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Tuesday, June 14, 2016 Ramadan 9, 1437 AH

MOTC REPORT: Page 16 GULF TIMES High ICT penetration in Qatar indicates BUSINESS growth potential QP seen keeping robust New rating, accreditation financial profile despite lower crude oil prices

By Santhosh V Perumal For the Barzan gas project, a programme to benefi t Business Reporter $10.4bn financing (including equity) was secured in December 2011. LNG (liquefied natural gas) Qatar Petroleum (QP), whose projects were developed via breakeven prices on most of its the RasGas and Qatargas joint projects are considerably lower ventures, with a combined annual than in most other hydrocarbon production capacity of 77mn Qatar SMEs: QDB offi cial producing countries, is expected to tonnes. show “robust” financial profile as Additional projects aimed at By Peter Alagos its depth and quality of cash flows diversifying Qatar’s customer base Business Reporter enable financial flexibility even in from the North Field included the case of low sustained oil price Dolphin Energy; the Pearl GTL levels, according to Moody’s, a (gas-to-liquids) project; Al Khaleej atar Development Bank global credit rating agency. gas project, the second phase of (QDB) has launched a new Despite the negative impact of which was inaugurated in May Qprogramme that exempts the plunge in oil and gas prices 2010; a second condensate refinery small and medium-sized enterprises since the second half of 2014 on its at Ras Laffan as well as other (SMEs) from tender bond fees, and revenue and cash flow generation, large industrial ventures operated provides local companies access to QP continues to have a very solid under the 51%-owned Industries government projects and contracts. financial profile supported by a net Qatar and 74%-owned Mesaieed QDB’s new “SME Rating & Ac- cash position as of year-end 2014 Petrochemical Holding Company creditation Programme” (SRA), which and the delay in capex (capital that utilises ethane, ethylene and was launched yesterday, is “a holistic expenditure) and the reduction of natural gas as feedstock. analysis” that aims to help entrepre- operating expenses over the past Finding that QP has the most neurs and SMEs “capitalise on con- 18 months to increase operational central role in developing Qatar’s tracting opportunities and improve efficiencies, the rating agency said economy, which is largely planned business processes,” according to ex- in a report. around gas and liquid exports from ecutive director of advisory services “We expect QP to continue to show offshore North Field, Moody’s said Hamad Khamis al-Kubaisi. robust financial profile and we as the hydrocarbon behemoth The SRA, al-Kubaisi said, “reinforc- note that the depth and quality of channels investments into its large- es the performance” of SMEs through QP’s cash flows enable financial scale oil and gas development, evaluation and analysis “to give com- flexibility even in the case of low downstream projects and other panies an edge when availing an SME sustained oil price levels in line industrial ventures, its share of Tender Bond Exemption Service.” with our assumptions (Brent at overall gross domestic product is He explained that the exemption $33 for a barrel in 2016 and $38 in likely to remain “substantial”, going service off ers three benefi ts to SMEs: 2017),” it said. forward. Tender bid bond exemption, per- QP holds a cash call account QP’s fundamental creditworthiness formance bond exemption, and ad- Al-Kubaisi (right) and QDB business localisation support manager Badar Shaheen al-Kuwari addressing a press with the Ministry of Finance, is supported by the significant vance payment guarantee exemption. conference yesterday. PICTURE: Jayan Orma which enables it to both obtain scale associated to the company’s “As per new tender law, SMEs can from and provide liquidity to the oil and gas reserves (world’s third be waived-off from producing these knowledge-based economy to achieve ing to al-Kubaisi, include probabil- and market potential. The rating government, Moody’s noted. largest gas reserves at December three types of bonds and guarantee the Qatar National Vision 2030.” ity of higher tolerance advantage for process would include submission of Finding that capex is supported by 31, 2014); its low re-investment documents. To avail of this benefi t, The SRA, which will be valid for pricing bids, automatic pre-quali- data by the applicant followed by the QP’s “extremely” resilient financial risk thus constitutes an important it is mandatory for all SMEs to pass only one year, will be conducted by fi cation registration within buyer’s site visit and detailed interaction with profile; the rating agency said QP driver of QP’s ratings; and the low- through the rating and accreditation an independent third party certifi - vendor lists, signifi cant weight at- management. The cost of ratings will is nearing the completion of an cost nature of its operations and programme,” al-Kubaisi further said. cation issued by QDB, and is open to tached (20% to 25%) within the buy- be subsidised for active Qatari-man- ambitious expansion programme strong operating efficiency. Citing Law No 24 of 2015 (a law approximately 600 SMEs registered er’s bidding evaluation framework to aged businesses. to exploit the vast North Field while Although the ratings are regulating tenders and auctions), al- in the QDB database, al-Kubaisi said. the rating/accreditation score, and “We look forward to enhancing optimising crude production from constrained by commodity price Kubaisi said QDB “has taken the ini- “Through the rating process, SMEs reduce processing time of loan ap- local SMEs business capabilities to largely mature fields. risks inherent with the oil and tiative to localise the supply chain to will also be able to understand in- provals, among others. secure more contracts with local pro- The North Field programme gas industry and to which QP’s support local SMEs through the SRA ternal gaps and challenges related to “Using our ‘One-Stop Shop’ or curers. These services will assist in- completed with the commissioning revenues are highly exposed, and Tender Bond Exemption Service their business and institute required through the QDB website, SMEs ap- dustries to fi ll business and fi nancial of the Barzan gas project in 2016, Moody’s, however, said, “We believe to reduce Qatar’s ‘value leakage’ and improvements and interventions to plying for the SRA will undergo a gaps, and increase ability to compete after which a moratorium on that QP’s breakeven prices on most progress towards sustainable indus- enhance their business performance, comprehensive assessment on all with key market players in the long further development of new fields of its projects are considerably trial development approach, which which is supported by QDB through a aspects of the business, including fi - run. To avail these benefi ts SMEs can or new projects is in place (first lower than in most other oil and will enable SMEs to enhance their suite of programmes,” he said. nancial performance, quality of man- contact Business Localisation De- announced in 2005). gas producing countries.” capabilities and assist in building a Other benefi ts of the SRA, accord- agement, business model effi ciency, partment of QDB,” al-Kubaisi said.

Opec points to oil demand exceeding its production for first time in 3 years Qatar hydrocarbon growth to

Reuters “Nevertheless, London there is still a massive be ‘relatively elevated’ in 2016 global supply Opec forecast yesterday that the world oil overhang.” market will be more balanced in the second In Monday’s By Pratap John erate acceleration in economic half of 2016 as outages in Nigeria and Canada report, Opec Chief Business Reporter expansion from 2017, as global help to speed up the erosion of a supply glut. said its oil hydrocarbon prices edge up. In a monthly report, the Organisation of the Opec said its current output fell “We forecast Brent to average Petroleum Exporting Countries said its current output is lower than the 100,000 bpd atar’s hydrocarbon $46.5/b in 2016, $57/b in 2017 production is lower than the average forecast average forecast demand to 32.36mn growth will be “rela- and $68/b in 2018, compared to demand for its crude in the second half of 2016. for its crude in the bpd in May. Qtively elevated” in 2016 $55.17/b in 2015. The country’s The last full quarter when Opec pumped second half of 2016 That is compared to the next fi ve years, growth trajectory will follow a less than demand for its crude was in 2013, 500,000 bpd as phases one and two of the similar pattern, and we forecast according to past Opec reports. less than Opec’s forecast of the demand for its $10.3bn Barzan gas projects are real GDP growth of 4.4% in 2016 Oil has risen to $50 a barrel from a 12-year low crude in the third quarter, and 160,000 bpd being fi nalised, BMI Research has and 4.8% in 2017, compared to of $27 in January as the outages curb excess below the average of expected demand for said in a new report. an estimated 5.5% in 2015,” BMI supply. Opec crude in the second half. The Fitch Group company said. It believes that Qatar’s These, say Opec, are accelerating a tightening That points to a tighter market than in the first forecasts Qatar’s hydrocarbon massive infrastructure projects in the market it expected to happen anyway, as quarter of this year, when Opec said its output production growth to “remain in preparation for the FIFA 2022 lower prices finally take their toll on higher-cost exceeded the demand for its crude by 2.59mn fl at” over the coming years. World Cup will remain over supply outside the group. bpd and prices hit the 12-year low. As a result, headline growth the coming years. As a result, “The excess supply in the market is likely to The price drop is hitting non-Opec supply as will not benefi t from a similar “growth fi xed capital formation” ease over the coming quarters,” Opec said in companies have delayed or cancelled projects boost the hydrocarbon sector will remain the main driver of the the report, resulting in “a more balanced oil around the world. provided between 2003 and 2012 country’s headline growth, even market toward the end of the year.” Opec forecasts supply from outside producers (when total hydrocarbon produc- as cuts are made in non-FIFA re- Prices collapsed from $100 two years ago in a will decline by 740,000 bpd in 2016 led by the tion real growth averaged 13%). lated projects. drop that deepened after Opec refused to cut US, unchanged from last month. “Indeed, with oil and gas pric- Qatar’s Public Works Au- output, hoping lower prices would curb rival Opec supply had been climbing since the es set to remain relatively low thority’s (Ashghal) total 2016 supply. 2014 policy shift, reaching its highest since over the next decade,” BMI ex- confi dence, domestic liquidity, blip in real hydrocarbon growth budget is estimated to amount With signs the strategy is working, Opec at a 2008 in April. The output drop in May was led pects to see “less investment” in and government spending. Nev- – as phases one and two of the to between QR15bn and QR17bn, June 2 meeting made no change to its output by Nigeria, the report said, citing secondary the hydrocarbon industry than in ertheless, BMI said “Qatar will Barzan gas project are fi nal- which BMI says is lower than the policy. sources. the previous years. withstand the ongoing slump ised – will ensure that Qatar’s previous estimates. Attacks on Nigeria’s oil industry, wildfires in Opec stuck with a forecast that world oil In BMI’s view, Qatar, like in the oil market better than its economic growth trajectory re- In May, Ashghal announced Canada and losses elsewhere pushed the level demand will rise by 1.2mn bpd this year. other GCC (Gulf Cooperation neighbours,” on the back of on- mains “well above” that of other that it would award contracts for of unplanned supply outages to the highest in The next closely watched report on global Council) states, has entered a going “massive investments” in GCC states. the construction of only three at least five years in May. oil supply and demand is today from the “protracted period” of slower infrastructure projects for the BMI expects 2016 to mark the healthcare centres, compared But inventories are high and Opec cautioned, International Energy Agency. economic growth, as low hydro- FIFA 2022 World Cup. bottom for Qatar’s real economic to the seven that had previously carbon prices impact business This, along with a temporary growth slowdown, and see mod- been planned, BMI said. Gulf Times 2 Tuesday, June 14, 2016 BUSINESS

Saudi keeps its May oil output ‘steady at 10.27mn bpd’ ‘Qatar to cut

Reuters Reuters yesterday. told Reuters in April that the The kingdom pumped 10.56mn of now-ended Western sanctions month in an attempt to repair Dubai This compares with 10.262mn in kingdom’s oil output may edge bpd, a record, in June last year. over Iran’s nuclear programme. the exporting group’s waning condensate April, according to Opec. up close to record highs during Riyadh eff ectively scuppered This raised fears that failure to importance and mend fences But crude supplied to the the hot summer months to meet plans for a global production reach any deal would prompt within the organisation. Saudi Arabia has kept its crude market in May was higher than domestic power demand but is freeze aimed at stabilising oil Saudi Arabia, Opec’s largest The June 2 meeting ended with exports in oil production steady in May, a production at 10.450mn bpd, the unlikely to be pushed to the limit. markets in April. producer, already pumping near no new policy or ceiling amid sign that the world’s biggest oil source said. The sources said production It said then that it would join record highs, to raise production resistance from Iran. exporter does not plan to flood Supply to the market, both would likely stay at 10.2mn- the deal, which would also have further to punish rivals and gain Despite the setback, Saudi January’ the market to gain more market domestically and for export, 10.3mn bpd and could rise by involved non-Opec Russia, only additional market share. Arabia, led by its new Energy share. may diff er from production some 200,000-300,000 bpd if Iran agreed to freeze output. But in a shift in oil thinking, Saudi Minister Khalid al-Falih, showed Saudi Arabia’s crude oil depending on the movement of in the hot summer months to Tehran argues it should be Arabia and other Gulf producers it wanted to be more conciliatory Reuters production in May was 10.270mn oil in and out of storage. around 10.5mn bpd, if there was allowed to raise production to had tried to propose Opec set a with Tehran and promised not to Doha bpd, an industry source told Saudi-based industry sources demand for it. levels seen before the imposition new collective ceiling earlier this flood the oil market.

atar will reduce its con- densate exports by a third Qin January 2017 when a new splitter at its Ras Laff an re- fi nery starts operating, a Qatar- gas offi cial told Reuters on Mon- day. “Qatar is exporting around 30 cargoes (of condensate) a month. This will be reduced by 10 car- goes a month starting January,” said the offi cial, who declined to be named. Condensate is a type of light crude oil produced in associa- tion with natural gas and can be split into various fuel products including naphtha, which is used to make gasoline or dilute heavy crude, for export or to sell do- mestically. Qatari condensate exports have faced competition from US and Iranian light oil shipments but the new splitter should help the Gulf nation soak up some of its condensate at home. The Qatargas offi cial said the completion date of the splitter would depend on the progress of tests now being run on new equipment and that some “tech- nical diffi culties” had been faced at Qatar’s fi rst condensate refi n- ery, Laff an 1, which started pro- duction in September 2009. Last week a Qatar Petroleum offi cial told Reuters that trials on the new splitter would begin in August.

QIA said to weigh loan of up to $2bn for Singapore Tower

Bloomberg Dubai Luxury residential properties by real estate developer Nakheel sit on the Palm Jumeirah fronds in Dubai. Home rents fell by 1.3% in May, the biggest drop since May 2014 and the decline signals further weakness in rents and prices ahead, according to Jesse Downs, managing director at Phidar, an advisory firm specialising in real estate. The Qatar Investment Authority has approached banks for a loan of as much as $2bn to finance its acquisition of Black- Rock Inc’s Asia Square Tower 1, according to three people with knowledge of the matter. The sovereign wealth fund Dubai home rents plunge most has held preliminary talks with banks to borrow between $1.5bn and $2bn, the people said, ask- ing not to be identified because the information is private. Talks with potential lenders are at an early stage and the QIA has not since 2014 as oil rout hits jobs finalised the timeline for the bor- rowing, they said. Rents, prices to drop further of two years ago, according to interview on Sunday. Since the city until the end of school year, spend improved in May com- sharp decline in oil, Shuaa’s The QIA announced an agree- in summer, Phidar Advisory Phidar Advisory. peak, home rents have fallen she said. pared with previous months, Yahya said. Dubai’s currency, ment to purchase the off ice says; Dubai economy, “Landlords are fi nding it at a compound monthly rate of “I’d be surprised if rents employment growth was mod- the UAE dirham, is pegged to the tower from BlackRock last week confidence improving, more diffi cult to rent homes, 0.3%. dropped by 10% to 15% between est, according to an Emirates dollar. for S$3.4bn ($2.5bn), the biggest Emirates NBD tracker shows especially larger and more ex- The decline signals further now and September, as that NBD Dubai Economy Tracker The bottom limits of asked off ice transaction in Singapore. pensive ones,” according to weakness in rents and prices would suggest the impact of job Index published on June 9. Firms residential rents dropped by BlackRock, the world’s largest Bloomberg Jesse Downs, managing director ahead, Downs said. Dubai is ex- cuts in Dubai was more aggres- continued to cut prices to secure 4.1% by the beginning of June asset manager, had to settle Dubai at Phidar, an advisory fi rm spe- periencing a delayed economic sive that we thought,” said Asjad new work even as costs rose, compared to the same week in for a lower price than it had cialising in real estate. That is impact to the collapse in oil Yahya, the Dubai-based head of putting profi t margins under the previous month, according originally anticipated for the mostly due to “recent job losses prices that has led some compa- research at Shuaa Capital. Rents pressure, according to the re- to Phidar. 43-story tower as rents in the esidential rents in Dubai, and a decline in job-growth nies to reduce spending and trim will probably drop another 5% port. “This is a signifi cant shift in city state decline amid slowing where the majority of the rates.” their workforce. Many of those over the summer months, he Home rents and prices could rent trends and is an indicator economic growth and rising Rpopulation is foreign, de- Home rents fell by 1.3% in who lost their jobs, such as some said. start rising in the fourth quarter the housing market is about to supply. Tenants include Citi- clined the most on a monthly May, the biggest drop since May banking and oil services em- While confi dence in the econ- if there isn’t a sudden spike in get signifi cantly more aff ord- group Inc and KKR & Co. basis since the property peak 2014, Downs said in a phone ployees, chose to remain in the omy and clients’ willingness to the US dollar’s value or another able,” Lebanese banks say Beirut bomb attack targets them all

Banks say attack targets whole Blom Bank, one of Lebanon’s big- armed wing that is fi ghting in Syria In an interview with CNBC last sector; bombing follows closure gest banks, has closed more accounts in support of President Bashar al- week, Salameh said the central bank of accounts seen as than other banks as a result of the Assad. was making sure banks had really Hezbollah-linked; Hezbollah legislation, Lebanese offi cials say. Though analysts say Hezbollah studied account activity before any condemns move linked to US law Hospitals are among social institu- itself can operate without bank ac- decisions are taken. “The law is being tions deemed to be linked to Hez- counts, the situation is seen as car- implemented,” he said. Reuters bollah that have had their accounts rying a political cost as it aff ects its Defl ecting criticism, Blom Bank Beirut closed, sources familiar with the support base in the Shia community. said in a statement yesterday it “rep- matter say. “They won a military war, they resented all sections of Lebanese Societies affi liated to Hezbollah- won a political war, but they cannot society and its sects” in terms of its ebanese banks said yester- run hospitals, schools and social care win a fi nancial war,” said one Leba- account holders, shareholders and day that a bombing outside institutions and the group says the nese banker, discussing the matter on employees. Lthe headquarters of one of the measures are targeting the entire Shia condition of anonymity. “They have Parliament Speaker Nabih Berri, country’s biggest banks had targeted community. to fi nd ways to work in the shadows a Shia politician and Hezbollah ally, the entire sector, an attack seen as a “The Association of Banks con- but the problem is that whoever deals said the attack on Blom Bank had tar- dangerous escalation of a crisis over fi rms that it operates according to the with them will be under scrutiny.” geted “Lebanon fi rstly, and Hezbollah a US law targeting the fi nances of the highest levels of professional practice When the law fi rst came into ef- secondly”. Shia group Hezbollah. and within the rules prevailing in the fect, Lebanese banks began closing The banking sector is vitally im- The bombing outside the main Blom international markets,” the Asso- accounts, including of Hezbollah of- portant to Lebanon as a conduit for Bank building in Beirut on Sunday ciation of Banks in Lebanon said in fi cials, themselves. billions of dollars of annual remit- night, which caused damage but no a statement. “This explosion targets The central bank subsequently is- tances that keep its economy afl oat. fatalities, followed the closure of ac- the entire banking sector.” sued a directive requiring the banks The central bank is widely seen as counts considered to be linked to the The US Hezbollah International to refer accounts considered linked one of the only eff ective institutions group by banks afraid of being shut out Financing Prevention Act (HIFPA), to Hezbollah to an investigative unit in the weak Lebanese state. of the international fi nancial system. passed in December, threatens to before any measure is taken. Nabil Boumonsef, a commentator No one has claimed responsibility punish any organisation or person In a statement issued last week, with An-Nahar newspaper, said the for the attack. providing signifi cant fi nance to Hez- Hezbollah’s parliamentary bloc bombing meant the crisis had now Hezbollah, which has not com- bollah, designated a terrorist organi- stepped up its attack on central bank become a security issue. mented on the bombing, has con- sation by US law. governor Riad Salameh for “am- “Its danger is that it is connected A policeman stands guard as forensic inspectors examine the area at the site of an demned the central bank for imple- It poses an unprecedented fi nan- biguous and suspicious” statements, to the most important, and I can even explosion outside the headquarters of the Blom Bank in Beirut yesterday. The menting a law it views as a breach of cial challenge to the Iranian-backed and said Hezbollah’s education and say the last bastion of protection for bombing on Sunday night, which caused damage but no fatalities, followed the closure sovereignty. The banks say they have group that dominates Lebanon, its health institutions could not be un- Lebanon’s social, political and eco- of accounts considered to be linked to Hezbollah by banks afraid of being shut out of no choice but to implement it. infl uence underpinned by a powerful dermined. nomic stability - the banking sector.” the international financial system. Gulf Times Tuesday, June 14, 2016 3 BUSINESS

GRAPHS: Bloomberg New Energy Finance The world nearing peak fossil fuels for electricity Coal and gas will begin their terminal derail a rapid global transition toward renewable reverse that trend, according to BNEF. The capacity factor. That’s the percentage of a climate and is a significant change for the global decline in less than a decade, according to energy. adoption of electric cars will vary by country power plant’s maximum potential that’s actually energy outlook. a new BNEF analysis “You can’t fight the future,” said Seb Henbest, and continent, but overall they’ll add 8% to achieved over time. But that leaves India, which is emerging as the report’s lead author. “The economics are humanity’s total electricity use by 2040, BNEF Consider a wind farm. Even at high altitudes, the the biggest threat to eff orts to curb climate Bloomberg increasingly locked in. “The peak year for coal, found. wind isn’t consistent and varies in strength with change. India’s electricity demand is expected to New York gas, and oil: 2025. 4. Batteries join the grid the time of day, weather, and the seasons. So a increase fourfold by 2040, and the country will 2. Renewables attract $7.8tn project that can crank out 100 megawatt hours need to invest in a variety of energy sources to Renewable energy and electric cars create a of electricity during the windiest times might meet this overwhelming new demand. India has The way we get electricity is about to change Humanity’s demand for electricity is still rising, virtuous cycle of demand growth. Unlike fossil produce just 30% of that when averaged out hundreds of millions of people with little or no dramatically, as the era of ever-expanding and investments in fossil fuels will add up to fuels — where a surge of demand leads to higher over a year. That gives it a 30% capacity factor. access to electricity, and the country sits atop a demand for fossil fuels comes to an end—in $2.1tn through 2040. But that will be dwarfed by prices — with new energy technologies more As technologies continue to improve and as mountain of coal. It intends to use it. less than a decade. That’s according to a new $7.8tn invested in renewables, including $3.4tn demand begets more scale, and that drives project designers get smarter about their 8. The transformation continues forecast by Bloomberg New Energy Finance that for solar, $3.1tn for wind, and $911bn for hydro prices lower. placement, the capacity factors of renewables plots out global power markets for the next 25 power. Already in many regions the lifetime cost The scale up of electric cars increases demand are increasing. Some wind farms in Texas BNEF’s outlook for carbon dioxide emissions years. of wind and solar is less than the cost of building for renewable energy and drives down the cost are now achieving capacity factors of 50%, has improved significantly over the last year, Call it peak fossil fuels, a turnabout that’s new fossil fuel plants, and that trend will of batteries. And as those costs fall, batteries can according to BNEF. in spite of cheap fossil fuel prices. The shift to happening not because we’re running out of continue. But by 2027, something remarkable increasingly be used to store solar power. Improving capacity factors make renewables renewables is happening shockingly fast — but coal and gas, but because we’re finding cheaper happens. At that point, building new wind farms 5. Solar and wind prices plummet more attractive. But capacity factors of gas and not fast enough to prevent perilous levels of alternatives. Demand is peaking ahead of and solar fields will often be cheaper than coal plants are also changing. Once a solar or global warming. schedule because electric cars and aff ordable running the existing coal and gas generators. The chart below is arguably the most important wind project is built, the marginal cost of the Without additional policy action by battery storage for renewable power are “This is a tipping point that results in rapid chart in energy markets. It describes a pattern electricity it produces is pretty much zero — free governments, global carbon dioxide emissions arriving faster than expected, as are changes in and widespread renewables development,” so consistent, and so powerful, industries set electricity — while coal and gas plants require from the power sector will peak in the 2020s China’s energy mix. according to BNEF. their clocks by it. It’s the beautiful math of more fuel for every new watt produced. If you’re and remain relatively flat for the foreseeable Here are eight massive shifts coming soon to By 2028, batteries will be as ubiquitous as declining solar costs. a power company with a choice, you choose the future. That’s not enough to prevent the surface power markets. rooftop solar is today. The chart is on a logarithmic scale, so the free stuff every time. of the Earth from heating more than 2 degrees 1. There will be no golden age of gas 3. Electric cars save power markets declines are even more profound than at first As natural gas and coal plants are increasingly Celsius, according to BNEF. That’s considered glance. For every doubling in the world’s solar idled in favour of renewables, their capacity the point of no return for some of the worst Since 2008, the single most important force in In this discussion of peak fossil fuels, the focus panels, costs fall by 26%, a number known as factors will take a big hit, and lifetime cost of consequences of climate change. US power markets has been the abundance of is on electricity generation, not transportation solar’s “learning rate.” Solar is a technology, not those plants goes up. Think of them as the BNEF’s report focuses on fundamental cheap natural gas brought about by fracking. fuels. For cars, peak oil demand will take a bit a fuel, and as such it gets cheaper and more expensive back-up power for cheap renewables. economics: price, demand, supply. It includes Cheap gas has ravaged the US coal industry and more time. But the sudden rise of electric cars eff icient over time. This is the formula that’s 7. A new polluter to worry about climate-related policies that have already been inspired talk of a “bridge fuel” that moves the is on the verge of disrupting oil markets as driving the energy revolution. set into action, but doesn’t make any guesses world from coal to renewable energy. It doesn’t well, and that has profound implications for Wind-power prices are also falling fast — 19% China, the biggest and fastest-growing polluter, for new policies beyond those. It also doesn’t look like that’s going to happen. electricity markets as more cars plug in. for every doubling. Wind and solar will be the became a major global environmental concern include any jumps in technology that aren’t The cost of wind and solar power are falling too In fact, electric cars couldn’t come at a better cheapest forms of producing electricity in most over the last few decades. But that perception clearly already under way. quickly for gas ever to dominate on a global time for developed economies. Take Germany, of the world by the 2030s, according to BNEF. is changing fast. China’s evolving economy and That could be heartening for people concerned scale, according to BNEF. The analysts reduced for example, where increases in eff iciency 6. Capacity factors go wild its massive shift from coal to renewables mean about climate change, because if there’s one their long-term forecasts for coal and natural mean that without electric cars, demand for it will have the greatest reduction in carbon thing that energy markets have shown in the gas prices by a third for this year’s report, but electricity would be headed toward a prolonged One of the fast-moving stories in renewable emissions of any country in the next 25 years, last decade, it’s that there will be more surprises even rock-bottom prices won’t be enough to and destabilizing decline. Electric vehicles will energy is the shift in what’s known as the according to BNEF. That’s good news for the to come.

An Emarati man stands on a balcony overlooking the Shams 1, Concentrated Solar power (CSP) plant, in Al-Gharibiyah district on the outskirts of Abu Dhabi (file). Wind and solar will be the cheapest forms of producing electricity in most of the world by the 2030s, according to BNEF. Gulf Times 4 Tuesday, June 14, 2016 BUSINESS

Marex targets growth away Pound seen either sink to from LME after fee hikes

Reuters 30-year low or 6% rally Hong Kong ommodities broker Marex Bloomberg Spectron is expanding its London Cmetals business into new regions and products beyond the London Metal Exchange (LME) une 24 will be a day of superlatives after fee hikes led its customers for the pound, whichever way Brit- to look for cheaper avenues for Jain votes. trading. The day after next week’s referen- London-based Marex has dum on European Union membership, hired new staff to reach into the pound will either sink to the low- Japan and to add an industrial est level in more than three decades metals base in Singapore, its glo- or climb towards the highest this year, bal head of metals told Reuters in according to a Bloomberg survey of an interview late last week. economists. Simon Van Den Born said the Most see a drop below $1.35 if Brit- additions would boost its re- ons decide to leave the bloc on June 23, gional base metals business now while the median estimate following centred in Hong Kong and help a victory for the status quo is for it to build up alternative business jump to as high as $1.50. lines such as in gold. A Brexit vote “would certainly be a “I would say that the pre- shock event for currency markets in a dominant response we get from way that’s pretty unusual outside of clients is: how can I avoid the major fi nancial crises,” said Michael LME with its fee structure? Peo- Bell, a global market strategist at JP- ple are migrating away from the Morgan Asset Management in London, LME because of that,” Van Den which manages $1.7tn in assets. “The Born said. pound would fall very sharply.” Hong Kong Exchanges and The median estimate in the survey Clearing bought the LME for was for the pound to drop to between $2.2bn four years ago, before $1.30 and $1.35 a day after a vote to raising trading fees by an average ‘Leave,’ while a range of $1.45 to $1.50 31% at the start of last year as it was seen if the ‘Remain’ campaign tri- aimed to wring profi t from its umphs. Sterling was 0.9% weaker at investment. $1.4122 in London yesterday. LME volumes fell in 2015 and Preparing for either scenario is im- British pound banknotes are seen in an arranged photograph in London. June 24 will be a day of superlatives for the pound, whichever way Britain votes. have dropped by 9% in the fi rst portant for investors as polls suggest quarter, while volumes at ri- the result of the vote is too close to call. And that’s not even the worst case much as 10 percentage points. Others while a weaker economy would reduce yond the referendum. The pound’s rally vals the US Comex bourse and In the past few weeks, the currency has scenario - 14 out of 32 economists have shown a more balanced contest, the UK’s attractiveness for foreign may be even smaller if there’s a tight Shanghai Futures Exchange have been jolted by a series of surveys show- surveyed expect sterling to fall below with many voters still undecided. investors, further weighing on the vote to stay, according to Richard Ben- grown. Volumes fl uctuate for ing one or the other side in the lead, $1.30, with fi ve of them seeing it lower A decline below $1.3503 would push pound, he said. son, managing director and co-head reasons including macroeco- while traders are bracing for even more than $1.20. the pound to the lowest since 1985. While the upside to the currency if of portfolio investment in London at nomic factors, the LME said. volatility as June 23 approaches, with The UK currency has already Such a severe depreciation in the cur- the UK votes to stay is set to be small- Millennium Global Investments, which “Historically low prices have a two-week measure rising to a record dropped more than 4% this year as in- rency risks causing repercussions er, according to Bloomberg’s survey, a manages about $16bn. led to lower hedging activ- high yesterday. vestors assess the risks of an exit. It fell for the wider UK economy, from the move to $1.50 still indicates a bounce He sees sterling strengthening 3% if ity from the physical industry, A decline to $1.30 would represent to a seven-year low of $1.3836 in Feb- soundness of its current account to of more than 6% from current levels. Britons decide to stay on June 23 pro- which is a signifi cant constitu- a drop of about 8% from the current ruary after Prime Minister David Cam- faster infl ation. Weakness in the econ- However, only nine out of 31 econo- vided it’s a “solid” victory for the “Re- ency of the LME market,” it said. level. A move of that degree on the day eron announced the date of the vote, omy could also delay interest-rate rises mists see it going above this level, and main” camp. Marex Spectron was formed following the referendum would be the and has since fl uctuated as polls sug- from the Bank of England, according to seven see it trading close to current lev- “It could be less than that if the re- through a merger of metals and biggest on record, surpassing tumbles gested both sides may still prevail. JPMorgan AM’s Bell. els between $1.40 and $1.45. sults are very close” as “people will oil brokerage fi rms in 2011 and is seen during the 2008 fi nancial crisis Sterling plunged to its lowest since “Interest rates are likely to go up Some strategists and investors pre- talk about political squabbles” and majority owned by British pri- and on Black Wednesday in 1992, when April against the dollar yesterday after much later than they otherwise would” dict the rally in the pound would be speculate about the consequences vate equity house JRJ Group. the British government decided to let polls published in the past week showed should the country leave the world’s fl eeting if there’s a “Remain” vote, as for David Cameron’s political future, Its head count has doubled the pound fl oat freely. the ‘Leave’ campaign leading by as largest single market, he said. Mean- the UK economy faces diffi culties be- Benson said. to more than 500 since 2012, of which metals accounts for some 60 global roles. Beyond London, the broker has bases in Houston, Oslo and New York. “Our business a couple of Stock bulls lock on momentum fl ashing 1st buy sign since ’09 years ago was centred around the LME fl oor and 20 people in London. Bloomberg ing for a bear market anymore,” said nal in May that has forecast gains 95% a full-blown bear market, one that is mestic product expansion in 2016 to Today the business is just far New York Doug Ramsey, the chief investment of- of the time since 1929. enabling a quick rebound after stirring 1.9% from 2.5% at the start of the year more diverse. Precious metals fi cer at Leuthold Weeden Capital Man- Notwithstanding its byzantine de- anxiety among investors. and based on analyst estimates, growth is something we’ve seen decent agement in Minneapolis, which has tails, the Coppock Curve is supposed “The decline looks like a classic in S&P 500 profi ts won’t return until the growth in the last 24 months,” vidence is starting to build that increased equity holdings in the past to fl ash when pessimism has run its non-recessionary bear market,” said third quarter. That rebound has been re- Van Den Born said. the long-dormant bull market is three months after predicting a 20% course and price action is signalling a Ed Clissold, chief US strategist at Ven- peatedly pushed back. Meanwhile, valu- “We’re looking to institution- Ereawakening. plunge as recent as January. “There was new appetite for risk. For bulls, that’s ice, Florida-based Ned Davis Research. ations are elevated. At Friday’s close, the al investors, Chinese players like What has optimists excited is the a deep enough and lengthy enough de- the story of the market right now, when “Usually there is a fear of recession that index traded at 17.8 times forecast earn- hedge funds, that’s the market- degree to which stock prices are rising cline to clear the decks for a cyclical rise shares are rebounding after one of the prompts a selloff , which is exactly what ings, near a 14-year high. place we’re expanding in... relative to their longer-term history. in stock prices.” longest stock retreats ever in a US bull happened this time. That fear proved to It’s “a fairly fragile bull market,” Our China corporate business By that measure, they’re fl ashing a buy Momentum investing has taken a market. be unfounded, so it created a lot of pes- Roche said. “Momentum investing may have subsided a little bit, signal for the fi rst time since 2009, the beating in 2016, blamed for hedge fund US stocks slipped last week, with the simism that allows the market to rally.” is chasing risk in essence and hoping (but) our investor business has year that kicked off a rally that saw the losses in the fi rst quarter and the S&P S&P 500 losing 0.2% after twice clos- While it’s tempting to chase the mar- some short-term trend is going to con- increased - our presence in Sin- S&P 500 Index triple by mid-2015 be- 500’s worst start to a year ever. But a ing less than 1% away from its all-time ket as stocks rebound, investors should tinue into the longer term. Whether gapore will maintain that.” fore fl at-lining since. trading signal that’s triggered by ac- high. About $3tn has been added to eq- be wary of the danger of a reversal and that actually will occur is a coin fl ip.” While its overall metals The trading pattern fi ts with the view celerating price trends over periods of a uity prices since shares completed their confi rm any technical signals with eco- Developed by economist Edwin business was steady, Marex’s of a growing minority of infl uential year or longer just turned bullish. second 10% correction in six months in nomic and company fundamentals, Coppock in the 1960s, the Coppock direct Chinese volumes have strategists who say the path is clear for Known variously as the Coppock mid-February. according to Cullen Roche, founder of Curve is designed to identify buying shrunk 30% since the start of a new leg higher in stocks even though Curve or very long-term momen- The plunges of August and January Orcam Financial Group in San Diego. In opportunities after stocks slump. Cop- 2015, he said. economists have downgraded their tum indicator, it’s a chart system that represented a “psychological reset” to the fi rst two months of the year, shares pock equated the stages of market sen- Van Den Born also said that growth forecasts to less than 2% this tracks how fast stocks are rising today Ramsey, a capitulation in pessimism that produced the best gains in 2015 timent to human bereavement, fi guring HKEX’s push to develop a year, corporate profi t growth is non- versus 11 and 14 months ago - inter- that has spurred gains in the past. Us- and those beloved by hedge funds bore grief takes 11 to 14 months to overcome, monthly contract at the expense existent and the S&P 500’s worst ever vals thought long enough to capture ing a similar model that defi nes market the worst of the selling. and set up his indicator accordingly. A of the LME’s current structure start to a year is still fresh in investors’ broad changes in investor sentiment. cycles by the speed of declines, Ned To date, earnings and economic data hodgepodge of weighting calculations which encourages daily trade for memories. According to a version maintained by Davis Research views the nine-month haven’t been promising. Economists gives more emphasis to recent obser- three months out, was changing “You don’t hear a lot of people call- Leuthold, the indicator sent a buy sig- rout that reached its low in February as have cut their forecasts for gross do- vations, according to Ramsey. the nature of the bourse.

SPOTLIGHT ON COMMODITIES Gold rallies on bond market yields collapse, Brexit vote

By Ole Hansen additional boost on top of the impact producers some cheer with signs of market condition combined with the collection of coupon payments. from the weaker-than-expected US optimism returning to the beleaguered poorer sentiment across other financial With the collapse in European bond job report for May. The dollar remains shale oil industry. markets helped off set support from yields, investors are increasingly Commodities continued their strong important but clearly not the only Attacks on oil infrastructure in Nigeria reduced supply. looking towards the US and this ascent with broad-based gains across driver for metals and ahead of the by the Niger Delta Avengers are, if The reversal led to a renewed attack resulted in the yield on US ten-year most sectors with the exception of Brexit vote, we could see this sector anything, stepping up as they have on trend-line support at $49.90/b bonds reaching a 16-month low at industrial metals. Towards the end of remain supported despite headwind promised to disrupt the entire country’s with a move below raising the risk of 1.65%. another strong week, however, some from a stronger dollar. oil production. While the group is not a weakness extending to $47.75/b, the Inflation is another key component profit taking began to apply some The soft sector led the charge with expected to be successful with these recent low. when looking at the potential return on downward selling pressure. both sugar and Arabica coff ee rising threats, Nigeria’s daily production has Gold and especially silver continue to a fixed income investment. The chart This came on a combination of strongly on weather-related issues in nevertheless slumped by more than build on the boost that the weak US job below shows how the yield after the many commodities having reached Brazil. Funds hold a record long position 1mn barrels/day to the lowest point in report provided on June 3. The initial reduction of expected inflation on US overbought conditions while the dollar in sugar which increasingly has made two decades. rally was driven by expectations that 5-year bonds has moved deeper into recovered some of the losses in the it a candidate for profit-taking once The annual decline in US inventories is a June and possibly a July rate hike by negative territory. aftermath of the weak US job report on supporting fundamentals begin to fade. now well under way. Weekly inventories the US Fed had been abandoned. The dollar remains another key driver June 3. Funds meanwhile were short coff ee dropped by 3.2mn barrel last week and Apart from continued strong demand for precious metals investors but other The dollar is back in demand with into this week and this helped trigger a combined with rising refinery demand from investors looking for an drivers like those already mentioned investors increasingly beginning major short squeeze to a one-year high inventories stashed at LME registered these helped off set a counter-seasonal alternative to collapsing bond market should help cushion renewed dollar to worry about the outcome of the on the back of frost worries in Brazil. warehouses. Most of the increases were rise in gasoline inventories and the first yields, upcoming event risks such as strength. June 23 Brexit vote in the UK. The Copper was the odd one out in Singapore, South Korea and Taiwan estimated rise in US production since the Brexit vote in the UK also played its In an environment of rising event risk, combination of the European Central considering a generally positive with supplies likely to have come from March. part. Hedge funds cut bullish futures sub-zero interest rates and now the Bank turning its asset purchase focus performance among other industrial China and from shipments to China The 10,000 b/d increase was driven by bets by one-third in the run up to the potential of rising inflation following the towards corporate bonds and safe- metals, not least zinc which has being diverted, either due to lower returning production from Alaska and US job report have also been adding recent jump in food and energy, gold haven buying of German government been supported by mine closures demand or better trading opportunities. a fading decline in the lower 48 states. support. and silver should continue to prosper. bonds helped high quality yield and signs that supply will not meet After trading sideways for a couple Adding to this was the first weekly rise The compression in global-bond yields Having broken above $1,265/oz on gold contract even more. demand. The changing sentiment from of weeks, WTI and Brent crude oil in US oil rigs since March underpinning was highlighted in Europe with the yield and $17.19/oz on silver, there is not much A contracting bond-yield environment, one of optimism on China towards both resumed their rallies this week. an improving outlook for US producers. on German 10-year government bonds standing in the way of reaching the increased risk adversity hitting stocks overproduction and ample supply sent Continued supply disruptions and After breaking above $50/b for the homing in on zero. highs from earlier this year. combined with the emerging inflation copper to a four-month low. reduced inventories in the US were the first time since last October, WTI crude This has almost left one of the safest threat from rising food and energy The weakness this past week was main driver behind the move. But the oil reached $51.67/b before hitting bond markets in the world out of reach Ole Hansen is head of commodity prices helped give precious metals an driven by a 39% surge in copper rally has also given under-pressure US resistance. An increasingly overbought of those looking for a return through strategy at Saxo Bank. Gulf Times Tuesday, June 14, 2016 5 BUSINESS Richest Indian’s $41bn push spurs Reliance bonds to record

Bloomberg will also mitigate the threat to margins yesterday. That compares with 9.14% An e-mail sent to Reliance Industries’ quite the same enthusiasm, with ended March, the highest in more than Mumbai from 2016’s rebound in oil prices, that on similar-maturity debt of Philippines’ spokesman Tushar Pania seeking Reliance shares falling to a three-month eight years. Group profit rose 16% to follows an extended period when Petron Corp, the only other Asian comments didn’t get a response. low in May. Rs73.98bn in the period. Its refining refiners including Reliance benefited refiner with perpetual notes. The yield Ambani is India’s richest person, with They have dropped 3.5% this year, margin - the earnings from turning Bond investors are signalling billionaire from declining Brent crude. on Reliance’s securities due in 2025 has a net worth of $21bn, according to the compared with a 1% advance in the crude oil into fuels - was $10.8 a barrel, Mukesh Ambani’s promises are bearing “Reliance is so diversified and so fallen to 3.83% from as high as 4.55% in Bloomberg bnaires Index. benchmark S&P BSE Sensex. compared with $10.1 a year earlier fruit. much money could be made in the January. “We will see further earnings/cash- Bond risk for Reliance is falling. and $11.5 in the three months ended As Reliance Industries nears completion downstream business, there is no Much of Reliance’s capital expenditure flow growth in the near term as a Contracts protecting the firm’s debt December. of its $41-bn spending spree on real risk for us and that is why we are of $41bn is for new projects. India’s result of new petrochemical projects against non-payment have dropped “We expect improvement in Reliance everything from new petrochemical long the bond,” said Martin K Wilhelm, second-largest company by market commissioning and the telecom 17 basis points since reaching 221 on Industries’ operating performance projects to getting its fourth-generation founder of money manager Ifk GmbH, value had an investment of over launch,” Raymond Chia, the Singapore- May 19, the highest level since 2014, over the next three years from the wireless services running, optimism the which owns Reliance’s perpetual notes. Rs1.5tn ($22.3bn) in its telecom venture based head of credit research at according to data provider CMA. The commissioning of large refinery and investments will soon start contributing “It’s a solid game and for the bond Reliance Jio Infocomm, Ambani said at Schroder Investment Management, and firm is also said to be seeking an end to petrochemical projects, as well as the to revenue has driven the yield on its investor, there is no risk at all.” the end of March. The unit is expected his team, wrote in an e-mail. “Reliance is a dispute with the Indian government rollout of telecom operations,” Mehul perpetual dollar bonds to a record low. The yield on the firm’s perpetual dollar to start services this year. just exiting a capex cycle, while broadly over an off shore natural gas block, Sukkawala, a Singapore-based analyst S&P Global Ratings says the capital bonds issued in 2013 has declined for Reliance Industries, which also operates protecting its balance sheet and rating. which will allow Reliance and its at S&P Global, wrote in a May 31 report. expenditure by the operator of the three straight months, falling 48 basis stores that sell fruits and clothes, is Although refining margins are likely partners to take advantage of new The company’s “competitive position” world’s biggest refining complex will points since end-February to 5.76% investing to expand its petrochemicals to come down, they will still be fairly pricing policies. should “further strengthen following help reduce leverage and increase on Friday, according to data compiled capacity and reduce energy and robust.” Net income climbed 17% from a year the completion of the investment earnings over the next three years. It by Bloomberg. It was little changed feedstock costs to boost profitability. Equity investors don’t seem to share earlier to Rs73.2bn in the quarter projects, the report said.”

Asia stocks tumble Sensex falls; rupee weakens on global outlook

AFP most in three weeks to 67.14 Hong Kong Bloomberg Mumbai apanese stocks led a plunge in Asian markets yesterday, Jtracking a sell-off in the US ndian stocks capped their steep- and Europe on renewed worries est three-day drop in six weeks and about the global economy and Ivolatility climbed as growing anxi- uncertainty over Britain’s future ety over the outcome of the “Brexit” in the European Union. vote sapped demand for riskier assets Investors extended the sell- and investors awaited monthly infl a- ing that saw shares tumble at the tion data. ICICI Bank and State Bank end of last week on concern that of India, the nation’s top lenders, were central banks’ arsenals are run- among the biggest losers on the S&P ning low in their battle to kick BSE Sensex. start growth. Tata Motors, the owner of Jaguar And with next week’s referen- Land Rover, posted the largest drop in dum on whether Britain should a month. Bharat Heavy Electricals, In- stay in the EU on a knife-edge, dia’s biggest power-equipment maker, analysts said traders were rush- retreated the most in two weeks. Tata ing to safe-haven investments Steel slid for a second day. such as the yen. The Sensex lost 0.9% to 26,396.77 “The market hates uncer- at the close in Mumbai, bringing its tainty,” Yoshinori Ogawa, a three-day decline to 2.3%, as the rupee markets strategist at Okasan weakened the most in three weeks. The Securities Co in Tokyo, told MSCI Asia Pacifi c Index sank 2% as Bloomberg News. “Most market a poll showing a 10 percentage-point participants think that the UK lead for Britain to exit the European will probably remain, but we’re Union sent jitters through regional seeing some poll results that markets. show those who’ll vote to leave The Federal Reserve also meets to outnumber the ‘Remain’ camp, decide on policy this week while econ- and this is making investors un- omists predict India’s consumer-price certain.” gains probably accelerated to a four- Tokyo’s Nikkei took a ham- month high in May. “This uncertainty mering, sliding 3.5%, with a in the markets is around the Fed and stronger yen hitting exporters. the Brexit,” R K Gupta, managing di- The greenback fell to ¥106.15 rector of Taurus Asset Management yesterday from ¥106.93 in New Co, which oversees $590mn, said from York and is down more than 13% New Delhi. “The Fed may not raise so far this year. rates, but the commentary would be Hong Kong lost 2.5% and keenly looked into. The market was al- Shanghai dived 3.2%, while ready in an overbought position, a sell- Seoul sank 1.9% and Singapore off was overdue.” A US dollar bill and Indian rupee banknotes are arranged for a photograph in Mumbai. The rupee yesterday posted its biggest decline in more than three weeks on 1.6%. Taipei gave up more than The Sensex’s 10-day historical vola- concern foreign funds will cut equity holdings after losses in local stocks deepened. 2%. Sydney was closed for a tility index, a gauge of price swings, has public holiday. rebounded from a seven-month low lowest level in more than three dec- That’s the 13th straight day of buy- banks compiled by Bloomberg. That’s Friday, the smallest infl ow in four days, His comments follow an indi- reached last week. ades, while a victory for the ‘Remain’ ing, taking net purchases since April the biggest drop since May 19 and took data compiled by Bloomberg show. cation from the Federal Reserve India’s benchmark index completed camp would drive the currency toward 1 to $1.6bn. ICICI Bank plunged 3.5%, its loss in 2016 to 1.5%, Asia’s worst They have poured a net $2.81bn into lo- that it will likely not lift inter- a weekly decline on Friday, ending two the highest this year. the most since May 2. performance. cal equities in 2016. est rates until the fourth quarter, weeks of advances, as investors turned The Fed is seen leaving interest rates State Bank of India lost 2%, while The currency may decline to as low Recent polls indicating the UK’s June while other central banks have cautious before events including cen- unchanged tomorrow though investors Axis Bank fell 1.8%. Tata Motors tum- as 67.80 in the coming months, accord- 23 referendum on EU membership is either announced or are con- tral bank meetings in the US and Japan will scrutinise its post-meeting state- bled 2.8%, the most since May 10. ing to Edelweiss Financial Services. too close to call is spurring fear in glo- templating cuts. that could roil markets. ment for signals on the timing of the Bharat Heavy Electricals retreated “Investors are nervous ahead of bal investors already on the edge given Attention is now on meetings The gauge has risen 15% from a low next increase in US borrowing costs. 2.8%, extending this year’s loss to 29%. big events such as the Federal Reserve the monetary-policy reviews in the US this week of the Fed and Bank reached in February. The Sensex last Most economists expect the Bank of Tata Steel declined 3.4%. meeting and the UK referendum,” said and Japan. of Japan, with hopes for at least week climbed to its highest level since Japan to expand record monetary stim- Meanwhile the rupee posted its big- Ankur Jhaveri, co-head of currency and Indian sovereign bonds dropped some guidance on their plans. October 28 and its 14-day relative ulus in July rather than on June 16, a gest decline in more than three weeks rates at Edelweiss Financial Services in ahead of the infl ation data. The yield Nerves are also frayed by a se- strength index rose to 71, breaching a Bloomberg survey shows. on concern foreign funds will cut eq- Mumbai. “That’s driving them toward on notes due January 2026 climbed ries of opinion polls indicating level some investors see as a signal that Foreign investors bought $32.8mn uity holdings after losses in local stocks safe-haven assets. We see the rupee three basis points to 7.53%, its high- Britain could vote on June 23 to further gains may be capped. more Indian shares than they sold on deepened. depreciating more given the global un- est close since March 16, according to leave the EU, which many fear The gauge had fallen every day since June 10, the smallest infl ow in four The rupee weakened for a third day, certainties.” prices from the central bank’s trad- could unleash a fresh wave of then. Economists predict a vote for so- days, data compiled by Bloomberg retreating 0.6% to 67.14 a dollar in Foreign investors bought $32.8mn ing system. That’s the biggest advance global turmoil. called Brexit will send the pound to the show. Mumbai, according to prices from local more Indian shares than they sold on since April 21. “The international focus on Brexit has stepped up,” Cameron Bagrie, chief economist in Wel- lington at ANZ Bank New Zea- land, said in a client note. Brexit, Fed and China jitters rattle emerging markets “Yay or nay is only part of the issue - what we are seeing globally is more kickback from Reuters around 4.6% of GDP, followed by Poland called for more talks with Beijing on its society toward integration and London at around 3% and Hungary at around market economy status under the World more anti-globalisation. 2%, according to Morgan Stanley.”There Trade Organisation. The politics associated with is increasing concern about Brexit as China watchers are also gearing for a close votes are not good for Emerging market stocks saw their the (June 23) vote gets closer and the decision today by equity index provider mandates and driving good biggest fall since February yesterday market is now in a risk-off mode,” said MSCI on whether to add domestically- macroeconomic policy.” as anxiety grew ahead of a referendum TD Securities head of emerging markets listed Chinese stocks, also known as Fears of an exit sent the on Britain’s potential exit from the strategy Cristian Maggio. A-shares, to its EM benchmark. pound tumbling to $1.4190 from European Union and a US Federal Concerns about a slowdown in It already includes Chinese shares $1.4250. Reserve policy meeting. China’s giant economy were fanned listed in other parts of the world and While the latest data out of Data pointing to a slowdown in by data showing the growth in fixed- the addition of A-shares would be a China pointed to much-needed China’s economy and a break back asset investment slipped below 10% symbolic step.”We haven’t really seen stabilisation, there was very lit- to $50 a barrel for oil added to the for the first time since 2000 and any ability of Chinese stocks to rally tle euphoria, with offi cials warn- pressures, with MSCI’s benchmark investment by private firms slowed to ahead of the MSCI decision,” said Narain, ing the “international environ- EM index declining 1.7% to take its a record low. who expects MSCI to start by adding ment remains complicated” and losses over the last three sessions to Chinese stocks closed down over 3%, around 5% of A-shares from next June, that “the economy is still under over 4%. their biggest tumble since February, as before building the amount up over a downward pressure”. Brexit jitters found traction in eastern investment in real estate also posted its number of years.”China’s share (of EM Oil prices sank for a third Europe as Polish zloty and Hungarian first year-on-year slowdown in growth index) could grow from 25-26% now to straight session, with both main forint volatility forwards surged to since December, though property sales around 40%,” he said. contracts down more than 1% on their highest in a year and six months by area surged 32%. Elsewhere, Russia’s rouble fell for its fears over the global economy respectively. ”These leading indicators seem to be third day running as oil prices broke and after US producers reopened Poland has especially close links to telling us that the Chinese economy below $50 a barrel. more rigs. the UK with more than 850,000 of its won’t be as strong this quarter and Emerging Asian currencies also lost In Tokyo, the Nikkei 225 citizens living in Britain and a net inflow going forward,” UBS economist Manik ground against the safe-haven yen as down 3.5% at 16,019.18 points; of 20,000-30,000 going there each Narain said. the Japanese currency touched a three- Hong Kong - Hang Seng down year. China does not want a trade war year high against both the euro and 2.5% at 20,512.99 points and Eastern European exports to Britain as with Europe, Premier Li Keqiang said sterling on Brexit nerves and ahead of Shanghai - Composite down percentage of GDP are also significant. yesterday at a news briefing alongside meetings of both the Bank of Japan and 3.2% at 2,833.07 points at the The Czech Republic is most exposed at German Chancellor Angela Merkel, who Fed this week. close yesterday. Gulf Times 6 Tuesday, June 14, 2016 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 6.49 -0.76 2,775,192 Boubyan Intl Industries Hold 29.00 1.75 595,250 Areej Vegetable Oils 3.68 0.00 - Solidarity Saudi Takaful Co 9.69 -2.02 1,533,465 Gulf Investment House Ksc 27.00 0.00 1,865,190 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 9.84 -1.60 904,036 Boubyan Bank K.S.C 390.00 -2.50 12,444,214 Al-Omaniya Financial Service 0.30 0.00 - Alabdullatif Industrial Inv 18.30 4.04 2,350,196 Ahli United Bank B.S.C 196.00 0.00 303,171 Al-Hassan Engineering Co 0.09 0.00 - Saudi Printing & Packaging C 20.08 -0.74 708,284 Osos Holding Group Co 104.00 -1.89 2,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 94.00 0.00 5,000 Al-Anwar Ceramic Tiles Co 0.27 0.00 - Saudi Paper Manufacturing Co 12.55 -0.55 1,107,569 Qurain Petrochemical Industr 210.00 0.96 70,653 Al Suwadi Power 0.22 0.00 - Alinma Bank 13.36 0.00 38,389,224 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 55.24 0.86 357,205 Ekttitab Holding Co Sak 38.00 4.11 7,826,144 Al Sharqiya Invest Holding 0.14 0.00 138,226 Falcom Saudi Equity Etf 25.40 0.40 57,807 Kout Food Group Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.50 0.00 - QATAR United International Transpo 37.19 -1.56 111,752 Real Estate Trade Centers Co 23.00 0.00 2,000 Al Maha Ceramics Co Saoc 0.45 0.00 5,648 Hsbc Amanah Saudi 20 Etf 25.40 0.00 1,530 Acico Industries Co Kscc 295.00 3.51 13,252 Al Madina Takaful Co Saoc 0.07 -3.95 22,800 Company Name Lt Price % Chg Volume Saudi International Petroche 14.10 -1.33 170,654 Kipco Asset Management Co 79.00 -1.25 33,966 Al Madina Investment Co 0.06 0.00 168,346 Falcom Petrochemical Etf 21.70 0.00 - National Petroleum Services 680.00 0.00 8,281 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 84.00 -2.33 417 Saudi United Cooperative Ins 13.04 0.31 3,217,976 Alimtiaz Investment Co Kscc 69.00 0.00 190,000 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 61.00 -0.81 38,206 Bank Al-Jazira 12.82 -1.00 2,680,597 Ras Al Khaimah White Cement 94.00 0.00 282 Al Jazeera Steel Products Co 0.21 -1.44 105,000 Vodafone Qatar 10.48 -0.95 315,853 Al Rajhi Bank 58.99 0.92 1,527,479 Kuwait Reinsurance Co Ksc 190.00 0.00 60,267 Al Jazeera Services 0.22 0.00 35,000 United Development Co 18.50 0.00 10,066 Samba Financial Group 21.08 -0.75 308,965 Kuwait & Gulf Link Transport 48.50 0.00 105,001 Al Izz Islamic Bank 0.06 0.00 10,000 Salam International Investme 11.20 0.00 171,934 United Electronics Co 27.90 1.05 532,981 Human Soft Holding Co Ksc 1,380.00 0.00 16,700 Al Buraimi Hotel 0.88 0.00 - Qatar & Oman Investment Co 10.90 -0.27 7,242 Allied Cooperative Insurance 14.58 0.41 467,653 Automated Systems Co Kscc 370.00 -6.33 1,500 Al Batinah Power 0.21 0.00 - Qatar Navigation 85.00 -0.23 15,374 Malath Cooperative & Reinsur 15.20 0.73 852,042 Metal & Recycling Co 59.00 0.00 5,000 Al Batinah Hotels 1.13 0.00 - Qatar National Cement Co 85.90 -0.12 1,030 Alinma Tokio Marine 19.14 0.63 719,596 Gulf Franchising Holding Co 34.00 0.00 500 Al Batinah Dev & Inv 0.09 0.00 - Qatar National Bank 138.00 -0.07 50,357 Arabian Shield Cooperative 23.27 -0.26 202,016 Al-Enma’a Real Estate Co 52.00 0.00 305,898 Al Anwar Holdings Saog 0.23 -1.70 1,583,524 Qatar Islamic Insurance 59.00 0.00 1,784 Savola 38.05 -1.50 332,461 National Mobile Telecommuni 1,160.00 0.00 70 Ahli Bank 0.17 0.00 143 Qatar Industrial Manufactur 40.10 -2.20 9,941 Wafrah For Industry And Deve 25.78 0.55 229,846 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.70 0.00 - Qatar International Islamic 61.90 0.65 14,851 Fitaihi Holding Group 15.75 0.90 920,915 Housing Finance Co Sak 31.50 3.28 958,410 Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 47.70 -0.31 28,682 Tourism Enterprise Co/ Shams 34.50 0.55 88,215 Al Salam Group Holding Co 42.50 3.66 9,813,934 A’saff a Foods Saog 0.86 0.00 - Qatar Islamic Bank 94.80 -0.42 222,170 Sahara Petrochemical Co 10.94 -0.45 779,005 United Foodstuff Industries 0.00 0.00 - 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 22.91 -0.69 175,124 Herfy Food Services Co 79.20 0.25 50,975 Al Aman Investment Company 50.00 0.00 110,500 Qatar General Insurance & Re 48.95 -1.41 45,587 Mashaer Holdings Co Ksc 0.00 0.00 - Qatar German Co For Medical 11.55 -0.43 20,413 Manazel Holding 15.00 0.00 3,081,352 Qatar Fuel Qsc 152.00 1.00 1,282 Mushrif Trading & Contractin 68.00 0.00 500 Qatar First Bank 11.84 -1.00 238,725 KUWAIT Tijara And Real Estate Inves 0.00 0.00 - Qatar Electricity & Water Co 200.20 -0.45 3,592 Kuwait Building Materials 250.00 0.00 115,500 Qatar Cinema & Film Distrib 32.50 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 920.00 0.00 153,794 Qatar Insurance Co 72.40 -1.36 16,736 Commercial Real Estate Co 76.00 0.00 200,463 Ooredoo Qsc 86.40 0.35 62,739 Securities Group Co 82.00 0.00 14,806 Future Communications Co 99.00 0.00 4,573 National Leasing 17.01 1.25 20,671 Sultan Center Food Products 59.00 -3.28 2,063 National International Co 57.00 1.79 38,900 Mazaya Qatar Real Estate Dev 13.50 0.00 39,350 Kuwait Foundry Co Sak 178.00 0.00 8,000 Taameer Real Estate Invest C 23.00 0.00 594,244 UAE Mesaieed Petrochemical Holdi 18.15 -1.09 134,806 Kuwait Financial Centre Sak 84.00 -3.45 3,000 Gulf Cement Co 73.00 0.00 10,000 Al Meera Consumer Goods Co 205.20 -1.11 8,911 Ajial Real Estate Entmt 138.00 0.00 400 Heavy Engineering And Ship B 166.00 -1.19 54,050 Company Name Lt Price % Chg Volume Medicare Group 94.60 -0.42 1,593 Gulf Glass Manuf Co -Kscc 265.00 6.00 44,099 Refrigeration Industries & S 305.00 1.67 5,000 Mannai Corporation Qsc 90.00 0.00 - Kuwait Finance & Investment 37.50 0.00 20,500 National Real Estate Co 90.00 -1.10 10,000 Waha Capital Pjsc 2.00 0.00 75,178 Masraf Al Rayan 33.55 -0.74 145,706 National Industries Co Ksc 210.00 0.00 2,500 Al Safat Energy Holding Comp 0.00 0.00 - United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 16.35 0.00 8,017 Kuwait Real Estate Holding C 25.00 4.17 25,000 Kuwait National Cinema Co 1,700.00 0.00 200 United Arab Bank Pjsc 2.57 0.00 50 Industries Qatar 96.80 -1.02 36,297 Securities House/The 40.50 0.00 3,270,857 Danah Alsafat Foodstuff Co 124.00 8.77 2,431,004 Union National Bank/Abu Dhab 3.40 0.00 604,241 Islamic Holding Group 59.10 -3.11 52,424 Boubyan Petrochemicals Co 530.00 -1.85 208,256 Independent Petroleum Group 320.00 0.00 2,245 Union Insurance Co 1.43 0.00 - Gulf Warehousing Company 58.70 0.00 27,810 Al Ahli Bank Of Kuwait 330.00 0.00 500 Kuwait Real Estate Co Ksc 56.00 0.00 644,857 Union Cement Co 1.20 0.00 - Gulf International Services 37.15 -1.33 66,037 Ahli United Bank (Almutahed) 405.00 0.00 9,941 Salhia Real Estate Co Ksc 350.00 0.00 500 Umm Al Qaiwain Cement Indust 0.85 0.00 - Ezdan Holding Group 17.32 -3.24 188,618 National Bank Of Kuwait 610.00 -1.61 1,312,400 Gulf Cable & Electrical Ind 400.00 0.00 390 Sharjah Islamic Bank 1.55 0.65 3,250,000 Doha Insurance Co 19.45 -0.26 13,322 Commercial Bank Of Kuwait 415.00 0.00 69,470 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 35.00 0.00 98,045 Kuwait International Bank 196.00 0.00 120,000 Kuwait Finance House 465.00 0.00 710,655 Sharjah Group 1.50 0.00 - Dlala Holding 20.20 -1.61 13,513 Gulf Bank 220.00 0.92 205,250 Gulf North Africa Holding Co 32.00 0.00 439,500 Sharjah Cement & Indus Devel 0.96 0.00 - Commercial Bank Qsc 36.10 -0.55 33,836 Al-Massaleh Real Estate Co 44.00 0.00 12,000 Hilal Cement Co 142.00 0.00 90 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 32.05 -0.16 37,538 Al Arabiya Real Estate Co 31.00 0.00 1,250,000 Osoul Investment Kscc 45.50 0.00 24,351 Ras Al Khaimah White Cement 1.17 0.00 1,000 Al Khaleej Takaful Group 24.00 0.00 200 Kuwait Remal Real Estate Co 33.50 0.00 117,000 Gulf Insurance Group Ksc 700.00 0.00 250 Ras Al Khaimah Ceramics 3.26 0.00 - Alkout Industrial Projects C 630.00 0.00 43,048 Kuwait Food Co (Americana) 2,060.00 1.98 65,659 Ras Al Khaimah Cement Co Psc 0.80 -1.23 1,340,301 A’ayan Real Estate Co Sak 63.00 0.00 8,900 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 2.80 0.00 - Investors Holding Group Co.K 22.00 -2.22 1,641,954 Aayan Leasing & Investment 37.00 1.37 530,000 Rak Properties 0.60 -1.64 12,710,797 Al-Mazaya Holding Co 120.00 -1.64 926,426 Ooredoo Qsc 81.15 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 14.00 3.70 517,110 Oman & Emirates Inv(Emir)50% 1.17 0.00 598 Gulf Petroleum Investment 43.50 -1.14 1,605,370 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 800.00 1.27 100,005 OMAN 0.98 - City Group 630.00 -7.35 10,483 National Marine Dredging Co 5.50 0.00 - National Investor Co/The 0.64 0.00 - United Wire Factories Compan 25.00 3.26 281,328 Inovest Co Bsc 54.00 0.00 96 Company Name Lt Price % Chg Volume Etihad Etisalat Co 26.98 -1.17 1,065,850 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 4.50 0.00 - Dar Al Arkan Real Estate Dev 6.35 -1.09 75,695,012 Al-Deera Holding Co 39.50 -1.25 73,290 Voltamp Energy Saog 0.42 0.00 55 National Bank Of Umm Al Qaiw 3.05 0.00 - Saudi Hollandi Bank 12.20 -0.81 134,700 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.10 0.00 95,000 Rabigh Refining And Petroche 11.80 -0.25 599,060 Mena Real Estate Co 21.00 -4.55 494,817 United Power Co Saog 3.40 0.00 - National Bank Of Fujairah 4.79 0.00 - Banque Saudi Fransi 23.50 -0.42 59,150 National Slaughter House 0.00 0.00 - United Finance Co 0.15 0.00 - National Bank Of Abu Dhabi 7.87 -2.36 113,903 Saudi Enaya Cooperative Insu 11.95 0.00 402,293 Amar Finance & Leasing Co 50.00 0.00 500 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.81 0.00 395,545 Mediterranean & Gulf Insuran 21.06 0.29 732,236 United Projects For Aviation 690.00 1.47 4,819 Takaful Oman 0.12 0.00 74,000 Manazel Real Estate Pjsc 0.55 0.00 920,460 Saudi British Bank 21.00 -0.80 94,361 National Consumer Holding Co 0.00 0.00 - Taageer Finance 0.13 0.00 - Invest Bank 2.21 0.45 99,238 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 21.50 0.00 7,250 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 1.66 0.00 - Red Sea Housing Services Co 27.02 1.01 190,704 Jeeran Holdings 72.00 0.00 200 Sohar Power Co 0.30 0.00 840 Insurance House 0.81 0.00 - Takween Advanced Industries 24.30 2.97 2,505,586 Equipment Holding Co K.S.C.C 62.00 0.00 1,070,000 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Ind Psc 2.23 0.90 32,000 Sabb Takaful 25.00 0.08 300,946 Nafais Holding 174.00 0.00 250,000 Smn Power Holding Saog 0.72 0.00 - Gulf Medical Projects 2.35 0.00 - Saudi Arabian Fertilizer Co 63.50 0.22 95,331 Safwan Trading & Contracting 305.00 0.00 49,695 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.89 -1.11 30,000 National Gypsum 13.95 0.58 126,181 Arkan Al Kuwait Real Estate 90.00 0.00 5,100 Shell Oman Marketing 1.86 0.00 - Fujairah Cement Industries 1.02 0.00 - Saudi Ceramic Co 37.92 -0.86 384,598 Gfh Financial Group Bsc 70.00 0.00 64,360 Sharqiyah Desalination Co Sa 4.70 0.00 388 Fujairah Building Industries 1.14 0.00 - National Gas & Industrializa 22.53 0.04 75,374 Energy House Holding Co Kscp 55.00 -1.79 467,050 Sembcorp Salalah Power & Wat 0.25 0.00 - Foodco Holding Pjsc 4.00 0.00 - Saudi Pharmaceutical Industr 37.10 2.71 253,984 Kuwait Slaughter House Co 150.00 0.00 26,000 Salalah Port Services 0.65 0.00 - First Gulf Bank 12.10 0.41 557,956 Thimar 32.34 0.15 558,350 Kuwait Co For Process Plant 210.00 3.96 52,100 Salalah Mills Co 1.48 0.00 - Finance House 1.82 -3.70 160,500 National Industrialization C 13.18 -0.45 2,069,949 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.80 0.00 4,273,543 Saudi Transport And Investme 53.06 0.32 176,163 National Ranges Company 25.50 -1.92 17,140,859 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 18.80 0.00 649,146 Saudi Electricity Co 18.26 2.41 2,678,755 Al-Themar Real International 0.00 0.00 - Renaissance Services Saog 0.30 -1.99 55,000 Emirates Insurance Co. (Psc) 6.05 0.00 - Saudi Arabia Refineries Co 35.09 -0.59 170,456 Al-Ahleia Insurance Co Sakp 475.00 0.00 10,000 Raysut Cement Co 1.32 -0.75 20,000 Emirates Driving Company 6.31 0.00 - Arriyadh Development Company 18.41 -0.22 189,263 Wethaq Takaful Insurance Co 31.50 0.00 1,436 Port Service Corporation 0.25 0.00 - Dana Gas 0.55 0.00 2,505,194 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 73.00 -2.67 42,498 Phoenix Power Co Saoc 0.16 0.00 186,457 Commercial Bank Internationa 1.99 0.00 - Saudi Research And Marketing 44.09 -2.13 284,326 Aqar Real Estate Investments 0.00 0.00 - Packaging Co Ltd 0.53 0.00 - Bank Of Sharjah 1.25 0.00 - Aldrees Petroleum And Transp 35.17 0.77 233,070 Hayat Communications 49.00 -1.01 2,376,750 Ooredoo 0.75 -0.53 243,500 Axa Green Crescent Insurance 0.87 0.00 - Saudi Vitrified Clay Pipe Co 91.46 1.34 6,964 Kuwait Packing Materials Mfg 0.00 0.00 - Ominvest 0.57 0.00 - Arkan Building Materials Co 0.85 0.00 1,500 Jarir Marketing Co 119.96 -0.38 35,788 Soor Fuel Marketing Co Ksc 110.00 0.00 4,446 Oman United Insurance Co 0.26 0.00 - Alkhaleej Investment 1.89 0.00 - Arab National Bank 19.40 -1.02 46,071 Alargan International Real 144.00 0.00 38,265 Oman Textile Holding Co Saog 0.34 0.00 - Aldar Properties Pjsc 2.75 0.73 4,957,768 Yanbu National Petrochemical 43.34 -0.60 236,326 Burgan Co For Well Drilling 88.00 2.33 200,358 Oman Telecommunications Co 1.62 -0.92 138,564 Al Wathba National Insurance 4.40 0.00 - Arabian Cement 49.60 -0.38 82,782 Kuwait Resorts Co Kscc 94.00 1.08 7,768,522 Oman Refreshment Co 2.20 0.00 - Al Khazna Insurance Co 0.36 0.00 - Middle East Specialized Cabl 7.57 0.00 967,917 Oula Fuel Marketing Co 108.00 0.00 907 Oman Packaging 0.30 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 28.80 -2.21 850,671 Palms Agro Production Co 100.00 -5.66 5,000 Oman Orix Leasing Co. 0.11 0.00 - Al Dhafra Insurance Co. P.S. 5.00 0.00 - Al Sagr Co-Operative Insuran 34.49 0.15 331,654 Ikarus Petroleum Industries 39.50 1.28 10,000 Oman Oil Marketing Company 1.88 0.00 2,500 Al Buhaira National Insuranc 2.25 0.00 - Trade Union Cooperative Insu 13.94 0.94 410,329 Mubarrad Transport Co 62.00 1.64 830,000 Oman National Engineering An 0.20 0.00 - Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 9.93 -0.40 605,583 Al Mowasat Health Care Co 200.00 0.00 95,000 Oman Investment & Finance 0.20 -1.49 87,000 Agthia Group Pjsc 7.70 1.32 728,995 Saudi Chemical Company 44.68 1.55 55,529 Shuaiba Industrial Co 275.00 0.00 1,000 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.80 4.87 55,668 Fawaz Abdulaziz Alhokair & C 50.37 3.83 2,303,578 Hits Telecom Holding 39.00 -1.27 6,683,038 Oman Hotels & Tourism Co 0.62 0.00 - Abu Dhabi Natl Co For Buildi 0.50 0.00 - Bupa Arabia For Cooperative 143.33 2.35 64,649 First Takaful Insurance Co 50.00 0.00 1,000 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 5.05 0.00 - Wafa Insurance 18.18 1.00 3,165,268 Kuwaiti Syrian Holding Co 32.00 1.59 313,359 Oman Flour Mills 0.55 0.00 - Abu Dhabi National Insurance 2.06 0.00 - Jabal Omar Development Co 61.50 0.79 251,776 National Cleaning Company 40.00 -1.23 180,000 Oman Fisheries Co 0.06 -1.64 548,400 Abu Dhabi National Hotels 3.00 0.00 7,000 Saudi Basic Industries Corp 81.60 0.02 6,001,585 Eyas For High & Technical Ed 0.00 0.00 - Oman Fiber Optics 4.57 0.00 - Abu Dhabi National Energy Co 0.58 0.00 760,481 Saudi Kayan Petrochemical Co 6.45 0.78 14,046,224 United Real Estate Company 90.00 -1.10 5 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.70 -0.27 976,092 Etihad Atheeb Telecommunicat 3.95 -1.00 1,602,249 Agility 485.00 -1.02 68,195 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 95.88 4.22 118,644 Kuwait & Middle East Fin Inv 0.00 0.00 - Oman Chromite 3.64 0.00 - National Petrochemical Co 17.85 0.28 16,436 Fujairah Cement Industries 74.00 0.00 551,191 Oman Chlorine 0.50 0.00 - BAHRAIN Gulf Union Cooperative Insur 11.49 -0.61 454,760 Livestock Transport & Tradng 194.00 3.19 25,000 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 15.51 0.13 337,681 International Resorts Co 33.00 1.54 160,100 Oman Cement Co 0.47 0.00 - Basic Chemical Industries 30.98 -0.86 32,861 National Industries Grp Hold 112.00 0.00 237,000 Oman Cables Industry 1.82 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 0.45 Marine Services Co Ksc 0.00 17.73 132,284 100.00 270 Oman Agricultural Dev 1.75 0.00 - Zain Bahrain Bscc 0.12 0.00 200,000 Buruj Cooperative Insurance 1.07 Warba Insurance Co 0.00 17.92 499,630 102.00 100,000 Oman & Emirates Inv(Om)50% 0.14 0.00 5,000 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 0.97 Kuwait United Poultry Co 0.00 129.50 12,925 176.00 38,944 Natl Aluminium Products 0.25 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.00 First Dubai Real Estate Deve -2.86 74.00 12,246 68.00 1,177,982 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah 0.04 Al Arabi Group Holding Co 0.00 26.01 243,542 58.00 1,900 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.23 -0.87 36,745 Yamama Cement Co 0.26 Kuwait Hotels Sak 0.00 27.20 665,688 0.00 - National Pharmaceutical 0.11 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 0.34 Mobile Telecommunications Co -1.45 11.85 405,933 340.00 166,081 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.03 Al Safat Real Estate Co 0.00 27.90 502,750 0.00 - National Hospitality Institu 0.53 0.00 - Seef Properties 0.19 4.40 5,220,468 Alujain Corporation (Alco) -0.23 Tamdeen Real Estate Co Ksc 0.00 13.30 321,561 560.00 3,500 National Gas Co 0.52 -0.38 565,020 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 2.36 Al Mudon Intl Real Estate Co 0.00 11.70 1,146,566 28.50 4,285,750 National Finance Co 0.14 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 0.09 Kuwait Cement Co Ksc 0.00 10.63 432,589 375.00 4,421 National Detergent Co Saog 0.65 0.00 - National Bank Of Bahrain Bsc 0.60 0.00 23,110 Qassim Cement/The 0.00 Sharjah Cement & Indus Devel 1.30 63.50 31,910 78.00 32,526 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.10 0.00 60,900 Saudi Advanced Industries 0.83 Kuwait Portland Cement Co 0.00 10.89 555,290 1,000.00 10,000 National Bank Of Oman Saog 0.25 0.00 - Khaleeji Commercial Bank 0.06 0.00 47,719 Kingdom Holding Co -0.89 Educational Holding Group 0.00 11.10 772,816 190.00 10 Muscat Thread Mills Co 0.11 0.00 - Ithmaar Bank Bsc 0.13 0.00 82,843 Saudi Arabian Amiantit Co -0.13 Bahrain Kuwait Insurance 0.00 7.99 365,112 0.00 - Muscat National Holding 1.80 0.00 - Investcorp Bank -$Us 6.50 8.33 37,000 Al Jouf Agriculture Developm -0.03 Asiya Capital Investments Co 0.00 29.38 55,326 0.00 - Muscat Gases Company Saog 0.75 0.00 - Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development -0.41 Kuwait Investment Co 0.00 9.70 456,009 88.00 100 Muscat Finance 0.12 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 69.75 - 320.00 11,673 Majan Glass Company 0.19 0.00 - Gulf Hotel Group B.S.C 0.65 0.00 2,857,254 Riyad Bank 0.27 Kuwait Projects Co Holdings 0.00 11.03 89,087 520.00 10,000 Majan College 0.52 0.00 - Gfh Financial Group Bsc 0.22 0.00 30,000 The National Agriculture Dev 0.73 Al Madina For Finance And In 1.03 22.18 560,062 49.00 3,183,660 Hsbc Bank Oman 0.10 0.99 23,250 Esterad Investment Co B.S.C. 0.19 0.00 24,102 Halwani Bros Co 1.22 Kuwait Insurance Co 0.00 62.27 54,994 300.00 6,658 Hotels Management Co Interna 1.25 0.00 - Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 0.20 Al Masaken Intl Real Estate 0.00 10.00 332,954 71.00 309,400 Gulf Stone 0.11 0.00 - Bmmi Bsc 0.82 0.00 11,000 Eastern Province Cement Co -0.33 Intl Financial Advisors -1.64 30.00 40,897 30.00 1,240,095 Gulf Plastic Industries Co 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Al Qassim Agricultural Co 1.41 First Investment Co Kscc -5.05 10.09 578,953 47.00 81,500 Gulf Mushroom Company 0.34 0.00 - Bbk Bsc 0.33 0.00 20,000 Filing & Packing Materials M -1.21 Al Mal In -1.79 41.81 286,274 vestment Company 27.50 1,280,612 Gulf Investments Services 0.12 0.00 27,871 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co -0.14 -2.86 7.25 2,136,137 Bayan Investment Co Kscc 34.00 362,000 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Banader Hotels Co 0.07 -5.71 48,308 Tihama Advertising & Public -0.29 0.00 34.29 448,117 Egypt Kuwait Holding Co Sae 118.00 49,800 Gulf International Chemicals 0.25 -0.40 10,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.40 -1.27 12.60 93,031 Coast Investment Development 39.00 2,933,900 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Telecom Co 0.31 0.66 5,002,191 Astra Industrial Group 0.50 0.00 16.19 1,187,796 Privatization Holding Compan 47.50 554,280 Global Fin Investment 0.14 0.00 - Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co -0.37 0.00 13.50 1,068,997 Kuwait Medical Services Co 0.00 - Galfar Engineering&Contract 0.11 -3.60 498,017 Bahrain National Holding 0.00 0.00 - Taiba Holding Co -0.38 0.00 33.85 49,570 Injazzat Real State Company 74.00 32,100 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co -0.54 0.00 40.23 166,415 Kuwait Cable Vision Sak 25.00 100 Financial Services Co. 0.17 0.00 - Bahrain Islamic Bank 0.12 0.00 35,610 Saudi Real Estate Co -0.10 0.00 20.52 167,963 Sanam Real Estate Co Kscc 32.00 2,030,000 Financial Corp/The 0.11 0.00 - Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 0.97 -2.56 151.45 10,199 Ithmaar Bank Bsc 38.00 894,600 Dhofar University 1.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.14 2.00 41.87 567,700 Aviation Lease And Finance C 204.00 50,120 Dhofar Tourism 0.49 0.00 - Bahrain Duty Free Complex 0.78 0.00 125,000 Methanol Chemicals Co 0.14 -2.99 7.05 786,454 Arzan Financial Group For Fi 32.50 524,840 Dhofar Poultry 0.18 0.00 - Bahrain Commercial Facilitie 0.69 -0.72 1,166,857 Ace Arabia Cooperative Insur -0.32 -4.92 40.47 97,347 Ajwan Gulf Real Estate Co 29.00 7,500 Dhofar Intl Development 0.40 0.00 - Bahrain Cinema Co 1.00 0.00 22,086 Mobile Telecommunications Co -0.76 -1.22 7.88 2,245,296 Kuwait Business Town Real Es 40.50 1,111,230 Dhofar Insurance 0.21 0.00 - Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -0.40 -3.45 15.05 886,276 Future Kid Entertainment And 112.00 5,000 Dhofar Fisheries & Food Indu 1.28 0.00 - Arab Insurance Group(Bsc)-$ 0.00 0.00 - Axa Cooperative Insurance 0.93 -1.30 16.24 1,619,231 Specialities Group Holding C 76.00 600 Dhofar Cattlefeed 0.23 0.00 - Arab Banking Corp Bsc-$Us 0.38 5.56 383,809 Alsorayai Group 0.00 2.13 11.25 257,661 Abyaar Real Eastate Developm 24.00 91,000 Dhofar Beverages Co 0.26 0.00 - Aluminium Bahrain Bsc 0.28 0.00 20,000 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 158.00 100 Construction Materials Ind 0.03 0.00 5,000 Albaraka Banking Group 0.45 0.00 15,000 Bank Albilad -0.27 -8.33 18.24 323,506 Al-Dar National Real Estate 11.00 9,165,068 Computer Stationery Inds 0.26 0.00 - Al-Salam Bank 0.09 0.00 30,800 Al-Hassan G.I. Shaker Co 2.21 -3.66 26.36 265,270 Kgl Logistics Company Kscc 79.00 945,094 Bankmuscat Saog 0.39 0.00 970,459 Al-Ahlia Insurance Co 0.27 0.00 189,724 Wataniya Insurance Co -0.91 0.00 47.71 135,662 Combined Group Contracting 780.00 85 Bank Sohar 0.18 -1.11 1,588,116 Ahli United Bank B.S.C 0.65 0.00 500,000 Abdullah Al Othaim Markets 99.55 -1.05 6,240 Zima Holding Co Ksc 42.50 -1.16 1,738,267 Bank Nizwa 0.08 0.00 538,411 Hail Cement 12.53 0.24 142,038 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.24 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, June 14, 2016 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 17,807.99 -57.35 Apple Inc 97.66 -1.18 16,312,631 S&P 500 Index 2,090.85 -5.22 Microsoft Corp 50.42 -2.06 48,660,821 Nasdaq Composite Index 4,868.85 -25.70 Exxon Mobil Corp 90.97 1.10 4,444,558 S&P/Tsx Composite Index 14,028.40 -9.14 Johnson & Johnson 117.00 -0.01 2,993,901 Mexico Bolsa Index 44,892.22 -285.28 General Electric Co 30.01 -0.12 10,970,853 Brazil Bovespa Stock Idx 49,575.45 +153.29 Jpmorgan Chase & Co 63.75 -0.15 5,063,660 Ftse 100 Index 6,059.64 -56.12 Procter & Gamble Co/The 82.87 -0.39 2,403,710 Cac 40 Index 4,240.24 -66.48 Verizon Communications Inc 52.66 -0.03 4,901,919 Dax Index 9,684.40 -150.22 Wal-Mart Stores Inc 70.64 -0.71 2,344,727 Ibex 35 Tr 8,331.50 -159.00 Pfizer Inc 34.73 -1.60 11,766,398 Nikkei 225 16,019.18 -582.18 Coca-Cola Co/The 45.16 -1.81 4,362,508 Japan Topix 1,284.54 -46.18 Chevron Corp 102.54 0.55 2,330,395 Hang Seng Index 20,512.99 -529.65 Visa Inc-Class A Shares 78.96 -1.52 3,400,174 All Ordinaries Indx 5,391.57 -45.87 Home Depot Inc 128.67 -0.12 1,794,010 Nzx All Index 1,312.19 -8.69 Walt Disney Co/The 97.97 0.65 4,070,673 Bse Sensex 30 Index 26,396.77 -238.98 Merck & Co. Inc. 56.36 -0.79 2,167,389 Nse S&P Cnx Nifty Index 8,110.60 -59.45 Intel Corp 32.43 1.20 9,097,134 Straits Times Index 2,785.43 -37.54 Intl Business Machines Corp 151.52 -0.56 1,567,634 Karachi All Share Index 24,738.85 -20.65 Cisco Systems Inc 29.03 0.00 6,097,456 Jakarta Composite Index 4,807.23 -40.83 Unitedhealth Group Inc 138.66 -0.42 1,123,856 Mcdonald’s Corp 123.38 0.83 1,925,180 3M Co 167.98 -0.34 716,705 Nike Inc -Cl B 55.04 -0.13 3,742,075 TOKYO Boeing Co/The 130.66 -0.37 1,425,805 United Technologies Corp 102.07 0.07 1,182,828 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 149.33 -0.38 1,250,834 Rakuten Inc 1,079.50 -4.21 5,272,400 American Express Co 63.96 -1.56 2,735,539 Kyocera Corp 5,091.00 -3.96 1,047,800 Du Pont (E.I.) De Nemours 67.07 -0.72 723,769 Nissan Motor Co Ltd 1,009.00 -4.18 12,001,100 Caterpillar Inc 75.79 -0.32 1,710,119 Hitachi Ltd 456.30 -6.01 31,993,000 Travelers Cos Inc/The 113.44 -0.33 495,970 Takeda Pharmaceutical Co Ltd 4,449.00 -2.28 2,821,100 Jfe Holdings Inc 1,339.00 -5.77 4,053,700 Ana Holdings Inc 297.60 -2.43 17,070,000 Traders work at the Frankfurt Stock Exchange. The DAX 30 closed down 1.8% to 9,657.44 points yesterday. FTSE 100 Mitsubishi Electric Corp 1,260.00 -2.63 6,232,000 Sumitomo Mitsui Financial Gr 3,154.00 -3.69 8,651,800 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 2,776.00 -3.96 4,178,700 Fast Retailing Co Ltd 29,055.00 -2.55 737,300 Wpp Plc 1,520.00 -1.49 3,299,953 Ms&Ad Insurance Group Holdin 2,781.50 -4.42 1,953,800 Worldpay Group Plc 275.70 -0.04 2,222,698 Kubota Corp 1,425.00 -3.29 6,930,700 Wolseley Plc 3,576.00 -1.49 1,055,476 Seven & I Holdings Co Ltd 4,452.00 -3.24 1,741,900 Wm Morrison Supermarkets 181.40 -1.31 6,101,873 Inpex Corp 833.00 -5.77 6,197,400 Whitbread Plc 4,023.00 -1.15 484,070 Europe markets slide Resona Holdings Inc 381.80 -2.43 11,898,700 Vodafone Group Plc 211.50 -1.56 43,202,992 Asahi Kasei Corp 671.40 -3.26 5,803,000 United Utilities Group Plc 945.50 -0.58 1,572,584 Kirin Holdings Co Ltd 1,781.50 -3.31 2,563,400 Unilever Plc 3,126.50 -1.20 2,076,747 Marubeni Corp 475.00 -3.61 13,219,600 Tui Ag-Di 980.50 -0.96 729,057 Mitsubishi Ufj Financial Gro 504.70 -4.34 67,184,700 Travis Perkins Plc 1,772.00 -1.50 464,390 Mitsubishi Chemical Holdings 503.10 -5.34 5,770,700 as Brexit risk looms Tesco Plc 149.60 -1.29 25,825,691 Fanuc Corp 16,155.00 -3.44 862,300 Taylor Wimpey Plc 179.90 -1.80 10,269,572 Daito Trust Construct Co Ltd 15,610.00 -2.86 436,600 Standard Life Plc 309.90 -1.99 3,855,360 lower compared with Friday’s close. In with a July raise looking less and less Otsuka Holdings Co Ltd 4,664.00 -2.18 1,161,900 AFP Standard Chartered Plc 502.70 -2.56 7,910,538 Oriental Land Co Ltd 6,877.00 -1.22 1,089,400 the eurozone, Frankfurt’s DAX 30 in- likely,” Mark Vickery, of Zacks Invest- St James’s Place Plc 845.00 -1.97 775,727 London Sekisui House Ltd 1,843.50 -4.23 3,284,700 dex and the CAC 40 in Paris were both ment Research, said in a note to cli- Sse Plc 1,514.00 -1.11 1,590,488 Secom Co Ltd 7,960.00 -3.85 724,000 around 1.8% lower. ents. Smith & Nephew Plc 1,138.00 -0.09 1,094,569 Tokio Marine Holdings Inc 3,444.00 -3.58 2,104,600 Sky Plc 895.50 -3.24 3,751,517 orld stock markets slid Banking stocks weighed in Milan, “But the vote whether Great Britain Aeon Co Ltd 1,579.00 -3.10 2,424,900 Shire Plc 4,103.00 -1.18 1,308,995 further yesterday as fears where the main index closed 2.9% will exit the European Union is far less Mitsui & Co Ltd 1,233.50 -4.49 8,684,000 Severn Trent Plc 2,246.00 0.27 287,888 heightened that Britain down, its lowest level since February. certain.” Kao Corp 6,000.00 -0.40 2,436,500 W Schroders Plc 2,485.00 -2.63 226,539 could vote to leave the European Un- In foreign exchange, the British For Oanda’s Erlam, the Brexit risk is Dai-Ichi Life Insurance 1,235.00 -4.63 6,415,200 Sainsbury (J) Plc 238.70 -1.28 7,210,720 Mazda Motor Corp 1,654.00 -6.00 8,058,500 ion in next week’s referendum, traders pound hit two-month lows against also playing a role in the Fed’s timing. Sage Group Plc/The 615.50 -0.32 1,491,934 Komatsu Ltd 1,845.00 -3.28 3,896,100 said. both the euro and dollar. “The Fed will meet this week and Sabmiller Plc 4,289.00 -0.01 1,410,615 West Japan Railway Co 6,684.00 -3.65 910,000 Tokyo’s main stocks index dived The pound’s latest tumble against while the jobs report may have given Rsa Insurance Group Plc 455.70 -1.58 1,211,551 Murata Manufacturing Co Ltd 12,075.00 -4.13 884,100 Royal Mail Plc 521.50 -1.14 1,638,391 3.5% to a two-month low point yester- the dollar “could be the tip of the ice- them a reason to put off raising inter- Kansai Electric Power Co Inc 1,013.50 -3.61 2,732,300 Royal Dutch Shell Plc-B Shs 1,795.50 0.22 7,483,288 day, as worries over Britain’s EU mem- berg” if Britons opted to quit the EU, est rates again, the closing of the gap Denso Corp 3,759.00 -3.84 2,404,200 Royal Dutch Shell Plc-A Shs 1,778.00 -0.11 6,594,599 bership vote on June 23 sparked a rally said Alex Holmes, of Capital Econom- ahead of the UK referendum is likely Sompo Japan Nipponkoa Holdin 2,745.00 -2.68 1,593,100 Royal Bank Of Scotland Group 217.20 1.54 17,707,787 the real reason behind the delay,” he Daiwa House Industry Co Ltd 3,062.00 -3.68 1,447,400 in the safe haven yen currency, which ics. Rolls-Royce Holdings Plc 602.50 -0.17 3,837,571 Jx Holdings Inc 415.90 -3.73 10,241,800 in turn hammered shares in Japanese The European single currency said. Rio Tinto Plc 1,956.00 0.72 2,558,786 Nippon Steel & Sumitomo Meta 1,956.50 -4.82 4,176,400 exporters. meanwhile dropped to 119 yen, the On Friday European markets dived Rexam Plc 634.50 -0.70 5,933,793 Suzuki Motor Corp 2,708.00 -3.13 2,068,500 after European Central Bank chief Relx Plc 1,214.00 -1.06 1,355,751 Craig Erlam, senior market analyst lowest level since February 2013. Nippon Telegraph & Telephone 4,529.00 -4.03 3,604,700 Reckitt Benckiser Group Plc 6,695.00 -0.77 1,036,280 at Oanda trading group, said “risk Markets are on edge also as the US, Mario Draghi called for action to boost Ajinomoto Co Inc 2,431.50 -2.51 2,877,000 Randgold Resources Ltd 6,675.00 0.75 406,924 aversion” continued to drive markets Japanese and British central banks the eurozone economy, in comments Mitsui Fudosan Co Ltd 2,472.50 -3.66 4,097,000 Prudential Plc 1,227.00 -1.21 2,640,083 ahead of “a number of key risk events”. meet this week, with investors worry- taken as a sign it is struggling in its Ono Pharmaceutical Co Ltd 4,740.00 -2.91 2,178,400 Provident Financial Plc 2,679.00 -1.90 109,926 Daikin Industries Ltd 8,646.00 -3.54 952,900 “The UK referendum next week is ing about global growth as well as the battle against torpid growth. Persimmon Plc 1,944.00 -1.62 623,518 Bank Of Yokohama Ltd/The 0.00 0.00 - right at the top of this list given the possible impact of Britain quitting the Oil prices also fell again yesterday Pearson Plc 797.50 0.06 2,542,076 Toray Industries Inc 894.10 -3.37 5,779,000 destabilisation eff ects that a vote to EU, as polls suggest that a Brexit is a even as Opec forecast a further tight- Paddy Power Betfair Plc 9,125.00 -0.82 57,622 Astellas Pharma Inc 1,527.50 -2.55 8,293,900 Old Mutual Plc 177.00 -1.34 6,275,024 leave the EU could have on global mar- real possibility. ening of supplies that could lead to a Bridgestone Corp 3,542.00 -2.50 2,685,100 Next Plc 5,225.00 -1.14 315,396 kets,” he said in a note to investors. Few expect any move on interest greater balance between supplies and Sony Corp 2,930.00 -3.97 8,193,400 National Grid Plc 972.40 -0.43 4,664,266 US stocks were moderately lower, rates from the US Federal Reserve and demand for oil. Hoya Corp 3,604.00 -5.06 1,031,700 Mondi Plc 1,305.00 -0.31 897,606 but shares in professional networking Bank of England, but observers are di- In London, the FTSE 100 down Sumitomo Mitsui Trust Holdin 341.80 -4.04 16,721,000 Merlin Entertainment 414.00 -1.62 790,285 Japan Tobacco Inc 4,249.00 -4.02 4,718,100 company LinkedIn shot up nearly 48% vided over whether the Bank of Japan 1.2% at 6,044.97 points; Frankfurt – Mediclinic International Plc 877.50 -0.57 527,701 Osaka Gas Co Ltd 391.60 -4.93 8,029,000 on news of its $26.2bn takeover by Mi- will announce more stimulus. DAX 30 down 1.8% at 9,657.44 points Marks & Spencer Group Plc 360.60 -1.82 4,577,319 Sumitomo Electric Industries 1,484.00 -3.32 3,683,400 crosoft. “Chances of the Fed raising interest and Paris – CAC 40 down 1.85% at London Stock Exchange Group 2,517.00 -1.83 264,696 Daiwa Securities Group Inc 582.00 -3.31 10,377,000 Lloyds Banking Group Plc 64.42 -3.92 199,103,142 London’s FTSE 100 index was 1.2% rates this month are nil at this point, 4,227.02 points at the close yesterday. Softbank Group Corp 5,712.00 -4.74 6,371,800 Legal & General Group Plc 218.30 -1.89 9,426,693 Mizuho Financial Group Inc 158.50 -2.94 132,257,100 Land Securities Group Plc 1,127.00 -1.23 1,218,414 Nomura Holdings Inc 415.00 -4.58 24,009,300 Kingfisher Plc 356.20 -0.61 4,657,269 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,417.50 -3.44 1,802,500 Johnson Matthey Plc 2,898.00 -1.83 336,958 Fuji Heavy Industries Ltd 3,753.00 -3.99 2,957,400 Itv Plc 202.20 -1.56 12,270,198 Ntt Docomo Inc 2,690.00 -3.41 3,577,500 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 293.60 -0.88 1,223,340 Sumitomo Realty & Developmen 2,759.50 -4.47 2,536,000 Intl Consolidated Airline-Di 489.90 -0.91 5,096,161 Aluminum Corp Of China Ltd-H 2.35 -2.49 11,075,603 Hong Kong & China Gas 13.62 -2.44 11,426,214 Sumitomo Metal Mining Co Ltd 1,067.00 -4.82 5,082,000 Intertek Group Plc 3,152.00 -0.63 242,860 Bank Of East Asia Ltd 28.30 -4.07 4,111,264 Hong Kong Exchanges & Clear 183.40 -1.87 5,720,205 Orix Corp 1,392.00 -4.30 6,676,400 Intercontinental Hotels Grou 2,591.00 -0.38 1,079,775 Bank Of China Ltd-H 3.19 -2.15 526,767,214 Hsbc Holdings Plc 47.90 -2.94 43,785,480 Asahi Group Holdings Ltd 3,531.00 -1.45 1,488,300 Inmarsat Plc 714.00 1.49 2,011,627 Bank Of Communications Co-H 4.84 -2.62 42,279,888 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 67,980.00 -0.85 235,100 Informa Plc 649.50 -1.07 672,899 Belle International Holdings 4.20 -4.55 12,507,603 Ind & Comm Bk Of China-H 4.11 -1.91 267,152,388 Nidec Corp 7,820.00 -4.03 938,500 Imperial Brands Plc 3,623.50 -1.48 1,500,530 Boc Hong Kong Holdings Ltd 23.20 -2.11 12,317,453 Li & Fung Ltd 3.76 -4.33 25,050,349 Isuzu Motors Ltd 1,275.00 -2.04 4,129,900 Hsbc Holdings Plc 431.80 -0.45 24,973,003 Cathay Pacific Airways 11.90 -1.49 2,808,694 Mtr Corp 37.60 -1.05 3,237,608 Unicharm Corp 2,069.00 -2.08 2,429,700 Hargreaves Lansdown Plc 1,230.00 -3.00 419,971 Ck Hutchison Holdings Ltd 89.85 -2.18 8,214,698 New World Development 7.39 -1.99 14,354,643 Shin-Etsu Chemical Co Ltd 6,055.00 -3.31 1,164,700 Hammerson Plc 567.00 -0.70 1,101,856 China Coal Energy Co-H 3.40 -0.58 11,557,305 Petrochina Co Ltd-H 5.41 -4.42 126,965,145 Smc Corp 26,040.00 -3.14 215,800 Glencore Plc 133.40 -0.52 28,616,162 China Construction Bank-H 5.06 -1.36 406,292,538 Ping An Insurance Group Co-H 34.10 -2.43 28,996,027 Mitsubishi Corp 1,831.00 -4.73 4,835,100 Glaxosmithkline Plc 1,421.00 0.53 5,882,303 China Life Insurance Co-H 16.60 -2.24 45,162,637 Power Assets Holdings Ltd 75.90 -2.00 4,216,261 Nintendo Co Ltd 15,355.00 -4.42 488,200 Gkn Plc 270.80 0.22 5,795,872 China Merchants Hldgs Intl 20.20 -2.65 3,785,395 Sino Land Co 12.04 -2.75 4,192,976 Eisai Co Ltd 6,080.00 -3.74 750,000 Fresnillo Plc 1,235.00 1.73 1,160,291 China Mobile Ltd 87.30 -1.97 12,618,287 Sun Hung Kai Properties 90.40 -2.59 4,066,156 Sumitomo Corp 1,011.00 -3.67 4,977,200 Experian Plc 1,265.00 -1.33 1,033,899 China Overseas Land & Invest 23.65 -0.63 17,781,322 Swire Pacific Ltd - Cl A 85.00 -2.30 1,461,066 Canon Inc 3,035.00 -2.22 3,694,000 Easyjet Plc 1,424.00 -0.77 1,071,853 China Petroleum & Chemical-H 5.38 -3.24 85,367,171 Tencent Holdings Ltd 169.50 -3.20 21,169,298 Japan Airlines Co Ltd 3,470.00 -2.64 1,518,200 Dixons Carphone Plc 406.90 -1.33 925,003 China Resources Beer Holdin 16.72 -2.34 2,035,986 Wharf Holdings Ltd 44.35 -2.74 5,616,664 Direct Line Insurance Group 351.00 -0.28 3,624,080 China Resources Land Ltd 17.98 -4.67 8,859,348 China Resources Power Holdin 11.40 -2.73 9,231,154 Diageo Plc 1,780.50 -1.68 5,843,562 SENSEX Dcc Plc 6,270.00 -0.79 186,568 China Shenhua Energy Co-H 12.52 -2.64 15,077,876 GCC INDICES Crh Plc 2,018.00 -1.70 802,085 China Unicom Hong Kong Ltd 8.25 -4.18 33,239,243 Compass Group Plc 1,281.00 0.16 1,641,314 Company Name Lt Price % Chg Volume Citic Ltd 10.86 -3.04 12,952,631 Indices Lt Price Change Coca-Cola Hbc Ag-Di 1,410.00 -0.49 240,397 Clp Holdings Ltd 75.15 -1.89 3,944,857 Doha Securities Market Zee Entertainment Enterprise 463.75 1.09 819,594 9,704.36 -89.66 Centrica Plc 202.40 -0.25 10,308,491 Cnooc Ltd 9.39 -2.09 62,383,353 Saudi Tadawul Yes Bank Ltd 1,065.15 0.17 2,975,652 6,589.64 +18.75 Carnival Plc 3,347.00 -0.36 560,981 Cosco Pacific Ltd 7.95 2.58 4,584,432 Kuwait Stocks Exchange Wipro Ltd 541.20 -0.76 685,320 5,412.31 -10.08 Capita Plc 1,005.00 -2.14 1,241,382 Esprit Holdings Ltd 6.23 0.00 1,328,665 Bahrain Stock Exchage Vedanta Ltd 113.95 -2.44 12,003,179 1,123.30 +7.35 Burberry Group Plc 1,051.00 -1.59 2,225,801 Fih Mobile Ltd 2.52 -2.33 6,887,457 Oman Stock Market Ultratech Cement Ltd 3,397.90 0.39 204,222 5,847.44 -20.97 Bunzl Plc 2,021.00 -0.98 306,580 Hang Lung Properties Ltd 14.78 -2.25 5,667,730 Abudhabi Stock Market Tech Mahindra Ltd 534.10 -0.64 954,077 4,365.09 -2.81 Bt Group Plc 412.25 -2.44 12,422,764 Hang Seng Bank Ltd 133.80 -2.26 2,284,461 Dubai Financial Market Tata Steel Ltd 323.10 -3.38 7,211,527 3,323.43 -12.67 British Land Co Plc 720.00 -1.17 2,518,783 Henderson Land Development 41.65 -2.12 2,259,050 Tata Power Co Ltd 75.65 -0.72 9,110,407 British American Tobacco Plc 4,162.50 -1.33 1,212,622 Tata Motors Ltd 444.25 -2.78 10,348,257 Bp Plc 369.50 -0.34 17,045,051 Tata Consultancy Svcs Ltd 2,547.00 -0.34 551,493 Bhp Billiton Plc 825.30 -0.24 6,600,106 Sun Pharmaceutical Indus 746.45 0.68 3,098,453 Berkeley Group Holdings 3,131.00 -0.89 552,617 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 201.80 -2.02 22,865,526 Barratt Developments Plc 538.00 -1.65 2,856,036 Reliance Industries Ltd 981.10 0.45 2,524,519 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 165.60 -2.24 31,876,254 Punjab National Bank 83.00 -1.43 9,866,163 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 477.70 -0.38 6,354,402 Power Grid Corp Of India Ltd 151.80 -1.68 4,159,071 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 1,002.00 -1.38 713,985 Oil & Natural Gas Corp Ltd 213.25 -2.27 2,183,358 this data.” Aviva Plc 413.00 -2.02 6,002,364 Ntpc Ltd 148.75 -1.82 1,232,905 Astrazeneca Plc 3,826.00 -0.67 1,920,995 Maruti Suzuki India Ltd 4,134.75 0.57 427,909 Associated British Foods Plc 2,864.00 -0.10 528,667 Mahindra & Mahindra Ltd 1,357.35 -1.34 1,309,922 Ashtead Group Plc 961.50 0.21 2,043,440 Lupin Ltd 1,452.55 1.05 1,171,197 CURRENCIES Arm Holdings Plc 960.50 -0.57 3,548,851 Larsen & Toubro Ltd 1,466.15 -1.45 1,621,471 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 418.20 -0.10 2,519,931 DINAR DINAR Kotak Mahindra Bank Ltd 755.90 0.69 1,670,939 Anglo American Plc 637.60 -0.76 5,684,538 Itc Ltd 349.90 -0.23 8,162,767 Admiral Group Plc 1,853.00 -2.73 417,971 Infosys Ltd 1,180.90 0.03 2,764,874 3I Group Plc 542.00 -2.25 1,438,645 Indusind Bank Ltd 1,108.45 -0.13 1,019,825 #N/A! 0.00 0.00 - Idea Cellular Ltd 99.85 -3.53 12,095,678 Icici Bank Ltd 243.75 -3.50 13,925,091 TOKYO Housing Development Finance 1,205.35 -2.04 6,516,815 Hindustan Unilever Ltd 874.20 -0.05 1,114,855 Hindalco Industries Ltd 114.70 -0.52 16,558,026 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,036.45 -1.08 497,158 East Japan Railway Co 9,475.00 -2.02 1,260,800 Hdfc Bank Limited 1,152.90 -0.73 897,094 Itochu Corp 1,286.00 -3.81 5,241,000 Hcl Technologies Ltd 753.65 0.35 5,111,427 Fujifilm Holdings Corp 4,199.00 -3.20 1,715,100 Grasim Industries Ltd 4,311.90 0.02 113,790 Yamato Holdings Co Ltd 2,234.50 -2.89 1,286,100 Gail India Ltd 371.45 0.68 1,729,299 Chubu Electric Power Co Inc 1,516.50 -3.28 1,839,300 Dr. Reddy’s Laboratories 3,088.25 0.73 415,573 Mitsubishi Estate Co Ltd 1,969.00 -2.98 5,751,000 Coal India Ltd 308.50 0.60 2,621,453 Mitsubishi Heavy Industries 403.10 -4.88 13,112,000 Cipla Ltd 468.70 -1.63 1,455,764 Toshiba Corp 276.50 -5.47 48,586,000 Cairn India Ltd 139.30 -4.59 2,247,323 Shiseido Co Ltd 2,800.00 -0.69 1,502,600 Bosch Ltd 21,597.95 0.49 15,560 Shionogi & Co Ltd 5,777.00 -4.21 1,090,000 Bharti Airtel Ltd 342.40 -2.48 2,044,238 Tokyo Gas Co Ltd 430.00 -3.50 12,127,000 Bharat Petroleum Corp Ltd 1,008.65 2.21 1,393,350 Tokyo Electron Ltd 7,750.00 -5.01 1,123,000 Bharat Heavy Electricals 120.35 -2.75 5,182,330 Panasonic Corp 906.00 -4.63 11,879,800 Bank Of Baroda 146.10 -0.14 5,753,865 Fujitsu Ltd 407.00 -4.77 10,411,000 Bajaj Auto Ltd 2,583.75 0.15 132,674 Central Japan Railway Co 18,570.00 -3.66 399,800 Axis Bank Ltd 531.15 -1.83 7,103,697 T&D Holdings Inc 959.70 -4.22 5,163,200 Asian Paints Ltd 994.90 0.29 860,889 Toyota Motor Corp 5,428.00 -3.54 10,462,600 Ambuja Cements Ltd 237.35 0.87 8,684,039 Kddi Corp 2,993.50 -4.05 4,853,000 Adani Ports And Special Econ 202.60 -0.07 2,640,471 Nitto Denko Corp 6,746.00 -4.68 1,041,400 Acc Ltd 1,546.80 -0.57 392,784

Gulf Times Tuesday, June 14, 2016 11 BUSINESS

Yen, Brexit and inflation keep BoJ on edge, but policy seen steady for now

Apple must pledge Reuters Tokyo

A renewed spike in the yen is adding to headaches for Bank of Japan policymakers meeting for a rate review this week, but many of them still appear to prefer to hold off on expanding stimulus despite signs of weakening inflation. India plants before While a possible British vote to leave the European Union is the biggest near-term concern for BoJ off icials, they also see it as reason to hold fire until after the June 23 referendum. The bigger problem for the BoJ is a weakening price trend that is stoking fears Japan may revert to the years when widespread deflationary sentiment discouraged companies from raising prices and enfeebled the economy. But growing doubts, including from prominent overseas stores get approval investors, over the feasibility of expanding quantitative easing or deepening negative interest rates are complicating the BoJ’s eff orts Bloomberg to shake off deflation with heavy money printing. New Delhi “Investors, both local and overseas, have become increasingly pessimistic about the central bank’s ability and willingness to ease monetary policy again,” said Mansoor Mohi-Uddin, senior market ndia is seeking a commitment from strategist at RBS. The BoJ is likely to keep policy steady at the two- Apple to bring manufacturing facilities day rate review ending on Thursday, Reuters polls showed, as many Ito the country before the government policymakers want more time to scrutinise the eff ect of January’s will approve the iPhone maker’s request surprise decision to adopt negative interest rates. to open its own retail stores, according to But BoJ governor Haruhiko Kuroda may surprise markets by a senior government offi cial with direct easing if the yen continues its ascent, though it will take a yen spike knowledge of the matter. well above 105 to the dollar for this to happen, analysts say. The government may loosen existing The decision may also be aff ected by the US Federal Reserve’s policies that require local sourcing for rate decision and policy comments a day before the BoJ’s. companies that want to open stores if Ap- The dollar slid to 105.86 yen yesterday, its lowest since May 3, as ple announces a timeframe for some do- investors bought the safe-haven yen on Brexit fears. mestic manufacturing, said the offi cial, A Reuters poll showed economists see a higher chance of the asking not to be identifi ed because the BoJ easing at its meeting on July 28-29, when it issues fresh quar- matter is private. The country’s fi nance terly growth and inflation forecasts. and commerce ministries are in talks The British referendum on Brexit, as well as Japan’s upper house about adjusting current policies to allow poll on July 10, will be over by then. Apple to make a revised application, even The BoJ will also have more data to check corporate price- if those facilities aren’t complete, said the setting behaviour such as its “tankan” quarterly business sentiment person. Apple wouldn’t have to own the survey due on July 1. plant itself, but could work with a manu- The BoJ is caught in a bind. Despite nearly three years of aggres- facturing partner like Foxconn Technology sive money printing, Japan’s economic activity remains uninspired Group as it does now in China. and inflation has ground to a halt on weak consumption and ex- Apple is pushing to increase its pres- ports. Almost all key indicators the BoJ had used to explain that its ence in India as the country is poised to stimulus was succeeding, such as its inflation index that strips away become the fastest-growing smartphone the eff ect of energy costs, are now weakening. market in the world and sales slow in the While Kuroda argues he has plenty of ammunition to ease fur- rest of the world. Last month, chief execu- A pedestrian walks past an iPhone 6 advertisement at an electronics store in Mumbai. Apple is pushing to increase its presence in ther, there are doubts on what more he can deliver and whether it tive offi cer Tim Cook visited the country India as the country is poised to become the fastest-growing smartphone market in the world. will be any more successful than earlier stimulus eff orts. for the fi rst time and met with Modi. The The BoJ already holds a quarter of Japan’s government bond Cupertino, California-based company has Electronics and Micromax Informatics. devices, and move beyond the image of respond to an e-mail seeking comment. market and its negative rate policy has drawn criticism from banks used fl agship stores in New York, Tokyo The country is projected to have a billion being ‘just another luxury brand’ in the Last month, Finance Minister Arun Jait- for confusing rather than calming markets. and Shanghai to promote its products and smartphones sold over the next fi ve years. market,” said Rushabh Doshi, a technology ley decided to support a decision by India’s Some BoJ board members, including Takehiro Sato, have openly boost sales, but in India it sells through A network of prominent stores could help industry analyst at research fi rm Canalys. Foreign Investment Promotion Board that questioned the feasibility of sticking with the bank’s 2% inflation partners such as Redington India as well not just burnish the brand, but also push India requires companies to procure at Apple will have to comply with the local target, which has already been pushed back several times, most as the retail units of Indian conglomerates the benefi ts of services from iTunes to Siri least 30% of their components locally if sourcing rules. India seeks to encourage recently to early 2018. Foreign investors are also bailing out of Tata Group and Reliance Industries. to potential customers. they want to sell through their own retail companies to make products in the coun- Japanese stocks on disillusionment about premier Shinzo Abe’s Apple has little market share in India “Apple’s challenge in a price-conscious stores, with some exceptions. Apple makes try as part of its industrial policy, aimed at “Abenomics” stimulus policies, which may diminish any positive now, as consumers opt for less expen- market like India is to weave a strong sense most of its products in China and doesn’t reaping the benefi ts that come from man- market reaction to further BoJ easing. sive devices from rivals such as Samsung of value proposition around its expensive currently meet that criteria. Apple did not ufacturing facilities and jobs. Gulf Times 12 Tuesday, June 14, 2016 BUSINESS China investment slows to 15-yr low; more stimulus seen

Reuters A further increase in debt levels in January-May. It also means authori- bility of more imminent policy easing private fi rms) is the outlook for global To be sure, investment in the min- Beijing could handicap China’s long-term eco- ties may have to take stronger measures by China’s central bank, after some had demand and China’s economy,” said ing sector did fall 16.4%, suggesting nomic growth, David Lipton, fi rst dep- to support the economy if they contin- scaled back such expectations follow- Zhou. “There is no linkage between the the government’s goal of rebalancing uty managing director of the IMF, said ue to stick to their 2016 growth target, ing upbeat indicators in March. two (government pledges and private the economy away from heavy industry rowth in China’s fi xed-asset in- on Saturday. which offi cials reaffi rmed yesterday “I see rising odds of a cut in RRR company actions). There’s a mismatch may still be intact. vestment slipped below 10% for Data yesterday showed fi xed-asset despite generally weak April and May (banks’ reserve requirements) or even a between the government and the mar- But other May data has also been Gthe fi rst time since 2000 in Jan- investment growth – a key driver of data. policy (interest) rate cut, before the end ket. I don’t see it turning around.” mixed, suggesting that while the econ- uary-May as a boost from record credit China’s economy – cooled to 9.6% in Indeed, other data yesterday showed of the second quarter,” Zhou said. China needs to open up its state sec- omy may be bottoming out and less at growth seemed to be quickly fading, January-May from a year earlier, miss- that Beijing may already be doubling Global investors are also cooling on tor further in order to arrest the steep risk of a hard landing, it is still strug- putting expectations of further stimu- ing expectations of 10.5%. down on its stimulus bet, as govern- China, fearing growth may be weaker slowdown in private investment, sta- gling for traction. lus back on the table. Even more worrying, investment by ment spending soared 17.6% in May than offi cial data suggest and citing in- tistics department spokesman Sheng Factory output grew 6% in May from Analysts say a sharp deceleration private fi rms slowed to a record low, on-year, versus 4.5% in April. creasing signs of protectionism. Laiyun told a news conference, adding a year earlier, the same as in April and in private investment could jeopard- with growth cooling to 3.9% from 5.2% Announcements of big new infra- Foreign direct investment fell 1% in that falling prices and industrial over- marginally better than expected. ise China’s growth target of 6.5%-7% in Jan-April and double-digits last year. structure projects seem to come al- May on-year, the fi rst drop since De- capacity have impacted private invest- Analysts believe industrial output this year unless the government pumps Private investment accounts for most daily. “The government is trying cember. ment. has been supported by the govern- even more money into the economy, about 60% of overall investment in to decelerate a bit on credit growth, German Chancellor Angela Merkel, Offi cials also took pains to say the ment’s infrastructure spending spree despite growing global fears that the China. but there is no point at this moment on a visit to Beijing, stressed the need government was committed to cutting and a recovery in the property market, country is already amassing too much Flagging private investment suggests because it will have an impact on the for a level playing fi eld for foreign fi rms overcapacity, especially in “old econo- though growth in that sector slowed, debt. that more and more of China’s growth growth outlook. amid growing pressure from industry to my” heavy industries such as steel and too. Despite strong car sales, consump- The International Monetary Fund is dependent on government spending Growth is still more important than confront China more forcefully. coal. tion also softened slightly, with retail was the latest to voice such concerns channelled through bloated and inef- anything else in China,” said Zhou Hao, Chinese policymakers have vowed They said nearly 5.8mn new jobs sales growth easing to 10%.Trade data at the weekend, saying Beijing must act fi cient state enterprises, which Beijing senior Asia emerging market economist repeatedly this year to take steps to were created in the fi rst fi ve months last week showed a further drop in ex- quickly to tackle mounting corporate has publicly pledged to streamline and at Commerzbank. support private fi rms and investment, of the year, bucking both offi cial and ports but the smallest decline in im- debt which it estimates has swelled to reform. The soft May data also prompted but analysts see little progress. private activity surveys which showed ports in more than a year, suggesting about 145% of gross domestic product. Investment by state fi rms rose 23.3% some analysts to underline the possi- “The most important factor (for companies continue to shed staff . domestic demand was picking up.

Merkel leaves door open to Li: China does not want German counter-bid for Kuka

Reuters trade war with Europe Beijing Reuters Beijing German Chancellor Angela Merkel signalled yesterday that she would not try to prevent a Chinese takeo- hina does not want a trade war with Eu- ver of German robot maker Kuka rope, Premier Li Keqiang said yesterday at but also left the door open to Ger- Ca news briefi ng with Germany’s Chancellor man firms making a counter-off er. who said she was sure a solution could be found to Augsburg-based Kuka is the tensions over Beijing’s status in the World Trade target of a takeover bid by Chinese Organisation. home appliance maker Midea. As both sides appeared to play down simmering The off er has fanned a furious de- diff erences between China and European powers, bate over Chinese takeovers in Eu- Airbus Helicopters fi nalised an agreement to build rope, with some German politicians an assembly line on a Sino-German business bark calling for tougher restrictions. in China and sell 100 helicopters to a Chinese con- “I still think there is an opportu- sortium. nity to come to a good solution,” Daimler AG and its Chinese partner, BAIC Merkel said at a joint news confer- Motor, also pledged to jointly invest 4bn yuan ence with the Chinese Premier Li ($608mn) to expand engine production. Keqiang during a visit to Beijing. Beijing sees Germany, China’s largest trading “And by the way nobody in partner in the European Union, as infl uential in Germany is forbidden from get- the 28-member bloc’s debate on the politically ting involved with Kuka,” she sensitive issue of its market economy status. added.”Now we have to look to see The European Commission is set to accept a what solutions can be found.” change to China’s trade status at the WTO by A spokeswoman for the German treating it as an economy controlled by the mar- economy ministry said during a ket, not the state. news conference in Berlin that no That would make it easier for Beijing to export alternative off er had been received into the bloc. for Kuka. “But we’d be pleased if But the Commission also wants to enhance the there is one,” she added. bloc’s ability to defend itself against cheap China’s Li stressed that it was a private heavily subsidised goods. sector issue and should be wound up Reluctance in Europe to give up a method to de- according to international conven- fend against cheap Chinese imports has set up a tions. No German firms have come looming dispute at the WTO and the prospect of forward as possible white knights for broader trade friction. Kuka. Siemens CEO Joe Kaeser said “China has already fulfi lled its obligations on at the weekend that he had no inter- joining the WTO. est in making a bid for the firm. What’s needed now is for the other parties to Merkel said there was a general fulfi l the matching obligations they had prom- openness towards investments ised,” Li said. from China but in return, it was “We don’t want to fi ght a trade war because this German Chancellor Angela Merkel (3rd from left) attends a meeting with Chinese President Xi Jinping (3rd from right) in Beijing yesterday. Merkel has expected that China opened up will benefi t nobody.” stressed the need for a level playing field for foreign firms amid growing pressure from industry to confront China more forcefully, and to step up protection and off ered the same investment German Chancellor Angela Merkel, who on for businesses from Chinese cyber attacks. conditions: “Germany has always Sunday began her ninth trip to China since taking off ered itself as an open invest- offi ce, said: “It does not help us to emotionalise “In the banking sector, we are at the start of a European commissioners are expected to debate fully, and to step up protection for businesses from ment market for businesses, includ- the whole subject. cooperation,” she said. the issue in late June or July, at a time of heightened Chinese cyber attacks. ing for Chinese companies,” she I am convinced that we can fi nd a solution on Li said there were informal barriers in Europe trade tension after global rivals accused China of “Germany has always presented itself as an said. Li later told a business forum the lines of what was promised 15 years ago.” for Chinese banks, which were disadvantaged dumping cheap steel exports after a slowdown in open investment market,” Merkel said.”We expect that China had got the message. The chancellor linked market access for Chi- compared to those based in Europe and the United demand at home. reciprocity also from the Chinese side.” “China will continue to open up, nese banks in Germany to a liberalisation of the States. Li said unilateral trade protection measures Foreign critics accuse China of not following and will take further steps to attract sector in China. “We need to talk more about how both sides wouldn’t help resolve the problem and that low- through on its reform agenda and of introducing foreign investors,” Li said, noting “We will certainly pay even more heed to reci- will be treated equally,” he said. Merkel said dur- end steel was not something China wanted to pro- new regulations that further restrict market ac- that foreign investors in China could procity in the fi nancial sector than in classic in- ing a trip to China last year that Germany favoured duce or sell and was committed to phasing out. cess. “The facts prove that China’s market is open. set up wholly-owned enterprises dustry,” she said, adding that German banks were granting China market economy status in princi- Merkel has also stressed the need for a level We will be even more open,” Li said.”We will take not just joint ventures. currently restricted by a 20% limit on the size of ple but that Beijing still had work to do, including playing fi eld for foreign fi rms amid growing pres- even more steps based on the principles of treating stakes they can buy in Chinese banks. further opening its public procurement markets. sure from industry to confront China more force- everyone equally, fairness and transparency.”

India’s May retail infl ation hits near 2-yr high on surging food prices

Reuters upwardly revised 5.47% in April. rate cuts in this fi nancial year.” New Delhi Food infl ation picked up to The government has also hiked 7.55% in May from an upwardly taxes by 0.5 percentage point on revised 6.40% in the previous services like telecoms, travel and ndia’s annual consumer month, as prices of vegetables, eating out from June 1. price inflation accelerated sugar and pulses rose between Yesterday’s data comes on the Ito a near two-year high in 11% and as much as 32% from a heels of a 0.8% contraction in in- May, driven by surging prices year ago. dustrial production in April. of food products such as pulses Retail infl ation has more than Asia’s third largest econo- and sugar, which could dampen halved since November 2013, my grew 7.9% in the quarter to hopes of a rate cut at least during thanks to a crash in global com- March, outpacing China’s 6.7% next monetary policy review in modity prices as well as subdued growth, and is projected to ex- August. rural demand. pand by around 7.75% in the cur- After leaving rates unchanged It had hit 7.03% in August 2014. rent fi scal year that started on last week, governor Raghuram Analysts fear an increase in the April 1. Rajan said the Reserve Bank of In- cost of petrol and diesel by more New Delhi expects good rainfall dia, which has targeted infl ation than 5% since May 1, and food between June and September, af- at 5% by March 2017, was looking items such as sugar and milk in ter two years of drought, to boost for room to reduce interest rates, the last month, could further heat growth and tame prices of food but there were concerns over up- up prices. items that account for nearly half ward pressure on food and com- “While there are some seasonal of Consumer Price Index. modity prices. factors at play, structural mis- The monsoon, which delivers Annual consumer prices, which matches are also evident in the 70% of annual rainfall, is criti- the RBI closely tracks to set its in- rise in protein infl ation,” said A cal for India’s 263mn farmers and terest rate policy, rose by 5.52% in Prasanna, economist at ICICI Se- their crops, such as rice, cane, People shop inside a grocery store at a residential area in Mumbai. Food inflation in India picked up to 7.55% in May from an upwardly May, according to a Reuters poll curities Primary Dealership. corn and cotton because nearly revised 6.40% in the previous month, as prices of vegetables, sugar and pulses rose between 11% and as much as 32% from a year ago. of economists, compared with an “We stick to our call of no more half of farmland lacks irrigation. Gulf Times Tuesday, June 14, 2016 13 BUSINESS

Fitch: Japan ratings Lotte scraps $4.5bn IPO downgrade possible after tax as probes deepen crisis hike delay Reuters Bloomberg Tokyo Seoul itch Ratings warned yes- otte Group shelved what may have terday that it could down- been a $4.5bn initial public off er- Fgrade Japan’s sovereign Ling, the world’s biggest so far this rating after Prime Minister year, for its hotel unit after widening Shinzo Abe delayed an increase investigations pushed the South Korean in the nationwide sales tax by conglomerate deeper into crisis. two-and-a-half years due to Hotel Lotte decided to hold off on the worries the economy has not IPO after talking to arrangers and con- shaken off defl ation. sidering both “internal and external is- Japan’s anaemic growth is also sues,” the company said in a statement a credit weakness because Abe’s in Seoul yesterday, a day after the par- attempts to refl ate the economy, ent group signalled the deal would be known as “Abenomics,” have not shelved. Despite the decision, the com- raised potential growth, Fitch pany will proceed with plans to expand said in a statement. its duty-free business, it said. The government could avoid It’s the latest blow to hit the conglom- a downgrade if it lays out new erate, which has 89 Korean units with steps to meet its fi scal discipline more than 100tn won ($85bn) in assets. targets, but a lack of measures With the group still reeling from a feud to bolster confi dence in its fi s- that tore its founding family apart, Lotte cal policy could lead to a down- sank into deeper turmoil last week as Ko- grade, Fitch said. rean prosecutors widened their probes “The government has decided into the business empire amid allegations to postpone the tax increase, of slush funds and embezzlement. which leaves us to revise our as- “This crisis can be viewed as a prob- sessment of the government’s lem of governance and lack of transpar- commitment to fi scal consolida- ency at Lotte Group,” said Kim Ho Joon, tion,” said Andrew Colquhoun, director of the governance research de- head of Asia-Pacifi c sovereigns partment at Daishin Securities Co in at Fitch. Seoul. “In the long term, Lotte needs “If it looks like the debt ratio to fundamentally improve its corporate is going to go on rising, then the governance.” next move in the rating could be All of Lotte’s eight listed units fell in downwards.” Seoul yesterday, losing a combined 1.1tn Fitch revised down its out- won in market value. The shares fell be- look for Japan’s A sovereign debt cause of the probe, according to Kookhee rating to negative from stable Han, an analyst at NH Investment & Se- yesterday, a move that was not curities Co. wholly unexpected given the The latest probes came days after an- market’s disappointment that other investigation – one looking into Shin Dong-bin, Lotte Group chairman, is surrounded by the media at Gimpo Airport in Seoul. Hotel Lotte decided to hold off on the IPO after talking to arrangers and critical fi scal reforms had been possible bribery – led Hotel Lotte to de- considering both ‘internal and external issues,’ the company said in a statement in Seoul yesterday, a day after the parent group signalled the deal would be shelved. put on the back burner. lay the IPO and scale back its proposed Japan’s A rating is fi ve notches price range. At the high end, the maxi- global fi nancial crisis and this quarter banned Lotte Shopping Co’s home- Westlake Chemical Corp for $2.4bn. the group and was then chairman, got below the top AAA rating. mum $4.5bn off ering would still have is headed for another slump relative to shopping channel from broadcasting Then there’s the power struggle atop sidelined to an honorary position and In general, the time frame been the world’s largest so far this year past years, according to data compiled during prime time hours for six months the dynasty that founded the group, the the eldest son was stripped of group po- for the negative outlook is the and the biggest ever in Korea. by Bloomberg. after the company was accused of omit- fi fth-largest of Korea’s family-run con- sitions. The older brother has since at- next 18 months to two years, That would have been a boon for As to Lotte, shelving the IPO will add ting names of two executives convicted glomerates – locally known as the chae- tempted multiple challenges to Shin Colquhoun said. Japan’s govern- the banks – Mirae Asset Daewoo Co, to the struggles it’s faced since last year. of bribery when applying for a licence. bol – that dominate the nation’s corpo- Dong Bin’s authority, but to little avail. ment was scheduled to raise the Citigroup and Bank of America Merrill Besides the probes, Hotel Lotte has been After the raid on its group headquar- rate landscape. Shin Dong Joo, the elder brother, said nationwide sales tax next year to Lynch – that had been struggling with a seeking to make up for losing a licence in ters, Lotte Chemical Corp said yesterday A year ago, Lotte Group chairman Shin in a statement last week that this is the 10% from 8% in April next year, slow year for such deals worldwide. For November for its key duty-free business, it withdrew its bid for Axiall Corp, citing Dong Bin faced a coup attempt by his old- biggest crisis that Lotte has ever faced but Abe said earlier this month the IPO market, the January-to-March the company’s biggest revenue source. the “diffi cult situation” that it’s facing in er brother and their patriarch father. The and called for the company to give a he would push this back to Oc- period was its worst quarter since the Last month, the Korean government Korea. Axiall instead agreed to be sold to plan backfi red as the father, who founded thorough explanation of the situation. tober 2019.

Airbus Fears in China’s ‘Silicon Valley’ that finalises property boom will hurt tech boom deal to Takata sees initial Reuters The price rises have been matched by a sharp ShenZhen, China increase in borrowing. build plant Outstanding mortgages rose 40% to 742bn yuan interest from up in 2015 and new mortgages jumped more than in China A housing boom in China’s wannabe “Silicon Val- 200% to 340bn yuan. ley” of Shenzhen risks undermining the city’s tech Blue-chip firms headquartered in Shenzhen boom as young professionals consider moving acknowledge the boom is a concern. Reuters out to avoid the highest residential prices in the Internet giant Tencent expanded its housing Paris/Beijing to 30 investors country. subsidy programme in May to include rent relief of In the space of four decades, Shenzhen has up to 15,000 yuan a year, a source at the firm said. transformed itself from a fishing village into a It also provides interest free loans of up to Airbus Helicopters, the world’s Reuters about making an investment in for new models. Valient Market manufacturing centre and now a tech hub – attract- 500,000 yuan ($76,214.86). “The company has largest supplier of commercial Tokyo Takata. Research has forecast the sup- ing top firms and young talent in sectors including been very proactive with their (housing) policies. helicopters, finalised an agree- Takata and Lazard, the in- plier’s global share of the infl a- technology, advertising and design. It’s very obvious,” said a Tencent employee who ment yesterday to build an as- vestment bank overseeing the tor market will sink to around But a property frenzy, which has driven prices only gave his surname Chen. sembly line in China as part of a s many as 30 poten- search for a fi nancial sponsor for 5% by 2020, from 22% in 2015. up by 580% in the past 10 years, is beginning to “They can’t off er these if they want to retain and deal to sell 100 H135 helicopters tial investors have in- Takata, declined to comment. The company’s other busi- weigh on the city’s competitiveness, tech firms, attract employees... to a local consortium. Adicated initial interest Takata is seeking fi nancial sup- nesses, including seat belt and professionals, industry groups and off icials say, just high property prices are a big concern for them.” The helicopter sale is worth in providing fi nancial support port as it faces mounting liabili- steering wheel manufacturing, as it strives to develop new economic drivers and Other major firms such as ZTE Corp, Huawei €700mn ($788mn) at catalogue for embattled Japanese air bag ties related to a massive global may remain profi table opera- pull away from old-economy manufacturing. Technologies, DJI Holdings and the Qianhai Free prices, but the value of the deal maker Takata Corp, two people recall of its potentially faulty air tions, it has said. The tech hub has drawn some of China’s top Trade Zone authority told Reuters they own apart- rises to €1bn when support and briefed on the talks said. bag infl ators, which can explode Other people with knowl- names including Internet giant Tencent and ments and dormitories that they rent to staff at initial industrial investment are About half of those com- with excessive force and spray edge of the discussions said the telecoms firm Huawei, plus emerging new leaders below-market rates. included, an Airbus Helicopters municating their interest to metal shrapnel into vehicle committee overseeing a resolu- such as DJI, the world’s biggest commercial drone Ren Zhengfei, founder and head of Shenzhen- spokesman said. The factory Takata’s newly appointed re- compartments. tion to Takata’s fi nancial and maker, and gene mapping company BGI. based Huawei, expressed concern in an interview will be located in the Sino-Ger- structuring adviser are from The defect has been linked to operational issues anticipates If these firms and those that are part of the tech- with China’s state-run Xinhua news agency about man Ecopark in the coastal city the auto industry, one of the 13 deaths and around 100 injuries an agreement between the auto hub’s ecosystem of startups struggle to attract the impact of rising property prices on business of Qingdao, and is expected to sources said. globally, mainly in the United parts supplier, a fi nancial spon- talent because of high housing costs, they could development on the mainland. start operations in 2018 with a At least one private equity States. The company has said it sor and automaker customers start to doubt if Shenzhen is the right location for Housing and production costs are too high, he capacity of 36 units a year, the investor has already expressed would consider a drastic review may be reached by November. their operations. said. Huawei declined to comment further. company said. interest in off ering fi nancial of its infl ator division as well as Potential investors that have That could stunt the development of a high-tech Many other high-tech firms cannot aff ord The deal, first outlined last support to the auto parts sup- the sale of non-core businesses already expressed interest in sector that Chinese media reports showcase as subsidies. October, was signed during a plier. as part of its restructuring ef- the company include private a shining example of China’s move up the value Fiona Zhang, a 26-year-old who helped found visit to China by German Chan- The identities of the poten- forts, after a handful of automak- equity fund KKR and Chinese chain. “For people of my age group, Shenzhen’s an online marketing startup, said she was forced cellor Angela Merkel. tial investors were not immedi- ers, including Takata’s biggest auto supplier Ningbo Joyson high property prices are causing a lot of pressure,” to move out of her studio apartment last year China is opening up its low- ately known and it was not clear client Honda Motor Co, said they Electronic Corp. Takata CEO said Chen Zhitao, a 25-year-old marketing off icer when her rent jumped 42%. She now shares a level airspace to civilian aircraft, how many of them were serious would stop using Takata infl ators Shigehisa Takada has off ered for Chinese online retail giant JD.com. four-bedroom flat with three others. She said many and the global aviation industry to resign once an agreement is To save on rent, he shares a tiny flat with two of her friends had quit Shenzhen to move to a is laying the groundwork for a reached over a fi nancial rescue others where one has to sleep on a couch each cheaper city. “Starting my own business has been boom beyond private business for the company, one of the night. “Now my friends are discussing more and my dream,” she said. jets with the purchase of heli- sources said. more whether to leave, and to consider what other These cost pressures suggest the Shenzhen gov- copters that is likely to include Fifty-year-old Takada, the cities we might go to,” he said. ernment needed to change policy, Chen Geping, fleets of air ambulances. grandson of the company’s The Shenzhen city government, which has the head of the Shenzhen Housing Research As- The light twin-engined H135 founder, has been widely criti- tightened housing regulations to take the heat out sociation, was quoted as saying. is already used in China for cised for keeping a low profi le of the price rally, and its Science and Technology “Shenzhen’s current property dilemma... medical services and police even as the air bag crisis esca- Innovation Commission did not respond immedi- is no longer to protect families in need, but how surveillance. Airbus Helicopters lated in past years, while Takata ately to requests for comment. to find housing for its (professional) talent,” Chen sees demand for 3,000-5,000 has been accused of mishan- While commercial rents are stable, residential said in the Southern Weekly newspaper. helicopters in China over the dling and manipulating safety prices have soared as available building land within Other business groups, such as the Federation next 20 years. “With the further data. the city shrank. of Shenzhen Industries, said they were concerned opening up of the Chinese The company has been un- In the year to April, prices rose almost 63% – the about the impact of property prices on Shenzhen’s skies and the increasing growth der pressure for delays over biggest rise in China – data shows. competitiveness. in the civil and parapublic identifying and replacing air Average residential property prices in Shenzhen An employee at the Shenzhen Promotion Asso- segments, China is gearing up bag infl ators. Since recalls be- in May were 40% higher than Beijing and 30% ciation for Small & Medium Enterprises, who gave to be the biggest market for gan in 2008, more than 100mn above Shanghai, according to data provider China his surname as Huang, had a diff erent take on the helicopters in years to come,” A recalled Takata air bag inflator is shown after it was removed infl ators are slated to be with- Real Estate Index System (CREIS). impact of the housing rally. Huang said startups Norbert Ducrot, head of Airbus at the AutoNation Honda dealership service department in drawn worldwide by the end of A 90-square metre apartment (970 sq ft) near required less labour than larger firms so higher Helicopters China and North Florida. The Japanese firm is seeking financial support as it 2019, and new recalls are being the city centre, or in the tech district of Nanshan, apartment prices might “eliminate mediocre labour Asia region, said in a statement. faces mounting liabilities related to a massive global recall of its announced on a near-weekly costs around 6mn yuan ($915,000). while keeping talent in Shenzhen.” potentially faulty air bag inflators. basis. Gulf Times 14 Tuesday, June 14, 2016 BUSINESS Carney plans for worst as Britons fret over European destiny

Bloomberg slump and a drying up of bank funding. surged and Carney has warned the cur- wide indexed long-term repo operations. said former ECB president Jean-Claude they’ll probably cut rates. What they’re London “I’d guess that there is some kind of rency may drop “sharply.” The extra auctions, in which the BoE off ers Trichet, referring to major central banks. going to try to do is prevent a huge market special-purpose crisis committee chaired While most recent polls show the banks funds in exchange for collateral, will A Brexit scenario may be “very, very vola- shock on the day.” by the governor,” said Tony Yates, a former outcome of the referendum is too close be held on June 14, June 21 and June 28, tile,” and Carney has “the most diff icult Alongside the market and economic As the UK agonises over its relationship BoE off icial who is now an economics to call, sterling slumped to an eight-week and will be on top of its regular monthly job” over the coming week, he said. volatility, the BoE may also have to cope with Europe, the Bank of England is ready- professor at Birmingham University in low against the dollar yesterday after operations. After fending off the initial market with government instability. Prime Minis- ing for turmoil. England. “If it was me, I’d make sure that all one showed a 10 percentage-point lead If the vote was to leave, “initially they’ll shock, the BoE would face what Carney ter David Cameron and Chancellor of the With just 10 days before a referendum resources were concentrated on business for Britain to leave the EU. The pound fell look to the liquidity side and make plain called a “challenging trade-off ” between Exchequer George Osborne have both tied that could see Britain withdraw from continuity and short-term financial stabil- for a fourth day, slipping to $1.4134 as of they’ll supply all the liquidity the banks supporting growth and stabilising infla- their fates to the Remain campaign, raising the European Union, central bankers are ity issues.” 10:15am London time, down 0.9% since need,” said Gieve. “I would be surprised if tion. the prospect of a change of leadership in putting the defences in place to shore up In the immediate aftermath of a deci- Friday. any of our big banks got into deep trouble Eighty-five percent of 33 economists the event of a vote to leave. market confidence and the financial sys- sion to leave the world’s largest single Others have voiced concerns that there as a result of Brexit, and I think the BoE in a Bloomberg News survey said the Since Carney’s been criticised by some tem if that happens. Today will see the first market, Carney is likely to find himself on could be an immediate impact on the sup- would be surprised too.” economy would need further support in prominent pro-Brexit lawmakers for being test of its work, with the start of a series of the front line of the initial response. With ply of wholesale funding to UK financial If the turmoil is severe enough, off icials the event of a Brexit, with three quarters too close to the government position, his extra market operations to boost liquidity the governor having already declared an institutions if there was a Brexit. In that also can also intervene in foreign-ex- of those saying credit-easing measures relationship with any new administration around the vote. exit vote is the biggest domestic risk to scenario, setting a reassuring tone and change markets and activate swap facili- should be used and 68% saying quantita- may be tense. Still, the governor could The culmination of more than a year of financial stability, the BoE has said it will providing enough liquidity would form ties with other central banks including tive easing was an option. Sixty-one provide continuity and shore up stability planning may see Governor Mark Carney monitor market developments and take the initial response, according to former the European Central Bank and Federal percent said a rate cut might be in the through political storms. face down a plethora of challenges from action if needed. Deputy Governor John Gieve, who was in Reserve to help firms access overseas offing. “I think the bank has great credibility the potentially historic event. With volatil- The most visible reaction will prob- charge of financial stability at the BoE dur- currency. ECB Governing Council member “They have to say that they will have an and whoever takes over will be eager to ity already spiking and the result set to be ably come in the currency market, with ing the run on Northern Rock in 2007. Ilmars Rimsevics said last week that his emergency MPC meeting if there’s a Leave show that they’re working eff ectively with announced on a normal trading day, the economists predicting the pound could Carney has already moved to head off central bank is ready to off er euro liquidity vote,” said Danny Blanchflower, a former the BoE,” Gieve said. “So although there’s immediate consequences of a Brexit vic- slide almost 10%to $1.30, a level last seen some of the uncertainty with the early via its existing agreements. BoE policy maker. “They’re going to issue a been some talk of knives being out for tory could include capital flight, a sterling in 1985. Measures of implied volatility have announcement of three additional market- “I expect they are in constant contact,” statement saying they’re ready to act, and Carney, I don’t see that myself.”

Seven ex-Deutsche G4S is under scrutiny Bank managers convicted in C02 over Orlando killer’s tax-fraud case

Bloomberg Prosecutors had asked for Berlin terms of as much as four years for three of the accused and for suspended terms the rest. De- even former Deutsche fence lawyers sought acquit- employment since ’07 Bank managers were con- tals. Svicted by a German court Prosecutors are still investi- Bloomberg ing the government to deploy of participating in a conspiracy gating 15 people who worked or London members of the armed services to cheat on value-added tax are still working for the bank. In in order to make up the numbers refunds for carbon-emissions addition, three bankers reached and prompting the company’s trading. settlements with law-enforce- 4S’ approach to the then CEO to admit that its repu- The bankers participated in a ment offi cials. vetting of its secu- tation was “in tatters.” “criminal business model,” said Juergen Fitschen, who Grity personnel is under The Crawley, England-based presiding judge Martin Bach. stepped down as co-chief ex- scrutiny after it emerged that company later took a fi nancial One of the men was sentenced ecutive offi cer last month, and Florida nightclub killer Omar hit over claims that it over- to three years in prison while former management board Mateen had been employed by charged authorities for elec- the other six escaped prison member Stefan Krause have the world’s biggest guarding tronic tagging of criminals. with suspended sentences or also been investigated as part of company for almost a decade. More recently, it suspended fi nes. the carbon probe. Mateen, who declared his al- seven staff at a juvenile correc- The case is part of the big- Both have denied wrongdo- legiance to terror group Islamic tional facility after allegations gest crackdown on emissions- ing. State in the hours before the that guards used excessive force related tax crimes since the Six men who ran companies largest mass shooting in US his- and one child was stabbed with European Union began its that traded emission certifi - tory, had been working at a gated a fork. cap-and-trade system in 2005 cates with Deutsche Bank were retirement community prior G4S was consistently one of and saw police raid Deutsche found guilty in December 2011 to the deaths in Orlando, G4S the biggest contractors with the Bank twice over three years. of evading €260mn. confi rmed yesterday, sending its US federal government after the The lender, Germany’s biggest Six other people involved in stock tumbling to the lowest in- Sept. 11, 2001, terrorist attacks, bank, stopped trading emission the scam have been convicted traday price since March 2009. mostly with the departments of certifi cates in 2010 and repaid in other trials over the years The Federal Bureau of Inves- Homeland Security and State, €220mn ($248mn) of illicit tax and prosecutors have fi led tigation had studied Mateen according to Kevin Brancato, an refunds uncovered during the more indictments in the com- twice, each time dropping its analyst with Bloomberg Govern- investigation. plex. enquiries, according to an agen- ment. The fi rm’s deals with the cy spokesman. UK-based G4S government shrank to $89.3mn said it had learned of the FBI’s in 2015, according to data com- interest in 2013 but was unaware piled by Bloomberg. Naspers plans sale of of any further probe, adding that The company employs the 29-year-old had cleared its 611,000 people worldwide, run- Polish EBay rival Allegro own internal processes. ning prisons, providing security “Mateen underwent com- at airports and ports, and man- pany screening and background aging cash transports, according Bloomberg and technology companies, checks when he was recruited to its website. Its US headquar- London including Chinese buyers. in 2007 and the check revealed ters are in Jupiter, Florida, about Cape Town-based Naspers nothing of concern,” G4S said. 150 miles southeast of Orlando. is exploring a sale of Allegro “His screening was repeated in “They are a considerably Naspers, Africa’s biggest after receiving interest from 2013 with no fi ndings. We were A G4S employee stands at the Farnborough International Air Show in Farnborough (file). G4S, whose smaller player in the federal company by market value, potential buyers, and may sell not made aware of any alleged clients in more than 100 countries include the US government, says it’s cooperating with the FBI space than they used to be,” is planning to sell its Polish because the unit isn’t growing connections between Mateen investigation of the Florida massacre. Brancato said. online auction website Allegro, as fast as some of its other and terrorist activities.” Born in New York to Afghan according to people with businesses, one of the people Mateen, a US citizen who died About 15% of G4S’s US-based than 100 countries include the aff ected by this unspeakable parents, Mateen was licensed knowledge of the matter. said. The process is at an early in a gun battle with police after workers are re-screened each US government, said it’s cooper- tragedy.” Shares of G4S fell as as a security guard in Florida, The global Internet and stage and there’s no guarantee killing 50 people and wound- year according to standard prac- ating with the FBI investigation much as 8.1% when trading according to state records. Ma- entertainment group has hired a sale will go ahead, they said. ing 53 at the gay dance venue tice, the company said. As an of the Florida massacre. began yesterday. The stock teen was married in 2009 and Morgan Stanley to advise Naspers has grown into on Sunday, was given a psycho- “armed security offi cial” Ma- “We are shocked and sad- had already declined 34% in 12 divorced in 2011, a woman who on a potential disposal, said an almost 1tn rand ($67bn) metric test called the Minnesota teen was also required to carry dened by the tragic event months, dropping the most in identifi ed herself as Mateen’s the people, who asked not company through investing Multiphasic Personality Inven- a weapon and received a licence that occurred at the Orlando three years on March 9 after a ex-wife told the Washington to be identified because the mainly in emerging-market tory before being hired, G4S from the State of Florida, which nightclub,” John Kenning, the wave of migrants to the UK led Post on the condition that her deliberations are private. Internet companies, notably said. Checks of his identifi cation makes its own evaluation of an company’s chief executive of- to increased losses on a contract name not be used. Allegro, which could fetch as China’s Tencent Holdings and documents, employment his- applicant’s personal history, and fi cer for North America, said to house asylum seekers. G4S was priced 5.6% lower at much as $3bn including debt, Mail.ru Group of Russia. tory, right to work and criminal underwent several hours of fi re- in a statement. “Our thoughts G4S also failed to supply 177 pence as of 12:37pm in Lon- is likely to attract interest A representative for Morgan records also revealed nothing of arms training, it said. and prayers are with all of the enough security guards for the don, reducing the company’s from private equity firms Stanley declined to comment. concern. G4S, whose clients in more friends, families and people 2012 Olympics in London, forc- market value to £2.75bn($3.9bn).

Musk’s SpaceX, once pooh-poohed, is wake-up call for Europeans

Bloomberg hot air, even among the big shots in the California-based market research fi rm within striking distance of becoming quarter of the price off ered by the cur- competitor for SpaceX’s Falcon 9, it is Paris space industry. But he showed he was Frost & Sullivan. dominant in the payload business. It rent launcher, Ariane 5. The engine will still four years away from being ready. able to do it, to potentially reuse rockets Under pressure from Musk, the says it plans to fl y 18 missions this year, be fi rst tested in 2020. The problem for Thierry Mandon, the French Minister one day. He’s clearly shaking things up.” South-Africa born Canadian-Ameri- triple the number in 2015. Europe is that while SpaceX is already for Research and Higher Education in he success of Elon Musk’s More than just European pride is at can, the industry worldwide, includ- The California-based company said testing its reusable rockets and slash- charge of space matters, says he isn’t SpaceX industrial ventures has stake. The space industry represents ing in China and India, is rethinking its it plans to use a previously-fl own Fal- ing prices, a reusable Ariane 6 is just a worried, dismissing the potential Musk Tgiven Europe’s space industry a 38,000 jobs in Europe, most of them approach to drive down costs. Space- con 9 booster stage later this year and glimmer in the eyes of scientists. threat. kick in the pants. in France, according to Aerospace De- launcher companies, which put satel- cut the fl ight price further down from “What we want it is to stand ready “At the end of the day, what mat- After three fl awless landings of the fence Industries, an industry group. lites, cargo and humans in space, are the current $61mn it says it charges should re-usability become a reality,” ters is the cost, however you get there fi rst stage of Space Exploration Tech- With the sector at the cusp of a new era seeking to bring prices down 50% or for commercial payloads. Arianespace, Le Gall said, pledging to ask European — re-usability or something else,” he nologies Corp’s Falcon 9 rocket on a of space missions that will broaden the more. one of the world’s biggest commercial partners for more than the current said in an interview. “We may have drone barge in the Atlantic ocean since client base for satellites and open the In April, SpaceX landed the fi rst satellite launchers, which will use the €100mn ($115mn) the region has so far lacked vision, or coordination, in Eu- April, the 44-year-old entrepreneur way for exploration projects hitherto stage of the Falcon 9 rocket back on a Ariane 6, claims its prices will be close earmarked for the programme. rope. But we don’t know the end of the announced last week that he plans to unreachable, Europe can’t aff ord to drone barge about 200 miles off the US to those of SpaceX. Being nimble in a fast-moving are- story yet.” start reusing rockets as soon as Sep- miss the boat. Atlantic coast. It has since made two While the cost of re-usable rockets, na can be a hurdle for the European For France’s Le Gall, Europe’s con- tember. In contrast, Europe’s non- A cost-eff ective Europe-made rock- other successful landings, after sending technical hurdles and market viability project, which combines mostly the temptuous inability to take Musk seri- reusable competitor, Ariane 6, may be et would allow the continent to remain payloads into the upper atmosphere. It have yet to be tested, Le Gall says Musk region’s fi ve biggest economies - Ger- ously dates back years. He remembers ready only in 2020, while a reusable one of the biggest players in the $6bn will try again on June 14. is well advanced and that Europe must many, France, the UK, Italy and Spain a conference in Vietnamabout a decade version, a project for which was un- global market for payload launchers Long considered a brash upstart nip- move faster. — industrial groups in these countries, ago where the billionaire “showed up veiled this month, may come even later. and also be part of major long-term ping at the heels of staid aerospace gi- On June 1, the CNES and Airbus Sa- the European Space Agency and the in- in torn jeans and with a plastic bag. He “SpaceX is like a giant wake up call,” missions such as a manned trips to ants, SpaceX is coming of age 14 years fran Launchers — Europe’s biggest stitutions of the European Union. Get- told us — the chiefs of the three big- Jean-Yves Le Gall, head of CNES, the Mars. Before Musk’s reusable success after it was founded by Musk with the space company — unveiled an engine ting these multiple entities to work to- gest rocket launchers worldwide — I French space agency, said in an inter- began changing the game, the launcher lofty — and many have said unrealis- project, dubbed “Prometheus,” which gether in concert remains a challenge. am here and your are dead. One of us view. “Six to nine months ago many market was estimated to reach $8.4bn tic — goal of revolutionising spacecraft will make the future Ariane 6 rocket re- While Ariane 6, in its non-reusable replied: you talk, we launch. Had we in Europe thought Elon Musk was just in 2023, according to Mountain View, and colonising Mars. SpaceX is now usable and send payloads in space for a form is likely to be a formidable direct known...” Gulf Times Tuesday, June 14, 2016 15 BUSINESS Fed to figure how low it can go on unemployment forecast

Bloomberg glimpse into policy makers’ frame of mind. of the unemployment rate going forward,” in New York. If the Fed lowers its 2016 It’s also possible that the Fed could farther to go before full employment is Washington Here’s how the projections could change said Neil Dutta, head of US economics estimate farther without changing the leave the 2016 number untouched — prob- achieved. — and how to read any alteration. at Renaissance Macro Research in New long-run estimate, it would signal that ably because of the labour outflow issues The FOMC could lower both its When unemployment declined to York. Dutta also expects the long-run they think unemployment is going to drop noted above — while cutting its projection near-term and long-run estimates. That How low can you go? It’s a topical ques- 4.7% in May from 5% the prior month, unemployment estimate to hold steady, this year to a rate well-below the level that for the long-run rate. That’s what RBC would signal that they think that headline tion as the Federal Reserve meets in the drop came as a wave of people gave given that wages are rising, suggesting will be consistent with stable inflation over Capital Markets’ Tom Porcelli expects, ei- unemployment can fall — and stay—lower Washington this week. Federal Open Mar- up on working and looking for jobs, labour market tightness. The ratio of job the next five to six years. ther at this meeting or one later this year. without stoking runaway wage and price ket Committee off icials in March projected pushing down the labour force partici- openings to unemployment also remains Cutting the short-term unemployment “The general trend that they are exhibiting inflation. Such a move would match the that the level of unemployment would pation rate. elevated, which he sees as a sign that a projection further below that neutral rate is to keep on reducing it,” Porcelli said. The trend, since both near-term estimates fall to 4.7% in the fourth quarter before If Fed policy makers retain their skills gap is keeping people out of work, estimate without tightening monetary jobless rate is already at or below levels and the long-run estimate have been rebounding to 4.8% in the longer run. But unemployment call, it probably signals rather than economic slack. policy — assuming that the Fed doesn’t historically consistent with full employ- coming down over the past two years. the rate has already hit their end-of-year that they think labour market dropouts “The case to continue cutting it is get- — could signal a commitment to running ment, but we know that Fed off icials think But most economists think there’s a limit forecast, causing many economists to will re-enter the job hunt. That would ting increasingly tenuous,” he said. the job market hot. Fed chair Janet Yellen that the headline number has become to how much lower it can drop. “I can’t expect the committee to revise its median place a floor under how far the rate can Committee members could cut the has indicated that the Fed would be open an incomplete indicator of labour market imagine them taking it all the way down to estimate lower in the FOMC’s summary fall, since new job-seekers count among 2016 jobless estimate to 4.6% or 4.5%, to doing so, but the actual jobless rate slack. If they reduce the long-run natural 4 — that’s not in the cards,” said Nariman of economic projections, which will be the unemployed. “A lot of them probably which would be “a bit of a mark-to-mar- has always been above the Fed’s long-run rate further, it suggests they think that in Behravesh, chief economist at HIS. “That’s released on June 15. think that the labour force participation ket” said Millan Mulraine, deputy head of projection. This meeting would be the an era of low participation and elevated the dilemma we’re facing — how low do Where the estimates fall could off er a rate will snap back and slow the declines US research and strategy at TD Securities turning point. underemployment, the jobless rate has we take this thing?”

Symantec builds web Microsoft to buy LinkedIn security with purchase of for $26.2bn in its largest deal Blue Coat AFP Reuters New York Mountain View S cybersecurity leader icrosoft Corp agreed to buy Symantec will expand its LinkedIn Corp for $26.2bn Uweb security capabilities Min its biggest-ever deal, and get a new chief executive combining the software giant’s fast- with the $4.65bn purchase of growing cloud services business with Blue Coat. an online network of 433mn profes- The deal announced late Sun- sionals. day will create a company with The off er of $196 per share repre- $4.4bn in combined revenues, sents a premium of 49.5% to Linke- 3,000 engineers and researchers, dIn’s Friday closing price. nine global threat-response cen- LinkedIn’s shares soared 48% to tres and an expanded capability $194.00 in early New York Stock Ex- to protect cloud computing. change trading and Microsoft’s shares Symantec said it would pay were down 4%. cash for its Silicon Valley neigh- Reid Hoff man, chairman of Linke- bour. dIn’s board and the company’s con- But it will eff ectively get some trolling shareholder, said the deal has of that back when Bain Capi- his full support. tal, the controlling shareholder “I have always had a great admira- of Blue Coat, puts $750mn into tion for LinkedIn,” Microsoft CEO convertible debt of the com- Satya Nadella said in a video on Mi- bined company. crosoft’s website. “I have been talking And Silver Lake, another lead- with Reid and Jeff for a while... ing private-equity fi rm already I have been thinking about this for with a stake in Symantec, will a long time.” buy $500mn in Symantec con- Jeff Weiner will remain chief execu- A view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, and (below) the logo for LinkedIn Corporation is seen in Mountain View, California. vertible debt. tive of LinkedIn, reporting to Nadella. The deal, which won the unanimous support of both boards, is expected to close this year, the companies said. At the same time, Blue Microsoft plans to speed-up mon- Coat CEO Greg Clark will lead etisation of LinkedIn by growing in- Symantec after the deal closes, dividual and organisation subscrip- neatly resolving Symantec’s on- tions as well as targeted advertising, going search for a new chief ex- it said. ecutive. Despite the rich premium paid by “With this transaction, we Microsoft, LinkedIn is selling for well will have the scale, portfolio and below its peak of more than $270 per resources necessary to usher in a share in 2015, but a weak forecast ear- new era of innovation designed lier this year sent its shares tumbling to help protect large custom- amid slowing online ad revenue. ers and individual consumers LinkedIn went public in 2011 at $45. against insider threats and so- “I think, fi rst of all, (LinkedIn) is a phisticated cybercriminals,” said great business, even though the com- Symantec chairman Dan Schul- pany stubbed their toe back in Feb- man in a statement. ruary,” said Ivan Feinseth, analyst at “Together, we will be best- Tigress Financial Partners.”It’s a pre- positioned to address the ever- mium company and it deserves a pre- evolving threat landscape, the mium valuation.” massive changes introduced by The deal, which won the unanimous the shift to mobile and cloud, and support of both boards, is expected to the challenges created by regula- close this year, the companies said. tory and privacy concerns.” Microsoft said it would issue new Privately controlled Blue Coat debt to fund its acquisition. was reported last month plan- After the deal, which will require ning an initial public off ering of approval from regulators in the Unit- its shares; the merger deal would ed States, the EU, Canada and Brazil, halt that eff ort. LinkedIn will become part of Micro- Shares of Nasdaq-listed soft’s productivity and business proc- Symantec were up 3.4% to $17.88 esses unit, the companies said. in pre-market trade yesterday. SunEdison reshaped boards in ‘Friday Night Massacre,’ suit says

Bloomberg key event came at the culmination of the by TerraForm Global and the other by to the suit. The yieldcos evaluated ways An amended Appaloosa filing in March deadline, TerraForm Global alleges. The New York 11-day period, an incident that one of the TerraForm Power shareholders led by Ap- to get SunEdison the money — includ- called the board shakeups the “Friday yieldco is seeking $231mn, to cover that suits called the “Friday Night Massacre.” paloosa Management, the hedge fund run ing share buybacks, selling assets or an Night Massacre.” payment and another $81mn provided That was when SunEdison reconsti- by billionaire David Tepper. It has yet to file unsecured loan coupled with governance “That’s when it became clear that later that it says was also earmarked for As SunEdison navigates through bank- tuted the boards of the two yieldcos a response to the TerraForm Global suit. A changes that would reduce SunEdison’s SunEdison was willing to do whatever it the India projects. ruptcy, an 11-day period in November it had formed to buy its power plants, February response in the Appaloosa suit control over their boards, according to the took to save itself,” said Michael Morosi, an Spokesmen for TerraForm Power and continues to haunt the world’s largest TerraForm Global and TerraForm Power, includes a redacted section addressing the suit. The conflicts committees rejected analyst at Avondale Partners. “The turmoil TerraForm Global declined to comment on renewable-energy company. and the new boards then remade their changes to TerraForm Power’s board. these ideas — in part because SunEdison with management, the turnover of the the allegations and said members of the Over that period, the company mis- conflicts committees — independent During the company’s November 10 wouldn’t agree to governance changes, board, that’s when it became clear that the conflicts committees were unavailable for represented its financial health, withheld directors tasked with evaluating transac- third-quarter conference call, then-CFO TerraForm Global said in its complaint. yieldcos were being viewed as a source of comment. details about an imminent margin-loan tions with the parent company. SunEdi- Wuebbels said it had “suff icient liquidity” To get around this opposition, SunEdi- liquidity.” In its response to the Appaloosa suit, deadline and ousted several independent son’s then-chief financial off icer Brian — about $1.4bn — at the end of the third son reshaped the committees, according TerraForm Global’s new conflicts SunEdison defended the independence directors at the two publicly traded yield- Wuebbels, also named in the lawsuits, quarter. to the suit. The developer called for meet- committee met by phone at 2:15 p.m., of the directors appointed to TerraForm cos it founded and controls, as it sought became chief executive off icer of both Yet SunEdison’s management was fac- ings of both yieldcos’ boards on Novem- November 20, less than an hour before the Power’s board on November 20. Both funds to make the looming payment, ac- TerraForm yieldcos. ing a potential crisis: a $100mn payment ber 20. Senior management was replaced payment was due. SunEdison requested cases against SunEdison have been cording to lawsuits filed against SunEdison SunEdison’s actions “led many com- on a margin loan, due on November 20, ac- and SunEdison reconstituted both boards. prepayment for the India projects. The stayed by the bankruptcy. Wuebbels, who prior to its bankruptcy. mentators to draw parallels with the Enron cording to the TerraForm Global suit filed The new boards then remade the conflicts “false, misleading and one-sided” presen- stepped down as CEO of both TerraForms SunEdison won court approval on last Corp” bankruptcy, creditors said in the in April. Missing the deadline could trigger committees, TerraForm Global said in its tation didn’t disclose the margin loan, or in March and has been terminated from Tuesday for a $1.3bn operating loan. That complaint. Enron lost the right to handle cross defaults on parts of almost $8bn in suit. that the directors who had been replaced SunEdison, wasn’t made available to package will also fund a creditor probe its own cash. SunEdison debt, according to the suit. “They could see trouble,” said Swami had already evaluated and rejected ways comment. into its financial activities, and the findings “I’ve never seen a situation where a SunEdison had already told TerraForm Venkataraman, an analyst at Moody’s to transfer funds to SunEdison, according SunEdison hasn’t been straight about will shape the outcome of the bankruptcy. conflicts committee of the board was Global in October it “had a short-term Investors Service. SunEdison was “trying to TerraForm Global’s lawsuit. its finances, said Steven Azarbad, chief Meanwhile, creditors say the company fired,” said Nell Minow, vice-chairman at need for additional cash,” according to the to come up with other things, pulling the TerraForm Global’s suit alleges that investment off icer of Maglan Capital, shouldn’t be in charge of managing its ValueEdge Advisors, which advises inves- suit. SunEdison was developing a portfolio yieldcos closer.” SunEdison said the board changes were a distressed hedge fund that exited its own cash, a question scheduled to be ad- tors on governance issues. of solar projects in India that were ear- The events showed SunEdison’s ability needed to get a decision on another pend- position in SunEdison this year, before the dressed at a June 21 hearing. SunEdison’s lead bankruptcy lawyer, Jay marked for sale to TerraForm Global and to exercise control, according to Appal- ing deal, the acquisition of Vivint Solar, company filed for bankruptcy. One sign, The reason is SunEdison’s “large, Goff man, said in court that the creditors’ SunEdison asked TerraForm Global to pre- oosa’s January lawsuit. Appaloosa owns which was later canceled. according to Azarbad, was Wuebbels’s opaque capital structure, with complex allegations are “gamesmanship and false pay for them. The yieldco refused because 3.1% of TerraForm Global, and is TerraForm The new conflicts committee agreed to November 10 assertion that SunEdison intercompany relationships and cash statements” to help boost recoveries. He the projects weren’t complete. Power’s second-biggest shareholder with immediately advance $150mn for the India had $1.4bn in liquidity, when in fact much flows, poor accounting, poor controls and didn’t respond to requests for comment. TerraForm Global management learned a 9.5% stake, according to data compiled projects, according to the TerraForm Glo- of that was already committed to specific allegedly fraudulent conduct at the high- SunEdison declined to comment on about the margin payment two days be- by Bloomberg. Tepper declined to com- bal suit. SunEdison instead used it to pay uses. That detail, Azarbad says, was in an est levels,” creditors said in a May filing. A allegations in the suits — one brought fore it was due, on November 18, according ment on the suit. the margin loan minutes before its 3 p.m. investor presentation, “buried in a caveat.” Tuesday, June 14, 2016 GULF TIMES BUSINESS

Mideast sovereign investor confidence stable despite challenges: Invesco

The Middle East sovereign investor confi- investor withdrew or cancelled only 7% of on performance drop from 8.4 in 2014 frontier markets are also on the rise, with concerns in these regions in order to hit dence remains stable despite challenging assets, as sovereigns cope with funding to 7.7 this year, confidence in aggregate Middle East allocations to emerging Asia target allocations. external environment and allocations challenges. capability has gone up from 7.4 to 7.8 over increasing from 1.5% in 2014 to 2.3% in Finding that real estate emerges as the towards the infrastructure and private Time horizons for investing are also the same period. 2015, and in Africa from 1% to 2.6%. preferred asset class, Invesco said Middle equity have expanded over the last two lengthening as Middle East sovereign “Many sovereign investors are now Manufacturing capability, political sta- East sovereign investors have focused on years, according to Invesco, a leading investors manage these challenges, comfortable operating in an environment bility, and the quality of infrastructure are increasing allocations to infrastructure independent global investment manage- rising from 7.1 to 7.7 years over the past with limited new funding. Some have cited as key factors for this change, and and private equity over the last two years; ment firm. four years amid continued interest in the ceded assets to governments without via a range of products including conven- however attitudes have changed in 2016, “The overall Middle East sovereign diversification benefits and illiquidity pre- cancelling long-term investments, while tional equity and fixed income products, and for the first time fewer sovereign investor confidence remains stable — and miums off ered via alternatives, it said. others have not been called upon at all and direct investments into alternatives investors expect to increase allocations to has done since 2013 — with Invesco’s Sov- Tracking confidence based on returns for withdrawals over the last 12 months,” such as real estate. these asset classes. ereign Confidence Index highlighting that and aggregate capabilities (looking at in- according to Alex Millar, Head of Invesco Conversely, the BRIC markets — Brazil, While allocations to infrastructure and overall confidence has remained steady at vestment expertise, people and talent, gov- EMEA sovereigns and Middle East and Russia, and China — have all lost their private equity have increased over the 7.2 in 2014, to 7.3 in 2016,” it said in a report. ernance and third parties), the index shows Africa institutional sales. attractiveness to Middle East sovereign last three years, total allocations remain While the challenging macro-economic Millar: Strong outlook. that global liability and development Many of these institutions, he said investors amid weaker performance, low, it said, adding from 2013 to 2015, the environment, driven by the sustained sovereigns report increased confidence appear confident in their funding outlook with only India becoming increasingly Middle East sovereign investors’ average low oil price, has impacted on global investors remain better prepared in terms consistently across both categories. and are increasing the importance of their attractive. total portfolio assets to infrastructure in- sovereign investment performance, with of investment capability and governance. While lower returns have impacted investment objectives relative to their In comparison to the last few years, creased from 0.3% to 2.5%, whilst private average annual portfolio returns having On average new funding accounted for global investment and liquidity sover- short-term liquidity needs. sovereign investors globally are now less equity rose from 5.2% to 5.5% of the Mid- fallen, Invesco said Middle East sovereign 3% of assets, while the average sovereign eigns, who have seen confidence based The study said new allocations to willing to overlook political and regulatory dle East average sovereign portfolio.

Report underlines key High ICT penetration level ICT role in commercial sector of Qatar: Expert

he Ministry of Transport in Qatar indicates growth and Communications’ Trecent report entitled “Qatar’s ICT Landscape 2016: Business” underlines the “im- portance of ICT as a lifeblood” to the country’s growing com- potential, says ministry mercial sector, an expert has said. By Pratap John E-commerce portals off er infor- Christophe Meunier, a part- Chief Business Reporter mation and services from a variety of ner at advisory and investment sources and help business establish- group Delta Partners, which Meunier: Changing landscape. ments sell and purchase products or specialises in the telecoms, me- igh information and commu- services through the Internet. These dia and digital space, said, “The and aggregation, Meunier said. nications technology (ICT) portals include features such as pay- report underlines the impor- Businesses — particularly Hpenetration rates among Qa- ment gateways and delivery mecha- tance of ICT as a lifeblood to Qa- telecommunications compa- tar’s population indicate a “potential nisms, among others. tar’s growing commercial sector. nies — will need to redefine for growth” of the e-commerce mar- Overall, 3% of the business estab- Investing in such technologies their roles and understand ket in the country, according to a new lishments surveyed have implement- will help both fuel and protect how they can supplement their report by the Ministry of Transport & ed an e-commerce portal, with 11% the future health of the business, central position as connectiv- Communications (MoTC). of business establishments with more and in turn, the economy, with ity providers with network and According to “Qatar’s ICT Land- than 50 employees having an e-com- those that fail to do so being un- partnership capabilities, to scape 2014: Households and In- merce portal. able to survive and thrive in this play a meaningful role in ad- dividuals”, one out of fi ve general Only a negligible percentage of the new digital paradigm. dressing these gaps. mainstream individuals reported pur- establishments with 1–9 employees But just as there is a solid In addition, customer experi- chasing or placing orders for goods have one. The initial setup and regu- commitment to embracing such ence is fundamentally poised for and services online. lar maintenance costs as well as the technologies, it is critical that disruption. On the one hand, the The global e-commerce market is lower computer and Internet pen- there is a solid understanding of digital era is enabling completely booming. The move from traditional etration among small businesses are the changing landscape, and the new/ more satisfying customer brick-and-mortar stores to electron- considered to be the key barriers for changing roles enterprises will experience, giving back control ic commerce (e-commerce) opens up the implementation of e-commerce need to play within in, he said. to the customer, and raising the new markets and opportunities for portals. The ICT business models of expectation of instant gratifi ca- business establishments and off ers When looking at it by main eco- the telecom operators and IT tion/ on demand bandwidth. customers access to new products nomic activity, the construction sec- services providers are about to On the other hand, the In- across geographical boundaries. tor has a higher rate of e-commerce get disrupted in the same fashion ternet has also introduced the The e-commerce market size in portals than other sectors, though still as how Over the Top Technolo- concept of “good enough” to the Qatar is estimated to be QR8.44bn in only at 12%. gies (OTT) are remodelling the telecommunication world. 2014, with the business-to-consumer A factor for the growth of e-com- consumer ecosystem. The operator will need to re- (B2C) market contributing 44% and merce is the penetration of credit and He said businesses would think the overall customer expe- the business-to-business (B2B) mar- debit cards. When it comes to online “need to redefi ne their roles and rience, making sure they achieve ket contributing 56% (QR4.73bn). purchases, globally, payment through decide on a game plan to play” in the minimum requirements and Worldwide, the B2B market seg- such cards is one of the most preferred the new enterprise ICT environ- only diff erentiate on what the ment makes up 82% of the e-com- payment modes along with cash on ment. customer values and is willing to merce. delivery and bank-to-bank transfer. For instance, the number of pay for. Considering this global average and According to Payfort’s ‘The State things connected to the Internet “As such there needs to be a the small e-commerce market size in of Payments in the Arab World 2014’, is expected to grow exponen- clear understanding of the dif- Qatar, the B2B market in Qatar is still among relevant peers, Kuwait has the tially from nearly 4bn devices fering market dynamics at play in the nascent stage of development. highest penetration of bank cards per today to 12-50bn by 2020, based in the ICT area. Deciding on and Lack of knowledge about off ers capita in the Arab world at 97%, fol- on various estimates. While creating a coherent business among customers, trust and security lowed by UAE with 89% and Saudi most of the use cases today are model will be vital for local, re- concerns, lack of technical resources, Arabia with 46%. Qatar’s rate stands in the consumer domain, future gional and global operators to and issues with payment methods and at 45%. Internet of Things (IoT) growth thrive in this new environment gateways are a few of the key factors At the same time, credit cards were is expected to be mainly driven where ICT is king. reported by business establishments in used for just 6% of total consump- through use cases in the business “What is clear is that in this the survey that aff ect the adoption of tion (consumer spending) in Qatar domain. new ICT landscape, and da- e-commerce in Qatar. for the period 2008–2012, whereas However, for IoT to cross the ta-driven world, it is vital for A representative of a leading bank in credit cards contributed 31% in the chasm from early adoption to businesses to evolve to meet Qatar echoed these fi ndings, “Securi- UAE, 25% in Kuwait, and 23% in Saudi pervasive use — especially in the the demand of the new digital ty concerns are one of the key reasons Arabia. “The expected increased use business segment — gaps in the economy. With such investment preventing the adoption of online of credit cards will drive the e-com- IoT value chain need to be ad- already ear-marked in Qatar, the payment and e-commerce business merce market in the future,” the re- dressed particularly in enabling route map for growth is poised among many users.” port noted. security, device management for the taking,” Meunier said.

Foreign and Gulf institutions’ sell pressure extends bear run on QSE

By Santhosh V Perumal 15,701.01 points, All Share Index by 0.77% to against net sellers of QR1.08mn the previous Business Reporter 2,711.39 points and Al Rayan Islamic Index day. Gulf mostly soft but Saudi firm; Egypt’s OTMT dives again by 0.93% to 3,779.41 points. Total trade volume fell 8% to 2.38mn Realty stocks plunged 2.29%, insur- shares, while value rose 20% to QR87.7mn Reuters earnings; they have largely stayed clear of making oreign and Gulf institutions’ selling ance (1.25%), industrials (0.78%), transport and deals by 12% to 1,402. Dubai long-term commitments to Saudi shares. pressure yesterday extended the bear- (0.43%) and banks and fi nancial services The market witnessed 54% plunge in the Another factor looming for the market is Fish run on the Qatar Stock Exchange (0.23%); whereas consumer goods and tel- telecom sector’s trade volume to 0.38mn eq- international index compiler MSCI, which is to for the third straight session and its key in- ecom gained 0.16% and 0.08% respectively. uities and 7% in value to QR8.76mn but on Most stock markets in the Middle East edged down announce after the close today whether it will put dex lost 90 points to settle a tad above the About 71% of the stocks were in the red 24% rise in transactions to 219. yesterday after global bourses and oil prices fell Saudi Arabia on review for possible inclusion in its 9,700 mark. with major losers being Ezdan, Qatar Insur- The real estate sector’s trade volume further and Egypt’s Orascom Telecom saw a second emerging markets index as early as mid-2017. Mainly led by realty and insurance seg- ance, Industries Qatar, Gulf International plummeted 28% to 0.28mn stocks, value by day of steep losses after an acquisition plan was Inclusion would bring billions of dollars of passive ments, the 20-stock fell 0.92% to 9,704.36 Services, Mesaieed Petrochemical Hold- 28% to QR5.22mn and deals by 28% to 157. called off but Saudi Arabian shares were firm. foreign funds into the market but fund managers points as global oil prices fell on weaker eco- ing, Qatar First Bank, Qatar Islamic Bank, The insurance sector reported 20% Riyadh’s index recovered from early weakness to are split on whether Saudi Arabia is likely to be put nomic prospects in Europe and Asia as well Commercial Bank, Islamic Holding Group, shrinkage in trade volume to 0.08mn shares, end up 0.3% as Saudi Electricity Co (SEC) climbed on review this year. as strengthening of the US dollar. Vodafone Qatar and Nakilat; even as Oore- 49% in value to QR3.73mn and 6% in trans- 2.5%. Dubai’s index lost 0.4%, weighed down by further Local retail investors’ net selling also doo, QIIB and Alijarah Holding bucked the actions to 44. SEC said at the weekend that it was inviting declines in large caps. strengthened and there was marginal weak- trend. The banks and fi nancial services sector’s expressions of interest from companies to build two Emaar Properties fell 1%, leaving it down 9% from its ening of buying interests of Gulf individuals Non-Qatari institutions turned net sellers trade volume was down 2% to 0.91mn equi- solar power plants; the firms would invest in the late April high. as well as domestic institutions in the mar- to the tune of QR2.86mn compared with net ties, while value gained 45% to QR45.31mn and plants and sell electricity to SEC in deals that could In Abu Dhabi, heavyweight banking shares were the ket as trade turnover increased amid lower buyers of QR1.4mn on June 12. deals by 7% to 425. become models for future infrastructure projects main drag on the index, which slipped 0.1%. volumes. The GCC (Gulf Cooperation Council) However, the transport sector’s trade vol- under Saudi Arabia’s economic reform plan. National Bank of Abu Dhabi declined 2.4%. The Islamic stocks were seen declin- institutions’ net selling rose to QR2.9mn ume more than tripled to 0.22mn stocks and Other blue chips also supported the market with Cairo’s main index edged down 0.1% as Orascom ing faster than the conventional ones in the against QR0.73mn on Sunday. value more than doubled to QR6.94mn on the largest listed Islamic lender, Al Rajhi Banking, Telecom retreated a further 4.6%. bourse, which is down 6.95% year-to-date. Local retail investors’ net profi t book- more than doubled transactions to 132. gaining 1.7%. Orascom said it would re-engage in the acquisition However, non-Qatari individuals were ing increased to QR1.09mn compared to There was 75% surge in the industrials Retailer Fawaz Al Hokair rose 3.4%. once all “regulatory obstacles” were overcome, but increasingly bullish in the market, where QR0.83mn the previous day. sector’s trade volume to 0.28mn shares, 41% But Dar Al Arkan Real Estate, which had surged the failure of the deal was seen by some investors banking, telecom, real estate and industrials The GCC individual investors’ net buying in value to QR11.03mn and 30% in deals to nearly 30% since news that it was in talks with as a blow to prominent businessman Naguib stocks together constituted about 78% of the weakened to QR1.42mn against QR1.48mn 271. the government to build housing units under last Sawiris, who family controls Orascom, and to the total trading volume. on June 12. The consumer goods sector’s trade vol- week’s economic plan, fell 1.6% to 6.35 riyals. Egyptian investment climate in general. Market capitalisation eroded 0.66% or Domestic institutions’ net buying also de- ume soared 60% to 0.24mn equities, while Eight analysts polled by Reuters have a 5.94 riyal However, shares in CIB bounced 1.7% yesterday. more than QR3bn to QR525.03bn as small, clined to QR1.19mn compared to QR1.29mn value fell 8% to QR6.72mn and transactions mean price target for the stock. Elsewhere, the Kuwait index fell 0.2% to 5,412 points, micro, mid and large cap stocks declined on Sunday. by 1% to 154. Many portfolio managers are still sizing up the likely the Oman index declined 0.4% to 5,847 points and 0.73%, 0.53%, 0.41% and 0.4% respectively. However, non-Qatari individual investors In the debt market, there was no trading of impact of the economic reform plan on companies’ the Bahrain index gained 0.7% to 1,123 points. The Total Return Index shed 0.92% to turned net buyers to the extent of QR4.24mn treasury bills and government bonds.