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Friday, May 12, 2017 Sha’baan 16, 1438 AH ECONOMIC REFORMS: Page 2 Saudi quarterly GULF TIMES budget defi cit narrows with oil BUSINESS income surge Mannai Corporation looks to boost Opec raises ’17 estimate Gfi Informatique stake to 95% by 2018

Mannai Corporation has chalked out a two-year strategy to enhance its equity holding in France’s Gfi Informatique to for supply growth from 95% by 2018 as part of eff orts to strengthen its foothold in the IT service and software market in Europe. “By acquiring an additional shareholding in Gfi Informatique, Mannai Corporation reinforces its commitment to Gfi Informatique with a long-term shareholder who is an expert in the IT services industry and an eff ective partner capable of supporting the company’s growth,” the Qatari company rival producers by 64% said. Mannai which currently holds 51% stake in Gfi Informatique, Non-Opec to grow 950,000 bpd in would acquire an additional 29% stake (on a fully) diluted 2017, led by US; outlook for non-Opec basis this year (first block trade) and another 15% (on a now 4 times higher than at outset fully diluted basis) in 2018 (second block trade) from Apax of cuts France, Altamir and Boussard and Gavaudan (B&G), the Qatar Stock Exchange-listed entity said in a communiqué to Bloomberg the local bourse without disclosing the financial outgo. London The first block trade would see Mannai first acquiring off -market from Apax France (jointly with Altamir) a stake representing 12% of the share capital and voting rights pec boosted estimates for growth of Gfi Informatique at €8per share in June 2017 and then in rival supplies by 64% as the US acquire off -market from B&G a stake representing 17% at €8 Ooil industry’s recovery accelerates, per piece in July 2017, thus eff ectively raising Doha-based threatening the group’s attempts to clear entity’s stake to 80%. a surplus. Following the completion of the second block trade in 2018, Production from outside the Organi- Mannai would further hike its holding to 95% of the share sation of Petroleum Exporting Countries capital and voting rights of Gfi Informatique and confirms will increase by 950,000 bpd this year, its intention to keep Gfi Informatique, which occupies a Opec said in a report, revising its forecast strategic position in its diff erentiated approach to global up by about 370,000. The projection is firms and niche entities, listed on the regulated market of four times higher than in November, when Euronext Paris. the group announced a production cut to The shareholders’ agreement – entered into among Mannai try and re-balance oversupplied world Corporation, Apax France (jointly with Altamir) and B&G markets. Non-Opec nations pump about on April 8, 2016 – would be amended to reflect the re- 60% of the world’s oil. composition of the board of directors. Oil prices sank to a fi ve-month low be- Oil and gas tankers are anchored off the Fos-Lavera oil hub near Marseille, southeastern France (file). Production from outside the Accordingly, Gfi Informatique board would comprise nine low $44 a barrel in New York last week on Organisation of Petroleum Exporting Countries will increase by 950,000 bpd this year, Opec said in a report, revising its forecast up members (instead of 11 under the current shareholders’ concern that the cuts by Opec and 11 part- by about 370,000. pact), including one director (instead of two) representing ners, including Russia, aren’t clearing the Apax France, two directors representing Mannai glut and that more supply is coming from action will likely be required when minis- The report indicated that Opec’s ob- crude prices. Drilling has accelerated in Corporation and four independent directors (five). B&G US shale drillers. While Opec has sig- ters gather on May 25. jective to reduce inventories to their recent months to take advantage of a price would retain the possibility to request the appointment of nalled it will probably extend the cutbacks “Continued rebalancing in the oil mar- fi ve-year average remains some way off . rally spurred by output cuts from the Or- one member (two). into the second half, the increased pro- ket by year-end will require the collective While it noted that surplus oil held at sea ganization of Petroleum Exporting Coun- Apax France and B&G’s put option and Mannai’s call duction outlook for competitors may fuel eff orts of all oil producers to increase mar- diminished, stockpiles in the most in- tries and 11 other nations aimed at reduc- option would be replaced with a forward sale via speculation their strategy has backfi red. ket stability,” it said. dustrialised nations increased from the ing a global supply glut. the second block trade: Apax France and B&G have “US oil and gas companies have already The organisation raised its outlook for fourth quarter by 31mn barrels to just Rising US output has wiped out undertaken to sell to Mannai the remaining of their stake, stepped up activities in 2017 as they start US production growth by 285,000 bpd over 3bn. That’s 276mn above the fi ve- progress made with the cuts, reversing the i.e. approximately 15% of Gfi Informatique’s share capital to increase their spending amid a recovery to 820,000 a day. The number of drill- year norm. rebound in oil prices seen earlier this year. in the second quarter of 2018 and Mannai Corporation in oil prices,” Opec’s Vienna-based re- ing rigs operating in the country has Opec members are still sticking with After rising as high as $55.24 a barrel at has undertaken to buy the corresponding shares at a search department said in the report. “In more than doubled since May, data from their pledge to reduce output, the report the start of the year, oil fell below $44 on price per share of 8.5 euros. addition to the growth in the US, higher Baker Hughes Inc shows, as shale explor- showed. Production from all 13 members Friday, before rebounding to around $46. Gfi Informatique, which has around 14,000 employees and oil production is expected in Canada and ers emerge from a two-year rout buoyed slipped by 18,200 bpd to 31.73mn last Crude output may rise by 455,000 bpd generated revenues of €1.02bn in 2016, currently has eight Brazil.” by the initial price gains after Opec an- month, with Saudi Arabia continuing to in the fourth quarter from a year earlier shared service centres, four of which in France and the rest The report echoed comments from offi - nounced its plan. pump below its offi cial target. across the Permian, Eagle Ford, Bakken in Spain, Portugal, Morocco and Poland. The group has over cials such as Saudi Arabian Energy Minis- When Opec introduced its 2017 forecast US producers have been putting rigs and Niobrara shale plays, assuming the rig 40 off ices in France and further presence in eight additional ter Khalid al-Falih and his Russian coun- for non-Opec supply last July, it had pro- back to work as they’ve fi gured out how count remains at current levels, according countries. terpart Alexander Novak that prolonged jected a contraction of 100,000 bpd. to lower costs and make a profi t at lower to Goldman Sachs. Page 3

QInvest generates revenues worth QR98mn in 1st quarter

QInvest has generated revenues worth QR98mn and The fund, a Shariah-compliant closed-ended fund, net profits of QR15mn in the first quarter of this year. provides a unique opportunity for investors to The bank’s assets stood at nearly QR4.6bn at the end access income generating equipment leasing assets Forbes Middle East top Indian leaders in the Arab world 2017. of the first quarter. in developed markets. It is already oversubscribed, Qatar’s leading private investment group and one having gained significant traction with investors. of the region’s most prominent Islamic financial QInvest also announced its joint bid with Atlas institutions maintained revenue and operating Merchant Capital to take Panmure Gordon private profitability at a consistent level. and reposition the company as a key boutique QInvest said its revenues continue to be well investment bank in the UK market. The transaction Yusuff Ali among Indian diversified across numerous markets and sectors was recommended by the Independent Directors creating a balanced risk profile. of Panmure Gordon’s Board and recently received In light of the “challenging” market conditions, the 99.94% approval in the relevant shareholder general bank has continued to deploy its capital cautiously meeting. and retain a prudent provisioning policy to protect QInvest completed the acquisition of two real estate business leaders in Forbes its gains and prepare for any market uncertainties assets in the US, both as part of the group’s US ahead. multifamily residential investment strategy that is The bank has a strong capital adequacy ratio and currently being offered to investors. significant liquidity ready for investment, it said. This included a property in Fox Creek, Thornton, a QInvest chief executive officer Tamim Hamad northern suburb of Denver, Colorado and a co- Middle East edition al-Kawari said, “The first quarter of 2017 has investment in an upscale residential development in shown the significant opportunities available in our Charlotte, North Carolina. markets. We are seeing very strong deal flow across QInvest anticipates “particularly exciting MKE Group chairman M A Yusuff Healthcare; Dr Azad Moopen, chairman all our divisions and continue to connect Middle opportunities” in the coming months and years in Ali and Abeeb Ahmad, managing di- and managing director of Aster DM Health- Eastern investors to transactions across the world. the multifamily residential market. Erector of LuLu Financial Group and care; Rizwan Sajan, founder and chairman We are currently in the market with the Magnolia During the first quarter, QInvest announced the Twenty14 Holdings were among the Indi- of Danube Group; Shaji Ul Mulk, chairman, Fund, which is seeing significant demand from our successful exit of its St Edmund Fund, an investment ans who fi gured in Forbes Middle East fi fth Mulk Holdings and Adnan Chilwan, group In recognition of his clients, and we launched the QInvest SQN Income in a prime real-estate development in central London edition of top Indian leaders in the Arab chief executive of Dubai Islamic Bank, contribution to the retail Fund, which is now fully subscribed.” that realised net returns of 22% for investors. world. among others. sector in the region, Looking at QInvest’s three key business lines in QInvest advised on several transactions during the In recognition of his contribution to the “It is a tremendous honour to receive this Yusuff Ali was honoured more detail, the group completed a number of first quarter of the year. These included acting as retail sector in the region, Yusuff Ali was award and be recognised among your peers for the fi ft h year in transactions and advisory mandates during the first sole advisor to a consortium of investors on the honoured for the fi fth year in running. in the region. This recognition is an impe- running quarter and the pipeline for the rest of the year looks acquisition of a $1.12bn stake in Arab Bank. Vipul, India’s consular general to the UAE tus for me to continue setting new bench- buoyant. The bank also acted as lead book runner on a presented the awards to the winners. marks in the region’s fi nancial industry as The firm launched the QInvest SQN Income Fund number of sukuk issuances including Dar Al Arkan’s The other prominent Indians in the list well as the hospitality sector,” said Ahmad. in collaboration with SQN Capital Management, a 5-year $500mn unsecured sukuk issuance, and include Ravi Pillai, managing director, RP Forbes annual event honours some of the global investor and fund manager. Ezdan Holding’s 5-year $500mn sukuk issuance. Group of Companies; Dr Shamsheer Vay- most pioneering and inspiring Indian busi- alil, founder and managing director of VPS ness leaders in the Middle East. Gulf Times 2 Friday, May 12, 2017 BUSINESS Etihad airline wins major Middle East awards Qatar shares The Procurement and Supply Management through an active involvement in the team at Etihad Aviation Group (EAG) Khalifa Fund and the promotion of local were the overall winners at the Chartered SMEs. Institute of Purchasing Supply (CIPS) Throughout 2016 the purchasing Middle East Awards, bagging three awards department also shared best procurement extend bull including the prestigious accolade of the practise with organisations in the UAE ‘Mena procurement and supply team of the including the Mohammed Bin Rashid Space year’. Centre, Emirates Nuclear Energy, ADNOC The winners were announced following and Al Futtaim Dubai. the conclusion of the CIPS Middle East Adil al-Mulla, vice president (Procurement run to cross Conference recently. and Supply Management) for EAG, said: In addition to the ‘Team of the Year’ “I am delighted and proud that the award, the company also won awards performance and achievements of the for ‘Best Contribution to the Reputation team have again been recognised at the of the Profession’ and ‘Best International highest level in the Mena procurement 10,100 mark Procurement Project’. profession. The team demonstrated to CIPS that it is “EAG has become the only aviation continuing to rapidly evolve capabilities, business in the Middle East region to gain By Santhosh V Perumal Services bucked the trend. relationships and eff ectiveness across all such recognition in the procurement field. Business Reporter Non-Qatari institutions’ net areas of procurement, bringing value to The CIPS Award is the most prestigious buying strengthened influen- EAG not just through cost savings but also recognition a company can achieve in the tially to QR48.15mn against through reputational enhancement. procurement and supply chain profession he Qatar Stock Exchange QR15.58mn on May 10. Donations of surplus and obsolete items worldwide and is the benchmark against yesterday surpassed the Domestic institutions’ net are made to the Red Crescent while which all procurement departments are T10,100 level, primarily buying also increased percepti- development of local suppliers is made measured.” Etihad executives collect the awards at the CIPS Middle East Award ceremony. on increased net buying from bly to QR14.07mn compared to foreign and Gulf institutions. QR5.11mn on Wednesday. An across the board buy- Non-Qatari retail investors’ ing – particularly in real estate, net selling weakened consid- consumer goods and bank- erably to QR0.69mn against ing – helped the 20-stock Qa- QR6.19mn the previous day. tar Index to gain for the fourth However, local retail inves- consecutive day by 1.19% to tors’ net selling rose substan- 10,110.84 points. tially to QR53.98mn compared Kamco analysts said a close to QR9.52mn on May 10. above 10,000 points would en- The GCC (Gulf Coop- Saudi quarterly budget hance further advance towards eration Council) funds’ net 10,225 points although weekly profit-booking increased to relative strength index indica- QR5.79mn against QR4.9mn on tor is currently looking “nega- Wednesday. tive”. The GCC individual inves- Mid and large cap stocks tors’ net selling also strength- found favour among investors ened to QR2mn compared to defi cit narrows with in the bourse, which also saw QR0.11mn the previous day. weakened net selling by non- Total trade volumes rose Qatari individual investors. 64% to 11.96mn shares, value Islamic stocks were seen by 80% to QR327.32mn and underperforming the main in- deals by 14% to 3,528. dex and other indices in the The transport sector’s trade market, which however saw volume grew more than five- the surge in oil income increased net selling by local fold to 0.92mn equities and and Gulf individual investors as value by more than 12-fold to Oil revenue more than doubles, at a press conference in Riyadh. But the well as Gulf institutions. QR48.6mn on more-than-tri- budget deficit 26.2bn riyals; minister government does expect to have a budget Trade turnover and volumes pled transactions to 379. says plan to balance budget by 2020 “close” to that announced at the start of were on the increase in the The insurance sector’s trade remains on track the year, he said. market, where telecom, realty volume more than doubled Policy makers cut subsidies on utili- and banking sectors together to 0.58mn stocks and value Bloomberg ties, slowed payments to contractors and accounted for more than 77% also more than doubled to Riyadh/Dubai tapped debt markets to reduce the defi - of the total volumes. QR40.67mn on a 78% expan- cit as oil export revenue dwindled since Market capitalisation ex- sion in deals to 178. 2014. Though prices have rebounded panded about QR7bn, or 1.28%, The industrials sector’s audi Arabia’s fi rst-quarter defi cit from a 12-year low in January 2016, the to QR540.53bn as mid, large, trade volume more than dou- narrowed on higher oil revenue, budget defi cit will probably be 7.6% of small and microcap scrips bled to 0.9mn shares and val- Sboosting the government’s eff orts output this year, according to the median gained 1.35%, 1.09%, 0.89% ue also more than doubled to to repair public fi nances as it implements estimate of 11 analysts polled by Bloomb- and 0.31% respectively. QR60.53mn on an 11% jump in an economic blueprint for life after oil. erg. The Total Return Index transactions to 578. The budget defi cit for the three months Brent crude averaged nearly $55 a bar- gained 1.19% to 16,955.29 The telecom sector’s trade to March was 26.2bn riyals ($7bn), the fi - rel in the fi rst quarter this year, compared points, the All Share Index by volume more than doubled to nance ministry said in a report yesterday. with an average of $35 a year ago. 1.23% to 2,864.87 points and 5.47mn equities and value al- That compared with 91bn riyals in the “The growth in revenue was from oil,” the Al Rayan Islamic Index by most doubled to QR56.97mn period a year ago, according to Bloomb- Mazen al-Sudairi, the Riyadh-based 0.94% to 4,034.48 points. on a 61% increase in deals to erg calculations using the offi cial data. head of research at Al Rajhi Capital, said The realty sector’s index 521. Quarterly revenue rose 72% to 144.1bn by phone. “We expect much more invest- soared 1.96%, followed by con- The real estate sector report- riyals, while expenses fell 2.5% to 170bn ment from the government in the second sumer goods (1.28%), banks ed a 25% surge in trade volume riyals, the ministry said. Mohammed al-Jadaan, Saudi Minister of Finance, gestures during a news conference and third quarter, which should inject and financial services (1.28%), to 2.48mn stocks and 21% in The government’s target for a balanced announcing the first-quarter of Saudi budget in Riyadh yesterday. The government more liquidity into the market.” insurance (1.01%), telecom value to QR42.96mn but on a budget by 2020 is central to its long-term is shifting to quarterly statements on the economy – having typically reported only Mohammed al-Tuwaijri, the vice min- (0.87%), industrials (0.81%) 20% decline in transactions to plan to wean the economy off oil, which annually – to boost transparency as it implements its economic plan, the Saudi Vision ister for economy and planning, said in and transport (0.65%). 548. includes creating the world’s biggest sov- 2030. an interview this week authorities will More than 73% of the stocks The consumer goods sec- ereign wealth fund and privatising some put more focus on reviving economic extended gains with major tor’s trade volume gained 7% to state assets. While Finance Minister Mo- only a paltry rise in non-oil revenue, so – having typically reported only annu- growth this year, and don’t expect the movers being Doha Bank, QNB, 0.3mn shares and value by 48% hammed al-Jadaan said the report indi- there has been little further progress in ally – to boost transparency as it imple- recent drop in oil prices to aff ect plans to Masraf Al Rayan, Qatar Islamic to QR27.56mn, whereas deals cates the plan is on course, it also shows reducing the government reliance on oil ments its economic plan, the Saudi Vi- balance the budget. Bank, Barwa, Ezdan, Milaha, were down 2% to 368. that oil still dominates public fi nances – receipts.” sion 2030. “Many non-oil revenues are seasonal,” Woqod, Industries Qatar, Me- However, the banks and fi- its share of total revenue grew in the pe- Quarterly oil revenue more than dou- In December, the government said it al-Jadaan said yesterday, pointing out saieed Petrochemical Holding, nancial services sector saw a riod – making the kingdom susceptible to bled to 112bn riyals from 52bn riyals, or planned to spend 890bn riyals in 2017, that dividends from investments by the Qatari Investors Group, Qatar 14% shrinkage in trade volume price swings. 78% of government revenue, compared with revenue at 692bn riyals and a full- sovereign wealth fund will come at the General and Reinsurance, Qa- to 1.3mn equities, 6% in value “The budget defi cit is narrowing very with 62% in the same period last year, year defi cit of 198bn riyals. Non-oil rev- end of the year. Other measures including tar Islamic Insurance, Ooredoo to QR50.03mn and 2% in trans- sharply, although it’s largely the eff ect of the data show. Non-oil revenue was 1.3% enue was estimated at 212bn riyals. fees for expat workers have yet to be im- and Vodafone Qatar; even as actions to 956. a rebound in oil prices,” said Jason Tu- higher at 32.1bn riyals, the ministry said. “Overall, we don’t expect this quarter- plemented, and will only show up in rev- Qatar First Bank, Qatar Elec- In the debt market, there was vey, Middle East economist for London- The Saudi government is shifting to ly performance to continue in the second, enue data in the third and fourth quarter, tricity and Water, Medicare no trading of treasury bills and based Capital Economics. “There was quarterly statements on the economy third and fourth quarters,” al-Jadaan said he said. Group and Gulf International government bonds.

CORPORATE RESULTS Emirates annual profit plunges for first time in five years

Emirates said the “relentless rise” of the dollar according to Thomson Reuters I/B/E/S statement said. Revenues rose to 4.1bn dirhams, in key markets cost the airline 2.1bn dirhams in Estimates. up 6%, mainly due to higher oil and gas prices. revenue. Its fuel bill increased 6% on the year to Teva was left without a permanent chief But production volumes of 132,200 barrels of 21bn dirhams and made up 25% of its operating executive in February after Erez Vigodman oil equivalent per day (boed) were 14% lower costs compared with 26% last year. stepped down, leaving new management versus the same quarter last year, the statement Emirates carried 56.1mn passengers, up 8% on to restore confidence in the world’s biggest said. Taqa made a loss of 18.55bn dirhams in the year, though its load factor — or number of generic drugmaker after a series of missteps. 2016 and has cut 1,400 jobs since 2014, bringing seats filled — declined 1.4 percentage points to Its chief financial off icer Eyal Desheh also said the headcount down to 2,200. 75.1%. he was resigning. Dana Gas Capacity increased 10%. Teva said yesterday that Michael McClellan has UK-based aviation consultant John Strickland been appointed as interim CFO, eff ective July 1. UAE-based energy producer Dana Gas has said he expected Emirates “to keep a tighter rein Global sales of Teva’s best-selling multiple started refinancing discussions with the holders on its capacity growth in the short to medium sclerosis drug Copaxone fell 4% in the quarter of its $700mn sukuk maturing in October this term”. to $970mn. year, the company said in a statement yesterday. Last December, Emirates deferred deliveries of Teva reaff irmed its 2017 forecast of earnings per The company, which has faced a cash 12 Airbus A380 superjumbos. share of $4.90-$5.30 on revenue of $23.8bn- shortage after failing to receive payments The world’s biggest A380 customer said profit $24.5bn. from investments in Egypt and Kurdistan, had for the wider Emirates Group, which includes The company said it expects synergies and cost recently announced a plan to begin talks on the airport and travel services arm Dnata, fell 70% reduction benefits related to Actavis to total restructuring of the sukuk which was issued in to 2.5bn dirhams. $1.5bn by the end of 2017, up $200mn from its May 2013. Emirates, the Middle East’s largest airline, fill, leading to a drop in the average yield per Emirates said it would not pay a dividend to previous forecast. The lack of collections had raised concerns over reported a drop in annual profit yesterday passenger. Investment Corp of Dubai, the state investment Taqa the company’s ability to repay the dollar sukuk for the first time in five years and criticised The Middle Eastern carrier said a series of vehicle which owns the airline and stakes in over the past few months, which put downward President Donald Trump’s restrictions on some “destabilising events,” including Britain’s vote other Dubai companies. Abu Dhabi National Energy Co (Taqa), which got pressure on the price of the company’s US flights as “destabilising” for travel. to leave the European Union and restrictions on It paid 2.6bn dirhams for the previous year. a financial lifeline from its top shareholder last outstanding debt. The Dubai-based company said net profit at its travel to the US from the Middle East, aff ected Teva month, swung to its first profit in two years due The company reported net profit of $11mn airline business plunged 82% to 1.3bn dirhams demand for flights during the year. to higher commodity prices, driving its shares in the three months ending March 31 versus ($354mn) in the year to March 31. Emirates did not say how those events impacted Israel-based Teva Pharmaceutical Industries up yesterday. $6mn during the same period a year earlier. That is the first time since its 2011-12 fiscal year demand, though last month signalled its US reported a better than expected first-quarter Last month the Abu Dhabi Water & Electricity Profits rose by $4mn quarter on quarter, that annual airline profit has fallen. expansion plans were on hold after announcing profit yesterday, with sales boosted by its Authority (Adwea) raised its stake in the firm partly in response to increased production, Airlines around the world have reported flights to five US cites would be cut due to $40.5bn acquisition last year of Actavis, to 74% from 52.38% after granting Taqa land principally in Egypt, and higher realised pressure on fares over the last couple of weakened demand that it blamed on the travel Allergan’s generic drug business. valued at 18.7bn dirhams that could potentially prices, it said. years due to volatile demand and cut-throat restrictions by President Trump’s administration. Earnings slipped to $1.06 per share excluding off set accumulated losses.. Dana is owed receivables of about $1bn from competition, though Europe’s major carriers Emirates chairman Sheikh Ahmed bin Saeed al- exceptional items in the quarter from $1.20 last Taqa, made a net profit attributable to equity Egypt and the Kurdistan Regional Government. have recently noted signs of the pressure Maktoum said the company expected “the year time, but revenue was up 17% at $5.63bn. holders of 77mn dirhams ($20.9mn) in the Its cash balance as of the end of March was easing. ahead to remain challenging”. Analysts had on average forecast underlying three months to March 31, compared to a net $298mn, slightly below $302mn as of the end of Emirates also added more seats than it could The airline’s revenue was flat at 85.1bn dirhams. earnings of $1.03 on revenue of $5.68bn, loss of 608mn dirhams a year ago, a company last year. Gulf Times Friday, May 12, 2017 3 BUSINESS Shale drillers outspend the world with $84bn spree

Bloomberg is flowing into the Permian Basin, real,” Roy Martin, a Wood Mackenzie above $55 in the weeks after the cut to boost spending by 44% this year to Next year, US fields will pump Chicago a sprawling, mile-thick accumula- research analyst in Houston, said in a was announced have since dipped to between $3.7bn and $4.1bn. Pioneer 9.96mn bpd, 0.6% more than tion of crude beneath Texas and New telephone interview. “The level of cap- around $46, refl ecting pessimism that is eyeing a 33% increase to $2.8bn. the department estimated last Mexico, where producers have been ital budget increases really surprised the Opec-led deal can withstand the The sub-group that includes North month. S shale explorers are boost- reaping double- digit returns even us.” onslaught of US shale. American shale drillers like EOG and To be sure, most of the biggest US ing drilling budgets 10 times with oil commanding less than half Drilling budgets around the world So far, independent American ex- Pioneer is collectively targeting $53bn and European explorers - an elite cau- Ufaster than the rest of the what it did in 2014. collapsed in 2016 as the worst crude plorers such as EOG Resources and in spending this year, up from $35bn in cus of fi ve companies known as the world to harvest fields that register That’s bad news for Opec and its market collapse in a generation erased Pioneer Natural Resources Co are 2016, according to the Barclays ana- supermajors - are pursuing a con- fat profits even with the recent drop partners in a global campaign to crimp cash fl ows, forcing explorers to cancel holding fast to their ambitious growth lysts led by J David Anderson. trary path and cutting expenditures in oil prices. supplies and elevate prices. Wood expansion projects, cut jobs and sell plans. Some recently fi nished wells in US oil production is already swell- this year. As deepwater, oil-sands and Flush with cash from a short-lived Mackenzie Ltd estimates that new oil and natural gas fi elds to raise cash. the Permian region yielded 70% re- ing, even though output from the new other high cost, high risk investments Opec-led crude rally, North Ameri- spending will add 800,000 barrels The pain also swept across the Organi- turns at fi rst-quarter prices, EOG chief wells being drilled won’t materialise soured during the slump, the super- can drillers plan to lift their 2017 out- of North American crude this year, sation of Petroleum Exporting Coun- executive offi cer Bill Thomas told in- above ground for months. The Energy majors were battered and had to re- lays by 32% to $84bn, compared with equivalent to 44% of the reductions tries, which in November agreed with vestors and analysts during a confer- Department’s statistics arm raised group. But shale drillers, unburdened just 3% for international projects, announced by the Saudi- and Russia- several non-Opec nations to curb out- ence call on Tuesday. its full-year 2017 supply estimate to by such large-scale projects, have been according to analysts at Barclays. led group. put by 1.8mn bpd. EOG, the second-largest US explor- 9.31mn bpd on Tuesday, a 1% increase better able to quickly respond to price Much of the increase in spending “The spectre of American supply is Oil prices that initially popped er that doesn’t own refi neries, plans from the April forecast. changes.

‘Russia oil must be considered for Brent benchmark’

Goldman to IEA see oil Bloomberg London

Royal Dutch Shell, the world’s largest oil trader, said the time has come to debate using Russian crude to help determine the global Brent bulls on top as output benchmark, in what would be the most radical shift in how European prices are calculated since the 1970s. Mike Muller, the head of crude trading at Shell, said at the Platts Global Crude Oil Summit in London that he wants a discussion about calculating the price in Europe using cuts dent stockpiles not just oil pumped in the North Sea - as has been the case since the Decline in fuel inventories is accelerating, 1970s - but potentially including says Jeff Currie; supply deficit to expand Russian crude and even grades even more if Opec extends cuts: IEA pumped in West Africa and the Caspian Sea basin. Bloomberg Shell is not just the largest oil trader London but also the custodian of the master contract that governs the physical Brent market, and as such its views il is trading near $50 again, Opec seems are closely watched. to be losing its ability to infl uence prices Though Muller said some of the Oand a wave of new supply is hitting the suggestions he floated were market from Texas to Libya. For some, there’s “concepts and ideas,” he made clear never been a better time to buy. that the company wanted to see Despite last week’s selloff , the global oil mar- reform. “These are the sort of things ket is rebalancing rapidly, said Jeff rey Currie, Shell wishes to see in benchmarks head of commodities research at Goldman Sachs going forward,” he said. Any further Group. If the Organization of Petroleum Export- changes should be implemented “in ing Countries extends its cuts into the second a matter of years, not necessarily half - as the group has signalled - demand will months, to ensure a soundly signifi cantly exceed production, according to the functioning market is maintained.” IEA’s Head of Oil Industry and Markets Neil At- The rest of the market would kinson. have to concur that the changes “Do I want to be long oil? The answer is ab- outlined were appropriate. Oil solutely yes because we are going into a defi cit industry executives largely agree market,” Currie said at the S&P Global Platts that the Brent benchmark will Global Crude Summit in London on Wednesday. need significant reforms early next “With demand continuing to surprise to the up- decade. side,” the global supply defi cit may be as wide as In 2014, Ian Taylor, the chief 2mn barrels a day by July, he said. executive off icer of the world’s Brent crude, the international benchmark, fell biggest independent trader Vitol to a fi ve month low of $46.64 a barrel last week Group said he was “extremely amid doubts about the eff ectiveness of Opec and concerned” about the possibility of Russia’s joint supply curbs. Subsequent signals Brent becoming a less-eff icient or from Saudi Arabia and Moscow that they could eff ective benchmark. Crude from extend cuts into 2018 failed to trigger much of a The decline in global fuel stockpiles will ac- For Russia, Iraq and Iran - three of the larg- doing just that. Libya’s crude production has Africa, the Caspian Sea and possibly price recovery. While the resurgence in US shale celerate this quarter, Currie said. The volume of est producers involved in the agreement - curbs risen to 800,000 bpd as fields restart, the most Russia should be added to the oil continues to cause doubts about whether the crude held in fl oating storage on tankers - often in the fi rst quarter were comparatively easy to since 2014. Nigeria’s 200,000 bpd Forcados basket of oil used to determine the three-year supply glut really is over, banks in- a key indicator of a supply surplus - is dropping implement, said David Fyfe, chief economist at oil pipeline is ready to export again after being price, he said at the time. cluding Goldman and Citigroup say markets are like a brick, he said. oil trader Gunvor Group. The Middle Eastern shut down almost continuously since February Muller said that the large amounts nevertheless tightening and prices are poised to The aim of Opec’s supply deal was to shrink producers were already close to their maximum 2016. of Russian Urals crude that Europe’s rise again. inventories, and by that measure it’s succeeding, production capacity, while Russia usually expe- There’s little chance of Opec cutting any deep- refineries use meant it was worth The bulls got some powerful backing on said Bassam Fattouh, a director at the Oxford In- riences a seasonal lull in the winter, he said. er than they have already and demand growth talking about using the grade as part Wednesday from the most keenly watched data stitute for Energy Studies. “They’ll likely agree to extend into the second this year will be lower than the IEA forecasts, of the region’s benchmark. on the market - the US Department of Energy’s Opec and its allies looks set to prolong their half of 2017, but the risk is higher that they’ll leak said Fareed Mohamedi, chief economist of The “Some form of incorporation of weekly report on crude stockpiles. The nation’s agreement into the second half of the year, but extra barrels onto the market,” he said. Rapidan Group, a consultant based in Bethesda, Urals will undoubtedly need to be inventories fell by 5.2mn barrels last week, the not everyone is convinced they’ll maintain the Two Opec members exempt from reducing Maryland. Prices could drop back as low as $30 a discussed on merit,” he said. biggest reduction this year. near-full cuts compliance seen in recent months. output because of internal strife are already barrel by the fi rst quarter of 2018, he said.

Shaky demand risks thwarting Oil rebound has legs as inventory slide seen lasting Opec aim, warns top oil trader

Bloomberg 400,000-500,000 bpd more than expected. Singapore “If demand goes back to where it should, where it’s forecast, then it’ll help, but my gut feel tells me it is still a bit long,” he said. pec and its allies are seeking to pump The International Energy Agency has less for longer in a quest for higher trimmed its forecasts for global oil demand Oprices. The world’s biggest inde- growth this year by about 100,000 bpd to pendent oil trader says their eff orts could be 1.3mn a day as a result of weaker consump- in vain. tion in Organisation for Economic Co-oper- Demand isn’t expanding as much as ex- ation and Development member countries pected, and US shale output is growing fast- and an abrupt slowdown in economic activ- er than forecast, according to Vitol Group. ity in India and Russia, according to a report That’s increasing the burden on the world’s last month. The Paris-based IEA cut its es- biggest producers, who need to stick to their timate for India’s 2017 oil-demand growth pledges to cut supply just to keep prices by 11%. from falling, said Kho Hui Meng, the head of There’s also concern that consumption the company’s Asian arm. may slow in China, the world’s second- Oil has given up all its gains since the Or- biggest oil user. Independent refi ners, ganisation of Petroleum Exporting Coun- which account for about a third of the na- tries and other producers signed a deal late tion’s capacity, have received lower crude last year to limit supply for six months from import quotas compared with a year ear- January. Prices have been hit by surging out- lier, prompting speculation their purchases put in the US, which is not part of the agree- could slow. ment. Any recovery in crude will depend on “The oil market is looking for growth but sustained usage by nations such as China, there’s no growth,” Vitol’s Kho said, adding India and the US as much as Opec’s eff orts that the refi ners may only get approval for to control supply. “What we need is real de- the same volume of imports as last year. And mand growth, faster demand growth,” Kho, while US gasoline consumption is expected the president of Vitol Asia, said in an inter- to hit its seasonal summer peak soon, de- view in Kuala Lumpur. “Growth is there, but mand growth “is not there yet,” he said. not fast enough.” The world’s biggest crude exporter is nev- Oil’s rebound in the past few days looks impressive and it might sustain. Declines in US inventories tend to last for a few months once the trend While consumption was forecast to expand ertheless bullish. Saudi Arabia expects 2017 turns, according to Bloomberg. That’s often helped push up prices - especially following a period of correction. After giving up all of the gains it this year by about 1.3mn bpd, growth has been global consumption to grow at a rate close made in the wake of the Opec output deal, oil can now rally, particularly if the drop in US stockpiles is accompanied by Opec & Co extending their limited to about 800,000 bpd so far in 2017, to that of 2016, Energy Minister Khalid al- agreement to cut supply. he said, adding that US output had grown Falih said on Monday. Gulf Times 4 Friday, May 12, 2017 BUSINESS

CORPORATE RESULTS Nissan warns its profit growth set to stall

On a like-for-like basis excluding the British regulatory change, the unit increased underwriting profitability as its combined ratio fell to 97.2%. Panasonic Japan’s Panasonic said yesterday that annual net profit and revenue slumped because of slowing demand for household solar energy products and the impact of a stronger yen, but predicted a rebound this year. Net profit fell nearly 10% to ¥149.36bn ($1.3bn) on ¥7.34tn in revenue, which was off 3.7%, in the just-ended fiscal year to March, Panasonic said. Operating profit, however, jumped 20%, mostly due to cost savings from an ongoing restructuring, the firm said. Its latest numbers were also better than its forecasts last year when the Brexit vote in June sent the yen soaring, which eats into the profits of Japanese firms doing business abroad. “Panasonic was faced with a big foreign exchange impact and it’s likely to be a factor for the company again this year,” Mitsushige Akino, an executive off icer at Ichiyoshi Investment Management, said before the results were published. Best known abroad for electronics, Panasonic has shifted to other sectors, including energy and an auto division that makes products from electrical components to navigation systems. Panasonic and US electric car maker Tesla have agreed to start working together on solar energy products. The pair have already teamed up on the world’s biggest lithium-ion battery factory in the US state of Nevada. Deutsche Post German logistics group Deutsche Post said yesterday it was confident of meeting its objectives for the year, insisting that business was strong in the first quarter, even if its bottom line fell. Deutsche Post said in a statement that net profit slipped by 0.9% to €633mn ($688mn) in the period from January to March. But the decline was due to higher taxes, it Nissan warned yesterday that profit growth such as Kohl’s Corp and JC Penney Co Inc, have forecast of €612mn in an analyst consensus premium TV content in a bid to dominate the explained would stall this year after its latest annual net struggled for years with declining mall traff ic provided by the bank. market for bundled packages of phone, TV and Underlying or operating profit climbed by 1.4% profit rose more than a quarter to $5.82bn, and tough online competition, and are trying It was up 41% year-on-year excluding Internet services in its home market. to €885mn on a 7.3% increase in revenue to largely due to the sale of its stake in an auto to cope by cutting costs via store closures, restructuring costs that hit the first quarter of But while the strategy has helped Telefonica €14.9bn in the three-month period. parts supplier. selling or leasing their real estate and keeping 2016. gain the bulk of the mid- to high-end market it “Following a record year in 2016, the upward The downbeat forecast comes a day after inventory levels low. “Strong headlines across the board on asset has left the firm exposed to stiff competition trend has continued at Deutsche Post DHL Japanese rival Toyota posted its first drop in Merchandise inventories at Macy’s rose 4.2% in quality, capital and profit recovery should all from Orange, Vodafone and MasMovil at Group this year,” chief executive Frank Appel annual net profit for five years, as a forecasted the quarter, due to a low sell-through. support continued re-rating of the stock,” broker the lower end of the market where they are commented. Deutsche Post has pressed on with pick-up in the yen and pricey customer As a result, the company’s profit sank 39% to Jeff eries said in a note. attracting a growing number of households with a long-term drive for eff iciency and revenue incentives in the US market dent its bottom line. $71mn. UniCredit’s result echoed that of rival cheaper off erings. growth, seeing “good results” in the six-year Altima sedan maker Nissan posted a net profit Macy’s earned 24 cents per share on an adjusted heavyweight Intesa Sanpaolo which last week Core operating income before depreciation and plan launched in 2014. of ¥663.5bn ($5.82bn) in the fiscal year to March, basis, well below the 35 cents analysts on reported a first-quarter net profit of €901mn amortisation (OIBDA) fell 8.6% in Spain from a Following a pattern that has become well- up nearly 27% from a year earlier. average had expected. supported by a strong asset management year earlier, while sales were down 2.6%, hit by established in recent years, packages and The jump was driven by gains from the sale of Macy’s net sales fell 7.5% to $5.34bn, declining business. the loss of a wholesale contract with smaller e-commerce delivery services drove growth at its non-controlling ownership stake in Calsonic for the ninth straight quarter and missing the UniCredit and Intesa account for 40% of all retail rival Yoigo, now owned by MasMovil. the group between January and March, while it Kansei, which makes vehicle interiors, climate average analyst estimate of $5.47bn. Italian banking assets with the rest spread The disappointing numbers in Spain mirrored achieved further savings in its freight division. control systems, compressors, exhaust systems Magna among the country’s remaining 600 lenders. a similar trend at its majority-owned German Maersk and electronics. Analysts say the financial crisis has widened subsidiary Telefonica Deutschland, which last Also yesterday, Nissan said its latest operating Canadian auto parts maker Magna International a gap between Italy’s lenders, with the bigger week reported a lower than expected 2% rise in Moller-Maersk beat first-quarter net profit profit fell 6.4% while revenue edged down 3.9% Inc yesterday posted a bigger-than-expected ones able to tap investors for capital and the core profits. forecasts yesterday, boosted by the energy to ¥11.72tn, blaming on a stronger yen. profit for the first quarter, helped by higher smaller ones poorly placed to off set losses from A 37% rise in core profit at Telefonica’s Brazilian business it plans to spin off , but also reported For the current year to March 2018, Nissan said demand, and the company also raised its full- bad loans. arm, both as a result of a strong recovery signs of improvement at its long-suff ering net profit would fall 19.4% to ¥535bn. year sales forecast. UniCredit raised €13bn in a share issue this year, in the Brazilian real and a solid underlying container shipping business. Operating profit and revenue are on track to Magna said sales in Asia rose 10% to $557mn boosting its best-quality CET1 capital ratio to performance, lifted profits at group level. Shares in the Danish conglomerate climbed decline 7.7% and 0.7%, respectively, it said. in the quarter ended March 31, while sales in 11.45% in March, which analysts said was ahead Group OIBDA came in at €4.02bn ($4.4bn), up almost 5% after it said a gradual recovery in Nissan sold more cars globally in the latest Europe climbed 8% to $2.46bn. of forecasts. 4.8% from last year, while net profit was up freight rates should boost earnings at Maersk period — 5.63mn — with a rise in most major North America sales, which make up the bulk of Kohl’s 42% at €779mn, boosted in part by accounting Line, the world’s biggest container shipping markets including North America, Europe and Magna’s total sales, increased 7% to $5.09bn. changes and the sale earlier this year of up to business, over the rest of the year. China. The helped total sales jump to $9.37bn from Department store operator Kohl’s Corp reported 40% of its masts company Telxius to private Maersk has been hit by the double blow of low Sales in its home market were down. $8.90bn at Magna, which counts General Motors a better-than-expected quarterly profit, helped equity firm KKR. oil prices at its energy arm and sliding prices in Overall US auto sales have been sputtering, Co, Volkswagen AG, BMW and Ford Motor Co by lower costs and a leaner inventory amid a Zurich Insurance its shipping business due to lacklustre global forcing automakers to boost incentives to land among its biggest customers. tough retail environment in the US. trade and industry overcapacity. customers, which takes a toll on their profits. Net income attributable to Magna rose to Kohl’s sales and comparable-store sales both fell Zurich Insurance expects to deliver on its Last year, new CEO Soren Skou announced plans “The US market has peaked...so we’re being very $586mn, or $1.53 per share, in the quarter, from for the fifth straight quarter and missed analysts 2017-2019 targets after a strong start to the to focus on transport, while seeking alliances or conservative about the growth of car sales” $492mn, or $1.22 per share, a year earlier. estimates in the latest three-month period year, despite a larger-than-expected fall in first a separate listing for its energy division. in that market, Nissan chief executive Hiroto The company earned $1.54 per share on an ended April 29. quarter net profit due to a change to British Although higher fuel costs saw Maersk Line Saikawa told reporters yesterday. adjusted basis, topping analysts’ average Customer traff ic at Kohl’s stores improved in claims rules. report a loss of $66mn in the first quarter, Skou In February, longtime Nissan boss Carlos Ghosn estimate of $1.34, according to Thomson March and April after a weak February, chief A more than 3% change to Britain’s Ogden said demand had been better than expected and announced he was stepping down from the Reuters I/B/E/S. executive Kevin Mansell said in a statement. rate, a tool for calculating personal injury the group’s forecast for 2%-4% growth in global chief executive post to focus on overhauling Magna raised its full-year 2017 sales forecast Kohl’s net income soared to $66mn in the and accident claims, dampened Zurich’s core demand for seaborne container transportation scandal-hit Mitsubishi Motors, but would remain to $36.6bn to $38.3bn, from its prior forecast of first quarter from $17mn a year earlier, property and casualty business in the quarter. this year may prove too conservative. chairman. $36bn to $37.7bn. when it recorded a $64mn charge related to But Zurich said yesterday its core general “We have been surprised on the upside with Ghosn, who also heads up French automaker Generali impairments and store closures. insurance unit had made “significant progress” growth in this first quarter,” he told a conference Renault, handed over the reins to company The company said merchandise inventories fell in underwriting profitability and the $289mn hit call with investors. veteran Saikawa in April. Generali is looking to buy portfolio management 2.3%, while selling and general expenses fell to operating profit from the Ogden change was “We have decided not to upgrade our market “Nissan is seeing a strong performance in North teams to expand its asset management 3.3% in the latest quarter. below previous guidance. demand growth forecast yet, because we are America and China, the world’s two major operations and beef up its fee-based business, On a per share basis, Kohl’s earned a profit of 39 “This is a good start to the year with strong not a 100 % sure about what is the driver and is markets,” Satoru Takada, an analyst at TIW, the Italian group said after reporting a 9% fall in cents, beating the average analyst estimate of performance from all of our businesses,” this just some quarterly inventory movements said before the earnings report. “I don’t think first-quarter profits yesterday. 29 cents, according to Thomson Reuters I/B/E/S. chief financial off icer George Quinn said in a blurring the picture,” he added. Ghosn’s retreat will have a big impact as he is Italy’s biggest insurer said it aimed to boost Kohl’s net sales dropped 3.2% to $3.84bn, statement. “This...puts us on solid footing to Maersk reported a first-quarter net profit of still overseeing the company as its chairman,” group net profit by €150mn ($163mn) by the end missing the average analyst estimate of $3.90 deliver on our 2017-2019 financial targets.” $253mn, above analysts’ average forecast of Takada told AFP. of 2020 and expand assets under management bn. Excluding the change to the discount rate, $199mn in a Reuters poll and an improvement BT to €500bn. Wilmar business operating profit rose 14% year-on-year on $224mn a year ago. The plans involve investing in its own business, to $1.218bn, although net profit dropped almost The energy business swung to a profit of BT, Britain’s biggest telecoms group, said it which currently manages €450bn of assets, and Wilmar International Ltd, the world’s largest a third to $607mn following the Ogden impact, $328mn from a loss of $29mn in the same would shake up its global service division spending up to €35mn on acquiring other asset palm oil processor, posted a 51% rise in quarterly missing market expectations. quarter a year ago, helped by higher oil prices that serves multinationals and scale back its managers. profit yesterday and said it was carrying out Zurich’s P&C combined ratio of 100.7% — a level and cost cutting. dividend growth ambitions as it recovers from “We’re waking up a sleeping giant,” chief a restructuring that could possibly lead to a below 100 indicates it took in more in premiums Maersk repeated its guidance for a full-year an accounting scandal in Italy and a profit investment off icer Tim Ryan said in a conference separate listing for its Chinese operations. than it paid out in claims — missed analyst group underlying profit above the $711mn warning. call, adding that 86% of the group’s €78bn unit- Singapore’s Wilmar, whose biggest shareholders estimates for 99.9% in a Reuters poll. achieved in 2016. Reporting fourth-quarter revenue of £6.12bn, up linked asset business was outsourced. include US agricultural trader Archer Daniels 10%, and adjusted earnings of £2.07bn, up 2% Generali, controlled by Italian investment bank Midland Co, said it was still evaluating the and broadly in line with forecasts, the company Mediobanca, owns 51% of listed private banking potential listing of the Chinese operations and said it had had a “challenging year”. and wealth management firm Banca Generali there was no certainty it will be carried out. It said it would cut 4,000 jobs from its Global but does not intend to include it in its asset It did not provide further details. Services unit, group functions and technology management plans. According to its annual report, Wilmar is the top operations, taking a restructuring charge of “Banca Generali will benefit but it’s out of the edible oils refiner as well as speciality fats and £300mn. scope of this strategy,” Ryan said. oleochemicals manufacturer in China, where it It paid a final dividend of 10.55 pence, up 10%, Struggling with costly regulatory changes and is also among the largest flour and rice millers. but said dividend growth in 2017/18 would be low interest rates, many European insurers are Yesterday, the company reported a net profit of lower than the 10% it had previously targeted. expanding their asset management operations $361.6mn for the three months ended March, Macy’s to generate high fees with minimal capital. versus a net profit of $239.4mn a year earlier. UniCredit Wilmar, one of the biggest soybean buyers, said US department store operator Macy’s Inc core net profit, which excludes non-operating reported a much bigger-than-expected drop in UniCredit beat expectations with a jump in items, rose about 40% to $312.6mn. quarterly profit and sales, continuing its uphill first-quarter net profit to €907mn ($986mn) Pretax profit at the company’s tropical oils struggle to attract customers amid a slump yesterday as new boss Jean Pierre Mustier leads business rose 20% to $178.6mn. in demand for apparel and the shift towards a turnaround at Italy’s biggest bank by assets. Telefonica shopping online. UniCredit hired 56-year-old French banker Sales at Macy’s stores open at least a year, Mustier in the middle of last year to address Spanish telecoms group Telefonica reported a including sales in departments licensed to third concerns over weak capital and tackle a large 4.8% rise in its first-quarter core profit yesterday, parties, fell 4.6% in the first quarter. bad loan pile. helped by a stronger Brazilian real, but a That was steeper than the 3.5% drop analysts He started selling assets and embarked on a lacklustre performance in Spain sent the share polled by research firm Consensus Metrix had clean-up of the balance sheet that led to a loss price down 3%. expected. of €12bn in 2016. The company has invested heavily in super Macy’s and other department store chains First-quarter net income topped an average fast Internet and phone networks as well as Gulf Times Friday, May 12, 2017 5 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 7.60 -4.40 3,395,387 Boubyan Intl Industries Hold 21.50 0.00 1,000,850 Areej Vegetable Oils Saoc 0.00 0.00 - Solidarity Saudi Takaful Co 17.48 -2.07 266,098 Gulf Investment House Ksc 37.50 -3.85 2,035,969 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 18.08 -1.31 185,388 Boubyan Bank K.S.C 410.00 3.80 1,495,644 Al-Omaniya Financial Service 0.28 0.00 - Alabdullatif Industrial Inv 13.55 -1.09 67,791 Ahli United Bank B.S.C 206.00 0.00 213,090 Al-Hassan Engineering Co 0.05 0.00 - Saudi Printing & Packaging C 16.26 -0.67 154,669 Osos Holding Group Co 138.00 0.00 388,530 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 88.00 0.00 9 Al-Anwar Ceramic Tiles Co 0.15 0.00 1,659,803 Saudi Paper Manufacturing Co 7.90 -0.63 433,741 Qurain Petrochemical Industr 325.00 0.00 76,675 Al Suwadi Power 0.18 0.00 - Alinma Bank 14.33 -0.28 26,770,794 Advanced Technology Co 1,100.00 0.00 1,015 Al Shurooq Inv Ser 0.00 0.00 - Almarai Co 74.47 0.22 787,356 Ekttitab Holding Co Sak 36.00 0.00 5,078,425 Al Sharqiya Invest Holding 0.12 0.86 1,610,628 Falcom Saudi Equity Etf 27.90 0.36 186,794 Kout Food Group Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.44 0.00 300 QATAR United International Transpo 22.16 -1.12 171,970 Real Estate Trade Centers Co 40.50 -5.81 226,822 Al Maha Ceramics Co Saoc 0.36 -1.10 30,501 Hsbc Amanah Saudi 20 Etf 27.70 0.00 - Acico Industries Co Kscc 280.00 3.16 3 Al Madina Takaful Co Saoc 0.10 -0.98 777,019 Company Name Lt Price % Chg Volume Saudi International Petroche 16.10 -4.11 1,747,428 Kipco Asset Management Co 81.00 -5.81 129,137 Al Madina Investment Co 0.07 -1.49 361,155 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 1,480.00 1.37 2,904 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 79.20 0.00 - Saudi United Cooperative Ins 27.72 -2.74 329,349 Alimtiaz Investment Co Kscc 156.00 -1.27 3,372,421 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 61.90 -0.16 16,030 Bank Al-Jazira 11.48 -0.61 1,404,111 Ras Al Khaimah White Cement 99.00 0.00 1,660 Al Jazeera Steel Products Co 0.27 0.00 - Vodafone Qatar 9.19 0.99 5,403,827 Al Rajhi Bank 62.63 -0.73 1,498,859 Kuwait Reinsurance Co Ksc 196.00 4.26 5 Al Jazeera Services 0.16 0.00 91,083 United Development Co 19.21 0.31 138,036 Samba Financial Group 21.20 1.00 381,402 Kuwait & Gulf Link Transport 58.00 -1.69 264,012 Al Izz Islamic Bank 0.07 0.00 271,636 Salam International Investme 10.35 0.29 17,139 United Electronics Co 37.72 1.15 298,377 Human Soft Holding Co Ksc 3,900.00 0.52 278,808 Al Buraimi Hotel 0.88 0.00 - Qatar & Oman Investment Co 9.33 1.19 4,136 Allied Cooperative Insurance 12.74 -0.31 234,907 Automated Systems Co Kscc 255.00 -8.93 1,234 Al Batinah Power 0.17 0.00 - Qatar Navigation 68.50 1.48 621,293 Malath Insurance 21.29 -2.11 125,165 Metal & Recycling Co 83.00 6.41 32,990 Al Batinah Hotels 1.13 0.00 - Qatar National Cement Co 70.30 -0.14 58,636 Alinma Tokio Marine 26.24 0.02 - Gulf Franchising Holding Co 56.00 -8.20 149,437 Al Batinah Dev & Inv 0.09 0.00 - Qatar National Bank 141.80 1.72 88,193 Arabian Shield Cooperative 49.33 -2.08 70,816 Al-Enma’a Real Estate Co 39.50 0.00 169,800 Al Anwar Holdings Saog 0.21 0.00 806,407 Qatar Islamic Insurance 61.90 3.17 1,081 Savola 41.21 -2.58 562,667 National Mobile Telecommuni 1,220.00 -1.61 467 Ahli Bank 0.18 -1.64 110,962 Qatar Industrial Manufactur 43.30 -0.46 878 Wafrah For Industry And Deve 21.71 -2.03 142,656 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.74 0.00 - Qatar International Islamic 61.40 0.49 58,493 Fitaihi Holding Group 12.43 -0.56 909,612 Housing Finance Co Sak 0.00 0.00 - Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 58.10 1.22 19,892 Tourism Enterprise Co/ Shams 28.41 -2.24 92,470 Al Salam Group Holding Co 50.00 5.26 7,362,191 A’saff a Foods Saog 0.59 0.00 - Qatar Islamic Bank 100.50 1.01 55,910 Sahara Petrochemical Co 13.86 -1.28 1,853,711 United Foodstuff Industries 0.00 0.00 - 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 19.14 0.16 287,527 Herfy Food Services Co 80.59 -0.16 54,749 Al Aman Investment Company 49.00 4.26 217,890 Qatar General Insurance & Re 40.65 6.97 6,500 Mashaer Holdings Co Ksc 0.00 0.00 - Qatar German Co For Medical 9.00 0.00 52,259 Manazel Holding 48.50 -1.02 3,122,261 Qatar Fuel Qsc 121.80 2.96 147,126 Mushrif Trading & Contractin 0.00 0.00 - Qatar First Bank 8.29 -0.60 400,422 KUWAIT Tijara And Real Estate Inves 54.00 -6.90 4,993 Qatar Electricity & Water Co 207.00 -0.48 25,393 Kuwait Building Materials 136.00 0.00 295 Qatar Cinema & Film Distrib 32.35 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 495.00 -1.00 40,453 Qatar Insurance Co 71.00 0.00 567,872 Commercial Real Estate Co 75.00 1.35 10 Ooredoo Qsc 106.90 0.85 70,132 Securities Group Co 99.00 0.00 50 Future Communications Co 0.00 0.00 - National Leasing 16.90 0.30 9,000 Sultan Center Food Products 0.00 0.00 - National International Co 64.00 1.59 1,088,806 Mazaya Qatar Real Estate Dev 12.30 0.41 549,526 Kuwait Foundry Co Sak 285.00 -6.56 2,996 Taameer Real Estate Invest C 36.50 1.39 2,294,350 UAE Mesaieed Petrochemical Holdi 14.50 1.75 202,576 Kuwait Financial Centre Sak 99.00 0.00 25 Gulf Cement Co 79.00 0.00 104,898 Company Name Al Meera Consumer Goods Co 153.90 0.59 29,247 Ajial Real Estate Entmt 168.00 0.00 758 Heavy Engineering And Ship B 216.00 0.00 59,948 Lt Price % Chg Volume Medicare Group 96.80 -1.12 37,795 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 77.20 0.26 917 Kuwait Finance & Investment 39.50 -3.66 106,611 National Real Estate Co 104.00 4.00 2,847,056 Waha Capital Pjsc 1.82 -0.55 782,385 Masraf Al Rayan 42.75 1.18 305,953 National Industries Co Ksc 212.00 0.00 2 Al Safat Energy Holding Comp 40.00 3.90 186,965 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 14.65 0.34 500 Kuwait Real Estate Holding C 35.50 1.43 71,046 Kuwait National Cinema Co 1,120.00 -8.20 299 United Arab Bank Pjsc 1.56 0.00 - Industries Qatar 104.80 1.65 414,533 Securities House/The 44.00 2.33 5,757,204 Danah Alsafat Foodstuff Co 80.00 -3.61 4,834,139 Union National Bank/Abu Dhab 4.99 -0.20 263,883 Islamic Holding Group 62.50 0.81 20,677 Boubyan Petrochemicals Co 570.00 0.00 4,577 Independent Petroleum Group 425.00 3.66 2 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 51.00 0.39 13,235 Al Ahli Bank Of Kuwait 310.00 0.00 11,102 Kuwait Real Estate Co Ksc 54.00 0.00 1,421,533 Union Cement Co 1.17 0.00 - Gulf International Services 23.93 -0.21 146,304 Ahli United Bank (Almutahed) 410.00 0.00 414,956 Salhia Real Estate Co Ksc 370.00 0.00 796,909 Umm Al Qaiwain Cement Indust 1.78 0.00 - Ezdan Holding Group 15.89 2.19 1,489,708 National Bank Of Kuwait 670.00 0.00 702,801 Gulf Cable & Electrical Ind 415.00 -4.60 47,002 Sharjah Islamic Bank 1.40 0.00 - Doha Insurance Co 16.02 0.06 786 Commercial Bank Of Kuwait 365.00 -6.41 11,002 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 31.80 2.58 120,482 Kuwait International Bank 246.00 0.82 449,999 Kuwait Finance House 490.00 1.03 4,590,751 Sharjah Group 1.49 0.00 - Dlala Holding 25.25 -0.20 55,652 Gulf Bank 244.00 0.00 78,585 Gulf North Africa Holding Co 35.50 0.00 801,239 Sharjah Cement & Indus Devel 1.00 -9.09 491,855 Commercial Bank Qsc 29.50 0.68 182,379 Al-Massaleh Real Estate Co 44.50 3.49 161,200 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 33.40 2.30 305,444 Al Arabiya Real Estate Co 33.50 1.52 1,307,383 Osoul Investment Kscc 58.00 0.00 47,011 Ras Al Khaimah White Cement 1.06 0.00 - Al Khaleej Takaful Group 19.49 0.00 1,000 Kuwait Remal Real Estate Co 65.00 8.33 3,686,208 Gulf Insurance Group Ksc 550.00 0.00 5 Ras Al Khaimah Ceramics 2.43 1.25 410,000 Aamal Co 13.06 0.15 32,154 Alkout Industrial Projects C 690.00 0.00 2 Kuwait Food Co (Americana) 2,440.00 0.00 1,501 Ras Al Khaimah Cement Co Psc 0.77 -4.94 4,811 A’ayan Real Estate Co Sak 79.00 1.28 40,118 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.70 0.00 - Investors Holding Group Co.K 24.50 2.08 3,862,591 Aayan Leasing & Investment 44.00 -2.22 4,501,274 Rak Properties 0.60 0.00 1,661,123 Al-Mazaya Holding Co 110.00 0.00 393,061 Ooredoo Qsc 100.00 0.00 150 SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 0.78 0.00 - Gulf Petroleum Investment 40.50 -1.22 6,665,635 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 830.00 2.47 697,413 OMAN 0.58 - City Group 0.00 0.00 - National Marine Dredging Co 4.50 0.00 - National Investor Co/The 0.52 0.00 - United Wire Factories Compan 19.15 -2.35 500,945 Inovest Co Bsc 100.00 4.17 290,275 Company Name Lt Price % Chg Volume Etihad Etisalat Co 20.95 -0.43 412,833 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 2.45 0.00 - Dar Al Arkan Real Estate Dev 6.30 0.32 58,234,134 Al-Deera Holding Co 33.00 1.54 299,790 Voltamp Energy Saog 0.45 0.00 773 National Bank Of Umm Al Qaiw 2.99 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 260.00 0.00 1 United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 4.40 0.00 9,037,379 Rabigh Refining And Petroche 14.50 -3.14 5,955,754 Mena Real Estate Co 0.00 0.00 - United Power Co Saog 3.55 0.00 - National Bank Of Fujairah 2.90 0.00 - Banque Saudi Fransi 26.10 0.00 145,571 National Slaughter House 40.00 0.00 6,404 United Finance Co 0.13 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 15.93 -1.91 180,508 Amar Finance & Leasing Co 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.82 0.00 - Mediterranean & Gulf Insuran 19.90 -9.79 84,604 United Projects For Aviation 840.00 0.00 13,684 Takaful Oman 0.17 0.00 - Manazel Real Estate Pjsc 0.54 -1.82 6,949,654 Saudi British Bank 22.00 0.92 451,487 National Consumer Holding Co 90.00 0.00 70 Taageer Finance 0.12 0.00 - Invest Bank 2.40 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 72.00 7.46 408,731 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 1.59 -1.85 1,347,155 Red Sea International Co 24.00 -5.14 143,195 Jeeran Holdings 49.50 0.00 10,050 Sohar Power Co 0.16 1.92 52,050 Insurance House 0.80 2.56 95,823 Takween Advanced Industries 11.95 -0.91 547,933 Equipment Holding Co K.S.C.C 56.00 -3.45 2,124,494 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Ind Psc 2.39 6.22 70,000 Sabb Takaful 26.67 -2.66 136,956 Nafais Holding 140.00 0.00 4,002 Smn Power Holding Saog 0.70 0.00 - Gulf Medical Projects 3.96 14.78 1,200 Saudi Arabian Fertilizer Co 66.73 -0.03 132,355 Safwan Trading & Contracting 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 1.01 9.78 162,505 National Gypsum 13.26 -0.97 156,093 Arkan Al Kuwait Real Estate 78.00 0.00 195,937 Shell Oman Marketing 1.88 0.00 85,760 Fujairah Cement Industries 0.91 0.00 - Saudi Ceramic Co 27.93 -1.41 88,749 Gfh Financial Group Bsc 190.00 -1.04 27,898 Sharqiyah Desalination Co Sa 4.35 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 32.75 -2.82 70,779 Energy House Holding Co Kscp 42.50 0.00 140,749 Sembcorp Salalah Power & Wat 0.24 0.00 - Foodco Holding Pjsc 5.99 0.00 - Saudi Pharmaceutical Industr 34.29 -1.18 54,032 Kuwait Slaughter House Co 184.00 0.00 1 Salalah Port Services 0.63 0.00 - First Gulf Bank 0.00 0.00 - Thimar 32.39 -0.61 169,352 Kuwait Co For Process Plant 166.00 -2.35 1,003 Salalah Mills Co 1.33 -3.97 53,067 Finance House 1.60 0.00 - National Industrialization C 15.15 -7.96 5,047,966 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 1.07 -0.93 7,323,897 Saudi Transport And Investme 0.00 0.00 - National Ranges Company 27.50 1.85 1,058,610 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 17.90 0.85 1,869,798 Saudi Electricity Co 23.52 -1.42 1,510,814 Al-Themar Real International 80.00 0.00 196,413 Renaissance Services Saog 0.22 0.00 23,000 Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 33.20 -0.95 199,795 Al-Ahleia Insurance Co Sakp 490.00 0.00 10,002 Raysut Cement Co 1.09 0.00 2,744 Emirates Driving Company 8.75 0.00 - Arriyadh Development Company 19.91 -0.85 82,593 Wethaq Takaful Insurance Co 53.00 1.92 10 Port Service Corporation 0.23 0.00 - Dana Gas 0.44 2.33 19,248,913 Al-Baha Development & Invest 22.50 0.00 - Salbookh Trading Co Kscp 59.00 0.00 168,972 Phoenix Power Co Saoc 0.13 -0.75 170,141 Commercial Bank Internationa 1.58 0.00 - Saudi Research And Marketing 28.00 -0.60 170,012 Aqar Real Estate Investments 82.00 0.00 10,000 Packaging Co Ltd 2.21 0.00 - Bank Of Sharjah 1.44 0.00 - Aldrees Petroleum And Transp 24.53 -1.72 203,862 Hayat Communications 85.00 0.00 5,464 Ooredoo 0.51 0.39 99,904 Axa Green Crescent Insurance 0.66 0.00 - Saudi Vitrified Clay Pipe Co 55.25 -0.29 12,516 Kuwait Packing Materials Mfg 0.00 0.00 - Ominvest 0.51 0.00 16,527 Arkan Building Materials Co 0.70 1.45 1,262,045 Jarir Marketing Co 143.00 0.80 48,290 Soor Fuel Marketing Co Ksc 122.00 -1.61 10,035 Oman United Insurance Co 0.36 0.00 - Alkhaleej Investment 1.20 0.00 - Arab National Bank 19.30 0.26 240,625 Alargan International Real 186.00 0.00 3,006 Oman Textile Holding Co Saog 0.68 0.00 - Aldar Properties Pjsc 2.28 1.33 11,519,062 Yanbu National Petrochemical 54.73 0.11 140,806 Burgan Co For Well Drilling 88.00 2.33 11,000 Oman Telecommunications Co 1.30 0.00 19,192 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 35.50 0.25 79,379 Kuwait Resorts Co Kscc 79.00 0.00 183,000 Oman Refreshment Co 2.06 0.00 - Al Khazna Insurance Co 0.40 0.00 111,000 Middle East Specialized Cabl 7.08 -1.39 877,089 Oula Fuel Marketing Co 120.00 -1.64 6,772 Oman Packaging 0.28 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 17.22 -2.38 119,742 Palms Agro Production Co 110.00 0.00 15 Oman Orix Leasing Co. 0.12 0.85 74,502 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 32.47 -2.08 783,177 Ikarus Petroleum Industries 0.00 0.00 - Oman Oil Marketing Company 1.66 0.00 26 Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 17.71 -3.12 410,125 Mubarrad Transport Co 78.00 1.30 154,741 Oman National Engineering An 0.15 -2.67 15,171 Al Ain Ahlia Ins. Co. 50.00 0.00 - Arabia Insurance Cooperative 13.42 -2.19 913,010 Al Mowasat Health Care Co 335.00 0.00 24,001 Oman Investment & Finance 0.20 -1.95 355,820 Agthia Group Pjsc 5.95 -4.03 480,100 Saudi Chemical Company 33.89 2.42 377,233 Shuaiba Industrial Co 275.00 -5.17 34,030 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.63 0.00 - Fawaz Abdulaziz Alhokair & C 35.20 0.03 634,279 Hits Telecom Holding 43.00 2.38 4,886,751 Oman Hotels & Tourism Co 0.40 0.00 - Abu Dhabi Natl Co For Buildi 0.55 -5.17 58,000 Bupa Arabia For Cooperative 112.04 -6.24 146,086 First Takaful Insurance Co 59.00 -3.28 67,160 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 5.15 0.00 - Wafa Insurance 13.31 -0.67 1,035,785 Kuwaiti Syrian Holding Co 36.50 4.29 1,941,295 Oman Flour Mills 0.92 0.00 - Abu Dhabi National Insurance 3.00 0.00 - Jabal Omar Development Co 68.20 1.41 216,983 National Cleaning Company 44.50 1.14 762,515 Oman Fisheries Co 0.15 -1.33 811,932 Abu Dhabi National Hotels 3.20 0.00 - Saudi Basic Industries Corp 96.60 -0.25 2,898,227 Eyas For High & Technical Ed 420.00 0.00 2 Oman Fiber Optics 0.00 0.00 - Abu Dhabi National Energy Co 0.63 12.50 12,356,007 Saudi Kayan Petrochemical Co 8.58 -0.81 6,422,233 United Real Estate Company 85.00 -3.41 78,047 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.58 -0.56 649,950 Etihad Atheeb Telecommunicat 8.70 -1.02 273,018 Agility 640.00 3.23 1,174,819 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 96.22 -0.69 31,036 Kuwait & Middle East Fin Inv 28.50 0.00 346 Oman Chromite 3.64 0.00 - National Petrochemical Co 18.25 -4.25 448,575 Fujairah Cement Industries 84.00 -2.33 200,010 Oman Chlorine 0.49 0.00 - BAHRAIN Gulf Union Cooperative Insur 12.26 -2.00 451,475 Livestock Transport & Tradng 224.00 -3.45 1,000 Oman Ceramic Company 0.42 0.00 - Gulf General Cooperative Ins 16.52 -6.82 986,159 International Resorts Co 35.50 7.58 1,845,161 Oman Cement Co 0.45 0.00 24,300 Basic Chemical Industries 22.97 -9.57 886,157 National Industries Grp Hold 114.00 0.00 1,421,331 Oman Cables Industry 1.60 0.00 21,500 Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 0.38 Marine Services Co Ksc 0.00 15.96 97,007 62.00 45,799 Oman Agricultural Dev 0.00 0.00 - Zain Bahrain Bscc 0.10 0.00 40,000 Buruj Cooperative Insurance -2.08 Warba Insurance Co 0.00 32.01 601,694 92.00 10,666 Oman & Emirates Inv(Om)50% 0.12 -3.28 58,450 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -0.01 Kuwait United Poultry Co 0.00 145.99 14,925 0.00 - Natl Aluminium Products 0.16 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -0.80 First Dubai Real Estate Deve 0.00 53.53 77,995 52.00 1,014,145 National Securities 0.05 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah -2.48 Al Arabi Group Holding Co 0.00 21.60 194,158 96.00 6,110 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.25 0.00 10,000 Yamama Cement Co -0.06 Kuwait Hotels Sak 0.00 17.74 97,506 0.00 - National Pharmaceutical 0.11 0.00 9 Takaful International Co 0.00 0.00 - Jazan Development Co -0.36 Mobile Telecommunications Co 1.16 13.70 113,792 435.00 1,016,725 National Mineral Water 0.05 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.54 Al Safat Real Estate Co 0.00 28.12 144,689 0.00 - National Hospitality Institu 0.00 0.00 - Seef Properties 0.24 -0.82 150,000 Alujain Corporation (Alco) 1.19 Tamdeen Real Estate Co Ksc 0.00 23.82 1,183,994 420.00 2 National Gas Co 0.39 0.00 - Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -0.50 Al Mudon Intl Real Estate Co 0.00 11.93 1,026,704 41.50 5,078,690 National Finance Co 0.14 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -1.41 Kuwait Cement Co Ksc -2.02 12.61 382,170 485.00 1,734 National Detergent Co Saog 0.68 0.00 - National Bank Of Bahrain Bsc 0.67 0.00 11,000 Qassim Cement/The 0.20 Sharjah Cement & Indus Devel 0.00 49.80 40,117 91.00 8 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.14 0.00 65,000 Saudi Advanced Industries -3.33 Kuwait Portland Cement Co 0.00 12.79 265,994 970.00 12,007 National Bank Of Oman Saog 0.23 0.00 154,137 Khaleeji Commercial Bank 0.12 0.00 114,822 Kingdom Holding Co 0.00 Educational Holding Group -1.67 10.30 27,587 295.00 12,697 Muscat Thread Mills Co 0.08 0.00 - Ithmaar Holding Bsc 0.15 0.00 300,000 Saudi Arabian Amiantit Co -4.41 Bahrain Kuwait Insurance 0.00 6.07 1,345,196 0.00 - Muscat National Holding 0.86 0.00 - Investcorp Bank -$Us 8.50 0.00 9,500 Al Jouf Agriculture Developm -1.06 Asiya Capital Investments Co 2.70 29.77 102,921 38.00 126,789 Muscat Gases Company Saog 0.56 0.00 - Inovest Co Bsc 0.30 0.00 15,000 Saudi Industrial Development -1.72 Kuwait Investment Co 0.00 10.84 279,234 94.00 798,639 Muscat Finance 0.12 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.52 69.75 - 335.00 934,466 Majan Glass Company 0.19 0.00 - Gulf Hotel Group B.S.C 0.55 0.93 53,025 Riyad Bank -0.29 Kuwait Projects Co Holdings 2.63 10.19 2,137,023 390.00 697,684 Majan College 0.49 0.00 - Gfh Financial Group Bsc 0.65 0.00 28,000 The National Agriculture Dev -4.48 Al Madina For Finance And In 4.44 27.96 611,334 47.00 5,067,400 Hsbc Bank Oman 0.13 0.75 50,250 Esterad Investment Co B.S.C. 0.12 0.00 18,915 Halwani Bros Co 0.47 Kuwait Insurance Co 1.92 50.99 21,108 265.00 10,000 Hotels Management Co Interna 1.25 0.00 - Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -1.80 Al Masaken Intl Real Estate 0.00 15.30 723,589 73.00 14 Gulf Stone 0.12 0.00 - Bmmi Bsc 0.82 0.00 16,000 Eastern Province Cement Co 0.19 Intl Financial Advisors -2.50 26.70 50,438 39.00 2,464,121 Gulf Plastic Industries Co 0.00 0.00 - Bmb Investment Bank 0.05 0.00 61,091,823 Al Gassim Investment Holding 0.00 First Investment Co Kscc 5.68 0.00 - 46.50 1,167,384 Gulf Mushroom Company 0.31 0.00 - Bbk Bsc 0.38 0.53 5,000 Filing & Packing Materials M -0.27 Al Mal In -5.26 33.51 45,576 vestment Company 18.00 5,706,735 Gulf Investments Services 0.10 -0.95 257,468 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 1.04 5.75 - Bayan Investment Co Kscc 48.50 3,446,189 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Banader Hotels Co 0.07 0.00 57,832 Tihama Advertising & Public -1.88 0.00 37.02 232,263 Egypt Kuwait Holding Co Sae 198.00 2,000 Gulf International Chemicals 0.24 0.00 - Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.00 0.00 12.55 20,989 Coast Investment Development 42.50 1,567,135 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Telecom Co 0.26 0.00 50,000 Astra Industrial Group -2.00 -1.00 16.63 264,701 Privatization Holding Compan 49.50 986,020 Global Fin Investment 0.16 0.00 - Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co -1.17 0.00 14.40 426,904 Kuwait Medical Services Co 0.00 - Galfar Engineering&Contract 0.08 0.00 135,502 Bahrain National Holding 0.39 0.00 6,384 Taiba Holding Co -1.64 0.00 42.10 49,202 Injazzat Real State Company 93.00 5,000 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Kuwait Insurance 0.54 0.00 24,022 Saudi Industrial Export Co -3.64 0.00 29.12 169,204 Kuwait Cable Vision Sak 0.00 - Financial Services Co. 0.11 0.00 - Bahrain Islamic Bank 0.14 0.00 21,114 Saudi Real Estate Co -0.48 0.00 20.85 920,893 Sanam Real Estate Co Kscc 50.00 120 Financial Corp/The 0.10 0.00 - Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 0.71 1.10 127.94 18,871 Ithmaar Holding Bsc 46.00 7,329,450 Dhofar University 1.49 0.00 - Bahrain Family Leisure Co 0.08 0.00 150,000 National Shipping Co Of/The -0.64 0.00 35.71 793,679 Aviation Lease And Finance C 265.00 150,012 Dhofar Tourism 0.49 0.00 - Bahrain Duty Free Complex 0.77 -0.65 95,000 Methanol Chemicals Co -1.14 0.00 6.92 1,749,265 Arzan Financial Group For Fi 36.00 367,622 Dhofar Poultry 0.18 0.00 - Bahrain Commercial Facilitie 0.68 -0.73 87,500 Ace Arabia Cooperative Insur -3.39 2.20 47.33 180,613 Ajwan Gulf Real Estate Co 93.00 10 Dhofar Intl Development 0.29 0.00 10,823 Bahrain Cinema Co 1.30 0.00 28,442 Mobile Telecommunications Co -0.30 0.00 10.07 2,295,925 Kuwait Business Town Real Es 51.00 1,013,690 Dhofar Insurance 0.20 0.00 - Bahrain Car Park Co 0.14 0.00 17,892 Saudi Arabian Coop Ins Co -6.63 0.00 20.98 1,384,077 Future Kid Entertainment And 118.00 25 Dhofar Fisheries & Food Indu 1.28 0.00 - Arab Insurance Group(Bsc)-$ 0.45 0.00 120,000 Axa Cooperative Insurance -4.23 -2.27 23.10 1,063,318 Specialities Group Holding C 86.00 26,010 Dhofar Cattlefeed 0.19 0.00 - Arab Banking Corp Bsc-$Us 0.30 0.00 190,000 Alsorayai Group -1.52 2.04 8.41 254,664 Abyaar Real Eastate Developm 25.00 9,195,189 Dhofar Beverages Co 0.26 0.00 - Aluminium Bahrain Bsc 0.41 0.00 128,885 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 204.00 10 Construction Materials Ind 0.03 0.00 20,000 Albaraka Banking Group 0.44 -1.14 11,491 Bank Albilad -1.09 0.00 18.10 702,396 Al-Dar National Real Estate 0.00 - Computer Stationery Inds 0.26 0.00 - Al-Salam Bank 0.10 -2.02 114,000 Al-Hassan G.I. Shaker Co -2.01 5.56 14.59 128,374 Kgl Logistics Company Kscc 57.00 754,737 Bankmuscat Saog 0.40 0.50 273,309 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -7.85 0.00 27.95 1,174,409 Combined Group Contracting 550.00 676,144 Bank Sohar 0.15 2.07 159,031 Ahli United Bank B.S.C 0.67 0.00 1,104,338 Abdullah Al Othaim Markets 104.00 -0.48 5,646 Zima Holding Co Ksc 55.00 -1.79 1,785,522 Bank Nizwa 0.09 0.00 277,351 Hail Cement 10.09 -3.35 506,342 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.23 0.00 156,000 LATEST MARKET CLOSING FIGURES Gulf Times 6 Friday, May 12, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 20,856.98 -86.13 Apple Inc 152.64 -0.40 12,576,398 S&P 500 Index 2,387.14 -12.49 Microsoft Corp 68.25 -1.54 12,366,303 Nasdaq Composite Index 6,095.17 -33.97 Exxon Mobil Corp 82.37 0.56 3,958,011 S&P/Tsx Composite Index 15,590.23 -42.98 Johnson & Johnson 122.34 -0.38 1,519,719 Mexico Bolsa Index 49,554.50 -376.04 General Electric Co 28.61 -0.33 9,558,597 Brazil Bovespa Stock Idx 67,550.59 +200.86 Jpmorgan Chase & Co 87.15 -0.32 4,846,888 Ftse 100 Index 7,386.63 +1.39 Procter & Gamble Co/The 86.03 -0.53 2,237,597 Cac 40 Index 5,383.42 -17.04 Wal-Mart Stores Inc 76.15 -0.72 2,554,737 Dax Index 12,711.06 -46.40 Verizon Communications Inc 46.10 -0.59 4,981,202 Ibex 35 Tr 10,861.40 -173.40 Pfizer Inc 32.91 -0.36 9,091,374 Nikkei 225 19,961.55 +61.46 Visa Inc-Class A Shares 92.04 -0.23 1,863,407 Japan Topix 1,586.86 +1.67 Chevron Corp 105.94 -0.53 1,603,506 Hang Seng Index 25,125.55 +110.13 Coca-Cola Co/The 43.49 -0.18 2,651,337 All Ordinaries Indx 5,912.03 +0.94 Intel Corp 35.52 -1.36 9,246,053 Nzx All Index 1,375.26 +11.20 Merck & Co. Inc. 64.48 0.84 10,395,115 Bse Sensex 30 Index 30,250.98 +2.81 Cisco Systems Inc 33.56 -0.53 6,150,451 Nse S&P Cnx Nifty Index 9,422.40 +15.10 Home Depot Inc 156.17 -1.24 1,541,177 Straits Times Index 3,271.11 +21.14 Intl Business Machines Corp 150.08 -0.77 1,860,164 Karachi All Share Index 35,194.19 +260.33 Walt Disney Co/The 108.99 -0.61 3,602,368 Jakarta Composite Index 5,653.01 -44.05 Unitedhealth Group Inc 172.54 -0.49 676,308 3M Co 195.99 -0.33 545,517 Mcdonald’s Corp 144.01 -0.35 741,100 Nike Inc -Cl B 53.97 -1.08 3,092,493 TOKYO United Technologies Corp 120.71 -0.26 909,638 Boeing Co/The 183.81 0.34 1,098,199 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 224.01 -0.39 1,228,064 Rakuten Inc 1,161.00 -1.02 6,368,500 American Express Co 77.76 -1.13 1,535,639 Kyocera Corp 6,664.00 -0.24 826,900 Du Pont (E.I.) De Nemours 78.58 -0.76 1,264,271 Nissan Motor Co Ltd 1,075.00 0.00 9,104,400 Caterpillar Inc 101.57 1.21 2,744,974 Hitachi Ltd 631.70 -0.52 16,357,000 Travelers Cos Inc/The 119.89 -0.66 535,448 Takeda Pharmaceutical Co Ltd 5,623.00 2.44 4,111,700 Jfe Holdings Inc 1,862.50 -1.90 3,709,100 Ana Holdings Inc 345.00 0.70 11,186,000 FTSE 100 Mitsubishi Electric Corp 1,649.00 0.12 5,132,000 Sumitomo Mitsui Financial Gr 4,251.00 1.12 7,057,200 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,250.00 0.62 4,119,400 Fast Retailing Co Ltd 38,570.00 0.29 460,100 Wpp Plc 1,705.00 0.35 4,738,208 Ms&Ad Insurance Group Holdin 3,732.00 0.05 1,773,000 Worldpay Group Plc 314.20 -0.29 4,620,683 The Sterling pound suff ered from news of falling industrial production in Britain and a widening of the country’s trade Kubota Corp 1,693.50 -3.59 6,325,200 Wolseley Plc 4,989.00 -0.72 534,619 deficit. Seven & I Holdings Co Ltd 4,801.00 -0.91 2,092,500 Wm Morrison Supermarkets 242.10 -0.08 10,078,360 Inpex Corp 1,105.50 0.82 4,552,300 Whitbread Plc 4,092.00 -0.53 629,027 Resona Holdings Inc 616.00 0.97 11,598,800 Vodafone Group Plc 206.25 -0.17 69,987,983 Asahi Kasei Corp 1,126.00 1.90 6,372,000 United Utilities Group Plc 1,022.00 -0.68 1,674,024 Kirin Holdings Co Ltd 2,258.50 0.24 2,401,300 Unilever Plc 4,085.50 0.16 2,498,392 Marubeni Corp 721.70 -0.28 9,747,600 Tui Ag-Di 1,180.00 0.00 937,799 Mitsubishi Ufj Financial Gro 739.40 1.61 69,233,400 Travis Perkins Plc 1,617.00 -1.40 829,581 Mitsubishi Chemical Holdings 906.90 0.54 5,204,400 Tesco Plc 180.35 -1.64 18,793,422 British pound dips after Fanuc Corp 22,890.00 -0.02 679,300 Taylor Wimpey Plc 198.60 -0.95 15,186,758 Daito Trust Construct Co Ltd 16,965.00 -0.29 290,400 Standard Life Plc 385.10 -0.10 5,641,185 Otsuka Holdings Co Ltd 5,160.00 0.14 1,341,000 Standard Chartered Plc 752.50 2.46 17,008,972 Oriental Land Co Ltd 6,832.00 0.89 947,100 St James’s Place Plc 1,166.00 -0.51 1,074,892 Sekisui House Ltd 1,908.50 -0.31 3,959,100 Sse Plc 1,449.00 -1.02 4,994,266 Secom Co Ltd 8,375.00 -0.30 521,400 Smith & Nephew Plc 1,309.00 0.38 3,592,179 Bank of England update Tokio Marine Holdings Inc 4,971.00 0.57 1,893,200 Sky Plc 997.00 0.05 1,874,967 Aeon Co Ltd 1,689.00 -0.47 1,662,200 Shire Plc 4,682.50 0.35 2,310,448 tected a slightly more aggressive tone reinforced expectations for further US Mitsui & Co Ltd 1,562.50 -0.45 7,614,300 AFP Severn Trent Plc 2,425.00 -0.74 901,740 from the central bank on rate policy interest rate hikes. Kao Corp 6,712.00 1.79 3,130,400 London Schroders Plc 3,266.00 -0.34 327,275 further down the road. Both main crude contracts extended Dai-Ichi Life Holdings Inc 1,970.00 -0.43 5,445,500 Sainsbury (J) Plc 265.10 -2.43 8,384,293 Mazda Motor Corp 1,594.50 -0.44 5,225,100 Ahead of the update, offi cial data Wednesday’s strong gains seen after Sage Group Plc/The 687.50 -0.51 2,610,661 Komatsu Ltd 2,860.00 -0.97 5,498,300 he pound came under pressure showed that UK industrial output data showed a drop in US inventories Sabmiller Plc 0.00 0.00 - West Japan Railway Co 7,568.00 0.11 548,000 yesterday as investors digested a slipped 0.5% in March to record a third almost three times more than forecast, Rsa Insurance Group Plc 615.00 -0.32 4,104,959 Murata Manufacturing Co Ltd 16,305.00 -0.09 618,800 mixed bag of messages from the monthly drop in a row. fanning hopes of rising demand as the Royal Mail Plc 423.00 0.62 3,684,077 T Kansai Electric Power Co Inc 1,554.50 0.55 3,320,400 Royal Dutch Shell Plc-B Shs 2,195.00 1.22 8,427,846 Bank of England’s latest update, while While the trade defi cit hit a six- American holiday driving season kicks Denso Corp 4,982.00 0.73 1,209,400 Royal Dutch Shell Plc-A Shs 2,132.50 0.95 5,176,661 the benchmark FTSE stock index trod month high in March on rising imports, off . Sompo Holdings Inc 4,461.00 -0.20 948,700 Royal Bank Of Scotland Group 260.80 -0.87 18,766,151 Daiwa House Industry Co Ltd 3,611.00 1.80 2,923,900 water. “there are signs that UK exports are Traders have also been buoyed by Rolls-Royce Holdings Plc 871.50 -0.34 5,530,852 Jxtg Holdings Inc 508.10 -0.84 16,339,100 Sterling also suff ered from news of benefi ting from the weakened pound hopes that Opec and Russia’s much- Rio Tinto Plc 2,990.00 0.40 7,259,453 Nippon Steel & Sumitomo Meta 2,521.00 -0.85 2,175,400 falling industrial production in Britain as well as decent global growth”, Archer vaunted output cuts that started in Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,000.00 2.15 2,053,400 January appear to be gaining traction, Relx Plc 1,604.00 -0.06 4,000,447 and a widening of the country’s trade added. Nippon Telegraph & Telephone 5,085.00 0.69 3,665,300 Reckitt Benckiser Group Plc 7,301.00 0.40 1,474,348 defi cit. Other European markets were also with the key producers also likely to Ajinomoto Co Inc 2,250.00 1.83 2,336,100 Randgold Resources Ltd 7,150.00 3.62 683,361 The FTSE 100 was fl at at 7,386.63 softer as “global political uncertainty extend the agreement past its end-June Mitsui Fudosan Co Ltd 2,576.50 -0.44 3,558,800 Prudential Plc 1,760.50 -0.31 4,656,945 points, Frankfurt’s DAX 30 was down continues to fester” as Charles Schwab deadline. Ono Pharmaceutical Co Ltd 2,337.00 -4.46 9,580,100 Provident Financial Plc 3,265.00 0.43 500,314 Daikin Industries Ltd 11,055.00 -0.72 1,240,700 0.4% at 12,711.06, Paris’ CAC 40 was analysts put it. And yesterday, the Opec called on oil Persimmon Plc 2,405.00 -0.25 1,141,058 Bank Of Yokohama Ltd/The 0.00 0.00 - down 0.3% at 5,383.42 points and the Wall Street was lower approach- producers to make “collective eff orts” Pearson Plc 709.00 -1.66 3,891,545 Toray Industries Inc 946.30 -0.82 12,753,900 EURO STOXX 50 was down 0.5% at ing midday in New York after a disap- to match supply and demand in the oil Paddy Power Betfair Plc 8,275.00 -0.60 90,120 Astellas Pharma Inc 1,429.00 -0.63 15,947,000 Old Mutual Plc 195.60 0.51 10,735,343 3,623.55 points yesterday. pointing earnings report from Macy’s market in the face of rising output in Bridgestone Corp 4,804.00 0.67 2,347,300 Next Plc 4,302.00 -2.25 690,236 The Bank of England kept leading pointed to weakness in the American the US. Sony Corp 4,073.00 -0.20 5,245,100 National Grid Plc 1,032.50 -0.67 10,792,820 interest rates unchanged and stimulus retail sector. All of which is welcome news for Hoya Corp 5,504.00 -1.56 2,089,100 Mondi Plc 2,000.00 -1.67 3,448,012 measures in place, but also crimped its Earlier, Asian stocks were having a oil traders after last week’s plunge in Sumitomo Mitsui Trust Holdin 4,018.00 0.32 1,587,100 Merlin Entertainment 500.00 -1.28 1,522,321 Japan Tobacco Inc 3,891.00 2.64 10,289,400 economic growth forecasts. good day, with energy fi rms provid- prices that came on the back of wor- Mediclinic International Plc 839.50 1.14 1,188,458 Osaka Gas Co Ltd 420.80 -0.50 7,722,000 While noting that the pound cannot ing strong support after a jump in oil ries about rising US, Nigeria and Libya Marks & Spencer Group Plc 377.00 -1.59 7,061,716 Sumitomo Electric Industries 1,893.50 0.21 2,697,400 expect any immediate support from prices, while the dollar fi rmed against output, and a slowdown in key market London Stock Exchange Group 3,431.00 0.56 681,769 Daiwa Securities Group Inc 676.00 -0.60 6,609,000 Lloyds Banking Group Plc 69.66 -0.31 142,986,418 higher interest rates, analysts still de- the yen as a top Federal Reserve offi cial China. Softbank Group Corp 8,875.00 2.01 9,404,500 Legal & General Group Plc 254.70 -0.35 14,452,710 Mizuho Financial Group Inc 210.20 0.62 103,385,900 Land Securities Group Plc 1,129.00 0.09 2,944,084 Nomura Holdings Inc 699.00 0.20 14,517,400 Kingfisher Plc 345.10 -0.83 9,449,787 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,541.00 -2.10 2,208,700 Johnson Matthey Plc 3,130.00 -0.60 504,906 Subaru Corp 3,995.00 0.33 8,502,500 Itv Plc 189.00 -3.67 33,406,844 Ntt Docomo Inc 2,717.00 -0.48 3,353,100 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 279.90 2.00 3,832,766 Sumitomo Realty & Developmen 3,158.00 -0.22 1,872,000 Intl Consolidated Airline-Di 598.00 -1.73 9,358,159 Aluminum Corp Of China Ltd-H 3.56 2.59 19,946,887 Hong Kong & China Gas 15.70 0.26 7,336,815 Sumitomo Metal Mining Co Ltd 1,484.50 0.41 3,673,000 Intertek Group Plc 4,164.00 0.34 373,619 Bank Of East Asia Ltd 32.70 0.00 949,924 Hong Kong Exchanges & Clear 195.70 0.77 6,382,645 Orix Corp 1,765.00 0.09 4,765,700 Intercontinental Hotels Grou 4,260.00 0.59 762,836 Bank Of China Ltd-H 3.78 -0.26 268,363,541 Hsbc Holdings Plc 67.95 0.89 34,537,951 Asahi Group Holdings Ltd 4,398.00 0.16 1,033,200 Inmarsat Plc 755.00 -1.69 1,742,173 Bank Of Communications Co-H 5.88 -0.17 35,748,693 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 48,340.00 0.04 320,100 Informa Plc 647.50 -0.15 1,834,274 Belle International Holdings 6.05 -0.33 25,914,017 Ind & Comm Bk Of China-H 5.10 0.00 276,304,295 Nidec Corp 10,760.00 0.84 1,012,600 Imperial Brands Plc 3,687.50 -0.34 2,073,931 Boc Hong Kong Holdings Ltd 32.70 -0.30 8,614,341 Li & Fung Ltd 3.24 0.93 18,864,481 Isuzu Motors Ltd 1,560.00 0.74 1,981,500 Hsbc Holdings Plc 678.00 1.06 35,576,154 Cathay Pacific Airways 10.96 0.74 5,486,893 Mtr Corp 46.55 -0.32 6,169,440 Unicharm Corp 2,844.00 0.89 1,429,300 Hargreaves Lansdown Plc 1,437.00 -0.62 642,222 Ck Hutchison Holdings Ltd 101.90 1.19 7,770,669 New World Development 9.81 1.24 12,587,962 Shin-Etsu Chemical Co Ltd 9,896.00 0.25 983,500 Hammerson Plc 590.00 0.17 3,816,784 China Coal Energy Co-H 3.48 -0.85 10,391,185 Petrochina Co Ltd-H 5.31 0.38 110,583,364 Smc Corp 31,720.00 -0.91 307,700 Glencore Plc 290.05 0.49 70,189,536 China Construction Bank-H 6.36 0.32 200,023,576 Ping An Insurance Group Co-H 45.65 0.33 34,254,786 Mitsubishi Corp 2,339.50 -1.04 8,218,300 Glaxosmithkline Plc 1,627.50 0.15 14,719,201 China Life Insurance Co-H 24.35 0.83 45,324,341 Power Assets Holdings Ltd 71.40 -0.21 3,524,502 Nintendo Co Ltd 29,545.00 0.15 1,879,600 Gkn Plc 351.60 -0.87 6,080,003 China Merchants Port Holding 21.80 -0.46 3,902,886 Sino Land Co 13.50 0.75 3,129,634 Eisai Co Ltd 6,010.00 0.27 797,600 Fresnillo Plc 1,503.00 5.03 1,492,669 China Mobile Ltd 85.25 -0.23 13,636,600 Sun Hung Kai Properties 116.60 -0.17 2,666,682 Sumitomo Corp 1,532.00 -1.42 5,189,900 Experian Plc 1,671.00 -0.18 1,690,793 China Overseas Land & Invest 22.00 -0.23 14,180,724 Swire Pacific Ltd - Cl A 74.35 0.54 1,660,835 Canon Inc 3,818.00 -0.73 4,638,500 Easyjet Plc 1,301.00 -0.31 2,214,994 China Petroleum & Chemical-H 6.24 0.48 70,552,237 Tencent Holdings Ltd 254.60 1.68 20,293,953 Japan Airlines Co Ltd 3,446.00 0.79 2,911,500 Dixons Carphone Plc 326.00 -2.51 4,203,185 China Resources Beer Holdin 18.50 -0.32 3,412,746 Wharf Holdings Ltd 67.00 0.30 3,232,699 Direct Line Insurance Group 354.10 -1.17 4,220,824 China Resources Land Ltd 20.65 0.24 7,607,291 China Resources Power Holdin 14.38 2.71 11,920,363 Diageo Plc 2,297.00 0.79 4,838,722 SENSEX Dcc Plc 7,405.00 0.07 193,962 China Shenhua Energy Co-H 18.08 0.00 31,028,029 +119.17GCC INDICES Crh Plc 2,892.00 0.38 1,426,553 China Unicom Hong Kong Ltd 10.28 -0.96 29,758,961 -47.81 Company Name Lt Price % Chg Volume Citic Ltd 11.46 0.88 13,340,799 Compass Group Plc 1,594.00 -0.44 4,397,471 +14.50 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,190.00 0.27 658,175 Clp Holdings Ltd 83.20 -0.60 2,389,911 Doha Securities Market Zee Entertainment Enterprise 544.75 5.53 8,090,310 -0.96 10,110.84 +119.17 Centrica Plc 192.20 -5.41 54,567,845 Cnooc Ltd 9.01 1.24 92,465,126 Saudi Tadawul Yes Bank Ltd 1,577.30 -1.32 1,763,067 6,882.51 -47.81 Carnival Plc 4,775.00 -0.77 1,090,550 Cosco Shipping Ports Ltd 8.78 1.39 2,661,704 +2.05Kuwait Stocks Exchange Wipro Ltd 504.65 1.00 731,320 6,670.47 +14.50 Capita Plc 560.00 -2.95 3,425,562 Esprit Holdings Ltd 6.00 1.35 3,564,293 +26.52Bahrain Stock Exchage Vedanta Ltd 236.00 3.24 16,264,615 1,307.09 -0.96 Burberry Group Plc 1,648.00 1.42 1,918,291 Fih Mobile Ltd 2.66 -0.37 7,099,196 Oman Stock Market Ultratech Cement Ltd 4,412.50 1.03 167,777 +24.98 5,432.14 +2.05 Bunzl Plc 2,441.00 0.74 620,895 Hang Lung Properties Ltd 19.60 -0.20 4,298,347 Abudhabi Stock Market Tech Mahindra Ltd 434.75 1.01 2,947,903 4,608.28 +26.52 Bt Group Plc 297.85 -4.50 54,091,433 Hang Seng Bank Ltd 162.80 0.06 736,608 Dubai Financial Market Tata Steel Ltd 441.15 0.85 6,258,960 3,420.19 +24.98 British Land Co Plc 667.00 0.15 5,308,533 Henderson Land Development 49.65 0.20 1,690,532 Tata Power Co Ltd 82.60 1.29 3,067,308 British American Tobacco Plc 5,339.00 0.41 2,459,004 Tata Motors Ltd 427.45 -1.12 4,980,858 Bp Plc 455.95 -1.00 67,165,526 Tata Consultancy Svcs Ltd 2,349.45 0.73 1,067,832 Bhp Billiton Plc 1,173.50 0.82 10,720,878 Sun Pharmaceutical Indus 648.45 0.88 1,920,266 Berkeley Group Holdings/The 3,366.00 -0.09 618,501 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 298.10 1.24 14,090,217 Barratt Developments Plc 603.00 -1.15 7,057,042 Reliance Industries Ltd 1,359.55 0.03 3,534,950 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 206.55 -1.62 34,958,455 Punjab National Bank 172.00 -0.09 9,452,101 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 641.00 0.08 8,143,136 Power Grid Corp Of India Ltd 208.20 -1.09 2,971,962 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 893.50 -1.27 1,532,632 Oil & Natural Gas Corp Ltd 183.60 -2.31 11,338,035 this data.” Aviva Plc 537.50 -0.83 7,383,163 Ntpc Ltd 160.25 -1.20 4,029,964 Astrazeneca Plc 4,747.50 0.74 1,657,744 Maruti Suzuki India Ltd 6,762.50 0.37 297,788 Associated British Foods Plc 2,873.00 -0.14 609,897 Mahindra & Mahindra Ltd 1,376.15 -0.02 1,804,590 Ashtead Group Plc 1,621.00 -0.31 3,271,813 Lupin Ltd 1,259.70 0.06 631,012 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,736.85 -0.14 986,265 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 777.50 2.24 3,612,558 DINAR DINAR Kotak Mahindra Bank Ltd 936.80 0.99 2,340,717 Anglo American Plc 1,052.00 1.01 7,996,613 Itc Ltd 276.65 0.99 10,045,141 Admiral Group Plc 2,038.00 -3.23 1,038,223 Infosys Ltd 944.10 0.05 1,679,598 3I Group Plc 831.50 0.42 2,206,732 Indusind Bank Ltd 1,426.30 -0.39 858,499 Idea Cellular Ltd 90.80 0.11 19,761,780 Icici Bank Ltd 300.20 0.52 9,960,033 TOKYO Housing Development Finance 1,565.30 -0.43 2,984,204 Hindustan Unilever Ltd 978.75 -1.77 1,460,719 Hindalco Industries Ltd 193.65 3.50 25,581,781 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,461.80 4.15 1,063,274 East Japan Railway Co 10,270.00 0.15 660,400 Hdfc Bank Limited 1,546.40 -0.35 1,179,648 Itochu Corp 1,661.00 -0.81 6,685,400 Hcl Technologies Ltd 838.70 -0.58 3,767,737 Fujifilm Holdings Corp 4,284.00 0.33 1,186,200 Grasim Industries Ltd 1,157.30 -0.78 765,501 Yamato Holdings Co Ltd 2,392.50 -1.18 2,026,700 Gail India Ltd 408.30 -2.20 3,362,499 Chubu Electric Power Co Inc 1,467.00 -0.58 1,898,200 Dr. Reddy’s Laboratories 2,594.00 -0.34 234,448 Mitsubishi Estate Co Ltd 2,189.00 -2.36 6,692,000 Coal India Ltd 274.20 -1.56 5,197,019 Mitsubishi Heavy Industries 466.70 -1.91 17,812,000 Cipla Ltd 561.95 0.16 604,687 Toshiba Corp 256.30 -4.72 220,753,000 Cairn India Ltd 285.35 0.00 26,579,537 Shiseido Co Ltd 3,225.00 0.84 1,499,300 Bosch Ltd 23,467.90 1.09 11,596 Shionogi & Co Ltd 6,124.00 -0.95 1,458,500 Bharti Airtel Ltd 366.00 -1.81 7,821,577 Tokyo Gas Co Ltd 549.20 -0.42 10,078,000 Bharat Petroleum Corp Ltd 730.65 0.33 1,445,769 Tokyo Electron Ltd 15,115.00 2.34 1,610,100 Bharat Heavy Electricals 174.15 -1.67 5,609,339 Panasonic Corp 1,377.50 0.33 7,307,300 Bank Of Baroda 187.90 1.27 7,778,645 Fujitsu Ltd 800.30 0.40 15,670,000 Bajaj Auto Ltd 2,998.45 3.22 463,056 Central Japan Railway Co 18,480.00 -0.59 402,100 Axis Bank Ltd 516.90 -1.80 10,484,277 T&D Holdings Inc 1,723.50 -0.52 2,180,000 Asian Paints Ltd 1,166.45 0.70 1,106,626 Toyota Motor Corp 6,123.00 0.69 13,513,900 Ambuja Cements Ltd 260.30 0.23 3,872,293 Kddi Corp 3,061.00 0.82 5,208,100 Adani Ports And Special Econ 360.05 2.32 5,008,766 Nitto Denko Corp 9,119.00 -0.85 637,200 Acc Ltd 1,689.30 -0.06 276,407

Gulf Times 8 Friday, May 12, 2017 BUSINESS Euro, Brexit and Russia: What the Macron victory means for Europe

French election result set to that gesture, he anchored France to Europe.” for the Social Democrats, Merkel’s junior coalition initiatives. He’s pledged to double French wind and reinvigorate Paris-Berlin axis; still no Next comes the hard part: Reviving a sense of partner. “Germany needs to show it recognizes solar capacity by 2022, a bigger expansion than concrete German action seen before purpose at the EU’s core. The defeat of far-right its responsibility for Europe. We have to prevent a his predecessor Francois Hollande planned, and to federal election candidate Marine Le Pen gives the bloc a political situation where Le Pen lies ahead five years from reduce car pollution. shot in the arm and may advance joint projects in now.” That should give momentum to a draft European Bloomberg areas such as defence, but Macron also faces red Merkel, who is expected to give a “signal” on law to increase the share of renewable energy in Brussels/Berlin lines. For one thing, the former investment banker German-French relations soon after Macron is sworn the EU to 27% of consumption in 2030 from 20% in can’t expect German Chancellor Angela Merkel to in, pledged to cooperate with the new president 2020 and to a forthcoming proposal by the bloc’s bend euro-area fiscal rules, according to two German “wherever possible,” saying he “carries the hopes regulators to tighten a cap on carbon dioxide from Emmanuel Macron’s government off icials. of millions of French and also of many people in autos. (pictured) decision “Macron off ers a chance for an EU reboot by giving Germany.” All the same, no concrete policy action is to play Beethoven’s new energy, credibility and oomph to the European likely until Germany’s federal election in September DEFENCE Ode to Joy as project,” said Shada Islam, director for geopolitics is out the way. Macron champions deeper EU defence cooperation, he walked on at the Friends of Europe think tank in Brussels. “But “We have to wait for the new president to present his which the UK has long resisted because of a stage to mark he won’t be a miracle worker. Europe is fragmented ideas and his wishes,” Merkel told reporters in Berlin perceived threat to the role of the US-led North his victory in and polarized and he faces significant domestic and on Monday. “Then we’ll see which points we have in Atlantic Treaty Organization. As British influence the French international constraints.” common.” within the EU wanes with Brexit, France under presidential After years in which a sovereign-debt crisis strained Following are EU policies that stand to get a boost Macron will probably push forward EU eff orts to election relations within the EU and sowed distrust between from Macron’s win in France, based on comments by divert more of its budget to defence research, pool had pro- economic powerhouse Germany and a lagging Brussels-based off icials who spoke on the condition procurement and give the arms industry better Europeans in France, Macron has been elected on a platform of of anonymity and Macron himself: access to finance. rapture. jump-starting momentum. With the EU embarking “I had tears on diff icult talks to usher the UK out of the club and TRADE RUSSIA SANCTIONS in my President Donald Trump questioning the bloc and US In addition to a planned EU market-opening accord Macron will probably reinforce the common - and eyes,” guarantees to trans-Atlantic security, the eff ort comes with Japan, two chances lie ahead for Macron to sometimes shaky - EU front against the Kremlin Daniel not a moment too soon. defend free trade while showing traditional French over its encroachment in Ukraine. He has defended Cohn- Macron’s defence of EU limits on budget deficits, sensitivity to the threat of cheap imports. The first is the bloc’s three-year-old penalties against Russia, Bendit, support for open markets and pledges of growth- a draft law recognizing China as a market economy criticised President Vladimir Putin and claimed to the friendly deregulation will win him allies in Germany, in EU trade cases, a step long sought by Beijing. have been the target of Russian cyberattacks. longtime where Merkel’s government has grown weary of The other is a plan to allow the bloc to impose As French economy minister in January 2016, Macron French- French reluctance to reform the economy. The higher tariff s on exporters such as China when their reportedly floated a timeline for lifting the European German chancellor called him on Sunday evening to off er domestic markets prove to be distorted. penalties on Russia. He hardened his stance during politician her congratulations and praise his pro-European the campaign as he found himself surrounded who campaign. EURO by candidates, including Le Pen, who sought a served as Also being discussed in Berlin is work on an EU Macron will seek to breathe life into long-stalled rapprochement with Putin. a European “social union,” code for a mix of economic reforms moves to shore up the euro area’s banking system Union and a push to align national policies such as wages through sovereign risk-sharing, including the creation BREXIT lawmaker and taxes. At the same time, the new French of a common deposit-insurance programme, which Macron will bolster the position of the UK’s 27 EU for two president may seek joint initiatives on matters Germany opposes. He may also push for more partners ruling out talks on Britain’s post-withdrawal decades, told such as euro-area debt sharing that France has economic stimulus, a common euro-area budget and relationship with the bloc until suff icient progress is broadcaster traditionally espoused and that are politically a special finance minister for the 19-nation currency made on the divorce terms, including the bill owed by Europe1 about sensitive in Germany. zone - ideas also resisted in Berlin. Britain. He is likely to maintain the relatively hard-line the moment he “Everyone involved knows that we need a fresh French view that the bar for starting parallel talks heard the EU start and new impulses for German-French ENERGY with Britain on future trade ties with the EU needs to anthem. “With cooperation,” said Joachim Poss, a lawmaker in Berlin Macron should give a boost to EU clean-energy be high.

Bloomberg QuickTake Q&A Macron’s next challenges now that he’s won

By Gregory Viscusi is Francois Hollande’s last day as an unpopular housing tax, loosening National Assembly, and it’s far from jobs-for-life in the civil service and election. Le Pen wanted to renegotiate Paris president. labour laws, cutting payroll taxes, certain he’ll get one,” said Yves-Marie the elimination of the wealth tax. But European treaties in a way that would What does he do until then? imposing a flat 30% tax on capital Cann, head of political studies at as minister, his achievements were have eff ectively ended the single and refocusing France’s wealth tax Elabe, referring to the lower house of limited to letting more stores open currency, the common market and Victorious in France’s presidential His first step is to name a prime solely on property. He says he’ll parliament. on Sundays, making it easier to get a the Schengen border-free zone. That election, Emmanuel Macron minister, who then must go to work pay for all that by cutting €60bn How could Macron’s party drivers license and allowing inter-city doesn’t mean Macron won’t push for inherits a country with 10% selecting a cabinet. Macron says he through more eff icient government. win Parliament? bus travel. changes. He’s said he wants more joint unemployment and sluggish already has a candidate in mind, so For the European Union, he wants to Why so little? EU investment projects and less rigid economic growth. It’s officially still his announcement could come almost pursue greater integration and tax Most likely it would need to partner budget-austerity rules imposed by under emergency rule following a immediately. Macron says he’ll make harmonisation along with stronger up with another party, which would Opposition from Hollande’s Socialist Germany. string of terror attacks beginning a quick trip to French troops on an anti-dumping measures in EU trade very much shape Macron’s governing camp forced Macron to backtrack Does Macron’s win mean the in 2015. France remains a deeply overseas mission, probably in the pacts. agenda. His policies would no doubt on several proposals, such as far right has been slain? divided country. In the first round Sahel, and then will go see German Can he get all of that done? look diff erent if he’s forced into a limiting severance pay and opening of presidential voting, almost Chancellor Angela Merkel. coalition with the Socialists or with the up protected professions such as Not by any means. Le Pen’s party half the electorate supported What is Macron likely to do Much depends on legislative elections centre-right Republicans. There’s been pharmacist and notary. The Socialist had its best showing ever in 2017. candidates - including the National as president? in June. In every instance since 1981, very little polling yet for the legislative Party majority in parliament wasn’t at Counting the far right and the far left, Front’s Marine Le Pen - who oppose the party that wins the presidency elections, and with France’s politics in all open to getting rid of the wealth tax roughly half of the French electorate the international trading order There’s a diff erence between what has gone on to win a parliamentary such turmoil, there’s a good chance of or lengthening the work week. Macron voted for candidates who wanted to championed by Macron, a onetime he’d like to do and what he’ll be majority. But previous winners all a very messy parliament. says there is a big diff erence now: sweep aside the global international investment banker with a business- able to do, and the key is whether came from one of France’s two Does Macron have a record Earlier governments were not elected order of the past half- century. The friendly outlook. his upstart political party can win a major parties. Macron’s En Marche! to build on? with a mandate to liberalise, while he concerns that matter to those voters When does he take over? majority in Parliament. His campaign was created just over a year ago now has one. - immigration, de-industrialisation, promises included investing €50bn and has no parliamentary history. When he worked for Hollande from What does Macron’s win stagnating wages, Uberisation, Transfers of power in France are faster ($55bn) in new technologies and Many voters cast ballots for Macron 2012 to 2016, first as a senior adviser mean for the EU and the terrorism - aren’t going away. Macron than in the US, where it takes over two energy, expanding job training, cutting mainly to oppose Le Pen. In France, and then economy minister, he euro? himself, in a campaign rally, said the months, and slower than in Britain, primary-school class sizes, merging it’s Parliament that passes laws consistently pushed the Socialist success of his economic agenda will where it occurs overnight. No date France’s disparate pension systems, and approves the government. “If administration to embrace free- It survives, at least for now. For many be “essential to prevent the National has been set for Macron’s swearing-in, using tax breaks to encourage jobs Emmanuel Macron wants to be able to market policies. He called for the end observers, that was perhaps the Front from becoming stronger in five but it must be before May 14, which in poor neighbourhoods, eliminating govern, he will need a majority in the of the 35-hour work week, no more most important thing at stake in this years’ time.” Gulf Times Friday, May 12, 2017 9 BUSINESS India’s Nifty index slides from record as metal shares decline

Bloomberg rebounded from yesterday’s Mumbai lowest level in more than seven months. The India VIX Index, a gauge ndian metal shares tracked a of expected stock-price swings, decline in global commodity rose 5.8%, the most in more than Iprices, dragging the key NSE four months. Nifty 50 Index from its all-time Twelve of the 13 sector indexes high. Oil and gas producers also compiled by BSE Ltd fell, led by retreated. S&P BSE Metal and the oil and Nifty index dropped 0.8% at gas indexes. the close in Mumbai, while the Aviation companies Jet Air- benchmark S&P BSE Sensex fell ways India and SpiceJet each 0.9%. The BSE metal gauge of rose at least 1.6% as oil prices 10 companies declined 2.5% to slumped. a four-month low and the S&P S&P BSE Bankex dropped BSE Oil & Gas Index retreated 0.6% after a rise to a record on 1.6%, its third day of losses. Oil Thursday, as some investors said & Natural Gas Corp fell 2.7% as changes in India’s bank rules crude futures hovered just above to tackle bad loans weren’t ad- $45 a barrel. equate. Tata Motors dropped 3.9%, Bank of Baroda, Axis Bank the most in almost three months, and Punjab National Bank paced after saying sales of its luxury losses. Jaguar Land Rover cars declined Among stocks reacting to in April. It was the worst per- earnings, Hindustan Construc- former on the Sensex. tion Co plunged 7.9% as net “Commodity stocks have fol- income for the January-March lowed the correction in prices quarter fell from a year earlier. A graph shows real-time trading at the Australian Stock Exchange in Sydney yesterday. The index added 0.1% at close. globally including the crude Drugmaker Wockhardt oil, resulting in a selloff in these dropped 4.2% after its quarterly counters,” said Purvesh She- loss widened from a year ago. latkar, senior vice-president Tata Communications of institutional sales at Cen- slumped 9.1%, most since Au- trum Broking in Mumbai. The gust 2015, after quarterly group Bloomberg Commodity Index loss widened from a year earlier. Kotak seeks to raise Asia markets rally $901mn for banking unit

Bloomberg banking industry is one of the Mumbai most fragmented, with about 48 lenders owning national networks that compete for Kotak Mahindra Bank, $1.6tn of deposits. as oil prices jump controlled by Indian billionaire The sale will also help Uday Uday Kotak, plans to raise as Kotak comply with an Indian AFP by hopes that Opec and Russia’s he added. Among Asian en- ended 0.3% higher and Hong down on leveraged investment much as $901mn selling shares central bank directive earlier Hong Kong much-vaunted output cuts that ergy firms Hong Kong-listed Kong jumped 0.4%, a fourth- as it looks to instil some stability to institutions to help boost this year to cut his ownership started in January appear to be CNOOC jumped 1.2% and Pet- straight gain that puts it near in the volatile market. lending in the world’s fastest- in the lender to 30% by the end gaining traction, with the key roChina climbed 0.4%, while two-year highs. In foreign exchanges the dol- growing major economy. of June. Kotak, who started sian markets rose yes- producers also likely to extend Woodside Petroleum added Sydney added 0.1%, Seoul lar held its gains above ¥114, The Mumbai-based lender the bank in 2003, must trim terday with energy firms the agreement past its end-June 0.2% in Sydney as Santos gained 1.2% to clock up another which it broke on Wednesday for is off ering as many as 62mn the stake further, to 20%, by Aproviding strong sup- deadline. gained 1.5%. record high, while Singapore the fi rst time since March, after shares for Rs930 to Rs936 the end of 2018, and to 15% by port after a surge in oil prices, All of which is welcome news Inpex added 0.8% in Tokyo. was 0.4% higher. the head of the Boston Fed called apiece, according to terms March 2020. while the dollar held gains for oil traders after last week’s Jeff rey Halley, senior mar- Taipei and Manila also put on for three more rate hikes this of the deal obtained by Uday Kotak sold 27.6mn shares against the yen as a top Federal plunge in prices that came on ket analyst at OANDA, added: strong shows. year and a further tightening of Bloomberg. Bank of America in March, equivalent to a 1.5% Reserve official reinforced ex- the back of worries about rising “With the Opec production cuts Wellington surged 0.9% af- liquidity. Corp, Kotak Mahindra Capital stake, to Canadian pension pectations for further interest US, Nigeria and Libya output, almost certain to be extended, ter the New Zealand central Eric Rosengren’s comments and Morgan Stanley are fund managers Caisse de rate hikes. and a slowdown in key market oil may well have dodged the bank held interest rates and warning the US economy could arranging the sale, according to Depot et Placement du Quebec Both main crude contracts China. worst for now.” said it would keep them un- overheat compare with most the terms. and the Canada Pension Plan soared almost 3% on Wednes- “We saw the biggest draw in However, he warned “it would changed for some time as in- forecasts for just two more rate The proceeds from India’s Investment Board. The banker day after data showed a drop inventories for the year last week be premature to call a bottom in flation was likely to ease — but increases this year. second-biggest share sale held about 32% of Kotak in US inventories almost three with stockpiles down more than prices as US production contin- this sent the country’s dollar In Tokyo, the Nikkei 225 was this year may help Kotak Mahindra after that sale. times more than forecast, fan- fi ve million barrels,” said Greg ues to ramp up along with that diving 1.5%. up 0.3% at 19,961.55 points, Mahindra win more clients as Kotak Mahindra shares ning hopes of a jump in demand McKenna, chief market strate- of... Opec members Libya and Shanghai rebounded from Hong Kong’s Hang Seng was state lenders struggle with advanced 1% to a record at the as the American holiday driving gist at AxiTrader. Nigeria (who are exempted from early losses to close up 0.3% but 0.4% up at 25,125.55 points and stressed assets. The nation’s 3:30 p.m. close in Mumbai. season kicks off . “And it looks like Opec’s pro- the output cuts)”. shares remain pressured by wor- Shanghai’s Composite was up Traders have also been buoyed duction cut is fi nally biting,” On equities markets Tokyo ries about a government crack- 0.3% at 3,061.50 points at close. Citadel Securities, XTX Oil rebound lifts EM stocks towards 2-year high Markets join blockchain

Reuters “There is a risk of another leg lower FX venture Cobalt London in commodities in the coming weeks or months,” he said. “That will be a negative signal for the Rus- Reuters are leaders in technology,” sharp rebound in oil prices helped lift sian rouble and the South African rand, and London Adrian Patten, Cobalt’s emerging equities towards a two-year in South Africa political risk prevails as well.” chairman and co-founder and a Ahigh yesterday and boosted the cur- South Africa’s credit ratings were down- former foreign exchange trader rencies of oil producers Russia and Kaza- graded to junk after President Jacob Zuma Electronic trading houses at UBS and Deutsche Bank, told khstan, whilst a weaker dollar allowed other sacked fi nance minister Pravin Gordhan. Citadel Securities and XTX Reuters. currencies to make gains. On Wednesday, Zuma requested legal per- have joined top global banks Blockchain, also known as MSCI’s benchmark emerging stocks index mission to appeal against a court order to ex- in signing up to blockchain distributed ledger technology, rose 0.6%, tracking recent gains in MSCI’s plain his decision. currency settlement venture works as a web-based global stocks benchmark which held near The country also remains hampered by Cobalt, they said yesterday, in transaction-processing and all time-highs after oil prices jumped back civil unrest. what could be one of the first settlement system. above $50 a barrel. Protests over jobs and housing have spread large-scale financial market It creates a “golden record” of Brent crude futures rose 0.8%, extend- to the capital. uses of the technology. any given set of data that is ing Wednesday’s 3% gains on the back of the The Turkish lira strengthened 0.5%, ex- London-based Cobalt, set automatically replicated for biggest one-week drop in US tending Wednesday’s 1% gains. up by two former bankers, all parties in a secure network, inventories so far this year and the deci- Latest data showed the current account wants to use blockchain, the eliminating any need for third- sion by Iraq and Algeria to join Saudi Arabia defi cit widened to $3.057bn in March, less underlying technology behind party verification. in supporting an extension to Opec supply than forecast. bitcoin, to reduce post-trade Post-trade processing costs cuts. Equities in emerging markets in Europe costs in currency trading, and banks tens of millions of dollars The rise in oil prices lifted the Russian also pushed higher, with Czech stocks up to speed up the time in which each year, so blockchain rouble to a one-week high against the dollar, 0.6% on the back of strong earnings, as the transactions are settled. technology which is cheaper fi rming 0.6% after gains of 1.6% on Wednes- shares of energy group CEZ gained 2.2%. It said it will go live with its spot and quicker is attractive. day. Polish stocks rose 1%, helped by better- currency trading system in the But many people believe The Kazakhstan tenge fi rmed 0.9%. than-expected earnings from media group third quarter of this year. blockchain is still at least five to The South African rand was also trading at Cyfrowy Polsat, whose shares leapt over 3%. Citadel and XTX Markets, ten years away from large-scale a one-week high helped by a rise in precious The broad-based rally followed earlier both leading electronic adoption. metals prices. gains in Asia, where South Korean stocks market-makers, join a handful Foreign exchange trades The currency fi rmed 0.6% against the climbed 1.1% and the won fi rmed 0.4% on of top banks in committing currently need multiple records dollar, having gained over 1% on Wednesday. hopes that the expansionary fi scal policies to be clients of the system for buyer, seller, broker, clearer “We are seeing relief with commod- of President Moon Jae-in’s new government when it launches, though and third parties and then ity prices trading higher,” said Piotr Matys, would boost the economy. Cobalt declined to say what reconciliation across multiple emerging markets FX strategist at Rabobank, Hong Kong stocks rose 0.4% to a fresh their financial commitment systems, at a significant cost. but he added these were likely to be short- 21-month high, and Chinese mainland amounted to. Patten said it could provide term gains as commodity prices could weak- stocks closed up 0.6% after the central bank “We’ve got significant savings for banks and other en again. said it would inject funds via its medium- endorsement from two of the market-makers like Citadel and Iron ore futures in China dipped to a four- term lending facility today. largest institutional FX trading XTX of as much as 80% on their month low on Wednesday before recovering Indian stocks also extended their record- participants in the market, who post-trade spend. at the close. breaking run. Gulf Times 10 Friday, May 12, 2017 BUSINESS Ford’s annual meeting is virtual, but its troubles are real

Bloomberg which scheduled extra time to question electric and autonomous vehicles, I can tomorrow” — has successes to brag about. gone digital, but competitors like GM and a challenge as long as investors view Southfield, Michigan him, according to a person familiar with see the board being mad at that, too.” The company posted pretax earnings Tesla still let shareholders gather in person century-old automakers as risky. Even the situation. Directors wanted to know News of the impending exit of a top of $10.4bn last year, the second-best to make their voices heard. though Ford was the only Detroit auto- why profits are falling as the market shifts executive this week added to the growing in history. But this year, Fields has said, At this point, Fields “is doing all the maker to avoid bankruptcy in the last Ford Motor Co doesn’t expect any angry to the lucrative sport-utility vehicles that sense of crisis. Chantel Lenard, executive pretax earnings will fall to $9bn, because right things to get the company down the recession, it’s being dragged down by fear shareholders to storm out of the annual Ford pioneered a generation ago with the director of US marketing and a 25-year of heavy spending on new technology like path toward mobility services while being of the next one. meeting today. They won’t be able to — Explorer, the person said. Ford veteran, will leave on June 1 “to the robo-taxis and electric cars. profitable,” Morningstar’s Whiston said. Ford closed down 1.1% in New York trad- they’ll be watching the proceedings on Fields has been pouring billions into pursue other interests,” the company said. That hasn’t pleased impatient investors, “Then Tesla hemorrhages cash and loses ing Wednesday to $11.04. Shares were little their laptops. self-driving cars and ride-sharing experi- The departure of Lenard, 47, is unrelated who vented their displeasure with Fields at money, and Tesla stock surpasses Ford’s. changed in pre-market trading. The automaker, facing sharp questions ments as its traditional-car business has to any operational issues at the com- last year’s annual meeting in Wilmington. That’s got to be frustrating.” Last year, Fields mused that it may take about its strategy and under rising pres- struggled far more than crosstown rival pany, according to Marisa Bradley, a Ford The event is being conducted virtu- Tesla passed Ford in market value last another economic plunge to finally prove sure to turn its slumping stock around, is General Motors Co in a slowing US market. spokeswoman. ally this year “to enable us to increase month, despite selling about 80,000 ve- to investors that Ford is a far healthier taking the unprecedented step of hosting Ford’s first quarter adjusted earnings The issues at the company were shareholder accessibility, while improving hicles last year compared to Ford’s 6.7mn. company than it once was. “The market’s the gathering on the internet. One inves- fell 42%, while GM appears on pace for underscored when Ford’s US market share eff iciency and reducing costs,” Executive Tesla then briefly surpassed GM, and the looking to see how we do in the next tor and longtime attendee of the physical another record annual profit. fell to 15.1% in the first four months of the Chairman Bill Ford said in a statement an- two have been jostling for the lead since. downturn,” Fields said at an investor meetings Ford held for years in Wilming- The Ford CEO has defended his focus year from 15.6% during the same period nouncing the format in March. Despite intensifying pressure from the conference in Detroit. ton, Delaware, accused the company of on the future as necessary for long-term last year, according to Autodata Corp GM That didn’t sit well with John Cheved- board, Fields’s job isn’t on the line, said But the CEO may not have that long “hiding from shareholders” with the virtual survival. But investors have shown little dominates the most lucrative product cat- den, a regular presence at the old-fash- the person familiar with the situation. The to prove he can engineer a turnaround. session. appetite for his long-game, trading down egory of large SUVs, and Ford is trying to ioned meetings in Wilmington who says Americas chief once considered a con- “If things stay the way they are for New meeting format or not, Ford’s boss- shares 36% since he became chief execu- play catch-up by introducing redesigned he owns 600 shares. He sent an email to tender for the CEO job, Joe Hinrichs, has another 12- to-24 months, Mark could be es haven’t been able to escape scrutiny so tive on July 1, 2014. versions of its Expedition and Lincoln reporters alleging that Ford wants to avoid his hands full trying to reverse shrinking under even more scrutiny,” Whiston said. far. Chief executive off icer Mark Fields was “Mark is in a tough spot,” said David Navigator in the fall. confrontations and complaining about margins in the automaker’s critical home “Whether that’s fair or unfair, it won’t even drilled on his plans for reversing the com- Whiston, an analyst with Morningstar in Fields — who has said he wants to “a meeting that one can only access on market, the person said. matter at that point. The board will just pany’s fortunes this week by the board, Chicago. “If he were ignoring the rise of keep “one foot in today and one foot in a computer.” Other companies have also Turning the stock around will remain want to see the stock go up.”

Hedge funds help BT cuts 4,000 jobs, CEO’s Zurich absorb hit from UK rate reform

Bloomberg pay after accounting scam Zurich

Bloomberg urich Insurance Group’s hedge fund investments London helped Switzerland’s biggest insurer absorb a hit Zfrom changes in the UK rate for calculating pay- outs on personal injury claims. T Group is clawing back First-quarter net income fell almost a third to management pay and elimi- $607mn from a year earlier, after the company booked Bnating 4,000 jobs as it seeks a $289mn charge from the so-called Ogden rate reform. to rebuild investor confi dence and Disasters including the Australian cyclone Debbie took overhaul the division involved in out another $80mn, Zurich said in a statement yester- an accounting scandal in Italy. day. The cuts involve scrapping bo- Excluding Ogden, operating profi t rose 14% with all nuses for chief executive offi cer divisions contributing. Investments added $1.5bn to Gavin Patterson and former chief revenue in the fi rst quarter, helped by the hedge fund fi nancial offi cer Tony Chanmugam portfolio, which generated $56mn in capital gains ver- for the 2017 fi scal year, BT said on sus a $63mn loss a year earlier. Thursday as it released fourth- The stronger economic environment is “deliver- quarter results that narrowly beat ing a better-than-expected investment performance analysts’ estimates. The company and, given the cautious position that we took last also reduced its outlook for 2018 year, could positively influence the rest of this year,” normalised free cash fl ow and div- chief financial officer George Quinn said in the state- idend growth. ment. Shareholders have been pushing Chief executive officer Mario Greco, who joined the former British phone monop- Zurich from Italian rival Assicurazioni Generali about oly to adjust executive pay after it a year ago, is pushing through an overhaul that in- revealed in January that account- cludes cost cuts, asset disposals and changes to the ing irregularities in its Italian firm’s organisation and management. business were worse than expect- Profit fell last year as margins remained under ed, leading to a larger write-down pressure from low interest rates, restructuring costs and contributing to a reduced and subdued prices in some markets. The company is profi t outlook. The scandal added also trying to reduce risk in underwriting after sub- to investor concerns over regula- stantial losses in 2015 from underestimating US auto tory, investment and competitive claims. pressures for BT, making it one of The shares were trading 0.2% lower at 1:35 p.m. in the worst-performing stocks in Zurich after falling 1%, the most since April 18. the FTSE 100 this year. “Today was a mixed bag,” Thomas Seidl, an analyst at “I felt it was inappropriate Bernstein, said in a note. “There was a small beat on the to take a bonus,” Patterson said operating result, a miss on net income and a large beat in a Bloomberg TV interview on capital.” Thursday immediately after the Markets were buoyant at the start of the year, as in- results. Shareholders have been vestors rushed to wager on the direction of the US supportive in a challenging year, economy under President Donald Trump. Hedge funds he said. gained about 2.5% on an average during the fi rst quar- Patterson would have had the ter after returning 5.4% in 2016, according to data from opportunity to earn a bonus of The British Telecom (BT) headquarters are pictured in central London. The job cuts will come from global services and BT’s technology, service and Hedge Fund Research. as much as 240% of his salary operations unit and the company will face a restructuring charge of about £300mn over the next two years, BT said yesterday. Zurich is the latest insurer with operations in the UK of £993,000 ($1.28mn) in fi scal to increase reserves due to a reduction in the Ogden rate, 2017. A reduction in deferred review. Changes include replacing BT said. The carrier has more than BT didn’t provide guidance for “There are a couple of things which is expected to raise the costs for insurance claims bonus plan share awards for the the division’s CEO, Luis Alvarez, 100,000 employees. the fi scal year after this one, as that we need better visibility on settled through the payment of a lump sum. Aviva Plc, two executives totals more than with Bas Burger. The carrier will The weaker fi nancial outlook it historically has, given uncer- before we can guide beyond the Britain’s second-largest insurer, booked a charge of £500,000. make the business more digital included a 10% reduction in the tainty about the cost of proposals next 12 months,” Patterson told £380mn ($492mn) after tax. The stock was down 3.2% as of and less focused on owning local estimate for normalised free by communications regulator Of- reporters. Additional fi bre in- Zurich’s combined ratio factoring in Ogden deterio- 10:20 a.m. in London, at 301.90 network assets around the world, cash fl ow in the 2018 fi scal year, com to reduce wholesale broad- vestment “could be a signifi cant rated to 100.7. A measure of more than 100 means the pence. The shares, which had 13 which Patterson said could mean to £2.7bn to £2.9bn. Underlying band prices at BT’s network unit, number” and would have a long company is paying out more in claims and costs than buy, nine hold and two sell recom- disposing of one or two units out- sales will be broadly fl at. Adjusted Openreach. BT could also spend payback period, he said. it’s collecting in premiums. Its solvency ratio, a measure mendations from analysts before side the UK. earnings before interest, taxes, more on rolling out fi ber directly Revenue in the three months of an insurer’s ability to absorb losses, stood at 227% as the results, are down 17% this year, The 4,000 job cuts will come depreciation and amortisation to buildings in its network, Patter- ended March 31 increased 10% to determined by Swiss rules, an increase of 38 basis points with only Centrica Plc performing from global services and BT’s will be slightly lower, at a range son said. Openreach said yesterday £6.12bn, beating the £6.03bn av- from a year earlier. worse on the FTSE 100 Index. technology, service and operations of £7.5bn to £7.6bn. Dividend it would consult with other com- erage of fi ve analysts’ estimates The UK rate change will continue to aff ect the indus- The company said it will revamp unit and the company will face growth is now forecast to be lower munications providers on more compiled by Bloomberg. Adjusted try but Zurich probably won’t see a hit bigger than for the global services division that a restructuring charge of about than the 10% or more previously investment in full-fi bre connec- Ebitda rose 2% to £2.07bn, above the fi rst quarter. includes the Italy unit following a £300mn over the next two years, expected. tions. the £2.03bn average estimates. “There are very few true one-off s in life,” Quinn said. This startup is the Airbnb of warehouses and has Amazon in its sights

Bloomberg speed. And because the inventory is house space for a few months at a time is straining warehouse space around through its facilities without disrupt- Ackerman, a former Amazon execu- Seattle stashed all over the country, overnight the same way tourists find a place to the US, pushing the vacancy rate to the ing the main business, and e-com- tive who runs e-commerce initiatives deliveries can be made by truck rather crash for a few days on Airbnb. lowest level in 17 years. merce opportunities are growing, says at Mondelez and sits on Flexe’s advi- than plane, which is cheaper. Online The Flexe founders were at the party Flexe is tapping into a shadow inven- Dale Lawing, an Iron Mountain senior sory board. “Manufacturers, brands Seattle startup has come out of brands such as mattress seller Casper and decided their pal was onto some- tory of unused space that doesn’t show vice president. and retailers that want to compete with nowhere to off er online mer- also like Flexe because orders fl ow thing. They launched that year off er- up in the vacancy measure. That space Casper uses Flexe to meet demand Amazon on delivery without giving up Achants something even Amazon through their own websites, letting ing “overfl ow” services, when retail- is tied up in long-term contracts, but during summer moving season, says data and the customer experience are doesn’t: overnight ground delivery to them maintain a direct relationship ers and wholesalers needed to stash much of it goes unused for months at a CEO Philip Krim. The company pre- all target clients,” he says. “Flexe helps nearly anyone in the country. with customers. pallets of inventory for brief periods. time. Beverage companies and home- fers Flexe to Amazon because the latter them compete with Amazon on deliv- In less than five years, Flexe has “You can get goods to your customers Flexe added online order fulfi lment improvement stores build warehouses takes control of the customer experi- ery without making huge investments created a marketplace of spare stor- as fast or faster than you can through last year, giving warehouse opera- with capacity for the summer months ence “Our customers want to buy from in new facilities.” age space in 550 warehouses, quickly Amazon Prime at a competitive price tors the option to charge more to pack when their business peaks, leaving Casper and not from Amazon,” Krim To prosper long-term, Flexe will have establishing better geographic cov- and it’ll show up in your own branded and ship individual orders directly to them with extra space the rest of the says. Shoe and apparel brand Toms to continue expanding its footprint by erage than the vast delivery network box rather than an Amazon box,” says shoppers’ homes. year. Warehouses operated by Hallow- used Flexe to expand its holiday season convincing warehouse operators they that Amazon.com spent decades and Flexe co-founder Karl Siebrecht. The company has raised $20.8mn, een costume wholesalers empty out pop-up stores beyond the reach of its can accommodate other businesses on billions building. Flexe did it with- “That is very important for compa- including a $14.5mn round last year led just as the holiday shopping season hits west coast distribution network. Flexe short-term intervals without disrupt- out spending a nickel on facilities and nies looking to build brands.” by Redpoint Ventures, which invested and most retailers need more space. determined the best locations to help ing their own. And the startup will have already has 25mn square feet of stor- The Flexe story begins at a birthday after hearing from e-commerce com- Flexe is arbitraging the mismatch Toms serve three new markets, and to prove itself equal to the challenges of age, about 25% of Amazon’s capacity, party in Seattle in 2013. Dhruv Agar- panies struggling to line up warehouse between supply and demand, taking a Toms was able to secure the space on operating during the holiday shopping and expects to add 10mn square feet wal, who owns an online gourmet ac- space. “Startups don’t know how much commission for each transaction. short-term commitments. The pop- season when warehouse space is most this year. Merchants book storage cessories business called TrueBrands, space they’ll need because it’s hard Today, the company has 200 part- up stores are planned only a few weeks scarce. space via a simple-to-navigate web- was kvetching about the challenge of to predict where they’ll be in a year or ners. Iron Mountain, which provides in advance, making it diffi cult to fi nd “Being second fi ddle in a bunch of site; Flexe is essentially the Airbnb of finding warehouse space. His com- two,” said Ryan Sarver, a Redpoint part- document storage for fi nancial, legal, warehouse space through traditional warehouses is great 11 months out of warehousing. pany was growing 30% a year, but ner. healthcare and government clients, long-term leases. the year,” says Jarrett Streebin, chief The new overnight delivery service, many warehouse owners demanded a “On-demand warehouse and fulfi l- signed on with Flexe two years ago to Flexe’s appeal extends beyond star- executive offi cer of EasyPost, which launching on Monday, is well-timed five-year lease, requiring him to take ment space is a game-changer.” Flexe sell extra space in its 1,000 facilities in tups to brick-and-mortar retailers helps retailers coordinate with delivery because online merchants are looking a space that was either way too big or declined to share fi nancial numbers be- 90 markets. Solar panels, space heat- struggling to compete with Amazon companies. “But when you consider for new ways to reach customers but would soon be way too small. Agarwal yond saying sales grew 400% last year. ers, sheets, pillows and mattresses from online and brands hesitant to work with one month drives most e-commerce have few options that match Amazon’s wondered if he could find spare ware- Shoppers’ accelerating shift online various merchants have now passed a fearsome retail competitor, says Neil sales, that could be a problem.” Gulf Times Friday, May 12, 2017 11 BUSINESS VW offers cash over clarity as investors seek diesel answers

Bloomberg ver, Germany. “Our dividend must — and involved more than 600 interviews and a ing Germany, Brazil and France as well boosting competitiveness and expanding ter than expected, thanks chiefly to the Frankfurt will — reflect this.” review of more than 100mn documents. as some 3,500 individual civil claims, the its lineup. Mueller’s confidence contrasts Porsche and Audi brands, the Czech Skoda Despite the clean-up progress, investors “I know some of you still want more company said on Wednesday at the meet- with his apologies at the last general meet- marque and the German manufacturer’s and the public won’t get the full story transparency.” ing. It also faces group actions in various ing, when angry investors vented about sprawling Chinese joint ventures. Volkswagen pledged to distribute more of about the origins of the cheating, which The excuse didn’t sway shareholders. countries, some 2,000 investor claims as the stock’s crash after the company admit- Meanwhile, cost cuts that were acceler- its annual profit to investors in the coming has so far cost the company €22.6bn Hermes Investment Management called well as criminal investigations in Europe ted in September 2015 to rigging about ated by the scandal helped Volkswagen years, off ering cash over peace of mind ($24.6bn). Volkswagen, which is still facing for an independent board evaluation and Canada. 11mn diesel vehicles worldwide to cheat on widen its profit margin to 7.8% of revenue as the company rejected calls to release a barrage of damage claims from disgrun- and criticised Volkswagen for making Meanwhile, the legal wrangling emissions tests. in the first quarter from 6.8% a year earlier. details on the origins of the diesel scandal. tled investors and customers across the unsatisfactory progress in uncovering the continued on Wednesday. Munich judges Volkswagen shares rose 0.9% to To ease investor concerns, Mueller The German automaker plans to lift globe, had initially promised a compre- corporate governance and culture prob- rejected the car maker’s challenge of a €145.60 at 3:00pm in Frankfurt trading, pointed to internal progress, saying that its dividend payout to 30%, showing that hensive clarification of how the deception lems which contributed to the emissions raid of Jones Day’s off ices as part of a paring its losses since the scandal erupted Volkswagen has introduced 31 “golden pressure to hoard cash is easing. While came about. But as part of a settlement scandal. probe by prosecutors. The company will to 10%. rules” in engine development to do that’s still not quite at the level of rivals — with US authorities, Volkswagen agreed to As for the Jones Day report, “the fact appeal to the German constitutional court, As well as signing off on revised “everything humanly possible to prevent Daimler pays out more than 40% of profit refrain from publishing additional findings that the results are still kept under lock escalating the spat. management-pay guidelines, shareholders misconduct.” in dividends and BMW 33% — it is a marked of an external probe by law firm Jones Day, leads to the assumption that VW doesn’t “The Munich ruling no way gives us will vote on Volkswagen’s proposal to raise “Never before has our company improvement from the 19.7% ratio for last which reported directly to the Department like them,” Andreas Thomae, a fund reason to change our legal assessment,” the dividend payout to €2.06 per preferred engaged in a more intensive debate on year. of Justice. manager at Deka Investment, said at the spokesman Nicolai Laude said by e-mail. share for last year’s results after paying a how no business deal in the world is worth “Volkswagen is in very robust shape, in Breaching the agreement would ex- meeting. “The search by Munich prosecutors vio- nominal 17 cents for 2015. Volkswagen’s damaging Volkswagen’s good reputation,” both operating and financial terms,” chief pose the company to “unacceptable legal While the company has resolved most lated basic rules of criminal procedure.” dividend prior to the crisis was €4.86 per Mueller said. executive off icer Matthias Mueller said at risks,” chairman Hans Dieter Poetsch of its issues in the US, Volkswagen faces In spite of the ongoing scandal distrac- preferred share. “Not everything that is legal is also mor- the annual shareholders meeting in Hano- told shareholders, noting that the inquiry 40 regulatory probes in countries includ- tions, Volkswagen is shifting its focus to Sales and earnings have held up bet- ally correct.”

Verizon trumps Carney sees tougher AT&T to buy spectrum holder time for households Straight Path

Reuters 5G networks are expected London to off er faster downloads and boost internet-reliant products such as self-driving cars. even if Brexit smooth erizon Communica- The frenzy around Straight tions snapped up wire- Path started after an anony- Bloomberg Vless spectrum holder mous short-seller tipped off London Straight Path Communications regulators in November 2015 in a $3.1bn deal, trumping rival that the company hadn’t built AT&T’s off er and potentially communications systems as it ark Carney warned gaining an advantage in a race had claimed, leading to an in- that UK households to build 5G networks. vestigation by the US Federal Mwill face a diffi cult The $184 per share all-stock Communication Commission. year, underpinning the Bank of off er represents a discount of The company settled with England’s decision to keep in- 17.8% to Straight Path’s close the FCC and put itself on the terest rates on hold. The pound on Wednesday and an equity block in January. fell. value of $2.3bn. AT&T swooped in with its While the BoE governor said The stock had skyrocketed off er in April, valuing Straight policy makers have assumed the nearly fi ve-fold since April 7, a Path about three times its then UK’s departure from the Euro- day before AT&T made the fi rst market capitalisation. pean Union will unfold smooth- move with a $95.63 per share Straight Path agreed to be ly, he noted the uncertainties off er. bought by AT&T, but an “un- surrounding that process and The Verizon deal, however, named telecommunications said real wage growth will re- disappointed some investors — company”, which Reuters re- main weak for now. Straight Path’s shares slumped ported was Verizon, came up “This is going to be a more 20% to $178 in premarket trad- with a far bigger off er. challenging time for house- ing yesterday. Straight Path said yesterday holds,” Carney said at a press The acquisition of Straight Verizon will pay, on behalf of conference in London yester- Path, which holds a large trove Straight Path, a termination fee day. “Wages won’t keep up with of 28 GHz and 39 GHz mil- of $38mn to AT&T. prices for goods and services limetre wave spectrum used Evercore was fi nancial ad- they consume.” in mobile communications, is viser to Straight Path and Weil, Sterling fell as much as 0.6% expected to give Verizon a head Gotshal & Manges served as to the day’s lows and traded start as wireless carriers race company counsel on the deal. at $1.2855 at 1:19 p.m. London to set up fi fth-generation (5G) Debevoise & Plimpton served time. networks. as counsel to Verizon. On the upside, the Monetary Policy Committee’s published decision stated that policy makers may need to raise inter- JPMorgan expands Detroit est rates faster than the mar- ket suggests. Carney said he expects real wage growth will investment to $150mn eventually pick up, but that there would be “consequences” Bank of England governor Mark Carney speaks during the central bank’s quarterly Inflation Report press conference at the BoE in the City Bloomberg our investment and extend our if it doesn’t. of London yesterday. While Carney said policy makers have assumed the UK’s departure from the European Union will unfold smoothly, he New York commitment over the next two The MPC kept its benchmark noted the uncertainties surrounding that process and said real wage growth will remain weak for now. years.” interest rate at a record-low The bank, the biggest in 0.25%, though Kristin Forbes year negotiation period with- Offi cials cut their forecast infl ation projection to 2.7% from “The medium-term infl ation JPMorgan Chase & Co expanded the US by assets, has invested dissented again, voting for an out transitional arrangements for growth this year to 1.9% 2.4%, meaning a bigger over- forecast is lower and that’s why its investment in Detroit’s $50mn in community-develop- immediate increase. Others said in place. The insights from the from 2%, though they raised shoot of its 2% target. The bank markets have taken it as dovish,” economic recovery to $150mn ment financing, $25.8mn to revi- it may not take much upside Infl ation Report are the fi rst in it for the following two years sees a slightly weaker path fur- Alan Clarke, an economist at by 2019 after reaching its initial talise neighbourhoods, $15mn news for them to switch to her weeks since a snap general elec- and said expansion will remain ther out but expects infl ation Scotiabank in London, said by goal of $100mn two years ahead for workforce development and position. The MPC was short tion called by Prime Minister around trend over the period. to be accelerating again at the telephone. of schedule. about $9mn for other projects one member at this decision af- Theresa May policy makers into While growth slowed to 0.3% end of the three-year forecast “It signals they’re moving no “Detroit’s resurgence is a since 2014, according to the ter Charlotte Hogg left the bank, purdah. in the fi rst quarter, the weakest period. The rise in infl ation en- time fast.” model for what can be ac- New York-based company’s having resigned after failing to Carney said the bank hasn’t in a year, the bank expects the tirely refl ects the eff ects of im- In addition to the crucial complished when leaders work statement. More than half disclose a potential confl ict of tried to gauge what a messier fi gure to be revised up to 0.4%. port prices and weaker sterling, Brexit assumption, the latest together to create economic the total goes toward market- interest. Brexit outcome would look like. Forbes said the initial reading Carney said, adding that it “has forecasts are based on a rate growth and opportunity,” based strategies to create loan The BoE also published re- “We would have had to do an exaggerated the extent of the been off set to some extent by increase not being fully priced Chief Executive Off icer Jamie programs for residential and vised economic forecasts, alternative forecast with some slowdown. the continued subdued growth in until the end of 2019. In Dimon said on Wednesday in commercial development as based on the assumption that variant of a disorderly negoti- Refl ecting a weaker pound in domestic costs with wage February, the curve had priced a statement. “This collabora- well as small-business access Brexit talks don’t go awry and ating process, and we have not since last June’s Brexit refer- growth notably weaker than ex- in a hike by the first quarter of tion allowed us to speed up to capital. see the UK leave after the two- done that,” he said. endum, the MPC lifted its 2017 pected.” that year.

Apple product lineup too big for a table but adds growth anyway

Bloomberg That off set weaker- than-expected up some of the slack. Sales of gadgets come from 58 diff erent iterations of ple increase the average sales price for 2010, there was iTunes, the App Store, San Francisco phone unit sales and helped Apple’s like the Watch, AirPods, Beats head- the device now, up from fi ve fl avours in iPhones. That kept revenue from that Podcasts and iBooks. Now there’s Ap- market value top $800bn this week — a phones and Apple TV jumped 31% to 2010. line growing slightly. ple Music, iCloud, HealthKit, Apple fi rst for a US company. $2.87bn in the fi scal second quarter. And changes in iPhone designs are “This is the fi rst year that we have a Maps and a dozen more contributing to n 2010, before he became chief ex- “There was a concern with the reli- Cook said on May 2 that Watch sales generating new revenue. While the unique feature on the 7 Plus that is not a virtuous cycle. Every time Apple sells ecutive offi cer, Apple Inc’s Tim ance on one product, but they’ve been almost doubled year-over-year, and iPhone 7, introduced in September, in the 7 and obviously customers are an iPhone to a new customer, the com- ICook said all the company’s gadgets able to fi nd ways that aren’t necessar- compared this appendage of Apple’s represented a modest upgrade to its very interested in that feature,” Chief pany secures a potential new services could fi t on a table, arguing such focus ily innovative to continue to sustain business to a Fortune 500 company. predecessor, it included two signifi- Financial Offi cer Luca Maestri said in subscriber. Each new sign-up makes resulted in better products. growth,” said BTIG analyst Walt Pie- The iPad has endured a precipitous cant changes. First, Apple scrapped a May 2 interview. “We are seeing more it more likely that a user will again opt At the time, the company’s website cyk. The services business supports three years, with unit sales at about a the 3.5 millimetre headphone jack, interest in the market for larger dis- for an iPhone when the time comes to off ered 14 Apple products. Now, under profi t margins “while the company is third of their peak. The response has an audio staple since the 1950s. Sec- plays.” upgrade. Cook’s leadership, the lineup has bal- able to maintain growth from periph- been to off er a plethora of diff erent op- ond, the 5.5-inch screen iPhone 7 Clever incremental iterations and Services revenue rose 18% in the looned to 27 products available in more eral products like AirPods and Watch- tions. There’s the iPad Pro, iPad and Plus incorporated an improved dual- additions to the hardware portfolio recent quarter, and Cook expects the than 200 diff erent versions. The strat- es.” iPad Mini 4 in with at least 60 diff er- camera system that set it apart from should keep growth ticking over for the business will double in size by 2020 egy — a departure from co-founder Apple is in a very diff erent position ent memory, colour and connectivity the cheaper 4.7-inch screen model, time being, and investors expect the from last year’s $24bn. This could help Steve Jobs’ minimalist approach — is from when Cook made his tabletop options. New versions of the MacBook the first time Apple had changed any- next iPhone will sell well. Longer term, keep profi t margins high even with the helping Apple grow even as the mar- comment at an investor conference Pro unveiled in November meanwhile thing beyond memory and screen size there’s no substitute for entirely new introduction of the iPhone 8, since ket for its most-important product, seven years ago. That fi scal year, rev- helped the average price for the laptop between the two handsets. categories, and Apple has yet to deliver services revenue is more profi table. smartphones, stalls. enue jumped 52% as consumers fell range jump by almost $130 to $1,392. Scrapping the headphone jack en- a major automotive innovation, radical While hopes are high for iPhone 8 Products such as the Apple Watch over themselves to buy more iPhones. That boosted Mac revenue growth to couraged more customers to buy the new TV experience, or augmented real- sales, the recent jump in Apple shares and AirPod wireless headphones, com- Now, with most developed-world con- 14% in the most recent quarter, the compatible AirPod headphones, add- ity products. was driven by “greater belief in the bined with more versions of the iPhone sumers already using smartphones, fastest pace in more than two years. ing to Apple’s Other Products revenue, While investors wait, the Services company’s franchise value,” UBS ana- and surging sales from a growing vari- and Apple’s annual revenue exceeding Apple gets almost two-thirds of its BTIG’s Piecyk said. Off ering a dual business has been the most consistent lyst Steven Milunovich wrote in a re- ety of software services, drove revenue $200bn, growth is harder to achieve. revenue from the iPhone, compared camera meanwhile attracted more cus- bright spot over the past year. Here too, cent note titled “Ecosystem Growth growth in the most-recent quarter. Apple’s “Other Products” are picking with 39% in 2010. However, those sales tomers to the larger 7 Plus, helping Ap- Apple is growing the product palette. In Suggests Antifragility.” Friday, May 12, 2017 GULF TIMES BUSINESS

Subsidising renewables has pushed up UK energy prices, say experts

By Denise Marray and innovation in this essential sector.” tricity Market’ noted that UK energy poli- The impact on industry has been estimated that even with its compensa- “The UK currently has a slim capacity Gulf Times correspondent Qatar has an important role in the cies had driven up costs for the consumer. dramatic. tion schemes taken into account, around margin. The emergency tools available London UK’s energy provision through its LNG “To reduce carbon emissions, govern- The report points out that prices in the 13% of industrial electricity bills for to the Grid to manage the margin have exports. British Gas owner Centrica has a ments have subsidised renewables, first half of 2016 for the most energy- energy intensive industries are the result been eff ective in the short term. The multibn pound contract to buy gas from intensive industries in Britain were 86% of climate change policies. This is a disin- government has however struggled With the Conservative Party pledging to Qatar until 2023. It will buy up to 2mn above the EU 15 median. Industrial centive for such businesses to remain or to procure suff icient numbers of new impose a price cap on standard variable tonnes of liquefied natural gas (LNG) Gulf Times electricity prices in the UK also compare to relocate operations to the UK.” power stations through the mechanism to energy bills in the UK, there is concern each year from January 2019, after its unfavourably with fellow members of the The report maintains that “Security ensure longer-term security of supply. The that such a move might instead push existing contract expires. In 2015 LNG Exclusive International Energy Agency: when taxes of supply should be the first and most increased amount of electricity gener- prices up. accounted for 31% of gas imports, with are included, the UK had the third highest important consideration in energy policy. ated from intermittent sources presents In a comment to Gulf Times, Tim 92% of those from Qatar. QIA has recently prices in the G7 in 2015 with prices 46% Decarbonisation and aff ordability must new challenges for security of supply. As Knox, director, Centre for Policy Studies, invested in the National Grid as part of an passing on the cost to consumers in their above the EU median. be taken into account, but should not be the proportion of electricity from these a British think tank established in 1974 international consortium which bought a electricity bills. The average domestic It goes on to observe: “the Govern- prioritised ahead of security where there sources is projected to increase, tools to by Margaret Thatcher, said: “The pro- 61% equity interest. electricity bill was 58% higher in 2016 than ment itself has acknowledged that is any conflict.” ensure cost eff ective back-up must be posal to introduce a price cap will, while A recent report by the House of Lords’ it was in 2003; industrial electricity prices electricity prices for energy intensive The UK is under pressure to provide available and the cost of appropriate back- well-meaning, be counterproductive, not Select Committee on Economic Aff airs in Britain today are higher than anywhere industries in the UK are amongst the long term security of supply, as the House up incorporated into estimates of the cost least as it will deter more competition ‘The Price of Power: Reforming the Elec- else in Europe.” highest in Europe. The Government has of Lords’ report noted. of renewable generation.”

US labour Rosneft’s $12.9bn Essar Oil market tightening

Reuters deal held up over debt issues Washington Rosneft threatens to revise deal terms, says one source; deal will ew applications for US help Rosneft compete with Saudi jobless benefi ts unex- Arabia in Asia; India sees deal as Npectedly fell last week key to helping address bad debts while producer prices rebound- ed strongly in April, pointing to Reuters a tightening labour market and New Delhi, Moscow, London rising infl ation that could spur the Federal Reserve to raise in- terest rates in June. ussian state oil fi rm Rosneft is Labour market strength was struggling to close its $12.9bn also underscored by a sharp drop Racquisition of India’s Essar Oil in the number of Americans on because six of Essar’s Indian creditors unemployment rolls to a 28-1/2- have yet to approve the deal, sources year low in the fi nal week of April. close to the talks said. “The best labour market in The state-run banks and fi nancial nearly 30 years should tell Fed institutions that are delaying Rosneft’s offi cials that additional mone- biggest foreign acquisition hold about tary stimulus is not required. We $500mn of Essar’s debt, fi ve industry expect them to put another rate and banking sources told Reuters. hike notch on their belts at the Kremlin-controlled Rosneft, which upcoming June meeting,” said sees the deal as vital to expanding in Chris Rupkey, chief economist at Asia’s fastest growing energy market, MUFG Union Bank in New York. had aimed to close the deal at the end Initial claims for state unem- of 2016. ployment benefi ts fell 2,000 to a Now a June target for completion seasonally adjusted 236,000 for may be in doubt. the week ended May 6, the la- “Tensions between Rosneft and Es- bour Department said yesterday, sar are running high,” said one of the confounding economists’ ex- industry sources, who like others asked pectations for a rise to 245,000. not to be named. It was the 114th straight week The sources said the acquisition that claims remained below the was still expected to go through, but 300,000 threshold which is as- one of them said Rosneft had writ- sociated with a healthy labour ten to Essar threatening to change the market. terms of the deal, including to pay a The labour market is close to lower price, if the dispute over debt full employment, with the un- was protracted. employment rate at a 10-year “The completion of the transac- low of 4.4%. The number of tion was conditional upon receiving people still receiving benefi ts af- requisite approvals and satisfaction of ter an initial week of aid tumbled customary conditions. The parties are 61,000 to 1.92mn in the week working towards obtaining the requi- ended April 29, the lowest level site approvals to complete the transac- A Rosneft oil company logo is seen on an electronic display board outside one of its gas stations near the Ostankino TV tower displaying the colours of the Russian since November 1988. Labour tion,” an Essar spokesman said. national flag in Moscow. Kremlin-controlled Rosneft, which sees the Essar deal as vital to expanding in Asia’s fastest growing energy market, had aimed to close the deal market momentum, also marked “We are hopeful that the deal will be at the end of 2016. by a sharp rebound in job growth completed in the upcoming few weeks,” in April, has left fi nancial mar- he added. neft had wanted to fi nalise the deal in The billionaire Ruia brothers will re- Apart from six, others have approved debt talks were complicated by the kets anticipating further mon- Rosneft chief fi nancial offi cer Pav- early June at the St Petersburg Eco- tain a 2% stake. Essar’s transfer of ownership to Ros- fact that some lenders were also owed etary policy tightening from the el Fedorov told a conference call on nomic Forum, where Indian Prime Russia’s VTB bank is acting as advi- neft from its current owners Indian money by Essar’s parent, Essar Global Fed’s June 13-14 meeting. Wednesday that the purchase was now Minister Narendra Modi is due to meet sor on the transaction. brothers Ravi and Shashi Ruia, banking Fund, or subsidiaries of the conglom- In a second report yesterday, expected to be completed by the end of Russian President Vladimir Putin. It declined to comment on the hold sources said. erate that has a portfolio ranging from the Labour Department said its June. But he said those hopes have now up. The State Bank of India, the coun- steel to power generation. producer price index for fi nal de- The six institutions holding up the faded. “The process of closing the deal try’s biggest lender, has given its no- Sources said some lenders might be mand increased 0.5% last month transaction are IDBI Bank, Punjab Na- Rosneft won a bidding war to buy is in its final stages and is expected objection to the deal, the sources said. seeking to gain concessions on other after slipping 0.1% in March. tional Bank, Syndicate Bank, Indian Essar against Saudi Aramco, its biggest to conclude soon,” a spokesman for Among the six institutions blocking debt with Essar units before giving The PPI increased 2.5% in the Overseas Bank, Life Insurance Corp of competitor in the oil export market. Trafigura said, while UCP declined to the deal, Syndicate Bank was expected their approval. 12 months through April, the India and non-bank fi nancier IFCI, the The deal will give Rosneft a 49% comment. to clear the deal with its board in 10 to Essar Global Fund has previously biggest gain since February 2012, sources said. stake, with a further 49% split between The deal is also valuable for Modi’s 15 days, one banking source said. said it planned to use the proceeds to after advancing 2.3% in March. The six lenders gave no offi cial com- Swiss commodities trader Trafi gura government, as it seeks to clear India’s A senior source at Indian Overseas clear half of the group’s debt, which Economists had forecast the ment when contacted by Reuters. and Russian fund United Capital Part- $150bn in bad debt. Essar Oil India owed Bank said a no-objection certifi cate CEO Prashant Ruia has put at about PPI rising 0.2% and gaining Another industry source said Ros- ners. about $5.5bn to almost 30 Indian lenders. was being processed. The sources said $13.5bn. 2.2% from a year ago. Setback for Uber as European court advised to treat it as transport fi rm

Uber has argued it was connecting dermine the much needed reform of the urban transport service, Szpunar economy and could have knock-on ef- drivers with passengers; ECJ outdated laws which prevent millions said Uber, which was last valued at fects on other start-ups such as home- adviser says Uber not merely of Europeans from accessing a reliable $68bn, no longer operates UberPOP sharing service Airbnb and food deliv- digital intermediary; Barcelona ride at the tap of a button,” she added. in Spain and introduced a licensed ery companies inspired by Uber such as taxi drivers brought case against Europe has proved to be one of Uber’s version of its service in Madrid and Deliveroo. Uber toughest markets, where it already fac- Berlin last year. The European Commission has been es restrictions in several large countries First known as UberCab when it broadly supportive of the sharing econ- Reuters and major cities, forcing it to withdraw was founded in 2009, the fi rm faced omy and said last year governments Brussels or curtail services that depend on non- bruising regulatory battles with local should only ban services like Uber and licensed taxi drivers. taxi fi rms and municipal authorities, Airbnb as a last resort. As a result, it is unlikely to be re- starting with its headquarters city, San However, the ECJ’s Szpunar said that ber faces the biggest challenge quired to scale back its services by any Francisco where it offi cially launched Uber’s argument that it merely match- yet to its European roll-out af- ruling, although the opinion appears to services in 2011. es supply and demand between drivers Uter the region’s top court was block one of the company’s best hopes Expanding rapidly across the United and passengers was a “simplistic view advised to rule that the US for EU-wide regulatory relief. States and then internationally, it de- of its role.” ride-hailing fi rm is actually a trans- Uber, which allows passengers to veloped a reputation for launching fi rst “In eff ect, Uber does much more port service not an app. summon a ride through an app on their and dealing with regulators later. than link supply and demand: it created Although the opinion of the Court of smartphones, expanded into Europe The rapid growth and take-no-pris- this demand itself,” Szpunar wrote. Justice of the European Union’s (ECJ) fi ve years ago but has been challenged oners approach quickly turned Uber’s The service provided by Uber Advocate General Maciej Szpunar is in the courts because it is not bound name into a verb for disruptive start-up amounts to the “organisation and man- non-binding, its judges usually follow A passenger holds an iPhone displaying the Uber Technologies’ car service by the same strict licensing and safety fi rms that cannibalise existing indus- agement of a comprehensive system for such advice and are likely to reach a application in Budapest, Hungary. Europe has proved to be one of Uber’s rules as some competitors. tries. on-demand urban transport,” the ECJ fi nal ruling in the landmark case in the toughest markets, where it already faces restrictions in several large countries Szpunar upheld the view that the Uber now operates in just under 600 said. coming months. and major cities, forcing it to withdraw or curtail services that depend on same rules should be applied to Uber, cities around the world, although it Regulating the software company as If the ECJ does rule that Uber is a non-licensed taxi drivers. saying that its drivers “do not pursue an withdrew from China last year in the a “new economy” information service transport service, this is likely to have autonomous activity that is independ- face of stiff local competition from meant treating Uber as if it was simply an impact on the Silicon Valley fi rm’s is also struggling with a wave of execu- lona, which will then hand down the ent of the platform. Didi, which then acquired its assets. an air traffi c controller or market maker operations in Estonia, Poland, Czech tive departures and criticism of its work decision. On the contrary, that activity exists Nearly half of the cities Uber oper- connecting drivers to passengers. Republic, and Finland where it still runs culture. A spokeswoman for Uber said it solely because of the platform, without ates in are in North America, while it Instead, by forcing Uber to comply UberPOP, using amateur drivers to pick The case was brought by Barcelona would await the ECJ’s fi nal ruling, but which it would have no sense.” is active in around 100 cities in three with myriad local transportation regu- up riders. taxi drivers who argued that UberPOP added it “would not change the way we And Uber could not be seen as a other major regions, Central and South lations — some dating back as long as a The ECJ’s fi nal ruling cannot be ap- engaged in unfair competition by using are regulated in most EU countries as mere intermediary between drivers America, Europe and Asia. century — it must take more responsi- pealed by Uber, the world’s most valu- unlicensed drivers and the ECJ’s ruling that is already the situation today”. and passengers because it controlled The Luxembourg court case is seen bility for certifying, insuring and pay- able venture-backed company, which will bind the referring court in Barce- And a ruling against it would “un- economically important aspects of as a landmark in the so-called sharing ing its drivers, as taxi fi rms now do.