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Friday, October 13, 2017 Muharram 23, 1439 AH SCANDAL IN JAPAN: Page 3 Bad parts found GULF TIMES in bullet trains reveal widening BUSINESS Kobe Steel crisis IEA sees global oil market balanced in 2018, even with rising output

Reuters 1.6mn bpd in 2017, before moderating the third quarter of this year, only the Exporting Countries and its partners by 1.8mn bpd until March next year. 31.87mn bpd in the first three months London to 1.4mn bpd in 2018. second draw since the crude price cannot aff ord a slip in adherence to “There is little doubt that leading of 2018. The IEA said it sees non-Opec “Looking into 2018, we see that three crashed in 2014, thanks to a drop in the their supply-restraint deal. producers have re-committed to do crude supply rising by 700,000 bpd quarters out of four will be roughly amount of oil held in floating storage or Opec supply was little changed whatever it takes to underpin the in 2017, and by 1.5mn in 2018 to reach Global supply and demand for crude balanced — again using an assumption in transit, the IEA said. in September at 32.65mn bpd, market and to support the long process 59.6mn bpd, with the US being the oil will be largely balanced next year, of unchanged Opec production, and Commercial stocks in industrialised but down 400,000 bpd from a of rebalancing,” the agency said. “A lot largest contributor. as growth in consumption helps erode based on normal weather conditions,” countries fell in August by 14.2mn year earlier, meaning the group’s has been achieved towards stabilising “Production likely rebounded in the a three-year-old overhang of unused the agency said. “Taking 2018 as a barrels to 3.015bn barrels, leaving a compliance with its self-imposed the market, but to build on this North Sea and in Brazil, while the fuel and should mostly off set a steep whole, oil demand and non-Opec surplus of 170mn barrels above the five- 1.2-mn-bpd output cut stood at 88% success in 2018 will require continued continued ramp-up of production from rise in output, the International Energy production will grow by roughly the year average, the IEA said. last month and 86% for the year-to- discipline.” new fields in Kazakhstan, Ghana and Agency said yesterday. same volume and it is this current However, the IEA said its numbers date, the IEA said. The IEA said it expects demand for Congo also contributed. At 57.9mn bpd, In its monthly oil market report, the outlook that might act as the ceiling for implied a build could take place in the Together with its partners, which Opec’s crude to rise to 32.98mn bpd in total non-Opec output stood 975,000 Paris-based IEA said it continues to see aspirations of higher oil prices.” first quarter of next year, meaning include Russia, Oman and Kazakhstan, the fourth quarter of this year, above bpd above a year earlier,” the agency global demand for crude growing by Commercial oil stocks likely fell in the Organisation of the Petroleum the group has agreed to restrain output September’s output, and then to fall to said.

IMF praises Qatar’s Qatar, India bilateral robust economy

QNA Doha

he International Monetary Fund (IMF) has praised the trade tops $8.4bn in robustness of the Qatari economy following a visit by an TIMF delegation to Qatar. The fund’s experts lauded the competence and responsiveness of Qatar’s management of the current crisis during the visit. The delegation also praised the level of coordination be- tween diff erent government entities and their readiness to face any possible scenarios. March: Alpen Capital Qatar Central Bank (QCB) Deputy Governor Sheikh Fahad bin Faisal al-Thani said the bank implements the latest global By Pratap John telligence on terror fi nancing. During the standards set by the IMF in issuing statements and is com- Chief Business Reporter visit, the countries entered into seven mitted to allowing access to the statements with the highest agreements on investments in infrastruc- standards of quality and transparency. ture, customs matters, exchange of intel- Sheikh Fahad said the bank recently amended the indices in ilateral trade between Qatar and In- ligence, skilled labourers, tourism, health its monthly and seasonal bulletins to comply with the Special dia stood at $8.4bn during the fi s- and youth and sports. Eventually, the Data Dissemination Standard (SDDS), which includes indices Bcal year that ended in March this countries signed agreements on the grant on international reserves and liquidity in foreign currency. year even as Ras Laff an remains the larg- of e-visas to businessmen and tourists He said the bank has succeeded in maintaining the stabil- est source of liquefi ed natural gas for the and visa-free travel for diplomats; cyber ity of the Qatari riyal’s exchange rate as well as addressing the Asia’s third largest economy, a new report space/cyber-crime and a framework to decline in non-resident deposits, adding that the banking sec- has shown. enable Indian companies to participate in tor in Qatar remains one of the best in the region, with strong Qatar, according to Alpen Capital, aims infrastructure projects for the 2022 FIFA capitalisation and high-quality assets. to enhance production of natural gas by World Cup. 10% from a large underwater gas fi eld, Lately, Qatar also permitted visa on ar- which is likely to increase export capacity rivals to nationals from 80 countries, in- Saudi to impose regulatory measures on Fransi by 2bn cubic feet per day. cluding India, the report said. In fi ve years up to 2020, Qatar’s hospi- In terms of trade between the GCC bloc Saudi Arabia’s central bank will impose “appropriate regulatory tality market is expected to demonstrate This file photo taken on February 6, 2017 shows the Ras Laff an Industrial City, Qatar’s and India, the value had reached $97bn measures” on Banque Saudi Fransi after the country’s fifth- the fastest annualised growth of over 10%, principal site for production of liquefied natural gas and gas-to-liquids. Qatar is the in the fi scal ending March, Alpen Capital largest lender said it’s looking into payment violations in an owing mainly to tourism-related develop- largest source of LNG for India. said. employee-incentive scheme, Bloomberg said. ments ahead of landmark events to be held While India sources a sizeable chunk of The Saudi Arabian Monetary Authority is closely monitoring in the country, the Alpen Capital report of the Doha Exhibition and Convention vestment and labour. Qatar is the largest its energy requirement from the GCC, the measures taken by Fransi’s board to rectify shortcomings in entitled “GCC-India Corridor” noted. Center in November 2015. The report said source of liquefi ed natural gas for India. member nations – home to nearly 8.5mn applying regulatory policies, it said in a statement on its website. Qatar’s sovereign wealth fund and other Qatar provides numerous opportunities The two countries has entered into Indians – have a large market for Indian Specialised teams are looking into the “abuse of authority” at government-owned entities are exploring for investments in infrastructure, partic- some six agreements for cooperation in products and services. Fransi’s employee-incentive programme in recent years that options to invest in Indian infrastructure. ularly because the country is hosting the areas of ICT, atmospheric and ocean sci- “The increase in visits by high-level resulted in payments violating policies, the lender said earlier In February this year, Qatar Holding FIFA World Cup 2022, for the fi rst time in ences, radio and television, exchange of dignitaries in the last three years, sup- Wednesday. disclosed plans to invest $250mn in an the entire Middle East. news between Qatar News Agency and plemented by the signing of cooperation Saudi Fransi shares slumped as much as 5.3% on the Saudi stock aff ordable housing fund in India, Alpen It also said “Qatar is charting a new United New Agency, transfer of sentenced agreements in various areas, is a testament exchange before closing down 2.7% at 25.98 riyals on Wednes- Capital said. public-private-partnership law” to at- prisoners and foreign aff airs, Alpen Capi- to the fortifying relationship between the day. “The board stresses that it has started taking corrective The report highlighted that the open- tract multi-billion dollar investments. tal said. regions. The fl ow of investments between measures to deal with abuses and hold accountable those who ing of large convention centres in Qatar In March 2015, His Highness the Emir In June 2016, Indian Prime Minister the regions is likely to rise, given the im- are found to be responsible and to work on preventing such is likely to boost business visitor traffi c to Sheikh Tamim bin Hamad al-Thani vis- Narendra Modi visited Qatar to boost bi- proving ties and regulatory reforms,” Al- abuses in future,” the bank said. the country. Qatar witnessed the opening ited India for discussions on energy, in- lateral trade and sign a pact to share in- pen Capital said. Oil, austerity expected to shrink Saudi economy this year

Reuters Saudi growth than the IMF, which expects Economics, which now expects a Tough times Dubai the economy to expand 0.1% this year. contraction of 1.3% for the whole year. „ GDP would But a senior IMF off icial conceded last week He added, “The drag from the oil sector shrink for first that its forecast might be diff icult to achieve seems to have intensified, while the non-oil time since Saudi Arabia’s economy is expected to because of an unexpectedly weak non-oil sector lost a bit of momentum.” financial crisis shrink this year for the first time in eight sector. Publicly, Saudi policymakers insist the years, hit by sagging oil output and austerity Next year, the Saudi economy is expected to economy is healthy and that growth will pick „ Private policies which are hurting private sector grow 1.3%, instead of the 1.9% projected in up. But Tuvey said they would be concerned analysts more growth. the previous poll, the analysts said. that a slight easing of austerity in the second gloomy on A Reuters poll of 15 economists analysts They expect growth to rise further to 2.0% quarter – a reversal of cuts to civil servants’ Saudi than found yesterday they had lowered their in 2019. benefits – had not boosted the non-oil IMF median forecast for Saudi gross domestic The Saudi slump is partly due to lower oil sector. product in 2017 to a fall of 0.5%. output; the kingdom has cut production this That may force authorities to ease austerity „ Impact of In the previous poll, conducted in July, they year under an international deal to prop up further, possibly by holding off on domestic austerity had predicted expansion of 0.1%. prices. fuel and electricity price hikes originally steps larger It would be the first annual contraction of The deal runs through next March, but planned for this year. than expected the Saudi economy since the global financial producers are discussing whether to extend Off icials are considering whether to go crisis in 2009, according to International it. ahead with the hikes. „ New Monetary Fund data, and could raise A deeper-than-expected slowdown in the The Reuters poll also predicted Saudi austerity concern about the kingdom’s economic non-oil private sector is also dragging on the Arabia’s government would run a fiscal measures may reform programme. economy, however. deficit of 8.1% of GDP this year – a big need to be A privatisation scheme and other reforms New private investment has largely halted improvement from 12.3% last year, according delayed aim to reduce reliance on oil exports by and the non-oil sector expanded just 0.6% to Saudi data, but still much too large to igniting private sector growth. from a year ago in the second quarter of sustain in the long term. „ Fiscal deficit But spending cuts and tax rises to cut the 2017. The deficit will shrink only slowly to 7.5% still expected huge state budget deficit are weighing “Our GDP Tracker suggests that the next year and 7.3% in 2019, the poll forecast, A Saudi man walks past the logo of the Vision 2030 after a news conference in Jeddah to be large in heavily on the private sector. downturn deepened further at the start suggesting Riyadh is unlikely to hit its (file). The analysts in the Reuters poll have become significantly more gloomy about 2019 The analysts in the Reuters poll have of Q3,” said Jason Tuvey, Middle East publicly stated goal of eliminating the deficit Saudi growth than the IMF, which expects the economy to expand 0.1% this year. become significantly more gloomy about economist at London-based Capital by 2020. Gulf Times 2 Friday, October 13, 2017 BUSINESS

Lawsuit filed against Mobily scandal suspects

Reuters Dubai

Saudi Arabia’s market regulator said a lawsuit was filed yesterday against individuals related to an accounting scandal at telecoms group Mobily. The public prosecution filed the suit in the Committee for the Resolution of Securities Disputes, which has jurisdiction over the dispute, the Capital Markets Authority (CMA) said on its website. The CMA did not name the suspects nor say how many were involved. It said the suspects had earlier been referred on suspicion of violating Article 49 of Saudi Arabia’s Capital Market Law, which relates to creating a false or misleading impression of a company’s value. The lawsuit follows an investigation launched by the CMA after Mobily restated 27 months of earnings due to accounting errors related to the premature booking of revenue from wholesale broadband leases and mobile promotional campaigns. The restatements cut 1.76bn riyals ($469mn) off the profits made during that time by the company, which is partly owned by Abu Dhabi-based Etisalat. In January, Saudi Arabia’s Committee for the Resolution of Securities Disputes (CRSD) found a number of individuals guilty of providing insider information and of insider trading in Mobily’s shares.

The insurance, banking and telecom counters witnessed stronger demand yesterday as the 20-stock Qatar Index gained 0.1% to 8,342.09 points. PICTURE: Noushad Thekkayil Qatar shares extend

In January, Saudi Arabia’s Committee for the Resolution of Securities Disputes found a number of individuals guilty of providing insider information gains to 5th day on and of insider trading in Mobily’s shares Turkish lira gains foreign institutions on bets spat with By Santhosh V Perumal next 15 minutes only to see large- Doha Bank, Qatar Islamic Bank, against QR4.49mn on Wednes- QR24.06mn and 49% in trans- Business Reporter ly a selling mode for the next 60 al khaliji, Gulf International day. actions to 399. minutes. Strong buying support Services, Al Khaleej Takaful, Qa- Local retail investors’ net However, the insurance sec- US won’t escalate ensued for the remainder of the tar General and Reinsurance and selling rose perceptibly to tor’s trade volume more than oreign institutions’ sus- session helping the index settle Salam International Investment; QR16.34mn compared to doubled to 0.42mn equities and tained strong buying yes- eight points higher. whereas Commercial Bank, Qa- QR14.13mn the previous day. value also more than doubled to Bloomberg showed there’s still caution Fterday lifted the Qatar Trade turnover expanded tari Investors Group, Qatar Na- Non-Qatari individual inves- QR20.07mn but on a 9% fall in Istanbul over the timing of more inter- Stock Exchange for the fi fth amidst lower volumes in the tional Cement, Aamal Company, tors turned net sellers to the tune deals to 86. est-rate increases. consecutive day, albeit at lower bourse, where the banking and Vodafone Qatar, United Devel- of QR0.81mn against net buyers The market witnessed a 72% The crisis between the two levels. real estate sectors together ac- opment Company, Barwa, Gulf of QR1.26mn on October 11. surge in the transport sector’s trade urkey’s currency pushed Nato allies, sparked by the ar- The insurance, banking counted for more than 64% of Warehousing and Nakilat were Total trade volume fell 8% to volume to 0.43mn stocks to more higher against the dollar rest of local Turkish consular and telecom counters wit- the total volume. among the losers. 7.58mn shares, while value rose than double value to QR9.84mn Tfor a second day yester- employees, pushed the lira on nessed stronger demand as the The Total Return Index was Non-Qatari institutions’ net 41% to QR207.32mn despite 9% and transactions to 284. day and bonds continued to Monday to its weakest level 20-stock Qatar Index gained up 0.1% to 13,989.19 points and buying strengthened impres- lower deals to 2,623. The consumer goods sec- rally amid signs eff orts are un- versus the greenback for more 0.1% to 8,342.09 points. the All Share Index by 0.18% sively to QR31.26mn compared There was a 51% plunge in the tor’s trade volume soared 61% to derway to resolve a diplomatic than eight months, adding to Islamic equities, however, saw to 2,340.74 points, while the to QR15.02mn on Wednesday. telecom sector’s trade volume to 0.29mn shares and value by 2% spat with the US that hurt the the eff ect from a sell-off of de- declines in the bourse, whose Al Rayan Islamic Index shrank GCC (Gulf Cooperation 0.42mn equities, 34% in value to to QR10.76mn, while deals were nation’s assets. veloping-country markets in year-to-date losses were at 0.45% to 3,340.62 points. Council) funds’ net buying in- QR6.63mn and 4% in transac- down 4% to 159. The lira trimmed this week’s recent weeks as traders priced 20.07%. The insurance index gained creased to QR2.72mn against tions to 196. The banks and fi nancial serv- loss to less than 1% as NTV in higher US interest rates. A marginally higher net buy- 1.16%, followed by banks and QR2.17mn the previous day. The industrials sector’s trade ices sector saw a 50% expansion television reported that a “It’s certainly not clear there ing from Gulf funds also helped fi nancial services (0.45%) and GCC retail investors’ net buy- volume plummeted 50% to in trade volume to 3.17mn equi- US delegation is expected to will be an immediate escala- the market, whose capitalisation telecom (0.31%); while trans- ing also strengthened margin- 1.14mn stocks, value by 28% to ties to more than double value to visit Turkey next week to dis- tion of risks for markets to bite grew 0.22% to QR453.82bn. port declined 0.34%, followed ally to QR0.66mn compared to QR25.47mn and deals by 22% to QR110.49mn on an 11% jump in cuss a tit-for-tat visa freeze. their teeth into,” Manik Narain, The strong decline in the fi rst by industrials (0.29%), realty QR0.16mn on October 11. 454. transactions to 1,045. The currency also benefi ted a strategist at UBS Group AG, 15 minutes took the index below (0.17%) and consumer goods However, domestic institu- The real estate sector reported In the debt market, there was along with emerging-market said by email. “So I think peo- 8,280 points after which there (0.03%). tions’ net profi t-booking shot a 27% shrinkage in trade volume no trading of treasury bills and peers from US Federal Reserve ple may be trying to fade it was some buying support for the Major movers included QNB, up considerably to QR17.5mn to 1.71mn shares, 13% in value to government bonds. minutes on Wednesday that from that perspective.” A Trump red light for Iran deal: What’s at stake for oil and gas

Trump expected to make its side of the bargain.” surged to about half a million announcement on nuclear If a Trump decision leads to barrels a day after the EU lifted its accord in days; Total signed tighter US restrictions, it could embargo. Iran’s sales to China, its biggest Iran gas contract choke off the foreign investment biggest buyer, swelled in August since sanctions eased Iran needs to rehabilitate ageing to the highest level since June energy assets and boost oil and 2016, according to ship-tracking Bloomberg gas production. Earlier US energy data compiled by Bloomberg. London/Dubai sanctions, suspended in January “Europe seems unwilling to 2016, targeted Iran’s oil exports re-impose oil-related sanctions, by threatening its customers with as was the case in 2012,” said Iran, already struggling to attract financial penalties if they didn’t Homayoun Falakshahi, an analyst investors to its energy industry, scale back purchases. at consultant Wood Mackenzie may find things tougher still as The US has leverage to impose Ltd. But the US could seek to US President Donald Trump tries similar punishment on energy pressure buyers of Iranian crude, to undermine the nuclear deal companies doing business with especially those with assets in that eased sanctions on Opec’s Iran, as many have operations the US, he said. third-largest crude producer. in the US and use dollars to pay If the US pulls out of the His eff orts won’t immediately for equipment and contractors. agreement and succeeds in curb the flow of some 2.3mn bpd “Project finance and investment persuading Europe to reinstate Iranian crude exports – more will become even tougher its embargo, Tehran could find oil than three times the amount of than they are today,” said Iman exports capped at around 1mn oil the US has sold abroad over Nasseri, a senior consultant at bpd, or roughly the same level the past year. For investors, London-based researcher FGE. targeted by sanctions between however, the risks could be Trump’s ability to curb crude 2012 and 2015, FGE’s Nasseri higher. Companies such as Total, sales may be more limited, said. Such a scenario is unlikely. which in July became the first Nasseri said. Under the last round A more plausible outcome would major Western energy company of sanctions, the US relied on the be for the US to uphold the to sign a production deal with willingness of Asian customers nuclear deal but add sanctions Iran since the 2015 accord, may to buy less Iranian oil, while the on some Iranian entities and energy sanctions? face new hurdles in contributing European Union imposed a full intensify financial pressure, he A unilateral US decision to investments and interest in do most of the work for the first to the Gulf country’s estimated embargo. Unless other parties to said. re-impose sanctions on Iran International companies Iran” right now, FGE’s Nasseri phase of South Pars, partly due to $100bn need for oil and natural the deal are willing to renegotiate Could Iran still develop “would curb the enthusiasm have been wary of signing said. “There will be extra risks.” minimum requirements for local gas investment. or scrap it, the US under Trump is oil and gas fi elds of European and some Asian new contracts with Iran Total can pay for the South staff ing and content in the project. How could a US decision likely to be isolated this time if it to boost output? corporates for following because sanctions on financial Pars project with its own funds, Royal Dutch Shell, Italy’s Eni aff ect energy markets? targets oil sales. through with plans to invest in transactions with the country instead of borrowing from banks, and Russia’s Rosneft Oil Co are What would happen to Iran’s gas reserves, estimated the Iranian upstream sector,” remain in place. Total agreed to minimise its exposure to the among more than 30 foreign A declaration from Trump this Iran’s oil exports and by BP at 1,183tn cubic feet (33tn said Helima Croft, global head to develop Iran’s share of the US financial system for Iran- companies that have qualified week that Iran is in breach of the production? cubic meters), are the world’s of commodity strategy at RBC world’s biggest gas field, the related matters, Nasseri said. for oil and gas projects in Iran spirit of the agreement intended largest and almost four times Capital Markets. This, in turn, off shore South Pars deposit, Off icials at Total didn’t reply since sanctions were eased. The to prevent it from developing The US hasn’t bought Iranian oil the size of US deposits. Iran has could “force foreign refineries in the country’s only deal with when asked to comment. “We are list includes Schlumberger Ltd, nuclear weapons could splinter for close to 40 years, but the Gulf raised oil output by about a to source less crude from Iran, a foreign energy major since respecting international laws,” an oil-field services business with the pact that world powers country’s exports have flooded third to some 3.8mn bpd since especially if the threat of being sanctions were scaled back. chief executive off icer Patrick principal off ices in the US and reached with Tehran two years back into Asian and European sanctions were eased in January locked out of US capital markets Paris-based Total estimates the Pouyanne said in a July interview. Europe. American citizens can’t ago. Iran denies that it seeks to markets, roughly doubling to 2016, and it’s seeking to boost was revived.” project needs an initial $1bn to “If rules are changing, we will do business with Iran, and US build atomic weapons, and its between 2.2mn and 2.4mn bpd production capacity for crude Who would be most get started. have to adapt.” companies are prohibited from Foreign Minister Javad Zarif has since sanctions were eased to 4.7mn bpd over the next five exposed under new “Total is the only company with WoodMac’s Falakshahi expects working there except through said the US “failed to implement last year. Shipments to Europe years. long-term commitment and Iranian service companies to foreign subsidiaries. Gulf Times Friday, October 13, 2017 3 BUSINESS

A JR Central N700 series Shinkansen bullet train approaches Tokyo Station (file). While there’s no safety risk, two companies operating the high-speed Shinkansen trains yesterday said they found Kobe Steel components that failed to meet Japanese industry standards. Bad parts found in bullet trains reveal widening Kobe Steel crisis

JR Central, JR West say parts do whether safety was compromised While they don’t pose any safety risks, not pose safety concerns; Kobe in their cars, trains and planes, the aluminium components connecting CEO apologises; more than a third company said two more products were wheels to train cars failed Japanese of company’s market value wiped aff ected and further cases could come industry standards, according to off to light. There have been no reports Central Japan Railway Co, which of products being recalled or safety operates bullet trains between Tokyo Bloomberg concerns raised. and Osaka. Of the tested parts, 310 Tokyo “I deeply apologise for causing concern were found to be sub-standard and to many people, including all users will be replaced at the next regular and consumers,” Kobe Steel chief inspection, spokesman Haruhiko Kobe Steel Ltd’s fake data scandal executive off icer Hiroya Kawasaki said Tomikubo said. They were produced penetrated deeper into the most at a meeting with a senior government by Kobe Steel over the past five years, hallowed corners of Japanese industry off icial yesterday. He said trust in the he said. West Japan Railway Co, which as iconic bullet trains were found with company has fallen to “zero” and he will runs services from Osaka to Fukuoka, sub-standard parts supplied by the work to restore its reputation. “Safety is also found sub-standard parts made by steelmaker. the top priority.” Kobe Steel. While there’s no safety risk, two Shares in the company rebounded 0.5% Investigations have been completed companies operating the high-speed yesterday, after plunging 36% over on about 100 of 200 companies to Shinkansen trains said they found Kobe the previous two days. About $1.6bn which Kobe Steel supplied the aff ected Steel components that failed to meet of Kobe Steel’s market value has been products, Kawasaki said. The company Japanese industry standards. The chief wiped out since the revelations were plans to release the findings of safety executive off icer of the 112-year old made. checks for the products in about two steelmaker apologised for the crisis While shares collapsed, bond risk has weeks, and the causes of the issue and as compromised materials turn up in spiked. Five-year credit-default swaps planned countermeasures within a everything from cars to DVDs. The insuring the company’s debt against month. aff air has wiped off more than a third of default have jumped 222 basis points While there have not been any reports the company’s market value and led to to 279, the highest since February 2016, that Kobe Steel products posed safety speculation it may be broken up. according to data from CMA. risks, the company is likely to face The latest scandal to hit Japanese Figures were systematically fabricated lawsuits from investors, customers, manufacturing erupted on Sunday at all four of Kobe Steel’s local consumers and regulators in Japan after the country’s third-largest aluminium plants, with the practice and US, experts say. Deputy Chief business lines could be beneficial for dominated by JFE Holdings Inc and Kobe Steel’s steel businesses,” Pham steelmaker admitted it faked data dating back as long as 10 years for Cabinet Secretary Kotaro Nogami shareholders and rivals, according to Nippon Steel & Sumitomo Metal Corp, said yesterday on Bloomberg TV. “That about the strength and durability of some products, the company said on on Wednesday said the faked data Thanh Ha Pham, an analyst at Jeff eries which accounted for about 70% of the would be a very good scenario, to some aluminium and copper. As clients Sunday. Data was also faked for iron ore undermined the basis of fair trade, Japan Ltd, who has a “Buy” rating for country’s production in the year ended have further restructuring in the steel from Toyota Motor Corp to General powder and target materials that are calling it “inappropriate.” the company. Kobe’s steel business March. industry in Japan.” Motors Co scrambled to determine if used in DVDs and LCD screens, it said If lenders were to take over Kobe Steel, would fetch roughly ¥200bn ($1.78bn), “I talked with management of JFE and JFE said it isn’t actively considering they used the suspect materials and three days later. a break-up of the company along he said. Japan’s steel industry is I think they are very happy to buy purchasing Kobe Steel’s steel business.

Bloomberg QuickTake Q&A Kobe steel scam hits planes, trains and automobiles So this was no one-off ? By Masumi Suga and Chikako Mogi any serious safety concern as a result Tokyo Hardly. The fabrication of data relating of the compromised products. to aluminium was found at all four of What is the company doing? Kobe Steel’s local plants in conduct the Kobe Steel Ltd has made a startling company described as “systematic.” Chief executive off icer Hiroya admission: It sold products that failed For some items, the practice dated Kawasaki is leading a committee to quality control tests to more than 200 back some 10 years, according to probe the quality issues. He has run companies. Worse still, it did so not in Kobe Steel executive vice president Kobe Steel since 2013, overseeing error but by falsifying data to make it Naoto Umehara. The dodgy materials moves to expand the No 3 Japanese appear that items had made the grade. used in bullet trains were supplied steelmaker’s presence in aluminium. Aircraft, electronics, car and bullet over the past five years, according “I deeply apologise for causing train manufacturers were among to one customer. Details of how the concern to many people, including all the recipients, raising obvious safety deception unfolded have yet to fully users and consumers,” Kawasaki said concerns. From Boeing Inc to Toyota emerge. yesterday. Kobe Steel is likely to face Motor Corp, companies are scrambling Which companies lawsuits from investors, customers, data undermined the basis of fair Tainted aluminium may mean more hard drive failures to check any aff ected products. And were aff ected? consumers and regulators in Japan trade, calling it “inappropriate”. It’s Japan Inc is facing up to another and US, experts say. another scandal that threatens to Kobe Steel Ltd’s admission could increase, according to embarrassing scandal. A who’s who of the transport industry. What’s the market’s verdict? undermine confidence in Japanese they fudged information about Bloomberg Intelligence analyst What exactly did There are carmakers such as Toyota manufacturing. Shinko Wire Co, a Kobe the strength and durability of Simon Chan. Kobe Steel falsify? Motor Corp and Honda Motor Co; they Shares in Kobe Steel plunged Steel aff iliate, in 2016 said a unit had their aluminium products has “The impact to the product quality used the suspect materials in hoods 36% in the two trading days after misstated data on stainless steel wires spurred concerns cars, trains and is if the tainted aluminium aff ects The admissions have dribbled out, and doors. There’s Boeing Co, which the company’s initial mea culpa, and that it had supplied customers airplanes may be compromised. It the disk stability when spinning at and more may follow. Initially, the is examining parts it gets from Kobe wiping out $1.6bn of market value. with alloy that failed to meet Japanese might also mean more hard drive the speed necessary,” Chan said by company confessed to falsifying data Steel customer Subaru Corp. Then “This is not going to be the end of standards. Takata Corp pleaded guilty failures. phone. “We could see a higher failure about the strength and durability of there’s Hitachi Ltd, which said trains Kobe Steel, it could be the end for in the US in February to one count of The company supplies nearly 60% rate for the hard disk drives.” some copper and aluminium that was it has exported to the UK contained management,” said Thanh Ha Pham, wire fraud for misleading automakers of the aluminium disc blanks used Any impact is likely limited as more used in cars and trains and possibly compromised metal as well as bullet an analyst at Jefferies Japan Ltd. “It about the safety of its exploding air in the world’s hard drives with consumers are buying electronics planes and a space rocket, too. Then trains in Japan. Central Japan Railway could result in the break-up of the bags. Toyo Tire & Rubber Co off icials production centres in Japan and with solid-state drives that don’t Kobe Steel said it may also have Co, the operator between Tokyo and company.” were referred to prosecutors in March Malaysia, according to its latest spin, according to Chan. It is unlikely faked data about iron ore powder Osaka, said two types of aluminium More bad publicity for after the company admitted falsifying annual report. Kobe Steel is one of to trigger a recall for hard disk and materials used in DVDs and LCD parts used to connect cars to wheels Japan’s manufacturers? data on rubber for earthquake- only two major suppliers for the drives, unless we see evidence of screens. The firm says it’s likely to fell short in quality tests. West Japan proofing buildings in 2015. And Nissan market and that means – at the higher failure rate due to material uncover additional cases. Railway Co also found sub-standard Japan Deputy Chief Cabinet Secretary recalled more than 1mn cars in Japan very worst – hard drive failures weakness, he said. parts. As yet, no company has flagged Kotaro Nogami has said the faked in October. Gulf Times 4 Friday, October 13, 2017 BUSINESS

Bain Capital leads charge as Japan’s private equity dealmaking picks up

Reuters years from now we’ll have twice as many ageing population – changes in corporate regions. Another global name, Blackstone According to people familiar with the discussions around their semiconductor Hong Kong/Tokyo deals as we do now.” governance standards and a more active Group, will remain focused on real estate deal, Bain is part of the winning bid for business started more than two years ago Japan’s private equity market is small initial public off ering market allowing for in Japan, a person familiar with the firm Takata, led by Chinese-owned US-based – long before the crisis that prompted the relative to its economy, the world’s third future exits. said. Key Safety Systems. nuclear-to-laptops group to sell out. Bain Capital is planning on further ramp- largest. This year, though, the Toshiba Bain led a group of investors, including But Bain has been ahead, striking two Bain declined to comment on Takata. It separately spent three years building ing up its dealmaking in Japan after it acquisition has pushed private equity- Apple, SK Hynix, Dell, Seagate Technology of Japan’s five largest private equity- In a decade, Bain has invested in a wide the relationship with ADK, one of the only came out on top in the recent battle to backed deals in Japan to a record $22bn – Plc and Kingston Technology that agreed backed M&A deals, with Toshiba the range of companies in Japan, from hot three advertising agencies in the country purchase Toshiba’s semiconductors arm more than double 2016’s $8bn, according to pay $18bn for the Toshiba chips busi- biggest. spring chains, wind farms to a mushroom that has access to Japan’s dominating TV and as it bids to buy out Japan’s third-larg- to Thomson Reuters data. ness after a mammoth bidding battle. KKR’s $4.2bn acquisition of auto parts growing business. networks. est advertising agency, Asatsu-DK (ADK). From 2007 to 2016, some 30-40 Bain is one of several global private maker Calsonic Kansei Corp is the second Bain invests in Japan out of its Asian But it is not guaranteed success every In making further acqusitions, the buyout deals on average were struck an- equity firms that opened off ices in Japan largest. funds and sometimes use dry powder time. Both Toshiba and ADK deals are Boston-based Bain would cement its nually with slightly fewer exits each year, before the global financial crisis, but it has Gross-Loh said that Bain is able to from its global funds for larger transac- yet to be completed, and Bain’s buyout position as one of the most active private according to data provider Preqin. bet on its own team to forge relationships, catalyse growth at Japanese domestic tions – such as the Toshiba deal. off er for ADK has been opposed by the equity firms in Japan and help to break And both deals and exits have been rather than rely on banks or advisers – a businesses that were stable and well- One of its most lucrative deals in Japan agency’s largest shareholders. down a corporate culture that has been worth a fraction of those done in China slower process. managed but weren’t exposed to global was a $67mn investment in Domino’s “As global funds like KKR and Bain are mostly hostile to foreign investors. every year. And American rivals have also piled in. rivals and therefore not as competitive as Pizza Japan in 2010, which as of May this getting bigger, they can allocate more “Japan is a hard market. Yet this year has seen a pick-up in inter- KKR & Co is looking to deploy more they could be. year generated an internal rate of return cash to Japan,” said Sam Takata, head of It takes years to build teams, relation- est, industry sources say, in part thanks to money in Japan after completing a string Both Bain and Carlyle last year partici- of 156%, according to data from Centre for private equity investment at Tokio Marine ships, credibility,” said David Gross-Loh, significant volumes of cash raised in 2016 of investments, while Carlyle Group pated in the high-profile auction of Takata Asia Private Equity Research. Asset Management. “That means the mar- who is Bain’s co-head of Asia and is in as funds look to Japan. targets companies in the upper-mid Corp, which filed for bankruptcy in June Bain has been patient. ket will become more competitive and charge of its business in Japan, in an in- They are hoping to cash in on de- size with its Japan fund, while seeking after its air bags were linked to deaths It started talking to the corporate level firms will have to try more diff icult deals terview. “I wouldn’t be surprised that five mographic shifts – such as the nation’s larger deals with its funds in other global and injuries. of Toshiba about seven years ago, while to build up their track record.”

Qualcomm slapped China could outdo Carney and with record antitrust fi ne in Draghi with targeted loan plan Bloomberg Taiwan Beijing

AFP blockage in credit to particular Taipei parts of China’s economy has A spurred the central bank to em- brace a strategy used by the European aiwanese authorities have Central Bank and the Bank of England imposed a record fi ne of – while aiming for greater success. Tnearly $800mn on Qual- With broad M2 money supply comm for antitrust violations in growth forecast to have lingered at a the latest of a string of setbacks for record-low 8.9% in September as poli- the US computer chip giant. cymakers push to curb over-indebted- Taiwan’s Fair Trade Commis- ness in some parts of the economy, the sion slapped Qualcomm with a People’s Bank of China is now trying fi ne of Tw$23.4bn ($774mn) for to free up funds for others, like small harming market competition businesses and agriculture. From Jan- and manipulating prices follow- uary, banks doing enough of that sort ing an investigation launched in of lending will get a reduction in re- 2015. quired reserves of up to 1.5 percentage “Qualcomm’s illegal actions point, from 17% now for large lenders. have seriously aff ected the (mar- China’s programme, unveiled on ket) competition... to ensure, September 30, may improve on the maintain or enhance its domi- outcome of the BoE’s Funding for nance in the market,” the com- Lending Scheme or the ECB’s targeted mission said in a statement late longer-term loans because the econ- Wednesday. omy isn’t swimming in other types of According to the commis- monetary stimulus nor in post-crisis sion, Qualcomm had violated fair gloom. And even though PBoC gover- trade rules for at least seven years nor Zhou Xiaochuan, who meets with by refusing to off er licences that other global policy chiefs this week in are essential for manufacturing Washington, can take some pleasure in chipsets to rival manufacturers China’s robust economic performance and had imposed unfair contracts this year, there’s plenty of need for on smartphone makers. funding still unmet. Qualcomm earned more than Smaller enterprises in the world’s $13.33bn in royalty fees and $30bn second-largest economy have been “an in baseband chip sales to local under-nourished part of the market companies during that period, it and have been for decades,” said Keith added. Pogson, a managing partner at Ernst & The world’s biggest handset Young LLP in Hong Kong and founder chip supplier said yesterday it of the fi rm’s Asian fi nancial services would appeal the fi ne. practice. “The Europeans have strug- “Qualcomm disagrees with the gled because there hasn’t been a choke decision... and intends to seek point in the market.” to stay any required behavioural The RRR cut also comes just before measures and appeal the deci- President Xi Jinping convenes top cad- sion to the Taiwanese courts,” the res at the 19th Party Congress next company said in a statement. week. Protecting the real economy has Last year, Qualcomm was been an even greater priority in the hit with a record fi ne exceeding run-up to that all-important twice- The People’s Bank of China headquarters in Beijing. The PBoC is now trying to free up funds for small businesses and agriculture. From January, banks doing enough of $850mn by South Korea’s anti- a-decade meeting, with authorities that sort of lending will get a reduction in required reserves of up to 1.5 percentage point, from 17% now for large lenders. trust watchdog for abusing its working overtime to cut excess lever- dominant market position as a age and contain risks that could derail the announcement and implementa- from it cheaply in return for lending quantitative easing. Annual growth that, in turn, has crimped lending to maker of baseband chipsets used growth. tion should increase banks’ incentive to consumers and companies. Under rates of credit to non-fi nancial Corps small fi rms, which are already disad- in mobile phones. Though policymakers recognise the to lend more support to those in need.” Carney, the programme was amended and households are positive again, but vantaged by government policy that It was also fi ned nearly $1bn by private economy’s contributions to Third-quarter data for gross-do- in 2014 to specifically target smaller the overall stock of credit to companies directs the biggest banks, owned by Chinese antitrust authorities in job creation and tax revenue, big banks mestic product is due for release on enterprises. While the central bank has barely risen. the government, to funnel more easy 2015 for violation of competition are often reluctant to lend to the sec- October 19. The consensus forecast said it contributed to “significant im- For the PBoC, there’s a second bo- credit to other major state-owned en- rules. In the United States, Qual- tor because of the risk concerns. China in a Bloomberg survey of economists provements in household credit con- nus if the programme works. Should terprises. comm is locked in contentious fi rst introduced targeted reserve-ra- points to a modest slowdown from the ditions,” the impact on businesses was the lower reserve ratio result in a rush The RRR cut “basically means free patent battles with fellow tech gi- tio reductions in 2014 to aid the real second quarter, with an expansion of more muted. of borrowing by private businesses, money” for smaller banks because ant Apple, which fi led a lawsuit in economy, but an expansion is need- 6.8% after 6.9%. While China’s econ- That year, the ECB under President the central bank will push lending they rely more on inter-bank borrow- January accusing the chip maker ed because the fi nancial system and omy is in a radically diff erent condition Mario Draghi began “targeted longer- back into offi cial balance sheets and ing, and economic indicators such as of abusing its market power to de- economy will face tightening next year, than that in the UK after the fi nancial term refi nancing operations,” or TL- away from the shadow-banking sector industrial output suggest demand for mand unfair royalties. Yao Wei, chief China economist at So- crisis or in the debt-laden euro area, TROs, off ering funds to banks who lent they’ve struggled to regulate, accord- credit will intensify, according to Ter- Apple has also joined eff orts in ciete Generale SA in Paris, wrote in a the central bank is still responding to a more to companies and households. ing to Pogson at Ernst & Young. ry Sun, an analyst at RHB Securities other countries where Qualcomm recent note. fi nancial system that doesn’t serve all The programme, which allowed banks The reserve-ratio cut appears tai- Hong Kong Ltd. faces probes from antitrust au- “While large enterprises may have comers equally. to borrow based on the size of their lored to off set the eff ects of other Reserve ratio cuts will give banks thorities. Qualcomm in turn has suffi cient cash fl ows to weather the In the UK the BoE introduced Fund- loan book and lowered the interest rate government policies. The clampdown even more of an incentive to divert sued Apple for allegedly using the supply shock, small companies are ing for Lending in 2012, before Mark charged if they increased it, was part of on excessive borrowing and shadow credit to traditional channels, Sun chip maker’s technology without likely to need fi nancial assistance,” she Carney became governor the follow- the central bank’s push to spur growth banking has raised funding costs for said. “We do expect loan demand from paying for it. wrote. “The three-month gap between ing year, allowing banks to borrow and infl ation that ultimately led to banks and squeezed their profi ts. And small enterprises will be strong.” Macquarie trims metals finance business in turn to energy

Reuters and a source familiar with the matter The move comes after other banks with the matter said. Macquarie exits by Deutsche Bank and Barclays. Barrack, left Macquarie in April after Melbourne said. including Australia and New Zealand declined to comment. The bank’s metals business has also more than two decades to join hedge Macquarie combines this Banking Group have retreated from Macquarie’s focus on energy over the slowed after a string of traders and fund Citadel. commodities business with financial the capital intensive metals sector much smaller metals and agriculture executives departed, sources said. Guy Keller, formerly head of base Australia’s Macquarie Group, a rising markets and energy under an overall and as Macquarie focuses on its businesses has come under Nick Six members of the Macquarie metals metals trading for Asia, left in June. commodities bank powerhouse due “Commodities and Global Markets” thriving energy business. O’Kane, who was appointed to team have left this year. Two other traders have left to its turn towards the energy sector, umbrella, which accounted for 21% Banks that finance metal are Macquarie’s executive committee this Matthew Forgham, a director with Macquarie’s Singapore metals desk is paring back its aggressive lending of the bank’s A$2.2bn ($1.7bn) in also reviewing procedures after year. Macquarie in London, will retire from since July. against metals, three sources profit for the year to March 31. a warehousing fraud rocked the O’Kane had previously headed the bank this month, according to Macquarie has begun at least familiar with the matter told Reuters. A source with knowledge of the sector in February, echoing the Macquarie’s energy business. Metal Bulletin. partially to rebuild its team. Macquarie, which this year broke matter said Macquarie saw repo-only 2013 Qingdao scandal that wiped an Macquarie has significantly expanded Forgham did not respond to a It has shifted one trader to Singapore into the top three banks for deals as taking up too much capital estimated $2bn from the industry. its US energy operations in recent LinkedIn request for comment. from Shanghai and moved another to commodities, has trimmed back and holding too much compliance “The recent increase in allegations years to become the largest non- Forgham is the second member of London from another office. its loans against physical metals risk for slim returns, but that the bank of warehouse fraud around the producer marketer of physical gas in the London metals team to leave this The Financial Times reported this inventories, in particular a type of was still offering repos in broader marketplace has understandably had North America. year. week that the bank has also hired finance called repurchase deals or packages of services such as finance them reviewing the risk-return of the ANZ followed a well-worn road out of Macquarie’s Sydney-based head metals and mining analyst Tom Price repos, two Asia-based customers for hedging or offtake. repo business,” the source familiar metals earlier this year, in the wake of of metals and mining, Sebastian from Morgan Stanley. Gulf Times Friday, October 13, 2017 5 BUSINESS

Japan’s wholesale prices rise CEFC to raise $5.1bn from at fastest pace in 9 years VTB for Rosneft purchase Reuters Tokyo Reuters Beijing/Hong Kong Japanese wholesale prices rose in September at the fastest an- nual pace in almost nine years EFC China Energy is set to raise due to rising prices for gasoline, $5.1bn in short-term loans from metals, and agricultural CVTB, Russia’s second-biggest products, but the gains won’t lender, to part fi nance its $9.1bn pur- necessarily boost the country’s chase of a stake in Rosneft Oil, three notoriously weak inflation. people with knowledge of the matter Economists expect con- said. sumer prices to rise only gradu- CEFC last month said it will buy a ally because many Japanese 14.16% stake in the Russian oil major companies prefer to absorb from a consortium, strengthening en- higher input costs rather than ergy ties between Moscow and Beijing. increasing prices, making it It received preliminary Chinese ap- diff icult for the Bank of Japan proval to buy the stake about a week af- (BoJ) to reach its 2% inflation ter the deal was announced. target. The $5.1bn loan agreement would “Prices are rising upstream, help the privately run Chinese con- but companies are very reluc- glomerate to close the Rosneft deal. tant to raise retail prices,” said Two sources said the loan would be Norio Miyagawa, senior econo- for one year, with one saying the tenure mist at Mizuho Securities. could be extended by another year. “If anything, I am worried CEFC will use its own cash for the re- about corporate profit margins. maining $4bn of the purchase price, the It is diff icult for consumer sources said. prices to accelerate when com- CEFC is also in separate talks with panies do not pass on higher China Development Bank (CDB), a pol- costs.” icy bank, to refi nance the short-term Wholesale prices rose 3% in credit from VTB, they said. September from a year earlier, “CDB is very actively engaged in dis- increasing for the ninth straight cussions for the follow-up loans, ready month, BoJ data showed to shoulder 70% or more of the value,” yesterday. said one source involved in the talks. September’s gains marked Other Chinese banks could also pro- the fastest wholesale price vide refi nancing, the source said. growth since October 2008, CEFC and CDB did not immediately excluding the eff ect of a nation- respond to a Reuters request for com- wide sales tax hike in 2014. (The ment. A logo of Rosneft is seen at its off ice in Moscow. CEFC China Energy said it will buy a 14.16% stake in the Russian oil major. BoJ said the sales tax applies VTB’s press offi ce in Moscow de- not only to consumers but also clined to comment. ment that fi ts into Beijing’s Belt and allow China, the world’s second-largest CDB has long supported CEFC and is its “We are still considering and trying to many transactions between The deal is set to win fi nal approval Road initiative, said two of the sources. energy consumer, to boost co-opera- biggest lender, but some Chinese lend- to learn more about CEFC and will be companies.) from the Chinese government, includ- CEFC has grown in recent years from tion with the world’s top oil producer. ers said that they were cautious about very careful given the sanctions,” said The rise in the corporate ing the State Council, or Cabinet, by the a niche oil trader into a sprawling energy Rosneft is run by Igor Sechin, a close taking part in a loan due to western eco- a Beijing-based loan banker involved in goods price index (CGPI), which end of 2017, as it is seen as an invest- conglomerate and the Rosneft stake will ally of Russian President Vladimir Putin. nomic sanctions imposed on Russia. talks for a CDB-led refi nancing group. measures the price that firms charge each other for their goods and services, matched the median economists’ estimate and followed a 2.9% annual increase in August. The BoJ has had to push Mantra rolls out carpet for Accor’s $920mn bid back the timing for reaching its price target six times since it deployed its massive stimulus Reuters its priorities, and it also wants to fo- ‘buy’ rating on Accor, said the programme in 2013. It now Sydney cus on building and acquiring lux- deal fitted Accor’s general strat- hopes consumer inflation will ury, lifestyle and resort hotels. Last egy and increased the likelihood hit its target by March 2020, as year, it expanded by 80,000 rooms, of Accor concluding a sale of its signs of strength in the econo- antra Group Ltd yester- around half through acquisition and so-called ‘Booster’ group of non- my and a tight job market boost day agreed to an A$1.18bn half through organic growth. core assets, which is set to bring in wages and give households M($920mn) buyout from Shares in Sydney-listed Mantra around €4bn. more purchasing power. French hotel company Accor SA, a rose 0.3% to around A$3.88, showing “Australia is one of the largest Nationwide core consumer deal which will create the biggest ho- investor support for the deal but also markets for Accor outside Europe,” prices rose 0.7% year-on-year tel group in Australia where tourism some uncertainty about the possibil- Deutsche said in a research note. in August, which was faster is rising sharply. ity it may meet regulatory hurdles. “This deal would be in line with the than July but still well below the AccorHotels has been on an ac- “It’s within the bounds of fair- Accor strategy to consolidate market 2% inflation the BoJ hopes to quisition spree that, in part, aims to ness, given what the shares have share in markets where the company achieve. support chief executive Sebastien done recently,” said Noel Webster, benefi ts or may benefi t from scale.” The BoJ next meets on Octo- Bazin’s goal of adding businesses a portfolio manager at BT Invest- Gregoire Laverne, fund manager ber 30-31, where it will update is that can complement its core hotel ment Management, Mantra’s largest at Paris-based Roche Brune Asset consumer price forecasts. operations and off er more control of shareholder. Management, said the Mantra deal There is a chance that one hotel distribution. “Our fi rst reaction would be not to would strengthen Accor’s presence policymaker could formally This latest deal would give the block it.” The merger needed clear- in Australia. propose more monetary combined group about 50,000 rooms ance from the Foreign Investment Laverne also said he had sold off stimulus after a summary of – roughly 11% of Australia’s hotel Review Board and antitrust regula- Accor shares in March due to a “lack opinions from the previous market, according to IBISWorld sta- tor the Australian Competition and of visibility” over Accor’s restruc- meeting showed one member tistics. Consumer Commission (ACCC), turing plans. said stronger measures were Accor is off ering A$3.96 per share, Mantra said. Accor shares were down 0.6% in needed. a 23% premium to Mantra’s last The ACCC expected the compa- mid-session trading. Such a proposal is unlikely to trade before the bid was initially an- nies to fi le a “detailed submission” The number of visitors to Australia win over a majority of the BoJ’s nounced on Monday. about the deal shortly, a spokesman surged 9% in the past fi nancial year nine board members, but it could The off er price is more than dou- said. to hit a record 7.9mn while spending spur more public debate about ble Mantra’s A$1.80 issue price when The regulator previously said it by international visitors climbed to whether the BoJ’s policies still it listed in 2014. would review any deal to decide $40.6bn – also a record. make sense after it has repeat- Bazin said in a statement that the whether to open a formal investiga- Mantra Chairman Peter Bush edly revised the length of time takeover would “underpin our long- tion. The transaction would be the said in a statement the company’s needed to reach its price target. term growth in the Asia-Pacifi c re- second-biggest in Australia’s hotel board was recommending the deal to Japanese bank lending rose gion”. Accor, the world’s fi fth largest sector, and the largest buyout of an shareholders, having concluded that 3% in September from a year hotel group with more than 540,000 Australian entity by French interests, the “sale of the company at a signifi - earlier, separate data showed. French hotel company Accor is off ering A$3.96 per share, a 23% premium to Mantra’s rooms worldwide, has made expan- according to Thomson Reuters data. cant premium to market is an attrac- shares, in a bid to create the biggest hotel group in Australia where tourism is rising sharply. sion in the Asia Pacifi c region among Deutsche Bank, which has a tive outcome”.

Beijing’s direct investment in Indonesia’s drive to reduce oil S Korea plunges on restrictions

Bloomberg from China contract 42% to $68.7bn in the Seoul first eight months of this year, according to data from the Ministry of Commerce. imports a boon for producers “China’s policy may continue to restrict China’s direct investment into South Korea investment into South Korea, which needs Reuters Amid depressed oil prices, in- ducers, as well as its drive to reduce they needed and did not push as ag- has dropped drastically as Beijing curbs to be monitored given the close economic Singapore ternational oil companies such as its dependence on imports, “can gressively as they should have.” overseas investment and restricts foreign- ties,” said Chang Jaechul, chief economist ConocoPhillips and Chevron have only force the government to move With oil demand at about 1.2mn currency transfers to maintain its reserves, at KB Investment & Securities Co. reduced their holdings in Indonesia, faster” in implementing more fa- bpd and production at about according to the South Korean government. The drop in investment also comes amid he appeal of Indonesia’s oil a former member of the Organisa- vourable policies and incentives for 800,000 bpd, investors in Indone- Direct investment from mainland China increased tension between Beijing and Seoul and gas sector is improving tion of the Petroleum Exporting operators, said Yeung at the Sum- sia’s oil and gas sector will have a big dropped 63% to $608mn during the first over the deployment in South Korea of the Tfor some independent pro- Countries. mit held at the Reuters offi ce in supply gap to fi ll, said Yeung. three quarters of this year from the same pe- Thaad missile-defence system. South Korean ducers as the resource-rich nation As a result, the country has strug- Singapore. The energy industry is a vital riod last year, according to a statement from companies such as Lotte Shopping Co and scrambles to reduce its dependence gled to attract fresh investment and Indonesia’s crude oil output part of the Indonesian economy, South Korea’s trade ministry. Meanwhile, Hyundai Motor Co are facing diff iculties with on imports and fi ll a gap left by the to develop new fi elds. peaked at around 1.7mn barrels per but its contribution to state rev- investment from the US fell 5.5% while that their operations in China, and restrictions by exit of some producers, the head of The risks that energy investors day (bpd) in the mid-1990s. enue has dropped from around 25% from Japan surged 90% as Japanese compa- Beijing on package tours to South Korea have GSS Energy told Reuters. face in Indonesia are highlighted by But with few signifi cant oil dis- in 2006 to an expected 3.4% this nies sought more opportunities outside their cost the tourism industry billions of dollars. “There could be some assets that recent change to the development coveries in the past 10 years, pro- year, according to data compiled by home market, where they face an ageing The Bank of Korea has previously estimated will be available that three or fi ve plans of the Masela gas fi eld devel- duction has fallen to roughly half consulting fi rm Pricewaterhouse and declining population, the ministry said. that the dispute could cut 0.3 percentage years ago would have been very dif- oped by Japan’s Inpex. that as old fi elds have matured and Coopers. China formally laid down new rules on point from economic growth this year. fi cult to gain access to for a relative- There has also been a long- died. “It’s very clear to me that Indo- overseas investments in August, making ex- KB Investment’s Chang said Thaad may ly small and new player like us,” said standing dispute between France’s “Indonesia is a net importer of nesia’s number one agenda is to plicit its de facto campaign against “irrational” have aff ected the investment but that Sydney Yeung, group chief execu- Total and Indonesia’s government oil not because there’s a lack of re- push its economy forward as fast as acquisitions of assets in industries ranging the main reasons seem to be limits on tive at Singapore-listed GSS Energy over the Mahakam block, the coun- sources,” said Yeung, but because they can but that would be diffi cult from real estate to hotels and entertainment. outbound flows and maintaining foreign- at the Reuters Global Commodity try’s largest gas-producing fi eld. “previous policies that did not en- without greater energy supply,” said This has seen outbound investment globally currency reserves. Summit. The recent departure of the pro- courage or anticipate the demand Sydney. Gulf Times 6 Friday, October 13, 2017 BUSINESS

Franklin likes AngloGold as miners seen better than bullion

Bloomberg valuations relative to historical levels,” Global Senior Gold Valuation Peer Group While Franklin Templeton doesn’t have as the odds of a US interest rate hike low-cost operations that help to ensure Singapore said Stephen Land at the $1.37bn Franklin of 15 mining stocks has jumped more than a specific gold target, the path of infla- in December increased, and the dollar that companies can navigate the cyclical Gold and Precious Metals Fund in Cali- 90% from a low near the end of 2015, tion relative to interest rates will be key. strengthened. AngloGold climbed as moves in the gold price, he said. fornia. In addition, they’re “trading below while bullion is up less than 25%. If the Federal Reserve is seen “moving much as 1.2% to 128.70 rand in Johan- Citigroup Inc advises investors to AngloGold Ashanti Ltd and Alamos previous levels when gold was trading” “We believe that many miners are proactively ahead of inflation, while still nesburg yesterday, before trading at 128 choose physical gold over stocks because Gold Inc are mining stocks that are where it is now, he said in an October attractively valued in the current envi- able to support growth, this will weigh rand. Alamos closed at C$8.92 in Toronto the former has outperformed gold equity attractively valued at current levels, 6 e-mail responding to questions from ronment, trading at multiples and net on the gold price,” Land said. If the Fed is on Wednesday, for a loss of 10% in the indexes historically. There are some according to a portfolio manager at Bloomberg News. asset values below historical averages,” “seen to be moving behind inflation, this past year. “nuggets in the mud,” the bank said, with Franklin Templeton Investments, who Gold equity funds display higher said Land, who’s been covering gold could be positive for gold even if rates are The fund’s top two allocations were to Northern Star Resources Ltd, Randgold says he won’t be surprised to see gold volatility than physical gold, and off er an companies for almost 20 years. While the moving up.” B2Gold Corp and Newcrest Mining Ltd Resources Ltd and Evolution Mining Ltd mining equities climb 30% or more if investor similar diversification benefits price of bullion is up 3% from a year ago, Bullion jumped to $1,357.61 an ounce as of September 30, with AngloGold and having the best chance of beating gold bullion gains 10%. with a smaller allocation of funds, accord- AngloGold shares have slumped 28% in in September, the highest in more than Alamos coming in the top five. In general, over three, five and 10 years, said analysts Both stocks “are trading at attractive ing to Land. The Bloomberg Intelligence US dollar terms. a year, but has since declined to $1,296 the fund has a bias toward long-life, led by Johann Steyn.

Asian markets mostly climb as Catalan China crude oil buying relief supports euro

AFP lieve that the tax reforms and Hong Kong planned infrastructure spend are going to be the biggest spree to continue: IEA catalysts for infl ation and jobs sian markets mostly rose growth in the US.” Reuters is half that of China. “Our calculations are around 1.47bn barrels, 70% larger and 1bn barrels, although it was not clear again yesterday, boosted On foreign exchanges the London imply that the country’s import cover than China’s, but with demand only 15% whether underground sites were includ- Aby another record per- euro built on gains after Cata- stands at about 90 days, while total de- higher. ed. “If we use the upper limit of the range formance on Wall Street with lan leader Carles Puigdemont mand cover is about 60 days,” the agency China’s eff orts to beef up its strategic of Chinese storage capacity estimates, confi dence high heading into adopted a more conciliatory hina has built its crude oil stock- added. reserves of crude have accounted for a some 150mn barrels could still be avail- the earnings season. tone in a speech on independ- piles at a record pace in 2017 and Chinese oil stocks are opaque and data signifi cant amount of demand for Atlan- able,” the IEA said. The euro also managed to ence. Cwhile its purchases could tail off on them has been hard to come by or un- tic Basin oil, which hit record highs this “If fi lling continues at a rate similar to hold its gains against the green- The unit was at $1.1873 yes- towards the year-end, inventories could reliable. year. 2017’s year-to-date average, it would take back as hopes for a resolution terday, up from the low $1.17 hit the billion-barrel mark in six months, Using fi gures from China’s National In the fourth quarter of this year, the another six months to reach full capacity. to the Catalan crisis in Spain mark seen last week, though the International Energy Agency said. Bureau of Statistics, along with cargo IEA said it does not forecast any Chinese Thus, the sharp slowdown seen in trump expectations the Federal well off the $1.2033 enjoyed in China has spent around $24bn on tracking, refi nery throughput and crude stockbuilding as demand should remain August-September may yet prove tem- Reserve will hike interest rates September. building its crude reserves since 2015, at output, the IEA crunched the numbers. strong, although consumption is ex- porary.” The agency estimates that over for a third time this year in De- Later, Spanish Prime Minister an average of $50 a barrel, and now holds “China has played a major role in glo- pected to slow in 2018. “Looking at 2017 the fi rst half of 2017, Chinese stockbuild- cember. Mariano Rajoy gave him until around 850mn barrels of oil in inventory. bal crude oil markets by helping to clear as a whole, we expect Chinese oil demand ing hit a record 1mn bpd, although that While US-North Korea ten- next week to clarify whether While China’s spending on “excess” most of the excess seen in the last two to growth to accelerate to 540,000 bpd from halved in the third quarter of this year. sions rumble on in the back- he intends to push ahead with crude is tiny, given its $680bn current ac- three years, which puts an even greater 310,000 bpd in 2016, supported by the The agency said that using the most ground, trading fl oors remain a breakaway, warning Madrid count surplus since early 2015, its inven- importance on understanding better, but strength in the fi rst half of 2017. recent data and adding implied crude positive following a series of would suspend the region’s au- tories are now equal to those of Japan and also scrutinising the Chinese data,” the For 2018, we expect growth to slow to oil balances since January 2015, China upbeat readings across global tonomy. South Korea together, the Paris-based IEA said in its monthly oil market report. 325,000 bpd,” the IEA said. had a cumulative crude oil stock hold- economies that have helped eq- “The market appears to have IEA said. The IEA said that in Europe’s richest The IEA said various sources put Chi- ing of about 700mn barrels at the end of uities hit multi-year highs. welcomed the decision... to Those countries’ combined demand nations, total commercial oil inventories na’s storage capacity at between 800mn September. In New York all three main give Carles Puigdemont, the indexes chalked up yet more president of the government of records following strong corpo- Catalonia, fi ve days to clarify rate reports, while analysts said whether he has declared inde- the mood was also improved pendence from Spain or not,” by the small number of fi rms Rodrigo Catril, FX Strategist at warning they expected a nega- National Australia Bank, said in tive impact from hurricanes a commentary. Harvey, Irma and Maria. However, Stephen Innes, The gains in New York pro- head of Asia-Pacifi c trading at vided a solid platform for Asian OANDA, warned that he still traders. Tokyo’s Nikkei closed saw the single currency’s gains up 0.4% to a fresh 21-year high, “as more of a relief rally as EU while Sydney added 0.4% and risk has tentatively settled”. Hong Kong was 0.2% higher in The dollar was also being the afternoon. dragged following the release Singapore was up 0.7%. of minutes from the Fed’s most Seoul gained 0.7%, with Wel- recent board meeting, which lington, Taipei, Manila and Ja- suggested policymakers edging karta also well up. towards another rate hike but However, Shanghai fi nished some expressing concern at still down 0.1%. weak infl ation. Shane Chanel, equities and Dealers are also keeping tabs derivatives adviser at ASR on the race to take over as the Wealth Advisers, said the recent head of the Fed when Janet passage of a US budget bill had Yellen’s term ends early next left him confi dent that Donald year. Of the two front-runners Trump would be able to push according to analysts one is a through key tax and spending fi scal hawk while the other is plans, which would give a fur- more pragmatic, which will ther lift to markets. have a huge bearing on future “The question is not if, but direction of the central bank’s A Petrochina’s refinery in Guangxi province. China has spent around $24bn on building its crude reserves since 2015, at an average of $50 a barrel, and now holds around when,” he said in a note.”I be- policy. 850mn barrels of oil in inventory.

India’s Sensex rises Emerging stocks at new 6-year high 1.1%; rupee advances Reuters markets sell-off over the last London two weeks, so there is a bit of a consolidation,” Tresca Bloomberg In the past year, the index had a added. Mumbai similar or greater gain eight times and retreating dollar, solid Adding to the chipper continued to rise the next day by an commodity prices and mood, copper prices touched average 0.2%. It advanced five times A new record highs for their strongest in four weeks, The S&P BSE Sensex Index rose 1.1% to for an average 0.4% and declined three world stocks helped extend while oil – a touch softer on 32,196.69. The move was the biggest since times for an average 0.13%. the rally in emerging markets the day – rose in the previous rising 1.5% on May 25 and follows the pre- Today, 28 of 31 shares rose, while yesterday, with stocks at new three sessions. vious session’s decrease of 0.3%. The MSCI 3 fell. The Sensex is up 21% so far this six-year highs and curren- South Africa’s rand gained Asia Pacific Index advanced 0.4%. year. The index is 25% above its 52- cies firming almost across the 0.4% to its strongest level in HDFC Bank Ltd contributed the most week low of 25,717.93 reached on No- board 13 days, and was on track for to the advance, rising 1.4%. Reliance vember 21 and 1.5% below its 52-week MSCI’s emerging equity its best week since July. Industries Ltd increased 4%, the big- high of 32,686.48 on August 2. index, which has gained 30% Turkey’s lira and Russia’s gest gain. Bharti Airtel Ltd fell 0.8%, The Indian rupee appreciated 0.12% since the start of 2017, sailed rouble both matched the the biggest loss. The biggest movers to 65.06 against the US dollar. Credit 0.5% higher to its strongest gains. also included: Tata Consultancy, up default swaps were unchanged at 71.14. level since August 2011 after Mexico’s peso traded flat, 1.9%; Kotak Mahindra, up 1.6%; and Coal Benchmark 10-year bond yields rose Asian markets took a cue from however, with investors India, down 0.3%. 0.6 basis points to 6.746%. Wall Street’s record close to nervous as the United States, hit a near 10-year high. Canada and Mexico kicked The greenback hit a two- off the fourth round of talks week low after the minutes about the future of the North of the latest US central bank American Free Trade Agree- meeting revealed policy- ment (Nafta) on Wednesday. makers’ concern over per- The peso has firmed more sistently low inflation and than 10% this year. raised doubts about an in- US President Donald terest rate hike expected in Trump said he would be open December. to bilateral trade deals with “The Fed minutes seem to Canada and Mexico if Nafta have been taken as more do- talks between the three coun- vish than expected and that tries fall apart. is positive for emerging mar- “There are only negative kets,” Crédit Agricole’s senior signs (from the Nafta talks). emerging market strategist Discussions look difficult so Guillaume Tresca, said. it could cap the peso’s appre- Currencies shrugged off ciation,” said Tresca. the weakness they suffered He added that a collapse in recent weeks, with JP- of the talks would be nega- Morgan’s ELMI Plus index, a tive but the current environ- proxy for emerging curren- ment of low interest rates and cies, on track for weekly gains strong sentiment towards Traders at the Bombay Stock Exchange. The Sensex rose 1.1% to 32,196.69 after four weeks of losses. emerging markets could sof- points yesterday. “We saw a good emerging ten the blow. Gulf Times Friday, October 13, 2017 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 6.58 0.46 688,470 Boubyan Intl Industries Hold 44.50 0.00 55,010 Areej Vegetable Oils Saoc 0.00 0.00 - Solidarity Saudi Takaful Co 18.88 0.75 175,856 Gulf Investment House Ksc 24.80 3.33 100,824 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 24.10 0.08 1,491,514 Boubyan Bank K.S.C 450.00 -0.22 302,303 Al-Omaniya Financial Service 0.28 0.00 - Alabdullatif Industrial Inv 13.74 1.93 71,217 Ahli United Bank B.S.C 210.00 2.44 4,711,325 Al-Hassan Engineering Co 0.05 0.00 - Saudi Printing & Packaging C 19.19 -0.93 2,457,572 Osos Holding Group Co 102.00 0.00 29,999 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.13 0.00 - Saudi Paper Manufacturing Co 7.75 2.38 870,468 Qurain Petrochemical Industr 332.00 -0.90 205,316 Al Suwadi Power 0.14 0.00 - Alinma Bank 17.40 1.81 27,436,407 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 0.00 0.00 - Almarai Co 55.01 3.25 559,533 Ekttitab Holding Co Sak 34.20 0.88 239,464 Al Sharqiya Invest Holding 0.11 0.93 270,982 Falcom Saudi Equity Etf 27.60 -1.08 224,018 Kout Food Group Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.16 0.00 - QATAR United International Transpo 24.90 4.97 510,992 Real Estate Trade Centers Co 37.80 -0.26 3,000 Al Maha Ceramics Co Saoc 0.29 0.00 1,800 Hsbc Amanah Saudi 20 Etf 29.50 0.00 10 Acico Industries Co Kscc 265.00 0.00 118,260 Al Madina Takaful Co Saoc 0.10 -0.99 828,000 Company Name Lt Price % Chg Volume Saudi International Petroche 14.97 0.81 775,619 Kipco Asset Management Co 77.50 0.00 8,000 Al Madina Investment Co 0.06 0.00 26,800 Falcom Petrochemical Etf 26.70 0.00 4 National Petroleum Services 820.00 0.00 7,936 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 71.00 -5.33 5,341 Walaa Cooperative Insurance 27.68 0.14 459,894 Alimtiaz Investment Co Kscc 170.00 1.80 6,659,295 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 61.99 -0.82 108,151 Bank Al-Jazira 11.63 1.22 5,276,186 Ras Al Khaimah White Cement 81.00 0.00 75,000 Al Jazeera Steel Products Co 0.26 -2.62 16,820 Vodafone Qatar 7.81 -1.01 372,745 Al Rajhi Bank 63.64 0.73 40,254,181 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Jazeera Services 0.15 0.00 4,000 United Development Co 13.95 -1.06 157,938 Samba Financial Group 22.99 1.19 518,144 Kuwait & Gulf Link Transport 60.00 -1.64 532,269 Al Izz Islamic Bank 0.07 -1.45 785,891 Salam International Investme 8.15 1.88 162,169 United Electronics Co 45.88 6.85 331,951 Human Soft Holding Co Ksc 4,050.00 -2.41 117,180 Al Buraimi Hotel 0.88 0.00 - Qatar & Oman Investment Co 7.83 0.13 5,325 Allied Cooperative Insurance 17.72 1.90 318,707 Automated Systems Co Kscc 165.00 0.00 23,501 Al Batinah Power 0.14 0.00 - Qatar Navigation 55.00 0.36 76,671 Malath Insurance 13.68 0.51 1,583,815 Metal & Recycling Co 109.00 0.00 31,100 Al Batinah Hotels 1.13 0.00 - Qatar National Cement Co 64.30 -1.06 3,823 Alinma Tokio Marine 21.76 -1.45 139,740 Gulf Franchising Holding Co 71.00 1.43 1,100 Al Batinah Dev & Inv 0.09 0.00 - Qatar National Bank 122.50 0.57 476,561 Arabian Shield Cooperative 39.43 1.91 42,897 Al-Enma’a Real Estate Co 38.80 -0.26 20,700 Al Anwar Holdings Saog 0.14 0.70 136,273 Qatar Islamic Insurance 52.99 1.90 52,000 Savola 41.03 0.10 1,026,999 National Mobile Telecommuni 1,198.00 -0.08 2,225 Ahli Bank 0.17 0.00 25,000 Qatar Industrial Manufactur 41.81 -1.55 1,019 Wafrah For Industry And Deve 20.38 1.44 190,428 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.79 0.00 - Qatar International Islamic 51.00 0.24 139,976 Fitaihi Holding Group 13.19 1.85 121,394 Housing Finance Co Sak 0.00 0.00 - Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 33.95 -3.00 34,091 Tourism Enterprise Co/ Shams 28.04 1.96 116,811 Al Salam Group Holding Co 44.80 0.00 65,000 A’saff a Foods Saog 0.59 0.00 - Qatar Islamic Bank 94.80 0.64 102,689 Sahara Petrochemical Co 13.42 0.07 1,451,057 United Foodstuff Industries 0.00 0.00 - Oman Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 15.60 -0.64 353,217 Herfy Food Services Co 50.32 0.76 60,285 Al Aman Investment Company 56.00 0.00 54,554 Qatar General Insurance & Re 39.49 5.87 4,296 Mashaer Holding Co Ksc 78.60 0.00 60,001 Qatar German Co For Medical 7.40 -2.63 753 Manazel Holding 39.00 2.63 1,131,466 Qatar Fuel Qsc 99.84 0.75 2,743 Mushrif Trading & Contractin 0.00 0.00 - Qatar First Bank 6.55 -0.15 1,000,739 KUWAIT Tijara And Real Estate Inves 59.50 0.00 301,334 Qatar Electricity & Water Co 180.90 0.50 40,143 Kuwait Building Materials 0.00 0.00 - Qatar Cinema & Film Distrib 25.00 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 580.00 0.17 1,716 Qatar Insurance Co 50.00 0.00 337,447 Commercial Real Estate Co 96.90 3.09 351,720 Ooredoo Qsc 85.72 0.57 43,338 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 11.25 -0.18 77,818 Sultan Center Food Products 0.00 0.00 - National International Co 73.50 0.68 5,400 Mazaya Qatar Real Estate Dev 9.07 0.67 190,163 Kuwait Foundry Co Sak 290.00 0.00 6,846 Taameer Real Estate Invest C 34.60 2.98 69,900 UAE Mesaieed Petrochemical Holdi 12.92 -0.08 18,086 Kuwait Financial Centre Sak 101.00 0.00 53,300 Gulf Cement Co 83.50 0.00 6,300 Company Name Al Meera Consumer Goods Co 143.40 0.00 13,575 Ajial Real Estate Entmt 168.00 0.00 10,000 Heavy Engineering And Ship B 213.00 -1.84 63,720 Lt Price % Chg Volume Medicare Group 70.00 -1.13 1,936 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 61.50 0.00 - Kuwait Finance & Investment 47.90 1.91 77,000 National Real Estate Co 131.00 -0.76 4,001 Waha Capital Pjsc 1.75 0.00 304,622 Masraf Al Rayan 36.20 -0.14 268,153 National Industries Co Ksc 185.00 0.00 17,807 Al Safat Energy Holding Comp 38.00 -2.56 297,032 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 11.90 3.30 17,527 Kuwait Real Estate Holding C 37.00 0.00 650 Kuwait National Cinema Co 1,200.00 0.00 2,267 United Arab Bank Pjsc 1.90 0.00 47,000 Industries Qatar 97.87 -0.03 59,056 Securities House/The 57.00 -1.55 2,081,146 Danah Alsafat Foodstuff Co 69.70 0.14 170,000 Union National Bank/Abu Dhab 4.25 0.00 - Islamic Holding Group 39.00 -1.76 61,756 Boubyan Petrochemicals Co 670.00 0.00 1,723,461 Independent Petroleum Group 400.00 9.59 122,381 Union Insurance Co 1.85 0.00 - Investment Holding Group 7.33 -0.14 633,907 Al Ahli Bank Of Kuwait 311.00 0.00 128,977 Kuwait Real Estate Co Ksc 62.60 0.97 591,212 Union Cement Co 1.28 0.00 - Gulf Warehousing Company 44.00 -0.95 1,698 Ahli United Bank (Almutahed) 414.00 -0.24 23,232 Salhia Real Estate Co Ksc 360.00 0.00 200 Umm Al Qaiwain Cement Indust 1.15 0.00 - Gulf International Services 18.98 1.50 300,392 National Bank Of Kuwait 786.00 0.51 969,013 Gulf Cable & Electrical Ind 480.00 -4.19 165,690 Sharjah Islamic Bank 1.39 -0.71 713,966 Ezdan Holding Group 9.40 0.00 1,029,259 Commercial Bank Of Kuwait 400.00 0.00 2 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 - Doha Insurance Co 15.00 0.13 3,906 Kuwait International Bank 255.00 -0.39 137,995 Kuwait Finance House 597.00 -0.17 2,295,025 Sharjah Group 1.05 0.00 - Doha Bank Qpsc 28.97 3.13 101,968 Gulf Bank 255.00 0.79 436,150 Gulf North Africa Holding Co 38.60 0.00 1,660,000 Sharjah Cement & Indus Devel 1.10 0.00 - Dlala Holding 17.00 0.06 329,964 Al-Massaleh Real Estate Co 39.00 -1.27 250 Hilal Cement Co 190.00 0.00 6,606 Ras Al-Khaimah National Insu 3.69 0.00 - Commercial Bank Pqsc 27.94 -1.76 136,757 Al Arabiya Real Estate Co 37.40 1.08 1,226,500 Osoul Investment Kscc 62.80 0.00 20,000 Ras Al Khaimah White Cement 1.12 14.29 20,000 Barwa Real Estate Co 31.48 -0.22 332,481 Kuwait Remal Real Estate Co 69.00 7.81 1,000 Gulf Insurance Group Ksc 800.00 0.00 2 Ras Al Khaimah Ceramics 2.40 -0.83 27,648 Al Khaleej Takaful Group 13.80 5.99 20,361 Alkout Industrial Projects C 610.00 0.00 2,184 Kuwait Food Co (Americana) 1,980.00 0.00 1 Ras Al Khaimah Cement Co Psc 0.77 -1.28 2,027 Aamal Co 8.02 -1.60 51,006 A’ayan Real Estate Co Sak 83.30 0.12 138,500 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.33 0.00 - Investors Holding Group Co.K 20.50 1.49 4,261,150 Aayan Leasing & Investment 44.60 0.90 628,607 Rak Properties 0.73 1.39 4,578,939 Al-Mazaya Holding Co 114.00 0.00 1,080,550 Ooredoo Qsc 80.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 26.50 -0.38 1,055,300 Oman & Emirates Inv(Emir)50% 0.53 0.00 - Gulf Petroleum Investment 33.60 -0.59 455,313 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 804.00 1.01 231,911 OMAN 0.48 - City Group 0.00 0.00 - National Marine Dredging Co 3.60 -10.00 10,801 National Investor Co/The 0.51 0.00 - United Wire Factories Compan 17.68 0.63 259,357 Inovest Co Bsc 112.00 0.00 41,428 Company Name Lt Price % Chg Volume Etihad Etisalat Co 15.14 -0.07 1,456,837 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 2.14 0.00 - Dar Al Arkan Real Estate Dev 6.45 1.42 10,071,334 Al-Deera Holding Co 32.60 0.00 24,090 Voltamp Energy Saog 0.57 -2.07 458,399 National Bank Of Umm Al Qaiw 2.85 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 4.95 4.65 320,574 Rabigh Refining And Petroche 12.98 0.78 1,540,124 Mena Real Estate Co 0.00 0.00 - United Power Co Saog 3.55 0.00 - National Bank Of Fujairah 4.00 0.00 - Banque Saudi Fransi 26.86 3.39 1,776,787 National Slaughter House 0.00 0.00 - United Finance Co 0.14 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 21.18 1.68 602,751 Amar Finance & Leasing Co 49.00 0.00 10,000 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.87 6.10 14,255,709 Mediterranean & Gulf Insuran 28.83 -0.93 68,641 United Projects For Aviation 620.00 0.81 1,000 Takaful Oman 0.17 0.00 - Manazel Real Estate Pjsc 0.57 0.00 8,777,591 Saudi British Bank 25.96 0.78 288,202 National Consumer Holding Co 0.00 0.00 - Taageer Finance 0.11 0.00 1,330 Invest Bank 2.40 0.00 - Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 37.10 -2.37 34,794 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 1.46 -3.31 6,322,530 Red Sea International Co 18.65 -0.16 147,222 Jeeran Holdings 0.00 0.00 - Sohar Power Co 0.16 0.00 - Insurance House 0.86 0.00 - Takween Advanced Industries 10.70 0.85 303,393 Equipment Holding Co K.S.C.C 42.50 1.19 183,070 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Ind Psc 2.30 4.55 3,493 Sabb Takaful 25.44 3.20 173,933 Nafais Holding 500.00 9.65 32,003 Smn Power Holding Saog 0.69 0.00 - Gulf Medical Projects 2.20 0.00 - Saudi Arabian Fertilizer Co 59.65 -0.50 204,068 Safwan Trading & Contracting 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 1.07 9.18 373,045 National Gypsum 11.88 0.68 79,294 Arkan Al Kuwait Real Estate 84.90 1.07 1,000 Shell Oman Marketing 1.88 0.00 - Fujairah Cement Industries 0.96 0.00 - Saudi Ceramic Co 24.89 1.18 45,023 Gfh Financial Group Bsc 131.00 0.00 174,340 Sharqiyah Desalination Co Sa 3.96 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 32.00 1.17 64,677 Energy House Holding Co Kscp 36.90 -2.12 650 Sembcorp Salalah Power & Wat 0.22 0.00 76,520 Foodco Holding Pjsc 4.70 0.00 - Saudi Pharmaceutical Industr 30.29 0.93 194,803 Kuwait Slaughter House Co 0.00 0.00 - Salalah Port Services 0.60 0.00 - First Gulf Bank 0.00 0.00 - Thimar 32.56 1.24 241,910 Kuwait Co For Process Plant 155.00 0.00 30,000 Salalah Mills Co 1.33 0.00 435 Finance House 1.60 0.00 - National Industrialization C 14.88 1.09 715,896 Al Maidan Dental Clinic Co K 1,220.00 0.00 9,800 Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.78 0.00 5,038,891 Saudi Transport And Investme 0.00 0.00 - National Shooting Company 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 18.05 0.28 1,479,409 Saudi Electricity Co 23.09 0.87 1,721,602 Al-Themar Real International 100.00 0.00 1,445,025 Renaissance Services Saog 0.19 -2.55 725,793 Emirates Insurance Co. (Psc) 6.00 0.00 - Saudi Arabia Refineries Co 31.05 -1.21 777,082 Al-Ahleia Insurance Co Sakp 420.00 0.00 30,000 Raysut Cement Co 0.90 -0.88 20,000 Emirates Driving Company 7.75 0.00 - Arriyadh Development Company 17.79 1.14 193,099 Wethaq Takaful Insurance Co 44.00 -1.12 2,500 Port Service Corporation 0.20 -1.01 25,000 Dana Gas 0.79 -2.47 18,671,800 Al-Baha Development & Invest 25.18 0.84 396,400 Salbookh Trading Co Kscp 62.00 0.00 70,002 Phoenix Power Co Saoc 0.13 0.00 900,602 Commercial Bank Internationa 0.82 0.00 - Saudi Research And Marketing 66.53 0.45 156,060 Aqar Real Estate Investments 67.00 0.00 2,000 Packaging Co Ltd 2.21 0.00 - Bank Of Sharjah 1.24 -0.80 573,796 Aldrees Petroleum And Transp 28.64 -2.85 327,971 Hayat Communications 0.00 0.00 - Ooredoo 0.50 0.00 57,000 Axa Green Crescent Insurance 0.61 12.96 241,382 Saudi Vitrified Clay Pipe Co 47.73 0.36 37,487 Kuwait Packing Materials Mfg 0.00 0.00 - Ominvest 0.46 0.00 - Arkan Building Materials Co 0.69 -5.48 2,467,119 Jarir Marketing Co 149.03 2.08 50,891 Soor Fuel Marketing Co Ksc 118.00 -0.84 49,501 Oman United Insurance Co 0.34 0.00 - Alkhaleej Investment 3.70 0.00 - Arab National Bank 23.28 3.28 165,545 Alargan International Real 134.00 0.00 5,000 Oman Textile Holding Co Saog 0.00 0.00 - Aldar Properties Pjsc 2.43 1.25 8,946,714 Yanbu National Petrochemical 57.48 0.74 155,077 Burgan Co For Well Drilling 82.90 0.00 1,100 Oman Telecommunications Co 1.33 -1.48 30,593 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 33.47 1.12 79,554 Kuwait Resorts Co Kscc 83.00 0.00 133 Oman Refreshment Co 1.89 0.00 - Al Khazna Insurance Co 0.27 0.00 4,653,180 Middle East Specialized Cabl 8.42 0.48 499,540 Oula Fuel Marketing Co 118.00 0.00 18,414 Oman Packaging 0.28 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 19.45 1.62 327,368 Palms Agro Production Co 75.00 0.00 1 Oman Orix Leasing Co. 0.17 0.00 - Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 24.43 -2.28 824,241 Ikarus Petroleum Industries 0.00 0.00 - Oman Oil Marketing Company 1.66 0.00 - Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 21.01 1.40 392,061 Mubarrad Transport Co 72.30 -0.96 67,000 Oman National Engineering An 0.21 1.42 25,000 Al Ain Ahlia Ins. Co. 42.00 0.00 - Arabia Insurance Cooperative 16.03 0.25 368,500 Al Mowasat Health Care Co 400.00 0.00 33,988 Oman Investment & Finance 0.15 0.00 102,320 Agthia Group Pjsc 5.30 1.92 354,750 Saudi Chemical Company 31.95 -0.53 115,565 Shuaiba Industrial Co 280.00 0.00 10,000 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.37 0.00 - Fawaz Abdulaziz Alhokair & C 40.80 1.80 112,244 Aan Digital Services Co 0.00 0.00 - Oman Hotels & Tourism Co 0.44 0.00 - Abu Dhabi Natl Co For Buildi 0.43 -4.44 171,282 Bupa Arabia For Cooperative 114.83 0.58 48,000 First Takaful Insurance Co 65.00 8.15 48,703 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 4.95 0.00 - Wafa Insurance 21.97 -0.50 451,270 Kuwaiti Syrian Holding Co 36.00 0.28 1,376 Oman Flour Mills 0.89 0.91 15,000 Abu Dhabi National Insurance 4.00 0.00 - Jabal Omar Development Co 64.91 0.03 316,996 National Cleaning Company 49.00 -4.85 10,000 Oman Fisheries Co 0.11 0.93 3,977,364 Abu Dhabi National Hotels 2.65 0.00 - Saudi Basic Industries Corp 98.74 0.62 4,908,763 Eyas For High & Technical Ed 540.00 0.00 19,490 Oman Fiber Optics 0.00 0.00 - Abu Dhabi National Energy Co 0.68 -2.86 666,447 Saudi Kayan Petrochemical Co 8.46 1.32 3,610,700 United Real Estate Company 95.00 0.00 290 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.82 -0.26 1,104,566 Etihad Atheeb Telecommunicat 6.71 3.07 951,586 Agility 840.00 1.20 459,774 Oman Education & Training In 0.15 0.00 - Co For Cooperative Insurance 102.97 3.05 117,349 Kuwait & Middle East Fin Inv 26.50 -5.36 12,650 Oman Chromite 3.64 0.00 - National Petrochemical Co 17.33 0.99 107,811 Fujairah Cement Industries 75.90 2.71 722,300 Oman Chlorine 0.49 0.00 - BAHRAIN Gulf Union Cooperative Insur 17.16 0.82 201,117 Livestock Transport & Tradng 260.00 -1.89 750 Oman Ceramic Company 0.42 0.00 - Gulf General Cooperative Ins 17.99 -0.39 353,955 International Resorts Co 32.00 -1.54 150,000 Oman Cement Co 0.42 0.97 136,000 Basic Chemical Industries 19.88 1.33 66,857 National Industries Grp Hold 155.00 -1.90 2,168,000 Oman Cables Industry 1.40 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 1.25 Marine Services Co Ksc 0.00 16.20 105,191 0.00 - Oman Agricultural Dev 0.00 0.00 - Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance -1.41 Warba Insurance Co 0.00 29.98 913,195 0.00 - Oman & Emirates Inv(Om)50% 0.08 0.00 278,800 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 1.31 Kuwait United Poultry Co 0.00 160.00 6,045 0.00 - Natl Aluminium Products 0.17 -2.30 10,000 United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 1.17 First Dubai Real Estate Deve -0.42 45.12 27,328 47.80 14,950 National Securities 0.04 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah 0.52 Al Arabi Group Holding Co 1.14 21.41 137,415 89.00 95,560 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.29 0.00 32,682 Yamama Cement Co -0.49 Kuwait Hotels Sak 0.00 16.15 116,655 0.00 - National Pharmaceutical 0.11 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 2.65 Mobile Telecommunications Co -0.78 18.99 229,319 509.00 5,046,752 National Mineral Water 0.05 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.74 Al Safat Real Estate Co 0.00 25.79 31,753 0.00 - National Hospitality Institu 0.00 0.00 - Seef Properties 0.22 -1.75 142,083 Alujain Corporation (Alco) 0.00 Tamdeen Real Estate Co Ksc 0.00 22.05 - 402.00 949 National Gas Co 0.27 -0.72 10,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 1.19 Al Mudon Intl Real Estate Co 4.97 12.75 669,615 38.00 123,263 National Finance Co 0.14 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 0.30 Kuwait Cement Co Ksc -0.23 13.48 250,624 441.00 12,250 National Detergent Co Saog 0.65 -5.23 8,250 National Bank Of Bahrain Bsc 0.65 0.00 7,400 Qassim Cement/The 0.62 Sharjah Cement & Indus Devel -0.12 40.30 16,823 83.00 50,000 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.13 0.00 51,100 Saudi Advanced Industries 0.17 Kuwait Portland Cement Co 0.00 11.94 307,658 990.00 20,000 National Bank Of Oman Saog 0.20 0.50 253,929 Khaleeji Commercial Bank 0.11 -2.78 118,168 Kingdom Holding Co 0.70 Educational Holding Group 0.32 10.14 87,896 309.00 6,161,338 Muscat Thread Mills Co 0.08 0.00 - Ithmaar Holding Bsc 0.13 0.00 300,000 Saudi Arabian Amiantit Co 5.54 Bahrain Kuwait Insurance 0.00 6.67 2,688,879 0.00 - Muscat National Holding 0.86 0.00 - Investcorp Bank -$Us 8.25 0.00 378,800 Al Jouf Agriculture Developm -0.82 Asiya Capital Investments Co 0.78 26.48 91,843 38.80 300,333 Muscat Gases Company Saog 0.56 0.00 - Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development 1.64 Kuwait Investment Co -2.61 9.32 900,438 112.00 338,398 Muscat Finance 0.11 0.00 23,500 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank -0.84 0.00 - 354.00 411,734 Majan Glass Company 0.18 0.00 - Gulf Hotel Group B.S.C 0.52 0.00 10,000 Riyad Bank 0.73 Kuwait Projects Co Holdings 0.57 10.98 2,482,451 352.00 171,900 Majan College 0.46 0.00 - Gfh Financial Group Bsc 0.43 -2.27 1,519,000 The National Agriculture Dev 1.32 Al Madina For Finance And In 0.00 31.46 576,013 45.00 200 Hsbc Bank Oman 0.12 0.00 100,000 Esterad Investment Co B.S.C. 0.11 0.00 30,000 Halwani Bros Co -1.20 Kuwait Insurance Co 0.00 47.03 19,588 271.00 20,000 Hotels Management Co Interna 1.25 0.00 - Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 0.66 Al Masaken Intl Real Estate 0.00 12.12 214,203 79.00 1,877 Gulf Stone 0.12 0.00 - Bmmi Bsc 0.77 0.00 2,000 Eastern Province Cement Co 2.12 Intl Financial Advisors 0.00 23.10 10,599 37.80 142,005 Gulf Plastic Industries Co 0.00 0.00 - Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -0.85 0.00 - 46.40 495,665 Gulf Mushroom Company 0.31 0.00 - Bbk Bsc 0.40 0.00 50,000 Filing & Packing Materials M 0.85 Al Mal In -2.73 33.31 55,114 vestment Company 32.10 396,594 Gulf Investments Services 0.08 -1.27 85,000 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 1.27 10.81 - Bayan Investment Co Kscc 47.70 275,348 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Banader Hotels Co 0.06 0.00 300,500 Tihama Advertising & Public 1.37 -2.08 42.04 300,231 Egypt Kuwait Holding Co Sae 235.00 762,010 Gulf International Chemicals 0.21 0.00 - Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.72 -2.01 13.93 169,127 Coast Investment Development 43.90 835,200 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Telecom Co 0.20 0.00 24,000 Astra Industrial Group 2.10 -1.72 16.51 314,452 Privatization Holding Compan 57.00 1,805,123 Global Fin Investment 0.16 0.00 - Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co 0.87 0.00 13.96 381,466 Kuwait Medical Services Co 0.00 - Galfar Engineering&Contract 0.08 1.23 2,186,160 Bahrain National Holding 0.00 0.00 - Taiba Holding Co 0.69 0.00 39.47 19,346 Injazzat Real State Company 87.00 1,000 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co 2.06 0.00 28.70 118,895 Kuwait Cable Vision Sak 25.30 23,264 Financial Services Co. 0.13 0.00 - Bahrain Islamic Bank 0.15 0.00 14,000 Saudi Real Estate Co 0.63 0.00 19.26 75,550 Sanam Real Estate Co Kscc 35.10 6,500 Financial Corp/The 0.10 0.00 - Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 1.05 1.02 123.00 10,250 Ithmaar Holding Bsc 39.80 720,100 Dhofar University 0.00 0.00 - Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The 0.74 -1.32 29.97 531,984 Aviation Lease And Finance C 374.00 225,174 Dhofar Tourism 0.49 0.00 - Bahrain Duty Free Complex 0.76 0.00 150,000 Methanol Chemicals Co 1.35 0.00 6.77 933,024 Arzan Financial Group For Fi 35.00 24,633 Dhofar Poultry 0.18 0.00 - Bahrain Commercial Facilitie 0.69 0.00 5,000 Ace Arabia Cooperative Insur 2.22 0.00 50.66 169,791 Ajwan Gulf Real Estate Co 55.50 6,200 Dhofar Intl Development 0.32 0.00 - Bahrain Cinema Co 1.21 0.00 8,330 Mobile Telecommunications Co 0.38 0.00 7.94 882,900 Kuwait Business Town Real Es 49.00 224,500 Dhofar Insurance 0.20 0.00 - Bahrain Car Park Co 0.14 0.00 16,300 Saudi Arabian Coop Ins Co -1.19 0.00 19.17 354,992 Future Kid Entertainment And 123.00 2,000 Dhofar Fisheries & Food Indu 1.28 0.00 - Arab Insurance Group(Bsc)-$ 0.49 0.00 30,634 Axa Cooperative Insurance 1.69 0.00 19.26 260,825 Specialities Group Holding C 85.00 15,957 Dhofar Cattlefeed 0.19 0.00 - Arab Banking Corp Bsc-$Us 0.29 1.79 450,000 Alsorayai Group 2.26 0.84 7.70 196,065 Abyaar Real Eastate Developm 24.10 2,467,706 Dhofar Beverages Co 0.26 0.00 - Aluminium Bahrain Bsc 0.52 0.00 24,190 Weqaya For Takaful Insurance 0.00 0.00 0.00 - Dar Al Thuraya Real Estate C 0.00 - Construction Materials Ind 0.03 0.00 - Albaraka Banking Group 0.38 0.00 10,500 Bank Albilad -0.05 0.00 18.96 491,394 Al-Dar National Real Estate 0.00 - Computer Stationery Inds 0.26 0.00 - Al-Salam Bank 0.10 -1.03 150,000 Al-Hassan G.I. Shaker Co 1.03 -1.29 11.74 346,541 Kgl Logistics Company Kscc 53.60 527,193 Bankmuscat Saog 0.40 2.05 2,321,986 Al-Ahlia Insurance Co 0.22 0.00 10,220 Wataniya Insurance Co 0.07 -0.20 28.83 266,999 Combined Group Contracting 502.00 220 Bank Sohar 0.16 0.00 530,082 Ahli United Bank B.S.C 0.69 0.73 658,000 Abdullah Al Othaim Markets 119.71 -0.23 20,009 Jiyad Holding Co Ksc 0.00 0.00 - Bank Nizwa 0.09 1.10 652,000 Hail Cement 8.75 0.46 234,297 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.21 0.00 142,356 LATEST MARKET CLOSING FIGURES Gulf Times 8 Friday, October 13, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 22,880.86 +7.97 Apple Inc 156.88 0.21 7,361,279 S&P 500 Index 2,554.51 -0.73 Microsoft Corp 77.21 1.03 6,256,325 Nasdaq Composite Index 6,611.20 +7.65 Exxon Mobil Corp 82.37 -0.27 2,593,690 S&P/Tsx Composite Index 15,778.34 -22.06 Johnson & Johnson 136.90 0.18 2,117,838 Mexico Bolsa Index 50,130.84 -8.84 General Electric Co 22.86 -0.91 21,204,965 Brazil Bovespa Stock Idx 76,659.80 -237.41 Jpmorgan Chase & Co 96.08 -0.78 10,353,278 Ftse 100 Index 7,556.24 +22.43 Procter & Gamble Co/The 91.64 0.19 2,230,766 Cac 40 Index 5,360.81 -1.60 Wal-Mart Stores Inc 85.99 0.30 5,821,773 Dax Index 12,982.89 +12.21 Verizon Communications Inc 48.67 -0.40 6,072,363 Ibex 35 Tr 10,275.90 -2.50 Pfizer Inc 36.50 0.14 5,989,367 Nikkei 225 20,954.72 +73.45 Visa Inc-Class A Shares 108.50 0.05 2,557,671 Japan Topix 1,700.13 +3.32 Chevron Corp 119.52 0.16 1,555,385 Hang Seng Index 28,459.03 +69.46 Coca-Cola Co/The 46.03 -0.16 2,214,690 All Ordinaries Indx 5,864.10 +23.30 Intel Corp 39.17 -0.33 6,150,475 Nzx All Index 1,451.61 +1.60 Merck & Co. Inc. 63.79 0.02 2,129,006 Bse Sensex 30 Index 32,182.22 +348.23 Cisco Systems Inc 33.42 -0.51 5,276,584 Nse S&P Cnx Nifty Index 10,096.40 +111.60 Home Depot Inc 165.05 -0.12 1,113,100 Straits Times Index 3,303.09 +22.81 Intl Business Machines Corp 147.45 -0.12 1,068,539 Karachi All Share Index 29,025.77 -110.72 Walt Disney Co/The 97.22 -1.35 4,884,476 Jakarta Composite Index 5,926.20 +43.42 Unitedhealth Group Inc 194.35 -0.47 816,909 3M Co 216.80 0.13 619,228 Mcdonald’s Corp 164.18 0.63 1,265,926 Nike Inc -Cl B 50.60 -0.84 3,821,947 TOKYO United Technologies Corp 118.64 0.76 635,078 Boeing Co/The 262.73 0.49 1,032,620 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 241.54 -0.35 1,000,644 Rakuten Inc 1,243.00 -0.08 3,106,300 American Express Co 92.05 0.10 1,064,967 Kyocera Corp 7,272.00 -0.05 829,300 Du Pont (E.I.) De Nemours 83.93 0.00 34,861,021 Nissan Motor Co Ltd 1,089.50 0.37 15,027,300 Caterpillar Inc 129.37 0.60 1,003,525 Hitachi Ltd 818.40 0.01 17,819,000 Travelers Cos Inc/The 125.84 0.18 249,527 Takeda Pharmaceutical Co Ltd 6,145.00 -0.05 1,703,000 Jfe Holdings Inc 2,200.00 -0.18 3,271,700 Ana Holdings Inc 4,272.00 0.23 1,242,500 FTSE 100 Mitsubishi Electric Corp 1,802.00 0.64 4,947,000 Sumitomo Mitsui Financial Gr 4,307.00 -0.44 5,093,600 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,407.00 0.18 3,033,800 Fast Retailing Co Ltd 34,850.00 -0.68 568,300 Wpp Plc 1,375.00 0.22 4,620,491 Ms&Ad Insurance Group Holdin 3,586.00 -0.94 1,535,400 Worldpay Group Plc 411.80 -0.31 4,505,361 Kubota Corp 1,988.50 -2.40 5,741,000 Wolseley Plc 0.00 0.00 - Seven & I Holdings Co Ltd 4,427.00 -0.87 2,049,400 Wm Morrison Supermarkets 236.40 1.20 6,895,375 Bear and bull statues stand outside the Frankfurt Stock Exchange. The DAX 30 ended yesterday 0.1% up at 12,982.89 points. Inpex Corp 1,159.00 -1.11 5,113,200 Whitbread Plc 4,053.00 0.62 892,735 Resona Holdings Inc 566.10 -1.26 11,066,800 Vodafone Group Plc 216.35 0.63 57,035,934 Asahi Kasei Corp 1,368.50 -2.42 4,370,000 United Utilities Group Plc 855.00 -0.58 1,753,413 Kirin Holdings Co Ltd 2,729.50 -0.47 1,988,700 Unilever Plc 4,507.50 2.07 2,997,901 Marubeni Corp 735.20 0.40 10,110,800 Tui Ag-Di 1,344.00 1.90 1,107,187 Mitsubishi Ufj Financial Gro 720.90 -1.03 57,990,400 Travis Perkins Plc 1,442.00 -0.55 918,064 Mitsubishi Chemical Holdings 1,113.00 0.23 5,394,500 Tesco Plc 185.60 -0.85 22,880,600 Fanuc Corp 24,525.00 0.88 956,400 European stocks steady as Taylor Wimpey Plc 200.50 0.20 9,778,177 Daito Trust Construct Co Ltd 21,030.00 1.40 342,100 Standard Life Plc 0.00 0.00 - Otsuka Holdings Co Ltd 4,533.00 -0.87 904,000 Standard Chartered Plc 758.50 -0.85 4,487,232 Oriental Land Co Ltd 9,235.00 2.66 1,720,800 St James’s Place Plc 1,176.00 4.07 2,031,819 Sekisui House Ltd 1,959.50 0.28 2,446,400 Sse Plc 1,408.00 2.47 4,734,689 Secom Co Ltd 8,525.00 0.47 561,800 Smith & Nephew Plc 1,423.00 1.57 4,535,551 US pauses after records Tokio Marine Holdings Inc 4,468.00 -0.47 3,138,200 Sky Plc 926.50 1.42 3,531,023 Aeon Co Ltd 1,712.50 -0.03 1,877,000 Shire Plc 3,845.00 0.22 2,215,190 But shares in HSBC slipped after the 0.1% at 10,270.60 points and the EURO Mitsui & Co Ltd 1,628.00 0.06 4,782,200 AFP Severn Trent Plc 2,138.00 -0.56 975,611 British banking giant announced it had STOXX 50 fi nished the day 0.1% down Kao Corp 6,668.00 0.65 1,123,700 London Schroders Plc 3,504.00 2.01 344,993 promoted head of its retail operations at 3,605.54 points yesterday. Dai-Ichi Life Holdings Inc 2,045.00 -1.68 6,826,000 Sainsbury (J) Plc 240.00 0.21 6,684,824 Mazda Motor Corp 1,657.50 -0.93 6,387,700 John Flint to the post of chief execu- US central bankers are sharply di- Sage Group Plc/The 730.00 1.32 1,663,544 Komatsu Ltd 3,455.00 5.05 6,651,500 urope’s stock markets held tive. vided over whether to increase interest Abi Sab Group Holding Ltd 0.00 0.00 - West Japan Railway Co 7,831.00 0.79 709,700 mostly steady yesterday as ten- Madrid investors, meanwhile, took rates again this year amid persistently Rsa Insurance Group Plc 616.50 0.24 2,132,967 Murata Manufacturing Co Ltd 16,620.00 0.57 615,500 sions eased over Catalonia and profi ts a day after a relief rally to push weak infl ation, but some would prefer Royal Mail Plc 387.30 0.47 3,853,788 E Kansai Electric Power Co Inc 1,535.00 1.49 1,909,700 Royal Dutch Shell Plc-B Shs 2,330.00 -0.32 3,607,418 Wall Street drifted after its latest the Ibex a touch lower in closing trade. a hike, according to minutes released Denso Corp 5,686.00 -0.54 1,463,300 Royal Dutch Shell Plc-A Shs 2,300.50 -0.20 3,856,218 record-busting performance. Spanish shares had surged Wednes- on Wednesday. Sompo Holdings Inc 4,270.00 -2.11 2,163,100 Royal Bank Of Scotland Group 274.20 -0.44 11,427,160 Daiwa House Industry Co Ltd 4,065.00 0.67 1,379,000 Frankfurt briefl y made it above the day after Catalan leader Carles Puig- The US stock market has enjoyed a Rolls-Royce Holdings Plc 920.50 1.04 2,985,644 Jxtg Holdings Inc 557.00 -1.42 13,231,500 key 13,000 point mark on the DAX in- demont called for independence to be record-breaking bull run since March Rio Tinto Plc 3,581.00 0.34 2,736,152 Nippon Steel & Sumitomo Meta 2,547.00 -1.01 3,759,400 dex for the fi rst time in a market lifted suspended to allow for talks with the 2009 on the back of ultra-low Federal Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,851.00 1.35 2,776,200 Reserve interest rates. Relx Plc 1,698.00 0.89 1,962,611 by Lufthansa shares rising strongly af- Spanish government. Nippon Telegraph & Telephone 5,220.00 0.77 3,448,700 Reckitt Benckiser Group Plc 7,166.00 1.82 1,499,928 ter the carrier said it would swallow up The euro conceded ground to the The bumper stock gains have con- Ajinomoto Co Inc 2,267.50 0.80 2,432,300 Randgold Resources Ltd 7,515.00 1.14 263,869 the lion’s share of failed Air Berlin. dollar. tinued this year despite two Fed rate Mitsui Fudosan Co Ltd 2,549.50 -0.31 2,927,200 Prudential Plc 1,829.50 0.30 3,798,910 “Favourable market conditions, re- “European equity markets are hikes — and the increasing prospect of Ono Pharmaceutical Co Ltd 2,608.50 0.89 2,908,600 Provident Financial Plc 789.00 -1.44 1,837,106 Daikin Industries Ltd 11,835.00 0.25 724,500 lief on the back of a reduced threat of mixed in afternoon action, with glo- another one in December. Persimmon Plc 2,780.00 0.07 1,856,896 Bank Of Yokohama Ltd/The 0.00 0.00 - Catalonian secession from Spain and bal economic optimism continuing The oil price fell after the Inter- Pearson Plc 622.00 0.89 2,383,005 Toray Industries Inc 1,080.00 -0.46 5,068,100 record low interest rates and QE com- and appearing to overshadow elevated national Energy Agency warned that Paddy Power Betfair Plc 7,735.00 0.65 138,610 Astellas Pharma Inc 1,475.50 -0.20 6,327,000 Old Mutual Plc 199.60 1.68 6,940,758 bined have all helped to lift the German expectations of another rate hike in more output restraint is needed from Bridgestone Corp 5,248.00 0.04 1,924,900 Next Plc 4,989.00 -1.21 650,059 DAX to a new record level of 13,000 to- December out of the US,” analysts at producer countries if the market is to Sony Corp 4,062.00 -0.93 7,832,300 National Grid Plc 939.50 -0.37 6,859,970 day,” said Fawad Razaqzada, a market the Charles Schwab brokerage said. fi nd a sustainable balance. Hoya Corp 6,178.00 0.24 1,050,700 Mondi Plc 1,945.00 0.99 2,622,033 analyst at Forex.com. London’s FTSE 100 closed 0.3% up Both major oil contracts, Brent and Sumitomo Mitsui Trust Holdin 4,126.00 -0.58 991,700 Merlin Entertainment 459.70 -0.84 3,914,367 Japan Tobacco Inc 3,693.00 0.16 3,475,500 London also pushed moderately at 7,556.24 points, Frankfurt’s DAX WTI, were down by well 1.5% or more Mediclinic International Plc 680.00 -0.51 829,882 Osaka Gas Co Ltd 2,180.00 0.30 1,035,200 higher, helped along by weakness in 30 ended 0.1% up at 12,982.89 points, by the end of the European trading Marks & Spencer Group Plc 350.00 0.03 4,813,210 Sumitomo Electric Industries 1,849.50 -0.19 2,292,500 the pound which boosts earnings of Paris’ CAC 40 was 0.03% down at day, with news of falling weekly US oil London Stock Exchange Group 3,931.00 0.26 785,298 Daiwa Securities Group Inc 646.00 0.45 6,151,000 Lloyds Banking Group Plc 66.30 -0.30 168,477,401 exporters in the FTSE index. 5,360.81 points, Madrid’s IBEX 35 fell stocks doing little to lift sentiment. Softbank Group Corp 9,840.00 3.59 15,183,500 Legal & General Group Plc 264.60 0.46 12,613,837 Mizuho Financial Group Inc 197.50 -0.20 84,752,000 Land Securities Group Plc 993.00 0.00 1,923,902 Nomura Holdings Inc 643.60 1.27 28,552,800 Kingfisher Plc 303.90 -0.56 9,200,655 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,471.00 -1.38 2,347,100 Johnson Matthey Plc 3,408.00 0.86 459,401 Subaru Corp 3,952.00 0.48 2,881,000 Itv Plc 174.60 0.52 24,741,105 Ntt Docomo Inc 2,601.50 0.60 3,869,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 230.40 -0.39 4,207,198 Sumitomo Realty & Developmen 3,562.00 0.06 1,216,000 Intl Consolidated Airline-Di 626.50 0.48 5,992,702 Aluminum Corp Of China Ltd-H 6.99 3.40 42,767,480 Hong Kong & China Gas 14.84 0.41 8,415,733 Sumitomo Metal Mining Co Ltd 3,923.00 -1.68 2,447,000 Intertek Group Plc 5,210.00 1.07 166,553 Bank Of East Asia Ltd 35.00 0.43 1,221,526 Hong Kong Exchanges & Clear 218.20 0.74 4,220,455 Orix Corp 1,867.00 2.05 6,732,500 Intercontinental Hotels Grou 4,110.00 0.27 664,067 Bank Of China Ltd-H 4.06 0.00 251,217,563 Hsbc Holdings Plc 77.30 -1.02 14,127,044 Asahi Group Holdings Ltd 4,913.00 -0.16 1,426,300 Inmarsat Plc 647.00 3.11 2,320,287 Bank Of Communications Co-H 6.05 0.00 25,596,055 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 60,000.00 -0.58 551,100 Informa Plc 692.00 0.58 4,525,127 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 6.40 0.00 272,588,090 Nidec Corp 13,990.00 0.61 719,600 Imperial Brands Plc 3,165.00 0.35 2,774,921 Boc Hong Kong Holdings Ltd 38.50 -0.13 7,515,944 Li & Fung Ltd 4.08 1.24 23,494,731 Isuzu Motors Ltd 1,506.50 0.77 1,723,600 Hsbc Holdings Plc 747.00 -1.50 21,085,868 Cathay Pacific Airways 12.28 2.85 11,871,543 Mtr Corp 45.00 0.00 3,871,264 Unicharm Corp 2,673.50 -0.37 1,362,700 Hargreaves Lansdown Plc 1,536.00 2.67 1,132,818 Ck Hutchison Holdings Ltd 99.80 -0.89 6,673,780 New World Development 12.20 2.35 31,188,242 Shin-Etsu Chemical Co Ltd 10,055.00 -0.40 950,800 Hammerson Plc 534.50 0.19 1,999,922 China Coal Energy Co-H 3.76 -1.31 12,331,450 Petrochina Co Ltd-H 4.99 -0.80 44,851,915 Smc Corp 40,650.00 1.12 196,200 Glencore Plc 367.95 0.81 20,590,435 China Construction Bank-H 6.97 1.01 297,274,250 Ping An Insurance Group Co-H 63.95 2.81 45,164,774 Mitsubishi Corp 2,552.00 -0.39 4,202,500 Glaxosmithkline Plc 1,527.50 0.69 7,718,882 China Life Insurance Co-H 24.10 1.26 41,668,423 Power Assets Holdings Ltd 67.85 -0.15 1,363,189 Nintendo Co Ltd 43,700.00 -0.75 2,284,800 Gkn Plc 352.80 0.28 2,299,436 China Merchants Port Holding 23.60 -0.21 7,206,795 Sino Land Co 14.14 1.58 3,773,353 Eisai Co Ltd 5,943.00 0.07 748,500 Fresnillo Plc 1,465.00 1.45 574,555 China Mobile Ltd 78.95 0.64 12,608,075 Sun Hung Kai Properties 131.90 1.85 3,279,818 Sumitomo Corp 1,578.50 0.32 2,243,200 Experian Plc 1,564.00 0.84 1,778,270 China Overseas Land & Invest 25.95 1.17 16,312,651 Swire Pacific Ltd - Cl A 76.05 -0.65 1,189,486 Canon Inc 3,970.00 0.33 3,145,500 Easyjet Plc 1,321.00 2.48 1,911,669 China Petroleum & Chemical-H 5.79 0.00 64,755,285 Tencent Holdings Ltd 350.20 -0.40 14,874,040 Japan Airlines Co Ltd 3,808.00 0.05 1,060,200 Dixons Carphone Plc 189.40 -2.17 6,188,851 China Resources Beer Holdin 21.95 0.23 3,733,400 Wharf Holdings Ltd 72.50 2.47 5,780,455 Direct Line Insurance Group 376.10 1.62 5,158,174 China Resources Land Ltd 24.15 -0.21 11,734,047 China Resources Power Holdin 14.36 0.28 8,176,339 Diageo Plc 2,569.00 0.41 3,568,166 SENSEX Dcc Plc 7,365.00 0.82 150,543 China Shenhua Energy Co-H 19.30 0.52 11,985,120 GCC INDICES Crh Plc 2,751.00 -0.51 1,155,639 China Unicom Hong Kong Ltd 11.24 0.36 29,715,491 Compass Group Plc 1,635.00 1.55 2,811,613 Company Name Lt Price % Chg Volume Citic Ltd 11.56 -0.52 6,566,341 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,606.00 -0.19 712,034 Clp Holdings Ltd 79.80 0.25 1,140,922 Doha Securities Market Zee Entertainment Enterprise 517.55 0.59 735,009 8,342.09 +8.25 Centrica Plc 179.00 1.94 39,553,817 Cnooc Ltd 9.96 -2.35 82,573,286 Saudi Tadawul Yes Bank Ltd 365.40 0.66 7,905,248 6,987.76 +97.78 Carnival Plc 5,020.00 -0.40 768,805 Cosco Shipping Ports Ltd 8.97 0.22 3,121,441 Kuwait Stocks Exchange Wipro Ltd 293.45 0.96 1,843,257 6,628.54 +2.42 Capita Plc 555.50 2.02 2,304,706 Esprit Holdings Ltd 4.27 0.95 3,433,482 Bahrain Stock Exchage Vedanta Ltd 319.50 1.95 9,903,793 1,274.75 -0.15 Burberry Group Plc 1,896.00 2.65 1,884,579 Fih Mobile Ltd 2.43 0.00 6,053,928 Oman Stock Market Ultratech Cement Ltd 3,919.80 -0.79 190,762 5,128.48 +6.77 Bunzl Plc 2,317.00 0.35 610,918 Hang Lung Properties Ltd 19.06 0.74 2,834,581 Abudhabi Stock Market Tech Mahindra Ltd 474.20 1.49 1,886,362 4,525.88 +10.89 Bt Group Plc 279.00 1.07 16,861,114 Hang Seng Bank Ltd 192.20 0.95 614,721 Dubai Financial Market Tata Steel Ltd 691.60 1.36 4,903,627 3,660.27 +22.72 British Land Co Plc 609.50 0.74 3,275,618 Henderson Land Development 52.95 0.76 4,487,654 Tata Power Co Ltd 81.70 0.86 4,599,775 British American Tobacco Plc 4,881.50 -0.71 3,191,957 Tata Motors Ltd 420.15 1.12 5,866,191 Bp Plc 491.45 0.57 18,145,314 Tata Consultancy Svcs Ltd 2,548.20 1.91 2,690,055 Bhp Billiton Plc 1,375.50 0.66 5,562,986 Sun Pharmaceutical Indus 539.55 2.57 9,542,125 Berkeley Group Holdings/The 3,817.00 -0.47 486,969 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 251.20 -0.22 14,663,259 Barratt Developments Plc 671.50 0.30 5,701,202 Reliance Industries Ltd 872.75 3.88 9,155,406 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 193.05 1.39 33,695,268 Punjab National Bank 133.80 1.59 5,988,043 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 616.00 0.16 9,356,846 Power Grid Corp Of India Ltd 202.30 -0.27 3,188,172 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 822.50 0.06 817,237 Oil & Natural Gas Corp Ltd 169.70 0.33 5,210,680 this data.” Aviva Plc 500.00 1.32 9,926,694 Ntpc Ltd 176.70 1.06 17,035,154 Astrazeneca Plc 5,154.00 0.12 2,019,565 Maruti Suzuki India Ltd 7,904.25 1.01 411,858 Associated British Foods Plc 3,338.00 1.03 463,264 Mahindra & Mahindra Ltd 1,338.15 1.42 892,783 Ashtead Group Plc 1,865.00 0.65 764,856 Lupin Ltd 1,061.25 1.45 888,451 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,143.65 0.86 1,210,465 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 1,016.00 1.50 1,633,573 DINAR DINAR Kotak Mahindra Bank Ltd 1,057.60 1.32 1,231,690 Anglo American Plc 1,443.50 0.10 6,123,913 Itc Ltd 267.00 0.60 9,529,415 Admiral Group Plc 1,887.00 0.27 323,739 Infosys Ltd 927.30 -0.37 5,476,330 3I Group Plc 963.50 1.96 1,323,954 Indusind Bank Ltd 1,743.00 1.50 2,543,305 Idea Cellular Ltd 74.55 1.84 5,766,740 Icici Bank Ltd 267.55 -0.02 12,682,837 TOKYO Housing Development Finance 1,755.55 0.27 1,631,667 Hindustan Unilever Ltd 1,241.00 1.88 1,045,214 Hindalco Industries Ltd 264.45 5.99 31,477,822 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,751.00 1.67 363,483 East Japan Railway Co 10,485.00 0.48 661,100 Hdfc Bank Limited 1,818.80 1.60 1,385,728 Itochu Corp 1,864.00 1.25 4,075,100 Hcl Technologies Ltd 916.00 0.78 1,072,611 Fujifilm Holdings Corp 4,438.00 -0.29 1,216,200 Grasim Industries Ltd 1,136.05 -1.20 610,139 Yamato Holdings Co Ltd 2,235.50 -0.02 1,944,400 Gail India Ltd 445.95 0.35 4,959,170 Chubu Electric Power Co Inc 1,408.50 0.39 2,656,200 Dr. Reddy’s Laboratories 2,379.85 0.32 439,317 Mitsubishi Estate Co Ltd 2,009.00 0.05 3,410,600 Coal India Ltd 282.40 -0.19 6,531,889 Mitsubishi Heavy Industries 4,457.00 -0.18 910,700 Cipla Ltd 589.65 0.60 796,282 Toshiba Corp 330.00 3.77 56,280,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 4,623.00 2.35 2,044,600 Bosch Ltd 21,158.95 0.05 14,697 Shionogi & Co Ltd 6,066.00 -4.38 2,603,700 Bharti Airtel Ltd 400.25 -0.82 3,712,667 Tokyo Gas Co Ltd 2,876.50 0.09 1,074,500 Bharat Petroleum Corp Ltd 491.60 0.46 2,387,786 Tokyo Electron Ltd 17,700.00 1.96 1,595,400 Bharat Heavy Electricals 84.40 -0.71 4,407,427 Panasonic Corp 1,620.00 -1.91 13,061,200 Bank Of Baroda 138.55 -0.04 9,590,136 Fujitsu Ltd 887.10 0.97 15,362,000 Bajaj Auto Ltd 3,155.90 0.38 323,852 Central Japan Railway Co 20,090.00 0.70 521,200 Axis Bank Ltd 525.10 1.81 5,024,461 T&D Holdings Inc 1,642.00 -0.91 3,123,900 Asian Paints Ltd 1,158.80 -0.16 696,331 Toyota Motor Corp 6,925.00 -0.10 5,195,900 Ambuja Cements Ltd 277.40 1.24 789,233 Kddi Corp 2,960.50 0.27 8,139,800 Adani Ports And Special Econ 403.70 1.70 4,302,849 Nitto Denko Corp 9,453.00 -0.67 534,900 Acc Ltd 1,741.05 1.49 265,421

Gulf Times 10 Friday, October 13, 2017 BUSINESS

London City Airport chief’s parting plea: Right Crossrail wrong

Bloomberg Crossrail link even though the line minimal public cost — about 50mn between Reading in the Thames valley Luton — all have stations on the main passengers arrive that way, almost all of London comes within 170 meters (550 feet) pounds, part-funded by the airport and Shenfield in Essex via central rail network. those on the Docklands Light Railway of its terminal. Providing a dedicated — and without aff ecting trains using London, adding that it’s time for “some City attracted 4.5mn passengers system, which terminates at Bank station would create a more joined up the Elizabeth Line, as the Crossrail really positive engagement from TfL last year, with an upgrade program subway station to the east of central London City Airport’s outgoing chief transport system by off ering a direct route will be known upon its planned and from Crossrail.” including an extended terminal, London. executive off icer slammed the failure connection to Heathrow Airport, opening from December 2018, Collier Crossrail has not yet seen any formal dedicated taxiway and more aircraft City’s runway on a disused dock by to link the terminal with the £15bn Europe’s busiest hub, currently over said. The extra stop would add no feasibility or funding study from stands intended to boost capacity by the banks of the River Thames took ($20bn) Crossrail train line and said an hour away by public transport but more than 2 1/2 minutes to journey London City on a potential extension a further 2mn people by 2025. That in less than two years to build, and is an planning hurdles are hurting Britain’s potentially within 40 minutes’ ride on times, making the project compliant of Elizabeth Line services, Howard itself argues for improved transport example of how “we were able, 30 years competitiveness. the new line. with stipulations set by Transport for Smith, its operations director, said in links, Collier said. The main curb on ago, to get things done much faster,” After missing out on a Crossrail station “If people believe that it’s too diff icult London. an emailed statement. “Our focus is on growth is the airport’s short runway, said Collier, who spoke at the launch of in the route’s initial construction phase, to get things done in the UK they’ll go Silvertown station closed in 2006, delivering the agreed Crossrail scheme which is unable to take full-size a book on the airport’s history. London City has come up with a plan elsewhere where it’s easier,” Collier said but at that time was located on the on time and to budget,” he said. jetliners. From October 30, Collier, 62, will be for reopening the nearby Silvertown in an interview. “Something has gone suburban North London line with no London City is preparing its submission, London City’s location in an urban replaced as chief by Robert Sinclair, halt that would satisfy the stringent badly wrong in strategic infrastructure.” route into the middle of the metropolis, though one hasn’t yet been lodged setting just six miles from the main who previously ran Bristol Airport in requirements it was instructed to meet, A stop at Silvertown would require making it of limited use as an airport with TfL or the UK government’s financial district and half that distance the west of England. Terry Morgan, according to Declan Collier, who stands only basic platforms, a ticket hall and a interchange. Collier said that wouldn’t Department for Transport, the airport from the Canary Wharf banking hub Crossrail’s chairman since 2009, also down in two weeks. physical link to the airport. be the case were it to reopen on the confirmed. The capital’s other airports makes it hugely reliant on public transit, took on the same role at London City London City was passed over for a Building the station could be done at Elizabeth Line spanning 73 miles — Heathrow, Gatwick, Stansted and according to the CEO. Close to 70% of in March.

Praet says ECB may reveal more ECB defends plan to on reinvestments in near future

Bloomberg The ECB’s Governing Council Frankfurt is due to spell out the bulk of tackle bad debt after their plans for quantitative easing going forward after their When European Central Bank Octobar 26 meeting. While the off icials meet to assess their region’s economy has seen a policy stance in two weeks, significant strengthening in at least one of them may be growth indicators, any changes pushing to divulge some details to monetary policy are likely on how maturing debt bought to be guided by the fact that lawmaker criticism under quantitative easing is inflation still isn’t yet near the being reinvested. ECB’s goal of just below 2%. Bloomberg “We should communicate more “The evidence still shows Frankfurt on the reinvestment portfolio, insuff icient progress toward and probably we will do that in a sustained adjustment in the the near future,” the institution’s path of inflation,” Praet said. he European Central Bank chief economist Peter Praet “Such ‘sustained adjustment’ is hit back at criticism from said at a conference in New the principal contingency that TEuropean Union lawmak- York on Wednesday. has guided and will be guiding ers who said recently proposed “Everybody in the market is the introduction and withdrawal measures to tackle soured debt trying to guess how much, so at of our asset purchase on lenders’ books may have some time you need to give at programme and, indirectly, of overstepped the ECB’s mandate least the figures,” he said. “I am all the main components of our as euro-area bank overseer. very much in favour of this.” He present policy.” The ECB’s draft guidance didn’t elaborate any further. At the same time, he also hinted on non-performing loans, is- Investors have been searching that stimulus in an environment sued last week, is on solid legal for clues as to how much they of less uncertainty could be ground, a spokesman said by can rely on the ECB to mop up delivered in a slower fashion telephone in Frankfurt yester- euro-area bond supply if and and over an extended period. day. Antonio Tajani, president when its starts to gradually “In conditions in which of the European Parliament, withdraw its extraordinary uncertainty is high, front- questioned in a October 9 letter stimulus. Central banks in the loading the accumulation of a to ECB president Mario Draghi region currently buy €60bn given stock of purchases more whether such measures could ($71bn) of debt a month, forcefully signals the central be imposed without the involve- an amount which is widely bank’s commitment,” he said. ment of the EU legislature. expected to be reduced after “By contrast, in more normal Asked on October 11 about the end of this year. The ECB’s market conditions, the market’s Tajani’s letter, European Com- pledge to replace maturing capacity to engage in inter- mission vice-president Valdis assets could help mitigate temporal arbitrage improves. Dombrovskis backed up the any potential negative market Consequently, investors may ECB. When the public-com- impact. become ‘more patient’.” ment period concludes and the ECB issues fi nal guidance, the commission is “confi dent” that any action taken “will stay within SSM legal competences,” Dombrovskis said, referring to the Single Supervisory Mecha- nism, as the ECB’s oversight arm is known. According to the ECB’s pro- posed guidance, lenders would have to provision against the The stars of European Union (EU) membership are seen on a euro sign sculpture outside the headquarters of the European Central whole of the potential loss on Bank in Frankfurt. According to the ECB’s proposed guidance, lenders would have to provision against the whole of the potential loss on nonperforming loans that aren’t nonperforming loans that aren’t backed by collateral after two years, and losses on secured loans that have defaulted would have to be fully backed by collateral after two covered after seven years at the latest. years, and losses on secured loans that have defaulted would issued a report on the SSM that with the central bank’s policy, supervisors include the possi- report “does not support the have to be fully covered after some analysts read as an attempt pointed to last week’s proposal, bility to “infl uence a bank’s pro- SSM power to impose stand- seven years at the latest. The to rein in the ECB on dealing which states: “Where provision- visioning level within the limits ard blanket provisioning levels proposal applies to loans newly with bad loans. ing levels are considered to be of the applicable accounting in Europe, like the guidelines classifi ed as nonperforming Some Italian medium-sized inadequate for prudential pur- framework and to apply the nec- proposal published last week on starting on January 1. banks gained on Wednesday af- poses, supervisors are obliged to essary adjustments (deductions new NPL fl ows.” That met with resistance from ter such comments, only to give ensure that banks reassess and and similar treatments) in case, Markus Ferber, a German Italy, with Finance Minister Pier up some of those gains yester- increase respective risk cover- for example, accounting pro- member of the European Parlia- Carlo Padoan saying he had day. Banco BPM declined 1.8% age in order to meet prudential visioning is not suffi cient from ment, joined Tajani in express- “perplexities” about the ECB’s in Milan after having advanced expectations.” a supervisory perspective,” the ing concern that the ECB is cir- plan. 4.8% on Wednesday, while BPER The commission said in its commission said. cumventing legislators. Dombrovskis spoke after the Banca fell 2.1% after rising 3.5%. report that the ECB is “encour- A commission spokeswoman “The ECB should show some commission, the EU’s executive The FTSE Italia All-Share Banks aged to apply the whole panoply declined to elaborate on Dom- modesty,” Ferber said in an e- arm, presented a range of meas- Index, which had gained 1.4%, of supervisory powers to allow brovskis’s October 11 remarks. mailed statement. “I do not want ures for tackling non-perform- fell 1.1%. risks to be addressed through the Mediobanca analysts led by to see the ECB creating a parallel ing loans that it will put forward The ECB spokesman, who most suitable supervisory tools.” Andrea Filtri said the commis- regime of capital requirements Praet: Sustained adjustment. at the beginning in 2018. It also asked not to be named in line Existing powers available to sion’s reading of EU law in the that bypasses the legislator.” Gulf Times Friday, October 13, 2017 11 BUSINESS

No-deal Brexit James Murdoch re-elected would cost $15,000 per as Sky chairman with the person, says Rabobank

Bloomberg backing of independents London

Bloomberg eaving the European Union without a London trade deal won’t be cheap. L According to analysis by Rabobank, a so-called hard Brexit would cost about ames Murdoch was re-elected 18% of GDP growth by 2030. That’s about as chairman of Sky Plc with the £400bn ($530bn) in absolute terms, or Jnarrow backing of independent £11,500 per person. shareholders, according to a person For the researchers, a hard Brexit is leaving familiar with the matter, overcoming the EU without a trade deal in place. Minis- opposition from investor groups that ters this week detailed some contingency had raised concerns about his role plans for that scenario, suggesting they’re amid a takeover bid from the Mur- considering it as a distinct possibility. doch family’s 21st Century Fox Inc. Barriers to trade, lower investment, a loss Murdoch won about 78% support, of fi nancial services and lower immigration said the person, who asked not to be would all weigh on growth, according to named before the results were an- the report, written by economists includ- nounced. Those votes included the ing Hugo Erken and Raphie Hayat. “We de- 40% of Sky owned by Rupert Mur- viate strongly from previous studies in our doch’s Fox, where James is chief ex- approach and assumptions and fi nd much ecutive offi cer. The 44-year-old won higher costs,” they said. about 51% of the independent shares In a particularly pessimistic assessment, cast at yesterday’s annual sharehold- Rabobank said that even if the UK manages er meeting, the person said. to strike a deal with the bloc, it will still enter The victory, however thin, re- a two-year recession once it leaves in 2019. moves one obstacle for the Murdochs It sees a GDP decline of 1.1% in that period if to completing Fox’s proposed £11.7bn there’s a free-trade deal with the remaining ($15.5bn) takeover of Sky. While the 27 EU countries, and more than twice that — stake held by Fox ensured that James 2.4% — without it. Murdoch would be re-elected, the Chancellor of the Exchequer Philip Institute of Directors had urged the Hammond said on Wednesday that he will broadcaster’s board to replace him start releasing more money to help prepare if he didn’t win a majority of shares for a “no deal” Brexit if there aren’t clear cast that weren’t affi liated with Fox. signs of progress in exit talks by early next “The signifi cant size of the op- year. The government also set out plans for position should serve as an indica- leaving without a deal on customs earlier tor to the board that concerns over this week. his position remain,” Stephen Mar- The UK has until March 2019 to se- tin, director general of the institute, cure a new trading relationship with the said in an email. “We would en- bloc, and Prime Minister Theresa May has courage Mr Murdoch and the board pledged a two-year transitional period to to make it clear how they intend to shift to it. But negotiations with the EU are ensure their voice is still heard in the currently stuck, increasing the chances of boardroom.” the worst-case scenario in which no deal is Mutual fund fi rm Royal London reached. Asset Management had said it would Rabobank’s projection is reminiscent of vote against his re-election, while some of the dire warnings made by econo- advisory fi rm ISS had recommended mists before the referendum, which have others follow suit, citing concerns James Murdoch is said to have won about 78% support, including the 40% of Sky owned by Rupert Murdoch’s Fox, where he is the CEO. thus far proved to be overly pessimistic. over board independence at Sky The government’s options for mitigating and a confl ict over James Murdoch’s Sky separately yesterday reported of facing down investor opposition James Murdoch’s re-election, ac- ing the treatment of Fox employees any economic hit — like reducing corporate dual role within the family empire strong operating results in the fi rst over issues of control at their com- cording to Manifest, a London-based in the US, as part of its review of the taxes, saving on budget contributions or built by his 86-year-old billionaire quarter, led by shows like “Game of panies. The family controls News proxy voting agency. takeover bid for Sky. making fresh trade agreements with non- father. Thrones” and home-grown “Rivi- Corp and Fox, the entertainment Opponents of the deal with Fox At the shareholder meeting, Mur- EU countries — have limited scope for off - Both Royal London and ISS also era.” Premier League soccer view- group that split off in 2013, through have cast a spotlight on sexual-har- doch’s opponents made sure to raise setting the negative impact, the economists took issue with the amounts paid to ing is up as well, boding well for super-voting shares that give the assment allegations at Fox News in the question. “Are you confi dent the said. top Sky executives, who are poised to Sky’s investment in expensive sports family about 40% of the votes de- the past year, as well as the past han- CMA won’t unearth new Fox scan- Tax reductions would have to be balanced benefi t if the Fox deal is completed. rights. The shares gained 1.8%, the spite a much smaller economic in- dling of a phone-hacking scandal at dals which could derail the bid in out by increases elsewhere and the U.K. will Independent shareholders agreed, most since late June, to 930 pence at terest. News Corp, which continues to per- the way that the Millie Dowler scan- probably have to pay some amount to the and voted against the company’s re- 12:45 p.m., after the annual meeting In 2011, one-third of News Corp colate through British courts. Last dal did back in 2011?” said Alaphia EU budget to maintain access to the market, muneration report. With the help of wrapped up at Sky’s headquarters in votes were cast against the election week, News UK admitted that the Zoyab, senior campaigner at activist as well as paying a divorce settlement, they Fox’s votes, it passed with about 71% Isleworth, West London. of James and his brother Lachlan Irish edition of its defunct News of group Avaaz, referring to the mur- said. overall support. “I’m delighted to report another Murdoch to the board. The following the World tabloid hired a private in- dered schoolgirl whose voicemail UK Trade Policy Observatory economist “I think the board lacks independ- year of signifi cant progress for your year, Rupert Murdoch used his voting vestigator who hacked the computer was hacked. Michael Gasiorek said on Wednesday that ence,” independent shareholder company,” Murdoch told sharehold- clout to block a News Corp investor of a former British Army intelligence “I’m confi dent we’ll get to a con- it’s unlikely that the two sides will agree on Hugh Lawson said at the meeting. ers. “We’re especially pleased with proposal calling for an independent offi cer. clusion by the middle of next year,” the terms of a transitional period before the “Fox is getting a very sweetheart deal the strength of the company’s per- chairman. A similar proposal was The UK’s Competition and Mar- James Murdoch said. Said Deputy deadline. They should seriously consider out of this, and mainly I think it’s be- formance given the challenging con- defeated at Fox in 2013. kets Authority has said it will consid- Chairman Martin Gilbert: “I’m pret- requesting an extension of the talks beyond cause of the lack of independence on sumer environment.” Last year, about 51% of Sky’s inde- er corporate governance across the ty confi dent it will not have an eff ect March 2019, “controversial as that would be the board.” The Murdochs have a long history pendent shareholders voted against Murdoch family companies, includ- on the CMA’s investigation.” on all sides,” he said in a blog post.

Danske money laundering probe expands with Car loan boom led by Lloyds stokes loss fears as sales dip French investigation Bloomberg If losses on car loans increase by 1 London percentage point more than expected, Bloomberg possible money laundering at its Lloyds’s pretax profi t in 2018 could de- Copenhagen Estonian unit after a preliminary cline by 2%, UBS Group analysts led by investigation uncovered “major s UK car sales drop for the fi rst Jason Napier estimated in a report on deficiencies” over an eight-year time in six years, Britain’s banks auto fi nance. Danske Bank said it’s being period. Acould be forgiven for getting The same measure is more than 6% investigated by French authorities The lender would spend another nervous about their £24bn ($32bn) of for Close Brothers Group, a London- for breaches of money laundering nine to 12 months investigating exposure to motor loans. based lender with more than one quar- rules allegedly carried out at its the allegations, Danske said at The Bank of England has been raising ter of its loan book tied to vehicles, the Estonian operations between the time. alarm bells over the car fi nance market’s report shows. 2008 and 2011. The bank in September re-opened potential to trigger losses for lenders, Yet some analysts point out that for Denmark’s biggest bank said a review of the Baltic branch after with growth that’s outpaced household most banks, car fi nance isn’t yet a big it’s cooperating with the French local media reported that the incomes. Lloyds Banking Group, Brit- part of overall lending. A spokesper- Tribunal de Grande Instance unit had allowed the regime in ain’s largest mortgage lender, has the son for Lloyds said it conducts “regular de Paris court to help with the Azerbaijan to launder funds. Chief most skin in the game with £11.6bn of stress tests to assess the impact of po- probe, which relates to about executive off icer Thomas Borgen car loans, according to JPMorgan Chase tential future market reductions in car €15mn ($18mn) of transactions, has said Danske should have been & Co analysts. valuations and are comfortable with our according to a statement sent by more vigilant. Chief executive offi cer Antonio Hor- Lloyds Banking Group, Britain’s largest mortgage lender, has £11.6bn of car loans, exposures based on these” and the com- Copenhagen- based Danske late Though it remains to be ta-Osorio has strengthened Lloyds since according to JPMorgan Chase & Co analysts. pany is a responsible lender. on Wednesday. seen whether actual money the fi nancial crisis, and car fi nance com- “Car fi nancing is a relatively small The amounts being investigated laundering took place, Borgen prises only about 3% of its total loans. quarter after record volumes in 2016. In lower than that initially agreed with proportion of the loan book,” Walkowicz were transferred to France by said “there is no doubt that we But the bank has grown in riskier con- the event of such a drop in demand and the customer. said. “This combined with conservative former customers at Danske were not sufficiently effective in sumer credit. It acquired MBNA’s UK potential fall in values, the structure “A potential oversupply of used vehi- risk management are mitigating factors Bank Estonia, Flemming Pristed, preventing our branch in Estonia card business for £1.9bn in December, of the car fi nance contracts that have cles may be placing downward pressure in terms of potential impact.” Danske’s group general counsel, from potentially being used while its Black Horse motor fi nance arm helped fuel the growth pose a risk for on the used car market, exposing lenders Nevertheless, Britain’s Finan- said in the statement. “The for such activities,” which he boosted assets by 20% last year. Includ- lenders. to potentially higher-than-anticipated cial Conduct Authority CEO Andrew customers were part of the described as “deeply regrettable ing its joint venture with Jaguar Land With Personal Contract Purchase future losses,” said Joana Seara da Costa, Bailey has issued a fresh warning on portfolio of foreign customers and completely unacceptable.” Rover and the Lex Autolease business, agreements, consumers pay a deposit a senior fi nancial analyst at the rating the levels of consumer indebtedness at Danske Bank Estonia (non- Danske has previously been its exposure to car fi nance was £15.6bn and make monthly payments over an fi rm DBRS in London. which might cause increasing finan- resident customers), and we reprimanded by the Danish last year. Such expansion may bring ad- agreed period. At the end of the con- Car fi nance grew at an average rate of cial distress. And the BoE is scheduled have since then terminated all regulator for failing to comply ditional risk in the event of an economic tract, the driver can opt to buy the car about 20% a year between 2012 and 2017 to report the results of stress tests on accounts in that portfolio,” he fully with existing anti-money downturn. at a price fi xed at the start of the deal, or and represented almost a third of the banks on November 28 that will in- said. laundering requirements. The “If the demand for new vehicles return the vehicle to the dealer. UK’s £198bn consumer credit market at clude the impact of falling used car Investors in Danske have so far Financial Supervisory Authority stalls, then the credit quality of car fi - Under the contracts for example, the end of April, according to the BoE. prices in 10% increments on capital appeared to be indiff erent to reported the bank to the police in nance companies deteriorate — that’s a new £24,000 BMW 1 Series 3-door Car manufacturers such as Volkswagen, and financial performance, according the revelations, and the bank’s March of last year. the transmission channel that could lead Sports Hatch can be financed with a BMW and Renault provide about £34bn to a July statement. shares were little changed in That followed an inspection to a wider shock for the industry,” said deposit of about £5,000 and regular of credit, indicating that traditional “A 10% drop is manageable and it’s Copenhagen trading yesterday. which revealed violations Philip Rush, chief economist at Hetero- payments of £209. With an upfront lenders, with £24bn of credit, have the already factored in those contracts,” This year, Danske has advanced of provisions regarding nomics in London. payment of £30,000, a customer could smaller slice of the market. Heteronomics’s Rush said. “However, about 17%, compared with about correspondent bank New car registrations in the UK, Eu- drive away with a 200,000-pound “The banks could be aff ected indi- if prices fall below that, they will fall 10% in the Bloomberg index of relationships, including a failure rope’s second-largest market, tumbled Lamborghini Huracan, paying about rectly if the non-banks drive down pric- a lot of quicker and there could be the European financial stocks. to comply with a 2012 order 9.3% in September on the back of un- £1,500 to £1,800 a month. But with es and terms in the car fi nance market,” same phenomena seen in US during the Danske said last month it was from the agency, according to a certainty over Brexit and concerns about PCPs, the lender stands to lose if the said Tomasz Walkowicz, vice president subprime crisis where people gave their expanding an internal probe into statement at the time. the pollution caused by diesel vehicles. car is returned at the end of the con- analyst, global fi nancial institutions houses key back instead of serving the Used car sales declined in the second tract and its second-hand value is group, at DBRS in London. debts as prices were collapsing.” Friday, October 13, 2017 GULF TIMES BUSINESS 130 new aircraft delivered globally in August: IATA

By Pratap John 6.2% higher than in the same month a The declines seen in the dollar this year and the Middle East. Industry-wide Chief Business Reporter year ago, the global trade body of airlines mean that the unadjusted yield series revenue passenger kilometres (RPKs) said. has exaggerated the upward trend in grew by 7.2% year-on-year in August, Storage activity made another positive underlying yields. Nonetheless, when IATA said, and noted 2017 is on course Some 130 new aircraft were delivered contribution to fleet growth: 115 aircraft measured in constant exchange rate to be another year of above trend RPK globally in August; a slight reduction from re-entered service from storage, but just terms, passenger yields in July posted growth. the 143 delivered in the same period last 96 were put into storage (compared to year-on-year growth for the second However, the recent easing in demand year, IATA’s latest report has shown. 154 last August). month in a row (albeit modest, 0.1%). drivers suggests that passenger traff ic All told, 43 fewer aircraft were delivered in The turnaround in the long-standing According to IATA, the “stronger global will continue to trend upwards at a more the first eight months of 2017, compared downward trend in passenger yields has trade backdrop” has helped to support moderate pace into 2018 than what was to the same period a year ago (987 versus continued in August, IATA said. premium passenger demand growth so seen in the recent past. 1,030), IATA said in its latest “Airlines “As we have noted before, this reflects far in 2017, particularly on markets to, Meanwhile, global freight volumes posted financial monitor”. a number of factors, including a strong from and within the key manufacturing double-digit annual growth for the fifth IATA flags fly above the venue of a symposium in Dublin last year. All The number of available seats in the demand backdrop, helped by a pick-up region of Asia. time in six months in August (12.1%). told, 43 fewer aircraft were delivered in the first eight months of 2017, global airline fleet increased by 0.7% in in global economic conditions, as well as By contrast, premium demand has Indicators continue to suggest that that compared to the same period a year ago (987 versus 1,030), IATA said in August compared to the previous month. upward pressure on some key input costs, lagged behind economy in a number the cyclical upturn in air freight growth its latest “Airlines financial monitor”. This left the number of seats in service including labour,” IATA said. of cases, most notably between Europe may be nearing a peak, IATA added.

Lufthansa spreads wings by snapping up parts of failed HSBC names Flint for CEO Air Berlin

Reuters Frankfurt/Berlin as Tucker follows tradition Lufthansa reinforced its position as Germany’s largest airline yesterday by signing a €210mn Bloomberg ($249mn) deal to buy large parts of insolvent Air London Berlin. Lufthansa plans to use the Air Berlin assets to quickly expand its Eurowings budget business. SBC Holdings named John News of the deal pushed Lufthansa shares up Flint as its next chief execu- more than 3% to their highest level in nearly 17 Htive offi cer after new chair- years. man Mark Tucker opted not to break Air Berlin, which has struggled to turn a profit with tradition and tapped a long- over the last decade, filed for insolvency on serving insider to run Europe’s larg- August 15, and a government loan has kept its est bank. planes aloft while its administrator negotiated Flint, 49, currently head of retail with prospective buyers for parts of the business. banking and wealth management, Lufthansa has agreed to acquire Air Berlin’s HSBC’s largest division, will take Austrian leisure travel airline Niki, its LG Walter over from incumbent Stuart Gulliv- regional airline and 20 additional aircraft, Air er in February, according to a state- Berlin said in a statement. ment yesterday. He joined the bank’s “This contract provides new opportunities for management training programme in jobs for a large part of our workforce. But we can 1989 and rose through the ranks of only really breathe again when the EU Commis- its Asian trading fl oor before return- sion approves the deal,” Air Berlin chief executive ing to Europe 13 years ago to take on Thomas Winkelmann said. senior roles spanning the consumer Lufthansa CEO Carsten Spohr said earlier he and investment banking sides of the expected the European Union to approve the business. He’s been treasurer, depu- transaction by the end of 2017. ty head of markets, chief of staff and However, Ryanair, which has previously called head of strategy. the talks a “stitch-up”, said it would be referring “He’s worked in all our main mar- the matter to the EU competition authority in due kets, he’s worked in many of the course. group’s key roles, he’s been involved Andreas Mundt, head of the German cartel off ice, in HSBC through critical stages of said the Commission would take a close look at development through the fi nancial the deal and that the German authorities would crisis,” Tucker said in a phone inter- follow the process closely. view with Bloomberg. “He has a vast Talks to sell some of Air Berlin’s remaining assets amount of experience and exposure. to Britain’s easyJet and other bidders are continu- He’s got a very good track record of ing, Air Berlin said, without providing details. building high performing teams.” EasyJet, which has a base at Berlin’s Schoenefeld By picking a 28-year veteran, airport, has been discussing acquiring 27 to 30 Tucker, himself an HSBC outsid- planes. er who replaced Douglas Flint as Air Berlin previously said others, such as Thomas chairman on October 1, has bowed Cook’s Condor, could pick up some parts of the to the lender’s tradition of spurning business. CEO candidates without a lengthy EasyJet declined to comment on the progress of history at the fi rm. Tucker also con- Flint, 49, currently head of retail banking and wealth management, HSBC’s largest division, will take over from incumbent Stuart Gulliver in February, talks yesterday. sidered external candidates, includ- according to a statement yesterday. Lufthansa CEO Spohr told a German paper earlier ing Peter Hancock, the former boss that his airline would be investing around €1.5bn of American International Group, be focusing on organic growth and emphasised the breadth of his expe- Corp fi nanced trade across the Brit- double-digit return on equity, con- in total as a result of the Air Berlin deal. Bloomberg News has reported. capital generation while continuing rience at HSBC, including his abil- ish Empire. Flint helped oversee a sidered the bare minimum in prof- That sum includes investment in new planes, for Flint will take over a London- to contain costs and risk-weighted ity to handle egos at the investment relaunch of the international man- itability by investors. Sam Laidlaw, which the board freed up 1bn euros of funds last based bank focused on Asia that assets.” bank as a former trader, according ager program, people with knowl- the former head of HSBC’s board month, the purchase price and the costs of taking may be starting to grow again af- HSBC had drawn every one of its to people familiar with his think- edge of the program said. It seasons nomination committee, said ear- on new staff . ter fi ve years of declining revenue. previous 21 top executives from its ing. He also placed the importance promising young executives with lier this year that the new chairman Air Berlin, Germany’s second largest carrier, will His predecessor spent much of his own ranks over its 152-year history, of preserving the bank’s culture at global postings that often turn into “doesn’t have patience for a lot of cease operating flights this month, capping a tenure shrinking HSBC’s vast glo- according to the bank’s records. the center of his pitch, arguing that lengthy, civil-service type tenures, time-wasting.” turbulent summer for European carriers. bal network, exiting businesses Flint and other internal candidates another newcomer beside Tucker such as Flint’s own. By announcing a successor quick- Italy’s national airline Alitalia is in administration and countries and enduring several had sought to persuade Tucker, the would represent a level of change Other potential internal can- ly — Tucker only joined the bank and and seeking investors too, British leisure airline costly misconduct scandals. The 59-year-old former CEO of Hong and disruption to the fi rm’s that didates included Samir Assaf, the moved to London in September — Monarch collapsed at the start of this month. new chief’s tasks will likely include Kong-based insurer AIA Group, could derail recent progress, they head of the investment bank; Anto- the chairman has avoided a repeat Lufthansa’s Spohr said yesterday while he was improving the bank’s technology, that the recent stock rally and signs said. nio Simoes, who runs the bank’s UK of the boardroom battle that led to not interested in the Italian carrier in its current continuing Gulliver’s “pivot to Asia” of revived revenue growth justifi ed “Flint is a veteran in the bank,” and European regional operations; Gulliver succeeding Michael Ge- shape he would be interested in talks to create a and $100bn of investment in China’s maintaining continuity with the said Luca Evangelisti, a credit ana- global head of banking Matthew oghegan six years ago. Hong Kong new Alitalia. Pearl River Delta region, and grow- current management team and its lyst in London with Jupiter As- Westerman and Finance Director tycoons who were both clients and Shares in Lufthansa were up 2.8% at €25.25, the ing the asset-management unit. three-year-old strategy. set Management Ltd, which owns Iain Mackay, people familiar with shareholders in the bank, such as top gainer in Germany’s DAX market index by “Back in 2011, HSBC was looking Flint will receive a potential pay HSBC bonds. “The appointment the matter have said. billionaire Li Ka-shing, intervened 1505 GMT. at trimming its balance sheet with package of £9.7mn ($12.3mn), in- shouldn’t come as a big surprise to The Portsmouth Polytechnic eco- to ensure an internal successor was Analysts at Bernstein Research raised their rat- disposals and reshaping a number cluding a base salary of £1.2mn, a the market.” nomics graduate was born in York- picked when news leaked that ex- ing on Lufthansa’s shares to “outperform” from of regions while also handling liti- “fi xed-pay allowance” of £1.7mn, The shares were little changed at shire, is married with two children ternal candidates were being con- “market-perform”, saying they expected a deal gation and investigations,” said Gil- and bonuses that could reach 750.7 pence at 12:17pm in London and has given few interviews in his sidered, according to reports at the with Air Berlin to add around €70 to €90mn to das Surry, who helps manage €1.2bn £6.4mn, HSBC said. The lender trading, valuing the bank at £150bn. period at HSBC. time. annual operating profits at Eurowings in the ($1.4bn) of fi nancial-sector debt at boosted Gulliver’s potential pay to HSBC is steeped in tradition, His relationship with Tucker will Flint’s “experience enables him medium term. Axiom Alternative Investments in the same amount earlier this year. stemming from the days when the depend on how quickly he can gal- to know better than anyone what London. “Under Flint, the bank will The incoming CEO would have Hongkong and Shanghai Banking vanise revenue growth and deliver a HSBC is capable of,” Tucker said. ‘Tax the rich’ is IMF’s unlikely new mantra in fi ght with Trump

Bloomberg code in decades. The Tax Policy Center, Trump’s proposed cuts will leave the Trump campaigned on a pledge to Trump is a real-estate billionaire, can address gaps in social programs. Washington echoing most independent analysts, median American worker better off . stand up for workers in regions hurt by and while he took the occasional pot- The IMF’s tilt toward redistribution says it will benefi t high-earners most. The Treasury questioned the Fund’s globalisation, and he’s argued that the shot at Wall Street, inequality wasn’t may ease frictions with some gov- As it hosts the world’s fi nancial lead- forecasting too, suggesting the predic- lower tax rates will boost productiv- central to his electoral pitch. The presi- ernments — but not, evidently, with he International Monetary Fund ers in Washington this week, the IMF tion for US growth should have factored ity, employment and wages. Democrats dential candidate who played that note Trump’s. And that’s a potential prob- spent decades telling the world’s has been celebrating a global recovery in Trump’s tax plans, and been higher have dismissed such claims as trickle- loudest was Bernie Sanders. The Ver- lem for the Fund. Tgovernments how to run their that’s gathering pace after the crash as a result. down economics. mont senator railed against the out- The US was the driving force behind economies on an American-inspired of 2008. But old economic certain- The president’s proposals include But Trump’s proposals have also split sized infl uence of the wealthy, in a the IMF’s creation after World War II to blueprint that became known as the ties — the kind that once prevailed at lower charges on Corps, and a cut in the the Republican coalition that helped elect campaign that took the self-proclaimed oversee the international currency sys- Washington Consensus. such gatherings — are proving harder top rate of income taxes — though Con- him. Gary Cohn, the president’s chief socialist much closer to the Democratic tem. But Trump has expressed skep- There wasn’t much consensus be- to put back together, and new concerns gress will be given an option to make economic adviser, is among the plan’s nomination than pundits had expected. ticism about institutions like Nato, tween the Fund and the White House are forcing their way onto the agenda. the wealthiest Americans pay more. main architects. The former Goldman Sanders also took regular shots at the which he sees as obsolete holdouts on Wednesday, as they got embroiled in The Fund has been rowing back from Trump said the changes will deliver a Sachs executive called the chance to work kind of economic orthodoxies that the from that era — and about globaliza- an unusually public disagreement over many of the policy prescriptions it used $4,000 pay raise for the typical house- on tax reform with Trump a “once-in-a- IMF once routinely endorsed. tion in general. His election left many President Donald Trump’s tax plans. to hand out. Meanwhile, in developed hold. In a speech outlining his tax plans lifetime opportunity.” But the Fund’s thinking has changed. analysts wondering what was in store The fl ashpoint was a new IMF pa- economies, voters have expressed frus- in Pennsylvania late Wednesday, he On the opposing wing is Steve Ban- It’s suggested that capital controls for the IMF. per arguing that developed nations can tration with what they perceive to be said that the elimination of tax-breaks non, who helped Trump’s election have their uses. It’s acknowledged On Wednesday, White House budget share prosperity more evenly, with- the unequally shared fruits of free trade and loopholes will make it “a middle- campaign tap into populist unrest. He’s that austerity in Europe was based on director Mick Mulvaney said the Fund out sacrifi cing growth, by shifting and open borders — most dramatically class bill” whose benefi ts don’t go to backed a higher rate for the rich. Ban- assumptions about fi scal multipli- was among the skeptics that are “heav- the income-tax burden onto the rich. in the US, by electing Trump. the highest earners. non is gone from the White House, ers that turned out to be wrong. In a ily invested” in the failure of Trump’s “Excessive inequality can erode social His administration took immediate “I’ve had rich friends of mine come ousted after a few months as an adviser much-cited paper last year, it argued tax plans. And the Treasury offi cial cohesion, lead to political polarisa- aim at the Fund’s analysis. up to me and say, ‘Donald, you’re doing there, but his continued sway over the that the package of policies labelled as said the IMF and its sister institution, tion, and ultimately lower economic A senior Treasury offi cial disputed this tax plan, we don’t want anything’,” party was apparent last month when “neoliberalism” may have been “over- the World Bank, should focus on using growth,” it said. The study came out as the conclusion that less-progressive Trump said. “So many people have come his nominee defeated a Trump-en- sold.” On Wednesday, it said that re- their resources eff ectively. Trump was hitting the road to promote tax rates could slow growth and make up to me and said, ‘give it to the middle dorsed candidate in Senate primaries in directing resources for education and The biggest contributor to those re- the biggest overhaul of America’s tax inequality worse. The offi cial said class, give it to people that need it’.” Alabama. health-care from the rich to the poor sources is the US government.