POLICY FOCUS | Page 2 EU TARIFFS | Page 15 Investors on Harley to shift Turkish lira’s some output relief rally out of the US

Tuesday, June 26, 2018 Shawwal 12, 1439 AH

INDUSTRY EXPERTS’ VIEW: Page 16 GULF TIMES Qatar IT infrastructure makes it ideal place for BUSINESS digital entrepreneurship

Qatar Chamber to hold seminars on Qatar stays stronger ATA Carnet in July The Qatar Chamber has announced that it will organise next month a series of introductory seminars and workshops on how to use the ATA Carnet to raise awareness on the system, which will be implemented in the country from August 1. The ATA Carnet is an international customs document despite blockade, that allows duty-free and tax-free temporary import and export of goods for up to one year. The system is applied to import-export goods that will return to the country of origin within the period, which is approved by customs authorities. The chamber said it has completed its preparations for the implementation of the system, in co-ordination with the General Authority of Customs after Qatar’s says Doha Bank CEO off icial accession to the World ATA Carnet Council (WATAC) on May 9. atar’s robust regulatory framework and ef- nesses in Qatar will provide comfort to the private The chamber has called upon all companies to fective supervision has helped ensure the sector and foreign investors. register to attend these seminars and workshops via Qresilience of the country’s fi nancial system, In February 2017, Qatar issued a new law on arbi- its website. according to Doha Bank CEO Dr R Seetharaman. tration – inspired by the UNCITRAL Model Law, an The ATA Carnet seminars and workshops, which will Seetharaman, who underscored Qatar’s sustain- international template for law on arbitration. be held at the chamber’s headquarters, will focus ability initiatives during a workshop for the EU “In terms of food security, Qatar now has many on benefits of using the system and mechanisms of Business School students in Switzerland, also par- local companies that are supporting the country, implementation in Qatar. ticipated in the school’s commencement ceremo- and it can develop these businesses further and The chamber said the ATA Carnet enables nies held in Geneva and in Munich, Germany. boost its food production to provide both locally marketing representatives, exhibition participants, Citing an IMF report, Seetharaman said, Qatar’s and internationally,” Seetharaman said. and businessmen to make advance customs banking system “needs no further support” from Last year, Qatar waived entry visa requirements arrangements at a predetermined cost, visit several the central bank and sovereign wealth fund as the for citizens from 80 countries and during the same countries consecutively, and use the ATA Carnet for decline in non-resident liabilities of lenders have period, the country inaugurated the Hamad Port, several trips during its one-year validity. subsided. which will provide “a golden opportunity” for the The system facilitates and simplifies customs According to Seetharaman, the International private sector and Qatari businessmen to activate procedures across borders for exporters and Monetary Fund said the Qatar Central Bank is fur- their business and promote the import and export importers using one document to complete all ther strengthening its fi nancial sector surveillance of various commodities, Seetharaman said. customs procedures in the 77 countries that apply the to detect “in a timely fashion” emerging pressures, “The Qatari market is expected to become self- ATA Carnet system. including those related to liquidity, real estate sec- suffi cient in dairy products. Qatar has witnessed It includes all types of goods and equipment, tor, the impact of US monetary policy normalisa- initiatives such as Single Window System and the including commercial samples, professional tion, and the ongoing Gulf crisis. ‘Own your Factory in Qatar’,” he said. equipment, and goods for fairs, exhibitions, and He said in the recent IMF Outlook, Qatar’s GDP is Seetharaman said Qatar’s landmark residency entertainment events on condition that they will be set to grow 2.6% this year. plan “is a welcome social and economic reform,” returned to the country of origin within the period Qatar will raise LNG production by 30% to adding that Qatar’s 2018 budget allocations for which is approved by customs authorities. 100mn tonnes a year within fi ve to seven years after health, education, and transportation reached The chamber said it is the national guarantor for the lifting a moratorium on gas development earlier in QR83.5bn or 41% of total expenditure. application of the ATA Carnet as The Convention on 2017. “The transportation and other infrastructure Temporary Admission (Istanbul Convention) requires Qatar is ranked 25th in the Global Competitive- projects were assigned the largest share in the 2018 the provision of a national guarantor for the system. ness Report 2017-2018, he noted. budget with allocations of QR42.0bn, 21% of the The ATA Carnet doesn’t only reduce costs, but it Qatar’s lending growth is close to 3% in Q1 2018, total expenditure. also facilitates customs clearance in both Qatar while the country’s foreign exchange reserves with The sports sector and 2022 FIFA World Cup and foreign countries and is valid on multiple the QCB remained broadly stable at around $39.8bn projects amounted to a total allocation of QR11.2bn. trips for up to one year. It covers a broad range in April 2018, which is more than six months of its Qatar raised $12bn in a bond issue in April 2018, of goods, including commercial samples such as import cover, he said. the largest placement by an emerging market sov- jewellery, leather products, trade show booths and Seetharaman also highlighted that Qatar’s re- ereign this year. requirements, professional equipment, which includes serves are more than twice its GDP, and in terms “It is one year since the economic blockade of broadcast equipment, audio and video equipment, of fi nancial stability, Qatar is “strong, stable, and Qatar. However, Qatar has demonstrated its sus- cinematography, musical instruments, clothing, functional.” tainability through various reforms. Recently rat- theatre objects, seminar and meeting equipment, Amid the economic blockade, Seetharaman said, ing agencies Fitch recognised Qatari sovereign’s display and test equipment, repair and maintenance Qatar has emerged strong and has brought vari- outlook to ‘stable’ from ‘negative,’ an affi rmation of equipment, and equipment for surgeons, ous reforms to transform itself into a self-reliant the country’s long-term IDR at ‘AA-‘ and refl ects archaeologists, entertainers, lecturers, and athletes, economy. Fitch’s view that Qatar has successfully managed Dr Seetharaman addressing a workshop for EU Business School students among others. “A new law for Public Private Partnership busi- the fallout from the blockade,” Seetharaman said. in Switzerland.

Summer for gas market? Asia LNG prices surge like it’s winter Global gas king crowned as China

Bloomberg been unusually strong for the season. London “It is a rarity for summer,” analysts at Russian bank VTB Capital, led by tops Japan amid clean air drive Dmitry Loukashov, said in an e-mailed Asian energy buyers are getting a research note. “We believe it is likely chilly memory of the winter in the to have been driven by tightened Bloomberg pan’s imports during that period middle of a hot summer. supply, as a result of maintenance at Singapore total 34.5mn tonnes, according That is, at least when it comes to US and Australian plants.” to its Ministry of Finance. China liquefied natural gas purchases. LNG While buyers in Asia will have to bought more than Japan in some prices in Asia last week hit $11 per pay more to meet their peak air hina’s drive for cleaner months last year, but this is the million British thermal units, a level conditioning demand, that’s good skies has pushed it past Ja- fi rst time its cumulative imports last seen in the middle of January, news for sellers of LNG such as Cpan to become the world’s during a year have been higher. according to prices for the fuel in Novatek. If prices in Asia remain at largest buyer of natural gas, a mile- The nation’s soaring natural gas Singapore. $11 per million British thermal units, stone for a nation that wasn’t even demand has been a boon for the Usually, prices for the fuel taper along Novatek’s Yamal LNG venture would importing the fuel 15 years ago. global liquefi ed natural gas mar- with demand during the summer, generate an additional $200mn The development underscores ket. China’s on track to become when there’s little need for home of earnings before interest, taxes, how rapidly China is boosting the world’s biggest LNG importer heating in the northern hemisphere. depreciation and amortisation in natural gas use at the expense of by 2021 as growth in domestic This year, prices and shipments have 2018, VTB said. dirtier fuels like oil and coal to production and pipelines won’t be meet President Xi Jinping’s pollu- able to keep pace with needs, ana- LNG prices tion-cutting goals. Governments, lysts at JPMorgan Chase & Co said in Asia especially in the country’s north- in a report on June 15. last week ern regions, have forced millions LNG became the biggest source hit $11 per of homes and factories to replace of China’s overseas gas supply million coal boilers with gas burners. most months over the past year. British China imported 7.41mn met- The nation imported 4.15mn thermal ric tonnes of natural gas through tonnes of the fuel via tanker last units, a pipelines and seaborne tankers in month, compared with 3.27mn level last May, according to data released tonnes by pipeline, Saturday’s seen in the on Saturday by the General Ad- data show. Piped gas supplies middle of ministration of Customs. That could get a boost late next year January puts it at 34.9mn tonnes for the when Russia starts up its Power of fi rst fi ve months of the year. Ja- Siberia pipeline. Gulf Times 2 Tuesday, June 26, 2018 BUSINESS US sanctions on Iran oil stir up a corner of market

Bloomberg from elsewhere. SK Innovation Co, the industry consultant FGE said last are completed, people with knowledge tripled its naphtha purchases to four- metric tonnes over Japanese bench- Singapore Asian country’s top processor, Hanwha month. of the matter said earlier this month. teen cargoes in July from fi ve in Febru- mark prices for fi rst-half June car- Total Petrochemical Co and Hyundai “The South Koreans are currently Meanwhile, they haven’t bought sup- ary, according to traders who asked not goes bought in April, while the most- Oilbank Co have all rushed to procure faced with tighter supplies of con- plies for July. to be identifi ed and data compiled by recently bought August cargoes were ff ects of the US decision to renew supply for the next two months. densate from other sources outside What they are buying is naphtha, Bloomberg. Meanwhile, Hyundai Oil- purchased at a $17 premium. sanctions on Opec member Iran While the US and buyers of Iranian Iran, and this has forced them to turn and a lot of it. The oil product is key bank was said to have bought a cargo South Korea must source 7mn bar- Eare already spreading beyond the crude are yet to decide on potential to naphtha as an alternative and re- to the production of petrochemicals for August when it usually doesn’t buy rels of alternative condensate or 3.5mn world of crude to some corners of the limits to purchases from the Mid- placement to South Pars cargoes,” Den used to make a wide range of consumer any of the product. SK bought at least barrels of naphtha next month if it oil market. dle East nation, South Korea’s pre- Syahril, an analyst at FGE in Singapore, products. While normally it would eight cargoes for July and August de- needs to replace Iranian South Pars Refi ners in South Korea, a US ally as emptive move signals the widespread said on Wednesday. have been produced by feeding con- livery. supply, according to a June 19 report well as one of Iran’s largest custom- shifts in trading strategies that the Refi ners in South Korea will make a densate into units known as splitters, Heavy full-range naphtha pre- from Energy Aspects Ltd Increased ers, are shunning a type of oil known American sanctions may spur in the fi nal decision on whether to buy Iran’s the decision to hold off purchases of miums have risen since Trump last naphtha buying activity in July by as condensate from Iran to feed the oil market. If condensate cargoes are South Pars condensate for the third South Pars supply is spurring compa- month announced that sanctions South Korean refi ners will likely con- nation’s petrochemical plants, and in- restricted by the measures, that would quarter only after negotiations be- nies to buy the fuel directly from other against Iran will be reimposed, ac- tinue in August, said Nevyn Nah, an stead buying unusually large amounts be a “disaster” for Asia as importers in tween their government and US Presi- suppliers. cording to data compiled by Bloomb- analyst at the industry consultant in of a processed fuel known as naphtha the region would be aff ected the most, dent Donald Trump’s administration South Korea’s Hanwha Total almost erg. Hanwha Total paid about $9 a Singapore. Here’s what investors say about Erdogan adviser says Turkish lira’s rally after polls central bank independence Bloomberg Bangkok/Singapore/Dubai ‘fundamental’ The Turkish lira’s attempt at a rally after Recep Tayyip Erdogan’s election victory proved Reuters fleeting as concerns about the independence Ankara of the nation’s central bank and policy direction prevailed. The currency erased gains of as much as 3.1% as he Turkish central bank’s mounting trade tension between the US and China independence is “funda- weighed on sentiment. Stocks and bonds also Tmental” and it will act ac- reversed their advance. cording to market needs and re- The lira’s “trajectory will depend on how the alities, President Recep Tayyip macroeconomic policies develop post these Erdogan’s chief economic adviser elections, including the question about the central Cemil Ertem said yesterday, a day bank’s independence,” Sue Trinh, the head of Asia after presidential elections. foreign exchange strategy at Royal Bank of Canada Erdogan won sweeping new ex- in Hong Kong, wrote in a report. ecutive powers yesterday after his Capital fled this quarter as Erdogan insisted victory in landmark elections that against economic orthodoxy that interest also saw his AK Party and its na- rates need to be lowered, despite double-digit tionalist allies secure a majority in inflation. The lira has slumped 19% this year, the parliament. worst performer among developing peers after Investors have been concerned Argentina’s peso. that Erdogan, a self-described Still, the cost to hedge against fluctuations in the “enemy of interest rates”, would lira over a one-week period fell by the most since exert more pressure on the central at least 2004, and options traders, who were more bank to lower interest rates, fol- bearish on the lira than any other emerging-market lowing the election. currency last week, are now more pessimistic on “No one should doubt that the South Africa’s rand and Russia’s rouble, according (central bank) will take steps ac- to one-month risk reversals. cording to market needs and re- Here’s a roundup of what investors and analysts alities,” Ertem told Reuters in an said: interview yesterday. Central bank independence Offi cials have promised Takeshi Yokouchi, (senior fund manager at to support the tight Daiwa SB Investments Ltd) monetary policy with new „ Market participants are concerned about the arrangements in fi scal policy possibility that pressure will increase on the central bank to have lower interest rates; the The central bank has hiked in- central bank asserted its independence during the terest rates by 500 basis points election campaign and managed to halt declines since late April in an eff ort to put in the lira, but there’s uncertainty whether such a a fl oor under the ailing lira, which commitment would continue after this election. declined as much as 20% against „ Inflation has been accelerating with the weaker A Turkish 100 lira banknote is seen on top of 10 lira notes in this illustration picture taken in Istanbul (file). The lira has slumped 19% this year, the worst the dollar this year. lira, while the country has a current-account deficit, performer among developing peers after Argentina’s peso. Offi cials have also promised to and with the persistent weak sentiment toward support the tight monetary policy emerging markets, the lira and Turkish assets will „ The president seems to have promised to force structural deep reforms are now unlikely to which we do not expect to be forthcoming.” with new arrangements in fi scal probably remain among the most vulnerable to down interest rates during his campaign speeches, materialise anytime soon. „ A test of the June low around 4.45-4.47 is policy. any selloff s. which suggests that the central bank’s monetary „ The company remains neutral in Turkish local possible, expect this to be the limit of any rally in Ertem said steps to ensure the „ Yokouchi said he is keeping an underweight policy independence remains under pressure. markets but hold a small overweight in Turkish the absence of any fundamental changes. harmony between fi scal and mon- position on Turkey in his portfolio. „ Societe Generale maintains its existing trade external credit, which is attractively priced relative ‘Guessing mode’ etary policies would be taken more Unorthodox politics recommendation of short lira against South to EM peers. decisively. Africa’s rand because of likely divergence in New macro policy framework needed Commerzbank note to clients “We will take strong steps in Mitul Kotecha (senior emerging markets policies and economic performance between the „ Erdogan will feel empowered with his renewed budget discipline on the side of strategist at TD Securities) two countries. Morgan Stanley’s note to clients. mandate and is likely to take more control of budget income and spending,” he „ Market values “stability and continuity” more „ It retains the forecasts of dollar against lira at „ While there could be a short-term recovery as economic policies more directly. We should expect said, adding that the government than uncertainty; lira could rise to 4.55-4.60 per 5.18 by year-end and 5.5 by the middle of next year. political uncertainty is removed after Sunday’s a combination of expansionary monetary and will focus on economic targets and dollar. Challenging outlook vote, a new macro policy framework is required for fiscal policies, which will aim to boost growth reforms with the elections out of „ However, a change toward economic and sustained gains. further. the way. political orthodoxy is very unlikely to follow Paul Greer (fund manager for „ “The election result suggests status quo, which „ There’s a distinct possibility the average interest Investors have expressed con- Erdogan’s victory, so don’t expect TRY gains to be emerging-market debt at Fidelity in recent years has not produced positive results rate ends up lower than it is now. It’s quite likely cern about overheating of Turkey’s sustained; the lira is likely to eventually resume its International) for asset prices,” analysts including Ercan Erguzel Erdogan will push for cheap credit for smaller, economy. negative trajectory. „ Turkish markets should enjoy a “small relief say. domestic companies via the state banks. The government introduced in- Fiscal pressure rally” given that the political uncertainty has now „ “External funding needs are large and „ The central bank will also be hesitant to raise centive packages and tax amnes- been removed. competition for global capital flows is intense. interest rates when the lira comes under pressure. ties to businesses and subsidies to Phoenix Kalen (emerging-markets strategist „ However, medium to long-term picture for Any recovery in local currency bonds or FX would The FX market will re-enter a “guessing mode” certain sectors in the recent years at Societe Generale) Turkey remains challenging and the much required require a more benign external environment, about the central bank’s ability to hike rates. to stimulate economy and boost growth.

Abraaj investment unit co-CEOs quit board as firm restructures Iran rial plunges to new

Bloomberg employees of the group and are fully London/London committed to supporting the joint provisional liquidators in an orderly lows as US sanctions loom restructuring process and ensuring the sale Abraaj Group, the buyout firm that’s of Abraaj’s sub-Saharan Africa, Turkey, North undergoing a court-supervised restructuring, Africa and Latin America funds management Reuters culties at local banks and heavy demand for said two top executives of its investment business to Colony Capital,” according Dubai dollars among Iranians who fear the pullout management unit resigned from the board. to the statement. A court in the Cayman by Washington from the nuclear deal and Omar Lodhi and Selcuk Yorgancioglu quit as Islands last week appointed provisional renewed US sanctions against Tehran could directors of Abraaj Investment Management liquidators for the holdings and investment he Iranian rial plunged to a record shrink the country’s exports of oil and other Ltd but will remain in their roles as co-chief management units of Abraaj, which was low against the US dollar on the goods. executive off icers of the unit, the Dubai- once one of the developing world’s most Tunoffi cial market on Sunday, con- Some of the sanctions take eff ect after a based company said. Lodhi and Yorgancioglu influential buyout firms. The move comes tinuing its slide amid fears of returning US 90-day “wind-down” period ending on Au- were appointed co-CEOs in February after after investors, including the Bill & Melinda sanctions after President Donald Trump in gust 6, and the rest, most notably on the pe- Abraaj founder Arif Naqvi stepped down Gates Foundation, commissioned an audit May withdrew from a deal on Tehran’s nu- troleum sector, after a 180-day “wind-down amid allegations of misused funds. to investigate the alleged mismanagement clear programme. period” ending on November 4. Lodhi and Yorgancioglu will “remain of funds. The dollar was being off ered for as much The rial has weakened from around as 87,000 rials, compared to around 75,500 65,000 rials just before Trump’s announce- A court in on Thursday, the last trading day before ment of the US withdrawal in early May, and the Cayman Iran’s weekend, according to foreign ex- from 42,890 at the end of last year — a free- Islands last change website Bonbast.com, which tracks fall that threatens to boost infl ation, hurt week appointed the unoffi cial market. living standards and reduce the ability of provisional Iran’s semi-offi cial news agency ISNA Iranians to travel abroad. liquidators for said the dollar had climbed to 87,000 rials on In an eff ort to halt the slide, Iranian au- the holdings Sunday from about 74,000 before the week- thorities announced in April they were uni- A money changer poses with a US dollar (right) and and investment end on the black market, and several Iranian fying the dollar’s offi cial and black market Iranian rials at a currency exchange shop in Tehran’s management websites carried similar reports. exchange rates at a single level of 42,000, business district (file). The Iranian rial plunged to units of Abraaj The currency has been sliding for months and banning any trade at other rates under a record low against the US dollar on the unoff icial because of a weak economy, fi nancial diffi - the threat of arrest. market on Sunday. Gulf Times Tuesday, June 26, 2018 3 BUSINESS

Sensex declines; rupee Asian bourses turn bearish weakens

Bloomberg, Reuters Mumbai as trade war fears escalate India’s benchmark equity index declined yesterday as global AFP risk aversion kept the market Hong Kong volatile ahead of the expiry of monthly derivatives contracts later this week. sian markets fell yesterday as The S&P BSE Sensex fell fears of a global trade war con- 0.6% to 35,470.35 at the close in Atinue to dog investors, with Mumbai, with Tata Motors and Donald Trump threatening fresh tariff s ICICI Bank the worst perform- on European cars and reports he is con- ers. A gauge of stock-market sidering curbs on Chinese investment volatility rose to the highest in the US. level in five weeks. Seventeen There was little sign of relief after of 19 industry sub- indexes equities suff ered a pummelling last compiled by BSE declined, led week in response to tit-for-tat warn- by measures of industrials and ings by Beijing and Washington, which oil & gas companies. has fuelled concerns about the poten- “Global uncertainty contin- tial damage to the world economy. ues to impact India,” said A K The uncertainty overshadowed a Prabhakar, head of research at modest increase in oil output agreed IDBI Capital Market Services. by Opec and Russia and Chinese easing “This being the week of deriva- measures. tive contract expiry, we’re likely Tokyo ended 0.8% lower, while Hong to see rangebound trade.” De- Kong and Shanghai were both off more rivatives contracts expire on the than 1%. Sydney lost 0.2% and Singa- last Thursday of every month pore shed 0.8%. in India. Taipei and Manila were both 1% low- Recent selling in NSE Nifty er, while Seoul and Wellington barely 50 Index 10,800 puts indicate moved. upside can be expected if the In early European trade London fell measure holds above 10,800 0.7 %, while Paris and Frankfurt each before the expiry, according to shed 0.6%. Concerns the tariff spat ICICI Securities. could turn into a full-blown trade war The US Treasury Depart- were stoked Monday following re- ment is planning to heighten ports that the Treasury Department is scrutiny of Chinese investments looking at an emergency law beefi ng in sensitive US industries under up scrutiny of investment by Chinese an emergency law, putting fi rms in sensitive US industries. Washington’s trade war with Treasury Secretary Steven Mnuchin Traders monitor transactions at the Hong Kong Stock Exchange. The Hang Seng closed down 1.3% to 28,961.39 points yesterday. Beijing on a potentially irrevers- is expected to push the plan this week, ible course. Under the plan, the Bloomberg News reported. just after the bloc imposed levies on US The People’s Bank of China on Sun- mostly up after Opec agreed to increase lira, which had lost some 20% in val- White House would declare “This one could well result in an products, including bourbon, jeans and day said it would lower the amount of oil production by around a million bar- ue against the dollar this year, surged China’s investment in US com- escalating trade war,” Lee Ferridge, a motorcycles. cash lenders must keep in reserve as it rels a day from July. about 3% after President Recep Tayyip panies involved in technologies macro strategist at State Street Corp, Still, late Sunday he tweeted: “The looks to soothe investors worried about But offi cials admitted actual output Erdogan scored a decisive election vic- such as new-energy vehicles, told Bloomberg TV.”Volatility is going United States is insisting that all coun- a trade confl agration. would likely be much lower as some tory, soothing worries of a prolonged robotics and aerospace a threat to continue to rise from here.” tries that have placed artifi cial Trade The cut — which will free up more countries struggle to lift production. period of political uncertainty. to economic and national secu- While some observers are saying Barriers and Tariff s on goods going into than $100bn for banks — is set to come Brent jumped more than 3% on Fri- In Tokyo, the Nikkei 225 closed rity, according to eight people Trump’s moves are part of a negoti- their country, remove those Barriers & into eff ect on July 5, the day before new day while WTI climbed more than 4%, down 0.8% to 22,338.15 points; Hong familiar with the plans. ating tactic, he has shown no sign of Tariff s or be met with more than Reci- US tariff s are due to be imposed on Chi- though both contracts dipped yester- Kong — Hang Seng ended down 1.3% Meanwhile the rupee traded backing down and on Friday threatened procity by the USA. nese imports worth $34bn. day on concerns about the impact a to 28,961.39 points and Shanghai lower against the US dollar to impose a 20% tariff on cars imported Trade must be fair and no longer a While broad markets are taking an- trade war would have on demand. — Composite fell 1.1% to 2,859.34 yesterday, tracking the losses in from the European Union. That came one way street!” other hit, energy fi rms in Asia were On currency markets, the Turkish points yesterday. Asian currencies amid worsen- ing US-China trade tensions. The rupee was trading at 68.13 a dollar, down 0.43% from its Friday’s close of Morgan Stanley-backed fund to 67.83. It opened at 67.99 a dollar and touched a high In emerging markets rout, lend more in China this year and a low of 67.90 and 68.18 respectively. Bloomberg but there’s even less availability.” US treasury department is Hong Kong Abax joins others such as Bain Capital Credit planning to heighten scru- S Korea bonds off er haven and SSG Capital, which raised funds last year tiny of Chinese investments in for so-called special situations lending in the sensitive US industries under China’s crackdown on shadow banking region. Such fundraising is happening at a an emergency law. Investors Bloomberg Bond investors are fi nding com- Recent data suggest growth in is leaving otherwise-healthy companies time when the Indian government is trying should short INR/IDR as the Kuala Lumpur fort in the nation’s slowing econ- Asia’s fourth-biggest economy starved of funding, says Abax Global Capital, to clean up banks’ balance sheets and China recent rally in the pair is incon- omy which gives the central bank is slowing. Industrial produc- which is looking to plug the gap. is allowing more companies to fail. Funds sistent with sustained outflows room to hold interest rates for tion contracted in fi ve of the past The manager of debt and private equity focused on private debt in Asia have raised from India’s asset markets, nvestors seeking cover from the longer. seven months through April while funds, which counts Morgan Stanley as $2bn this year, compared with $6.4bn for all while IDR has been undermined storm battering emerging mar- Add to that its AA-rating and a gauge of manufacturing activity a shareholder, aims to raise money from of 2017, according to data provider Preqin. by concern about rising reli- Ikets have found an unlikely ref- record foreign-exchange reserves, remains close to its lowest in more investors later this year and lend more At the same time, some of the main lenders gious tensions, said RBC Capital uge – South Korean bonds. and South Korea is the haven of than a year. in China, according to Michael Wang, to private companies in China have been in Markets in a note. While emerging markets are choice amid the emerging markets The central bank’s infl ation ex- managing partner and president. retreat. The 10-year bond yield was struggling with investor with- selloff and an escalating US-China pectation of 1.6% for this year re- Any such fundraising would likely exceed The nation’s bad debt managers had trading at 7.856% compared drawals, net purchases of South trade row. mains below its 2% target. $235mn, the size of Abax’s last US dollar expanded into such lending, but after the to its previous close of 7.820%. Korean debt have exceeded $14bn Global funds have pumped more All this has fuelled speculation fund, he says. chairman of one of them, China Huarong Bond yields and prices move in so far this quarter. That makes it than $26bn into South Korean policy makers will hold off on rais- The firm is among a handful of debt funds Asset Management Co, was put under opposite directions. the only developing Asian bond bonds this year, limiting the rise in ing interest rates for now, even as looking to profit as regulators crack down investigation for graft earlier this year, their So far this year, rupee has market outside of China where the yield on 10-year government the Federal Reserve presses ahead on China’s $10tn shadow banking industry. appetite to provide financing has faded, declined 6.24%, while foreign funds are still buying. notes to about 15 basis points. The with further tightening and other China is one of the few bright spots in the according to Wang. institutional investors have sold “South Korea is a high-grade bonds yielded around 2.6% Mon- Asian central banks follow suit. nascent private lending market in Asia, Wang, who is based in Hong Kong and $1.01bn in equity and $8.34bn market more protected from day. Investors have been unde- Governor Lee Ju-yeol said last where banks have dominated loans to flies to China weekly, said the firm sources in debt. speculative attacks and outflows terred even as the won sank to its week policy makers are more fo- companies. Worldwide, private debt has deals through its network, and through Asian currencies were trad- from emerging-market debt, and lowest since November. cused on growth and inflation been growing, and the size of assets under partners such as Morgan Stanley and China ing lower. South Korean won benefits from a flight to quality While a weaker currency could than potential capital outflows, management is on course to surpass $1tn Development Bank, which was an anchor lost 0.844%, China off shore during the current risk-off en- weigh on sentiment, the hedg- comments which were con- by 2020, according to the Alternative investor in the firm’s renminbi fund. 0.544%, China renminbi 0.426%, vironment,” said Bryan Carter, ing market does off er a premium strued by some analysts as hav- Credit Council. The firm typically lends to medium-sized Singapore dollar 0.250%, Tai- London-based head of emerging- to dollar investors using won basis ing a dovish tilt. “Chinese private businesses in general companies with earnings of $30mn or wan dollar 0.290%, Malaysian market debt at BNP Paribas As- swaps. Bank of Korea said yesterday aren’t supported by state-owned banks,” more, and targets internal rates of returns rinnggit 0.299%, Indonesian ru- set Management. “We do expect This should be an additional at- the economy recorded a slight said Wang at Hong Kong-headquartered of about 15% to 20%. It likes companies piah 0.480%, Thai baht 0.042%, inflows into South Korea to con- tractive factor for some investors, improvement in some parts of the Abax, which has provided dollar convertible with low leverage, and sectors such Philippines peso 0.236% and tinue, as underweight positions said Christopher Kushlis, emerg- country in the second quarter, debt financing to private-sector companies as health care, renewable energy and Hong Kong dollar 0.008. are covered and the market acts ing-market analyst at T Rowe Price while staying largely unchanged in in China. “Capital was scarce to begin with consumer, according to Wang. like a haven in the region.” International in London. other regions. Meituan fi les for Hong Kong IPO; aims to raise over $4bn

Reuters ing round last year. It is aiming for Competitors include food-delivery sovereign wealth fund GIC and state- Hong Kong/Shanghai a $60bn valuation with the IPO, platform Ele.me, backed by e-com- owned investment company Temasek though industry insiders said it may merce fi rm Alibaba Group Holding Holdings (Private), as well as the Can- have difficulty reaching that target Ltd, and leading ride-hailing fi rm Didi ada Pension Plan Investment Board. hina’s Meituan-Dianping, an as it is still money-losing and relies Chuxing, backed by Japan’s SoftBank Currently, chief executive Wang online food delivery-to-ticket- on a cash-burning business model to Group Corp. Xing owns 11.4% of the company, Cing services platform, is bring- boost growth. In its draft prospectus, which gave while Tencent owns 20.1% and Sequoia ing its sizeable initial public off ering The fi rm is likely to list in October, investors the fi rst detailed look at Capital 11.4%. (IPO) to Hong Kong, where it aims said the people, who declined to be its fi nancial health ahead of the IPO, Wang will remain controlling share- to raise over $4bn, three people with identifi ed as the information was not the company disclosed a 19bn yuan holder after the listing, the prospectus knowledge of the deal said. public. ($2.9bn) loss for 2017, steeper than in showed. The fi rm fi led plans late on Friday for Meituan-Dianping did not detail the previous two years. Being holders of Class A shares, the city’s second multibillion-dollar the amount of funds targeted or a Its adjusted net loss — which Wang and two other co-founders, tech fl oat this year after smartphone time frame. It declined to comment excludes the impact of fair value Mu Rongjun and Wang Huiwen, will maker Xiaomi Corp’s blockbuster IPO on its planned IPO when contacted changes of convertible redeemable be benefi ciaries of a weighted voting of up to $6.1bn. by Reuters. preferred shares and other items rights structure, or dual-class shares, Meituan-Dianping is also — after Founded in 2010 by serial entrepre- — was 2.85bn yuan, smaller than which give greater power to found- Xiaomi — the latest company with a neur Wang Xing, Meituan, likened to losses of 5.35bn yuan in 2016 and ing shareholders even with minority dual-class share structure to fi le for US discounting platform Groupon Inc, 5.91bn yuan in 2015, the prospectus shareholding. a Hong Kong listing, under the city’s in 2015 completed a $15bn merger with showed. Each Class A share has 10 votes new rules designed to attract tech Dianping, akin to US online review fi rm Revenue rose to 33.9bn yuan in fi scal while each Class B share has one vote. companies. Yelp Inc. 2017, sharply higher than the 12.99bn The fi rm has mandated Bank of The Beijing-based firm, backed It off ers a broad range of services yuan made in the prior year. America Merrill Lynch, Goldman by gaming and social media com- including movie ticketing, food deliv- Meituan-Dianping’s other backers Sachs Group Inc and Morgan Stanley Meituan-Dianping food delivery workers attending a morning briefing in Beijing pany Tencent Holdings, was val- ery, hotel and travel booking as well as include venture capital fi rms Sequoia to jointly sponsor its IPO. China Ren- (file). The Chinese online services giant filed for an initial public off ering in Hong ued at around $30bn in a fundrais- ride-hailing. Capital and DST Global, Singapore aissance is the fi nancial adviser. Kong yesterday, in what could become the biggest IPO of the year. Gulf Times 4 Tuesday, June 26, 2018 BUSINESS

Two years on, pound still stuck in Brexit bog as more talks loom

Bloomberg Bank NV. “It is a lot of back and London forth in UK politics and that complicates negotiations with the EU,” she said, predicting boost from the Bank of sterling to end the third quarter England, spoilt in no time at $1.30, from the current level of Aby Brexit gloom - this has around $1.33. been a recurring pattern for the Sterling jumped more than pound of late. This week may be 0.7% over Thursday and Fri- no exception. day after the surprise move by While a hawkish surprise BoE’s Haldane to support the out of Thursday’s BoE meet- case for higher rates boosted ing - namely, chief economist bets for an August hike. It is Andy Haldane’s shift of stance still down by 5.3% versus the in favour of raising interest rates dollar this quarter. - gave the beleaguered currency Yields on 10-year gilts climbed some reprieve, the focus now to a one-week high on Thursday pivots fi rmly back to politics. UK after the BoE announcement, as Prime Minister Theresa May is the market-implied probabil- scheduled to meet her peers in ity of an August hike climbed to Brussels at the June 28-29 Euro- 68% from 49% before the cen- pean Union summit. Two years tral bank’s statement. Still, some since Britain voted to leave the rates analysts remain cautious EU, talks remain far from con- on whether the BoE will indeed crete resolutions. pull the trigger in two months’ The British currency is on time given the recent patchy A refinery stands in the background as a pump jack operates in an oil field near Corpus Christi, Texas (file). Brent crude is being pared back by Saudi Arabia’s pledge track for the worst quarter trend in UK economic data. to boost output after an ambiguous Opec pact and contradictory statements from other nations spurred a price jump on Friday, while shrinking stockpiles are against the dollar since June While the BoE’s hawkish slant supporting West Texas Intermediate. 2016, the month of the referen- “puts at risk our view that rates dum, amid domestic political will stay unchanged in August, turbulence and as Brexit pros- we’re sticking with it,” wrote pects remain uncertain. Airbus Daniela Russell, the head of UK SE has threatened to pull its UK rates strategy at HSBC Holdings investments on a no-deal sce- Plc. “But, more importantly, it nario, saying it’s become “in- hasn’t altered the big picture: creasingly frustrated” at the lack the risks to the BoE’s economic of clarity, while the EU is already forecasts remain fi rmly skewed Global oil benchmarks making contingency plans in the to the downside, which will limit event both sides fail to strike an the extent of any tightening.” accord in time. Russell said HSBC strategists “The BoE gave sterling some are “comfortable running a bull- support but that will probably ish position in the fi ve-year sec- peter out the closer we get to the tor” and would use any sell-off summit,” said Georgette Boele, as an opportunity to add to long clash in aftermath of currency strategist at ABN Amro positions in the front end.

Denmark is looking for ways to ambiguous Opec pact sustain bond market liquidity Bloomberg debt load was 36.4% of gross Bloomberg “The spread between WTI and Brent a pact aimed at lifting output. He was at 162% in May, according to Bloomb- Copenhagen domestic product in 2017 Seoul is shrinking as Opec’s output increase seeking to reassure the market after erg calculations based on Opec’s sec- compared with an 81.6% is having a bigger impact on Brent than several cartel members said the actual ondary source data. average across the 28-nation WTI,” said Hong Sungki, a Seoul-based increase will only reach 700,000 be- Russian Energy Minister Alexander Denmark’s finance ministry is European Union bloc. he world’s two most important commodities trader at NH Investment & cause some nations are incapable of Novak said his country can boost out- looking for ways to keep the Denmark’s pension funds, oil benchmarks are behaving very Securities Co. pumping more. put by 170,000 to 200,000 barrels a day, country’s government bond which are among the main Tdiff erently in the aftermath of “Cushing stockpiles are quickly with- The Opec deal, which was reached af- and al-Falih fl oated a month-on-month market liquid as a dwindling owners of the country’s Opec’s meeting in Vienna. drawing as the US summer driving sea- ter a last-minute compromise with Iran, range of 250,000 to 400,000 barrels a debt burden reduces the need government bonds, have Brent crude is being pared back by son boosts refi ners’ demand for crude, is a victory for Saudi Arabia and Russia day increase. to borrow. often called for more liquidity. Saudi Arabia’s pledge to boost output supporting WTI prices.” that initially proposed an increase. Out- Meanwhile, every minister seemed to “It’s a high priority for the state The debt off ice characterised after an ambiguous Opec pact and con- Brent futures for August settlement put curbs by the group and its allies since have his own interpretation of what the to keep the government debt liquidity as “high” after tradictory statements from other nations fell as much as $1.81 to $73.74 a barrel on last year helped eliminate a global glut hike meant for the market. Iran saw less market liquid and functioning,” improving since the beginning spurred a price jump on Friday, while the ICE Futures Europe exchange, and and boosted Brent to $80 a barrel for the than 700,000 additional barrels a day the ministry said. of 2017, in its half-year debt shrinking stockpiles are supporting West traded at $74.22 at in London. The con- fi rst time since 2014. and Iraq predicted it could be as much as Danish government debt has review published last week. Texas Intermediate. The spread between tract gained $2.50 to settle at $75.55 a They now have more room to respond 800,000. declined steadily since the The finance ministry has already the European and US markers narrowed barrel on Friday. to supply risks and moderate prices at a Al-Falih’s assurance to keep the mar- financial crisis and the ministry introduced some measures to more than 16% yesterday and has almost In contrast, WTI crude for August de- time when US sanctions threaten to dis- ket in balance, backed by his Russian expects that trend to continue. help liquidity. Earlier this year it halved in under a week. livery dropped only 17 cents to $68.41 a rupt Iranian and Venezuelan exports. counterpart, came after Trump slammed Earlier this month, Nordea centralised borrowing for social While the prospect of more Opec barrel, after gaining earlier. The contract Iran said it doesn’t believe buyers of its Opec for artifi cially infl ating prices, as Bank AB suggested Denmark housing, which it estimates crude is weighing on Brent, Goldman jumped 4.6% to $68.58 on Friday. Total oil will get waivers from the US govern- well as more conventional lobbying by should consider establishing could add as much as 180bn Sachs Group says even an aggressive out- volume traded was more than double the ment that would allow them to continue major oil buyers. a sovereign wealth fund that’s kroner ($28bn) of new liquidity put boost will lead to only a slim surplus 100-day average. purchasing cargoes after President Don- While the group has struck a deal, Iran in part financed by bond sales to the government bond market that would leave the market with little The diff ering reaction narrowed ald Trump’s renewal of sanctions. That’s and Venezuela criticised the Saudi posi- to preserve a functioning through 2025. remaining spare capacity. Brent’s premium to $5.81 from more than a signal that exports from the Islamic tion, saying the accord didn’t allow any government bond market. It also expects to issue more Stockpiles at the biggest US storage $10 last week. Republic may fall much further, more member to replace one another’s market The ministry didn’t say whether bonds to fund large-scale hub have slumped for fi ve weeks with the Futures rose 1.8% to 467.4 yuan a bar- quickly than expected. share. that idea was among the infrastructure projects, start of the summer driving season when rel on the Shanghai International En- Technically, Opec and its partners Meanwhile, the biggest US shale re- options it’s considering. It including the planned Femern demand peaks. ergy Exchange in afternoon trading, after will strive to reach 100% compliance gion will have to shut wells within four also didn’t specify what other Belt link to Germany, and Those declines may accelerate as a Ca- edging down 0.2% on Friday. with production quotas adopted about months because there aren’t enough measures it is looking into. to cover the cost of letting nadian oil-sands outage leads to a North Saudi Energy Minister Khalid al-Falih 18 months ago, according to a commu- pipelines to get the oil to customers, ac- According to Eurostat, homeowners defer payment of American supply shortage, propping up signalled a real supply gain approach- nique published after the meeting last cording to Scott Sheffi eld, the chairman Denmark’s total public sector property taxes. WTI, the bank said. ing 1mn barrels a day after Opec adopted week. The group’s compliance rate was of Pioneer Natural Resources Co.

Russia dumps Treasuries for gold in pivot after sanctions Russia central bank may need extra

Bloomberg gold rose by 1% in May to 62mn troy Moscow ounces, valuing them at $80.5bn. In May, governor Elvira Nabiullina said $1.6bn for a planned ‘bad bank’ gold purchases help diversify reserves. Russia is rethinking what counts as With the geopolitical stakes so high, a haven asset as it duels with the US. Russia may not be overly concerned Reuters Although investors usually seek safety about returns on its investment. Still, Moscow in US debt, Russia cut its holdings of gold has underperformed US debt Treasuries nearly in half in April as so far this year, losing over 3% as the Washington slapped the harshest outlook for higher borrowing costs ussia’s central bank may need to provide an- sanctions to date on a selection of dimmed prospects for the metal, other 100bn roubles ($1.6bn) for a planned Russian companies and individuals. which doesn’t pay interest. Meanwhile, R“bad bank”, adding to the more than $40bn In a shift Danske Bank attributed to after handing investors positive already spent on three banking bailouts, two sourc- a deepening “geopolitical standoff ,” returns for the past four years straight, es familiar with discussions said. Russia is instead keeping up its Treasuries have generated a loss of Russia had to rescue three of the country’s big- purchases of gold. 1.6% in 2018. gest private banks in the second half of 2017, in- “Some people ask whether the Russian Putin warned shortly after his cluding Otkritie, once the country’s largest private central bank sold them to support the inauguration for a fourth term as lender, as well as B&N and Promsvyasbank. rouble in April, but it’s about changing president that Russia is seeking to It has also shut hundreds of smaller banks as part allocation as reserves continue to “break” from the dollar and diversify of a wider clean-up of the fi nance sector over the grow,” said Vladimir Miklashevsky, a reserves to bolster “economic past few years. senior economist at Danske Bank in sovereignty.” But according to the The banking sector’s troubles have been blamed Helsinki. “Rising US yields have fuelled central bank’s latest data, the US partly on excessive M&A activity by the banks and the sell-off .” currency’s share in reserves climbed to their former owners. Russia sold $47.4bn of Treasuries nearly 46% in 2017, up from over 40% The central bank has decided to split the three Pedestrians pass the entrance to the headquarters of Russia’s central bank in Moscow (file). The Bank in April, more than any other major the previous year. banks’ assets into “good” and “bad” and shift their of Russia may need to provide another $1.6bn for a planned “bad bank”, adding to the more than $40bn foreign holder of the US securities, Considering the size of Russia’s non-performing assets to the planned “bad bank”, already spent on three banking bailouts, according to sources familiar with discussions. even as its reserves grew on the back Treasury holdings, its move hardly which would have assets of 2.1tn roubles. of rising oil prices. Its stockpile of made a dent in the $14.9tn Treasuries The plan is for the bad bank to sell off those assets and partly — to boost its capital, the second source split between the Trust’s liquidity and capital. The $48.7bn is down from a 2010 peak market. A bigger question is whether within three to fi ve years. said. “Almost a year has passed (since the central source close to Otkritie said that the funds to sup- of over $176bn, ranking it only 22nd China - which owned $1.18tn of US A source close to the central bank said that Trust bank started big bailouts), the quality of the assets port the capital could be partly taken from the cash worldwide, according to data released debt as of April 30 - will follow its Bank, part of the Otkritie banking group, which will has worsened, value of the some has fallen as new provided by the central bank to Otkritie, a process last week. neighbour’s lead. be used to establish the bad bank, will need more problems have emerged,” the source close to Otkri- which began last year. By contrast, the central bank keeps “China could do the same if the trade than 100bn roubles in extra funds. tie said, explaining the need for the fresh funds. Otkritie declined to comment. The central bank adding to its gold hoard, bringing the war gets too bad,” Miklashevsky said. Rost, part of B&N banking group, will be merged Central Bank governor Elvira Nabiullina told did not respond to a Reuters request to comment. share of bullion in its international “That tool has been used before. In with Trust as part of the creation of the bad bank. Reuters this month the bank had injected 758.3bn The Russian central bank has said that the bailout reserves to the highest of President Russia, it’s more about keeping the The second source, close to Otkritie, said that the roubles to boost the capital of Otkritie, B&N and process, which requires printing fresh cash, will not Vladimir Putin’s 18 years in power. The money safe from sanctions because fi nal amount of the additional funds is yet to be de- Promsvyazbank, while another 1.86tn roubles were aff ect its monetary policy as the funds are distrib- Bank of Russia said that its holdings of they need it for a rainy day.” cided, but confi rmed it would exceed 100bn roubles. provided for deposits. uted via a specially established Fund for Consolida- Most of this will be used to prop up Trust’s liquidity The sources did not say how support would be tion of Banking Sector. Gulf Times Tuesday, June 26, 2018 5 BUSINESS

Ex-Goldman executive pushes ’70s fi x for bond market’s problem

Bloomberg have more to gain by submitting bids fall. And the problem BondCliQ is try- biggest fi rms, like JPMorgan and Gold- according to Eric Noll, a former top on a central feed. That’s not the case Los Angeles and off ers to his startup. ing to solve – the debt market’s lack of man Sachs, to keep a stranglehold on Nasdaq executive who’s also invested for corporate bonds and BondCliQ’s “Market makers are malnourished transparency – has been hugely prof- the market. in BondCliQ. feed will only be visible to its own par- around data,” said the 43-year-old itable for the biggest dealers. White And it’s not like they have much in- “When many people look at fi xed in- ticipants. hris White wants to drag cor- White, who says BondCliQ will of- needs buy-in from those very fi rms to centive (or even the legal obligation) come – say it all should be electronic, What’s more, the automated quote porate-bond trading into the fi cially go live in September. “Our succeed. to change. The bond market is littered it should be an exchange – they try to system was created by the National As- C21st century. Or at least the late big, overarching hope is that we can These days, when fund managers with startups that have tried – and solve all of the market at once,’’ Noll sociation of Securities Dealers (hence 20th century. With a new platform improve liquidity in the marketplace want to buy or sell a corporate bond, failed – to loosen Wall Street’s grip said. “Every time somebody has tried the Nasdaq acronym) with built-in called BondCliQ, White, who made through an overall improvement in they have two choices. If the trade isn’t on bond trading and make it more ef- to do that, it has failed.’’ buy-in from its member fi rms. his name at Goldman Sachs as a bond- market-data quality.” too big, they can break it up on elec- fi cient. Names like BondBook, Bond Both Niederauer and Noll say Nas- White, who left Goldman in 2015, trading technology expert, hopes to White says four of the top 10 US tronic markets and hope prices don’t Connect, BondGlobe, BondHub, daq serves as a model. From its hum- sees plenty of opportunity. One rea- fi x a seemingly intractable problem corporate-bond underwriters have move too much as the orders are ex- BondLink and XBond. Even GSessions, ble beginnings in 1971 as a place where son is that dealers themselves often with corporate bonds: that even in the agreed to provide quotes on the plat- ecuted. the online platform White developed dealers could electronically quote bids don’t have a full picture of supply and digital age, investors are often fl ying form, though he declined to say which However, for deals over $2mn or so, at Goldman, fl opped. and off ers for stocks too tiny for NYSE demand, and hesitate when they don’t blind. That’s because most big trades ones. Two stock-market veterans, investors have little choice but to call “Data is really the big focus in the to bother with (but not trade them), “have enough information to make the still get done by haggling with a hand- including former NYSE CEO Duncan up dealers to fi nd out who’s willing to bond market now,” said Kevin McPart- Nasdaq ultimately grew to become one market.” ful of big banks. Niederauer, have also put money into trade and at what markup. land, head of market-structure re- of the biggest markets in the world. BondCliQ could change that be- His ’70s era solution: a centralised the startup. They emphasise what And if you want to unload an illiquid search at Greenwich Associates. Nev- Along the way, trading exploded. cause it will enable all participants to feed with real-time price quotes, akin BondCliQ is doing has historical par- bond or need to do a particularly large ertheless, “we can’t minimise the Before Nasdaq, “you didn’t know see the same quotes, including size, to the one adopted by the US stock allels to Nasdaq, which started out as trade, it can take upwards of a week to importance of the big dealers in the what the real price was on a Nasdaq at the same time, he said. To attract market decades ago. The challenge is just a bulletin board for stock quotes complete. market and their pricing and every- stock because there was no ability to dealers and encourage them to provide getting the establishment to go along. posted by dealers before evolving into Today, about 80% of US bond deals thing that comes along with it.” look, no pre-trade transparency,” Noll bids and off ers on the platform, Bond- Wall Street dealers make a lot of money an exchange giant. are still done by phone or over chat. White and his backers are undaunt- said. “What it did was really allow CliQ employs a revenue-sharing model trading bonds partly because this arena The venture is still far from a sure There aren’t any exchanges and every- ed. Prior attempts to modernise the dealers to compete with one another.” where dealers split 80% of the revenue, is far less transparent than equities. thing. White has faced delays in getting thing is negotiated, which gives deal- corporate-bond market failed because The analogy isn’t perfect of course. which the fi rm generates by charging White, who’s been working on the the company off the ground, telling ers the upper hand when it comes to they were trying to change too much Much of the surge in volume occurred money managers, bond-trading plat- project for over a year, is betting he can Business Insider last year he planned to where the market is for a given bond. at once, without fi rst tackling the after Congress mandated in 1975 that forms and analytics providers for ac- sell those same dealers on the idea they have BondCliQ up and running by last It’s a situation that has enabled the fundamental issue of transparency, all stock prices be publicly displayed cess to the data feed.

Polish fund giant PZU hunts for liquidity Blackstone to raise $5bn Bloomberg Warsaw

With global stimulus on the ebb, divining for the diminishing pools of emerging- market liquidity has become a top priority for infrastructure fund for Poland’s second-biggest investment fund. Bloomberg “Liquidity will test all solutions,” said New York Konrad Augustynski, a fixed-income portfolio manager at PZU, said in an interview in Warsaw. “You need to be able hirteen months after unveiling to execute your strategy. As investors go a gigantic pledge from Saudi tactical, they search for opportunities, TArabia’s sovereign wealth mostly for liquidity.” fund, Blackstone Group is nearing As regulators from the US Federal Reserve a fi rst close of $5bn for its inaugu- to the European Central Bank unwind ral infrastructure fund, according to a decade of unprecedented financial- people familiar with the matter. market support, the retreating cash tide The fundraising, expected to be fi - is putting a premium on easy-in, easy-out nalised this week, is slightly behind trades. Poland and its peers in Eastern schedule but will mark the biggest in- Europe were initially viewed as a safe itial close for a fi rst-time fund across harbour when the two-year developing- any alternative investment strategy market rally hit a wall. after SoftBank’s $100bn Vision Fund But their bonds and currencies joined the and the China Structural Reform retreat in recent weeks amid mounting Fund, according to Preqin. The data concern their central banks are on the exclude funds with a single close. wrong side of the global tightening trend. A spokeswoman for New York-based This is the year for “choosing investments Blackstone declined to comment. that aren’t explosive,” said Marcin The planned $40bn fund – Black- Adamczyk, the chief executive off icer of stone Infrastructure Partners – TFI PZU, which has 20bn zloty ($5.4bn) raised eyebrows when it was unveiled under management. “One needs to last May in Riyadh during a visit apply a diverging approach to monetary from President Donald Trump and policies and search for a safe haven inside business leaders including Stephen emerging markets.” Schwarzman, Blackstone’s chairman State-run insurer PZU is the poster child of and chief executive offi cer. The Pub- the Polish government’s “re-polonisation” lic Investment Fund of Saudi Arabia, eff orts after buying a controlling stake in known as PIF, pledged as much as the country’s second-largest lender, Bank $20bn, on the condition that every Pekao, from UniCredit in 2016. dollar would be matched against The accompanying tie-up of PZU’s mutual commitments from other investors. fund unit with Pioneer Pekao Investment Industry executives have said even Blackstone Group headquarters in New York. Blackstone is nearing a first close of $5bn for its inaugural infrastructure fund. Management created a heavyweight the optics of PIF’s massive presence touting exposure to central and eastern in the Blackstone fund could put it whether it was aiming to raise the Blackstone’s intention since incep- internally and hiring from rival in- The next funds being raised by GIP European debt to investors. at a disadvantage when vying for in- matching commitments in one fell tion, Chae said at a conference this vestors such as EIG Global Energy and Brookfi eld may each reach or Despite market turbulence, Poland’s vestments that require support from swoop, but on a call with reporters month. Still, the June time stamp is Partners and OMERS Infrastructure top $20bn, while IFM’s open-ended economic growth of more than 5% and local, state or federal offi cials. Still, in February, Blackstone’s then-pres- behind the March or April projection as well as from General Electric Co. global infrastructure fund managed subdued inflation means the nation is the Saudis will have a minority po- ident, Tony James, clarifi ed that the set internally, in part because senior It’s still searching for mid-level in- $23.1bn as of May 31. still an emerging-market “stronghold,” sition in any deal and no investment $40bn would be gathered “over the hires took longer to get on board, ac- vestment professionals, according to Besides competition from other Adamczyk said. discretion, according to some of the next decade or so.” cording to people with knowledge people with knowledge of its staffi ng funds, Blackstone could fi nd itself Poland’s local sovereign bonds have people. A January memorandum from of the matter and the Pennsylvania needs. facing off against longtime infra- handed investors a 0.02% gain in The fi rst close gives Blackstone a Pennsylvania pension plan said memo. The fi rm’s second foray into infra- structure investors such as Canada dollar terms this month, the third-best a dedicated fund in an area where Blackstone was seeking $7.5bn dur- Apart from PIF, investors include structure is already more successful Pension Plan Investment Board, performance among emerging markets key rivals broke ground more than a ing its initial fundraising phase. That the Pennsylvania Public School Em- than its fi rst. It tried raising at least which had C$28.6bn ($21.5bn) in the tracked by Bloomberg Barclays indexes. decade ago. While the close isn’t as time frame includes the next nine ployees’ Retirement System, which $2bn after the global fi nancial crisis, sector as of March 31. That compares with a 2.2% loss for the large as some observers expected, the months, over which there will be is cutting a $500mn check, the New but eventually allowed that team to The fund, which intends to allow asset class as a whole and declines of fact that Blackstone has reached this additional closes, said some of the Mexico State Investment Council spin out in 2011 to form Stonepeak its investors to contribute additional 3.6% and 1.3% for Hungary and the Czech juncture at all signals that naysayers’ people with knowledge of the matter, and the Parochial Employees’ Re- Infrastructure Partners, which is in cash into certain large deals, is yet to Republic, respectively. prognostications may have been pre- who requested anonymity because tirement System of Louisiana, ac- the fi nal stages of raising as much as put any of its capital to work but has Poland’s strong fundamentals have mature. the information is private. cording to fund disclosures and $7.2bn for its third fund. Blackstone been actively pursuing opportunities prompted some analysts to suggest its The capital raising comes even as After March 2019, the fund won’t Bloomberg data. may be catching up to KKR & Co, including a stake in APM Terminals emerging-market classification might be Trump has yet to deliver on a prom- accept new pledges until its cof- The fund’s perpetual, or open- which recently held a fi rst close of – a ports business owned by Danish a misnomer. ise to facilitate the investment of fers have been emptied, an invest- ended, structure is designed to $6bn on its third infrastructure fund. shipping company AP Moller-Mae- For Adamczyk, who oversaw $2bn as much as $1.7tn in the next dec- ment period Blackstone expects to match the lifespan of infrastructure Another rival, Carlyle Group, is rsk – and a 49.99% holding in mobile in developing-nation bonds at NN ade. “It would be helpful if they do last three to four years, the people assets, meaning it won’t be forced raising a $2.5bn infrastructure fund transmission towers owned by Altice Investment Partners in The Hague before something around infrastructure,” said. All along, the firm had been to sell to realise profi ts within a set while the senior partner anointed to Europe NV, according to people fa- he was hired to run PZU’s investment Blackstone President Jonathan Gray targeting between $5bn to $7.5bn timetable. Targeting an annualised lead Apollo Global Management’s ef- miliar with the matter. business, the question is ultimately said of the federal government in of outside capital to form a fund of return after fees of 10%, its areas of forts in the sector is leaving the fi rm. KKR triumphed in the auction for “philosophical.” May. Still, “there’s tonnes to do even $10bn to $15bn including the PIF focus include assets such as ports, For now, Blackstone remains in the Altice French towers in a deal “When volatility passes a certain without it,” the fi rm’s chief fi nan- match during the initial phase, said waste facilities and telecommunica- the shadows of the industry’s biggest announced last week while APM threshold, we’re still viewed as EM cial offi cer, Michael Chae, said on an the people. tions towers. players, Global Infrastructure Part- Terminals has since decided not to rather than DM.” earnings call in February. A fi rst close for the infrastruc- Blackstone has fi rmed up its sen- ners, Brookfi eld Asset Management sell a stake, people with knowledge The fi rm initially didn’t say ture fund in the current quarter was ior infrastructure ranks, promoting and IFM Investors. of the matter said. US interest rate allure sparks record hedge fund dollar buying

By Jamie McGeever helped lift it to its highest level in a year president could end in October next the previous week in favour of the years after Draghi’s press conference of higher US wage inflation sparked London against a basket of major currencies. year without his ever presiding over an greenback. on June 21. concern that the Fed would have to jack The question now is how much higher interest rate rise. Nearly half of that was a $7.7bn To say relative interest rates and bond up interest rates. hedge funds and others are prepared The latest Commodity Futures reduction in speculators’ net short euro yields favour the dollar over the euro is Investors were spooked, but those fears Hedge funds are loading up on bullish to take it. If their thinking is based Trading Commission figures show that position. an understatement. have eased and shorting volatility is dollar bets at the fastest pace on record, primarily on pure interest rate and speculators and hedge funds swung to Specs are now net long dollars against The five-year US-German yield spread once again one of the most popular taking the Fed’s recent hawkish signal bond yield diff erentials, the dollar could a net long dollar position worth $10.4bn all major currencies except the euro, rose to 309 basis points on June 21, the trades. on interest rates at face value and going strengthen further and push the euro in the week ending June 19 from a 7.1bn and they slashed their net long euro widest since January 1989. But it’s not without risk. long the greenback for the first time in below $1.15. net short position the week before. position by 52,107 contracts to 36,118 If hedge funds and speculators have Global trade war fears are bubbling up a year. The contrast in messages given by the Not only was that the first net long contracts in the week to June 19. given up shorting the dollar, they again, pushing the VIX up to 15.2. That’s The flip side of speculators’ burst of Fed and European Central Bank this position since June last year, the $17.5bn That’s the smallest long position in haven’t thrown in the towel on selling not super high, but it is up from the 11 love for the dollar is their complete month could not have been starker. swing was the largest dollar-positive over a year and the biggest weekly volatility, CFTC data show. handle it had for much of June and is capitulation on the euro: they are The US central bank indicated it would shift since the CFTC began compiling reduction ever. They increased their net short VIX now creeping above its median over liquidating long positions in the single raise rates four times this year instead data on FX futures contract positioning As recently as April the net long euro futures position last week to 57,570 the last five years of around 14.6. currency also at the fastest pace on of the three it had indicated. in 1999. position was a record 151,476 contracts. contracts from 53,346. record. The ECB signalled negative rates are That came almost entirely from And there’s a good chance it’s been cut That’s the biggest short since the end of „ Jamie McGeever is a columnist for The wave of dollar buying from the here to stay for a long time to come. dollar bets against G10 currencies, even further, considering the single January, just before the ‘volmageddon’ Reuters. The views expressed here are speculative trading community has Mario Draghi’s eight-year term as ECB which swung a record $17.7bn from currency posted its biggest fall in two burst in early February when signs those of the author. Gulf Times 6 Tuesday, June 26, 2018 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 20.80 0.29 432,694 Specialities Group Holding C 58.30 1.75 386,848 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 19.26 9.93 1,656,052 Abyaar Real Eastate Developm 18.10 0.00 3,261,000 Al-Omaniya Financial Service 0.28 0.00 - Alabdullatif Industrial Inv 12.66 -1.09 69,543 Kgl Logistics Company Kscc 42.00 0.24 2,992,614 Al-Hassan Engineering Co 0.04 0.00 - Saudi Printing & Packaging C 19.02 -0.42 714,605 Combined Group Contracting 420.00 0.00 18,195 Al-Fajar Al-Alamia Co 0.75 0.00 - Saudi Paper Manufacturing Co 7.99 0.38 299,889 Jiyad Holding Co Ksc 95.40 -4.41 92,002 Al-Anwar Ceramic Tiles Co 0.11 -1.83 5,700 Alinma Bank 21.34 -1.48 23,105,276 Boubyan Intl Industries Hold 28.00 2.94 222,820 Al Suwadi Power 0.11 0.00 476 Almarai Co 59.40 -0.50 314,132 Gulf Investment House Ksc 18.50 0.54 624,165 Al Sharqiya Invest Holding 0.12 -0.83 67,314 Falcom Saudi Equity Etf 32.40 1.41 73,810 Boubyan Bank K.S.C 492.00 -0.20 989,059 Al Maha Petroleum Products M 0.80 0.00 - United International Transpo 35.55 1.14 123,520 Ahli United Bank B.S.C 185.00 2.21 2,404,010 Al Maha Ceramics Co Saoc 0.23 0.00 600 Hsbc Amanah Saudi 20 Etf 32.40 0.00 32 Osos Holding Group Co 86.80 0.00 88,235 Al Madina Takaful Co Saoc 0.10 -1.94 943,005 QATAR Saudi International Petroche 21.70 -0.18 514,370 Al-Eid Food Ksc 59.40 10.00 3,500 Al Madina Investment Co 0.05 -1.96 698,000 Falcom Petrochemical Etf 31.90 0.00 47 Qurain Petrochemical Industr 330.00 0.00 1,136,974 Al Kamil Power Co 0.39 0.00 - Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 28.95 2.84 1,032,814 Ekttitab Holding Co Sak 28.50 10.47 710,850 Al Jazerah Services -Pfd 0.55 0.00 - Bank Al-Jazira 14.70 -0.54 3,823,764 Real Estate Trade Centers Co 20.00 0.00 100 Al Jazeera Steel Products Co 0.30 0.00 - Zad Holding Co 86.00 1.18 2,135 Al Rajhi Bank 87.30 -0.34 2,501,717 Acico Industries Co Kscc 220.00 0.46 20,000 Al Jazeera Services 0.16 0.00 - Widam Food Co 61.00 -1.58 634 Samba Financial Group 32.50 1.56 1,318,090 Kipco Asset Management Co 84.00 5.00 10,000 Al Izz Islamic Bank 0.08 0.00 304,880 Vodafone Qatar 8.81 1.85 1,569,533 United Electronics Co 65.70 0.15 82,312 National Petroleum Services 750.00 0.00 3,000 Al Buraimi Hotel 0.88 0.00 - United Development Co 14.01 -0.57 235,156 Allied Cooperative Insurance 19.34 -1.02 346,440 Alimtiaz Investment Co Kscc 135.00 1.50 1,153,223 Al Batinah Power 0.11 0.00 20,000 Salam International Investme 5.21 0.00 1,210 Malath Insurance 15.72 2.34 1,305,893 Ras Al Khaimah White Cement 73.70 0.00 11,814 Al Batinah Hotels 1.13 0.00 - Qatar & Oman Investment Co 6.24 1.30 15,650 Alinma Tokio Marine 21.26 0.76 260,984 Kuwait Reinsurance Co Ksc 192.00 0.00 14,040 Al Batinah Dev & Inv 0.10 0.00 - Qatar Navigation 60.00 -3.21 12,588 Arabian Shield Cooperative 26.60 2.50 311,901 Kuwait & Gulf Link Transport 119.00 3.48 1,628,950 Al Anwar Holdings Saog 0.13 -8.45 437,244 Qatar National Cement Co 56.00 0.36 39,233 Savola 38.65 -0.13 202,358 Human Soft Holding Co Ksc 3,578.00 -0.56 91,224 Al Ahlia Insurance Co Saoc 0.37 0.00 - Qatar National Bank 152.01 -1.29 201,969 Wafrah For Industry And Deve 14.44 0.28 52,541 Automated Systems Co Kscc 130.00 0.00 50,000 Ahli Bank 0.16 0.00 - Qatar Islamic Insurance 50.50 0.00 - Fitaihi Holding Group 12.18 0.16 289,967 Metal & Recycling Co 50.00 0.00 3,055 Acwa Power Barka Saog 0.74 0.00 - Qatar Industrial Manufactur 41.00 0.99 1,307 Tourism Enterprise Co/ Shams 32.30 0.47 73,096 Gulf Franchising Holding Co 20.00 0.00 217,751 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 53.10 0.19 31,621 Sahara Petrochemical Co 18.08 -0.11 1,092,621 Al-Enma’a Real Estate Co 32.00 0.00 43,600 A’saff a Foods Saog 0.59 0.00 - Qatari Investors Group 30.01 -0.96 7,177 Herfy Food Services Co 46.50 -0.53 27,225 National Mobile Telecommuni 851.00 -1.05 13,830 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 117.20 -1.51 100,328 Saudi Ind Investment Group 28.95 1.58 1,191,318 Unicap Investment And Financ 53.00 0.00 20,705 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 15.85 -0.19 245,234 Salama Cooperative Insurance 22.30 6.90 673,768 Al Salam Group Holding Co 33.40 1.21 149,266 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 50.00 0.00 - Emaar Economic City 12.44 0.16 1,296,849 Al Aman Investment Company 50.50 -2.88 46,275 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 5.17 1.37 33,798 Alahli Takaful Co 29.35 0.69 483,938 Mashaer Holding Co Ksc 44.70 -0.67 1,664,950 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 143.90 1.34 229,856 Anaam International Holding 11.74 0.86 282,769 Manazel Holding 31.80 0.00 946,540 #N/A Invalid Security 0.00 0.00 - Qatar First Bank 5.25 0.57 233,426 Saudi Telecom Co 90.00 0.11 330,112 Tijara And Real Estate Inves 0.00 0.00 - #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 182.00 -1.02 33,733 Al Alamiya Cooperative Insur 32.30 -0.92 95,602 Jazeera Airways Co Ksc 768.00 -0.26 28,920 #N/A Invalid Security 0.00 0.00 - Qatar Exchange Index Etf 89.78 0.38 500 Saudi Industrial Services Co 14.54 -2.28 90,690 Commercial Real Estate Co 72.70 0.28 759,200 Qatar Cinema & Film Distrib 20.01 0.00 - Al-Ahsa Development Co. 11.60 -0.68 110,830 National International Co 59.00 7.27 5,527 Al Rayan Qatar Etf 22.00 4.71 390 National Co For Glass In/The 19.82 -0.10 25,947 Taameer Real Estate Invest C 27.80 -1.42 135,498 Qatar Insurance Co 36.00 -1.21 401,954 Dur Hospitality Co 20.16 -0.20 52,759 Gulf Cement Co 79.00 0.00 346,100 Ooredoo Qpsc 72.01 2.72 294,160 Tabuk Cement Co 13.28 2.31 406,487 Heavy Engineering And Ship B 320.00 0.00 33,412 UAE National Leasing 9.40 0.00 10,922 Sasco 15.40 -0.52 184,774 National Real Estate Co 106.00 2.91 15,000 Mazaya Qatar Real Estate Dev 6.76 0.45 76,247 Saudi Cement 50.40 -0.79 65,858 Al Safat Energy Holding Comp 30.00 -6.83 33,165 Company Name Lt Price % Chg Volume Mesaieed Petrochemical Holdi 15.17 0.93 260,704 Aseer Trading Tourism & Manu 11.90 0.85 265,583 Kuwait National Cinema Co 1,045.00 -0.48 4,497 Al Meera Consumer Goods Co 150.00 1.21 18,425 Nama Chemicals Co 28.00 -3.11 640,572 Danah Alsafat Foodstuff Co 46.50 0.65 230,962 Waha Capital Pjsc 1.80 2.27 2,077,876 Medicare Group 63.70 1.11 17,140 Saudi Arabian Mining Co 57.90 0.52 186,740 Independent Petroleum Group 430.00 2.38 50,000 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 49.00 2.83 17,270 Yanbu Cement Co 27.40 2.05 236,502 Kuwait Real Estate Co Ksc 49.40 2.28 1,030,408 United Arab Bank Pjsc 1.24 0.00 - Masraf Al Rayan 34.70 0.00 421,942 Saudi Fisheries 25.90 0.00 165,922 Salhia Real Estate Co Ksc 337.00 3.69 155,962 Union National Bank/Abu Dhab 3.60 0.56 534,910 Al Khalij Commercial Bank 10.80 0.47 10,500 Ash-Sharqiyah Development Co 55.10 3.57 533,014 Gulf Cable & Electrical Ind 375.00 -1.32 36,767 Union Insurance Co 1.43 0.00 - Industries Qatar 105.00 -1.87 126,434 Makkah Construction & Devepl 77.90 -1.02 17,885 Kuwait Finance House 0.00 0.00 - Union Cement Co 1.85 0.00 - Islamic Holding Group 27.69 1.99 701 Al Jouf Cement 9.44 -0.42 100,117 Gulf North Africa Holding Co 43.90 0.23 319,950 Umm Al Qaiwain General Inves 1.01 0.00 - Investment Holding Group 5.38 -0.74 72,178 Abdullah A.M. Al-Khodari Son 7.55 -0.66 1,087,524 Hilal Cement Co 100.00 0.00 100 Sudan Telecommunications Gro 0.54 3.85 2,504,309 Gulf Warehousing Company 41.56 1.24 2,185 Knowledge Economic City 11.42 -0.52 222,092 Osoul Investment Kscc 54.00 -0.18 496,177 Sharjah Islamic Bank 1.20 0.00 - Gulf International Services 17.10 0.12 83,160 Al-Ahlia Cooperative Insuran 11.10 1.46 625,246 Gulf Insurance Group Ksc 645.00 0.78 202,900 Sharjah Insurance Company 2.84 0.00 - Ezdan Holding Group 8.00 -3.61 620,045 Al Rajhi Co For Co-Operative 65.50 1.55 721,995 Umm Al Qaiwain General Inves 77.40 0.00 400,000 Sharjah Group 1.15 0.00 - Doha Insurance Co 12.04 0.00 - Alkhodar Ab Equity 53.90 -0.37 354,394 Aayan Leasing & Investment 30.50 1.67 6,396,983 Sharjah Cement & Indus Devel 0.91 0.00 - Doha Bank Qpsc 26.80 -1.47 269,594 Kec Ab Equity 26.35 -0.57 67,185 Alrai Media Group Co Ksc 100.00 -2.91 299,715 Ras Al-Khaimah National Insu 3.68 0.00 - Dlala Holding 15.16 1.81 472,894 Alahlia Ab Equity 28.00 0.36 106,816 National Investments Co 90.50 -0.33 30,100 Ras Al Khaimah White Cement 1.12 0.00 - Commercial Bank Pqsc 37.00 -1.07 164,411 Arcci Ab Equity 9.56 -1.24 1,297,197 Commercial Facilities Co 165.00 1.23 5,450 Ras Al Khaimah Ceramics 2.32 0.00 1,000 Barwa Real Estate Co 33.43 -0.77 243,234 Appc Ab Equity 27.15 -0.18 873,546 Yiaco Medical Co. K.S.C.C 0.00 0.00 - Ras Al Khaimah Cement Co Psc 0.75 0.00 - Al Khaleej Takaful Group 11.10 0.09 38,438 Albabtai Ab Equity 49.10 0.51 881,355 Munshaat Real Estate Project 87.00 -3.33 15,300 Ras Al Khaima Poultry 1.89 0.00 - Aamal Co 8.90 -0.89 28,589 Noor Financial Investment Co 52.70 2.33 1,748,885 Rak Properties 0.64 -1.54 2,766,173 Al Tamdeen Investment Co 0.00 0.00 - Ooredoo Qpsc 72.90 0.00 - KUWAIT Credit Rating & Collection 20.30 0.00 10 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Ifa Hotels & Resorts Co. K.S 100.00 0.00 430 National Takaful Company 0.73 0.00 - SAUDI ARABIA National Marine Dredging Co 3.01 0.00 - Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 38.70 1.84 47,800 Warba Bank Kscp 217.00 0.00 1,015,415 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume Sultan Center Food Products 70.00 -0.43 306,210 Viva Kuwait Telecom Co 698.00 0.58 166,177 National Corp Tourism & Hote 2.13 0.00 - Kuwait Foundry Co Sak 198.00 -3.41 10,000 Mezzan Holding Co Kscc 710.00 0.28 466,939 National Bank Of Umm Al Qaiw 2.66 0.00 - United Wire Factories Compan 17.48 -0.34 72,858 Kuwait Financial Centre Sak 104.00 0.00 10,970 National Bank Of Ras Al-Khai 4.35 0.00 177,758 Etihad Etisalat Co 19.48 -2.31 3,064,281 Ajial Real Estate Entmt 144.00 0.00 10,000 National Bank Of Fujairah 3.39 0.00 - Dar Al Arkan Real Estate Dev 10.68 -5.49 38,456,807 Kuwait Finance & Investment 42.50 -9.57 35,000 Methaq Takaful Insurance 0.75 -1.32 162,773 Alawwal Bank 14.50 -0.55 337,801 National Industries Co Ksc 170.00 -7.10 1,023 OMAN Manazel Real Estate Pjsc 0.47 -2.08 2,499,305 Rabigh Refining And Petroche 28.10 -0.35 784,056 Kuwait Real Estate Holding C 29.50 2.79 10,100 Invest Bank 2.42 0.00 - Banque Saudi Fransi 34.00 0.59 391,335 Company Name Lt Price % Chg Volume Securities House/The 45.00 0.00 1,174,299 Intl Holdings Co Pjsc 1.30 0.00 70,531 Saudi Enaya Cooperative Insu 20.52 9.97 223,035 Voltamp Energy Saog 0.00 Boubyan Petrochemicals Co 826.00 5.22 1,031,292 0.29 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 22.00 3.48 497,854 Vision Insurance Saoc 0.00 Al Ahli Bank Of Kuwait 339.00 2.73 1,054,650 0.15 162,000 Gulf Pharmaceutical Ind Psc 2.25 11.39 37,820 Saudi British Bank 31.80 1.27 176,357 United Power/Energy Co- Pref 0.00 Ahli United Bank (Almutahed) 293.00 8.12 2,496,047 1.00 - Gulf Medical Projects 1.78 0.00 - Red Sea International Co 18.70 0.65 178,224 United Power Co Saog 0.00 National Bank Of Kuwait 748.00 0.27 2,375,887 3.44 - Gulf Cement Co 0.96 2.13 4,163,000 Takween Advanced Industries 11.02 -0.72 473,947 United Finance Co 0.00 Commercial Bank Of Kuwait 487.00 0.41 17,482 0.11 - Fujairah Cement Industries 1.20 0.00 - Sabb Takaful 23.26 -2.76 708,541 Ubar Hotels & Resorts 0.00 Kuwait International Bank 219.00 0.00 2,760,546 0.13 - Fujairah Building Industries 1.56 0.00 - Saudi Arabian Fertilizer Co 61.80 0.65 249,513 Takaful Oman 0.00 Gulf Bank 240.00 2.13 8,134,842 0.13 - Foodco Holding Pjsc 3.50 0.00 - National Gypsum 13.68 -0.58 233,718 Taageer Finance 0.00 Al-Massaleh Real Estate Co 30.70 0.00 20,100 0.11 - First Abu Dhabi Bank Pjsc 12.00 -0.41 1,687,460 Saudi Ceramic Co 20.36 -0.88 66,098 Sweets Of Oman 0.00 Al Arabiya Real Estate Co 29.40 2.08 125,860 0.60 - Finance House 1.70 0.00 - National Gas & Industrializa 31.00 0.49 141,581 Sohar Power Co 0.00 Kuwait Remal Real Estate Co 0.00 0.00 - 0.11 - Eshraq Properties Co Pjsc 0.68 0.00 6,914,559 Saudi Pharmaceutical Industr 31.85 0.31 125,477 Sohar Poultry 0.00 A’ayan Real Estate Co Sak 49.00 -4.85 720,028 0.21 - Emirates Telecom Group Co 16.10 0.00 1,212,271 Thimar 30.00 0.67 569,481 Smn Power Holding Saog 0.00 Investors Holding Group Co.K 12.80 0.00 1,300,000 0.60 - Emirates Insurance Co. (Psc) 7.10 0.00 - National Industrialization C 21.46 -0.19 1,340,871 Shell Oman Marketing - Pref 0.00 Al-Mazaya Holding Co 86.30 0.47 1,146,060 1.05 - Emirates Driving Company 7.40 0.00 - Batic Investments And Logist 42.20 1.20 95,119 Shell Oman Marketing 0.00 Al-Madar Finance & Invt Co 78.00 2.90 1,138,102 1.65 32 Dana Gas 1.04 -2.80 14,928,540 Saudi Electricity Co 21.68 -1.36 1,396,199 Sharqiyah Desalination Co Sa 0.00 Gulf Petroleum Investment 25.80 -2.27 35,300 2.51 - Commercial Bank Internationa 0.90 0.00 - Saudi Arabia Refineries Co 45.85 -2.24 1,371,408 Sembcorp Salalah Power & Wat 0.00 Mabanee Co Sakc 630.00 0.00 680,632 0.23 - Bank Of Sharjah 1.06 -1.85 242,277 Arriyadh Development Company 18.00 0.00 123,587 Salalah Port Services 0.00 Inovest Co Bsc 71.00 0.57 200,001 0.60 - Axa Green Crescent Insurance 0.54 0.00 - Al-Baha Development & Invest 20.28 0.20 197,002 Salalah Mills Co 0.00 Al-Deera Holding Co 20.40 0.00 1 1.08 - Arkan Building Materials Co 0.59 -3.28 63,500 Saudi Research And Marketing 89.50 2.40 214,337 Salalah Beach Resort Saog 0.00 Mena Real Estate Co 31.00 0.00 9,140 1.38 - Alkhaleej Investment 2.15 0.00 - Aldrees Petroleum And Transp 27.95 0.00 82,506 Sahara Hospitality 0.00 Amar Finance & Leasing Co 37.00 0.00 500 2.38 - Aldar Properties Pjsc 1.99 -1.49 13,335,051 Saudi Vitrified Clay Pipe Co 50.10 -1.38 30,586 Renaissance Services Saog 1.99 United Projects For Aviation 588.00 0.00 2,400 0.41 1,235,297 Al Wathba National Insurance 12.75 0.00 - Jarir Marketing Co 177.80 0.23 17,138 Raysut Cement Co 0.00 National Consumer Holding Co 84.00 0.00 100 0.59 - Al Qudra Holding Pjsc 1.08 -10.00 100,000 Arab National Bank 33.40 -0.30 88,714 Phoenix Power Co Saoc 0.00 Amwal International Investme 52.00 1.96 32,870 0.12 3,811 Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 73.70 0.27 190,385 Packaging Co Ltd 0.00 Equipment Holding Co K.S.C.C 27.70 0.73 900 2.21 - Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 29.35 -0.17 54,982 Ooredoo 1.54 Arkan Al Kuwait Real Estate 79.00 -3.42 39,700 0.53 333,799 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Middle East Specialized Cabl 7.90 0.00 324,241 Ominvest 0.00 Gfh Financial Group Bsc 104.00 0.00 1,302,496 0.36 38,499 Al Buhaira National Insuranc 2.20 0.00 - Al Khaleej Training And Educ 15.86 -0.88 223,134 Oman United Insurance Co -1.23 Energy House Holding Co Kscp 31.50 1.61 150 0.32 6,000 Al Ain Ahlia Ins. Co. 38.00 0.00 - Al Sagr Co-Operative Insuran 28.25 -1.05 264,843 Oman Telecommunications Co 0.00 Kuwait Co For Process Plant 163.00 0.00 5,000 0.75 82,301 Agthia Group Pjsc 4.83 0.84 220,603 Trade Union Cooperative Insu 23.84 -0.17 447,600 Oman Refreshment Co 0.00 Al Maidan Dental Clinic Co K 0.00 0.00 - 1.75 - Abu Dhabi Ship Building Co 1.95 0.00 - Arabia Insurance Cooperative 20.40 -0.68 132,718 Oman Qatar Insurance Co 0.00 National Shooting Company 16.50 0.00 4,501 0.12 - Abu Dhabi Natl Co For Buildi 0.54 0.00 102,070 Saudi Chemical Company 36.10 0.70 98,907 Oman Packaging 0.00 Al-Ahleia Insurance Co Sakp 388.00 1.84 1,315,500 0.28 - Abu Dhabi National Takaful C 4.40 0.00 - Fawaz Abdulaziz Alhokair & C 26.00 0.19 253,445 Oman Oil Marketing Company 0.00 Wethaq Takaful Insurance Co 27.90 0.00 30,000 1.15 - Abu Dhabi National Oil Co Fo 2.34 -2.50 435,605 Bupa Arabia For Cooperative 92.20 0.22 84,464 Oman National Engineering An 0.00 Salbookh Trading Co Kscp 44.80 0.00 56,099 0.16 - Abu Dhabi National Insurance 3.85 0.00 - Wafa Insurance 14.20 5.81 1,566,415 Oman Investment & Finance -1.77 Aqar Real Estate Investments 72.00 0.00 10,000 0.11 44,020 Abu Dhabi National Hotels 2.79 0.00 - Jabal Omar Development Co 39.60 -0.88 264,600 Oman Intl Marketing 0.00 Hayat Communications 79.90 0.00 210,000 0.52 - Abu Dhabi National Energy Co 1.14 -3.39 3,000 Saudi Basic Industries Corp 128.20 -0.31 2,802,574 Oman Flour Mills 0.51 Soor Fuel Marketing Co Ksc 131.00 0.77 1,014,051 0.79 15,000 Saudi Kayan Petrochemical Co 15.10 1.34 11,244,474 Oman Fisheries Co -1.79 Tamkeen Holding Co 15.00 0.00 576 0.11 227,137 Etihad Atheeb Telecommunicat 5.36 -0.74 351,986 Oman Europe Foods Industries 0.00 Burgan Co For Well Drilling 86.00 0.00 1,044,138 1.00 - Co For Cooperative Insurance 71.30 -0.56 210,946 Oman Education & Training In 5.71 BAHRAIN Kuwait Resorts Co Kscc 55.10 -6.45 83,720 0.19 50,000 National Petrochemical Co 29.10 -1.52 137,752 Oman Chromite 0.00 Oula Fuel Marketing Co 127.00 1.60 28,438 3.64 - Gulf Union Cooperative Insur 15.98 1.27 196,109 Oman Chlorine 0.00 Palms Agro Production Co 0.00 0.00 - 0.40 - Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 16.52 0.61 251,170 Oman Ceramic Company 0.00 Mubarrad Holding Co Ksc 58.50 0.00 12,100 0.42 - Basic Chemical Industries 24.00 -0.74 103,817 Oman Cement Co -2.06 Zain Bahrain Bscc 0.00 0.00 - Shuaiba Industrial Co 249.00 0.00 100 0.38 10,500 Saudi Steel Pipe Co 19.46 -0.61 43,619 Oman Cables Industry 0.00 United Paper Industries Bsc 0.00 0.00 - Aan Digital Services Co 20.40 0.49 52,520 0.89 20,000 Buruj Cooperative Insurance 31.50 -0.79 42,355 Oman & Emirates Inv(Om)50% 0.00 United Gulf Holding Bsc 1.00 0.00 3,200 First Takaful Insurance Co 40.00 0.00 100 0.12 - Mouwasat Medical Services Co 94.00 -0.53 20,075 Natl Aluminium Products 2.94 Trafco Group Bsc 0.00 0.00 - Kuwaiti Syrian Holding Co 31.00 0.00 364,799 0.35 10,900 Southern Province Cement Co 41.30 -0.12 136,550 National Securities 0.00 Takaful International Co 0.00 0.00 - National Cleaning Company 50.00 -1.96 180,885 0.04 - Maadaniyah 18.96 -0.52 65,209 National Real Estate Develop 0.00 Seef Properties 0.23 -1.71 162,940 United Real Estate Company 64.90 3.02 42,101 5.00 - Yamama Cement Co 16.06 0.50 502,238 National Pharmaceutical 0.00 National Bank Of Bahrain Bsc 0.60 -2.46 317,265 Agility 773.00 0.39 1,770,758 0.12 - Jazan Energy And Development 16.00 0.00 238,510 National Mineral Water 0.00 Nass Corp Bsc 0.11 -1.87 100,000 Kuwait & Middle East Fin Inv 22.00 0.00 70,000 0.10 - Zamil Industrial Investment 24.14 0.42 38,924 National Life & General Insu 0.00 Khaleeji Commercial Bank 0.08 0.00 99,000 Fujairah Cement Industries 70.00 3.55 10,000 0.32 - Alujain Corporation (Alco) 29.90 -1.48 221,805 National Gas Co -1.16 Ithmaar Holding Bsc 0.10 -4.76 393,888 Livestock Transport & Tradng 200.00 0.00 750 0.34 200,000 Tabuk Agricultural Developme 11.30 -0.18 66,629 National Finance Co 0.00 Investcorp Bank -$Us 0.00 0.00 - International Resorts Co 22.10 0.00 163,101 0.13 1,000 United Co-Operative Assuranc 12.94 -1.07 202,211 National Detergent Co Saog 0.00 Inovest Co Bsc 0.28 0.00 50,000 National Industries Grp Hold 157.00 1.29 4,268,493 0.67 - Qassim Cement/The 38.95 -0.13 22,173 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.53 0.00 4,860 Warba Insurance Co 61.00 0.00 12,504 3.75 - Saudi Advanced Industries 13.60 1.34 193,064 National Bank Of Oman Saog -2.75 Gfh Financial Group Bsc 0.38 -2.60 113,356 First Dubai Real Estate Deve 39.50 -5.95 18,000 0.18 69,126 Kingdom Holding Co 8.72 -0.34 92,121 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.11 0.00 87,500 Al Arabi Group Holding Co 72.00 0.00 26,250 0.08 - Saudi Arabian Amiantit Co 6.80 1.19 638,920 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.10 0.00 400,000 Mobile Telecommunications Co 425.00 2.16 4,091,270 0.80 - Al Jouf Agriculture Developm 25.45 0.39 40,054 Muscat Gases Company Saog 0.00 Delmon Poultry Co 0.00 0.00 - Eff ect Real Estate Co 21.00 0.00 500 0.32 - Saudi Industrial Development 9.20 0.00 242,373 Muscat Finance -2.25 Bmmi Bsc 0.72 0.00 5,001 Tamdeen Real Estate Co Ksc 0.00 0.00 - 0.09 37,500 Riyad Bank 16.20 0.12 673,582 Muscat City Desalination Co -1.33 Bbk Bsc 0.45 0.00 34,500 Al Mudon Intl Real Estate Co 29.00 2.84 10 0.15 21,392 The National Agriculture Dev 35.90 0.00 44,151 Majan Glass Company 0.00 Bahrain Telecom Co 0.24 0.83 27,500 Kuwait Cement Co Ksc 410.00 -2.38 182,360 0.18 - Halwani Bros Co 53.20 1.53 22,211 Majan College 0.00 Bahrain National Holding 0.00 0.00 - Sharjah Cement & Indus Devel 76.00 -7.32 10,000 0.45 4,000 Arabian Pipes Co 12.36 -0.48 189,355 Hsbc Bank Oman -0.88 Bahrain Kuwait Insurance 0.33 0.00 6,126 Kuwait Portland Cement Co 1,043.00 -3.43 125,000 0.11 1,225,239 Eastern Province Cement Co 24.40 0.33 11,938 Hotels Management Co Interna 0.00 Bahrain Islamic Bank 0.13 0.00 208,310 Educational Holding Group 309.00 0.00 40,000 1.25 - Al Gassim Investment Holding 12.10 0.17 168,077 Gulf Stone 0.00 Bahrain Flour Mills Co 0.36 0.00 4,908 Asiya Capital Investments Co 39.30 0.00 246,974 0.12 - Filing & Packing Materials M 34.15 -0.15 39,665 Gulf Mushroom Company 0.00 Bahrain Duty Free Complex 0.71 -0.70 11,500 Kuwait Investment Co 112.00 0.00 15,285 0.31 - Saudi Cable Co 8.68 1.52 291,522 Gulf Investments Services -1.96 Bahrain Commercial Facilitie 0.75 0.00 10,000 Burgan Bank 260.00 2.36 712,694 0.10 658,170 Tihama Advertising & Public 50.90 5.38 1,199,237 Gulf Invest. Serv. Pref-Shar 0.00 Bahrain Cinema Co ` 0.00 10,000 Kuwait Projects Co Holdings 247.00 1.23 1,579,146 0.11 - Saudi Investment Bank/The 18.24 0.66 125,810 Gulf International Chemicals 0.00 Arab Banking Corp Bsc-$Us 0.36 0.00 1,126,343 Al Madina For Finance And In 28.20 -2.76 24,000 0.19 - Astra Industrial Group 19.38 1.15 251,449 Gulf Hotels (Oman) Co Ltd 0.00 Aluminium Bahrain Bsc 0.64 0.00 639,784 Kuwait Insurance Co 275.00 -1.79 29,800 9.50 - Saudi Public Transport Co 14.82 -0.54 97,181 Global Fin Investment 0.00 Albaraka Banking Group 0.30 0.00 35,566 Al Masaken Intl Real Estate 0.00 0.00 - 0.10 - Taiba Holding Co 31.20 0.32 26,045 Galfar Engineering&Contract -0.90 Al-Salam Bank 0.11 -2.59 47,440 Intl Financial Advisors 26.00 0.39 2,172,282 0.11 3,877,647 Saudi Industrial Export Co 213.40 0.19 21,601 Galfar Engineering -Prefer 0.00 Ahli United Bank B.S.C 0.61 0.83 730,000 First Investment Co Kscc 39.90 0.00 715,000 0.39 - Saudi Real Estate Co 31.50 -4.40 354,616 Financial Services Co. 0.00 #N/A Invalid Security 0.00 0.00 - Al Mal Investment Company 19.50 -2.01 292,100 0.18 - Saudia Dairy & Foodstuff Co 96.20 -0.82 32,718 Financial Corp/The 0.00 #N/A Invalid Security 0.00 0.00 - Bayan Investment Co Kscc 39.90 0.00 60,011 0.10 - National Shipping Co Of/The 29.80 -0.50 186,091 Dhofar Tourism 0.00 #N/A Invalid Security 0.00 0.00 - Egypt Kuwait Holding Co Sae 343.00 0.00 6,000 0.49 - Methanol Chemicals Co 9.55 0.00 492,175 Dhofar Poultry 0.00 #N/A Invalid Security 0.00 0.00 - Coast Investment Development 34.10 0.00 415,001 0.18 - Chubb Arabia Cooperative Ins 23.00 0.00 133,365 Dhofar Intl Development 0.00 #N/A Invalid Security 0.00 0.00 - Privatization Holding Compan 56.90 1.79 420,047 0.31 - Mobile Telecommunications Co 6.76 -0.59 1,423,510 Dhofar Insurance 0.00 #N/A Invalid Security 0.00 0.00 - Injazzat Real State Company 89.00 0.00 40,250 0.16 - Saudi Arabian Coop Ins Co 15.38 1.72 394,559 Dhofar Fisheries & Food Indu 0.00 #N/A Invalid Security 0.00 0.00 - Kuwait Cable Vision Sak 30.00 275.00 21 1.28 - Axa Cooperative Insurance 22.96 0.00 475,167 Dhofar Cattlefeed 0.00 #N/A Invalid Security 0.00 0.00 - Sanam Real Estate Co Kscc 28.50 0.00 56,388 0.17 - Alsorayai Group 14.32 -0.14 2,843,681 Dhofar Beverages Co 0.00 #N/A Invalid Security 0.00 0.00 - Ithmaar Holding Bsc 31.10 -6.61 2,827,850 0.26 - Bank Albilad 23.44 0.34 395,876 Construction Materials Ind 0.00 #N/A Invalid Security 0.00 0.00 - Aviation Lease And Finance C 353.00 0.86 167,700 0.03 1,960 Al-Hassan G.I. Shaker Co 11.62 -0.68 1,521,725 Computer Stationery Inds 0.00 #N/A Invalid Security 0.00 0.00 - Arzan Financial Group For Fi 27.40 -6.80 61,400 0.26 - Wataniya Insurance Co 26.85 2.87 125,560 Bankmuscat Saog 0.00 #N/A Invalid Security 0.00 0.00 - Ajwan Gulf Real Estate Co 21.30 0.00 922,492 0.38 1,529,678 Abdullah Al Othaim Markets 75.80 -0.26 166,987 Bank Sohar 0.00 #N/A Invalid Security 0.00 0.00 - Kuwait Business Town Real Es 43.20 0.70 243,036 0.14 10,617 Hail Cement 9.07 0.11 137,974 Bank Nizwa 2.22 Future Kid Entertainment And 100.00 0.00 30,000 0.09 6,036,858 Saudi Re For Cooperative Rei 8.95 -0.56 1,051,762 Bank Dhofar Saog 0.17 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, June 26, 2018 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 24,183.74 -397.15 Apple Inc 182.43 -1.35 12,334,640 S&P 500 Index 2,714.47 -40.41 Microsoft Corp 98.55 -1.85 12,551,904 Nasdaq Composite Index 7,512.18 -180.64 Exxon Mobil Corp 79.74 -2.02 3,625,594 S&P/Tsx Composite Index 16,248.10 -202.04 Johnson & Johnson 122.62 -0.18 2,706,167 Mexico Bolsa Index 46,659.50 -78.14 General Electric Co 12.85 -1.57 22,233,802 Brazil Bovespa Stock Idx 70,070.66 -569.99 Jpmorgan Chase & Co 104.11 -1.55 6,909,289 Ftse 100 Index 7,509.84 -172.43 Procter & Gamble Co/The 77.36 -0.09 4,437,825 Cac 40 Index 5,283.86 -103.52 Walmart Inc 86.07 1.47 6,557,672 Dax Index 12,270.33 -309.39 Verizon Communications Inc 49.41 -0.71 8,798,870 Ibex 35 Tr 9,617.90 -174.20 Pfizer Inc 36.31 -0.56 7,033,014 Nikkei 225 22,338.15 -178.68 Visa Inc-Class A Shares 130.69 -3.43 3,608,699 Japan Topix 1,728.27 -16.56 Chevron Corp 122.25 -2.28 2,068,427 Hang Seng Index 28,961.39 -377.31 Coca-Cola Co/The 43.46 0.49 4,488,863 All Ordinaries Indx 6,308.65 -13.45 Intel Corp 50.38 -4.04 18,167,728 Nzx All Index 1,592.52 +0.10 Merck & Co. Inc. 60.93 -0.88 3,743,033 Bse Sensex 30 Index 35,470.35 -219.25 Cisco Systems Inc 42.03 -2.71 10,289,785 Nse S&P Cnx Nifty Index 10,762.45 -59.40 Home Depot Inc 195.95 -0.74 1,652,591 Straits Times Index 3,260.84 -26.56 Intl Business Machines Corp 139.29 -1.41 3,887,258 Karachi All Share Index 29,756.69 -395.60 Walt Disney Co/The 104.30 -1.92 2,531,967 Jakarta Composite Index 5,859.08 +37.27 Unitedhealth Group Inc 251.26 -1.22 743,150 3M Co 194.54 -1.00 902,816 Mcdonald’s Corp 159.60 -3.01 2,089,565 Nike Inc -Cl B 72.53 -1.23 3,228,062 TOKYO United Technologies Corp 123.92 -0.76 1,719,826 Boeing Co/The 329.20 -2.87 2,240,301 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 220.69 -2.36 1,341,102 Sumitomo Realty & Developmen 4,154.00 -0.91 832,000 American Express Co 98.67 1.48 4,475,743 Sumitomo Metal Mining Co Ltd 4,238.00 -0.52 1,114,300 Caterpillar Inc 136.06 -2.78 2,754,687 Orix Corp 1,774.50 -0.78 2,829,300 Travelers Cos Inc/The 122.72 -1.36 436,662 Daiwa Securities Group Inc 634.40 2.36 8,116,200 Traders at the Frankfurt Stock Exchange. The DAX 30 lost 2.5% to 12,270.33 points yesterday. Softbank Group Corp 8,198.00 -2.37 4,371,600 Mizuho Financial Group Inc 186.10 0.00 89,222,000 Central Japan Railway Co 23,590.00 -2.70 331,200 FTSE 100 Nitori Holdings Co Ltd 18,305.00 -5.38 651,700 T&D Holdings Inc 1,676.00 -0.06 2,018,000 Company Name Lt Price % Chg Volume Toyota Motor Corp 7,091.00 -1.50 5,530,100 Hoya Corp 6,358.00 -0.02 1,486,800 Wpp Plc 1,204.50 -1.31 2,139,471 Sumitomo Mitsui Trust Holdin 4,375.00 -0.36 875,200 European markets sink Worldpay Group Plc 0.00 0.00 - Japan Tobacco Inc 3,211.00 -0.09 7,572,300 Wolseley Plc 0.00 0.00 - Osaka Gas Co Ltd 2,204.00 -1.01 1,631,900 Wm Morrison Supermarkets 247.60 -0.76 6,585,906 Sumitomo Electric Industries 1,626.00 -0.91 1,829,100 Whitbread Plc 3,960.00 -2.44 402,373 Ono Pharmaceutical Co Ltd 2,688.00 -0.11 1,516,100 Vodafone Group Plc 184.18 -1.66 62,270,194 Ajinomoto Co Inc 2,062.50 -0.46 1,331,900 United Utilities Group Plc 751.00 0.05 1,980,719 on festering trade war Mitsui Fudosan Co Ltd 2,682.00 -1.76 2,457,000 Unilever Plc 4,114.00 -0.47 2,387,424 Daikin Industries Ltd 13,435.00 -1.03 739,300 Tui Ag-Di 1,656.50 -4.36 1,106,912 Toray Industries Inc 861.20 -1.13 5,397,800 seeks to close trade gaps with other “Whether or not they do, the un- Travis Perkins Plc 1,418.50 -0.04 620,826 AFP Bridgestone Corp 4,377.00 -0.55 1,747,900 Tesco Plc 261.10 -0.23 22,473,552 major powers. certainty is probably already damaging Sony Corp 5,491.00 -0.09 4,029,200 London Taylor Wimpey Plc 178.25 -1.57 10,253,006 Key European markets were up to confi dence and investment.” Astellas Pharma Inc 1,740.00 -1.02 5,014,400 Standard Life Plc 0.00 0.00 - 2.5% lower at the close, while on Wall Those concerns were stoked yester- Jxtg Holdings Inc 748.30 1.08 8,584,300 Standard Chartered Plc 692.80 -2.57 8,713,573 Nippon Steel & Sumitomo Meta 2,174.50 0.25 2,709,400 orld stock markets sank yes- Street the Dow fell 1.5% approaching day by reports that the Treasury De- St James’s Place Plc 1,152.00 -2.58 1,330,179 Suzuki Motor Corp 6,173.00 -2.34 1,286,100 terday on worries over a fes- midday in New York and the Nasdaq partment is looking at an emergency Sse Plc 1,342.00 -0.67 2,414,799 Nippon Telegraph & Telephone 5,137.00 -0.39 1,546,600 tering global trade war after was over 2% weaker. law beefi ng up scrutiny of investment Smith & Nephew Plc 1,386.50 -0.64 1,871,915 W Sompo Holdings Inc 4,548.00 -0.35 719,700 Sky Plc 1,415.00 0.00 1,517,039 US President Donald Trump threat- London’s FTSE 100 lost 2.3% at by Chinese fi rms in sensitive US indus- Daiwa House Industry Co Ltd 3,694.00 -0.89 1,221,900 Shire Plc 4,042.50 -0.58 2,048,048 ened fresh tariff s on European cars, 7,508.81 points, Frankfurt’s DAX 30 tries. Komatsu Ltd 3,101.00 -0.35 3,939,500 Severn Trent Plc 1,929.00 -0.05 1,166,263 amid reports he is mulling curbs on was down 2.5% to 12,270.33 and Paris’s Treasury Secretary Steven Mnuchin West Japan Railway Co 8,043.00 -1.39 491,200 Schroders Plc 3,092.00 -2.06 289,560 Chinese investment in America. CAC 40 shed 1.9% to 5,283.86 points at is expected to push the plan this week, Murata Manufacturing Co Ltd 18,125.00 -0.66 804,900 Sainsbury (J) Plc 312.90 -1.45 6,512,562 Kansai Electric Power Co Inc 1,564.50 -0.32 1,631,600 “Markets start the week on a close yesterday. Bloomberg News reported. Sage Group Plc/The 623.20 -1.39 2,353,388 Denso Corp 5,406.00 -0.81 1,333,700 risk-off tone after President Trump Charles Schwab analysts said “glo- Oil prices meanwhile fell yesterday Abi Sab Group Holding Ltd 0.00 0.00 - Dai-Ichi Life Holdings Inc 1,966.00 1.03 4,567,100 threatened to impose tariffs on im- bal trade tensions remain heightened, after the Organisation of Petroleum Rsa Insurance Group Plc 669.20 -1.85 2,282,206 Mazda Motor Corp 1,353.50 -1.10 3,556,400 Royal Mail Plc 492.00 -2.34 3,277,389 ported cars from Europe – and he is as China and the US have lobbed tariff Exporting Countries (Opec) agreed Mitsui & Co Ltd 1,808.50 0.42 5,667,100 Royal Dutch Shell Plc-B Shs 2,624.00 -3.08 4,810,617 now planning to curb Chinese invest- actions at each other and the US pro- Friday with non-Opec members in- Kao Corp 8,514.00 1.35 1,543,300 Royal Dutch Shell Plc-A Shs 2,539.50 -2.66 4,852,616 ments in ‘sensitive’ US industries,” posed new tariff s on EU automakers cluding Russia to lift crude output by Sekisui House Ltd 1,911.50 -0.65 1,419,100 Royal Bank Of Scotland Group 257.10 -1.68 14,326,966 one million barrels per day. Oriental Land Co Ltd 11,725.00 -0.89 306,000 said analyst Konstantinos Anthis at last week”. Rolls-Royce Holdings Plc 916.00 -2.57 3,301,840 Secom Co Ltd 8,355.00 -0.12 350,100 traders ADS Securities. Equities, which are widely regarded The Opec news had catapulted the Rio Tinto Plc 4,042.50 -3.34 2,689,468 Tokio Marine Holdings Inc 5,313.00 -0.36 1,324,100 Trump shows no sign of back- as a risky asset in times of economic market higher Friday because of a lack Rexam Ltd 0.00 0.00 - Aeon Co Ltd 2,372.50 0.15 2,014,100 of clarity over the production increase Relx Plc 1,601.50 -1.93 2,931,288 ing down and threatened last week to uncertainty, had already suff ered a Fanuc Corp 22,180.00 -0.22 700,900 Reckitt Benckiser Group Plc 6,078.00 -3.78 1,441,318 impose a 20% tariff on cars imports pummelling last week in response to – and concerns over spare capacity. Daito Trust Construct Co Ltd 18,095.00 -2.40 212,700 Randgold Resources Ltd 5,652.00 -1.22 297,451 from the European Union. That came tit-for-tat warnings by Beijing and But prices handed back some of Otsuka Holdings Co Ltd 5,527.00 -0.02 1,144,100 Prudential Plc 1,744.00 -3.86 4,716,892 just after the EU imposed levies on US Washington. those gains yesterday. Resona Holdings Inc 586.40 0.60 8,345,900 Provident Financial Plc 620.20 -3.90 751,761 Asahi Kasei Corp 1,396.50 0.18 1,946,800 products, including bourbon, jeans That has fuelled concerns about the “Saudi Arabian Energy Minister Persimmon Plc 2,523.00 -2.06 1,253,708 Kirin Holdings Co Ltd 2,938.50 -2.89 2,200,000 and motorcycles. potential damage to the world econo- (Khalid) al-Falih talked of output by Pearson Plc 862.20 -0.44 2,449,114 Mitsubishi Ufj Financial Gro 625.00 -0.05 52,671,400 “The United States is insisting that my from a full-blown global trade war. Opec and the participating non-Opec Paddy Power Betfair Plc 8,210.00 -1.74 88,436 Marubeni Corp 827.90 -0.24 3,662,500 Old Mutual Plc 210.90 23.87 - all countries that have placed artifi cial “Downside risks to the economic countries rising by a total of one mil- Mitsubishi Chemical Holdings 904.20 0.80 6,888,300 Next Plc 5,962.00 -0.80 364,916 trade Barriers and Tariff s on goods go- outlook are rising, with escalating lion barrels per day in the second half Fast Retailing Co Ltd 51,640.00 -0.96 477,000 National Grid Plc 830.80 -0.38 4,521,706 ing into their country, remove those trade tensions currently at the fore- of the year,” said Commerzbank ana- Ms&Ad Insurance Group Holdin 3,415.00 -0.23 1,082,600 Mondi Plc 1,974.00 -2.03 1,027,702 Barriers & Tariff s or be met with more front of investors’ minds,” wrote Citi lysts. Kubota Corp 1,806.00 -0.19 2,887,500 Merlin Entertainment 380.50 -1.12 1,663,319 Seven & I Holdings Co Ltd 4,780.00 -0.83 1,577,700 than Reciprocity by the USA. Trade analysts in a research note. “In our view, this should be suffi - Mediclinic International Plc 534.20 -1.51 1,369,355 Inpex Corp 1,129.50 1.76 6,946,000 must be fair and no longer a one way “The next few months will show if cient to rebalance the oil market, so we Marks & Spencer Group Plc 295.50 -0.54 5,383,225 Sumitomo Mitsui Financial Gr 4,273.00 -0.12 4,385,400 street,” Trump tweeted in defence of these tensions are likely to deteriorate expect the price to decrease to $70 per London Stock Exchange Group 4,400.00 -1.37 359,837 Ana Holdings Inc 4,140.00 -1.57 792,200 Lloyds Banking Group Plc 61.24 -1.42 145,703,775 his protectionist trade policy which towards full-scale trade war. barrel in the third quarter.” Mitsubishi Electric Corp 1,451.00 -0.65 4,583,000 Legal & General Group Plc 264.20 -1.97 12,310,357 Honda Motor Co Ltd 3,310.00 -0.96 3,292,200 Land Securities Group Plc 950.30 -0.23 1,741,228 Tokyo Gas Co Ltd 2,848.50 0.14 1,149,800 Kingfisher Plc 300.90 -0.59 5,848,664 HONG KONG HONG KONG Tokyo Electron Ltd 18,635.00 -1.69 1,042,300 Johnson Matthey Plc 3,605.00 -2.30 398,525 Panasonic Corp 1,487.00 -1.23 5,553,300 Itv Plc 177.00 0.23 11,656,295 Fujitsu Ltd 671.80 -0.62 6,668,000 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 186.00 -3.05 5,387,128 East Japan Railway Co 10,505.00 -2.87 769,700 Intl Consolidated Airline-Di 697.80 -3.96 5,820,094 Aluminum Corp Of China Ltd-H 3.47 -3.61 33,250,986 Hong Kong & China Gas 15.18 1.61 24,367,800 Itochu Corp 2,005.00 0.05 3,001,300 Intertek Group Plc 5,574.00 -1.90 204,502 Bank Of East Asia Ltd 31.30 -2.03 1,400,424 Hong Kong Exchanges & Clear 239.20 -1.24 7,806,101 Fujifilm Holdings Corp 4,222.00 0.21 970,900 Intercontinental Hotels Grou 4,725.00 -2.15 559,484 Bank Of China Ltd-H 3.87 -0.77 437,951,005 Hsbc Holdings Plc 73.75 -0.87 18,142,499 Yamato Holdings Co Ltd 3,373.00 -1.98 1,485,200 Inmarsat Plc 632.20 4.32 10,532,486 Bank Of Communications Co-H 6.12 -0.65 32,598,147 Hutchison Whampoa Ltd 0.00 0.00 - Chubu Electric Power Co Inc 1,647.50 -0.09 903,400 Informa Plc 818.40 -0.80 3,531,305 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 5.97 -1.00 345,658,356 Mitsubishi Estate Co Ltd 1,957.00 -1.19 2,153,500 Imperial Brands Plc 2,713.00 -0.55 1,588,530 Boc Hong Kong Holdings Ltd 38.35 -0.13 7,726,780 Li & Fung Ltd 2.94 -2.00 9,926,400 Mitsubishi Heavy Industries 3,955.00 -0.73 1,347,600 Hsbc Holdings Plc 702.30 -2.58 21,988,964 Cathay Pacific Airways 13.00 -0.46 1,770,000 Mtr Corp 43.25 -0.46 2,980,926 Shiseido Co Ltd 8,774.00 -2.60 1,856,000 Hargreaves Lansdown Plc 1,953.50 -2.23 678,943 Ck Hutchison Holdings Ltd 83.95 -1.00 3,596,208 New World Development 11.12 -1.59 14,834,383 Shionogi & Co Ltd 5,610.00 -1.01 890,300 Hammerson Plc 527.20 -1.20 4,012,258 China Coal Energy Co-H 3.37 -0.59 10,837,793 Petrochina Co Ltd-H 5.73 0.35 154,395,613 Recruit Holdings Co Ltd 3,146.00 -1.29 2,356,900 Glencore Plc 369.00 -4.69 36,052,502 China Construction Bank-H 7.31 -0.95 470,804,764 Ping An Insurance Group Co-H 74.50 -1.52 63,445,923 Japan Airlines Co Ltd 4,059.00 -0.90 809,000 Glaxosmithkline Plc 1,501.00 -2.91 9,749,362 China Life Insurance Co-H 20.55 -1.44 36,264,783 Power Assets Holdings Ltd 54.70 0.18 3,288,915 Nitto Denko Corp 8,221.00 -0.76 436,800 Gkn Plc 482.40 0.00 857,601 China Merchants Port Holding 16.32 -1.69 4,527,012 Sino Land Co 12.76 -2.45 4,221,350 Kddi Corp 3,016.00 -0.69 2,968,900 Fresnillo Plc 1,145.50 -2.34 781,251 China Mobile Ltd 68.65 -0.07 21,181,667 Sun Hung Kai Properties 120.40 -1.23 3,252,057 Rakuten Inc 708.40 0.57 5,795,300 Experian Plc 1,828.50 -1.43 1,777,582 China Overseas Land & Invest 25.95 -3.35 21,769,288 Swire Pacific Ltd - Cl A 84.60 -0.94 1,512,154 Kyocera Corp 6,158.00 -0.69 824,500 Easyjet Plc 1,724.00 -3.71 1,433,507 China Petroleum & Chemical-H 6.97 -1.13 171,460,743 Tencent Holdings Ltd 388.80 -2.16 21,688,209 Nissan Motor Co Ltd 1,067.50 -1.02 10,142,800 Dixons Carphone Plc 199.90 1.47 3,904,411 China Resources Beer Holding 38.00 0.26 7,509,086 Wharf Holdings Ltd 26.00 -0.38 4,862,342 Direct Line Insurance Group 344.60 -1.06 3,724,888 China Resources Land Ltd 26.50 -3.81 12,785,037 China Resources Power Holdin 14.12 -0.84 6,922,681 Diageo Plc 2,681.50 -2.38 4,024,955 SENSEX Dcc Plc 6,820.00 -0.80 214,227 China Shenhua Energy Co-H 20.70 -0.48 15,517,424 GCC INDICES Crh Plc 2,654.00 -2.68 1,902,545 China Unicom Hong Kong Ltd 9.69 -1.02 13,195,661 Compass Group Plc 1,616.50 -0.34 3,618,935 Company Name Lt Price % Chg Volume Citic Ltd 10.90 -1.80 6,731,590 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,500.00 -1.38 1,005,613 Clp Holdings Ltd 80.20 0.00 3,156,941 Doha Securities Market Zee Entertainment Enterprise 559.05 -1.18 825,415 8,936.78 -68.56 Centrica Plc 157.65 -0.22 18,598,431 Cnooc Ltd 12.64 2.43 134,913,371 Saudi Tadawul Yes Bank Ltd 334.15 -0.28 6,063,549 8,342.35 -8.61 Carnival Plc 4,215.00 -11.13 1,474,042 Cosco Shipping Ports Ltd 6.69 -1.76 1,485,466 Kuwait Stocks Exchange Wipro Ltd 257.50 -0.29 1,684,559 - - Capita Plc 160.00 -2.38 6,586,829 Esprit Holdings Ltd 2.66 7.69 17,975,863 Bahrain Stock Exchage Vedanta Ltd 230.65 0.92 43,309,861 1,301.57 -5.17 Burberry Group Plc 2,126.00 -1.67 1,625,106 Fih Mobile Ltd 1.20 -4.00 12,697,667 Oman Stock Market Ultratech Cement Ltd 3,752.00 3.05 511,957 4,583.27 -10.01 Bunzl Plc 2,276.00 -0.87 643,357 Hang Lung Properties Ltd 16.54 -0.48 4,422,775 Abudhabi Stock Market Tech Mahindra Ltd 696.15 0.72 1,907,729 4,537.30 -13.21 Bt Group Plc 216.85 -0.87 21,067,346 Hang Seng Bank Ltd 194.50 -0.10 1,233,555 Dubai Financial Market Tata Steel Ltd 558.60 -0.58 4,169,795 2,867.85 -61.21 British Land Co Plc 677.80 -1.43 2,361,525 Henderson Land Development 42.30 -0.94 3,433,228 Tata Power Co Ltd 76.35 0.26 4,721,158 British American Tobacco Plc 3,803.00 -2.76 2,847,136 Tata Motors Ltd 289.40 -6.04 17,767,202 Bp Plc 557.00 -3.40 28,132,184 Tata Consultancy Svcs Ltd 1,819.25 0.52 2,298,302 Bhp Billiton Plc 1,602.80 -3.81 6,262,450 Sun Pharmaceutical Indus 571.80 -0.94 15,081,626 Berkeley Group Holdings/The 3,757.00 -1.62 633,510 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 268.45 -1.68 11,416,684 Barratt Developments Plc 523.20 -0.87 5,245,630 Reliance Industries Ltd 1,004.45 -0.80 5,408,598 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 190.46 -1.83 24,604,511 Punjab National Bank 79.80 -2.56 19,465,370 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 610.40 -2.34 5,568,821 Power Grid Corp Of India Ltd 194.20 -1.77 5,575,253 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 821.20 -2.24 938,368 Oil & Natural Gas Corp Ltd 156.65 -1.82 7,181,881 this data.” Aviva Plc 502.00 -2.49 10,035,466 Ntpc Ltd 154.65 -1.68 6,909,225 Astrazeneca Plc 5,201.00 -0.54 1,280,037 Maruti Suzuki India Ltd 8,793.00 -0.92 285,157 Associated British Foods Plc 2,836.00 0.04 889,295 Mahindra & Mahindra Ltd 905.60 -0.29 3,064,852 Ashtead Group Plc 2,213.00 -1.73 1,694,757 Lupin Ltd 913.45 1.17 4,172,395 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,268.15 -2.44 1,726,200 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 995.20 -3.24 1,663,155 DINAR DINAR Kotak Mahindra Bank Ltd 1,328.00 0.50 1,102,267 Anglo American Plc 1,620.20 -4.53 4,785,427 Itc Ltd 262.60 -0.96 14,197,490 Admiral Group Plc 1,889.50 -1.18 311,686 Infosys Ltd 1,272.45 1.97 4,010,992 3I Group Plc 903.80 -3.07 1,906,318 Indusind Bank Ltd 1,969.95 0.85 587,395 #N/A 0.00 0.00 - Idea Cellular Ltd 56.00 -7.51 30,475,662 Icici Bank Ltd 289.70 -3.64 17,184,389 TOKYO Housing Development Finance 1,893.80 -0.68 3,218,964 Hindustan Unilever Ltd 1,615.15 0.44 1,110,891 Hindalco Industries Ltd 218.40 -1.62 9,604,228 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,586.85 -1.40 366,686 Hitachi Ltd 781.60 -0.18 9,352,000 Hdfc Bank Limited 2,094.95 0.56 1,804,839 Takeda Pharmaceutical Co Ltd 4,526.00 1.30 4,865,600 Hcl Technologies Ltd 908.90 0.45 2,160,488 Jfe Holdings Inc 2,118.00 -0.80 2,819,600 Grasim Industries Ltd 1,006.55 -0.38 824,957 Sumitomo Corp 1,814.00 -0.68 3,051,000 Gail India Ltd 341.20 0.35 5,025,167 Canon Inc 3,712.00 0.51 3,507,100 Dr. Reddy’s Laboratories 2,290.15 -1.97 1,237,058 Nintendo Co Ltd 36,110.00 -1.01 1,159,400 Coal India Ltd 259.00 -2.21 4,443,679 Eisai Co Ltd 7,856.00 -1.74 715,900 Cipla Ltd 611.40 -0.71 3,405,191 Isuzu Motors Ltd 1,464.00 -2.20 1,842,700 Cairn India Ltd 0.00 0.00 - Unicharm Corp 3,303.00 -0.84 868,000 Bosch Ltd 17,909.95 -0.27 16,103 Shin-Etsu Chemical Co Ltd 9,800.00 -1.83 1,135,400 Bharti Airtel Ltd 374.15 -0.11 3,083,245 Smc Corp 41,960.00 -1.27 295,900 Bharat Petroleum Corp Ltd 412.00 -3.37 5,560,755 Mitsubishi Corp 3,083.00 -0.29 2,897,000 Bharat Heavy Electricals 73.35 -2.20 6,698,876 Asahi Group Holdings Ltd 5,546.00 -1.88 1,194,900 Bank Of Baroda 116.80 -3.87 12,380,708 Keyence Corp 64,460.00 -3.16 241,300 Bajaj Auto Ltd 2,801.30 -1.09 390,476 Nidec Corp 16,605.00 -1.95 586,400 Axis Bank Ltd 515.20 -1.99 5,159,518 Nomura Holdings Inc 540.20 0.33 14,052,700 Asian Paints Ltd 1,253.45 -1.12 961,149 Daiichi Sankyo Co Ltd 4,270.00 -1.04 1,331,000 Ambuja Cements Ltd 206.80 0.90 4,274,417 Subaru Corp 3,184.00 -2.93 4,812,400 Adani Ports And Special Econ 361.15 -1.27 1,783,863 Ntt Docomo Inc 2,807.50 -0.80 2,005,800 Acc Ltd 1,315.55 1.61 571,539 Gulf Times Tuesday, June 26, 2018 13 BUSINESS

Pakistan gas prices estimated to China, France to boost trade; jump 46%

Internews Islamabad EU raises ‘diffi cult issues’

After almost a four-year freeze, Reuters natural gas prices in Pakistan are Beijing estimated to jump by an aver- age 46% with eff ect from July 1 owing to expansion in supply hina said yesterday it would network, induction of imported buy more planes and agricul- gas and addition of millions of Ctural products from France and domestic gas connections on a work on market access issues, shoring political basis. up its trade ties with Europe as danger The Oil and Gas Regulatory Au- mounted of a tariff war with the United thority (Ogra) has forwarded two States. separate determinations regard- Chinese Premier Li Keqiang told ing the prescribed prices of two French Prime Minister Edouard troubled gas utilities Sui Southern Philippe late yesterday that China was Gas Company (SSGC) and Sui planning to purchase more planes this Northern Gas Pipelines Limited year and was ready for more talks with (SNGPL) to the government just France on buying Airbus aircraft. before the regulator’s chairperson “I explained to Prime Minister that in and a team of senior petroleum recent years we have bought quite a lot division off icials left for the United of passenger aircraft, and there needs to States on a three-week visit. be a period to digest this,” Li told a joint The increase in prescribed news conference. “In spite of this, we prices is based on estimated are still willing to strengthen co-oper- revenue requirements of the ation with France’s Airbus.” two utilities for the fiscal year China has struck a very diff erent tone 2018-19 and is worked out with the United States, having warned keeping in mind various projects that Boeing could become a casualty if under implementation and other the world’s two largest economies failed expenditures. to halt their slide towards a trade war. The regulator has determined Both China and the European Union up to 186% increase in gas are locked in their own trade disputes rates for the poorest categories with the United States, and China has of domestic and commercial been seeking common ground with the consumers who are currently EU in opposing what Beijing sees as US cross-subsidised, while the protectionism. prescribed rates for other cat- “We believe that relevant frictions egories industrial, cement, CNG, and disputes can be resolved via talks. power and commercial sectors There are no winners from fi ghting a have been jacked up by 27% to trade war,” Li said. 31% for the two gas utilities. “All sides should join together to ex- Under the law, Ogra is re- pand growth and not engage in putting quired to notify final consumer- up trade barriers or protectionism. This Chinese Premier Li Keqiang speaks during a meeting with French Prime Minister Edouard Philippe at the Great Hall of the People in Beijing yesterday. Li told Philippe late end prices for each category is good for nobody,” he said. yesterday that China was planning to purchase more planes this year and was ready for more talks with France on buying Airbus aircraft. based on recommendations of Later this week, the Trump adminis- the government. tration is expected to unveil new meas- said a contract with Beijing for 184 Air- global multilateral trading system. response to import duties on EU steel in China 2025” strategy. The “Made in The government can change ures to curb Chinese companies buying bus A320 narrow-body jets would be “Both sides believe that we must res- and aluminium by the US administra- China 2025” plan aims to upgrade Chi- the rates for various consumers stakes in US fi rms, giving another twist fi nalised soon. olutely oppose unilateralism and trade tion. na’s capabilities in advanced informa- by shifting the burden from one to a spiralling trade confl ict between the Li’s remarks appeared to strengthen protectionism and prevent such behav- A top EU offi cial, however, made it tion technology, aerospace, marine en- consumer category to the other world’s two largest economies. the chance of more business for Airbus, iour from causing volatility and reces- clear that Europe is not fully on the gineering, pharmaceuticals, advanced but without aff ecting the overall The US Treasury Department is without being specifi c on numbers. sion in the global economy,” Liu told a same page as China. energy vehicles, robotics and other revenue requirement deter- drafting curbs that would block fi rms “I’m glad that China has confi rmed media briefi ng after the talks. The EU and China discussed “dif- high-technology industries. mined by the regulator. with at least 25% Chinese ownership its strong willingness to soon fi rm up its Both China and the EU have already fi cult issues” such as state subsidies, Last month, European lawmakers Ogra has determined that from buying US companies with “in- commitment, made in January, to pur- announced retaliatory measures against forced tech transfers, and cyber secu- approved a far-reaching proposal for the SSGC which serves Sindh dustrially signifi cant technology,” a chase Airbus jets,” Philippe said. the United States punitive tariff s. rity issues during the talks, European tougher scrutiny of foreign invest- and Balochistan would need government offi cial briefed on the mat- China yesterday also signed an agree- China will impose additional 25% Union Commission Vice President Jyrki ments, partly in response to a fl urry of Rs167 bn during the next fiscal ter said on Sunday. ment to import beef from France. tariffs on 659 US goods worth $50bn Katainen said in a news conference fol- Chinese acquisitions of European fi rms. year to finance its ongoing Washington has complained that Last year, China ended an embargo on in response to the US announcement lowing the EU-China High-level Eco- Liu voiced hope that the EU would programmes. Therefore, it has China is misappropriating US tech- French beef that was fi rst imposed after that it will levy tariffs on Chinese im- nomic Dialogue in Beijing. take concrete steps to lower restrictions approved an increase of 45.54pc nology through joint venture rules and the mad cow disease crisis in Europe ports. Katainen said China and the EU need on European exports to China. (Rs184.34 per unit) in the aver- other policies, and it has already an- more than two decades ago. Tariffs on $34bn of US goods in- to work together to tackle overcapacity According to Liu the two sides ex- age prescribed price to Rs589.09 nounced tariff s on $34bn worth of Chi- Li also said China would buy more cluding agricultural products such as in sectors such as steel and aluminium, pect to exchange lists of proposals for per MMBTU (mn British thermal nese goods, the fi rst of a potential total farm products, without specifying. soybeans will take effect from July 6, specifi cally identifying industries that the bilateral investment agreement unit) from Rs404.75. of $450bn, as a result. Hosting talks on a bilateral invest- the Chinese commerce ministry said. Trump fi rst took aim at when he em- at a China-EU summit in Beijing next Likewise, the regulator has The new tariff s are due to take eff ect ment agreement with the European Soybeans are China’s biggest import barked on a tariff war month. approved the 2018-19 revenue on July 6. Union yesterday, Vice President Liu from the United States by value. He also urged China to prevent over- “It’s a big step forward but doesn’t requirement for the SNGPL at During a visit to China in January, He also stressed that China and the EU The European Union last week im- capacity in other industries, including mean an investment agreement will be Rs287bn, necessitating an aver- French President Emmanuel Macron had a common interest in defending the posed tariff s on a range of US goods in high-tech sectors covered by the “Made adopted immediately,” Katainen said. age prescribed price of Rs629.33 per MMBTU, an increase of 3.37% (Rs20.57 per unit) from Rs608.76. SNGPL’s service areas cover Punjab and Khyber Pakhtunkhwa. CBA to spin off wealth, mortgage broking businesses Ogra has determined gas pric- es for the poorest domestic and commercial consumers using Reuters tegration business model,” said Hugh low in June amid damaging revelations less than 100 cubic metres per Sydney Dive, chief investment officer at Atlas at the Royal Commission that it wrong- month at Rs294.55 per MMBTU, Funds Management, which owns CBA fully withdrew “advice fees” from dead up by 180% from Rs105.15. shares. people’s accounts and mistakenly dou- The consumers in second slab ommonwealth Bank of Australia CBA and the three other big Aus- ble charged interest to thousands of using up to 300 cubic metres said it would hive off its wealth tralian banks have spent years build- business customers. per month (both commercial Cmanagement and mortgage bro- ing large networks of fi nancial advisers The inquiry, due to continue until and residential) would be king businesses, and explore whether to recommend their products, but the early next year, is expected to start fl ag- charged Rs589.09 per unit in- to divest its general insurance arm, as powerful misconduct inquiry, or the so- ging legislative recommendations in a stead of Rs210.31, a rise of 180%. it narrows its focus down to traditional called Royal Commission, could force preliminary report to the government in The prescribed price for the lending. the separation of the development and September. third domestic slab of more than Australia’s biggest bank also unveiled sales of fi nancial products. But Australia’s top lenders have al- 300 cubic metres per month a revamped executive team, seeking “We don’t know what the recom- ready started realigning their business has been raised by 26.4% to to rebuild its reputation after several mendations are going to be yet, but by away from the scandal-hit fi nancial Rs664.52 per unit from Rs525.76 scandals revealed fl aws in its leadership doing this they are trying to get ahead of advice units, such as National Australia and that of the commercial culture, exposing it to closer regulatory whatever those outcomes of the Royal Bank that last month said it was looking category by 26.4% to Rs797.42 scrutiny and potential fi nes. Commission are,” said Dive. to exit part of its wealth management per unit from Rs631. CBA’s shares fell as much as 2.7% The wealth management and mort- arm by 2019. All other categories in larger after the announcements – which ac- gage broking arms account for about 5% CBA said it would not keep a stake commercial and industrial units, cording to analysts preempt struc- of CBA’s total net profi t after tax. in the CFS Group after the demerger in ice factories, captive power tural reforms likely to be brought in by The combined CFS Group is expect- 2019. plants, CNG stations, cement and a powerful banking inquiry that has ed to have a market value of A$6.5bn- The bank, which in a separate state- fertiliser plants, public sector rocked Australia’s scandal-plagued fi - A$10bn ($4.82bn-$7.42bn), Macquarie ment announced six executive ap- power houses and independent nancial sector. said. pointments, said it was still seeking a power plants will face a 26.4% “Today’s announcement... responds The Commonwealth Bank of Australia announced plans yesterday to spin-off its According to a senior banking analyst replacement for Rob Jesudason who increase. Commercial consum- to continuing shifts in the external wealth management and mortgage-broking arms as it looks to streamline at Shaw & Partners, Brett Le Mesurier, resigned unexpectedly as chief fi nancial ers and ice factories will be environment and community expec- operations and focus on core businesses. the spinoff s “had to be done” but the offi cer in May. charged Rs798 per unit instead tations, and addresses the concerns market might be responding negatively CBA said it expects to make a per- of Rs631 and industrial consum- regarding banks owning wealth man- entire wealth management and mort- ness. The previously announced IPO of to the “extra level of overheads” the manent appointment after its full-year ers, Pakistan Steel, Wapda plants agement businesses,” chief executive gage broking arms into a separately list- CFSGAM will no longer proceed. bank may have from a separately listed results in August. and IPPs Rs611 per unit, instead Matt Comyn said in a statement to Syd- ed new company called CFS Group, in- “What we are really seeing here is entity. CBA shares ended down 2.3%, in a of Rs484. ney’s stock exchange yesterday. clusive of its Colonial First State Global the whole breaking down of their very CBA shares have been hammered in broader market that closed about 0.2% The bank said it would demerge the Asset Management (CFSGAM) busi- expensively put together vertical in- recent months and hit a near fi ve-year lower. Thailand eyes private investors’ help for $40bn rail upgrade

Reuters on roads and trucks.” “We are looking for more open to the private sector,” Arkhom said of and foreign companies could participate in Bangkok active participation of private investment (in this project, adding Chinese, Japanese and construction if they were part of a Thai joint rail),” he said, while ruling out the privatisation European companies had expressed interest. venture. of operator State Railway of Thailand. Thai companies including energy giant Construction of the first phase began last Thailand is seeking private investors’ help for The projects include upgrading the net- PTT Pcl, urban rail operator, BTS Group year after the Thai military government, a $40bn upgrade of its rail network aimed at work to dual-track rails. Holdings and construction company, CK which came to power in a coup in 2014, inter- reducing logistics costs and boosting trade, The government has already approved Karnchang Pcl are also interested. vened and cleared legal hurdles. Minister of Transport Arkhom Termpittaya- 123bn baht ($3.7bn) of such upgrades, with The government will invest in the project’s The government signed two contracts paisith told Reuters yesterday. nine more worth 407bn baht to be approved civil work, Arkhom said. last year worth $157mn with Chinese state Lowering transport costs is crucial because this year, Arkhom said. Another ambitious plan, forged with China, enterprises for engineering and design work, exports account for two thirds of Southeast In addition, bidding for a 229bn baht, is a 179bn baht high-speed rail link stretching which are expected to be delivered this Thailand Transport Minister Arkhom Termpittayapaisith speaks Asia’s second-largest economy. 220-kilometre (km) high-speed rail project some 355 km to connect central and north- month, Arkhom said. during an interview with Reuters in Bangkok. Thailand’s transport Thailand’s transport system will “place great- linking three airports, including the country’s eastern Thailand with Laos. Another project, this time with Japan, is a system will “place greater emphasis on rail,” Arkhom said, adding er emphasis on rail,” Arkhom said in an inter- main Suvarnabhumi airport, will take place Arkhom said bidding for this project 672-km railway linking central and northern the country had “overly depended on roads and trucks.” view, adding the country had “overly depended in November. “Construction and operation is would take place before the end of the year Thailand. Gulf Times 14 Tuesday, June 26, 2018 BUSINESS

Apple set to US plan to limit China amplify its audio-device investments a setback strategy in 2019: Sources

Bloomberg for Steven Mnuchin San Francisco Bloomberg pple Inc is about to pump up the volume on its Washington audio-device strategy, planning higher-end AAirPods, a new HomePod and studio-quality over-ear headphones for as early as next year, accord- he Trump administration’s plan to de- ing to people familiar with the matter. ploy some of the most restrictive in- The Cupertino, California-based company is work- Tvestment limits in its economic arsenal ing on new AirPods with noise-cancellation and water against China marks a setback for Treasury resistance, the people said. Apple is trying to increase Secretary Steven Mnuchin’s eff ort to take a the range that AirPods can work away from an iPhone less confrontational approach towards Bei- or iPad, one of the people said. You won’t be swimming jing. in them though: The water resistance is mainly to pro- Under the plan, the White House would use tect against rain and perspiration, the people said. one of the most expansive legal tools available Slated for 2019, the earbuds will likely cost more to declare China’s investment in US compa- than the existing $159 pair, and that could push Apple nies involved in technologies such as new-en- to segment the product line like it does with iPhones, ergy vehicles, robotics and aerospace a threat one of the people said. Apple is also working on a wire- to economic and national security, according less charging case that’s compatible with the upcom- to eight people familiar with the plans. ing AirPower charger. The company has also internally Mnuchin has been working on the plans discussed adding biometric sensors to future AirPods, since as early as December, but has consist- like a heart-rate monitor, to expand its health-related ently urged a less aggressive approach that hardware off erings beyond the Apple Watch, another is negotiated with the Chinese behind closed person said. The current AirPods will be refreshed later doors, the people said. In the end, he was per- this year with a new chip and support for hands-free suaded by the president and other Cabinet Siri activation, Bloomberg News reported. members to use blunt tools to address risks There are over-ear headphones coming from Ap- from Chinese investments, they said. ple, too. Those will compete with pricey models Some administration offi cials are con- from Bose Corp and Sennheiser. They will use Ap- cerned that restricting Chinese investments ple branding and be a higher-end alternative to the on the grounds of a supposed national eco- company’s Beats line. Apple originally intended to nomic emergency could rattle the US stock introduce the headphones by the end of 2018, but market or trigger reprisals against US fi rms has faced development challenges, and is now tar- operating in China, they said. geting a launch as early as next year, the people said. The move would also dovetail with an in- They asked not to be identifi ed talking about unre- ternal European Union memo obtained by leased products. An Apple spokeswoman declined Bloomberg, which said Trump’s aggressive to comment. The consumer-electronics giant uses approach to longstanding US partnerships unique accessories like the AirPods to round out its could unwind decades of progress and force hardware and software ecosystem. Accessories have nations back into a system where might pre- US Secretary of the Treasury Steven Mnuchin holds a news conference after the G7 Finance Ministers Summit in Whistler, British Columbia, become an important revenue source in recent years, vails. Canada. The Trump administration’s plan to deploy some of the most restrictive investment limits in its economic arsenal against China marks helping Apple’s Other Products unit generate sales It’s a move that would put Washington’s a setback for Mnuchin’s eff ort to take a less confrontational approach towards Beijing. of $12.9bn in the 2017 fi scal year. That’s cushioned a brewing trade war with Beijing on a poten- slowdown in iPhone unit growth. tially irreversible course, even as Chinese au- tion. Cohn, a former president of Goldman The national emergency law, called the In- critical both for the interests of the US as well The upcoming audio push builds on Apple’s ear- thorities have looked for ways to reach a de- Sachs Group Inc, warned this month that ternational Emergency Economic Powers Act as for the integrity and proper functioning of lier success in the fi eld. The iPod and iTunes digital tente with the US. trade disputes could wipe out the benefi ts of of 1977, will target prospective investments, the global economy that the Chinese cease music store helped revive the industry and began Mnuchin, in a report scheduled to be re- Republican tax cuts passed in December. His meaning existing ones cannot be undone, these kinds of behaviours.’’ a transformation that turned the company from a leased on June 29, will suggest administering successor, Larry Kudlow, is a self-proclaimed according to four of the people. It’s unclear Treasury’s move is part of the Trump ad- computer maker into a mobile-device giant. that law through an inter-agency govern- “free-trader,” and is recovering from a heart what would happen to deals that have been ministration’s actions taken under Section In 2012, Apple declared itself one of the largest ment panel called the Committee on Foreign attack. announced but not yet completed. Treasury 301 to respond to China’s alleged theft of US shippers of audio speakers because of the earbuds Investments in the US, or CFIUS, the people In the wake of losing ground in steering US offi cials are also trying to settle on a legal intellectual property and follows rounds of that come bundled with its devices and the built- said, requesting anonymity to discuss the economic relations with China, a key job de- defi nition of “Chinese entities’’ that would be tit- for-tat tariff threats between the two in speakers in iPhones, Macs and iPads. Two years plans. scription of a US Treasury secretary, Mnuchin aff ected. largest economies. later, Apple bought headphone maker and stream- One concept under review would be to cre- has chosen silence in an eff ort to preserve his Trump’s top trade adviser in the White The IEEPA statute allows the president to ing-music company Beats for $3bn, its largest ac- ate a two-tracked CFIUS process to review personal credibility with fi nancial markets House, Peter Navarro – author of a book unilaterally impose the investment limits. quisition. An in-house audio-product team is run by investments, with one specifi cally for China, and even allies. called “Death by China” – has been laying the Congress, in parallel, is working on reform Gary Geaves, formerly an engineer from B&W Group two of the people said. “Authorities around the world will see the groundwork to escalate what he’s so far called legislation to CFIUS that would scrutinise Ltd, a maker of speaker systems and headphones. A Treasury spokesman didn’t reply to a re- secretary as someone to go to for a thought- a “trade dispute.’’ inbound investment in the US on national se- Apple is shaking up its supply chain in preparation quest for comment ful, rational, reasonable conversation about Navarro’s offi ce last week issued a 36-page curity grounds. for the latest audio products, expanding a partner- The Treasury chief has kept a low pro- challenges that we face mutually or changes report with the blunt title, “How China’s Treasury’s investment limits are seen as ship with iPhone manufacturer Foxconn Technology file in recent weeks. People familiar with in the business cycle or multi-lateral policy Economic Aggression Threatens the Tech- complementing the CFIUS reform eff orts, Group and lessening its reliance on smaller hardware Mnuchin’s thinking said that after he lost changes,” said Tim Adams, a former Treasury nologies and Intellectual Property of the US which are not only focused on China and maker Inventec Corp, the people said. Apple plans to an internal battle on how to handle the undersecretary in the George W Bush admin- and the World.” The report is seen as part of don’t limit investments on economic security ramp up AirPods production by working with Fox- trade dispute with Beijing, he’s signalled his istration. “They see him as something of a the evidence the administration will use to grounds, said people familiar with the admin- conn, people familiar with the arrangement said. disagreement with the president’s approach point of stability.” justify the investment curbs on economic se- istration’s plans. Thus far, it has mostly worked with Inventec, but through silence. The US, as the world’s largest economy, curity grounds. The Treasury limits will be rolled out in builds about 30% of the units with Luxshare Preci- Mnuchin lost a free-trade ally earlier in the may be the initial winner under such a re- Much of China’s behaviour “constitutes an phases, meaning not all Made in China 2025 sion Industry Co. When the earbuds fi rst came out in year when Gary Cohn, Trump’s fi rst White gime, but an escalating battle still poses risks economic aggression,’’ Navarro said last week sectors will be covered at once, said people 2016, they were delayed, and there was limited sup- House economic adviser, left the administra- of a slowdown. during a phone briefi ng with reporters. “It is briefed on this week’s action. ply after the product fi nally went on sale. Germany’s business EU regulator urges banks to speed morale falls in June up ‘inadequate’ Brexit preparations Reuters Reuters the fi rst four months, and US President Donald London Berlin Trump is threatening to impose hefty tariff s on car imports from Europe – a trade that Germany dominates – on top of earlier unilateral duties on anks have failed to make enough usiness confi dence in Germany fell in June metals. progress in their Brexit preparations to its lowest in more than a year, suggest- Business leaders are worried that a parallel Band should not expect “miracle” public Bing the mood among company executives trade confrontation between Washington and intervention to help them, the European Un- is darkening as the world edges towards a full- Beijing could harm German exporters who rely on ion’s banking watchdog said yesterday. blown trade war. the world’s two largest economies for growth. While Britain and the EU have agreed in Activity declined in all four sectors measured Of potentially greater concern is a row over principle on a transition deal lasting from by the Munich-based Ifo institute in yesterday’s immigration within Chancellor Angela Merkel’s Brexit next March to the end of 2020, it is part survey – manufacturing, services, trade and con- conservative alliance that has unsettled her coa- of a broader divorce settlement that has yet to struction. lition government three months after it took of- be formally adopted. The readings added to signs that Europe’s fi ce. Banks’ preparations for the potential de- biggest economy is cooling after a strong 2017, The Christian Social Union (CSU), the Bavar- parture of Britain from the EU without a rati- Banks’ preparations for the potential departure of Britain from the EU without a ratified though economists said a recession was not on ian sister party of Merkel’s Christian Democrats fi ed withdrawal agreement are “inadequate”, withdrawal agreement are “inadequate”, the European Banking Authority said in a statement the cards. Ifo said its business climate index fell (CDU), is threatening to impose entry restrictions the European Banking Authority (EBA) said in on Brexit. “This should be a wake up call. Time is running out, in some cases it has run out, to 101.8, the lowest level since May 2017 and just at the border with Austria if she fails to secure a a statement on Brexit. and don’t assume there will be a transition period,” said Piers Haben, EBA director of banking beating a Reuters consensus forecast of 101.7. deal to distribute migrants more fairly among Eu- “This should be a wake up call. Time is markets, innovation and consumers. The index has now fallen in six of the last seven ropean countries at an EU leaders’ summit this running out, in some cases it has run out, and months. week. don’t assume there will be a transition peri- Separately, the European Central Bank quantify exposures to counterparties in each “The boom is over. The discussion about a Merkel conceded that leaders had failed to fi nd od,” said Piers Haben, EBA director of bank- (ECB) said banks must submit “complete and other’s jurisdictions, including the billions of trade war...is weighing on the mood. a joint solution to the issue in emergency talks on ing markets, innovation and consumers. high quality” licence applications for euro euros in cross-border derivatives contracts, Uncertainty has increased slightly,” Ifo econo- Sunday. Banks in Britain are submitting applica- zone hubs by the end of this month to ensure the EBA said. mist Klaus Wohlrabe told Reuters. ING Diba economist Carsten Brzeski said Ger- tions for licences to set up or expand opera- there is no disruption in business with EU The BoE has said UK and EU legislation is The institute said the June reading was taken man could easily weather existing US tariff s on tions in the EU to ensure continuity of service customers after Brexit Day. needed to ensure continuity in contracts that before a row over migration broke out within aluminium and steel, and “even signifi cant US after March. UK branches of banks from the “For banks that fail to meet the Q2 2018 span many years in some cases. Germany’s governing coalition that one econo- import tariff s on cars might not aff ect demand, EU need permission to continue serving cus- target date, or fail to submit high-quality ap- The EU has shown no willingness to legis- mist called potentially more damaging than the particularly if the euro remains weak.” tomers in the United Kingdom. “Big banks plications, the ECB cannot guarantee that the late, and the EBA said no public solution may tariff dispute. But should the migration row cause Merkel’s can’t assume they can put off the full applica- authorisation process will be completed by be proposed or even agreed in time. Observers predicted the economy would con- government to collapse and trigger a snap elec- tion process,” Haben said. the end of March 2019,” the ECB said in an The ECB and BoE are in talks on how to tinue to grow, albeit at a slower pace than last tion, more serious economic damage was likely. The EBA said banks must have enough staff update on its Brexit policy yesterday. keep markets orderly around Brexit Day next year’s 2.5%. “For the economy, this would mean further at new operations to manage risks from the The Bank of England (BoE), which has said March, raising expectations that some public “The modest fall reaffi rms our...narrative of delays of the urgently needed investments, new fi rst day after Britain’s withdrawal on March banks can rely on the transition deal being in action will take place. an economy slowing to a normal growth level,” structural reforms and strengthening of the (Eu- 29, 2019, and fi nancial stability must not be place by March to avoid hasty relocation de- “There is widespread perception there will Uwe Burkert of LBBW bank wrote in a note. “This ropean) monetary union,” said Brzeski. put at risk because lenders want to avoid costs. cisions, had no comment on the EBA’s state- be a public policy miracle. is however no downturn and certainly no reces- But in reference to the underperforming na- The EBA – itself relocating from London to ment. It has said branches of EU banks in I don’t think banks can rely on a general, sion.” Much of the German data published this tional soccer team’s last-minute victory in Sat- Paris by March due to Brexit – said prepara- London can assume they won’t need new UK catch-all public intervention,” Haben said. year has pointed to a cooling economy. urday’s World Cup match against Sweden, he tions by banks must advance more rapidly in a authorisation until the transition period ends. The watchdog sets out a “sequence” of Industrial activity and exports were weak in added: “Never count out Germany. number of areas without further delay. Lenders in Britain and the EU should tasks banks must complete. Gulf Times Tuesday, June 26, 2018 15 BUSINESS

State pension funds question KKR on role in Toys ‘R’ Us demise

Bloomberg over the failure of Toys ‘R’ Us? Did one who led the deal was with KKR In March, Bloomberg reported that Pensions are increasingly addressing Minnesota’s final decision is still Boston anyone have their bonuses cut, did anymore. the company would close its US social issues such as treatment of to come. “Members of the board anyone have their compensation “We’re here to be transparent, to operations. The business was in workers. While some fund managers expressed a desire to conduct cut significantly? Because that’s acknowledge where we’ve made an default and Toys ‘R’ Us would have are said to have reprimanded firms further inquiry into these concerns KKR & Co’s leveraged buyout of Toys one of the consequences of free- investment mistake, and we certainly to lay off about 30,000 employees behind closed doors, many pensions and determined to suspend new ‘R’ Us is coming under scrutiny by state market capitalism,” Washington State did at Toys, and be helpful in making as creditors pushed for liquidation. haven’t changed their allocation plans. commitments with KKR until the board pension funds that are questioning Investment Board member Stephen sure that all of you understand what While potential buyers emerged, Washington ultimately voted Thursday completes its inquiry,” according to the private equity firm’s role in the Miller said, according to a recording we’ve done and what the facts are senior creditors decided there would to commit $100mn to New York-based an emailed statement Thursday from bankruptcy of the world’s largest toy of Thursday’s meeting heard by around this situation,” he said. be a better return by selling off assets KKR’s infrastructure fund, according to the $93.5bn Minnesota agency that retailer. Bloomberg News. KKR, Bain Capital and Vornado during a liquidation, said people a statement on Friday. manages the state retirement funds. The Minnesota State Board of Labour activists have been working Realty Trust took over Toys ‘R’ Us in familiar with the matter said earlier “The WSIB also urged its longtime Private equity firms have been facing Investment decided last week to closely with the retailer’s employees a $7.5bn leveraged buyout in 2005. this month. A liquidation shuts down investment partner, KKR, to further pressure on diversity as well from temporarily halt future commitments to and have reached out to about The owners went through a collection a company’s operations, while other explore job transition opportunities clients. This month TPG encountered KKR as it reviews the investment, while 180 investors including the $129bn of executives over the next 13 years types of bankruptcy, such as Chapter and options for workers who some tough questions at an Oregon the Washington State Investment Board Washington pension, urging them to who tried to stop the company’s 11, could have allowed stores to are losing jobs” due to the Toys Investment Council meeting about its spent more than an hour on Thursday confront KKR and its partners in the steady slide. The debt incurred in that remain open. bankruptcy, the statement said. The white-male dominated culture. The discussing the holding and asking the transaction, and to push for severance. deal, a recession and competition More than a dozen Toys ‘R’ Us workers pension fund also said it will continue council eventually voted to invest private-equity firm to account for its At the meeting, Nate Taylor, head from Amazon.com Inc and others have met with US lawmakers and to ask the private equity firm for $500mn more of the state’s pension actions. of consumer retail for the Americas crippled the Wayne, New Jersey-based former employees have called for new accountability on the impacts of the plan in the firm’s buyout fund and “Did anyone at KKR lose their job at KKR, responded to Miller that no company. regulations on leveraged buyouts. retailer’s demise. health care pool.

Shell approves project in North Sea, seeing life in ‘old dog’

Bloomberg be too tiny to justify an invest- London ment, profi table. The two wells at Fram will produce up to 13,000 barrels a oyal Dutch Shell Plc day of oil equivalent, Phimister approved its second said. That would add about RNorth Sea project in six 10% to the company’s current months, greenlighting a natural output in the UK North Sea. gas fi eld that it considered un- The government said there are economical to produce from six hundreds of small pools like years ago. Fram yet to be developed. The Anglo-Dutch major, While companies have been along with partner Exxon Mo- connecting smaller fi elds to Employees lift a motorcycle up to the shipping area on the assembly line at the Harley-Davidson manufacturing facility in York, Pennsylvania. The EU tariff s are only the latest bil Corp, plans to produce from existing infrastructure for blow-back Harley has faced from Trump’s trade policies. The company has warned that Trump’s tariff s on steel and aluminium will drive up raw materials costs. two wells in the Fram fi eld in the years, Phimister said the oil- central North Sea by 2020. Deep price crash has made it more cost cuts following crude’s de- viable. Shell has also cut costs cline and connecting smaller oil throughout the company since and gas pools to bigger projects 2014 by reducing staff and us- are allowing Shell and other ing technology such as artifi cial drillers to squeeze more out of intelligence that predicts when an ageing North Sea. equipment will break down. “When your back’s to the wall, you’ve got to respond,” Harley to shift some Steve Phimister, head of Shell’s UK exploration and production unit, said in an interview in Ab- erdeen, Scotland. “We’ve come a heck of a long way, but I still see a lot more we can be doing.” production out of US Shell, which abandoned Fram’s gas and condensate re- Shell plans to produce from sources earlier this decade after two wells in the Fram field in determining the fi eld wasn’t the central North Sea by 2020. big enough to be commercially viable, is now fi nding a way to Phimister expects Shell to turn the project, and the region greenlight “a couple more” more broadly, into a money- projects in the North Sea this to avoid EU’s tariff s maker. The company may take year. In January, the company several more investment deci- said it would redevelop the Bloomberg ny will absorb rather than pass tional plants will boost output tariff burden is not the compa- supporter of the Trans-Pacifi c sions in the North Sea this year Penguins fi eld in the northern London extra costs on to customers. for EU markets. The company ny’s preference, but represents Partnership, which could have because of the improved eco- North Sea. It also has a 50% While Trump has repeatedly operates manufacturing facili- the only sustainable option to lowered barriers in some of the nomics, Phimister said. stake in the Alligin fi eld, which claimed that the US can win ties in Brazil, India and Austral- make its motorcycles accessi- largest markets for motorcycles The Fram wells would be operator BP Plc has commit- arley-Davidson Inc trade wars, victims are starting ia, and is beginning production ble to customers in the EU and in the world. Trump withdrew profi table with oil below $40 ted to develop. Shell will spend plans to shift some pro- to pile up at home and abroad. in Thailand this year. maintain a viable business in from the long-planned trade a barrel, he said. That’s in line between $600mn and $800mn Hduction of its motorcy- Harley’s fi ling follows a profi t Ramping up output in inter- Europe,” the company said in the pact in January 2017. with chief executive offi cer Ben across its UK projects annually. cles out of the US in response to warning last week from Daimler national plants for the EU may fi ling. A week after pulling the US van Beurden’s requirement that Prior to the Penguins an- European Union tariff s, as Presi- AG, which cited escalating ten- take at least nine to 18 months, Harley shares fell 1.7% to out of the TPP, the president all new deepwater projects will nouncement, Shell hadn’t ap- dent Donald Trump’s trade war sions between the US and China. according to the company. Har- $43.45 as of 7:55am in New York, hosted Levatich and other Har- only be approved if they make proved a new North Sea project undermines an iconic American The motorcycle maker tied ley said it’s committed to mak- before the start of regular trad- ley executives and union lead- money at that oil-price level. in six years. Instead, along with manufacturer. its higher costs to a sequence ing motorcycles in the US, it ing. The stock is down 13% this ers for a White House listening Shell will connect Fram to a other oil majors, it was selling Each motorcycle will cost started by Trump, who slapped suggested it had no other choice year. session and held the motorcycle processing facility called Shear- assets in the area. about $2,200 more after the Eu- tariff s on European steel and but to move production from its The EU tariff s are only the maker out as an “American suc- water, also operated by Shell, This “is a great example of ropean Union raised its levies on aluminium, prompting the EU’s home market. The company sold latest blow-back Harley has cess story since 1901.” from where the gas will be sent an operator and supply chain imported US bikes to 31% from retaliation. almost 40,000 bikes in Europe faced from Trump’s trade poli- A US motorcycle sales slump to shore. Companies can avoid working together to create 6% on June 22, the Milwaukee- Harley — once praised by last year, and the continent’s cies. The company has warned has deepened since then, spur- some large costs associated with a competitive project, from based manufacturer said yester- Trump at a February 2017 White share of total deliveries was the that Trump’s tariff s on steel and ring Harley’s decision in Janu- developing new fi elds by us- something that previously day in a regulatory fi ling. This House meeting as a model highest since 2011. aluminium will drive up raw ary to close a plant in Kansas ing existing infrastructure from wasn’t considered investable,” will cost Harley about $90mn to American manufacturer — “Increasing international materials costs. Chief executive City, Missouri, eliminating nearby hubs. That makes small- Phimister said. “There’s life in $100mn annually, as the compa- didn’t specify which interna- production to alleviate the EU offi cer Matt Levatich also was a about 260 jobs. er reservoirs, where payouts can the old dog yet.” Italy wants to go worst-to-fi rst in e-cars; price — $10bn

Bloomberg an ambitious, some say unrealistic, goal and the number rises only to around mains almost impossible to get there If it’s serious about the 1mn-car diesel cars beginning in 2024 and Mi- Milan of 1mn battery-powered cars by 2022. 4,800 if plug-in hybrid models are in- so quickly.” target, the government may need help lan has begun drawing up plans for a That would make Italy Europe’s leader cluded, according to the European Au- In Norway, Europe’s e-car leader, from companies like state-controlled diesel-free future. in electric cars. tomobile Manufacturers Association. incentives cover everything from tax Enel SpA, Europe’s biggest utility, Italian drivers already embracing al- he populist government in Italy, If the 1mn-car target has a fl ashy, Fewer than 5,000 fully electric models breaks, to exemptions from tolls to free which plans to invest 100mn euros to ternatives to combustion engines could Europe’s most sluggish market campaign-style ring to it, that’s be- are estimated to be on the country’s ferry passage. Norwegians can expect €300mn to install up to 14,000 charg- also help fuel an eventual migration Tfor electric cars, has a big-bang cause Di Maio unveiled it at a cam- roads today. about €9,000 ($10,400) in incentives ing stations in Italy by 2022. Still, Enel’s toward electric. Italy is by far Europe’s plan to put 1mn of the vehicles on the paign stop last year, as he toured Sic- And that’s the rub, critics say. To fl ip on an electric version of Volkswagen experience in the EV fi eld may indicate biggest market for vehicles running on nation’s roads. Getting anywhere near ily in an electric Nissan. The number, the script and go from being an electric AG’s Golf or 7,000 euros for a VW Up. that the target will be challenging. natural gas, selling about 230,000 such that target could cost the state $10bn in far more aggressive than auto analyst car backwater to Europe’s biggest mar- In France, which could triple its electric “Developing public infrastructure is autos last year. incentives. forecasts, eventually made it into the ket, the Italian government would need car sales to about 150,000 by May 2022 much more complicated than we ex- Fiat Chrysler SpA chief executive of- As coalition partners the League and national platform of Five Star, an Inter- to roll out incentives at least at the level according to Bloomberg New Energy pected,” said Francesco Venturini, head fi cer Sergio Marchionne, a one-time the Five Star Movement haggled last net-based, anti-establishment party of Norway’s, which could cost several Finance, incentives run to about 10,000 of Enel X, the business unit responsible EV sceptic, now says his company will month over their contract to govern, founded less than 10 years ago that was billion euros, analysts say. Even that euros per electric car purchase. for electric cars. “Without clear guide- invest 9bn euros to develop electric Five Star managed to insert a passage the biggest vote-getter in the March 4 might not be enough. Deliveries in Europe’s less vibrant lines from the government and a clear cars by 2022. Marchionne expects that on “reductions in gasoline and diesel national elections. “If you want 1mn electric cars on EV markets, a fi gure which excludes vision, we are left in the jungle,” he by 2025 fewer than half the cars sold vehicles.” The document goes on to call A spokesman confi rmed that the Italian roads in the next fi ve years, the fast-growing France, Germany and the said. “The automotive industry is get- globally will be fully combustion-pow- for “incentives to support the acquisi- Italian government is working toward only option is huge tax benefi ts like UK, are set to increase to 354,000 in ting ready for this change, it would be ered. tion of electric and hybrid vehicles” — a the target, without clarifying whether Norway’s,” said Promotor research in- 2022 from 182,000 in 2018, according good to have a common vision from the Di Maio, whose hometown in south- cash-for-clunkers programme. the 1mn-car fi gure referred to fully- stitute head Gian Primo Quagliano, to BNEF. While the researcher doesn’t government.” ern Italy is not far from Fiat’s Pomigliano While the contract doesn’t set nu- electric models or also included hy- who’s tracked the country’s car sales give estimates for Italy alone, BNEF in While Di Maio’s target may be a plant, made a point of applauding Mar- meric targets, Five Star’s 31-year-old brids, and declined to comment on the for 25 years. its Long-Term Electric Vehicle Outlook stretch, few doubt that Italy will even- chionne’s new stance shortly after the leader Luigi Di Maio, whose dual posts cost. “The government would be look- 2018 said Italian take-up of electric tually embrace electric cars, and regu- new government took offi ce. “We can as labour and development minister Italians last year bought just some ing at incentives of about $10,000 a vehicles is “far behind” the rest of the lators and politicians across the spec- fi nally start our projects, including the and deputy premier are his fi rst paid 2,600 fully electric passenger vehicles, car, like France,” he said. Even at that region, and that it “pulls the average of trum are pushing for zero-emission 1mn-electric car target,” Di Maio said in jobs in government, is on record with out of a total of about 2mn cars sold, level — roughly $10bn — “it still re- Europe down.” vehicles. The city of Rome will ban a post on Facebook. Tuesday, June 26, 2018 GULF TIMES BUSINESS

BANKING ON KNOWLEDGE Volatility hits currencies and commodities as trade conflicts take centre stage

By Dr R Seetharaman was the main reason for fall in British The surge in dollar and intensifying pound. trade conflicts between the US and The Japanese yen was near China contributed to the fall in corn The dollar index has surged by close 109.5 against the dollar and had and soya bean prices. Cocoa was at to 3% YTD this year and had even strengthened by close to 3% YTD. The $2488/tonne and is up by more close crossed 95 levels last week, benefit- dollar fell to a two-week low against the to 30% YTD. Cocoa prices climb on ing from the divergence in the US and yen on Monday as a latest global trade account of supply concerns. Coff ee European monetary policy. However, concerns dented investor risk appetites from next month. Natural gas was near and aluminium which had rallied in was at $117.20/pound and has fallen it has become weaker early this week and drove down US yields. $2.9/MMBTU and has surged by close 2017, corrected a bit this year as trade by more than 12% YTD. Sugar was at on account of rising trade conflicts WTI was near $69/barrel, surged by to 4% this year. conflicts escalated. $12.39/pound and has fallen by more between the US and other countries, close to 14% YTD and Brent was near Gold hit a six week low last week Nickel price was above $15,000/tonne than 18% YTD and on account of and is below 95. The euro was near $75/barrel, surged by close to 12% YTD. and has fallen by close to 3% YTD on by end of last week and had surged excess supplies. $1.16 and had weakened by more than Opec and non-Opec partners including account of the surge in dollar. Silver by more than 5% YTD. Nickel surge Currencies and commodities markets 3% YTD. The ECB recently warned it Russia have since 2017 cut output by has fallen by close to 3% YTD. Gold due to environmental production cuts have been hit by volatility in recent would delay the raising of interest rates 1.8mn barrels per day (bpd) to tighten and silver continue to fall this week on across top producer China, plunging times as there has been escalation of until after the summer of 2019, owing the market and prop up prices. account of rising trade conflicts. Gold inventories and strong steel prices. trade conflicts in the last few months to signs inflationary pressures are still Along with this, the sanctions on Iran was near $1270/ounce and Silver near Corn price was at 3.75USD/bushel. It in the global space and has now taken lacklustre, which had weakened the had also driven oil prices this year. $16.5/ounce. had fallen by more than 3% YTD. Wheat the centre stage. This scenario is not currency recently. Oil prices had fallen early this week Copper was near $6800/tonne. It has price was near $4.93/bushel and had expected change in the near future. The British pound was near $1.32 and as Opec deal was not as expected; fallen by close to 6% YTD. Aluminium surged by more than 6% YTD. Soybean had weakened by close to 2% YTD. The however, recovered a bit. Opec was price was near $2180/tonne. It has was at $8.85/bushel by end of last week „ The author is Group CEO of Doha thin progress in Brexit negotiations expected to increase the oil supplies fallen by more than 3% YTD. Copper and had fallen by more than 7% YTD. Bank.

Mena insurance markets Expert says Qatar ideal expected to continue outgrowing GDP destination for digital over next 12 months

By Santhosh V Perumal and fi nancial markets. Highlight- Business Reporter ing that rates and profi tability might have passed the bottom of the cycle, it said the executives polled view cur- entrepreneurship he Middle East and North Africa rent prices in the region’s commercial (Mena) insurance markets are and personal lines business as being at By Peter Alagos Texpected to continue outgrow- or above the average of the past three Business Reporter ing the region’s GDP (gross domestic years. product) over the next 12 months, ac- A vast majority expects rates in cording to a study. commercial and personal lines to re- atar’s world-class digital in- Personal lines business remains the main stable or increase over the next 12 frastructure and high Internet key driver for premium growth with months, it said. Qpenetration makes the coun- primary insurers benefi ting from com- “Overall, personal lines are expect- try an ideal ecosystem for Informa- pulsory insurance as well as regulatory ed to outperform commercial lines tion Technology (IT) businesses and actions supporting rates, said the sixth as regulatory pricing actions and the digital entrepreneurship, according to edition of Mena Insurance Pulse, an enforcement of compulsory insur- an industry expert. annual survey among insurers, rein- ance schemes, like motor and medical, Following the government’s imple- surers and brokers in the region’s $58bn have a strong eff ect on both premium mentation of “proactive steps” in the primary market. growth and rates,” it said. past year, Qatar off ers many opportu- Although the executives polled an- In commercial lines, an increased nities for new businesses, particularly ticipate geopolitical instability and share of respondents considers overall in the areas of digital entrepreneur- economic headwinds to continue profi tability to be low. Although rates ship, said Sign In CEO M P Shanavaz. weighing on the industry’s outlook, have improved; a higher frequency of “Now is the right time and the right price adequacy in commercial lines, large claims and deteriorating reinsur- opportunity to promote business in especially in property business, has ance contract terms and conditions took Qatar,” Shanavaz said during a press improved, mainly in response to severe their toll on technical profi tability, it said. conference announcing the ‘Sign In fi re losses, it said. In personal lines a vast majority of Workshop on Digital Entrepreneur- The region’s strong insurance pre- interviewees consider current techni- ship’ slated on June 30 at the Crowne mium growth is still considered the mar- cal profi tability as higher or in line with Plaza Doha from 9am to 6pm. The ket’s most important strength, followed the average of the past three years at- one-day workshop is hosted by Sign by signifi cantly modernised regulatory tributable to “signifi cant” rate increas- In Qatar and Startech Middle East. regimes and a relatively moderate natural es in motor and medical business. The company has also partnered Sign In CEO M P Shanavaz (centre) elaborates on the upcoming workshop on digital entrepreneurship on June 30 at catastrophe exposure, said Henner Alms “Going forward, the executives with Qatar Business and Incuba- the Crowne Plaza Doha. Looking on are Startech Middle East general manager - Operations Hamza Abdul Rahman and and Dr Kai-Uwe Schanz, the authors. polled expect profi tability in commer- tion Centre (QBIC), which, accord- Internet Business consultant Amila Mohamed Aslam. PICTURE: Jayaram “Going forward, markets are expect- cial lines to remain unchanged or edge ing to Shanavaz, is providing as much ed to structurally benefi t from the re- slightly higher,” it said. as “QR15mn for funding for various tackle the following topics, ‘Funda- Face Consultation’. Also, Shanavaz the acumen to set up an online store gion’s still-low insurance penetration, Corrective measures on the pricing, businesses.” mentals of Online Business’, ‘Finding said workshop participants will ben- and a 12-month support from the Sign which is a mere quarter of the global reserving and claims settlement side Shanavaz, who is also one of the Niche Markets’, ‘Developing Online efi t from the insights on the impor- In team, Shanavaz said. average. Further, digitisation will con- will continue to make themselves felt. speakers at the upcoming event, to- Business Models’ (B2B and B2C), tance of online business, features, and During the press conference, tribute to reduce operating and acqui- In personal lines, the executives see gether with Sign In Qatar chief tech- ‘How to Start a Global Online Store traits to make website a channel for Shanavaz was joined by Startech Mid- sition expenses and enhance the appeal profi tability prospects unchanged or nical offi cer Nadeer V K, said the with no Stock, no Rent, and no Risk’, substantial additional income with dle East general manager – Opera- of insurance products to the region’s slightly improving, benefi ting not only workshop will also provide partici- ‘Social Media for Business’, ‘Govern- minimum investment. tions Hamza Abdul Rahman, Internet large young population,” it said. from a continuation of regulatory sup- pants access to QBIC services, which ment Grants and Funding from Other Similarly, the workshop will pro- Business consultant Amila Mohamed Unsatisfactory pricing and profi t- port, but also enhancements in claims will be discussed during the event Sources’, ‘Ready to Start Products for vide insights on the signifi cance of Aslam, Sign In Qatar Business Devel- ability levels as a result of excess capi- management practices, partly enabled by QBIC programme manager Amin all Business Segments’, ‘How to Get online presence of business by using opment manager Fareedha el-Sharief, tal and fi erce competition are perceived by digital technologies. Matni. Investors for Business’, ‘Individual eff ective tools and techniques through and Sign In Qatar event manager Sara as the most relevant weaknesses of the Tightened regulatory capital re- “The ‘Sign In Workshop on Digital Support Sessions’, ‘Online Prod- sessions such as ‘Methods of Social Nil. Mena insurance market place, it said. quirements and growing investor im- Entrepreneurship’ is not only limited uct Sourcing’, ‘Finding Funds for the Media Marketing’ and ‘7 to 10 Simple More information about the ‘Sign Although oil prices have recov- patience are seen as the most relevant to startups but also caters to existing Business’, ‘Get Top Ranking in Google, Online Business Ideas and Profi table In Workshop on Digital Entrepre- ered from their lows in early 2016, it forces driving a higher market con- businesses that are seeking end-to- Yahoo, Bing’, ‘Digital Payments’, ‘Lo- Models’. neurship’ can be obtained by calling said there is an increased awareness centration over the next 12 months, it end solutions to their daily opera- gistics Solutions in Online Business’, Participants will also gain an overall +974 4031 6777, writing to events@ of this vulnerability and volatility as said, adding foreign insurers’ footprint tions, Shanavaz told Gulf Times. ‘Eff ective Digital Marketing Cam- insight to the power of digital media teamsignin.com or visiting to www. well as their implications for govern- in the fast-growing personal lines seg- Shanavaz said the workshop will paigns’, and ‘Post Workshop Face-to- and ‘SEO Methodologies’, including teamsignin.com. ment spending, disposable incomes ment remains weak.

Dubai hits lowest since Jan 2016 on DSI; Saudi loses momentum QSE retreats on increased profi t

DSI slumps 10% after breaching support; giving up some of the recent gains on the booking by foreign institutions Saudi index slips after gains fuelled by back of its successful rights issue. MSCI upgrade; Kuwait gains on telecom, The Abu Dhabi index added 0.3% to 4,537 financials post MSCI points. By Santhosh V Perumal The realty index shrank 2.26%, industrials shares and value by 40% to QR219.25mn on Saudi stocks ended 0.1% lower at 8,342 Business Reporter (1.11%), transport (1.11%), banks and fi nan- more than doubled transactions to 3,441. Reuters points as investors paused after a strong cial services (0.96%) and insurance (0.8%); The telecom sector’s trade volume grew Dubai rally on the back of expectations that Riyadh whereas telecom and consumer goods gained almost fi ve-fold to 1.86mn equities and val- will be added to the MSCI emerging market he Qatar Stock Exchange was back in 2.37% and 1.25% respectively. ue by more than eight-fold to QR35.04mn on benchmarks. the negative trajectory to retreat be- Major decliners included Ezdan, Milaha, almost fi ve-fold jump in deals to 545. Dubai stocks slumped yesterday to its lowest The Saudi index is up over 15% this year, the Tlow 9,000 points mainly on increased Industries Qatar, QNB, Qatar Insurance, The real estate sector’s trade volume al- since January 2016, led by losses in contractor best performing index in the Gulf region. profi t booking by foreign institutions. Qatar Islamic Bank, Commercial Bank, most tripled to 1.17mn stocks and value more Drake & Scull, while Saudi stocks slipped Charles-Henry Monchau, chief investment Selling pressure — especially in real estate, Doha Bank, Qatar Electricity and Water and than doubled to QR17mn on almost doubled after gains ahead of index compiler MSCI’s off ice at Al Mal Capital in Dubai, said overall industrials, transport and banks — resulted Barwa; even as Ooredoo, Vodafone Qatar, transactions to 462. move to lift Riyadh to its emerging markets valuations for Saudi stocks are not very in a 0.76% decline in the 20-stock Qatar In- Gulf Warehousing, Dlala and Qatari German The industrials sector’s trade volume more benchmark. attractive after the recent gains and the dex to 8,936.78 points. Company for Medical Devices were among than doubled to 0.65mn shares and value al- Drake & Scull shares fell 10% to close at 0.9 market can lose momentum from here Masraf Al Rayan- and Doha Bank-spon- the gainers. most tripled to QR28.1mn on more than dou- dirhams on retail selling after it fell below a onwards. “Investor focus would now shift sored exchange traded funds QATR and Non-Qatari institutions’ net profi t book- bled deals to 594. key support level of one dirham. back to fundamentals and the second quarter QETF, however, gained 4.71% and 0.38% re- ing strengthened substantially to QR46.33mn The insurance sector reported 76% surge Concerns about Drake & Scull’s business results coming in a couple of weeks, would be spectively. compared to QR2.5mn on June 24. in trade volume to 0.44mn equities and 71% outlook and ongoing investigations against a good reality check of underlying trends,” he Islamic stocks were seen declining slower The Gulf individuals were also net sellers in value to QR15.16mn on almost tripled its previous management are weighing on the said. than the other indices on the market, which to the tune of QR0.22mn against net buyers transactions to 278. stock, traders said. Kuwait stocks were the only exception in the is up 4.85% year-to-date. of QR0.03mn on Sunday. The consumer goods sector’s trade volume The stock is down over 60% so far this year. Gulf market where most stocks were down. Local retail investors were increasingly However, local individuals’ net buying soared 68% to 0.32mn stocks and value more The Dubai index fell 2.1% to close 2,868 points, The index rose 1.1% to 4,866 points, led by net buyers as well as both domestic and Gulf increased considerably to QR30.08mn com- than doubled to QR38.23mn on 78% jump in a new low for the year and its lowest level gains in telecommunications company Zain funds turned bullish on the bourse, whose pared to QR6.33mn the previous day. deals to 260. since January 2016. which rose 2.2% and Kuwait Finance House capitalisation fell 0.81% to QR489.68bn, Domestic institutions turned net buyers to The banks and fi nancial services sec- Air Arabia posted fresh losses as investors which climbed 1.5%. Last week MSCI said mainly dragged by small and midcaps. the extent of QR9.27mn against net sellers of tor saw 48% expansion in trade volume to remained anxious about its exposure to it will include the MSCI Kuwait Index in its Trade turnover and volumes were on the QR3.51mn on June 24. 1.93mn shares and 1% in value to QR80.95mn embattled private equity firm Abraaj, which classification review next year for a potential increase on the market, where banks, tel- The Gulf institutions were also net buyers on doubled transactions to 1,147. earlier this month had filed for provisional move from frontier to emerging markets. ecom and realty sectors together accounted to the tune of QR5.13mn compared with net However, the transport sector’s trade vol- liquidation. Elsewhere in the Gulf, the Bahrain index shed for about three-fourth of the total volume. profi t takers of QR0.45mn on Sunday. ume plunged 85% 0.26mn equities and value The stock closed 1.5% lower. 0.4% to 1,302 points and the Oman index lost The Total Return Index shed 0.76% to Non-Qatari individual investors’ net buy- by 83% to QR4.77mn, whereas deals were up Among blue-chips, Emaar Properties fell 2.7% 0.2% to 4,583 points, while in Egypt the index 15,745.62 points, All Share Index by 0.84% to ing grew perceptibly to QR2.08mn against 10% to 155. and Dubai Islamic Bank dropped almost 2%, gained 0.4% to 16,458 points. 2,599.45 points and Al Rayan Islamic Index QR0.12mn the previous day. In the debt market, there was no trading of (Price) by 0.33% to 2,188.1 points. Total trade volume rose 46% to 6.65mn treasury bills and sovereign bonds.