PHARMA WOLF | Page 5 GROWTH BOOST | Page 14 Unwelcome China signals mirror on more stimulus drugs trade aft er top meet

Tuesday, December 22, 2015 Rabia I 11, 1437 AH SPREADING WINGS: Page 16 Qatar Airways GULF TIMES Cargo announces new route to BUSINESS Dallas/Fort Worth QSE margin trade applies only to 20 stocks

By Santhosh V Perumal 40% of the securities’ market value ment Group, QNB Financial Serv- Business Reporter purchased for its client pursuant to ices, Commercialbank Investment the agreement governing the rela- Services, Ahli Brokerage Company tion between them. and Al Rayan Financial Brokerage. he Qatar Stock Exchange “It will be allowed only in the The customers would have to (QSE), which recently intro- 20 stocks in main Qatar Index,” a open a new MT account with the Tduced margin trading (MT), source in the bourse said. Thus, MT brokerage fi rm, the source said. yesterday said MT will be appli- will be applicable (as of now) only to As per the Qatar Financial Mar- cable only for 20 stocks in its main Aamal Company, Barwa, Commer- ket Authority (QFMA) rules, it is index. cial Bank, Doha Bank, Ezdan, Gulf not permissible to open more than “The aim behind the launch of International Services, Industries one MT account per person at more margin trading is to contribute to Qatar, Masraf Al Rayan, Al Meera, than one fi nancial services com- the development of the stock mar- Mazaya Qatar, Ooredoo, Qatar In- pany. The account is used to deal in ket performance and stimulate surance, Qatar Electricity and Wa- securities traded in the market, and trading and liquidity. It will en- ter, Nakilat, Qatar Islamic Bank, must not be used for subscription hance market liquidity and provide QIIB, Milaha, United Development in new securities’ issuances. new fi nancing channels for inves- Company and Vodafone Qatar. Samer Abu Zaghla of QSE gave tors,” Nasser al-Abdul Ghani, QSE Since periodic revision of the in- a detailed explanation on MT pro- market operations and control di- dex takes place semi-annually, the cedures, controls and requirements rector, told an awareness session on eligible stocks under MT will ac- and explained that the brokers MT service. cordingly change, the sources said. wishing to be licensed as margin MT will allow investors to pur- Asked when MT will start in the lenders can submit their applica- chase securities that are partially market, the source said it depends tions for QFMA’s approval. fi nanced by a loan or credit facility on the readiness of the brokerage Earlier on the sidelines of Eu- made available by a margin lender, fi rms. At present, 11 brokerages are romoney Conference, QSE chief a member licensed to provide such in operations. They are Group Se- executive offi cer Rashid bin Ali services. curities, Dlala Brokerage, Dlala Is- al-Mansoori had said “MT will in- It is understood that Qatar has lamic, Qatar Securities Company, crease liquidity. It is very important Al-Abdul Ghani presents margin trading details before brokerage houses, investors and media. Margin trading will allow investors adopted a 60:40 method wherein Islamic Brokerage, International for investors as they have been ask- to purchase securities that are partially financed by a loan or credit facility made available by a margin lender, a member licensed to a fi nancial services company funds Financial Securities, Gulf Invest- ing for it for some time.” provide such services. Gulf Times 2 Tuesday, December 22, 2015 BUSINESS

Turkish assets hold steady ahead of expected rate hike

Reuters Ankara

Turkish stocks firmed yesterday and the lira moved sideways ahead of a crucial interest rate decision that could help the central bank shake off persist- ent fears about political interfer- ence in monetary policy. The US Federal Reserve’s deci- sion last week to hike rates is widely expected to nudge Tur- key’s central bank into follow- ing suit at its meeting today. It has kept rates on hold for the past nine months despite a plunging lira, and above-target inflation. A rate rise could provide a much-needed boost to the credibility of the bank and its governor, Erdem Basci. Inves- tors worry that the central bank has failed to move due to pressure from President Tayyip Erdogan, who has repeatedly called for rate cuts and equated high rates with “treason”. Concerns about political meddling in policy - as well as security worries - have helped push the lira to a series of Mideast air travel continues record lows. In dollar terms, the blue-chip stock BIST 30 is down by nearly a third this year, making it the third-worst performer among 30 major emerging market indices, according to Thomson to show ‘mixed’ results on Reuters data. “Balance of payments problems and rising inflation mean that Turkey is also likely to hike rates ... despite pressure from the government,” William Jackson, an economist at Capital various routes, says IATA Economics in London, said in a recent note to clients. ir travel on markets connected 2015, third-quarter data from pur- Premium travel, by contrast, was travel - the more price sensitive travel Slower than expected growth in Chi- The lira was at 2.9100 to the dol- to the Middle East continues to chasing managers pointed to further supported by growth in volumes in market - has been supported by lower na and weak trade activity have trans- lar at 1100 GMT, little changed Ashow “mixed” results, IATA’s gains in business conditions across October compared to September, ris- fares over recent months. lated to declines in international air from Friday’s close. latest traffi c monitor shows. the non-oil producing private sectors ing 3.9% year-on-year. At the route-level, during more re- travel growth in the region. The BIST 100 index, the International air travel growth on of the UAE and Saudi Arabia, and this “Since there can be notable volatil- cent months, growth has been sup- “The outlook for international broadest measure of Istanbul Europe-Middle East was up 5.4% in should help sustain solid expansion in ity in the monthly passenger volumes, ported by the ‘within Europe’ market, passenger growth remains mixed stock performance, was 1.44% October, it said. air passenger demand for local carri- looking at a longer period can provide which includes segment traffi c as part because the growth over recent stronger. In contrast, Africa –Middle East ers, it said. a better indication of the trend in air of longer-haul journeys. months has been narrowly based, Fourteen of 16 analysts polled and Middle East –Far East were rela- The IATA report also showed pas- travel,” IATA said. Air travel across the North Atlantic and supported mostly by the ‘with- by Reuters last week said tively weaker, +0.8% and -1.2%, re- senger travel on international markets For 2015 so far, the trend has been has also started to accelerate, up 6.9% in Europe’ and North Atlantic mar- they expected the benchmark spectively. was up 4.5% in October year-on-year, broadly positive in both classes, and, in October, year-on-year, which is a kets. one-week repo rate to rise, with This is likely due to adverse eco- overall. in fact, growth in economy class good sign for yields and revenues. “Weakness in other regions, like most of them predicting a half- nomic and political developments in For economy class travel, passenger travel has been relatively stronger. However, weakness in air travel on Asia, remains a concern and is likely to percentage point move from Asia and Africa rather than any major numbers were up 4.6% but that was Weakness in business confi dence the Within Far East market has been keep international passenger growth today’s 7.5%. downturn in the Middle East. due to weakness in the year-ago period, has dampened demand for business- placing downward pressure on the in- from accelerating beyond current After a decline in the fi rst half of rather than growth over the last month. related air travel, while economy class dustry growth trend. trends,” IATA said. Iraq central bank devalues dinar as oil hurts its income

Reuters Baghdad

raq’s central bank has increased the sale price of US dollars to banks and currency exchange Icompanies by 16 dinars, or 1.37%, as the gov- ernment seeks to compensate a decline in oil rev- enue, a government offi cial and the central bank said. The sale price of the dollar “has been adjusted to 1,182 dinars,” the central bank said in a state- ment yesterday. The previous price was 1,166 dinars for a dollar, Mudher Saleh, a top economic adviser to Prime Minister Haider al-Abadi and former deputy central bank governor, told Reuters. “This is a small adjustment, it’s not a devalua- tion. It will increase government revenue to meet local needs,” said Saleh. A global oversupply of crude oil has pushed prices to below $40 a barrel from more than $100 a barrel in June 2014. The government depends on oil sales for 95% of its revenue. “It may be the fi rst of many steps to reduce the budget defi cit and increase the local income,” said Abdul Rahman Najm, an economics profes- sor at several universities in Baghdad. “As no im- provement in oil prices is expected, there will be more steps to reduce the value of the dinar versus the dollar.” “Iraq needs large revenues to continue the war on Daesh,” he added, using a local derogatory name of Islamic State, the group that seized large swathes of territory in the north and the west of the country. Iraq’s armed forces on Sunday said they are preparing to launch a new off ensive to capture Ramadi, the capital of the western province of Anbar that fell to Islamic State in May. Other cities that also remain under the militants con- trol are Falluja and Mosul, Iraq’s second-largest city. The oil price decline forced the government to cut its spending to 105.8tn dinars in the 2016 budget, compared with a spending forecast of A man changes US dollars to Iraqi dinars at a currency exchange shop in Baghdad yesterday. Iraq’s 119tn dinars in 2015. The budget defi cit next year central bank has increased the sale price of US dollars to banks and currency exchange companies is set at 24tn dinars, about the same as this year’s by 16 dinars, or 1.37%, as the government seeks to compensate a decline in oil revenue, a government 25tn-dinar forecast. off icial and the central bank said. Gulf Times Tuesday, December 22, 2015 3 BUSINESS

‘Iran will need $150bn for oil, gas projects in 2016-21 ’ Jordan to sign $400mn plant deal with Saudi’s ACWA

Bloomberg Amman

State-owned National Electric Power Co will sign a $400mn contract next week with Saudi Arabia-based ACWA Power for construction of a 480-megawatt plant, the secretary general of Jordan’s Ministry of Energy and Mineral Resources said. The new facility will replace Jordan’s oldest plant, the Hussein Thermal Power An Iranian worker walks along the phase 15-16 of the South Pars gas field facilities in the southern Iranian port of Assaluyeh on the shore of the Gulf. Iran will need $150bn investment for oil and Station in the Red Sea port of gas projects from 2016-21, oil ministry’s news agency Shana has reported, citing Saeed Ghavampour, GM of the ministry’s strategic planning. Close to $100bn will be needed from investors and the Aqaba, Ghaleb Maabreh said rest from the government, the report said. Investments are mainly needed in exploration and production and the oil ministry is focusing on natural gas exports to the surrounding region, including in an interview in Amman. It Iraq, Pakistan, the UAE. As much as 200mn cubic metre a day natural gas exports are projected over five years, Bloomberg quoted the report as saying. will be completed by the end of 2019 and run primarily on natural gas as well as gasoline, he said. “Running the plant mostly on gas is a very cost-eff ective solution,” Maabreh said on Sunday. The Hussein thermal station uses heavy fuel and gasoline and has a generating capacity of 198 megawatts, Saudi said to weigh selling according to the plant’s website. Jordan plans to add 600 megawatts of solar and wind power by 2016, Energy Minister Ibrahim Saif said on September 14. The Middle stakes in state-run entities Eastern kingdom awarded Enviromena Power Systems Possible IPOs part of plan to reduce ‘Saudi Arabian budget to and TSK Group a contract to reliance on oil revenue; plan be released on Dec 28’ build a 100 megawatt solar steered by the economic council plant, Haidar Gammaz, a headed by deputy crown prince Saudi Arabia will announce its 2016 ministry spokesman, said budget next Monday, the Saudi-owned on Sunday in a telephone Bloomberg al-Arabiya television channel, which is interview. Riyadh close to the ruling family of the world’s Separately, Jordan awarded top oil exporter, reported yesterday contracts to Athens-based citing unnamed sources. Sunrise Photovoltaic Systems audi offi cials are considering The 2016 budget is being closely and Saudi Oger Ltd to each plans to sell shares in state- watched both inside Saudi Arabia and build a 50 megawatt solar Sowned entities and companies, by world oil markets because it will power plant in the kingdom, according to two people with knowl- shed light on how the kingdom plans according Maabreh said. edge of the discussions, as the kingdom to approach expected low crude prices The agreements will seeks to bolster revenue to counter the next year, with widespread expecta- be signed with the two plunge in oil prices. tions of big spending cuts. companies in the first quarter The government may sell stakes in of 2016 and the projects are ports, railways, utilities and airports, scheduled to be completed in the two people said. State-owned hos- Rather than draw down further on its 18-24 months, Maabreh said in pitals may also be privatized as part foreign-currency reserves, Saudi Ara- an interview in Amman. of Deputy Crown Prince Mohammed bia is expected to cut spending when it The kingdom plans to have bin Salman’s plans to reduce the king- unveils its budget this month. The gov- renewable energy projects dom’s reliance on oil revenue, one per- ernment this year issued bonds for the with total capacity of 1,000 son said. fi rst time since 2007, and has raised fees megawatts by the end of Saudi offi cials weren’t immediately for international air travel passengers. 2018, he said. available for comment. The kingdom’s Economic and De- Haidar Gammaz, spokesman The world’s biggest oil exporter is velopment Aff airs Council, headed by of the Ministry of Energy and trying to tap additional sources of rev- Prince Mohammed, held meetings last Mineral Resources, said in a enue after crude prices declined about week with 350 citizens to discuss plans December 20 interview that 35% this year. The kingdom, which to strengthen the economy and im- Jordan has also awarded the relies on oil for at least 80% of its rev- prove the government’s transparency UAE’s Enviromena Power enue, is on course to post a budget defi - and accountability, Al-Watan newspa- Systems and Spain’s TSK cit equal to 20% of economic output per reported last Thursday. Group a contract to build a this year, according to the International Prince Mohammed is King Salman’s Workers are seen at a railway station in Riyadh that links Riyadh and the port of Dammam (file). The government may sell 100 megawatt solar plant. Monetary Fund. son. stakes in ports, railways, utilities and airports, according to two people with knowledge of the discussions.

Qatar shares edge lower amid corrections

By Santhosh V Perumal Islamic Index by 0.27% to 3,666.06 turned net buyers to the tune of points. QR0.35mn against net profit takers Dubai stocks jump; Saudi Business Reporter Consumer goods stocks shrank of QR3.36mn on December 17. 0.98%, followed by transport Total trade volume was down 9% Mid and large cap equities yester- (0.63%), industrials (0.2%) and to 5.08mn shares, value by 21% to day witnessed corrections, leading banks and financial services QR205.14mn and deals by 16% to the Qatar Stock Exchange to open (0.14%); even as telecom gained 3,241. fl at ahead of state budget the week with a marginal seven 1.45%, insurance (1.13%) and realty There was a 56% plunge in the points fall. (0.55%). insurance sector’s trade volume to Reuters above the year’s low. Gainers outnum- Selling in the consumer goods, Major losers included Gulf Interna- 0.04mn equities, 56% in value to Dubai bered losers 19 to 7 with all blue chips transport, industrials and banking tional Services, Mesaieed Petro- QR2.53mn and 14% in transactions rising after Sunday’s profi t taking sectors masked buying interests in chemical Holding, Barwa, Mazaya to 83. sell-off . Emaar Properties and builder telecom, insurance and real estate Qatar, Vodafone Qatar, Nakilat, The banks and financial services iddle Eastern stock markets Drake & Scull recouped all of Sunday’s stocks that the 20-stock Qatar Index Woqod, Commercial Bank, Doha sector’s trade volume plummeted were mixed yesterday as Du- losses, rising 3.2 and 3.5% respective- lost 0.07% to 9,906 points. Bank and Qatar Islamic Bank; where- 22% to 2.1mn stocks, value by 25% Mbai bounced back from the ly. Both stocks are up over 8% from a Domestic institutions’ buying as Ooredoo, Ezdan, Islamic Holding to QR100.85mn and deals by 35% previous day’s losses while Saudi Ara- week ago. support weakened and local retail Group, Qatari German Company for to 983. bia’s index was almost unchanged as Abu Dhabi heavyweights Etisalat and investors’ net selling strengthened Medical Devices, Widam Food, Dlala The market witnessed a 19% shrink- investors awaited the release of the National Bank of Abu Dhabi jumped in the market, which is down 19.37% and Qatari Investors Group bucked age in the telecom sector’s trade kingdom’s state budget, expected in the 2.9 and 2.5%. Abu Dhabi’s benchmark year-to-date. the trend. volume to 0.51mn shares, 53% in coming days. climbed 0.9% in its fourth session of The buying interests of non-Qatari Domestic institutions’ net buying value to QR11.91mn and 36% in The Saudi index fl uctuated narrowly gains; trading volume was the second individual investors were seen weakened perceptibly to QR17.89mn transactions to 502. before ending down 0.01% at 6,930 heaviest so far in December. On Sun- weakening in the bourse, where compared to QR49.66mn last The real estate sector’s trade vol- points. Trading volume was modest as day, it was the heaviest. overall volumes declined. Thursday. ume shrank 3% to 0.78mn equities many investors were unwilling to trade Egypt’s index rose 0.8%, its sixth The index that tracks Shariah-princi- Local retail investors’ net profit and value by 3% to QR16.25mn, without knowing the size of spending straight gain, with Commercial Inter- pled stocks was, however, seen gain- booking expanded to QR26.55mn while deals grew 45% to 500. cuts expected in the budget. national Bank and Orascom Telecom ing the most in the market, where against QR21.06mn the previous The industrials sector saw a 1% dip However, petrochemical producer carrying the market higher for a second the banking and industrials sectors trading day. in trade volume to 0.98mn stocks Saudi Basic Industries fell 1.7% to 84.75 day. dominated the trading ring as their Non-Qatari individual investors’ and 4% in value to QR56.71mn riyals, heading towards its December CIB, the bourse’s largest bank by stocks accounted for about 61% of net buying shrank to QR1.89mn but on a 6% gain in transactions low of 83.25 riyals. market value, rose 2.6%. The lender is the volumes. compared to QR5.68mn on Decem- to 733. “Current market sentiment is fragile up 4.6% since Thursday’s close after Market capitalisation was up 0.06%, ber 17. However, the consumer goods and people are not willing to rotate into agreeing to sell investment banking or QR32mn, to QR525.41bn with However, non-Qatari institutions’ sector’s trade volume more than sectors that are heavily dependent on subsidiary CI Capital to Orascom Tele- small and micro cap equities gain- net profit booking weakened doubled to 0.48mn equities but government spending or those that are com for 1bn Egyptian pounds ($128mn). ing 1.04% and 1.03%; whereas mid substantially to QR4.66mn against value fell less than 1% to QR12.32mn export-oriented,” said Mohammad al- Orascom Telecom, the most heavily and large caps fell 0.38% and 0.05% QR35.42mn last Thursday. and deals by 1% to 304. Shammasi, head of asset management traded stock, surged 6.7%; it is up 8.5% respectively. The GCC (Gulf Cooperation Council) The market witnessed a 6% jump in at Riyadh-based Derayah Financial. since Thursday’s close. The Total Return Index was down institutions’ net buying soared to the transport sector’s trade volume Dubai’s index rebounded 2.5% to Elsewhere in the Gulf, Kuwait’s index 0.07% to 15,397.45 points, while the QR11.08mn compared to QR4.52mn to 0.18mn equities but on a 15% 3,101 points, gathering momentum climbed 0.8% to 5,614 points; Bahrain’s All Share Index was up 0.02% to the previous trading day. decline in value to QR4.57mn. Trans- A woman walks past the entrance to the Dubai on higher volumes in the fi nal hour index slipped 0.4% to 1,190 points, 2,647.38 points and the Al Rayan The GCC individual investors actions were up 11% to 136. Financial Market. Dubai’s index rebounded 2.5% to of trade as bargain buyers bought on while Oman’s index advanced 0.9% to 3,101 points yesterday. dips. The benchmark is now 250 points 5,404 points. Gulf Times 4 Tuesday, December 22, 2015 BUSINESS Oil investors brace for ‘more volatility’

Bloomberg “What we didn’t anticipate is that Rystad Energy and a further $70bn is at London Opec would have added as much pro- risk next year, it said. duction this year as they’ve done,” The MSCI World Energy Sector In- Bishop said. “Iraq in particular, we were dex, which includes 107 energy com- nvestors should expect more vola- not anticipating their ability to de- panies, has lost more than a quarter of tility in oil markets and energy- bottleneck and therefore raise produc- its value since the start of the year. The Irelated stocks next year, before a tion as successfully as they managed.” MSCI World Index has fallen by 4.3% rebalancing takes place over the next 12 Iraqi oil production hit a record of over that same period. to 24 months, according to a BlackRock 4.4mn bpd in June and currently stands “Volatility in the macro would trans- Inc fund manager. at around 4.3mn barrels. Output has late into volatility in the equities,” “We expect continued volatility as surged by 40% since June 2014, when Bishop said. “When we talk to our in- this rebalancing process plays out,” Islamic State militants started making vestors, we’re saying you need to be Alastair Bishop, a London-based direc- territorial headway in the country. prepared to stomach continued volatil- tor who oversees BlackRock’s $1.8bn Bishop also cited Iran’s potential re- ity for a period.” While most oil majors World Energy Fund, said in a phone turn to the markets next year as an ad- have pledged to do whatever they can to interview. Oil prices are unsustainable ditional cause of volatility. Sanctions maintain dividends despite the slide in and too low to foster investments in the over its nuclear programme are ex- their shares, Italy’s Eni cut its payout industry, he said. pected to be lifted in the fi rst quarter of this year. Oil prices have slid to an 11-year low 2016, adding more barrels to an already “The equity markets are clearly sug- as Opec reiterated its policy of defend- oversupplied market. gesting there’s a risk to these dividends, ing market share by eff ectively aban- The collapse in prices has forced oil hence why companies like BP and Shell doning output limits at a December 4 companies to postpone or cancel cost- have yields as high as they are,” Bishop meeting. While BlackRock, the world’s ly investment projects, lay off work- said. “It’s not something that keeps us biggest asset manager, was correct in ers, sell assets and even sometimes cut up at night.” Bishop also expects more predicting a U-shaped rather than a V- what are considered to be sacrosanct consolidation in the industry next year. A motorist is silhouetted as he pumps fuel into his vehicle at a BP station in Flint, Michigan, US. Oil prices have slid to an shaped recovery, the rebound is more dividends in a bid to conserve cash. “We would anticipate that there will be 11-year low as Opec reiterated its policy of defending market share by eff ectively abandoning output limits at a December “elongated” than anticipated, Bishop Spending has been cut by $250bn this more M&A as we go through this down 4 meeting. said. year, according to energy consultants cycle,” he said.

Siberian surprise: Russia oil patch keeps pumping

Bloomberg today,” said Chris Weafer, a partner at Moscow consultants Macro Advisory. In some parts of the Russian oil patch, low prices are already causing pain. At In the fight for market share among $40 a barrel, “half of our fields could the world’s oil producers this year, Rus- be stopped. Heavy oil, low horizons, sia wasn’t supposed to be a contender. mature horizons are all unprofitable But the world’s No 3 producer has at a price of $40-$45. We are waiting been pumping at the fastest pace for better times,” Russneft board since the collapse of the Soviet Union, Chairman Mikhail Gutseriev said in an adding to the flood on an already- interview on state television early this swamped market and helping push month. prices to the lowest levels since 2004. Relatively high taxes on oil have actu- Russia’s unexpected oil bounty this ally sheltered the industry from much year is the result not of a new Kremlin of the impact of the drop in prices. On campaign but of dozens of modest An employee uses a walkie-talkie as a coking unit stands beyond at an oil crude exports, the government takes productivity improvements across refinery operated by Bashneft in Ufa. Russia’s unexpected oil bounty this nearly everything above $30-$40 a the sprawling sector. Even pressured year is the result not of a new Kremlin campaign but of dozens of modest barrel, so companies don’t feel much by plunging prices, as well as US and productivity improvements across the sprawling sector. impact until prices fall below that. European Union sanctions that cut Stavskiy’s Bashneft also benefited access to much foreign financing and A veteran of the oil fields of Siberia densate, a light and especially valuable from some special tax breaks for older technology, Russian companies have who’s now head of upstream at form of crude, is up fivefold this year. fields, although he said the savings managed to squeeze more crude out Bashneft, he said his engineers have One side eff ect of falling oil prices - the weren’t decisive for the company’s of some of the country’s oldest fields. managed to find more oil in some of 52% plunge in the rouble over the investment choices. They have also brought new projects the fields where he worked summers last two years - has helped Russian “We’re up 3% since the beginning on line, off setting steady declines in its as a student in the early 1980s. Bash- oil producers, chopping their costs in of the year at our mature fields in core producing region of West Siberia. neft, with some of the oldest reserves dollar terms since 80% to 90% of their Bashkiria, the oldest of which has been With a rise of 0.5% in the first nine in Russia, has been the biggest single spending comes in roubles. in production for 83 years and already months of 2015, Russia hasn’t boosted contributor to increased crude output “I don’t know what the oil price would produced 1.7bn tonnes (12.5bn barrels) production as much as its larger rivals, this year, thanks largely to low-cost have to fall to for things to change dra- of oil,” Stavskiy said. the US (up 1.3%) and Saudi Arabia eff orts to squeeze more oil out of matically,” Stavskiy said. “We’ve been Bashneft and other Russian companies (up 5.8%), according to Citigroup. But regions that have been in production through $9 a barrel and production working fields in the Volga River basin having ignored Opec’s calls earlier this for decades. The results have helped continued, so if something like that - some of the first to be discovered in year to join eff orts to support prices make Bashneft’s shares among the happens, we know what to do.” Russia early in the last century - are by pumping less, Russia is keeping up best performers on Russia’s stock To be sure, few in the industry expect benefiting from Soviet ineff iciency, with the cartel. market in the last 12 months. Russia to be able to sustain the current he said. “In Soviet times, the idea was: “I know of no one who had predicted The other big boosts to Russian performance for more than a few whatever we don’t produce will be left that Russian production would rise in production this year have come from years. Tax hikes and lack of financing for our children.” 2015, let alone to new record levels,” a few mid-sized new fields like those have cut deeply into exploration drill- As a result, many old fields still have said Edward Morse, Citigroup’s global of Severenergia in the Arctic Yamal ing, which is down 21% this year, and plenty of untouched oil. Bashneft, head of commodities research. As region. Co-owners Novatek and handicap the larger new projects that working with Schlumberger Ltd, set recently as April, not even the Russian Gazpromneft invested in the $9.2bn are needed to replace the country’s up a high-tech geology centre in its government thought 2015 would project back when oil prices were older fields as they run dry. headquarters near the fields, allowing break the record. high. With most of the capital already “There is, however, only so far such engineers to model deposits in real But Mikhail Stavskiy said he wasn’t committed, operating costs now are eff iciency gains can go and we are time and drillers to target where the surprised. relatively low and output of gas con- probably near the peak of output remaining oil is.

Oil bears exiting market too soon as prices plunge to another low

Bloomberg New York

peculators betting oil would rebound from a six-year low got it wrong as the market rout resumed. S Oil rose on December 15 on reports that the US was about to lift the 40-year ban on crude exports and on forecasts that government data would show a decline in America’s crude inventories. Prices dropped the next day on the realisation that there was little overseas demand for the crude and after US supplies climbed to the highest level for this time of year since 1930. “They got it wrong,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “People were expecting a bullish inventory report and were surprised. The report suggests the funda- mentals are even worse than we thought.” Money managers’ short position in West Texas Inter- mediate crude fell 8.4% from an all-time high in the week ended December 15, data from the US Commodity Futures Trading Commission show. Net-long positions rose 19%. President Barack Obama signed a $1.1tn spending meas- ure on December 18 that averted a US government shutdown and removed the crude-oil export ban. The end of trade lim- its is a “big win,” said House Speaker Paul Ryan, and it’s a top priority for Republicans. “This is a momentous shift in policy but there’s little practical impact,” said John Kilduff , a partner at Again Capital, a New York-based hedge fund that focuses on energy. “Prices had fallen so much that even an esoteric policy change could have propped up prices.” Futures have been under pressure on signs the global sup- ply surplus will be prolonged. The Organization of Petrole- um Exporting Countries abandoned output limits at a De- cember 4 meeting, while the US Federal Reserve increased interest rates last week, boosting the dollar and reducing the appeal of commodities traded in the US currency. Gulf Times Tuesday, December 22, 2015 5 BUSINESS

Martin Shkreli, CEO of Turing Pharmaceuticals (centre), exits the federal court in New York on Thursday. Turing took a decades-old drug, Daraprim, and raised the price to $750 a pill from just $13.50. Shkreli was arrested on alleged securities fraud related to Retrophin, a biotech firm he founded in 2011. ‘Wolf of Pharma Street’ shows unwelcome mirror to industry Turing CEO wasn’t alone in increasing old Like Shkreli, Valeant chief executive officer Bad boy fi red from KaloBios crafty as …,” Shkreli said in a December 16 Horizon, for example, raised the price of the drugs’ prices; new CEOs ignore old “social Mike Pearson has excelled at finding cheap interview with the publication HipHopDX. pain drug Vimovo by almost 600% after buying contract”, Express Scripts says drugs, boosting their cost and reaping The controversial US pharma boss and hedge The drug industry’s lobby group, the rights from AstraZeneca in 2013, the Wall the rewards. The company took two heart fund figure Martin Shkreli has been fired as Pharmaceutical Research and Manufacturers Street Journal reported in April, citing Truven Bloomberg drugs, Nitropress and Isuprel, and raised CEO of KaloBios Pharmaceuticals following his of America, has gone after both Valeant and Health Analytics. Boston their prices by 212% and 525%, respectively. arrest on fraud charges, the firm said yesterday. Turing, saying in September that Turing doesn’t “Pricing is not, nor has ever been a key driver Rodelis boosted a tuberculosis treatment The news came on the heels of Shkreli’s resig- represent its values, and in October that for our business,” Geoff Curtis, a Horizon to $360 a pill from $20, before saying in nation on Friday as boss of Turing Pharmaceu- Valeant’s strategy “is more reflective of a hedge spokesman, said in an e-mail. He said the Martin Shkreli, the pharmaceutical CEO arrested September that it would give up rights to the ticals, the day after his indictment over allega- fund than an innovative biopharmaceutical company makes proprietary drugs and grows on securities fraud charges last week, may have drug. tions of a Ponzi scheme-like fraud conspiracy. company.” by increasing prescriptions, not prices. made drug price increases notorious in the US. Rodelis was working to ensure “long-term Shkreli was “terminated as chief executive Turing fired back that other drugmakers raise Representative Elijah Cummings, a Democrat But his strategy of finding an old drug, raising availability” of the tuberculosis drug, and off icer of the company and resigned from his prices frequently. Valeant said that it should from Maryland who has been investigating high its price, and taking the profit is one that’s planned to maintain patients’ access, the position as a member of the board of directors” be judged by how many products it brought to drug prices, called for more scrutiny. increasingly common among a new breed of company said on its website. The drug’s rights on December 17, the day of his arrest, KaloBios market, not what it spent on R&D. “Mr Shkreli and the CEOs of other major drug drugmakers. were returned to the nonprofit Purdue Research said in a securities filing. Companies like Turing and Valeant that acquire companies should be called to testify before Disdaining a business model dependent Foundation, who sold it to Rodelis earlier this US Justice Department off icials suspect drugs instead of developing them are the Congress immediately,” Cummings said on on expensive research and development, year, in September after an outcry over the the 32-year-old of mounting a brazen fraud “exceptions and not the rule,” said Robert Friday in a statement. “They should be required companies like Shkreli’s Turing price increase. between 2009 and 2014 at two hedge funds Langer, a professor at MIT and co-founder of to produce all of the documents that have been Pharmaceuticals, Valeant Pharmaceuticals Such price increases aren’t a new strategy. and another firm, prior to his career at either more than 25 biotechnology companies. requested of them.” International, Rodelis Therapeutics and others From 2005 to 2008, Questcor Pharmaceuticals pharmaceutical company. Yet price increases are common across the Until Thursday, Shkreli had been flying high have taken advantage of ineff iciencies in the Inc, now owned by Mallinckrodt, increased the He is accused of lying to investors, moving industry, from big players such as Pfizer Inc despite the personal scorn his business US health-care system. Old drugs can be sold price of the drug HP Acthar from $1,235 a vial money between investments to cover losses and Merck & Co, to manufacturers of generic practices had brought upon him. Turing had at much higher prices if the owner is willing to to $29,086. Mallinckrodt had no immediate in other vehicles and siphoning off cash for drugs. In October a price survey of more than announced that US regulators had given its new push the boundaries of what the market will comment. personal expenses. 21,000 generic drugs for Bloomberg News drug a fast-track designation in its approval bear. Turing, for example, took a decades-old Questcor raised the price in 2007 because by DRX, a unit of Connecture Inc that tracks process. Last month, he acquired a majority drug, Daraprim, and raised the price to $750 a Acthar was no longer profitable, according drug prices, found that more than 3,500 have stake in a floundering drugmaker, KaloBios pill from $13.50. to Mallinckrodt, and since it was acquired And he’s taken pains to distance himself from doubled or more since late 2007, ranging Pharmaceuticals Inc, sending its shares soaring, Shkreli was arrested last Thursday in New York Mallinckrodt says its price increases have been Turing and Shkreli. from basic chemotherapy medicines to old and named himself CEO. on charges related to hedge funds he ran and in line with or below inflation. “To compare us to Turing is ridiculous,” Pearson antibiotics. Shkreli had continued to attract investors even his old drug company Retrophin Inc. He has Big price increases are just business, Shkreli has said during a December 15 interview with CNBC. “It’s becoming a new financial model, it’s not after the Retrophin board ousted him last year. denied the charges, which aren’t related to said. “I think health-care prices are inelastic,” he “That is a single-product company.” Valeant just Turing - Horizon does this, Valeant does He arranged a deal with his former employer to drug pricing. Turing declined to comment. The said at an event in New York this month. “I could declined to comment for this story. this,” Steve Miller, chief medical off icer at take two drugs with him to his new company, company announced on Friday that Shkreli has have raised it higher and made more profits for Yet Pearson has criticised Big Pharma drug-benefit manager Express Scripts Holding Turing. That gave him a foundation he then resigned as CEO. our shareholders.” companies for overspending on research, and Co said by phone. Miller has been a frequent added to with the acquisition of Daraprim in “Shkreli has become the Wolf of Pharma Street - Shkreli has previously said that his goal is to use the company has said that it looks for products critic of drugmakers, and he sits at the other August. he’s basically come to represent everything that his financial gains to develop new drugs and that can be sold better and more profitably by side of the negotiating table, managing The increase in the price of Turing’s drug, a was bad and wrong with pharma,” Art Caplan, a that he gives much of his company’s medicine Valeant. In Daraprim, and other drugs, Shkreli pharmaceutical costs for health insurers. potentially life-saving treatment for some medical ethicist at New York University, said by away for pennies. may have seen the same opportunity. “We have a new class of leadership at these children and people with HIV, isn’t right, said phone. And while Shkreli may be reviled, said At Valeant, after facing criticism of price “If you talk to anyone in pharma, maybe I don’t organizations that no longer feels encumbered Hank Greely, a Stanford University bioethicist. Caplan, “he’s not doing anything in terms of increases, Pearson said in October that the have the same resources as Pfizer, I may not by the social contract that had previously “It may be legal, but exploiting people like this is prices that other companies haven’t done.” company won’t be as reliant on the practice. have the same experience as Merck, but I’m existed,” Miller said. wrong,” Greely said. Gulf Times 6 Tuesday, December 22, 2015 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 7.15 0.70 503,036 Boubyan Intl Industries Hold 29.50 3.51 435,072 Areej Vegetable Oils 5.51 0.00 - Solidarity Saudi Takaful Co 7.37 1.66 1,648,399 Gulf Investment House Ksc 26.00 -1.89 1,869,400 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 8.15 0.62 937,915 Boubyan Bank K.S.C 440.00 1.15 192,917 Al-Omaniya Financial Service 0.31 0.00 - Alabdullatif Industrial Inv 29.25 3.83 88,050 Ahli United Bank B.S.C 208.00 0.00 10,000 Al-Hassan Engineering Co 0.07 1.43 77,000 Saudi Printing & Packaging C 24.81 -1.82 8,696,122 Osos Holding Group Co 82.00 0.00 13,399 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 0.31 1.99 20,200 Saudi Paper Manufacturing Co 18.39 -3.57 3,351,652 Qurain Petrochemical Industr 188.00 1.08 120,707 Al Suwadi Power 0.19 0.00 10,600 Alinma Bank 14.57 -1.22 70,800,328 Advanced Technology Co 920.00 0.00 1,000 Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 82.47 0.83 82,539 Ekttitab Holding Co Sak 30.00 1.69 231,000 Al Sharqiya Invest Holding 0.10 1.06 180,911 Falcom Saudi Equity Etf 25.60 0.39 252,910 Kout Food Group Ksc 740.00 0.00 10,405 Al Maha Petroleum Products M 1.94 0.00 - QATAR United International Transpo 40.76 -0.59 114,608 Real Estate Trade Centers Co 21.00 0.00 10,500 Al Maha Ceramics Co Saoc 0.40 0.00 129,000 Hsbc Amanah Saudi 20 Etf 24.10 0.00 - Acico Industries Co Kscc 265.00 1.92 47,991 Al Madina Takaful Co Saoc 0.08 0.00 9,400 Company Name Lt Price % Chg Volume Saudi International Petroche 15.95 -0.31 174,923 Kipco Asset Management Co 100.00 -1.96 61,000 Al Madina Investment Co 0.05 0.00 - Falcom Petrochemical Etf 22.20 0.00 - National Petroleum Services 600.00 0.00 2,000 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 80.00 0.00 - Saudi United Cooperative Ins 10.18 1.09 547,780 Alimtiaz Investment Co Kscc 77.00 1.32 289,810 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 45.00 3.21 11,624 Bank Al-Jazira 16.46 -0.90 1,148,469 Ras Al Khaimah White Cement 100.00 0.00 200 Al Jazeera Steel Products Co 0.15 0.00 54,766 Vodafone Qatar 11.08 -0.27 402,325 Al Rajhi Bank 51.24 -0.87 2,214,435 Kuwait Reinsurance Co Ksc 200.00 0.00 733 Al Jazeera Services 0.30 0.00 - United Development Co 20.00 0.00 91,871 Samba Financial Group 22.00 0.32 209,787 Kuwait & Gulf Link Transport 43.50 -1.14 139,280 Al Izz Islamic Bank 0.07 1.52 163,595 Salam International Investme 11.44 0.62 19,645 United Electronics Co 41.42 1.74 405,118 Human Soft Holding Co Ksc 970.00 0.00 1,500 Al Buraimi Hotel 0.88 0.00 - Islamic Holding Group-Rts 14.00 0.00 - Allied Cooperative Insurance 15.80 2.07 841,328 Automated Systems Co Kscc 325.00 0.00 6,850 Al Batinah Power 0.19 0.00 86,891 Qatar & Oman Investment Co 11.70 0.43 105 Malath Cooperative & Reinsur 19.54 2.14 1,657,361 Metal & Recycling Co 79.00 0.00 10 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 94.00 -1.05 6,761 Alinma Tokio Marine 24.75 9.90 5,731,800 Gulf Franchising Holding Co 32.50 -7.14 935,972 Al Batinah Dev & Inv 0.08 1.22 58,900 Qatar National Cement Co 100.00 -2.82 4,971 Arabian Shield Cooperative 25.57 1.15 492,786 Al-Enma’a Real Estate Co 65.00 0.00 19,691 Al Anwar Holdings Saog 0.17 2.48 3,712,468 Qatar National Bank 164.90 0.00 137,320 Savola 48.18 0.06 262,695 National Mobile Telecommuni 1,040.00 0.00 2,212 Ahli Bank 0.19 -1.04 560,453 Qatar Islamic Insurance 65.70 3.96 100 Wafrah For Industry And Deve 23.50 -1.76 758,222 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.81 0.00 - Qatar Industrial Manufactur 38.95 2.64 524 Fitaihi Holding Group 14.71 0.48 636,225 Housing Finance Co Sak 31.00 3.33 1,011,534 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 61.60 -1.28 10,333 Tourism Enterprise Co/ Shams 37.70 9.91 2,666,556 Al Salam Group Holding Co 34.50 2.99 775,014 A’saff a Foods Saog 0.86 0.00 - Qatari Investors Group 38.00 5.56 42,551 Sahara Petrochemical Co 11.13 1.27 1,135,022 United Foodstuff Industries 150.00 0.00 10 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 107.00 -0.37 93,788 Herfy Food Services Co 99.00 0.18 145,697 Al Aman Investment Company 59.00 1.72 500 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 23.15 -0.43 168,750 Mashaer Holdings Co Ksc 106.00 0.00 27,783 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 55.90 5.47 2,600 Manazel Holding 26.00 10.64 17,921,327 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 13.53 10.00 406,448 Mushrif Trading & Contractin 70.00 6.06 1,453,847 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 140.80 -2.56 16,302 KUWAIT Tijara And Real Estate Inves 42.50 0.00 30,020 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 208.00 0.00 47,985 Kuwait Building Materials 0.00 0.00 - #N/A Invalid Security 0.00 0.00 - Qatar Cinema & Film Distrib 34.20 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 910.00 1.11 75,343 #N/A Invalid Security 0.00 0.00 - Qatar Insurance Co 81.50 0.00 23,902 Commercial Real Estate Co 82.00 1.23 195,000 Ooredoo Qsc 68.90 2.07 109,471 Securities Group Co 100.00 -9.09 273 Future Communications Co 114.00 0.00 7,100 National Leasing 13.53 0.22 68,614 Sultan Center Food Products 68.00 -2.86 7,274 National International Co 60.00 0.00 30,332 Mazaya Qatar Real Estate Dev 13.55 -0.66 129,624 Kuwait Foundry Co Sak 220.00 0.00 20,000 Taameer Real Estate Invest C 24.00 2.13 100,000 UAE Mesaieed Petrochemical Holdi 18.00 -0.77 65,630 Kuwait Financial Centre Sak 102.00 0.00 22,075 Gulf Cement Co 78.00 0.00 208,303 Al Meera Consumer Goods Co 216.00 -2.70 1,572 Ajial Real Estate Entmt 166.00 0.00 4,091 Heavy Engineering And Ship B 148.00 0.00 13,010 Company Name Lt Price % Chg Volume Medicare Group 122.00 3.13 28,958 Gulf Glass Manuf Co -Kscc 490.00 -7.55 20,000 Refrigeration Industries & S 320.00 0.00 25,000 Mannai Corporation Qsc 94.20 -0.21 3,531 Kuwait Finance & Investment 38.50 -1.28 3,610 National Real Estate Co 92.00 3.37 414,759 Waha Capital Pjsc 2.15 0.94 463,087 Masraf Al Rayan 35.10 0.29 1,309,438 National Industries Co Ksc 240.00 0.00 19,826 Al Safat Energy Holding Comp 12.50 0.00 1,611,750 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.10 -0.29 3,640 Kuwait Real Estate Holding C 21.00 2.44 15,000 Kuwait National Cinema Co 900.00 0.00 74,000 United Arab Bank Pjsc 5.38 0.00 - Industries Qatar 101.00 0.00 94,072 Securities House/The 38.00 1.33 4,267,859 Danah Alsafat Foodstuff Co 83.00 -1.19 51,000 Union National Bank/Abu Dhab 4.45 1.60 1,919,784 Islamic Holding Group 68.40 9.97 43,956 Boubyan Petrochemicals Co 520.00 0.00 166,970 Independent Petroleum Group 244.00 0.83 16,324 Union Insurance Co 1.21 0.00 - Gulf Warehousing Company 57.00 0.00 214 Al Ahli Bank Of Kuwait 365.00 0.00 49,038 Kuwait Real Estate Co Ksc 58.00 1.75 66,705 Union Cement Co 1.20 0.00 - Gulf International Services 47.75 -3.34 695,186 Ahli United Bank (Almutahed) 520.00 0.00 13,665 Salhia Real Estate Co Ksc 350.00 0.00 20,000 Umm Al Qaiwain Cement Indust 1.00 0.00 - Ezdan Holding Group 15.19 1.27 381,910 National Bank Of Kuwait 810.00 0.00 4,678,398 Gulf Cable & Electrical Ind 375.00 0.00 5,010 Sharjah Islamic Bank 1.45 -5.84 597,494 Doha Insurance Co 21.50 0.00 500 Commercial Bank Of Kuwait 500.00 0.00 66,848 Al Nawadi Holding Co Ksc 89.00 0.00 5,000 Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 43.75 -0.46 224,621 Kuwait International Bank 222.00 0.91 139,029 Kuwait Finance House 550.00 0.00 605,601 Sharjah Group 1.35 0.00 - Dlala Holding 17.80 1.14 33,856 Gulf Bank 265.00 0.00 115,551 Gulf North Africa Holding Co 27.00 1.89 255,810 Sharjah Cement & Indus Devel 1.00 0.00 - Commercial Bank Qsc 44.10 -0.68 174,112 Al-Massaleh Real Estate Co 59.00 9.26 10 Hilal Cement Co 132.00 0.00 12,352 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 38.40 -0.78 180,730 Al Arabiya Real Estate Co 30.00 0.00 10 Osoul Investment Kscc 41.00 2.50 14,900 Ras Al Khaimah White Cement 1.20 0.00 - Al Khaleej Takaful Group 30.10 -0.99 14,074 Kuwait Remal Real Estate Co 36.00 -1.37 85,200 Gulf Insurance Group Ksc 750.00 0.00 236 Ras Al Khaimah Ceramics 3.40 3.03 192,500 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 1,980.00 0.00 13,366 Ras Al Khaimah Cement Co Psc 0.90 0.00 1,450,000 A’ayan Real Estate Co Sak 80.00 5.26 40,000 Umm Al Qaiwain Cement Indust 80.00 0.00 2,674 Ras Al Khaima Poultry 1.65 0.00 - Investors Holding Group Co.K 25.00 4.17 5,872,167 Aayan Leasing & Investment 47.00 0.00 183,913 Rak Properties 0.55 10.00 21,781,551 Al-Mazaya Holding Co 104.00 1.96 50,000 Ooredoo Qsc 74.00 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 53.00 1.92 1,531,116 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 950.00 0.00 133,286 OMAN 1.08 - City Group 380.00 0.00 108 National Marine Dredging Co 5.00 0.00 - National Investor Co/The 0.62 0.00 - United Wire Factories Compan 21.53 0.56 69,045 Inovest Co Bsc 55.00 0.00 20,000 Company Name Lt Price % Chg Volume Etihad Etisalat Co 28.40 -0.28 378,587 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.50 0.00 - Dar Al Arkan Real Estate Dev 6.04 0.67 12,428,821 Al-Deera Holding Co 31.50 -4.55 177,686 Voltamp Energy Saog 0.41 0.00 331 National Bank Of Umm Al Qaiw 3.10 0.00 - Saudi Hollandi Bank 27.19 0.93 111,895 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.91 0.00 158,000 Rabigh Refining And Petroche 12.31 1.32 1,881,176 Mena Real Estate Co 23.50 2.17 54,750 United Power Co Saog 2.74 0.00 - National Bank Of Fujairah 3.50 0.00 - Banque Saudi Fransi 26.02 -0.27 9,107 National Slaughter House 0.00 0.00 - United Finance Co 0.11 3.64 592,240 National Bank Of Abu Dhabi 7.90 2.46 787,561 Saudi Enaya Cooperative Insu 14.94 3.39 1,322,778 Amar Finance & Leasing Co 58.00 0.00 500 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.60 0.00 851,870 Mediterranean & Gulf Insuran 23.69 0.34 1,808,807 United Projects Group Kscc 0.00 0.00 - Takaful Oman 0.10 0.00 - Manazel Real Estate Pjsc 0.58 1.75 3,639,933 Saudi British Bank 22.62 -1.05 850,940 National Consumer Holding Co 99.00 0.00 80 Taageer Finance 0.13 0.00 - Invest Bank 1.80 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 0.00 0.00 - Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 6.95 0.00 - Red Sea Housing Services Co 22.77 0.18 214,934 Jeeran Holdings 60.00 0.00 4,400 Sohar Power Co 0.35 0.00 - Insurance House 0.81 0.00 - Takween Advanced Industries 39.36 -0.56 102,839 Equipment Holding Co K.S.C.C 59.00 5.36 1,371,876 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Industri 2.52 0.00 10,000 Sabb Takaful 32.65 2.13 1,844,933 Nafais Holding 204.00 0.00 5 Smn Power Holding Saog 0.74 0.00 - Gulf Medical Projects 2.40 0.00 - Saudi Arabian Fertilizer Co 86.46 0.23 74,874 Safwan Trading & Contracting 325.00 0.00 10 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.94 0.00 - National Gypsum 15.90 1.47 813,570 Arkan Al Kuwait Real Estate 112.00 -1.75 30,975 Shell Oman Marketing 2.00 0.00 - Fujairah Cement Industries 1.25 0.00 - Saudi Ceramic Co 48.32 -0.27 406,308 Gfh Financial Group Bsc 35.00 6.06 10,197,391 Sharqiyah Desalination Co Sa 4.50 0.00 - Fujairah Building Industries 1.71 0.00 - National Gas & Industrializa 24.61 -2.73 127,217 Energy House Holding Co Kscp 43.00 0.00 10,025 Sembcorp Salalah Power & Wat 2.40 -2.04 3,500 Foodco Holding Pjsc 4.00 0.00 - Saudi Pharmaceutical Industr 31.56 0.13 170,554 Kuwait Slaughter House Co 0.00 0.00 - Salalah Port Services 0.65 0.00 - First Gulf Bank 12.25 -1.61 1,736,518 Thimar 39.96 -3.17 4,288,206 Kuwait Co For Process Plant 216.00 0.00 64,005 Salalah Mills Co 1.49 0.00 - Finance House 2.22 0.00 - National Industrialization C 11.31 3.86 3,363,863 Al Maidan Dental Clinic Co K 1,220.00 0.00 50 Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.54 1.89 25,275,042 Saudi Transport And Investme 67.79 -3.69 2,082,913 National Ranges Company 22.00 7.32 3,368,871 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 16.15 2.87 7,690,683 Saudi Electricity Co 15.35 0.20 1,738,980 Al-Themar Real International 0.00 0.00 - Renaissance Services Saog 0.17 0.00 91,250 Emirates Insurance Co. (Psc) 6.72 0.00 - Saudi Arabia Refineries Co 39.03 -0.96 303,187 Al-Ahleia Insurance Co Sakp 450.00 0.00 505 Raysut Cement Co 1.04 2.48 8,196 Emirates Driving Company 5.05 0.00 - Arriyadh Development Company 17.55 1.45 645,501 Wethaq Takaful Insurance Co 40.00 0.00 5,000 Port Service Corporation 0.13 0.00 - Dana Gas 0.49 -2.00 55,427,441 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 83.00 -1.19 143,640 Phoenix Power Co Saoc 0.14 0.00 610,121 Commercial Bank Internationa 1.40 0.00 - Saudi Research And Marketing 51.27 -5.87 3,884,788 Aqar Real Estate Investments 75.00 -6.25 666 Packaging Co Ltd 0.48 0.00 - Bank Of Sharjah 1.41 0.71 96,597 Aldrees Petroleum And Transp 42.80 1.13 289,705 Hayat Communications 45.50 -3.19 51,810 Ooredoo 0.72 2.29 65,687 Axa Green Crescent Insurance 0.73 0.00 - Saudi Vitrified Clay Pipe Co 85.25 2.71 70,291 Kuwait Packing Materials Mfg 390.00 0.00 10 Ominvest 0.42 0.00 15,000 Arkan Building Materials Co 0.89 1.14 315,464 Jarir Marketing Co 153.48 -0.38 44,326 Soor Fuel Marketing Co Ksc 110.00 1.85 6,957 Oman United Insurance Co 0.22 0.92 40,238 Alkhaleej Investment 2.45 0.00 - Arab National Bank 21.98 0.14 186,419 Alargan International Real 176.00 1.15 12,500 Oman Textile Holding Co Saog 0.36 0.00 - Aldar Properties Pjsc 2.30 0.88 11,610,087 Yanbu National Petrochemical 40.37 -0.74 68,984 Burgan Co For Well Drilling 126.00 8.62 56,560 Oman Telecommunications Co 1.56 0.32 223,488 Al Wathba National Insurance 4.50 0.00 - Arabian Cement 52.38 0.54 91,670 Kuwait Resorts Co Kscc 96.00 4.35 500 Oman Refreshment Co 2.22 0.00 - Al Khazna Insurance Co 0.30 -9.09 100,000 Middle East Specialized Cabl 9.15 2.01 3,172,823 Oula Fuel Marketing Co 110.00 1.85 20,979 Oman Packaging 0.29 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 33.32 0.24 184,170 Palms Agro Production Co 112.00 7.69 8,570 Oman Orix Leasing Co. 0.14 0.00 - Al Dhafra Insurance Co. P.S. 4.80 0.00 - Al Sagr Co-Operative Insuran 29.29 0.45 325,537 Ikarus Petroleum Industries 92.00 0.00 13,740 Oman Oil Marketing Company 2.00 0.00 - Al Buhaira National Insuranc 2.50 0.00 - Trade Union Cooperative Insu 20.89 2.40 818,391 Mubarrad Transport Co 78.00 2.63 364,246 Oman National Engineering An 0.26 0.00 - Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 7.27 0.55 734,713 Al Mowasat Health Care Co 0.00 0.00 - Oman Investment & Finance 0.16 1.86 485,000 Agthia Group Pjsc 7.70 0.00 10,217 Saudi Chemical Company 60.55 5.07 346,889 Shuaiba Industrial Co 415.00 5.06 133,000 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.94 0.34 14,000 Fawaz Abdulaziz Alhokair & C 72.30 3.43 255,631 Hits Telecom Holding 29.00 3.57 2,667,425 Oman Hotels & Tourism Co 0.24 0.00 - Abu Dhabi Natl Co For Buildi 0.46 9.52 21,669 Bupa Arabia For Cooperative 111.19 1.69 404,841 First Takaful Insurance Co 56.00 0.00 7,000 Oman Foods International 0.48 0.00 - Abu Dhabi National Takaful C 4.73 0.00 - Wafa Insurance 12.80 0.87 538,700 Kuwaiti Syrian Holding Co 25.00 4.17 150,100 Oman Flour Mills 0.43 0.00 - Abu Dhabi National Insurance 3.20 0.00 - Jabal Omar Development Co 54.55 0.55 594,837 National Cleaning Company 39.00 0.00 13,100 Oman Fisheries Co 0.05 1.92 40,900 Abu Dhabi National Hotels 2.70 0.00 50,000 Saudi Basic Industries Corp 84.71 -1.93 7,984,369 Eyas For High & Technical Ed 330.00 6.45 13,000 Oman Fiber Optics 5.26 0.00 - Abu Dhabi National Energy Co 0.46 6.98 801,608 Saudi Kayan Petrochemical Co 7.33 0.55 12,374,995 United Real Estate Company 93.00 0.00 61,832 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.65 1.39 333,739 Etihad Atheeb Telecommunicat 5.70 -0.87 1,943,778 Agility 485.00 2.11 827,435 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 73.77 -0.32 154,182 Kuwait & Middle East Fin Inv 26.50 0.00 13,761 Oman Chromite 3.64 0.00 - National Petrochemical Co 19.53 0.93 336,850 Fujairah Cement Industries 73.00 0.00 88,750 Oman Chlorine 0.51 0.00 - BAHRAIN Gulf Union Cooperative Insur 12.28 0.66 305,297 Livestock Transport & Tradng 128.00 3.23 49,825 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 18.31 0.11 257,954 International Resorts Co 28.00 0.00 45,010 Oman Cement Co 0.46 3.14 879,015 Basic Chemical Industries 20.25 -0.20 111,061 National Industries Grp Hold 128.00 3.23 1,097,134 Oman Cables Industry 1.79 2.87 35,000 Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 0.70 Marine Services Co Ksc 0.00 21.63 93,399 114.00 821 Oman Agricultural Dev 1.45 0.00 - Zain Bahrain Bscc 0.18 0.00 10,500 Buruj Cooperative Insurance 1.51 Warba Insurance Co 0.00 16.16 471,600 102.00 160 Oman & Emirates Inv(Om)50% 0.09 1.10 70,280 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 5.55 Kuwait United Poultry Co 0.00 117.42 48,900 176.00 5,000 Natl Aluminium Products 0.22 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -0.21 First Dubai Real Estate Deve 2.30 75.25 7,630 44.50 55,020 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah -0.32 Al Arabi Group Holding Co 0.00 24.94 235,236 80.00 200,000 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.00 0.00 - Yamama Cement Co 0.06 Kuwait Hotels Sak 0.00 34.00 53,656 0.00 - National Pharmaceutical 0.10 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 2.12 Mobile Telecommunications Co 2.90 15.40 2,620,333 355.00 2,484,243 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -0.27 Al Safat Real Estate Co 0.00 33.23 329,785 0.00 - National Hospitality Institu 2.05 0.00 - Seef Properties 0.20 1.00 67,468 Alujain Corporation (Alco) -0.28 Tamdeen Real Estate Co Ksc -1.54 14.40 441,150 640.00 15,135 National Gas Co 0.31 0.00 - Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.16 Al Mudon Intl Real Estate Co 8.20 12.76 1,481,000 33.00 3,352,770 National Finance Co 0.14 -1.46 20,000 National Hotels Co 0.28 0.00 13,894 United Co-Operative Assuranc 1.05 Kuwait Cement Co Ksc 0.00 11.60 126,810 385.00 37,420 National Detergent Co Saog 0.70 0.00 - National Bank Of Bahrain Bsc 0.68 0.00 52,600 Qassim Cement/The 0.34 Sharjah Cement & Indus Devel 0.00 73.75 13,816 82.00 8,100 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.12 0.00 55,000 Saudi Advanced Industries 1.29 Kuwait Portland Cement Co 1.89 13.33 620,030 1,080.00 18 National Bank Of Oman Saog 0.27 0.00 - Khaleeji Commercial Bank 0.06 -1.56 71,012 Kingdom Holding Co 0.41 Educational Holding Group -2.78 17.03 1,283,850 210.00 1,031,549 Muscat Thread Mills Co 0.13 0.00 - Ithmaar Bank Bsc 0.14 -6.90 675,440 Saudi Arabian Amiantit Co 0.00 Bahrain Kuwait Insurance 0.00 8.95 452,965 0.00 - Muscat National Holding 1.86 0.00 - Investcorp Bank -$Us 6.20 0.00 10,000 Al Jouf Agriculture Developm 0.14 Asiya Capital Investments Co 1.37 36.56 76,893 37.00 103,089 Muscat Gases Company Saog 0.83 0.00 - Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development 1.64 Kuwait Investment Co 1.02 12.99 1,169,871 99.00 21,000 Muscat Finance 0.14 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.32 69.75 - 385.00 79,375 Majan Glass Company 0.22 0.00 - Gulf Hotel Group B.S.C 0.81 0.00 5,500 Riyad Bank 0.33 Kuwait Projects Co Holdings 1.75 12.09 200,754 580.00 52,909 Majan College 0.52 0.00 - Global Investment House Kpsc 0.00 0.00 - The National Agriculture Dev 1.61 Al Madina For Finance And In 0.00 29.66 252,477 33.50 8,952,410 Hsbc Bank Oman 0.10 0.00 392,922 Gfh Financial Group Bsc 0.00 0.00 - Halwani Bros Co 6.92 Kuwait Insurance Co 0.00 76.44 100,967 305.00 8,264 Hotels Management Co Interna 1.25 0.00 - Esterad Investment Co B.S.C. 0.20 -4.85 161,080 Arabian Pipes Co 0.22 Al Masaken Intl Real Estate 0.00 13.60 276,192 46.50 42,619 Gulf Stone 0.11 0.00 - Delmon Poultry Co 0.32 -1.84 131,166 Eastern Province Cement Co 1.01 Intl Financial Advisors 0.00 34.05 77,281 29.00 1,954,700 Gulf Plastic Industries Co 0.39 0.00 - Bmmi Bsc 0.87 0.00 47,000 Al Qassim Agricultural Co -1.23 First Investment Co Kscc -1.82 13.60 2,042,856 54.00 14,900 Gulf Mushroom Company 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Filing & Packing Materials M 0.46 Al Mal In 0.00 36.86 415,910 vestment Company 0.00 - Gulf Investments Services 0.09 0.00 116,516 Bbk Bsc 0.42 0.00 6,200 Saudi Cable Co 1.04 3.13 7.78 1,749,019 Bayan Investment Co Kscc 33.00 85,178 Gulf Invest. Serv. Pref-Shar 0.12 0.00 - Bankmuscat Saog 0.00 0.00 - Tihama Advertising & Public 2.47 0.00 29.87 4,410,478 Egypt Kuwait Holding Co Sae 166.00 300 Gulf International Chemicals 0.25 0.00 - Banader Hotels Co ` 0.00 419,368 Saudi Investment Bank/The 0.06 1.56 16.94 205,477 Coast Investment Development 32.50 474,290 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Tourism Co 0.22 0.00 23,000 Astra Industrial Group 0.62 -1.82 19.36 343,190 Privatization Holding Compan 54.00 1,351,632 Global Fin Investment 0.11 0.90 3,117,221 Bahrain Telecom Co 0.31 0.00 76,419 Saudi Public Transport Co -0.06 0.00 17.74 1,810,939 Kuwait Medical Services Co 29.50 1,000 Galfar Engineering&Contract 0.07 0.00 - Bahrain Ship Repair & Engin 0.00 0.00 - Taiba Holding Co 0.66 -4.76 34.85 204,754 Injazzat Real State Company 80.00 65,500 Galfar Engineering -Prefer 0.39 0.00 - Bahrain National Holding 0.00 0.00 - Saudi Industrial Export Co -3.38 11.11 36.04 2,224,437 Kuwait Cable Vision Sak 25.00 2,000 Financial Services Co. 0.17 0.00 - Bahrain Kuwait Insurance 0.60 0.00 7,000 Saudi Real Estate Co -0.55 -5.62 21.85 326,302 Sanam Real Estate Co Kscc 42.00 2,000 Financial Corp/The 0.11 0.00 - Bahrain Islamic Bank 0.11 0.00 48,392 Saudia Dairy & Foodstuff Co 0.49 2.38 105.27 27,121 Ithmaar Bank Bsc 43.00 2,015,500 Dhofar University 1.49 0.00 - Bahrain Flour Mills Co 0.00 0.00 - National Shipping Co Of/The 0.57 0.00 49.18 1,805,915 Aviation Lease And Finance C 210.00 1,500 Dhofar Tourism 0.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - Methanol Chemicals Co 0.27 1.41 7.55 1,306,502 Arzan Financial Group For Fi 36.00 530 Dhofar Poultry 0.18 0.00 - Bahrain Duty Free Complex 0.86 0.59 18,500 Ace Arabia Cooperative Insur 2.34 1.96 52.45 136,345 Ajwan Gulf Real Estate Co 26.00 216,934 Dhofar Intl Development 0.40 0.00 - Bahrain Commercial Facilitie 0.66 0.00 3,542 Mobile Telecommunications Co 0.12 1.20 8.45 762,278 Kuwait Business Town Real Es 42.00 682,613 Dhofar Insurance 0.21 0.00 - Bahrain Cinema Co 1.26 0.00 5,000 Saudi Arabian Coop Ins Co 0.92 0.00 16.52 218,097 Future Kid Entertainment And 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Bahrain Car Park Co 0.18 0.00 10,000 Axa Cooperative Insurance 0.84 0.00 15.69 614,854 Specialities Group Holding C 88.00 100 Dhofar Cattlefeed 0.21 0.00 - Arab Insurance Group(Bsc)-$ 0.38 0.00 20,000 Alsorayai Group 2.34 1.75 16.61 303,607 Abyaar Real Eastate Developm 29.00 420,743 Dhofar Beverages Co 0.26 0.00 - Arab Banking Corp Bsc-$Us 0.43 -1.16 35,000 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 140.00 121 Construction Materials Ind 0.03 -2.94 170,000 Aluminium Bahrain Bsc 0.37 0.00 57,000 Bank Albilad -0.63 1.85 23.76 383,127 Al-Dar National Real Estate 27.50 5,921,780 Computer Stationery Inds 0.26 0.00 - Albaraka Banking Group 0.54 0.00 10,000 Al-Hassan G.I. Shaker Co -1.10 1.82 27.80 442,536 Kgl Logistics Company Kscc 56.00 641,492 Bankmuscat Saog 0.47 1.30 2,554,120 Al-Salam Bank 0.09 1.15 20,000 Wataniya Insurance Co 0.88 -1.27 64.26 83,113 Combined Group Contracting 780.00 16,000 Bank Sohar 0.16 0.00 10,669 Al-Ahlia Insurance Co 0.00 0.00 - Abdullah Al Othaim Markets 88.75 2.90 42,648 Zima Holding Co Ksc 120.00 5.26 1,145,858 Bank Nizwa 0.07 1.39 1,922,080 Hail Cement 14.30 0.21 118,067 Qurain Holding Co 7.00 0.00 1,801,093 Bank Dhofar Saog 0.22 3.32 160,000 LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, December 22, 2015 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 17,246.61 +118.06 Apple Inc 106.34 0.29 10,451,687 S&P 500 Index 2,020.90 +15.35 Microsoft Corp 54.80 1.24 8,791,556 Nasdaq Composite Index 4,963.06 +39.98 Exxon Mobil Corp 77.85 0.74 2,934,385 S&P/Tsx Composite Index 13,132.49 +108.19 General Electric Co 30.50 0.73 10,530,445 Mexico Bolsa Index 43,261.91 +325.28 Johnson & Johnson 101.69 -0.26 1,513,109 Brazil Bovespa Stock Idx 43,562.78 -347.82 Jpmorgan Chase & Co 65.43 1.60 3,025,435 Ftse 100 Index 6,101.11 +48.69 Procter & Gamble Co/The 78.73 0.77 1,501,160 Cac 40 Index 4,640.16 +14.90 Pfizer Inc 32.26 0.84 5,875,870 Dax Index 10,673.82 +65.63 Wal-Mart Stores Inc 58.90 0.08 2,766,496 Ibex 35 Tr 9,502.00 -215.10 Walt Disney Co/The 106.16 -1.45 10,233,213 Nikkei 225 18,916.02 -70.78 Coca-Cola Co/The 42.81 0.73 1,967,900 Japan Topix 1,531.28 -5.82 Verizon Communications Inc 45.65 0.20 2,082,776 Hang Seng Index 21,791.68 +36.12 Visa Inc-Class A Shares 77.19 1.14 1,338,821 All Ordinaries Indx 5,157.85 +1.35 Home Depot Inc 131.12 0.64 893,210 Nzx All Index 1,179.50 +2.29 Chevron Corp 90.37 0.62 2,863,203 Bse Sensex 30 Index 25,735.90 +216.68 Intel Corp 34.26 1.17 2,808,479 Nse S&P Cnx Nifty Index 7,834.45 +72.50 Merck & Co. Inc. 51.75 0.21 2,332,569 Straits Times Index 2,845.55 -7.29 Cisco Systems Inc 26.59 1.22 3,462,749 Karachi All Share Index 22,686.68 -54.74 Intl Business Machines Corp 135.22 0.24 1,030,354 Jakarta Composite Index 4,490.68 +22.03 Nike Inc -Cl B 130.18 1.29 1,065,510 Unitedhealth Group Inc 117.03 1.04 622,996 Mcdonald’s Corp 117.21 0.47 781,368 Boeing Co/The 140.69 0.80 979,444 TOKYO 3M Co 148.15 0.84 544,589 United Technologies Corp 93.85 1.64 2,254,239 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 177.89 1.37 461,122 Rakuten Inc 1,372.00 -0.94 7,411,700 American Express Co 68.69 1.20 813,948 Kyocera Corp 5,602.00 0.43 1,106,700 Du Pont (E.I.) De Nemours 63.57 0.27 909,669 Nissan Motor Co Ltd 1,250.00 -0.56 13,877,200 Caterpillar Inc 65.60 0.75 1,405,395 Hitachi Ltd 685.60 -1.08 27,123,000 Travelers Cos Inc/The 111.25 1.02 403,450 Takeda Pharmaceutical Co Ltd 5,953.00 -0.47 2,397,400 Podemos (We Can) party leader Pablo Iglesias speaks during a news conference in Madrid yesterday. Spain faces a struggle Jfe Holdings Inc 1,897.00 2.10 5,982,000 to form a stable government following weekend elections that saw the incumbent conservatives score a win but not gain a Ana Holdings Inc 344.80 0.09 14,460,000 majority, tailed by the long-established Socialists and upstart, far-left Podemos. FTSE 100 Mitsubishi Electric Corp 1,254.00 -0.79 7,122,000 Sumitomo Mitsui Financial Gr 4,542.00 -0.02 7,873,200 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,893.00 -0.66 4,550,500 Fast Retailing Co Ltd 43,750.00 -0.73 683,300 Wpp Plc 1,524.00 0.93 833,140 Ms&Ad Insurance Group Holdin 3,371.00 0.06 1,320,400 Worldpay Group Plc 302.20 1.41 4,279,262 Kubota Corp 1,918.50 -1.49 5,685,000 Wolseley Plc 3,671.00 0.55 115,276 Seven & I Holdings Co Ltd 5,447.00 -0.13 2,486,700 Spanish stocks slump after vote Whitbread Plc 4,437.00 1.05 164,360 Inpex Corp 1,144.50 0.31 5,766,700 Vodafone Group Plc 211.05 -0.12 15,986,548 Resona Holdings Inc 583.90 0.12 8,694,100 United Utilities Group Plc 924.00 1.04 771,619 Asahi Kasei Corp 792.70 2.22 13,596,000 Unilever Plc 2,833.00 0.43 948,707 Kirin Holdings Co Ltd 1,771.00 3.08 10,355,300 Tui Ag-Di 1,227.00 1.24 460,112 leaves economy in political limbo Marubeni Corp 625.90 0.02 21,451,000 Travis Perkins Plc 1,965.00 1.97 252,093 Mitsubishi Ufj Financial Gro 748.80 -1.24 58,399,900 Tesco Plc 146.65 2.23 9,008,736 Mitsubishi Chemical Holdings 757.20 -0.94 6,606,500 Taylor Wimpey Plc 197.60 1.02 2,609,287 The polls cap a year of electoral easing. Figures Friday showed a rise in Fanuc Corp 20,945.00 -0.66 1,161,700 AFP Standard Life Plc 384.40 2.67 2,102,435 change in southern Europe after Syriza the number of US rigs drilling, increas- Daito Trust Construct Co Ltd 13,930.00 0.40 295,600 London Standard Chartered Plc 561.50 1.79 5,022,215 swept to power in Greece in January ing worries that output will continue Otsuka Holdings Co Ltd 4,395.00 -0.61 2,240,300 St James’s Place Plc 980.00 0.67 217,013 Oriental Land Co Ltd 7,178.00 1.10 1,172,300 and a coalition of leftist parties in Por- apace. Sse Plc 1,489.00 0.27 1,010,268 Sekisui House Ltd 1,971.50 0.31 2,585,300 pain’s stock market slumped tugal pooled their votes in parliament Oil prices have slumped by almost Sports Direct International 566.00 -0.70 424,062 Secom Co Ltd 8,140.00 -0.55 773,700 by 3.6% yesterday following an to unseat the conservative government one fi fth since December 4 when the Smiths Group Plc 935.50 1.24 1,193,073 Tokio Marine Holdings Inc 4,510.00 -0.33 3,046,400 election that has left the euro- after an inconclusive election in Octo- Opec oil producers’ group decided Smith & Nephew Plc 1,145.00 -2.30 2,461,857 S Aeon Co Ltd 1,826.00 -0.30 3,424,700 Sky Plc 1,095.00 1.39 1,076,158 zone’s fourth-largest economy in po- ber. against limiting production, despite Mitsui & Co Ltd 1,420.50 -0.49 11,589,300 Shire Plc 4,431.00 0.25 599,847 litical limbo. Jasper said the vote was another tepid demand and the supply glut. Kao Corp 6,096.00 0.96 2,318,200 Severn Trent Plc 2,144.00 0.61 306,495 Meanwhile other European indi- sign of anti-establishment feeling in Oil has sunk more than 60% from Dai-Ichi Life Insurance 2,004.50 -0.96 5,828,600 Schroders Plc 2,928.00 0.62 92,393 Mazda Motor Corp 2,510.00 0.10 6,030,200 ces fell into the red in late trading as Europe brought on by discontent with above $100 in mid-2014. Sainsbury (J) Plc 261.20 2.35 3,353,903 Komatsu Ltd 1,932.00 0.05 4,388,800 shares in energy companies tanked as austerity policies, and that the ex- Energy shares fell, with BP down Sage Group Plc/The 595.50 0.93 652,553 West Japan Railway Co 7,965.00 0.75 1,278,200 oil prices sank to 11-year lows and the perience of Portugal showed that the 1.2%, Shell’s A share losing 1.5% and Sabmiller Plc 4,043.00 -0.14 957,028 Murata Manufacturing Co Ltd 16,990.00 -2.16 1,958,400 Rsa Insurance Group Plc 429.90 0.42 742,148 euro climbed. emergence of a Socialist government in Total dropping 1.6%. Kansai Electric Power Co Inc 1,488.50 1.53 2,975,300 Royal Mail Plc 445.40 0.54 2,077,855 “Spain’s IBEX stock index dived to Spain would likely lead to a temporary Most Asian markets rose yesterday, Denso Corp 5,753.00 -0.64 1,754,400 Royal Dutch Shell Plc-B Shs 1,476.00 0.48 7,156,548 its worst day in three months whilst jump in the government’s borrowing although Tokyo gave up 0.4% after Sompo Japan Nipponkoa Holdin 3,814.00 0.98 1,866,000 Royal Dutch Shell Plc-A Shs 1,469.00 0.38 6,937,011 Toshiba’s stocks took a battering of Daiwa House Industry Co Ltd 3,362.00 -0.18 1,745,900 Spanish bond yields spiked as inves- costs. Royal Bank Of Scotland Group 297.90 1.33 4,128,986 Jx Holdings Inc 496.80 1.12 11,387,400 tors reacted to the country’s uncertain The euro rose to $1.0921 in foreign nearly 10% following a weekend report Rolls-Royce Holdings Plc 578.00 0.26 2,942,119 Nippon Steel & Sumitomo Meta 2,386.50 1.23 4,498,200 political future,” said CMC Markets UK exchange trading, which analysts said in the leading Nikkei business daily Rio Tinto Plc 1,889.50 1.45 3,522,989 Suzuki Motor Corp 3,686.00 0.55 2,497,000 that it would likely record a fi scal year Relx Plc 1,176.00 1.47 1,126,826 analyst Jasper Lawler. triggered sales in many shares. Nippon Telegraph & Telephone 4,786.00 1.27 4,596,000 Reckitt Benckiser Group Plc 6,147.00 0.31 430,777 Spain faces a struggle to form a “Today’s session has EURUSD break net loss of about $4bn. Ajinomoto Co Inc 2,787.00 1.86 2,747,000 Randgold Resources Ltd 4,079.00 1.19 170,761 stable government following week- back above the key upside level at 1.09 In a statement after the markets Mitsui Fudosan Co Ltd 3,111.00 -0.92 4,210,000 Prudential Plc 1,502.50 0.91 1,278,593 end elections that saw the incumbent but with the dollar weakness came closed yesterday, Toshiba said it would Ono Pharmaceutical Co Ltd 21,425.00 -0.46 696,600 Provident Financial Plc 3,273.00 1.02 320,272 Daikin Industries Ltd 8,515.00 -0.39 1,449,000 conservatives score a win but not gain a selloff in stocks towards the end of post a record ¥550bn ($4.5bn) annual Persimmon Plc 1,967.00 1.13 252,095 Bank Of Yokohama Ltd/The 715.70 0.17 3,953,000 a majority, tailed by the long-estab- the session,” said James Hughes, chief loss. Pearson Plc 755.00 0.87 969,916 Toray Industries Inc 1,097.00 0.37 6,713,000 lished Socialists and upstart, far-left market analyst at GKFX. The 140-year-old company was this Old Mutual Plc 175.20 1.98 4,083,926 Astellas Pharma Inc 1,681.50 -1.15 8,556,100 Next Plc 7,260.00 -0.21 365,678 Podemos. Paris stocks ended the day down year hit by revelations that executives Bridgestone Corp 4,288.00 -0.53 3,027,500 National Grid Plc 923.00 0.94 2,926,753 “If no consensus is reached 1.3% and Frankfurt 1.0%. London systematically pressured underlings to Sony Corp 2,943.00 -1.85 11,751,200 Mondi Plc 1,341.00 1.28 452,420 amongst the numerous political par- dipped 0.3%. infl ate profi ts in a years-long scheme Hoya Corp 4,889.00 -0.37 1,187,900 Merlin Entertainment 444.10 0.59 470,929 ties then Spanish voters may have to Oil prices extended losses yesterday to hide poor results. Sumitomo Mitsui Trust Holdin 456.70 -0.09 13,698,000 Marks & Spencer Group Plc 452.40 0.22 2,146,374 Japan Tobacco Inc 4,480.00 -0.18 3,322,200 go back to the polls next year, bring- with Brent North Sea crude hitting an Wall Street stock indices showed London Stock Exchange Group 2,707.00 0.33 182,658 Osaka Gas Co Ltd 425.30 -0.40 7,861,000 ing a period of continued uncertainty 11-year low. modest gains in midday trading as in- Lloyds Banking Group Plc 71.77 1.03 40,978,286 Sumitomo Electric Industries 1,697.50 1.83 4,860,000 that could weigh on Spain’s financial Crude prices continued to slide as an vestors went bargain hunting following Legal & General Group Plc 265.10 1.26 4,277,013 Daiwa Securities Group Inc 748.70 -0.44 12,831,000 Land Securities Group Plc 1,178.00 0.60 378,697 markets.” ongoing supply glut showed no sign of two losing sessions. Softbank Group Corp 6,124.00 0.29 4,810,600 Kingfisher Plc 329.50 1.70 2,158,539 Mizuho Financial Group Inc 241.40 -0.82 152,391,800 Johnson Matthey Plc 2,636.00 0.65 177,799 Nomura Holdings Inc 685.70 -1.52 29,481,700 Itv Plc 274.20 3.94 10,639,517 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,509.50 -0.75 2,358,500 Intu Properties Plc 316.50 0.76 439,580 Fuji Heavy Industries Ltd 4,973.00 0.63 3,337,000 Intl Consolidated Airline-Di 597.00 1.44 2,653,807 Ntt Docomo Inc 2,491.50 0.91 5,457,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intertek Group Plc 2,722.00 0.26 60,308 Sumitomo Realty & Developmen 3,623.00 -0.47 2,111,000 Intercontinental Hotels Grou 2,603.00 3.17 291,719 Aluminum Corp Of China Ltd-H 2.45 3.38 16,646,821 Hong Kong & China Gas 14.86 0.13 7,114,578 Sumitomo Metal Mining Co Ltd 1,406.50 2.11 6,099,000 Inmarsat Plc 1,108.00 0.00 321,290 Bank Of East Asia 27.15 0.00 1,137,947 Hong Kong Exchanges & Clear 201.00 1.06 2,621,086 Orix Corp 1,689.50 0.15 4,791,400 Imperial Tobacco Group Plc 3,508.00 1.30 564,638 Bank Of China Ltd-H 3.47 0.58 248,453,548 Hsbc Holdings Plc 61.10 -0.65 6,654,609 Asahi Group Holdings Ltd 3,900.00 0.85 1,577,600 Hsbc Holdings Plc 533.40 0.79 5,665,557 Bank Of Communications Co-H 5.49 1.86 40,342,136 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 64,780.00 0.81 213,700 Hikma Pharmaceuticals Plc 2,218.00 1.19 121,445 Belle International Holdings 5.73 0.35 14,449,536 Ind & Comm Bk Of China-H 4.73 1.07 220,651,605 Nidec Corp 8,664.00 -1.23 2,060,900 Hargreaves Lansdown Plc 1,473.00 0.41 109,827 Boc Hong Kong Holdings Ltd 23.70 0.21 7,092,404 Li & Fung Ltd 4.96 -1.00 18,872,596 Isuzu Motors Ltd 1,320.00 -0.94 3,850,300 Hammerson Plc 601.50 1.18 503,311 Cathay Pacific Airways 13.20 1.23 2,398,281 Mtr Corp 36.80 0.27 1,233,585 Unicharm Corp 2,391.50 -0.33 4,933,700 Glencore Plc 85.04 5.17 40,333,367 Ck Hutchison Holdings Ltd 103.00 0.00 4,431,762 New World Development 7.65 1.86 18,125,730 Shin-Etsu Chemical Co Ltd 6,631.00 0.20 1,154,300 Glaxosmithkline Plc 1,345.00 0.82 2,356,098 China Coal Energy Co-H 3.05 4.10 9,600,538 Petrochina Co Ltd-H 5.13 0.79 76,377,052 Smc Corp 31,780.00 0.79 239,700 Gkn Plc 300.50 1.45 1,430,581 China Construction Bank-H 5.34 0.95 196,979,736 Ping An Insurance Group Co-H 43.40 1.64 20,766,343 Mitsubishi Corp 1,998.00 0.91 7,376,600 Fresnillo Plc 676.50 2.66 345,538 China Life Insurance Co-H 25.60 0.59 28,624,847 Power Assets Holdings Ltd 70.00 0.14 1,893,207 Nintendo Co Ltd 16,520.00 -1.52 986,100 Experian Plc 1,173.00 0.60 560,684 China Merchants Hldgs Intl 24.40 3.83 2,814,992 Sino Land Co 11.42 -1.72 2,723,896 Eisai Co Ltd 8,003.00 -0.92 1,224,800 Easyjet Plc 1,710.00 1.42 493,376 China Mobile Ltd 87.75 -0.40 8,829,260 Sun Hung Kai Properties 94.05 -0.63 1,745,661 Sumitomo Corp 1,254.00 0.24 5,285,800 Dixons Carphone Plc 485.70 1.80 1,009,047 China Overseas Land & Invest 26.85 1.70 16,803,812 Swire Pacific Ltd - Cl A 84.80 0.06 798,566 Canon Inc 3,705.00 0.68 5,169,800 Direct Line Insurance Group 407.50 0.67 1,433,547 China Petroleum & Chemical-H 4.59 -0.65 132,315,204 Tencent Holdings Ltd 150.30 -0.66 8,975,296 Japan Airlines Co Ltd 4,230.00 0.95 2,106,200 Diageo Plc 1,821.00 0.75 1,113,950 China Resources Beer Holdin 15.20 0.80 3,428,190 Wharf Holdings Ltd 42.30 -0.47 1,955,397 Dcc Plc 5,590.00 1.64 150,015 China Resources Land Ltd 22.35 0.90 7,045,339 China Resources Power Holdin 15.10 2.72 6,711,953 Crh Plc 1,941.00 1.73 847,015 SENSEX Compass Group Plc 1,150.00 1.59 1,871,901 China Shenhua Energy Co-H 11.80 3.33 21,052,873 GCC INDICES Coca-Cola Hbc Ag-Di 1,455.00 -3.00 439,763 China Unicom Hong Kong Ltd 9.50 -1.04 37,481,029 Centrica Plc 212.30 0.14 5,175,718 Company Name Lt Price % Chg Volume Citic Ltd 13.70 0.00 7,660,036 Indices Lt Price Change Carnival Plc 3,740.00 2.52 547,128 Clp Holdings Ltd 64.40 -0.54 2,010,338 Doha Securities Market Zee Entertainment Enterprise 417.25 0.89 2,249,395 9,906.00 -6.92 Capita Plc 1,184.00 0.08 527,327 Cnooc Ltd 7.86 0.13 46,946,905 Saudi Tadawul Yes Bank Ltd 718.85 0.02 2,055,753 6,930.12 -0.96 Burberry Group Plc 1,206.00 1.52 737,399 Cosco Pacific Ltd 8.48 2.05 3,782,510 Kuwait Stocks Exchange Wipro Ltd 555.85 0.30 1,227,248 5,613.66 +41.73 Bunzl Plc 1,848.00 0.38 135,804 Esprit Holdings Ltd 8.03 1.26 2,067,110 Bahrain Stock Exchage Vedanta Ltd 86.55 2.67 10,315,351 1,189.78 -4.81 Bt Group Plc 459.45 0.25 5,410,728 Fih Mobile Ltd 2.88 4.73 16,177,641 Oman Stock Market Ultratech Cement Ltd 2,805.15 -0.35 189,552 5,404.25 +49.28 British Land Co Plc 788.50 0.70 1,104,311 Hang Lung Properties Ltd 17.70 -0.23 3,142,431 Abudhabi Stock Market Tech Mahindra Ltd 521.85 -0.27 962,278 4,191.25 +35.54 British American Tobacco Plc 3,693.00 0.72 1,581,151 Hang Seng Bank Ltd 144.10 -0.35 647,664 Dubai Financial Market Tata Steel Ltd 258.45 1.10 7,304,637 3,101.19 +75.14 Bp Plc 341.85 0.75 14,344,506 Henderson Land Development 47.70 -0.10 2,205,189 Tata Power Co Ltd 65.00 0.00 3,199,654 Bhp Billiton Plc 729.80 1.76 7,644,975 Tata Motors Ltd 380.15 0.50 4,318,588 Bg Group Plc 927.50 2.15 12,817,049 Tata Consultancy Svcs Ltd 2,446.40 1.22 841,580 Berkeley Group Holdings 3,603.00 1.38 674,932 Sun Pharmaceutical Indus 754.20 -4.55 13,257,621 Barratt Developments Plc 610.50 1.08 2,182,354 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 230.45 1.74 10,555,338 Barclays Plc 219.30 0.78 10,831,977 Reliance Industries Ltd 992.10 0.02 3,086,640 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Bae Systems Plc 498.70 1.26 1,726,049 Punjab National Bank 122.55 0.45 3,625,958 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 991.00 1.48 339,780 Power Grid Corp Of India Ltd 139.45 2.99 3,754,702 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Aviva Plc 508.50 0.89 2,689,035 Oil & Natural Gas Corp Ltd 230.45 3.23 3,701,710 this data.” Astrazeneca Plc 4,407.50 0.82 789,515 Ntpc Ltd 136.40 0.40 2,389,799 Associated British Foods Plc 3,259.00 -2.04 377,115 Maruti Suzuki India Ltd 4,639.10 0.40 296,657 Ashtead Group Plc 1,104.00 -0.54 1,065,681 Mahindra & Mahindra Ltd 1,278.85 2.86 1,019,404 Arm Holdings Plc 1,030.00 1.08 1,073,091 Lupin Ltd 1,801.70 0.97 467,689 CURRENCIES Antofagasta Plc 431.40 3.63 1,910,216 Larsen & Toubro Ltd 1,290.30 0.23 1,311,809 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Anglo American Plc 285.65 2.51 8,272,147 DINAR DINAR Kotak Mahindra Bank Ltd 705.90 0.49 871,662 Admiral Group Plc 1,651.00 -0.24 213,953 Itc Ltd 326.55 2.98 5,686,832 Aberdeen Asset Mgmt Plc 288.00 0.24 2,159,245 Infosys Ltd 1,103.45 1.87 2,278,654 3I Group Plc 470.70 0.86 293,807 Indusind Bank Ltd 950.65 1.67 538,283 #N/A! 0.00 0.00 - Idea Cellular Ltd 138.20 2.37 3,102,074 Icici Bank Ltd 258.20 3.24 14,783,057 TOKYO Housing Development Finance 1,232.35 0.61 2,210,994 Hindustan Unilever Ltd 851.60 -0.64 1,168,739 Hindalco Industries Ltd 81.30 1.75 9,000,005 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 2,697.95 2.07 362,470 East Japan Railway Co 11,300.00 -0.57 1,030,100 Hdfc Bank Limited 1,075.40 0.22 801,208 Itochu Corp 1,411.50 -1.22 10,352,900 Hcl Technologies Ltd 855.45 1.10 486,996 Fujifilm Holdings Corp 4,848.00 -0.08 1,816,700 Grasim Industries Ltd 3,707.80 -0.37 18,495 Yamato Holdings Co Ltd 2,486.50 -0.08 1,157,600 Gail India Ltd 336.35 -0.97 879,792 Chubu Electric Power Co Inc 1,641.00 0.27 1,675,700 Dr. Reddy’s Laboratories 3,009.45 1.19 398,018 Mitsubishi Estate Co Ltd 2,532.00 -0.49 4,637,000 Coal India Ltd 319.30 0.93 2,494,165 Mitsubishi Heavy Industries 548.00 -0.63 24,100,000 Cipla Ltd 643.70 0.25 798,069 Toshiba Corp 254.80 -9.81 118,342,000 Cairn India Ltd 134.05 2.96 2,334,381 Shiseido Co Ltd 2,567.50 -0.95 2,384,900 Bosch Ltd 18,287.40 0.39 13,081 Shionogi & Co Ltd 5,364.00 -0.70 1,577,400 Bharti Airtel Ltd 320.90 0.58 3,193,470 Tokyo Gas Co Ltd 548.50 -1.12 13,851,000 Bharat Petroleum Corp Ltd 897.50 -0.36 622,666 Tokyo Electron Ltd 7,353.00 -1.96 1,670,000 Bharat Heavy Electricals 167.10 0.36 1,701,647 Panasonic Corp 1,214.50 -2.65 17,684,800 Bank Of Baroda 159.45 0.28 4,316,211 Fujitsu Ltd 626.30 0.35 12,243,000 Bajaj Auto Ltd 2,489.50 0.81 185,214 Central Japan Railway Co 20,990.00 0.05 389,500 Axis Bank Ltd 442.35 2.27 5,591,473 T&D Holdings Inc 1,577.00 -1.31 3,493,800 Asian Paints Ltd 873.50 -0.68 997,859 Toyota Motor Corp 7,579.00 -1.03 11,392,500 Ambuja Cements Ltd 200.80 0.65 1,579,504 Kddi Corp 3,098.00 0.94 4,591,400 Adani Ports And Special Econ 260.60 0.15 1,447,471 Nitto Denko Corp 8,575.00 -0.24 1,937,500 Acc Ltd 1,353.00 0.30 117,586 Gulf Times Tuesday, December 22, 2015 13 BUSINESS

Indian stocks extend weekly gain as lenders, metalmakers advance

Bloomberg ICICI Bank rallied 3.2%, reduc- Mumbai ing this year’s loss to 27%. Axis Bank rose 2.3%, ending two days of declines. State Bank of India Indian stocks advanced, with the climbed 1.7%. The Bankex rose to benchmark gauge rebounding its highest level since December 8. from its biggest loss in a month, Tata Steel increased to its high- as lenders and metal producers est level since August 10, while climbed. ICICI Bank, the country’s Oil & Natural Gas rallied 3.2%, trim- biggest private lender, climbed to ming this year’s loss to 33%. a two-week high. The stock was Sun Pharmaceutical Indus- the best performer on the S&P tries, India’s biggest drug maker, BSE Bankex, which jumped 1.4%. tumbled 4.6%, the most since Tata Steel rallied to a four-month November 9, after it got a warn- high, while Oil & Natural Gas Corp, ing letter from the US Food and the largest state-owned explorer, Drug Administration following an increased to its highest price in inspection at one of its facilities. nearly three weeks. HSBC Holdings Plc cut the stock’s The S&P BSE Sensex gained rating to hold from buy, while 0.9% at the close in Mumbai after Morgan Stanley reduced it to posting its steepest drop since No- equal-weight from overweight. vember 18 on Friday. The gauge Sun received the FDA warning still halted two weeks of losses af- as a result of the inspection in ter the Federal Reserve raised US September 2014 at its Halol facility interest rates for the first time in in India’s Gujarat state, the drug nearly a decade, ending a period maker said in a statement on of uncertainty. The Sensex has Saturday. The FDA has withheld retreated in the month only twice future product approvals from in the past decade, data compiled this facility. Sun expects to seek a by Bloomberg show. re-inspection by the FDA on com- “We have all the reason to pleting its “remediation commit- remain bullish until Dec 31 as there ments,” according to the filing. will be some sort of net asset International investors bought value-management in the large a net $113mn of Indian stocks on caps before the year ends,” Ashish December 17, taking this year’s Maheshwari, a director at Blue inflows to $2.8bn. The Sensex has Ocean Strategic Advisors Pvt, said fallen 6.4% this year and trades in an interview with Bloomberg at 15.2 times projected 12-month TV India. The Fed’s decision has profits, versus 11.1 times for the been “priced in,” he said. MSCI Emerging Markets index.

An investor smiles in front of an electronic board showing stock information at a brokerage house in Fuyang, Anhui province. Shanghai stocks closed 1.8% higher yesterday on fresh hopes Chinese authorities would unveil new measures to reform the economy. Rupee climbs to Asian markets mostly one-month high Bloomberg fi fth day, rising 0.1% to 66.3525 Mumbai a dollar in Mumbai, according to prices from local banks com- piled by Bloomberg. It climbed to ndia’s rupee climbed to a 66.2625 earlier, the highest level one-month high on optimism since Nov. 23. The currency has rise; oil hits 11-yr low Iplunging prices of Brent crude advanced 0.5% in December, par- AFP will help cut the nation’s current- ing its decline for 2015 to 5%. Tokyo Crude continued to slide as an now at levels not seen since the daily that it would likely record Hong Kong gained 0.2% and account defi cit. Brent crude slumped to the ongoing supply glut showed no fi nancial crisis. a fi scal year net loss of about Seoul ended 0.3% higher. Goldman Sachs Group esti- lowest level since 2004 yester- sign of easing. Figures on Friday “There hasn’t been any sig- $4bn. Shanghai closed 1.8% higher mates the shortfall in the broad- day, lowering costs for India, il prices extended loss- showed a rise in the number of nifi cant signs of a pick-up in In a statement after the mar- on fresh hopes Chinese authori- est measure of trade will be 1.1% which imports about three quar- es yesterday with Brent US rigs drilling, increasing wor- demand and we haven’t seen any kets closed yesterday, Toshiba ties would unveil new measures of gross domestic product in the ters of its oil. Ohitting an 11-year low, ries that output will continue meaningful cuts to production,” said it would post a record to reform the economy, par- fi scal year ending March 2016, The yield on sovereign bonds fuelling fears about the global apace. Ric Spooner, a chief analyst at ¥550bn ($4.5bn) annual loss. ticularly the cumbersome state- compared with 1.3% in the pre- due May 2025 rose fi ve basis economy, but most Asian stock Brent sank 2.1% at one point CMC Markets in Sydney, told The 140-year-old company owned enterprises. vious period, according to a points, the biggest increase since markets recovered from early to $36.09 a barrel — its weakest Bloomberg News. was this year hit by revelations But Stewart Richardson, report this month. Australia & September 7, to 7.77%, accord- losses to rally in the afternoon. since July 2004 — and US stand- “Nothing has really changed in that executives systematically chief investment offi cer at RMG New Zealand Banking Group ing to prices from the Reserve However, with Wednesday’s ard West Texas Intermediate the oil market over the past couple pressured underlings to infl ate Wealth Management in London, and Morgan Stanley are among Bank of India’s trading system. US Federal Reserve interest rate was down 1.2% at $34.32, levels of months apart from the price.” profi ts in a years-long scheme to warned: “The problems that global banks predicting that the The yield rose on speculation the rise now in the past, analysts not seen since early 2009 at the On currency markets the hide poor results. have been aff ecting both mar- rupee will outperform its Asian government may miss its budget said concerns about the global height of the global fi nancial greenback edged up to ¥121.40 Japan’s Nikkei stock index kets and the global economy for peers in 2016. defi cit target of 3.5% of the GDP economy continue to keep trad- crisis. yesterday — also bouncing from ended 0.4% lower but pared months remain in place. “Oil prices at multi-year lows for the next fi scal year starting ers cautious. Prices have slumped by al- early selling — but remains well most of its early losses after fall- “Commodity prices remain will help keep the defi cit in check April 1, said Soumyajit Niyogi, While markets will begin most a fi fth since December 4 below last week’s high above ing 1.8% at one point, with a low, corporate debt remains and that is a huge positive for the interest rate strategist at SBI winding down for the Christ- when the Opec oil producers’ ¥123 touched after the US rate pick-up in the dollar against the too high and emerging markets rupee,” said Gaurav Sharma, a DFHI. mas break from Friday there are group decided against limiting rise. The dollar was slightly up yen providing some respite for continue to struggle. Further- senior currency analyst at Relig- The government may have to some key economic fi gures due production, despite tepid de- against the euro. exporters. more, although Federal Reserve are Commodities in Noida, near reassess its budget defi cit pro- for release this week, including mand and the supply glut. In Tokyo scandal-hit con- Most other regional markets chair Janet Yellen continues to New Delhi. “Also, the Federal jections for the next fi scal year if US economic growth and home The commodity has sunk glomerate Toshiba lost almost ended in positive territory after characterise the US economy Reserve’s meeting is now behind growth slows, the Finance Min- sales as well as Japanese infl a- more than 60% from above $100 10% following a weekend report falling into the red in the morn- as strong, it does appear to be us.” istry said in its mid-year review tion and spending. in summer 2014 and prices are in the leading Nikkei business ing. Sydney closed up 0.1%, slowing down.” The rupee strengthened for a published on Friday. Toshiba sees record $4.5bn loss, plans more job cuts

Bloomberg which doesn’t hold Toshiba shares. seek damages in a lawsuit against Tokyo “They need to do more, but it’s not as former executives, including the three simple as cutting people and closing and two former chief fi nancial offi cers, unprofi table businesses. The questions over their role in the scandal. oshiba Corp forecast a record is what will the results be two years af- “I will do my utmost in leading the ¥550bn ($4.5bn) loss and will ter the restructuring.” implementation of the recovery plan Tcut more jobs and restructure Shares of the industrial conglomer- for a rebirth of Toshiba and recovery of businesses that include chips, televi- ate fell 9.8%, the most since May 11, to everyone’s trust,” Muromachi told re- sions, personal computers and home close at 254.8 yen in Tokyo trading be- porters Monday in Tokyo. appliances following a long-running fore the announcement. The company Toshiba itself still faces lawsuits accounting scandal. has lost about $9bn, half of its market from shareholders, while it has vowed The projected net loss for this fi scal value, over the past eight months since to avoid recurrence by bringing in year includes ¥260bn in taxes because initially announcing an accounting more outside directors and it has has of a reversal of deferred income tax as- probe. cut executive pay. Regulators have yet sets, it said in a statement Monday. The The company will end consignment to announce results of probes seeking forecast doesn’t include possible im- of design and manufacturing to out- evidence for possible criminal pros- pairment of goodwill and fi xed assets side vendors for its PC business, while ecutions of former executives. at the company’s nuclear power sys- concentrating on business-to-busi- Toshiba announced the sale of its tems business because Toshiba is still ness sales and focusing the consumer image-sensor chip operations to Sony checking that, it said. portion of the segment to the Japan Corp in October and has sold stakes it Toshiba, trying to recover from an and US markets. Product platforms held in Finnish escalator maker Kone accounting scandal in which it padded will be reduced to less than one-third and Japanese medical equipment man- profi ts for almost seven years, is halting of the current number, the company ufacturer Topcon Corp development and sales of TVs outside said. In addition to workforce cuts in the Japan, cutting costs at its PC and home Hong Kong-listed Skyworth Digital lifestyle business, the company will appliances businesses and considering agreed to buy Toshiba Consumer Prod- reduce its corporate division by 1,000 alliances with third parties. ucts Indonesia for “adjusted consid- people and chip operations by 2,800 President Masashi Muromachi told eration” of $30.1mn, the Chinese TV workers. Toshiba had about 198,700 reporters yesterday the group con- maker said in a statement yesterday. employees as of March 31, the lowest siders listing its chip business as one Plans also include accounting train- since at least 2009, according to data option, and may also sell a stake in its ing, corporate governance reviews, compiled by Bloomberg. medical equipment unit. Toshiba has a management seminars and an evalu- The scale of the company’s projected 34% share of the global market for fl ash ation system for the president and ¥550bn loss is more than double total memory chips used in smartphones chief executive offi cer, according to the net income for the previous two dec- and mobile devices through its alliance statement yesterday. ades. with SanDisk Corp Muromachi is working with new “Not everything about Toshiba’s “Considering how bad things have management after former presidents lifestyle business is bad,” said Yasuaki gotten, this level of restructuring is Hisao Tanaka, Norio Sasaki and Atsu- Kogure, chief investment offi cer at SBI the least they can do,” said Mitsushige toshi Nishida resigned in July to take Asset Management Co “It’s just not Toshiba Corp president and CEO Masashi Muromachi (2nd right) leaves a news conference at the company headquarters in Akino, Tokyo-based executive offi cer responsibility for the accounting irreg- quite clear what the Toshiba brand will Tokyo yesterday. Muromachi told reporters the group considers listing its chip business as one option, and may also sell a at Ichiyoshi Asset Management Co, ularities. The company said it would stand for after this.” stake in its medical equipment unit. Gulf Times 14 Tuesday, December 22, 2015 BUSINESS

Indonesia says it will let private investors build oil refineries

Reuters Investors interested to build Jakarta oil refineries may ask for tax or non-tax incentives and the government will consider the Indonesia will let private inves- requests, he added. tors build oil refineries in a Pertamina currently operates regulation to be issued “in days”, four refineries and is working to its chief economics minister said upgrade one in Cilacap, Central yesterday. Java, partnering with Saudi Ara- The move will be the latest mco Saudi Aramco is also looking in a series to seek to restore for further investment opportuni- investment confidence and ties in downstream refining and revive growth in Southeast Asia’s petrochemical industry. largest economy. Cabinet Secretary Pramono In recent months, the govern- Anung said the government ment has announced measures aims to speed up the develop- including tax breaks and lower ment of refineries in Tuban, energy prices to try to stimulate East Java, and Bontang in East growth, this year at its slowest Kalimantan province. pace since 2009. Pertamina already announced “All this time, refinery projects that it was looking for a partner are always given to Pertamina or for a greenfield refinery project for Pertamina and its partners,” in Tuban and it will make a selec- Darmin Nasution, coordinating tion by January or February. minister for economics, told a Getting a refinery in Bontang press conference, referring to under way this year was a goal the state energy company. of President Joko Widodo, but it “In the future, we will open it hasn’t happened. The govern- for private investors, although ment has previous said it will the refined products must be off er such a refinery, with an sold to Pertamina to be distrib- expected investment value of uted to the whole of Indonesia.” 140tn rupiah ($10.17bn), under Nasution said as part of a public-private partnership the measures to take eff ect in scheme. January, Indonesia will bundle Also yesterday, the govern- a refinery project with a petro- ment said it plans to remove chemical plant to make it more import duty for spare-parts for A pedestrian walks past the People’s Bank of China (PBOC) headquarters in Beijing. China’s growth target this year was for a rate of about 7%. Even meeting that, the country commercially viable. airplanes, beginning in early 2016. would see its weakest expansion since 1990.

Alibaba hires ex-Apple China leaders signal more exec for anti-piracy fi ght

Bloomberg haven for knock-off s is becom- Hong Kong ing more important as billion- aire co-founder Jack Ma envi- stimulus after top meeting sions Alibaba getting at least half libaba Group Holding its revenue from overseas in a Bloomberg liams, the chief China economist est on excess bank reserves as a Work Conference pledges, as based China economist at Soci- named Matthew Bassiur, decade. The Hangzhou, China- Beijing at Capital Economics in London. fl oor for rates. outlined by Xinhua reports: Fur- ete Generale. “More fl exibility in Awho helped Apple root based company heads into 2016 “It’s clear that policy in a broad The PBOC recently surveyed ther steps to “guard against and monetary policy means further out fake iPhones and investi- after a bruising year that saw sense is still being eased, and it’s banks on the possibility and po- defuse fi nancial risks” in 2016, easing, even as a supplement to gate copyright infringement, to more than $50bn wiped from the hina’s leaders signalled reasonable to expect looser fi scal tential impact of removing its and to eff ectively defuse local- fi scal policy.” lead international eff orts to rid value of its US listed shares amid they will take further policy next year and also looser benchmark deposit and lend- government debt risks. Promote China’s government spend- its e-commerce platforms of lawsuits and criticism from Chi- Csteps to support growth, monetary policy.” ing rates, people familiar with “mass entrepreneurship and in- ing surged in November at more counterfeit goods. nese and US regulators. including widening the fi s- The growth target this year the matter said yesterday. The novation” and continue to im- than double the pace of gains for Bassiur, a former Pfi zer vice- The company was warned cal defi cit and stimulating the was for a rate of about 7%. Even survey won’t necessarily result plement an innovation-driven revenue, a signal the government president and computer crimes last week by the US Offi ce of the housing market, to put a fl oor meeting that, China would see in the immediate removal of strategy. Reduce poverty by es- has stepped up fi scal stimulus. prosecutor at the US Depart- Trade Representative that it had under the economy’s slowdown. its weakest expansion since benchmark rates, according to tablishing a detailed register of Fiscal spending jumped 25.9% ment of Justice, will oversee in- to do better to stay off the “No- Monetary policy must be 1990. the people, who asked not to be the poor population and off ering from a year earlier to 1.61tn yuan tellectual property protection at torious Markets” blacklist it es- more “fl exible” and fi scal policy Offi cials also pledged assist- identifi ed as the matter hasn’t tailored assistance. ($249bn), while revenue rose Alibaba from New York and work caped only in 2012. The federal more “forceful” as leaders cre- ance for rural residents seeking been made public yet. Off er more support for com- 11.4% to 1.11tn yuan, the fi nance with global brands to fi ght in- agency’s key areas of criticism ate “appropriate monetary con- to buy homes in urban areas and Communist Party offi cials in panies to upgrade technology ministry said in a statement last fringement starting January, the included a lack of transpar- ditions for structural reforms,” encouraged cheaper residential their look towards 2016 also af- and equipment, and reduce debt week. company said. ency and tardiness in addressing according to statements released prices, which would help shrink fi rmed they will step up supply- with “innovative fi nancial poli- Robust consumption and Shaking off its reputation as a problems. at the end of the government’s a glut of unsold properties. The side reforms such as dealing cies.” strength in services hasn’t Central Economic Work Confer- government will promote “con- with overcapacity, Xinhua said Beef up agricultural produc- proved enough to off set the drag ence by the offi cial Xinhua News solidation of property devel- yesterday. Top leaders explored tion to ensure food security and from slumping old-economy Agency yesterday. It said the fi s- opers” and encourage them to a major policy shift when they stable income growth for farm- sectors including steel, coal and cal defi cit ratio should be raised change marketing strategies, met in October to discuss a new ers by modernising infrastruc- cement. President Xi said No- gradually. Xinhua reported. Outdated re- fi ve-year economic plan, ac- ture and technology to boost vember 3 that average annual Nomura agrees to pay $1bn While the leadership also en- strictions on home ownership cording to an offi cial familiar capability and quality. growth must be no lower than dorsed structural reforms and will be removed, according to with the meeting. The case for additional stimu- 6.5% in the next fi ve years to for 41% of American Century reining in China’s increasing the report. Cutting costs for businesses lus has been strengthened by realize China’s goal of doubling reliance on credit, the macr- Monetary policy fl exibility has “will be a major task” next year capital outfl ows after an August 2010 output and per capita in- oeconomic policy statements been a theme in recent months and the government should currency devaluation, some come by 2020. Growth will slow Bloomberg based Nomura said yesterday. indicated concern about letting as China’s central bank moves streamline administrative pro- weaker-than-forecast economic to 6.9% this year and 6.5% next Tokyo Buying the stake would be the economy’s expansion slow toward creating what it calls an cedures, cut taxes and fees, and data and the aftermath of a stock year, according to the median of Nomura’s biggest overseas too much. The government’s interest-rate corridor to guide reduce social security contri- market slide that started in June. estimates Bloomberg surveys of investment since it acquired annual growth target is typically borrowing costs, away from the butions to help lower expenses, Infl ation data for November economists. omura Holdings, Ja- Instinet for $1.2bn in 2007. set at the gathering; President Xi old model of setting lending and according to Xinhua. Financial showed there’s scope for looser The latest round of economic pan’s biggest broker- The Japanese fi rm is seeking Jinping has said the nation must deposit rates directly. regulators should reduce fi nanc- monetary policy, with con- data showed signs the economy Nage, agreed to pay to expand its capabilities to meet a minimum pace of 6.5%. People’s Bank of China offi - ing costs for companies and help sumer prices rising about half is stabilising after policy mak- about $1bn for a 41% stake in sell products to pension funds “They have a challenge to re- cials including research bureau “normalise interest rates” to the government’s targeted pace ers unleashed several rounds of US money manager American and insurers, and enter private store their own credibility, and to chief economist Ma Jun have benefi t the economy. Authori- and producer prices falling for a monetary and fi scal stimulus. Century Investments. banking and retail markets in that end we’ll see concerted eas- mapped out such moves, in- ties also should consider lower record 45th straight month. Industrial output climbed 6.2% The purchase from Canadi- the US, chief executive offi cer ing eff orts in order to try to turn cluding setting the seven-day value-added taxes on manufac- “Expanding the fi scal defi cit in November from a year earlier, an Imperial Bank of Commerce Koji Nagai said in materials for the economy around, at least in Standing Lending Facility inter- turing, it said. ratio is the best choice avail- while retail sales gained 11.2% is expected to be completed in an investor presentation on De- the short term,” said Mark Wil- est rate as the ceiling and inter- Additional Central Economic able,” said Yao Wei, a Paris- for the best reading of 2015. the fi rst half of 2016, Tokyo- cember 1. ChemChina improves Syngenta bid in biggest China takeover

Bloomberg ed. The Swiss company is also would acquire Syngenta in two chemical assets from other com- London waiting to see if US peer Mon- stages. The Chinese fi rm has also panies, chief operating offi cer santo Co will make a counterof- discussed buying 100% of the Brett Begemann told reporters fer, the people said. Swiss company, and has suffi - last month. hina National Chemi- Speculation is mounting that cient fi nancing available, one of Buying Syngenta would trans- cal Corp raised its bid Syngenta will do a deal follow- the people said. form ChemChina into a maker Cfor Swiss pesticide and ing a merger agreement between ChemChina off ered about of genetically modifi ed seeds, seeds maker Syngenta AG in a Dow Chemical Co and DuPont 470 Swiss francs a share in cash putting it in competition with potential deal that would mark Co to create a company with for 70% of Syngenta, one of the Monsanto. Lack of seed technol- the biggest-ever purchase by a a market value of more than people said. At that price, the ogy is a key reason that China’s Chinese company, people with $100bn and the world’s largest company would have a market corn yields are half those in the knowledge of the matter said. agriculture business. That deal value of about 43.7bn francs US, said Jason Miner, an analyst ChemChina, as the state- may trigger a wave of consolida- ($44bn). ChemChina revised the at Bloomberg Intelligence. owned company is known, of- tion in the industry as competi- proposal after its previous cash ChemChina chairman Ren fered to buy 70% of Syngenta tors dash to reposition them- off er of 449 francs a share was Jianxin met with Syngenta in Eu- now, with an option to acquire selves. deemed too low. rope this month, people familiar the remaining 30%, people with “Pressure is mounting on Syngenta climbed 2.2% to with the matter said yesterday, knowledge of the matter said last management, with a takeo- 382.60 francs at 1:05 p.m. in Zu- to discuss a revised proposal. week. In addition to the two- ver becoming more likely,” said rich. The shares have risen 20% Spokesmen for Syngenta and step acquisition, the Chinese Christian Faitz, an analyst for this year. ChemChina didn’t respond to fi rm also made an alternative Kepler Cheuvreux. Syngenta is also holding in- requests for comment on the proposal to buy all of Syngenta, The two-step proposal would formal talks about a combina- raised off er. one of the people said. allow ChemChina to work with tion with Monsanto, almost A combination of ChemChina Basel-based Syngenta will Syngenta to integrate the two four months after rebuffi ng the and Syngenta would mean fewer hold a board meeting as early as businesses before assuming company’s $46.6bn takeover assets would have to be sold to this week to discuss the propos- complete control of the Swiss proposal, people familiar with satisfy antitrust regulators than als, the people said. While talks company, said the people. Dur- that situation have said. Mon- in a Monsanto-Syngenta deal, are advanced, no agreement ing the talks, ChemChina pro- santo is discussing internally because the Chinese company A woman uses her cellphone in front of a ChemChina signage in front of the company headquarters in has been reached and there’s no posed a number of similarly the merits of a new off er, as well only has a 5% market share, said Beijing. ChemChina has made a proposal to buy all of Syngenta, a source says. guarantee a deal will be complet- structured deals, whereby it as opportunities to acquire crop Kepler Cheuvreux’s Faitz. Gulf Times Tuesday, December 22, 2015 15 BUSINESS Azerbaijan cuts its currency loose, triggering 32% plunge

Reuters by more than two-thirds since mid- the manat to fall 33.5% against the fi nancial sector disruption or a pub- Baku 2014 and plumbed 11-year lows yes- dollar and 30% against the euro after lic backlash ahead of a parliamentary terday on renewed worries over a glo- abandoning a dollar peg and adopting election last month, which allies of bal oil glut. a dollar-euro basket to manage the ex- President Ilham Aliyev easily won. zerbaijan withdrew support for “The central bank has decided to change rate. “(This) has led to a great deal of its currency, the manat, yes- switch to a fl oating manat rate from Azerbaijan’s budget for 2016 is uncertainty about the economy and Aterday, triggering a plunge of December 21,” it said in a statement. based on an estimated oil price of $50 slowed investment,” Weafer told Reu- 32.3% against the dollar, after burning “The manat rate will be determined by per barrel, down from $90 this year. ters. “It has also been an expensive through over half its foreign currency supply and demand on the forex mar- Independent economic expert exercise in that the budget is likely to reserves to defend it against the eff ect ket.” Samir Aliyev said: “We may see an- have shifted from a small surplus in of falling oil prices. It said it was acting to preserve for- other devaluation, if the oil price falls 2014 to a defi cit close to 7% of GDP Baku’s decision followed similar eign currency reserves, which were further.” this year. That defi cit is mostly due to moves by crude exporters Russia and now at a “critical level”. On Novem- Vakhid Akhmedov, a member of the the delayed devaluation.” Kazakhstan and underscored the pres- ber 30, reserves stood at $6.2bn, down parliamentary economic policy com- Infl ation could now rise as imported sure that low prices are exerting on from $14.9bn a year earlier as a result mittee, told Reuters: “The manat has goods and services became costlier, he the public fi nances of oil-dependent of currency interventions. not yet found its bottom ... If the oil said, which in turn may force the cen- countries in the former Soviet Union. The bank said it had been forced price is much lower than $50 per barrel tral bank to raise interest rates to curb The manat was trading at 1.55 against to respond to an increase in negative for a long time, I don’t rule out that we infl ation and prevent capital outfl ows. the dollar yesterday, down 32.3% from external shocks and to protect the may revise the state budget.” Weafer said Turkmenistan may also Friday. economy’s competitiveness as well as Chris Weafer, a partner at the Mac- have to take similar action “very soon”, Oil and gas account for 95% of Azeri the balance of payments, noting that ro-Advisory consultancy, said col- for similar reasons. The offi cial dollar exports and 75% of government rev- many of Azerbaijan’s trading partners lapsing oil prices meant the decision to rate of the Kazakh currency, the tenge, enues, making the Caspian republic had devalued their currencies dra- let the manat fl oat was “long overdue”. which has also been allowed to fl oat, particularly vulnerable. matically. He said he thought Azeri authori- has plunged 12% this month alone, The price of Brent crude has fallen In February, the bank had allowed ties had delayed acting so as not to risk even as money market rates soared. The manat was trading at 1.55 against the dollar yesterday, down 32.3% from Friday.

Ericsson signs patent deal Portugal sells Banif to Santander with Apple Reuters Stockholm

Swedish mobile telecom gear as part of $2.39bn rescue plan maker Ericsson said it had signed a patent licence deal Second bank rescue in less than with Apple over technology that two years; cabinet meeting to helps smartphones and tablets define budget impact; Left Bloc connect to mobile networks, calls for central banker to resign; sending its shares up much market reaction muted as 8%. The deal ends a year-long Reuters dispute with Apple, one of the Lisbon biggest legal battles in mobile technology and Ericson said it would pave the way for coop- ortugal is to pay more than eration between the companies €2.2bn ($2.39bn) to rescue Banif on future technologies. Pin a deal which involves a sale of Ericsson had said in its the Madeira-based bank’s healthy as- filing to a US district court in sets to Spain’s Santander for €150mn. January that Apple’s licence to The government-backed bailout of use the technology devel- Banif (Banco Internacional do Fun- oped by the Swedish firm had chal) comes less than two years after expired, and that two years of the state paid out €4.9bn to rescue the negotiations had not led to a country’s then second largest bank new deal. Banco Espirito Santo. Ericsson yesterday estimated Banif had been unable to repay overall revenue from intellectu- €700mn provided by the government al property rights in 2015 would during Portugal’s economic crisis. The hit 13 to 14bn crowns ($1.52- state took a 60.5% stake in exchange $1.64bn) up from 9.9bn in 2014 for the cash and had been trying to sell as a result of the agreement. Banif before new European rules come An Apple spokesman in in on January1 which would impose Europe had no immediate com- losses on debt holders and depositors ment, referring to a January with more than €100,000 in the bank. statement by the firm where Prime Minister Antonio Costa, it said it had deep respect for whose Socialist government took over intellectual property and was earlier this month, said the costs of the willing to pay a fair price for resolution were “very high for taxpay- rights to patents. ers”, but this was the only solution to While Ericsson did not speci- safeguard depositors and fi nancial sta- fy exactly how much the Apple bility. deal would contribute to sales The cabinet was meeting yesterday and earnings, UBS analysts said to see how the costs would be refl ected in a research note it believed in this year’s budget and whether it the deal meant a catch-up might compromise Portugal’s eff orts payment of 3.6bn crowns for to cut its budget defi cit below the EU 2015, including a one-off sum threshold of 3%. of 0.5bn covering items such as “This resolution is not a major sys- legal fees. temic issue, but it does show how UBS estimated the agree- fragile the banking system and the ment would boost Ericsson’s economy still is in Portugal, where bad operating profit by 13% in 2015 loans have been rising,” Nicholas Spiro, and 10% in 2016, providing managing director at Spiro Sovereign 775mn crowns per quarter in Strategy in London, said. licensing fees. Portugal’s Left Bloc party, which Ericsson chief intellectual supports the minority Socialist gov- property off icer Kasim Alfalahi ernment in parliament, accused the A woman leaves the headquarters of Portuguese bank Banco Internacional do Funchal (Banif) in Lisbon yesterday. The government-backed bailout of Banif comes less said the agreement was broad, previous centre-right government of than two years after the state paid out €4.9bn to rescue the country’s then second largest bank Banco Espirito Santo. covering the latest 4G-LTE gen- hiding Banif’s problems to avoid an eration of mobile technology, impact on public accounts on its watch, liament. The party wants an investiga- protect Banif’s senior debt. Portugal’s all of Banif’s operations, except trou- formation about its sale. It has 150 as well as the earlier 2G and 3G and demanded the resignation of Bank tive committee be set up in parliament. Bank Resolution Fund, to which all bled assets which will be transferred to branches across Portugal. technologies. of Portugal Governor Carlos Costa. No one was immediately available to fi nancial institutions working in Por- a special vehicle. The rest of Banif is to Markets reacted calmly. Portuguese “It means we can continue to “The Bank of Portugal has once comment at the Bank of Portugal. tugal have to contribute, will provide be wound down, including equity and government bond yields were slightly work with Apple in areas such again failed to live up to its responsibil- The Bank of Portugal said earlier €489mn, while the remaining nearly subordinated debt. higher in line with European peers in as 5G radio network and optimi- ities. We believe that Gov. Carlos Costa that the deal had been agreed with €1.77bn would come directly from Banif has a market capitalisation of response to a fragmented result in the sation of the network,” Alfalahi does not have the minimum conditions European authorities and involved an state coff ers. €91mn and had deposits of €6bn at Spanish national elections on Sunday. told Reuters, but declined to to stay in his position,” Mariana Morta- injection of €2.2bn “to cover future Santander Totta, the Portuguese the end of September. Its shares were Portuguese banking shares were provide further financial details. gua, a senior Left Bloc member of par- contingencies”. It said it would also business of Santander, will take over suspended last Thursday pending in- mixed. Glencore credit alarm is easing after deeper debt target

Bloomberg this week upgraded the Swiss com- to scale back operations, reduce costs Glencore had a $15bn shortfall in its three-day climb which was the longest mining business, he said. The new debt London modity trader and miner to outperform and sell more assets. JPMorgan expects balance sheet that it needed to plug to winning streak since early November, program benefi ts investors because on the strength of the revised plan. the company to exceed its asset sale retain its current rating next year. He according to data compiled by Bloomb- it reduces the prospect of Glencore “At spot prices, I think that they will target of $3bn to $4bn. now forecasts the shortfall is less than erg. Its €1.25bn of 5.25% notes due in needing to raise funding through an- nvestors are signalling they’re more be able to stay investment-grade with Glencore has already completed $1bn. March 2017 were also little changed other share sale that dilutes holdings, optimistic that Glencore, which the measures they announced,” said $8.7bn of its revised $13bn plan to cut “After revising our estimates, we be- at 98¢ after a third consecutive day of O’Kane said. The company, which sold Iholds the most debt in the min- Max Mihm, a portfolio manager at Un- borrowings. A company spokesman lieve that Glencore’s credit metrics now gains. $10bn of shares in an initial public of- ing industry, will be able to retain its ion Investment, which holds Glencore declined to comment. fall comfortably within S&P’s BBB band Glencore shares rallied as much as fering in 2011, also sold $2.5bn of new investment-grade credit rating. bonds among assets totalling about A gauge of six main metals has on spot prices, without the need for 14% on December 10, the day the debt stock in September to help pay down The company pledged last week to $271bn. “If commodity prices continue plunged 27% this year and the wider any additional debt reduction or cost- plan was announced. The company said debt. cut borrowings by $12bn by the end of to fall, they again have to do more. But Bloomberg Commodity Index is near saving measures,” Alon Olsha, an ana- it’s able to remain “comfortably” free- “Investors in general do think Glen- next year, expanding on its previous from the investor call, I understand a 16-year low, eroding profi ts for the lyst at Macquarie Group Ltd in London, cash fl ow positive, even if commodity core will retain its investment-grade target. Credit-default swaps insuring that they are ready to do so.” largest producers. Raw materials have said in a December 11 note. prices decline further. It has more than rating,” said Saida Eggerstedt, a mon- Glencore’s debt for fi ve years fell the Glasenberg, a former accountant slid as China’s slowdown curbed de- The mining company is currently $2bn of free cash fl ow at current levels ey manager who helps oversee about past three days after reaching the high- turned coal trader, used an investor call mand after years of heavy investment rated two notches above junk at S&P. and predicted earnings before interest, €29bn of corporate bonds at Deka In- est since 2009. last week to reassure shareholders the in new production. Glencore stock Glencore has said it wants to increase tax, depreciation and amortisation of vestment GmbH in Frankfurt. “They Where once there was scepticism, balance sheet can withstand a slump plunged 29% in a single day in Septem- its credit rating by one level to BBB+. $7.7bn for next year. have trusted Glencore over the years analysts and investors are now more in metals that’s forced the top miners ber on concern about its debt load. Credit-default swaps insuring Glen- Based on that guidance, Glencore with its last-minute balance sheet fi xes optimistic that chief executive offi cer to restructure businesses and led most, The shares advanced as much as core debt for fi ve years have fallen to would generate more free cash fl ow and their eye for being savvy in their in- Ivan Glasenberg’s aggressive approach including Glencore, to scrap dividends. 3.4% in London on Friday and were up 806 basis points, according to S&P than any other major miner next year, vestments.” to the protecting the company’s bal- With copper prices below what 0.9% at 81.58 pence by 9:14am local Capital IQ’s CMA. Macquarie’s Olsha said. The compa- Peter Grauer, the chairman of ance sheet will help it weather the worst Standard & Poor’s uses to asses Glen- time. The stock is down 72% this year. Glencore’s €1.25bn of 1.25% bonds ny’s trading division provides the bulk Bloomberg, the parent of Bloomberg commodities since the global fi nancial core’s BBB rating, the second-lowest Before the revised plan, JPMorgan maturing in March 2021 were little of the contribution, given it doesn’t News, is a senior independent non- crisis in 2008. JPMorgan Chase & Co investment grade, the CEO also pledged analyst Dominic O’Kane estimated changed at 73.2¢ on Friday, ending a need to invest as much capital as the executive director at Glencore. Tuesday, December 22, 2015 GULF TIMES BUSINESS

COMMENTARY Fed interest rates after the lift-off

After seven years of near-zero interest expects headline inflation to rise as the turn out to be a mistake with the benefit than markets expect. There is a risk rates, the US Federal Reserve (Fed) has eff ect of low oil prices drops out of the of hindsight. that the second scenario may actually decided to raise rates by 25 basis points. year-on-year calculations. The first scenario is that the rate in- materialise for two reasons. The event was long-awaited and largely More importantly, the Fed believes crease will directly lead to a derailing of First, in the previous three US tight- expected by financial markets, which that the tight labour market will eventu- the recovery in the US economy. Higher ening cycles, markets underestimated seem to have taken the increase in their ally lift inflation through higher wages. interest rates will increase borrowing the speed at which the Fed tightened stride. But we have long argued that the And while wage growth has picked up costs for investment and will make sav- interest rates. They could repeat that future path of interest rates is more im- in recent months, confirming the Fed’s ing more attractive relative to consump- this time around. portant than individual rate hikes. And theory, it is too early to judge whether tion. Both could lead to weaker domestic Second, there is already a gap be- on this, the Fed and financial markets this is a persistent trend or merely demand. tween the Fed’s forecasts for its interest have diff erent views. The Fed foresees short-term noise. In addition, higher interest rates rate path and markets expectations. The the speed of interest rate increases to The fact that the US has managed could increase the value of the US Fed expects to normalise interest rates at be four hikes per year, while financial to exit the era of zero interest rates is dollar, hurting exports. While the Fed a speed of four 25 basis point increases markets expect a slower tightening credit to the Fed, which expertly man- acknowledges these risks, it believes each year, but financial markets are only cycle at the rate of two hikes per year. aged monetary policy in the aftermath in the underlying strength of the US pricing in two per year (see chart). This How these two diff ering views eventu- of the financial crisis in 2008 using economy, given the healthy state of creates space for potential corrections in ally converge will matter a great deal both conventional and unconventional private consumption and the recovery financial markets. for the global economy and financial tools. In the depth of the crisis, many — in the housing market. In any case, we So far, the reaction from financial markets. influenced by the experience of Japan have to wait for incoming data to see if markets has been muted. The first rate Why did the Fed raise interest rates? — thought that once a country enters this scenario actually occurs. hike was largely priced in by market The main reason is the improvement in the state of zero interest rates, it gets The second scenario is that the Fed participants, and financial markets the labour market, indicated by an un- stuck there forever. Some countries rate hike will result in a violent reaction seemed to have taken it in their stride. employment rate of 5%, close to where (such as the Euro area and Sweden) did in financial markets. This could lead to But the issue of how the diverging views the Fed estimates equilibrium unemploy- increase interest rates post-2008, only capital flight (especially from emerg- between the Fed and financial markets ment to be (4.9%). to realise that this was a policy mistake, ing markets), tighter global monetary is eventually resolved could become The rapid fall in unemployment reversing their decision and ending up policy, weaker global growth, which the focus of market observers going since it peaked at 10% in October 2009 with lower and even negative interest could spill over to the US economy forward. convinced the Fed that it was appropri- rates. And while the Fed’s decision now through trade and financial linkages. Now that the question of when the Fed ate to act despite subdued inflation looks appropriate, one can envisage two This scenario could unfold as the Fed was going to raise rates has been finally (0.2% year-on-year in October). The Fed scenarios in which the Fed rate hike may increases interest rates at a faster rate resolved, the next question is how fast.

Al Khaliji appoints Qatar Airways Cargo to al-Emadi as head of corporate banking

l Khaliji has appointed launch freighter route Omar al-Emadi as head Aof corporate banking. Al-Emadi will be working closely with Al Khaliji’s vari- ous business lines to grow and identify new avenues for the bank’s corporate vertical, port- to Dallas/Fort Worth folio and client base growth and diversifi cation. atar Airways Cargo will market for Qatar Airways Cargo He has wide experience in launch a new freighter and Dallas/Fort Worth is strategi- the banking sector as he started Qroute to Dallas/Fort Worth cally well placed to give us further out his career in 1998 at the from January 19, increasing its reach into the region.” Commercial Bank. The latest network to six freighter destina- “We are proud to welcome position he took over was as as- tions in the Americas. Qatar Airways Cargo, one of the sistant general manager, with A Qatar Airways Cargo Boeing world’s largest and fastest grow- the role of head of government Al-Emadi: Wide experience. 777F will fl y two times a week to ing cargo carriers, to Dallas/Fort and public sector division. Dallas from Liege. Worth Airport,” said John Acker- The announcement comes mitted our efforts to growing In total, Qatar Airways Cargo man, executive vice-president in line with the bank’s strategic a solid pool of Qatari talents provides service to some 13 des- (Global Strategy and Develop- focus on empowering Qatari and leadership. It is a stra- tinations in the Americas, with ment) for Dallas/Fort Worth Air- leadership across its network of tegic focus that we are confi- additional upload provided in the port. operations, in line with the Qa- dent will transform our future belly hold of the airline’s com- “This addition to our air car- tar National Vision 2030. as a group,” Al Khaliji’s Group mercial aircraft. go network is a refl ection of the “Across our departments chief executive Fahad al-Kha- The new dedicated freighter strength of the Dallas/Fort Worth and operations, we have com- lifa said. service to Dallas will increase the market. Cargo and logistics is a 400 tonnes of export cargo capac- strategic priority, and will con- ity a month, currently transported tinue to help our Airport grow and as belly hold cargo on Qatar Air- create economic benefi ts for the ways’ passenger services, to 1,000 Dallas/Fort Worth region.” tonnes of exports a month. Import Qatar Airways Cargo will pro- QIB launches capacity into Dallas will increase vide the principal industries, to a total of 300 tonnes per month. which include defence, fi nancial “We are delighted to start 2016 services, information technology with the addition of Dallas/Fort and data, life sciences, semicon- ‘Qatar’s first’ Worth to our network. This is just ductors, telecommunications, the beginning of our expansion transportation, and processing, plans for this year, which will see in the Dallas/Fort Worth area certificates both our network and our fl eet with convenient import and ex- growing in size and strength,” said port opportunities, connecting Ulrich Ogiermann, Qatar Airways them with more than 150 des- chief offi cer (Cargo). tinations on the Qatar Airways In total, Qatar Airways Cargo provides service to some 13 destinations in the Americas, with additional of deposit “The US is a very important global network. upload provided in the belly hold of the airline’s commercial aircraft.

QIB has launched its first they are none tradable and series of ‘certificates of none transferrable. deposit’, which the bank said “One remarkable benefit of is a “first of its kind in Qatar”. this exceptional QIB off er is The bank’s certificates of that it provides customers Qapco wins Emirates Energy Award deposit will be available for with the opportunity to grow individuals and corporate their funds safely throughout customers in Qatari riyal and the duration of the certificates. atar Petrochemical Company has plex consumption of 20.8mn gigajoules a dollar for diff erent tenors of The first series of certificates achieved signifi cant progress in its year. two, three and five years. of deposit is for a limited Qenvironmental performance since “Plus, the lower fi ring requirements of “Certificates of deposit are period, other series may be 2011 thanks to “strategic investments in the new furnaces generate 58mn tonne/ developed to encourage issued in future,” QIB said. highly effi cient machinery” and its com- year less Co2, and the improved burner customers to make long-term QIB Group CEO Bassel Gamal mitment to “sustainability”, Qapco man- design generates about 253t/ year less saving and get attractive said, “We are proud to be aging director and CEO Dr Mohamed NOx. I thank all the teams who contrib- annual profit based on the the first bank in Qatar, which Youssef al-Mulla has said. uted towards this project and outstanding certificate’s maturity and launches the certificates of This has resulted in a 57% reduction in performance”. selected currency,” QIB said. deposit for individual and fl aring, 30% reduction in nitrogen oxide The Emirates Energy Awards is bian- The certificates of deposit’ corporate customers. This is (NOx) intensity, 19% reduction in green- nually organised under the patronage of annual profit in Qatari riyal is part of our on-going eff orts to house gas (GHG) intensity and a 34% re- Sheikh Mohamed bin Rashid al-Maktoum, expected to be 3.5% for five provide our customers with duction in energy intensity, he said, in the Vice-President and Prime Minister of the years, 3.25% for three years new and innovative Shariah- context of Qapco receiving the Emirates United Arab Emirates and Ruler of Dubai. and 2.75% for two years. compliant products that will Energy Award (EEA) for energy effi ciency The award aims to highlight best prac- As for the certificates of enable them to grow their in the public sector category. tices and pioneering work in energy ef- deposit in dollars, the money safely while getting Qapco was awarded for its accomplish- fi ciency, alternative energy, sustainability expected annual profit is 2.75% profits distributed every three ments in energy effi ciency, achieved in and the protection of the environment. As for five years, 2.25% for three months”. particular through upgrade of its cracking many as 112 innovative projects from some years and 1.75% for two years. “We have tried through furnaces. 12 countries, including the UAE, Saudi Certificates of deposit are these certificates of deposit With the “successful completion” of Arabia, Bahrain, Oman, Qatar, Morocco, fully Shariah-compliant to satisfy all segments of the furnaces replacement project, Qapco Kuwait, Jordan, Egypt, Iran, India, and and profits incurred will be individuals and corporate, improved its operational effi ciency and Germany, were assessed for the 2015 edi- distributed to customers current and prospective realised signifi cant energy savings, in- tion of the EEA held under the theme “For every quarter. The deposit customers by presenting cluding reductions in energy consump- a sustainable future”. holder is also able to apply various options in respect tion along with major decreases in nitro- During the ceremony held in Dubai, for financing up to 95% of of the certificates’ currency gen oxide (NOx) emissions, sulfur oxides Saeed Mohamed al-Tayer, vice-chairman the certificate of deposit and maturity period, allowing emissions (SOx) and general emissions. of Dubai Supreme Council of Energy said, amount, with financing tenor clients to choose the type Al-Mulla said, “Our teams have been An aerial view of the Qapco plant at Mesaieed. Qapco won the Emirates Energy Award “EEA is considered a global platform for equivalent to the certificate which meets their personal focusing on realising energy effi ciency (EEA) for its accomplishments in energy eff iciency, achieved in particular through organisations and individuals as it fo- maturity. needs or supports their gains, as we believe resource optimisation upgrade of its cracking furnaces. cuses on supporting international eff orts The minimum subscription businesses. They may also is essential, now more than ever. We are aiming to fi nd innovative and sustainable in the certificate of deposit is get finance backed by the thrilled to have received this prestigious our furnaces replacement project was a ever before and paving the way for a new solutions for energy availability and ef- QR100,000 or $25,000, with certificates’ value without the award, which epitomises our commitment signifi cant milestone for our operations. era of operational excellence.” fi ciency, environmental pollution, global no maximum amount. The need to break the certificates to sustainability”. Rigorous management and oversight of “With our furnaces replacement, Qap- warming, CO2 emission and lack of natu- certificates of deposit are in case the client needs cash On the award, Yousuf Abdulla Rebeeh, our environmental impact is fundamental co reduced its total energy consumption ral resources, which are the most impor- cashable at any QIB counter for any emergency” Gamal Qapco’s chief operations offi cer, said: to our ability to operate responsibly. Our by 2.1mn gigajoules a year (GJ/y), com- tant and urgent issues that humanity faces to its holder exclusively and added. “The safe and successful completion of facilities are now more sustainable than pared to the overall petrochemical com- nowadays.”