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Wednesday, January 20, 2016 Rabia II 10, 1437 AH S&P REPORT: Page 16 Qatar has ‘signifi cant’ GULF TIMES strength in defending its fi xed exchange BUSINESS parity with US dollar IMF, HSBC see Saudi QIC posts QR1.06bn 2015 profi t growth slumping to on ‘successful diversifi cation’ 14-year low atar Insurance Company Group (QIC) on oil rout has posted a net profi t of QR1.06bn in Q2015 on “successful diversifi cation into more geographies and lines of business” as well Bloomberg as its “continued cost discipline”. Dubai The insurance major said the results “refl ect regional economic and investment headwinds due to lower oil prices and continued softening of Saudi Arabia’s economy is set to global reinsurance and specialty insurance mar- grow this year at the slowest pace kets”. since 2002 as the oil-price plunge The results were announced after a meeting drains the kingdom’s finances, of the QIC board of directors presided over by according to projections released Sheikh Khalid bin Mohamed bin Ali al-Thani, by the International Monetary chairman and managing director in Doha yester- Fund and HSBC Holdings day. yesterday. The insurer had last month suggested a total Economic growth in the world’s of 35% dividend (25% in cash and 10% in bonus largest oil exporter will slow to stocks) and also disclosed its intent to tap the 1.2%, the IMF said in an update to secondary market through a 20% rights issue. its World Economic Outlook. That’s Gross written premiums (GWP) expanded still more optimistic than HSBC, 49% to QR8.35bn mainly on reinsurance premi- QIC board of directors at its meeting yesterday. which expects the biggest Arab ums generated through QIC’s dedicated global economy to expand 0.8%. Growth reinsurance subsidiary, Qatar Re, which grew was 3.4% in 2015. 116%, now accounting for 50% of the group’s to- The prolonged oil slump saddled tal premium income. Saudi Arabia with a budget deficit Highlighting that 2015 was marked by a “sus- of about $98bn last year, pushing tained pace” of the group’s international ex- off icials to cut spending, consider pansion; it said “67% and 13% of overall gross an international sovereign bond written premiums are now sourced from outside sale and cut energy subsidies. The Qatar and the Middle East, respectively.” price of Brent crude has fallen by Against the backdrop of growing regional and more than 40% since October, global fi nancial market volatility, QIC’s net in- when the IMF last released vestment result came in at QR712mn. This was forecasts for the kingdom and said partially off set by a very strong net underwriting growth would be 2.2% this year. result of QR926mn, a signifi cant increase of 39% The fundamentals “seem to point on the previous year. to a low-for-long scenario for oil,” Sheikh Khalid said, “We are optimistic about Maury Obtsfeld, director of the our outlook for 2016. With renewed focus on in- IMF’s research department, said in ternational expansion in areas of high potential, a video released with the new data. we aspire to be ranked amongst Global Top 50 in- “With Iranian oil coming online, surance Groups by 2030.” with the resilience in the shale QIC Group president and chief executive extraction industry in the US, the Khalifa al-Subaey said, “2015 was a challenging possibility of shale extraction year for Middle Eastern and a number of global elsewhere, it’s hard to see oil going investment markets. On the back of our excel- Al-Subaey : Proven resilience. Right: QIC headquarters at West Bay . back to the $100 a barrel level lent geographical and product diversifi cation anytime soon,” he said. and sustained profi tability of our insurance and on equity stood at 18.1% against 18.4% in the 2015 and has “developed partnerships with cho- ance operation in the UAE and Kuwait drawing The benchmark Tadawul All Share reinsurance book, we have proven our resilience, previous year. This result compares favourably sen MGAs and cover holders to support carefully on years of experience with corporate clients in Index for stocks trimmed gains successfully navigating through the turbulent with both QIC’s regional peers as well as diver- selected portfolios.” the respective countries. after the data, trading 3.3% higher waters in 2015.” sifi ed international insurance and reinsurance Antares, the specialist Lloyd’s insurance and QIC has started making its personal insurance at 5,705.93 at 2.37pm, but jumped Buoyant personal lines markets in the Middle groups. reinsurance group which QIC acquired in 2014, products directly available to individual custom- 4% to close at 5,746 points in East and a rapid expansion into global specialty At the end of 2015, QIC group’s shareholders’ continued to broaden its global footprint by es- ers under the theme ‘Global Insurance – Local Riyadh. The measure has lost 33% (re)insurance markets in particular have off set equity was up 1% to QR5.99bn. tablishing a dedicated platform at Lloyd’s Asia Assurance’. over the past 12 months. the impact from declining equity markets in the QIC Europe, the group’s fully-owned Malta- in Singapore. In addition, Antares Lloyd’s Syn- The off ering includes a unique online plat- Saudi Arabia relied on oil for 73% Middle East, he said. based subsidiary dedicated to underwriting risks dicate 1274 launched its new Property Direct & form, whereby customers can buy or manage of its revenue last year, a level the QIC’s overall profi tability also benefi ted from across the European Economic Area has seen nu- Facultative division. their personal insurances (car, home, travel) from government is keen to reduce. the group’s “continued cost discipline.” Return merous new business opportunities throughout In 2015, the group also established retail insur- anywhere, at any time.

Oil rout could deepen as market ‘drowns’ in oversupply, warns IEA QIB ’15 profi t jumps 22% to QR1.95bn Bloomberg Saudi Arabia, the biggest oil exporter, London signalled again on Sunday it won’t re- ided by robust core earnings, additional Tier 1 capital by issuing lent in its strategy to preserve market Qatar Islamic Bank (QIB) perpetual sukuk for QR2bn. share even as prices crash. Ahas reported 22% increase in Total capital adequacy of the bank Global oil markets could “drown in Iran could be the only source of net profi t to QR1.95bn in 2015 and under Basel III guidelines is 14.1%, oversupply,” sending prices even supply growth in Opec this year as a suggested 42.5% cash dividend to against the minimum limit of 12.5% lower as demand growth slows and surge in Iraq fizzles out, the IEA said. shareholders. prescribed by the Qatar Central Iran revives exports with the end of International sanctions, including Total assets grew 32% to QR127bn, Bank. sanctions, according to the Interna- those on its oil sector, were lifted driven by robust growth in the fi - “These positive fi nancial results tional Energy Agency. on January 16 as Iran met the terms nancing segment, which registered a refl ect the successful implementa- The IEA trimmed 2016 estimates for of an agreement to curb its nuclear 46% growth to QR87bn. tion of the bank’s strategy to grow its global oil demand as China’s eco- development programme. Customer deposits reported a fi nancing and investment activities nomic expansion weakens and raised Iran could add 300,000 bpd by the strong growth of 37% to QR92bn. during 2015. The bank also managed forecasts for supplies outside the end of the first quarter and 600,000 Total income stood at QR4.51bn, to strengthen the key performance Organization of Petroleum Exporting bpd by the middle of the year, the registering a 24% growth with earn- and risk metrics through proactive Countries. While non-Opec supply IEA said. While that’s below off icial ings from fi nancing and investing fi nancial and risk management,” is set to drop 600,000 bpd in 2016, ministry plans to add 1mn a day by expanding 26% to QR3.89bn at the according to QIB chairman Sheikh Iran’s comeback could fill that gap mid-year, it could still be enough to end of 2015, refl ecting a healthy Jassim bin Hamad bin Jassim bin by the middle of the year. As a result, pressure prices further, the agency growth in the bank’s core operating Jaber al-Thani. “QIB remains com- world markets may be left with a sur- predicted. The country pumped at a 3 activities. mitted to supporting the local econ- plus of 1.5mn bpd in the first half. 1/2-year high of 2.91mn bpd in Decem- QIB was able to maintain the ratio omy through its innovative Shariah- “While the pace of stock-building ber, according to the report. of non-performing fi nancing assets compliant solutions off ered to its eases in the second half of the year Global oil demand growth slipped to to total fi nancing assets at less than large number of corporate custom- as supply from non-Opec producers a one-year low in the fourth quarter, 1%, one of the lowest in the indus- ers who are handling major national falls, unless something changes, the from close to a five-year high in the try, refl ecting the quality of the projects across diff erent sectors.” oil market could drown in oversup- third, amid mild winter temperatures bank’s fi nancing assets portfolio International ratings agency Fitch ply,” said the Paris-based adviser and economic weakness in commod- and its eff ective risk management has upgraded QIB’s long term issuer to industrialised economies. Prices ity producers. Consumption growth framework. default rating to “A+” from “A” with “could go lower.” will slow this year to 1.2mn bpd, or 1.3%, The Islamic lender continues to a stable outlook. Capital Intelligence Oil sank to a 12-year low of less than from 1.7mn a day in 2015, according to pursue conservative impairment rated QIB’s fi nancial strength rating $28 a barrel in London on Monday as the report, averaging 95.7mn bpd. policy with the coverage ratio for at “A” with stable outlook in view of the removal of international sanctions While supplies outside Opec proved non-performing fi nancing assets the signifi cant improvement in fi - over the weekend freed Iran to revive “resilient” for most of last year, they reaching 113% in 2015, up from 102% nancing asset quality and stabilised crude exports, threatening to swell a shrank on an annual basis in Decem- in the previous year. return on average assets. glut created by fellow Opec members ber for the first time in three years, Total shareholders’ equity reached Standard & Poor’s has retained and US shale drillers. according to the IEA. QR13.4bn, an increase of 7.6%. The QIB’s counterparty credit rating at Sheikh Jassim: Proactive financial and risk management. bank also raised Basel III-compliant “A-” with a stable outlook. Wednesday, January 20, 2016 2 ISLAMIC FINANCE GULF TIMES More women in Islamic fi nance sought to close the talent gap

By Arno Maierbrugger Gulf Times Correspondent Bangkok Gulf Times Exclusive he rapid rise of the Islamic econ- omy over the past decade has Tled to a signifi cant human capi- help to redress the gender imbalance tal challenge which has shifted into the that exists in the Islamic fi nance sector focus of many Islamic business insti- by supporting and developing the tal- tutions and banks in Southeast Asia ented women who want to work in the A minaret stands at the National Mosque of Malaysia in Kuala Lumpur. Malaysia’s sovereign wealth fund Khazanah Nasional Bhd started investor meetings in the and the Arab world, and even the In- industry,” said Safdar Khan, group head Middle East, Asia and Europe on January 17. ternational Monetary Fund (IMF). Es- for Islamic payments in Southeast Asia timations are that some 56,000 more and group country manager for Indone- qualifi ed experts will be needed to fi ll sia, Malaysia and Brunei at MasterCard. positions in the next fi ve years as growth The initiative is a three-year agree- in the Islamic fi nance sector, including ment between MasterCard and INCEIF banking, insurance and regulation, ac- that began in 2015 and will see up to two celerates. scholarships being awarded to full-time Several steps have been undertaken female students each year. The fi rst lately to close the skills gap. For exam- scholarship was awarded last week, and Asia sukuk fi nd new ple, the Chartered Institute of Islamic INCEIF will be opening applications for Finance Professionals in Kuala Lumpur, the next scholarship in February until Malaysia, just recently started a global end of July 2016. initiative to improve Islamic fi nance INCEIF’S scholarship corresponds skills among those who have studied it with the views of Samina Akram, a but not beyond the basics. By partner- former Merrill Lynch executive who ing with associations and regulators now runs a consultancy in London life in 2016 after the from the Middle East to Indonesia, the specialising in Shariah-compliant fi - renowned institute wants to increase nance and who launched the Women the attendance of its specialised courses in Islamic & Ethical Finance Forum to 3,000 in three years from presently (WIEFF), which is seeking to support 400. women in the Islamic fi nance industry. In another campaign, the IMF last WIEFF started with 30 “enthusiasts” year founded the Middle East Center back in 2007 and today has over 5,000 worst year in fi ve for Economics and Finance, based in professionals as members in over 20 Kuwait City and funded by the Kuwait countries. Akram has been named one Malaysia Khazanah, Indonesia ist attacks in Jakarta, while Malaysia $500mn of seven-year sukuk con- by Bloomberg show. The Jakarta Investment Authority, which has an of the most infl uential women in Is- start process for dollar issues; needs to repair confi dence after its vertible into equities of state power bombing on January 14 that killed even broader approach by grooming ex- lamic Finance. conditions good for high-quality credit outlook was cut by Moody’s company Tenaga Nasional Bhd. seven people including five ter- perts to eff ectively manage economies “The sector suff ers hugely from lack names: Union Investment Investors Service. Conditions are Moody’s cut Malaysia’s credit- rorists has clouded the outlook for throughout the Arab world in times of of expertise, and I strongly feel sup- good for quality names as dollar rating outlook to stable from positive Asia’s most regular issuer of Shari- fi scal hardships and other global chal- porting women in Islamic fi nance will Bloomberg funding still isn’t expensive, accord- earlier in January, citing an external ah-compliant sovereign bonds just lenges. Since its inception, it has been help solve the talent issue,” Akram told Kuala Lumpur ing to Union Investment Privatfonds environment that has crimped gov- as the economy is forecast to have training more than 5,400 offi cials from a recent Euromoney conference, adding GmbH. ernment revenue. Asia’s only major expanded last year at the slowest the 22 countries of the Arab League, us- that Islamic fi nance could also address “Market volatility is huge so far net oil exporter has been hit by a 41% pace since 2009. ing an Islamic fi nance approach to tack- a far bigger clients’ base by employ- sian issuers are leading a this year and market timing will be tumble in Brent crude over the past Khazanah may have to pay a pre- le economic woes. ing more women at a higher corporate promising start to the year for key for success,” said Sergey Der- 12 months and stands to lose 300mn mium of 150 basis points over US But the latest initiative, so to say, level than just administration or similar, Aglobal Islamic bonds after the gachev, a senior money manager ringgit ($68mn) for every $1 drop in Treasuries and Indonesia as much aims at hitting two birds with one stone, namely as client advisors, investment poorest annual showing since 2010. who helps oversee $13bn at Union the price of the commodity, accord- as 270 basis points, assuming they namely to address both the shortage in specialists or wealth managers because Malaysia’s sovereign wealth fund Investment in Frankfurt. “A premi- ing to government estimates. issue fi ve-year paper, said Win- Islamic fi nance experts and the fewer “from my personal experience women Khazanah Nasional Bhd started in- um has to be off ered.” He holds some Indonesia, which is rated three son Phoon, a Kuala Lumpur-based career opportunities for women in the also tend to prefer female fi nancial ad- vestor meetings in the Middle East, Khazanah dollar bonds and said he levels lower than Malaysia, plans fi xed-income analyst at Maybank Islamic economy. Credit card company visers, especially in the Middle East.” Asia and Europe on January 17. In- would look at the new issue given its to issue as much as $2bn of global Investment Bank Bhd. Those notes MasterCard and the Kuala Lumpur- She also feels that women have ideal donesia’s government is due to pick rarity. sukuk in 2016, Robert Pakpahan, were last paying 1.46%. based International Center for Edu- prerequisites for the job. banks for an off ering by the end of Sales of global Shariah-compliant director general for budget financ- “Weighing against the risk of po- cation in Islamic Finance (INCEIF), a “Women seem to think carefully and January, the sixth consecutive year securities fell 30% to $34.9bn last ing and risk management at the Fi- tentially higher dollar-funding con- university set up by Malaysia’s central take fewer risks when it comes to in- it’s issued international sukuk. Ka- year and there’s so far been no new nance Ministry, was cited as saying ditions when the Federal Reserve bank to develop human capital for the vestment, and they also seem to care zakhstan and Bangladesh are also off erings in 2016, data compiled by by the local daily Kontan in Octo- tightens further, it could still be a global Islamic fi nance industry and one more about ethical ways of investing. both considering sales. Bloomberg show. ber. It sold $2bn of 10-year dollar good window of opportunity,” said of the most regarded institutions of its But we need to start early in the process The two entities will have to navi- Khazanah, which is rated the Islamic notes in May at a coupon of Phoon. “Overall demand for sukuk kind globally, recently teamed up to of- of attracting and developing female tal- gate emerging-market turmoil trig- fourth-lowest investment grade of 4.325% and drew $6.8bn in orders. remains healthy, although there may fer women a scholarship to pursue IN- ent. There is a strong interest amongst gered by a sliding Chinese yuan and A3 by Moody’s and the same level as The securities were paying 5.02% need to be some yield premium with CEIF’s Master’s programmes for Islamic female graduates to enter the sector tumbling commodities. Indonesia is the sovereign, last sold foreign-cur- yesterday, compared with 4.96% a confl uence of uncertainty and cau- Finance. but they are unsure on how to enter it,” on high alert after last week’s terror- rency Islamic debt in 2014. It issued at the end of 2015, data compiled tious sentiment.” “We hope that the scholarship will Akram said.

EDUCATION/General FAQ Sharjah eyes 5-yr sukuk, could issue as soon as this week

„ What are Islamic financial and hence are ruled out by Shariah. securities? Nevertheless, Islamic finance Conventional equity products are off ers alternative risk management included as Islamic financial instruments instruments. Examples are salam sale if they are Shariah (Islamic law) (an alternative to forward contracts compliant. This is because they are where the payment is made on the spot based on the principle of profit/loss while the delivery is deferred), bai-istisna sharing. Shariah compliance is mainly (a manufacturing contract where both based on the nature of the business (e.g. delivery and payment are made at a Shariah prohibits investing in alcohol future date), synthetic currency forward and gambling) and the absence of (Shariah-compliant forward created by interest related activities. Islamic equity investment banks through standard instruments also include the more domestic and foreign murabaha classical Musharakah and Mudarabah. contracts), bai al-urbun (an alternative Both these products are also based on to a call option where the premium is the principle of profit/loss sharing. included in the sale price if the buyer Fixed income products: Conventional exercises the option), and Islamic swaps fixed income instruments off er interest (an exchange of Ijara securities as payments (riba) and therefore are not the swap of loans is not permitted by Shariah-compliant. Islamic fixed income Shariah. The two legs can be in diff erent instruments are designed as asset- currency as well as floating or fixed). backed products and hence carry an ownership risk (e.g. lease contracts). „ Is there uniformity in Islamic Islamic debt mechanisms that are widely financial markets? recognised as Shariah-compliant include Due to diff erences in the interpretation murabaha, bai-bithaman-ajil, ijara, salam, of Islamic principles, some financial istisna, istijar and quard-hasan. Islamic instruments may not be recognised as bonds (Sukuk) fall naturally under Shariah-compliant in all countries. For the above category of fixed income example, selling debt paper at a discount securities. Sukuk can be rated and listed. can be controversial. In Malaysia, debt is Sukuk-al ijara (or ijara bonds) represent treated as any other asset and is traded leased assets; sukuk-al salam (salam freely, while it is not permitted in the bonds) are based on deferred-delivery Middle East, as of 2005. sale contracts for commodities; sukuk-al istisna are designed in a similar fashion „ How big is the Islamic financial but with manufactured products as market? underlying; sukuk-al murabaha; sukuk The Islamic financial market is very al-mudarabah (mudarabah or muqaradah young, and as of 2005, is experiencing bonds) are very similar to conventional phenomenal growth. Non-Muslim revenue bonds and hence are backed individuals and communities that seek by the revenues of the project financed ethical financial solutions have also been by the bond issue. Musharaka bonds are attracted to Islamic finance. Conventional very similar to muqaradah bonds with borrowers have tapped the Islamic the main diff erence being the number finance market to achieve a wider and of investors (muqaradah bonds involves more diverse investor base. An example one investor). of this would be the Islamic bonds Passengers standing at check-in desks for Air Arabia at the Sharjah International Airport. Sharjah is targeting a five-year sukuk off ering and could Derivatives products: Conventional issued by the World Bank or by Saxony, a launch a transaction as early as this week, a document from lead arrangers showed yesterday. The sovereign finished roadshows on Monday in financial derivatives like forwards, German state. London, following investor meetings in the Middle East and Asia last week, and was now in the process of receiving feedback from the market, the futures, swaps, and options have document added. The emirate mandated Bank Of Sharjah, Barclays, Commerzbank, Dubai Islamic Bank, HSBC and Sharjah Islamic Bank to arrange elements of riba, gharar (excessive Source: Ethica Institute of Islamic Finance the meetings and the possible deal. Reuters reported earlier this month that Sharjah was planning to raise funds through a dollar-denominated uncertainty) or maysir (gambling) via Bloomberg sukuk of benchmark size, in what could be the first sovereign Islamic bond issuance from the region this year. Gulf Times Wednesday, January 20, 2016 3 BUSINESS

New Delhi summit next month to focus on India Gulf banks exploring investment opportunities India’s Ministry of Finance contribution in the NIFF, India is organising the ‘India is seeking equity participation Investment Summit’ in New from foreign anchor partners, Delhi on February 4 and 5. including SWFs and pension The two-day summit will focus funds. prospects in Iran; on investment opportunities in The objective of NIIF is to India, and also discuss issues maximise economic impact relating to the capital market mainly through infrastructure regulatory structures. development in commercially A large number of investors, viable projects, both greenfield including sovereign wealth and brownfield. funds (SWF) and pension More information regarding others may follow funds are expected to attend the India Investment Summit the summit. It would also can be had from Dinesh Reuters showcase and discuss the Sharma, additional secretary, Dubai/London huge investment opportunities Department of Economic in India, especially in the Aff airs [Tel: 0091-11-23092734; infrastructure space. E-mail:[email protected]]. ulf banks including Dubai’s larg- To further encourage large Additional information est lender Emirates NBD are al- scale foreign investments, regarding NIIF can be had from Gready meeting prospective clients India has recently established Chanchal C Sarkar, director, and taking legal advice about entering the National Investment and NIIF, Department of Economic Iran’s fi nancial system now that many Infrastructure Fund (NIIF). Apart Aff airs [Tel: 0091-11-23092908; international sanctions have been lifted. from the government’s own e-mail:[email protected]] European banks are more cautious with some, including Deutsche Bank, re- membering past fi nes from regulators for breaking sanctions, though Commerz- bank said it was reviewing its policy of not doing business in Iran. For many banks there are concerns Turkish central bank about being caught up in ongoing US sanctions. Many international sanctions relating to Iran’s nuclear programme keeps rate on hold were lifted but most involving US play- ers remain in place. Non-US banks may trade with Iran without fear of punish- despite lira pressure ment in the US but US banks may not do so, directly or indirectly. Other sanctions prevent US persons Reuters 7.25% and its overnight lending from trading with Iran and also pro- Istanbul rate at 10.75%. A Reuters poll hibit Iran trades in US dollars from be- of 19 analysts this month found ing processed through the US fi nancial A logo sits on display inside an Emirates NBD bank branch in Dubai. ENBD, Dubai’s largest lender, has in recent months met with that all but one expected the system via the New York Federal Reserve. the Iranian business community in Dubai and discussed potential banking opportunities involving Iran once sanctions lifted. The urkey’s central bank left bank to leave rates steady. This is a signifi cant complication given bank said its lawyers were reviewing the sanctions changes but would not be making any changes to its policies yet. its main interest rate un- Given the tumbling lira cur- the dollar’s role as the world’s main busi- Tchanged at 7.5% for the rency and mounting infl ation, it ness currency. resentative offi ces in Tehran, but ENBD’s from doing business connected to Iran,” “They are very interested, but very 11th straight month yesterday, a “beggars belief” that rates have Regional banks are likely to lead the has not been operational since 2008. a spokesman said. cautious,” said Walid Alameddine, widely expected move that could not been raised already, said Ni- way on business deals. Banks from the The status of QNB’s offi ce is unclear and Standard Chartered was fi ned $667mn Promontory boss for the Middle East and put more pressure on the coun- cholas Spiro of Spiro Sovereign UAE, Oman, Qatar and Kuwait have the bank did not respond to a request to in 2012 for breaking US sanctions and Turkey. Another complication is that try’s languishing currency. Strategy, a consultancy. spent months drawing up plans for en- comment on its Iran plans. branded a “rogue institution” by New banks and businesses will not be able to The lira has weakened sharply “The longer Turkey’s central tering the Iranian market, two sources The UAE is Iran’s fourth largest trading York’s banking regulator at that time, use US correspondent banks for clearing against the dollar since late De- bank refrains from raising rates, familiar with the matter said. partner, home to a large number of eth- and threatened with loss of its state li- or settling any Iranian business deals. cember, when the bank surprised the stronger the perception “Regional institutions will test the nic Iranians and a channel for consumer cence. A spokeswoman for the Asia-fo- Iran will instead have to secure dollars markets by leaving rates on hold. that its hand is being forced by water and other foreign banks will watch goods imports into that country. But that cused bank said it would not undertake through non-US banks, money changers That decision was widely seen as Mr Erdogan’s economics team to see what happens,” said Stuart Jones Jr, relationship has been dented by sanc- any new transactions involving Iran. or convert other currency reserves into bowing to pressure from Presi- and the greater the strain on an executive director at EY and a former tions and a spat between Iran and Saudi Foreign banks considering establish- dollars. dent Tayyip Erdogan, who has Turkish assets at a time when US Treasury attaché to the Middle East. Arabia. ing a subsidiary in Iran will in most cases In turn, for those banks to maintain re- repeatedly railed against high sentiment towards emerging “There are certain regional institutions State Bank of India also has an Iran require a partnership with a local entity lationships with US clearing banks, they rates. markets is particularly bleak,” taking legal advice to manage very real representative offi ce, according to its unless they set up in one of a handful of will have to fi nd ways to demarcate their Investors say the central bank Spiro said. risks associated with doing business website, although calls to the branch free zones, said Nicholas Gilani, senior dollar business from their Iran dealings. is long overdue for a rate in- The bank also stayed mum with Iran.” were unanswered. partner at Arjan Capital, a consultancy Some Gulf lenders have already been crease, both to rein in infl ation on plans to simplify its complex Emirates NBD (ENBD), Dubai’s largest Aside from trade fi nance, wealth man- advising on Iran business. taking legal advice on how to facilitate - now hovering at more than system of using multiple interest lender, has in recent months met with agement and project fi nance are seen as Since Saturday’s deal, many Ira- such a move, a legal source said. 8%, far above an offi cial target of rates. The bank said last month the Iranian business community in Du- potential sweet spots for banks entering nian banks are in the process of being There are other potential risks. 5% - and to put a fl oor under the it would start to simplify policy bai and discussed potential banking op- Iran, though some banks will be wary of switched back into the SWIFT fi nancial Sanctions remain in place for Iran’s lira, which has been hit by wor- once market conditions were portunities involving Iran once sanctions their chequered history of Iranian busi- message system, a key to them re-enter- hardline elite Islamic Revolutionary ries about political infl uence on stable enough. Investors have lifted, the two sources said. ness dealings. ing the international fi nancial network. Guard Corps (IRGC) and companies and monetary policy. been waiting for any new signals ENBD said its lawyers were reviewing Commerzbank and Deutsche Bank are But some Iranian banks remain on entities linked to it. Banks or other enti- “The Turkish central bank’s the bank could move toward a the sanctions changes but would not be among several international banks fi ned the sanctions list, a potential obstacle ties found to be trading with the IRGC or decision to keep its key interest more orthodox system of using a making any changes to its policies yet. in the past for violating US sanctions. for any foreign bank seeking a partner. affi liates faces being fi ned or frozen out rates on hold today (Tuesday), single interest rate. “Any re-engagement with Iran will Commerzbank is nevertheless looking SWIFT said in a statement it “remains of the US fi nancial system or even sanc- despite pressure on the lira and Instead, the bank said it “as- take place in several stages and will re- into Iran. prohibited from providing specialised tioned themselves. the deteriorating infl ation out- sessed the heightened global quire updates to policies, procedures, “Commerzbank is monitoring the de- fi nancial messaging services to the EU- “One of my biggest concerns is the look, adds to the impression that volatility since the beginning of systems and controls as well as ongo- velopment very closely and is reviewing sanctioned Iranian banks that remain possibility of snap back. What happens if monetary policy moves are being the year and the January infl a- ing communication with regulators and a possible adjustment of its policy (of do- listed under EU Regulation”. the US turns around in, say, six months swayed by government infl uence tion report forecasts”. correspondent banks,” the bank said in ing business with Iran),” a spokeswoman The Dubai offi ce of consultancy Prom- and says Iran has reneged on its com- and will further damage the cen- Now, that overhaul may not a statement, adding it did not currently said. ontory Financial Group, which advised mitments,” said a sanctions manager at a tral bank’s credibility,” William come until at least April, when have any material assets or liabilities in Other Western lenders are more cau- several global banks on sanctions com- major UK-based bank. Jackson of Capital Economics governor Erdem Basci is due to Iran. tious though. pliance, has received a fl ood of enquir- “I don’t think any of the banks will said in a note. be either re-appointed or re- ENBD and Qatar National Bank (QNB), “Deutsche Bank will, for the time be- ies from lenders since Sunday including want to be seen as the ‘go to’ bank - at The bank also stuck to its placed, said Ozgur Altug of BGC the Middle East’s largest bank, have rep- ing, stick to its decision of withholding from the Gulf, Lebanon and Turkey. least for now.” overnight borrowing rate at Partners. Saudi, Gulf subsidy cuts seen damping oil use in 2016

Cuts boosted kingdom’s gasoline prices by about 50%; Sabic’s cost of doing business to rise 5%, says IEA

Bloomberg Dubai

audi Arabia’s decision to reduce energy subsidies will lead to higher fuel prices and Slimit growth in the country’s consump- tion of oil in 2016, according to the International Energy Agency. Similar cuts by other Gulf Arab states will further squeeze demand growth in the Persian Gulf region. “Already forecast to see decelerating demand growth in 2016, higher prices will inevitably fur- ther dent the Saudi Arabian oil demand outlook,” the IEA said yesterday in its monthly report. Saudi Arabia announced plans in December to cut spending and said it might tap local and international debt markets this year to fund a A Saudi man walks past a pump at a petrol station in Jeddah. Saudi oil demand is forecast to rise by defi cit after the 35% plunge in oil prices last just 45,000 bpd to 3.3mn bpd in 2016, sharply lower than the 125,000-bpd gain in 2015, the IEA said. year eroded state income. The kingdom said it expects to sell stakes in some state-owned enti- mand, which will gain by only 100,000 bpd to already precarious economic growth as costs for ties, including Saudi Arabian Oil Co, the world’s 8.3mn bpd, it said. industry increase,” the IEA said. biggest crude exporter, known as Aramco. It As of January 11, gasoline prices in Saudi Ara- Saudi Arabia Basic Industries Corp, known as also took the unprecedented step of reducing bia rose to 0.75 riyals (20 cents) per liter from 0.45 Sabic, said its cost of doing business will rise by fuel subsidies, raising retail gasoline prices by riyals per liter for 91- octane fuel, and 0.9 riyals more than 5% due to the 2016 Saudi budget, the about 50%. per liter from 0.6 riyals per liter for 95-octane IEA said. Yanbu National Petrochemical Co and Year-on-year growth in Saudi gasoline con- grade, said the IEA, a watchdog agency for the Saudi Arabian Fertilizer Co see costs rising re- sumption neared a three-year high in October, world’s most industrialised countries. spectively by 6.5% and 8%, it said. before the cuts, according to the most recent of- Natural gas, ethane, diesel, kerosene, elec- “The net long-term impact for Saudi Arabia is fi cial fi gures from the Joint Organisations Data tricity and water prices are also subject to price likely to be positive as government balances im- Initiative. increases as part of the government’s fi ve-year prove and resource allocations become less dis- Saudi oil demand is forecast to rise by just plan to reduce subsidies, according to the agency. torted,” the IEA said. 45,000 bpd to 3.3mn bpd in 2016, sharply lower Ethane prices will rise by 133%, transport diesel Saudi prices for gasoline remain “exception- than the 125,000-bpd expansion in 2015, the IEA by 79%, industrial diesel by 55% and kerosene by ally cheap in international terms,” equating to said. Subsidy cuts by Bahrain, Oman and the UAE 12%, it said. roughly one-sixth those in the UK, one-fourth will add to the impact on Middle Eastern oil de- “Higher oil product prices potentially curb those in China and half those in Iran, it said. Gulf Times 4 Wednesday, January 20, 2016 BUSINESS

New Delhi should review monetary policy framework, cut rates: Modi aide ‘India can still emulate

Reuters New Delhi

India should review its monetary policy framework, Prime Minister Narendra Modi’s top economic adviser told Reuters, suggesting that China’s export miracle’ the lower bound of the Reserve Bank of India’s inflation target range was on the low side. Reuters He highlighted Modi’s decision to Arvind Panagariya also said in an interview New Delhi build out India’s coastal ports to im- that the RBI’s main policy rate should be 50 basis prove access to the world market for points lower than it is now. goods as one key initiative to expand That puts him at odds with RBI governor Ra- ndia has every chance of becom- India’s 1.7% share of world exports. ghuram Rajan, who is seen as unlikely to ease the ing an export powerhouse, Prime Modi has also promoted a “Make repo rate further when the central bank reviews IMinister Narendra Modi’s top eco- in India” drive that, after a slow policy on February 2. The RBI cut the rate several nomic adviser told Reuters, despite an start, has attracted US auto makers times last year to reduce it by 125 basis points to ill wind blowing from China that has and Chinese consumer electronics the current 6.75%. hurt the ability of Asia’s third-largest fi rms. While stressing he had an open mind, Pana- economy to compete. India is the world’s fastest grow- gariya said the time was right to review the RBI’s Arvind Panagariya, the Colum- ing large economy – outpacing even target for consumer price inflation that sets a bia University economics professor China – with the government fore- central goal of 4%, with a band of 2 percentage tapped to run the government’s policy casting real GDP growth of 7-7.5% in points either side. think tank last year, said in an inter- the fi scal year to March 31. He expressed particular concern over the view he had seen China’s slowdown But a collapse in prices for oil and lower end of the range, eff ectively 2%, saying this coming as wage costs there grew. other commodities has meant that level was typical for advanced economies but “It was only a matter of time,” said nominal economic growth is only unusual for emerging nations. Panagariya, 63, describing “miracle” half the level factored into Finance “I think we should go back to review the growth rates sustained by China for Minister Arun Jaitley’s plans. That monetary policy framework,” said Panagariya, decades as without precedent. has cut into revenues. appointed by Modi a year ago to run the Policy The natural slowdown in the Chi- Ahead of Jaitley’s budget next Commission, the government’s main advisory nese economy off ered an opportu- month, Panagariya urged the Reserve body. nity, he said, because rising wages Bank of India to cut interest rates and “The framework is fine, but the target needs and an ageing workforce will encour- called for a less ambitious infl ation to be revisited. It’s been there for a year and we age manufacturers to move to places target to underpin growth. should review it.” where labour costs are cheaper – like At the same time, he advised If there is any revision to India’s inflation target India. against “tinkering” with borrow- “it is not going to be downward”, the former Co- From parity in 1980, China’s econ- ing targets, saying the government’s lumbia University economics professor added. omy has outgrown India’s fi vefold to credibility was riding on its commit- “It is premature to speculate what I would say. $10tn. ment to bring down the budget defi - But I would go in with an open mind. If revisions India’s best choice would be to cit to 3% of GDP over the medium have to happen, they will have to be upward,” emulate China, said Panagariya, disa- term. he said. greeing with naysayers who argue that While no comment was available “Who has a floor of 2% among the developing advances in labour-saving technology from the RBI on Panagariya’s call countries? I have never heard of a developing make that impossible. for easier monetary policy, private country on a sustained basis having 2% or 3% “Many pessimists think that man- sector economists said Modi should inflation. That is the sort of target that most of ufacturing is now passe, that the ro- instead focus on policy execution on developed countries have.” bots are coming, 3D printing is com- the ground. India formally adopted its monetary policy ing,” said Panagariya. “None of those That includes reviving stalled in- framework a year ago, shifting its focus to target- factors is going to be a barrier to India frastructure projects and helping ing consumer inflation from wholesale prices in becoming a manufacturing hub right Panagariya: Optimistic. farmers recover after two years of a bid to subdue the country’s historically volatile now.” drought. prices. In the short run, though, China’s gariya, who is also India’s negotiator ability to compete with the Chinese earlier. That meant India was los- “We believe progress on imple- Asked about interest rates, Panagariya said slowdown and weakness in its yuan for the Group of 20 summit being in third markets is impacted,” he said. ing its share of the global trade pie, mentation should get expedited,” that he had argued for a cut of 100 basis points currency are creating headwinds. hosted by China this year. Figures this week showed that said Panagariya, attributing some of said Shubhada Rao, chief econo- before the RBI last eased rates by 50 basis points India would be “very concerned” if “In the end, that not only makes India’s merchandise exports fell in those losses to the appreciation of mist at Yes Bank in Mumbai. “Inter- on September 29. China were to allow a major devalua- Indian goods less competitive in December for the 13th month – and the rupee against currencies other est rates alone are not holding the tion in the yuan currency, said Pana- the Chinese market, but also India’s were down by nearly 15% from a year than the US dollar. growth recovery to ransom.”

S Korea PBoC to inject $91bn to ease liquidity strains to bring Reuters China’s central bank and commer- Beijing cial banks sold a net 629bn yuan worth of foreign exchange in December, data criminal showed on Monday, or nearly triple the hina’s central bank said yester- fi gure for the previous month, as capital case against day it would inject more than outfl ows grew. C600bn yuan ($91.22bn) to help The central bank pledged to keep li- ease a liquidity squeeze expected before quidity in the banking system “reason- VW’s the Lunar New Year in early February. able and adequate” and keep market The People’s Bank of China (PBoC) interest rates stable ahead of the Lunar will inject the funds via the three pol- New Year. local chief icy tools of the standing lending facil- “The international fi nancial market ity (SLF), medium-term lending facil- turmoil is intensifying, and liquidity Reuters ity (MLF) and pledged supplementary volatility in the banking system is in- Seoul lending (PSL), it said in a statement on creasing,” it said. its website. The central bank will also provide Liquidity conditions often tighten short-term cash to fi nancial institu- outh Korea plans to fi le a ahead of the week-long new year holi- tions through reverse bond repurchase criminal complaint against day and the central bank usually injects agreements in its open market opera- Sthe head of Volkswagen large amounts of cash into the banking tions. and Audi’s local unit, saying system prior to the festivities to keep Separately, the central bank injected that a recall plan for emissions- rates steady. The fi rst day of the new 410bn yuan into the banking system cheating cars fell short of legal year is February 8. on Tuesday via MLF, it said on its of- requirements. Analysts say the PBoC’s move could fi cial microblog, adding that it had cut The complaint, to be fi led reduce the need for it to cut banks’ re- the three-month MLF rate to 2.75%, by the environment minis- serve requirement ratios (RRR) in the and lowered the one-year MLF rate to try against Johannes Tham- near future, but the central bank re- 3.25%. mer, managing director of Audi mains under pressure to ease policy to It was unclear if the latest injection Volkswagen Korea, is the latest support a slowing economy. was part of the 600bn yuan planned for in a fl urry of legal actions around Growth in the fourth quarter slowed the Lunar New Year. the world against Volkswagen to the weakest since the fi nancial crisis, The People’s Bank of China (PBoC) will inject more than 600bn yuan ($91.22bn) via the three policy tools of the standing The central bank has already cut in- after it admitted in September to increasing pressure on a government lending facility (SLF), medium-term lending facility (MLF) and pledged supplementary lending (PSL), it said in a statement on terest rates six times since November falsifying US emissions tests on struggling to regain the confi dence of its website yesterday. 2014, and reduced the amount of cash some of its diesel cars. investors after perceived policy mis- that banks must hold as reserves, but After conducting its own steps jolted global markets. an economist at Shenyin & Wanguo Se- fl exible policy tools.” The central bank long-term money. Analysts believe such steps have had limited impact on emissions tests, South Korea “The liquidity injections may lower curities in Shanghai. provides loans with shorter maturity to there is still room for the central bank growth due to high debt levels in the in November fi ned the German the urgency for cutting bank reserve ra- “This refl ects the central bank’s in- banks via operations such as SLF and to lower bank reserve requirements as economy. More easing steps are widely automaker a record 14.1bn won tios in the near term,” said Li Huiyong, tention to keep liquidity ample by using MLF, while cutting RRR would release capital outfl ows rise. expected in the coming months. ($11.7mn) and ordered a recall of 125,522 vehicles. On January 6, Volkswagen submitted a proposal to fi x the vehicles including the Tiguan, South Korea’s top-selling import A $59tn tailwind spurs governance changes in Asia firms model, at the request of the min- istry. But the ministry said in a Reuters translate to higher long-term returns. tors are linking this growth to moves University found that between 80%-90% Investment Trust – a subsidiary of Cathay statement yesterday that the plan Singapore Companies in Asia are beginning to they are making to improve corporate of studies show good sustainability stand- Financial Holdings, which was also a DJSI failed to explain why the problem take heed as boardroom indiff erence to responsibility such as tracking carbon ards lower companies’ costs, improve entrant in 2015 – has developed an ethical occurred and how it would be issues like minority shareholder rights footprints and creating indices of sustain- performance and boost share prices. exclusion list and is publishing corporate fi xed, as required by law. A surge in socially responsible invest- and the environment is giving way to able businesses. This probably explains why places social responsibility reports. The ministry said Thammer ments to $59tn globally over the past stronger corporate governance that Asian investors and managers who such as Thailand, where historically “Good ESG performance naturally and other VW offi cials including decade is nudging Asian firms to change seeks to satisfy all stakeholders. have signed the PRI climbed to 70 in 2015 corporate responsibility has taken a back secures confidence of long-term inves- VW’s powertrain development a notoriously insular management style Asian firms now make up more than from seven in 2006. seat, have begun to embrace change. tors,” the company said in an e-mailed chief Friedrich Eichler visited to one that actively addresses corporate half of the Dow Jones Sustainability Malaysia and Japan introduced their “Investors are increasingly looking statement. the ministry earlier yesterday governance concerns. Emerging Markets Index, a benchmark own responsible investment indices in for values beyond the common capital Still, given the longer timeframe for to off er a technical briefi ng on As earnings growth and China’s for environmental, social and governance 2014. In a sign that such investments are gains and dividends,” said Bordin Unakul, ESG measures to bear fruit, the pace of the proposed fi x. A spokesman economy slow, corporate executives are performance. Seven of the 13 additions to growing in importance to investors, Ja- executive vice president of the Stock Ex- change remains slow. Less than 5% of the for VW in South Korea said the becoming more receptive to the invest- the index last year were from Asia. pan’s trillion-dollar Government Pension change of Thailand, the country with the 1,454 signatories to the UN PRI are in Asia. company had not received no- ment messages from funds committed “A company’s willingness and ability Investment Fund, the world’s biggest, most additions in Asia to the Dow Jones “There are a number of systemic issues tice of the complaint. to Environmental, Social and Governance to address ESG issues relevant to its now benchmarks its performance against index last year. in the region, as well as individual com- “Audi Volkswagen Korea is (ESG) principles. business can be a material driver of the the JPX-Nikkei index 400, instead of the Take the case of Thailand’s Advanced panies where governance frameworks doing its utmost to resolve the That commitment can be measured company’s performance and valuation,” traditional Nikkei 225 or the Topix. Info Service, which entered the Dow aren’t as well developed,” said Andrew emissions issue,” the company in trillions of investment dollars – global said Arthur Lau, head of Asia ex-Japan The trend is being driven by research Jones sustainability index in 2015. Gray, investment governance manager at said in a statement yesterday, investors who have signed the UN fixed income at PineBridge Investments, a showing that responsible corporate The company has created a whistle- pension fund AustralianSuper, which has before the ministry’s announce- Principles for Responsible Investing (PRI) signatory to the UN PRI. behaviour pays off . blower hotline to identify misconduct and $92bn of assets under management and ment. Under South Korean envi- now own or manage $59tn, a surge from Indeed, even as profit growth remains For instance, an analysis of more than fraud, and has begun tracking carbon is a signatory to the UN PRI. ronmental law, a guilty convic- a mere $4tn in 2006, reflecting growing a focus for managers, an increasing 200 academic papers conducted by Ara- emissions to reduce its environmental Gray said that applying ESG criteria is a tion could result in a prison term evidence that responsible investments number of Asian businesses and regula- besque Asset Management and Oxford impact. In Taiwan, Cathay Securities resource-intensive process. of up to fi ve years and a fi ne of up to 30mn won, the ministry said. Gulf Times Wednesday, January 20, 2016 5 BUSINESS

US court backs China’s growth hits Apple motion in patent case quarter-century low against Samsung China GDP growth slows to 6.9% for Bloomberg 2015; Q4 growth slows to 6.8% on Seoul year, meets forecasts; retail sales and industrial output miss expectations; analysts see rising chances of further US court ruled in favour of Apple Inc in its patent battle stimulus with Samsung Electronics and ordered the South Korean Acompany to stop using software in the US that helps mo- Reuters bile phones infringe on those patents. Shanghai Samsung has to stop making, using, selling, developing or de- signing software or code that helps its products infringe on three patents. Those inventions cover mobile-phone features such as hina’s economy grew at its weak- autocorrect, slide-to-unlock and data detection, according to est pace in a quarter of a century the order by the US District Court in San Jose. Clast year, raising hopes Beijing The two smartphone giants have pursued legal cases against would cushion the slowdown with more each other around the world, claiming that the other’s devices in- stimulus policies, which in turn prompt- fringed on their own patents. They had little to show for it before ed a rally on the country’s rollercoaster deciding in 2014 to drop all cases except two lodged in the federal share markets. court in California that issued Monday’s order. The court’s ruling Growth for 2015 as a whole hit 6.9% aff ects software or code used in older Samsung models such as after the fourth-quarter slowed to 6.8%, the Galaxy S II, S III and Note smartphones. capping a tumultuous year that witnessed “It seems the US court didn’t take anyone’s side and managed a huge outfl ow of capital, a slide in the to take care of both companies,” said Jung Dong Joon, a patent currency and a summer stocks crash. lawyer with SU Intellectual Property in Seoul. “The latest move Concerns about Beijing’s grip on eco- will only have a minimal impact on Samsung’s mobile business nomic policy have shot to the top of global because most of the models to be banned are too old, while it gave investors’ risk list for 2016 after a renewed Apple more negotiating power when it comes to patents.” En- plunge in its stock markets and the yuan forcement of the order will begin in 30 days, the court said. Apple stoked worries that the economy may be didn’t respond to requests for comment. rapidly deteriorating. “We are very disappointed,” Samsung said in an e-mailed China’s slowdown, along with the statement. “While this will not impact American consumers, it slump in commodity prices, prompted is another example of Apple abusing the judicial system to create the International Monetary Fund to cut its bad legal precedent, which can harm consumer choice for gen- global growth forecasts again yesterday, erations to come.” The years-long disputes between the rivals – and it said it expected the world’s second- and business partners – centred on software-design features that largest economy to see growth of only have become second nature to many mobile users, from swiping 6.3% in 2016. to unlock a sleeping device to automatic correction of typos in Data from China’s statistics bureau messages. While the injunction covers older models, Apple can showed that industrial output for De- go back to the judge and argue that Samsung’s newer devices still cember missed expectations with a rise of infringe on its patents. just 5.9%, while electric power and steel Apple and Samsung ship about a third of the world’s smart- output fell for the fi rst time in decades The indexes remain about 14%-15% Markets have long harboured doubts roughly 123.5 bcm, up about 7%, Reuters phones combined, according to data compiled by Bloomberg. last year, and coal production dropped for down so far in 2016 after a series of sell- about the veracity of China’s growth data, calculations derived from the offi cial data Apple devices also use chips and displays made by Samsung. a second year in row, illustrating how a off s in the new year. given their habit of closely matching offi - yesterday shows. The statistics bureau Apple won a US appeals court ruling in September that could slowing economy and shift to consumer- “We see this as a technical rebound,” cial forecasts year after year despite wildly typically revises its data on a monthly have consequences for how disputes are resolved when it comes led growth is hurting industry. said Yip. “It’s too early to say the market changing circumstances at home and glo- basis and the percentage change for 2015 to complex devices and may help patent owners limit copying December retail sales growth was also has seen its bottom, as we haven’t yet seen bally. output indicates that the previously pro- by rivals. The ability to block use of an invention is a power- weaker than expected at 11.1% last month, a turnaround in the economy.” Investors used to comfort themselves vided 2014 fi gure will be revised. ful tool that increases the price tag when the creator negotiates disappointing those counting on the con- The People’s Bank of China (PBoC) did with the assumption that the authorities, In 2013, natural gas production rose by settlements. sumer to be the new engine of growth. its bit to calm nerves by keeping the yuan while often inscrutable, were competent 11.5% from the previous year to 115.4 bcm, Samsung tried unsuccessfully to get that appeals court deci- “While headline growth looks fi ne, the largely steady, setting the currency’s daily managers who could be trusted to ulti- the NBS said. The 2015 output growth was sion overturned. Google, HTC Corp, LG Electronics and Rack- breakdown of the fi gures points to overall midpoint fi x at 6.5596 per dollar. mately guide the economy to a more con- the slowest since Reuters began collecting space Hosting backed Samsung in its arguments, arguing that a weakness in the economy,” said Zhou Hao, That followed news of plans requiring sumer-driven model. the data in 2005. victory for Apple could allow patent owners to unfairly leverage senior emerging markets economist for overseas banks to hold a certain level of That trust has been challenged by per- Meanwhile, China’s implied oil con- their intellectual property for competitive gain. Asia at Commerzbank Singapore. yuan in reserves, a move that could raise ceived policy missteps over the yuan and sumption grew 2.5% in 2015 on strong “All in all, we believe that China will ex- the cost of wagering on further falls in the stock markets, giving weight to a voluble gasoline and kerosene use, defying a slow- perience a ‘bumpy landing’ in the coming currency, which has lost about 5% since clique of China bears who claim high debt ing economy and falling demand for other year,” he said. August. levels and massive overcapacity are bound commodities such as coal and steel. There was relief in the markets, how- Tommy Xie, economist at OCBC Bank to end in tears. Yet oil demand growth in 2016 is seen ever, that growth at least matched fore- in Singapore, said he expected more stim- Even relative optimists are worried. lower as the world’s second-largest econ- casts, and a growing expectation that ulus to the economy from the PBoC, but “A recent trip back to China suggests omy is locked in a protracted slowdown. more monetary easing measures were im- the stability of the yuan, also known as the economy remains in a rather bad China consumed a record 10.32mn bar- minent, possibly before Lunar New Year the renminbi, was critical to maintaining shape. Public confi dence and expecta- rels per day (bpd) of oil in 2015, up 256,000 holidays in early February. growth. tions are very low,” says Wei Li, China and bpd on the year, according to preliminary Angus Nicholson, market analyst at IG “This is a new risk for China. If the ren- Asia economist at Commonwealth Bank of Reuters calculations based on government in Melbourne, said in a note that further minbi continues to weaken, the volatility Australia. data. cuts in interest rates and the reserves that and capital outfl ows get worse, then that is “Faced with rising non-performing China’s strong demand, especially for banks have to set aside were already look- likely to pose a challenge to growth.” loans, banks are cutting credit lines de- crude and gasoline, has been a rare pillar of ing “a foregone conclusion” before the The spot yuan was at 6.5789, barely spite policymakers calling for more sup- support for oil prices, which have tumbled data release, and now it was a question of changed from Monday’s close, but off - port. New credits are mainly used to repay over 70% since mid-2014 to their lowest timing. shore it weakened to 6.5935 to stand 0.2% existing debts, rather than fl owing into in more than 12 years, as global exporters “That gives investors an excuse to buy adrift from the onshore rate. new investment projects.” pump a million barrels of crude a day in stocks, after sharp falls recently,” said Li- Confusion over China’s currency pol- China’s 2015 natural gas production excess of demand. nus Yip, strategist at First Shanghai Secu- icy and its commitment to reforms has rose by 2.9% from the previous year – the China’s oil demand should continue to rities Ltd. sparked mayhem in fi nancial markets in slowest growth in at least 10 years – of- support global oil prices despite overall Investors took their cue, pushing the recent weeks, as the PBoC allowed the fi cial data showed yesterday, amid ample bearish sentiment, said analyst Daniel Ang benchmark Shanghai Composite Index yuan to fall sharply in early January then supply and weak domestic demand for the of Phillip Futures in Singapore. up 3.25% by the close of trading, while the switched to aggressive intervention to cleaner-burning fuel. “Just looking at oil demand alone for A customer tries out a Samsung mobile phone at its headquarters CSI300 index of the largest listed com- steady it. Likewise, concerns have mount- Production reached 127.1bn cubic me- China, it’s likely to remain strong or at in Seoul. A US court yesterday ordered the South Korean company panies in Shanghai and Shenzhen gained ed that the economy’s troubles might be tres (bcm) in 2015, the National Bureau of least grow at the same pace as it has been,” to stop using software in the US that helps mobile phones infringe 2.95%. beyond Beijing’s ability to fi x. Statistics said. In 2014, production was he said. on Apple’s patents. Indian Railways Ambani’s wealth grew most in world as oil plunged Bloomberg World Oil & Gas Index over the past New Delhi three months. planning land “Any increase in refining margin helps Reliance’s profit significantly Oil’s plunge and the impact on the because that business is the largest global economy is hurting many a bil- contributor to the bottom line,” said sales for $4.7bn lionaire. Indian tycoon Mukesh Ambani Sanjeev Panda, Mumbai-based analyst isn’t one of them. Reliance Industries, at Sharekhan. The shares have gained controlled by Ambani, is benefiting from “because of the sharp fall in crude Bloomberg low crude prices as margins swell at the reflecting positively on the margins.” New Delhi company’s refining complex, the world’s Brent oil has fallen more than 70% the largest. last 18 months as the Organisation Ambani’s net worth increased of Petroleum Exporting Countries ef- ndian Railways, the world’s fourth-longest network, is con- $620mn as of Friday, the most in the fectively abandoned output limits amid sidering land sales and exports of trains to Asia and Africa to world in 2016, according to the Bloomb- a surplus. The global benchmark crude Ihelp fund a looming wage increase of Rs320bn ($4.7bn), people erg Billionaires Index. That’s almost five yesterday jumped 5.5%, the most since familiar with the matter said. times more than the second-biggest September, to $30.1 on the London- The state-run network is exploring other steps such as selling gainer this year, Wal-Mart heiress Alice based ICE Futures Europe exchange at advertising space, the people said, asking not to be identifi ed as Walton, who’s up $130mn. Among In- 5:28 pm Mumbai time. the information isn’t public. Increases in fares are unlikely and the dia’s 13 billionaires in the world’s richest Reliance’s shares climbed about railway could cut costs by about 15% in one to two years, they said. 400, Ambani is also the only one to see 14% in 2015, ending a seven-year jinx of The pay increase, recommended by a panel that advises on re- an increase in his fortune. Profit for the under-performing the S&P BSE Sensex. muneration for federal employees about once a decade, threatens December quarter jumped 42% from The stock slid 37% from 2008 through to crimp Prime Minister Narendra Modi’s push for faster invest- a year earlier to Rs72.2bn ($1.07bn), 2014, versus a 35% advance in India’s ment in network modernisation. The railway has about 1.3mn beating the Rs70.1bn mean of 17 analyst benchmark equity gauge, as the com- workers and has struggled to achieve the kind of operating effi - estimates in a Bloomberg survey. pany spent billions of dollars to expand ciency the people said it would need to avoid making losses be- Higher refining margins underpinned its chemicals capacity and plowed cause of the climbing wage bill. the performance as oil prices during $15bn in a telecommunications venture. They said they remain hopeful of assistance from the fi nance the quarter were 42% lower on average The shares climbed 2.6% to Rs1,043.6 ministry, even after an initial request for the full Rs320bn was re- from the year-earlier period. yesterday. buff ed. The strategy of boosting non-fare revenues and curbing Reliance earned $11.50 for every Reliance Jio Infocomm, Ambani’s costs will probably be a key part of Railway Minister Suresh Pra- barrel of crude it turned into fuels, com- telecom unit, plans to sell Rs150bn of bhu’s budget speech for the network due late February, the people pared with $7.30 a year and $10.60 in shares to existing stockholders, accord- said. The railway’s spokesman referred a request for comment to the three months ended September, the ing to an exchange filing late Monday. the railway board’s fi nance department, which referred the re- company said after the close of market “Start of projects worth $30bn across quest to the board’s budget unit. S Subramhanyan, an additional hours yesterday. Investors including segments will make 2016 the biggest member representing the budget department, didn’t respond to a BlackRock have bought Reliance shares, year in Reliance’s history,” Vikash Kumar phone call and text message seeking comment. making the Mumbai-based company Jain, an analyst at CLSA, wrote in a Janu- Modi’s vision is to add track, world-class stations and bullet the best performer on the Bloomberg ary 4 note. Mukesh: Cashing in on low crude prices. trains to ease congestion and spur economic growth. Gulf Times 6 Wednesday, January 20, 2016 BUSINESS Biggest leveraged ETF takes in $1.5bn as Japan stocks sink

Bloomberg Index ETF took in ¥177.4bn ($1.5bn) this and is down 20% in 2016. Tokyo exchange. Nomura Asset hasn’t of liquidity in the Osaka futures market when the market’s dropping and see Tokyo year, boosting assets by 7% through The Nikkei 225 has dropped 10% this decided whether to halt orders again, when it stopped taking orders in redemptions as shares rise reduces Monday even as stocks tumbled, year amid a global equities selloff and said Kazumasa Hironaka, a spokesman October. their impact, according to the central according to data compiled by is less than two percentage points at the fund manager. The Bank of Japan acknowledged the bank. “Assets have blown up to the Investors are putting more money into Bloomberg. The fund’s current size of away from a bear market. “We’re monitoring changes to volumes focus on the fund in a paper published levels when they last closed it, so it’s Japan’s giant leveraged exchange- ¥786bn is about the same as when its The leveraged fund caused a stir last in futures as well as our assets daily, on January 14, saying leveraged ETFs probably not far off until they stop traded fund than any other equity ETF manager, Nomura Asset Management year after doubling in size in just five and are carefully deciding whether had drawn attention for increasing orders again,” said Tomoichiro Kubota, around the world as stocks in Tokyo Co, suspended orders for two months months, with investors blaming it for we can continue to maintain our price swings and causing stress a senior analyst at Matsui Securities Co. extend their worst start to a year on from October. amplifying moves in the futures market. correlation” with the Nikkei 225, in the market. There’s adequate “At these levels, people are starting to record. The ETF uses futures to produce twice The ETF has become so popular that it’s Hironaka said. “It’s likely contrarian liquidity to soak up the orders and worry again that the fund is impacting The Next Funds Nikkei 225 Leveraged the Nikkei 225 Stock Average’s return, often the most-traded security on the investing.” Nomura Asset cited a lack the funds’ tendency to attract inflows the futures market.’’

Sensex rebounds; Asia stock markets rally as rupee strengthens China growth hits forecast Bloomberg AFP Mumbai Tokyo

ndian stocks rebounded from a ews that China’s economy 20-month low as some investors judged grew last year in line with ex- Ithe recent slide that sent the benchmark Npectations lifted Asian stocks index to the brink of a bear market on Mon- yesterday, providing some rare sup- day to be excessive. port at the start of a turbulent year Reliance Industries, the owner of the that has seen global markets ham- world’s largest refi ning complex, jumped mered. 2.6% before its quarterly earnings report. However, while most bourses ICICI Bank and Axis Bank, the top private across the region enjoyed a strong lenders, were among the best performers rally led by Shanghai, dealers re- on the S&P BSE Sensex. Adani Ports & Spe- main cautious as the China fi gure cial Economic Zone surged the most in fi ve still marked the worst annual growth months. Larsen & Toubro rallied from near performance in a quarter of a cen- a two-year low. tury. The Sensex surged 1.2% to 24,479.84 at Beijing said gross domestic prod- the close in Mumbai. The worst start of a uct expanded 6.9%, in line with the year since 2011 has pulled the gauge’s valu- government’s target of “about 7%” ation to the cheapest level in four months and matching a forecast in an AFP amid concern about China’s market turmoil survey. and the rout in commodities. The index’s However, it was much weaker than 14-day relative strength index dropped to 28 the previous year and highlights the on Monday, below the level of 30 that some task facing the country’s leader- analysts say signals a rebound is imminent. ship as it struggles to recalibrate the “It’s a relief rally from oversold levels,” growth engine. Kaushik Dani, a fund manager at Karvy The sharp slowdown in China has Stock Broking, said from Mumbai by phone. sent shockwaves through stock mar- “It’s diffi cult to be gung-ho on the market as kets from Asia to the Americas over global growth and uncertainty are still big the past six months, in a rout that concerns. It’s best to have a stock-specifi c has wiped trillions off valuations and approach depending on how earnings play fuelled fears of another global eco- out.” He favours shares of private-sector nomic crisis. banks and software exporters. Shanghai’s stock market, which The Sensex trades at 14.7 times its project- has plunged almost 20% since the ed 12-month profi ts, compared with a mul- start of this year, ended up 3.2% in tiple of 10.4 for the MSCI Emerging Markets characteristically volatile trade. An- Index. The Indian gauge came within 1.5% of alysts said the gains were boosted by the 20% threshold of a bear market on Mon- expectations of government stimu- day. Overseas funds sold a net $276mn of lus measures to kickstart growth this Indian shares on Monday, taking this year’s year. outfl ow to $1.1bn. They invested $3.3bn Others said the government- in 2015, the smallest infl ow since 2011, as backed “national team” investment news out of China combined with the cool- group was buying shares to prevent a ing in optimism surrounding Prime Minister market sell-off , with one eye on the Narendra Modi’s economic agenda. Reli- upcoming Chinese New Year break. ance Industries may say third-quarter profi t “The sharp rise today is, without rose 38% to Rs70.1bn, according to the me- a doubt, supported by the ‘national dian estimate of 16 analysts in a Bloomberg team’ as this is a good window for survey. them to swoop in,” Phillip Securities So far, two of the three Sensex companies analyst Chen Xingyu told AFP. “Only that have reported earnings for the Decem- they have the resources to lift the ber quarter have beaten estimates. Fifty- market this fast.” seven per cent of Sensex companies in the Other markets also turned higher September quarter posted earnings that after sinking in the morning. matched or beat estimates, versus 60% in Hong Kong added 2.1% while To- Investors look at computer screens showing stock information at a brokerage house in Fuyang, Anhui province. China’s stocks rebounded 3.2% yesterday. June, data compiled by Bloomberg show. kyo gained 0.6% by the close and ICICI Bank jumped 2.5%, the most since Sydney added 0.9%. Beijing is trying to transform the now. As of now we’ve seen most of Brent slumped below $28 to its low- “We’ve got Iran knocking on the December 21. Axis Bank rallied 5.3%, the Australia’s dollar was up 0.8% growth model from investment and the things that they could have done est point since late 2003. door with a further 500,000 barrels a most since September 8. Adani Ports soared against the greenback, the South Ko- exports to one driven by domestic – infrastructure, (lowering bank The contract edged up yester- day and we think they’ll easily meet 6.2%, the most since August 14 and is the rean won added 0.4% and the Malay- consumer demand. reserve requirements) and interest- day but analysts warned of further that target,” David Lennox, an ana- best performer on the Sensex yesterday. sian ringgit gained 0.7%. But while offi cials said the trans- rate cuts and even depreciating the downward pressure after Iran or- lyst at Fat Prophets in Sydney, told Larsen & Toubro surged 3.6%, the most since “The market was pricing in much formation is under way Jackson yuan. But we haven’t seen anything dered the production of half a million Bloomberg News. October 5. Tata Motors, the owner of Jaguar worse,” said Nader Naeimi, Sydney- Wong, associate director at Huarong to make the economy signifi cantly extra barrels a day, soon after West- “Nothing has really changed for Land Rover, climbed 4.1%. based head of dynamic markets at International Securities in Hong pick up.” The AFP survey of analysts ern sanctions were lifted. the market, investors are still looking Meanwhile, the rupee strengthened 0.1% AMP Capital Investors. Kong, said they would struggle to showed they expect growth to slow to The move will add to an already for producers to cut supply.” to 67.6475 a dollar yesterday, halting a three- “The markets had intense fears kickstart growth in the coming years. 6.7% this year. fl ooded market at a time when de- Brent rose 3% yesterday and US day drop, according to prices from local over China... it shows that China “I would love to see how they Investors also remain on edge over mand is weak and the global econo- benchmark West Texas Intermediate banks compiled by Bloomberg. isn’t broken.” are going to stimulate the economy the turmoil on oil markets, a day after my is teetering. was 0.9% higher. Postal Savings Bank sets $15bn HK IPO in motion

Reuters At least a dozen banks have been invited Hong Kong to pitch for the planned IPO, and PSBC has given them a deadline of January 22, IFR, a Thomson Reuters publication said. The move ostal Savings Bank of China (PSBC) has puts the initial public off ering on track to take invited investment banks to pitch for place in the second-half of the year, it added. Pa Hong Kong IPO worth up to $15bn, A PSBC spokesman in Beijing declined to a person familiar with the matter said, set- comment on its IPO plans. ting the ball rolling for what is likely to be the PSBC is among the last of China’s big na- world’s biggest listing this year. tional banks to seek public listing, a process Despite volatile China share markets, that started in mid-1990s and helped global state-owned PSBC has just raised $7bn from investment banks to rake billions of dollars in a group of investors including UBS Group and underwriting fees and by exiting the stakes JPMorgan, which were attracted to its cus- they acquired ahead of the IPOs. tomer base of 500mn customers – larger than Even at a conservative 1% underwrit- the population of the US. ing fee, the PSBC IPO would generate about PSBC is also expected to fare better than $150mn in revenue for the top banks working others in the Chinese banking sector con- on the deal. tending with sharp rises in bad debt as its Amid an economic slowdown, price-to- “mom and pop” customers tend to more dili- book valuations for commercial banks have gent in repaying loans than Corps facing di- fallen 13% from highs marked in December minished demand. 2013, according to Thomson Reuters data, but “There will be a lot of excitement around PSBC may be assessed in a more favourable this deal given the size. Postal Bank will be light due to its extensive network and retail one of the last big IPOs from China banking base. sector and people would want to be part of it,” The $7bn raised from its sale of a 17% stake the person familiar with the matter said. in December was the single biggest private PSBC could be looking for a simultaneous fund-raising in China’s fi nancial industry. Hong Kong and China A share listing, though Other investors included Alibaba’s Ant Fi- People walk past a signboard outside a branch of Postal Savings Bank of China in downtown Beijing. The firm has invited investment banks to pitch for a no fi nal decision has been made, the person nancial unit, Tencent Holdings and Canada Hong Kong IPO worth up to $15bn, sources said yesterday. added. Pension Plan Investment Board. Gulf Times Wednesday, January 20, 2016 7 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 5.56 6.92 1,298,222 Boubyan Intl Industries Hold 25.00 0.00 819,832 Areej Vegetable Oils 5.51 0.00 - Solidarity Saudi Takaful Co 6.79 8.99 2,235,174 Gulf Investment House Ksc 21.00 0.00 3,764,685 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 5.81 5.25 1,084,847 Boubyan Bank K.S.C 405.00 0.00 1,788,822 Al-Omaniya Financial Service 0.31 0.00 - Alabdullatif Industrial Inv 24.50 1.37 106,092 Ahli United Bank B.S.C 194.00 1.04 293,437 Al-Hassan Engineering Co 0.07 0.00 - Saudi Printing & Packaging C 17.65 9.70 2,220,093 Osos Holding Group Co 80.00 0.00 144,479 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.29 0.00 - Saudi Paper Manufacturing Co 12.15 9.56 1,766,351 Qurain Petrochemical Industr 170.00 1.19 468,771 Al Suwadi Power 0.19 -0.53 200,083 Alinma Bank 13.14 5.37 88,794,613 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 60.81 -4.07 734,989 Ekttitab Holding Co Sak 25.50 10.87 1,127,917 Al Sharqiya Invest Holding 0.08 2.50 129,525 Falcom Saudi Equity Etf 21.00 3.45 196,158 Kout Food Group Ksc 660.00 0.00 200 Al Maha Petroleum Products M 1.72 0.00 - QATAR United International Transpo 34.20 9.93 205,066 Real Estate Trade Centers Co 18.00 -12.20 122,950 Al Maha Ceramics Co Saoc 0.34 -0.58 191,205 Hsbc Amanah Saudi 20 Etf 24.50 0.00 - Acico Industries Co Kscc 270.00 -3.57 5 Al Madina Takaful Co Saoc 0.07 0.00 21,966 Company Name Lt Price % Chg Volume Saudi International Petroche 10.72 5.51 785,367 Kipco Asset Management Co 102.00 0.00 510 Al Madina Investment Co 0.05 0.00 - Falcom Petrochemical Etf 16.65 0.00 1,100 National Petroleum Services 630.00 0.00 23,801 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 70.30 -8.58 173 Saudi United Cooperative Ins 8.15 4.89 510,888 Alimtiaz Investment Co Kscc 73.00 4.29 152,000 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 42.90 10.00 6,120 Bank Al-Jazira 12.34 3.35 9,408,750 Ras Al Khaimah White Cement 90.00 0.00 301,189 Al Jazeera Steel Products Co 0.14 0.00 - Vodafone Qatar 10.88 5.63 1,973,890 Al Rajhi Bank 47.90 1.98 4,803,807 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Jazeera Services 0.25 -6.67 445,327 United Development Co 18.44 8.47 439,231 Samba Financial Group 19.50 5.23 1,545,012 Kuwait & Gulf Link Transport 37.50 4.17 55,000 Al Izz Islamic Bank 0.06 0.00 77,000 Salam International Investme 10.28 9.95 1,831,403 United Electronics Co 31.02 6.82 728,234 Human Soft Holding Co Ksc 800.00 0.00 3,381 Al Buraimi Hotel 0.88 0.00 - Islamic Holding Group-Rts 14.00 0.00 - Allied Cooperative Insurance 12.08 5.69 752,854 Automated Systems Co Kscc 310.00 0.00 790 Al Batinah Power 0.19 -0.53 210,100 Qatar & Oman Investment Co 10.71 1.61 72,552 Malath Cooperative & Reinsur 16.88 5.24 1,996,359 Metal & Recycling Co 54.00 0.00 10 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 87.00 3.45 22,958 Alinma Tokio Marine 16.01 6.59 1,823,564 Gulf Franchising Holding Co 25.50 0.00 2,000 Al Batinah Dev & Inv 0.07 0.00 - Qatar National Cement Co 88.10 -0.68 53,921 Arabian Shield Cooperative 19.55 9.71 358,151 Al-Enma’a Real Estate Co 55.00 -1.79 12,000 Al Anwar Holdings Saog 0.15 4.17 1,865,059 Qatar National Bank 150.90 0.94 220,830 Savola 35.50 2.63 630,589 National Mobile Telecommuni 1,060.00 0.00 1,526 Ahli Bank 0.18 0.00 - Qatar Islamic Insurance 64.00 -0.78 14,188 Wafrah For Industry And Deve 19.97 6.28 233,220 Al Bareeq Holding Co Kscc 104.00 0.00 500 Acwa Power Barka Saog 0.66 0.00 - Qatar Industrial Manufactur 36.20 6.47 53,063 Fitaihi Holding Group 11.36 3.65 512,232 Housing Finance Co Sak 24.50 2.08 1,500,021 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 58.00 5.84 125,209 Tourism Enterprise Co/ Shams 33.96 9.58 1,111,677 Al Salam Group Holding Co 28.00 1.82 1,372,094 A’saff a Foods Saog 0.86 0.00 - Qatari Investors Group 26.80 3.68 169,363 Sahara Petrochemical Co 8.60 5.65 4,019,948 United Foodstuff Industries 132.00 0.00 11 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 84.70 9.57 369,409 Herfy Food Services Co 89.96 2.83 14,799 Al Aman Investment Company 52.00 5.05 360,100 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 20.35 7.90 481,408 Mashaer Holdings Co Ksc 106.00 0.00 1,000 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 46.00 -4.17 8,754 Manazel Holding 18.50 12.12 11,934,793 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 10.66 2.01 1,656,907 Mushrif Trading & Contractin 53.00 6.00 1,202,880 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 123.90 8.59 100,426 KUWAIT Tijara And Real Estate Inves 39.50 0.00 400,000 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 190.00 6.74 59,015 Kuwait Building Materials 250.00 0.00 20,000 #N/A Invalid Security 0.00 0.00 - Qatar Cinema & Film Distrib 28.50 -6.86 3,328 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 780.00 -4.88 36,090 #N/A Invalid Security 0.00 0.00 - Qatar Insurance Co 74.00 3.06 68,160 Commercial Real Estate Co 75.00 2.74 415,264 Ooredoo Qsc 71.90 5.43 104,658 Securities Group Co 100.00 0.00 178,193 Future Communications Co 100.00 -1.96 3,701 National Leasing 11.54 3.41 157,271 Sultan Center Food Products 55.00 -3.51 35,000 National International Co 41.50 -5.68 140,856 Mazaya Qatar Real Estate Dev 12.00 8.50 851,689 Kuwait Foundry Co Sak 204.00 0.00 20,000 Taameer Real Estate Invest C 18.00 2.86 432,233 UAE Mesaieed Petrochemical Holdi 16.01 8.84 307,597 Kuwait Financial Centre Sak 99.00 0.00 306,565 Gulf Cement Co 68.00 7.94 1,000 Al Meera Consumer Goods Co 178.10 2.77 10,641 Ajial Real Estate Entmt 130.00 -5.80 9,500 Heavy Engineering And Ship B 146.00 -1.35 30,000 Company Name Lt Price % Chg Volume Medicare Group 81.50 4.49 66,611 Gulf Glass Manuf Co -Kscc 490.00 0.00 20,000 Refrigeration Industries & S 300.00 0.00 800,000 Mannai Corporation Qsc 85.00 0.59 8,998 Kuwait Finance & Investment 35.00 -6.67 8,000 National Real Estate Co 79.00 1.28 888,432 Waha Capital Pjsc 1.88 4.44 1,099,265 Masraf Al Rayan 33.25 9.74 1,214,176 National Industries Co Ksc 230.00 0.88 200,691 Al Safat Energy Holding Comp 9.50 0.00 4,528,900 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.05 3.65 51,863 Kuwait Real Estate Holding C 19.00 -5.00 31,500 Kuwait National Cinema Co 940.00 5.62 40,480 United Arab Bank Pjsc 4.84 0.00 - Industries Qatar 93.20 1.86 145,118 Securities House/The 30.00 9.09 8,866,859 Danah Alsafat Foodstuff Co 70.00 -5.41 450,503 Union National Bank/Abu Dhab 4.00 -2.44 1,070,732 Islamic Holding Group 61.90 8.60 115,596 Boubyan Petrochemicals Co 435.00 1.16 50,452 Independent Petroleum Group 315.00 0.00 3,125 Union Insurance Co 1.21 0.00 - Gulf Warehousing Company 43.80 3.18 10,751 Al Ahli Bank Of Kuwait 345.00 7.81 28,441 Kuwait Real Estate Co Ksc 45.50 0.00 4,694,806 Union Cement Co 1.19 5.31 2,000 Gulf International Services 42.40 8.86 544,702 Ahli United Bank (Almutahed) 450.00 -3.23 302,040 Salhia Real Estate Co Ksc 360.00 0.00 23,000 Umm Al Qaiwain Cement Indust 0.90 0.00 - Ezdan Holding Group 13.70 7.37 1,146,812 National Bank Of Kuwait 700.00 0.00 4,018,227 Gulf Cable & Electrical Ind 320.00 4.92 54,917 Sharjah Islamic Bank 1.27 4.96 944,314 Doha Insurance Co 19.20 0.00 - Commercial Bank Of Kuwait 500.00 0.00 201,229 Al Nawadi Holding Co Ksc 84.00 0.00 61,000 Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 36.90 4.09 212,865 Kuwait International Bank 200.00 4.17 72,500 Kuwait Finance House 455.00 0.00 6,059,086 Sharjah Group 1.50 0.00 - Dlala Holding 13.50 1.66 162,582 Gulf Bank 216.00 1.89 615,100 Gulf North Africa Holding Co 23.00 2.22 1,008,359 Sharjah Cement & Indus Devel 1.08 0.00 - Commercial Bank Qsc 39.00 4.00 423,341 Al-Massaleh Real Estate Co 61.00 0.00 13 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 33.00 10.00 574,786 Al Arabiya Real Estate Co 28.00 3.70 1 Osoul Investment Kscc 37.50 7.14 10,000 Ras Al Khaimah White Cement 1.41 0.00 - Al Khaleej Takaful Group 28.00 3.70 7,590 Kuwait Remal Real Estate Co 30.50 0.00 315,000 Gulf Insurance Group Ksc 0.00 0.00 - Ras Al Khaimah Ceramics 3.08 -4.94 146,874 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 1,900.00 0.00 4,296 Ras Al Khaimah Cement Co Psc 0.85 -5.56 400,000 A’ayan Real Estate Co Sak 69.00 0.00 61,011 Umm Al Qaiwain Cement Indust 68.00 -6.85 260 Ras Al Khaima Poultry 2.48 0.00 - Investors Holding Group Co.K 20.00 8.11 3,426,005 Aayan Leasing & Investment 41.50 -3.49 684,776 Rak Properties 0.46 4.55 3,774,299 Al-Mazaya Holding Co 96.00 3.23 147,660 Ooredoo Qsc 74.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 1.38 0.00 - Gulf Petroleum Investment 40.50 2.53 4,929,861 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 830.00 5.06 1,293,736 OMAN 1.08 - City Group 380.00 0.00 2,000 National Marine Dredging Co 5.11 0.00 - National Investor Co/The 0.63 0.00 - United Wire Factories Compan 17.18 3.74 520,914 Inovest Co Bsc 50.00 0.00 1,046,400 Company Name Lt Price % Chg Volume Etihad Etisalat Co 20.44 3.65 3,351,929 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.50 0.00 - Dar Al Arkan Real Estate Dev 5.44 0.00 35,773,081 Al-Deera Holding Co 22.50 4.65 429,558 Voltamp Energy Saog 0.42 0.00 - National Bank Of Umm Al Qaiw 2.97 0.00 - Saudi Hollandi Bank 25.13 2.87 202,631 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.20 -0.95 383,000 Rabigh Refining And Petroche 8.49 4.04 3,980,055 Mena Real Estate Co 18.50 2.78 120,000 United Power Co Saog 2.55 -1.35 1,000 National Bank Of Fujairah 5.31 0.00 - Banque Saudi Fransi 24.51 4.74 222,763 National Slaughter House 62.00 0.00 5,466 United Finance Co 0.12 0.00 45,000 National Bank Of Abu Dhabi 7.20 4.05 465,162 Saudi Enaya Cooperative Insu 12.02 6.37 538,682 Amar Finance & Leasing Co 65.00 8.33 2,000 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.49 4.26 1,110,126 Mediterranean & Gulf Insuran 21.16 1.29 5,172,996 United Projects Group Kscc 600.00 0.00 11,060 Takaful Oman 0.10 0.00 - Manazel Real Estate Pjsc 0.49 6.52 11,732,569 Saudi British Bank 21.01 0.05 379,327 National Consumer Holding Co 0.00 0.00 - Taageer Finance 0.13 0.00 - Invest Bank 1.81 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 24.00 -9.43 95,340 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 5.50 0.00 - Red Sea Housing Services Co 17.98 5.58 454,810 Jeeran Holdings 61.00 0.00 150 Sohar Power Co 0.35 0.00 - Insurance House 0.81 0.00 - Takween Advanced Industries 21.56 4.61 1,027,949 Equipment Holding Co K.S.C.C 53.00 0.00 148,210 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Industri 2.50 -0.40 1,915,000 Sabb Takaful 22.85 5.69 918,921 Nafais Holding 110.00 10.00 27,340 Smn Power Holding Saog 0.74 0.00 - Gulf Medical Projects 2.40 0.00 - Saudi Arabian Fertilizer Co 68.18 2.40 289,778 Safwan Trading & Contracting 300.00 0.00 47,760 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.91 1.11 56,000 National Gypsum 11.77 5.94 505,493 Arkan Al Kuwait Real Estate 110.00 0.00 20,005 Shell Oman Marketing 1.98 0.00 - Fujairah Cement Industries 1.25 0.00 - Saudi Ceramic Co 36.67 4.98 777,157 Gfh Financial Group Bsc 41.50 6.41 17,624,552 Sharqiyah Desalination Co Sa 4.69 1.96 10,978 Fujairah Building Industries 1.71 0.00 - National Gas & Industrializa 19.06 1.60 537,932 Energy House Holding Co Kscp 37.50 2.74 2,000 Sembcorp Salalah Power & Wat 2.38 0.21 4,163 Foodco Holding Pjsc 4.00 0.00 - Saudi Pharmaceutical Industr 24.82 3.63 586,045 Kuwait Slaughter House Co 0.00 0.00 - Salalah Port Services 0.65 0.00 - First Gulf Bank 10.95 5.29 1,286,377 Thimar 27.85 4.31 1,967,476 Kuwait Co For Process Plant 218.00 0.00 1,545 Salalah Mills Co 1.49 0.00 - Finance House 2.10 0.00 - National Industrialization C 8.60 4.62 1,364,797 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.46 6.98 13,207,328 Saudi Transport And Investme 53.00 9.53 677,502 National Ranges Company 18.00 5.88 6,635,480 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 15.75 1.29 1,662,399 Saudi Electricity Co 14.11 3.07 644,357 Al-Themar Real International 80.00 -5.88 16,150 Renaissance Services Saog 0.12 -3.17 971,546 Emirates Insurance Co. (Psc) 6.72 0.00 - Saudi Arabia Refineries Co 28.96 4.29 378,424 Al-Ahleia Insurance Co Sakp 415.00 -4.60 10 Raysut Cement Co 0.95 -2.06 20,630 Emirates Driving Company 4.55 -9.90 25,000 Arriyadh Development Company 16.19 7.22 3,959,708 Wethaq Takaful Insurance Co 39.00 0.00 2,500 Port Service Corporation 0.12 0.00 40,000 Dana Gas 0.42 2.44 38,896,449 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 72.00 1.41 7,063 Phoenix Power Co Saoc 0.13 0.77 645,875 Commercial Bank Internationa 1.85 0.00 - Saudi Research And Marketing 38.70 9.79 414,573 Aqar Real Estate Investments 80.00 0.00 11,017,087 Packaging Co Ltd 0.48 0.00 - Bank Of Sharjah 1.50 8.70 343,240 Aldrees Petroleum And Transp 31.47 4.97 991,200 Hayat Communications 44.50 0.00 28,300 Ooredoo 0.61 -2.55 334,900 Axa Green Crescent Insurance 0.75 0.00 - Saudi Vitrified Clay Pipe Co 72.66 3.71 71,392 Kuwait Packing Materials Mfg 360.00 0.00 8,081 Ominvest 0.45 0.00 2,230 Arkan Building Materials Co 0.92 0.00 - Jarir Marketing Co 120.23 3.51 132,744 Soor Fuel Marketing Co Ksc 104.00 4.00 38,652 Oman United Insurance Co 0.18 1.15 334,888 Alkhaleej Investment 2.45 0.00 - Arab National Bank 21.45 1.90 293,083 Alargan International Real 170.00 1.19 40 Oman Textile Holding Co Saog 0.35 0.00 - Aldar Properties Pjsc 2.03 4.64 23,956,664 Yanbu National Petrochemical 28.00 9.85 735,304 Burgan Co For Well Drilling 126.00 0.00 117 Oman Telecommunications Co 1.45 0.00 369,931 Al Wathba National Insurance 4.50 0.00 - Arabian Cement 40.49 5.72 1,156,032 Kuwait Resorts Co Kscc 89.00 5.95 103,200 Oman Refreshment Co 2.22 0.00 - Al Khazna Insurance Co 0.29 -6.45 197,199 Middle East Specialized Cabl 7.15 4.69 1,187,866 Oula Fuel Marketing Co 100.00 1.01 442,054 Oman Packaging 0.29 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 23.11 8.91 371,987 Palms Agro Production Co 106.00 0.00 1,235 Oman Orix Leasing Co. 0.14 0.00 - Al Dhafra Insurance Co. P.S. 4.80 0.00 - Al Sagr Co-Operative Insuran 23.30 8.93 953,166 Ikarus Petroleum Industries 73.00 0.00 153,400 Oman Oil Marketing Company 2.00 0.00 - Al Buhaira National Insuranc 2.50 0.00 - Trade Union Cooperative Insu 14.31 5.22 986,156 Mubarrad Transport Co 59.00 1.72 2,483,258 Oman National Engineering An 0.23 0.00 - Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 5.84 5.80 593,593 Al Mowasat Health Care Co 180.00 0.00 38,000 Oman Investment & Finance 0.17 1.19 1,794,829 Agthia Group Pjsc 7.10 -4.05 10,150 Saudi Chemical Company 46.47 3.43 284,723 Shuaiba Industrial Co 380.00 0.00 37,000 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.90 7.41 25,777 Fawaz Abdulaziz Alhokair & C 53.13 8.25 540,881 Hits Telecom Holding 26.00 8.33 689,087 Oman Hotels & Tourism Co 0.24 0.00 - Abu Dhabi Natl Co For Buildi 0.40 -4.76 60,000 Bupa Arabia For Cooperative 106.70 8.96 522,689 First Takaful Insurance Co 0.00 0.00 - Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 4.26 0.00 - Wafa Insurance 9.95 6.42 667,008 Kuwaiti Syrian Holding Co 22.50 -6.25 472,656 Oman Flour Mills 0.41 0.00 - Abu Dhabi National Insurance 2.90 0.00 - Jabal Omar Development Co 44.83 5.09 866,185 National Cleaning Company 36.00 0.00 12,000 Oman Fisheries Co 0.05 4.35 128,889 Abu Dhabi National Hotels 2.50 0.00 - Saudi Basic Industries Corp 65.26 3.26 11,423,167 Eyas For High & Technical Ed 335.00 0.00 430,565 Oman Fiber Optics 5.26 0.00 - Abu Dhabi National Energy Co 0.41 0.00 522,189 Saudi Kayan Petrochemical Co 5.05 6.99 56,579,281 United Real Estate Company 97.00 0.00 100,230 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.14 0.64 875,079 Etihad Atheeb Telecommunicat 4.20 2.44 4,292,520 Agility 405.00 3.85 1,454,652 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 69.60 8.78 354,171 Kuwait & Middle East Fin Inv 24.00 0.00 4,500 Oman Chromite 3.64 0.00 - National Petrochemical Co 15.95 8.87 984,722 Fujairah Cement Industries 71.00 1.43 1 Oman Chlorine 0.51 0.00 - BAHRAIN Gulf Union Cooperative Insur 8.59 5.14 604,925 Livestock Transport & Tradng 126.00 5.00 100 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 13.37 5.94 517,228 International Resorts Co 23.50 4.44 100,100 Oman Cement Co 0.46 0.44 105,000 Basic Chemical Industries 16.75 5.55 78,272 National Industries Grp Hold 104.00 5.05 1,178,910 Oman Cables Industry 1.60 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 6.34 Marine Services Co Ksc 0.00 16.28 197,539 114.00 20,000 Oman Agricultural Dev 1.75 0.00 - Zain Bahrain Bscc 0.18 0.00 4,800,000 Buruj Cooperative Insurance 6.06 Warba Insurance Co 0.00 13.47 455,545 106.00 14,986 Oman & Emirates Inv(Om)50% 0.08 0.00 - United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 3.76 Kuwait United Poultry Co 0.00 100.83 33,814 196.00 23 Natl Aluminium Products 0.21 0.00 - United Gulf Investment Corp 0.10 0.00 - Southern Province Cement Co 9.83 First Dubai Real Estate Deve 7.04 64.25 97,323 38.00 7,000 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah 7.56 Al Arabi Group Holding Co 0.00 21.48 387,102 81.00 50,007 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.24 0.00 374,361 Yamama Cement Co 4.12 Kuwait Hotels Sak 0.00 26.55 271,632 220.00 49,000 National Pharmaceutical 0.11 0.00 - Takaful International Co 0.10 0.00 - Jazan Development Co 2.76 Mobile Telecommunications Co 0.00 13.04 2,013,527 325.00 3,237,875 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 5.64 Al Safat Real Estate Co 0.00 28.47 645,226 0.00 - National Hospitality Institu 2.05 0.00 - Seef Properties 0.20 1.01 57,000 Alujain Corporation (Alco) 5.77 Tamdeen Real Estate Co Ksc 0.00 11.36 619,727 600.00 301,766 National Gas Co 0.29 0.00 10,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 3.94 Al Mudon Intl Real Estate Co 1.92 9.24 870,987 26.50 570,000 National Finance Co 0.13 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 1.38 Kuwait Cement Co Ksc -5.41 10.31 436,219 350.00 3,050 National Detergent Co Saog 0.64 0.00 - National Bank Of Bahrain Bsc 0.67 -2.19 24,100 Qassim Cement/The 4.72 Sharjah Cement & Indus Devel 1.25 59.74 104,051 81.00 101,000 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.12 2.61 300,000 Saudi Advanced Industries 6.07 Kuwait Portland Cement Co 2.04 9.61 673,417 1,000.00 3,750 National Bank Of Oman Saog 0.23 0.89 261,200 Khaleeji Commercial Bank 0.06 0.00 155,718 Kingdom Holding Co 7.73 Educational Holding Group 0.00 11.98 1,458,381 228.00 1,000 Muscat Thread Mills Co 0.13 0.00 - Ithmaar Bank Bsc 0.14 3.85 57,000 Saudi Arabian Amiantit Co 4.30 Bahrain Kuwait Insurance 0.00 7.04 1,443,969 0.00 - Muscat National Holding 1.86 0.00 - Investcorp Bank -$Us 6.60 0.00 603 Al Jouf Agriculture Developm 3.20 Asiya Capital Investments Co 2.82 21.27 628,982 36.50 551,895 Muscat Gases Company Saog 0.83 0.00 - Inovest Co Bsc 0.16 0.00 48,482 Saudi Industrial Development 5.29 Kuwait Investment Co 3.33 8.95 1,375,850 93.00 10,000 Muscat Finance 0.14 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.64 69.75 - 310.00 1,055,125 Majan Glass Company 0.20 0.00 - Gulf Hotel Group B.S.C 0.78 0.00 3,066 Riyad Bank 0.54 Kuwait Projects Co Holdings 0.00 11.17 1,104,457 520.00 1,787,846 Majan College 0.52 0.00 - Global Investment House Kpsc 0.00 0.00 - The National Agriculture Dev 4.59 Al Madina For Finance And In 3.85 18.90 2,677,818 27.00 4,439,258 Hsbc Bank Oman 0.10 0.00 - Gfh Financial Group Bsc 0.14 0.00 30,000 Halwani Bros Co 6.11 Kuwait Insurance Co 3.23 63.36 49,305 320.00 84,477 Hotels Management Co Interna 1.25 0.00 - Esterad Investment Co B.S.C. 0.20 0.00 38,920 Arabian Pipes Co 1.39 Al Masaken Intl Real Estate 6.35 9.48 6,814,081 67.00 141,691 Gulf Stone 0.11 0.00 - Delmon Poultry Co 0.32 0.00 131,166 Eastern Province Cement Co 4.08 Intl Financial Advisors 2.17 27.81 266,644 23.50 1,355,708 Gulf Plastic Industries Co 0.39 0.00 - Bmmi Bsc 0.89 0.00 10,000 Al Qassim Agricultural Co 6.30 First Investment Co Kscc 2.00 10.13 912,765 51.00 716,713 Gulf Mushroom Company 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Filing & Packing Materials M 7.78 Al Mal In 2.22 30.47 387,432 vestment Company 23.00 4,950,961 Gulf Investments Services 0.08 9.46 200,521 Bbk Bsc 0.40 -7.83 355,000 Saudi Cable Co 8.57 4.92 6.46 872,478 Bayan Investment Co Kscc 32.00 1,218,600 Gulf Invest. Serv. Pref-Shar 0.12 0.00 - Bankmuscat Saog 0.00 0.00 - Tihama Advertising & Public 5.38 0.00 19.59 1,694,351 Egypt Kuwait Holding Co Sae 156.00 28,500 Gulf International Chemicals 0.26 0.00 21,032 Banader Hotels Co ` 0.00 - Saudi Investment Bank/The 1.18 4.35 15.45 119,799 Coast Investment Development 24.00 938,107 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Tourism Co 0.23 1.79 31,500 Astra Industrial Group 4.66 1.12 15.71 512,962 Privatization Holding Compan 45.00 354,046 Global Fin Investment 0.11 0.00 - Bahrain Telecom Co 0.32 0.00 43,589 Saudi Public Transport Co 2.88 -8.47 11.06 9,481,314 Kuwait Medical Services Co 27.00 45,080 Galfar Engineering&Contract 0.06 1.82 201,380 Bahrain Ship Repair & Engin 1.81 0.00 3,375 Taiba Holding Co 5.43 1.28 31.09 201,668 Injazzat Real State Company 79.00 10,000 Galfar Engineering -Prefer 0.39 0.00 - Bahrain National Holding 0.00 0.00 - Saudi Industrial Export Co 6.17 -9.09 28.03 827,287 Kuwait Cable Vision Sak 25.00 11,500 Financial Services Co. 0.17 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Real Estate Co 3.46 -5.75 17.35 1,633,658 Sanam Real Estate Co Kscc 41.00 450 Financial Corp/The 0.11 0.00 - Bahrain Islamic Bank 0.14 0.00 14,989 Saudia Dairy & Foodstuff Co 3.60 3.95 113.71 47,683 Ithmaar Bank Bsc 39.50 16,282,129 Dhofar University 1.49 0.00 - Bahrain Flour Mills Co 0.00 0.00 - National Shipping Co Of/The 3.52 0.00 36.81 4,516,420 Aviation Lease And Finance C 192.00 42,066 Dhofar Tourism 0.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - Methanol Chemicals Co 5.09 0.00 5.57 2,327,499 Arzan Financial Group For Fi 35.00 300 Dhofar Poultry 0.18 0.00 - Bahrain Duty Free Complex 0.90 0.00 20,000 Ace Arabia Cooperative Insur 4.97 11.90 38.44 174,076 Ajwan Gulf Real Estate Co 23.50 603,741 Dhofar Intl Development 0.40 0.00 - Bahrain Commercial Facilitie 0.77 0.00 3,000 Mobile Telecommunications Co 4.61 0.00 6.58 3,562,190 Kuwait Business Town Real Es 34.00 1,368,500 Dhofar Insurance 0.21 0.00 100 Bahrain Cinema Co 1.30 0.00 1,174 Saudi Arabian Coop Ins Co 5.08 0.00 14.26 517,512 Future Kid Entertainment And 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Bahrain Car Park Co 0.00 0.00 - Axa Cooperative Insurance 5.64 0.00 11.98 1,105,254 Specialities Group Holding C 88.00 20,100 Dhofar Cattlefeed 0.21 0.00 - Arab Insurance Group(Bsc)-$ 0.38 0.00 47,500 Alsorayai Group 3.31 9.09 10.91 762,042 Abyaar Real Eastate Developm 24.00 444,642 Dhofar Beverages Co 0.26 0.00 - Arab Banking Corp Bsc-$Us 0.50 0.00 288,170 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 0.00 - Construction Materials Ind 0.03 0.00 6,000 Aluminium Bahrain Bsc 0.36 -0.56 47,216 Bank Albilad 7.20 0.00 20.41 1,052,738 Al-Dar National Real Estate 20.50 18,338,973 Computer Stationery Inds 0.26 0.00 - Albaraka Banking Group 0.56 0.00 43,500 Al-Hassan G.I. Shaker Co 6.50 -3.13 21.97 407,709 Kgl Logistics Company Kscc 46.50 597,000 Bankmuscat Saog 0.40 1.00 1,254,345 Al-Salam Bank 0.08 0.00 363,345 Wataniya Insurance Co 5.46 -1.28 48.87 102,449 Combined Group Contracting 770.00 510 Bank Sohar 0.13 0.00 1,071,809 Al-Ahlia Insurance Co 0.00 0.00 - Abdullah Al Othaim Markets 67.60 3.79 114,339 Zima Holding Co Ksc 88.00 -2.22 1,728,020 Bank Nizwa 0.07 3.13 1,835,585 Hail Cement 11.42 2.24 995,205 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Wednesday, January 20, 2016 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 16,095.70 +107.62 Apple Inc 97.36 0.23 13,846,736 S&P 500 Index 1,895.81 +15.48 Microsoft Corp 50.98 -0.02 10,703,987 Nasdaq Composite Index 4,515.74 +27.33 Exxon Mobil Corp 77.42 -0.21 5,950,774 S&P/Tsx Composite Index 12,059.64 +117.47 General Electric Co 28.72 0.81 12,955,738 Mexico Bolsa Index 41,038.53 +433.74 Johnson & Johnson 97.64 0.66 2,717,268 Brazil Bovespa Stock Idx 38,275.37 +338.10 Jpmorgan Chase & Co 57.13 0.15 5,923,111 Ftse 100 Index 5,887.02 +107.10 Procter & Gamble Co/The 76.15 1.56 3,125,191 Cac 40 Index 4,277.09 +87.52 Pfizer Inc 30.92 0.36 7,975,440 Dax Index 9,685.97 +164.12 Wal-Mart Stores Inc 62.38 0.73 3,361,896 Ibex 35 Tr 8,574.10 +104.80 Walt Disney Co/The 94.59 0.73 4,793,527 Nikkei 225 17,048.37 +92.80 Coca-Cola Co/The 41.80 0.72 4,550,964 Japan Topix 1,390.41 +2.48 Verizon Communications Inc 44.75 0.72 5,333,611 Hang Seng Index 19,635.81 +398.36 Visa Inc-Class A Shares 71.87 0.06 4,661,056 All Ordinaries Indx 4,955.10 +43.25 Home Depot Inc 120.74 1.27 1,889,224 Nzx All Index 1,180.37 +4.03 Chevron Corp 83.55 -0.14 3,285,533 Bse Sensex 30 Index 24,479.84 +291.47 Intel Corp 29.97 0.71 7,650,676 Nse S&P Cnx Nifty Index 7,435.10 +84.10 Merck & Co. Inc. 51.53 0.76 2,480,580 Straits Times Index 2,638.47 +45.47 Cisco Systems Inc 23.96 1.44 10,349,794 Karachi All Share Index 21,735.14 +331.67 Intl Business Machines Corp 129.96 -0.05 2,404,315 Jakarta Composite Index 4,491.74 +10.46 Nike Inc -Cl B 58.76 2.08 2,926,701 Unitedhealth Group Inc 113.11 3.51 2,206,274 Mcdonald’s Corp 116.10 0.80 2,118,220 Boeing Co/The 126.32 0.55 1,219,046 TOKYO 3M Co 139.66 0.70 758,849 United Technologies Corp 85.49 -0.16 1,841,803 Company Name Lt Price % Chg Goldman Sachs Group Inc 156.91 0.84 1,469,516 Rakuten Inc 1,180.00 -2.40 9,556,500 American Express Co 63.23 0.51 1,560,662 Kyocera Corp 5,124.00 1.26 1,108,000 Du Pont (E.I.) De Nemours 54.02 -0.13 2,208,347 Nissan Motor Co Ltd 1,114.50 1.36 11,298,100 Caterpillar Inc 59.86 -0.02 2,293,454 Hitachi Ltd 612.40 2.00 24,029,000 Travelers Cos Inc/The 105.82 0.69 612,836 Takeda Pharmaceutical Co Ltd 5,530.00 -0.27 1,997,000 Jfe Holdings Inc 1,696.50 3.35 5,500,700 Ana Holdings Inc 335.40 -0.21 14,995,000 FTSE 100 Mitsubishi Electric Corp 1,122.50 2.56 7,599,000 Sumitomo Mitsui Financial Gr 4,055.00 -1.22 9,533,700 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,441.00 0.91 5,975,400 Fast Retailing Co Ltd 37,220.00 1.33 739,800 Wpp Plc 1,448.00 1.97 1,555,562 Ms&Ad Insurance Group Holdin 3,069.00 -0.03 1,445,800 Worldpay Group Plc 301.80 -0.03 3,027,883 Kubota Corp 1,673.00 0.69 2,695,000 Wolseley Plc 3,358.00 1.91 513,584 The logo of Alstom is seen at its plant in the town of Birr, Switzerland. Shares of the French engineering group fell 4.6% with Seven & I Holdings Co Ltd 5,073.00 -0.14 2,056,200 Whitbread Plc 3,961.00 1.56 295,164 traders attributing the move to technical selling triggered by the company’s €3.2bn share buyback programme. Inpex Corp 997.10 1.21 6,585,500 Vodafone Group Plc 216.90 1.62 29,346,966 Resona Holdings Inc 557.20 -1.03 9,725,900 United Utilities Group Plc 920.00 1.60 634,917 Asahi Kasei Corp 755.50 -0.11 6,136,000 Unilever Plc 2,922.00 2.78 2,320,154 Kirin Holdings Co Ltd 1,552.50 -1.30 2,420,400 Tui Ag-Di 1,234.00 5.38 695,456 Marubeni Corp 552.90 0.20 8,675,400 Travis Perkins Plc 1,818.00 0.78 355,586 Mitsubishi Ufj Financial Gro 646.80 -1.91 102,416,900 Tesco Plc 159.50 -1.27 29,069,759 Mitsubishi Chemical Holdings 670.80 0.81 5,482,000 Taylor Wimpey Plc 185.30 3.06 8,053,828 Fanuc Corp 18,650.00 1.86 1,348,300 European shares bounce Standard Life Plc 365.60 1.64 1,462,536 Daito Trust Construct Co Ltd 13,980.00 -0.96 500,600 Standard Chartered Plc 490.15 0.21 5,187,271 Otsuka Holdings Co Ltd 3,894.00 -0.59 1,055,900 St James’s Place Plc 925.00 2.83 870,043 Oriental Land Co Ltd 7,237.00 -1.91 1,273,400 Sse Plc 1,419.00 0.42 2,347,458 Sekisui House Ltd 1,793.00 -1.02 3,017,200 Sports Direct International 393.80 0.97 1,002,813 Secom Co Ltd 7,655.00 -0.10 1,133,300 Smiths Group Plc 892.50 1.19 392,201 Tokio Marine Holdings Inc 4,088.00 0.76 1,612,400 from lows led by miners Smith & Nephew Plc 1,114.00 1.00 1,323,887 Aeon Co Ltd 1,520.50 -1.30 4,281,300 Sky Plc 1,047.00 1.45 1,470,130 Mitsui & Co Ltd 1,311.00 0.69 7,722,200 Shire Plc 4,243.00 -0.16 1,046,859 modities such as oil, copper, nickel and en regional banks, saying it would Kao Corp 5,625.00 -0.20 1,340,300 Reuters Severn Trent Plc 2,112.00 1.98 360,376 aluminium. bolster its capital and help finance Dai-Ichi Life Insurance 1,711.00 0.50 4,720,400 London Schroders Plc 2,592.00 2.73 131,979 Mazda Motor Corp 2,085.50 2.18 7,644,500 Shares in Anglo American, Glen- dividends. Sainsbury (J) Plc 239.30 -0.08 3,047,734 Komatsu Ltd 1,769.00 0.80 3,639,300 core, Rio Tinto and BP rose 1.5 to 7.2% Prudential was up 4.3% after the Sage Group Plc/The 568.50 2.43 1,077,276 West Japan Railway Co 7,640.00 -0.68 666,600 uropean equities bounced back after economic data from China, the British insurer posted a slightly above- Sabmiller Plc 4,134.00 0.27 1,209,932 Murata Manufacturing Co Ltd 14,200.00 0.85 1,523,800 Rsa Insurance Group Plc 407.20 2.06 2,266,085 from 13-month lows yesterday, world’s top metals consumer. forecast capital ratio under new Euro- Kansai Electric Power Co Inc 1,287.50 -1.64 2,016,000 Royal Mail Plc 436.50 1.63 1,447,223 with mining and energy stocks Growth in China’s fourth-quarter pean rules. Denso Corp 5,160.00 0.76 1,282,800 E Royal Dutch Shell Plc-B Shs 1,376.00 2.88 7,181,113 leading the market higher as prices of gross domestic product eased, as ex- There were strong gains across all Sompo Japan Nipponkoa Holdin 3,453.00 -0.43 946,200 Royal Dutch Shell Plc-A Shs 1,371.50 2.47 8,311,185 Daiwa House Industry Co Ltd 3,070.00 -2.26 2,983,200 major industrial metals and crude oil pected, to 6.8% from a year earlier, European equity sectors, but Danish Royal Bank Of Scotland Group 265.40 2.00 6,875,362 Jx Holdings Inc 434.00 1.02 8,397,900 surged following the release of Chinese down from 6.9% in the third quar- enzyme maker Novozymes fell 8.8% Rolls-Royce Holdings Plc 552.50 2.60 2,789,800 Nippon Steel & Sumitomo Meta 2,166.00 3.17 4,489,700 growth data. ter and marking the weakest pace of after trimming its longer-term sales Rio Tinto Plc 1,670.50 2.33 4,220,548 Suzuki Motor Corp 3,360.00 1.94 2,222,100 Relx Plc 1,167.00 2.01 1,182,012 The pan-European FTSEurofi rst expansion since the first quarter of forecasts. Nippon Telegraph & Telephone 4,716.00 -0.59 3,596,300 Reckitt Benckiser Group Plc 6,104.00 1.65 711,976 300 index was up 1.9% by 1413 GMT 2009. Full-year growth of 6.9% was Alstom fell 4.6% with traders at- Ajinomoto Co Inc 2,574.50 -1.28 1,539,000 Randgold Resources Ltd 4,307.00 -1.49 317,632 after slipping to a 13-month low in the China’s poorest in a quarter of a cen- tributing the move to technical selling Mitsui Fudosan Co Ltd 2,689.00 0.06 6,061,000 Prudential Plc 1,397.00 3.75 5,301,994 previous day following three straight tury. triggered by the company’s 3.2bn euro Ono Pharmaceutical Co Ltd 17,980.00 -1.07 691,300 Provident Financial Plc 2,935.00 1.10 154,155 Daikin Industries Ltd 7,911.00 2.02 1,086,800 sessions of losses. “As fi gures weaken in absolute share buyback programme. Persimmon Plc 1,964.00 4.25 632,171 Bank Of Yokohama Ltd/The 666.60 -0.86 2,578,000 The blue-chip FTSE 100 index was terms, we can potentially see addition- Italian banks fell 0.6% after hitting Pearson Plc 685.00 -1.01 2,648,354 Toray Industries Inc 1,027.00 0.54 6,071,000 up 96.88 points, or 1.7%, at 5,876.80 al stimulus measures. That is helping one-year low as investors fretted over Old Mutual Plc 158.50 4.41 5,292,298 Astellas Pharma Inc 1,570.50 0.71 5,228,900 Next Plc 6,700.00 0.83 256,295 points by the close, recovering after it investors’ appetite for risk,” Philippe their unresolved credit troubles fol- Bridgestone Corp 3,988.00 0.63 2,689,900 National Grid Plc 943.80 1.92 4,718,271 closed at its lowest level in three years Gijsels, head of research at BNP Pari- lowing an ECB request for data on their Sony Corp 2,666.50 1.68 8,689,400 Mondi Plc 1,218.00 1.75 1,203,658 in the previous session. bas Fortis Global Markets in Brussels, bad loan portfolios. Hoya Corp 4,583.00 0.79 822,900 Merlin Entertainment 407.00 0.67 1,268,328 The STOXX Europe 600 Basic Re- said. Italian banks “remain very vulner- Sumitomo Mitsui Trust Holdin 404.40 -0.37 12,378,000 Marks & Spencer Group Plc 422.50 1.27 2,586,265 Japan Tobacco Inc 4,049.00 -2.22 3,729,900 sources index, which houses major Credit Agricole rose 3.7% after able to asset quality issues, especially London Stock Exchange Group 2,476.00 1.64 479,059 Osaka Gas Co Ltd 424.30 -1.19 8,362,000 mining stocks, rose 3.8%, while the the company confirmed a report in the absence of a clear and fi nal solu- Lloyds Banking Group Plc 66.22 3.53 124,413,603 Sumitomo Electric Industries 1,523.00 0.36 2,087,200 European oil and gas index was up that it was looking at the possibility tion to the problem of bad loans,” said Legal & General Group Plc 245.60 2.76 6,708,796 Daiwa Securities Group Inc 682.00 0.92 6,057,000 Land Securities Group Plc 1,085.00 1.59 1,785,704 2.3%, tracking gains in prices of com- of selling stakes in over three doz- Italian broker ICBPI. Softbank Group Corp 5,046.00 -1.27 14,250,200 Kingfisher Plc 332.90 1.65 2,659,246 Mizuho Financial Group Inc 213.40 -1.57 211,777,300 Johnson Matthey Plc 2,439.00 1.88 338,262 Nomura Holdings Inc 610.90 1.43 17,817,300 Itv Plc 265.00 2.91 5,019,805 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,292.50 0.15 2,066,700 Intu Properties Plc 293.00 1.74 1,308,920 Fuji Heavy Industries Ltd 4,520.00 2.96 6,224,700 Intl Consolidated Airline-Di 562.50 3.12 6,061,459 Ntt Docomo Inc 2,389.50 -0.35 4,681,400 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intertek Group Plc 2,726.00 2.67 187,365 Sumitomo Realty & Developmen 3,084.00 0.55 2,681,000 Intercontinental Hotels Grou 2,275.00 1.29 431,675 Aluminum Corp Of China Ltd-H 2.32 5.45 12,482,152 Hong Kong & China Gas 14.46 0.28 5,129,707 Sumitomo Metal Mining Co Ltd 1,237.50 2.40 3,766,000 Inmarsat Plc 1,054.00 1.35 519,109 Bank Of East Asia 23.45 1.96 2,684,614 Hong Kong Exchanges & Clear 177.10 2.67 14,590,869 Orix Corp 1,583.50 0.44 5,163,800 Imperial Tobacco Group Plc 3,565.50 -0.07 1,046,912 Bank Of China Ltd-H 3.05 2.01 382,412,093 Hsbc Holdings Plc 54.45 0.18 35,093,407 Asahi Group Holdings Ltd 3,486.00 -1.36 1,240,000 Hsbc Holdings Plc 488.85 1.91 15,425,421 Bank Of Communications Co-H 4.75 1.50 32,028,536 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 57,130.00 0.40 158,400 Hikma Pharmaceuticals Plc 2,010.00 0.95 207,454 Belle International Holdings 5.19 1.17 16,616,098 Ind & Comm Bk Of China-H 4.04 1.51 311,513,786 Nidec Corp 8,002.00 4.15 2,825,300 Hargreaves Lansdown Plc 1,278.00 3.15 461,502 Boc Hong Kong Holdings Ltd 21.05 1.45 18,137,658 Li & Fung Ltd 4.52 2.26 10,692,725 Isuzu Motors Ltd 1,168.50 0.82 3,333,300 Hammerson Plc 571.50 0.53 1,440,754 Cathay Pacific Airways 12.54 1.29 3,891,500 Mtr Corp 36.40 -0.68 5,443,540 Unicharm Corp 2,133.50 0.80 1,939,100 Glencore Plc 80.05 6.52 81,403,311 Ck Hutchison Holdings Ltd 96.50 -0.21 6,939,598 New World Development 6.83 3.17 11,683,148 Shin-Etsu Chemical Co Ltd 5,984.00 -2.32 1,871,200 Glaxosmithkline Plc 1,394.00 2.09 5,066,298 China Coal Energy Co-H 2.55 2.82 9,015,200 Petrochina Co Ltd-H 4.50 4.90 86,412,872 Smc Corp 27,415.00 0.38 279,500 Gkn Plc 287.60 2.17 2,127,121 China Construction Bank-H 4.74 1.94 277,721,608 Ping An Insurance Group Co-H 36.55 5.33 45,020,678 Mitsubishi Corp 1,855.50 -0.16 5,168,500 Fresnillo Plc 668.00 -0.96 730,783 China Life Insurance Co-H 20.80 2.97 51,590,398 Power Assets Holdings Ltd 68.95 0.22 2,894,064 Nintendo Co Ltd 15,990.00 9.07 1,492,400 Experian Plc 1,155.00 2.94 1,322,261 China Merchants Hldgs Intl 21.55 2.13 1,901,992 Sino Land Co 10.10 2.96 3,865,095 Eisai Co Ltd 7,101.00 -0.63 1,017,600 Easyjet Plc 1,642.00 2.56 472,228 China Mobile Ltd 82.80 3.37 21,020,852 Sun Hung Kai Properties 85.85 1.78 5,225,536 Sumitomo Corp 1,129.00 -0.44 5,126,400 Dixons Carphone Plc 449.70 1.72 868,115 China Overseas Land & Invest 23.00 4.55 23,895,724 Swire Pacific Ltd - Cl A 74.20 -0.80 2,455,550 Canon Inc 3,307.00 0.88 4,207,400 Direct Line Insurance Group 371.70 0.70 3,962,770 China Petroleum & Chemical-H 4.17 3.73 99,414,293 Tencent Holdings Ltd 139.80 2.79 22,604,872 Japan Airlines Co Ltd 4,320.00 -0.85 1,898,500 Diageo Plc 1,830.00 2.84 1,634,084 China Resources Beer Holdin 14.84 1.92 3,387,703 Wharf Holdings Ltd 38.15 3.25 4,862,761 Dcc Plc 5,065.00 1.20 217,290 China Resources Land Ltd 18.54 3.46 15,161,464 China Resources Power Holdin 13.44 0.15 6,978,775 Crh Plc 1,823.00 3.99 1,116,634 SENSEX Compass Group Plc 1,160.00 1.49 1,651,981 China Shenhua Energy Co-H 10.88 2.06 19,908,697 GCC INDICES Coca-Cola Hbc Ag-Di 1,395.00 1.75 162,703 China Unicom Hong Kong Ltd 8.66 3.59 24,208,094 Centrica Plc 209.60 2.14 7,567,619 Company Name Lt Price % Chg Citic Ltd 11.46 0.70 16,054,260 Indices Lt Price Change Carnival Plc 3,744.00 2.41 447,787 Clp Holdings Ltd 63.30 0.64 1,982,067 Doha Securities Market Zee Entertainment Enterprise 394.30 0.10 1,226,206 8,986.50 +469.68 Capita Plc 1,159.00 2.02 356,605 Cnooc Ltd 7.01 4.01 81,812,918 Saudi Tadawul Yes Bank Ltd 681.25 3.85 5,194,000 5,746.40 +221.28 Burberry Group Plc 1,142.00 1.87 1,708,486 Cosco Pacific Ltd 7.95 0.76 2,618,884 Kuwait Stocks Exchange Wipro Ltd 542.00 -0.94 1,005,558 5,084.21 +29.57 Bunzl Plc 1,771.00 0.63 290,830 Esprit Holdings Ltd 7.64 1.73 1,838,501 Bahrain Stock Exchage Vedanta Ltd 69.25 0.80 27,955,382 1,175.76 -20.51 Bt Group Plc 468.45 1.97 8,042,989 Fih Mobile Ltd 2.85 1.79 5,952,847 Oman Stock Market Ultratech Cement Ltd 2,638.70 -0.09 254,774 4,981.58 +0.01 British Land Co Plc 718.50 0.91 3,218,295 Hang Lung Properties Ltd 15.52 1.44 3,086,873 Abudhabi Stock Market Tech Mahindra Ltd 512.50 -0.95 1,028,912 3,889.24 +94.26 British American Tobacco Plc 3,658.00 1.27 1,427,490 Hang Seng Bank Ltd 129.10 -0.69 2,635,783 Dubai Financial Market Tata Steel Ltd 238.00 0.89 7,368,597 2,765.97 +88.47 Bp Plc 344.35 1.13 27,600,456 Henderson Land Development 42.95 3.12 3,234,340 Tata Power Co Ltd 64.25 4.22 4,123,511 Bhp Billiton Plc 630.80 3.61 11,175,180 Tata Motors Ltd 354.15 4.10 8,006,964 Bg Group Plc 940.50 1.28 6,308,190 Tata Consultancy Svcs Ltd 2,279.30 0.07 511,343 Berkeley Group Holdings 3,563.00 3.88 308,725 Sun Pharmaceutical Indus 793.90 1.14 2,302,790 Barratt Developments Plc 581.00 2.56 1,543,901 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 182.95 1.08 26,850,018 Barclays Plc 190.95 1.76 23,814,922 Reliance Industries Ltd 1,043.60 2.63 5,451,570 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Bae Systems Plc 507.00 -0.39 7,673,606 Punjab National Bank 92.45 1.76 8,080,244 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Babcock Intl Group Plc 951.50 2.04 763,416 Power Grid Corp Of India Ltd 135.95 -1.59 4,209,332 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Aviva Plc 476.90 2.98 4,524,535 Oil & Natural Gas Corp Ltd 218.00 1.68 2,798,121 this data.” Astrazeneca Plc 4,322.50 2.66 1,268,276 Ntpc Ltd 135.15 0.41 2,829,570 Associated British Foods Plc 3,020.00 0.60 634,865 Maruti Suzuki India Ltd 4,198.15 -0.90 533,558 Ashtead Group Plc 971.00 2.21 825,729 Mahindra & Mahindra Ltd 1,152.50 -1.13 1,045,379 Arm Holdings Plc 970.00 2.21 2,303,895 Lupin Ltd 1,699.75 -0.16 542,440 CURRENCIES Antofagasta Plc 355.90 1.69 2,539,235 Larsen & Toubro Ltd 1,122.95 3.64 3,256,909 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Anglo American Plc 241.40 3.76 13,717,247 DINAR DINAR Kotak Mahindra Bank Ltd 668.70 0.19 1,168,667 Admiral Group Plc 1,689.00 2.93 625,600 Itc Ltd 314.05 -0.43 4,755,264 Aberdeen Asset Mgmt Plc 229.80 2.77 3,323,530 Infosys Ltd 1,139.65 0.68 4,107,321 3I Group Plc 432.10 1.41 578,878 Indusind Bank Ltd 896.45 -0.29 1,135,671 #N/A 0.00 0.00 - Idea Cellular Ltd 116.70 4.71 2,720,981 Icici Bank Ltd 228.75 2.53 15,462,763 TOKYO Housing Development Finance 1,153.00 1.87 1,578,070 Hindustan Unilever Ltd 810.45 0.06 951,140 Hindalco Industries Ltd 71.85 0.91 5,311,286 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 2,482.80 1.94 245,120 East Japan Railway Co 10,435.00 0.29 997,700 Hdfc Bank Limited 1,035.80 0.97 1,876,845 Itochu Corp 1,303.00 0.58 6,092,600 Hcl Technologies Ltd 838.25 -0.49 5,642,399 Fujifilm Holdings Corp 4,628.00 1.00 1,770,700 Grasim Industries Ltd 3,522.70 0.62 79,053 Yamato Holdings Co Ltd 2,355.00 1.09 1,204,100 Gail India Ltd 342.95 1.03 796,309 Chubu Electric Power Co Inc 1,479.00 -1.24 1,702,300 Dr. Reddy’s Laboratories 2,915.50 1.41 270,987 Mitsubishi Estate Co Ltd 2,264.00 0.24 3,677,000 Coal India Ltd 308.85 -0.64 3,455,199 Mitsubishi Heavy Industries 464.10 1.00 14,892,000 Cipla Ltd 598.05 1.18 961,796 Toshiba Corp 233.00 1.17 38,990,000 Cairn India Ltd 114.70 3.57 5,516,740 Shiseido Co Ltd 2,220.50 -0.98 2,561,300 Bosch Ltd 18,010.90 0.94 35,751 Shionogi & Co Ltd 5,080.00 0.69 1,183,600 Bharti Airtel Ltd 310.30 3.35 3,444,994 Tokyo Gas Co Ltd 519.60 -1.55 8,856,000 Bharat Petroleum Corp Ltd 895.80 -0.09 1,013,715 Tokyo Electron Ltd 6,859.00 1.46 767,400 Bharat Heavy Electricals 144.30 1.55 4,690,392 Panasonic Corp 1,118.00 2.90 13,530,500 Bank Of Baroda 125.15 -0.44 8,270,239 Fujitsu Ltd 544.80 0.35 13,847,000 Bajaj Auto Ltd 2,266.30 0.73 162,454 Central Japan Railway Co 20,595.00 -1.18 420,900 Axis Bank Ltd 393.00 5.31 14,974,361 T&D Holdings Inc 1,399.50 0.43 1,835,000 Asian Paints Ltd 845.55 -0.56 2,682,409 Toyota Motor Corp 6,804.00 0.92 10,016,300 Ambuja Cements Ltd 191.35 0.13 2,396,768 Kddi Corp 2,831.00 0.30 5,206,800 Adani Ports And Special Econ 232.85 6.18 4,045,219 Nitto Denko Corp 7,159.00 0.76 1,351,000 Acc Ltd 1,235.30 0.90 182,692 Gulf Times 14 Wednesday, January 20, 2016 BUSINESS

Davos robot eclipses Davos man as gloom descends on world elite

Bloomberg University of the West of England, who Blackstone Group chairman Stephen largely shielded from the advances of a former US Treasury off icial who now support for anti-establishment politicians Davos will be speaking in Davos. “There need to Schwarzman and Bank of America CEO technology. A WEF analysis estimates a heads the Institute of International Fi- like Trump, said Davos regular Stu Eizen- be solutions.” Brian Moynihan will address the techno- net loss of 5mn jobs in 15 major econo- nance. Bank of America estimates manu- stat, a former off icial in the US State and Jostling with robots for the attention logical challenges facing finance. mies by 2020. facturing and healthcare alone will see Treasury departments who’s now at law First there was Davos Man and then Davos of the assembled executives, bankers, Occupying what organisers have called In finance, Bank of America’s Merrill $9tn in cost savings in the next decade, firm Covington & Burling. If leaders aren’t Woman. Get ready for Davos Robot. politicians and economists will be the the “Robot Space” will be a showcase of Lynch unit is already looking to auto- while productivity could jump by almost a careful, we’ll have “a revolution that disen- Facebook’s Sheryl Sandberg, JPMor- slowdown in China and resulting tremors HUBO, which was developed at the Korea mate investment advice for some clients third in many industries. franchises a lot of middle class people and gan Chase’s Jamie Dimon and Alibaba’s in financial markets, the renewed burst of Advanced Institute of Science and Tech- with accounts under $250,000. Morgan The rub is what happens if the losses breeds a lot of resentment,” he said. Jack Ma will share the spotlight with a geopolitical tensions from North Korea nology. The robot last year scooped up a Stanley and Wells Fargo & Co also say from the revolution are suff icient to stifle Those on the cutting edge of develop- prize-winning South Korean robot called to Saudi Arabia, Europe’s migration crisis, $2mn prize for beating 22 international they’ll develop or acquire robo-advisers. economic demand for the products ing new computing systems are more HUBO at the annual meeting of the World and the US presidential ambitions of rivals in a competition sponsored by the Even the most traditionally lucrative churned out by machines. One reason to optimistic. At IBM, researchers are work- Economic Forum this week in the Swiss Donald Trump. US Department of Defence. corners of investing may not be safe; fear this is that the number of people af- ing to build products atop the Watson ski resort. It’s a presence they’ll have to All will shape conversations in the Other discussions betray anxiety as Highbridge Capital, an in-house hedge fected could be higher than once thought. computing platform — best known for its get used to. fabled Belvedere Hotel and other venues, well as wonder. There are panels on fund of JPMorgan, is working with San McKinsey & Co researchers estimate that skill answering questions on the television The adult-sized automaton, which can which over the past four decades have what happens when robots go to war, Francisco-based Sentient Technologies by 2025 robots or automated software quiz show “Jeopardy” — that will search climb stairs and enter and exit a car, will become the focal point for the world econ- potentially replacing “both soldiers and to use so-called artificial intelligence for will be able to do the jobs of 140mn knowl- for job candidates, analyse academic be a star attraction at the conference. It omy one week every January. Stardust generals,” and whether innovation “is fail- building investing strategies. edge workers. research or even help oncologists make illustrates a looming challenge for the will be spread by the likes of Leonardo ing the middle class” by eliminating jobs. Meanwhile, Google parent Alphabet, US President Barack Obama, who is dis- better treatment decisions. 2,500 elite delegates: How to protect their DiCaprio, Kevin Spacey, and will.i.am. Few experts dispute that the rise of robots which will be represented in Davos by patching the highest-profile American del- Such revolutionary technology is the companies and jobs by harnessing ad- About 20 sessions during the four-day and sophisticated software to power them executive chairman Eric Schmidt, has egation to Davos since he took off ice, in this only way to solve “the big problems” vances in artificial intelligence and robot- conference are devoted to the off icial will create winners and losers, as did the bought a string of robotics companies. month’s State of the Union address warned like climate change and disease, while ics, without exacerbating the economic theme of “the Fourth Industrial Revolu- steam engine and the advent of mass And Facebook founder Mark Zuckerberg that “technology doesn’t just replace jobs on also making plenty of ordinary workers frustration and populist discord spreading tion,” a catch-all term for rapid technologi- production. this month said his personal challenge for the assembly line, but any job where work more productive and better at their jobs, around the globe. cal progress. Oxford University researchers, for 2016 is to build an artificially intelligent can be automated.” That could increase according to Guru Banavar, IBM’s vice- “If some of the predictions about tech Sandberg, Facebook’s chief operating example, reckon almost half of American home assistant. economic frustration that’s already running president for cognitive computing. and employment come true, then we off icer, will join Microsoft chief executive jobs are at risk of being automated within “If the executives are smart, they see high in the US, Europe and elsewhere. “Fundamentally,” Banavar said, “people should all be worried,” said Alan Winfield, off icer Satya Nadella in debating how it the next two decades. Most notable are it as a challenge that they can wield in Disappointment with the current state have to get comfortable using these ma- a professor specialising in robotics at the will “transform industries and societies.” high-skill roles that have so far been their firm’s own interest,” said Tim Adams, of economic aff airs is a major driver of chines that are learning and reasoning.”

Renault plans BoE’s Carney says no software patch timetable for rate hike to cut diesel

Reuters emissions London

Reuters ment-led commission estab- ank of England Governor Paris lished after the VW scandal has Mark Carney said yester- also found relatively high NOx Bday he had no set timeta- emissions from Renault mod- ble for raising interest rates and enault said yesterday it els, members have said. avoided giving his trademark planned a software up- The French carmaker will steer on what was likely to hap- Rgrade to cut nitrogen detail the planned adjustments pen to borrowing costs against a oxide (NOx) pollution from in March for vehicles with the volatile global economic back- its diesel engines, which have latest Euro 6 generation of die- drop. come under fi re for their rela- sels, Bollore told reporters, and Carney, making his fi rst tively high emissions in the begin off ering voluntary engine speech of 2016 as growth hit a wake of the Volkswagen test- checks to owners four months quarter-century low in China rigging scandal. later. while wages rise more slowly at Following VW’s exposure Based on current production home, said he would only com- last September for using soft- levels, the approximate number mit to keeping the bank focused ware “defeat devices” to cheat of vehicles eligible for checks on its infl ation target. US regulatory tests, the French could approach 700,000, Re- “That means we’ll do the carmaker has drawn public and nault said, but the total ulti- right thing, at the right time, on investor scrutiny over its own mately aff ected and brought in rates,” he said. emissions performance. to dealerships is bound to be Britain’s economy has grown As of Monday’s market close, much lower. No fi rm estimates strongly over the past two years Renault shares had fallen 14% have yet been made, the com- and last summer Carney said a since the January 14 disclosure pany added. Software tweaks decision on when to start rais- that investigators raided its can be “fl ashed” to a vehicle ing interest rates would probably offi ces this month over sus- during a routine oil change or become clear by about now. picions of emissions fraud — servicing visit, at minimal extra But over the past six months since roundly denied by com- cost. the mood at the BoE has become pany and government offi cials. Bollore, second-in-com- markedly more cautious and At 1236 GMT, the stock was up mand to chief executive Carlos plunging oil prices have kept in- 1.8% at €75.50. Ghosn, had already announced fl ation close to zero, way below Besides VW’s outright last month that Renault was the Bank’s 2% target. cheating, the diesel scandal stepping up investment to im- “The year has turned, and, has heightened awareness of prove its NOx emissions per- in my view, the decision proved real-world NOx emissions by formance. straightforward — now is not yet the broader auto industry far The carmaker has earmarked the time to raise interest rates,” exceeding those measured in €50mn ($54mn) to upgrade Carney said, referring to his fl awed European regulatory its current diesels, while ac- forecast of July. tests — with Renault often cited celerating the €1.2bn develop- Investors expect no hike until Bank of England governor Mark Carney gestures as he speaks at Queen Mary University in London yesterday. Carney, making his first speech by campaigners as among the ment of their next generation 2017 while economists think one of 2016 as growth hit a quarter-century low in China while wages rise more slowly at home, said he would only commit to keeping the bank worst off enders. — dubbed Euro 6D — from fi ve will happen in the second half of focused on its inflation target. German green group DUH years to three. this year. said in November that Re- Renault’s relatively poor Shortly after taking over the prices to start their slide, gener- to be “moving notably towards students at the University of would probably remain strong nault’s popular Espace minivan record on NOx — blamed for BoE nearly three years ago, Car- ating global fears about defl ation the target”. London. “(It) doesn’t have a set but China and other emerging had released NOx emissions 25 a host of respiratory illnesses ney gave a specifi c milestone — a and tying the BoE’s hands. British infl ation data yesterday timetable, only an expected di- economies posed risks. times over EU limits during a — contrasts sharply with its fall in Britain’s unemployment Yesterday, he mentioned three showed prices were fl at in 2015, rection of travel.” British wage growth has also Swiss study using driving styles achievements in developing rate below 7% — that might factors he would be looking for the lowest reading since compa- Earlier yesterday, the Inter- been weaker than he expected — that are more realistic than the diesel and gasoline engines that swing his thinking towards but avoided giving any specifi c rable records began in 1950. national Monetary Fund’s chief and below the 3% level Carney EU test cycle. achieve industry-leading levels moving on rates, part of his ef- threshold levels. Core infl ation — which strips economist said he expected the had previously identifi ed as pro- “We agree that our position of fuel economy, and accompa- forts to make bank policy more Britain’s economy would need out most of the eff ect of the past BoE to wait for strong evidence pitious for a rate hike. is not satisfactory,” Renault nying low carbon dioxide emis- transparent. to grow faster than average for a year’s slump in oil prices — rose of faster wage growth before Yesterday he said the level of chief competitive offi cer Thi- sions. But unemployment took only move on rates, he said, in con- more than expected however raising rates. unemployment which would erry Bollore told reporters at Separately, Renault con- a few months to hit that level trast to signs that growth slowed to 1.4% in December. This was Only one of the BoE’s nine trigger higher infl ation might the company’s headquarters fi rmed yesterday it was recall- rather than the three years the to below its long-run average in its highest since January 2015, policymakers has voted for a rate be lower than the BoE’s current west of Paris, while disputing ing more than 15,000 diesel BoE had forecast, and far too the second half of 2015. though still well below the BoE’s hike in recent months. On Mon- 5% estimate. The BoE would many of the reported measure- versions of its Captur mini- soon for the Bank to consider a Second, underlying price 2% target for headline infl ation. day, Gertjan Vlieghe, its newest also be vigilant for signs that ments. “We are the fi rst ones SUV to correct an engine proc- rate hike. Then, in 2014, he said pressures — chiefl y wage growth “The journey to monetary rate-setter, said he might vote low infl ation was getting en- to admit that we have room for essor fault that disabled its ex- rates could go up sooner than — would need to pick up, and policy normalisation is still for a cut if bad news piled up. trenched through less generous improvement.” haust after-treatment system, markets expected, only for oil third, core infl ation would need young,” he told an audience of Carney said British demand wage deals. Testing by a French govern- causing NOx levels to soar. Draghi eff orts thwarted by oil as economists see more easing

Bloomberg infl ation to the central bank’s goal of will keep all interest rates unchanged consumer prices will rise by just 0.5% the March 10 policy meeting, with 45% not encounter major opposition Frankfurt just under 2% has twice been extend- this week. in 2016. predicting the central bank will act by within the council.” ed. The Governing Council will meet On December 3, Draghi cut the de- Euro-area infl ation stood at 0.2% in June. The remaining 10% see action in Even as he struggles to return infl a- on Thursday in Frankfurt after already posit rate to minus 0.3%, extended as- December, lower than anticipated. An- September. tion to the euro area, Draghi continues ario Draghi may have to up the showing itself to be divided on the right set purchases to at least March 2017 alysts forecast the rate to turn negative An expansion of monthly asset to retain economists’ confi dence. More ante, and he has oil to blame. policy approach, raising the pressure and pledged to re-invest the principal in the coming months before picking up purchases and a deeper cut to the de- than 80% of respondents said the ECB M More than 60% of econo- on Draghi to convince his watchers that of maturing bonds to prevent low price in the second half of the year. posit rate were already discussed in president will bring price growth back mists surveyed by Bloomberg predict he can still deliver on his mandate. growth from becoming entrenched. “The ECB must react to this in order December, according to an account of to just under 2% before the end of his the European Central Bank president “If oil prices remain at the current The package, which he labelled “ad- to maintain credibility on its ‘infl ation the meeting published last week. At term in October 2019. Almost 90% will announce more stimulus this year, depressed levels, the ECB will probably equate” to lift infl ation, fell short of is not rising fast enough’ argument that the time, some officials argued that of economists see the ECB starting to up from 40% in December, after a re- not just sit, wait and hope for the best,” investors’ expectations, pushing up the was behind the December” decision, they saw no case for action, with a raise interest rates before Draghi leaves newed oil-price slump depressed the said Holger Sandte, chief European euro and sparking a rout in equities and said Rasmus Gudum-Sessingoe, senior few speaking in favour of focusing on offi ce. outlook for euro-area infl ation. Fifty- analyst at Nordea Markets in Copenha- a rally in bonds. economist at Svenska Handelsbanken the rate the ECB applies to excess re- That is, if oil doesn’t continue to seven percent of those say Draghi will gen. “We could see more easing as early A drop of almost 40% in the price of in Copenhagen. “The obstacles that serves. thwart his eff orts. expand monthly bond-buying from as in March.” crude since then, to a 12-year low un- we see to action being taken in March “The risk balance has deteriorated “At this juncture it is really all about the current €60bn ($66bn), while 53% The ECB will publish updated in- der $28 a barrel on Monday, has cast include whether the ECB is able to fi nd compared to early December,” said the infl ation outlook,” said Alan Mc- forecast another cut to the deposit flation and growth forecasts at its a shadow over the ECB’s most recent common ground within the Governing Anna Maria Grimaldi, an econo- Quaid, an economist at Merrion Capi- rate. March meeting, where any down- forecast of infl ation accelerating to Council.” mist at Intesa Sanpaolo in Milan. “If tal in Dublin. “It is hard to see a sudden Since the ECB started quantitative grades could provide the justification an average of 1% this year and 1.6% in In the Bloomberg survey, 45% of downside risks are confirmed, the rise in infl ation unless oil prices pick up easing 10 months ago, prices have bare- for more action. Economists in a sep- 2017. Banks such as BNP Paribas and those economists foreseeing more ECB may try to steer expectations to- dramatically, though that looks unlike- ly risen and the timeframe for returning arate survey predict the central bank Bank of America Merrill Lynch project stimulus say it will be announced at ward a deposit-rate cut which should ly anytime soon.” Gulf Times Wednesday, January 20, 2016 15 BUSINESS Credit Agricole Ample storage space for to sell regional oil may limit price moves bank stakes

New storage capacity to expensive “fl oating” storage on Bloomberg buy back the 25% stakes cur- come on line in Asia this crude oil tankers. London rently owned by Credit Ag- year; extra space cuts chance The lack of this gap is becom- ricole, said the people, who overspill will drive oil price ing a headline issue as the ideal asked not to be identifi ed be- down; storage also limits locations come up against space redit Agricole, the cause deliberations are private. likelihood of sharp price rise constraints. French lender seeking The French lender may be ready Stocks at Cushing, Oklahoma, Cways to bolster capi- to announce a deal in March, Reuters the US pricing hub that is a lo- tal buff ers, said it’s exploring though it is discussing various London gistically ideal place to store oil, the sale of stakes in more than options, the people said. tanks are now around 70% full, three dozen regional banks. The A spokeswoman for Credit according to US Energy Infor- shares surged. Agricole declined to comment. here is more storage space mation Administration data, a The operation would im- Credit Agricole may provide for crude around the level considered near maximum prove the “fi nancial fl exibility” a large part of the fi nancing for Tworld than anticipated, to most in the oil industry. of Credit Agricole, accelerating the regional lenders to buy back which will help prevent further Industry monitor Genscape its capital buildup and allow- holdings, meaning it would get sharp falls in the price but also showed Amsterdam-Rotter- ing it to pay an exclusive cash a smaller amount of cash right weigh against signifi cant price dam-Antwerp crude tanks, with dividend as early as this year, away than the €17bn, said the rises, analysts and industry some 53mn barrels of oil, nearly the Montrouge, France-based people. The fi nal valuation of watchers say. 60% full. bank said in a statement yes- the transaction could change New storage tanks built in re- But the discount between terday. The price of the stakes and depends on the various eq- cent years, mostly in the US and current Brent prices and those in the regional banks may vary uity and debt components of Asia, leave hundreds of millions of six months forward stood at just and the plan is subject to dis- the deal, they said. The French barrels of space to fi ll, confound- $3.60 per barrel, around half of cussions with supervisory au- bank is discussing the options ing expectations that excess pro- the contango from January last thorities, it said. with fi nancial advisers, they duction could overfl ow tanks and year. The gap between prompt Credit Agricole is seeking to said. drive prices further down. WTI prices and six months for- reorganise the fi nancial ties with Brassac, who took over in The space also acts as a dis- ward was at $4.55 per barrel, the regional banks that own a May, is set to announce the incentive for countries to limit compared with more than $8 majority stake in the lender and bank’s strategic plans through production, despite a record 3bn reached in February last year. which it owns shares in, to free 2020 at an investor day on barrels of oil and products al- “There is storage, but not up capital in the face of tough- March 9. Almost a third of ready in storage in the developed necessarily where people want er regulation. Chief executive Credit Agricole’s €2.63bn net world and Iran’s plans to boost it,” said Alan Gelder, VP of refi n- Philippe Brassac is focusing on income in the fi rst nine months exports after sanctions were ing, chemicals and oil markets France and revamping the in- of last year came from its stakes lifted on Saturday. with Wood Mackenzie. vestment bank after retreating in the regional banks. But as the space is concentrat- There are currently 18 su- from a global expansion to help In August, the company in- ed in national strategic storage pertankers, and one behemoth bolster earnings at the country’s dicated that it had failed to win and tanks that are further from ULCC, fl oating off Malaysia as third-largest bank. regulators’ backing for an over- trading hubs, it will become in- fi ed 40mn barrels-worth of new sarily publicised...there’s quite ing storage, excess production storage. Roughly half the super- “Banks with peripheral ex- haul of its structure, sending creasingly diffi cult for traders to commercial storage in China a bit of space in some of those,” can be maintained on a longer tankers still have space to store posure are under pressure to the stock down 10%. The bank make money by buying oil and alone set to become operational Andrew Wilson, who watches time horizon before surpluses oil, according to live shipping improve their capital level,” said has been looking for a way to placing it in storage. over the coming year. Most is in stocks and prices for the IEA, saturate markets and breach data on Eikon, though more than Arnaud Scarpaci, who helps reorganize fi nancial links with Oil prices have lost nearly Shandong province, a hub for so- told Reuters. logistical and storage con- half of them were for fuel oil. manage €270mn ($293mn) at the regional lenders, which 75% of their value in the past called teapot refi neries, many of The space has confounded straints,” Goldman Sachs said in But nearly all of these were Montaigne Capital in Paris. both own a stake in Credit Ag- 18 months due to increased US which will be allowed to import expectations storage capacity the note, adding that if the limit booked at least a year ago, amid “The regional banks represent ricole and are owned by the shale oil output and Opec’s re- oil for the fi rst time this year. limits could be reached, which is breached it could “create an deeper contango and cheaper Credit Agricole’s war-chest. lender, in an attempt to free up fusal to cede market share. There is also at least 100mn the IEA initially warned of more outright collapse in commodity freight costs, and Iran’s return Tapping money where available capital for shareholders. To- Benchmark Brent crude barrels of space left in US tanks, than a year ago. Oil and product prices, which is the basis of our to the market is expected to keep is the simplest way to act.” gether, the regional banks own dipped below $28 a barrel on alongside existing capacity in stocks in the developed world are $20/bbl oil scenario.” vessel rates high this year. Credit Agricole jumped as more than half of Credit Agri- Monday, its lowest level since Asia and Europe, the IEA said. at a record, and global stocks are Instead, the bank foresaw a Traders said there is little much as 6.5%, the biggest in- cole’s shares. 2003, but recovered above $29 The space still left in Europe also likely at a record, according price of $40 per barrel for fi rst chance any new fl oating storage traday gain in almost two years, The lender said last month yesterday with traders saying tends to be in harder-to-reach to Wilson, though precise global half of 2016 for the benchmark US would surface in the near term, and was up 4.5% at 11:40am in that its minimum common Iran’s return to the market had sites away from the Amsterdam- data is patchy. West Texas Intermediate crude. taking out yet another potential Paris. The shares have dropped equity Tier 1 capital level, a been priced in. Rotterdam-Antwerp (ARA) hub, Goldman Sachs said on Fri- While analysts say storage outlet for oil demand. about 12% over the past year, measure of fi nancial strength, The International Energy facilities further inland or those day that free tank space, as well capacity has kept prices from “At the moment, you do it by giving the bank a market value is 9.5%, applicable from mid- Agency said yesterday some such as salt caverns, which are as strong demand from refi ner- bottoming, it is also prevent- necessity because you have no of €25bn. 2016, and that it plans to main- 230mn barrels of new storage rock-cut caverns in Scandinavia ies, reduced the likelihood of an ing the contango, or the gap be- home for your oil rather than as The deal could be valued at tain “solid cushions” above will be completed over the com- that draw little attention during overspill that would drive the oil tween current and future prices, a trading position,” the trader about €17bn, people familiar offi cial requirements set by the ing year — nearly half of it in normal times. price down to its worst-case es- from deepening to the point that said, adding that “people won’t with the matter said late on European Central Bank while strategic reserve sites in China. “There’s an awful lot of places timate of $20 a barrel. traders pile oil into more diffi - do it willingly” until contango Monday. Under the plan, each targeting a core capital ratio of A senior trading source identi- that are built, but are not neces- “With more outlets includ- cult-to-reach locations, or more deepens and freight costs ease. of the regional lenders would about 11% by year’s end.

CORPORATE RESULTS BofA earnings beat tempered by concern about weak oil prices

Tiff any, founded in 1837, has been spending heavily profit is due to non-recurring earnings. Total assets margins from its oil refining business helped off set on designing and marketing contemporary gold under management of BTG Pactual fell to 266.5bn pressure from the slide in global crude prices. and silver jewellery to appeal to a younger, more reais in the last quarter of 2015 from the third quar- The Mumbai-based firm owned by Mukesh Ambani, style-conscious consumer. ter’s 302.8bn reais, but were still up from 218.3bn India’s wealthiest man, said consolidated net profit Stripping off the impact of the dollar, sales still fell in reais a year earlier. for the three months through December climbed to the holiday season, suggesting that the company’s Rs72.90bn ($1.1bn) from Rs52.56bn a year earlier. eff orts were not bearing fruit. Unilever That marked a rise of 38.70%, slightly above the Tiff any reported a 6% drop in holiday season sales to expectations of 17 analysts surveyed by Bloomberg $961mn. On a constant currency basis, sales fell 3%. Dutch food and cosmetics giant Unilever yesterday who had predicted a 38% rise to Rs70.1bn. The company said it now expects earnings to posted a 5.0% fall in 2015 profits from the previous Reliance said in a statement that its gross refining decline by 10% for the year ending Jan. 31 versus its 12 months, saying it had been a “challenging year” margin, the profit earned from each barrel of crude, previous forecast of a decline of 5-10%. amid the economic slowdown. surged 57.53% to $11.5 in the just concluded quarter The forecast excludes a charge of about 4¢ per Turnover was up 10% to $53.3bn thanks to in- from $7.3 last year. share in the fourth quarter for “staff and occupancy creased volumes and a favourable exchange rate, Ambani added in the statement that Reliance’s reductions,” the company said in a statement. but net profit attributable to shareholders was “portfolio of world-class refining and petrochemical Tiff any, which is scheduled to report fourth-quarter down to $4.91bn, compared with $5.2bn in 2014. assets are paying-off handsomely” and helping the results on March 18, did not give details on the size “We are preparing ourselves for tougher market company enjoy the “benefits of low crude oil and of the job cuts. conditions and high volatility in 2016, as world energy prices”. The company has also been hit as jewellery loses its events in recent weeks have highlighted,” chief Despite the strong refining margins Reliance’s rev- popularity as a holiday gifting item. executive Paul Polman said in a statement. enues came under pressure, slipping nearly 24% to Comparable sales in the Americas fell 8% on a con- He noted that 2015 had been “a challenging year Rs733.41bn ($11.1bn) from Rs963.30bn a year earlier. stant currency basis in the holiday shopping period with slower global economic growth, intensify- Reliance derives most of its earnings from its mas- ending Dec. 31, hit by lower foreign tourist spending ing geopolitical instability, and high currency and sive energy operations and is trying to diversify its in New York, where the company’s flagship store is commodity volatility” for the Rotterdam-based business. It now owns a supermarket chain and a located, and other US markets. group. telecommunications company. Bank of America Corp joined other lenders in ex- The Charlotte, North Carolina-based lender has Consumer demand for the group’s products, which It has already poured billions of dollars into its pressing concern about weak oil prices after the No been slashing billions of dollars in costs in its com- BTG Pactual include such brand names as Knorr soup, Dove telecom venture, known as Reliance Jio Infocomm, 2 US bank by assets reported better-than-expected mercial lending, investment banking and wealth beauty care items, Hellmann’s mayonnaise and to buy wireless spectrum and set up infrastructure. quarterly earnings, helped by a drop in costs and management businesses in eff orts to mitigate slug- Grupo BTG Pactual posted a decline in fourth-quar- Lipton tea, remained “fragile,” the company said in Reliance was due to off er 4G mobile services in revenue rises in most of its businesses. gish revenue growth. ter unaudited net income as provisions, charges a statement. India from the end of 2015, but so far has limited its Bank of America said yesterday its provision “We’ll continue our sharp focus on risk manage- and operating expenses surged in the wake of the operations to the testing stage. No update on Jio’s for credit losses in global banking increased by ment and we’ll continue our cost discipline as arrest of founder Andre Esteves in November. Reliance Industries launch date was provided in yesterday’s statement. $264mn in the quarter ended December 31, mainly we look to continue to improve return on capital Sao Paulo-based BTG Pactual posted net income Meanwhile, Reliance’s supermarket chain added due to higher energy-related charge-off s and metrics of our company,” Moynihan said on the of 1.23bn reais ($304mn), down from 1.51bn India’s Reliance Industries yesterday reported an 186 stores across India to take the total to 3,043, the reserve increases for energy exposure. analysts’ call. reais in the third quarter, it said in a statement almost 39% rise in quarterly net profit as improving company said. The bank has $21.3bn in energy-related loans, BofA’s total revenue rose 4.3% to $19.53bn in the yesterday. representing about 2% of total loans, chief financial fourth quarter, with revenue from consumer bank- Quarterly revenues jumped to 3.52bn reais from off icer Paul Donofrio said on call with reporters. ing, BofA’s largest business, increasing 0.4%. October through December, up from 2.56bn in the “As we continue to assess and react to future Global markets revenue rose 31% to $3.13bn, ac- third quarter and 1.59bn in the last three months of changes in the energy sector we could see lumpi- counting for 16% of total revenue. Revenue from 2014, BTG Pactual said in a filing. ness that could potentially drive provision expense fixed-income trading rose 20%. Operating expenses rose to 1.89bn reais from over $900mn,” he said on a later call with analysts. Total net charge-off s rose 30% to $1.14bn. 1.37bn reais in the third quarter and 673mn reais a BofA said its net income attributable to common year ago. The 38% jump in expenses on a sequen- shareholders rose to 9.8% $3.01bn, or 28¢ per share, Tiff any tial basis was triggered by the slump in the Brazilian in the quarter, helping the bank achieve its highest currency, as BTG Pactual has a significant portion of annual profit in nearly a decade. Upscale jeweller Tiff any & Co reported a sharp its cost structure linked to the dollar. On an adjusted basis, the bank earned 29¢ per decline in holiday season sales and cut jobs as it Following the departure of Esteves, who was the share, topping analysts’ average estimate of 26¢, struggles with weak spending by tourists in its chief executive and chairman until his arrest on according to Thomson Reuters I/B/E/S. showpiece stores in the US. Nov. 25 triggered his departure, BTG Pactual has Non-interest expenses fell 2.3% to $13.87bn, mainly The company’s traditional reluctance to off er pro- enhanced transparency. due to a 28% drop in costs, excluding litigation, in motions has been turning away thrifty customers Esteves was jailed for his alleged involvement in a the bank’s legacy asset and servicing unit, which and a stronger dollar has made purchases more massive corruption scheme engulfing Brazil’s gov- houses many of the bad loans inherited when it expensive for tourists. ernment and the state-run oil company Pertroleo took over Countrywide Financial Corp in 2008. “We believe overall sales results were negatively Brasileiro. BofA, whose shares were up 0.6% in early trading, aff ected by restrained consumer spending tied The investment banking firm has begun aggres- has been hit by high legal costs since the financial to challenging and uncertain global economic sively selling assets and dismantling trading opera- crisis, undermining many of the cost cutting initia- conditions,” chief executive Frederic Cumenal said tions in order to bolster liquidity. It is still unclear tives initiated by chief executive Brian Moynihan. yesterday. from the earnings how much of the company’s Wednesday, January 20, 2016 GULF TIMES BUSINESS

Mideast requires $555bn in total energy infrastructure investment by 2030: Report

The Middle East requires $555bn in total demand, the World Future Energy Summit sector at Abu Dhabi Sustainability Week, showcase innovations such as Future factor in supporting Abu Dhabi to meet its by 20% and air conditioners by 35% to energy infrastructure investment by 2030 (WFES) announced yesterday with the hosted by Masdar. Build, an online platform to help architects, current and future energy demands. Over 2020, according to the IRENA report. to meet the region’s rapid energy growth, launch of the Energy Eff iciency Expo at “Sustainable development requires engineers and contractors source environ- the past five years, through the Estidama In the wider Middle East and North a new report has said. WFES 2017. eff icient management of energy demand mentally responsible building materials programme of sustainability, has rated the Africa region, countries that reduce their According to a recent report by NBAD, Energy eff iciency in buildings, trans- as well as supply, and the Middle East and products that have been independ- Emirate’s real estate developments based electricity load by 5% can save an average University of Cambridge, and PWC, the portation, and manufacturing will play a and North Africa is no exception,” said Dr ently assessed. The Energy Eff iciency Expo on a range of factors, including energy of $190mn a year, according to the Clean energy demand was set to double by 2030 key role — by replacing fossil fuels with Ahmad Belhoul, chief executive off icer of will encourage further collaboration and eff iciency, using the mandatory Estidama Energy Business Council. in the Middle East and North Africa region. renewable energy, improving electric- Masdar, Abu Dhabi’s renewable energy entrepreneurship at the intersection of Pearl Rating System. As strategic partners “Energy eff iciency is the low hanging Worldwide, energy eff iciency invest- ity access and reliability, and reducing company. water and energy, promoting the business of this event, we look forward to sharing fruit; it is one of the least expensive but ment is set to reach $385bn a year, or pollution, which in turn support economic “At the WFES Energy Eff iciency Expo case for sustainability,” Belhoul added. our knowledge and experience of best most eff ective ways to solve the Middle $5.8tn in total to 2030, according to a growth, while benefiting society and the 2017, we will share our public-private Abdulla al-Shamsi, executive director practice sustainability processes, tools and East and North Africa’s skyrocketing en- recent report by the International Renew- environment. partnerships in energy conservation, (Strategic Aff airs Sector) Abu Dhabi Urban techniques with delegates at the WFES ergy demand. The WFES Energy Eff iciency able Energy Authority (IRENA). With build- Anticipating the growing demand for including the role of Masdar City, Abu Planning Council (UPC), said, “Sustain- Energy Eff iciency Expo in 2017. Expo 2017 will support smart govern- ings a major energy consumer, investment energy eff iciency solutions in the region, Dhabi’s ‘green-print’ for sustainable urban ability is one of the guiding principles of In the Middle East, the UAE and Saudi ment regulation that can help change in energy-eff icient buildings alone is set to the WFES Energy Eff iciency Expo 2017 is design which consumes 40% less water Abu Dhabi Vision 2030 and as such lies Arabia are leaders in energy eff iciency, with behaviours of organisations and people reach $125bn by 2020. set to be a new annual, co-located exhibi- and energy than city developments of a at the heart of the UPC’s objectives for the UAE recently revising fuel subsidies in to adopt energy eff icient technology,” said Energy eff iciency will be key for global tion, conference, and business matchmak- comparable size. the development of the Emirate. We see line with global indices, and Saudi aiming to Dr Nasser Saidi, chairman, Clean Energy countries to meet skyrocketing energy ing programme in the energy eff iciency “It will also be an opportunity to energy eff iciency in buildings as a vital improve energy eff iciency for new vehicles Business Council.

Qatar projects Qatar has ‘signifi cant’ to compete for strength in defending ‘prestigious’ quality awards

usiness intelligence fi rm will continue to grow, and MEED has launched the thousands of teams will play riyal-dollar peg: S&P B2016 edition of the MEED their part to ensure major Quality Awards for Projects, schemes are completed to the By Santhosh V Perumal in association with Mashreq, highest quality. To ensure such Business Reporter which it said is the region’s stringent quality standards “only awards programme” that are maintained, the MEED recognises project excellence Quality Awards for Projects, atar has “signifi cant” and benchmarks best practice in association with Mashreq strength in defending in project delivery. has launched its latest search Qits fi xed exchange par- Two of Qatar’s fl agship for the Gulf’s highest quality ity with the dollar due to avail- projects have won the highlight projects. ability of reserves to cover the coveted MEED Quality Project Qatar’s FIFA World Cup monetary base and current ac- of the Year, the only country 2022 preparations are entering count payments over the next to have achieved the feat in the a new phase, with some con- four years, a global credit rat- six-year history of the awards tracts already awarded for the ing agency Standard and Poor’s programme. construction of the planned (S&P) has said. The Pearl GTL Project re- facilities, such as the Al-Bayt “This is largely due to our ceived the distinction in 2012, stadium in Al Khor and the implicit assumption that their with Qatar Foundation’s Qa- upgrade of the existing Khalifa liquid assets, in addition to their tar Faculty of Islamic Studies Stadium which will increase offi cial foreign currency re- Project replicating the achieve- its seating capacity to 60,000. serves, would be brought to bear ment last year. Another stadium is up for bid to defend the currency pegs,” “The GCC is home to some in Education City. Lusail Sta- S&P said in its report. of the world’s most impres- dium, the largest of the stadi- Qatar, expected to show a sive and unique buildings, and ums that will be built, is in its current account defi cit of 1.2% MEED’s awards programme is early stages. of GDP (gross domestic prod- designed to recognise the high- Meanwhile, the major con- uct) this year but a surplus of est quality developments lead- tracts for Doha’s metro network 0.8% of GDP in 2017, has close ing the projects market in Qatar, and the expressway programme to around 30 months coverage and the rest of the region. It has are also progressing. Another of current account payments in distinguished itself as the pre- huge project that will be ten- 2016-19 and about 125% cov- mier recognition programme dered soon is the regional rail erage of the monetary base, it in the projects market because network that will link Doha and said. it evaluates the outcome of the other centres in Qatar to the Kuwait has the highest re- construction process, rather GCC rail network at the Saudi serve adequacy among the Gulf than the process itself. MEED is border. Cooperation Council (GCC) at proud to have created an inde- Project client Qatar Rail more than 70 months coverage pendent judging process, with prequalifi ed 15 consortiums in of current account payments the help of the Societies of En- late July to bid for the design- and about 375% coverage of the “We expect the GCC countries to maintain the exchange rate peg over the medium term, mainly because we assess GCC states as having gineers across the GCC,” said and-build contract. The tender monetary base. suff icient funds available to defend their currencies,” says Cullinan. Richard Thompson, editorial is expected to be released be- Saudi Arabia has about 25 director, MEED. tween the last quarter of 2015 months coverage of current ac- coverage of current account The rating agency said overall dium term, mainly because we to become more convincing.” The construction sector and the fi rst quarter of 2016. count payments and about 150% payments in 2016-2019 (a more the GCC countries are expected assess GCC states as having suf- S&P said the average rating for remains one of the brightest This year, the MEED Qual- coverage of the monetary base. conservative measure than im- to maintain their fi xed exchange fi cient funds available to defend the hydrocarbon-endowed sov- spots for the Gulf states, where ity Awards for Projects, in as- Oman has more than five ports) and with coverage of 20% parity with the US dollar over their currencies,” S&P sovereign ereigns of Abu Dhabi, Bahrain, $2.65bn-worth of projects are sociation with Mashreq, has months coverage of current of the monetary base over the the medium term. analyst Trevor Cullinan, said in a Iraq, Kuwait, Oman, Qatar and underway or in the pipeline. included new categories allow- account payments and about same period. The rating agency’s view report published yesterday. Saudi Arabia is currently close Although lower oil prices may ing a wider range of projects to 60% coverage of the monetary Qatar, expected to show a comes amidst increased specu- Finding that the GCC pegs to ‘A’, having been at ‘A+’ prior continue to be a challenge, on- be recognised as the region’s base and the UAE has about 15 real growth of 4.5% this year, is lation in the market about the are to a large degree consistent to the downgrade of Saudi Ara- going projects will have enough highest quality projects. In months coverage of current slated to see a net general sover- GCC countries depegging their with the reliance of their econo- bia and inclusion of Iraq in the impact to stimulate economic broadening the scope of the account payments and about eign debt of 87.4% of GDP (gross currencies from the dollar. mies, to varying degrees, on the average. growth and help alleviate the recognition programme, the 175% coverage of the monetary domestic product). However, “In our view, although the risk US dollar-based oil revenues; The rating agency said the concerns of the industry by re- region’s premier quality awards base. net general government debt- of such an event coming to pass S&P said “over the longer term, overall sovereign creditwor- plenishing diminishing order for projects hope to refl ect the Bahrain has lowest reserve to-GDP ratio is likely to fall to has increased, we expect the should GCC economies contin- thiness in the Mena region has books. diversity of schemes that have adequacy than its peers, which 79.4% with same real economic GCC countries to maintain the ue to diversify, the case for more “deteriorated” since it last pub- This could only mean that been completed throughout the S&P estimates at three months growth. exchange rate peg over the me- exchange rate fl exibility is likely lished six months ago. the list of completed schemes Gulf. QSE gains 470 points on local retail investors ’ buying support

By Santhosh V Perumal ecom sectors together accounted Widam Food; even as Woqod, Qa- than doubled to QR55.86mn on Business Reporter for about 85% of the total trading tar National Cement and Qatar 79% jump in transactions to 1,072. Mideast bourses rebound from near multi-year lows volume. General Insurance and Reinsur- The banks and fi nancial services Market capitalisation soared ance bucked the trend. sector reported 50% surge in trade Reuters drop in fourth-quarter net profit to 939mn he Qatar Stock Exchange 4.5% to QR476.18bn with mid, Local retail investors’ net buying volume to 3.13mn stocks, 26% in Dubai riyals. Petrochemical stocks firmed as Brent oil yesterday witnessed strong large, small and micro cap equities increased to QR26.89mn against value to QR147.51mn and 19% in pulled away from its 12-year trough. Advanced Trebound as its key index gaining 5.59%, 4.86%, 2.93% and QR23.27mn the previous day. deals to 2,220. Petrochemical was up 6.7%. vaulted 470 points to inch near the 2.62% respectively. Non-Qatari individual inves- The telecom sector’s trade vol- Major Middle East bourses climbed more In Cairo, the main index traded up 2.6% to 6,097 9,000 points, and capitalisation The Total Return Index shot up tors’ net buying also soared to ume soared 38% to 2.08mn shares than 2% yesterday after global oil and equity points, trimming this year’s losses to 13.0%. With gained as much as QR21bn; main- 5.51% to 13,968.23points, All Share QR9.33mn compared to QR4.51mn and value by 28% to QR28.79mn; markets stabilised, encouraging investors to global headwinds abating for now, non-Egyptian ly lifted by real estate, consumer Index by 5.08% to 2,384.39 points on January 18. while transactions fell 2% to 912. buy stocks with beaten-down valuations. Arab investors returned to the markets and were goods and transport stocks. and Al Rayan Islamic Index by Domestic institutions turned The insurance sector saw 25% The Saudi index, which had tumbled 20% net buyers, bourse data showed. Increased buying support from 6.01% to 3,215.85 points. net buyers to the extent of increase in trade volume to 0.1mn since the end of last year, jumped 4.0% to Amer Group was the top gainer, surging 11.4% local and non-Qatari retail inves- Real estate stocks appreciated QR0.73mn against net sellers of equities, 25% in value to QR6.55mn 5,746 points. One of the top performers was to 0.39 Egyptian pound after the company’s tors led the 20-stock Qatar Index 8.15%, consumer goods (5.94%), QR2.18mn on Monday. and 44% in deals to 155. Southern Province Cement, a mid-cap materials board decided to buy back 125mn shares at surge 5.51% to 8,986.5 points, re- transport (5.6%), telecom (5.48%), However, non-Qatari institu- There was 5% rise in the real company, which rocketed 9.8% after it reported a price of 0.43 pound, according to a bourse fl ecting the rally in the global mar- banks and fi nancial services tions’ net profi t booking strength- estate sector’s trade volume to a 21.6% increase in fourth-quarter net profit. statement. kets, following a marginal increase (4.53%), industrials (4.43%) and ened to QR12.71mn compared to 3.01mn stocks and 9% in value to Other mid-caps in various sectors also carried Orascom Telecom jumped 5.5%, its second day in oil prices. insurance (1.42%). QR4.57mn the previous day. QR51.55mn but on 1% fall in trans- the bourse higher. Bupa Arabia was up 8.7% of solid gains. The conglomerate, which has Domestic institutions were also About 88% of the stocks were The GCC (Gulf Cooperation actions to 1,062. after the insurer reported a 69% jump in holdings across various industries, is expanding seen exerting marginal bullish in the red with major gainers be- Council) institutions’ net selling However, the transport sec- quarterly profit. into financial services. momentum in the market, where ing Barwa, Mazaya Qatar, United also rose to QR26.26mn against tor’s trade volume tanked 25% to Most Saudi banks have now reported fourth- Dubai’s stock index rose 3.3% as builder trading turnover and volumes Development Company, Ezdan, QR24.59mn on January 18. 0.52mn shares, value by 16% to quarter earnings, coming in mostly in line with Arabtec and Amlak Finance each rose more were on the increase. Nakilat, Ooredoo, Vodafone Qa- The GCC individuals’ net buy- QR11.93mn and deals by 26% to expectations. than 10.0%. However, foreign and Gulf in- tar, Qatar Islamic Bank, Com- ing weakened to QR2.02mn com- 185. Alinma Bank jumped 5.6% after reporting a Abu Dhabi’s bourse climbed 2.5% as investors stitutions were increasingly profi t mercial Bank, Doha Bank, Masraf pared to QR3.56mn on Monday. The market witnessed 15% de- 16.3% hike in fourth-quarter net profit to 386mn bought blue-chip stocks. First Gulf Bank and takers in the bourse, which is down Al Rayan, al khaliji, Islamic Hold- Total trade volume rose 40% to cline in the industrials sector’s riyals ($103mn); analysts polled by Reuters had Abu Dhabi Commercial Bank rose 5.3 and 2.4% 13.83% year-to-date. ing Group, Aamal Company, Gulf 14.01mn shares, value by 20% to trade volume to 1.5mn equities, forecast on average 367.8mn riyals. respectively, in their second day of gains. The index that tracks Shariah- International Services, Mesaieed QR367.34mn and deals by 12% to 14% in value to QR65.15mn and 4% Riyad Bank traded up 1.4% after it posted a Elsewhere in the Gulf, the Oman index was flat principled stocks was seen gain- Petrochemical Holding, Industries 6,881. in transactions to 1,275. 19.7% fall in fourth-quarter profit, which was at 4,982 points, the Kuwait index edged up ing faster than the other indices in Qatar, Qatari Investors Group, Qa- The consumer goods sector’s In the debt market, there was no in line with expectations. Saudi British Bank 0.6% to 5,084 points and the Bahrain index fell the market, where the consumer tar Electricity and Water, Salam trade volume more than tripled to trading of treasury bills and gov- rose 0.2%; the aff iliate of HSBC posted a 3.1% 1.7% to 1,176 points. goods, banking, realty and tel- International Investment and 3.68mn equities and value more ernment bonds.