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Wednesday, January 30, 2019 Jumada I 24, 1440 AH WINNING STREAK : Page 16 GULF TIMES Strong buying interests lift QSE BUSINESS to 10,722.49 points

Robust hydrocarbons, manufacturing sectors Qatar committed to help boost Qatar industrial producers’ earnings in December

By Santhosh V Perumal PPP plans in support Business Reporter Robust hydrocarbons and manufacturing sectors helped Qatar’s industrial producers’ earnings register an about 10% growth year-on-year in December 2018, according to off icial estimates. Qatar’s producer price index (PPI), a measure of the average selling prices received by the domestic for the private sector, producers for their output, however, reported a 5.1% month-on-month fall during the review period, said the figures released by the Planning and Statistics Authority (PSA). The PSA had released a new PPI series in late 2015. With a base of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dates from 2006, when the Qatari economy was much smaller says Chamber offi cial than today and the range of products made domestically much narrower. atar is committed to implementing the creasing investments in the industry sector. The PPI for mining, which carries the maximum weight country’s public-private partnership Al-Kuwari said the private sector would con- of 72.7%, saw a 15.9% surge year-on-year in December Q(PPP) schemes, according to an offi cial tinue its role in projects related to the 2022 FIFA 2018 on the back of a 16% increase in the price of crude of Qatar Chamber, who underscored the private World Cup, and assured that “the pace of these petroleum and natural gas and 3.5% in stone, sand and sector’s “vital role” in accomplishing the goals projects would continue beyond the tourna- clay. of the Qatar National Vision 2030. ment” as more than 150 major projects “would The mining PPI, however, tanked 4.2% on a monthly Speaking recently at the Centre for Entrepre- be set for delivery.” basis as crude petroleum and natural gas prices shrank neurship (CFE) at Qatar University’s College of He said the recently-issued law that regulates 4.4%, even as that of stone, sand and clay was up a Business and Economics, Qatar Chamber fi rst investment of non-Qatari capital in economic marginal 0.1%. vice chairman Mohamed bin Towar al-Kuwari activity “would not only attract more invest- The manufacturing sector, which has a weight of 26.8% said, “Economic diversifi cation requires the ments but also help in adapting modern tech- in the PPI basket, witnessed a 1.3% yearly decline focus on developing industry as a strategic nology.” December last year on a 3.2% fall in the price of basic choice.” According to al-Kuwari, the private sector metals, 2.9% in refined petroleum products, 2.8% in “The industry sector constitutes a competi- played a signifi cant role in achieving the self- cement and other non-metallic mineral products, 1.8% tive advantage to Qatar’s economy, especially suffi ciency in the country’s dairy industry and in beverages, 1.4% in rubber and plastics products and energy-related industries,” said al-Kuwari in other products “with higher percentage.” 0.3% in grain mill and other products. a presentation during a seminar titled ‘Impor- Also, al-Kuwari highlighted the mechanisms Nevertheless, there was a 12.8% surge in the price of tance of Maximising the Private Sector’s Role for increasing the private sector’s contribu- other chemical products and fibres, 10.3% in dairy in Achieving Qatar’s Sustainable Economic De- tion to the country’s GDP, including giving lo- products, 10.2% in paper and paper products, 5.5% in velopment’. cal products special priority in all government juices and 5.4% in basic chemicals. “In this context, Qatar Chamber is commit- bodies, increasing Qatari companies’ contribu- The manufacturing sector PPI had seen a monthly 7.2% ted to co-ordinating with all bodies concerned tion in the mega projects being implemented in contraction in December 2018 as the price of refinery to help create an investment climate appropri- the country, and streamlining fi nance proce- petroleum products fell 9.5%, basic chemicals 3.5%, ate for these industries. This climate will be dures. basic metals 2.3%, rubber and plastics products 1.1%, made through the establishment of industrial Al-Kuwari noted that Qatar Chamber hosted beverages 0.6% and grain mill and other products 0.3%; zones, providing necessary infrastructure, and 100 foreign trade delegations last year to help while there was a 0.5% jump in the price of cement and adopting legislatives that stimulate investor to strengthen cooperation relations between the other metallic products and 0.3% in beverages. do business in this sector,” al-Kuwari contin- Qatari private sector and its international coun- The utilities group, which has a mere 0.5% bearing on ued. terparts. the PPI basket, saw its index expand 2.5% on yearly basis He also lauded the “unwavering support” ex- Qatar Chamber also organised business vis- in December 2018 as water and electricity prices had tended by His Highness the Amir Sheikh Tamim its for Qatari companies to a number of friendly risen 2.5% each. bin Hamad al-Thani to the private sector and countries. These events led to the signing of The index had seen a 6.6% expansion month-on-month for his directives that aim to provide all incen- many alliances and partnerships and establish- in December last year as there was a 10.6% growth in the tives to the private sector and local industries. ing joint projects inside and outside the coun- Al-Kuwari delivering a presentation in a seminar titled “Importance of Maximising price of electricity and 1.7% in water. He said these measures had contributed to in- try, he added. Private Sector’s Role in Achieving Qatar’s Sustainable Economic Development.” US slaps ‘oil ban’ on Venezuela in boldest move yet

Maduro’s regime of “human rights any details. National Security Ad- diction are blocked, according to a declared illegitimate last week. But Investors say banks have halted Bloomberg Washington violations and abuses in response to viser John Bolton told reporters at Treasury statement, and US citizens Senator Bob Menendez of New Jer- PDVSA trading aft er US sanctions anti-Maduro protests, arbitrary ar- the White House that Trump’s ac- and companies are generally prohib- sey, the senior Democrat on the For- rest and detention of anti-Maduro tion would block $7bn in Venezue- ited from doing business with the eign Relations Committee, said the Major banks have stopped trading the bonds he Trump administration protesters, curtailment of press lan assets and reduce the country’s Venezuelan fi rm. The move is con- Trump administration should brief of Venezuela’s state-owned oil firm PDVSA dealt its toughest blow yet to freedom, harassment of political op- exports by $11bn over the next year, sistent with the Trump administra- Congress on its moves against Ma- for clients after the US imposed sweeping Tthe Venezuelan leader Nicolas ponents, and continued attempts to though Maduro is sure to attempt to tion’s eff orts to starve Maduro of oil duro. He praised US eff orts to “sup- sanctions on the firm, according to fund Maduro, issuing new sanctions on undermine” Guaido’s government- sell PDVSA’s crude elsewhere. Bol- money, while still blunting the po- port the restoration of democracy in managers, Reuters reported. the nation’s state-owned oil com- in-waiting. ton urged Venezuela’s military to tential impact on US refi ners and US Venezuela” but said “there are more The move by Washington are set to ratchet pany PDVSA that eff ectively block “The US is holding accountable accept a peaceful transfer of power motorists, said Jim Lucier, managing questions than answers about the up the pressure on Venezuela’s socialist his regime from exporting crude to those responsible for Venezuela’s to Guaido. director of Washington, DC-based administration’s strategy.” President Nicolas Maduro and will eff ectively the US. tragic decline,” Treasury Secretary Mnuchin said that Citgo would be Capital Alpha Partners. The sanctions would be the lat- prevent investors who operate in the US from The move ratchets up pressure on Steven Mnuchin said. able to continue to operate but won’t The administration is using “a est move in Trump’s campaign oust buying PDVSA bonds. Maduro to resign and cede power US offi cials had long been hesitant be allowed to remit money to the Ma- scalpel, rather than a meat axe,” he the leftist regime of Maduro, who “Most dealers are restricted from trading to National Assembly leader Juan to apply sanctions on Venezuelan duro regime. Its proceeds must in- said in an e-mail. succeeded the late president Hugo PDVSA now,” said Pala Asset Management’s Guaido by cutting off the regime from oil because they did not want to ex- stead be held in blocked US accounts. US Senator Marco Rubio praised Chavez in 2013. David Nietlispach, adding that bond trading the market where it gets the bulk of acerbate the humanitarian crisis in The Treasury secretary added that in the sanctions in a statement released PDVSA has been moving away systems were now showing virtually no its cash. The US and other countries the country. But with Maduro and the “short term” he expects “mod- before they were announced. from dollar-denominated transac- pricing for PDVSA debt, compared to at least recognised Guaido last week as Ven- Guaido, a 35-year-old engineer- est” impact on US refi neries. He “The Maduro crime family has tions in the past couple of years, 20 being available normally. ezuela’s rightful president, and he turned-lawmaker, locked in a strug- noted the sanctions wouldn’t aff ect used PDVSA to buy and keep the since the Trump administration an- A spokeswoman for Barclays, one of the said on Monday he would take con- gle for support in the streets and the oil already purchased that is being support of many military leaders,” nounced fi nancial sanctions in Au- big European banks said to have halted trol of Venezuelan accounts abroad military, they decided it’s now worth shipped, and said he didn’t expect US Rubio said. “The oil belongs to the gust 2017. The company sells oil to its PDVSA dealing, would not comment and appoint new boards to PDVSA the risk. Guaido so far hasn’t been gas prices to rise. Venezuelan people, and therefore the clients in the US, Europe and Asia on messages from its fixed income desk and its Houston-based subsidiary able to sway the armed forces to his Maduro decried the asset freeze money PDVSA earns from its export and requires payment in euros, and informing clients of its decision. Citgo Petroleum. side but he’s tapped deep public dis- as a “robbery” on state television on will now be returned to the people buys gasoline and diesel for payment Peter Kisler, an emerging market portfolio President Donald Trump assailed content with an economy beset by Monday evening and instructed PD- through their legitimate constitu- in euros as well. PDVSA also buys fu- manager at North Asset Manager, said most Maduro in a letter to Congress ex- hyperinfl ation and vast shortages of VSA’s president Manuel Quevedo to tional government.” els via Citgo, owner of three refi ner- of the banks had stopped market-making plaining an executive order he issued food and medicine. take legal actions in US and interna- The Florida Republican represents ies in the US. Most of those are barter to give compliance departments time to go sanctioning PDVSA and Venezuela’s In an interview with CNN en Es- tional courts against the sanctions. a large Venezuelan expatriate com- deals, which means PDVSA gets the through the details of the US sanctions. central bank. The action would bol- panol, Guaido said that he had spo- As of Monday, all PDVSA assets munity and is a vocal opponent of fuels and pays the suppliers in Ven- ster Guaido, he said, while accusing ken to Trump, but did not provide and property subject to US juris- the Maduro regime, which the US ezuelan crude. Page 3 Wednesday, January 30, 2019 2 ISLAMIC FINANCE GULF TIMES

EDUCATION/FAQ on Murabaha

Is it permissible for a client to reject necessary to decrease the price A Murabaha transaction is one in upon the currency rate prevailing In case of goods imported under a What do scholars recommend to goods bought by a bank under of the contract by the amount of which the seller buys goods requested in the future. Due to this and other Murabaha, the bank should use the ensure that a Musharakah remains Murabaha agreement due to a insurance compensation received? by the buyer and sells them to the ambiguities, such an arrangement conversion rate prevailing on the day a going concern? defect in the goods? Will it suff ice to hand over the buyer at a cost plus an agreed upon is not permissible in the Shariah and of purchase from the exporter. Since every going concern relies on The client may reject such goods, as it compensation amount to the client mark-up. It is necessary that the goods should be avoided. some level of stability and continuity, is the right of the buyer to reject goods without decreasing the price? be dispatched or shipped in the name A bank executing a purchase scholars recommend that the due to a defect in them. It is obligatory to decrease the price of of the bank, as this is an integral of the Is it permissible for a bank to under a Murabaha contract opens Musharakah contract clearly state at a Murabaha contract by the amount contract and the only documentary import goods under Murabaha documentary credit in a foreign the outset:1) that individual parties In a Murabaha transaction, is it of any insurance compensation evidence that proves that the seller agreement based on a quotation bank and receives a commission. may not compel the entire partnership permissible for the buyer under the received in lieu of damage to the (bank) actually bought the goods itself. issued under the name of the Should such a commission be given to terminate the business unless Murabaha (client) and the owner of goods. Changes in price that take place client? to the client or is the bank entitled there is a majority favouring such a the goods to agree that the buyer subsequent to the Murabaha contract Is it permissible to stipulate that It is permissible for the bank to import to keep it? move; and 2) whether the Musharakah will return the goods or have them should be immediately notified to the Murabaha instalments be payable goods under a Murabaha agreement The bank should, first of all, notify the terminates after a fixed period of replaced in case they are not sold? client. It is not suff icient to hand over in foreign currency at the rate based on a quotation issued under client of such a commission. If it is time or whether the Musharakah It is permissible for the buyer and the compensation amount to the client prevailing on the due date, in the name of the client. However, it agreed with the client that the bank is terminates after the fulfilment of a owner of goods to enter into such an without decreasing the price. consideration of the fact that the is preferable that the quotation be entitled to receive the commission, the specific objective, like the sale of an agreement, as it is independent from bank has to pay for such goods in addressed to the bank. amount of commission is deducted inventory of goods or the construction the Murabaha transaction. Such a A bank orders goods from abroad instalments in foreign currency? from the principal amount per the of a building. contract has no relation to the seller in pursuance of a Murabaha It is a condition for the validity of a In case of goods imported by a bank provisions of the Murabaha contract. under a Murabaha. transaction. The exporter sends contract that the contract price be under a Murabaha agreement, If the receipt of the commission is the goods in the name of the bank’s known to both parties. In such a case, which currency conversion rate not declared by the bank, then the In the event of damage to goods client (promising buyer). Is this both the seller and buyer do not know should be used to determine the commission will be held to be the Source: Ethica Institute of Islamic under a Murabaha contract, is it valid? the contract price, as it is contingent contract price? client’s property. Finance via Bloomberg

Indonesia scouts for Islamic banking software Shariah investments targets for a rapidly growing market $8bn Haj fund

By Arno Maierbrugger Gulf Times Correspondent Bloomberg Bangkok Jakarta

he global market for core Is- Indonesia is seeking new avenues to lamic banking software so- deploy a part of its $8bn Haj funds. But Tlutions for banks – notably, potential suitors need to be Shariah- not including products from fi ntech compliant. startups – is a rapidly growing seg- The government agency managing the ment seen increasing by around 13% Haj fund in the world’s largest Muslim- annually from now until 2021 to majority country has accumulated 111tn around $700mn, according to latest rupiah ($7.9bn) as the waiting list to industry reports. This is pretty much make the holy pilgrimage for applicants in line with expected growth in the stretches to 15 years, according to official Islamic fi nance industry. data. With the cost of subsidising the trip Islamic banking software refers to rising every year, the agency is exploring banking software that functions ac- ways to generate higher returns, accord- cording to Shariah norms for man- ing to Beny Witjaksono, a member of the aging and monitoring banking op- board of Badan Pengelola Keuangan Haji. erations and therefore has to have The agency’s ability to boost returns is distinctive features that convention- limited by a law curbing direct invest- al banking software does not provide. ment to 20% of the corpus, forcing it to Islamic banks, working with Shariah mostly park the money with the banks scholars, in the past have created a and in sukuk. As Indonesia offers limited set of requirements of specifi cations Shariah investment opportunities, the for such software to meet the fi nan- agency is exploring opportunities over- cial needs of their customer base seas, Witjaksono said. while insuring adherence to the prin- “Why do we need direct investments? ciples of Shariah. Because the return rate in Islamic bonds At fi rst, such specialised banking is limited,” Witjaksono said. “We have the software was developed by banks potential to reach 10% direct investment, themselves in co-operation with lo- but it’s unlikely for us to execute all of cal IT vendors, but over time, glo- those in pipeline this year.” bally operating software providers Badan Pengelola’s direct investments in- entered the business and started cre- clude a small stake in PT Bank Muamalat ating scalable Islamic banking solu- Indonesia, an Islamic bank, an agreement tions at a larger range. Employees work at a service counter inside a combined Malayan Banking Bhd (Maybank) and Maybank Islamic Bhd bank branch in Kuala Lumpur (file). It is with state energy firm PT Pertamina on Today, there are a few key pro- expected that the market for Islamic banking software will grow further at a high rate beyond 2021 as Muslims continue to align their savings, investments discounted jet fuel price for Haj flights viders of Islamic banking software and financing needs with Islamic principles, while more and more non-Muslims discover the benefits of participation or ethical banking that Islamic banking and a $270mn investment deal with na- which are Infosys, Tata Consultancy epitomises. tional carrier PT Garuda Indonesia. Services, Path Solutions, Oracle, The agency recently inked a 300bn Temenos, Sopra, SAB Group, Nu- services; Islamic banking contract plications, transaction safety and mVault or Agile specialize in takaful Islamic banking software will grow rupiah deal with a catering service near cleus Software, ICS Financial Sys- documentation; compliance with security, risk mitigation and money platforms). further at a high rate beyond 2021 Makkah and is exploring partnerships tems, Virmati and Finastra, and a the standards of the Accounting and laundering and fraud prevention. The trend to online and mobile as Muslims continue to align their with accommodation providers or hotels number of specialised vendors such Auditing Organization for Islamic banking has also brought challenges savings, investments and fi nancing in Saudi Arabia. as AutoSoft Dynamics, Infopro, BML Financial Institutions, or AAOIFI; for Islamic banks, as well as the fact needs with Islamic principles, while “If we want to increase the allocated Istisharat, International Turnkey as well as non-Shariah issues such that a younger generation of digital more and more non-Muslims dis- portion for the direct investment, we can Systems, Infrasoft Technologies, Sil- as inconsistencies in the Arabic lan- Gulf Times consumers has turned to social me- cover the benefi ts of participation or then reduce the investment portion in Is- verlake, Intertech, Leadsoft, among guage and diff erent languages among dia to interact and seek opinions on ethical banking that Islamic banking lamic bonds,” Witjaksono said in a phone others. Muslim-populated countries, as well Exclusive products, including banking serv- epitomizes. interview. At least 6tn rupiah worth of As the key standards of Islamic as requirements in some countries to ices. This has led software provid- Global software providers are ex- Islamic bonds held by the agency will ma- banking software are that it needs support the lunar Islamic calendar. ers to create Shariah-compliant pected to keep gaining market share ture this year and can be used for direct to adhere to Islamic fi nance princi- Other specifi c solutions for Islam- Other important sectors are Islam- software platforms for specifi c seg- with Islamic banking software prod- investment, he said. ples, providers and vendors there- ic banking software span over retail ic fi nancing and leasing (for which ments and client groups, while they ucts due to the fl exibility, scalabil- The Saudi government has set Indone- fore have to take into account the banking and corporate banking, cap- Path Solutions, an Islamic bank- more intensively cooperate with ity and customer service features of sia’s Haj quota at 221,000 this year, the following issues: Inconsistencies in ital markets, brokerage, investment ing software provider with one of fi ntechs to fi nd innovative solutions their systems, but there will be a far largest contingent of pilgrims to attend allowable products between coun- banking, treasury, sukuk issuance, the largest market shares globally, is for digital-savvy clients such as new more intense cooperation with fi n- Haj. tries and regions; interpretation of fund management, wealth manage- well-known) and takaful (for which, banking apps and services, includ- techs and banking software start- The Haj fund may increase to 121tn rupiah Islamic laws relating to banking; de- ment, as well as customer relation- for example, Temenos has a dedi- ing robo-advisory and computer- ups in the future to reach out to new by the end of the year with its average mand for new product capabilities as ship management, client analytics, cated solution, whereas a number of aided investments. customers through innovative digital return seen at 6.5%. banks defi ne new Shariah-compliant human resources and payment ap- smaller software fi rms such as Com- It is expected that the market for channels and banking solutions. Top sukuk arrangers see sales rising on lower oil prices

Bloomberg weaker 2018,” as oil-depend- driving sukuk issuance in the Kuala Lumpur ent countries issue debt to Middle East and Malaysia. fund any potential budget Here are some more views: defi cits, said Caroline Teoh, „ Teoh at Maybank says he world’s biggest Is- regional head of investment sales from the Middle East lamic bond arrangers banking and advisory at May- will be the wildcard, as off ers Tare expecting sukuk is- bank. “Demand for quality may fl uctuate depending on oil suance to pick up in 2019 as credits and Shariah-compli- prices. governments in oil-producing ant assets will persist,” as ris- „ Mohieddine Kronfol, chief economies seek to fi ll budget ing interest rates reduce the investment offi cer for global shortfalls after the price of liquidity pool and push issu- sukuk at Franklin Templeton crude declined in the past year, ers to seek alternative funding Investments, expects demand despite recent gains. sources. for Islamic notes to increase CIMB Group Holdings Bhd Malaysia, the largest su- due to the possible inclusion and Malayan Banking Bhd, kuk market, faces a widening of sovereign and quasi-sover- who ranked fi rst and third budget defi cit after the price of eign notes from frequent issu- as managers in 2018, expect Brent crude slid 20% last year ers in JPMorgan Chase & Co’s global issuance of notes that amid concerns of a supply glut emerging-market indexes. comply with the religion’s ban and a global economic slow- „ “The big uncertainty is on interest to increase this down, as well as reduced rev- where oil prices will go,” said year, without giving specifi c enue from consumption tax. Mohamed Damak, global head numbers. Brent has jumped back 14% of Islamic fi nance at S&P Glo- Sukuk sales tapered off to this year to $61.50 a barrel, bal Ratings. “Our scenario for $45.7bn last year from a record which may aff ect sales from oil at an average of $55 a barrel $56bn in 2017, data compiled the UAE and Saudi Arabia. would mean more fi nancing by Bloomberg show. Rafe Haneef, chief executive needs from traditional sukuk An oil tanker sits anchored off the Fos-Lavera oil hub near Marseille, France (file). The world’s biggest sukuk arrangers are expecting sukuk “We expect the 2019 offi cer at CIMB’s Islamic arm, markets for budget fi nancing issuance to pick up in 2019 as governments in oil-producing economies seek to fill budget shortfalls after the price of crude declined in the number to improve after a sees infrastructure spending and infrastructure.” past year, despite recent gains. Gulf Times Wednesday, January 30, 2019 3 BUSINESS

Race for Germany’s first LNG import terminal intensifies

Bloomberg One company with plans to build a Wilhelmshaven, in the North Sea. Russia accounted for about 45% Frankfurt facility near Hamburg is finalising “We are in the permitting process for of Germany’s imports in 2017, capacity contracts with several the LNG terminal, discussing with according to McKinsey & Co. companies, Marcel Tijhuis, business local, regional, federal authorities The amount of liquefied natural The competition is heating up for development executive at German and it is going extremely well,” gas being pumped into Europe’s who will build the first terminal LNG Terminal GmbH, said in an said Tijhuis. “It is advanced. We are terminals is set to rise to record for to import liquefied natural gas in interview in Vienna. Deals will be getting good support from regional the third month in January. There are Europe’s biggest market for the fuel. announced in the next four or five and local authorities.” no signs yet that LNG imports into At least three big facilities are weeks, and he expects to get most of The target is to get final investment the region’s traded hubs will ease. underway as utilities take advantage the permits for the project this year. decision in place at the end of 2019, German LNG Terminal GmbH has of a few suppliers vying to enter the Only last week, the German utility or early next year, he said. It would started the financing process region’s expanding LNG market. New Uniper SE and Exxon Mobil Corp be a step forward for Germany to and been approached by banks, facilities to import the fuel will help signed an agreement of long-term finally have its first liquefied natural according to Tijhuis. the US get a foothold in the region booking for a “substantial” share gas import terminal as the country “There are a lot of banks interested so far dominated by Russia and of regasification capacity at a seeks to diversify its sources of in participating in the project,” he At least three big facilities are underway as utilities take advantage of a few Norwegian pipeline gas. planned floating LNG terminal in energy supply. said. suppliers vying to enter Europe’s expanding LNG market Venezuela needs to dilute its oil; that’s going to be harder

Bloomberg will scare banks, shipping com- Singapore panies and insurers from deal- ing with PDVSA. They won’t be able to use the US financial sys- enezuela is home to tem to route payments, forcing some of the thickest them to use other currencies. Vcrude on the planet and In the past, traders and oil it can’t be exported without companies have taken a “worst first being diluted. That will case” scenario when interpret- become a much tougher task ing US sanctions, erring on the following the latest US sanc- side of caution. tions on the Latin American Europe’s naphtha market country. desperately needs a new source A man stands close to the Cardon refinery, which belongs to the Venezuelan state oil company PDVSA in Punto Fijo, Venezuela (file). Despite the ample resources, Venezuela’s Much of the country’s out- of demand. The petroleum importance to global oil markets has been dwindling as years of under investment have reduced production by around half since 2015 to 1.2mn bpd. put has been diluted for years product is trading at about with heavy naphtha from the $8.70 a barrel below Brent US, thinning the crude so crude in Europe, according to that it can be piped to export data from PVM Oil Associates. terminals and onto tankers. That’s the weakest for the time With American exporters now of year since at least 2007. effectively barred from sup- Venezuela imported almost plying the diluent, Venezue- 90,000 bpd of heavy naph- la needs to look elsewhere. tha for crude oil blending last Traders say Europe, including year with US exporters domi- Venezuela sanctions Russia, is one possibility. The nating the trade, according to question is whether sellers tanker tracking data compiled there will be willing to cover by Bloomberg. Those flows the shortfall. reached 113,000 bpd as recent- “For now, we are seeing ly as December. that Venezuela is trying to get Traders say one possibility naphtha supplies from Europe is that Russia, still allied to the to meet the diluent demand,” regime of Nicolas Maduro, will elicit a shrug from said WengInn Chin, a senior oil ship more to the Latin Ameri- market analyst at Facts Global can country, although the Energy in Singapore. “It will be freight costs involved in that difficult for sure and probably would be much higher. There’s more expensive. But this is the also a question of whether and only way that they will be able how Venezuela could pay for to ship the crude over to Asia.” the supplies. The Trump administration Another, more expensive op- global crude market on Monday dealt its tough- tion, would be to use the light est blow yet to the authoritar- oil produced in Algeria as dilu- Bloomberg la’s untapped reserves. While the sanctions “In the very near term we may not see ger impact on heavier grades of crude that ian Venezuelan leader Nicolas ent, something that Venezuela Singapore will force a re-routing of global oil trade much impact to the actual fl ow of Ven- are similar to those from Venezuela, such Maduro, issuing new sanctions has done occasionally in the fl ows, they’re unlikely to have a big impact ezuelan crude oil,” said Andy Lipow, as oil from Mexico, Canada or the Middle on the nation’s state-owned past. on the overall supply and demand picture. president of Lipow Oil Associates LLC in East. oil company PDVSA that ef- Traders are split on how he world’s biggest crude user just Unlike penalties against Iran that Houston. “If more Venezuelan crude oil Venezuela had about 303bn barrels of fectively block his regime from much naphtha from other slapped de facto sanctions against rocked oil markets last year, the sanc- is consumed in Asia, then Asian buyers unextracted reserves at the end of 2017, exporting crude to the US. parts of Europe could be sold to Tthe holder of the largest oil re- tions are only targeted at US refi neries, would purchase less oil from the Middle about 14% more than No 2 Saudi Arabia, The measures will also make Venezuela in practice. Several serves. The market reaction: meh. the biggest buyers of Venezuelan crude. East or other suppliers, freeing up those according to BP Plc data. Despite the am- the country’s imports much European countries have rec- Major crude benchmarks have made Countries like China and India, the sec- volumes to come to the US.” ple resources, Venezuela’s importance to harder. ognised the National Assem- only modest gains since the White House ond- and third-biggest importers, will be If the White House tries to expand the global oil markets has been dwindling as European trading houses bly leader Juan Guaido as the eff ectively blocked the US refi neries from able to swoop in and buy the crude, while embargo to other countries, then the sup- years of under investment have reduced and oil companies are likely to nation’s ruler, something that importing crude from PDVSA, the state- American refi neries can take more from ply disruption could be bullish for prices production by around half since 2015 to struggle to supply Venezuela will only complicate shipments owned oil company that controls Venezue- the Gulf of Mexico or the Middle East. in the near term. It could also have a big- 1.2mn bpd. with naphtha as the sanctions from those nations.

US curbs on PDVSA look like a facto oil embargo

Bloomberg SDN list, most international banks will sanctions on Iraq and Libya. New York/London cease dealings with them,” said Joe US National Security Adviser John Bolton McMonigle, an energy policy analyst for told reporters on Monday that the move Hedgeye Risk Management and a former would reduce Venezuelan export revenue The US government’s decision to impose senior off icial at the US Energy Depart- by $11bn over the next year. It wasn’t sweeping sanctions on Venezuela’s state ment. “So even though today’s announce- clear if he was referring only to the direct oil company appears to be, in essence, a ment applies to PDVSA’s dealings with impact of restrictions on US imports. ban on selling the country’s crude to the US persons, the oil sanctions have much Venezuela’s production has plunged in US – and potentially across the world. broader application.” recent years as its oil industry collapsed The Trump administration sanctioned Pe- Some European oil traders have tempo- in tandem with the country’s broader troleos de Venezuela SA and the country’s rarily stopped dealing with PDVSA while economy. Still, it remains one of the three central bank on Monday, the latest move their lawyers weigh whether it’s possible biggest suppliers of crude to the US, to raise pressure on President Nicolas Ma- for non-US entities to continue buying behind Canada and Saudi Arabia. The duro after the US recognised opposition Venezuelan petroleum without breaking Latin American nation shipped an average leader Juan Guaido as interim president. sanctions, according to people familiar of 584,000 bpd to American refiners in PDVSA becomes a Specially Designated with the mater, who asked not to be the past four weeks, about 8% of total US National, meaning US citizens are gener- named discussing internal matters. crude imports. Any reduction in American ally prohibited from dealing with it. Inclu- “Other Western countries are also likely to purchases could potentially off er China sion on this list is a powerful tool with the join in the sanctions,” said Olivier Jakob, and India, the second- and third-largest potential to curb trade in Venezuelan oil managing director at consultant Petro- buyers, a feast of cheaper crude that’s far beyond US borders. matrix GmbH. “China and India might unwanted elsewhere. The last companies to be placed on the continue to buy crude oil from Venezuela, The US has sanctioned many individuals SDN list were linked to Russian billionaire but in our opinion the country is about to at PDVSA previously, but hitting the entire Oleg Deripaska, including aluminium giant turn into another Libya as it will be harder company eff ectively prevents US refiners United Co Rusal. That move roiled global and harder to operate the oil facilities.” from buying Venezuelan crude, after a information that will help the US refining output and the impact of American sanc- able to continue to operate but won’t be metals markets last year as buyers and The new sanctions means that the US is wind-down period to March 29. system to function eff iciently and eff ec- tions on Iran. allowed to remit money to the Maduro trading houses both in the US and else- simultaneously targeting the economic The second-biggest US importer of Ven- tively” a spokeswoman said Monday. “I don’t know there will be a lot of options regime. Its proceeds must instead be held where stopped dealing with the company. lifeline of two members of the Organiza- ezuelan crude, Valero Energy Corp, said it US refiners who find alternative supplies out there,” said McMonigle. “Obviously, in blocked US accounts, the Treasury said. The Treasury Department lifted sanctions tion of Petroleum Exporting Countries would “re-optimise” its supply to minimise may have to pay higher prices. The kind Canadian crude is one but they have cut There’s also a prohibition on exporting on three firms with ties to Deripaska over – Venezuela and Iran – something the the impact of the sanctions. “Valero will of crude that Venezuela exports, known back on their production.” light oil to Venezuela needed to dilute its the weekend. oil market hasn’t seen for more than a continue to support the administration as heavy-sour, is currently scarce due Citgo Petroleum, a Houston-based refin- heavy crude, further hindering the coun- “When a company is on the Treasury’s decade. At times, the US has also imposed and will provide off icials with relevant to voluntary cuts in Opec and Canadian ing and marketing unit of PDVSA, will be try’s ability to export. Gulf Times 4 Wednesday, January 30, 2019 BUSINESS

Malaysia’s Mahathir seeks China’s understanding on scrapped $20bn rail deal India’s SBI set to own

Reuters tight in terms of fi nance.” The Kuala Lumpur contract may cost the coun- try more than 100bn ringgit ($24.33bn) in total, Mahathir rime Minister Mahathir said, adding that Malaysia would Mohamad yesterday asked still have to pay a cancellation 15% of Jet Airways Pfor China’s understanding fee. over Malaysia’s plan to cancel “The huge compensation is a $20bn rail project that spear- not as huge as the amount of Reuters heads China’s infrastructure debt we will carry for the next 30 New Delhi push in the Southeast Asian na- years.” tion, saying Kuala Lumpur could The government was still not aff ord it. determining how much to pay et Airways creditor State Bank of In- Since winning power last May, CCCC as cancellation fee, Az- dia is likely to own 15% of the airline if Mahathir has repeatedly vowed min said last week. Jthe cash-strapped carrier’s plan for a to renegotiate or cancel what he Government offi cials have debt-for-equity swap is approved, Indian calls “unfair” Chinese projects previously said the project cost TV channels reported yesterday. authorised by predecessor Najib had been infl ated. With debts of about $1.14bn, Jet has Razak, whose near-decade long In Beijing this week, Chinese been hit by fi erce competition from other rule ended in electoral defeat foreign ministry spokesman low-cost carriers, a rupee depreciation amid a massive fi nancial scan- Geng Shuang said he was una- and high oil prices. dal. ware of the project cancellation. It owes money to banks, pilots, vendors The cabinet has decided to Yesterday, Mahathir said an and lessors, some of whom are consider- cancel the contract with China offi cial statement is to be issued ing taking back aircraft, sources have told Communications Construc- in the next few days, with the fi - Reuters. Jet said on Monday it would seek tion Co Ltd (CCCC) for the East nance ministry to provide a de- shareholder approval next month to con- Coast Rail Link project, eco- tailed explanation soon. vert debt into equity, increase its share nomic aff airs minister Mohamed In August Mahathir had said capital and allow lenders to nominate a Azmin Ali said last week. the project would be cancelled director on its board to help resolve its fi - “We seek understanding from “for now”, but the government nancial problems. the parties concerned,” Ma- later said it was in talks with Its lenders, including SBI, could end hathir told reporters yesterday, CCCC on the future of the rail up owning as much as 30% while share- adding that Malaysia was bur- line. holder Etihad Airways could see its stake dened with “heavy debt” and Mahathir has blamed Najib’s rise to more than 40% from 24% if it in- could not aff ord the project, one administration for taking total jects more equity in the Indian carrier, TV of the biggest signed in China’s government debt and liabilities channels reported. signature Belt and Road initia- to more than 1 tn ringgit, in- The airline’s founder and chairman tive. cluding that of scandal-plagued Naresh Goyal is likely to see his stake cut “It is not because we want to state fund 1MDB, which is being to below 20% from 51%. frustrate or throw out the con- investigated for corruption in at Jet, which controls a sixth of India’s tract, it is because we are really least six countries. booming aviation market, did not re- spond to a request comment, while SBI and Etihad also did not reply to e-mails A man speaks on a mobile phone outside the State Bank of India building in Mumbai. Jet Airways creditor SBI is likely to own 15% seeking a response. of the airline if the cash-strapped carrier’s plan for a debt-for-equity swap is approved, Indian TV channels reported yesterday. Indian banks in 2010 undertook a simi- AIIB, concerned about lar debt for equity swap to try and save consortium of Indian banks, lead by SBI, end of March, ICRA said on January 2. leading to fl ight cancellations. Jet was Kingfi sher Airlines, founded by liquor this month, prompting a downgrade by The Economic Times reported yester- scheduled to add 11 737 MAX planes to its baron Vijay Mallya, and ended up owning ratings agency ICRA. day that Jet’s lenders want to repossess fl eet by March 31, but has taken delivery investment slip, nearly a quarter of the airline, before los- The airline has to make large debt re- some planes and have forced the airline of only fi ve and will not add more until a ing out when it was eventually grounded. payments over the next few years, start- to ground fi ve aircraft, including its new resolution plan is agreed, Reuters has re- is willing to scale up Jet defaulted on a debt payment to a ing with about Rs17bn ($242mn) by the fuel-effi cient Boeing 737 MAX planes, ported.

Reuters will erode the potential of Shanghai infrastructure projects such as Pakistan realty sector ports, von Amsberg said. “I think we are worried that the The Asian Infrastructure stagnant or slightly declining Pakistan imposes moratorium needs a regulator Investment Bank (AIIB) is trend in project finance may concerned that a downward continue because of the more Internews trend in project finance could challenging conditions, and that on new oil marketing companies Islamabad continue as challenging would just from our perspective economic and geopolitical be a huge lost opportunity,” he conditions make investors said in an interview. Internews negatively aff ected their markets as He said those already granted li- Lack of policy and regulatory framework has led to more cautious, the bank’s vice “We think that even in a slowing Islamabad the existing criteria allowed a mini- cence for construction, would be the mushroom growth of real estate projects across president of policy and strategy global economy, even with mum investment of just Rs500mn. allowed for sales only when they Pakistan, the Competition Commission of Pakistan (CCP) said. rising interest rates, many The Petroleum Division now create mandatory storage capacity observed in its report. Potential infrastructure projects projects are still worthwhile, n a sudden move, the govern- plans to increase the minimum in- in their respective province. “They “The existing legal framework has failed to maintain could be left unfunded as a and yet I think it will be harder ment of Pakistan has imposed vestment requirement by 12 times cannot sell products in a province a vigilant and a system of proper check and balance in result, although the China- to finance them.” Ia moratorium on the establish- to Rs6bn for each licencee. where they do not have 21-day stor- this sector, which has resulted in the general public as backed multilateral lender was Asia faces an estimated ment of new oil marketing compa- Also, the authorities noted that age capacity,” the offi cial said. well as commercial investors losing their hard earned prepared to “scale up” in the $460bn investment gap for nies (OMCs) until it increases the around 59 companies had been giv- Under a tight timeline, the exist- money at the hands of felons and other factors, causing face of tougher conditions, infrastructure, according to minimum investment requirement en licences for the construction of ing licencees having Rs500mn in- instability and disrupting the ease of doing business,” Joachim von Amsberg told estimates from the Asian for future investors. storages a prerequisite for becom- vestment would also be required to the CCP opinion titled ‘Issues of Real Estate Sector of Reuters. Development Bank. The Ministry of Energy Pe- ing a full-fl edged market operator at increase their investment to Rs6bn. Pakistan’ said. The AIIB earlier this month set Analysts say some troleum Division “has imposed a retail level while another 35-40 ap- The new policy would be based The CCP opinion has said that in order to enhance up a $500mn fund for corporate governments have struggled moratorium on applications for es- plications were pending with Ogra. on a comprehensive development the productivity of this sector, realise its full potential bonds in a bid to boost the to prepare infrastructure deals tablishment of new OMCs by local The increase in minimum invest- plan on the basis of demand in the and protect the rights of all stakeholders, it is imperative flow of private capital into in a way that is ‘bankable’ investors with eff ect from January ment is meant to compel OMCs to provinces and regions with details that immediate attention is given to this sector by the infrastructure investments. and attracts private sector 9, 2019, till the new criteria are ap- create enough storage. of storages, terminals and other in- government and necessary measures are undertaken to And yesterday, it published investment. proved by the Economic Coordina- “Small or large no OMC has stallations. organise, formalise and regularise it. a report highlighting Von Amsberg said the AIIB tion Committee (ECC) of the Cabi- enough storage capacity as required The ministry has proposed that It has been highlighted that rampant false and mis- opportunities and challenges in expected a possible “flight net,” announced the Oil and Gas under the rules at present,” said an at the least, Rs6bn was required leading marketing practices have made the consumers the sector. to quality”, leaving some of Regulatory Authority (Ogra). offi cial adding Ogra was also pushing for a new company to build stor- vulnerable, while it was obstructing investments in the The initiative comes at a time the more marginal projects The regulator has been “advised” the existing companies to increase age tanks with capacity of at least sector. of rising borrowing costs, unfinanced. by the Petroleum Division “not to their capital. The rules require a 20,000 tonnes each for high-speed The opinion has said that many regulatory authorities growing geopolitical uncertainty The AIIB wanted to send a accept any new applications from minimum of 21 days of storage ca- diesel and petrol or capacity equal to have been established at the federal and divisional level and slowing economies, signal that infrastructure local investors except foreign inves- pacity of sale volume of an OMC. 20 days of average sales, whichever of provinces, but there is absence of a focused national underpinning what the AIIB was an asset class ripe for tors for issuance of licence in the in- The offi cial explained that since is higher, prior to beginning petro- policy. said was a likely decline in the investment and that the bank tervening period”. no law could take eff ect in retro- leum sales in the country. “Besides, the lack of regulatory framework has value of market transactions for itself was “willing to do our Ogra said the division was cur- spect, the existing licencees would The offi cial said the authorities resulted in mushroom growth of various projects which infrastructure last year after a share to scale up, actually, in rently in the process of revising the also be allowed ample time to ex- had been able to create an additional are being launched at massive speed in almost every fall in 2017 in eight countries it this situation.” criteria for setting up of OMCs for pand their storage and the morato- storage capacity of about 100,000 town and city of the country,” the CCP said. looked at. “But of course we cannot which a draft summary has been rium was necessary to block more tonnes of petrol and 200,000 The CCP opinion has been finalised after the com- Potential investors may harbour mitigate, we cannot off set the forwarded to the concerned depart- applications till a new criteria was tonnes of high-speed diesel storage mission received number of concerns relating to the a range of concerns, from overall direction of the markets, ments. approved by the ECC, to avoid more over the past two years since Ogra real estate sector and open hearings were conducted in worries that slowing economies which has become more Offi cials explained that motive legal rights. rolled out 59 licences for construc- Islamabad, Lahore and Karachi which were attended by will lead to governments failing challenging and could become behind the moratorium was a con- “We are also giving two-week tion of OMCs. real estate customers, builders and developers, property to meet contractual obligations, more challenging this year,” he tinuous demand by large OMCs to deadlines to applicants in the pipe- The fresh applicants would also agents, provincial governments and development to concerns that trade frictions added. stop non-serious investors from line to complete their documenta- be required to have a minimum of authorities of diff erent cities. opening marketing companies as it tion,” the offi cial explained. 50% equity (Rs3bn) for each licence.

China to offer some subsidies on cars, appliances to lift weak demand

Reuters The focus of new measures “is not simply technology that promises to link everything Beijing to increase the consumption of large from vehicles to household devices at far cars, but also to integrate the industrial greater speeds. transformation and upgrading of China has pledged to speed up the China yesterday unveiled a flurry of consumption,” Liu Yunan, an NDRC off icial, commercial use of 5G technology in 2019 measures aimed at spurring sales of told a news conference. and become a manufacturing powerhouse. items ranging from cars and appliances to Wang Bin, deputy director of market China will support the sales of green and information services, as the world’s second- operations at the commerce ministry, said in smart home appliances, the NDRC said, largest economy grows at its slowest pace in the long-term auto sales “are still the main adding regional governments should nearly 30 years. factor driving consumption growth”. consider consumer subsidies for such In a statement on its website, the National Miao Wei, minister of industry and products that would have an obvious impact Development and Reform Commission information technology, told a separate on driving growth and reducing emission. (NDRC) said restrictions will be loosened news conference that in the past, “both Yesterday morning, shares of leading on the second-hand auto market, and substandard and high quality vehicles were appliance makers outperformed the Chinese “appropriate” subsidies will be provided sold to consumers, but currently resources market, with Gree Electric Appliances up to boost rural sales of some vehicles and will be allocated to high quality companies”. 1.2% and Midea Group advancing 0.8%. purchases of new energy vehicles. Patrick Yuan, a Hong Kong-based analyst at Mounting pressure on China’s economy The state planner did not give details of brokerage Jeff eries, said there were signs pushed growth last year to its lowest since the subsidies, which it said that central and auto sales have picked up in January, and 1990, at 6.6%, even as Beijing stepped up regional governments will set. “through local support policies, new car stimulus measures and pushed banks to For the first time since the 1990s, auto sales sales can be promoted to low single-digit lend more. in the world’s biggest car market shrank growth,” he predicted. China will step up fiscal spending this year Cars are seen on a main road through Beijing’s central business area. China yesterday unveiled a flurry in 2018, as China grapples with a slowing Beyond cars, the NDRC also said it would to support its economy, focusing on further of measures aimed at spurring sales of items ranging from cars and appliances to information services, economy and fallout from trade frictions accelerate the launch of commercial cuts in taxes and fees for small firms, finance as the world’s second-largest economy grows at its slowest pace in nearly 30 years. with the United States. licenses for 5G, the next generation wireless ministry off icials said last week. Gulf Times Wednesday, January 30, 2019 5 BUSINESS

Allianz to progress Japan’s ANA orders Boeing, in talks for Malaysian Airbus aircraft worth $4.3bn car insurer Bloomberg Kuala Lumpur Reuters Seattle/Tokyo Allianz Malaysia Bhd has been chosen to progress in talks to apan’s ANA Holdings Inc said acquire Malaysia’s second-big- it would order 38 planes worth gest car insurer after edging out J$4.33bn from Boeing Co and Air- Japanese rival Mitsui Sumitomo bus, and buy a stake in Philippines Insurance Co, people with knowl- Airlines parent PAL Holdings Inc to edge of the matter said. support its Asia growth strategy. AmGeneral Insurance Bhd’s This confirms a Reuters report that owners have decided to enter de- Boeing was close to a deal to sell 737 tailed discussions with Allianz on MAX jets to ANA, and that Japan’s a potential deal, according to the biggest carrier was also poised to or- people, who asked not to be iden- der Airbus A320neos. tified because the information The order is the first in Japan for is private. They have applied for the newest version of Boeing’s best- Malaysian central bank approval selling 737 family and comes at a time to allow Allianz to conduct due when the country is facing pressure diligence on the business and from US President Donald Trump’s formally proceed with negotia- administration to cut its trade surplus tions on terms of a transaction, with the United States. one of the people said. ANA was also the first from Japan The insurer could be valued at to pick Airbus’ narrowbody five years about $800mn in a sale, the peo- ago. ple said. AMMB Holdings Bhd The neo is a newer version of the and Insurance Australia Group A320 jet that is popular with Japanese Ltd, which jointly own AmGen- low-cost airlines. eral, haven’t ruled out pursuing “The decision was based on the a deal with other suitors should economic growth of Asia and emerg- talks with Allianz falter, accord- ing countries, with demand in the ing to one of the people. Asian aviation market and inbound A representative for AMMB demand on the rise,” ANA said of the said nobody was immediately fresh orders. available to comment. The carrier also said it had not been Representatives for Allianz, asked by the Japanese government to IAG and Mitsui Sumitomo Insur- buy the Boeing jets. ance declined to comment. It “has nothing to do with trade All Nippon Airways planes are seen at Haneda airport in Tokyo. The Japanese airline said it would order 38 planes worth $4.33bn from Boeing and Airbus, and buy Any deal could encourage friction”, said Hideki Mineguchi, ANA a stake in Philippines Airlines parent PAL Holdings to support its Asia growth strategy. Prudential Plc and Tokio Marine vice-president. Holdings Inc, which have also been The airline, which saw its interna- sands of orders for their narrowbody among ANA aircraft with more than bon composite wings. Japan has also US autos and farm products. Japan considering selling stakes in their tional revenue spike 11% in the De- jets on significant fuel savings of- 100 seats. resorted to major plane orders in the says its markets for manufactured Malaysian insurance units. Bloomb- cember quarter versus a half per cent fered by a new generation of engines, ANA’s rival Japan Airlines Co Ltd past to demonstrate a commitment to goods are open. erg News reported last month that rise at home, also announced an in- but they continue to battle for market also operates a mostly Boeing fleet, buying US goods in the ebb and flow In September, Trump and Japanese Allianz Malaysia and Mitsui, a unit vestment of $95mn for a 9.5% stake share, with the US firm chipping away giving the US company its most dom- of trade frictions, and the latest deal Prime Minister Shinzo Abe agreed to of Japan-listed MS&AD Insurance in PAL in line with its Asia push, say- at its European rival’s recent lead. inant position in any major aviation for Boeing’s 737 MAX coincides with start trade talks that appeared, tem- Group Holdings Inc, were short- ing it was confident in the Philippine ANA’s narrowbody fleet, which will market. similar tensions now. porarily at least, to protect Japanese listed to bid for AmGeneral. market’s growth prospects. take the 737 MAX jets, is split between Around 80% of large jets used by Washington and Tokyo are dis- automakers from further tariffs on Kuala Lumpur-listed AMMB ANA’s purchase of 20 737 MAX jets Airbus and Boeing and appears set to Japanese carriers are Boeing planes, a cussing a potential trade pact, with their exports, which account for about owns 51% of AmGeneral, while is worth $2.3bn, while its order for 18 remain that way after the latest orders Boeing spokesman in Tokyo said. Japan under pressure to cut its trade two-thirds of Japan’s trade surplus IAG holds the remainder. An A320 neos is worth $1.99bn, based on rather than transitioning to all-Airbus The case for Japanese carriers buy- surplus with the United States with the United States. acquisition could also include list prices, although airlines typically as older 737s are retired. ing Boeing has been aided by the fact that stood at $56bn in 2018, versus Japan has insisted any pact would a bancassurance agreement, get large discounts. Its budget offshoot Peach, which that its aerospace firms such as Mit- $69bn in 2017. not be a wide-ranging free trade which would give the buyer ANA said it also had options for an- will take the A320neos, has an all- subishi Heavy Industries, Kawasaki Trump and other top US offi- agreement, but US Trade Representa- the right to distribute insur- other 10 737 MAX jets. Airbus fleet. Heavy Industries and Subaru build cials have asserted that Tokyo un- tive Robert Lighthizer said last year he ance products through AMMB’s Boeing and Airbus, the world’s top However, Boeing dominates the major portions of Boeing’s aircraft, fairly ships millions of cars to North was aiming for a full free-trade deal branch network, sources said. planemakers, have amassed thou- count, at 81% as of end-March, including the 787 Dreamliner’s car- America while blocking imports of requiring approval by Congress.

China cuts local govt debt costs to spur investment Alibaba shows signs of strain Reuters targeted for specific funding Shanghai needs such as land development, and are excluded from off icial budgets. Chinese regulators have cut the Beijing has encouraged local premium that local governments governments to issue bonds in as China’s economy shudders must pay to issue debt, sources the face of a sharp slowdown in with direct knowledge of the infrastructure investment, with a matter told Reuters yesterday, multi-year crackdown on specula- Bloomberg lowering their borrowing costs as tive debt constraining some Hong Kong Beijing hopes to kick start invest- governments’ finances. ments and shore up growth. Analysts said that the quota The change comes after could be raised if economic sig- libaba Group Holding Ltd is feel- overwhelming demand saw nals remain weak, and that local ing the heat as China’s economy recent local government bond governments could be allowed to Adecelerates. issues massively oversubscribed, issue 2tn yuan in special-purpose China’s dominant e-commerce com- underscoring both their distorted bonds this year, up from 1.35tn pany will off er clues to the health of the pricing and the market’s appetite yuan last year. nation’s middle-class, and how it’s navi- for high-quality debt as Beijing But demand has more than gating the slowdown, when it unveils relaxes monetary conditions. kept up with supply, suggesting in earnings today. The sources said local govern- part that local governments have While revenue is expected to have risen ments would be able to issue been forced to pay too much to 44% during the December quarter, that’s bonds at a minimum spread of issue debt. its slowest pace of expansion since early between 25 and 40 basis points Three separate bonds issued 2016 – potentially a sign of spreading over central government bonds by the Fujian provincial govern- consumer malaise. of the same maturity. ment last week were oversub- The company founded by billionaire Previously, local governments scribed by more than 53 times, Jack Ma has been pivotal over the past were required to issue bonds with according to traders. decade in helping create a $1tn-plus Chi- a minimum spread of 40 basis Bonds issued on Tuesday by nese online shopping arena, the world’s points over equivalent Chinese the Jiangxi provincial government largest. treasury bonds. “The previous were priced at the new minimum But the scorching growth that made minimum spread did not reflect spread of 25 basis points, but still it an investor darling has moderated, as the market,” said a trader at an had bid-to-cover ratios in the 20s shoppers buy fewer washing machines Asian bank based in Shanghai. and 30s. or phones while merchants pull back on She added that while some The yield on the province’s marketing. traders were initially confused 10-year local government bond That showed up during Alibaba’s Sin- by the rule change, it eff ectively was 3.38%, sources said, 25 basis gles’ Day extravaganza on November 11, means a reduction in the mini- points higher than the yield on when sales growth of 27% was down from mum spread to 25 basis points. benchmark 10-year Chinese 2017’s 39%. Xinjiang, an autonomous treasury bonds yesterday. “China’s Internet sector had one of its region in northwest China, issued It was more than 30 times worst years in 2018, underperforming the the first local government bonds oversubscribed. market for the fi rst time,” Elinor Leung, GGV and Sequoia Capital among its Its average analyst price target sug- by David Dai estimate. The company’s of 2019 on January 21, kicking off Interest in the bond issue was an analyst at CLSA, said in a report. “E- customers, says an uptick in sales of sta- gests room to climb 26% over the next 12 operating margin is projected to hit a total local government bond issu- widespread, with both private and commerce results disappointed the most ples and necessities probably spurred months. seven-year trough during the year ending ance of 129.6bn yuan ($19.22bn) state-owned banks, insurance and had the biggest downward earnings business. “Alibaba stock may not bounce back March. last week, according to Reuters’ companies and brokerages lining revision.” Alibaba is also expanding rapidly into strongly in the near term, but we would Alibaba itself is bracing for more nerv- calculations. up to buy, a dealer said. Alibaba shed about $120bn of mar- Southeast Asia and is beginning to ex- be eyeing entry opportunities into recov- ous consumers in 2019. A further 288.4bn yuan worth “Everyone knows that these ket value through Friday since peaking periment with social media, both poten- ering earnings growth momentum in the In November, it trimmed its sales out- of local government bonds are bonds will be highly oversub- in June as uncertainty from US-Chinese tial founts of growth. second half,” Han Joon Kim, an analyst look by as much as 6%. due to be issued this week. scribed and there will ultimately tensions spooked investors in front-line Another promising area is advertising with Deutsche Bank, said in a report. And while SuperSymmetry’s data The record pace of issuance be very few winning bids, so they sectors such as technology. in shoppers’ recommendation feeds: it’s The company however is still investing supports a relatively healthy quar- of normal and special-purpose load in,” said the dealer. Yet it remains a driving force behind completed the roll-out of that interface heavily in other fi elds. ter for Alibaba, it also projects a 10% bonds means local governments “There’s too much money, China’s eff ort to re-balance growth to- on main retail app Taobao, creating new Profi t is projected to have slid 8% in the decline in revenue for fashion retailer will in just two weeks use up 30% and nowhere to invest it,” said a ward services, investing in data to bring ad real estate. December quarter as it sustains spending Vipshop Holdings Ltd, underscoring of the total 2019 quota for new Shanghai-based asset manager. retail into the 21st century while creating “Revenue growth could surprise if it in costly growth areas from cloud com- the depth of the pullback in discre- local government bond issuance A Shanghai-based senior online platforms like entertainment to starts monetising recommended feed puting and food delivery to entertain- tionary spending. approved by the State Council trader said that from the point of compete with Tencent Holdings Ltd. traffi c in 2019,” Leung wrote. “Margin ment. “We expect a tougher macro-eco- late last year. view of banks, local government SuperSymmetry, a Beijing-based con- will continue to contract in 2019, but the Ele.me, the unit spearheading Ali- nomic outlook for China to weigh on The 1.39tn yuan quota includes bonds had the same risk profile sultancy that mines data from millions decline will moderate after the anniver- baba’s expansion into food delivery, Alibaba’s commissions and advertising 810bn yuan worth of new special as Chinese treasury bonds – but of online-shopping pages, predicts the sary of Cainiao and Ele.me’s fi nancial wants to command more than 50% of the revenue for the next few quarters,” said bond issuance and 580bn worth due to “guidance” by regulators, value of goods sold on Alibaba’s platform consolidation.” market in the short to medium term, the Shelleen Shum, a senior analyst with of normal bond issuance. yields are by definition higher, grew by 25.6% in the quarter, up from Despite growing at about twice the unit’s chief executive offi cer, Wang Lei, eMarketer.“Despite a slowing ad market, Unlike normal bonds used to making them more attractive 20.5% the previous three months. sector average, Alibaba trades at a 10% has said. Alibaba will still remain in the top spot fund deficits, special bonds are investments. The fi rm, which counts well-known discount to its peers at about 25 times It accounted for about 34% of the in- for share of digital ad revenues in China venture capital houses Hillhouse, blended two-year earnings. dustry in 2018, Bernstein analysts led at over 30%.” Gulf Times 6 Wednesday, January 30, 2019 BUSINESS

Bond market spotlight on new deals, first Greek sale in almost a year

Reuters high-level talks between the United month, the upcoming sales were for longer.” The pricing of a 30-year Greek five-year bond yields were turned negative for the first time London States and China on trade and today’s viewed as an important gauge of syndicated Belgian bond and a 10-year around 1.5 bps lower at 3.03%, while since April. Federal Reserve meeting. sentiment. Austrian bond are expected to be the benchmark 10-year bond yield hit a “Given that every syndicated bond New bonds, sold via a syndicate of “There are two factors at play – one completed later in the day, as is the new four-month low of 4.026%. deal recently has gone well and Greece Greek government bond yields fell banks, from Greece, Belgium and is traditional front-loading of supply new Greek five-year bond. In the rest of the euro area, 10-year has been flagging it, I suspect the yesterday, outpacing eurozone peers, Austria were also in the spotlight. by issuers in the first months of the Initial guidance for the five-year Greek bond yields were little changed on the Greek deal should also go well,” said as Greece began selling a five-year Weaker economic conditions have year,” said Mathias van der Jeugt, rates bond was for a yield of 3.750%-3.875%, day. Rabobank rates strategist Lyn Graham- bond for the first time since emerging boosted expectations that record low strategist at KBC. a source told Reuters. A string of recent successful Taylor. from an international bailout five interest rates will remain in place for “Second, is that issuers are profiting By mid-morning, demand was over syndicated bond deals include long- Greece, which emerged in August from months ago. some time. from the global growth worries and €8.5bn, according to International dated sales from Spain and Italy this its third international bailout since Eurozone bond markets were This has encouraged governments stock market turmoil that has pushed Financing Review. month that met with record investor 2010, has tested market appetite under supported by caution before Britain’s to launch new bond deals and take yields lower. Pooja Kumra, European rates strategist demand. the watch of its international lenders in parliament votes later yesterday on advantage of renewed investor Also, the ECB downgraded its growth at TD Securities, said she expected a Germany sold almost €4bn of bonds recent years. proposals to change Prime Minister appetite for fixed income. forecasts last week which opens minimum of €3bn ($3.4bn) of the new yesterday, while yields on six-month It sold €3bn of seven-year bonds Theresa May’s Brexit deal, looming After hefty yield falls in the past the door for easy monetary policy bond to be sold. Italian paper sold at an auction nearly a year ago.

EM stocks dip on Asia markets mostly down as US-China trade investors track Wall St sell-off concerns; AFP FX stable Hong Kong sian markets mostly fell yester- day as the charging of Chinese Reuters Agiant Huawei in the US cast a London shadow over upcoming trade talks, while investors were also tracking a Wall Street sell-off fuelled by concerns over merging market stocks corporate profi ts. slipped yesterday as A busy week across the globe got off Ecaution reigned in the to a nervous start Monday after indus- build-up to US-China trade trial giant Caterpillar and chip company talks, while developing world Nvidia projected worse-than-expected currencies struggled to eke out results for 2019, citing ongoing weak- gains against a stable dollar be- ness in China. fore the US Federal Reserve’s The announcements from two of rate meeting. Wall Street’s big-hitters follow similar Hopes that the world’s top warnings from Apple and Samsung and two economies would move sent shudders through trading fl oors. towards settling their trade “Caterpillar and Nvidia are not the dispute at talks starting today fi rst companies to blame China for their took a hit after the US Justice affl ictions, but both companies are seen Department levelled criminal as industry bellwethers and their dis- charges against Chinese tel- appointing results provide further evi- ecom giant Huawei. dence that this time China’s slowdown “China does not take kindly is for real,” said Rodrigo Catril, senior to these things... it is a thorn in markets strategist at Australia National the side of what are already rel- Bank. atively poor relations between The warnings come as Beijing strug- America and China,” said Paul gles to kickstart the world’s number two Fage, senior emerging markets economy, which expanded last year at strategist at TD Securities. its slowest pace for almost three dec- Markets were “still waiting ades, with a mammoth debt mountain for concrete results” on trade, and the US trade war hampering eff orts. he added. However, while the majority of Asian MSCI’s index of developing markets fell yesterday they did pare world stocks dipped 0.1%, ex- their losses and some even edged into tending Monday’s 0.4% drop. positive territory. Its index of emerging mar- Hong Kong was down 0.2% at Investors look at computer screens showing stock information at a brokerage house in Shanghai. Chinese stocks shed 0.1% to 2,594.25 points yesterday. ket currencies was flat, as was 27,531.68 and Shanghai shed 0.1% at China’s yuan due to investor 2,594.25 while Sydney fell 0.5% and However, the negotiations will be- manipulations behind the actions”. in that its economy is slowing and it later Tuesday on Prime Minister There- concerns on global trade. Singapore gave up 0.3%. gin under a cloud after the US Jus- The move comes just over a month cannot afford a long-term trade war.” sa May’s revised Brexit deal. But before Debt investors in emerging Wellington, Taipei, Manila and Ja- tice Department announced criminal before the end of a 90-day deadline On oil markets, both main contracts they vote on the deal, they must decide markets were focused on Ven- karta rose while Tokyo and Seoul closed charges against Chinese telecom titan set between Trump and Xi Jinping on were slightly higher after tanking on whether or not to include a series of ezuela after the US government with minor gains. Huawei and two affiliates on a number reaching a trade deal, after which tariff s Monday as worries about the slowing amendments, one of which would open ramped up the pressure on so- The main focus of attention this week of technology theft counts as well as on hundreds of billions worth of Chi- global economy trumped political in- the door for MPs to bring in legislation cialist President Nicolas Ma- is on the two-day meeting between fraud related to Iran sanctions viola- nese goods will be hiked. stability in major producer Venezuela, preventing Britain leaving the European duro with sweeping sanctions China and US offi cials aimed at resolv- tions. Still, Neil Wilson, chief market ana- which analysts said had already been Union without a deal on March 29. on Venezuelan state-owned oil ing the long-running trade war that has The fi rm’s chief fi nancial offi cer lyst at Markets.com, said: “This will priced in. It would force May to delay Brexit for firm PDVSA. been a drag on equities. Meng Wanzhou, who has been held in ratchet up the pressure on the US-Chi- “Expectations for future demand is nine months if her plan is not approved Turkey’s lira was half a per Donald Trump will meet China’s top Canada for weeks, was also charged and na talks this week, but the tariff spat is becoming a worry,” said Sungchil Will before February 26, and give lawmak- cent softer, a day before the economy envoy Liu He during the talks, faces extradition to the US. about much more than a single com- Yun, a commodities analyst at HI In- ers the ability to indefi nitely extend the central bank’s inflation fore- which start today, while US Treasury Huawei described the charges as pany’s dealings. vestment & Futures Corp. deadline. cast, amid concerns that food Secretary Steven Mnuchin said he ex- “disappointing” and denied any guilt, “We’re in big, long-term geopo- The pound was slightly lower against Sterling has enjoyed healthy buying prices will spur a quickening in pected “signifi cant progress at these while China’s foreign ministry hit out at litical territory and at the moment the dollar but continued to hold its in recent weeks on expectations that a inflation in the first quarter. meetings”. the “political motivations and political China has more to lose than the US ground ahead of a vote in parliament no-deal exit will be avoided. Russia’s rouble weakened 0.1% against the dollar while gains on the local stocks index were capped by a 4% drop in aluminium giant Rusal’s Mos- ‘Bond traders too downbeat cow-listed shares. Indian equities end lower That followed their surge in the previous session, which over India federal budget’ was spurred by a US decision to IANS lift sanctions on firms linked to Mumbai Bloomberg from the RBI, he said. “The track record of this oligarch Oleg Deripaska. Mumbai government shows it has been fiscally prudent. “The gloomy backdrop is I don’t see why it would splurge and spoil it in its likely to pressure emerging oncerns over a rise in last year,” he said. markets in particular, includ- US-China trade tensions India’s sovereign-bond market has been jittery of To be sure, this fiscal year’s 3.3% target was ing Russia,” wrote analysts at Calong with caution ahead late, with investors bracing for the government widened last February from the previous 3% aim. Alfa Bank, adding they expect- of the interim budget kept the to announce populists measures in the federal The budget deficit, on the other hand, is seen ed Russian markets to remain major Indian equity indices in budget due this Friday. edging higher to 3.5% of GDP this year versus the on the back foot amid the de- a tight range and eventually led Bank of America Merrill Lynch isn’t perturbed. 3.3% target, according to a separate Bloomberg velopments surrounding Hua- them to end on a fl at-to-nega- Bonds are poised to rally as fears about fiscal survey. wei, the US Fed policy decision tive note yesterday. slippage are overdone and the central bank will ING Groep NV says expectations that the and increased US pressure on In addition, caution prevailed likely start easing policy as early as next week, government will stick to fiscal math “are largely Venezuela. over the ongoing third quarter said Jayesh Mehta, who in August correctly pre- misplaced” after overshooting the deficit last South Africa’s rand was 0.2% results season and stock-spe- dicted the end to the selloff in local bonds. year, and likely to do so again this fiscal. weaker. cifi c volatility reined in the mar- “Markets will be positively surprised on the The bank expects the revised budget for cur- Local stocks rose 0.7%, aided ket’s upward movement. fiscal front,” Mehta, the country treasurer at the rent fiscal leading to a budget deficit of 3.6%. by a 2.1% rise in Absa Group. Globally, investor sentiments bank, said in an interview in Mumbai. It’s not the first time Mehta, 55, has bet against The lender said its chief ex- were subdued as the US-China The yield on the most-traded 2028 bonds has market consensus. ecutive will retire at the end of trade confl ict intensifi ed after risen in four of the past five weeks as Prime Min- He correctly predicted the RBI would lower February, after the firm com- the US Justice Department fi led ister Narendra Modi’s administration prepares rates in 2017, when practically everyone was pleted its separation from Bar- criminal charges against Huawei an aid package to appease farmers, a key voting expecting a hike. Last August, he called time on clays PLC. accusing the world’s second- A trader watches stock price movement at the Bombay Stock block, ahead of elections due by May. the surge in benchmark yields. Hungary’s forint marked largest smartphone marker of Exchange. The Sensex ended 64 points or 0.18% lower at 35,592.50 The size of the relief measure has been the Now, he expects the central bank to roll back time against the euro ahead of a bank fraud, obstruction of jus- points yesterday. subject of intense speculation, with the addi- two hikes from last year that together added up central bank meeting to decide tice and theft of technology. tional expenditure varying from about Rs700bn to 50 basis points because of slowing inflation. on borrowing costs. On sector specifi c basis, oil and some of the losses supported both on the currency and debt ($9.8bn) to as high as Rs3tn. That’s as a Bloomberg survey shows the policy Economists polled by Reu- gas stocks ended 0.92% lower, by strengthening rupee and market space for some time now. The concerns about the health of India’s rate remaining unchanged at 6.5% for the March ters expect the base rate to while the key fi nance and banking short covering ahead of F&O “Upcoming interim budget finances have coincided with a rebound in prices quarter. remain untouched at 0.9 %, stocks ended on a fl at to negative expiry,” said Vinod Nair, Head will likely confi rm government of oil – India’s top import – and below-average The RBI’s rate-setting panel is due to announce where it has been for about 32 note. Consequently, the S&P BSE of Research, Geojit Financial slipping on the budgeted print of revenue from goods and services tax and asset its decision on February 7. months. Sensex ended 64 points or 0.18% Services. 3.3% of GDP by 0.2 percentage sales. A drop in oil prices in the final three months Yields could drop another 50 basis points by “We expect new policy sig- lower at 35,592.50, while the NSE “The market is not completely points to 3.5%.” of 2018 and purchases by the Reserve Bank of end-March as the central bank’s debt purchases nals and guidance, along with Nifty50 closed 9.35 points or out of the wood as volatility may Gupta added that the India had helped bonds log their best quarter in should continue in February and March, he said. the possibility that the rate 0.09% down at 10,652.20. extend in the coming days due markets were already brac- four years. The yield on the most-traded 2028 bond corridor extremities may be “The market opened on a neg- to interim budget and election ing for the slippage, largely The government will meet its fiscal deficit was down one basis point to 7.53% at 3:55pm shifted up. ative note due to uncertainties led uncertainty.” On the upcom- amid massive revenue short- target of 3.3% for the year ending March, while it yesterday. We do not forecast a hike to surrounding the global market ing interim budget, Sajal Gupta, falls in GST collections so far. may “slip marginally” from next year’s 3.1% aim, “Even if the pace of OMOs decline, I expect the benchmark rate,” Com- and upcoming US Fed policy. head Forex & Rates, Edelweiss The rupee yesterday closed on a Mehta said. Any deviation will be met from addi- Rs350bn-Rs400bn each in February and March, merzbank analysts wrote in a However, towards the clos- Securities, said that the fi scal fl at note at 71.11 per dollar from tional revenues and by way of a higher dividend which should bring down yields,” he said. note. ing, market managed to recoup fragilities had been weighing its previous close of 71.10. Gulf Times Wednesday, January 30, 2019 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 16.38 -0.12 95,989 Specialities Group Holding C 70.00 1.45 30 Arabia Falcon Insurance Co 0.12 0.00 - Amana Cooperative Insurance 18.98 9.87 829,142 Abyaar Real Eastate Developm 19.00 7.95 67,565,676 Aloula Co 0.53 0.00 - Alabdullatif Industrial Inv 11.38 -0.18 207,194 Kgl Logistics Company Kscc 41.90 0.48 1,269,241 Al-Omaniya Financial Service 0.20 0.00 - Saudi Printing & Packaging C 16.78 0.12 329,394 Combined Group Contracting 330.00 6.45 717,012 Al-Hassan Engineering Co 0.03 0.00 - Saudi Paper Manufacturing Co 13.18 0.15 539,789 Jiyad Holding Co Ksc 66.50 -2.92 208,380 Al-Fajar Al-Alamia Co 0.75 0.00 - Alinma Bank 24.58 0.08 8,627,533 Boubyan Intl Industries Hold 34.40 0.58 112,250 Al-Anwar Ceramic Tiles Co 0.08 0.00 605,800 Almarai Co 55.50 -0.89 229,489 Gulf Investment House Ksc 17.10 0.00 723,760 Al Suwadi Power 0.10 0.00 177,000 Falcom Saudi Equity Etf 33.50 0.30 246,868 Boubyan Bank K.S.C 584.00 0.34 656,617 Al Sharqiya Invest Holding 0.08 1.22 62,000 United International Transpo 28.05 -0.71 267,837 Ahli United Bank B.S.C 233.00 1.30 12,258,429 Al Maha Petroleum Products M 0.86 -2.70 10,000 Hsbc Amanah Saudi 20 Etf 30.60 0.00 - Osos Holding Group Co 99.50 3.43 53,580 Al Maha Ceramics Co Saoc 0.19 0.00 - QATAR Saudi International Petroche 18.74 0.32 512,719 Al-Eid Food Ksc 0.00 0.00 - Al Madina Takaful Co Saoc 0.09 2.30 678,241 Falcom Petrochemical Etf 32.00 0.00 - Qurain Petrochemical Industr 386.00 -1.03 128,468 Al Madina Investment Co 0.03 0.00 79,089 Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 23.34 -0.85 231,918 Ekttitab Holding Co Sak 20.70 -1.43 1,440,032 Al Kamil Power Co 0.38 0.00 - Bank Al-Jazira 16.92 -0.47 2,659,112 Real Estate Trade Centers Co 26.00 -1.14 187,315 Al Jazerah Services -Pfd 0.55 0.00 - Hitachi Ltd 3,371.00 -1.63 2,997,400 Al Rajhi Bank 102.80 -0.77 2,884,441 Acico Industries Co Kscc 170.00 0.00 143,890 Al Jazeera Steel Products Co 0.28 0.00 - Takeda Pharmaceutical Co Ltd 4,442.00 -1.49 11,995,200 Samba Financial Group 37.10 -1.59 1,110,375 Kipco Asset Management Co 74.80 0.00 50 Al Jazeera Services 0.11 0.00 2,000 Jfe Holdings Inc 1,875.50 0.29 2,396,000 United Electronics Co 62.00 -0.48 136,486 National Petroleum Services 883.00 0.00 750 Al Izz Islamic Bank 0.09 -2.25 39,000 Sumitomo Corp 1,661.50 -0.18 2,898,700 Allied Cooperative Insurance 21.50 0.47 73,530 Alimtiaz Investment Group 131.00 0.77 226,915 Al Buraimi Hotel 0.88 0.00 - Canon Inc 3,119.00 -0.45 3,000,900 Malath Insurance 11.70 0.00 547,915 Ras Al Khaimah White Cement 62.20 -11.02 5,500 Al Batinah Power 0.10 -1.02 50,000 Nintendo Co Ltd 33,460.00 1.67 2,510,400 Alinma Tokio Marine 16.24 0.87 174,797 Kuwait Reinsurance Co Ksc 121.00 0.00 10,001 Al Batinah Hotels 1.13 0.00 - Eisai Co Ltd 8,716.00 1.00 739,900 Arabian Shield Cooperative 18.40 0.55 273,485 Kuwait & Gulf Link Transport 94.20 1.29 80,001 Al Batinah Dev & Inv 0.09 0.00 - Isuzu Motors Ltd 1,601.50 -0.31 1,828,800 Savola 31.30 0.64 174,320 Humansoft Holding Co Ksc 3,250.00 0.00 126,556 Al Anwar Holdings Saog 0.09 0.00 587,482 Unicharm Corp 3,220.00 -0.77 1,433,000 Wafrah For Industry And Deve 16.16 0.50 183,298 Automated Systems Co Kscc 102.00 0.00 887 Al Ahlia Insurance Co Saoc 0.36 0.00 - Shin-Etsu Chemical Co Ltd 9,086.00 -0.36 2,347,300 Fitaihi Holding Group 11.10 -0.89 191,417 Metal & Recycling Co 61.50 33.70 30 Ahli Bank 0.15 1.38 560,016 Smc Corp 35,630.00 -2.92 190,800 Tourism Enterprise Co/ Shams 31.20 -1.27 281,791 Gulf Franchising Holding Co 0.00 0.00 - Acwa Power Barka Saog 0.70 0.00 - Mitsubishi Corp 3,112.00 0.13 2,498,200 Sahara Petrochemical Co 15.26 -0.13 1,044,939 Al-Enma’a Real Estate Co 34.50 -1.43 1,196,913 Abrasives Manufacturing Co S 0.05 0.00 - Asahi Group Holdings Ltd 4,373.00 2.72 1,288,900 Herfy Food Services Co 48.00 0.00 102,674 National Mobile Telecommuni 699.00 -0.14 8,030 A’saff a Foods Saog 0.60 0.00 - Keyence Corp 54,480.00 -0.89 440,900 Saudi Ind Investment Group 23.50 2.98 1,441,265 Unicap Investment And Financ 77.10 -2.41 223,845 0Man Oil Marketing Co-Pref 0.25 0.00 - Nidec Corp 12,555.00 -2.83 1,526,200 Salama Cooperative Insurance 16.12 0.25 229,179 Al Salam Group Holding Co 32.40 -1.22 428,155 Nomura Holdings Inc 442.10 -2.26 14,276,200 Emaar Economic City 8.76 0.46 2,111,936 Al Aman Investment Company 48.50 -1.42 58,122 Daiichi Sankyo Co Ltd 3,761.00 0.75 1,218,600 Alahli Takaful Co 28.30 0.18 117,651 Mashaer Holding Co Ksc 73.50 -4.55 8,020,189 Subaru Corp 2,530.00 1.10 3,214,600 Anaam International Holding 13.50 -0.44 230,968 Manazel Holding 27.00 0.00 28,000 Ntt Docomo Inc 2,590.00 0.68 3,559,600 Saudi Telecom Co 101.20 -0.98 470,459 Tijara And Real Estate Inves 46.50 -7.92 8,039 Sumitomo Realty & Developmen 4,136.00 0.66 956,200 Al Alamiya Cooperative Insur 34.40 1.62 16,939 Jazeera Airways Co Ksc 727.00 0.28 274,214 Sumitomo Metal Mining Co Ltd 3,041.00 -0.30 1,097,300 Saudi Industrial Services Co 11.94 -0.33 2,296,416 Commercial Real Estate Co 90.80 0.00 1,060,235 Orix Corp 1,656.50 -1.60 5,971,300 Al-Ahsa Development Co. 10.40 -0.95 346,425 National International Co 61.00 0.00 84,650 Daiwa Securities Group Inc 573.90 -2.89 8,462,600 National Co For Glass In/The 18.40 -0.54 42,340 Taameer Real Estate Invest C 27.60 -1.08 547,090 Softbank Group Corp 8,200.00 1.54 6,590,400 Dur Hospitality Co 19.26 -0.21 115,167 Gulf Cement Co 66.00 0.00 8,040 Mizuho Financial Group Inc 178.80 0.22 87,181,400 Tabuk Cement Co 12.94 -0.15 933,739 Heavy Engineering And Ship B 430.00 0.00 667,539 UAE Central Japan Railway Co 23,300.00 1.35 253,100 Sasco 16.38 -0.97 231,652 National Real Estate Co 81.00 -4.71 835,575 Nitori Holdings Co Ltd 14,000.00 -0.32 264,700 Saudi Cement 56.80 -0.18 148,706 Al Safat Energy Holding Comp 31.00 -7.46 47,248 Company Name Lt Price % Chg Volume T&D Holdings Inc 1,340.00 -1.36 2,217,500 Aseer Trading Tourism & Manu 9.62 -1.03 256,478 Kuwait National Cinema Co 975.00 -5.34 227 Toyota Motor Corp 6,676.00 -0.19 4,638,400 Nama Chemicals Co 28.10 -0.53 205,520 Danah Alsafat Foodstuff Co 38.90 1.04 15,972 Waha Capital Pjsc 1.82 0.00 111,383 Hoya Corp 6,245.00 0.34 633,900 Saudi Arabian Mining Co 55.00 -0.54 602,960 Independent Petroleum Group 417.00 -1.88 49,350 United Insurance Company 2.00 0.00 - Sumitomo Mitsui Trust Holdin 4,236.00 -0.28 883,800 Yanbu Cement Co 29.00 -1.19 527,084 Kuwait Real Estate Co Ksc 55.50 0.54 1,413,874 United Arab Bank Pjsc 1.20 0.00 - Japan Tobacco Inc 2,742.00 -0.09 3,849,900 Saudi Fisheries 71.30 2.89 4,454,375 Salhia Real Estate Co Ksc 328.00 -0.61 262,440 Union National Bank/Abu Dhab 5.29 0.00 1,157,428 Osaka Gas Co Ltd 2,190.00 2.87 1,073,600 Ash-Sharqiyah Development Co 51.70 0.58 444,665 Gulf Cable & Electrical Ind 380.00 0.00 507,378 Union Insurance Co 0.90 0.00 - Sumitomo Electric Industries 1,541.50 -0.64 2,510,600 Makkah Construction & Devepl 76.90 -0.39 17,181 Kuwait Finance House 0.00 0.00 - Union Cement Co 0.00 0.00 - Ono Pharmaceutical Co Ltd 2,341.50 0.73 1,149,200 Al Jouf Cement 8.06 0.00 2,277,528 Gulf North Africa Holding Co 50.50 -0.98 460,000 Umm Al Qaiwain General Inves 0.97 0.00 - Ajinomoto Co Inc 1,896.00 2.16 2,110,600 Abdullah A.M. Al-Khodari Son 7.02 -0.43 1,569,199 Hilal Cement Co 91.00 0.00 1 Sudatel Telecome Group Ltd 0.36 -6.25 458,292 Mitsui Fudosan Co Ltd 2,603.50 1.78 2,310,500 Knowledge Economic City 9.46 -0.21 551,178 Osoul Investment Kscc 58.00 0.00 139 Sharjah Islamic Bank 1.24 -2.36 155,437 Daikin Industries Ltd 11,695.00 0.00 1,016,100 Al-Ahlia Cooperative Insuran 11.20 -0.53 171,309 Gulf Insurance Group Ksc 640.00 0.00 1,000 Sharjah Insurance Company 2.84 0.00 - Toray Industries Inc 805.20 0.35 3,101,100 Al Rajhi Co For Co-Operative 71.30 2.00 347,820 Umm Al Qaiwain General Inves 69.20 0.00 10,000 Sharjah Group 1.00 0.00 - Bridgestone Corp 4,182.00 -1.16 2,119,500 Advanced Petrochemicals Co 55.00 0.00 228,034 Aayan Leasing & Investment 45.10 2.27 22,555,803 Sharjah Cement & Indus Devel 1.00 0.00 - Sony Corp 5,349.00 -0.45 4,300,900 Al Babtain Power & Telecommu 20.28 1.10 461,362 Alrai Media Group Co Ksc 61.00 -1.61 92,572 Ras Al-Khaimah National Insu 2.90 0.00 - Astellas Pharma Inc 1,541.50 0.82 5,432,300 Allianz Saudi Fransi Coopera 30.30 1.00 109,020 National Investments Co 93.00 -0.85 440,000 Ras Al Khaimah White Cement 1.08 0.00 - Jxtg Holdings Inc 571.10 -1.82 12,932,000 Najran Cement Co 8.69 0.46 2,041,304 Commercial Facilities Co 182.00 -0.55 9,870 Ras Al Khaimah Ceramics 1.83 2.23 20,000 Nippon Steel & Sumitomo Meta 1,976.00 -0.58 2,360,100 Al Tayyar Travel Group 22.80 0.00 1,396,548 Yiaco Medical Co. K.S.C.C 85.00 -5.56 1,000 Ras Al Khaimah Cement Co Psc 0.60 0.00 - Suzuki Motor Corp 5,730.00 0.60 1,534,500 National Commercial Bank 52.00 0.00 2,212,823 Munshaat Real Estate Project 104.00 -1.89 25,894 Ras Al Khaima Poultry 1.90 0.00 - Nippon Telegraph & Telephone 4,697.00 1.47 2,952,200 Noor Financial Investment Co 85.00 11.70 15,676,549 Rak Properties 0.46 -1.09 1,783,414 Al Tamdeen Investment Co 315.00 0.00 3,200 Ooredoo Qpsc 71.00 1.43 1,068 KUWAIT Credit Rating & Collection 20.00 -9.09 50 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Ifa Hotels & Resorts Co. K.S 63.40 2.92 21,933 National Takaful Company 0.62 0.00 - SAUDI ARABIA National Marine Dredging Co 3.96 14.78 302,054 Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 45.60 -0.44 1,542,400 Warba Bank Kscp 220.00 0.00 3,054,540 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume Sultan Center Food Products 53.10 -1.48 109,600 Viva Kuwait Telecom Co 860.00 1.18 137,063 National Corp Tourism & Hote 1.68 0.00 - Kuwait Foundry Co Sak 249.00 -0.40 115,904 Mezzan Holding Co Kscc 455.00 0.44 282,386 National Bank Of Umm Al Qaiw 2.96 0.00 - United Wire Factories Compan 16.12 -1.10 124,136 Kuwait Financial Centre Sak 96.00 -3.90 1,955 National Bank Of Ras Al-Khai 4.15 1.22 327,309 Etihad Etisalat Co 18.00 0.11 2,085,092 Ajial Real Estate Entmt 142.00 -2.74 49,404 National Bank Of Fujairah 4.80 0.00 - Dar Al Arkan Real Estate Dev 9.80 -1.21 16,077,510 Kuwait Finance & Investment 37.50 -6.25 450,500 Methaq Takaful Insurance 0.70 0.00 49,915 Alawwal Bank 16.66 -1.42 267,987 National Industries Co Ksc 190.00 0.00 2,000 OMAN Manazel Real Estate Pjsc 0.39 -0.76 176,906 Rabigh Refining And Petroche 20.10 0.20 569,306 Kuwait Real Estate Holding C 31.00 0.00 18,600 Invest Bank 2.49 0.00 - Banque Saudi Fransi 37.70 -1.69 267,327 Company Name Lt Price % Chg Volume Securities House/The 53.50 -0.93 260,010 Intl Holdings Co Pjsc 0.98 8.79 700,894 Saudi Enaya Cooperative Insu 15.34 -1.03 3,354,009 Voltamp Energy Saog 0.00 Boubyan Petrochemicals Co 929.00 1.53 300,803 0.22 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 15.40 0.13 327,436 Vision Insurance Saoc 0.00 Al Ahli Bank Of Kuwait 291.00 -3.00 33,933 0.14 - Gulf Pharmaceutical Ind Psc 1.89 0.00 48,168 Saudi British Bank 37.10 -2.11 146,494 United Power/Energy Co- Pref 0.00 Ahli United Bank (Almutahed) 299.00 0.67 378,020 1.00 - Gulf Medical Projects 1.77 0.00 - Red Sea International Co 15.44 0.92 73,897 United Power Co Saog 0.00 National Bank Of Kuwait 870.00 -0.68 6,461,706 3.30 - Gulf Cement Co 0.75 0.00 - Takween Advanced Industries 10.10 2.85 909,109 United Finance Co 0.00 Commercial Bank Of Kuwait 501.00 0.20 2,364 0.09 - Fujairah Cement Industries 1.25 0.00 - Sabb Takaful 17.56 1.15 403,632 Ubar Hotels & Resorts 0.00 Kuwait International Bank 285.00 0.35 3,425,227 0.13 - Fujairah Building Industries 1.15 0.00 - Saudi Arabian Fertilizer Co 83.40 -1.77 232,851 Takaful Oman 0.00 Gulf Bank 270.00 0.75 4,682,491 0.13 - Foodco Holding Pjsc 3.71 0.00 - National Gypsum 12.16 -0.98 156,420 Taageer Finance 0.00 Al-Massaleh Real Estate Co 40.00 2.83 533,000 0.09 5,000 First Abu Dhabi Bank Pjsc 14.76 -0.81 5,986,267 Saudi Ceramic Co 20.74 -1.43 370,265 Sweets Of Oman 0.00 Al Arabiya Real Estate Co 30.50 0.33 392,927 0.55 - Finance House 1.63 0.00 - National Gas & Industrializa 29.45 -1.51 220,576 Sohar Power Co 0.00 Kuwait Remal Real Estate Co 41.00 -0.97 128,102 0.11 260 Eshraq Properties Co Pjsc 0.48 -0.63 1,725,208 Saudi Pharmaceutical Industr 29.00 -1.69 168,034 Smn Power Holding Saog 0.00 A’ayan Real Estate Co Sak 61.80 0.00 83,655 0.24 - Emirates Telecom Group Co 17.00 0.12 3,119,160 Thimar 26.25 -0.19 273,245 Shell Oman Marketing - Pref 0.00 Investors Holding Group Co.K 12.70 2.42 11,402,230 1.05 - Emirates Insurance Co. (Psc) 6.50 0.00 - National Industrialization C 15.88 1.93 1,680,585 Shell Oman Marketing 0.00 Al-Mazaya Holding Co 71.70 -1.38 2,867,695 1.25 - Emirates Driving Company 7.00 0.00 - Batic Investments And Logist 37.45 -0.13 37,672 Sharqiyah Desalination Co Sa 0.00 Al-Madar Finance & Invt Co 162.00 0.00 840,020 0.31 - Dana Gas 0.88 -0.90 9,250,897 Saudi Electricity Co 16.70 -1.18 2,885,579 Sembcorp Salalah Power & Wat 0.00 Gulf Petroleum Investment 31.70 -2.16 8,165,000 0.17 - Commercial Bank Internationa 0.87 0.00 - Saudi Arabia Refineries Co 43.50 -0.23 642,818 Salalah Port Services 0.00 Mabanee Co Sakc 614.00 0.00 88,904 0.60 - Bank Of Sharjah 1.00 0.00 15,000 Arriyadh Development Company 18.52 0.65 143,950 Salalah Mills Co 0.00 Inovest Co Bsc 81.50 -5.12 454,840 0.73 - Axa Green Crescent Insurance 0.50 0.00 - Al-Baha Development & Invest 21.54 -1.37 579,895 Salalah Beach Resort Saog 0.00 Al-Deera Holding Co 18.80 1.62 123,046 1.38 - Arkan Building Materials Co 0.53 -5.56 1,527,215 Saudi Research And Marketing 85.50 -0.23 100,503 Sahara Hospitality 0.00 Mena Real Estate Co 38.80 -0.51 445,458 3.09 - Alkhaleej Investment 1.50 0.00 - Aldrees Petroleum And Transp 34.95 -1.13 412,192 Renaissance Services Saog -3.13 Amar Finance & Leasing Co 39.00 -3.94 750 0.31 1,469,464 Aldar Properties Pjsc 1.60 1.27 18,409,077 Saudi Vitrified Clay Pipe Co 50.50 1.00 17,933 Raysut Cement Co -1.02 United Projects For Aviation 626.00 -2.19 1,010 0.39 24,000 Al Wathba National Insurance 12.76 0.00 - Jarir Marketing Co 154.60 -0.13 152,802 Phoenix Power Co Saoc 0.00 National Consumer Holding Co 65.00 0.00 1 0.10 - Al Qudra Holding Pjsc 0.71 -10.00 252,222 Arab National Bank 37.70 -2.20 382,259 Packaging Co Ltd 0.00 Amwal International Investme 0.00 0.00 - 2.21 - Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 67.10 1.21 659,568 Ooredoo 0.00 Equipment Holding Co K.S.C.C 31.00 0.98 368,271 0.53 74,450 Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 25.10 -0.79 506,246 Ominvest 0.00 Arkan Al Kuwait Real Estate 85.20 -6.37 154,782 0.36 - Al Dhafra Insurance Co. P.S. 3.60 0.00 - Middle East Specialized Cabl 12.64 1.28 461,332 Oman United Insurance Co 0.00 Gfh Financial Group Bsc 74.50 1.78 3,164,165 0.30 - Al Buhaira National Insuranc 1.99 0.00 - Al Khaleej Training And Educ 13.54 -0.29 140,432 Oman Telecommunications Co 0.56 Energy House Holding Co Kscp 38.00 0.00 100 0.71 196,727 Al Ain Ahlia Ins. Co. 37.00 0.00 - Al Sagr Co-Operative Insuran 12.26 -0.16 177,239 Oman Refreshment Co 0.00 Kuwait Co For Process Plant 228.00 -2.56 60,200 1.70 - Agthia Group Pjsc 3.89 -2.51 131,705 Trade Union Cooperative Insu 0.00 0.00 - Oman Qatar Insurance Co 0.00 Al Maidan Dental Clinic Co K 1,200.00 0.00 199,505 0.11 - Abu Dhabi Ship Building Co 1.00 0.00 - Arabia Insurance Cooperative 15.92 0.13 69,104 Oman Packaging 0.00 National Shooting Company 16.90 2.42 52,216 0.27 - Abu Dhabi Natl Co For Buildi 0.44 0.00 - Saudi Chemical Company 31.30 0.16 128,910 Oman Oil Marketing Company 0.00 Al-Ahleia Insurance Co Sakp 427.00 0.00 250 1.13 - Abu Dhabi National Takaful C 4.40 0.00 - Fawaz Abdulaziz Alhokair & C 21.14 0.67 2,669,397 Oman National Engineering An 0.00 Wethaq Takaful Insurance Co 44.00 35.38 5,234,578 0.16 - Abu Dhabi National Oil Co Fo 2.29 1.33 65,690 Bupa Arabia For Cooperative 85.50 -0.58 85,488 Oman Investment & Finance 5.06 Salbookh Trading Co Kscp 44.40 -1.99 87,100 0.08 954,794 Abu Dhabi National Insurance 3.60 -7.69 23,428 Wafa Insurance 9.50 0.00 - Oman Intl Marketing 0.00 Aqar Real Estate Investments 64.50 0.00 6,500 0.52 - Abu Dhabi National Hotels 2.71 0.00 478,000 Jabal Omar Development Co 33.95 -0.29 501,214 Oman Flour Mills 0.00 Hayat Communications 69.00 0.00 14,750 0.60 850 Abu Dhabi National Energy Co 0.93 -6.81 3,998 Saudi Basic Industries Corp 122.80 -0.16 2,276,370 Oman Fisheries Co 1.82 Soor Fuel Marketing Co Ksc 119.00 0.85 60,070 0.06 179,113 Saudi Kayan Petrochemical Co 13.44 0.45 5,059,477 Oman Europe Foods Industries 0.00 Tamkeen Holding Co 9.00 0.00 201 1.00 - Etihad Atheeb Telecommunicat 5.35 0.00 - Oman Education & Training In 0.00 Burgan Co For Well Drilling 102.00 0.00 4,000 0.24 - Co For Cooperative Insurance 60.50 2.54 378,849 Oman Chromite 0.00 BAHRAIN Kuwait Resorts Co Kscc 61.10 -1.61 97,270 3.64 - National Petrochemical Co 26.80 0.00 183,160 Oman Chlorine 0.00 Oula Fuel Marketing Co 116.00 0.00 42,387 0.32 - Gulf Union Cooperative Insur 14.18 2.75 226,864 Oman Ceramic Company 0.00 Palms Agro Production Co 47.00 0.00 10,000 0.42 - Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 13.18 0.15 55,926 Oman Cement Co 0.00 Mubarrad Holding Co Ksc 69.50 1.02 16,100 0.30 - Basic Chemical Industries 22.88 0.09 48,223 Oman Cables Industry 0.00 Zain Bahrain Bscc 0.07 0.00 86,430 Shuaiba Industrial Co 153.00 0.00 160 0.98 - Saudi Steel Pipe Co 24.74 -1.63 3,519,807 Oman & Emirates Inv(Om)50% -9.43 United Paper Industries Bsc 0.00 0.00 - Aan Digital Services Co 17.80 1.14 797,838 0.10 7,225 Buruj Cooperative Insurance 22.44 -0.27 68,092 Natl Aluminium Products 0.00 United Gulf Holding Bsc 0.00 0.00 - First Takaful Insurance Co 40.00 0.00 1,000 0.34 - Mouwasat Medical Services Co 76.90 0.13 87,119 National Real Estate Develop 0.00 Solidarity Bahrain Bsc 0.00 0.00 - Kuwaiti Syrian Holding Co 42.00 0.00 66,500 5.00 - Southern Province Cement Co 43.95 0.34 269,318 National Pharmaceutical 0.00 Seef Properties 0.21 0.00 35,000 National Cleaning Company 57.20 5.15 394,033 0.00 - Maadaniyah 18.10 0.78 443,704 National Mineral Water 0.00 National Bank Of Bahrain Bsc 0.67 3.88 51,590 United Real Estate Company 59.00 0.00 21,141 0.10 - Yamama Cement Co 14.50 0.97 574,218 National Life & General Insu 0.00 Nass Corp Bsc 0.10 0.00 22,520 Agility 785.00 1.29 377,865 0.32 5,000 Jazan Energy And Development 14.20 0.00 149,353 National Gas Co -2.33 Khaleeji Commercial Bank 0.07 0.00 425,009 Kuwait & Middle East Fin Inv 46.00 2.68 109,131 0.25 126,152 Zamil Industrial Investment 18.48 0.33 113,993 National Finance Co 0.00 Ithmaar Holding Bsc 0.10 0.00 55,000 Fujairah Cement Industries 55.50 0.00 84,986 0.14 - Alujain Corporation (Alco) 22.76 -0.18 961,756 National Detergent Co Saog 0.00 Investcorp Bank -$Us 9.60 0.00 100,000 Livestock Transport & Tradng 185.00 0.54 35,000 0.70 - Tabuk Agricultural Developme 10.36 -0.38 175,173 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.00 0.00 - International Resorts Co 21.00 -3.23 58,150 3.92 - United Co-Operative Assuranc 11.54 -0.52 56,666 National Bank Of Oman Saog 0.55 Gfh Financial Group Bsc 0.25 0.00 300,000 National Industries Grp Hold 166.00 -0.60 4,630,338 0.18 66,829 Qassim Cement/The 37.30 1.36 230,151 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.11 1.82 57,712 Warba Insurance Co 67.00 0.15 5,989 0.08 - Saudi Advanced Industries 14.40 -1.37 625,161 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.00 0.00 - First Dubai Real Estate Deve 39.00 1.30 251,100 0.80 - Kingdom Holding Co 7.92 -0.13 143,099 Muscat Gases Company Saog 0.00 Bmmi Bsc 0.77 0.00 20,000 Al Arabi Group Holding Co 67.00 6.35 24,000 0.20 - Saudi Arabian Amiantit Co 7.00 -0.85 3,250,489 Muscat Finance 0.00 Bbk Bsc 0.45 0.00 61,408 Mobile Telecommunications Co 459.00 -0.22 1,869,362 0.09 - Al Jouf Agriculture Developm 22.10 0.09 54,220 Muscat City Desalination Co 0.00 Bahrain Telecom Co 0.30 -0.67 130,833 Eff ect Real Estate Co 18.80 0.00 370 0.13 - Saudi Industrial Development 8.53 0.59 1,034,913 Majan Glass Company 0.00 Bahrain National Holding 0.36 0.00 119,428 Tamdeen Real Estate Co Ksc 343.00 -1.15 5,005 0.18 - Riyad Bank 22.24 -0.71 1,270,183 Majan College 0.00 Bahrain Kuwait Insurance 0.00 0.00 - Al Mudon Intl Real Estate Co 28.90 -1.37 100,000 0.20 100 The National Agriculture Dev 28.40 0.18 347,659 Hsbc Bank Oman 0.00 Bahrain Islamic Bank 0.14 0.00 89,549 Kuwait Cement Co Ksc 335.00 -1.47 93,611 0.12 355,000 Halwani Bros Co 44.80 0.34 17,439 Hotels Management Co Interna 0.00 Bahrain Duty Free Complex 0.75 0.00 22,000 Sharjah Cement & Indus Devel 86.90 0.00 921,000 1.25 - Arabian Pipes Co 10.44 -2.43 1,664,277 Gulf Stone 0.00 Bahrain Commercial Facilitie 0.78 0.00 27,500 Kuwait Portland Cement Co 1,150.00 0.88 32,761 0.12 - Eastern Province Cement Co 23.80 1.45 461,287 Gulf Mushroom Company 0.00 Arab Banking Corp Bsc-$Us 0.44 1.15 55,000 Educational Holding Group 320.00 0.00 82,972 0.31 - Al Gassim Investment Holding 11.00 0.55 428,174 Gulf Investments Services 3.57 Aluminium Bahrain Bsc 0.59 0.00 72,547 Asiya Capital Investments Co 36.70 0.55 3,000 0.06 521,410 Filing & Packing Materials M 34.00 -1.16 107,545 Gulf Invest. Serv. Pref-Shar 0.00 Albaraka Banking Group 0.31 0.00 91,144 Kuwait Investment Co 132.00 -0.75 990,494 0.11 - Saudi Cable Co 49.95 1.22 1,726,363 Gulf International Chemicals 0.00 Al-Salam Bank 0.09 1.09 654,585 Burgan Bank 293.00 0.34 1,952,656 0.16 - Tihama Advertising & Public 44.00 0.11 390,955 Gulf Hotels (Oman) Co Ltd 0.00 Ahli United Bank B.S.C 0.75 0.00 9,016,092 Kuwait Projects Co Holdings 210.00 1.45 999,367 9.50 - Saudi Investment Bank/The 20.72 -3.36 527,972 Global Fin Investment 0.00 Al Madina For Finance And In 24.60 1.65 2,532,653 0.08 - Astra Industrial Group 16.54 -2.01 112,700 Galfar Engineering&Contract 4.17 Kuwait Insurance Co 370.00 5.71 20,000 0.08 3,460,856 Saudi Public Transport Co 14.90 -0.93 581,796 Galfar Engineering -Prefer 0.00 Al Masaken Intl Real Estate 66.00 0.00 30 0.39 - Taiba Holding Co 28.80 0.17 105,377 Financial Services Co. 0.00 Intl Financial Advisors 27.10 1.88 3,439,124 0.18 - Saudi Industrial Export Co 86.00 3.74 2,015,694 Financial Corp/The 0.00 First Investment Co Kscc 38.00 -2.56 3,969,350 0.10 - Saudi Real Estate Co 12.88 -0.92 968,565 Dhofar Tourism 0.00 Al Mal Investment Company 21.40 -0.47 278,216 0.49 - Saudia Dairy & Foodstuff Co 102.40 -0.39 44,713 Dhofar Poultry 0.00 Bayan Investment Co Kscc 47.40 -0.63 790,227 0.18 - National Shipping Co Of/The 32.65 -1.95 1,307,700 Dhofar Intl Development 0.00 Egypt Kuwait Holding Co Sae 360.00 0.00 121,000 0.30 - Methanol Chemicals Co 9.60 -0.41 1,339,981 Dhofar Insurance 0.00 Coast Investment Development 35.60 -0.56 793,500 0.17 - Chubb Arabia Cooperative Ins 18.74 0.54 104,437 Dhofar Generating Co Saoc 0.00 Privatization Holding Compan 60.50 1.85 533,500 0.22 - Mobile Telecommunications Co 9.43 -0.21 9,998,726 Dhofar Fisheries & Food Indu 0.00 Injazzat Real State Company 86.50 4.34 1,765,850 1.28 - Saudi Arabian Coop Ins Co 11.32 -0.70 339,726 Dhofar Cattlefeed 0.00 Kuwait Cable Vision Sak 13.00 -18.75 18,000 0.15 - Axa Cooperative Insurance 23.00 0.00 30,049 Dhofar Beverages Co 0.00 Sanam Real Estate Co Kscc 36.50 10.61 161,986 0.26 - Alsorayai Group 14.22 2.75 4,257,413 Construction Materials Ind 0.00 Ithmaar Holding Bsc 28.10 1.44 584,565 0.03 - Bank Albilad 30.75 -0.81 622,298 Computer Stationery Inds 0.00 Aviation Lease And Finance C 330.00 -2.94 26,550 0.26 - Al-Hassan G.I. Shaker Co 8.88 1.60 983,857 Bankmuscat Saog 0.49 Arzan Financial Group For Fi 29.70 -1.00 20,663 0.41 806,504 Wataniya Insurance Co 24.18 2.03 116,972 Bank Sohar 1.77 Ajwan Gulf Real Estate Co 18.10 -1.09 5,370,907 0.12 26,841 Abdullah Al Othaim Markets 70.10 -0.14 111,098 Bank Nizwa 1.14 Kuwait Business Town Real Es 46.50 1.53 263,610 0.09 1,261,080 Hail Cement 8.37 0.72 714,401 Bank Dhofar Saog-Rts 0.00 Future Kid Entertainment And 94.00 2.17 5,000 0.00 - Saudi Re For Cooperative Rei 7.86 -0.51 382,240 Bank Dhofar Saog 0.16 0.00 313,000 LATEST MARKET CLOSING FIGURES Gulf Times 8 Wednesday, January 30, 2019 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 24,536.73 +8.51 Apple Inc 156.02 -0.18 2,180,945 S&P 500 Index 2,637.46 -6.39 American Express Co 100.62 0.24 127,015 Nasdaq Composite Index 7,021.72 -63.97 Boeing Co/The 364.92 0.54 187,292 S&P/Tsx Composite Index 15,463.81 +85.19 Caterpillar Inc 126.51 1.72 685,537 Mexico Bolsa Index 43,885.52 +259.37 Cisco Systems Inc 45.81 0.13 1,291,106 Brazil Bovespa Stock Idx 96,170.15 +726.27 Chevron Corp 112.60 0.38 241,263 Ftse 100 Index 6,845.34 +98.24 Walt Disney Co/The 110.13 -0.61 226,421 Cac 40 Index 4,938.46 +49.88 Dowdupont Inc 58.19 0.10 404,373 Dax Index 11,247.39 +37.08 Goldman Sachs Group Inc 198.73 -0.50 156,981 Ibex 35 Tr 9,146.10 +83.70 Home Depot Inc 178.27 -0.87 147,636 Nikkei 225 20,664.64 +15.64 Intl Business Machines Corp 133.90 -0.28 269,657 Japan Topix 1,557.09 +1.58 Intel Corp 46.54 -0.36 1,758,782 Hang Seng Index 27,531.68 -45.28 Johnson & Johnson 129.77 0.60 358,983 All Ordinaries Indx 5,939.54 -31.51 Jpmorgan Chase & Co 104.28 0.39 819,933 Nzx All Index 1,562.80 -17.83 Coca-Cola Co/The 47.28 0.23 627,456 Bse Sensex 30 Index 35,592.50 -64.20 Mcdonald’s Corp 181.66 -1.06 135,026 Nse S&P Cnx Nifty Index 10,652.20 -9.35 3M Co 198.66 2.83 284,624 Straits Times Index 3,187.69 -11.81 Merck & Co. Inc. 73.28 0.49 667,639 Karachi All Share Index 29,601.96 +139.14 Microsoft Corp 103.25 -1.74 2,284,333 Jakarta Composite Index 6,436.48 -22.23 Nike Inc -Cl B 79.93 -0.49 237,535 Pfizer Inc 40.45 2.33 3,233,514 Procter & Gamble Co/The 93.30 -0.24 621,346 Travelers Cos Inc/The 124.41 -0.50 73,685 TOKYO Unitedhealth Group Inc 265.74 -0.39 130,207 United Technologies Corp 117.87 2.42 369,761 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 134.46 -1.13 573,237 Sumitomo Realty & Developmen 4,136.00 0.66 956,200 Verizon Communications Inc 53.47 -2.91 1,559,156 Sumitomo Metal Mining Co Ltd 3,041.00 -0.30 1,097,300 Walgreens Boots Alliance Inc 71.14 -0.61 302,994 Orix Corp 1,656.50 -1.60 5,971,300 Walmart Inc 96.55 -0.53 175,068 Daiwa Securities Group Inc 573.90 -2.89 8,462,600 Exxon Mobil Corp 71.64 0.56 661,376 Softbank Group Corp 8,200.00 1.54 6,590,400 Mizuho Financial Group Inc 178.80 0.22 87,181,400 Central Japan Railway Co 23,300.00 1.35 253,100 FTSE 100 Nitori Holdings Co Ltd 14,000.00 -0.32 264,700 T&D Holdings Inc 1,340.00 -1.36 2,217,500 Company Name Lt Price % Chg Volume Toyota Motor Corp 6,676.00 -0.19 4,638,400 Hoya Corp 6,245.00 0.34 633,900 Anglo American Plc 1,852.80 -0.61 1,850,777 Sumitomo Mitsui Trust Holdin 4,236.00 -0.28 883,800 Associated British Foods Plc 2,370.00 1.02 798,307 Japan Tobacco Inc 2,742.00 -0.09 3,849,900 Admiral Group Plc 2,098.00 1.60 138,637 Osaka Gas Co Ltd 2,190.00 2.87 1,073,600 Ashtead Group Plc 1,941.50 0.39 1,420,861 Sumitomo Electric Industries 1,541.50 -0.64 2,510,600 Antofagasta Plc 828.60 1.87 618,882 Ono Pharmaceutical Co Ltd 2,341.50 0.73 1,149,200 Auto Trader Group Plc 455.30 0.53 1,862,048 Ajinomoto Co Inc 1,896.00 2.16 2,110,600 Aviva Plc 415.40 1.39 5,436,019 Mitsui Fudosan Co Ltd 2,603.50 1.78 2,310,500 Astrazeneca Plc 5,380.00 1.03 1,109,798 Daikin Industries Ltd 11,695.00 0.00 1,016,100 A trader is seen at the London Stock Exchange. The FTSE 100 index was 1.3% higher at 6,833.93 points yesterday. Bae Systems Plc 513.20 1.74 2,835,160 Toray Industries Inc 805.20 0.35 3,101,100 Barclays Plc 161.94 1.16 9,552,560 Bridgestone Corp 4,182.00 -1.16 2,119,500 British American Tobacco Plc 2,511.00 5.73 3,652,392 Sony Corp 5,349.00 -0.45 4,300,900 Barratt Developments Plc 537.60 0.41 2,813,093 Astellas Pharma Inc 1,541.50 0.82 5,432,300 Bhp Group Plc 1,641.60 1.38 4,609,383 Jxtg Holdings Inc 571.10 -1.82 12,932,000 Berkeley Group Holdings/The 3,781.00 0.83 621,892 Nippon Steel & Sumitomo Meta 1,976.00 -0.58 2,360,100 British Land Co Plc 579.80 1.36 1,355,163 Suzuki Motor Corp 5,730.00 0.60 1,534,500 Bunzl Plc 2,399.00 1.78 334,047 London stocks rally; pound Nippon Telegraph & Telephone 4,697.00 1.47 2,952,200 Bp Plc 502.00 1.43 12,382,057 Sompo Holdings Inc 4,024.00 0.05 1,003,000 Burberry Group Plc 1,758.00 0.00 599,499 Daiwa House Industry Co Ltd 3,524.00 0.46 1,356,300 Bt Group Plc 235.70 -0.13 7,283,880 Komatsu Ltd 2,711.50 -4.56 9,376,500 Coca-Cola Hbc Ag-Di 2,505.00 -0.12 860,068 West Japan Railway Co 7,890.00 1.30 442,800 Carnival Plc 4,175.00 0.31 352,902 Murata Manufacturing Co Ltd 14,580.00 -2.11 1,668,800 Centrica Plc 138.10 2.18 6,984,895 softer ahead of Brexit votes Kansai Electric Power Co Inc 1,691.50 2.17 2,185,000 Compass Group Plc 1,610.00 1.71 996,690 Denso Corp 5,028.00 -1.06 1,042,800 Croda International Plc 4,880.00 2.72 133,464 Dai-Ichi Life Holdings Inc 1,745.50 -0.34 3,227,000 instability in key producer Venezuela. feed European asset volatility over the Crh Plc 2,212.00 -0.32 911,779 AFP Mazda Motor Corp 1,196.00 -1.20 3,565,000 Dcc Plc 6,390.00 1.11 74,856 London As British lawmakers prepared to coming weeks,” said Franklin Pichard, Mitsui & Co Ltd 1,740.00 -0.23 5,941,400 Diageo Plc 2,723.00 0.81 1,584,826 hold a series of votes that could reset director-general at Kiplink Finance. Kao Corp 7,583.00 -0.35 1,258,700 Direct Line Insurance Group 338.00 1.59 1,612,728 the course of Brexit, the pound slipped Aside from Brexit, the main focus Sekisui House Ltd 1,614.50 -3.90 4,797,100 Evraz Plc 482.70 1.90 491,053 Oriental Land Co Ltd 10,955.00 1.20 306,700 ritish stocks jumped yesterday back slightly against the euro and dol- is a two-day meeting between China Experian Plc 1,938.50 2.89 723,341 Secom Co Ltd 9,150.00 1.06 478,300 but the pound was softer before lar. and US offi cials aimed at resolving the Easyjet Plc 1,284.50 -0.66 1,045,294 Tokio Marine Holdings Inc 5,277.00 -0.15 1,557,500 fresh crunch votes on Prime MPs are set to vote from 1900 GMT long-running trade war, which has Ferguson Plc 5,084.00 0.28 213,138 B Aeon Co Ltd 2,191.00 1.34 2,156,000 Fresnillo Plc 966.40 2.66 619,692 Minister Theresa May’s revised Brexit on measures that could include pre- been a drag on equities. Fanuc Corp 18,145.00 -2.84 1,343,000 Glencore Plc 298.55 2.44 20,448,574 deal. venting a no-deal Brexit, delaying US President Donald Trump will Daito Trust Construct Co Ltd 15,220.00 1.26 240,500 Glaxosmithkline Plc 1,457.80 1.52 3,607,768 London’s benchmark FTSE 100 in- Brexit, changing the negotiated deal – meet China’s top economic envoy Liu Otsuka Holdings Co Ltd 4,417.00 1.94 1,506,400 Gvc Holdings Plc 642.50 0.86 7,311,413 dex was 1.3% higher at 6,833.93 points and even seizing control of the entire He during the talks, which start today, Resona Holdings Inc 548.00 -0.49 8,077,200 Hikma Pharmaceuticals Plc 1,530.50 1.32 133,212 Asahi Kasei Corp 1,187.00 0.30 2,936,100 as trading ended for the day. process. while US Treasury Secretary Steven Hargreaves Lansdown Plc 1,694.50 -5.70 2,012,784 Kirin Holdings Co Ltd 2,601.50 1.32 2,458,300 Among eurozone heavyweights, “The FTSE 100 is gaining ground Mnuchin said he expected “signifi cant Halma Plc 1,396.00 -0.29 654,849 Mitsubishi Ufj Financial Gro 581.40 0.05 36,036,000 Frankfurt and Paris also rose on the ... with markets looking relatively op- progress at these meetings”. Hsbc Holdings Plc 641.70 1.68 11,034,678 Marubeni Corp 822.50 0.38 4,703,900 Hiscox Ltd 1,437.00 -0.28 764,775 back of growing optimism over loom- timistic about today’s parliamentary In company news, after the mar- Mitsubishi Chemical Holdings 926.60 0.08 4,619,900 Intl Consolidated Airline-Di 642.20 3.08 6,069,467 ing talks to resolve the US-China trade votes,” said IG analyst Joshua Mahony. kets closed, French luxury giant Fast Retailing Co Ltd 50,580.00 0.82 772,900 Intercontinental Hotels Grou 4,360.00 1.34 401,354 dispute. Sterling had enjoyed healthy buying LVMH posted record sales of € 46.8bn Ms&Ad Insurance Group Holdin 3,211.00 0.34 831,300 3I Group Plc 831.80 2.59 412,193 Wall Street was slightly higher in in recent weeks on expectations that a ($53.5bn) in 2018, up 10% from the pre- Kubota Corp 1,683.50 -1.75 3,313,700 Imperial Brands Plc 2,422.50 2.58 1,324,785 Seven & I Holdings Co Ltd 4,732.00 1.18 1,466,700 mid-day trading. chaotic no-deal exit would be avoided. vious year as its markets grew in Asia, Informa Plc 685.80 1.51 2,367,672 Inpex Corp 1,018.00 -0.39 5,119,400 Oil prices rebounded after tumbling But, “given the EU’s intransigence, Europe, Japan and the United States. Intertek Group Plc 4,916.00 1.51 90,015 Sumitomo Mitsui Financial Gr 4,035.00 0.85 5,209,600 the previous day on worries over a the probability of a referendum or an Its shares had already gained 0.43% Itv Plc 131.70 2.61 6,765,500 Ana Holdings Inc 3,976.00 1.27 1,023,000 Johnson Matthey Plc 3,000.00 0.91 198,698 slowing global economy and political election remains high, and will likely to € 259.75 on the Paris stock exchange. Mitsubishi Electric Corp 1,356.50 -1.56 5,313,500 Kingfisher Plc 227.60 2.71 4,044,719 Honda Motor Co Ltd 3,245.00 -0.15 3,647,000 Land Securities Group Plc 873.60 1.20 1,177,461 Tokyo Gas Co Ltd 2,886.50 2.41 1,826,000 Legal & General Group Plc 260.40 2.00 8,175,387 HONG KONG HONG KONG Tokyo Electron Ltd 15,145.00 -2.42 1,649,300 Lloyds Banking Group Plc 57.32 0.56 66,595,037 Panasonic Corp 1,044.00 -1.79 10,465,700 London Stock Exchange Group 4,544.00 2.23 378,273 Fujitsu Ltd 7,220.00 -2.08 1,240,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Micro Focus International 1,483.00 1.61 740,775 East Japan Railway Co 9,993.00 1.35 929,300 Marks & Spencer Group Plc 293.50 1.10 2,876,590 Ck Hutchison Holdings Ltd 78.90 -0.63 6,204,034 Citic Ltd 11.80 0.00 13,907,250 Itochu Corp 1,980.00 0.00 2,494,500 Mondi Plc 1,853.00 0.84 756,948 Hang Lung Properties Ltd 16.66 1.83 9,052,802 Galaxy Entertainment Group L 51.15 0.69 11,024,268 Fujifilm Holdings Corp 4,592.00 -0.24 1,085,100 Melrose Industries Plc 163.75 1.77 5,623,451 Ck Infrastructure Holdings L 63.25 -0.86 2,241,851 Wh Group Ltd 6.82 -0.44 25,700,612 Yamato Holdings Co Ltd 2,956.00 1.42 941,200 Wm Morrison Supermarkets 234.30 0.34 3,456,384 Hengan Intl Group Co Ltd 59.45 0.85 6,176,320 Hong Kong & China Gas 17.12 0.12 13,090,946 Chubu Electric Power Co Inc 1,762.50 2.35 1,580,400 National Grid Plc 808.40 2.47 3,637,744 China Shenhua Energy Co-H 20.00 1.11 16,695,107 Bank Of Communications Co-H 6.55 0.46 30,273,967 Mitsubishi Estate Co Ltd 1,871.00 1.44 3,125,100 Nmc Health Plc 2,550.00 -0.39 233,677 Cspc Pharmaceutical Group Lt 12.98 3.02 72,602,137 China Petroleum & Chemical-H 6.42 0.16 108,768,621 Mitsubishi Heavy Industries 4,153.00 -0.57 1,371,600 Next Plc 4,880.00 2.07 278,280 Hang Seng Bank Ltd 178.60 0.00 1,308,243 Hong Kong Exchanges & Clear 242.00 -0.82 2,930,018 Shiseido Co Ltd 6,296.00 -0.65 1,753,200 Ocado Group Plc 983.00 1.76 866,608 China Resources Land Ltd 29.50 0.00 13,353,637 Bank Of China Ltd-H 3.60 0.00 226,578,771 Shionogi & Co Ltd 6,654.00 2.29 1,373,100 Paddy Power Betfair Plc 6,075.00 -0.16 122,399 Ck Asset Holdings Ltd 65.30 0.23 5,194,841 Hsbc Holdings Plc 65.95 0.15 20,657,393 Recruit Holdings Co Ltd 2,808.00 0.59 3,252,100 Prudential Plc 1,485.50 -0.03 2,818,764 Sino Biopharmaceutical 6.38 6.33 102,947,960 Power Assets Holdings Ltd 52.95 -1.03 6,950,187 Japan Airlines Co Ltd 3,971.00 1.15 1,235,500 Persimmon Plc 2,384.00 1.19 1,149,806 Henderson Land Development 43.95 0.57 3,337,611 Mtr Corp 43.55 1.28 3,378,213 Nitto Denko Corp 6,070.00 0.38 1,197,700 Pearson Plc 915.40 2.05 774,905 Aia Group Ltd 68.65 -1.79 23,856,227 China Overseas Land & Invest 28.20 -0.53 17,429,505 Kddi Corp 2,701.00 0.86 6,785,800 Reckitt Benckiser Group Plc 5,819.00 2.03 735,533 Ind & Comm Bk Of China-H 5.95 0.00 225,964,956 Tencent Holdings Ltd 342.40 0.23 15,798,763 Rakuten Inc 846.00 0.83 4,081,600 Royal Bank Of Scotland Group 239.30 0.34 7,059,639 Want Want China Holdings Ltd 6.24 1.79 11,427,716 China Unicom Hong Kong Ltd 8.97 -0.11 47,596,344 Kyocera Corp 6,085.00 -0.23 1,051,500 Royal Dutch Shell Plc-A Shs 2,239.50 1.20 3,684,958 Sun Hung Kai Properties 129.70 1.33 5,343,430 Link Reit 85.45 1.24 6,203,224 Nissan Motor Co Ltd 918.50 -0.20 7,888,900 Royal Dutch Shell Plc-B Shs 2,252.50 1.15 3,826,242 New World Development 11.88 0.68 11,808,854 Sino Land Co 14.08 0.14 4,508,015 Relx Plc 1,647.00 2.01 2,376,163 Geely Automobile Holdings Lt 12.66 -4.09 106,274,817 Swire Pacific Ltd - Cl A 90.95 0.17 1,480,612 Rio Tinto Plc 4,065.00 3.05 2,954,701 SENSEX Rightmove Plc 474.20 0.58 1,213,344 Sands China Ltd 37.10 1.09 8,976,546 GCC INDICES Rolls-Royce Holdings Plc 872.00 1.61 1,504,086 Wharf Real Estate Investment 52.20 0.68 2,364,102 Rsa Insurance Group Plc 520.80 1.13 1,218,032 Company Name Lt Price % Chg Volume Clp Holdings Ltd 90.90 -0.05 3,384,746 Indices Lt Price Change Rentokil Initial Plc 334.20 0.63 1,530,168 Country Garden Holdings Co 10.26 -0.58 31,255,281 Doha Securities Market Adani Ports And Special Econ 349.25 7.10 9,816,333 10,722.49 +17.76 Sainsbury (J) Plc 285.10 2.19 3,620,733 Aac Technologies Holdings In 48.90 2.41 5,053,593 Saudi Tadawul Asian Paints Ltd 1,393.30 1.00 1,061,762 8,581.48 -42.45 Schroders Plc 2,635.00 1.54 109,663 Shenzhou International Group 92.35 1.43 2,088,500 Kuwait Stocks Exchange Axis Bank Ltd 660.75 0.68 8,302,420 4,766.66 -16.92 Sage Group Plc/The 630.00 0.29 1,280,908 Ping An Insurance Group Co-H 73.50 -0.41 33,357,469 Bahrain Stock Exchage Bajaj Finance Ltd 2,515.55 2.32 6,118,833 1,385.80 +6.53 Segro Plc 652.60 1.49 841,555 China Mengniu Dairy Co 24.40 -2.59 14,198,800 Oman Stock Market Bharti Airtel Ltd 307.85 0.88 2,893,056 4,172.36 +12.42 Smurfit Kappa Group Plc 2,280.00 3.92 270,639 Sunny Optical Tech 75.85 -0.91 5,816,394 Abudhabi Stock Market Bharti Infratel Ltd 297.35 3.50 6,402,177 5,033.05 -18.03 Standard Life Aberdeen Plc 260.05 0.19 5,180,760 Boc Hong Kong Holdings Ltd 30.00 -0.99 15,162,818 Dubai Financial Market Bajaj Auto Ltd 2,567.65 0.08 424,856 2,566.10 -4.84 Ds Smith Plc 335.80 5.30 3,228,227 China Life Insurance Co-H 19.26 -1.63 52,190,792 Bajaj Finserv Ltd 6,233.05 3.01 578,958 Smiths Group Plc 1,445.00 1.65 747,128 Bharat Petroleum Corp Ltd 344.90 -1.09 3,099,307 Scottish Mortgage Inv Tr Plc 465.75 -0.59 1,283,369 Cipla Ltd 505.05 2.62 2,675,481 Smith & Nephew Plc 1,416.50 0.78 767,081 Coal India Ltd 222.55 -1.18 3,850,399 Spirax-Sarco Engineering Plc 6,385.00 1.27 47,554 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Dr. Reddy’s Laboratories 2,666.45 1.59 867,696 Sse Plc 1,151.50 2.08 1,400,027 Eicher Motors Ltd 18,877.25 -5.55 193,198 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Standard Chartered Plc 626.90 0.59 2,157,670 Gail India Ltd 323.60 -2.88 6,076,778 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank St James’s Place Plc 945.20 0.70 753,049 Grasim Industries Ltd 733.50 0.10 991,737 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Severn Trent Plc 1,943.50 1.73 431,305 Hcl Technologies Ltd 988.45 1.09 2,366,569 this data.” Tesco Plc 222.00 0.45 11,539,554 Housing Development Finance 1,922.30 -1.26 4,035,877 Tui Ag-Di 1,183.00 -0.96 2,311,594 Hdfc Bank Limited 2,057.60 -1.27 3,690,697 Taylor Wimpey Plc 166.50 1.74 7,012,850 Hero Motocorp Ltd 2,633.30 1.34 666,747 Unilever Plc 4,025.50 2.14 1,390,467 Hindalco Industries Ltd 199.55 -0.23 4,458,350 CURRENCIES United Utilities Group Plc 816.60 2.25 765,096 Hindustan Petroleum Corp 235.30 -1.63 4,173,899 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Vodafone Group Plc 135.52 0.06 62,507,234 DINAR DINAR Hindustan Unilever Ltd 1,756.70 0.79 1,319,822 John Wood Group Plc 533.20 2.07 681,278 Icici Bank Ltd 346.85 0.96 20,738,442 Wpp Plc 879.40 0.85 1,986,132 Indiabulls Housing Finance L 698.60 -0.10 17,522,339 Whitbread Plc 4,937.00 0.86 285,694 Indusind Bank Ltd 1,461.85 1.26 1,388,542 Infosys Ltd 727.90 -0.01 6,760,819 Indian Oil Corp Ltd 137.35 -0.51 8,366,609 TOKYO Itc Ltd 278.45 1.35 6,998,389 Jsw Steel Ltd 270.95 1.20 4,113,613 Kotak Mahindra Bank Ltd 1,251.40 -0.72 2,591,590 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,278.05 -1.72 3,685,535 Hitachi Ltd 3,371.00 -1.63 2,997,400 Mahindra & Mahindra Ltd 669.65 -0.51 4,860,919 Takeda Pharmaceutical Co Ltd 4,442.00 -1.49 11,995,200 Maruti Suzuki India Ltd 6,526.95 0.24 1,101,399 Jfe Holdings Inc 1,875.50 0.29 2,396,000 Ntpc Ltd 138.50 -0.07 8,106,901 Sumitomo Corp 1,661.50 -0.18 2,898,700 Oil & Natural Gas Corp Ltd 141.05 -0.42 7,282,910 Canon Inc 3,119.00 -0.45 3,000,900 Power Grid Corp Of India Ltd 185.60 -1.17 9,826,512 Nintendo Co Ltd 33,460.00 1.67 2,510,400 Reliance Industries Ltd 1,210.65 -1.54 9,328,866 Eisai Co Ltd 8,716.00 1.00 739,900 State Bank Of India 280.60 -0.36 17,435,611 Isuzu Motors Ltd 1,601.50 -0.31 1,828,800 Sun Pharmaceutical Indus 422.40 2.59 7,472,930 Unicharm Corp 3,220.00 -0.77 1,433,000 Tata Steel Ltd 443.80 -0.43 5,225,724 Shin-Etsu Chemical Co Ltd 9,086.00 -0.36 2,347,300 Tata Consultancy Svcs Ltd 1,982.75 1.42 2,557,626 Smc Corp 35,630.00 -2.92 190,800 Tech Mahindra Ltd 731.50 -0.50 3,100,457 Mitsubishi Corp 3,112.00 0.13 2,498,200 Titan Co Ltd 966.10 0.78 1,411,027 Asahi Group Holdings Ltd 4,373.00 2.72 1,288,900 Tata Motors Ltd 173.60 0.75 6,141,180 Keyence Corp 54,480.00 -0.89 440,900 Upl Ltd 760.30 0.03 1,134,462 Nidec Corp 12,555.00 -2.83 1,526,200 Ultratech Cement Ltd 3,409.65 1.04 754,743 Nomura Holdings Inc 442.10 -2.26 14,276,200 Vedanta Ltd 192.65 0.60 6,230,069 Daiichi Sankyo Co Ltd 3,761.00 0.75 1,218,600 Wipro Ltd 359.40 1.20 4,620,099 Subaru Corp 2,530.00 1.10 3,214,600 Yes Bank Ltd 202.90 -2.22 76,651,017 Ntt Docomo Inc 2,590.00 0.68 3,559,600 Zee Entertainment Enterprise 377.40 1.10 37,435,712 Gulf Times Wednesday, January 30, 2019 13 BUSINESS

Total makes gas discovery at North Sea Volkswagen aims for Traton Glengorm prospect

Reuters truck IPO in April: Sources Paris Total and partners including Sources say Traton may publish China’s CNOOC have made a intention to float in March; shares significant new gas discovery worth €5bn-6bn ‘may be’ sold in off the coast of Britain at the IPO; Traton may also ‘co-list’ in North Sea Glengorm prospect, Stockholm with recoverable resources esti- mated at around 250mn barrels Reuters of oil equivalent (boe). Frankfurt Total said further drilling and testing would be carried out to appraise the resources and olkswagen is aiming to list its productivity of the reservoir. trucks unit Traton in April and “Glengorm is another great Vexpects to sell shares worth success for Total in the North €5bn to €6bn ($5.7bn to $6.9bn), two Sea, with results at the top people close to the matter said. end of expectations and a Plans for a stock market listing, po- high condensate yield in ad- tentially Germany’s biggest new share dition to the gas,” said Kevin off ering in 2019, have not been fi nal- McLachlan, Total’s senior vice ised and depend on market conditions, president for Exploration, in a these people said. statement. Analysts would be given until early The discovery is close to exist- March to value the earnings power of ing infrastructures operated the maker of vehicles under the MAN, by Total and off ers tie-back Scania and VW brands, the two sources possibilities, such as the said, adding that the listing was ex- Elgin-Franklin platform and the pected before Easter, which falls on Culzean project, scheduled to April 21 this year. start production this year, the Traton chief executive Andreas Ren- company said. It also presents schler did not comment when asked upside potential with several about the plans yesterday, but told other prospects identified on analysts at the fi rm’s capital markets the same block, it added. day: “We want to be the most profi table Britain’s Oil and Gas Authority vehicle player and to have access to all (OGA) welcomed the discov- global profi t pools.” ery as it underlined the area’s If markets are deemed favourable, potential. Volkswagen would publish a so-called “Our official estimate is that intention to fl oat (ITF) in the second Attendees sit beside a Traton logo outside the Volkswagen exhibition area at the IAA Commercial Vehicles Show in Hanover, Germany, on September 19, 2018. The initial there still remains between 10 half of March followed by the listing public off ering (IPO) is expected to give Traton an enterprise value of about €30bn, with equity expected to be valued at about €25bn, sources say. and 20bn barrels plus to be four weeks later, the sources added. recovered, so there is every Volkswagen declined to comment shares worth €5bn to €6bn, they “Stockholm would help Traton attract business by integrating its MAN and JP Morgan, Goldman Sachs, Deut- chance of yet more significant about any such plans. said. “If markets are slightly volatile, local, long-term oriented investors in Scania divisions to challenge Daimler sche Bank and Citi have been mandated finds, provided industry can The initial public off ering (IPO) is Volkswagen will likely sell a smaller Sweden,” one source said. and Volvo. as global co-ordinators for the listing. increase exploration drilling,” expected to give Traton an enterprise stake,” one of them said. Traton might also bring in a so-called A fl otation could allow Volkswagen Barclays, Bank of America, BNP, said Andy Samuel, chief execu- value of about €30bn, with equity ex- Traton aimed to fl oat on the Frank- cornerstone investor before the listing, Truck & Bus to build a war chest to SEB, Unicredit are acting joint book- tive of the Oil & Gas Authority. pected to be valued at about €25bn, the furt stock exchange with a possible although no deal had been struck, the deepen its relationship with Navistar, a runners, while Commerzbank, HSBC, Total holds a 25% working inter- sources said. secondary listing in Sweden, the home sources said. US truck maker in which it now owns a Societe Generale and LBBW are acting est in Glengorm. Volkswagen was expected to sell of its Scania brand, the sources said. VW plans to build a global trucks 16.85% stake. as co-leads. Gulf Times 14 Wednesday, January 30, 2019 BUSINESS

CORPORATE RESULTS Austrian motorbike maker KTM profits race to record

reflecting the disposal of its lighting business, but But still sales in the region grew about 7% to underlying profit rose while sales were steady. $3.10bn. The company, which is focusing its business on However, weak demand in Europe, Middle East and medical equipment and services, said its full-year Africa pulled down its overall net sales by about net profit was down 41.3% at €1.09bn ($1.25 billion) 0.7% to $5.66bn, missing analyst average estimate on sales of €18.12bn, up nearly two percent. of $5.76bn. Philips said however that 2018 net profit on its con- In October, the US manufacturer had said it would tinuing activities jumped more than 27% to €1.31bn. exit a number of loss-making businesses in Europe “We achieved our objectives for the year,” company in a bid to restore profitability. chief Frans van Houten said in a statement. In a post-earnings presentation, the company said “While Philips continues to face global geopolitical it expected “uncertain external environment and challenges and market volatility, for which we are volatility to continue”. taking the necessary measures, we see an improve- The company’s fourth-quarter profit beat analysts’ ment in our performance dynamic,” Van Houten estimates, boosted by higher margins in North added. America. The company reaff irmed its 2019 targets of a 4.0- Excluding items, it earned $4.75 per share and beat 6.0% increase in sales on a comparable basis, plus the analyst average estimate of $4.23 per share. an improved operating margin. Vale Best known for the making light bulbs, electrical appliances and television sets, Philips has dropped Brazilian mining giant Vale lost more than $18bn of these activities in face of fierce competition from its value on Monday in a dramatic share plunge on Asia. the Sao Paulo stock exchange as investors reacted It focuses now more on high-end medical and to the collapse of one of its dams that killed scores health technology as well as household appliances. and left hundreds missing. The group, which sold its first light bulb a few years Vale, the world’s biggest iron ore miner, has seen after it was founded in 1891, listed its Philips Light- its reputation severely tarnished by the deadly ing division, known as Signify, on the Amsterdam accident — the second involving a company-owned stock exchange in March last year. mine in the southeastern Brazilian state of Minas Domino’s Gerais in just over three years. The company announced it was suspending divi- Domino’s Pizza, Britain’s biggest pizza delivery dend payments to shareholders and performance- firm, said yesterday it expects full-year underlying related bonuses to executives. pretax profit at the lower end of a consensus range, Brazilian authorities separately have frozen a total despite selling a record number of pizzas on the of 11bn reais — around $3bn — in Vale assets in Friday before Christmas. anticipation of compensation it will likely have to Casual dining chains in Britain continue to face fork out. higher expenses from a rise in the national living A tsunami of mineral-laced mud broke through a wage and food costs amid a slowdown in con- dam at an iron-ore mine owned by Vale near the European’s leading motorbike maker, KTM, booked 15.5% following corporate tax reform in the United gramme,” chief financial off icer Luka Mucic said. sumer spending due to uncertainty about Brit- town of Brumadinho on January 25. record profits last year as it lifted sales and ex- States. The number of job cuts would be “slightly higher” ain’s impending exit from the European Union. The off icial toll from the disaster so far stands at 60 panded its market share, according to preliminary Pfi zer than during a previous overhaul in 2015, he added, Domino’s Pizza, a franchise of US company dead and 292 missing. figures obtained by AFP yesterday. when the group shifted focus to “cloud” computing Domino’s Pizza Inc, said it plans to invest in other Vale said it had passed a structural safety inspec- KTM, based in Mattighofen close to the Ger- Pfizer Inc forecast 2019 profit and sales below Wall from traditional software. European markets, but added that the move would tion four months ago, which was confirmed by Tuev man border, said its net profit climbed by 28% to Street estimates yesterday as the company expects “We are expecting 4,400 job cuts, more than the hit overall profitability in the short term. Sued, the German firm that carried it out. €108mn ($124mn) in 2018 as unit sales jumped by to take a blow from a stronger dollar and as well as 3,000 in 2015 and we think that Germany and the Sales in its international markets rose 1.6% on a Vale, headquartered in Rio de Janeiro, made $5.5bn 10% to 261,454 motorcycles. the loss of patent on its blockbuster pain treatment US will be the most impacted,” spokesman Ben- constant currency basis during the fourth quarter. in profits, on revenue of $34bn, in 2017, the last full- Turnover edged up by 2% to €1.56bn. Lyrica this year. jamin Nickel told AFP. “Our international businesses off er significant long year results available. And the group, whose brands include KTM and The drug maker, along with partner Eli Lilly & Under the new turnaround plan, executives plan to term potential, but we have experienced growing That net result was 38% higher than the previous Husqvarna, said its market share grew to 11.7% from Co, also reported data from a late-stage trial of spend between €800mn and €950mn ($915-$1.1bn) pains this year, particularly in Norway, where we year, evidence of a bounce back after a sharp com- 8.9%. painkiller tanezumab, that some analysts said could on restructuring in 2019 “to further simplify com- have faced business integration challenges,” chief modities slump in 2015 that forced the company KTM said it is targeting annual sales of 400,000 raise safety concerns. pany structures and processes”. executive off icer David Wild said. into cost-cutting. units by 2022, which would represent an increase Pfizer has outlined tanezumab, an experimental They aim to realise “a minor cost benefit” this year, The company said it expects its international opera- Harley-Davidson of 50% over the 2018 figures, with growth coming non-opioid drug for osteoarthritis pain, as one of before slashing annual outgoings by up to €850mn tions, which includes countries such as Germany from emerging economies such as India. its blockbuster drugs it intends to win approval for from 2020. and Luxembourg, to break even in 2019. Harley-Davidson Inc reported a lower-than-expect- KTM acquired the Husqvarna brand from German within five years. SAP’s restructuring announcement came as it The popularity of the company’s cheeseburger ed quarterly profit yesterday amid a prolonged rival BMW in 2013. Credit Suisse analyst Vamil Divan said the 2019 reported net profit added just 1% last year to reach pizza fuelled record sales of more than 535,000 struggle to revive demand for its bikes in the United It produces the majority of its motorbikes at the forecast, along with the data on tanezumab that €4.1bn. pizzas, which equates to 12 every second, on the States where sales dived yet again, sending its plant in Mattighofen and exports more than 90% of will likely not ease any outstanding safety concerns The group preferred to play up operating, or under- Friday before Christmas. shares down over 6%. its output. on the drug, will lead to some pressure on Pfizer lying profit that surged 17%, to €5.7bn, on revenues Sales at UK stores open for over a year rose 4.5% The Milwaukee-based company reported an ad- The group, which employs a workforce of 4,300, is shares. up 5.0% at €24.7bn. during the 13-week period ended December 30, as justed profit of $0.17 per share in the fourth quarter. listed on the Vienna stock exchange, but remains To counter revenue loss from generic competition The result “sets us up perfectly for continued cash-conscious diners in the firm’s home market Analysts surveyed by Refinitiv, on average, ex- 62% owned by its chief executive, Stefan Pierer. to Lyrica, the largest US drugmaker has been in- strong profitable growth in 2019 and beyond,” are increasingly ordering in through smartphones. pected the profit to come in at $0.28 per share. Verizon vesting heavily in its portfolio of cancer treatments Mucic said. Underlying pretax profit was previously expected Revenue from motorcycles and related products and expects to gain approval for a new heart drug One area the group hopes will stoke the bottom to be between 93.9mn pounds and 98.2mn pounds fell 8.7% to $955.6mn. Verizon Communications Inc yesterday gave full- later this year. line is so-called “experience management” after it ($129.15mn — $123.50mn), the company said. Retail sales in the United States, which accounts for year 2019 profit guidance that disappointed inves- The drug maker’s robust pipeline is seen by ana- recently snapped up Californian firm Qualtrics for It reported underlying pretax profit of 96.2mn more than half of the company’s sales, fell 10.1% in tors, and missed analysts’ fourth quarter revenue lysts as key to helping it ride out upcoming patent $8bn. pounds in 2017. the fourth quarter ended December 31, more than estimates, though it beat on profit. expirations and fighting increased competition Invented in the 1990s, the technique calls for col- Whirlpool the 8.3% decline expected by analysts. The company forecast that adjusted earnings per from cheaper generics. lecting data on customers, employees, brands and Harley’s demographic challenges in the domestic share for this year would be similar to 2018, and In the quarter, sales of breast cancer drug Ibrance products, aiming to sharpen firms’ understanding US home appliances maker Whirlpool Corp said on market are well documented — core customers are that it expected low-single-digit percentage growth rose 58% to $1.13bn, helped by demand in Europe, of how they are perceived. Monday its 2019 adjusted profit and revenue are growing older and outreach eff orts to attract new for total revenue for the full year. but came in slightly below the consensus estimate In 2018, SAP continued its transformation away likely to rise less than analysts’ expectations due to and young riders have yet to show results. Verizon chief financial off icer Matt Ellis said during of $1.16bn, according to Credit Suisse. from traditional one-off sales of business software a higher tax bill, costs and a strong dollar, sending To off set weak demand in the domestic market, it is the earnings call with analysts that the company In the fourth quarter, Lyrica brought in quarterly licenses to cloud computing, under which it its shares down 6.5% after the bell. trying to grow sales overseas. expects earnings per share growth to be reduced sales of $1.32bn, compared with a consensus esti- charges customers a subscription fee to process Whirlpool has been grappling with high costs as However, those eff orts have yet to bear fruits as by 24 cents to 28 cents, due to a higher eff ective tax mate of $1.21bn. data on the firm’s computers. a trade dispute between United States and China sales in foreign markets fell 2.6% in the latest quar- rate and increased interest expense. The company earned 64 cents per share excluding Revenue from cloud subscriptions and support has made imported steel and aluminium more ter from a year ago. Ellis said Verizon’s business was still strong items, just above the average analyst estimate of 63 grew 32% over the year, to almost €3.8bn. expensive, forcing it to raise prices for its washing After missing its shipments guidance last year, enough to offset the “non-operational items” and cents per share. Meanwhile software licenses and support revenue machines and kitchen appliances. Harley expects to ship up to 222,000 motorcycles balance out to the same earnings per share level Revenue rose about 2% to $13.98bn, also beating shrank 1%, although it remains a far bigger source The company said it expects about $300mn more globally this year, its lowest in eight years. from 2018. the estimate of $13.90bn. of income for now at almost €15.8bn. in expenses due to higher import duty on raw Analysts on average were expecting 2019 ship- Total operating revenue rose 1% to $34.28bn in the Pfizer forecast 2019 adjusted earnings of $2.82 to Across the whole group, SAP aims to increase materials used in its appliances. ments of 228,190 motorcycles, according to fourth quarter, missing the average analyst esti- $2.92 per share and revenue of $52bn to $54bn. revenue from its cloud and software activities A higher tax rate is also expected to reduce its full- research firm Consensus Metrix. mate of $34.44bn, according to Refinitiv data. The outlook includes a $2.6bn hit from patent to between 22.4 and €22.7bn in 2019 — up from year earnings by 30 cents per share, the company To woo the next generation of riders, the company The company forecast an increase in 2019 capital expirations and about $1bn from forex losses, the 20.66bn booked last year under non-IFRS account- said. is betting on the small but growing market for spending to the range of $17bn to $18bn, includ- company said. ing standards, which exclude some costs. Whirlpool’s disappointing forecasts follows weak electric bikes. ing the expansion of the commercial launch of its Analysts on average were expecting earnings of Still in non-IFRS terms, the group aims for operating guidance from industrial bellwether Caterpillar and Its LiveWire electric bike is now available for pre- 5G wireless technology, up from $16.7bn last year. $3.04 per share and revenue of $54.25bn. profit of 7.7 to €8.0bn this year, up from €7.16bn in chipmaker Nvidia, both of which blamed slowing order in the United States at a price of $29,799, with Verizon launched 5G home internet in four Siemens Gamesa 2018. demand from world’s No.2 economy, China. delivery expected this fall. cities last October, and claimed to be the first SAP stock rebounded were trading down 2.4% at The company said it expects 2019 adjusted profit But with electric motorcycles available at around to offer a commercial 5G product in the United Wind turbine maker Siemens Gamesa forecast 90.15 euros around 12:40 pm in Frankfurt (1140 to be in the range of $14 to $15 per share compared $10,000, along with a worsening outlook for the States amid heated competition between major better profitability and said prices were stabilising GMT) — while remaining the worst performer on with analysts’ expectation of $15.99 and revenue of economy and rising interest rates, the bike might carriers. yesterday, sending its shares as much as 9% higher. the DAX index of blue-chip shares. $20.3bn, below Wall Street estimate of $20.76bn, not be aff ordable for many riders. Verizon, which has 118mn wireless customers, said The company formed by a merger between Spain’s Philips according to IBES data from Refinitiv. While the pricing strategy is aimed at retaining it added a net 653,000 postpaid phone subscrib- Gamesa and the wind power business of Siemens The company said higher raw material costs and Harley’s “premium” tag as well as preserving profit ers during the fourth quarter, beating the average stuck to its guidance for an earnings before interest Dutch electronics giant Philips said yesterday its tariff s resulted in softer demand in North America, margins, analysts and some dealers reckon it is estimate of 355,600, according to research firm and tax (EBIT) margin of 7 to 8.5% for the full year. 2018 headline earnings plunged more than 40%, its biggest segment. hurting sales. FactSet. Chief executive Marcus Tacke told analysts on a Lockheed Martin conference call he expects a stronger second half to the year, after the company said its EBIT margin Lockheed Martin Corp, the Pentagon’s top weap- for the October-December quarter fell to 6.1% from ons supplier, yesterday forecast 2019 profit below 6.3%. estimates and reported that quarterly margins Siemens Gamesa, which vies with Denmark’s Vestas slipped at the unit that makes the radar-evading to lead the global wind turbine sector, said revenue F-35 fighter jet and C-130 transport plane. for the period rose to €2.26bn from €2.13bn a year But Lockheed and other US weapons makers earlier. sales are expected to benefit from stronger The company said profitability had been dragged global demand for fighter jets and munitions and down by pricing on a backlog of orders struck in higher US defence budgets in fiscal 2020. 2018, a year in which they fell 9%, and a worse During the quarter, Lockheed’s order backlog grew performance by its onshore unit. 19% to $130.5bn from $109bn. Allergan Operating margins at the aeronautics division, Lockheed’s biggest, fell to 10.6% in the fourth quar- Allergan Plc yesterday forecast 2019 revenue below ter from 11.6% a year earlier. analysts’ estimates, as the company faces impend- The company cited lower sales in the C-130 trans- ing competition for its second-most important port aircraft programme. medicine, the eye drug Restasis. Operating margins measure how much profit a Allergan has warned that profits will be hurt once company makes on a dollar of sales. generics of Restasis hit the market after a bid to Lockheed expects full-year profit to range between protect that drug’s patents met regulatory scrutiny. $19.15 and $19.45 per share, below the average Sales of Restasis fell 17.7% to $341.6mn in the fourth analyst estimate of $19.55, according to IBES data quarter. from Refinitiv. Excluding items, the company earned $4.29 per Sales at the company’s missiles and fire control share, beating analysts’ expectations of $4.15 per business, which makes PAC-3 missiles for the Pa- share, according to Refinitiv data. triot missile defence system and the Terminal High Net revenue fell to $4.1bn from $4.33bn. Altitude Area Defence system (THAAD), designed The company forecast full-year 2019 revenue of to shoot down short-, medium-, and intermediate- $15bn-$15.3bn, compared with analysts’ estimates range ballistic missiles, rose 22% to $2.4bn during of $15.40bn. the fourth quarter. SAP The company earned $4.39 per share from continu- ing operations, just short of estimates of $4.40 per German software giant SAP said yesterday it would share. slash 4,400 jobs in a billion-euro restructuring plan Net sales rose 4.1% to $14.41bn. after profits stagnated in 2018, while insisting it was During the quarter Lockheed had an eff ective tax on track to grow revenues and earnings this year. rate of 13.6% which gave it a full-year tax rate of “We are talking about a completely voluntary pro- Gulf Times Wednesday, January 30, 2019 15 BUSINESS

EU urges Internet fi rms to intensify fake news fi ght

AFP and analysis on propa- Brussels ganda campaigns and promote what the bloc says will be objective he EU yesterday communications about urged advertis- its values and policies. Ting trade asso- Andrus Ansip, the EU’s ciations and US Internet vice president for the dig- giants to intensify the ital single market, said: fi ght against disinfor- “Signatories (to the code mation campaigns from of practice) have taken suspects such as Russia, action, for example giv- ahead of European elec- ing people new ways to tions in May. get more details about the The European Com- source of a story or ad. mission said Google, Face- “Now they should book, Twitter, Mozilla and make sure these tools trade groups have made are available to everyone “some progress” toward across the EU, moni- meeting their pledges to tor their effi ciency, and fi ght fake news by remov- continuously adapt to ing fake accounts and new means used by those checking suspect sites. spreading disinforma- “But we need to go tion,” the former premier further and faster be- of Estonia. fore May,” when a new Ansip, whose country European Parliament is is especially wary of Mos- elected, the EU’s secu- cow after decades under rity commissioner Julian Soviet rule, has warned King said. “We don’t that Russia embraces dis- want to wake up the day information in its military after the elections and doctrine and strategy to realise we should have divide the West. PG&E employees work on gas lines in Paradise, California. PG&E Corp and its Pacific Gas & Electric Co utility filed for Chapter 11 bankruptcy in San Francisco as investigators probe whether done more.” Moscow has repeat- its equipment ignited the deadliest fire in state history. The San Francisco-based company listed $51.7bn in total debts and $71.4bn in assets. His remarks came as edly denied allegations the Commission, the of hacking and med- 28-nation European dling in foreign elections Union’s executive arm, through disinformation issued its fi rst report on over recent years. how well internet actors The Commission has were doing in meeting warned it could take pledges made late last “regulatory” action if year in a code of practice the online platforms fail PG&E fi les for bankruptcy to fi ght disinformation. to honour the pledges The Commission they signed in a code of said “additional action practice last year. is needed to ensure full On the eve of the transparency of political Commission’s progress ads” by the start of the report, Facebook on campaign in EU member Monday unveiled new with more than $50bn debt countries for the elec- tools to counter online tions. It also urged plat- political meddling. Bloomberg “We did not make this decision clude Bank of New York Mellon achieve California’s ambitious as a quick utility bankruptcy. And it forms to provide access The US tech giant’s San Francisco lightly, as we understand that mil- Corp, Citibank, Mizuho and Bank climate goal of getting all its elec- creates a lot of uncertainty for eve- to their data for research vice president, former lions of our customers rely on us of America Corp Bank of New York tricity from carbon-free sources rybody involved.” purposes, and to ensure British deputy prime and will have questions,” PG&E’s Mellon holds the largest unsecured by 2045. At the same time, New- Setting the stage for a potential cooperation between the minister Nick Clegg, series of devastating wild- interim chief executive offi cer, John claim, totalling $3bn, court fi lings som chose not to take measures battle over power contracts, PG&E platforms and member said in Brussels that the fi res that killed more than R Simon, said in a letter to custom- show. The fi rst meeting of creditors drastic enough to avoid a bank- has asked the judge to rule that the countries through the methods would become A100 people and scorched ers. “The power and gas will stay has been set for February 26. ruptcy filing, and regulators ac- court has the exclusive right to re- Rapid Alert System. available in late March hundreds of thousands of acres in on. We will continue to provide you PG&E’s demise serves to under- tually began a process to evaluate ject existing power purchase agree- Planned for March, and help “make political California over the course of two with reliable electric and natural score the increasing vulnerabil- whether to break up or take over ments. NextEra Energy Inc is fi ght- the system will allow advertising on Facebook years just brought one of America’s gas service, and that will not change ity utilities face to natural disasters the utility. ing to keep its contracts with PG&E members to share data more transparent”. largest utilities to its knees. as a result of this process. To be very such as wildfi res and hurricanes A bankruptcy will probably re- from being cancelled as part of the PG&E Corp and its Pacifi c Gas & clear, we are not ‘going out of busi- that are becoming more extreme. sult in higher bills for customers bankruptcy and took up the issue Electric Co utility fi led for Chap- ness.”’ That’s especially the case in Cali- because it will be more expensive with the Federal Energy Regula- ter 11 bankruptcy in San Francisco The only time the company has fornia, where state law holds utili- for PG&E to borrow the money it tory Commission last week. The Apple’s Cook calls for privacy as investigators probe whether its ever faced such dire fi nancial straits ties liable for damages even if they needs to make infrastructure in- commission ruled in response that action as reforms in focus equipment ignited the deadliest fi re was during the 2001 energy crisis, aren’t found to be negligent. vestments it needs to keep the it shares “concurrent jursidiction” in state history. The San Francisco- when it was forced to place its util- While the company’s been lights on. The company supplies with bankruptcy courts. based company listed $51.7bn in ity unit in bankruptcy protection. cleared of fault for the deadliest natural gas and electricity to about Here are other highlights from Bloomberg company executive has total debts and $71.4bn in assets. A In a twist, the same judge who over- of the wildfi res that devastated 16mn people in Northern and Cen- the bankruptcy fi ling: New York called for action on the Chapter 11 fi ling allows a company saw the company’s last Chapter 11 California’s wine country in 2017, tral California. • PG&E says it intends to pay topic. Earlier this month, to keep operating while it works out fi ling, Dennis Montali, has been as- investigators have tied PG&E’s As part of the bankruptcy, PG&E suppliers in full under “normal in a column published a plan to turn the business around signed to the latest. equipment to more than a dozen is seeking approval from the court terms.” Apple Inc CEO Tim Cook by Time, Cook called and pay off creditors. The utility giant’s fi nancial cri- of the other fi res. They’re looking to enter into an agreement for • Weil, Gotshal & Manges LLP took to Twitter on Mon- on the Federal Trade California’s wildfi res have in the sis had some of the biggest names at PG&E’s power lines as a possible $5.5bn in debtor-in-possession fi - and Cravath, Swaine & Moore LLP day to join a number of Commission to track data past saddled utilities with millions in the investment world working ignition source for the Camp Fire, nancing. That would free up the are PG&E’s legal counsel. voices calling for greater brokers and monitor how of dollars in damages, but never up last-minute fi nancing packages which killed 86. The company said capital it needs to keep operations • Lazard is its investment banker privacy protections. they use people’s digital have the blazes exacted such a mas- that they said would have rescued on Tuesday that it “continues to going through the Chapter 11 proc- and AlixPartners LLP is the re- “We must keep fighting information. sive fi nancial toll from a company the company from insolvency. A believe that the Chapter 11 proc- ess. It listed J P Morgan Chase & Co, structuring adviser. for the kind of world we Elsewhere on the day — creating one of the country’s group including Paul Singer’s El- ess will facilitate the orderly, fair Bank of America, Barclays Plc, Citi- • James A Mesterharm, a man- want to live in. On this being dubbed ‘Data largest utility bankruptcies of all liott Management Corp was said and expeditious resolution of the group Inc, BNP Paribas SA, Credit aging director at AlixPartners, will #DataPrivacyDay let us all Privacy Day’, Adobe Inc time. Since November’s Camp Fire, to have sent a proposal to PG&E liabilities that have arisen and will Suisse Group AG, Goldman Sachs, serve as PG&E’s chief restructuring insist on action and reform announced it was team- which destroyed the town of Para- backed by $4bn of bonds that could continue to arise” from the fi res. MUFG Union Bank and Wells Fargo offi cer. John Boken, also a manag- for vital privacy protec- ing up with OneTrust to dise, PG&E has seen about three- convert into shares. At least one State officials including Gov- & Co acting as joint lead arrangers. ing director at AlixPartners, will be tions. The dangers are real develop new tools and fourths of its market value wiped other group that included Ken Grif- ernor Gavin Newsom had said it “With utilities, bankruptcies deputy chief restructuring offi cer. and the consequences are off erings “that address a out, its chief executive offi cer leave, fi n’s Citadel LLC and Leon Black’s would be in the state’s best in- take multiple years,” Kit Konolige, • The fi rst-day hearing on the too important,” he said on few of the unique privacy its bonds plunge to junk status and Apollo Global Management LLC terest to keep the utility healthy an analyst for Bloomberg Intelli- bankruptcy hasn’t yet been sched- Twitter. challenges in the mobile estimates of its fi re liabilities swell was said to be pitching a rival plan. and financially viable. PG&E is gence, said in an interview before uled, according to a website PG&E It’s not the first time the space.” to more than $30bn. The utility’s top creditors in- considered a linchpin in helping the fi ling. “There is no such thing set up for the case.

Bloomberg QuickTake Q&A After PG&E’s climate-driven bankruptcy, Who’s next?

By David R Baker and Eric Roston been. Ever since the 2017 wildfires in hurricanes or droughts or the spread risks that exploded during the Indeed, some of those provisions were The company will be able to bring San Francisco northern California’s wine country, of pests. Businesses are increasingly financial crisis. There is also a timing designed to prevent utilities from going all those cases into a single forum the company has repeatedly warned disclosing awareness of locally relevant mismatch between climate threats bankrupt. for resolving its financial problems, that climate change is raising the threats, and many are building climate and conventional insurance practice. including wildfire suits. Bankruptcy When PG&E Corp filed for Chapter risk of catastrophic fires in the state, challenges into their long-range plans. As Warren Buff ett has said, insurance 5. Could other utilities suff er filings also can force litigants to accept 11 early today, it marked not just one as frequent drought and invasive, Coastal property owners are more policies are rewritten every year, and as well? smaller settlements than they would of the largest utility bankruptcies warm-weather pests decimate the and more attentive to sea-level rise, it’s hard to know on that time frame have been able to negotiate otherwise. in history — it’s also one of the first state’s forests. The company’s ex-CEO just as agricultural companies are to how decades-long threats shake out in So far, the fallout from PG&E’s planned 7. Could this interfere with California’s tied to climate change. PG&E, owner Geisha Williams, who stepped down, northward growing zones and utilities, pricing. bankruptcy has been largely limited to climate change goals? of California’s largest electric utility, called it the new normal and said such as it is, to more devastating fires. other utility companies in California. California requires all its utilities made the move after estimating that it that utility companies were bearing But costs can be hard to quantify, and 4. Who else is getting hurt? Edison International’s Southern to increase their use of renewable faced a $30bn liability from two years the costs of climate-fed fires. The there are limits to how much even large California Edison utility and Sempra power, and PG&E has already lined up of wildfires whose intensity has been company’s critics had dismissed those companies that regard themselves as PG&E shareholders shouldn’t expect to Energy’s San Diego Gas & Electric both enough power purchase contracts to blamed by state off icials on worsening warnings as a scare tactic intended to forward-thinking have done to prepare see dividends again anytime soon, but saw their credit ratings cut by Standard meet the state’s targets for the next droughts linked to global warming. Fire pressure the state government into for a systemic global problem. analysts don’t expect them to be wiped & Poor’s. But the problem of power few years. But the state’s climate fight victims suing PG&E say it didn’t adapt changing California’s wildfire liability out. Customers can expect the lights to lines sparking fires could pop up in very much relies on healthy electric quickly enough to the increased risks rules, something the legislature in 3. Isn’t the market supposed stay on, but their bills may go up. PG&E other drought-prone western states, utilities in multiple ways, such as created by more persistent hot, dry Sacramento refused to do. to price in risk? lined up $5.5bn to keep its operations and power companies with contracts deploying electric vehicle charging weather. The bankruptcy filing points going during bankruptcy. For once, the with PG&E have been aff ected, stations and making homes more to the danger that warming could pose 2. Have climate risks been Yes, through tools like insurance decision to raise rates won’t rest solely including New York’s Consolidated eff icient. California’s new governor, for many companies. Those risks aren’t overlooked at other and credit-default swaps, as well as with regulators at the California Public Edison Inc, which owns renewable Gavin Newsom, is expected to make always obvious, and assessments of companies? demanding higher premiums for Utilities Commission. Rate increases will energy projects that sell power to the climate one of his signature issues them are often buried deep within greater risk in lending. But markets be tied to whatever reorganisation plan California utility. and has already said that he wants securities disclosures. Is it time for Almost certainly. Or, just as likely, they don’t always price some kinds of risk the bankruptcy court judge overseeing California’s utilities to be strong enough them to move beyond the fine print to may be treating them as diff icult-to- correctly, and economic research the proceeding approves. California 6. What about the wildfi re to invest in the state’s energy transition. become an active market concern? pinpoint long-term risks, even as that suggests that climate change falls passed a law last year allowing PG&E victims suing PG&E? Meanwhile, analysts are waiting future begins to arrive. The warnings in that category. Since 2008, many to pass on to ratepayers some of the to see if PG&E will use bankruptcy 1. Why were investors caught scientists have issued for over 30 years people, including former Treasury costs of wildfires for which it had been Filing for bankruptcy puts those proceedings to get out of some of the off guard? of threats to businesses and economies Secretary Hank Paulson, have likened blamed in 2017, but it’s not clear how lawsuits on hold and wraps them into most expensive renewable contracts are increasingly being connected to the swelling systemic pressures of the law’s provisions will apply to a the bankruptcy proceedings. That’s it signed years ago, before the costs of In PG&E’s case, they shouldn’t have specific disruptive events, whether climate change to the under-priced company that’s already in bankruptcy. part of bankruptcy’s appeal to PG&E. wind and solar power plunged. Wednesday, January 30, 2019 GULF TIMES BUSINESS

Kuwait’s growth to strengthen Strong buying interests lift on oil prices, says IMF

Reuters QSE to 10,722.49 points Dubai By Santhosh V Perumal The International Monetary Fund Business Reporter said on Monday Kuwait’s non-oil growth is projected to increase to about 3.5% in 2020, from 2.5% he Qatar Stock Exchange yes- last year, as higher oil prices will terday witnessed strong buying boost capital spending. Tinterests in consumer goods, “The mission has assumed an transport and real estate counters, average oil price of $57 per leading its key index gain 18 points. barrel in 2019-20, increasing to There was weakening of net sell- $60 per barrel over the medium ing pressure from local and Gulf retail term,” the IMF said in a state- investors as the 20-stock Qatar In- ment at the end of an off icial dex settled 0.17% higher at 10,722.49 staff visit to the Opec member. points. “As capital project implementa- There was also weakened net profi t tion accelerates, non-oil growth booking within Gulf individuals in the is projected to increase to about market, whose sensitive index is up 3.5% in 2020.” 4.11% year-to-date. The IMF also said the recent Market capitalisation expand- Opec decision to cut production ed more than QR1bn or 0.17% to is expected to hold oil output to QR616.72bn mainly owing to microcap 2% growth in 2019, which could segments. rebound to 2.5% in 2020 given Islamic equities were seen gaining in spare capacity. proportion with the main index on the The inflation rate is expected market, where domestic funds turned to rise in 2019-20 to about 2.5% bearish. as deflationary factors seen in Trade turnover and volumes were 2018 unwind, the Fund said. on the increase in the bourse, where It said higher oil revenues and banking, industrials and realty sectors investment income helped together accounted for more than 81% improve the overall fiscal bal- of the total volume. ance in 2017/18 to an estimated The Total Return Index gained 0.17% surplus of 8% of GDP, which to 18,891.84 points, Al Rayan Islamic will reach almost 12% of GDP in Index (Price) by 0.17% to 2,510.59 fiscal year 2018/19. points and All Share Index by 0.29% to Delays to the passage of a new 3,245.54 points. debt law have left the govern- The consumer goods sector index The QSE’s market capitalisation expanded more than QR1bn or 0.17% to QR616.72bn yesterday, mainly owing to microcap segments. ment unable to issue debt since soared 2.37%, transport (1.77%), real October 2017, forcing it to draw estate (1.39%) and telecom (0.25%); compared to QR100.84mn the previ- Non-Qatari institutions’ net buy- on 76% increase in deals to 346. The volume plummeted 26% to 0.72mn on the state General Reserve whereas insurance declined 1.19%, ous day. ing declined marginally to QR83.91mn industrials sector reported 15% in- stocks and value by 16% to QR18.45mn, Fund for financing, including banks and fi nancial services (0.22%) Non-Qatari individuals’ net compared to QR88.98mn on January crease in trade volume to 2.72mn stocks whereas deals grew 35% to 370. to repay maturing debt, the and industrials (0.08%). profi t booking shrank noticeably to 28. and 44% in value to QR82.81mn but on The real estate sector saw 8% de- IMF said. “Continued fiscal Major gainers included Woqod, Na- QR0.35mn against QR8.34mn on Janu- The Gulf institutions’ net buy- 1% fall in transactions to 2,139. crease in trade volume to 2.57mn shares consolidation will be needed to kilat, Ezdan, Doha Bank, Islamic Hold- ary 28. ing eased signifi cantly to QR4.33mn The consumer goods sector’s trade and less than 1% in value to QR50.14mn reduce financing needs over the ing Group, Medicare Group, Aamal The Gulf individual investors’ against QR11.01mn on Monday. volume expanded 13% to 0.52mn shares but on 17% fall in transactions to 1,323. medium term,” the Fund added. Company and Gulf Warehousing; even net selling weakened perceptibly to Total trade volume rose 2% to and value by 25% to QR44.44mn but on The banks and fi nancial services Last week, Kuwait announced a as Qatar Oman Investment, Al Khaliji, QR1.17mn compared to QR1.82mn on 10.53mn shares and value by 17% to 22% decline in deals to 598. sector’s trade volume was down 2% to 2019/20 budget that included a Qatari Investors Group, Qatar Insur- Monday. QR354.86mn, while transactions were There was 8% jump in the telecom 3.26mn equities, while value was up 4.7% rise in spending to 22.5bn ance, QNB and QIIB were among the However, domestic funds turned net down 2% to 6,772. sector’s trade volume to 0.27mn equi- 8% to QR138.79mn and deals by 7% to dinars ($74.15bn). Salaries and losers. sellers to the tune of QR4.82mn against The insurance sector’s trade volume ties and 7% in value to QR5.26mn but 1,804. In the debt market, there was no subsidies accounted for 71% of Local individuals’ net selling de- net buyers of QR11.01mn the previous more than tripled to 0.46mn equities on 19% fall in transactions to 192. trading of treasury bills and sovereign the budget. clined infl uentially to QR81.89mn day. and value almost tripled to QR14.76mn However, the transport sector’s trade bonds.