ROUHANI TOUR | Page 3 RUSSIA PLAN | Page 14 Airbus jets, Govt allots Fiat cars $1.7bn for real on wish list economy

Tuesday, January 26, 2016 Rabia II 16, 1437 AH SHARES FALL 11% SINCE OCT ’15: Page 15 Apple growth seen GULF TIMES slowing as iPhone BUSINESS demand wanes Qatar PPI plunges 39% y-o-y in Oil market is going to start November 2015 By Santhosh V Perumal Business Reporter

Precipitous decline in the prices of crude and natural gas, basic metals, refined petroleum rebalancing, says al-Sada products and basic chemicals led Qatar witness about 39% plunge year-on-year (y-o-y) Opec secretary-general urges in the producer price index (PPI) in November non-Opec to help tackle excess 2015, according to off icial figures. supply; evaluating whether to The PPI for the industrial sector — a measure hold emergency meeting; Iraq of the average selling prices received by the aims to raise oil output further domestic producers for their output — fell 5.4% this year compared to that in October 2015 mainly on lower prices of crude and natural gas, basic Reuters metals, dairy products, grain mill and basic London chemicals, said the latest figures released by the Ministry of Development Planning and Statistics (MDPS). E the Minister of Energy The PPI for mining, which carries the and Industry, Dr Mohamed maximum weight of 72.7%, saw the maximum Hbin Saleh al-Sada, said yes- plunge of 43.2% y-o-y in November 2015 due terday the oil market was poised to to a 43.3% fall in the prices of crude petroleum start rebalancing itself after prices and natural gas; even as stone, sand and clay sank to their lowest since 2003, a prices firmed up 2.5%. sign the exporter group will stick The mining sector PPI saw 7.5% decline month- to its policy of not cutting supplies on-month in November with crude and natural without help from rival producers. gas price falling 7.5% and that of stone, sand Oil prices have collapsed to below and clay by 0.1%. $28 a barrel this month from $100 in The manufacturing sector, which has a weight mid-2014 on a supply glut. The drop of 26.8% in the PPI basket, tanked 27.6% y-o-y gained impetus after the Organisa- in November 2015, explained by a 31.5% plunge tion of the Petroleum Exporting in the price of basic metals, 30.6% in refined Countries in late 2014 shifted strat- petroleum goods, 25.2% in basic chemicals, egy to defend market share, not 5.2% in man-made fibres, 2.4% in dairy prices. products, 1.4% in grain mill, 0.9% in rubber and The price drop has started to slow plastic products and 0.7% in paper and paper the development of relatively ex- products. pensive supply sources such as US But there was 11.7% increase in the price of shale oil and forced companies to cement and other non-metallic products, 5.2% delay or cancel billions of dollars’ in juices and 3.3% in beverages. worth of projects, putting some fu- The manufacturing sector PPI was down 1.2% ture supplies at risk. against that in October 2015 on account of “We expect that we will go 5.8% fall in the price of basic metals, 4.2% through one more downturn cycle in dairy products, 2% in grain mill, 1.8% in of oil price. But we will recover. The basic chemicals, 0.2% in refined petroleum market is defi nitely going to balance “We expect that we will go through one more downturn cycle of oil price. But we will recover,” says HE al-Sada. products and 0.1% in rubber and plastic itself because today’s oil price is not products. sustainable whatsoever,” al-Sada, conference at Chatham House. Badri said. “This is now central to icy shift, have opposed earlier calls of sanctions on Iran, Iraq’s plan to But there was a 1.7% jump in the prices of man- told a conference in London. Earlier, Badri said Opec and non- the return of a balanced market.” for emergency meetings. further expand supplies and no sign made fibres, 0.8% in beverages, 0.4% in juices Speaking at the same conference, Opec producers needed to work to- The price slide has squeezed in- Al-Sada said the request was be- of Saudi Arabia cutting back from and 0.2% in cement and other non-metallic Opec Secretary-General Abdullah gether to tackle an excess of oil in- come in producing nations and is ing considered although he declined near-record levels. products. al-Badri said he also saw reason for ventories so prices can recover and particularly painful for Opec mem- to say if he was in favour. Iraq may further raise oil output The electricity and water group, which has a optimism, citing forecasts for fur- investments in new fi elds begin. bers such as Venezuela, who depend “We received a request and oil in 2016, reaching levels as high as mere 0.5% weightage in the PPI basket, saw ther growth in global oil demand in So far, major non-Opec produc- heavily on oil income and lack the ministers are discussing that,” he 4mn barrels per day (bpd) from the its index fall 2.1% y-o-y in November 2015 with 2016 and a contraction in non-Opec ers such as Russia have refused to capacity to pump more. said. “It is being evaluated.” Qatar country’s south, a senior Iraqi oil electricity and water prices declining 2.3% and supply. work with Opec by cutting supplies, Venezuela has requested Opec holds Opec’s rotating presidency offi cial, who asked not to be named, 1.8% respectively. “We already see some signs that although Oman and Azerbaijan have hold an emergency meeting to dis- this year. said yesterday. The index, however, shot up 5.6% against the supply and demand fundamen- expressed willingness to do so. cuss steps to prop up oil prices. But While non-Opec supply is ex- Iraq has been producing from its previous month on 10.8% in the price of water tals will start to correct them- “It is vital the market addresses Opec’s Gulf members including pected to fall this year, output from southern fi elds around 3.7-3.8mn and 2.3% in electricity. selves in 2016,” Badri said at the the issue of the stock overhang,” Saudi Arabia, who led the 2014 pol- Opec could rise following the lifting bpd in recent months. Page 16

Qatar’s ICT sector ‘key beneficiary’ of economic diversification Mandatory insurance to drive growth

Qatar’s ICT sector has been a “key beneficiary” of the of GCC healthcare sector, says EY government’s drive to diversify the economy away from hydrocarbons, notably through he GCC’s (Gulf Cooperation Council) delivery models and partnerships,” accord- said, adding about 20%-30% of GCC pub- its e-Government 2020 Strategy healthcare market — especially spe- ing to him. lic hospital beds are currently being occu- and “strong support” for the Tcialised centres of excellence (CoEs), Demand for specialised CoE is growing pied by LTPAC patients. On future poten- development of smart cities, home healthcare services, long-term and rapidly as the burden of disease shifts from tial for biopharmaceuticals and medical BMI has said in a report. post-acute care rehabilitation (LTPAC), the public sector to the private sector, EY disposables; EY said the GCC region has The Fitch Group company biotechnology, medical disposables manu- said, adding most GCC public hospitals are strong infrastructure in place for the crea- holds a “positive outlook” on facturing and primary care services — has functioning at more than 80% bed capac- tion of a sizable pharmaceutical manufac- the Qatari economy and the been identifi ed as areas of high demand and ity, which is putting pressure on the private turing base. IT market as a whole despite growth in the region in 2016, according to sector and specialised clinics to service more The development of dedicated bio- the global oil slump that has Ernst and Young (EY). patients. technology platforms and incubator pro- lowered oil prices since 2014. “The healthcare sector has been growing Observing that a substantial number grammes such as Dubiotech in the UAE, IT market growth in Qatar, it upwards of 10% per annum across Middle of patients are seeking specialised treat- Jeddah Biocity Park and Badir for biotech- said, will be maintained by large East and North Africa (Mena), with sig- ment abroad, developing more CoEs lo- nology in Saudi Arabia is creating a healthy government programmes, government agencies and CAGR of 8.6% in local currency nifi cant potential for growth in quality care cally would help meet their unique needs ecosystem for biotechnology to grow. modernisation eff orts and public state-owned companies, at terms. over the next few years. Mandatory insur- and reduce the need to travel overseas for The GCC medical disposables sector, sector initiatives aimed at hosting least over the next two to “The dominance of oil and ance has been and will continue to be a big treatment; it said developing more CoEs while growing at a very fast rate, is mainly the FIFA World Cup in 2022. three years. According to BMI, gas in the local economy driver, particularly in Qatar, Saudi Arabia would also bring in more medical tourists import driven. With only 7% of total GCC This is all set against the computer hardware sales in limits the size of the software and parts of the UAE,” Amit Zushi, partner, as well as attracting and retaining highly medical disposables sales being contrib- backdrop of Qatar’s high Qatar would exceed QR4bn in market, but scope remains EY, said. qualified and experienced clinical talent in uted to by local production, and majority private consumption levels, 2019, up from QR3.1bn in 2014, for growth in the enterprise Finding that many GCC governments are the GCC. of medical disposables imported from Eu- which combines with the bright which shows a compound market over the medium term in the midst of overhauling public health Estimating that by 2020, $3.5bn-$4.8bn rope, there is a signifi cant opportunity to economic growth outlook to annual growth rate (CAGR) of through the modernisation and systems, paving the way for considerable could potentially be spent on home health- manufacture medical disposables locally. support our view of the market 5.2% in local currency terms. diversification government further opportunity for the private sector to care services across the GCC; Ahmed Fai- Traditional primary healthcare facilities as a regional outperformer. Market saturation means initiatives,” BMI said. fi ll the capacity and quality gaps; he said de- yaz, Mena Healthcare Transaction Advisory in the GCC have not evolved quickly enough BMI expects the government there will not be explosive Qatar would register IT services spite investment in recent years, demand for Services leader, EY, said signifi cant growth to meet the rapidly growing demand from to remain committed to these growth, with even the tablet sales totalling QR2.07bn in quality care continues to outpace supply as is expected in the area of mobile health apps patients for enhanced services and treat- goals, despite the sharp drop market mature by 2015, but 2019, from QR1.2bn in 2014, a GCC countries continue to rank among the and home-based diagnostic and physi- ment. Technology enabled primary health- in oil prices in the second a combination of strong CAGR of 11.6% in local currency highest in the world on risk factors related otherapy services. care centres, such as those with advanced half of 2014. Indeed, lower consumption growth and terms. “Services are expected to chronic lifestyle ailments such as diabe- The provision of LTPAC rehabilitation diagnostic capabilities for health screening, oil prices further emphasise underlying population growth to perform well in the IT market tes, hypertension, cardiovascular conditions services in the GCC is currently too small are in high demand. the importance of catalysing will sustain steady medium- in the medium term due to and obesity. to meet the growing demand. Currently, While the proportion of spending on pri- growth in other sectors, and term growth in spending. demand for cloud computing, “It is critical, now more than ever, to in- the majority of patients who require LT- mary care is expected to rise signifi cantly the government can rely on Software sales in the country smart systems and security vest in the key areas that can accelerate the PAC are cared for in an acute-care hospital and technology continues to help bridge the large fiscal reserves to continue would scale up to QR828mn in services from the public and development of healthcare in the region. occupying beds dedicated for acute cases, gap between traditional healthcare and ex- enhancing IT systems across 2019 from QR548mn in 2014, a private sectors,” BMI said. While the private sector is aiming high, the thus becoming bed blockers in public hos- isting service off erings, more investment is winners will focus on the right propositions, pitals for extended periods of time, EY needed, it said. Gulf Times 2 Tuesday, January 26, 2016 BUSINESS

Kuwait in spending spree on Saudi unbowed by oil crash projects

AFP with no spend cut before IPO Kuwait City State-run Aramco not cutting investment in oil, gas projects; Kuwait awarded projects Aramco chief sees IPO as sign of worth a record $32bn last confidence in Saudi business year and plans to raise the figure in 2016 despite a Bloomberg sharp decline in oil revenues, Riyadh an economic report said Monday. Last year’s awards were 20% he world’s biggest oil producer is higher than in 2014, National spending as much now as it did Bank of Kuwait, the largest Tbefore the crash in crude prices, lender in the emirate, said in signalling no surrender in Saudi Ara- a report. bia’s battle with rivals. Over half of the amount spent Saudi Arabian Oil Co is maintain- on projects in 2015 went to ing investment in oil and natural gas the oil and gas sectors, it said. projects and has formulated a new The awards include a $13bn strategy in response to cheaper crude contract to build a new as it studies options to sell shares in its refinery with a capacity of parent company and downstream re- 615,000 bpd and a heavy oil fi ning and chemical operations, chair- production facility costing man Khalid al-Falih said yesterday. The $4bn. state-run producer, known as Saudi In the transportation sector, Aramco, can sustain low oil prices for the government awarded a “a long, long time,” he told reporters in $4.3bn contract for the airport Riyadh. expansion but the project has “Saudi Arabia is well-documented to not yet been signed. be the clear lowest-cost producer - we This year appears to be a have scale, capabilities, and technology bumper year with contracts to help us maintain our low cost as we worth $55bn expected to be go forward,” he said. “I’ve continued to signed before the end of 2016, encourage fi scal discipline in my role NBK said. as chairman of Aramco. In our invest- The projects include a ments capacity, oil and gas has not $3.3bn liquefied natural slowed down.” gas import terminal, a $7bn Aramco, which supplies all of Sau- petrochemicals project and di Arabia’s crude oil, pumped more a natural gas development than 10mn bpd in each of the last 10 project worth $5.7bn, it said. months as it sought to assert its role Khalid al-Falih (right), chairman of Aramco, speaks as Saudi Minister of Commerce and Industry, Tawfiq al-Rabiah, listens during the 10th Global Competitiveness Forum The government also plans as the world’s lowest-cost produc- in Riyadh yesterday. Aramco is maintaining investment in oil and natural gas projects and has formulated a new strategy in response to cheaper crude, al-Falih said. to tender a large number of er. The company pumped 10.25mn projects in the power, health bpd in December, adding to a global The company is considering two the local Tadawul stock market,” he to be studied, not only within the com- started in 2015, and there will be a pe- and housing projects in 2016. supply glut that pushed benchmark tracks for an IPO, a sign of confi- said. pany and its boardroom but also with riod not far into the future where de- The investment spending Brent crude prices down 35% last dence in the kingdom’s enterprises, “Another option, which would be the the decision makers of Saudi Arabia.” mand catches up with supply and in- spree comes although Kuwait year and a further 14% this month. al-Falih said. One is to bring together fi rst time in the history of Saudi Ara- Aramco sees demand for crude ventories are worked out of the system, is projected to post its first Aramco is studying a possible share “a significant downstream portfolio bia, is to actually off er an appropriate growing, he said. The company isn’t and we will be back at where we were budget deficit due to low oil sale as the country looks into pri- of Saudi Aramco involving refining, percentage of the company at the top, responsible for current low crude pric- before,” he said. prices, after 16 consecutive vatising companies in all industries chemical and marketing businesses which is everything we do,” al-Falih es and is hoping for a “moderation” in Until that happens, al-Falih said, years of windfall. amid financial pressure caused by and offer these in a big bundle that is said. “There are of course commercial, price levels, al-Falih said. “Saudi Arabia can sustain low oil prices tumbling crude. going to be a significant addition to legal and sovereignty issues that have “Demand will grow as it already for a long, long time.” Qatar bourse is back in the red on sell pressure

By Santhosh V Perumal QR1.71mn against QR10.29mn on value by 57% to QR4.11mn and deals Business Reporter January 24. by 27% to 130. Non-Qatari individual investors’ The market witnessed a 57% net buying also shrank to QR1.36mn shrinkage in the telecom sector’s trade he Qatar Stock Exchange was compared to QR5.96mn on Sunday. volume to 0.6mn shares, 58% in value yesterday back in the negative The GCC individuals turned net to QR11.09mn and 39% in transac- Tturf as its key index lost 133 sellers to the tune of QR3.95mn tions to 464. points, failing to break the 8,900 re- against net buyers of QR1.44mn the The real estate sector’s trade vol- sistance level. previous day. ume tanked 45% to 1.7mn equities, An across-the-board-selling, par- However, non-Qatari institutions value by 40% to QR30.35mn and deals ticularly in the insurance, telecom, turned net buyers to the extent of by 27% to 691. real estate, transport and consumer QR12.67mn compared with net sellers The industrials sector saw a 13% goods sectors, led the 20-stock Qa- of QR0.44mn on January 24. decline in trade volume to 1.51mn tar Index to drop 1.48% to 8,848.86 Domestic institutions’ net prof- stocks, 9% in value to QR68.8mn and points. it-booking plunged to QR16.38mn 13% in transactions to 948. Lower buying interests from local against QR34.12mn on Sunday. The banks and fi nancial services and non-Qatari retail investors as well Total trade volume fell 34% to sector’s trade volume was down 2% to as Gulf institutions were instrumental 6.8mn shares, value by 14% to 2.39mn shares but value soared 31% to in dragging the market, where trading QR237.8mn and deals by 24% to QR110.54mn. Deals fell 3% to 1,256. turnover and volumes were on the de- 3,810. Although the insurance sector’s cline. There was a 66% plunge in the con- trade volume was fl at at 0.03mn equi- Gulf individual investors also sumer goods sector’s trade volume ties; there was a 30% increase in value turned bearish in the bourse, which is to 0.39mn equities, 64% in value to to QR2.4mn. Transactions sunk 57% down 15.15% year-to-date. QR10.52mn and 55% in transactions to 30. The index that tracks Shariah- to 291. In the debt market, there was no principled stocks was seen melting The transport sector’s trade volume trading of treasury bills and govern- faster than the other indices in the plummeted 59% to 0.18mn stocks, ment bonds. market, where the banking, realty and industrials sectors together accounted Bearish sentiment thwarts Gulf rally; Saudi near-flat for more than 82% of the total trading volume. Major Gulf bourses retreated worst performers, while banking and Market capitalisation erod- yesterday, erasing some of the food sectors were the best. ed 1.16%, or about QR6bn, to previous day’s gains with investors Many stocks in the Gulf are QR471.91bn with small, mid, mi- unconvinced markets can mount a considered cheap by traders and cro and large cap equities melting sustainable rebound. fund managers, even after Sunday’s 3.54%, 2.53%, 0.69% and 0.44% re- Riyadh’s index was near-flat, slipping rally. But investors have become spectively. 0.02% to 5,610 points as day traders skittish, gripped by uncertainty over The Total Return Index shrank booked quick profits to take its 2016 whether markets have truly turned a 1.48% to 13,754.28 points, the All losses to 18.8%. It had gained 2.7% on corner and so they could not retain Share Index by 1.52% to 2,352.21 Sunday after oil prices rallied late last yesterday’s initial gains. points and the Al Rayan Islamic Index week, but crude’s renewed weakness Dubai’s index fell 1.9% to 2,704 points, by 1.87% to 3,149.55 points. has again sapped Saudi market 82 points away from Thursday’s Insurance stocks tanked 4.01%, fol- confidence. 28-month low. lowed by telecom (3.13%), real estate The petrochemical sector, the main “On the daily chart, Dubai’s (3.05%), transport (2.93%), consumer influence on market direction of late, benchmark traded below both the goods (1.78%), industrials (0.68%) dropped 0.2%. critical neckline resistance of 2,800 and banks and fi nancial services Al Rajhi Bank fell 0.8% after surging points and the important moving (0.51%). 5.9% on Sunday. The Islamic lender, averages,” said Shiv Prakash, senior As much as 80% of the stocks were which was one of the last banks research analyst at Abu Dhabi’s in the red with major shakers being to report earnings, made a fourth- NBAD Securities. “Any near-term Qatar Insurance, Ooredoo, Vodafone quarter net profit of 1.95bn riyals bounce will be considered a dead cat Qatar, Barwa, Ezdan, Qatari Investors ($519.6mn) that forecasts. bounce.” Group, Aamal Company, Mesaieed Samba Financial Group, another Abu Dhabi’s index also failed to hold Petrochemical Holding, Gulf Interna- lender to post better-than-expected onto gains, dropping 0.6%. It also hit tional Services, United Development results, slid 1.3%. a 28-month low on Thursday. Company, Nakilat, Milaha, Qatar Is- Saudi Arabia’s fourth-quarter Dana Gas, the most traded stock, fell lamic Bank, Doha Bank, al khaliji and earnings season has ended. The 2.4%. Masraf Al Rayan; even Industries Qa- combined profits of the kingdom’s Elsewhere in the Gulf, Oman’s index tar, QNB and Alijarah Holding bucked listed companies shrunk 16.1% from climbed 0.5% to 4,966 points; the trend. the same period last year, according Kuwait’s index dropped 0.7% to 4,938 Local retail investors’ net buying to Riyadh’s NCB Capital. The firm said points, while Bahrain’s index slipped declined to QR4.61mn compared to results were also 29% below analysts’ 0.7% to 1,150 points. QR16.81mn the previous day. average forecasts. Egypt’s bourse was closed yesterday The GCC (Gulf Cooperation Coun- Petrochemical companies were the for a holiday. cil) institutions’ net buying sunk to Gulf Times Tuesday, January 26, 2016 3 BUSINESS Half of Israel’s investment billions seen headed abroad

Bloomberg House Ltd’s Hagai Badash said. Half three years ahead, Israeli institutional $84.2bn, or about 24%, of their even as the Federal Reserve increases by the Globes Dun’s 100 report. Israel’s Tel Aviv of Psagot’s investments in stocks investors will eventually allocate about assets overseas as of November, borrowing costs. “If I can get a banks trade at a price-to-book value are abroad and Israeli debt will fall 50% of their assets abroad.” the highest proportion since 2002, similarly-rated bond in the US with a of 0.7 compared with 0.9 for the MSCI to 70% of its total bond holdings The exodus of institutional cash will according to the latest data available much higher yield, why should I keep World Bank Index, according to data Half of the assets controlled by this year from 75% last year, he said. add to pressure on the Tel Aviv Stock from the Bank of Israel. the bulk of our investments in Israeli compiled by Bloomberg. The TA- Israeli money managers will soon be The company oversees about 190bn Exchange, which has been battling The Tel-Bond 20 Index, a gauge bonds?” Badash said. Insurance Index has declined 11% in deposited abroad, according to the shekels ($48bn). a decline in trading volumes and of Israel’s largest corporate debt, Psagot’s local stock picks for 2016 the past 12 months, compared with a chief executive off icer of the country’s “Today, when a new shekel enters a shortage of new share offerings declined for the first time in seven include banks and insurance 7.5% drop in the MSCI World Insurance largest investment house. the money-management industry, since an upgrade to developed years in 2015 as the central bank cut companies, given their low valuations, Index. Sliding domestic returns are forcing it’s now directed abroad, and not to market status in 2010. Israeli interest rates to a record. Governor and companies in the technology Both segments have been the subject portfolio managers to look overseas Israel,” 41-year-old Badash said in an institutions including insurance Karnit Flug has pledged to keep sector, Badash said. Psagot is ranked of regulatory scrutiny and reforms in for alternatives, Psagot Investment interview at his Tel Aviv off ice. “Looking companies and pension funds held monetary policy “very expansionary” the biggest Israeli investment house Israel.

Iraq agrees Airbus jets, Fiat cars on wish $328mn GE deal to boost list as Rouhani tours the EU power grid Bloomberg Tehran/Dubai Reuters Baghdad ranian President Hassan Rouhani arrived in Italy yesterday for the Ifi rst stop of a European tour that’s raq has agreed a $328.8mn expected to see him sign contracts to deal with General Electric to purchase Airbus Group jetliners and Iboost electricity production explore manufacturing partnerships capacity by 1,000 megawatts with Fiat Chrysler Automobiles, PSA (MW), an electricity ministry Peugeot Citroen and Renault. spokesman said yesterday. Rouhani may sign deals valued at Though Iraq is a major Opec about €17bn ($18.4bn) in Italy, accord- oil producer, the country faces ing to an offi cial there who asked not to chronic electricity shortages, be identifi ed because the information with its fragile grid struggling isn’t public. Iranian state-run media meet demand after years of war, reported a possible $2bn steel accord, sanctions and neglect. Many and Fiat Chrysler chief executive of- areas lack access to electric- fi cer Sergio Marchionne will attend a ity or drinking water, prompting ceremonial dinner with the president demonstrations by thousands of in Rome. Iraqis last year to press the gov- In France, Rouhani is likely to com- ernment to improve delivery of plete an agreement to take 114 Airbus essential services. planes to upgrade Iran’s aging fl eet, GE will provide equipment and possibly including a headline-grabbing maintenance for 10 power plants order for the plane maker’s fl agship across the country, ministry A380 superjumbo, and may sign deals spokesman Musab al-Mudaris with Peugeot and Renault, according to told Reuters. Iranian reports. Baghdad will pay GE in instal- Iran is looking to reap the benefi ts of ments over three years, starting its nuclear deal with world powers in in 2017, because the electricity July, which paved the way for the lift- ministry’s 2016 budget was cut ing of economic sanctions this month by more than half to 1.185tn Iraqi as the Islamic republic seeks to revive dinars ($1bn), al-Mudaris said. economic growth and lower unem- Iraq expects a budget defi cit ployment. The removal of trade bars of about 24tn dinars this year as may trigger at least $50bn a year in for- it grapples with lower global oil eign investment, the country’s central A model of the Airbus Superjumbo A380 of the Business Aircraft Division of EADS at the Berlin Air Show (file). An Iran deal for the A380 would come as a major boost prices and costs associated with bank governor said in an interview last for Airbus as it struggles to sell the world’s largest passenger model. the fi ght against Islamic State week. militants. This week’s trip is Rouhani’s fi rst to Wednesday. He’ll hold talks with Prime light-commercial vehicles and buses come as a major boost for Airbus as it have a total cost of $25bn, Gholam- “We asked the government to the European Union since his election Minister Matteo Renzi and meet Pope there, the state-run Islamic Republic struggles to sell the world’s largest pas- Reza Shirazian, director of the hub’s increase the ministry’s invest- in 2013 on pledges to end sanctions Francis today in the Vatican. News Agency reported on November senger model. development plan, said yesterday in ment budget for 2016 because, and rebuild links with the rest of the Among the deals he’s expected to 29, citing Mohammad Reza Nematza- An order would be part of a wider an interview at CAPA aviation confer- with the current austerity meas- world. sign is a €5bn contract with Milan- deh, minister for industry, mines and deal including the A320 single-aisle ence in the city. Talks are underway ures, the country’s power grid “We should take advantage of the based oil-services company Saipem trade. An outline deal on manufactur- aircraft family, as well as used A340 with possible partners, including a could collapse,” al-Mudaris said. post-sanctions climate to develop the to develop oil pipelines, La Repubblica ing in Iran failed to get off the ground in wide-bodies. The fi rst of the 114 air- French company on the cargo side, he There is a wide gap between country and create jobs,” the president newspaper reported, as well as the 2005, and Fiat halted sale in the coun- craft intended for Iran Air might be said. electricity consumption and sup- said before leaving for Italy, according $2bn steel deal, which the Tasnim news try in 2012. delivered by March 21, the Mehr news Iran Khodro Co, one of the coun- ply in Iraq. Peak demand during to the Fars news agency. Shargh, Iran’s agency highlighted on Twitter. Rouhani travels to Paris tomorrow agency has reported, citing Minister of try’s largest carmakers, reached a pre- the summer, when people turn on most-popular reformist newspaper, At Fiat Chrysler, Marchionne has for a meeting with President Francois Roads and Urban Development Abbas liminary agreement for a €500mn joint air conditioners, is about 21,000 ran the front-page headline: “A red said he sees opportunities in Iran once Hollande. A deal for the A380 - fl agged Akhoundi. venture with PSA Peugeot Citroen, MW, far exceeding the 13,000 carpet beneath Iran’s feet.” things stabilise. The Italian-American as likely by Iran Air chairman Farhad Iran’s plans to extend Tehran’s main Tasnim reported on Sunday, citing an MW the grid is currently provid- Rouhani is in Rome Monday through company has held talks about building Parvaresh in an interview - would Imam Khomeini Airport are likely to industry offi cial it didn’t identify. ing, according to al-Mudaris. Citigroup sees Middle East private banking growth

Bloomberg Dubai

itigroup Inc expects assets managed by its private bank- Cing business in the Middle East to grow by more than 20% this year as the region’s wealthiest fami- lies use institutions to shift more of their investments overseas amid the slump in oil prices. The US lender, whose growth in assets under management in the Middle East was in the mid-20% range in 2015 and climbed by about 30% in the UAE, anticipates a simi- lar pace this year, according to An- thony Habis, head of Citigroup’s private banking in the UAE and Saudi Arabia and its global family offi ce in the Middle East and North Africa. That’s as high-net-worth clients move as much as a third of their fortunes into assets such as US A view of a branch of Citibank along Khalid Bin Al-Waleed Road in Dubai in this January 4, 2012 file photo. The and UK real estate, he said. US lender, whose growth in assets under management in the Middle East was in the mid-20% range in 2015 and “We’ve seen a serious shift over climbed by about 30% in the UAE, anticipates a similar pace this year. the last six months,” Habis told re- porters in Dubai yesterday. “Bulge- private banks. Even amid the de- as the Middle East’s fi nancial hub head for Middle East and North Af- bracket families are reconsidering cline in crude, the number of mil- attracts family offi ces and wealthy rica, and two other private bankers their strategy. The client that tradi- lionaires in Saudi Arabia is expected individuals, Habis said. to Dubai from London. tionally allocated 5% to 10% to in- to increase by at least 70% over the The Middle East is home to large “We are seeing more growth in ternational markets is now looking next fi ve years, Credit Suisse Group family businesses such as Saudi wealth preservation and diversifi - at between 20 and 30%.” said in its annual wealth report in Arabia’s Olayan Group, a major cation of risk among clients at the Oil’s more than 70% plunge since October. shareholder in Credit Suisse, and moment,” Mills said yesterday. “A June 2014 has prompted wealthy Citigroup is “actively looking” to Dubai’s Majid Al Futtaim Holding, key area of growth for us is when families in Gulf states, among the hire private bankers for its UAE op- the operator of Carrefour stores clients come to us saying they want world’s biggest crude producers, to erations and will continue to relo- in the region. Last year, Citigroup to diversify their wealth interna- review how they manage their for- cate staff to Dubai from London and moved Mark Mills, a managing di- tionally and ensure that the capital tunes, creating opportunities for Asia over the next 12 to 18 months rector and investment counselling is preserved.” Gulf Times 4 Tuesday, January 26, 2016 BUSINESS Exports seen rising as Bangladesh attracts US consumers

Bloomberg fastest-growing economies. “Over the other Asian nations. Bangladeshis are series of industrial disasters in the past industry.” While Bangladesh’s exports to have peaked in 2015, whereas Dhaka medium-to-long term, we are bullish on most optimistic about their economic few years. are on track to meet the government’s Bangladesh’s is projected to peak in the growth prospects of Bangladesh’s prospects in 2016 among more than Another factor boosting the outlook 7.2% growth target for the year through 2030, according to the World Bank. industrial and export sectors,” Raphael 66,000 people polled across 68 is relative political stability. Violent June, competition from Vietnam means Bangladesh’s inflation will ease to Investors looking for alternatives amid Mok, Asia analyst at Fitch unit BMI countries, WIN-Gallup reported last clashes early last year between Hasina mustn’t stop eff orts to diversify an average 6.07% at the end of the the global slump would do well to Research, said by e-mail. month. Per capita incomes rose past Hasina’s ruling party and the main from cheap garments, Hussein said. fiscal year through June from 6.2% check out Bangladesh. “The country boasts a large and $1,000 in 2015 and Prime Minister opposition was estimated to have cost Risks loom from a prolonged slowdown in December, the central bank said Exports rose to a record last month youthful population, as well as Sheikh Hasina targets a tripling to over the $187bn economy more than $2bn in the European Union – which buys this month as it cut interest rates to a even as other regional economies relatively low labour costs.” As the $4,000 by 2021. in losses. 61% of Bangladeshi garments – and four-year low to spur investment. reported continued declines, and world’s large emerging markets falter, The positive view is driven in part “Stability has returned and chances implementation of the Trans-Pacific “Export growth is likely to get economists say shipments will increase frontier economies like Bangladesh by exports, which contribute about of recurrence of the kind of instability Partnership would threaten the US stronger as the year goes on, as Americans rush to buy cheap and Vietnam are holding steady. 20% to Bangladesh’s gross domestic experienced in the last half of 2013 and market, which purchases 20% of textile as global demand picks up and clothes. Bangladesh’s increasing market product. Garments account for the first-half of 2015 is very slim at least exports. manufacturers continue to look at Bangladesh’s central bank forecasts share in the European Union and about 80% of overseas shipments in the near term,” said Zahid Hussain, Tariffs on Vietnamese exports would Bangladesh as a cheap alternative inflation will slow and the World Bank recovering US demand shield it and two-thirds of these go to the US an economist at the World Bank. fall to zero under the TPP, compelling location for their factories,” said predicts growth will accelerate to 6.7% from China’s slowdown, while better and European Union. The sector had “There has been significant progress in Bangladesh to increase productivity. Daniel Martin, a Singapore-based this year, making it one of the world’s demographics off er it an edge over temporarily seen a setback following a improving compliance in the garment Vietnam’s workforce is estimated economist at Capital Economics.

Foreign companies As Japan’s oil, gas, power use eye new telecoms stalls, coal imports hit record licence in Reuters Myanmar Tokyo apan’s 2015 oil imports fell to the lowest since 1988, refl ecting the Reuters Jcountry’s declining population and Yangon low economic growth while at the same time its natural gas imports fell for the fi rst time since the Fukushima nuclear even foreign firms are disaster. interested in bidding for Yet in the same year that the world SMyanmar’s fourth tel- agreed to combat climate change, Ja- ecoms licence, a government pan’s utilities continued to increase official said yesterday, as the the use of the cheapest but dirtiest fos- prospects of one of the re- sil fuel, ramping up coal imports to a gion’s least connected nations record. outweigh the challenges of a Continuing a steady decline since the partnership involving obscure mid-1990s, Japan’s crude oil imports local firms with scant industry last year fell 2.3% to 3.37mn barrels per experience. day (195.499mn kilolitres), offi cial fi g- Chit Wai, deputy permanent ures released yesterday showed. secretary of the Ministry of Similarly, Japan’s power generation Communications and Infor- fell for a fi fth straight year in 2015 to mation Technology (MCIT), 866.26bn kilowatt hours, the lowest declined to give any details since at least 1998. about the companies he said The declines refl ect deep changes in submitted expressions of in- Japanese society since an asset bubble terest earlier this month. burst in the 1990s and its population declines and people change the way Myanma Posts and they consume energy. Telecommunications Young Japanese drive less than (MPT), which operates in their parents, and many new cars are partnership with Japan’s electric-gasoline hybrids, cutting oil KDDI Corp and Sumitomo demand. Corp, is the market leader “The fall in consumption in Japan with 18mn subscribers. is mainly down to slower economic Telenor has 12mn growth,” said Jeremy Wilcox, managing subscribers while Ooredoo director of consultancy Energy Partner- has 5.8mn ship. “At the same time, increased focus on energy effi ciency is really starting to But unlike already estab- constrain imports,” he added. lished operators Telenor and Japan is also gradually closing down Ooredoo, the foreign firm that its oil-fi red power stations. wins this 15-year licence will “Japan’s energy market is entering be a minority shareholder in a a new phase.... Utilities are having to joint venture with a consor- become more cost competitive. Run- tium of 11, little-known public ning old steam turbine gas and oil units companies which are mainly no longer makes sense,” said Michael focused on agriculture, as well Jones, senior analyst at energy consul- as a government shareholder. tancy Wood Mackenzie. country reopens nuclear reactors. rising.” As a result, LNG imports are ex- creasingly switching to cheap coal. “The rise in coal imports comes down The obscurity of the compa- Japan’s changing energy profi le has This will put further pressure on pected to fall to a fi ve-year low of 79.6mn In 2000, Japan’s coal demand was to economics,” said Energy Partner- nies poses a potential problem hit LNG the hardest, of which it is the LNG prices that have already tumbled tonnes in the year starting in April, ac- only slightly bigger than LNG con- ship’s Wilcox. in Myanmar, where some enti- world’s biggest consumer, using it by two-thirds to under $6 permn Brit- cording to the government-associated sumption, around 60mn tonnes a year “The fi gures are consistent with the ties and businessmen are still mainly for power generation and heat- ish thermal units since 2014 as supplies Institute of Energy Economics Japan. versus some 55mn tonnes for LNG, but government’s 2030 basic energy plan targeted by US sanctions, con- ing. LNG imports fell 3.9% to 85.046mn soar from new exports from Australia Japan’s LNG imports surged follow- gas use has now stalled while coal im- which aims to reduce LNG usage and nections to the military are not tonnes in 2015 from a record 88.51mn and the US. ing the meltdowns at the Fukushima ports have nearly doubled since then. maintain coal,” said Tom O’Sullivan uncommon and reputational tonnes the year before, marking the “LNG demand is getting hit from Daiichi nuclear plant in 2011 and the Thermal coal imports rose 4.8% to of energy consultancy Mathyos Japan. risk remains high. fi rst drop in six years and the lowest all sides,” Jones said. “Power demand ensuing shutdown of all reactors, push- a record 114.145mn tonnes in 2015, the “This would seem to contradict the The companies’ lack of ex- since 2011. is weak, solar capacity is increasing at ing utilities to the brink of fi nancial ruin same year as the world reached a cli- aims of the COP21 (Paris) conference in perience in telecoms or IT, and LNG usage should fall further as breakneck speeds, nuclear capacity is as gas prices surged. mate deal to combat global warming December that sought to reduce global the complex partnership struc- overall energy demand declines and the returning, and coal-fi red generation is To save cash, Japan’s utilities are in- caused in large part by coal burning. carbon emissions.” ture stipulated by the govern- ment, is also likely to compli- cate matters: Ye Min Aung, the managing director of consor- tium-member Myanmar Agri- More holes than fingers? Beijing struggles to plug capital flight business Public Corp said the new operator should focus on providing information that is Depreciating yuan fuelling trend Canaan Capital is one of a swarm of for Chinese companies and individuals to wealth manager at an international invest- increase Chinese influence and help firms relevant to farmers. to move money overseas; reforms asset management firms leaping to profit get money out legally. ment bank who spoke on condition of move up the value chain by acquiring “Decision making will be have made it easier to shift cash, from Beijing’s latest policy headache: the They can buy property, or invest in anonymity. foreign competitors. very difficult,” said Shane Thu invest off shore; money flowing to swelling crowd of Chinese individuals and off shore stocks, bonds or managed hedge “I heard the QDII scheme was so Any move to slow capital flight being Aung, the chairman of Inter- property, stocks, life insurance, firms trying to get their money out of the funds; they can purchase off shore life popular that some brokerage firms were disguised as M&A could impede strategic net provider Redlink Commu- acquisitions; more funds using world’s second biggest economy as its insurance that can be used as collateral charging 6% just to use the quota, but investments as well. nications. He previously ran free trade zones set up to make growth slows to a quarter-century low. for further loans, or even buy a foreign people are still paying. They’re afraid of Beijing has also been trying to increase a firm tipped to partner with flows easier; policy dilemma to Weak real estate prices and the gyra- company outright. depreciation.” the international usage of the yuan, a Vietnam’s Viettel as the fourth stem outflows without tions of the stock market, which plunged And their scope is not limited to A second investment management project that could collapse if foreigners operator before that deal fell back-tracking on reform as much as 40% in a summer meltdown Europe. One Shanghai-based investment source in Shanghai confirmed that the saw their money getting trapped in China. apart. last year and has tumbled around 17% so company, Zengda, plans to guide Chinese costs of borrowing QDII quota had shot Moreover, many of the funds are using Penetration rates, how- Reuters far this year, have only encouraged the money into mines, land and gas projects up in recent weeks amid surging demand the free trade zones China has rolled out ever, are around 63% accord- Shanghai trend to seek better returns elsewhere. in Africa. and short supply. in the last few years as part of a major ing to the expression of inter- The risk for policymakers is that so Others use trade and even tourism China Asset Management (Hong reform push, which were specifically est documents issued by the much money will exit China it will undo transactions to get money out of the Kong) has recently launched a 150mn designed to make it easier for capital to MCIT, which is lower than As a slick slide presentation runs for the their eff orts to cut the cost of credit country – contributing to the $200- yuan ($22mn) hedge fund under QDII to cross the borders. several other Southeast Asian well-heeled investors jammed into the domestically and reinvigorate flagging $500bn Chinese tourists are estimated to invest overseas and is charging mainland As a result, fund managers say that so nations. banqueting hall of Shanghai’s Renais- productive investment. spend abroad annually. investors 1% annually as a channel fee, in far Beijing moved cautiously in its eff orts “It isn’t a greenfield busi- sance Yangtze Hotel, an image flashes In graphs and numbers, Li’s slideshow The trend has grown so rapidly that addition to subscription and management to close the taps, halting quota issuance ness anymore,” said Sachin up of a grinning Chinese man pushing a ran through some of the reasons why some international banks are bolster- fees, according to sales document seen for easily controllable channels such as Gupta, the head of telecom- wheelbarrow full of cash into Europe. many of the 600 or so people who packed ing their wealth management divisions, by Reuters. the QDII programme, for instance, and munications research for Asia- Another slide features a car bearing a into his talk in late December are scepti- encouraged by data showing money Policymakers fret that, instead of pressing banks to tighten outflows. Pacific at Nomura Securities in Chinese flag preparing to drive into a pit. cal that the wobbly economy is turning pouring out of China. putting money into the research and Whether regulators will be forced to Singapore. For wealthy Chinese, desperate to avoid around soon: an ageing society, slowing China’s central bank and commercial development China wants to move its go further to defend monetary stability “There is still money to be further falls in a currency that has shed growth, and the slide of the yuan against banks sold a net 629bn yuan ($95.61bn) firms up the value chain, the executive remains in question, but few expect the made but you are competing 6% against the dollar since August, the the dollar. worth of foreign exchange in December, elite will pour it into the elegant condos demand to go away. with three entrenched opera- message is clear. “Where was Li Kashing heading? He nearly triple the figure for the previous in downtown Lisbon that Canaan Capital “The huge level of individual and tors.” “The yuan will keep depreciating as was heading to Europe,” Li quipped, draw- month. is selling. corporate savings which exist in China at Myanma Posts and Telecom- time goes by, so we should swap the ing laughs for his reference to the Hong One way of investing money overseas Unfortunately for Beijing, it is going to present obviously cannot find a reason- munications (MPT), which money we have in hand into tangible Kong multibillionaire, who has been trim- is through the Qualified Domestic Insti- be very diff icult to stem the tide, given able return on investment in China,” operates in partnership with assets,” Li Xiaodong, chairman of Canaan ming his exposure at home and buying tutional Investor (QDII) pilot programme, many of the channels being used are legal said Hao Zhou, Commerzbank analyst in Japan’s KDDI Corp and Sumi- Capital, tells his audience, while exhorting utilities and telecoms assets in the West. which allows Chinese mutual funds to buy and, in some ways, beneficial. Singapore. tomo Corp, is the market leader them to pull their money out of China Thanks to incremental reforms to off shore stocks. Beijing has, for example, been trying to “Consequently there is every chance with 18mn subscribers. Telenor while the going is still good and pour it China’s capital account enacted while the “Clients come to me now, realising make it easier for domestic companies to that capital flight can become a long- has 12mn subscribers while into property in Spain and Portugal. yuan was still strong, it is easier than ever that hedging makes sense,” said a private acquire overseas assets, seen as a way to standing aff air.” Ooredoo has 5.8mn. Gulf Times Tuesday, January 26, 2016 5 BUSINESS

Philippine Japan exports tumble most in banks need 3 yrs as China downturn bites foreign

Reuters capital Tokyo to thrive: apan’s exports fell the most in more than three years in December from Ja year earlier, stoking fears of eco- Regulator nomic contraction in the fi nal quarter of 2015 as a slowdown in China and emerging markets takes its toll on the Bloomberg export-reliant economy. Manila The weak data should keep the Bank of Japan under pressure to act as early as at its January 28-29 review, as the ealthy families run- collapse in oil prices weighs on infl a- ning some of the larg- tion expectations while worries over a West Philippine banks China-led global slowdown and a stock need to attract foreign capital market rout sap business morale. and know-how if they are to The central bank is expected to cut its withstand growing competition infl ation projection for the fi scal year from overseas lenders, the coun- from April to possibly below 1% this try’s bank regulator said. week – far below its 2% target – with “If they think they can con- the outcome of the two-day policy re- tinue to grow at the pace that view seen hanging in the balance. protects their position in the “The BoJ may ease policy again this market using only internal re- week if stock prices plunge and the yen sources, good luck to them,” spikes to below 115 yen to the dollar, Bangko Sentral ng Pilipinas dep- which would wipe out eff ects of a weak uty governor Nestor Espenilla yen and derail eff orts to generate a vir- said in an interview in Manila tuous growth,” Takeshi Minami, chief last week. “Banks today with a economist at Norinchukin Research relatively close ownership may Institute said. want to take a more open view. Ministry of Finance data yesterday Or, they face stagnation, shrink- showed exports fell 8% by value in the age.” Philippine banks are facing year to December, down for the third A crane at a port in Tokyo. Japan’s exports fell 8% by value in the year to December, down for the third straight month, marking the biggest drop since September 2012, a new wave of competition from straight month, marking the biggest Ministry of Finance data showed yesterday. foreign lenders, with Japan’s drop since September 2012. Sumitomo Mitsui Financial The volume of exports fell 4.4% in Minister Shinzo Abe took offi ce in late trading partner, fell 8.6% in Decem- biggest annual drop since January 2012. For the full-year 2015, Japan’s ex- Group and Singapore’s United December, down for a sixth straight 2012. ber from a year earlier, down for a fi fth Exports to the US, another key market ports grew 3.5%, up for a third straight Overseas Bank among six for- month, a sign that the weak yen as- Yesterday’s data will be followed on straight month, dragged down by ship- for Japanese goods, fell 3.4% in Decem- year led by US-bound car shipments, eign banks which have received pect of the government’s “Abenomics” Friday by a batch of other indicators in- ments of chemicals and electronics ber, marking the fi rst annual decline while imports fell 8.7%, down for the approval to open branches. The policies has struggled to boost exports, cluding household spending, consumer parts. Shipments to Asia, which ac- in 16 months, due to falling shipments fi rst time in six years due to the collapse banks are entering the market even as its value has fallen by more than infl ation and factory output. counts for more than half of Japan’s ex- of mining machines, steel and metal in oil prices. That resulted in a trade after the government loosened a third versus the dollar since Prime Exports to China, Japan’s biggest ports, declined 10.3% in December, the processing machinery. defi cit at ¥2.8tn ($23.57bn). its rules on foreign ownership in 2014. Some local banks have already heeded the advice to seek foreign partners, with Se- curity Bank Corp sealing a deal this month to sell a 20% stake to Mitsubishi UFJ Financial Group, Japan’s biggest bank. Ford to exit Japan, Indonesia this year Espenilla said the Security Bank deal is a good example of the foreign partnerships that Reuters Ford began operating in Japan in others should be seeking, to at- Beijing/Tokyo 1974 and has 52 dealerships in the tract more capital and gain new country, employing 292 people. Last management skills. The market year, it sold around 5,000 vehicles has become more competitive as ord Motor Co said yesterday it in Japan and held a share of around the central bank imposes tough- will close all operations in Ja- 1.5% of the imported new car mar- er global capital and risk stand- Fpan and Indonesia this year as ket. ards, he said. it sees “no reasonable path to profi t- In Indonesia, where it entered the “Doing the same things may ability” in the two countries where it market in 2002, Ford has a staff of no longer be a valid strategy if has struggled to gain market share. 35 and sells through 44 franchised you want to continue to thrive,” Ford will exit all areas of business, dealerships. Last year, it sold around said Espenilla, who oversees including shuttering dealerships 6,000 vehicles, taking a 0.6% share regulation of banks and fi nancial and stopping sales and imports of of the total new car market in a institutions. Ford and Lincoln vehicles, according country struggling from economic Listed Philippine banks have to an e-mail from Asia Pacifi c presi- slowdown. on average about 20% to 30% of dent Dave Schoch to all employees in “In Indonesia, without local their shares in public hands, Es- the region viewed by Reuters. Prod- manufacturing ... there’s just really penilla said. The nation’s largest uct development carried out in Ja- no way that automakers can com- bank by assets, BDO Unibank, is pan will be shifted elsewhere. pete in that market, and we do not controlled by billionaire Henry “Unfortunately, this also means have local manufacturing,” said a Sy, while Bank of the Philip- that our team members based in Ford spokeswoman based in Shang- pine Islands is controlled by the Japan and Indonesia will no longer hai, confi rming the content of the Ayala family. Despite the need work for Ford Japan or Ford Indone- e-mail. for foreign partners, Espenilla sia following the closures,” Schoch The company has also had a tough expressed confi dence that Phil- wrote in an e-mail regarding the time selling its Fiestas, Mustangs ippine banks can withstand the decision that was sent to employees and Explorers in the Japanese mar- current global slowdown and yesterday. ket, which is dominated by Toyota market volatility without having Ford, one of Detroit’s “big three” Motor Corp, Honda Motor Co, Nis- to raise new capital. automakers, follows in the footsteps san Motor Co and other domestic But he said foreign competi- of General Motors Co, which last brands. tion is only likely to increase. year decided to stop making GM- On top of that, vehicle sales have The central bank is processing branded cars in Indonesia – with the been falling in Japan as the popula- one new foreign bank applica- A salesperson waits at the Ford display at a car exhibition inside the Jakarta Fair. The automaker said yesterday it will close all loss of 500 jobs – amid intense com- tion ages and demand for cars by tion and three more are actively operations in Japan and Indonesia this year. petition from Japanese rivals. young people decreases. interested, Espenilla said.

FOCUS The importance of a strong Chinese equity market

By Dr Michael Hasenstab domestic stock market has been prone to economic growth. We view the recent Such projects could somewhat off set mies producing finished and industrial extreme fluctuations, partly because it has moderation of growth in China as an inev- the negative drags on growth from the goods, and relatively less with commod- been closed to international investors. And itable normalisation for an economy of its contractions in manufacturing and the ity producers. Moreover, the “One Belt, A strong equity market carries benefits although China’s stock market still plays a size; its nominal level of gross domestic excess capacity in the real estate sector. One Road” initiative and the actions of for China: (i) It provides a more attractive relatively minor role in its economy, both product (GDP) is now five times the size Furthermore, property prices appear to the newly launched Asia Infrastructure backdrop for IPOs, and for private equity as a source of capital for companies and as of what it was 10 years ago. Thus, a lower have bottomed out due to earlier easing Investment Bank also bear close monitor- financing, opening up a new financing op- assets for households, its importance on rate of growth still represents a massive measures. Overall, based on our analysis, ing because of their potential impact on portunity for small and medium-sized en- both sides has increased. level of global aggregate demand. we believe China will remain on course, trade flows over the long term. terprises which have more limited access Last summer, the Chinese government In our assessment, the quality of with GDP growth decelerating moderate- Finally, sustained wage growth to credit; (ii) it creates a better backdrop adopted a number of administrative growth in China has improved in recent ly towards the 6% mark over the next few implies that China should gradually export for privatisations, supporting the State- measures to halt the fall in stock prices years. Increasing labour costs and inter- years while the economy shifts towards a more inflationary push to the rest of the Owned Enterprise (SEO) reform process; after a correction that alarmed investors est rates have put downward pressure consumption, services and higher value- world, reinforcing our view that, starting and (iii) as share ownership has broadened around the world. It is worth recalling that on profits; however, higher wages boost added manufacturing. This has important with the US, the outlook remains for higher over the course of the rally, it can also give the correction at that time came after consumption, which has increasingly implications for the global economy: inflation rates and higher interest rates. some support to domestic consumption valuations had more than doubled over become the anchor of Chinese growth; We believe 6%+ growth in China will In short, China’s economy is in a crucial via a wealth eff ect, even if limited (equity the previous 12 months, but it did not we estimate that consumption is close to support global growth, an important factor stage of rebalancing but we believe it ownership remains extremely low in China precipitate the fully fledged crash that most likely stay the course. We would 60% of GDP and rising. Additionally, new given the structural fragility of the Europe- is not at risk of collapsing. Some of the at less than 2% of household assets). some observers had predicted. The Peo- note that before the depreciation in interest-rate liberalisation policies can an recovery and the prospective tightening traditional engines of growth (manufac- Policymakers are trying to strike the ple’s Bank of China (PBoC) has once again August 2015, China’s currency had ap- redirect capital to the whole economy, of US Federal Reserve (Fed) policy. turing, real estate and local government right balance. They want to prevent a stock intervened to devalue the yuan, and once preciated by over 12% on a real eff ec- particularly the private sector, which we Together with the new round of in- spending) have stalled or contracted but market crash, which would not only pose a again some commentators are inter- tive basis in the preceding 12 months. expect to be the future driver of growth. frastructure investment, this will provide new engines of growth (the service sector risk to economic growth, but also set back preting the devaluation as a signal that Furthermore, China had experienced The private sector in China now some support to commodity markets. and a new generation of private sector the progress in making the equity market a policymakers remain deeply concerned some “hot money” outflows during the contributes more to job growth than the Note, however, that China’s rebalancing companies) are taking over. Although we more important part of the economy, both about the growth slowdown. first-half of the year, which also clearly in- state-owned sector, which has not been from investment to consumption will may continue to experience volatility in as a source of financing for corporates and While some observers feel the Chinese fluenced policymakers’ actions. Although the case for the past 30 years. China’s also reduce demand for most industrial the near term, we remain optimistic about as an investment opportunity for savers. authorities may seek to engineer a substan- the renminbi has experienced a modest rapid urbanisation process will also metals. On balance, therefore, our China China’s outlook as it searches for its new They will prefer, however, to help the tial depreciation to boost growth through depreciation, we do not feel the move necessitate development. Plans for infra- outlook should be consistent with stable equilibrium. market stabilise rather than to fuel another exports – leading to currency wars that is a precursor to a larger uncontrolled structure investment are underway as commodity prices in the next few years. Dr Michael Hasenstab is executive sharp run-up in valuations that could set may disrupt global growth and the global weakening, as feared by markets. the railways sector is set to expand along China’s rebalancing also has a dif- vice president, portfolio manager and the stage for a full-fledged crash. financial system – our view is diff erent. We do not share the markets’ current with demands for broader water purifica- ferential impact on trade flows: We should chief investment off icer with Templeton Over its relatively short history, China’s We believe China’s policymakers will pessimism over the trajectory of China’s tion and environmental related projects. see more trade with advanced econo- Global Macro. Gulf Times 6 Tuesday, January 26, 2016 BUSINESS

Hedge funds cut bearish oil bets before rebound from 12-year low

Bloomberg the year higher. “Getting below $30 day rally since September 2008. Prices had slumped amid concern barrels a day from its peak by the end on US ultra low sulfur diesel rose 9.9% New York exceeded a lot of people’s wildest The front-month contract advanced that turmoil in China’s markets would of February, according to the Energy to 25,232 contracts. Diesel futures slid expectations,” said Andrew Lebow, a 1.7% yesterday before reversing gains curb fuel demand at a time when Information Administration. The oil 8.2% in the period. senior partner at Commodity Research to trade down 3.4% at $31.09 a barrel as fresh crude exports from Iran are market is bottoming, Mercuria Energy Net bullish bets on Nymex gasoline Hedge funds reduced record bets on Group in New York. “At that point you of 9 am London time. poised to exacerbate a global glut. The Group chief executive off icer Marco increased 19% to 19,973 contracts as falling oil prices ahead of the biggest just begin to take a profit.” Speculators’ Oil will probably rise to $50 a barrel International Energy Agency warned Dunand said in an interview at the futures dropped 5.4%. The oil glut may two-day rally since 2008. short position in WTI shrank 8.4% in this year and $70 in 2017, though January 19 that global oil markets World Economic Forum in Davos, limit any rallies. US inventories are West Texas Intermediate futures the week ended on January 19, data investors should expect heightened could “drown in oversupply.” Oil may Switzerland. “Oil producers are strained about 130mn barrels above the five- rebounded from a 12-year low last from the US Commodity Futures volatility along the way, Andurand said be the “trade of the year” if it can to the limit and some of them are year average and supplies at Cushing, week, part of a broad rally in global Trading Commission show. Their net- on January 22. weather the surge in Iran’s shipments, pumping at a loss,” he said. Oklahoma, the delivery point for WTI, markets fuelled by speculation that long position increased 17%. Global stocks surged the most since according to Citigroup Inc. Speculators’ short position in WTI, or are at a record. central banks will expand stimulus WTI dropped 6.5% in the report week 2012 on January 22 after the European Cash-strapped drillers have cut wagers on falling prices, dropped by “It’s a temporary bounce,” said John measures. on the New York Mercantile Exchange Central Bank signalled rates may hold billions from spending plans and idled 16,782 contracts to 184,193 futures and Kilduff , a partner at Again Capital, Pierre Andurand, the founder and closed at $26.55 a barrel on steady or go lower, China said it has 68% of the rigs seeking oil in the US. options, CFTC data show. Longs fell by a New York-based hedge fund of $615mn Andurand Capital January 20, the lowest settlement no plans to further devalue the yuan Output from the prolific shale regions 4,580 to 266,150, bringing the net-long that focuses on energy. “This is an Management who correctly predicted since May 2003. Prices jumped 9% on and pressure increased on the Bank of that have propelled the nation’s oil position up 12,202 to 81,957. opportunity to reload the gun on the the slump in prices, said oil will end January 22, capping the biggest two- Japan to enlarge stimulus. renaissance will fall by 640,000 In other markets, net bearish wagers short side.”

Sensex rises for 2nd day; Asia stock markets extend rupee weakens

Bloomberg Mumbai rally as oil pushes higher ndian stocks capped the biggest two-day AFP rally since October as speculation the Tokyo Iworld’s biggest central banks will boost stimulus lifted emerging-market equities. Tata Steel climbed to about a three-week sian stocks rallied again yes- high, while Coal India had its steepest two- terday as investors bet on cen- day advance in almost four months, after Atral bank stimulus measures to China pledged to further cut overcapac- support markets after the bloodbath ity in those industries. Sun Pharmaceutical at the start of the year. Industries rose the most in a month. HDFC Having set the tone for global trad- Bank increased for a third day after reporting ing fl oors on Friday with sharp gains, earnings that beat estimates. regional dealers took up the mantle The S&P BSE Sensex added 0.2% at the again, with Hong Kong, Tokyo and close after a 2% jump on Friday. The gauge Sydney leading the charge. pared an intraday gain of 0.9% as oil resumed Energy fi rms were among the big- its decline after the biggest two-day rally in gest winners after oil prices surged more than seven years. The Sensex came 10% on Friday, halving the losses within points of entering a bear market on suff ered so far in 2016 that have been Thursday as global funds sold more local as- a key cause of the global market rout. sets on concerns over global growth. Analysts said the snapback – after “For traders, trying to base a long-term three weeks of heavy selling – was call on the rebound is not prudent as the rally due, but warned that the volatil- may not be sustainable as we’re too infl u- ity which has infected markets from enced by global factors,” Nitasha Shankar, Asia to the Americas would likely vice president for equity research at Yes Se- continue. curities in Mumbai, said in an interview with The rally comes at the start of a Bloomberg TV India yesterday. “It’s a very full week of market-moving news, good market for investors as any dip makes including policy meetings by the US valuations attractive.” The Sensex closed and Japanese central banks. below 24,000 level on Thursday for the fi rst There will be close scrutiny of the time since Prime Minister Narendra Modi’s Bank of Japan after a report last week party swept to power in May 2014, as for- said policymakers were considering eigners pulled $1.7bn from Indian equities ramping up its already vast stimulus this month. The gauge trades at 14.7 times programme to avert a defl ation threat projected 12-months earnings, near the that has been exacerbated by plung- cheapest since September. ing oil prices. Growing speculation central banks will That came a day after the head of cut or avoid raising borrowing costs buoyed the European Central Bank, Mario Asian markets in the midst of the worst start Draghi, said he would consider fur- on record for global stocks. European Central ther easing its own monetary policy. Bank president Mario Draghi signalled on There is also increasing specula- Thursday that stimulus programmes may be tion the Federal Reserve will delay boosted as early as March. Brent oil, which another interest rate rise for now, slid as much as 4.5% yesterday on concerns having increased the cost of borrow- of oversupply in the market, remains a desta- ing in December for the fi rst time in bilising factor. a decade. “We’re dancing to the tune of oil-price “There will be some waiting and movements,” Chokkalingam G, managing seeing among policymakers until Pedestrians walk past a share prices board at the Tokyo Stock Exchange. Japanese stocks rose 0.90%, or 152.38 points, to close at 17,110.91 yesterday. director at Equinomics Research & Advisory they know how this market volatil- Pvt in Mumbai, said in an interview with ity will aff ect the global economy,” week with the BoJ and Fed meetings, on the rare show of confi dence across vances for Seoul, Singapore, Taipei, gained 10% and WTI 9%. Among Bloomberg TV India. “We were up until oil Michael McCarthy, chief strate- so there’s a lot for investors to react regional exchanges. Wellington and Jakarta. energy fi rms to benefi t from the re- began slipping. Our view is that oil is close to gist at CMC Markets in Sydney, to. Volatility is likely to continue.” Hong Kong stocks ended 1.4% Oil prices surged in the morning cent rally in oil, Hong Kong-listed the bottom.” told Bloomberg News. “Given the Comments from BoJ governor higher, Tokyo gained 0.9% and Syd- but retreated as the day went on due CNOOC added 4.8% and PetroChina Meanwhile, the rupee fell 0.3% to 67.8350 depression in the markets, there’s Haruhiko Kuroda, who tried to tem- ney fi nished 1.8% stronger. Shanghai to profi t-taking. US benchmark West was 2.9% up. In Sydney, Woodside a dollar, according to prices from local banks scope for the market to add to Fri- per expectations for any easing this ended up 0.8% and Manila soared Texas Intermediate dipped 0.5% and Petroleum gained 3.8% and Santos compiled by Bloomberg. day’s gains. We’ve got a very eventful week, seemed to have little impact 3.6%. There were also healthy ad- Brent 0.6%. On Friday Brent had put on 4.2%. Rupee slump trips fewer alarms China investors fl ock to as funds say India less fragile IPO under relaxed rules Bloomberg “The rupee is a completely diff erent Stock holdings have increased 19% to Mumbai story today and has lost its fragile $164bn in the period. “India remains status,” said Viraj Patel, a London-based off ering a fairly high yield and it’s quite strategist at ING Groep NV, among the stable even in this kind of volatile despite market jitters Global investors are keeping faith most accurate forecasters of the rupee environment,” said Raymond Lim, in India’s rupee bonds, even as the in Bloomberg’s rankings. “The Indian Singapore-based head of Asian bonds currency inches towards the record economy is in a much better shape to at Amundi Asset. The strength of the Reuters share orders during the subscrip- IPOs approved by China’s secu- low reached in 2013, saying the nation’s withstand financial market turmoil. The dollar is a concern across Asia, while Shanghai tion period, leaving them free to rities regulator last week under finances have improved over the past 2 favourable growth dynamic means that the government’s budget will need to place bigger-volume bets with- the new system. 1/2 years. the rupee is not being viewed as a go-to balance fiscal targets and the growth out tying up equivalent funds. At It priced the 16.67mn shares Western Asset Management Co, which short.” India is the only country among outlook, he said. espite China’s stock mar- the same time, analysts and in- on offer at 15.52 yuan each for manages about $450bn, says it has the so-called fragile five with a positive India’s current-account deficit narrowed ket convulsions, investors vestors expect an unoffi cial prac- the listing in China’s Nasdaq- “very large overweight exposure” to outlook from Moody’s Investors to a seven-year low of $27.5bn in the Dfl ocked to the country’s tice of pricing new IPO shares at style ChiNext board in Shen- India’s currency and debt. Amundi Service. The ratings company has put year ended March 2015, from a record fi rst initial public off ering under a discount to listed peers to con- zhen. Proceeds will be used Asset Management said the market will Brazil on review for a downgrade to $88bn two years earlier. Citigroup rules implemented on January tinue, almost guaranteeing a de- to expand the company’s core remain stable despite global volatility. junk, while it has a negative outlook for estimates the shortfall will be $17.3bn in 1 that allow investors to submit but day ‘pop’. business and supplement work- While the rupee has slipped to within South Africa and Turkey and a stable the year ending March 2016. orders without paying upfront ing capital, it said in an earlier 1.9% of the unprecedented 68.8450 outlook on Indonesia. “The smaller the current-account deficit, for new stocks at prices set to re- Under the new rules, prospectus. a dollar reached in August 2013, Investing dollars in rupees will earn the less need for capital,” said Desmond main well below those of already investors no longer The price was equivalent to strategists surveyed by Bloomberg 0.2% by the end of June, according Soon, Singapore-based head of listed peers. need to pre-pay for IPO a 33% discount to listed peers predict it will strengthen to 67 by to forecasts of 32 strategists. That’s investment management in Asia outside While Chinese markets have share orders during the in electric equipment and ma- March-end. the best spot return among 10 Asian of Japan at Western Asset Management. been in turmoil this month as subscription period, chinery manufacturing, Thom- Asia’s third-largest economy has currencies tracked by Bloomberg. “Indian reserves have been one of the the economy grapples with its leaving them free to place son Reuters publication IFR re- been overhauled since the rout in “The rupee should outperform other few to have grown among the fragile worst performance in 25 years, bigger-volume bets without ported. It was also equivalent 2013, when a record current-account currencies in Asia this year in terms of countries.” Consumer-price gains in Guangzhou Goaland Energy tying up equivalent funds to a price-to-earnings ratio of deficit, soaring inflation and weak returns,” said Roy Teo, a senior foreign- India cooled to 5.6% in December, Conservation Tech, a producer of 22.97 times, compared with the growth led Morgan Stanley to include exchange strategist at ABN Amro halving from their November 2013 peak coolants for electricity genera- For investor Zhu Haifeng, a average of more than 87 times the rupee in its list of “fragile five” Bank NV in Singapore. “The current of 11.5%, as a slump in crude prices tors, said its up-to-$39mn IPO businessman turned full-time for companies listed on China’s currencies. Central bank governor weakness is due to risk aversion and benefited the nation that imports was oversubscribed more than stock investor, betting on Goa- Nasdaq-style ChiNext market in Raghuram Rajan boosted India’s foreign once the sentiment improves, markets about 80% of its oil. The Reserve Bank 4,000 times. land Energy was a simple deci- Shenzhen. reserves by the most among major will look at India’s improving economic of India’s currency stockpile has risen Priced nearly a third cheaper sion because he saw nothing to “Regulators artifi cially keep developing economies, a slump in fundamentals and the rupee should about 32% to a near record $324.7bn than listed sector rivals, Goaland lose from the investment. “IPO the IPO prices much lower than oil prices improved external finances recover back to 67 levels.” While from a three-year low in September Energy’s oversubscription rate shares will defi nitely rise to their market valuations,” said inves- and inflation halved. The World Bank foreign funds have pulled money from 2013. India is well placed to tackle was about 10 times that of IPOs upward limit debut,” he said, re- tor Zhu. “Only when government predicts India’s growth this year will be local debt in January, their outstanding volatility in capital flows, RBI governor before the change of rules, ana- ferring to an upper limit of 44% control is removed, say, let IPOs the fastest among the world’s major holdings more than doubled since Rajan said at the World Economic Forum lysts said. on the fi rst day’s trade for a new priced at 50-60 times earnings, economies. August 2013 to Rs3.45tn ($51.1bn). in Davos on January 20. Under the new rules, investors stock. will we witness shares fall below no longer need to pre-pay for IPO Goaland Energy is one of seven IPO prices on debut.” Gulf Times Tuesday, January 26, 2016 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 5.50 -1.79 541,916 Boubyan Intl Industries Hold 24.50 2.08 421,159 Areej Vegetable Oils 5.51 0.00 - Solidarity Saudi Takaful Co 6.56 1.08 1,204,658 Gulf Investment House Ksc 18.50 -2.63 1,728,720 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 5.58 -0.36 540,803 Boubyan Bank K.S.C 385.00 -1.28 434,401 Al-Omaniya Financial Service 0.31 0.00 - Alabdullatif Industrial Inv 18.51 -3.84 562,443 Ahli United Bank B.S.C 186.00 -1.06 381,455 Al-Hassan Engineering Co 0.06 -6.25 10,000 Saudi Printing & Packaging C 16.46 -1.08 1,554,331 Osos Holding Group Co 80.00 0.00 144,479 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.28 1.07 68,127 Saudi Paper Manufacturing Co 11.06 1.37 1,409,127 Qurain Petrochemical Industr 150.00 -2.60 60,764 Al Suwadi Power 0.19 1.06 2,622,905 Alinma Bank 13.01 -1.29 65,700,853 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 57.53 2.55 344,752 Ekttitab Holding Co Sak 25.50 0.00 1,057,986 Al Sharqiya Invest Holding 0.09 2.35 72,433 Falcom Saudi Equity Etf 20.80 -1.89 142,518 Kout Food Group Ksc 560.00 0.00 5 Al Maha Petroleum Products M 1.72 0.00 - QATAR United International Transpo 33.03 -3.56 353,415 Real Estate Trade Centers Co 20.50 13.89 343,031 Al Maha Ceramics Co Saoc 0.34 0.59 49,559 Hsbc Amanah Saudi 20 Etf 24.50 0.00 - Acico Industries Co Kscc 265.00 -5.36 151,605 Al Madina Takaful Co Saoc 0.07 1.43 31,000 Company Name Lt Price % Chg Volume Saudi International Petroche 10.64 2.50 655,385 Kipco Asset Management Co 102.00 0.00 510 Al Madina Investment Co 0.05 0.00 19,000 Falcom Petrochemical Etf 16.00 0.00 20 National Petroleum Services 600.00 0.00 98 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 71.40 0.00 - Saudi United Cooperative Ins 8.05 -0.98 143,728 Alimtiaz Investment Co Kscc 72.00 0.00 17,100 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 42.50 -1.85 9,004 Bank Al-Jazira 11.89 -1.65 4,383,657 Ras Al Khaimah White Cement 91.00 -4.21 1,860 Al Jazeera Steel Products Co 0.15 3.45 904,526 Vodafone Qatar 10.42 -2.62 529,514 Al Rajhi Bank 47.97 -0.70 3,052,753 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Jazeera Services 0.23 0.44 51,499 United Development Co 18.00 -3.23 65,032 Samba Financial Group 18.82 -1.21 450,042 Kuwait & Gulf Link Transport 38.50 2.67 132,000 Al Izz Islamic Bank 0.06 1.82 320,469 Salam International Investme 10.00 -1.77 213,246 United Electronics Co 25.26 -3.95 1,863,780 Human Soft Holding Co Ksc 770.00 0.00 27 Al Buraimi Hotel 0.88 0.00 - Islamic Holding Group-Rts 0.00 0.00 - Allied Cooperative Insurance 11.15 -1.24 469,828 Automated Systems Co Kscc 310.00 0.00 790 Al Batinah Power 0.19 0.53 2,081,427 Qatar & Oman Investment Co 10.28 -7.39 404,844 Malath Cooperative & Reinsur 13.05 -0.15 3,996,371 Metal & Recycling Co 57.00 0.00 10 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 88.20 -3.08 8,000 Alinma Tokio Marine 14.82 0.20 2,256,636 Gulf Franchising Holding Co 26.00 1.96 3,000 Al Batinah Dev & Inv 0.07 -2.74 42,200 Qatar National Cement Co 90.50 -1.63 63,837 Arabian Shield Cooperative 19.81 -3.93 611,003 Al-Enma’a Real Estate Co 57.00 0.00 217,500 Al Anwar Holdings Saog 0.15 2.72 4,354,308 Qatar National Bank 152.00 0.80 314,655 Savola 35.08 9.80 530,082 National Mobile Telecommuni 1,040.00 0.00 21,696 Ahli Bank 0.19 0.00 - Qatar Islamic Insurance 64.10 -3.46 162 Wafrah For Industry And Deve 18.86 -0.47 1,125,453 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.65 -1.21 12,825 Qatar Industrial Manufactur 37.10 -0.27 2,802 Fitaihi Holding Group 10.75 4.27 1,228,698 Housing Finance Co Sak 23.50 -2.08 571,747 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 62.00 0.00 13,710 Tourism Enterprise Co/ Shams 32.98 -2.43 1,553,431 Al Salam Group Holding Co 26.50 -1.85 510,079 A’saff a Foods Saog 0.86 0.00 34 Qatari Investors Group 25.00 -7.41 156,985 Sahara Petrochemical Co 7.85 -2.73 3,629,435 United Foodstuff Industries 132.00 0.00 11 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 82.50 -2.37 103,984 Herfy Food Services Co 68.28 -5.05 731,509 Al Aman Investment Company 48.00 -4.00 20,750 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 19.76 -3.80 166,466 Mashaer Holdings Co Ksc 95.00 -3.06 40 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 43.50 -7.45 2,123 Manazel Holding 18.00 0.00 5,098,930 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 9.86 -3.05 112,507 Mushrif Trading & Contractin 53.00 3.92 2,089,252 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 125.60 -1.88 41,159 KUWAIT Tijara And Real Estate Inves 39.50 0.00 20 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 184.90 0.43 19,790 Kuwait Building Materials 0.00 0.00 - #N/A Invalid Security 0.00 0.00 - Qatar Cinema & Film Distrib 28.30 -9.73 159 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 790.00 0.00 6,010 #N/A Invalid Security 0.00 0.00 - Qatar Insurance Co 74.00 -3.65 30,786 Commercial Real Estate Co 73.00 -1.35 340,000 Ooredoo Qsc 73.60 -3.29 73,020 Securities Group Co 97.00 0.00 1,980,500 Future Communications Co 100.00 0.00 3,701 National Leasing 11.70 1.21 205,570 Sultan Center Food Products 55.00 10.00 701,748 National International Co 39.50 5.33 1,000 Mazaya Qatar Real Estate Dev 11.91 -0.75 420,322 Kuwait Foundry Co Sak 212.00 0.00 8,750 Taameer Real Estate Invest C 19.00 2.70 2,039,712 UAE Mesaieed Petrochemical Holdi 15.60 -1.70 81,327 Kuwait Financial Centre Sak 89.00 0.00 30,000 Gulf Cement Co 68.00 0.00 90 Al Meera Consumer Goods Co 182.40 -0.82 2,170 Ajial Real Estate Entmt 136.00 0.00 25,500 Heavy Engineering And Ship B 142.00 7.58 138 Company Name Lt Price % Chg Volume Medicare Group 78.00 -2.50 16,233 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 305.00 0.00 25,000 Mannai Corporation Qsc 84.00 0.84 4,229 Kuwait Finance & Investment 31.50 -7.35 265,120 National Real Estate Co 84.00 6.33 2,033,843 Waha Capital Pjsc 1.76 -3.30 568,280 Masraf Al Rayan 32.50 -1.37 223,019 National Industries Co Ksc 230.00 0.00 13,133 Al Safat Energy Holding Comp 8.50 -5.56 2,398,279 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 16.80 -3.45 100,750 Kuwait Real Estate Holding C 19.00 0.00 2,500 Kuwait National Cinema Co 940.00 0.00 40,480 United Arab Bank Pjsc 4.84 0.00 - Industries Qatar 95.00 0.53 118,903 Securities House/The 27.00 -1.82 1,647,653 Danah Alsafat Foodstuff Co 70.00 1.45 14,000 Union National Bank/Abu Dhab 3.48 -1.97 801,920 Islamic Holding Group 58.00 -2.52 12,847 Boubyan Petrochemicals Co 440.00 0.00 649,279 Independent Petroleum Group 315.00 0.00 3,125 Union Insurance Co 1.21 0.00 - Gulf Warehousing Company 47.00 2.17 1,455 Al Ahli Bank Of Kuwait 345.00 -1.43 4,996 Kuwait Real Estate Co Ksc 42.50 -1.16 1,889,406 Union Cement Co 1.19 0.00 - Gulf International Services 41.50 -1.54 997,797 Ahli United Bank (Almutahed) 420.00 0.00 40,176 Salhia Real Estate Co Ksc 330.00 3.13 111,500 Umm Al Qaiwain Cement Indust 0.90 0.00 - Ezdan Holding Group 12.45 -2.73 756,021 National Bank Of Kuwait 660.00 -1.49 993,312 Gulf Cable & Electrical Ind 325.00 0.00 8,671 Sharjah Islamic Bank 1.20 0.00 268,596 Doha Insurance Co 20.00 0.00 - Commercial Bank Of Kuwait 510.00 0.00 24,000 Al Nawadi Holding Co Ksc 84.00 0.00 61,000 Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 36.35 -2.02 881,125 Kuwait International Bank 192.00 -3.03 320,624 Kuwait Finance House 450.00 -1.10 2,119,515 Sharjah Group 1.50 0.00 - Dlala Holding 12.99 -0.08 19,319 Gulf Bank 206.00 -0.96 376,581 Gulf North Africa Holding Co 20.50 -4.65 946,400 Sharjah Cement & Indus Devel 0.98 0.00 - Commercial Bank Qsc 40.20 0.37 105,465 Al-Massaleh Real Estate Co 61.00 0.00 13 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 31.60 -3.95 462,006 Al Arabiya Real Estate Co 22.50 -6.25 451,847 Osoul Investment Kscc 34.00 4.62 1,500 Ras Al Khaimah White Cement 1.41 0.00 - Al Khaleej Takaful Group 27.85 -0.54 692 Kuwait Remal Real Estate Co 30.50 5.17 4,500 Gulf Insurance Group Ksc 0.00 0.00 - Ras Al Khaimah Ceramics 3.00 1.69 50,000 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 1,820.00 -1.09 79,831 Ras Al Khaimah Cement Co Psc 0.86 0.00 - A’ayan Real Estate Co Sak 68.00 -1.45 52,500 Umm Al Qaiwain Cement Indust 68.00 -2.86 622 Ras Al Khaima Poultry 2.24 0.00 - Investors Holding Group Co.K 19.00 0.00 2,406,273 Aayan Leasing & Investment 42.50 0.00 1,110 Rak Properties 0.45 -2.17 778,088 Al-Mazaya Holding Co 99.00 1.02 2,016,750 Ooredoo Qsc 80.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 1.38 0.00 - Gulf Petroleum Investment 38.00 0.00 1,848,218 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 820.00 -3.53 136,157 OMAN 1.08 - City Group 380.00 0.00 10 National Marine Dredging Co 5.11 0.00 - National Investor Co/The 0.63 0.00 - United Wire Factories Compan 15.69 0.84 90,188 Inovest Co Bsc 50.00 0.00 11,700 Company Name Lt Price % Chg Volume Etihad Etisalat Co 23.03 -0.30 4,319,139 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.50 0.00 - Dar Al Arkan Real Estate Dev 4.87 -1.62 17,609,789 Al-Deera Holding Co 22.50 -2.17 46,906 Voltamp Energy Saog 0.41 -2.38 99,803 National Bank Of Umm Al Qaiw 3.30 11.11 5,000 Saudi Hollandi Bank 25.35 1.16 148,549 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.38 3.26 910,800 Rabigh Refining And Petroche 8.51 3.15 5,997,678 Mena Real Estate Co 17.50 2.94 136,010 United Power Co Saog 2.60 0.00 - National Bank Of Fujairah 5.31 0.00 - Banque Saudi Fransi 23.25 -0.26 99,499 National Slaughter House 62.00 0.00 5,000 United Finance Co 0.11 0.94 44,776 National Bank Of Abu Dhabi 7.01 -2.23 677,896 Saudi Enaya Cooperative Insu 10.61 1.63 541,474 Amar Finance & Leasing Co 65.00 0.00 2,000 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.46 -2.13 1,065,088 Mediterranean & Gulf Insuran 15.90 2.78 4,791,070 United Projects Group Kscc 600.00 0.00 11,060 Takaful Oman 0.10 -5.00 50,000 Manazel Real Estate Pjsc 0.43 -4.44 24,918,871 Saudi British Bank 20.45 0.94 67,552 National Consumer Holding Co 0.00 0.00 - Taageer Finance 0.13 0.00 - Invest Bank 1.60 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 23.00 0.00 29,200 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 5.20 -5.45 586 Red Sea Housing Services Co 17.99 3.33 780,025 Jeeran Holdings 62.00 0.00 170 Sohar Power Co 0.35 0.00 - Insurance House 0.81 0.00 - Takween Advanced Industries 17.95 0.96 2,036,922 Equipment Holding Co K.S.C.C 49.00 -5.77 176,790 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Industri 2.48 0.00 - Sabb Takaful 19.38 2.98 1,290,907 Nafais Holding 130.00 0.00 99,032 Smn Power Holding Saog 0.74 0.00 935,000 Gulf Medical Projects 2.40 0.00 - Saudi Arabian Fertilizer Co 64.74 -0.23 105,714 Safwan Trading & Contracting 305.00 1.67 100 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.89 0.00 - National Gypsum 11.20 0.00 260,855 Arkan Al Kuwait Real Estate 110.00 0.00 20,005 Shell Oman Marketing 1.97 -0.25 32,613 Fujairah Cement Industries 1.25 0.00 - Saudi Ceramic Co 36.57 -0.44 511,653 Gfh Financial Group Bsc 43.00 6.17 19,281,831 Sharqiyah Desalination Co Sa 4.65 0.00 - Fujairah Building Industries 1.71 0.00 - National Gas & Industrializa 19.22 -0.67 100,655 Energy House Holding Co Kscp 34.50 0.00 4,048 Sembcorp Salalah Power & Wat 2.40 1.91 97,321 Foodco Holding Pjsc 4.00 0.00 - Saudi Pharmaceutical Industr 25.89 7.12 761,886 Kuwait Slaughter House Co 0.00 0.00 - Salalah Port Services 0.65 0.00 - First Gulf Bank 10.25 -2.38 3,091,470 Thimar 26.21 5.47 2,294,578 Kuwait Co For Process Plant 210.00 5.00 14,250 Salalah Mills Co 1.49 0.00 - Finance House 1.95 -1.52 72,022 National Industrialization C 8.06 -0.49 1,239,173 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.43 -2.27 6,824,718 Saudi Transport And Investme 52.42 -2.26 425,856 National Ranges Company 17.50 2.94 1,693,854 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 15.75 0.64 1,538,917 Saudi Electricity Co 13.88 1.54 567,512 Al-Themar Real International 75.00 0.00 4,387,123 Renaissance Services Saog 0.12 0.86 143,265 Emirates Insurance Co. (Psc) 6.72 0.00 - Saudi Arabia Refineries Co 27.21 1.19 378,518 Al-Ahleia Insurance Co Sakp 435.00 0.00 12,104 Raysut Cement Co 0.95 0.00 33,826 Emirates Driving Company 5.20 0.00 - Arriyadh Development Company 16.25 -2.46 1,341,500 Wethaq Takaful Insurance Co 34.00 0.00 1,940 Port Service Corporation 0.12 0.00 50,000 Dana Gas 0.41 -2.38 12,556,817 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 68.00 1.49 100 Phoenix Power Co Saoc 0.13 0.76 1,687,672 Commercial Bank Internationa 2.10 0.00 - Saudi Research And Marketing 39.76 -1.49 920,926 Aqar Real Estate Investments 80.00 0.00 11,017,087 Packaging Co Ltd 0.48 0.00 - Bank Of Sharjah 1.55 0.00 - Aldrees Petroleum And Transp 32.61 0.34 358,700 Hayat Communications 41.50 -4.60 215,094 Ooredoo 0.63 1.29 342,685 Axa Green Crescent Insurance 0.75 0.00 - Saudi Vitrified Clay Pipe Co 72.84 0.98 20,870 Kuwait Packing Materials Mfg 350.00 0.00 15,000 Ominvest 0.45 0.00 8,999 Arkan Building Materials Co 0.85 -6.59 276,000 Jarir Marketing Co 116.54 2.71 118,419 Soor Fuel Marketing Co Ksc 102.00 2.00 42,674 Oman United Insurance Co 0.17 1.20 50,394 Alkhaleej Investment 2.45 0.00 - Arab National Bank 19.40 -1.32 325,491 Alargan International Real 158.00 -1.25 368,352 Oman Textile Holding Co Saog 0.35 0.00 - Aldar Properties Pjsc 2.10 0.00 18,544,802 Yanbu National Petrochemical 29.06 0.55 325,815 Burgan Co For Well Drilling 120.00 5.26 500 Oman Telecommunications Co 1.45 2.85 338,137 Al Wathba National Insurance 4.50 0.00 - Arabian Cement 39.60 0.25 513,041 Kuwait Resorts Co Kscc 87.00 -2.25 50,089 Oman Refreshment Co 2.22 0.00 - Al Khazna Insurance Co 0.28 -3.45 28,000 Middle East Specialized Cabl 6.45 0.00 - Oula Fuel Marketing Co 102.00 -3.77 9,170 Oman Packaging 0.29 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 20.13 0.80 706,729 Palms Agro Production Co 106.00 0.00 1,235 Oman Orix Leasing Co. 0.14 0.00 - Al Dhafra Insurance Co. P.S. 4.80 0.00 - Al Sagr Co-Operative Insuran 24.41 -3.10 607,263 Ikarus Petroleum Industries 70.00 0.00 30,400 Oman Oil Marketing Company 2.00 0.00 - Al Buhaira National Insuranc 2.85 0.00 - Trade Union Cooperative Insu 11.11 -3.64 1,949,548 Mubarrad Transport Co 62.00 3.33 696,372 Oman National Engineering An 0.23 0.00 - Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 5.80 0.87 904,757 Al Mowasat Health Care Co 180.00 0.00 38,000 Oman Investment & Finance 0.17 -0.59 497,584 Agthia Group Pjsc 6.98 -4.90 159,385 Saudi Chemical Company 47.68 -0.81 174,254 Shuaiba Industrial Co 380.00 0.00 1,963 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.70 -6.90 29,000 Fawaz Abdulaziz Alhokair & C 42.51 -0.79 398,319 Hits Telecom Holding 24.50 -5.77 300,001 Oman Hotels & Tourism Co 0.24 0.00 - Abu Dhabi Natl Co For Buildi 0.37 0.00 - Bupa Arabia For Cooperative 111.61 -0.21 232,143 First Takaful Insurance Co 0.00 0.00 - Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 4.26 0.00 - Wafa Insurance 6.91 -5.99 2,322,436 Kuwaiti Syrian Holding Co 20.00 0.00 549,344 Oman Flour Mills 0.41 0.00 - Abu Dhabi National Insurance 2.90 0.00 - Jabal Omar Development Co 48.25 -0.49 349,032 National Cleaning Company 35.50 -4.05 235,000 Oman Fisheries Co 0.05 0.00 21,300 Abu Dhabi National Hotels 2.50 0.00 - Saudi Basic Industries Corp 64.10 0.28 8,189,729 Eyas For High & Technical Ed 335.00 0.00 430,565 Oman Fiber Optics 5.26 0.00 - Abu Dhabi National Energy Co 0.40 -4.76 20,249 Saudi Kayan Petrochemical Co 4.80 -2.83 22,657,432 United Real Estate Company 88.00 -4.35 500 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.10 -1.59 908,001 Etihad Atheeb Telecommunicat 3.90 -0.26 1,380,252 Agility 415.00 0.00 2,691,189 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 64.77 -2.59 139,782 Kuwait & Middle East Fin Inv 25.00 -1.96 1,500 Oman Chromite 3.64 0.00 - National Petrochemical Co 14.01 -1.75 270,956 Fujairah Cement Industries 71.00 0.00 1 Oman Chlorine 0.51 0.00 - BAHRAIN Gulf Union Cooperative Insur 7.81 -2.38 430,235 Livestock Transport & Tradng 118.00 0.00 40,000 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 11.53 -0.60 425,998 International Resorts Co 22.00 -8.33 337,130 Oman Cement Co 0.46 0.00 - Basic Chemical Industries 16.65 -1.42 414,012 National Industries Grp Hold 108.00 -1.82 407,088 Oman Cables Industry 1.54 -4.06 91,566 Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.50 Marine Services Co Ksc 0.00 15.89 76,918 114.00 20,000 Oman Agricultural Dev 1.75 0.00 - Zain Bahrain Bscc 0.17 -4.49 160,000 Buruj Cooperative Insurance 1.11 Warba Insurance Co 0.00 15.50 760,815 100.00 1,212 Oman & Emirates Inv(Om)50% 0.08 3.75 227,820 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 2.87 Kuwait United Poultry Co 0.00 109.04 27,628 196.00 23 Natl Aluminium Products 0.21 -1.91 8,400 United Gulf Investment Corp 0.10 0.00 - Southern Province Cement Co -1.08 First Dubai Real Estate Deve -4.11 65.23 20,713 35.00 147,010 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah -1.07 Al Arabi Group Holding Co 0.00 19.45 413,470 72.00 35,000 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.24 0.00 374,361 Yamama Cement Co -1.86 Kuwait Hotels Sak 0.00 25.30 274,618 220.00 49,000 National Pharmaceutical 0.11 0.00 - Takaful International Co 0.10 0.00 - Jazan Development Co -2.36 Mobile Telecommunications Co -1.52 11.59 4,808,699 325.00 581,709 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.34 Al Safat Real Estate Co 0.00 28.02 447,066 0.00 - National Hospitality Institu 2.05 0.00 - Seef Properties 0.20 0.00 70,000 Alujain Corporation (Alco) -1.74 Tamdeen Real Estate Co Ksc 0.00 10.76 770,903 620.00 1,000 National Gas Co 0.29 0.00 5,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 4.06 Al Mudon Intl Real Estate Co 0.00 8.97 1,911,951 28.00 120,000 National Finance Co 0.13 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 0.38 Kuwait Cement Co Ksc 0.00 7.96 279,973 360.00 10,000 National Detergent Co Saog 0.64 0.00 - National Bank Of Bahrain Bsc 0.65 -1.52 10,000 Qassim Cement/The -1.98 Sharjah Cement & Indus Devel 0.00 58.00 63,684 81.00 201,000 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.12 0.00 534,500 Saudi Advanced Industries 4.37 Kuwait Portland Cement Co 1.02 9.07 908,748 990.00 10,520 National Bank Of Oman Saog 0.22 0.00 54,000 Khaleeji Commercial Bank 0.06 0.00 425,000 Kingdom Holding Co -2.22 Educational Holding Group 5.62 11.00 1,135,391 188.00 150 Muscat Thread Mills Co 0.13 0.00 - Ithmaar Bank Bsc 0.11 -8.70 246,450 Saudi Arabian Amiantit Co -0.28 Bahrain Kuwait Insurance 0.00 7.25 816,025 0.00 - Muscat National Holding 1.86 0.00 - Investcorp Bank -$Us 6.60 0.00 603 Al Jouf Agriculture Developm 3.65 Asiya Capital Investments Co 0.00 20.43 504,856 36.00 69,058 Muscat Gases Company Saog 0.83 0.00 - Inovest Co Bsc 0.16 0.00 48,482 Saudi Industrial Development 0.85 Kuwait Investment Co -3.33 8.31 3,310,969 87.00 10,000 Muscat Finance 0.14 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 69.75 - 305.00 662,772 Majan Glass Company 0.20 0.00 - Gulf Hotel Group B.S.C 0.78 0.00 3,066 Riyad Bank -0.36 Kuwait Projects Co Holdings 0.00 11.00 378,709 500.00 939,554 Majan College 0.52 0.00 - Global Investment House Kpsc 0.00 0.00 - The National Agriculture Dev 1.23 Al Madina For Finance And In 0.00 18.10 602,826 26.00 603,530 Hsbc Bank Oman 0.10 0.00 - Gfh Financial Group Bsc 0.14 0.00 30,000 Halwani Bros Co -2.73 Kuwait Insurance Co 0.00 61.61 52,594 320.00 16,000 Hotels Management Co Interna 1.25 0.00 - Esterad Investment Co B.S.C. 0.20 0.00 38,920 Arabian Pipes Co 2.52 Al Masaken Intl Real Estate -1.47 8.15 2,299,656 67.00 266,061 Gulf Stone 0.11 0.00 - Delmon Poultry Co 0.00 0.00 - Eastern Province Cement Co 0.19 Intl Financial Advisors -2.17 26.69 244,553 22.50 1,812,205 Gulf Plastic Industries Co 0.39 0.00 - Bmmi Bsc 0.85 -3.41 5,744 Al Qassim Agricultural Co 3.48 First Investment Co Kscc -4.44 9.51 3,045,720 43.00 350,000 Gulf Mushroom Company 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Filing & Packing Materials M 3.85 Al Mal In -2.27 30.19 344,223 vestment Company 21.50 3,952,797 Gulf Investments Services 0.09 7.32 1,295,443 Bbk Bsc 0.39 0.00 35,000 Saudi Cable Co -1.22 5.08 6.46 1,340,969 Bayan Investment Co Kscc 31.00 4,096,910 Gulf Invest. Serv. Pref-Shar 0.12 0.00 - Bankmuscat Saog 0.00 0.00 - Tihama Advertising & Public 9.89 0.00 18.55 1,259,121 Egypt Kuwait Holding Co Sae 156.00 28,500 Gulf International Chemicals 0.26 -1.91 64,049 Banader Hotels Co ` 0.00 - Saudi Investment Bank/The 0.00 0.00 15.00 67,731 Coast Investment Development 21.50 1,286,623 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Tourism Co 0.23 0.00 10,108 Astra Industrial Group -0.21 -5.75 14.04 802,401 Privatization Holding Compan 41.00 463,706 Global Fin Investment 0.10 0.00 20,000 Bahrain Telecom Co 0.30 -0.66 99,897 Saudi Public Transport Co -0.50 0.00 9.95 2,376,771 Kuwait Medical Services Co 27.00 45,080 Galfar Engineering&Contract 0.05 0.00 275,602 Bahrain Ship Repair & Engin 1.81 0.00 3,375 Taiba Holding Co -1.22 -5.95 31.60 98,144 Injazzat Real State Company 79.00 200 Galfar Engineering -Prefer 0.39 0.00 - Bahrain National Holding 0.00 0.00 - Saudi Industrial Export Co 3.53 -8.89 27.01 844,896 Kuwait Cable Vision Sak 20.50 1,000 Financial Services Co. 0.17 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Real Estate Co -1.45 0.00 15.67 276,899 Sanam Real Estate Co Kscc 41.00 450 Financial Corp/The 0.11 0.00 - Bahrain Islamic Bank 0.14 0.00 14,989 Saudia Dairy & Foodstuff Co 0.13 -3.13 113.13 25,998 Ithmaar Bank Bsc 31.00 23,209,481 Dhofar University 1.49 0.00 - Bahrain Flour Mills Co 0.00 0.00 - National Shipping Co Of/The 0.89 -1.04 37.41 3,939,367 Aviation Lease And Finance C 190.00 101,933 Dhofar Tourism 0.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - Methanol Chemicals Co -1.35 1.49 5.12 1,309,790 Arzan Financial Group For Fi 34.00 1,000 Dhofar Poultry 0.18 0.00 - Bahrain Duty Free Complex 0.90 -0.56 5,000 Ace Arabia Cooperative Insur 1.14 -4.08 35.62 67,512 Ajwan Gulf Real Estate Co 23.50 218,000 Dhofar Intl Development 0.40 0.00 - Bahrain Commercial Facilitie 0.77 0.00 3,000 Mobile Telecommunications Co -2.00 0.00 5.89 2,457,651 Kuwait Business Town Real Es 34.50 1,571,700 Dhofar Insurance 0.21 0.00 - Bahrain Cinema Co 1.17 -10.00 6,321 Saudi Arabian Coop Ins Co 0.93 0.00 14.11 528,585 Future Kid Entertainment And 110.00 50 Dhofar Fisheries & Food Indu 1.28 0.00 - Bahrain Car Park Co 0.00 0.00 - Axa Cooperative Insurance -1.84 0.00 11.20 891,425 Specialities Group Holding C 88.00 20,100 Dhofar Cattlefeed 0.21 0.00 - Arab Insurance Group(Bsc)-$ 0.38 0.00 47,500 Alsorayai Group -0.55 -8.16 8.97 719,124 Abyaar Real Eastate Developm 22.50 424,000 Dhofar Beverages Co 0.26 0.00 - Arab Banking Corp Bsc-$Us 0.50 0.00 288,170 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 0.00 - Construction Materials Ind 0.03 3.57 10,000 Aluminium Bahrain Bsc 0.35 -0.56 94,137 Bank Albilad -1.03 -6.52 20.11 396,401 Al-Dar National Real Estate 21.50 33,290,877 Computer Stationery Inds 0.26 0.00 - Albaraka Banking Group 0.56 0.00 12,000 Al-Hassan G.I. Shaker Co 2.65 2.20 18.98 1,233,859 Kgl Logistics Company Kscc 46.50 458,150 Bankmuscat Saog 0.41 0.49 1,329,062 Al-Salam Bank 0.08 0.00 37,750 Wataniya Insurance Co 0.99 0.00 45.01 97,880 Combined Group Contracting 780.00 500 Bank Sohar 0.13 0.00 189,059 Al-Ahlia Insurance Co 0.00 0.00 - Abdullah Al Othaim Markets 79.79 8.93 139,478 Zima Holding Co Ksc 80.00 0.00 132,980 Bank Nizwa 0.06 0.00 415,316 Hail Cement 10.65 0.00 406,606 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Tuesday, January 26, 2016 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 15,999.52 -93.99 Apple Inc 100.56 -0.85 18,303,219 S&P 500 Index 1,889.84 -17.06 Microsoft Corp 52.02 -0.52 9,851,586 Nasdaq Composite Index 4,567.94 -23.24 Exxon Mobil Corp 75.52 -1.37 4,596,088 S&P/Tsx Composite Index 12,241.23 -148.35 General Electric Co 28.14 -0.35 18,916,768 Mexico Bolsa Index 41,476.25 -145.06 Johnson & Johnson 96.63 -0.12 2,658,972 Brazil Bovespa Stock Idx 38,031.22 +314.11 Jpmorgan Chase & Co 56.11 -1.47 6,109,141 Ftse 100 Index 5,854.25 -45.76 Procter & Gamble Co/The 76.98 -0.49 3,441,651 Cac 40 Index 4,292.57 -44.12 Pfizer Inc 30.60 -0.36 8,948,488 Dax Index 9,683.84 -81.04 Wal-Mart Stores Inc 63.40 1.13 3,756,283 Ibex 35 Tr 8,539.10 -183.80 Walt Disney Co/The 96.11 -0.82 1,959,817 Nikkei 225 17,110.91 +152.38 Coca-Cola Co/The 42.22 0.38 3,072,922 Japan Topix 1,392.63 +18.44 Verizon Communications Inc 47.45 0.87 6,413,457 Hang Seng Index 19,340.14 +259.63 Visa Inc-Class A Shares 72.18 -0.72 2,687,823 All Ordinaries Indx 5,057.07 +87.51 Home Depot Inc 121.72 -0.85 1,562,201 Nzx All Index 1,190.04 +9.44 Chevron Corp 82.84 -0.84 4,036,324 Bse Sensex 30 Index 24,485.95 +50.29 Intel Corp 29.84 -0.28 6,027,825 Nse S&P Cnx Nifty Index 7,436.15 +13.70 Merck & Co. Inc. 50.95 -0.78 2,601,587 Straits Times Index 2,582.64 +5.55 Cisco Systems Inc 23.27 -0.45 15,377,770 Karachi All Share Index 21,855.51 +77.29 Intl Business Machines Corp 123.27 0.63 1,809,013 Jakarta Composite Index 4,505.79 +49.04 Nike Inc -Cl B 60.93 0.08 3,089,279 Unitedhealth Group Inc 113.61 -0.63 787,041 Mcdonald’s Corp 119.43 0.87 7,540,561 Boeing Co/The 123.88 -0.59 1,214,693 TOKYO 3M Co 138.86 -0.47 716,147 United Technologies Corp 85.49 -1.00 2,191,890 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 153.29 -2.28 1,423,816 Rakuten Inc 1,205.50 2.33 6,432,400 American Express Co 55.58 0.94 8,004,075 Kyocera Corp 5,059.00 -1.54 1,605,600 Du Pont (E.I.) De Nemours 54.11 -1.16 1,099,743 Nissan Motor Co Ltd 1,104.00 0.09 9,947,400 Caterpillar Inc 58.67 -3.79 4,575,394 Hitachi Ltd 597.80 -0.71 34,696,000 Travelers Cos Inc/The 102.20 -0.91 883,333 Takeda Pharmaceutical Co Ltd 5,655.00 1.78 1,904,300 Jfe Holdings Inc 1,703.50 1.37 4,632,400 Ana Holdings Inc 343.30 2.39 25,965,000 Traders work at the Frankfurt Stock Exchange. The DAX 30 index lost 0.3% yesterday. FTSE 100 Mitsubishi Electric Corp 1,126.50 0.45 9,163,000 Sumitomo Mitsui Financial Gr 4,004.00 1.11 8,689,300 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,348.00 -0.09 4,229,700 Fast Retailing Co Ltd 37,870.00 1.20 974,800 Wpp Plc 1,460.00 -0.48 2,660,427 Ms&Ad Insurance Group Holdin 3,089.00 0.42 1,079,100 Worldpay Group Plc 303.90 0.13 2,333,400 Kubota Corp 1,658.50 1.31 4,343,500 Wolseley Plc 3,421.00 -1.86 411,429 Seven & I Holdings Co Ltd 5,114.00 2.28 3,814,100 Whitbread Plc 3,914.00 -1.29 328,696 Inpex Corp 1,022.00 3.28 8,475,800 European markets fall on Vodafone Group Plc 217.55 -0.87 30,546,046 Resona Holdings Inc 563.00 1.22 9,309,100 United Utilities Group Plc 921.50 0.27 526,820 Asahi Kasei Corp 755.30 3.42 8,980,000 Unilever Plc 2,939.50 0.70 1,697,405 Kirin Holdings Co Ltd 1,586.00 2.22 2,069,500 Tui Ag-Di 1,216.00 0.00 501,897 Marubeni Corp 547.30 1.28 11,933,700 Travis Perkins Plc 1,785.00 -1.27 338,226 Mitsubishi Ufj Financial Gro 627.30 0.42 79,751,300 Tesco Plc 155.05 -3.43 12,847,398 Mitsubishi Chemical Holdings 662.30 0.91 6,973,200 oil’s protracted price woes Taylor Wimpey Plc 182.70 0.66 5,071,001 Fanuc Corp 18,550.00 -1.20 1,237,500 Standard Life Plc 356.60 -2.01 2,414,455 Daito Trust Construct Co Ltd 14,075.00 0.90 345,700 Standard Chartered Plc 474.70 -2.82 5,001,989 er-than-expected 1.3 points to 107.3 500 off 0.4% and the tech-rich Nasdaq Otsuka Holdings Co Ltd 3,982.00 2.47 1,556,000 AFP St James’s Place Plc 905.00 -0.44 650,297 Oriental Land Co Ltd 7,290.00 2.42 873,000 points in January, the lowest level since Composite Index slipping 0.5%. Sse Plc 1,384.00 -0.07 1,607,500 London Sekisui House Ltd 1,809.00 1.66 3,434,300 February 2015. “It’s been a volatile start to the week Sports Direct International 417.80 -1.00 1,563,024 Secom Co Ltd 7,860.00 1.83 938,800 The Ifo survey “has brought the in fi nancial markets and that doesn’t Smiths Group Plc 886.50 -2.37 529,858 Tokio Marine Holdings Inc 4,128.00 1.75 2,028,100 Smith & Nephew Plc 1,128.00 0.27 1,171,568 il’s protracted price woes, cou- strongest signal yet that the recent look like abating in the fi nal week of Aeon Co Ltd 1,561.50 2.03 3,567,700 Sky Plc 1,047.00 -0.10 1,763,468 pled with pessimism on Ger- global economic concerns and as- the month, as the Federal Reserve and Mitsui & Co Ltd 1,306.50 1.95 11,830,900 Shire Plc 4,225.00 -0.07 595,481 many, caused renewed jitters sociated fi nal market gyrations have Bank of Japan announce their latest Kao Corp 5,981.00 3.25 3,846,800 O Severn Trent Plc 2,125.00 0.05 221,459 on world stock markets yesterday, with started to hit the eurozone’s biggest monetary policy decisions, we get a Dai-Ichi Life Insurance 1,705.50 0.41 4,693,000 Schroders Plc 2,635.00 -1.05 229,062 Mazda Motor Corp 2,018.50 0.30 8,695,000 equities in Europe ending down after economy”, said Capital Economics number of key economic releases and Sainsbury (J) Plc 230.40 -1.37 3,121,037 Komatsu Ltd 1,753.50 0.66 3,335,400 Asia had earlier gained ground. economist Jonathan Loynes. corporate earnings season gets into full Sage Group Plc/The 566.00 2.07 1,960,480 West Japan Railway Co 7,409.00 0.54 829,900 Asian stock markets closed with London and Paris also ended in the swing,” said Craig Erlam, senior mar- Sabmiller Plc 4,193.00 0.08 1,514,138 Murata Manufacturing Co Ltd 14,955.00 0.10 1,556,300 Rsa Insurance Group Plc 399.80 -1.36 2,109,625 gains as investors bet on central bank red, although commodity trading and ket analyst at Oanda trading group. Kansai Electric Power Co Inc 1,267.50 2.05 2,960,600 Royal Mail Plc 446.40 -0.51 1,966,252 stimulus measures to support markets mining company Glencore led a mixed After global equities enjoyed sharp Denso Corp 5,069.00 0.00 1,796,100 Royal Dutch Shell Plc-B Shs 1,388.00 0.00 9,719,411 after the bloodbath at the start of the bag of risers on London’s FTSE-100 gains on Friday, Asian trading fl oors Sompo Japan Nipponkoa Holdin 3,415.00 1.04 975,200 Royal Dutch Shell Plc-A Shs 1,384.00 -0.22 8,894,598 moved forward, led by Hong Kong, To- Daiwa House Industry Co Ltd 3,054.00 2.35 2,551,300 year. index with a 4.4% advance as traders Royal Bank Of Scotland Group 250.40 -4.46 10,790,044 Jx Holdings Inc 438.00 2.29 12,398,100 But it was a diff erent story in Europe fretted about oil’s ongoing price tra- kyo and Sydney. Rolls-Royce Holdings Plc 540.50 -0.46 3,820,375 Nippon Steel & Sumitomo Meta 2,171.00 2.04 3,746,000 and on Wall Street, where shares fell vails. There will be close scrutiny this Rio Tinto Plc 1,595.00 -3.54 4,930,533 Suzuki Motor Corp 3,300.00 0.18 1,239,600 week of the Bank of Japan after a recent Relx Plc 1,183.00 -0.25 1,748,285 back overall as long-battered oil left “Oil remains the adjustment varia- Nippon Telegraph & Telephone 4,723.00 2.41 3,993,100 Reckitt Benckiser Group Plc 6,112.00 1.07 827,076 behind a two-day streak of gains on ble for the market,” said Renaud Murail report said policymakers were con- Ajinomoto Co Inc 2,583.50 2.34 1,494,000 Randgold Resources Ltd 4,580.00 0.55 445,245 excess supply worries. of Barclays Bourse in Paris. sidering ramping up its already vast Mitsui Fudosan Co Ltd 2,592.50 -0.54 5,793,000 Prudential Plc 1,298.00 -2.04 3,816,798 Facing claims of a worsening eco- “It is the hot topic which betrays in- stimulus programme to avert a defl a- Ono Pharmaceutical Co Ltd 18,950.00 1.39 641,200 Provident Financial Plc 2,905.00 0.38 154,778 Daikin Industries Ltd 7,736.00 0.35 2,169,400 nomic outlook, Frankfurt’s DAX 30 vestor anxiety,” said Murail, warning tion threat exacerbated by plunging oil Persimmon Plc 1,940.00 1.52 345,830 Bank Of Yokohama Ltd/The 645.60 0.47 3,301,000 index ended the session down 0.3%, the low prices put pressure on produc- prices. Pearson Plc 753.00 -0.59 2,733,068 Toray Industries Inc 1,037.50 0.97 4,637,000 banks leading the losers. er states while fuelling fears of the state That came a day after the head of the Old Mutual Plc 154.10 -1.47 6,160,737 Astellas Pharma Inc 1,600.50 0.22 5,959,800 Next Plc 6,785.00 -0.37 311,661 Dampening sentiment was data of global growth. European Central Bank, Mario Draghi, Bridgestone Corp 4,105.00 0.49 3,400,600 National Grid Plc 942.50 0.06 6,200,591 which revealed the outlook for the US stocks opened lower as oil prices said he would consider further easing Sony Corp 2,538.00 0.38 12,263,100 Mondi Plc 1,187.00 -2.86 986,139 German economy clouded over sig- fell to start a week with a Federal Re- of the eurozone’s monetary policy. Hoya Corp 4,634.00 1.49 1,773,800 Merlin Entertainment 411.50 0.61 430,655 nifi cantly in January as business con- serve policy meeting and earnings from There is also increasing speculation Sumitomo Mitsui Trust Holdin 397.70 1.30 24,785,000 Marks & Spencer Group Plc 415.60 -0.72 3,719,498 Japan Tobacco Inc 4,340.00 7.40 10,151,000 fi dence fell to its lowest level in 11 the likes of Apple and Boeing ahead. that the Fed will delay another interest London Stock Exchange Group 2,459.00 -0.12 431,651 Osaka Gas Co Ltd 427.70 1.06 7,115,000 months. Two hours into trade, the Dow Jones rate rise for now, having increased the Lloyds Banking Group Plc 63.29 -5.34 121,497,710 Sumitomo Electric Industries 1,505.50 -0.26 3,402,400 The Ifo institute’s closely-watched Industrial Average was at 16,011.36, cost of borrowing in December for the Legal & General Group Plc 233.80 -1.76 6,199,646 Daiwa Securities Group Inc 693.80 1.02 7,596,000 Land Securities Group Plc 1,090.00 -0.27 1,230,729 business climate index fell by a steep- down 0.5%, with the broad-based S&P fi rst time in a decade. Softbank Group Corp 5,019.00 2.37 13,820,100 Kingfisher Plc 322.30 -6.58 14,124,621 Mizuho Financial Group Inc 209.30 0.53 174,313,500 Johnson Matthey Plc 2,430.00 -0.69 304,555 Nomura Holdings Inc 613.20 1.54 17,689,100 Itv Plc 262.20 0.00 3,094,763 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,419.00 2.46 3,479,000 Intu Properties Plc 293.00 -0.41 960,400 Fuji Heavy Industries Ltd 4,438.00 0.29 4,427,000 Intl Consolidated Airline-Di 561.00 0.36 4,531,544 Ntt Docomo Inc 2,356.00 1.22 7,459,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intertek Group Plc 2,775.00 0.00 199,176 Sumitomo Realty & Developmen 2,969.00 -3.07 5,451,000 Intercontinental Hotels Grou 2,275.00 -0.66 397,548 Aluminum Corp Of China Ltd-H 2.37 2.16 9,402,748 Hong Kong & China Gas 13.42 -0.74 13,329,765 Sumitomo Metal Mining Co Ltd 1,233.00 1.73 4,555,000 Inmarsat Plc 1,069.00 -0.37 713,943 Bank Of East Asia 22.80 1.11 2,727,010 Hong Kong Exchanges & Clear 168.90 1.69 7,651,408 Orix Corp 1,575.00 3.31 13,084,300 Imperial Tobacco Group Plc 3,565.00 0.24 864,905 Bank Of China Ltd-H 3.02 0.00 301,639,066 Hsbc Holdings Plc 53.60 1.42 23,811,323 Asahi Group Holdings Ltd 3,526.00 1.70 1,285,600 Hsbc Holdings Plc 471.65 -1.65 21,094,072 Bank Of Communications Co-H 4.64 0.43 24,021,034 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 58,650.00 2.73 226,500 Hikma Pharmaceuticals Plc 1,995.00 0.45 112,751 Belle International Holdings 5.12 -0.19 9,003,692 Ind & Comm Bk Of China-H 3.95 0.77 226,251,210 Nidec Corp 7,947.00 0.19 2,377,200 Hargreaves Lansdown Plc 1,309.00 -0.91 602,699 Boc Hong Kong Holdings Ltd 20.55 1.99 13,175,868 Li & Fung Ltd 4.45 0.91 17,009,669 Isuzu Motors Ltd 1,162.00 0.82 2,915,500 Hammerson Plc 569.50 0.00 1,306,596 Cathay Pacific Airways 12.40 0.16 3,297,679 Mtr Corp 35.00 1.16 3,983,275 Unicharm Corp 2,228.00 3.32 2,630,700 Glencore Plc 80.00 1.81 58,039,745 Ck Hutchison Holdings Ltd 94.20 -0.37 5,897,691 New World Development 6.36 0.16 16,596,664 Shin-Etsu Chemical Co Ltd 6,005.00 1.25 1,627,900 Glaxosmithkline Plc 1,399.50 0.57 8,177,376 China Coal Energy Co-H 2.63 0.77 10,539,000 Petrochina Co Ltd-H 4.64 2.88 134,119,083 Smc Corp 27,415.00 1.46 297,800 Gkn Plc 284.00 -3.01 3,412,565 China Construction Bank-H 4.61 0.88 227,708,588 Ping An Insurance Group Co-H 35.15 1.30 27,927,965 Mitsubishi Corp 1,866.00 2.05 5,654,800 Fresnillo Plc 653.50 -1.21 913,874 China Life Insurance Co-H 19.32 1.26 74,269,817 Power Assets Holdings Ltd 68.25 1.26 3,316,288 Nintendo Co Ltd 15,965.00 0.19 798,100 Experian Plc 1,154.00 0.26 1,493,749 China Merchants Hldgs Intl 20.80 -0.24 3,053,162 Sino Land Co 9.54 -0.83 8,927,216 Eisai Co Ltd 7,162.00 0.86 819,400 Easyjet Plc 1,623.00 -1.04 864,411 China Mobile Ltd 83.75 1.33 13,767,951 Sun Hung Kai Properties 82.80 1.04 5,925,893 Sumitomo Corp 1,137.00 1.97 4,779,500 Dixons Carphone Plc 467.00 0.45 2,469,941 China Overseas Land & Invest 21.45 -0.92 19,937,203 Swire Pacific Ltd - Cl A 72.80 1.32 985,728 Canon Inc 3,328.00 0.54 3,675,200 Direct Line Insurance Group 369.00 0.76 2,498,360 China Petroleum & Chemical-H 4.29 3.13 138,284,870 Tencent Holdings Ltd 144.30 3.81 31,154,604 Japan Airlines Co Ltd 4,289.00 -0.39 3,760,200 Diageo Plc 1,831.50 -1.40 3,470,569 China Resources Beer Holdin 12.30 -6.39 19,623,571 Wharf Holdings Ltd 36.35 0.28 3,291,252 Dcc Plc 5,075.00 0.79 211,761 China Resources Land Ltd 18.06 0.44 12,635,430 China Resources Power Holdin 12.96 2.05 4,953,181 Crh Plc 1,837.00 -0.38 563,639 SENSEX Compass Group Plc 1,118.00 0.18 1,417,122 China Shenhua Energy Co-H 11.24 -1.40 23,050,293 GCC INDICES Coca-Cola Hbc Ag-Di 1,376.00 0.36 270,632 China Unicom Hong Kong Ltd 8.31 1.96 30,344,308 Centrica Plc 205.30 -0.92 7,195,926 Company Name Lt Price % Chg Volume Citic Ltd 10.84 -0.55 9,865,000 Indices Lt Price Change Carnival Plc 3,589.00 -0.99 450,632 Clp Holdings Ltd 63.15 -0.08 2,339,808 Doha Securities Market Zee Entertainment Enterprise 391.25 -1.05 1,805,119 8,848.86 -132.75 Capita Plc 1,160.00 -0.17 670,902 Cnooc Ltd 7.27 4.76 143,100,218 Saudi Tadawul Yes Bank Ltd 677.50 -0.95 2,139,306 5,610.45 -1.20 Burberry Group Plc 1,172.00 -0.76 1,458,512 Cosco Pacific Ltd 8.38 2.07 4,748,000 Kuwait Stocks Exchange Wipro Ltd 547.05 -0.55 821,043 4,938.22 -36.73 Bunzl Plc 1,798.00 -0.11 202,859 Esprit Holdings Ltd 8.22 6.89 10,424,704 Bahrain Stock Exchage Vedanta Ltd 64.40 -0.46 20,469,679 1,150.48 -7.55 Bt Group Plc 469.00 -3.75 16,555,949 Fih Mobile Ltd 2.89 5.86 8,721,351 Oman Stock Market Ultratech Cement Ltd 2,750.45 1.37 169,566 4,965.81 +24.06 British Land Co Plc 732.00 0.21 2,956,304 Hang Lung Properties Ltd 14.68 0.27 4,877,115 Abudhabi Stock Market Tech Mahindra Ltd 514.55 0.06 748,076 3,814.85 -24.20 British American Tobacco Plc 3,632.50 0.19 1,871,037 Hang Seng Bank Ltd 125.60 2.20 3,649,679 Dubai Financial Market Tata Steel Ltd 254.90 2.87 6,409,732 2,703.90 -53.18 Bp Plc 347.55 -1.46 38,878,073 Henderson Land Development 38.75 0.78 3,226,215 Tata Power Co Ltd 61.35 -0.65 2,767,547 Bhp Billiton Plc 632.60 -2.51 10,107,029 Tata Motors Ltd 332.60 -2.03 7,249,959 Bg Group Plc 975.40 -0.49 12,598,836 Tata Consultancy Svcs Ltd 2,304.65 0.39 732,252 Berkeley Group Holdings 3,530.00 1.88 322,378 Sun Pharmaceutical Indus 807.25 2.29 3,124,522 Barratt Developments Plc 577.00 0.79 1,601,047 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 182.95 -0.89 19,234,755 Barclays Plc 181.80 -4.69 31,014,649 Reliance Industries Ltd 1,003.95 -0.02 3,270,524 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Bae Systems Plc 494.40 0.35 3,819,381 Punjab National Bank 91.85 -0.70 5,965,713 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Babcock Intl Group Plc 918.00 -1.66 607,990 Power Grid Corp Of India Ltd 133.00 -0.08 5,228,631 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Aviva Plc 461.60 -2.20 4,870,946 Oil & Natural Gas Corp Ltd 219.65 1.57 3,773,798 this data.” Astrazeneca Plc 4,428.50 1.56 1,459,246 Ntpc Ltd 137.95 -0.14 2,851,875 Associated British Foods Plc 3,004.00 0.30 315,158 Maruti Suzuki India Ltd 4,081.35 -0.57 651,714 Ashtead Group Plc 971.50 -1.87 1,625,950 Mahindra & Mahindra Ltd 1,178.30 -1.72 864,860 Arm Holdings Plc 1,007.00 1.16 3,328,795 Lupin Ltd 1,699.05 -1.29 496,045 CURRENCIES Antofagasta Plc 361.00 -3.01 2,906,561 Larsen & Toubro Ltd 1,114.15 -2.46 1,907,894 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Anglo American Plc 225.85 -0.37 11,579,757 DINAR DINAR Kotak Mahindra Bank Ltd 681.00 -0.30 742,422 Admiral Group Plc 1,692.00 0.95 392,763 Itc Ltd 309.40 0.21 6,500,837 Aberdeen Asset Mgmt Plc 224.30 -3.36 2,808,684 Infosys Ltd 1,137.65 0.12 2,372,588 3I Group Plc 433.40 -0.60 1,319,465 Indusind Bank Ltd 907.20 1.02 699,977 #N/A! 0.00 0.00 - Idea Cellular Ltd 106.95 0.09 6,649,703 Icici Bank Ltd 236.05 1.42 16,399,103 TOKYO Housing Development Finance 1,174.60 1.39 2,543,093 Hindustan Unilever Ltd 783.30 1.53 1,081,375 Hindalco Industries Ltd 72.00 -0.48 4,706,096 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 2,525.20 -2.56 252,217 East Japan Railway Co 10,170.00 0.59 1,603,400 Hdfc Bank Limited 1,041.15 1.05 2,671,147 Itochu Corp 1,321.50 3.16 6,931,700 Hcl Technologies Ltd 838.70 -0.07 1,469,478 Fujifilm Holdings Corp 4,592.00 -0.04 2,342,700 Grasim Industries Ltd 3,444.75 -0.07 60,363 Yamato Holdings Co Ltd 2,363.50 1.11 1,460,600 Gail India Ltd 356.70 -2.79 2,168,059 Chubu Electric Power Co Inc 1,485.50 1.36 1,734,900 Dr. Reddy’s Laboratories 2,903.25 0.73 207,290 Mitsubishi Estate Co Ltd 2,182.00 0.97 7,128,000 Coal India Ltd 304.90 1.82 3,413,002 Mitsubishi Heavy Industries 458.90 0.57 17,498,000 Cipla Ltd 580.60 -0.22 1,250,295 Toshiba Corp 209.20 -5.72 68,122,000 Cairn India Ltd 118.95 5.41 10,554,900 Shiseido Co Ltd 2,276.50 1.34 2,665,800 Bosch Ltd 17,485.85 1.05 8,958 Shionogi & Co Ltd 5,063.00 1.75 1,167,800 Bharti Airtel Ltd 297.50 -0.40 3,520,101 Tokyo Gas Co Ltd 520.10 0.27 7,760,000 Bharat Petroleum Corp Ltd 877.90 -0.61 1,030,678 Tokyo Electron Ltd 7,063.00 0.01 965,000 Bharat Heavy Electricals 145.25 -1.43 3,396,027 Panasonic Corp 1,122.00 0.99 9,101,100 Bank Of Baroda 129.50 -0.54 6,345,608 Fujitsu Ltd 525.70 -0.28 9,456,000 Bajaj Auto Ltd 2,327.30 0.36 222,395 Central Japan Railway Co 21,185.00 3.59 665,400 Axis Bank Ltd 420.85 -0.78 11,033,945 T&D Holdings Inc 1,398.50 0.36 2,140,700 Asian Paints Ltd 878.60 0.99 1,855,923 Toyota Motor Corp 6,824.00 0.03 11,073,400 Ambuja Cements Ltd 196.95 2.05 1,175,337 Kddi Corp 2,829.50 2.18 5,269,400 Adani Ports And Special Econ 218.40 -1.51 1,968,081 Nitto Denko Corp 7,288.00 -1.22 1,766,700 Acc Ltd 1,245.00 0.32 134,573 Gulf Times 14 Tuesday, January 26, 2016 BUSINESS ‘Deutsche Bank to cut 2015 bonuses after record loss’

Reuters individual bonuses in March, they have bankers, would be aff ected. must repair a reputation damaged by of about €6.7bn ($7.26bn), sending The sources said, as lower bonuses Frankfurt already been told that payout pots for Deutsche Bank declined to comment. misconduct. its shares down 10% and renewing reduce the attractiveness of a bank individual divisions will shrink by at Over the last five years, the lender has When he laid out the lender’s new analysts’ concerns that it might as an employer, Deutsche Bank was least 25 to 30%, they added. left compensation largely unchanged strategy in October and announced now need to raise more capital to considering paying top performers Deutsche Bank is sharply cutting 2015 “For staff , 2015 will be very likely one of and usually paid out 38.5 cents to 9,000 job cuts, he also said bonuses strengthen its finances. some extra money to keep them from bonuses as it expects a record loss for the worst years ever,” a Deutsche Bank 40 cents to staff for every euro in would be cut as staff needed “to share Deutsche Bank has announced in the jumping ship. the year due to writedowns, litigation manager, who declined to be named, revenues. something of the burden” of the losses. past that it plans to raise the fixed Deutsche Bank has recently seen charges, restructuring costs and said. On his first day as chief executive And late in November, Cryan publicly part of salaries while future bonus some senior investment bankers leave. tough trading conditions, three people Another person familiar with the of Germany’s largest bank on July 1, said that bankers in general were still payments would depend not only on Among others, the European vice familiar with the matter said. matter said all employees paid above John Cryan warned employees not to paid too much. employees’ individual performance chairman of corporate and investment While employees of Germany’s largest union-negotiated collective wage expect only “sweetness and light in Last week, Deutsche Bank said it but also on the bank’s overall banking, Marc Pandraud, left for a job lender will only be notified about their agreements, such as investment the coming months”, adding that they expected to report a 2015 net loss performance. at JP Morgan.

Workers Russia allots $1.7bn for real dismiss VW chief’s output economy in ‘anti-crisis plan’ goal as Reuters Moscow ‘unrealistic’ he Russian government has set aside 135bn roubles ($1.7bn) to Bloomberg Thelp the real economy in a draft Frankfurt anti-crisis plan, two senior offi cials said, and may use a separate 340bn rouble cushion to dampen social dis- olkswagen AG’s infl uen- content, according to a third source. tial works council rejected Battered by low oil prices, Western Va proposal to improve sanctions and a falling rouble, Russia productivity by 10% as “unre- is torn between the need to support alistic,” setting up a showdown its shrinking economy and its desire to over cost cuts at the scandal-hit preserve funds to help it navigate one of carmaker. its worst downturns since Vladimir Pu- Herbert Diess, who joined tin came to power. Volkswagen last year to head Two senior offi cials told Reuters on its namesake brand, is push- condition of anonymity that an anti- ing for effi ciency gains as part crisis plan had been drawn up which of an overhaul at the carmaker’s earmarked 135bn roubles to help parts largest unit. His 12-point plan, of the real economy. The funds were which includes a call for cultural drawn from unspent budget money change and a “New Volkswa- from 2015, they said. gen,” has ruffl ed feathers among The railway and agricultural ma- labour leaders, who blame man- chinery industries and the consumer agement for the current crisis. goods manufacturing and construc- “We haven’t agreed to it, and tion sectors would receive some of the that’s because we consider the funds, one of the sources said. Russia’s targets unrealistic,” Bernd Oster- car industry has already been promised loh, Volkswagen’s top labour rep- 50bn of the 135bn roubles, the other resentative and a member of the source said. company’s supervisory board, said The fi nance ministry, which controls in an interview on a union website. the anti-crisis fund, is against spend- “I don’t like it all, when now others ing all the money, one of the senior of- act as if everything at Volkswagen fi cials said. A fi nal decision on which needs to be reinvented.” sectors will benefi t and by how much An open dispute between had yet to be agreed. Diess and employee representa- Most of the aid will be in the form of tives would complicate eff orts subsidies and state guarantees to share to push through changes. Work- the risk with banks and reduce borrow- ers are unusually powerful at ing costs. Volkswagen. Not only do they “Our revenues have fallen because control half the seats on the su- of recent events on the oil market, not pervisory board, like at other grown, so why should we discuss an in- German companies, but they crease in spending?” one of the sources People walk past a board showing the currency exchange rates of the US dollar and the euro against the rouble in central Moscow on Friday. Battered by low oil prices, also infl uence the government said. The fi nance ministry declined to Western sanctions and a falling rouble, Russia is torn between the need to support its shrinking economy and its desire to preserve funds to help it navigate one of its of Lower Saxony, the carmaker’s comment. worst downturns since Vladimir Putin came to power. second-largest shareholder, be- Parts of Russian industry have strug- cause of the size of Volkswagen’s gled to get bank loans because the The likelihood of that happening was thanks to a moratorium on transfer- ously told Reuters that the 340bn rou- Russia’s banking system received workforce in its home state. banking sector itself is not able to ac- “very low” however, the source said. ring money to non-state pension funds bles may be used later this year to in- around 1tn roubles in support in late Volkswagen’s total costs for cess Western fi nance due to sanctions Several economic advisers to Putin - may in part be used to keep a lid on crease pensions. 2014 and the authorities are currently the scandal have yet to be tallied. related to the Ukraine crisis. say his preference is to preserve the social discontent by supporting em- Russia said it was prepared to spend considering how much money they are The company has so far set aside One of the sources said funding for country’s reserves even if that means ployment and helping off set increases up to 2.3tn roubles on anti-crisis meas- willing to spend on helping state devel- €6.7bn ($7.3bn) so far for repairs the anti-crisis package could, if nec- economic growth suff ers. The economy in drug prices, one of the offi cials said. ures in 2015. That included state guar- opment bank VEB. to 11mn vehicles with engines essary, be increased thanks to 340bn is expected to shrink by up to 1% this Parliamentary elections are due to antees and support for the auto indus- Sources familiar with those discus- rigged to pass emissions tests, roubles in funds accrued from freezing year after contracting by 3.9% in 2015. be held in September and a presidential try and other sectors. It did not enact sions have told Reuters the amount will but it also faces hundreds of law- pension transfers. The 340bn roubles - accumulated election in 2018. Sources have previ- all the measures it envisaged. be less than initially planned. suits and fi nes from regulators. Davos rues power vacuum with US divided, China struggling

Bloomberg “We need stronger leaders who are Hermitage Capital. Such a populist Davos, Switzerland able to give us a stronger vision for push is already underway in the where we are going,” Benioff said. US, where President Barack Obama China topped many attendees’ list is increasingly a lame duck ahead A polarised US presidential race; of concerns. The world’s second- of November’s election. Property question marks over China’s economic largest economy is slowing as it magnate Donald Trump is topping the management; and a once-dominant rebalances from investment and Republican polls, while self-declared German chancellor suddenly under exports to consumption and services, socialist Bernie Sanders gains ground threat. undermining demand for oil and a on establishment favourite Hillary Those were the flash points that host of other commodities. Diff iculty Clinton in the Democratic field. dominated last week’s annual gathering propping up the yuan and a botched No matter who wins the White House, of the World Economic Forum as eff ort to do the same for stocks have business people “aren’t particularly executives, investors and policy makers fanned criticism the government is optimistic” he or she will break a fretted about the lack of leadership in losing control of its economy. deadlock in government, said Cathy a world beset by multiple crises. With Also to be navigated: The US Federal Engelbert, the CEO of consulting firm the global economy already slowing Reserve’s long-awaited shift from Deloitte. and financial markets whipsawing, the the near-zero interest rates that have Europe was also a focus of anxiety as risk is that an otherwise manageable fuelled the world economy since pillars of the region’s post-World War set of challenges could cascade out 2008, recessions in once-booming II start to wobble. The UK is nearing of control without a firmer hand from emerging economies like Russia and a referendum on its membership in governments. Brazil, and still-anaemic growth in the European Union that pollsters “There are too many moving parts, Europe. Underscoring the scale of the believe will be close. Prime Minister jittery parts, and those parts don’t challenge, the International Monetary David Cameron is yet to declare an seem to talk particularly well with Fund last week cut its 2016 global off icial position on the vote, even each other,” Ton Buechner, the chief growth forecast for the third time in as executives from companies like Sun shines on a WEF sign inside the entrance to the Congress Center during the World Economic Forum (WEF) in Davos, executive off icer of Dutch industrial less than a year, to 3.4% from 3.6% in Siemens AG and BAE Plc have urged Switzerland on Friday. With the global economy already slowing and financial markets whipsawing, the risk is that an group AkzoNobel NV, said in an October. Britain to stay put. otherwise manageable set of challenges could cascade out of control without a firmer hand from governments. interview in Davos. “There’s just a high “These are the shifting tectonics of the Meanwhile, European leaders “have number of simultaneous concerns global economy,” said UK Chancellor of just a few weeks to deliver” solutions “The European Union is in an existential of refugees entering Europe in January The upshot is that Davos delegates will taking place.” the Exchequer George Osborne. “These to the unprecedented flow of refugees crisis” because of migration pressures, is already eclipsing last year’s pace, this week return to their off ices bracing The week began with WEF founder shifts create tremors. The question is from the Middle East as warmer billionaire investor George Soros with arrivals in the first 10 days of 2016 for more turmoil across geopolitics and Klaus Schwab warning that the slump how large will these tremors be.” weather makes travel conditions easier said. “It’s falling apart. And that’s a three times those seen in all of January markets. in commodities could multiply the The worry for those in Davos was that for migrants and refugees, Emmanuel time when you need to have a major 2015. “I hope there is a disconnect between number of refugees seeking asylum the tremors could intensify without Macron, France’s economy minister, initiative, a Marshall Plan.” “The big worry from the point of view markets and the economy, as there in Europe. It ended with Salesforce. stronger leadership from governments. said last week. Europe’s refugee crisis won’t fully end of geopolitics remains not just the often can be,” said Vittorio Grilli, a com Inc CEO Marc Benioff lamenting That, in turn, could roil national politics The crisis has grown so severe as until violence subsides in the Middle Middle East but the Middle East, North JPMorgan Chase & Co executive and “a leadership crisis” in the face of rapid even further. When economies suff er, to prompt speculation that German East - an increasingly dim prospect as Africa and South-East Asia, where a former Italian finance minister. “But technological innovations that may “leaders get desperate for ways to Chancellor Angela Merkel could be world powers struggle to come up with sectarian conflict risks destabilising there are too many unprecedented worsen the economic prospects of the rally or distract their citizens,” said Bill forced from off ice unless she changes a unified position on how to deal with more states,” said Niall Ferguson, a factors for anyone to say with middle class. Browder, the founder of hedge fund tack on her open-door policy. President Bashar al-Assad. The number historian at Harvard University. certainty.” Gulf Times Tuesday, January 26, 2016 15 BUSINESS Pacific trade deal to raise US annual incomes by $131bn

Reuters 11 other Pacific Rim countries found that it assumed no net change in employment “The present analysis does indicate that Many TPP opponents in Congress have Froman said in a statement that the Washington would boost US exports by $357bn annu- directly resulting from the pact — only the benefits of the TPP to the US economy raised concerns about the trade deal’s Peterson study “shows that TPP will ally, and by $1.025tn annually for all TPP shifts in allocations of jobs. will greatly outweigh adjustment costs, eff ects on existing US manufacturing raise wages for American workers, grow countries together. It did show that there would be some and that economy-wide price and employ- plants, particularly in industries that are our economy, and help farmers and busi- The Trans-Pacific Partnership trade deal Annual incomes for the 12 TPP coun- 53,700 US jobs that would “churn” annu- ment consequences will be limited,” vulnerable to low-cost imports, such as nesses export more ‘Made in America’ would raise US incomes by $131bn annu- tries would be $465bn higher after full ally during TPP’s 15-year implementation Peterson said in the report. auto parts, steel and apparel. products.” ally after 2030, and a one-year delay in implementation in 2030 and $492bn period, resulting in job losses in some Republican leaders in the US Congress While the Peterson study estimated The study assumes that implementa- its implementation would cost $77bn in higher for the whole world, Peterson sectors off set by gains in others. have yet to schedule a vote on TPP, which that overall employment in manufactur- tion of TPP would start in 2017. If this were lost income, a think-tank study showed said. It estimates that by 2030, some is viewed as essential to the pact’s suc- ing would continue to grow in the US, TPP delayed by one year to 2018, it would yesterday. The study from the Washington-based, 796,000 jobs will have been added in US cess. Some prominent lawmakers have would reduce that growth rate by one- reduce the present value of the increased The Peterson Institute for International pro-trade economic policy group took export activities due to TPP, with some cautioned against trying to approve it fifth, resulting in 121,000 fewer manufac- US income generated by the trade deal Economics said its analysis of the TPP deal a neutral stance on overall job eff ects, of these shifted from firms facing stiff er before the 2016 US presidential election in turing jobs in 2030 than without the pact. by around $77bn, with a possible range of reached in October between the US and however, using a forecasting model that import competition. November. US Trade Representative Michael $59bn to $115bn.

Top Twitter Apple’s growth seen slowing executives to leave company as iPhone demand wanes Reuters San Francisco

Bloomberg San Francisco our senior Twitter executives are leav- ing the media company, CEO Jack Dor- Fsey tweeted late Sunday night, the big- pple’s shares have taken a gest leadership changes since Dorsey returned beating, falling 11% since the as chief executive as he struggles to revive the Alast earnings report in Octo- company’s growth. ber on concerns that iPhone sales Media head Katie Jacobs Stanton, product may have suddenly dropped off . head Kevin Weil, the head of the engineer- Results due today will give inves- ing division, Alex Roetter, and HR head Brian tors a closer look at whether that “Skip” Schipper will all leave the company, he slump was justifi ed—or a long- said. awaited signal that the stock is Addressing what he called inaccurate press poised for a rally. rumours, Dorsey praised the four executives For a company that boosted sales and said he was sad to announce their depar- 28% to $233.7bn in its latest fi scal tures. year, the stock slide is perplexing. Twitter’s stock has fallen nearly 50% since While that might make sense given Dorsey’s return last year and is now trading the drop in global equity prices (on below its IPO price amid concern the company concerns that falling oil prices and a has failed to signifi cantly boost its user base weak Chinese economy will put the despite a quicker pace of product rollouts under brakes on global economic growth), Dorsey. there are some factors fuelling Apple On Sunday night Jason Toff , who heads Twit- angst. ter’s video streaming service, Vine, tweeted Apple is becoming more reliant on that he was also leaving Twitter to join Google the iPhone for growth, even though to work on virtual reality. Dorsey’s tweet did not the lineup was expanded last year mention him. to include the Apple Watch, a new In an earnings conference call in October, Apple TV and Apple Music. Yet the Dorsey spoke about “hiring and investing in iPhone is still by far the company’s talent” and the need for “bold rethinking.” most important product and biggest Twitter may announce other executive money maker. The smartphone ac- changes, including the recruitment of a new counted for 66% of Apple’s revenue chief marketing offi cer, later yesterday, accord- last year, up from 50% three years ing to a source familiar with the matter. The ago. company will announce two new board mem- Given Apple’s dependence on the bers soon, the person added. iPhone, any hint that sales might Dorsey tweeted that chief operating offi cer slow—especially in China—spooks Adam Bain will take on additional responsibili- investors. ties as a result of the departures, including rev- There have been some signs sug- enue-related product teams and the HR team. gesting that iPhone sales may be Chief technical offi cer Adam Messinger will slowing. According to several ana- handle the engineering team, he said. lysts, Apple has cut orders to its Weil, Stanton, Schipper and Roetter are suppliers for phone components, in- among the highest-level departures in recent dicating the Cupertino, California- months, but several executives have left Twitter based company may not sell as many since co-founder Dorsey stepped in as interim handsets in early 2016 as originally CEO in July. He has since been named Twitter anticipated. CEO. Cirrus Logic, a maker of audio Dorsey, who is also CEO of fi nancial services components that gets more than technology company Square, has yet to lay out 60% of its revenue from Apple, a detailed plan of what he wants Twitter to do warned shareholders on January 7 diff erently. Dorsey plans a retreat with Twitter that its results will fall short of fore- executives this week, the source said. casts because of weak demand for projections. Meanwhile, researcher ers is whether the iPhone production jecting, on average, a sales decline Gene Munster, an analyst at Piper Weil has been at Twitter since 2009, al- mobile products. IDC predicted in December that drop is any diff erent from years past. of 4% to $55.7bn, according to data Jaff ray Cos., said the shares could though he has only served as its product head Adding to the concern is a broad- 2016 smartphone growth will dip Apple’s sales always fall precipitous- compiled by Bloomberg. A steeper rise more than 50% heading into the for about a year. He has often served as a face er global slowdown. Samsung below 10%—the fi rst time ever be- ly after the holiday shopping quarter drop will fuel more concern. For release of the iPhone 7 in September. of the company, speaking at conferences and Electronics Co, the world’s largest low that threshold. By 2019, ship- as customers begin waiting for new Apple’s fi scal fi rst quarter, which The 43 analysts tracked by Bloomb- hinting at new developments on the site, such maker of smartphones and a manu- ments are projected to decelerate products, which are typically re- ended in December, analysts pre- erg are predicting, on average, for as a character count that would exceed the cur- facturer of displays and memory further, with sales seen rising just leased around September. dict profi t $3.23 a share and revenue Apple to be at $141 within 12 months rent 140-character limit. chips that go in other companies’ 4.7% in 2019. IPhone sales will also That puts the focus squarely on of $76.6bn. from the current $100. Twitter has shuffl ed through three product devices, reported earnings on Janu- slow, according to IDC. Apple’s outlook for the fi rst three Still, some have said the dip in Ap- That probably guarantees — either heads since 2014, and Dorsey has played an in- ary 8 that fell short of analysts’ The question for Apple stakehold- months of 2016. Analysts are pro- ple’s stock is a buying opportunity. way — a wild ride. creasingly large role in product development.

CORPORATE RESULT Petrobras rescue Halliburton profit better-than-expected on cost cuts could cost Brazil Halliburton Co, the world’s No 2 oilfield services provider, reported a better-than- expected quarterly adjusted profit as deep $21bn: Citigroup cost cuts helped off set the impact of a drop in drilling activity. Halliburton, like rival Schlumberger, said Bloomberg 2016 would be another challenging year for Sao Paulo the industry. Several oil and gas producers have scaled back drilling and slashed capital spending ailing-out state-controlled oil producer Pe- in response to a more than 70% fall in oil troleo Brasileiro could cost the government prices since June 2014. Bas much as $21bn, according to research from Excluding a $192mn impairment charge Citigroup. and costs related to its pending acquisition That would be the amount necessary to plug the of Baker Hughes, Halliburton earned 31¢ company’s cash hole and fi x the capital structure per share, higher than analysts’ average on a sustainable basis were oil to fall to $20 for 12 estimate of 24¢, according to Thomson months, Citigroup credit analysts including Eric Ol- Reuters I/B/E/S. lom wrote in a report last week. The company, with Operating margins in the company’s North $127bn of bonds and loans, could see its ratio of net America operations, which account for debt to earnings before items rise to what Citi called more than half of Halliburton’s revenue, im- an “unsustainable level” of 6.5 times. proved 1.6 percentage points in the quarter Petrobras, as the company is known, slashed its ended December 31. 2015-2019 investment plan by 24% last week to cope Chief executive Dave Lesar said the com- with the collapse of oil prices amid a sprawling cor- pany, which is awaiting regulatory approval ruption probe at the state-owned oil producer that’s for the Baker Hughes deal, was focused on spread to some of the country’s biggest businesses pending regulatory reviews and divesti- and highest-ranking politicians. The Rio de Janei- tures required to alley competition-related ro-based company is rated junk by the three major concerns. credit rating companies. Total revenue fell 42% to $5.08bn, including “The market is correct to be concerned regarding a 57% drop in North American revenue, the potential drain on sovereign credit metrics if na- mainly due to weak drilling activity and tions are required to support their oil and gas quasi- pricing. sovereigns under a $20 scenario,” the analysts wrote. The net loss attributable to the company “Our analysis shows most of the direct impact was $28mn, or 3¢ per share, in the quarter, of such support is mainly limited to Latin America, compared with a profit of $901mn, or $1.06 specifi cally Brazil, Colombia, and Mexico, but only per share, a year earlier. in Brazil is the amount signifi cant.” Tuesday, January 26, 2016 GULF TIMES BUSINESS

Qatar Cinema reports $380bn earmarked for oil and gas 16% surge in profit to QR14.33mn in 2015 projects removed globally: al-Sada Higher operating income and lower costs helped Qatar Cinema and Film Distribution Company report a 16% surge in net profit to QR14.33mn in 2015. By Denise Marray The acceleration in demand He continued: “We were The company has recommended 15% cash dividend and 10% Gulf Times Correspondent he said “will help balance the then able to join up the dots on bonus stocks for shareholders for 2015. London market, hopefully within a few the value chain — production, Operating income grew 9% to QR14.9mn; of which movies months.” processing and storage facilities contributed QR13.28mn, cafeterias QR0.96mn, films rent Looking at other produc- and also the shipping fl eet and QR0.62mn and advertising QR0.05mn, according to its financial ome $380bn earmarked ers in Angola, Australia and the many terminals which we built statement. With direct costs falling 4% to QR13.89mn, the for spending world-wide US, Qatar, he said, is “in an ex- and own. The full chain would company was able to report a gross profit of QR1.02mn in 2015 Son oil and gas projects up tremely competitive, comfort- have been extremely diffi cult compared with gross loss of QR0.8mn in 2014. to 2020 has been shelved due to able position” because it enjoys under today’s circumstances Dividend income declined 13% to QR2.25mn; gain on sale of a lack of confi dence by inves- ‘First-Mover’ advantage. He had we not been a ‘fi rst-mover’. investments by 16% to QR4.38mn and rental income by 1% to tors caused by the low oil and Qatar, he said, had proved it- QR16.66mn, while net other income grew 7% to QR0.33mn. gas prices. This fact was relayed self to be a reliable supplier all General and administrative expenses fell 18% to QR4.82mn and by HE the Minister of Energy Gulf Times over the world and especially to finance costs by 8% to QR0.86mn. and Industry, Dr Mohamed bin terminals where Qatar has ma- Total assets were valued at QR167.65mn comprising current Saleh al-Sada, in his speech to Exclusive jority ownership. With regard to assets of QR29.83mn and non-current assets of QR137.82mn. the Middle East and North Af- the South Hook LNG terminal at Total shareholders’ equity stood at QR136.26mn on a capital base of rica Energy conference held at Milford Haven, al-Sada noted QR62.81mn and earnings-per-share was QR2.28 at the end of 2015. Chatham House yesterday. said this was due to the vision of that over half of its capacity has Speaking to Gulf Times on HH the Father Emir, who “went still to be used. “When the UK the side-lines of the confer- full blast in developing LNG at market requires more LNG the ence al-Sada explained: “Some a diffi cult time when there were capacity is available in Qatar and of this money was intended no fi nanciers, no customers and the capacity of the terminal is for additional oil and gas and no partners.” there; I would guess the UK only some of it to maintain the natu- The fact that the decision was uses half of the terminal capac- Qatar’s ‘proactive’ rally declined production. That made to go ahead twenty years ago ity at the moment. Qatar can be money has now been removed against techno-commercial con- a reliable supplier today and to- from projects which were to HE al-Sada sees the possibility of an oil shortage down the road in straints and build the biggest LNG morrow,” he said. be implemented up till 2020. two or three years’ time. terminal means that Qatar today He concluded with a comment public, private Therefore, we expect that the enjoys a pole position in the mar- about the market overall: “It is oil production will not increase He added: “That could lead to dicted increased demand due to ket with low production costs and not a matter of available gas or as it was supposed to because the possibility of an oil shortage the fact that ‘many of the con- proven reliability, he observed. resources or reserves. Now, the sectors key to of the removal of that amount down the road in two or three sumers can see a lot of benefi ts “We are by far the most com- matter is who can produce and of money due to the fact that years’ time. The possibility is to using gas as the price is lower petitive producer of LNG simply deliver competitively, safely and investors can’t see a return on there for another oil price surge and it is an environmentally ac- because we captured the market reliably. I think we have that edge their investments because of to high levels.” ceptable form of fossil fuel — be- and the low cost of develop- and no other country has such a successful MICE low oil and gas prices.” With regard to LNG, he pre- ing the cleanest.” ment,” he said. reliable track record as Qatar.” IHS official says gas least cost option to achieve carbon emission reduction levels industry: Expert

By Denise Marray Times about the role of gas in the global energy markets. trying to change systems as a whole and move to lower car- By Peter Alagos Gulf Times Correspondent He said: “Gas is obviously a lower-carbon fuel than coal. bon solutions, gas has a much greater capacity to substitute Business Reporter London When you think about substituting coal with any other fuel for coal than renewables do in the short term. So, if you can you have to take into account that renewables have a large make gas a base load that then integrates the renewable Carlos Pascual, senior vice-president, Global Energy, degree of intermittency and that when you invest in 100 energy, over the next decade it could become the least cost he proactive partnership International Aff airs, IHS, a former US ambassador and top megawatts of capacity of solar or wind its availability to option to achieve the maximum level of carbon emission between Qatar’s public energy off icial in the US State Department, spoke to Gulf actually generate might only be 25% of that. So if you are reductions. Tand private sectors is a key element that could boost the country’s Meetings, Incen- tives, Conferences, and Events (MICE) industry, a top hospi- tality offi cial has said. To establish itself as a top Doha needs to create a Construction industry sees ‘strongest’ MICE destination in the region, sustainable, successful QOIC 2015 Rotana Hotel Management hospitality platform, says Corporation (Rotana) presi- Kaddouri: PICTURE: Jayaram growth in Qatar in ’15, shows survey dent and CEO Omer Kaddouri said Qatar must rely on both its every segment,” especially the profi t falls 29% public and private sectors to at- leisure industry. he construction industry military/defence/police/security terms of maintaining a work-life tract tourism and MICE-relat- “The leisure segment needs experienced the strongest services (23%) and banking and balance, half of the respondents ed activities to the country. to be driven. Today, Qatar is Tgrowth in Qatar in 2015, a fi nance (21%). in Qatar are/were satisfi ed (50%), “Qatar has everything. It is known to be a predominantly to QR18.34mn recent survey has shown. According to the poll, 62% of with 19% being “completely sat- building itself and has become corporate city. People are com- According to the recent “Top Qatar respondents view the gov- isfi ed”. Just 15% of those surveyed stronger and stronger. But the ing here for business. After Industries in the Middle East ernment as a favourable employ- are/were “completely dissatis- MICE industry is also a business. business, people are coming atar Oman Invest- to QR0.83mn, according to and North Africa” survey, con- er of choice, with 43% perceiving fi ed”. If you want to keep market share, here for conferences. And after ment Company has its fi nancial statement fi led ducted by Bayt.com and YouGov, the government as “extremely A good 61% of respondents in you have to work hard for it. that, people are coming here Qreported a 29% fall with the Qatar Stock Ex- some 33% of Qatar respondents favorable” and only 6% viewing Qatar are satisfi ed with their work “If you want more market for leisure thus, Doha needs to in net profit to QR18.34mn change. believed that the construction it as “extremely unfavourable”. culture, 59% with their working share, you have to go over and create a sustainable, successful in 2015 due to lower net in- Fair value gain on revalua- industry has experienced strong Almost two out of every five hours and 53% with their job se- beyond to fi ll up the convention hospitality platform,” he ex- come from financial invest- tion investment property growth over the last year. Qatar respondents are satisfied curity. In fact, 37% of respondents centres, encourage the setting- plained. ments. plunged 75% to QR1mn; even Respondents in Qatar also rec- with their current/ most recent are/were “somewhat satisfi ed” up of international conferences He added: “Investors are The company has, how- as rental income from invest- ognised banking/fi nance (27%) salary packages (39%), inclusive with their work culture, while here, and to prevent people spending billions of dollars to ever, declared 6% cash divi- ment property rose 9% to and airlines (25%) as indus- of non-monetary benefits, 13% 24% are/were “completely satis- here from taking business away create hospitality platforms. dend, which will have to be QR2.88mn. tries with signifi cant growth. of which are “completely satis- fi ed”. Close to a third (31%) of re- from the country,” Kaddouri As long as there is a strategy in approved by shareholders at Other income also plunged Healthcare/medical services/ fied”. spondents are/were “completely told Gulf Times in an interview. place and the government be- the annual general assem- 62% to QR0.28mn. pharmaceuticals and education/ However, a little more than one satisfi ed” with their working This was echoed by general lieves in all of these platforms bly meeting to be convened General and administra- academia emerged as the indus- in fi ve (21%) of those surveyed are hours, while 15% are/were “com- manager Joseph Coubat during to create occupancy, it would later. tive expenses fell 16% to tries most attractive to women “completely dissatisfi ed” with pletely dissatisfi ed”. Eight percent the recent opening of City Cen- keep investors happy. Investors Net income from fi nancial QR5.67mn and board of di- in Qatar (36% for both), followed their current/ most recent salary claim to be “completely dissatis- tre Rotana Doha. He stressed are also relying on the govern- investments shrank 22% to rectors’ remuneration by 25% closely by hospitality/entertain- package. fi ed” with the job security off ered that Doha “is taking the centre ments where they are pouring QR21.2mn with net income to QR1.2mn. ment/ tourism (31%), it said. Overall, a high percentage of by their industry. stage” and has transformed it- these investments to help them from sale of fi nancial assets Total assets were valued Banking/fi nance (28%) and the current employees or unemployed In terms of training and devel- self into a conference hub for along the way. One cannot work at fair value through profi t at QR343.96mn comprising airline industry (26%) were also professionals looking for a job in opment, 21% of Qatar respond- cultural, sports, and other types without the other.” shrinking 37% to QR8.33mn current assets of QR70.29mn popular choices among women. Qatar are generally satisfi ed with ents claim to be “completely of tourism-related activities. Kaddouri also noted that and there was also unrealised and non-current assets of The government/civil service/ what their industries off er/of- satisfi ed” and 25% “somewhat “These activities are paving Qatar is developing itself into loss of QR0.25mn on fi nan- QR273.67mn. utilities sector emerged as the fered. satisfi ed” with the programmes the road for Qatar to play a key a hub for all types of business cial assets at fair value in 2015 Total equity stood at industry that attracts the highest Close to half of the respond- available to them. role in the meetings, incentives, models. As a hub, he stressed against gains of QR2.24mn in QR331.43mn on a capital proportion of national talent ac- ents in Qatar are/were satisfi ed However, 35% of respective re- conferences, and events scene,” that these business models 2014. base of QR315mn and earn- cording to 41% of Qatar respond- with their career growth (48%), spondents are/were “somewhat Coubat said during the event. need to be sustainable in or- However, dividend income ings-per-share was QR0.582 ents. while 21% are/were “neither dis- or completely dissatisfi ed” with On increasing Qatar’s tourist der to be successful, especially gained 12% to QR12.3mn at the end of December 31, The other attractive indus- satisfi ed, nor satisfi ed” and 12% the training and development arrivals, Kaddouri stressed that after the staging of the FIFA and interest income by 7% 2015. tries for national talent include are “completely dissatisfi ed”. In programs in their companies. it is important to “maximise World Cup in 2022.

BANKING ON KNOWLEDGE The domino effect of interest rate increase

By Salman Gulzar and two cars to surviving with a job. This The real issue China has been facing is Currently though, China’s yuan blues largest global company shows that they change has resulted in a Middle Class the rate hike. After months of Chinese and its depleting demand for oil is are determined to manage this oil crisis meltdown that has seen one in five attempt to manage renminbi, they have creating further glut in the oil market. at all costs. In addition to all structural The Federal Reserve was always wary Americans live under the poverty line. now suspended currency exchange challenges in the industry, the dollar of raising its rates and it was after much While the unemployment has been arrangements with key international banks Riyadh, we have a problem strength which has come around due to contemplation that this step was taken in managed from its peak in 2009, there to control an outflow of foreign With oil breaching its 12-year lows, the the rate hike will see further downward December 2015. The indecisive quarter has been no wage inflation that has come reserve that has already cost the entire Opec and Riyadh face a serious pressure on oil. Riyadh is also evaluating on contemplation was justified and the through in the economy in the last three exchequer $108B. China has imposed a problem of oil recovery which is likely to raising debt, which, when it happens will hesitation well placed, which acted as recoveries due to the qualitative aspects $50,000 limit on individuals per year post take a while. Oil production has seen sap away liquidity from the regional bank a catalyst to wipe out $2.3tn of global of the American workforce. the 3% divergence of market rates be- correction mainly on account of non-Opec market. stocks at the start of this year; the worst very closely and evaluating whether The Fed took a decision to increase tween mainland (onshore) and Hong Kong members reducing production, but the The US, China and Saudi will be key and possible start to 2016. The extreme volatil- they made a mistake to increase rates interest rates owing to strong (Off shore) exchange rates. The clumsy market still has an oversupply in excess of interdependent economies to watch this ity had investors selling their shares in prematurely. Chinese volatility coupled employment data number, ignoring the circuit breakers and equity market crash 3mn barrels a day. Opec, especially Saudi, year and it will be critical that they work panic triggered by steep declines in China with low growth and anemic commodities qualitative aspect and in doing so, have is therefore an eff ect and not a cause of have no signs of curtailing supply as together as the global economies battles where the markets had to shut down prices will need a dynamic local currency created a strong US Dollar that has Chinese problems, which came around due Riyadh continue to pump 10mn barrels of this latest crisis. twice within a week due to misplaced strategy to kick-start China, while low oil weakened other currencies and put to a number of technical factors and has oil a day in a strategy to preserve market The US must review it’s rate hike given circuit breakers, a market monitoring prices will test the Middle East’s resolve to downward pressure on commodities little correlation with the Chinese economy share and put pressure on rival producers weak GDP, lack of wage inflation and methodology. Very soon, this ‘tsunami’ fix regional political tensions and manage thereby further curtailing inflation that is as a whole. With time the that have a higher cost of production. quality of non-farm payroll. This will had reached the shores of Japan, Europe the imminent liquidity crunch. a counterintuitive outcome to the stated regulators in China will manage these With this steady stream of oil facilitate Chinese equity market & it’s and the United States where investors objective of this rate hike. matters better. production continuing, and Iran bringing currency so that it can start growing continued to withdraw from equities. The American dream redefined With a weakening currency and their 400,000 barrels into the market, the again to facilitate an oil recovery. Till than When the dust settled on this free-fall the The labour market in America has The dragon out of fire commodity prices, the global fear for world will soon see a shortage of storage Saudi has to evaluate production cuts and US-based S&P 500 had lost $864bn in transformed from a union-based private China had been working on mecha- China is that of deflation, a scenario that space for oil in the next few months. With rationalise spending. The dominoes are market capitalisation. enterprise to an automated and nisms that would reform and ensure that has been present in Japan for over a this oil prices will see further downward falling and the interdependent of these Looking closely at the largest global dynamic market place. The new worker there is greater flexibility in the renminbi. decade and half. China would not like to pressure. three economies will be critical this year. economies and the largest regional is no longer a market maker but a market Over the months these arrangements get into a situation where the population With subsidies being lifted across GCC, economy, we are going to witness a taker fearing his role to be automated or have increasingly looked as if they were saves instead of spends and where they are headed in the right direction to Salman Gulzar is head of corporate perfect storm today; In the US, the Fed moved out of the country. The American an opportunistic response to capital corporate ability to raise prices and manage this challenge. Riyadh placing banking at Mashreq Qatar and an expert will be looking at economic indicators dream has thus transformed from a house outflow and to weaken the local currency. improve profits is compromised. Aramco on the anvil to partially float the in financial markets.