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Thursday, July 27, 2017 Dhul-Qa’da 4, 1438 AH

GROWING STRONGER: Page 16 GULF TIMES Blockade opens opportunities for BUSINESS SMEs in Qatar QEWC reports 2.44% rise in H1 net profit Ooredoo Group posts to QR810.56mn Qatar Electricity and Water Company (QEWC) has reported 2.44% year-on-year jump in net profit to QR810.56mn in the first six months of this year. The company has seen 1.32% increase in sales to QR1.54bn in the review period. Although operating profit fell 11.08% to QR625.15mn, QEWC witnessed more than 54% expansion in the QR1.1bn H1 net profi t share of profits of joint ventures to QR286.58mn. Its joint ventures are Qatar Power (in which QEWC has oredoo Group has posted a net profi t by 14% year-on-year (y-o-y) to reach al- 55% equity stake), Mesaieed Power Company (40%), of QR1.1bn in the fi rst half of this most 150mn driven by strong growth across Ras Girtas Power Company (45%), Nebras Power Oyear. major markets. Quarter on quarter customer (60%) and Umm Al Houl Power (60%). This, however, is down 25% compared numbers slightly increased. Its total assets were valued at QR15.07bn comprising with the same period last year. Net profi t The telecom major said its data leadership current assets of QR4.09bn (including QR2.98bn in in H1, 2016 benefi ted from signifi cant for- with 4G roll-out was continuing in multiple bank balances and cash) and non-current assets of eign exchange gains of QR540mn. However, markets; 4G networks are now available in QR10.98bn at the end of first half ended June 30, 2017. these temporary gains were reversed in the eight of Ooredoo’s markets. The non-current assets majorly comprised property, second half of the year. On the results, Ooredoo Group chairman plant and equipment valued at QR5.92bn, investments Ooredoo Group revenue in the fi rst half HE Sheikh Abdulla bin Mohamed bin Saud of QR2.9bn in joint ventures and finance lease of this year increased to QR16.3bn, an im- al-Thani said, “This has been a very good receivables of QR1.31bn. provement of 2% over H1, 2016. fi rst half of the year for Ooredoo Group. We Total equity stood at QR8.35bn on a capital base of In local currency terms, growth was driven delivered growth in revenues and EBITDA, QR1.1bn and earnings-per-share of QR7.37 at the end by Ooredoo Qatar, Ooredoo Oman, Ooredoo and our strategy to optimise effi ciencies of June 30, 2017. Kuwait, Ooredoo Tunisia, Asiacell, Indosat across our diverse portfolio resulted in an Ooredoo and Ooredoo Maldives. Excluding improved group EBITDA margin to 43%. foreign exchange translation impact, rev- “With customers at the heart of our busi- enues increased by 3% year-on-year. ness, Ooredoo delivered a 14% increase in cus- Fed holds interest rates steady Group EBITDA increased by 7% to almost tomer base and we are now proudly serving al- QR7bn with an improved EBITDA margin of most 150mn customers across our operations. The Federal Reserve kept interest rates unchanged 43%, indicating a “strong” operational per- “At the core of our strategy is our vision yesterday and said it expected to start winding down its formance and “good” cost control. Exclud- to enable more people to be able to enjoy the massive holdings of bonds “relatively soon” in a sign of ing Foreign Exchange translation impact, Internet. As part of this approach, Ooredoo confidence in the US economy. EBITDA increased by 8% year-on-year. continued to build our data leadership, en- The US central bank kept its benchmark lending rate in a Continued strong data growth from con- hancing our networks, growing the range of target range of 1.00% to 1.25% and said it was continuing sumer and enterprise customers drove data content and applications available and pro- the slow path of monetary tightening that has lifted rates revenue to QR7.2bn in H1, 2017; equivalent viding more self-service and self-care op- by a percentage point since 2015. to 44% of Group revenue. tions for customers. We have also increased In a statement following a two-day policy meet- Group B2B revenue increased to 17% of the range of services available to business ing, the Fed’s rate-setting committee indicated the group revenue (QR2.8bn) in H1, 2017 refl ect- customers across our footprint, enabling economy was growing moderately and job gains had ing Ooredoo’s ongoing investment in serv- companies to deliver more services online. been solid. ices for business customers. These strategic initiatives are making a posi- But it noted that both overall inflation and a measure of Ooredoo Group customer base increased tive diff erence, as refl ected on H1 results.” underlying price gains had declined and said it would “carefully monitor” price trends. Ooredoo Qatar has 3.5mn customers “The committee expects to begin implementing its bal- HE Sheikh Abdulla: Optimising eff iciencies across a diverse portfolio. ance sheet normalisation programme relatively soon,” Ooredoo Qatar delivered a “positive” to enable more people to enjoy the Internet the Fed said, adding that it would follow a plan outlined performance in H1, registering growth in at ultrafast speed. The company was the Ooredoo Group chief executive offi cer “Ooredoo Qatar produced a positive per- in June. revenue, EBITDA and customer numbers. first in the region to successfully upgrade Sheikh Saud bin Nasser al-Thani said, “Dur- formance in terms of revenue, EBITDA and After pushing rates nearly to zero to fight the 2007-2009 First-half revenue stood at QR4bn, slightly one of its ‘4.5G LTE-Advanced Pro’ cell ing the fi rst six months of the year, Ooredoo customer numbers in our domestic market. financial crisis and recession, the Fed pumped over $3tn higher than in the same period in 2016. sites to support CAT 16-enabled devices, has made good operational improvements So did Indosat Ooredoo, which delivered an- into the economy in a bond-buying spree to further Customer numbers reached 3.5mn, a 4% providing data speeds of up to 1 Gbps. across its business, delivering an increase other outstanding performance this quarter. reduce rates. increase over last year’s first half (3.4mn). The company’s entertainment portfolio in revenues of 2% over the same period last Ooredoo Oman increased the revenue by Its balance sheet has grown to $4.5tn. EBITDA stood at QR2bn for H1, 2017, 4% continued to perform strongly, with its year. In local currency terms, growth was 2%, whilst customer numbers were up 9%. Unwinding the balance sheet will mark the end of a above the same period last year (QR1.9bn). Ooredoo tv service reaching more than driven by Ooredoo Qatar, Ooredoo Oman, Despite diffi cult market conditions, Oore- controversial tool that drew criticism from Republican Ooredoo continued to upgrade its network 100,000 customers in May. Ooredoo Kuwait, Ooredoo Tunisia, Asiacell, doo Kuwait reported 4% growth in revenues lawmakers in Congress. Indosat Ooredoo and Ooredoo Maldives. and a signifi cant 25% growth in EBITDA.”

Qatar overall growth not to be affected by blockade, says Qatari economist Ezdan Holding H1 profi t

Reuters “Prices could Dubai see an increase in some of jumps 25% to QR1.16bn the items af- With the planned increase in its liquefied natural fected by the gas production taking shape, Qatar’s overall growth sanctions due zdan Holding Group has reported a is not expected to be aff ected in the medium term to re-routing signifi cant 25% year-on-year increase by the blockade imposed on it by a coalition led by of supply Ein net profi t to QR1.16bn for the period Saudi Arabia, a Qatari central banker has said. lines, shipping ending ended June 30, 2017. Qatar has hundreds of billions of dollars of financial costs, or price Earnings-per-share was QR0.44 during reserves that could be used to support its banks to increases from January-June 2017 compared to QR0.35 in counter possible capital outflows, Khalid Alkhater the sources,” the same period last year. (pictured) said. Alkhater said. Ezdan chairman Sheikh Dr Khalid bin “We do have deposits from Saudi Arabia and the “This is generally a cost-push inflation in the possi- Thani bin Abdullah al-Thani attributed the UAE in the range of $15bn to $20bn with a one-year ble range of 1% or slightly above...There is not much strength in net earnings to the ongoing ex- range of maturity,” he said. “We do not expect it to room to pressure the economy through trade sanc- pansion of its sectors, as the group launched roll over. The amount is very small and manage- tions and the eff ect will be limited,” he said, noting the fi rst stages of all its projects that were able.” that there was little cross-border trade between under construction during last year and the Alkhater added, “I suggested among other meas- Gulf Arab countries. fi rst half of the current year. ures that if the blockade countries withdraw their Asked if the central bank now needed to conduct “We have achieved remarkable achieve- deposits or freeze Qatari assets, we retaliate by a more independent monetary policy to deter pos- ments over the past six months, through doing the same. The government can also increase sible capital flight, Khalid Alkhater said by phone launching our real estate, hotel and shop- its deposits with local banks if needed.” from Qatar, “That depends on an internal assess- ping centres projects. Besides that, we will Qatar could also benefit from measures adopted ment at the central bank. However, it is technically seek further expansion and development of in the past by central banks around the world to possible should the monetary authority decide to our existing assets and projects in order to deal with capital outflows, such as strengthening do so...such as raising the interest rate on deposits achieve a greater growth rate and demon- prudential regulations and guaranteeing customer in addition to other precautionary measures.” strate our potentials to overcome the chal- deposits up to a certain limit, Alkhater said. Alkhater, an architect of Qatar’s monetary policy lenges imposed by the regional conditions,” Despite the Qatari riyal’s peg of 3.64 to the US dol- during the 2008 global financial crisis, is currently he said. lar, the riyal traded slightly lower between off shore on a sabbatical from the central bank while doing Ezdan group chief executive Ali Mohamed banks in the weeks after the diplomatic crisis research at Britain’s University of Cambridge. al-Obaidli affi rmed that the group is seek- erupted, but Alkhater said this was not a worry. He stressed that his views did not necessarily ing to complete the remaining phases of the “The Qatari riyal off shore markets are not that reflect the off icial line of the central bank. projects that have not yet entered into op- significant since supply of the riyal in these markets But if Qatar does diverge from US monetary policy, eration. is very limited. it would not be doing so for the first time, he noted. “The regional challenges will serve as Sheikh Dr Khalid and al-Obaidli: Remarkable achievements. They shouldn’t be a source of much worry, but only In 2008, the Qatar Central Bank decided not to fol- a further motive to enhance the business, to the extent that they can aff ect the spot market,” low an unprecedented string of rate cuts by the US increase production and operation capac- of Ezdan Oasis project, the largest in the housing units would include 183 commercial he said. “There is no reason to make any change to Federal Reserve that brought its policy rate close ity to meet demand, and maintain solid and group’s history, coming up in Al Wukair. units with restaurants, cafes and vital facili- the peg.” to zero. safe performance of the sectors in which the The Oasis is sprawling over up to 1mn ties. Qatar’s inflation climbed to an annual 0.8% in June Instead, Qatar kept its own deposit rate much higher group invests against any abrupt circum- square metres area, and will be offi cially in- The project – which aims a target popu- from 0.1% in May as the sanctions raised some at 2% for over two years, helping to stabilise the stances,” he added. augurated soon, he said. lation of 35,000 – would be served by serv- import costs. money market and reducing double-digit inflation. Al-Obaidli said Ezdan recently announced The fi rst phase comprises 2,058 residen- ices Ezdan Mall Al Wakrah and Ezdan Mall Al the launch of the leasing of the fi rst phase tial and commercial units, of which 1,875 Wukair. Gulf Times 2 Thursday, July 27, 2017 BUSINESS

ICAEW sees oil at $45 for 2017 despite Opec output cuts extension

By Santhosh V Perumal Council) is likely to be patchy, and needed to adjust to oil prices at current household spending power and business to growth, as would an escalation of exports, it said the principle mechanism Business Reporter partly because any rebound in oil levels have now been implemented, investment, ICAEW said. tensions between Qatar and other through which the economies might prices will bring more output back enabling the governments to better “We forecast the oil-producing sectors GCC economies,” it said, adding “for expect to benefit from faster trade and on stream in the US,” ICAEW said, target their resources on areas of the GCC economies to contract in now, the short-term economic impact overall growth would be through the The Organisation of the Petroleum forecasting oil prices to remain close that enhance growth prospects. 2017, but the non-oil sector is forecast of trade and diplomatic ties being cut more traditional channel of oil demand Exporting Countries (Opec) decision to $45 through most of 2017, creeping Additionally, the squeeze on bank to grow by 2.6%,” it said, adding overall should be relatively modest outside of and prices. to extend current production cuts until up through $55 by late 2019, as spare lending across the region has GDP (gross domestic product) growth Qatar itself.” “But the link between global trade March 2018 has failed to have impact capacity in the world market is closed. continued to ease, providing more is forecast to be just short of 1%. In the broader Middle East, the region and the oil price is likely to be less on oil prices through May and June With oil output held lower for longer, funding for investment in new growth Looking towards 2018, it forecasts a 1% looks unlikely to fully benefit from the powerful than in the past – partly and prices are slated to be $45 a barrel but with little impact likely on prices, sectors,” it said. pickup in oil output, complementing improvement in world economy and because cheaper oil is one of the key in 2017, according to the Institute of the GCC economies are therefore under Governments across the region may need momentum in the non-oil sector world trade in particular, due to a range drivers of global growth (and therefore Chartered Accountants of England and greater pressure to achieve progress to hike non-oil revenues – the introduction (expected to grow by 4%), resulting in of structural reasons, it said. pricier oil would undermine consumer Wales (ICAEW). in the non-oil sectors, where the of value added tax next year is a start overall GDP growth of 2.7%. Finding the region’s heavy reliance demand and trade), but also due to the “This is partly because compliance prospects look a little brighter, it said. in this respect, but other measures are “However, further oil price weakness on commodity exports, than broader- substantial new capacity in the global outside the GCC (Gulf Cooperation “The bulk of public spending cuts to be needed, and these may impact on would clearly pose a downside risk based manufacturing and services oil market,” it added.

Abu Dhabi Ports said Kuwait seeks energy mulling IPO amid venture with traders listing boom

Bloomberg from Glencore to Vitol London bu Dhabi Ports Co is con- Bloomberg Saudi Aramco, started a trading unit in 2012 sidering an initial public Dubai/Kuwait City as the country planned adding more than Aoff ering, joining a grow- 1mn bpd of refi ning capacity. The unit has ing list of state entities in the tripled its trading volume since then to about UAE seeking to sell shares, ac- pec member Kuwait plans to start 1.5mn bpd, and it targets increasing that by cording to people familiar with trading energy and not just producing about a third after the kingdom opens a new the matter. Oit, joining other Middle Eastern pro- refi nery next year. The government-run ports ducers eager to claw back some of the profi t Iraq is selling 2mn barrels of crude each operator has met with invest- traders like Vitol Group and Glencore earn by month through its venture with Lukoil ment banks in recent weeks and buying and selling the region’s oil. and has sold 8mn barrels of crude in auc- may decide on fi nancial advis- State-run Kuwait Petroleum Corp is in tions on the Dubai Mercantile Exchange. ers soon, the people said, asking talks with both commodities dealers along The exchange sales earned Iraq a premium not to be identifi ed as the in- with some international oil companies about of $4.2mn above its offi cial prices, and the formation is private. The com- forming a joint venture to trade refi ned prod- country has scheduled another for this week. pany could raise at least $1bn in a ucts as early as next year, a KPC offi cial said. State producers in China and Azerbaijan have share sale on the local exchange, Saudi Arabia and Oman already have trading also set up energy-trading businesses. one of the people said. No fi nal units, and Abu Dhabi National Oil Co said At stake for state-run traders in the Mid- decisions have been taken, and earlier this month it may seek partners as it dle East is a share in the region’s 7mn-bpd the company may decide against expands into trading. market for refi ned products. Regional fuel a listing, they said. Iraq’s state oil-marketing company in May demand is poised to grow almost 2% a year “There are no immediate plans began selling crude in a venture with the on average through 2025, according to David to go public,” Abu Dhabi Ports trading unit of Lukoil. Wech, managing director at Vienna-based chief executive offi cer Mohamed National oil companies in the world’s consultant JBC GmbH. Juma al-Shamisi said yesterday biggest crude-producing region prospered With demand rising and the world’s big- in response to Bloomberg’s re- for decades by supplying the raw commod- gest traders boosting profi ts, state producers quest for comment. ity to refi ners and independent traders. Now may have picked a good time to get into the Large state-owned companies they’re expanding into refi ning and petro- business. The market for refi ned products in the Gulf are turning to equity chemicals to add value to their main export. will tighten starting in the next decade, Wech markets to raise cash amid weak By trading their oil and refi ned products, said. oil prices. Abu Dhabi National these companies hope to squeeze more mon- What’s more, volatility in oil prices – Oil Co selected underwriters and ey from each barrel they produce, with help which creates opportunities for traders to advisers for an IPO of its gas sta- from partners like Glencore and Vitol – or in profi t – will intensify over the next year, driv- tions unit, which may value the competition with them. en by geopolitical tensions and uncertainty business at as much as $14bn, “The playing fi eld is changing,” said Olivier about Opec’s eff orts to cut supplies, Rashid people familiar with the matter Jakob, an analyst at consultant Petromatrix al-Ghurair, head of Dubai-based trader said last week. Emirates Global GmbH in Zug, Switzerland. “Greater com- MENA Energy, said in an interview. Aluminium is also planning to petition means there’s less room for traders. “It’s a good time to be a buyer,’” said Den raise about $3bn through a stock There’s less of a market for those traders that Syahril Mohamed, an analyst at consultant sale, people familiar with the don’t have assets.’’ FGE in Singapore. As more state players buy matter have said. KPC is discussing its plans for a trading and sell oil, this “could hurt traders since They will join Saudi Arabia venture with oil producers BP, Royal Dutch competition will be greater and will pressure Oil Co, which is preparing what Shell and Total, as well as with Vitol and margins,” he said. could be the largest-ever IPO as Glencore, the Kuwaiti company offi cial said Even so, established middlemen will con- the kingdom takes steps to over- on Monday. The venture would help sell fuel tinue to play a role in the Middle East, and it haul its economy. These share from refi neries KPC is building, including may take several years for risk- adverse state sales would be a signifi cant one at Duqm in Oman, the offi cial said. The companies like KPC to develop an expertise boost to IPOs in the region, tra- international companies and traders all de- in the free-wheeling business of trading, ditionally one of the smallest for clined to comment. according to Mohamed at FGE and Jakob at listings. The regional trend toward trading began Petromatrix. Companies in the Middle East with Oman, the biggest Arab oil producer “Independent traders will keep doing and Africa have raised about that’s not a member of the Organization business, since state oil companies are still $2.9bn from IPOs that began of Petroleum Exporting Countries. Oman focused on supplying their main local mar- trading in the last 12 months formed a trading company with Vitol in kets,” al-Ghurair said. “The state companies compared to about $204bn 2006, then bought out its partner in 2015. are building their capabilities, but they’re not State-run Kuwait Petroleum is in talks with Vitol Group and Glencore as well as some international oil companies worldwide, according to data Saudi Arabia’s state oil giant, known as there yet.” about forming a joint venture to trade refined products as early as next year, a KPC off icial said. compiled by Bloomberg.

CORPORATE RESULTS Nakheel reports 22% plunge in Q2 net profit

Du Chief executive Osman Sultan said on February it made 1.13bn Saudi riyals ($301.35mn) in the 16 the telecommunications firm would target three months ending June 30, compared with Du, the second largest telecoms operator in the 1bn dirhams ($272mn) in savings by 2019 as 1.15bn riyals in the same period a year earlier, UAE, halted an earnings slump when it reported government taxes erode profit. according to a bourse filing. flat quarterly net profit on Tuesday. In January, the company announced it had Four analysts surveyed by Reuters had Du, which ended rival Etisalat’s domestic acquired a licence to operate Virgin Mobile- expected the bank to post an average net profit monopoly in 2007, made a net profit of 446.6mn branded services in the UAE. of 1.01bn riyals for the quarter. dirhams ($121.6mn) in the three months to June Thousands of customers have been signed up The drop in net profit was primarily driven by 30, compared to 445.4mn dirhams in the year- to Virgin Mobile-branded services since a low- higher operating expenses, which rose 10.4% earlier period, according to a stock exchange key launch in the first week of Ramadan, which mainly due to an increase in provision for credit statement. began in late May, Sultan told reporters on a losses, SABB said. The telecommunications firm had reported conference call. Saudi companies issue brief earnings declining year-on-year profits in the previous 10 Turk Telekom statements early in the reporting period before quarters, according to Reuters data. publishing more detailed results later. The company’s results have been squeezed Turk Telekom posted a net profit of 890mn lira Operating income for the quarter rose by 2.3% since late 2014 as growth of the mobile market ($249mn) in the second quarter, jumping from on the corresponding period of 2016 to 1.8bn has been off set by a steady increase in the 248mn lira a year earlier, it said in a statement riyals, while profits from special commissions royalty — or tax — paid to the government. to the Istanbul stock exchange on Tuesday increased 8.6% over the same time frame to SICO Bahrain and EFG Hermes forecast du evening. 1.28bn riyals. would make a quarterly profit of 373.2mn Sales in the second quarter climbed 14.2% to Lower government spending as a result of dirhams and 409.3mn dirhams, respectively. 4.5bn lira, it said. reduced oil prices has raised challenges for Dubai developer Nakheel reported yesterday Net profit for the first six months of 2017 was Second-quarter revenue was 3.26bn dirhams. SABB Saudi banks, leading to lower net interest a 22% decline in second quarter net profit, 2.64bn dirhams, down from the 2.95bn dirhams This compares with 3.07bn dirhams a year ago. income and, in some cases, a rise in provisioning according to Reuters calculations. recorded in the corresponding period of last Du paid quarterly royalties — or tax — of Saudi British Bank (SABB), the kingdom’s sixth- for bad loans. Nakheel made a profit of 1.16bn dirhams year, the statement said. 527.2mn dirhams, similar to what it paid in the largest bank by assets, posted a 1.9% drop in its The bank is in merger talks with fellow Saudi ($315.8mn) in the three months to June 30, The company did not state its revenue but said prior-year period. second-quarter net profit on higher provisions Arabian lender Alawwal Bank, with sources compared to 1.48bn dirhams a year ago, Reuters the developer handed over 870 land form and The company also said it would distribute a for bad debt, broadly in line with analysts’ telling Reuters on May 31 that SABB had calculations showed, as the company did not built form units to customers in the first half of dividend of 13fils per share for the first half of forecasts. appointed US investment bank Goldman Sachs provide a quarterly breakdown. the year. 2017, the same as the previous year period. The bank, an aff iliate of HSBC Holdings, said to advise it on the proposed deal. Gulf Times Thursday, July 27, 2017 3 BUSINESS

Emerging equities stay bullish before Fed’s meeting

Reuters recent days, markets appear to London be betting Article 7 is unlikely while investors are also attracted by Poland’s robust Emerging markets were mostly economy. firmer yesterday after a shaky Deputy Prime Minister Mateusz start in Asia caused by a slight Morawiecki said the 2017 rise in the dollar and US bond budget deficit could be $2.7bn yields before the Federal lower than expected. Reserve meeting. “(The EU) would have to be It may reveal when the United incredibly aggressive with their States will start paring its language to have an impact as bond holdings and next raise the EU is more bark than bite,” rates. said Koon Chow, a strategist at Poland’s zloty inched further UBP in London. off recent three-month lows “The European Commission’s and Polish stocks rose 0.6% natural tendency is not to make as investors’ bullish view on big threats,” he said. emerging markets before the Polish debt insurance costs Fed meeting outweighed the were unchanged, with five- rise in local political risk. year credit default swaps at With the Fed seen standing 62 basis points, IHS Markit pat on interest rates later in said. the day, emerging markets in Meanwhile, investors were general showed little sign of sanguine about the Fed’s nerves. immediate impact on emerging Traders work at the Philippine Stock Exchange in Manila. The Property Index has climbed 23% this year as investors became more sanguine about President Rodrigo Duterte’s The Turkish lira and South markets, with Morgan Stanley pivot to China and his US counterpart’s insular approach to trade, which could hurt outsourcing companies. The measure now commands the highest premium since 2013 over African rand rose slightly analysts for instance holding on the stock benchmark, which is up 16%. versus the dollar and MSCI’s their bullish view. emerging equity benchmark “We think EM will be fine and was flat on the day close to we recommend buying into 27-month highs. weakness that might emerge,” The rouble rose 0.2% lifted by Morgan Stanley said, adding firmer oil. that Fed talk of weak inflation In Poland, the zloty firmed and would further boost emerging Polish stocks rose 0.5% to one- currencies that are already week highs before a European supported by a better growth, Philippine real estate Commission meeting that will inflation and current account vote on a censure motion on picture at home. Poland which is pushing on with That view should be confirmed moves allowing the government later in the day by Brazil’s to fire judges. central bank which is expected This may ultimately lead to the to cut interest rates by 100 basis triggering of so-called Article 7 points to 9.25 % — the first time stripping Warsaw of EU voting in four years that rates will be stocks seen to extend rights. under 10%. Brazilian stocks While the confrontation has closed on Tuesday at two- pressured Polish markets in month highs. market-beating rally

Bloomberg spending on roads and bridges, a move is benefi ting as the government lures ing to Astro del Castillo, managing direc- Manila cheered by investors. overseas outsourcing companies and tor at First Grade Finance Inc. “Property “Property stocks will continue to move those that run gambling websites. looks attractive, but it pays not to be ag- higher and even outperform as the sector “It doesn’t look like this will be over gressive, particularly when interest rates hilippine real-estate stocks will continues to grow with the economy,” anytime soon,” said Richard Laneda, are inching higher,” del Castillo said. extend a market-beating rally, the said Fitzgerald Aclan, who helps man- an analyst at COL. “Sentiments have The impact of reversing exemptions Pcountry’s biggest money manager age about $20bn at BDO Unibank Inc as improved.” on value-added tax for low-cost homes is betting, unfazed by the most expensive the head of equity investments. “There Earnings at Philippine developers have should be minimal because of the “huge” valuation in four years. are still some property companies that been climbing to records as Filipinos housing gap, BDO’s Aclan said. The Philippine Stock Exchange Prop- off er good value and attractive potential working and living abroad send money The Philippines has a 5.7mn housing erty Index has climbed 23% this year as upside.” back home while outsourcing companies backlog, according to Vista Land & Lifes- investors became more sanguine about The fund manager, whose BDO Sus- continue to expand. capes Inc. President Rodrigo Duterte’s pivot to tainable Dividend Fund has gained 16% Duterte’s plan to reduce income taxes “There will be future headwinds like China and his US counterpart’s insular this year, pointed to Ayala Land Inc. Its and spend $166bn on infrastructure has rising interest rates but there’s always approach to trade, which could hurt out- shares have increased about a third in led to a better economic outlook. Gross natural demand as a function of a grow- sourcing companies. The measure now value in 2017 but are still trading at a domestic product is forecast to expand ing economy,” said Aclan, whose top commands the highest premium since price-to-earnings ratio that’s 14% lower 6.5% annually in the next three years picks in the sector include Ayala Land, 2013 over the stock benchmark, which is than the fi ve-year average. after averaging 6.4% between 2014 and Megaworld Corp and Filinvest Land Inc. up 16%. Aclan said he turned “bullish” on the 2016. “As long as there’s economic growth, the Driving demand for houses and offi ce sector this year, cutting holdings of con- To be sure, the rally is facing hurdles whole sector isn’t going to suff er.” space is an accelerating economy, rising sumer and energy companies to buy real- such as a government plan to scrap tax Ayala Land rose 1.2% to a record close remittances from Filipinos abroad and estate shares. incentives that subsidise housing for on Monday, bucking a 0.3% decline in the government incentives to draw off shore Perception has changed, according to some people. Philippine Stock Exchange Index. Filin- businesses. COL Financial Group, amid an increase Demand could also be hurt by rising vest Land advanced 1.7%, its fi rst gain in Complimenting that is lawmak- in home bookings and new residential borrowing costs and increasing prices fi ve trading days, while Megaworld added ers’ plan to lower some taxes and boost developments, while the offi ce segment that make aff ordability an issue, accord- 0.4%, halting a two-day loss. Sensex surges; rupee Upbeat Wall Street lifts Asia bourses remains unchanged

AFP Hong Kong Bloomberg Alfanar Group. GE T&D India +20%, Mumbai biggest gain since 2009; swings to profit for 1Q from loss. Tata Metaliks sian markets mostly rose yes- -5.4%, 1Q net income declines. terday, led by energy giants on India’s benchmark equity index Meanwhile the rupee yesterday pared Arising commodity prices, while touched another record high as a all the losses and closed little changed traders were also buoyed by strong broad-based rally in commodities against the US dollar amid thin trade earnings and positive economic data including iron ore and copper helped ahead of the outcome of a Federal that saw Wall Street rack up fresh metals companies advance. Open Market Committee (FOMC) records. The S&P BSE Sensex Index rose 0.5% meeting. Improving demand and the weak- to 32,382.46 points in Mumbai, led by The rupee closed at 64.37 a dollar, ening dollar helped fuel a jump in Tata Steel. up 0.02% from its Tuesday’s close of copper prices to five-month peaks, An index of metals companies climbed 64.38. while oil has also been boosted by a to its highest level in almost three The rupee opened at 64.43 a dollar report pointing to lower US stock- years. Private sector lender ICICI Bank and touched a high and a low of 64.39 piles. and Reliance Industries gave the and 64.45 respectively. Both crude contracts jumped 3% biggest boost to the broad gauge. The According to a Bloomberg report, on Tuesday with traders also cheered NSE’s Nifty 50 Index gained 0.6% to the US Federal Reserve is expected by news that global crude producers, close above the 10,000 mark for the to keep rates on hold, traders are meeting in Russia Monday, called for first time. looking for comments that it could stricter adherence to an agreement to A resurgence in steelmaking in China, make on its balance sheet reduction cut output. helped by the seasonal mid-year plan. Big-name energy fi rms fl ew yes- increase in production, has sparked a The 10-year bond yield closed at terday, with BHP up more than 3% Employees work at the Tokyo Stock Exchange. The Nikkei 225 closed up 0.5% to 20,050.16 points yesterday. 30% rally in iron ore since mid-June to 6.444%, compared to its previous and Rio Tinto 2.6% higher in Syd- top $70 a metric tonne. Copper rose close of 6.43%. Bond yields and prices ney, while Hong Kong-listed CNOOC ramps up demand but that trend will year absence, while a closely watched Dealers will be hoping for guidance 2%, extending a rally on Tuesday that move in opposite directions. added 2.3% and PetroChina was up reverse from early September as con- index of German business confi dence from Fed boss Janet Yellen on its plans lifted it to its highest close in more So far this year, the rupee has more than 3%. sumption weakens, he added. hit an all-time high for July. for interest rates and when it will start than two years. gained 5.6%, while foreign investors Tokyo’s Inpex and JXTG Holdings On stock markets Tokyo ended That was followed by a reading of winding in its bond holdings balance “There is structurally a positive view bought $8.69bn and $16.87bn in piled on more than 1%. 0.5% higher, while Hong Kong added US consumer sentiment also moving sheet, eff ectively sucking cash out of on metals given the rising demand local equity and debt markets, “Things are looking a little bit bet- 0.3% in the afternoon and Shanghai towards record levels after falling for the market. from China and other countries,” said respectively. ter,” Michael Loewen, a strategist at closed up 0.1%. two months in a row. Republicans’ While there is no way of knowing Daljeet Singh Kohli, head of research Asian currencies were trading lower. Scotiabank in Toronto, told Bloomb- Sydney ended up 0.9% and Singa- success in pushing through a vote what they will do, the “latest chat- with India Nivesh Securities. South Korean won was down 0.34%, erg News. pore was 0.3% higher. Manila was up to discuss repealing Obamacare also ter suggests the (Fed policymakers) “At home, strong results from Taiwan dollar 0.08%, Malaysian “If we continue to see demand do 1.1% but there were losses in Seoul gave traders hope that Donald Trump may tip their hat to September as the Vedanta is adding to the optimism ringgit 0.08%, Thai baht 0.07%, China well and some refi ned products draws and Taipei. will soon be able to concentrate on his starting date for reducing the balance generated by a global rally in renminbi 0.05%, Indonesian rupiah in gasoline and distillates, the market Investors tracked a record for the economy-boosting agenda. sheet”, Stephen Innes, head of Asia- commodity prices.” 0.04% and Singapore dollar 0.04%. should perform pretty well.” But the S&P 500 and Nasdaq in New York and The dollar enjoyed something of a Pacifi c trading at forex fi rm OANDA, Vedanta jumped 2.3% to the However, China off shore spot was up long-term outlook for oil could be another strong day of corporate re- bounce against the yen on Tuesday, said in a commentary. highest level since September 2014, 0.08%. weak without deeper output curbs by sults, including from McDonald’s and pushing back towards ¥112 before In Tokyo, the Nikkei 225 closed adding to a 3.7% gain on Tuesday The dollar index, which measures Opec, said Richard Gorry, managing construction giant Caterpillar. the end of the Federal Reserve’s latest up 0.5% at 20,050.16 points; Hong after the company reported net the US currency’s strength against director at industry consultant JBC Support also came from a series of policy meeting. Kong — Hang Seng rose 0.3% income more than doubled for the major currencies, was trading at Asia. positive readings from Europe and the While it dipped in Asia it was well at 26,941.02 points and Shang- first quarter. 94.186, up 0.14% from its previous Prices are currently supported by US. Greece enjoyed a successful re- off the levels around ¥111 seen 24 hai Composite ended up 0.1% at Suzlon Energy +1.2%, wins order from close of 94.054. the summer driving season which turn to the debt markets after a three- hours earlier. 3,247.67 points yesterday. Gulf Times 4 Thursday, July 27, 2017 BUSINESS

Another trading probe makes Deutsche Boerse’s bad year worse

Bloomberg Naga Group, a Hamburg-based fi ntech Another probe into the manage- evidence of wrongdoing. Naga said it sures they follow the rules. LSE’s own is reviewing the exchange operator’s Frankfurt company, saw its shares soar after its ment team, which regulators said will cooperate with Bafi n and it wants market for tiny companies, AIM, has a management. initial public off ering, then plummet was triggered by the insider trading to avoid future volatility in its shares, similar approach. The company has called the allega- days later. case, began on July 19. and that the initial rally was fuelled by The European Union’s market- tions “unfounded” while Kengeter has eutsche Boerse’s chief executive “If there are problems with the The reviews come before the com- short-term speculation. abuse directive, which came into force said such an off ence betrays “his in- offi cer is having a bad year. IPO, that’s a bad sign and that creates pany reports second quarter earn- Scale requires companies to list 20% last year, and tougher domestic legis- nermost conviction.” D His $14bn London Stock Ex- a bad reputation for the new Scale ings. The Naga episode shows how of their capital or 1mn shares. Naga lation compel watchdogs to seek out The prosecutor informed Hesse’s change Group deal collapsed, he’s be- market,” said Alexander Thomas, even the biggest stock exchanges can listed just 4.76% of its stock, or 1mn market manipulation. Economy Ministry last week that it ing investigated for insider trading, capital markets partner at law firm stumble when they venture into the out of 21mn shares, meaning that it “If you are a member of a manage- will probably fi ne the exchange opera- and a German regulator is reviewing Pinsent Masons. “If there is market world of smaller stocks. still complied with Scale’s rules even ment board and Bafi n can prove you tor €10.5mn to resolve the probe. the reliability of his entire manage- manipulation, it’s not Deutsche Bo- Naga’s IPO earlier this month was though the proportion of its capital allowed insider trading, your contract “We are very carefully analysing ment team. erse’s fault, but it makes for a bad only the third for Scale. Stock-ex- available to trade was tiny. Deutsche on the management board will be can- all details and we will look into this Now Carsten Kengeter faces a fur- reputation. You destroy the confi- change operators around the world Boerse’s registered market demands a celled at very short notice,” Thomas in depth and based on the analysis ther test. The CEO has been touting dence you want to create.” have created markets for tiny stocks, minimum free fl oat of 25%. said. “Ten years ago, it might have been we will come to a conclusion,” said Deutsche Boerse’s new Scale market as The investigation into potential but few of the companies make it big Kengeter has said he is proud of easy to get away with this, now you Heiner Seidel, a spokesman for Deut- the ideal way for small German com- market manipulation in Naga’s shares and most shareholders lose money. Deutsche Boerse’s new market. have to be very careful.” sche Boerse. panies to raise capital. comes on top of a fi ve-month-old Bafi n, the German markets watch- Although Deutsche Boerse wrote the Bafi n’s investigation into Naga “The probe is not yet completed But, just four months after Scale’s probe into what Kengeter knew about dog, is looking for evidence of market rulebook for Scale, it is not responsible Group comes just days after the lo- and includes all persons who assume debut, the country’s markets watch- LSE takeover talks when he bought manipulation or insider trading in Na- for the conduct of listed companies. cal government for Deutsche Boerse’s responsibility for possible breaches dog is investigating suspicious trad- €4.5mn ($5.2mn) of Deutsche Boerse ga’s shares, a spokeswoman said. It can Instead, small stocks such as Naga pay home state of Hesse, which regulates of law,” Hesse spokesman Wolfgang ing in the shares of one of its listings. shares in December 2015. send the case to prosecutors if it fi nds about 20,000 euros for a bank that en- the Frankfurt Stock Exchange, said it Harms said in an e-mailed statement.

‘Day from hell’ looms as $3tn of companies Next bear market for post their earnings

Bloomberg Bayer AG and AstraZeneca London Plc are on tap, along with telecommunications providers Orange SA, If you think your Thursday Telefonica SA and Telecom stocks and credit hits looks bad, spare a thought Italia SpA and transportation for James Edwardes Jones. companies Volkswagen AG, The RBC analyst is bracing Airbus SE and Fiat Chrysler for what he calls the Automobiles NV. busiest earnings day he’s While the financial calendar experienced in about 20 is replete with busy years covering the consumer- Thursdays in most quarters, in 2018, shows survey goods industry. companies in past years have Edwardes Jones plans managed to space out their Bloomberg to arrive at RBC Europe’s earnings more. New York London off ices along the In the consumer sector, River Thames about the time Nestle used to publish its the world’s largest brewer, half-year results in August. merica’s second-longest bull run Anheuser-Busch InBev NV, AB InBev last year reported in stocks on record will end by late reports results at 6am local a day later than the rest of A2018, when US credit also will en- time. Fifteen minutes later its peers. ter its fi rst bear market since the global he has Nestle SA, followed by Danone, AB InBev and crisis, according to a Bloomberg survey of Danone at 6:30. Diageo all have new heads fund managers and strategists. Then come Diageo Plc and of investor relations this The poll of 30 fi nance professionals on British American Tobacco Plc, year, which may have four continents showed a lack of consen- along with a trading update contributed to scheduling sus on the asset judged as most vulnerable from Britvic Plc, all before changes. now, with answers ranging from European the morning team meeting at It won’t just be a busy day high yield to local-currency emerging- 7:15am. for analysts and baristas. market debt – though they were mostly in Next up are calls with The flurry of earnings, which the bond world. Among 25 responding to executives of some of those begins with a mad rush in the a question on the next US recession, the companies at 8am, 9:30am, morning and barely lets up, median answer was the fi rst half of 2019. 1pm and 2pm. means fund managers will The would-be end of a great cycle for Edwardes Jones has client be inundated with dozens of fi nancial markets would come just about notes to write before his broker reports. when central bank balance sheet contrac- final set of results from That could create volatility in tion is expected to kick into high gear. By L’Oreal SA at 5pm – 11 hours share prices as the recipients mid-2018, the Federal Reserve’s wind- after the first batch. Other struggle to digest notes down may be well under way, and the Eu- retail or consumer-goods that they use to help make ropean Central Bank might have joined the companies reporting today decisions on whether to add Bank of Japan in tapering asset purchases. include French grocer or dump shares, said James While none of the respondents sig- Casino SA, UK bookmaker Amoroso, investor relations nalled a 2007-09 style meltdown, even Ladbrokes Coral Group consultant and former smaller-scale downturns have wreaked Plc and Paris-based luxury analyst. large-scale damage in the past. The 2002 Pedestrians walking past the New York Stock Exchange. America’s second-longest bull run in stocks on record will end by late 2018, conglomerate Kering. “The buy-side will struggle,” bear market in US stocks wiped out more when US credit also will enter its first bear market since the global crisis, according to a Bloomberg survey of fund managers and “There has never been a day he said. “The sell-side will be than $7tn of value. strategists. like that,” Edwardes Jones going into meltdown.” “Consequences could be very pain- said. His recipe for getting With so many companies ful,” said Remi Olu-Pitan, who manages a investment offi cer at Nassau, Bahamas- be cutting back on their fi xed-income ticipated declines in stocks emerge – were through the day: “Maybe a reporting, Edwardes Jones multi-asset fund at Schroder Investment based Deltec International Group, said the holdings. Some cited the risk that infl a- common responses. Here are some oth- quadruple espresso.” said analysts will just try to Management Ltd in London. “We have chance for excessive tightening by the Fed tion fi nally picks up, with labour markets ers: Trim US stocks; buy Japanese equi- Across London’s financial spot results that diff er from had a liquidity-fuelled bull market. If that comes a close second to his China worry. tight in many major economies, and two ties; move more money into Europe and district, analysts are expectations. is taken away, there is a pressure point,” The median answer of 21 survey partic- said they would buy infl ation protection emerging-market shares. readying themselves for Without time for complete she said. ipants responding to the question of when as a portfolio adjustment. Two said to cut their commodities po- what Martin Deboo at analysis, notes will be even Central-bank policy is the linchpin for they see a slide of more than 20% for the A common refrain was a preference for sitions, one said to add commodities and Jefferies called a “day from more abbreviated than the majority of respondents. After the S&P 500 Index was the fourth quarter of non-US assets, particularly in equities a fourth plans to boost commodities after hell”: a bumper earnings normal, heavy on analyst unprecedented and sometimes coordi- 2018; two projected the bear market start- given the run-up in American stocks and they weaken. Some aim to add cash. Maria session in which European shorthand like “OG” (organic nated eff orts by monetary authorities to ing in the fi nal three months of this year. the earlier stage of economic recovery in Vassalou, a New York-based partner at companies worth more than growth) and “RIG” (real shore up fi nancial systems and the global Among the 21 respondents on a bear Europe. Perella Weinberg Partners, said the key is $3tn are set to report results, internal growth). economy over the past decade, many see market for credit – defi ned as a 1 percent- The Fed could exit from its days of stim- to be “agile” because “the era of big direc- according to data compiled For analysts feeling a messy unwinding as the top risk. Such age point jump in the premiums of US ulus too fast, choking off the economic re- tional bets is over.” by Bloomberg. overburdened on Thursday, concerns found some validation in re- investment-grade corporate bonds over covery and crimping profi t growth. A few For now the focus is on the US central Consumer-sector specialists there’s at least one upside to cent weeks with policy makers in Europe comparable government-debt yields – the worried about the possibility for an in- bank. Investors will be looking for clues have it worst, with almost $1tn so many companies reporting and the UK fl ip fl opping on discussions median pick was the third quarter of 2018. verted US yield curve – when short-term from its policy statement on Wednesday worth of listed companies all at once. around tightening policy. Here’s a snapshot of other fi ndings from rates rise above long-term levels – some- on when the balance-sheet run-off will lined up, ranging from “It used to be hard to find a One notable absentee from the list of the survey, conducted July 14-21. Bonds times seen as a precursor to a recession. start. After a soft patch in the economy drinks to cosmetics makers. two-week gap in the summer” major concerns cited in the survey was are currently the asset class most worry- So what would our intrepid investors earlier this year, Fed offi cials have hung But other sectors will be for a vacation, Jeff eries China, with just one investor highlighting ing investors. But – after many failed calls likely be doing with their portfolios over on to their forecast for infl ation to inch busy, too. Pharmaceutical analyst Deboo said. This year, the danger of a disruption in that coun- for the end of the multi-decade bond bull the next 12 months? Reducing the amount back up to their 2% target – a goal they’ve giants Roche Holding AG, that won’t be a problem. try’s fi nancial system. Atul Lele, chief market – only a minority said they would of equities – or adding them once the an- missed for most of the last fi ve years. Booming lead imports surprise in China’s H1 metals trade

By Andy Home a consistent net importer since 2012 and China’s build-out of smelting and refining Confusingly lumped in to the ferron- London you’d have to go all the way back to 2009 capacity, albeit one accelerated by the ickel category by China’s customs depart- to find it importing equivalent tonnage. cyclical abundance of scrap metal. ment, imports of Indonesian NPI totalled The imports largely came from just The impact on refined copper imports 563,000 tonnes in the first half of 2017, up China’s appetite for imports of refined two countries, namely Australia (32,000 was a cumulative 533,000 drop over the 78% year-on-year. industrial metals was generally subdued in tonnes) and Kazakhstan (18,600 tonnes). January-June period, or a 500,000-tonne It is this shifting dynamic at the nickel the first half of the year. What has caused the flip from net drop in net terms due to slightly lower raw materials stage of the supply chain Those of copper, for example, fell by exporter to net importer? This being lead, exports. Nickel raw material imports that has confounded nickel bulls and kept 26%, or over 500,000 tonnes, relative to a notoriously opaque market even outside have also boomed this year, reducing net the nickel price under sustained pressure the first half of 2016. In part that was due of China, it’s a little hard to say. import demand for refined nickel by 61%, so far this year. Imports of aluminium to strong imports of both copper scrap But it’s noticeable that imports of lead or 139,000 tonnes, to 87,500 tonnes. were, along with lead, the only ones to rise and mine concentrates. concentrates dropped in the first six Flows of nickel ore from the Philippines at a commodity metal level. Ample availability of both raw materials months of 2017, also defying the broader have been picking up steadily so far this But the 44,000-tonne year-on-year meant higher domestic production of trend. At 644,000 tonnes (bulk weight) year after being hit by a combination of jump to 64,000 tonnes is but a drop in refined copper and less demand for im- they were 4% lower year-on-year and, the rainy season and the clamp-down the aluminium ocean and dwarfed by the ported metal. A similar pattern played out indeed, the lowest quantity for any first on nickel mining initiated by former country’s exports of semi-manufactured in both the zinc and nickel sectors despite half period since 2013. environment secretary Regina Lopez and products. Semis exports totalled 2.1mn expectations that a lack of raw materials in All of which is somewhat ironic since now suspended by her replacement Roy tonnes in the first half of the year, up 6%. each would feed through to higher refined this is what everyone was expecting to rative of raw materials crunch translating been running for the last four years and was Cimatu. Rather ominously in light of the current imports. happen to lead’s sister metal zinc. into refined metal crunch. part and parcel of a global surge in scrap Imports of ore from Indonesia have political heat around China’s role in the The stand-out exception was lead, But zinc concentrate imports were a Imports of refined copper and refined availability occasioned by the sharp jump in also now resumed in earnest after that global aluminium market, exports were which saw concentrate imports slide robust 1.3mn tonnes (also bulk weight), up nickel were both lower in the first half of the copper price at the end of last year. country part-reversed a ban on the export 400,000 tonnes or above in both May and China flip from net exporter to net 31% on the first half of last year despite a the year, while imports of raw materials Imports of mined copper concentrates, of unprocessed minerals. and June, a level that has only been seen importer of lead in refined metal form. tightening raw materials market. were higher. by contrast, have been steadily rising over The ban was intended to coerce miners twice before, once in June 2015 and once China’s net imports of refined lead Conversely, imports of refined zinc slid In the case of copper, the big change the past five years and that trend was down the value-add processing chain, a in December 2014. totalled 50,300 tonnes in the first half of 38%, or 111,000 tonnes, to 180,000 tonnes. was the pick-up in imports of scrap, which extended in the first six months of 2017 to policy which has borne fruit in the form of 2017 — which may not sound like a lot of China’s zinc trade so far this year has surged by 19% to 1.9mn tonnes (bulk the tune of a further four-percent increase. a new stream of nickel pig iron (NPI) flow- „ Andy Home is a columnist for Reuters. lead but it was the first time China has been not conformed to this market’s bull nar- weight). That broke a downtrend that had This reflects a structural shift caused by ing from Indonesia to China. The views expressed are those of the author. Gulf Times Thursday, July 27, 2017 5 BUSINESS

CORPORATE RESULTS Ford reports better-than-expected quarterly profit The company’s revenue from information services unit rose services for IP alternatives, its shares were up 1.5%. “We continue 7.5% to $144mn, while revenue from its market technology unit to experience strong price competition in mobile in our large was up 4.3% at $72mn. Revenue, excluding transaction-based enterprise and corporate segment,” KPN’s chief executive Eelco expenses, rose 7.7% to $602mn, while operating expenses fell 7% Blok said in a statement. to $358mn. However, in the consumer market, KPN managed to add more Thales customers with both fixed and mobile services, lifting the average revenue per household by 5% to €42. Competition has become French defence and aerospace company Thales reported better more intense due to the recent merger of the Dutch activities of than expected first-half profit and sales yesterday as new orders Liberty Global, the largest cable company, and Vodafone, KPN’s rose and the company’s transport infrastructure division climbed biggest mobile rival, which has a combined television and mobile out of the red. off ering. Europe’s largest defence electronics supplier said it was too early Hyundai Motor to gauge the impact of short-term defence budget cuts in France but hailed plans by President Emmanuel Macron to boost spend- Hyundai Motor posted its smallest quarterly net profit in five ing in the coming years. years, falling dismally short of estimates, and warned the second “The trend is clearly positive with €50bn in defence spending at half of 2017 would be challenging as political headwinds hit sales the horizon of 2025; globally the trend is positive,” chief executive in China and slow US demand continues. Patrice Caine told analysts. The South Korean firm — which together with aff iliate Kia Motors He played down concerns about a tussle in the aerospace indus- is the world’s No 5 automaker — has been betting earnings will try between jetmakers and suppliers of services worth billions recover gradually, but its plans have ground to a halt with China’s of dollars a year, which planemakers want to wrest away from backlash over Seoul’s decision to deploy an anti-missile system, contractors such as Thales to try to boost margins. the US Terminal High Altitude Area Defence (THAAD), showing no Thales said first-half profit rose 16%, or 17% on an underlying ba- signs of abating. sis, to €637mn ($741mn) on revenue of €7.241bn, a rise of 5.8%, or Slower demand in the United States, the automaker’s No 2 market 5.9% in organic terms. It reaff irmed its 2017 and mid-term targets. after China, has also been taking a toll, a trend the South Korean Hilton Worldwide firm cautioned will persist through the rest of the year with its mainstay Sonata sedans losing ground in a market powered by Hilton Worldwide Holdings, the owner of the Waldorf Astoria ho- sport utility vehicles (SUVs). tel chain, reported a higher-than-expected quarterly revenue and “The challenging business environment is expected to persist in profit, as more people booked rooms at higher prices, and raised the second half because of negative external factors such as a its 2017 earnings forecast yet again. slowdown in US demand and China’s THAAD issue,” Hyundai CFO Hilton, which also owns the Conrad and the Double Tree hotel Choi Byung-chul said at an earnings conference call. Ford Motor Co yesterday reported a better-than-expected quar- Executive Brad Tilden said in a statement, noting “a number of chains, said it now expects 2017 adjusted earnings in a range of Hyundai Motor said its second-quarter net profit halved from a terly net profit due to a lower tax rate and increased US sales of operational challenges” as the two airlines unite. Total operating $1.78 and $1.85 per share, up from $1.73 to $1.81 per share forecast year ago to 817bn won ($729.14mn) — its 14th straight year-on- more-profitable pickup trucks, but forecast a slightly lower 2017 revenue rose 40.7% to $2.10bn, in line with analysts’ consensus previously. year fall and the smallest since the first quarter of 2012. pre-tax profit, sending its shares down 2.3%. Against a backdrop estimate. The company also raised it full-year forecast for adjusted earn- Analysts on average had expected 1.35tn won. Its operating profit of declining sales for the US auto industry, Ford leaned heavily LVMH ings before interest, taxes, depreciation and amortisation to a came in at 1.34tn won and sales at 24.31tn won for the period. on consumer discounts during the quarter and the value of its range of $1.88bn to $1.92bn, from $1.86bn to $1.90bn. AT&T unsold vehicles rose. LVMH, the world’s biggest luxury group, yesterday undershot Hilton, like its hotel industry peers, is benefiting from an uptick in Ford warned its full-year automotive operating margin and cash forecasts with a 23% rise in first-half underlying profits where corporate demand, as companies spend more based on improved AT&T’s quarterly profit topped Wall Street estimates on Tuesday flow would be lower than in 2016. growth was driven worldwide by its Louis Vuitton brand. business sentiment following Donald Trump’s election as presi- as the No 2 US wireless carrier lowered operating costs and intro- The No 2 US automaker said, however, a reduced tax rate would The group, whose other key brands inlude Dior, Fendi, Hennessy dent in November. Net income attributable to Hilton stockholders duced new promotions bundling video with phone service that boost its full-year net profit. cognac and jeweller Bulgari, said that in an environment that was $166mn, or 51 cents per share, in the second quarter. helped it compete in a fierce market for customers. The results are the first for chief executive Jim Hackett since Ford remained uncertain it approached the second half of the year The company’s net income in the year-ago quarter was $239mn, Its shares rose 2.5% to $37.12 in after-hours trading. ousted his predecessor in late May and elected him to the top with caution. or 72 cents per share, reflecting $144mn from discontinued opera- AT&T is battling industry leader Verizon Communications Inc and spot. Hackett has promised a broad-reaching review of Ford’s LVMH said first-half profit from recurring operations reached tions. Revenue rose to $2.35bn from $1.95bn. smaller rivals Sprint Corp and T-Mobile US Inc for customers in a operations within his first 100 days. €3.640bn ($4.23bn). This compared with €3.75bn forecast in a Metro Bank market where most people already have cell phones. Analysts are concerned about the high discounts that Ford and Reuters poll of analysts. Verizon in February reintroduced an unlimited data plan for the other automakers are relying on to sell cars and high supplies of LVMH’s rivals in the luxury industry such as British luxury brand British lender Metro Bank raised £278mn ($362mn) by selling new first time in more than five years, and other carriers have since unsold vehicles. Ford’s global sales were down 43,000 vehicles in Burberry and French luxury group Hermes have also signalled shares to investors and also generated a pretax profit in the first then sweetened their own off ers. the quarter, with 8,000 of that coming in the US market. better demand in mainland China and improving tourist spending half of the year. AT&T, which is in the process of buying Time Warner Inc for Ford said its full-year margin in North America would be lower in Europe. Metro Bank, the first new high street bank in Britain in over 100 $85.4bn in an eff ort to turn itself into a media powerhouse, has than in 2016 due to rising commodity costs and engineering PSA Group years when it launched in 2010, said the proceeds of the share sought to compete by bundling mobile service with video enter- expenses. Ford said it now expect full-year adjusted earnings per placing would be used for growth and to replace funds used for tainment. share in a range from $1.65 to $1.85, above the $1.51 expected by PSA Group reported record profitability at its core manufacturing its acquisition of a mortgage portfolio last month for £597mn. In June, it announced that it was off ering its unlimited wireless Wall Street, according to Thomson Reuters I/B/E/S. division in the first half as stronger pricing enabled the maker of “The fact that we’ve actually raised 10% of the stock at the market plan with its internet streaming service DirecTV Now for an ad- But chief financial off icer Bob Shanks said this would be largely Peugeots and Citroens to overcome weaker sales in Europe and price with no discount is a fantastic result. ditional $10 a month. due to a 2017 tax rate of 15% as Ford pulls forward deferred tax China. Net income rose 3.6% to €1.26bn ($1.5bn) on a 5% revenue We were massively oversubscribed,” chief executive Craig Don- Such product bundles helped win new subscribers as well as keep losses from outside the United States and could be aff ected by US increase to €29.17bn, the French carmaker said yesterday, beating aldson told Reuters. hold of old ones, Chief Financial Off icer John Stephens said on a market conditions. analysts’ expectations and sending PSA shares up more than The lender, which off ers retail, business and private banking, said post-earnings conference call with analysts. Ford’s CFO said the company has canceled plans to build the next 5%. Under chief executive Carlos Tavares, the company has underlying profit before tax was £6mn in the six months ended Net income attributable to AT&T rose to $3.9bn, or 63 cents per generation of its compact Focus model in South America. rebounded from near-bankruptcy and a 2014 bailout to boast an June, compared with a loss of £13mn a year earlier, driven by share, in the second quarter ended June 30, from $3.4bn, or 55 For the North American market, Ford announced last month that industry-leading profit margin last year following cost cutting, a growth in lending and customer deposits. cents per share, a year earlier. it would move production of the Focus to China from Mexico. pared-down lineup and determined eff orts to lift prices. Metro Bank, which listed in London in March last year with the Excluding some items, earnings per share were 79 cents, ahead The company reported second-quarter net income of $2.04bn, or The core automotive operating margin jumped from 6.8% to 7.3% aim of challenging Britain’s big lenders, boosted its loans and of analysts’ average estimate of 73 cents per share, according to 51 cents per share, up from just under $2bn, or 49 cents per share, in the first half, a “new historic high” for the Paris-based carmaker, deposit book, shrugging off concerns over slowing economic Thomson Reuters I/B/E/S. a year earlier. finance chief Jean-Baptiste de Chatillon said on a conference call growth, a faltering housing market, high levels of consumer debt Boeing Daimler with reporters. and rising inflation. But the earnings numbers squarely beat analyst expectations of Nintendo Boeing Co shares soared almost 8% to a record high yesterday Daimler may split parts of its business into separate legal entities €28.92bn in revenue, €1.3bn in automotive profit and a €1.06bn after the world’s biggest plane maker posted second-quarter in an overhaul, its chief executive Dieter Zetsche said, although net income, based on the median of nine estimates polled for Re- Nintendo said yesterday it swung back to profit in the three profit and cash flow well ahead of Wall Street estimates and lifted the car and truck maker ruled out major divestments for now. uters. While auto recoveries typically require sharp sales growth, months to June as the Switch console made more inroads into its full-year forecasts, helped by aggressive cost cutting. The German company’s total market capitalisation is around PSA’s profit surge has been driven by product mix — essentially the global game market. Boeing has reduced spending by streamlining production, cutting €65.25bn, according to Thomson Reuters data. pricing and a demand shift to plusher models — and cost cutting, The Kyoto-based company struggled in the April-June quarter jobs and winding down development costs, which has dramati- Chief financial off icer Bodo Uebber said Daimler does not intend Warburton said.”I have honestly never seen anything like this.” last year when it faced a stronger yen and lacklustre sales, par- cally improved profit and cash flow. to divest business divisions, but left open the question about a PSA said its market share decline — particularly in Europe — ticularly of its Wii U game consoles. Its 787 Dreamliner contributed about $530mn in cash in the partial listing of some businesses. wiped €92mn from profit. Nintendo launched Switch in March with a price tag of $300 and quarter, the second-largest amount in the six years since Boeing “We have not decided to set up new legal structures within our Stora Enso had sold 2.7mn units by the end of the month. started delivering the carbon fibre planes. group. We have decided to analyse this possibility. The gadget is seen as a new pillar for the company’s earnings. The company’s cash from operations, at nearly $5bn in the quar- We had a small group in our company which was weighing this Stora Enso said yesterday its latest packaging board plant invest- During the April-June period, the company carried out successive ter, was roughly double estimates of about $2.5bn. idea,” Zetsche said in a call on second-quarter results. ments would help to boost earnings in the third quarter after launches of headline game titles for Switch, such as “Mario Kart “Monster cash flow,” said analyst Robert Stallard at Vertical Internal deliberations within Daimler had now reached a stage the paper maker reported lower than expected second-quarter 8 Deluxe” and “ARMS”. Nintendo said sales of Switch hardware in Research. where markets needed to be informed, he added. earnings. April-June totalled 1.97mn units while software reached 8.14mn The results were “about as close to perfect as it gets from Boe- News of the strategy review comes as the auto industry faces a Stora is one of the world’s largest makers of graphic papers — during the quarter. ing,” he added. barrage of criticism over diesel pollution and allegations about such as newsprint and magazine paper — which have faced The company said quarterly net profit reached ¥21.26bn Military aircraft sales fell 4% to $6.8bn, but profit jumped 50% anti-competitive behaviour. falling demand as publishing moves online. ($190mn), flipping from a net loss of ¥24.53bn in the same period and margins widened 4.6 percentage points, another sign of Second-quarter results showed Daimler’s star performer re- The company has shifted focus towards pulp and packaging last year. Nintendo plans to ship 10mn consoles in the fiscal year cost-cutting. mained its luxury cars division which helped push up quarterly board and is in the process of bringing a new paperboard plant in to March 2018. Boeing now needs to keep speeding up production of 737s and operating profit by 15%, slightly below consensus. China into full production. Nintendo’s operating profit came to ¥16.21bn, a jump from an stay on schedule with 787-9 and 787-10 production and the Mercedes-Benz sold 595,200 cars thanks to a 28% rise in Chinese It has also converted a paper making business in Finland to operating loss of ¥5.1bn. Sales, meanwhile, reached ¥154.07bn, transition to the 777X, a replacement for its 777 jetliner, said Ken demand. Margins improved to 10.2% from 6.4% in the year-earlier produce container board. more than doubling from the same period last year. Herbert, an analyst at Canaccord Genuity. period, mainly due to sales of a new E-Class limousine. Stora said it had separated its paper division’s legal structure The company maintained its full-year projections, seeing net The extra cash allowed Boeing to add $1.5bn to its 2017 operating Coca-Cola from other businesses, a move which one analyst said could profit at ¥45bn, operating profit at ¥65bn and sales of ¥750bn. cash flow forecast, now about $12.25bn. signal a restructuring. Stora’s adjusted operating profit in the Nintendo shares rose 1.33% yesterday to end at 35,770 before the Boeing will increase share buybacks this year by $3.5bn, to about Coca-Cola Co’s profit, in its first quarter under new chief executive second quarter fell 3% from a year ago to €219mn ($255mn), release of the earnings. $10bn. And it will make $3.5bn in additional pension contributions James Quincey, beat analysts’ estimates on higher-than-expected missing analysts’ average expectation for €228mn, in a Reuters KPN this year to reduce future costs. demand for its healthier non-carbonated beverages as well as low poll of analysts. Boeing said it will cut full-year capital expenditure by $300mn, and no-sugar versions of its sodas. General Dynamics Cost cutting and new retail customers helped KPN narrowly beat but that was expected since the company has made most of the Coca-Cola, like rival PepsiCo, has been building its non-carbonat- market expectations with a 1.5% rise in second-quarter core earn- big investments in its 777X wing factory and the 737 MAX and ed drinks portfolio and stepping up eff orts to reduce sugar in its General Dynamics Corp, maker of Gulfstream jets, tanks and US ings on Wednesday, lifting its shares. 787-10 programs, said analyst Richard Aboulafia at Teal Group. beverages as consumers look for healthier options. Navy ships, posted a higher-than-expected quarterly profit yes- The Netherlands’ largest telecoms company delivered adjusted Boeing swung to a profit of $1.76bn, or $2.89 per share, in the While Coca-Cola’s net revenue declined 16% in the quarter, as the terday, driven by increased sales in its combat systems business. earnings before interest, taxes, depreciation and amortisation second quarter, from a loss of $234 mn, or 37 cents per share, a company sells off its low-margin bottling operations, revenue The company also raised its full-year earnings per share forecast (EBITDA) of €601mn ($699mn), while analysts polled by Reuters year earlier that reflected charges related to the 787, 747 and KC- from its core beverage business, or organic revenue, rose 3%, to between $9.70 and $9.75 from $9.50 and $9.55. on average predicted €584mn. 46 tanker aircraft programmes. indicating strength in demand. Sales in its combat systems unit, which makes battle tanks and But although KPN’s revenue slipped further, with a 3% fall to Core earnings, which excluded some pension and other costs, “Organic revenue growth in sparkling soft drinks was led by combat vehicles, rose 9% in the second quarter ended July 2. €1.6bn, as business customers switched traditional fixed-line were $2.55 per share in the quarter. Revenue fell 8.1% to $22.74bn. innovation in and marketing support for our low- and no-sugar General Dynamics’ margins rose to 13.8% in the quarter from options like Coca-Cola Zero Sugar,” Quincey said in a statement. 13.2% a year earlier. Organic revenue was also boosted by higher unit sales of its mini- The Falls Church, Virginia-based company’s net income from cans and small bottles, which have gained in popularity even as continuing operations rose to $749mn, or $2.45 per share, from king-sized bottles fall out of favor. $714mn, or $2.30 per share. Analysts polled by Thomson Reuters Net income attributable to Coca-Cola’s shareholders fell 60.2% to I/B/E/S had expected a profit of $2.43 per share. $1.37bn, or 32 cents per share. Revenue, however, fell 1.3% to $7.68bn as sales decreased in Coca-Cola said it incurred a charge of $653 mn related to refran- both its aerospace unit and information systems and technology chising its North America bottling operations. division. The company’s aerospace business, its third biggest, Excluding items, Coca-Cola earned 59 cents per share, beating delivered 30 aircraft in the second quarter, compared with 36 a the average analysts’ estimate of 57 cents, according to Thomson year earlier. Reuters I/B/E/S. Revenue fell to $9.70bn but beat the average Nasdaq analysts’ estimate of $9.65bn. Alaska Air Exchange operator Nasdaq reported a better-than-expected quarterly profit, helped by a jump in revenue in its market serv- Alaska Air Group yesterday posted a 13.8% rise in quarterly profit, ices business that oversees transactions, clearing and settlement helped in part by the December 2016 acquisition of former rival services. Virgin America. The company’s net income rose to $147mn, or 87 cents per share, Shares of Alaska traded 2% lower at midday as airline stocks fell in the second quarter ended June 30 from $70mn, or 42 cents per sector-wide, but rebounded from earlier lows. share, a year earlier. Alaska, now the fifth-largest US carrier by passenger traff ic, re- Excluding one-time items, Nasdaq earned $1.02 per share, beating ported second-quarter net income of $296mn, or $2.38 per share, the average analyst estimate of 96 cents, according to Thomson up from $260mn, or $2.10 per share, in the period a year earlier. Reuters I/B/E/S. The Seattle-based carrier posted adjusted earnings of $2.51 per Revenue from market services, the company’s biggest business, share, just short of analysts’ consensus forecast of $2.52 per rose 16.5% to $620mn. share, according to Thomson Reuters I/B/E/S. The company’s results were also helped by its focus on growing Quarterly passenger unit revenue, which compares sales to flight its information services and market technology businesses. capacity, rose 1.3% in the period ended June 30. Nasdaq recently off ered to buy Sybenetix, a London-based star- Earnings from the prior year do not include Virgin America’s tup that uses artificial intelligence to help compliance off icers at results. “We had a very solid quarter, driven by a growing cus- asset management firms analyse the behaviour of their traders in tomer base and strong revenue performance,” Alaska Air Chief order to prevent market abuse. Gulf Times 6 Thursday, July 27, 2017 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 6.50 -0.61 350,882 Boubyan Intl Industries Hold 49.90 1.84 141,300 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 17.10 0.06 177,054 Gulf Investment House Ksc 35.50 -0.56 1,451,964 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 18.43 -0.86 325,454 Boubyan Bank K.S.C 415.00 0.48 841,862 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 13.04 -1.21 124,241 Ahli United Bank B.S.C 221.00 0.45 6,168,899 Bankmuscat Saog 0.36 1.12 2,845,456 Saudi Printing & Packaging C 19.39 3.19 7,389,070 Osos Holding Group Co 136.00 -1.45 20,000 Bank Sohar 0.15 0.00 3,964,648 Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 0.00 484,388 Saudi Paper Manufacturing Co 6.80 -0.73 204,082 Qurain Petrochemical Industr 351.00 0.86 894,074 Bank Dhofar Saog 0.22 2.33 146,837 Alinma Bank 16.08 -0.37 19,285,555 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 80.68 -0.42 75,423 Ekttitab Holding Co Sak 39.00 3.17 664,400 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 28.50 0.18 165,441 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 21.03 -0.19 139,066 Real Estate Trade Centers Co 43.40 -0.23 8,100 Al-Hassan Engineering Co 0.05 0.00 - Hsbc Amanah Saudi 20 Etf 29.55 0.00 - Acico Industries Co Kscc 270.00 0.00 250 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 14.68 4.04 3,097,950 Kipco Asset Management Co 72.00 0.00 101,535 Al-Anwar Ceramic Tiles Co 0.13 0.81 717,426 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 950.00 5.30 7,861 Al Suwadi Power 0.16 0.00 - Zad Holding Co 75.00 0.00 - Walaa Cooperative Insurance 29.56 -0.37 282,417 Alimtiaz Investment Co Kscc 169.00 -0.59 14,997,553 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 64.30 -1.83 39,295 Bank Al-Jazira 12.60 -0.32 877,487 Ras Al Khaimah White Cement 89.00 0.00 1,400 Al Sharqiya Invest Holding 0.11 0.00 - Vodafone Qatar 9.00 1.69 1,664,864 Al Rajhi Bank 62.97 -0.90 2,160,873 Kuwait Reinsurance Co Ksc 186.00 0.00 8,247 Al Maha Petroleum Products M 1.40 0.00 - United Development Co 17.20 -0.35 147,044 Samba Financial Group 25.87 -0.42 222,406 Kuwait & Gulf Link Transport 0.00 0.00 - Al Maha Ceramics Co Saoc 0.30 0.00 - Salam International Investme 9.37 0.21 6,009 United Electronics Co 43.55 5.55 1,668,207 Human Soft Holding Co Ksc 4,300.00 -1.15 110,385 Al Madina Takaful Co Saoc 0.11 0.00 494,514 Qatar & Oman Investment Co 8.95 1.02 18,360 Allied Cooperative Insurance 14.53 -2.74 636,440 Automated Systems Co Kscc 181.00 0.00 10,436 Al Madina Investment Co 0.07 -1.52 456,600 Qatar Navigation 67.50 0.00 79,625 Malath Insurance 24.83 1.47 1,414,121 Metal & Recycling Co 118.00 -0.84 30 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 74.80 1.77 18,284 Alinma Tokio Marine 24.39 -0.45 18,561 Gulf Franchising Holding Co 80.00 0.13 7,100 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 141.90 -0.21 88,465 Arabian Shield Cooperative 47.92 0.00 47,389 Al-Enma’a Real Estate Co 40.10 -0.99 407,758 Al Jazeera Steel Products Co 0.24 0.00 - Qatar Islamic Insurance 61.00 0.00 2,378 Savola 47.29 -0.40 160,541 National Mobile Telecommuni 1,170.00 1.56 3,451 Al Jazeera Services 0.15 -1.33 82,468 Qatar Industrial Manufactur 43.00 0.00 12,388 Wafrah For Industry And Deve 21.59 -0.96 93,905 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.08 -1.28 400,000 Qatar International Islamic 59.00 2.43 185,747 Fitaihi Holding Group 12.96 0.78 241,059 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 50.50 -1.17 29,788 Tourism Enterprise Co/ Shams 29.45 -1.24 238,875 Al Salam Group Holding Co 51.40 3.42 2,466,871 Al Batinah Power 0.14 0.00 - Qatar Islamic Bank 97.50 -0.81 76,947 Sahara Petrochemical Co 13.20 0.76 1,460,606 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 18.20 0.28 61,070 Herfy Food Services Co 54.14 -1.11 44,362 Al Aman Investment Company 47.50 1.28 100,000 Al Batinah Dev & Inv 0.09 0.00 - Qatar General Insurance & Re 33.30 7.07 3,006 Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.15 -2.68 65,078 Qatar German Co For Medical 8.45 3.55 78,338 Manazel Holding 44.00 -2.65 1,026,000 Ahli Bank 0.18 0.00 28,471 Qatar Fuel Qsc 112.50 0.72 58,978 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.79 0.00 - Qatar First Bank 7.78 -0.64 194,027 KUWAIT Tijara And Real Estate Inves 57.20 0.00 90,010 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 202.80 1.40 30,115 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.59 0.00 - Qatar Cinema & Film Distrib 27.00 0.00 3,520 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 505.00 1.41 169,672 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 70.60 -3.29 136,030 Commercial Real Estate Co 80.50 2.03 6,229,489 Ooredoo Qsc 98.00 -0.31 71,380 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 14.00 0.57 105,221 Sultan Center Food Products 0.00 0.00 - National International Co 68.00 0.15 58,232 Mazaya Qatar Real Estate Dev 11.28 0.36 90,896 Kuwait Foundry Co Sak 289.00 0.00 1,000 Taameer Real Estate Invest C 35.60 -1.11 1,124,018 UAE Mesaieed Petrochemical Holdi 13.16 -0.83 158,515 Kuwait Financial Centre Sak 109.00 0.00 1,250 Gulf Cement Co 76.00 0.00 286,555 Al Meera Consumer Goods Co 156.90 1.88 182,318 Ajial Real Estate Entmt 142.00 0.00 279,507 Heavy Engineering And Ship B 207.00 0.98 383,438 Company Name Lt Price % Chg Volume Medicare Group 87.00 0.58 36,628 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 77.90 -0.89 706 Kuwait Finance & Investment 43.00 -4.44 5,000 National Real Estate Co 126.00 -1.56 1,412,651 Waha Capital Pjsc 1.77 1.14 1,551,071 Masraf Al Rayan 41.95 0.48 266,992 National Industries Co Ksc 175.00 0.00 21,000 Al Safat Energy Holding Comp 40.00 -2.20 164,167 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 13.37 -2.05 57,908 Kuwait Real Estate Holding C 41.20 0.49 1,369,900 Kuwait National Cinema Co 1,350.00 0.00 500 United Arab Bank Pjsc 1.61 15.00 104,778 Industries Qatar 101.40 0.30 48,465 Securities House/The 45.10 1.12 2,311,026 Danah Alsafat Foodstuff Co 73.00 -1.35 252,427 Union National Bank/Abu Dhab 4.45 -2.41 7,351,133 Islamic Holding Group 52.70 -2.04 18,061 Boubyan Petrochemicals Co 568.00 0.35 87,524 Independent Petroleum Group 330.00 0.00 25 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 49.00 -1.80 25,103 Al Ahli Bank Of Kuwait 320.00 0.00 9,100 Kuwait Real Estate Co Ksc 60.30 2.73 3,272,791 Union Cement Co 1.30 0.00 - Gulf International Services 23.20 -1.28 769,438 Ahli United Bank (Almutahed) 418.00 0.72 4,350 Salhia Real Estate Co Ksc 383.00 -0.52 280,000 Umm Al Qaiwain Cement Indust 1.61 0.00 - Ezdan Holding Group 13.09 -0.08 486,962 National Bank Of Kuwait 699.00 -0.14 1,391,196 Gulf Cable & Electrical Ind 430.00 0.94 36,981 Sharjah Islamic Bank 1.33 -2.21 9,002,298 Doha Insurance Co 14.20 0.00 - Commercial Bank Of Kuwait 350.00 0.57 105,050 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 31.95 1.11 196,676 Kuwait International Bank 244.00 0.00 580,598 Kuwait Finance House 549.00 0.00 4,482,237 Sharjah Group 1.50 0.00 - Dlala Holding 19.20 0.00 132,162 Gulf Bank 243.00 -0.41 415,100 Gulf North Africa Holding Co 35.50 0.00 2,393,490 Sharjah Cement & Indus Devel 0.99 0.00 - Commercial Bank Qsc 30.80 0.65 121,523 Al-Massaleh Real Estate Co 43.80 -0.23 65,050 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 33.50 -0.89 389,710 Al Arabiya Real Estate Co 34.80 0.58 1,303,521 Osoul Investment Kscc 57.00 -3.39 3,744 Ras Al Khaimah White Cement 1.06 0.00 - Al Khaleej Takaful Group 17.20 1.18 13,784 Kuwait Remal Real Estate Co 69.00 -4.03 965,506 Gulf Insurance Group Ksc 600.00 0.00 10,500 Ras Al Khaimah Ceramics 2.45 0.00 - Aamal Co 11.41 1.33 55,634 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 2,100.00 0.00 201 Ras Al Khaimah Cement Co Psc 0.76 0.00 15,440 Al Ahli Bank 30.60 -3.16 17,512 A’ayan Real Estate Co Sak 84.70 0.00 244,920 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.70 0.00 - Investors Holding Group Co.K 24.50 1.24 10,759,183 Aayan Leasing & Investment 45.80 0.66 6,266,804 Rak Properties 0.68 0.00 - Al-Mazaya Holding Co 119.00 0.85 1,990,108 Alrai Media Group Co Ksc 120.00 -1.64 125,322 Ooredoo Qsc 76.50 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 20.00 0.00 486,990 National Investments Co 113.00 2.73 2,094,544 Oman & Emirates Inv(Emir)50% 0.58 0.00 - Gulf Petroleum Investment 43.00 0.70 2,152,600 Commercial Facilities Co 176.00 -0.56 347,100 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 804.00 1.77 273,921 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.70 - City Group 0.00 0.00 - Afaq Educational Services Co 105.00 0.00 1,653 National Marine Dredging Co 4.60 0.00 - United Wire Factories Compan 17.99 -1.21 195,947 Inovest Co Bsc 117.00 2.63 1,365,472 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.54 0.00 - Etihad Etisalat Co 18.25 -2.04 960,957 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 175.00 -2.78 12,950 National Corp Tourism & Hote 2.60 4.42 192,000 Dar Al Arkan Real Estate Dev 5.96 0.17 4,110,983 Al-Deera Holding Co 33.00 3.45 39,740 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.90 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.50 0.00 - Rabigh Refining And Petroche 11.96 -0.42 518,228 Mena Real Estate Co 24.00 3.00 4,056,317 National Bank Of Fujairah 3.00 0.00 - Banque Saudi Fransi 30.12 -1.63 102,313 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 16.80 -1.52 391,895 Amar Finance & Leasing Co 40.00 -12.66 12,500 OMAN Methaq Takaful Insurance 0.87 0.00 73,549 Manazel Real Estate Pjsc 0.52 0.00 2,197,782 Mediterranean & Gulf Insuran 17.56 -0.96 288,875 United Projects For Aviation 715.00 -7.14 2,509 Company Name Lt Price % Chg Volume Saudi British Bank 26.70 -0.26 72,251 National Consumer Holding Co 98.00 0.00 22,000 Invest Bank 2.66 0.00 - Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 44.90 2.05 637,240 Voltamp Energy Saog 0.48 0.00 - Intl Fish Farming Co Pjsc 1.60 -1.23 723,911 Red Sea International Co 18.94 -0.84 122,174 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.83 0.00 - Takween Advanced Industries 11.06 -0.54 204,741 Equipment Holding Co K.S.C.C 50.10 0.00 177,900 United Power Co Saog 3.55 0.00 - Gulf Pharmaceutical Ind Psc 2.30 0.00 - Sabb Takaful 26.68 -1.08 97,870 Nafais Holding 195.00 0.00 200 United Finance Co 0.12 0.00 - Gulf Medical Projects 3.70 -9.98 200 Saudi Arabian Fertilizer Co 62.02 -1.02 99,743 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 0.93 0.00 - National Gypsum 12.23 -0.57 38,685 Arkan Al Kuwait Real Estate 85.10 0.00 185,000 Takaful Oman 0.18 0.00 - Fujairah Cement Industries 1.10 0.00 - Saudi Ceramic Co 27.86 -0.14 24,965 Gfh Financial Group Bsc 172.00 -0.58 471,529 Taageer Finance 0.11 0.00 70,026 Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 35.11 -0.14 85,699 Energy House Holding Co Kscp 35.30 -7.11 842,290 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.00 0.00 - Saudi Pharmaceutical Industr 34.94 0.55 96,873 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.16 0.00 - First Gulf Bank 0.00 0.00 - Thimar 35.75 0.99 688,480 Kuwait Co For Process Plant 155.00 0.00 5,000 Sohar Poultry 0.21 0.00 - Finance House 1.60 0.00 - National Industrialization C 14.46 -4.74 3,122,826 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.69 0.00 - Eshraq Properties Co Pjsc 0.94 2.17 5,616,558 Saudi Transport And Investme 0.00 0.00 - National Ranges Company 28.70 0.00 1,562,400 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 18.45 0.00 - Saudi Electricity Co 24.08 -0.45 1,044,792 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 1.88 0.00 - Emirates Insurance Co. (Psc) 6.00 0.00 - Saudi Arabia Refineries Co 34.31 -0.49 320,931 Al-Ahleia Insurance Co Sakp 430.00 0.00 17,782 Sharqiyah Desalination Co Sa 4.35 0.00 - Emirates Driving Company 8.00 6.24 7,000 Arriyadh Development Company 20.00 -0.30 195,264 Wethaq Takaful Insurance Co 52.00 13.04 7,000 Sembcorp Salalah Power & Wat 0.22 2.36 433,491 Dana Gas 0.65 -1.52 19,851,398 Al-Baha Development & Invest 23.80 1.41 1,362,857 Salbookh Trading Co Kscp 61.00 0.00 30,865 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 1.01 -8.18 385,615 Saudi Research And Marketing 63.90 9.98 1,833,527 Aqar Real Estate Investments 71.00 0.00 1,000 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.16 -3.33 7,266,822 Aldrees Petroleum And Transp 25.40 1.32 240,064 Hayat Communications 84.00 -1.18 56,020 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.68 0.00 - Saudi Vitrified Clay Pipe Co 48.81 0.08 13,165 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.68 -1.45 56,231 Jarir Marketing Co 152.79 0.06 21,891 Soor Fuel Marketing Co Ksc 124.00 0.00 188,925 Renaissance Services Saog 0.20 0.00 - Alkhaleej Investment 1.30 0.00 - Arab National Bank 23.00 -0.04 244,301 Alargan International Real 170.00 0.00 4,166 Raysut Cement Co 0.90 0.00 - Aldar Properties Pjsc 2.33 0.00 12,608,716 Yanbu National Petrochemical 55.01 1.08 68,931 Burgan Co For Well Drilling 89.00 1.14 1,750 Port Service Corporation 0.21 0.00 - Al Wathba National Insurance 12.75 0.00 - Arabian Cement 33.85 -0.12 48,836 Kuwait Resorts Co Kscc 77.00 -1.28 49,201 Phoenix Power Co Saoc 0.12 1.74 47,972 Al Khazna Insurance Co 0.38 0.00 - Middle East Specialized Cabl 6.25 -0.64 103,449 Oula Fuel Marketing Co 121.00 -1.63 633,569 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 17.35 -0.46 135,063 Palms Agro Production Co 80.00 -20.00 20,000 Ooredoo 0.44 0.00 352,800 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 28.51 -0.70 145,678 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.50 0.00 - Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 18.98 -0.58 205,126 Mubarrad Transport Co 76.80 0.00 50,001 Oman United Insurance Co 0.34 0.00 - Al Ain Ahlia Ins. Co. 46.50 0.00 - Arabia Insurance Cooperative 15.41 -0.71 330,375 Al Mowasat Health Care Co 400.00 0.00 3,886 Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 5.20 0.00 - Saudi Chemical Company 38.50 -1.43 49,313 Shuaiba Industrial Co 295.00 0.00 50 Oman Telecommunications Co 1.15 1.78 123,300 Abu Dhabi Ship Building Co 2.37 0.00 23,000 Fawaz Abdulaziz Alhokair & C 44.91 -1.53 96,826 Hits Telecom Holding 44.40 2.07 3,015,553 Oman Refreshment Co 1.91 0.00 - Abu Dhabi Natl Co For Buildi 0.51 0.00 616,504 Bupa Arabia For Cooperative 124.00 0.06 64,502 First Takaful Insurance Co 47.50 -13.48 256,530 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 5.00 -2.72 5,000 Wafa Insurance 22.66 -0.40 149,500 Kuwaiti Syrian Holding Co 37.00 1.37 869,546 Oman Orix Leasing Co. 0.17 0.00 - Abu Dhabi National Insurance 3.05 0.00 - Jabal Omar Development Co 68.74 -0.36 27,623 National Cleaning Company 51.00 0.00 2,744 Oman Oil Marketing Company 1.66 0.00 - Abu Dhabi National Hotels 3.20 0.00 - Saudi Basic Industries Corp 100.20 0.24 1,959,325 Eyas For High & Technical Ed 830.00 0.00 5,560 Oman National Engineering An 0.16 0.00 - Abu Dhabi National Energy Co 0.51 2.00 2,310,449 Saudi Kayan Petrochemical Co 8.82 -0.11 4,309,922 United Real Estate Company 87.90 0.11 20 Oman Investment & Finance 0.16 0.00 - Abu Dhabi Islamic Bank 3.61 0.28 755,614 Etihad Atheeb Telecommunicat 8.10 0.75 278,297 Agility 847.00 0.00 205,295 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 96.23 -0.02 51,002 Kuwait & Middle East Fin Inv 28.80 2.86 5,100 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 17.19 1.00 276,415 Fujairah Cement Industries 81.00 0.00 5,300 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 17.20 -1.26 103,538 Livestock Transport & Tradng 234.00 6.36 1,000 Oman Flour Mills 0.85 0.00 - BAHRAIN Gulf General Cooperative Ins 16.52 -1.31 110,799 International Resorts Co 33.80 7.30 3,838,458 Oman Fisheries Co 0.13 -1.56 375,169 Basic Chemical Industries 20.34 0.64 39,431 National Industries Grp Hold 142.00 -0.70 3,290,197 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -1.56 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 16.38 76,085 66.00 195,639 Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance 0.71 Warba Insurance Co 13.97 Oman Education & Training In 0.16 0.00 - 31.02 318,132 88.90 1,152 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -0.77 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 153.80 2,702 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.00 First Dubai Real Estate Deve 2.55 Oman Chlorine 0.49 0.00 - 50.90 7,103 52.30 476,430 United Gulf Bank 0.00 0.00 - Maadaniyah -0.36 Al Arabi Group Holding Co 0.00 Oman Ceramic Company 0.42 0.00 - 22.04 162,652 78.00 20,100 Trafco Group Bsc 0.27 0.00 104,979 Yamama Cement Co -1.96 Kuwait Hotels Sak 0.00 Oman Cement Co 0.44 0.00 - 15.99 288,122 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co -2.06 Mobile Telecommunications Co 0.00 Oman Cables Industry 1.57 0.00 - 15.66 290,059 455.00 1,410,974 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -0.18 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 28.06 27,136 0.00 - Seef Properties 0.25 0.00 200,000 Alujain Corporation (Alco) -0.73 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.10 0.00 151,000 23.27 464,490 410.00 1 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -1.18 Al Mudon Intl Real Estate Co 1.53 Natl Aluminium Products 0.13 0.00 4,450 13.42 949,453 39.70 294,250 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -0.63 Kuwait Cement Co Ksc 0.00 National Securities 0.04 0.00 - 14.28 323,831 445.00 63,100 National Bank Of Bahrain Bsc 0.66 0.00 27,000 Qassim Cement/The 0.00 Sharjah Cement & Indus Devel -0.48 National Real Estate Develop 5.00 0.00 - 48.00 4,334 83.50 116,509 Nass Corp Bsc 0.13 0.00 13,000 Saudi Advanced Industries 0.97 Kuwait Portland Cement Co -0.21 National Pharmaceutical 0.11 0.00 - 12.50 402,184 968.00 413 Khaleeji Commercial Bank 0.11 0.00 300,000 Kingdom Holding Co -0.20 Educational Holding Group 1.48 National Mineral Water 0.05 0.00 - 10.18 9,742 342.00 82,604 Ithmaar Holding Bsc 0.14 -3.45 100,000 Saudi Arabian Amiantit Co -0.38 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 5.23 247,909 0.00 - Investcorp Bank -$Us 0.00 0.00 - Al Jouf Agriculture Developm 0.34 Asiya Capital Investments Co -2.20 National Gas Co 0.30 0.00 - 29.72 46,325 40.10 157,943 Inovest Co Bsc 0.44 0.00 9,654 Saudi Industrial Development 1.18 Kuwait Investment Co 1.71 National Finance Co 0.15 0.00 - 11.17 1,307,450 94.90 50,200 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank -1.63 National Detergent Co Saog 0.69 0.00 - 0.00 - 361.00 557,170 Gulf Hotel Group B.S.C 0.52 0.00 3,270 Riyad Bank -0.09 Kuwait Projects Co Holdings 0.00 National Biscuit Industries 3.75 0.00 - 10.74 107,655 375.00 107,250 Gfh Financial Group Bsc 0.58 0.00 10,000 The National Agriculture Dev -3.71 Al Madina For Finance And In -2.40 National Bank Of Oman Saog 0.21 2.40 159,621 27.53 480,937 48.80 4,310,299 Esterad Investment Co B.S.C. 0.00 0.00 - Halwani Bros Co -0.42 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.08 0.00 - 49.60 19,482 260.00 4,213 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -1.45 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.86 0.00 - 13.62 113,797 75.00 18,528 Bmmi Bsc 0.78 0.00 30,000 Eastern Province Cement Co 0.08 Intl Financial Advisors 3.80 Muscat Gases Company Saog 0.56 0.00 - 23.82 24,537 38.20 2,256,900 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc 1.28 Muscat Finance 0.12 0.00 - 0.00 - 47.60 2,537,373 Bbk Bsc 0.39 0.00 10,000 Filing & Packing Materials M -0.53 Al Mal In 1.10 Majan Glass Company 0.19 0.00 - 33.70 41,770 vestment Company 18.30 1,805,100 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -0.77 Majan College 0.49 0.00 - 10.81 - Bayan Investment Co Kscc 51.60 739,953 Banader Hotels Co 0.06 0.00 644,068 Tihama Advertising & Public 0.82 0.00 Hsbc Bank Oman 0.12 0.00 - 40.52 1,347,595 Egypt Kuwait Holding Co Sae 175.00 200,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.07 4.51 Hotels Management Co Interna 1.25 0.00 - 14.09 114,735 Coast Investment Development 44.00 1,167,801 Bahrain Telecom Co 0.22 -2.61 55,760 Astra Industrial Group 0.52 -1.75 Gulf Stone 0.12 0.00 - 15.56 55,333 Privatization Holding Compan 50.40 551,469 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co 0.22 0.00 Gulf Plastic Industries Co 0.00 0.00 - 13.82 446,685 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Taiba Holding Co -1.45 0.67 Gulf Mushroom Company 0.31 0.00 - 43.35 71,792 Injazzat Real State Company 90.50 9,000 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co -0.88 -0.35 Gulf Investments Services 0.08 -1.28 92,125 30.38 211,613 Kuwait Cable Vision Sak 28.40 52,360 Bahrain Islamic Bank 0.14 0.00 79,565 Saudi Real Estate Co -0.09 -11.90 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 21.39 46,861 Sanam Real Estate Co Kscc 37.00 4,444 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -1.71 0.00 Gulf International Chemicals 0.22 0.00 - 124.02 77,568 Ithmaar Holding Bsc 45.00 934,500 Bahrain Family Leisure Co 0.08 0.00 90,000 National Shipping Co Of/The -0.58 -1.44 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 32.82 452,050 Aviation Lease And Finance C 343.00 3,908 Bahrain Duty Free Complex 0.76 0.00 74,000 Methanol Chemicals Co 0.15 1.06 Global Fin Investment 0.16 0.00 - 6.52 313,588 Arzan Financial Group For Fi 38.00 107,928 Bahrain Commercial Facilitie 0.73 0.69 15,000 Ace Arabia Cooperative Insur -0.50 9.59 Galfar Engineering&Contract 0.07 -1.35 322,840 47.74 77,114 Ajwan Gulf Real Estate Co 64.00 480,399 Bahrain Cinema Co 1.35 0.00 9,402 Mobile Telecommunications Co 0.11 0.40 Galfar Engineering -Prefer 0.39 0.00 - 9.23 1,208,032 Kuwait Business Town Real Es 50.50 714,925 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -1.50 0.00 Financial Services Co. 0.11 0.00 - 21.04 177,031 Future Kid Entertainment And 106.00 42,239 Arab Insurance Group(Bsc)-$ 0.46 0.00 11,000 Axa Cooperative Insurance -0.44 2.06 Financial Corp/The 0.10 0.00 - 22.57 107,528 Specialities Group Holding C 94.00 202,884 Arab Banking Corp Bsc-$Us 0.30 0.00 24,513 Alsorayai Group -0.99 3.64 Dhofar University 0.00 0.00 - 8.01 299,080 Abyaar Real Eastate Developm 25.60 20,622,753 Aluminium Bahrain Bsc 0.51 0.00 60,000 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.42 0.00 95,538 Bank Albilad -0.56 0.00 Dhofar Poultry 0.18 0.00 - 19.46 364,647 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.10 2.06 160,000 Al-Hassan G.I. Shaker Co -1.88 0.00 Dhofar Intl Development 0.31 0.00 - 12.56 647,308 Kgl Logistics Company Kscc 0.00 - Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -1.44 0.53 Dhofar Insurance 0.20 0.00 - 29.36 89,488 Combined Group Contracting 565.00 12,420 Ahli United Bank B.S.C 0.73 1.39 795,085 Abdullah Al Othaim Markets 117.24 -0.48 14,871 Zima Holding Co Ksc 52.00 0.00 244,910 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 9.44 0.85 145,588 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Thursday, July 27, 2017 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 21,706.96 +93.53 Apple Inc 153.59 0.56 7,603,362 S&P 500 Index 2,479.56 +2.43 Microsoft Corp 74.12 -0.09 6,999,718 Nasdaq Composite Index 6,421.91 +9.74 Exxon Mobil Corp 80.79 0.65 3,968,999 S&P/Tsx Composite Index 15,227.82 +25.45 Johnson & Johnson 130.94 -0.71 1,600,877 Mexico Bolsa Index 51,648.04 -65.34 General Electric Co 25.59 0.59 21,611,532 Brazil Bovespa Stock Idx 65,274.20 -393.43 Jpmorgan Chase & Co 92.42 -0.41 5,546,002 Ftse 100 Index 7,452.32 +17.50 Procter & Gamble Co/The 89.13 -0.01 2,178,936 Cac 40 Index 5,190.17 +29.09 Wal-Mart Stores Inc 78.61 0.11 2,525,472 Dax Index 12,305.11 +40.80 Verizon Communications Inc 44.47 1.12 9,198,166 Ibex 35 Tr 10,575.40 +52.00 Pfizer Inc 32.90 -0.60 6,389,095 Nikkei 225 20,050.16 +94.96 Visa Inc-Class A Shares 100.07 0.08 3,033,965 Japan Topix 1,620.88 +3.81 Chevron Corp 105.81 1.36 2,522,384 Hang Seng Index 26,941.02 +88.97 Coca-Cola Co/The 45.39 0.33 6,061,867 All Ordinaries Indx 5,823.30 +48.03 Intel Corp 34.66 -0.03 6,491,878 Nzx All Index 1,408.32 -1.17 Merck & Co. Inc. 61.97 -0.63 3,521,112 Bse Sensex 30 Index 32,382.46 +154.19 Cisco Systems Inc 31.82 -0.94 6,286,918 Nse S&P Cnx Nifty Index 10,020.65 +56.10 Home Depot Inc 146.68 -0.20 1,183,867 Straits Times Index 3,336.72 +8.89 Intl Business Machines Corp 144.57 -1.11 1,805,325 Karachi All Share Index 32,227.45 -7.72 Walt Disney Co/The 106.73 0.29 2,005,064 Jakarta Composite Index 5,800.21 -13.33 Unitedhealth Group Inc 190.67 0.14 1,056,390 3M Co 200.01 0.31 1,333,941 Mcdonald’s Corp 157.24 -1.15 1,764,414 Nike Inc -Cl B 58.67 -1.21 2,091,337 TOKYO United Technologies Corp 119.97 -0.37 1,501,718 Boeing Co/The 230.10 8.30 8,984,638 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 223.08 0.68 1,246,957 Rakuten Inc 1,345.00 -0.30 5,790,200 American Express Co 85.48 0.08 1,168,959 Kyocera Corp 6,429.00 1.85 1,399,400 Du Pont (E.I.) De Nemours 84.67 -0.96 692,514 Nissan Motor Co Ltd 1,141.50 1.02 12,456,600 Caterpillar Inc 113.23 -1.14 3,253,174 Hitachi Ltd 725.80 -0.41 18,293,000 Travelers Cos Inc/The 126.50 -0.75 459,746 Takeda Pharmaceutical Co Ltd 5,640.00 -0.14 1,465,900 Jfe Holdings Inc 2,102.00 1.50 3,142,100 Ana Holdings Inc 386.40 -0.31 9,397,000 FTSE 100 Mitsubishi Electric Corp 1,699.50 0.74 5,125,800 Sumitomo Mitsui Financial Gr 4,234.00 1.15 5,625,800 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,081.00 0.49 3,564,600 Fast Retailing Co Ltd 33,440.00 1.06 531,900 Wpp Plc 1,549.00 -0.77 5,901,094 Ms&Ad Insurance Group Holdin 3,899.00 0.39 1,073,600 Worldpay Group Plc 380.00 0.32 8,752,576 Kubota Corp 1,942.50 1.94 4,325,700 Wolseley Plc 4,500.00 0.33 528,089 Seven & I Holdings Co Ltd 4,437.00 0.27 1,806,800 Wm Morrison Supermarkets 243.60 1.00 8,127,857 Inpex Corp 1,077.50 1.17 3,532,700 Whitbread Plc 3,903.00 0.98 299,827 The Euronext logo is seen on the exterior of the Paris Stock Exchange. The CAC 40 gained 0.6% at 5,190.17 points yesterday. Resona Holdings Inc 572.60 0.65 9,505,500 Vodafone Group Plc 219.35 -0.32 62,516,226 Asahi Kasei Corp 1,246.00 -1.54 4,318,000 United Utilities Group Plc 884.50 1.26 2,564,257 Kirin Holdings Co Ltd 2,433.00 -1.02 2,965,700 Unilever Plc 4,356.50 0.41 2,626,937 Marubeni Corp 736.40 0.96 3,711,800 Tui Ag-Di 1,186.00 0.42 783,330 Mitsubishi Ufj Financial Gro 711.60 0.98 43,420,200 Travis Perkins Plc 1,488.00 2.13 780,798 Mitsubishi Chemical Holdings 964.00 -1.05 6,154,000 Tesco Plc 173.80 -0.11 15,440,248 Fanuc Corp 23,125.00 2.39 1,134,700 Taylor Wimpey Plc 185.90 1.64 14,213,843 Daito Trust Construct Co Ltd 18,240.00 -0.63 250,900 Standard Life Plc 430.00 -0.23 4,485,301 European stock markets Otsuka Holdings Co Ltd 4,786.00 0.82 1,609,900 Standard Chartered Plc 834.40 -0.81 6,942,090 Oriental Land Co Ltd 7,816.00 2.32 1,411,100 St James’s Place Plc 1,220.00 1.33 1,484,563 Sekisui House Ltd 1,954.50 1.19 5,512,300 Sse Plc 1,460.00 0.21 6,023,077 Secom Co Ltd 8,308.00 0.39 412,900 Smith & Nephew Plc 1,301.00 0.54 2,682,245 Tokio Marine Holdings Inc 4,681.00 0.11 1,520,500 Sky Plc 966.50 0.26 6,615,561 Aeon Co Ltd 1,673.00 -0.09 1,751,800 buoy before Fed update Shire Plc 4,309.00 1.64 3,384,729 Mitsui & Co Ltd 1,603.50 1.42 4,021,200 Severn Trent Plc 2,185.00 0.92 779,667 Kao Corp 6,773.00 -1.14 1,674,900 Schroders Plc 3,383.00 0.77 335,207 The London benchmark FTSE 100 any signals about another possible rise Dai-Ichi Life Holdings Inc 1,939.50 0.65 4,993,300 AFP Sainsbury (J) Plc 248.50 1.39 7,576,731 Mazda Motor Corp 1,672.00 5.29 15,624,900 index was up 0.2% at 7,452.32 points in the benchmark lending rate in 2017, Sage Group Plc/The 692.00 -1.21 15,675,454 London Komatsu Ltd 2,979.00 2.65 5,718,300 at the close, as traders digested a slight and on when the Fed will begin wind- Abi Sab Group Holding Ltd 0.00 0.00 - West Japan Railway Co 7,813.00 -0.64 477,900 improvement to British quarterly ing down its multi-trillion-dollar in- Rsa Insurance Group Plc 646.50 0.47 5,954,294 Murata Manufacturing Co Ltd 17,290.00 0.00 1,130,900 Royal Mail Plc 395.90 1.05 3,209,243 orld stock markets climbed growth and mining stocks had another vestment holdings — something that Kansai Electric Power Co Inc 1,464.50 -1.15 2,122,800 Royal Dutch Shell Plc-B Shs 2,097.00 0.17 5,462,888 yesterday, with all eyes on good day as copper surged. could have a similar eff ect as a rate Denso Corp 4,868.00 1.48 1,741,600 Royal Dutch Shell Plc-A Shs 2,086.00 0.31 7,006,381 the Federal Reserve’s US in- In the eurozone, the Paris CAC 40 hike. Sompo Holdings Inc 4,378.00 0.76 941,900 W Royal Bank Of Scotland Group 252.30 0.44 8,313,273 Daiwa House Industry Co Ltd 3,837.00 0.29 891,200 terest rate decision as corporate Amer- gained 0.6% at 5,190.17 points. Earlier yesterday, Asian stock mar- Rolls-Royce Holdings Plc 921.00 -0.43 4,375,440 Jxtg Holdings Inc 498.50 1.40 13,264,700 ica pushed Wall Street to new record Frankfurt’s DAX 30 won 0.3% at kets also mostly rose, led by energy gi- Rio Tinto Plc 3,460.00 -0.43 4,851,563 Nippon Steel & Sumitomo Meta 2,657.50 1.26 2,836,600 highs. 12,305.11 points, but Daimler shares ants on rising commodity prices. Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,215.00 -0.87 1,829,500 Relx Plc 1,632.00 -0.06 2,790,448 New York trading was off to a y-fl dropped as a strong fi rst-half per- Improving demand and a weakening Nippon Telegraph & Telephone 5,324.00 -0.06 2,143,000 Reckitt Benckiser Group Plc 7,544.00 0.15 1,495,835 ing start as Boeing shares surged on formance by the company was shaded dollar has helped fuel a jump in copper Ajinomoto Co Inc 2,372.00 -0.59 1,182,600 Randgold Resources Ltd 6,915.00 0.44 518,028 the back of a strong profi t forecast and by scandals around diesel emissions prices to fi ve-month peaks. Mitsui Fudosan Co Ltd 2,529.00 0.72 1,833,600 Prudential Plc 1,828.50 1.02 7,167,072 AT&T jumped thanks to high subscrib- and a suspected cartel. Oil, already lifted by hopes for out- Ono Pharmaceutical Co Ltd 2,448.00 -0.20 1,344,600 Provident Financial Plc 2,143.00 -0.92 915,143 Daikin Industries Ltd 11,890.00 -0.50 854,700 er numbers, adding to a plethora of The EURO STOXX 50 was 0.5% up at put cuts, got a further fi llip from the US Persimmon Plc 2,473.00 1.31 1,292,132 Bank Of Yokohama Ltd/The 0.00 0.00 - well-received US corporate announce- 3,491.19 points. Department of Energy reporting much Pearson Plc 643.00 0.70 2,821,472 Toray Industries Inc 982.70 -0.63 4,904,400 ments. The euro slipped back after reaching lower-than-expected US stockpiles Paddy Power Betfair Plc 7,410.00 -2.95 239,273 Astellas Pharma Inc 1,344.00 0.45 4,737,600 Old Mutual Plc 197.30 1.65 8,611,510 “US stock markets appear to be rid- a near two-year high versus the dollar for last week, and ended the European Bridgestone Corp 4,728.00 -0.08 2,635,600 Next Plc 3,780.00 1.23 361,325 ing a renewed wave of exuberance,” on Tuesday. day more than 1% up. Sony Corp 4,524.00 1.28 4,808,100 National Grid Plc 944.70 0.75 10,052,375 said Michael Hewson, chief market The Federal Reserve was widely ex- Both crude contracts had jumped Hoya Corp 5,780.00 0.31 902,500 Mondi Plc 2,051.00 1.64 1,029,925 analyst at CMC Markets UK. pected to leave its key interest rate un- 3% on Tuesday with traders cheered Sumitomo Mitsui Trust Holdin 3,967.00 0.84 1,234,100 Merlin Entertainment 468.90 0.84 2,222,307 Japan Tobacco Inc 3,793.00 -0.37 2,924,700 The Dow set a new intraday high at touched when it reports on its policy by news that global crude producers, Mediclinic International Plc 747.00 1.22 1,159,787 Osaka Gas Co Ltd 439.10 0.41 5,089,000 21,742.70 in morning trade, and the meeting later yesterday, having raised meeting in Russia on Monday, called Marks & Spencer Group Plc 323.20 0.65 6,497,326 Sumitomo Electric Industries 1,751.50 0.95 2,679,500 Nasdaq and S&P 500 indices also hit the rate twice this year. for stricter adherence to an agreement London Stock Exchange Group 3,793.00 1.09 458,328 Daiwa Securities Group Inc 668.60 0.74 5,444,000 Lloyds Banking Group Plc 69.08 0.12 136,794,469 all-time peaks. Markets instead will be watching for to reduce output. Softbank Group Corp 9,339.00 0.12 4,790,400 Legal & General Group Plc 265.20 0.84 12,046,464 Mizuho Financial Group Inc 198.70 1.02 83,229,100 Land Securities Group Plc 1,001.00 0.00 1,516,361 Nomura Holdings Inc 663.90 1.50 19,483,800 Kingfisher Plc 301.10 1.01 8,005,726 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,450.00 -0.14 1,164,000 Johnson Matthey Plc 2,861.00 -0.31 1,069,041 Subaru Corp 4,045.00 1.23 2,512,900 Itv Plc 180.20 2.44 32,448,526 Ntt Docomo Inc 2,576.00 -0.35 5,967,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 278.20 0.98 2,583,851 Sumitomo Realty & Developmen 3,353.00 1.24 964,000 Intl Consolidated Airline-Di 591.50 1.02 6,239,011 Aluminum Corp Of China Ltd-H 4.90 2.94 45,023,770 Hong Kong & China Gas 14.74 -0.67 7,295,796 Sumitomo Metal Mining Co Ltd 1,610.50 2.38 6,774,000 Intertek Group Plc 4,298.00 1.06 325,317 Bank Of East Asia Ltd 33.40 -0.30 911,377 Hong Kong Exchanges & Clear 218.80 0.46 5,593,355 Orix Corp 1,749.50 -0.43 5,176,700 Intercontinental Hotels Grou 4,357.00 0.65 472,422 Bank Of China Ltd-H 3.82 1.60 441,370,540 Hsbc Holdings Plc 76.55 -0.20 37,006,944 Asahi Group Holdings Ltd 4,455.00 0.97 2,086,400 Inmarsat Plc 767.50 -1.60 1,299,463 Bank Of Communications Co-H 5.77 -0.17 24,184,887 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 50,530.00 -1.81 317,100 Informa Plc 700.50 0.94 2,409,023 Belle International Holdings 6.24 0.00 - Ind & Comm Bk Of China-H 5.47 1.30 350,091,237 Nidec Corp 11,625.00 -1.44 1,297,400 Imperial Brands Plc 3,429.00 -0.35 2,091,024 Boc Hong Kong Holdings Ltd 37.90 0.93 7,903,354 Li & Fung Ltd 2.86 1.06 23,228,451 Isuzu Motors Ltd 1,431.00 1.13 2,551,400 Hsbc Holdings Plc 753.70 -0.34 25,260,698 Cathay Pacific Airways 12.04 -0.66 5,336,000 Mtr Corp 44.50 0.23 4,410,052 Unicharm Corp 2,816.00 -2.14 1,701,200 Hargreaves Lansdown Plc 1,357.00 0.59 830,273 Ck Hutchison Holdings Ltd 101.50 0.00 4,437,605 New World Development 10.26 0.00 15,481,493 Shin-Etsu Chemical Co Ltd 10,320.00 -1.67 2,327,800 Hammerson Plc 581.50 -0.68 3,055,816 China Coal Energy Co-H 3.93 0.51 18,183,125 Petrochina Co Ltd-H 5.05 3.06 251,284,181 Smc Corp 35,440.00 -0.37 182,000 Glencore Plc 329.65 -0.30 49,017,244 China Construction Bank-H 6.52 1.40 427,101,231 Ping An Insurance Group Co-H 57.20 -0.09 38,672,586 Mitsubishi Corp 2,385.00 0.55 2,987,200 Glaxosmithkline Plc 1,545.50 -2.55 13,591,110 China Life Insurance Co-H 25.00 -0.20 38,776,590 Power Assets Holdings Ltd 76.90 -0.06 4,206,318 Nintendo Co Ltd 35,770.00 1.33 3,288,200 Gkn Plc 330.00 1.01 14,098,238 China Merchants Port Holding 24.20 0.41 4,765,296 Sino Land Co 12.70 -0.16 2,504,382 Eisai Co Ltd 5,985.00 0.76 606,500 Fresnillo Plc 1,537.00 0.59 1,358,355 China Mobile Ltd 83.65 -0.18 11,069,534 Sun Hung Kai Properties 117.80 0.08 3,313,951 Sumitomo Corp 1,488.00 0.85 1,895,000 Experian Plc 1,519.00 -0.20 3,661,603 China Overseas Land & Invest 26.05 1.76 36,418,924 Swire Pacific Ltd - Cl A 78.15 -0.95 964,957 Canon Inc 3,813.00 0.13 2,820,700 Easyjet Plc 1,279.00 0.63 2,019,657 China Petroleum & Chemical-H 6.01 1.69 115,808,775 Tencent Holdings Ltd 301.00 -0.20 15,441,362 Japan Airlines Co Ltd 3,531.00 -0.87 1,551,200 Dixons Carphone Plc 266.60 0.41 3,588,394 China Resources Beer Holdin 19.46 0.00 2,327,689 Wharf Holdings Ltd 65.75 -0.75 2,204,404 Direct Line Insurance Group 371.00 -0.03 2,397,620 China Resources Land Ltd 24.35 1.67 7,884,660 China Resources Power Holdin 15.26 2.28 7,312,814 Diageo Plc 2,272.50 1.02 3,737,564 SENSEX Dcc Plc 6,820.00 0.29 301,228 China Shenhua Energy Co-H 18.96 -2.17 21,160,711 GCC INDICES Crh Plc 2,728.00 0.52 1,477,280 China Unicom Hong Kong Ltd 11.40 -1.04 29,628,087 Compass Group Plc 1,627.00 1.75 4,591,823 Company Name Lt Price % Chg Volume Citic Ltd 11.92 0.68 5,836,409 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,250.00 1.67 619,783 Clp Holdings Ltd 83.20 0.24 1,642,059 Doha Securities Market Zee Entertainment Enterprise 530.65 -1.49 2,133,931 9,583.78 -10.73 Centrica Plc 202.10 0.00 16,017,063 Cnooc Ltd 8.77 2.33 130,289,646 Saudi Tadawul Yes Bank Ltd 1,711.95 5.82 9,362,986 7,200.43 -27.53 Carnival Plc 5,155.00 -0.29 318,744 Cosco Shipping Ports Ltd 9.58 -0.21 2,540,714 Kuwait Stocks Exchange Wipro Ltd 289.35 -0.07 3,342,455 6,845.76 +13.23 Capita Plc 659.50 0.61 1,264,988 Esprit Holdings Ltd 4.02 0.00 3,114,657 Bahrain Stock Exchage Vedanta Ltd 280.95 2.44 19,925,795 1,337.68 +3.02 Burberry Group Plc 1,719.00 1.24 2,304,963 Fih Mobile Ltd 2.57 -3.75 13,001,000 Oman Stock Market Ultratech Cement Ltd 4,074.40 -0.76 259,990 5,027.35 +29.58 Bunzl Plc 2,280.00 0.71 567,115 Hang Lung Properties Ltd 19.34 0.31 1,392,462 Abudhabi Stock Market Tech Mahindra Ltd 389.35 -0.45 1,528,806 4,524.15 -17.79 Bt Group Plc 310.65 1.32 15,400,089 Hang Seng Bank Ltd 166.80 0.66 736,513 Dubai Financial Market Tata Steel Ltd 565.75 2.31 7,480,977 3,608.47 +13.85 British Land Co Plc 609.50 0.41 3,139,224 Henderson Land Development 44.90 -0.22 1,612,026 Tata Power Co Ltd 82.55 -0.54 9,708,630 British American Tobacco Plc 5,323.00 0.76 10,612,360 Tata Motors Ltd 457.30 0.26 4,410,708 Bp Plc 445.15 -0.29 22,508,378 Tata Consultancy Svcs Ltd 2,556.00 -0.60 767,538 Bhp Billiton Plc 1,353.00 0.71 12,202,745 Sun Pharmaceutical Indus 579.50 2.40 2,121,132 Berkeley Group Holdings/The 3,456.00 1.38 415,333 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 295.80 -0.10 13,168,867 Barratt Developments Plc 615.00 1.91 4,460,582 Reliance Industries Ltd 1,622.75 1.29 5,762,496 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 211.20 0.72 34,818,852 Punjab National Bank 158.90 -2.49 9,472,036 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 602.50 -0.25 7,127,588 Power Grid Corp Of India Ltd 217.30 0.14 3,031,099 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 848.00 0.18 1,336,994 Oil & Natural Gas Corp Ltd 164.00 0.43 9,492,346 this data.” Aviva Plc 535.50 0.56 10,066,622 Ntpc Ltd 166.35 1.49 4,937,809 Astrazeneca Plc 5,113.00 0.51 2,211,986 Maruti Suzuki India Ltd 7,565.25 0.80 396,665 Associated British Foods Plc 2,942.00 0.72 485,079 Mahindra & Mahindra Ltd 1,413.50 1.71 1,342,260 Ashtead Group Plc 1,665.00 0.30 1,789,859 Lupin Ltd 1,123.60 0.28 1,172,599 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,180.25 0.80 1,259,334 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 944.00 -0.74 4,597,423 DINAR DINAR Kotak Mahindra Bank Ltd 986.55 -0.14 1,847,338 Anglo American Plc 1,195.00 2.01 10,252,132 Itc Ltd 293.65 0.77 9,655,450 Admiral Group Plc 2,019.00 0.95 508,749 Infosys Ltd 994.05 0.02 4,635,109 3I Group Plc 935.00 0.11 1,680,239 Indusind Bank Ltd 1,580.20 2.44 1,199,206 #N/A 0.00 0.00 - Idea Cellular Ltd 94.55 -3.22 18,418,307 Icici Bank Ltd 310.35 2.04 29,667,336 TOKYO Housing Development Finance 1,633.45 0.09 5,571,809 Hindustan Unilever Ltd 1,164.55 1.30 1,605,656 Hindalco Industries Ltd 221.55 0.61 9,510,095 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,717.45 0.23 383,037 East Japan Railway Co 10,405.00 -0.14 720,600 Hdfc Bank Limited 1,747.55 0.45 1,094,665 Itochu Corp 1,718.50 0.85 3,762,300 Hcl Technologies Ltd 892.70 -0.26 1,537,009 Fujifilm Holdings Corp 4,092.00 -0.44 1,307,000 Grasim Industries Ltd 1,069.75 -0.54 869,123 Yamato Holdings Co Ltd 2,205.50 -0.29 1,908,700 Gail India Ltd 375.65 0.62 3,444,156 Chubu Electric Power Co Inc 1,446.00 -0.41 1,342,100 Dr. Reddy’s Laboratories 2,707.35 0.56 188,791 Mitsubishi Estate Co Ltd 2,003.00 0.23 2,392,700 Coal India Ltd 260.65 0.91 2,378,987 Mitsubishi Heavy Industries 458.60 0.48 12,946,000 Cipla Ltd 575.45 1.96 966,026 Toshiba Corp 285.40 6.29 80,915,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 3,828.00 -0.60 1,214,600 Bosch Ltd 24,280.25 0.14 8,511 Shionogi & Co Ltd 6,058.00 0.75 1,951,200 Bharti Airtel Ltd 426.25 -0.36 5,625,552 Tokyo Gas Co Ltd 573.50 0.40 4,319,000 Bharat Petroleum Corp Ltd 471.40 0.96 3,293,798 Tokyo Electron Ltd 16,475.00 0.12 1,167,900 Bharat Heavy Electricals 143.90 -1.20 3,403,257 Panasonic Corp 1,500.00 0.37 4,395,800 Bank Of Baroda 163.35 -1.00 9,040,491 Fujitsu Ltd 833.90 -1.35 12,645,000 Bajaj Auto Ltd 2,841.35 -0.22 293,571 Central Japan Railway Co 17,565.00 -0.11 301,100 Axis Bank Ltd 528.85 -2.95 12,860,265 T&D Holdings Inc 1,648.50 1.23 2,671,500 Asian Paints Ltd 1,134.00 -1.40 2,243,194 Toyota Motor Corp 6,186.00 1.29 6,953,100 Ambuja Cements Ltd 264.90 -1.08 1,787,818 Kddi Corp 2,881.50 0.52 4,630,800 Adani Ports And Special Econ 393.05 0.59 3,345,439 Nitto Denko Corp 9,880.00 0.48 686,100 Acc Ltd 1,706.35 -1.14 404,170 Gulf Times 12 Thursday, July 27, 2017 BUSINESS

China to convert all giant state firms into joint-stock firms by end-2017

Reuters will be allowed to invest in the state gi- and part of those steps have involved the state assets during restructuring, the tor said China’s centrally administered as either joint-stock companies or limited Beijing ants or whether they will list shares. restructuring of state firms. cabinet said yesterday. SOEs will be divided into three types – liability firms. Through reforms, the central govern- Earlier this year, People’s Bank of The party’s leadership will also help industrial groups, investment firms and The subsidiaries of the 69 enterprises ment hopes to revive China’s bloated China Governor Zhou Xiaochuan said protect employees’ legal rights and operating companies. hold 5.66tn yuan of assets, Xinhua said. All big Chinese companies owned by the and debt-ridden state-owned sector and banks will withdraw support for finan- ensure the stability of corporate reforms, While details were sparse, the move The SOE reforms come as the Com- central government will be registered as create “bigger and stronger” conglomer- cially unviable firms, repeating pledges the cabinet said. will similarly change the way SOEs are munist Party prepares for a once-in-five- limited liability companies or joint-stock ates capable of competing on the global by other off icials to drive “zombie” firms One focus will also be on the organised. years congress in the fall. firms by the end of the year, as Beijing stage. out of the market. formation of the board of directors at The central government now owns Ahead of the congress, one of the gov- moves to make its state-owned giants Part of the reforms will involve shut- China is also pushing mixed owner- state-owned companies, the cabinet and administers 101 enterprises in sec- ernment’s priorities has been to ensure more nimble, eff icient and modern. ting the most uncompetitive firms. ship to allow private capital to invest in said, as part of eff orts to bring it in line tors ranging from nuclear technology to stability in the country’s financial system. About 90% of firms owned by the cen- The ownership structure of some firms while retaining the government’s with present day corporate governance medicine. The state asset regulator has Further opening China’s economy and tral government and local governments SOEs will also be modernised. presence in the companies. practices. told the enterprises and their subsidiar- markets is another focus. have already completed the process, One of the biggest problems facing The state-owned asset regulator has The board will have a say in major ies to hand in their restructuring plans by China’s securities regulator pledged which has helped improve their govern- China, particularly the lumbering state- said “erroneous” notions like “privatisa- corporate decisions, hiring and salary end-September, the off icial Xinhua news yesterday to expand access to capital ance structures and management, the owned giants, is a spike in debt since the tion” and “de-nationalisation” should distribution. Salary corridors linked to agency said on Wednesday. markets for all types of investors, while cabinet said in a statement on its website 2008 global financial crisis. be avoided. Eff orts will be made to corporate profits and productivity will Xinhua reported that 69 of the enter- encouraging more long-term institution- yesterday. Authorities have stepped up eff orts strengthen the party’s leadership at big also be set up, according to the cabinet. prises, with assets totalling 7.97tn yuan al participation in the financial domain. It did not say whether private capital to contain debt risks over the past year, state firms and to prevent the loss of Last month, the state asset regula- ($1.2tn), have not registered themselves

SoftBank Petronas scraps $29bn LNG buys stake in IRobot

Bloomberg project in western Canda New York

Reuters oftBank Group Corp has Kuala Lumpur taken a stake in Roomba Svacuum-cleaner maker IRobot Corp, people familiar alaysian oil company Petronas with the matter said, as the Japa- scrapped a proposed C$36bn nese company builds its holdings M($29bn) liquefi ed natural gas in robotics fi rms. (LNG) project in western Canada due to SoftBank has built a less than weak prices, in a blow to both its global 5% stake in IRobot, below the ambitions and Canada’s hopes of be- amount that would require a coming a major LNG player. regulatory disclosure in the US, Pacifi c NorthWest LNG in Brit- the people said, asking not to be ish Columbia was meant to produce 12 identifi ed because the purchase megatonnes per year and spur further was private. The Bedford, Mas- development of Canada’s largest shale sachusetts-based technology play, but industry observers said the company has a market value of move was widely expected given years $2.4bn. of delay. Shares in IRobot rose 22% in “It is a good decision not to invest late trading in New York. Repre- in this project which is expensive and sentatives for SoftBank and IRo- risky,” said Subbu Bettadapura, senior bot declined to comment. director, Asia Pacifi c, Frost and Sullivan. SoftBank, which has more “Only question is why they took so long than $93bn in commitments so to come to this decision.” far for its technology-focused Analysts had been sceptical about the Vision Fund, has been snap- project’s prospects given current low ping up robotics fi rms this year. gas prices and constraints facing state- In June, SoftBank agreed to buy run Petronas, which has been cutting Boston Dynamics from Alpha- costs to deal with lower profi ts and cash bet Inc for an undisclosed sum. fl ow. Earlier this month, the Vision The decision is the latest setback Fund led a $114mn investment for Canada’s energy industry, already in San Diego-based artifi cial-in- bruised by international oil fi rms selling telligence fi rm Brain Corp, which off around $23bn in Canadian energy develops self-driving technology assets this year alone. for robots. “We have a window of opportunity It’s unclear whether the IRo- to develop BC’s LNG industry, but the bot investment will be held by next several years will be critical,” said SoftBank or the Vision Fund. Gillian Robinson, spokeswoman for the IRobot was founded about BC LNG Alliance. “We risk losing thou- 27 years ago by Massachusetts sands of jobs and billions of dollars in Institute of Technology robot- benefi ts if BC does not have diversifi ed ics engineers who pioneered the access to markets.” market for the self-propelled Pacifi c NorthWest LNG received ap- devices that vacuum and wash proval from the Canadian government fl oors. last year, but Petronas delayed its fi nal Taxis refuel at a Petronas petrol station outside Kuala Lumpur. Petronas had planned to produce its own gas to supply Pacific NorthWest LNG, rather than buying it from Last year the company sold investment decision on what would other producers, but no LNG demand means firms like Painted Pony Petroleum and Seven Generations Energy will continue to see low gas prices, analysts said. its robotic mine-detection and have been its biggest foreign invest- bomb-disposal business to focus ment. ment. Japan Petroleum Exploration Co Of more than a dozen projects pro- New Democratic Party, which formally Taib said. However, the company also on its consumer products, which The C$36bn price tag included (Japex) said it would take a loss of about posed for British Columbia, only the took power this month, is backed by the appears to have shifted its focus to the accounted for 99% of 2016 around C$11bn for the export terminal, C$102mn ($82mn) due to the scrapping C$1.6bn privately held Woodfi bre environmentalist Green Party. $27bn Refi nery and Petrochemical Inte- revenue. C$6.5bn in pipelines, the C$5.5bn Pet- of the project. project has so far been given the green Its rise has fuelled uncertainty about grated Development (RAPID) in south- The Vision Fund, which is ronas paid for Progress Energy and its Petronas had planned to produce its light by its developers. Last July Royal energy development in the province. ern Malaysia, that got a $7bn invest- targeting $100bn in total com- natural gas assets and around C$2bn a own gas to supply Pacifi c NorthWest Dutch Shell and partners pushed back a A spokesman for Canada’s Natural ment boost from Saudi oil giant Aramco mitments, is getting contribu- year expected to be spent on producing LNG, rather than buying it from other fi nal investment decision on their pro- Resources Minister Jim Carr, said Pet- in February. tions from Saudi Arabia’s Public natural gas. producers, but no LNG demand means posed LNG Canada project, citing glo- ronas’ move was a business decision. With Malaysian Prime Minister Najib Investment Fund, Apple Inc and TransCanada Corp, which was con- fi rms like Painted Pony Petroleum and bal industry challenges. Pacifi c NorthWest LNG board chair- Razak expected to call elections in com- other large, institutional backers tracted to build the pipeline connecting Seven Generations Energy will continue Michelle Mungall, British Columbia’s man Anuar Taib said in a statement that ing months, the state fi rm may also be and tech companies. gas wells to the LNG terminal, said it to see low gas prices, analysts said. energy minister, said she will be call- Petronas and partners would continue more inclined to push ahead domestic IRobot reported second quar- will be reimbursed for costs associated “The demise of the LNG industry in ing other LNG companies to reassure to develop natural gas assets in Canada. projects, said Bettadapura. “They would ter fi nancial results after the with the project. Western Canada means that Western them her government is ready to work “We are disappointed that the ex- want to make sure the economy grows close of trading in New York on It had spent C$500mn as of April, Canadian gas will largely remain cap- with them, but BC Green Party leader tremely challenging environment here and they have a good report card Tuesday. Revenue rose 23% to spokesman Shawn Howard said. tive to the oversupplied North American Andrew Weaver released a statement brought about by the prolonged de- before the elections. Petronas would $183.1mn, exceeding analyst Petronas had no immediate comment market,” BMO Capital Markets analyst saying the future does not lie in “chas- pressed prices and shifts in the energy not want to squander away its capital,” estimates, while net income when asked about TransCanada’s state- Randy Ollenberger said in a note. ing the fossil fuel economy.” The ruling industry have led us to this decision,” he said. climbed to $7.9mn. Snapdeal board gives nod to Flipkart’s bid, but obstacles remain

Reuters compound annual growth rate of over 50% The two initial sources also said Indian Mumbai in the last five years in India and the pace lender Axis Bank is the frontrunner in the of growth is expected to continue, with e- race to acquire Snapdeal’s digital pay- commerce sales topping $35bn by 2020. ments unit FreeCharge and that it has bid The board of Indian e-commerce firm The rapid growth has been accompa- roughly $60mn for the asset. Snapdeal has agreed to a deal with big- nied by severe competition and a fierce Axis did not immediately respond to a ger rival Flipkart for up to $950mn, two war for supremacy between Flipkart and request for comment. sources said yesterday, bringing the two a US online retail giant Amazon, which The sources said Snapdeal’s founders step closer to forming a combine to chal- has committed to investing $5bn in the Kunal Bahl and Rohit Bansal still have res- lenge Amazon.com’s domestic growth. country. ervations about an acquisition by Flipkart The board of Jasper Infotech, which The acquisition of Snapdeal means one however, and are mulling an alternate path. runs Snapdeal, approved Flipkart’s bid of less rival for Flipkart, said Harminder Sahni Bahl and Bansal want to use the money $900mn-$950mn last week, the sources the founder of Wazir Advisors, a boutique from the sale of Snapdeal’s logistics arm who were familiar with the matter said, consultancy firm. Vulcan Express and FreeCharge to run a asking not to be named as the talks are “Flipkart may have a plan to run Snap- downsized marketplace, they said. private. deal as a diff erently positioned business One of the sources said the two found- Two other sources said, however, that just like they run Myntra and Jabong,” he ers were hoping for the backing of some obstacles still remain and that the deal will said. early stage investors in Snapdeal and need approval from smaller shareholders Myntra and Jabong are Flipkart’s fash- hoped to take the proposal to Jasper’s of Snapdeal before it gets finalised. ion portals. Flipkart has bid for Snapdeal’s board. The shares-swap deal would help marketplace business and its e-commerce Both sources said it was unlikely the SoftBank Group, Snapdeal’s biggest inves- solutions unit Unicommerce. board would approve this, however, as tor, gain a stake in Flipkart, the leading Snapdeal declined to comment, while Snapdeal’s largest shareholder is keen to homegrown player, at a time when Indian Flipkart was not immediately available for forge a deal with Flipkart. e-commerce is booming. comment. A Snapdeal spokeswoman was not im- Helped by a spurt in availability of cheap The Jasper board also considered a mediately reachable for comment on the phones and data plans, more and more $700mn share-swap off er by listed e- founders’ plans. Indians are shopping on the web. commerce firm Infibeam but rejected it as Bengaluru-headquartered Flipkart had An employee cleans a Snapdeal logo at its headquarters in New Delhi. The board of Jasper Infotech, which runs Snapdeal, A 2016 report from accounting firm too low, one of the sources said. revised its initial off er for Snapdeal to up to approved Flipkart’s bid of $900mn-$950mn last week, sources said. EY said that e-commerce had grown at a Infibeam declined to comment. $950mn, Reuters reported last week. Gulf Times Thursday, July 27, 2017 13 BUSINESS

Indonesia open to Noble to team up with Mercuria rejoining Opec if not as it slims down to stay afl oat forced to Reuters cut output: Singapore oble, once Asia’s largest com- modities trader, will tie up with Minister Nrival Mercuria Energy Group as part of a dramatic downsizing that will trim its already battered business, halve Reuters staff and result in a quarterly loss of as Houston much as $1.8bn. Announcing a $1bn asset disposal plan as it tackles its debts, Noble said ndonesia is open to rejoin- in the statement it would sell its US ing the Organisation of gas and power business to Mercuria for Ithe Petroleum Exporting $248mn. Countries as long as it is not It has also begun the process of sell- forced to curb its own crude ing its oil liquids business – further oil production, the nation’s narrowing its focus on “hard commodi- energy and mineral resources ties”, essentially coal. minister said on Tuesday. Singapore-based Noble has struggled “We would have to have a to repair investor confi dence following concession for not following setbacks over the past two years: fi rst cuts from time to time,” the blogger Iceberg Research questioned its minister, Ignasius Jonan, said accounts in early 2015, and then it was in an interview in Houston, hit by a brutal downturn in commodi- where he is meeting with ma- ties markets. jor oil producers. The company has stood by its ac- Indonesia said two months counts. ago that it was considering re- But the upheaval meant a collapsing joining Opec after it had left share price, credit downgrades, man- and rejoined several times over agement change and asset sales. the years. Noble’s market value has shrunk to The country, which pumps $554mn, from $6bn in February 2015. about 800,000 barrels of Yesterday’s surprise announcement crude per day, would become is the latest move to whittle down a the group’s 15th member. once sprawling business to a sliver of its The membership talks come former self, in order to help it repay debt as Opec members grapple with and keep trading. an oversupply of crude around One of Noble’s rivals in the cut- the globe, brought on in part throat world of commodities trading, by rising production from US Swiss-based Mercuria, will now step in shale regions. as a partner as the two “explore strate- Indonesia imports roughly gic alliances in Asia”, Noble said. double the amount of crude Noble has been seeking a cash injec- The reception of Noble Group is seen at its headquarters in Hong Kong. Announcing a $1bn asset disposal plan as it tackles its debts, Noble said in a statement it would that it produces, so it is happy tion for months and said yesterday it sell its US gas and power business to Mercuria for $248mn. with the current oil price, near would continue to look for a new inves- $50 per barrel, Jonan said. tor, as well as alliances such as the deal ChemChina bought a 12% stake in the Noble said it expected further strain turing specialist appointed earlier this an asset-light trading house, shedding When asked if that point announced with Mercuria, to help fund trading house last year. in the commodities trading industry as year, said yesterday’s overhaul off ered what it accumulated during a purchas- of view would cause tension its working capital. Cheap and plentiful funding is criti- players grapple with low margins and “a realistic prospect of dealing with the ing spree across the sector. in an Opec meeting, Jonan Mercuria’s chief executive Marco cal for commodities traders. lenders seek to reduce exposure. group’s liabilities”. Elman stepped down as chairman said it would “lead to more Dunand said last year the company was Noble, tackling $3.3bn of debt, The group said it was “positioning “The group further believes that its this year but remains the company’s dialogue.” looking to expand further in natural gas blamed the need to scale back risk and itself for continuing stress in the sector, creditors and shareholders now have a biggest shareholder, with a stake of just Jonan, who was appointed in North America after buying a large conserve cash for a second-quarter loss which the board believes is likely to lead clearer view of its direction and plans to over 18%. energy minister last year, is gas portfolio through its purchase of JP it estimated at $1.7bn to $1.8bn – more to industry consolidation”. address its challenges,” he said. Other top shareholders include sov- meeting with Chevron Corp, Morgan Chase & Co’s physical trading than double its market value – as it was As its business struggles, Noble has After the latest sales, Noble is now ereign wealth fund China Investment Exxon Mobil Corp, Cono- arm in 2014. not able to seize opportunities. battled to retain staff , off ering cash bo- focused on coal, freight and LNG. Corp and Orbis Investment Manage- coPhillips and others in Hou- It is looking to acquire physical assets The net loss also includes the impact nuses for top performers. Richard Elman, who founded the ment. ston this week, a stop on a in Louisiana, a source with knowledge of writedowns on its portfolio – it an- But yesterday, as part of asset sales company in 1986, took advantage of a Noble said negotiations with its multi-nation tour to bolster of the matter said. nounced $1.2bn to $1.3bn of exceptional and cost cuts, it said it would also slash commodities bull run to build Noble lenders were continuing. Last month, interest in investing in Indo- Mercuria has also been focused on items. jobs, reducing its staff to 400 from into one of the world’s biggest traders. the company was granted a four-month nesia. growing its Asian business, particularly Last year, the group posted a quar- about 900. In the last two years Elman, 77, had extension by lenders on a key credit “This is all part of an effort in China. terly net loss of just under $55mn. Chairman Paul Brough, a restruc- sought to steer Noble back its roots as deadline, giving Noble until October. to have a more open dialogue with our business partners,” Jonan said. The minister said he had a long discussion with Chevron about the company’s opera- tions in the Permian Basin, the Shanghai to spend $740mn on cruise ship park largest US oilfield. “The production capacity keeps growing. That’s signifi- Reuters This came after CSSC signed a $1.5bn deal cant,” he said. “If shale oil pro- Shanghai with Fincantieri and US cruise operator Carni- duction keeps going up, that val to build China’s fi rst luxury cruise ships in a means US imports of crude oil move that has rattled European shipyards that is going down.” Shanghai district government plans to currently dominate the industry. Jonan also addressed a per- spend about 5bn yuan ($739.97mn) to Lei said the government plans to build offi c- mit dispute with Freeport- Adevelop a cruise ship industrial park to es and factories in the 10 square kilometre site McMoRan Inc, the world’s house foreign fi rms that it hopes will help build in the north of Shanghai, and is applying for it largest publicly traded copper China’s fi rst luxury passenger vessels, a local to be designated a zone where fi rms will receive miner, over operations in In- offi cial said. favourable customs treatment. donesia. China’s government has earmarked cruise “We expect that in the next 5-10 years we To bring an end to the long- shipbuilding as a major objective in its “Made will invest about 5bn yuan in this park,” he said. running negotiations, Freeport in China 2025” programme to upgrade its man- “The supplier network will decide whether would need to build a smelter ufacturing and support jobs at its shipyards, as (China’s) cruise shipbuilding industry will in Indonesia and divest 51% domestic demand for cruise trips increases succeed.” of its holdings in the country 30% a year. He added that Fincantieri had given them its in order to renew its licence, Firms who set up shop in the new zone could catalogue of suppliers which they planned to Jonan said, calling the terms expect fi nancing support from banks and re- reach out to in coming months. non-negotiable. cently established government funds, Lei Shu- Some European shipbuilders fear China “There is no option,” he guang, director on the administrative commit- could come to dominate the cruise ship mar- said. “It they don’t, it’s OK, tee of Shanghai Baoshan Industrial Zone, told ket, much as it has done in cargo ships over re- but they cannot export.” Reuters yesterday. cent decades. For its part, Freeport said on In May, Baoshan district signed a letter of Still, learning how to build cruise ships will Tuesday as it reported quar- intent with China State Shipbuilding Corp not be easy for the Chinese, given the complex terly results that it was making The Waigaoqiao Shipbuilding in Shanghai. China’s government has earmarked cruise shipbuilding as a major (CSSC), the country’s largest shipbuilder, and web of suppliers needed to furnish items from progress in discussions with objective in its “Made in China 2025” programme to upgrade its manufacturing and support jobs at its Italy’s Fincantieri to develop a hub to support luxury carpets to soundproofi ng, industry ex- the Indonesian government. shipyards as domestic demand for cruise trips increases 30% a year. a supply chain network for cruise shipbuilding. perts say. Mortgage brokers feel the heat in Australia’s housing firefight

Reuters a review that could lead to an overhaul of come. That has raised alarm bells among more than A$2bn annually in payments, whom derive their entire income from payments and higher pay to brokers who Sydney the country’s A$1.7tn ($1.35tn) mortgage regulators about customers’ ability to pay including trailing commissions that can commissions, argue the big banks want engage in sales campaigns. market. Big banks, reliant on mortgage off loans in a downturn and its domino continue over the lifetime of the loan. commissions slashed because their earn- The review asked banks to implement brokers for more than half of new loans eff ect on the broader economy. Some banks also off er brokers ‘soft dol- ings growth is under pressure and they the recommendations as quickly as pos- The cosy relationship between Australia’s written in recent years, are quietly push- Mortgage brokers have contributed to lar’ benefits such as loyalty programmes are losing market share to smaller lenders sible and no later than 2020 but progress big banks and mortgage brokers is under ing for changes that would reduce the the surge as loans made by them are typi- and overseas travel to exotic locations. and non-bank players. has been slow. CBA, Australia’s No 1 mort- threat as authorities worry about risks to influence of brokers, sources said. cally larger, riskier and are paid off more In contrast to Australia, all forms of “Quite often you’re getting a better rate gage lender, is running behind its own the financial system and lenders baulk “We are still working on the report, it’s slowly, according to ASIC. commission to brokers are banned in the going through a broker than from a bank,” July 1 deadline to implement “many of the at the growing costs of incentives for a hard one,” said a senior off icial at Treas- “The inherent conflict of interest Netherlands, and trailing commissions said Thomas Patrk, senior finance adviser recommendations” on sales commissions, brokers. ury, which is running the review. between banks and brokers means that in are rare in the United Kingdom and New at Sydney-based mortgage broker Orium including to third-parties. Australian banks off er generous “Banks are hoping for a big shake-up. a downturn there is an increased possibil- Zealand. “These payments are an illustra- Finance. “So the whole thing about com- “We haven’t made any decisions about inducements to brokers to sign up new The mortgage broking industry is not with ity of higher bad debt than if the banks tion of excesses built into the financial missions being a problem is really being changes or how they will be implemented borrowers and negotiate larger loans, a the banks. There is a lot of tension,” said had sold all the loans through their own system following a 26-year economic driven by the banks. at this stage,” a spokeswoman for CBA system dismantled in the United Kingdom the off icial, who asked not to be identified branches,” said Omkar Joshi, portfolio boom in Australia,” said UBS banking They are losing market share to smaller told Reuters. NAB said it was committed following the global financial crisis. because he was not authorised to talk to manager at Regal Funds Management analyst Jonathan Mott. “We expect the players who are more nimble, off ering to moving to a new structure, while others The Australian Securities and Invest- the media. which has A$1.7bn in assets. banks to negotiate materially lower better service, better rates.” noted the challenges around measures ment Commission (ASIC) criticised the The Treasury will release its findings “Mortgage brokers do not take on the fee-for-service mortgage commissions in The market share of Australia’s big involving brokers. model in a report earlier this year, saying in “due course”, a spokeswoman for the credit risk but are remunerated based on coming months.” banks shrunk to under 65% in home loans “We recognise some initiatives particu- it encouraged risky behaviour and mis- minister of revenue and financial services loan size and duration.” Australia’s banking Others expect banks to continue pay- this year from 77% in 2013. A review of re- larly those where third parties carry the selling, and created conflicts of interests. told Reuters. As property prices in Sydney sector is dominated by four major lenders ing commissions to brokers, although tail banking remuneration commissioned primary responsibility for progressing Now, with record low interest rates and Melbourne have surged by 70% or – Commonwealth Bank of Australia, West- some forms of fee such as overseas by the Australian Bankers’ Association matters... may ultimately require regula- fuelling a surge in home prices and house- more in five years, Australia’s household pac Banking Corp, ANZ Banking Group, junkets and volume-based incentives are (ABA) in April recommended doing away tory or legislative intervention,” Westpac hold debt, the government is working on debt has jumped to 190% of disposable in- National Australia Bank. Banks pay brokers likely to be abandoned. Brokers, most of with volume-based incentives, soft-dollar said in a statement. Gulf Times 14 Thursday, July 27, 2017 BUSINESS

Coal India may raise Japan worried over US plan metallurgical coal prices, to curb aluminium import says offi cial Bloomberg New Delhi Reuters Tokyo he world’s biggest coal miner is considering apan’s aluminium industry is wor- Traising metallurgical ried that any US trade action to coal prices for the second time Jblock imports of the metal may re- this year, a company official sult in surplus supply elsewhere and said, reflecting Coal India Ltd’s prompt a chain-reaction of retaliation efforts to shore up revenue by other nations, the head of a trade amid rising costs. body said yesterday. Coking coal producing units US President Donald Trump’s ad- Bharat Coking Coal Ltd and ministration is determined to curb im- Central Coalfields Ltd plan to ports of aluminium, along with steel. submit the proposal to their In April, it initiated a “Section 232” boards in a month, the official review of the aluminium industry using said, asking not be identified, a 1962 law that allows the imposition of citing internal policy. The pro- tariff s or quotas on imports if national posal follows a jump in Aus- security is threatened. tralian benchmark prices, he Results of the review are still pending, said. Australian hard coking but the move has been widely criticised coal averaged $192 per tonne in by diplomats who say it risks retaliation the three months ended June, and could undermine global trade if na- gaining 14% from the preced- tional security becomes an accepted ex- ing quarter. cuse to break international trade rules. Higher coking coal prices “Direct impact to Japan may be limited may only partially offset a given the small portion of its exports that planned increase in employee go to the US market, but a possible bat- costs as the steel-plant fuel tle among many other nations to exclude accounted for barely a tenth of imports would be the biggest threat to Coal India’s production, with free trade,” Mitsuru Okada, the new thermal coal comprising the chairman of the Japan Aluminium As- rest. The Kolkata-based miner sociation told a small group of reporters. is in talks with labour unions Japan, which produces about 2mn on wage hikes and has started tonnes of rolled and extruded alumin- making provisions for a retro- ium products a year, exported nearly active salary increase that have 250,000 tonnes of those products in pushed its profits down in the 2016. past four quarters. About 10% of the exported material “Coal India’s profitabil- went to the United States, according to ity is under pressure and in the nation’s trade data. Japan, which produces about 2mn tonnes of rolled and extruded aluminium products a year, exported nearly 250,000 tonnes of those products in 2016. About 10% of the this situation every oppor- Okada is also president of Japan’s exported material went to the US, according to the nation’s trade data. tunity of a price increase is biggest aluminium fabricator UACJ good for its earnings,” Goutam Corp, which has been aggressively in- company’s strategy as the UACJ plant in ducer China. “We hear China is cutting minium prices have gained more than hopes for China’s capacity reduction Chakraborty, a Mumbai-based vesting overseas over the past several Thailand was built to become an export smelters’ capacity, but we don’t know 10% this year, in part due to the capac- and growing demand for automobiles,” analyst at Emkay Global Fi- years, including in China, Thailand and base to Oceania, the Middle East and if it will continue,” Okada said, point- ity cuts in China. Okada said. The global trend towards nancial Services Ltd said. “But the United States. points further west, he said. ing to growing ingot demand from local Benchmark prices stood at around stricter environmental rules for auto- coking coal alone would be too If many countries start shutting their Okada also expressed concerns over aluminium fabricators that are rapidly $1,943 per tonne yesterday. mobiles will continue, he said, and force small to offset the cost bur- doors to imports, it would aff ect his surplus aluminium capacity in top pro- expanding production capacity. Alu- “The prices have bounced back on automakers to use lighter materials. den.” The bulk of the state-run company’s thermal coal out- put is used by power plants and it is under pressure to keep thermal coal prices low to aid the government’s reforms Meituan-Dianping plans investment in offl ine retail to turn around ailing power retailers. Coal India’s units will re- Reuters for an initial public off ering before gistics to tap new consumers in China’s consumers can go and buy grocery the latter’s 2015 merger with Tencent- view coking coal prices every Beijing completing setting up infrastructure vast offl ine retail market – brick-and- items and seafood using the company’s backed Dianping, but its stake fell after quarter to reflect changes in for services including offl ine retail, VP mortar stores – that still make up over app. “What we are calling new retail is the deal. Australian benchmark prices of strategy Shaohui Chen told Reuters 80% of total retail sales in the country. actually closer to us than to the tradi- It has since invested heavily in a sep- in the preceding quarter, the hina’s largest provider of on- yesterday. Alibaba, which coined the term “new tional e-commerce” said Chen. arate group of on-demand service pro- company official said. The demand services Meituan- “We foresee we will be the most ag- retail” to describe a strategic integra- “(Offl ine stores) view us more as a viders, including food delivery platform two units had raised prices of CDianping, backed by Tencent gressive investor in the offl ine retail tion of data and payment tools for of- partner to expand their business, while Koubei and ticketing service Tao Piao the steel plant fuel in January, Holdings Group Ltd, said it planned to space...traditional software players do fl ine partners, has invested upwards they are very scared that those tradi- Piao. Meituan-Dianping, which has projecting a combined revenue invest heavily in offl ine retail services not have the competence in China be- of $9.3bn in brick-and-mortar stores tional e-commerce companies will re- 200mn monthly active users and was gain of 32bn rupees in the year in a strategy that will pitch it directly cause this is new infrastructure.” since 2015. It launched many un-staff ed place them.” valued at $18bn following its 2016 fund- to March 31. against China’s top e-commerce fi rms. E-commerce giants Alibaba Group concept shops in the past year, includ- Meituan-Dianping will expand its ing, is also focusing on its investment in Shares closed 0.9% higher at Meituan-Dianping has more than Holding Ltd and JD.com Inc are already ing grocery and coff ee stores. base of strategic partners and invest in a small-scale ride-hailing service and Rs260.65 in Mumbai, while the $3bn remaining from a $3.3bn funding channelling substantial resources into Meituan-Dianping opened its fi rst backend technology, Chen said. expanding its travel ticketing business, benchmark S&P BSE Sensex round in early 2016, and has no plans big data, artifi cial intelligence and lo- offl ine concept store this week, where Alibaba invested in Meituan prior to Chen said. rose 0.5%.

Jakarta’s traffi c-clogged economy gets a lift from motorbike deliveries

Reuters ment’s Economics Bureau, said Go-Jek has ride-hailing brands Uber and Grab. Jakarta had a “big” impact on consumption and trade Blue Bird’s shares have since recovered in the city. “It has changed people’s behaviour, after announcing a partnership with Go-Jek that’s for sure.” that allows customers to order cabs through Three years ago, Ferly Aninditya’s stall at a The Indonesia Franchise association esti- the Go-Jek app. Jakarta food court was losing money. mates its members saw revenue improve 30% But they remain well below 2015 peaks. Deterred by the Indonesian capital’s para- on average after using Go-Jek. PT Tiki Jalur Nugraha Ekakurir (JNE), a lysing traff ic, few customers were prepared to The Association of Hotels and Restaurants logistics company, says Go-Jek has disrupted come to him. says Go-Jek has increased sales by 15%-20% its same-city deliveries. But that was before he teamed up with for most of its 3,000 members in Jakarta. “It does make us feel that we have to im- Go-Jek, the ride-hailing motorbike service that Companies pay a percentage of sales to prove our services,” said Mohammad Feriadi, delivers everything from meals and groceries Go-Jek; Aninditya says he pays 15%. the president director of JNE. to cleaners and hairdressers across Jakarta, all Eggi Banon, a 45-year-old beautician, Go-Jek’s success also relies on pricing and at the touch of a smartphone app. signed up with the app this month and says the ubiquity of its riders, which means that Now Aninditya owns a chain of small she has already seen business increase. many are now working longer hours to match restaurants with seven thriving branches that “It turns out it’s more profitable working the earnings they were making in the app’s send Indonesian-style fish and chips by Go- through an app, rather than waiting at my early days when the team was smaller. Jek’s army of motorbike riders across Jakarta. salon,” said Banon, who now hops on a motor- Today, Go-Jek uses an estimated 250,000 “I’ve come this far in part because of bike and leaves the salon when clients order riders, most of them in Jakarta. Go-Jek,” said Aninditya. “It’s not just sales, her services through Go-Jek. “To get 100,000 per day is hard,” said Am- but they also helped by spreading our brand Other companies supply cleaners or mas- ing, 47, who joined Go-Jek in 2015 and only through the app.” seurs, or dispatch a dizzying array of products gave his first name, referring to his rupiah Go-Jek has become a crucial workaround – flowers, medicine, movie tickets, cameras earnings worth about $7.50. in a city with some of the worst traff ic in the and eyeglasses. Go-Jek, though, says it increases job op- world. A Go-Jek spokeswoman declined to say portunities for low-skilled workers. The service’s riders can move goods and whether the company itself, which is not “It’s a fair market,” said Monica Oudang, people faster around the city than cars, help- listed, was profitable. who heads human resources at Go-Jek.”If the ing businesses increase sales dramatically as Media reports put the value of the start-up price is too low, then no drivers would take they reach more consumers. at $2bn when a funding round started this the order. Go-Jek, a play on the local word for year. If it’s too expensive, then customers won’t motorbike taxis, ojek, was set up by Nadiem Most of Go-Jek’s business is centred on use it.” Makarim, a graduate of the Harvard School of Jakarta, but the company also has smaller Regulators are also examining Go-Jek and Business and a former associate with McKin- operations in 24 other cities and is consider- its activities. sey, who has quickly become a poster child for ing expanding to 10 more, capitalising on Hartati, from Jakarta’s economic bureau, start-up success in Indonesia. transport and logistics shortfalls that have said she was concerned about safety, but was The company, which counts China’s long hobbled Indonesia’s economy. not considering issuing regulations at this Tencent Holdings and the private equity firm The World Bank estimates that because of stage. Warburg Pincus as investors, has transformed traff ic jams, every 1% growth in urbanisation in Some academics have also raised concerns Jakarta’s economy, economists say. Indonesia delivers only 4% of long-term GDP about the systemic risks of a company like Bank Indonesia, the central bank, is study- growth, compared with 13% in India and 10% Go-Jek becoming too ubiquitous. ing that economic impact. in China. If businesses and consumers rely too The bank’s chief fintech off icer, Junanto Not everybody is happy about Go-Jek and much on it, they say, any problems for the Herdiawan, said data was still being collected, the emergence of other ride-hailing services. company could have ripple eff ects for the but the initial findings were “quite remark- Indonesia’s largest taxi operator, PT Blue entire economy. able.” He added: “It could be a game-changer Bird Tbk, lost three quarters of its market “Go-Jek can create customer dependence,” should society keep benefiting from Go-Jek’s value over a 20-month period from the begin- said Telisa Falianty, a lecturer at University of services.” ning of 2015, which coincided with the emer- Indonesia. “When customers have no other A Go-Jek driver rides his motorcycle through a business district street in Jakarta. Sri Hartati, the head of the Jakarta govern- gence of Go-Jek, as well as the international options, it could be troublesome.” Gulf Times Thursday, July 27, 2017 15 BUSINESS Bill Gates backs Uber freight rival, joining other billionaires

Bloomberg for Gates or Bezos, whose fortunes are force. That’s despite distractions posed by sands of shipments and generating mil- the investment arm for the personal and The threat of automation is looming Seattle within $3bn of each other, according to a lawsuit claiming a former Uber execu- lions in sales a week. He said sales volume philanthropic assets of Michael Bloomb- over the trucking industry, with predic- the Bloomberg Billionaire’s Index. But tive, who was working on autonomous is doubling every quarter but declined to erg, the founder and majority owner tions that self-driving 18-wheelers will Convoy has become a hot startup invest- trucking technology, conspired with the provide figures. Consumer giants Unilever of Bloomberg, invests in Y Combinator replace the large workforce in the future. As Bill Gates and Jeff Bezos jockey for the ment among fellow billionaires. Salesforce. company to steal trade secrets from and Anheuser-Busch InBev have signed on startups.) Hariharan said software to match trucks designation of world’s wealthiest man, the com chief executive off icer Marc Benioff Alphabet’s Waymo. Uber denies wrongdo- as customers. “The market opportunity is huge, and with jobs and track progress will be neces- Seattle billionaires are united behind at and KKR & Co co-CEO Henry Kravis are ing. Convoy initially required pickups to trucking is a space that has not had any sary, “regardless of who is driving the least one local venture. They’re both inves- also shareholders. IAC/InterActiveCorp Convoy CEO Dan Lewis said he hopes originate in the Pacific Northwest and has innovation in two decades,” said Anu truck—man or machine.” tors in a trucking logistics startup that chairman Barry Diller participated in the to take advantage of Uber’s distractions. since expanded to several other regions. Hariharan, a partner at the Y Combinator Trucking, even the software-enabled competes with Uber Technologies. new round with Gates. “It isn’t clear what’s going to happen with It plans to use the new funds to go venture fund. variety, may seem like an antiquated Convoy Inc, a two-year-old Seattle Convoy was initially pitched as an Uber,” Lewis said. “The leadership of the further, with operations in the Northeast, The US trucking market is worth about industry for a tech leader like Gates, company, makes software that matches “Uber for trucking” and has raised $80mn company in general is gone.” Mid-Atlantic and the South over the next $800bn, and it’s rife with ineff iciency. but the world’s richest man often leans nearby and available truckers to a ship- in total since starting in 2015. But this Uber said its two-month-old freight year. Funds will also go towards software Lewis said trucks are driving without car- towards investments in more traditional ping job. Convoy said yesterday it raised year, Uber rolled out its own version of service has been greeted by enthusiasm. development. Lewis declined to comment go more than 30% of the time, often after industries like rail, trash and tractors. He’s a new round of funding from Bill Gates’s on-demand trucking. The service, called “We’ve learned an incredible amount on Convoy’s valuation. returning from a drop-off . He positions his the biggest single investor in Canadian Cascade Investment and other backers. Uber Freight, connects truck drivers with already and are continuing to recruit the The new funding was led by Y Combina- company as a way to cut costs and pollu- National Railway Co and Deere & Co. A Gates joins Amazon.com’s Bezos, who long-haul assignments. There are other top minds in the industry as we ramp tor’s Continuity Fund. It’s the first time tion, a proposition that’s attracted not just spokesman for Gates’s investment firm invested earlier. The latest financing totals providers, such as Trucker Path, but Uber’s up our investment in this technology,” a the Silicon Valley firm has invested in marquee investors but also a number of said Convoy’s promises to reduce road $62mn. financial heft — having raised more than spokeswoman wrote in an e-mail. a company that wasn’t incubated in its competitors. Some have already become congestion and help the environment The investment won’t break the bank $15bn since its inception — makes it a Lewis said Convoy is fulfilling thou- startup programme. (Willett Advisors, road kill. were major draws.

Rapid ageing could keep Britain’s opposition Labour alarms ECB’s hand tied for next decade bankers with Robin Hood tax plan Labour sets out transaction tax Reuters plan; banking industry seeks to Frankfurt rebuild ties with Labour; fears that plan could add to Brexit exodus

he rapid ageing of Europe’s Reuters population may keep in- London Tterest rates depressed over the next decade, potentially lim- iting the European Central Bank’s ritain’s left-wing opposition ability to adjust policy, a research party has held a series of meet- paper published by the ECB yes- Bings with top fi nance executives, terday showed. setting out how it would levy taxes on The expected rise in the share one of the world’s biggest fi nancial of people not working will hold trading centres if it snatched power back growth and limit invest- from Prime Minister Theresa May. ment, making it necessary for With May’s grip on the leadership governments to encourage later weakened by an ill-judged election retirement, and to promote in- last month and her Conservative party novation and investment, the divided over Brexit, Labour is hoping researchers said in a paper that her minority government will collapse does not necessarily represent and catapult its socialist leader Jeremy the ECB’s opinion. Corbyn into power. “Empirical evidence presented Last week, Labour’s fi nance spokes- in this paper suggests that over man John McDonnell chose the London the next decade, adverse de- Stock Exchange — a bastion of Brit- mographic developments in the ish capitalism — to invite feedback on euro area may continue exerting proposals, telling leaders his party will downward pressure on short- form the next government, sources at and long-term nominal and real the meeting said. interest rates, potentially limiting Banks in London’s fi nancial hub the ability of monetary policy to had paid little attention to relations adjust its stance due to the pres- with the Labour Party since 2015 when ence of the lower bound to policy members elected Corbyn, a veteran rates,” the paper said. campaigner who is seen as oppos- With ECB rates at record ing much of what the City of London lows, policymakers have relied stands for. on a plethora of unconventional But the industry has been forced tools to boost growth and prices to take the party seriously after its but some have argued that rapid much stronger than expected show- John McDonnell, finance spokesman of the UK opposition Labour party, gestures while delivering a speech in London. Last week, McDonnell chose the London Stock ageing, technological leaps and ing in the general election which left Exchange to invite feedback on the new tax proposals, telling leaders his party will form the next government. globalisation naturally cap wag- May to rely on the support of a small es, prices and ultimately central Northern Irish party to prop up her work is the inspiration for the proposal austerity under the ruling Conserva- agers Millennium Global, said such a “We need to have some sort of dia- bank interest rates. government. and appeared alongside McDonnell at tives. proposal would likely send a lot of trad- logue with Labour because it’s been “In (the baseline scenario,) the McDonnell told executives from one of the events, says Britain’s fi nance The proposed levy would be based on ing activity away from Britain. zero,” the banker said. real short-term interest rate in Standard Chartered, the London Stock sector is lightly taxed. a tax of 0.2% of the value of trades for “It is the selective advantage that is Some bankers predicted that if La- the euro area would remain nega- Exchange, the City of London Corp, Persaud said the tax would help kill banks, hedge funds and other fi nancial the problem with this, unless every- bour were to be elected, it would adopt tive until 2019 and remain close to lawyers, lobbyists and accountants in off high-frequency trading and he fa- companies, and 0.5% for non-fi nancial one else does it, people just leave,” said a more centrist approach like former zero over the 2020-25 period, not two separate meetings last week about vours reducing the size of Britain’s fi - businesses. Benson, who was not at the meetings. French president Francois Hollande or far from the average between 2007 Labour’s proposals to expand an exist- nancial sector because it has become Britain has the largest foreign ex- But the Labour Party’s City spokes- Greek Prime Minister Alexis Tsipras. and 2015,” said the authors, from ing tax on shares to include trading on too large. change market and the second larg- man Jonathan Reynolds told Reuters Another executive who attended one the ECB and the Bank of Italy. other assets such as bonds and deriva- “I do feel there is a right size for the est derivatives market in the world, although he has been sceptical in the of the meetings with McDonnell said it Using projections in the Euro- tives. fi nancial sector and in some countries accounting for just under 40% of the past about a transaction tax it would was made clear that Labour was invit- pean Commission’s 2015 Ageing Labour says the tax — proposed to it is too small, but in Britain and Amer- world’s dealings in those markets, ac- help reduce anger towards banks for ing reaction to the proposals. Report as the baseline, the paper be around half of a percentage point or ica, in the Anglo-Saxon countries, I do cording to the Bank for International causing the fi nancial crisis and raise “They are actively encouraging feed- also concluded that real GDP and less on the value of a trade — could earn think it is too large,” Persaud told Reu- Settlements. revenue. back and wanting to meet people fur- investments would grow by less £4.7bn pounds ($6.1bn) a year. ters in an interview. One executive who attended one of Banks “need to continue to rebuild ther to discuss feedback. than 1% per year. Labour published details of the tax in “This means it is absorbing a lot of the Labour meetings said the proposals public trust and support, and the tax I thought that was a very positive Short-term interest rates would the run up to the June election. resources and as a result it becomes a would damage London at time when its contribution from the sector is a sig- message,” he said. only rise above 1% by 2025 if the Banking industry fi gures are con- very powerful player, a very powerful status is under threat because of Brexit. nifi cant part of that,” he said. Others warned though that there has eurozone managed to maintain its cerned such a tax, debated in Western player in politics and is maybe exerting “If they win power and actually go The head of one large investment been little so far from the party’s rheto- current dependency ratio, or the economies for decades, could exacer- a disproportionate impact.” ahead with this, this would be the straw bank in London said they are seeking ric to indicate a major softening in tone. ratio of people under 15 and over bate the impact of Brexit by prompting Labour wants to use the higher taxes that breaks the camel’s back,” accord- to secure meetings with Labour’s sen- If Labour comes to power then “it is 64 relative to the working-age more businesses to fl ee London. on fi nancial services — Britain’s most ing to the executive. ior team as they are a potential ally in literally game over for the UK, welcome population, an optimistic scenar- Avinash Persaud, an economist and profi table industry — to fund increased Richard Benson, the co-head of pushing for a softer Brexit and to fi nd to Venezuela without the sunshine,” io based on current projections. a former hedge fund manager, whose public spending and end seven years of portfolio investment at currency man- out more about their policies. another banking executive said. BoE says EU bank-failure bill may hinder too-big-to-fail fi x

Bloomberg rope, whose members include Barclays cols, and this “threatens the interna- ers. Among its goals was to standardise little support among the EU’s 28 na- day period proposed by the commis- London Bank and Deutsche Bank, said the pro- tional progress to address the risk of national rules on supervisors’ powers tional governments, according to a July sion, some want it shortened to three posed powers would disrupt markets cross-border termination of contracts to suspend banks’ payments to third 10 working paper prepared by Estonia, days and others want to extend it. and compound the woes of targeted and could leave EU fi rms at a competi- parties. which holds the EU’s rotating presi- As as compromise, the paper pro- he Bank of England took aim at fi rms. tive disadvantage.” Calls for broader moratorium powers dency. The paper, seen by Bloomberg posed a moratorium of 5 working days a European Union plan to boost The proposal “would undermine the The protocols developed by the In- have come from the European Central News, concludes that it would be “rea- with the option to prolong to a maxi- Tsupervisors’ powers to stop cash objectives of resolution, it endangers ternational Swaps and Derivatives As- Bank, which oversees lenders in the sonable to abandon the concept of pre- mum of 20 in exceptional circumstanc- leaving ailing lenders, adding its weight fi nancial stability and increases conta- sociation are a voluntary mechanism euro area, and the Single Resolution resolution moratorium,” and countries es. to mounting criticism of a bill intended gion risk,” Charlie Bannister, manager for the world’s biggest banks to recog- Board, the currency bloc’s wind-down could look into applying this option at That draft compromise is unlikely to make sure big banks can be wound for recovery and resolution at AFME, nise each other’s payment-stay rules. authority. the national level. to win much support from the fi nance down without wreaking havoc on the said in an interview. “It challenges the They also include an opt-out provi- Elke Koenig, chair of the Single Res- A spokeswoman for the Estonian Fi- industry, in part because of the rami- economy. eff ectiveness of existing powers and sion in case those rules are changed to olution Board, said earlier this month nance Ministry declined to comment on fi cations for derivatives trading. ISDA The BoE warned of “very serious would be a backward step.” lengthen the stay. The EU’s moratorium that there are “strong advantages to a the paper. A European Commission of- said in a July 12 paper that the proposed consequences” if lawmakers adopt an The need to prevent counterpar- plan “would likely trigger this opt-out moratorium tool covering all liabilities fi cial said that work on the moratorium EU payment halts would knock the bloc EU bill that sets out a fi ve-day morato- ties from racing for the door when a right,” the BoE said. to buy time if need be, or to take us to was part of the Roadmap to Complete out of step with other jurisdictions, in- rium on payments from failed banks in fi nancial fi rm gets into trouble was “This would be a step backwards in the weekend in case a bank is declared” the Banking Union which was agreed cluding the US, increasing their costs the process of restructuring. The stay highlighted by the messy bankruptcy terms of resolvability and undermine failing or likely to fail by the ECB during on by member states in mid-2016. In and damaging competitiveness. is out of sync with an existing indus- of Lehman Brothers Holdings in 2008, the progress made towards addressing the working week, as it did in the case of that document, the moratorium tool “We think the proposed moratoria try agreement that stops banks from which contributed to a broader cri- one of the main barriers to cross-bor- Banco Popular Espanol. is foreseen as a way to help stabilise a would put EU banks at a signifi cant winding up derivatives contracts with sis in credit markets. In response, the der resolution,” according to the BoE. The commission proposed two tools, bank in crisis. competitive disadvantage in the deriv- a struggling fi rm for two days, accord- industry agreed to rewrite standard A BoE spokeswoman declined to one for use in resolution and one in an Koenig said in March that halting atives market,” Rick Sandilands, ISDA’s ing to a BoE working paper seen by fi nancial contracts to allow certain comment on the document. “early intervention” stage, to facilitate payments before a bank fails could very senior counsel for Europe, said in an Bloomberg News. securities and funding contracts to The European Commission, the EU’s the “quantifi cation of available assets well drive it over the cliff into resolu- interview. Industry groups are stepping up their remain intact for as long as 48 hours executive arm, proposed the moratori- and liabilities,” allowing authorities to tion, a point also made by the lobbyists. “The associated impact on capital lobbying campaign against the plan after a bank fails. um in November as part of an update of decide on a fi rm’s fate. While the resolution moratorium has and margin provisions would make it before lawmakers in Brussels return to In its July 10 paper, the BoE said the the Bank Recovery and Resolution Di- The proposal to give supervisors the broad backing, views diff er as to its du- more costly to trade with them than work after the summer break. The As- proposed moratorium in resolution rective, the centrepiece of the bloc’s at- power to declare a fi ve-day moratorium ration, according to the Estonian paper. with their counterparts in other juris- sociation for Financial Markets in Eu- confl icts with existing market proto- tempts to tackle too-big-to-fail lend- before a bank is wound down enjoys “Many delegations” accept the fi ve- dictions.” Thursday, July 27, 2017 GULF TIMES BUSINESS

BANKING ON KNOWLEDGE Qatar’s cyber security framework enhanced through regulatory reforms

By Dr R Seetharaman collaboration and action, establish a legal privacy law such as (i) Raise aware- and regulatory framework to enable a ness internally and amongst its service safe and vibrant cyberspace, foster a cul- providers; (ii) Review internal docu- The malicious use of Information and ture of cybersecurity that promotes safe ments, agreements, policies, disclaimers, Communication Technologies (ICT) in cy- and appropriate use of cyberspace and consents etc. from the perspective of berspace could disrupt financial services, develop and cultivate national cybersecu- complying with the Data Protection Law undermine security and confidence and rity capabilities. and also identify matters which need endanger financial stability. To make progress against the objec- with many others to implement these trols which needs to be implemented by to be addressed; (iii) Conduct internal The WannaCry ransomware attack tives, Qatar will develop and implement actions for the benefit of Qatar. the Banks. Banks hold sensitive informa- training for the relevant departments this year is one of the recent cyber- laws, regulations, and national policies to The Qatari government promulgated tion such as customer records, account in- such as IT, legal, marketing, technical attacks which targeted computers address cyber security and cybercrime; a Cybercrime Prevention Law (No 14 of formation as well as personal information support etc. to address any questions or running the Microsoft Windows operat- increase capabilities to combat cyber- 2014) in an eff ort to increase the tools such as names, birth dates, addresses, concerns that the customers may have in ing system by encrypting data and crime; build and maintain strong inter- for combating online and cybercrimes. Qatar Identity number and many others. relation to the Data Protection Law and demanding ransom payments in the national relationships to establish cyber Qatar’s new approach to cyber security Banks must take all necessary meas- their rights thereunder; (iv) Broadly iden- Bitcoin cryptocurrency. The impact of security norms and standards; invest in balances the need to protect intercon- ures to ensure proper protection of these tify potential issues, consult internally the attack was felt over 10,000 organi- research to develop and commercialise nected Informational and Communication records. The QCB issues several circulars and take steps to rectify those issues or sations and 200,000 individuals in over innovative cyber security technologies Technology (ICT) products and services on regular basis to combat with cyber- where the risk is still unclear, put in place 150 countries, according to European and solutions; continuously monitor the with the need to provide opportunities crimes for financial sector. appropriate holding measures; (v) Re- authorities. ance, including that to identify eff ective security posture of CII; establish and that maximise the benefits and eff icien- The State of Qatar has issued a new visit all security measures implemented At the Global Level, G20 aims to pro- practices. continuously enhance incident response cies found in ICT advances. law concerning the Privacy and Protec- by the bank and the service providers mote the resilience of financial services Qatar has envisioned to establish capabilities. The Qatar Central Bank (QCB) has pub- tion of Personal Data being Law No 13 and assess whether any further steps and institutions in G20 jurisdictions and maintain a secure cyberspace to The Qatari government developed lished a detailed framework for combat- of 2016 (the ‘Data Protection Law’). This can be taken or investments be made to against the malicious use of ICT, including safeguard national interests and preserve a robust plan for 2014-2018. The action ing cyber risks and crimes. The key high- law aims to establish a certain degree of protect customer data. from countries outside the G20. With the the fundamental rights and values of the plan is organised by objectives. Various lights of this framework are Management protection for, and prescribes the guide- On the whole we are seeing Qatar aim of enhancing cross-border coopera- country’s society. To achieve this vision, stakeholders from government entities of Technology Risks; Defined Technology lines for the processing of, personal data Cyber security framework enhanced tion, G20 has asked the Financial Stability Qatar seeks to fulfill the objectives, name- and institutions, including the Ministry of Risk Organisational Structure; Defined within Qatar. The law includes provisions through regulatory reforms, which will be Board to perform a stock-taking of exist- ly safeguard national critical information Defence, the Ministry of Information and Roadmap for Business Continuity; Frame- related to the rights of individuals to pro- beneficial to Qatar Banking Sector. ing relevant released regulations and infrastructure (CII), respond to resolve Communications Technology, the Ministry work for Incident and Fraud Management; tect the privacy of their personal data. supervisory practices in its jurisdictions, and recover from cyber incidents and at- of Interior, Public Prosecution and other and Detailed Process Risk controls. Banks operating in Qatar should consider Dr R Seetharaman is Group CEO of as well as of existing international guid- tacks through timely information sharing, organizations must work collaboratively The QCB issued multiple strong con- taking some precautionary steps as per Doha Bank.

QFB earns revenues Blockade said to open of QR185mn in H1 atar First Bank (QFB) has recorded revenues Qof QR185mn during the six-month period that ended in June, the leading Shariah- growth opportunities compliant bank said yesterday. The bank reported a loss of QR76.7mn during the period. Ayman Zaidan, QFB head (Treasury and Investment Man- agement), said, “As the global in- vestment market continues to go through major challenges, QFB for SMEs in Qatar recorded revenues of QR185mn and a loss of QR76.7mn. We en- By Peter Alagos vision that the global economic Business Reporter backdrop will remain challeng- ing for the remainder of this year; however, we will continue The QFB headquarters in Doha. he economic blockade has to push ahead to develop inno- Despite challenging economic led to more opportunities vative fi nancial solutions and factors, the bank’s investment Tfor growth and expan- products for our individual and portfolio continued to generate sion of small and medium-sized institutional clients.” healthy dividends, recording enterprises (SMEs) and Qatar’s Despite these challenging an income of QR7.5mn in H1. manufacturing sector, an offi cial economic factors that continue of a local company said. to have infl uence on the bank’s positive momentum during the Rajesh Raveendran, sales investment book, QFB total as- fi rst half of 2017. With regards manager of Doha Regional Plas- sets slightly decreased by 5.5% to Memorial Healthcare Group, tic Solutions, noted that be- from the year end, and closed at one of Turkey’s largest premier cause of increased demand for QR5.6bn. hospital chain, healthy growth locally-manufactured products, Moreover, the investment has been achieved on both the business operations of domestic portfolio continued to gener- revenue and EBITDA levels, companies “improved further” ate healthy dividends, record- benefi ting from a relatively sta- since the blockade. ing an income of QR7.5mn. ble currency fl uctuation. “The blockade made us QFB’s sukuk book also con- QFB’s Turkish and UK invest- stronger and we now have hope tinued to generate positive re- ments, which were previously because of the government’s ef- turns resulted in an income of impacted by currency fl uctua- forts to promote the local manu- QR13.6mn, which is close to the tions and country-specifi c facturing industry. Our goal now same period of 2016. events, continued to be stable is to expand our operations. Furthermore, the bank’s in- with slight improvements on the “We now have a lot of work come from placement with UK side. The team will continue here in Doha, and our contrac- fi nancial institutions has in- to successfully manage the exist- tors are supporting us,” Raveen- creased by 24%, compared to ing portfolio, as well as seeking dran told Gulf Times on the the fi rst half of same period, out new lucrative opportunities. sidelines of Qatar Development mainly from cash deployment Besides, the management hopes Bank’s (QDB) second edition in Shariah-compliant money that the portfolio will perform of ‘Buy Local Products’ expo, market funds. well in the years to come. which concluded yesterday. Additionally, the bank’s in- On the private bank front, According to Raveendran, in- come from fi nancing assets despite economic challenges creased support in the develop- increased by 28.3%, compared QFB increased fi nancing assets ment of local companies gives to the same period of 2016, re- by 3% compared to year end Qatar a “high potential” to es- Potential clients visit the Al Bayan for Electronics & LED Technology stand. PICTURE: Peter Alagos cording additional income of 2016 and has formed a stable tablish itself as a manufacturing QR9mn. deposit base, which stood at hub for diff erent types of indus- the ‘Made in Qatar’ brand to standards. He said R&D does not industries. He also commended ing a great job in promoting the In line with the results and QR2.8bn. tries. grow and expand to new mar- only ensure export quality light- the support of QDB and Pub- growth of the country’s SMEs, the changes instituted during Sulaiman al-Hashimi, chief The same view was expressed kets,” al-Ali said. ing solutions but it also helps the lic Works Authority (Ashghal) and it is also supporting us in 2017, QFB’s management con- business offi cer, said, “In line by Saeed Abdul Azeez al-Ali, Al-Ali stressed that the qual- company customise its prod- during the recent staging of the meeting new clients and sourc- tinued raising effi ciency levels with our strategy, QFB will the general manager of B-LED ity of locally-made products are ucts according to the necessary two-day ‘Buy Local Products’ ing exports, as well as providing through the implementation continue to optimise the exist- Lighting Technologies (Al Bayan at par with those manufactured project specifi cations of its cli- exhibition. backups for our factories. Tas- of the cost rationalisation plan ing investment portfolio book for Electronics & LED Technolo- by leading international com- ents. He also underscored the role deer also helps us connect with that resulted in a reduction of with the objective of maximis- gies), which specialises in the panies. With its own research Al-Ali also lauded His High- of QDB’s export promotion arm, the best clients in the interna- the expenses by 19.4% com- ing value to shareholders and manufacture of LED lighting and development (R&D) depart- ness the Emir Sheikh Tamim Tasdeer, in helping local compa- tional market, and they also pro- pared to same period of 2016. clients; to reinvest the proceeds solutions bearing the ‘Made in ment, he said B-LED guaran- bin Hamad al-Thani’s call to nies like B-LED penetrate inter- vide us with pertinent informa- On the private equity front, in lucrative opportunities that Qatar’ trademark. tees that the company’s lighting support the growth and devel- national markets. tion and background about these QFB’s investments in the will contribute positively to the “There is a huge chance for solutions comply with global opment of local manufacturing Raveendran said: “QDB is do- clients.” healthcare sector has shown bank’s returns.”

Non-Qatari and Gulf individual investors turn bullish on QSE

By Santhosh V Perumal 10 minutes, after which there was estate sectors together accounted for Nevertheless, Qatar Insurance, against QR27.46mn the previous day. 38% in transactions to 430. Business Reporter profit booking pressure that led it to more than 88% of the total volumes. QNB, Qatar Islamic Bank, al khaliji, However, non-Qatari institutions The insurance sector’s trade volume touch a low of about 9,540 points. The The Total Return Index fell 0.11% to Ooredoo, Gulf Warehousing, Barwa, turned net sellers to the tune of tanked 16% to 0.16mn equities and latter part largely saw bullish trend 16,071.43 points and All Share Index United Development Company, Qatari QR0.08mn compared with net buyers value by 13% to QR10.12mn, while deals Non-Qatari and Gulf individual with occasional dips and buying was by 0.1% to 2,726 points, while Al Rayan Investors Group, Gulf International of QR12.67mn on July 25. grew 19% to 137. investors turned bullish yesterday seen stronger especially in the last few Islamic Index rose 0.2% to 3,821.32 Services, Mesaieed Petrochemical Domestic institutions’ net buying The banks and financial services amidst a marginal weakening in the minute. But, overall the index settled 11 points. Holding and Widam Food were among declined considerably to QR11.76mn sector saw 7% decline in trade volume Qatar Stock Exchange. points lower. The industrials index gained 0.39%, the losers. against QR35.78mn on Tuesday. to 1.48mn stocks, 16% in value to Gainers outnumbered losers even as Micro and large cap segments saw consumer goods (0.36%) and telecom Non-Qatari retail investors turned Total trade volumes fell 20% to 6.18mn QR60.02mn and 31% in transactions the 20-stock Qatar Index fell 0.11% to some buying in the market, which, (0.02%); whereas insurance fell 1.91%, net buyers to the tune of QR9.42mn shares, value by 38% to QR199.62mn to 813. 9,583.78 points. however, saw bearish outlook realty (0.29%), transport (0.13%) and compared with net sellers of QR3.65mn and deals by 35% to 2,812. However, the real estate sector’s trade Industrials and consumer goods of foreign institutions and lower banks and financial services (0.05%). the previous day. There was 78% plunge in the transport volume soared 26% to 1.11mn shares, counters witnessed robust demand in buying support from their domestic Major gainers included Vodafone The GCC (Gulf Cooperation Council) sector’s trade volume to 0.17mn value by 35% to QR23.02mn and deals the market, whose year-to-date losses counterparts. Qatar, Industries Qatar, Doha Bank, individuals were also net buyers to the equities, 55% in value to QR7.71mn and by 36% to 588. were seen at 8.17%. Market capitalisation was down 0.07% Commercial Bank, Qatar General extent of QR0.06mn against net sellers 63% in transactions to 195. The market witnessed 12% expansion Islamic stocks were seen gaining vis-à-vis to QR519.28bn as small and midcap Insurance and Reinsurance, QIIB, of QR5.54mn on July 25. The consumer goods sector’s trade in the telecom sector’s trade volume to declines in main index and other indices stocks fell 0.46% and 0.13%, while Masraf Al Rayan, Qatar National The GCC institutions’ net profit volume plummeted 62% to 0.41mn 1.74mn equities but on 2% fall in value on the bourse, which was also helped micro and large caps gained 0.05% and Cement, Qatar Electricity and Water, booking declined substantially to stocks, value by 66% to QR41.78mn and to QR21.93mn and 35% in transactions by weakened net selling by local retail 0.04% respectively. Aamal Company, Mazaya Qatar, Nakilat, QR1.22mn compared to QR11.81mn on deals by 58% to 426. to 223. investors and Gulf funds. Trade turnover and volumes were Al Khaleej Takaful, Qatari German Tuesday. The industrials sector reported 33% In the debt market, there was After an initial weakening, the market on the decline in the bourse, where Company for Medical Devices and Al Local retail investors’ net selling also shrinkage in trade volume to 1.12mn no trading of treasury bills and touched near 9,600 points within first telecom, banking, industrials and real Meera. weakened influentially to QR19.94mn shares, 38% in value to QR35.03mn and government bonds.