the end of 2016, Hansteen said House meeting, the German leader in a statement yesterday. called for swift conclusion of a trade Hansteen’s shares rose more accord between Japan and the Euro- than 6%, before paring gains to pean Union. That followed a renewed trade up 3% at 125.55 pence at German-Chinese commitment to open 0850 GMT. markets on the eve of her trip to Wash- They were the top gainers on ington and Merkel’s backing for a free- London’s midcap index. trade accord between the EU and Mer- “This is a compelling oppor- cosur, the South American economic tunity to crystallise both the re- bloc. valuation gains from these Ger- “Of course we want fair markets, man and Dutch assets achieved but we don’t want to put up barri- by our active asset management ers,” Merkel said Sunday evening in a and the gains from foreign ex- speech in Hanover, Germany, pushing change movements,” Hansteen back against Trump’s pledge to enact joint chief executives Morgan “America First” policies. “At a time Jones and Ian Watson said. when we have to quarrel with many Last year, the industrial mar- about free trade, open borders and ket outperformed all other Eu- democratic values, it’s a good sign that ropean real estate sectors, in- Germany and Japan aren’t quarrelling cluding offi ces and retail, data about that.” from property consultant CBRE Abe said Japan, the EU’s second- showed, as the sector benefi ted biggest Asian trading partner after from higher demand for ware- China, “wants to be the champion of houses from retailers expanding upholding open systems alongside their online operations. Germany.” The prime minister, who Over the fourth quarter, Eu- met Trump in February, said “it will be ropean commercial real estate necessary to have rules that are fair and deals reached a record high of can stand up to democratic appraisal.” €86.8bn, boosted largely by a Abe and Merkel were due to give a press buoyant Germany market and briefi ng later yesterday at the Hanover growth in the Netherlands, ac- trade fair, where Japan is this year’s cording to the data. partner country. Hansteen, a UK real estate in- The display of German-Japanese German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe speaking at a press conference to off icially open the CeBIT technology fair in Hanover vestment trust, said that the sale unity underscores a rift elsewhere yesterday. Barely 48 hours after Merkel and US President Donald Trump clashed on economic policy at their first White House meeting, the German leader called for was expected to complete before among the world’s biggest economic swift conclusion of a trade accord between Japan and the European Union. the end of June and that it was ad- powers after US insistence on “fair” vised by property consultant JLL. trade triggered confl ict at a weekend ter that “Germany owes vast sums of The US stance is pushing China and those in the audience for the news con- retreat, wall itself off or withdraw,” she The sale leaves Hansteen with meeting of Group of 20 fi nance chiefs money” to Nato and the US for defence. Germany, the world’s No 1 and No 3 ex- ference. Merkel and her government said in a speech to parliament in Berlin its UK business, where the mar- in Germany. The clashing views of trade were porters, closer, with Merkel and Presi- have rejected those accusations as ab- on March 9. ket has seen some turbulence Another potential clash looms when exposed when Trump told Merkel at a dent Xi Jinping renewing their support surd. Talks on an EU-Japan accord began after Britain voted to leave the Trump, Abe, Merkel and the leaders of White House news conference on Fri- for open markets in a phone call on “I don’t believe in an isolationist in 2013 with the goal of lowering bar- European Union. Canada, France, Italy and the UK meet at day that the US had been treated “very, Thursday, hours before she travelled to policy, but I also believe that a policy riers to trade and investment on both However, Hansteen said it had a Group of Seven summit in Sicily in May. very unfairly” and said “negotiators for Washington. of trade should be a fair policy,” Trump sides. Japan and the EU jointly account not noticed any signifi cant eff ect A commitment to free trade and Germany” had bested their American Trump’s complaint on trade refl ects said on Friday. for more than a third of global econom- on demand for industrial space defence spending are emerging as the counterparts. comments by the head of his National While standing her ground with the ic output, according to European Com- following the June 23 vote. fi rst key dividing lines with the Trump Merkel replied with an explanation Trade Council, Peter Navarro, who has US president, Merkel is touting a trade mission data. “Across the UK, we are experi- administration, with Germany in the of how the EU conducts trade talks, denounced Germany’s trade surplus, accord between the EU and Canada Germany is ready to “be the motor” encing pockets of rental growth fi ring line on both counts. The US and saying it’s the Brussels-based Euro- accusing Europe’s biggest economy of that European lawmakers backed in for completing the deal as a signal that and shorter incentives being of- Germany traded barbs over the week- pean Commission that negotiates on exploiting its position within the euro February as an example of the power “we want free, open markets,” Merkel fered to tenants as demand in- end over Trump’s assertion on Twit- behalf of all 28 EU countries. area to gain advantage. He was among of open markets. Europe “must never said on Sunday. tensifi es,” the company said.

Visco says ECB could reduce gap between QE end and rate hike

Bloomberg The implications of long phases member Peter Praet countered that that incoming data will play a major Frankfurt of rates below zero have been a focal the current sequence has a “strong role in the coming months, and high- Fix-it tickets issued to banks to clean up their bad loans point of debate as the ECB prepares logical basis.” lighted the June 8 Governing Council to map an exit from three years of “The real non-conventional ele- meeting in Tallinn, when new eco- Bloomberg guidance in line with the severity and uropean Central Bank Govern- monetary stimulus amid accelerating ment of monetary policy is negative nomic forecasts will be presented, as Brussels scale of NPLs in their portfolios.” ing Council member Ignazio infl ation and strengthening economic rates,” Visco said in a press confer- a “very relevant moment” for future Daniele Nouy, head of the ECB’s EVisco said the central bank growth. Banks have complained that ence on Saturday. “We will have to decisions. supervisory arm, has made tackling could step away from its commitment negative rates — in place since June see when the expectations that those He spoke on the sidelines of a meet- European banks with large amounts of bad non-performing loans a priority since to keep interest rates low for a long 2014 — eat into their profi tability, po- rates can be negative for a long time ing of Group of 20 fi nance ministers debt on their books will begin to receive she began overseeing euro-area banks time after quantitative easing stops. tentially hampering lending. The ECB will be somehow interrupted.” and central-bank chiefs. In their fi nal reminders from the European Central Bank in 2014. She’s turned to Ireland’s head While the ECB’s current guidance has maintained that negative rates re- In the Bloomberg interview, Visco communique, they set aside a pledge to deal with the issue as policy makers try of banking regulation, Sharon Donnery, foresees that borrowing costs will inforce QE by pushing up prices and stressed that QE, negative rates and to avoid protectionism and signed up to chip away at the €921bn ($990bn) bad- to lead the charge, citing that country’s stay at current or lower levels “for an supporting the recovery. forward guidance are all parts of a to a fudged statement on trade in re- debt pile weighing on lenders. “good work” on the cutting bad loans. extended period” and won’t rise until As the economy picks up, calls on single policy package, adding that the sponse to calls by US President Don- The ECB published final guidance on The ECB won’t set deadlines or formal “well past” the end of bond-buying, the ECB to change its guidance are size of the balance sheet will be a key ald Trump to rethink the global order non-performing loans yesterday, laying reduction targets, rather asking banks the Bank of Italy governor said this getting louder. Some policy makers theme of future discussion. for commerce. out specific measures it expects banks to to come up with “realistic but ambitious period “could” be shortened. raised the issue at the March 9 Gov- “The consistency between these “It seems to me the US administra- take. The Frankfurt-based central bank time frames and appropriate options for “I cannot say that QE is somehow erning Council meeting, according to various components is important,” he tion recognizes the importance of an doesn’t plan to give quantitative targets each portfolio” on their own, according coming to an end, and at the same time people familiar with the matter, and said. “We have to be convinced that open economy,” Visco said. “The idea but will rather ask banks to formulate a to the statement. that interest rates are being main- Austrian governor Ewald Nowotny we are out of the low-infl ation condi- of a balanced and level playing fi eld strategy and implement it. The ECB “asks banks to devise a tained at a low level,” Visco said in a has said that the exit path followed tions that we have lived in in the last should be clearly addressed without “The guidance marks an important step strategy that could include a range of Bloomberg Television interview in by the Federal Reserve — tapering 3-4 years with one major considera- limiting at all the ability of free trade in addressing NPLs across the euro policy options such as NPL work-out, Baden-Baden, Germany, on Saturday. purchases fi rst, and raising rates only tion: that the risk of defl ation seems to improve our productivity growth area,” the ECB said in a statement. “The servicing, and portfolio sales,” it said in “It is a package, not single measures — after a long period — may not trans- to be really past.” and the ability to somehow have a ECB expects banks to fully adhere to the the statement. one by one — that we’ll discuss.” fer well to Europe. Executive Board In the interview Visco stressed better wealth for everyone.” Tuesday, March 21, 2017 GULF TIMES BUSINESS Porsche sets new record in 2016 financial year

Blume (centre) with other senior Porsche AG executives at the press conference. Blume and Meschke with Porsche 911 GT3

In the 2016 financial year, Porsche AG achieved record highs strategy. Porsche represents value-creating growth. We’re world. In terms of operating result, we’re striving to match increases customer benefits and makes processes more in terms of deliveries, revenue, operating result and number concentrating on delighted customers, solid returns and the value of the previous year, provided that exchange rates eff icient.” of employees. secure jobs.” remain stable”, Meschke continued. In 2016, the company founded Porsche Digital GmbH in Deliveries increased by 6% to 237,778 vehicles, thereby Lutz Meschke, deputy chairman of the Executive Board “We will gain impetus from the new Panamera, particularly Ludwigsburg and the Digital Lab in Berlin. Porsche also took achieving a revenue of €22.3bn (an increase of 4%). and Member of the Executive Board for Finance and with its plug-in hybrid versions and the Sport Turismo”, a stake in the venture capital fund e.ventures and the parking At the same time, the operating result rose IT, stressed: “With a profit margin of over 17%, Porsche Blume stated. service provider Evopark. disproportionately by 14% to €3.9bn. continues to be among the most profitable automobile Porsche is preparing for the mobility of the future. As “In the medium term, we want to generate a double-digit Return on sales experienced particularly impressive growth, manufacturers in the world. The key to this achievement a result, research and development expenditure was percentage of sales through digital services”, said Meschke. increasing from 15.8% (2015) to 17.4%. is our unique range of products and our healthy cost deliberately increased, so that in the 2016 financial year, the “In line with the Porsche Strategy 2025, we’re preparing the By the end of 2016, Porsche’s workforce had grown by 13% to structure.” figure rose to €2.2bn. company for the future”, stated Blume. 27,612 employees. The long-term currency hedging strategy also made an The sports car manufacturer is investing in the development “At Porsche, the mobility of the future is as much about new The chairman of the Executive Board of Porsche AG, important contribution to the record result. “We expect to of new plug-in hybrid vehicles and the purely electric Mission technologies and electrification as it is about purist, emotive Oliver Blume, expressed his thoughts at the annual press see moderate growth in terms of deliveries and revenue in E vehicle, as well as in digital transformation. sports cars”, the Porsche CEO explained. conference in Stuttgart-Zuff enhausen: “The successful the current financial year of 2017, despite the continuing Meschke: “Digitalisation is more than an investment in the “We are emphasising our tradition and shaping the sports annual financial statement attests to the quality of our economic and political uncertainty in various regions of the latest technologies. It opens new economic opportunities, car of the future.”

Insurance and petchems drag QSE surpasses 10,400 mark Saudi stocks Reuters Dubai

Stock markets in the Middle East were mixed yesterday with petrochemicals on stronger buying interests and the insurance sector weighing on Saudi Arabia while Qatar rose as By Santhosh V Perumal The GCC retail investors’ net profi t it completed its upgrade by index Business Reporter booking strengthened perceptibly to compiler FTSE Russell to secondary QR2.01mn against QR0.27mn on Sun- emerging market status. day. The Saudi index fell 0.5% to 6,919 he Qatar Stock Exchange, whose Total trade volumes rose 27% to points with the main drag coming 20 stocks saw doubling of in- 10.39mn shares, value by 38% to from the petrochemical sector as Tvestible weights by FTSE Rus- QR371.37mn and deals by 47% to Brent oil futures fell further towards sell from yesterday, rose 68 points to 4,293. $51 a barrel. surpass the 10,400 mark, mainly on The industrials sector’s trade vol- Saudi Kayan Petrochemical lost 1.9%. stronger buying interests from foreign ume more than doubled to 1.08mn eq- Most insurance shares, which had institutions. uities and value more than quadrupled risen strongly on Sunday, retreated. Led by real estate, industrials, tel- to QR82.19mn on more than doubled Solidarity Saudi Takaful slumped 5.6% ecom, consumer goods and banking transactions to 1,032. after the company said the regula- sectors, the 20-stock Qatar Index rose There was 72% surge in the real es- tor had suspended its right to issue 0.66% to 10,406.79 points despite tate sector’s trade volume to 2.65mn health insurance policies because of bearish global oil market. stocks and 96% in value to QR62.01mn regulatory violations; the firm did not Increased buying support from non- on more than doubled deals to 898. describe those violations. Qatari individual investors also helped The banks and fi nancial services Egypt’s index retreated 0.5% in the the market, whose year-to-date losses sector’s trade volume soared 39% highest volume in a month as inves- were pruned to 0.29%. to 4.16mn shares, value by 15% to tors took profits; the index has closed Islamic stocks were seen gain- QR159.69mn and transactions by 10% higher in seven of the last 10 sessions ing faster than the main index as well to 1,276. as the Egyptian pound weakened as other indices in the bourse, where The QSE’s market capitalisation gained more than QR4bn or 0.74% to QR559.44bn as small, large, mid and microcap scrips The transport sector reported 8% against the US dollar. small and large cap equities witnessed gained 0.76%, 0.64%, 0.51% and 0.48% respectively yesterday. expansion in trade volume to 0.42 eq- Dubai’s index lost 0.5% to 3,477 points maximum buying. uities, 1% in value to QR19.52mn and in very thin trade with declining However, domestic and Gulf insti- to 17,218.1 points, All Share Index by tar, Ooredoo, Mesaieed Petrochemi- buying also strengthened to QR5.42mn 6% in deals to 273. shares outnumbering advancing ones tutions as well as local retail investors 0.71% to 2,925.26 points and Al Rayan cal Holding, Qatari Investors Group, against QR3.94mn the previous day. The insurance sector’s trade volume 18 to three. were increasingly into profi t booking. Islamic Index by 1.04% to 4,128.51 Barwa, United Development Company, However, domestic institutions’ was up 5% to 0.21mn stocks, whereas Abu Dhabi’s index, however, added Trade turnover and volumes were points. Ezdan, Mazaya Qatar, Gulf Warehous- net selling increased substantially to value shrank 33% to QR8.53mn and 0.9% to 4,458 points on the back of on the increase in the bourse, where The real estate sector saw its index ing and Dlala. QR84mn compared to QR49.92mn on transactions by 5% to 126. gains in blue chips, which had been banking and realty sectors together expand 0.95%, industrials (0.92%), Nevertheless, among the losers were Sunday. However, the market witnessed 29% the main drag on the index in the prior accounted for about 66% of the total telecom (0.82%), consumer goods Qatar First Bank, Al Meera, Qatar Elec- Local retail investors’ net profi t plunge in the telecom sector’s trade session. volumes. (0.78%), banks and fi nancial services tricity and Water, Gulf International booking also rose considerably to volume to 1.71mn shares and 29% in Elsewhere, the Kuwait index edged up Market capitalisation gained more (0.75%) and transport (0.1%); whereas Services, Aamal Company and Qatari QR31.42mn against QR15.91mn on value to QR22.42mn but on 8% jump in 0.2% to 6,869 points, the Egypt index than QR4bn or 0.74% to QR559.44bn insurance declined 0.32%. German Company for Medical Devices. March 19. deals to 376. lost 0.5% to 13,023 points and the as small, large, mid and microcap About 64% of the stocks extended Non-Qatari institutions’ net buying The GCC (Gulf Cooperation Coun- The consumer goods sector’s trade Oman index fell 0.2% to 5,671 points scrips gained 0.76%, 0.64%, 0.51% and gains with major mover being QNB, rose signifi cantly to QR133.94mn com- cil) institutions’ net selling increased volume tanked 11% to 0.17mm equities, and the Bahrain index edged down 0.48% respectively. Qatar Islamic Bank, Commercial Bank, pared to QR63.22mn on March 19. to QR22.02mn compared to QR1.1mn while value gained 25% to QR17.01mn 0.2% to 1,374 points. The Total Return Index rose 0.66% Qatar National Cement, Industries Qa- Non-Qatari individual investors’ net the previous day. and transactions by 27% to 312.

Qatar banks ‘need to embrace digital transformation to drive cost-savings, effi ciency’

anks in Qatar need to con- ital currency and blockchain. Omar Mahmood, head (Finan- be maintained, but also nurtured. sider digital transformation “While these forces may cre- cial Services) at KPMG Middle East Data analytics can help fi nancial Bto ensure future growth, as ate some risk, they also create and South Asia said, “It is clear that institutions signifi cantly increase the industry continues to feel the huge opportunities for fi nancial automating or digitalising all proc- effi ciency, reduce costs and drive impact of advances in technology institutions. The more digitally esses will not be appropriate for profi t.” which are reshaping how organi- transformed a bank is, the more many markets, particularly in plac- Robotic Process Automation sations operate today, according to successful it is in creating value. es like Qatar where traditional face- (RPA) is also having a major impact KPMG’s head (Digital Transforma- Digitally transformed banks are to-face interactions are favoured. on the banking industry. Specifi - tion) Farhan Syed. more focused on customer needs However, smart use of digital forces cally designed software can replace In his keynote speech at KPMG and user interface experience, and where most appropriate can have a time-consuming manual process- in Qatar’s ‘Freshly brewed’ chief are therefore better at appealing positive fi nancial impact.” es, reduce human error and mini- fi nance offi cer (CFO) seminar se- to the market. In addition to this, A big trend reshaping the bank- mise labour costs. ries’ at the Four Seasons in Doha increased effi ciencies as a result ing industry globally is data analyt- On implementing RPA, Syed recently, Syed said there were six of adopting technology mean that ics. Traditional banks typically use continued, “Businesses can use forces driving digital transforma- digitally-focused banks can en- consumer data to run mail-outs for RPA to make changes to back-offi ce tion in the banking industry glo- hance their competitive advantage marketing campaigns. Digitally ad- functions at a relatively low cost, bally — mobile banking; using data and boost profi ts.” vanced banks are increasingly using and payback on investment is often and analytics for segmentation and In Qatar, he said some banks were data to analyse, segment and target felt within a year or so. Estimates marketing; using social platforms beginning to explore how digital consumers based on their needs suggest that robotics could replace to encourage consumer dialogue; technology could support their op- and interests, encouraging them to around 120mn roles globally by adopting cloud based systems to erations and sales; however, cultur- buy diff erent or new products. 2025, so it’s important for busi- reduce cost and increase effi ciency; al preferences suggest that an ele- According to Syed, “Data should nesses to explore implementation automating processes and systems ment of human interaction would be treated like human capital; it’s a but also consider reskilling their Syed delivering his keynote speech at KPMG in Qatar’s ‘Freshly brewed’ chief finance off icer using robotics, and exploring dig- always be important. new resource that not only needs to employees.” (CFO) seminar series’ in Doha.