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Industrial sector PPI falls 38% y-o-y in December: MDPS

The monthly Producer Price Index in the mining sector has declined by 8.3% in December compared with PPI of November 2015, primarily due to the decrease in prices of crude petroleum and natural gas, the Ministry of Development Planning and Statistics (MDPS) has said in a report. The PPI of December 2015, when compared with PPI in the same period in the previous year, had seen a “significant fall” of 43.3%, MDPS said. Overall, on year-on-year basis, the PPI of the industrial sector in December showed a fall of 37.8% compared to December 2014. The PPI covers goods relating to mining (weight: 72.7%), electricity and water (weight: 0.5%) and manufacturing (weight: 26.8%). A decrease of 4.3% was observed in December 2015, when compared with the previous month’s manufacturing index, the MDPS said. The “decreasing prices” are noticed in Al-Kaabi, along with other IQ board members, addressing the shareholders at the AGM yesterday. refined petroleum products (by 6%), basic chemicals (2.8%), basic metals (1.2%), other chemical products (0.8%), beverages ( 0.4%), and cement and other non-metallic products (0.1%). However, price increase was seen in grain mill products (by 1.7%), juices and dairy products (0.4%). Comparing with the PPI in December 2014, the Qapco close to fi nalising manufacturing PPI of December 2015 showed a sharp decline of 24.7%. The major groups that have seen this price fall are basic metals (by 29.8%), refined petroleum products (27.9%), basic chemicals (21.3%), other chemical products (5.4%), dairy products (3.3%), ethane expansion project rubber and plastics products (0.9%) and paper products (0.1%). However, price By Santhosh V Perumal executive of Qatar Petroleum (QP), The studies will be carried out we can do is control costs and improve QR10.6bn, reassuring the group’s rise was noticed in cement and other Business Reporter said IQ is looking at expansion for by QP in cooperation with Qapco, effi ciency.” IQ group faced challenges ability to generate robust cash fl ows non-metallic products by 11.5%, juices ethane-based petrochemicals most- Qatar Chemical Company and Ras during the fi nancial year ended De- and stay strong during diffi cult trad- (4.1%) and beverages (3%). ly, such as Qapco for instance. Laffan Olefins Company, with the cember 31, 2015 following the crude ing periods. The PPI of electricity and water showed ndustries Qatar (IQ) subsidiary “We are studying the possibility aim of further developing the pet- oil price plunge through 2015 that IQ is well-positioned both fi nan- an increase of 3.3% compared to Qatar Petrochemicals Company of expanding ... but it has to be ben- rochemical plants under IQ and signifi cantly aff ected group’s product cially and operationally to mitigate November 2015, resulting from the I(Qapco) is close to fi nalising an efi cial for QP and the shareholders Mesaieed Petrochemical Holding prices, he said. key risks arising from unanticipated upward revision in electricity rates by ethane-based expansion project, ac- of IQ before we can embark on such Company. “Despite this, and a notable depressed trading and economic en- 5.7% and water by 0.1%. cording to its top offi cial. a project,” al-Kaabi said. “QP is the On Qatar Steel, al-Kaabi said, “We decrease in our product prices, vironments as the group possess sev- The overall index (PPI of industrial “This is in the process of being fi - biggest shareholder in IQ.” have a huge ambition for the steel the group was nevertheless able eral unique competitive advantages: sector) 2015 was estimated at 49.3 nalised at some stage in near future,” In January 2015, QP had said it business. We have a very effi cient to post a creditable net profit of most notably, an excellent fi nancial points in December, which showed IQ chairman Saad Sherida al-Kaabi would conduct feasibility studies to plant and we have modifi ed it. Going QR4.4bn, thereby exceeding 2015 position driven by strong liquidity, a decrease of 6.8% compared to the told the general assembly of share- see how it could utilise the “avail- forward, we see Qatar as a very-high- group budget by more than 20%,” positive debt metrics and robust cash previous month. This was due to the holders, which met yesterday. able” ethane feedstock after the deci- demand market for steel, so we see no he said. fl ow generation, unique cost posi- decline that was noticed in the mining Addressing a question on the pros- sion not to go ahead with the multi- issues regarding steel.” He also said IQ’s liquidity position tioning and relatively younger and ef- (which includes crude oil and natural pects of petrochemicals, al-Kaabi, billion Al-Karaana Petrochemicals Although prices are a market issue also remains very strong with cash fi cient operating asset base, al-Kaabi gas), and manufacturing. who is also the president and chief Project. and beyond its control, he said “what across all group companies stood at said.

Qatar banking, realty sectors hurt by 2015 profit slowdown Opec veteran al-Attiyah urges

By Santhosh V Perumal against net gains in 2014. Business Reporter However, QIB saw its net profit gain 22.04%, oil output cut, frets about glut which is higher than 19.92% recorded a year ago and similarly Al Khaliji witnessed its net earnings Banking and financial services as well as real es- go up 11.12%, which is higher than 2.18% registered Reuters pected next month, but eff ectively tate sectors witnessed a considerable slowdown in the previous year. Doha ruled out production cuts by major in their net profitability in 2015, indicating the The real estate sector saw its cumulative net crude producers anytime soon. gloomy picture in Qatar’s corporate sector in view profit expansion slow down to 11.91% in 2015 Addressing the annual IHS of sharp fall in oil prices; even as their outlook in against 69.93% in the previous year. pec and non-Opec produc- CERAWeek conference in Hou- the stock market diff ered. The sector, which has four listed companies, ers should cut production ston, al-Naimi told energy ex- However, the insurance sector witnessed an over- registered a cumulative net profit of QR5.52bn Oto balance the global oil ecutives that growing support for all improvement in their net earnings, thus duly compared to QR4.93bn a year ago. Its group market before a supply glut be- the freeze and stronger demand reflecting in the index in the stock market. index, however, had risen 3.92% in 2015. Three of comes unmanageable “like a can- should over time ease the glut that The banks and financial services sector witnessed them witnessed slowdown in net profit expansion cer”, Qatar’s former Deputy Prime has pushed oil prices to their low- their cumulative net profit growth decelerate to and one reported shrinkage in earnings vis-à-vis Minister and Minister of Energy est levels in more than a decade. 2.96% in 2015 compared to 11.85% in the previous gains in the previous year. and Industry HE Abdullah bin Ha- Traders have been sceptical year, according to data compiled by the Qatar United Development Company saw its net profit mad al-Attiyah has said. about whether freezing produc- Stock Exchange (QSE). growth at 10.22% against 93.85% in 2014; Barwa Al-Attiyah, infl uential in Opec tion near record levels will support The sector, which has 12 listed constituents, 10.04% (102.01%) and Ezdan 22.16% (26.99%). as Qatar’s Energy Minister from the market. reported a cumulative net profit of QR20.04bn Mazaya Qatar reported a 33.47% fall in net profit 1992 to 2011, said a deal announced Al-Attiyah, a leading architect against QR19.47bn a year ago. Its group index had in 2015 compared with growth of 26.42% in 2014. in Doha last week by Saudi Arabia of Qatar’s rise to global promi- fallen 12.42% against a steeper 15.11% correction in The insurance sector witnessed its cumulative and Russia to freeze production at nence as gas exporter, said Opec the main 20-stock Qatar Index. net profit grow at 2.75% in 2015 against an acerbic January levels was not enough to would not cut production alone Four among them saw their net profits slow 30.47% decline in the previous year. balance the market as an oversup- but added that Saudi Arabia, the down, four others witnessed shrinkage in net The sector, which has five listed constituents, ply continues to grow. The deal announced in Doha last week by Saudi Arabia and Russia to world’s largest oil exporter, was earnings (vis-à-vis growth in 2014) and two of reported a cumulative net profit of QR2.21bn “If they want to balance the freeze oil production at January levels is not enough to balance the willing to cooperate with other them were in net loss; while only two were seen compared to QR2.15bn a year ago. Its group index market the solution will be easy. market as an oversupply continues to grow, says al-Attiyah. producers to balance the market. bettering their earnings. was up 1.9% in 2015. Don’t go slow. If you do, then every “Saudi Arabia needs a commit- Among those registered slowdown in profitability Qatar Insurance Company saw its net profit time the market will create a glut. rently chairman of Abdullah bin more than $100 a barrel in mid- ment from everyone. The Saudis were QNB, which reported 7.74% growth in net expansion decelerate to 4.17% in 2015 against Cut 2.5mn barrels and then you Hamad al-Attiyah Foundation for 2014, pressured by excess supply will be big supporters—but others profit against 10.30% in 2014; Doha Bank 1.11% 33.06% in the previous year, while Doha Insurance will balance the market in a few Energy & Sustainable Develop- and a decision by the Organization have to join in,” he said. “Opec will (3.13%); Ahlibank 7.72% (14.38%) and Masraf Al witnessed net earnings growth improve to 43.61% years,” al-Attiyah, who says he is ment, said in an interview in Doha of the Petroleum Exporting Coun- never do it alone. No way Opec will Rayan 3.55% (17.62%). (15.25%) and Qatar Islamic Insurance 11.74% talking to producers in and outside on Monday. tries to abandon its traditional do it alone: 100%.” Commercial Bank witnessed its net profit decline (3.52%). of Opec, told Reuters. “The oversupply has grown role of cutting production alone to One stumbling block in attempts of 24.2% compared to 17.19% growth in the previ- In the case of Qatar General Insurance and “I will ask every producer, do from 1.7mn bpd to 3mn bpd today. boost prices. to forge a wider agreement is Iran, ous year, QIIB -5.05% (+10.06%), Qatar Oman Reinsurance, the net profit grew mere 0.65% com- you want quantity or price? They I am very worried about oversup- Al-Attiyah spoke before Saudi which is increasing output follow- Investment Company -29.42% (+31.04%) and pared to a drastic 56.83% decline in 2014; while Al say they want a reasonable price ply. It is like a cancer. If you did Oil Minister Ali al-Naimi said on ing the lifting of Western sanctions Islamic Holding Group -62.04% (+78.15%). Khaleej Takaful saw net earnings plunge 41.69% in but to reach that there has to be not deal with it quickly, it would Tuesday he was confi dent more in January and whose oil minister Alijarah Holding and Dlala witnessed net losses 2015 against 12.65% growth a year ago. sacrifi ce. If you do not sacrifi ce the spread.” nations would join a pact to freeze was quoted on Tuesday as calling other will not sacrifi ce,” he, cur- Oil has slid around 70% from output at existing levels in talks ex- the output freeze deal “laughable.” Gulf Times 2 Thursday, February 25, 2016 BUSINESS Bahrain launches $600mn bond after downgrade

Reuters bond sale. Last Thursday, Bah- much smaller fi nancial reserves Pricing for a $275mn, fi ve- Central bank governor Rash- us to restructure our econo- of future austerity steps by the Manama/Dubai rain cancelled a $750mn bond than its neighbours. year tranche was set at a yield of eed Mohammed al-Maraj told a my. We have been chained by government and said no decision sale after Standard & Poor’s cut But the kingdom’s ability to 5.950%, while a $325mn, 10-year business conference in Manama an umbrella of subsidies,” he had yet been made on an impor- the kingdom by two notches to stage a new debt sale on Tuesday tranche was set at 7.650%. on Tuesday that Bahrain would said. tant measure to raise revenues, ess than a week after its ‘BB/B’, making Bahrain the fi rst suggested it remained able to fi - That compared with 5.70% for take drastic steps to keep its Al-Maraj also reiterated the the introduction of a broad cor- credit rating was down- of the Gulf oil exporters to fall nance itself after the downgrade the fi ve-year portion and 7.40% budget defi cit under control. In kingdom’s commitment to the porate income tax. Lgraded to junk status, Bah- below investment grade in the at only a moderately higher for the 10-year tranche at last the last few months it has raised peg of its dinar currency against Many investors in Bahraini rain’s government demonstrated current downturn. price. week’s cancelled sale. Both of- gasoline prices and removed the US dollar, saying pressure on bonds say Saudi Arabia, which is on Tuesday that it still had ac- S&P cited the damage caused Orders for the new off er ex- fers were reopenings of a $1.5bn state subsidies from meat to save the kingdom’s fi nances would closely allied to Bahrain, would cess to the international credit by low oil prices to the state fi - ceeded $900mn, a document bond issue originally made by money. not shake it. provide aid if necessary to avert markets by launching a $600mn nances of Bahrain, which has from lead managers showed. Bahrain in November. “This is an opportunity for However, he gave no details any fi nancial crisis.

QC to launch business excellence award The Qatar Chamber is set to launch the business sector excellence award 2016, which aims at encouraging private sector companies to distinguish themselves in the market. Dr Mohamed bin Johar al- Mohamed, QC board member, said one of the main targets of the award is to promote the culture of quality and eff iciency in business among local compa- nies. The award would also help increase the competitiveness potentials of local companies, making them work to attain global standards. The participat- ing company will benefit from a neutral third evaluation on their performance, giving them an opportunity to determine their points of strength and weak- ness. Further details on the award would be released soon by the QC. Meanwhile, QC director gen- eral Saleh Hamad al-Sharqi has taken part at the 38 Executive Committee Meetings of the Federation of GCC Chambers (FGCCC) held in Oman yester- day. The meeting discussed the creation of an e-link to the Workers are seen at a railway station in Riyadh that links Riyadh and the port of Dammam in Saudi Arabia (file). The project of a transnational rail network in the Arabian peninsula, estimated at $30bn in a 2011 information of all the staff of report by consultants Frost & Sullivan, has suff ered from delays since its announcement last decade, with the completion date already shifted to 2018 from a year earlier. GCC chambers, and a project to create a unified network for the training centres of the Federa- tion of GCC Chambers of the member countries. Besides, the meeting discussed the launch of a second edition of the GCC Economic Forum, and other Gulf railway opening date related issues.

Saudi infl ation soars to fi ve-year high Saudi inflation soared to a five- of 2018 no longer a realistic year high in January after the kingdom made unprecedented cuts to public subsidies and raised fuel prices, a research report said yesterday. The Consumer Price Index (CPI), which reflects move- target, says UAE minister ments in the cost of living, rose 4.3% in January com- Reuters Oman, with lines connecting to Qatar, tic,” Abdulla al-Nuaimi, UAE Min- opening date or whether he had any within the UAE. This would have ex- pared with the same month a Dubai Bahrain and Saudi Arabia’s interior and ister Of Infrastructure Development doubts that a pan-Gulf train network tended an existing 264km line trans- year earlier. Red Sea coast. and chairman of the Federal Transport would become reality. porting sulphur from Abu Dhabi’s That compared with 2.3% in The project, estimated at $30bn in Authority, told a news conference in Gulf transport ministers will meet interior to the coastal industrial city December, said Riyadh-based 2018 target to open a transna- a 2011 report by consultants Frost and Dubai, saying he had met ministerial next month in Riyadh for further dis- of Ruwais, as well as to the Saudi and Jadwa Investment, citing off icial tional rail network in the Ara- Sullivan, has suff ered from techni- counterparts of the other Gulf coun- cussions, said al-Nuaimi. Oman borders and other parts of the figures. Abian peninsula is unrealistic cal and bureaucratic delays since its tries in Doha in late 2015 to re-think A sustained slump in oil prices has UAE including downtown Dubai and “The recent reform to energy and the six Gulf countries will meet in announcement last decade, with the the timetable. dragged the fi nances of governments in Abu Dhabi. prices meant that housing and Riyadh next month to discuss a more completion date already shifted to 2018 “We’ve asked the ministers to come the region into defi cit, prompting them That prompted Oman’s transport utilities and transport were the plausible launch date, the UAE’s infra- from a year earlier, regional media re- up with a realistic programme,” said al- to slow construction plans in some ar- minister to this month warn his coun- main sources of inflation as they structure minister said yesterday. ported in 2013. Nuaimi. eas. try may change its railway plans to accelerated sharply in January,” The 2,100km passenger and cargo Now even that later date appears He said the plans had not been modi- In January, state-backed Etihad facilitate Oman’s seaborne exports, Jadwa said. railway would run from Kuwait down unachievable. fi ed, but declined to comment when Rail suspended a tender to build the rather than using its trains to distribute the Gulf coast and through the UAE to “We know that 2018 is not realis- asked what would be a more realistic 628km second phase of a rail network imports via the Gulf network.

QSE drops below 10,000 despite buy interest

By Santhosh V Perumal Index by 0.31% to 2,680.59 points and ing shrank to QR9.24mn compared to Oil retreat halts Gulf rally Business Reporter the Al Rayan Islamic Index by 0.13% to QR11.96mn on Tuesday. 3,600.04 points. Total trade volume was up 1% to Industrials stocks shrank 0.69%, 9.84mn shares, even as value fell 17% Reuters The Qatar Stock Exchange yesterday followed by transport (0.65%), banks to QR334.83mn and deals by 1% to Dubai retreated below 10,000 levels despite and financial services (0.42%) and 6,037. stronger buying interests in real consumer goods (0.41%); while tel- The insurance sector’s trade estate and telecom stocks. ecom, real estate and insurance rose volume more than quadrupled to ost Middle Eastern stock mar- Foreign institutions turned bearish 0.54%, 0.27% and 0.15% respectively. 0.21mn equities and value grew kets fell yesterday after oil prices and there was increased net selling About 62% of the stocks were in the more than nine-fold to QR15.56mn Mpulled back sharply, interrupting by non-Qatari individual inves- red with major losers being Qatar on more-than-tripled transactions a rally that had been built to a large extent tors as the 20-stock Qatar Index Islamic Bank, Doha Bank, Masraf Al to 209. on hopes that crude had bottomed out. fell 0.85%, or 85 points, to 9,917.52 Rayan, Al Khaliji, Salam International The banks and financial services sec- As Brent crude fell back below $33 a points; even as discussions are hot Investment, Mannai Corporation, tor’s trade volume more than doubled barrel, the Saudi stock index dropped on whether to cut or freeze produc- Gulf International Services, Mesaieed to 2.77mn stocks and value also more 1.3% to 5,942 points, retreating from close tion by major energy producers in Petrochemical Holding, Qatar Insur- than doubled to QR120.97mn on an to technical resistance at the February and the world. ance, United Development Company, 82% jump in deals to 1,763. January peaks of 6,056-6,098 points. There was also marginal increase in Barwa, Mazaya Qatar, Vodafone Qatar The consumer goods sector’s trade The petrochemical sector led the mar- net selling by Gulf individual investors and Milaha. volume more than doubled to 2.13mn ket down with Saudi Basic Industries los- in the bourse, which is down 4.91% However, Ooredoo, Ezdan, Nakilat, shares, value rose 8% to QR47.6mn ing 2.1%. Second-tier speculative stocks year-to-date. Alijarah Holding and Islamic Holding and transactions by 4% to 825. also tumbled. Saudi Paper, which had However, Gulf institutions turned Group were seen bucking the trend. There was a 46% surge in the trans- jumped 8.1% in unusually heavy trade on bullish and there was reduced net Non-Qatari institutions turned net port sector’s trade volume to 0.79mn Tuesday, tumbled 8.1% yesterday. selling by their domestic counter- sellers to the tune of QR11.32mn equities, 37% in value to QR31.94mn Retailing fi rms were weak. Al Othaim parts in the market, where trading against net buyers of QR1.08mn on and 11% in deals to 397. Markets, a supermarket chain, fell 1.9% turnover were on the rise amid fall in February 23. The telecom sector’s trade volume although the board recommended a cash A general view taken on July 19, 2009 shows the headquarters of Saudi Basic Industries volumes. Non-Qatari individual investors’ expanded 38% to 0.58mn stocks, dividend of 2riyals per share for 2015, up Corporation (Sabic) in Riyadh. Sabic shares lost 2.1% yesterday as the Saudi stock index The index that tracks Shariah-princi- net profit-booking strengthened to more than doubling value to from 2014 and above NCB Capital’s fore- dropped 1.3% to 5,942 points. pled stocks was seen dropping slower QR6.7mn compared to QR1.36mn the QR21.85mn and transactions to 717 cast of 1.75 riyals. than the other indices in the market, previous day. respectively. The retail sector may be hurt this year market value, fell 2.8% after adding 2.6% Bahrain’s market outpaced the region, where banking, realty and consumer The GCC (Gulf Cooperation Council) However, the market witnessed a by the erosion of consumers’ purchasing the previous day. The shares went ex-div- rising 1.1% on the back of Ahli United goods stocks together accounted for individuals’ net selling increased 71% plunge in the industrials sector’s power after infl ation spiked in January. On idend yesterday. On Tuesday, Goldman Bank, the country’s biggest listed lender, more than 72% of the total trading to QR3.95mn against QR3.21mn on trade volume to 1.16mn shares, 77% in Tuesday the kingdom’s statistics depart- Sachs raised its recommendation for the which jumped 4.6% after it posted an volume. Tuesday. value to QR45.18mn and 47% in deals ment said consumer price infl ation hit stock to “buy” from “neutral”. 11.1% increase in its fourth-quarter net Market capitalisation fell 0.7%, or However, the GCC institutions to 1,361. 4.3% year-on-year, the highest since the But builder Drake & Scull, which has attributable profi t to $118.0mn. SICO about QR4bn, to QR528.65bn with turned net buyers to the extent of The real estate sector’s trade volume data series began in 2012, after austerity been rebounding in the past few weeks Bahrain had forecast $110.3mn. small and large cap equities melt- QR2.34mn compared with net sellers shrank 17% to 2.2mn equities, value measures in the state budget raised costs from a record low, added a further 2.7%. Egypt’s main benchmark dropped 0.8% ing 1.84% and 1.14%; even as micro of QR8.07mn on February 23. by 24% to QR51.73mn and transac- of electricity, water and gasoline. In Abu Dhabi, the stock index dropped to as Palm Hills Development retreated and mid caps rose 1.23% and 1.17% Local retail investors’ net buying rose tions by 25% to 765. Dubai’s index fell 1.7% to 3,137 points 0.7%. Abu Dhabi Commercial Bank, 3.4% and Global Telecom Holding lost respectively. to QR28.86mn against QR23.49mn In the debt market, there was no trad- as investors booked profi ts close to chart which had surged 2.5% on Tuesday after 4.8%. The Total Return Index was down the previous day. ing of treasury bills and government resistance at the late December peak of Goldman Sachs raised its price target for Elsewhere in the Gulf, Kuwait’s in- 0.26% to 15,630.5 points, the All Share Domestic institutions’ net profit-tak- bonds. 3,189 points. the stock to 8.1 dirhams with a “buy” rat- dex edged up 0.2% to 5,175 points, while Emirates NBD, the largest lender by ing, fell 1.0% to 6.88 dirhams. Oman’s index fell 0.5% to 5,404 points.

Gulf Times 4 Thursday, February 25, 2016 BUSINESS Saudi minister to US oil fi rms: Cut costs or exit the business Bloomberg rebalance markets,” he told the audi- the American energy industry as de- Houston that Saudi Arabia believed All oil producers are being consulted to subsidise higher cost supplies only de- Chicago ence in Houston on Tuesday. clining spending, rising debts and that freezing oil production - as it just determine where and when the meet- lays an inevitable reckoning,” al-Naimi As many as 74 North American pro- layoff s are starting to spread to Main agreed with Russia - would be enough ing will be held, Del Pino said. Ven- said. ducers face signifi cant diffi culties in Street, with the impact spreading from to eventually balance the market. Over ezuela has been lobbying for producers Oman Oil Minister Mohammed he world’s most powerful oil- sustaining debt, according to credit regional banks in Oklahoma to the time, high-cost producers will get out to support prices, with Del Pino cir- Hamed Saif al-Rumhy said Opec and man brought a harsh message to rating fi rm Moody’s Investors Service. economies of cash- strapped Venezue- of the business, and rising demand will cling the globe to drum support. non-Opec producers need to cut oil THouston for executives hoping Shale explorers from Texas to North la and Brazil. West Texas Intermediate, slowly eat up the oversupply, he said. In Houston, al-Naimi faced the very output by 5% to 10% to stabilise the for a rescue from low prices: High-cost Dakota will be “decimated” in coming the benchmark US crude, slipped 30% The International Energy Agency be- same people that Saudi Arabia is try- market. The country is ready to cut producers - many of them sitting in months amid a wave of restructurings last year amid a global glut. lieves that means another two years of ing to put out of business - from North 100,000 bpd as part of any deal, he the room - need to either “lower costs, and bankruptcies, said Mark Papa, the For the oil industry itself, the warn- low prices. Dakota shale and Canadian tar sands said. borrow cash or liquidate.” former EOG Resources Inc chief ex- ing is a sign of more months - and per- The freeze agreement isn’t “cutting to the deepwater fi elds off shore Bra- The harsh medicine advocated by For the thousands of executives at- ecutive offi cer who helped create the haps years - of fi nancial pain. The S&P production. That is not going to hap- zil - who need prices far above current al-Naimi is already aff ecting the well- tending the IHS CERAWeek confer- shale industry more than a decade ago. 500 Oil and Gas index has fallen roughly pen,” al-Naimi said. levels to make profi ts. For the past year head. In North Dakota, production ence, the message from Saudi Ara- The survivors will be more conserva- 60% since mid-2014 to its lowest since Venezuela, Saudi Arabia, Russia and and a half, they have been fi ghting for from the prolifi c Bakken formation bia Oil Minister Ali al-Naimi means tive, Papa, who is now a partner at 2009. The debt of junk-rated US oil Qatar have discussed holding a meet- survival after al-Naimi led Opec into a suff ered its fi rst year-on-year drop in deeper spending cuts, laying off more private-equity fi rm Riverstone Hold- companies is yielding more than 20%, ing in mid-March for Opec and non- price war against high-cost producers a decade in September. In Texas, home roughnecks and idling drilling rigs. ings, said during a panel discussion on the highest in at least 20 years, accord- Opec oil producers that support the in November 2014. He hadn’t spoke in of the Eagle Ford and Permian basins, “It sounds harsh, and unfortunately Tuesday. ing to Bank of America Corp production freeze, Venezuela Oil Min- the US in public since then. output in November fell on an annual it is, but it is the most effi cient way to The message will resonate beyond Al-Naimi told the executives in ister Eulogio Del Pino said on Twitter. “Cutting low-cost production to basis the fi rst time since 2010.

Eyeing more pain, world’s oil bosses try to look past 2016

Reuters Saudi Oil Minister Ali al-Naimi, Houston industry veteran of seven decades, who came to Houston with assurances that it was not the The world’s top oil executives Kingdom’s intention to drive US gathered in Houston this week shale rivals to extinction, struck a seem to agree on one thing: This philosophical note. year is set to be so horrible that “I’ve seen oil at under $2 a barrel many skip right to 2017 and beyond and at $147, and much volatility in to talk about hopes for market between. I’ve witnessed gluts and rebalancing that so far has eluded scarcity. I’ve seen multiple booms the battered industry. and busts,” he told the annual In April 2015, the energy sector’s gathering of some 2,800 energy biggest annual conference was A worker waits to connect a drill bit on Endeavor Energy Resources’ executives and professionals. abuzz with speculation when oil Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas “These experiences have taught prices might bottom and the idea in this photo taken on December 12, 2014. In North Dakota, production me that this business, and this that prices could hover below $60 from the prolific Bakken formation suff ered its first year-on-year drop in commodity, like all commodities, for years after tumbling from over a decade in September. In Texas, home of the Eagle Ford and Permian is inevitably cyclical. Demand rises $100 seven months earlier was basins, output in November fell on an annual basis the first time since and falls. Supply rises and falls. considered a sobering one. 2010. Prices rise and fall.” This time, with prices near $30 and That could not ring more true at a last year’s “lower for longer” catch or two or three or four,” Oxy’s CEO off icer of EOG Resources who conference where just two years phrase replaced by “even lower said. pioneered drilling in shale for ago Chevron CEO John Watson for even longer,” oil executives The industry experienced one such crude oil, said this was the worst declared that $100 a barrel oil attending the IHS CERAWeek false dawn last year when oil prices downturn he has seen since 1986 was there to stay. “$100 a barrel is conference are more solemn and rallied in the second quarter only and one that would “leave bodies becoming the new $20,” he said guarded in their predictions. to give up gains in the second half and companies all over the place.” back then. “This year we are in a survival of the year before tumbling further “I think you will see a much more But whereas executives of big mode,” Juan Carlos Echeverry, chief to fresh lows at the beginning of stable and more balance-sheet players such as Britain’s BP or executive of Colombia’s national this year. focused industry emerge from Canada’s Suncor Energy voiced oil company Ecopetrol told the Now, executives are pinning their the ashes, but it’s going to be confidence that they’ll make it conference on Tuesday. hopes on forecasts that global really, really ugly to get through through this slump like many John Hess, chief executive of Hess oil demand will continue to rise this valley,” said Papa, who is now others, that sense of historical Corp, one of the independent US and eventually eliminate global a partner at private equity firm perspective is a luxury many US shale producers, said the industry oversupply, in part created by the Riverstone Holdings. shale drillers can ill aff ord. appeared to be only halfway US shale drilling boom of the past On Tuesday, Silver Run Acquisition “There seems to be a preoccupation through its downturn. decade. Corp an investment vehicle with ‘When is it going to turn? How “It’s probably a three-year process However, with the International sponsored by Riverstone, raised long is it going to last?,’” said Mark and we’re in the middle of that Energy Agency now predicting $450mn in an initial public off ering Berg, executive vice president rebalancing now,” he said. such rebalancing to start next to fund acquisitions of energy for corporate operations at Stephen Chazen, CEO of year and continue in 2018, the companies seen as available at Pioneer Natural Resources, a large Occidental Petroleum, agreed, chilling message is that many oil discounted prices. Permian Basin operator. “That is but warned that hopes to see the companies, primarily among the US More than 40 US energy companies understandable because there are market rebound can make people shale producers, may not live to see have declared bankruptcy since the a lot of companies facing stress and too optimistic. that recovery. start of 2015, with more expected trying to plan for a very uncertain “Usually you get a false bottom, Mark Papa, former chief executive to come. future.”

‘Opec, other oil producers should act quickly to rebalance market’

Reuters Abu Dhabi

pec and non-Opec producers should act quickly to rebalance the global oil market, otherwise they risk Odeep damage that could take a long time to fi x, a sen- ior Iraqi oil offi cial said yesterday. After a surprise meeting a week ago, Saudi Arabia, Russia, Venezuela and Qatar agreed to freeze production at Janu- ary levels in an attempt to balance the market and boost oil prices that are down some 70% in the last 20 months. Iraq had said it was willing to cooperate but gave no de- tails on whether it would freeze its production. Iran, which is the biggest obstacle to a global deal as it fo- cuses on ramping up output after sanctions were lifted, has said the freeze proposal places “unrealistic demands” on it. Falah Alamri, Iraq’s Opec governor and head of the State Oil Marketing Organisation (SOMO), did not say if Iraq would join other oil producers in the freeze deal but indi- cated that any change in the country’s output plans has to be done jointly with international oil companies who develop its main oil fi elds. “Opec and non-Opec countries should act promptly to rebalance world oil supply and demand or the damage could be deeper and take time to recover,” Alamri told the Argus Middle East Crude Conference in Abu Dhabi. He said the collapse and volatility in oil prices were not related to Iraq’s oil production, which has been growing at a steady pace each year in line with the global demand, and would continue to do so. “Steady moderate yearly increases in Iraq oil production have been in line with the global oil demand,” he said. Iraq’s oil production was 4.775mn bpd in January and the Opec member currently exports “nearly 4mn bpd” includ- ing shipments from the northern Kurdish region, Alamri said. Gulf Times Thursday, February 25, 2016 5 BUSINESS

Delta Lloyd cuts size of planned Exchanges talk marriage, but share issue to $715.65mn nations contemplate divorce

Reuters Bloomberg has become more important as regu- Amsterdam London lations have made the collateral used in trading more expensive. Deutsche Boerse has a sizable futures clearing utch insurer Delta Lloyd wo of Europe’s biggest exchange business while LSE is majority owner yesterday said it would operators are considering mar- of LCH.Clearnet, the world’s biggest Dreduce the size of a Triage even as politicians con- swap clearer. Putting the products un- planned share issue to €650mn template divorce. der one roof would allow customers to ($715.65mn) from €1bn, in a bid London Stock Exchange Group reduce their overall collateral in one to appease shareholders. and Deutsche Boerse said on Tuesday place, saving them money. The process The company said in a state- they’re in talks about a merger that is called cross-margining. ment its solvency under Eu- would create a combined business “Increasingly the clearing, and rope’s new Solvency II rules had worth more than £20bn ($28bn). The whether I have to go to two clear- fallen to 131% at the end of the discussions were confi rmed as British ing houses or go to one super clearing year from 136% at the end of the voters consider whether the country house, will become more important,” third quarter. should remain in the European Union Beattie said. “The synergies for clients It said it expected to boost its ahead of a referendum on membership. could be very signifi cant.” solvency by 45 percentage points The merger would create Europe’s As stock trading has become more via the rights issue and the sale of biggest exchange, giving the region a competitive and less profi table, ex- its 30.5% stake in Van Lanschot champion as exchanges have gone glo- change companies have diversifi ed bank. Chief Executive Hans van bal. The combined company would also into index businesses. Deutsche Boerse der Noordaa said the revised share be able to help customers address rising took full control of index companies issue size followed “months of collateral costs, while the deal would Stoxx and Indexium last year. LSE has analysis” and would bring “clarity strengthen their positions in deriva- an index business called FTSE Russell. to the amount of capital that we tives, equities, indexes and clearing. Those products may also complement need to raise to reposition Delta The exchange industry has long been each other. Lloyd under Solvency II.” marked by dealmaking, with compa- “Indexes have also been a strong Delta Lloyd shares have lost nies such as Intercontinental Exchange growth area for both of these compa- 70% of their value since Noordaa and CME Group growing through ac- The logo of the London Stock Exchange Group is displayed at its headquarters in London. The proposed LSE-Deutsche nies in recent months and quarters, and took the top job last year, as it quisitions. Boerse merger would create Europe’s biggest exchange, giving the region a champion as exchanges have gone global. that’s another area where you could see became apparent the company’s “I think it’s not necessarily about signifi cant revenue and cost synergies,” solvency position under Solven- synergies and cost savings for the ex- Rolet has repeatedly argued that there’s that would ultimately harm customers. of questions,” Goslin said. “If it could said Arjun Bowry, a Bloomberg Intelli- cy II was worse than expected. changes themselves - although they room for only a handful of fi rms to op- Regulators may be warmer to Deut- go through, there are signifi cant ben- gence analyst. When Van Noordaa an- should have them from clearing and erate trading venues, clearing and re- sche Boerse’s plans with LSE this time efi ts for both parties, but we remain It’s not a perfect fi t, however. LSE nounced the €1bn cash call in technology combinations,” said Niki lated services around the globe, and the around, because the groups deal pri- mindful of the challenge.” has been working with banks to launch November, a large minority of Beattie, head of Market Structure UK must ensure one of its companies is marily with diff erent kinds of deriva- An LSE-Deutsche Boerse deal would a derivatives market that would com- shareholders balked, saying the Partners, which advises brokers and among them. tives, said Eric Compton, an analyst at also create a stronger rival to CME pete with Eurex, the derivatives ex- issue was larger than needed and exchanges, in a phone interview. “It’s Regulators will scrutinise the deal Morningstar. Group, the world’s largest derivatives change owned by Deutsche Boerse. The that they would vote against it at more about the opportunity to create between the major exchange groups to “It’s not an automatic no, based on market. That company was formed project, called CurveGlobal, is sched- a shareholders meeting March 16. a European super exchange before one weigh whether it will limit competi- the commission’s previous statements by the Chicago Mercantile Exchange’s uled to go live before the end of June. Over the past two years, Delta of the US exchanges or Hong Kong Ex- tion. Exchanges tend to be symbols of on the NYSE and Deutsche Boerse 2007 acquisition of the Chicago Board The chief executive offi cers of the Lloyd’s CEO, CFO and chairman changes & Clearing take that opportu- national pride, which could make EU merger,” Compton said. of Trade. Then a year later, CME bought companies, both of whom have Wall have all left the company amid nity away.” approval more fraught. Britain’s possible exit from the EU, the New York Mercantile Exchange. Street backgrounds, are willing deal clashes with the Netherlands’ LSE Group Chief Executive Offi cer The European Commission squashed dubbed Brexit, could add an addition- Shareholders reacted positively to makers. LSE’s Rolet has bought an Central Bank which has been the Xavier Rolet, along with 35 other chair- Deutsche Boerse’s attempt to take over al layer of uncertainty, said Jonathan the prospect of a deal. LSE’s stock index provider and expanded into quickest and toughest among men or CEOs of the UK’s biggest com- the NYSE Euronext in 2012, saying it Goslin, an analyst at Numis Securities jumped 14% to 2,630 pence in London, clearing, while Deutsche Boerse boss European regulators in imple- panies, signed a letter to The Times this would lead to a “near-monopoly” in in London. “If you came to a Brexit sce- their biggest rally since 2008. Deutsche Carsten Kengeter spent $1.5bn in his menting Solvency II. week urging Britons not to leave the EU. European exchange-traded derivatives nario, it would raise a serious number Boerse climbed 3.2% to €78.80. Scale fi rst 60 days in charge of Eurex.

CORPORATE RESULTS Airbus net profits soar 15% to $3bn on rising aircraft orders

Slovakia would hurt the company’s profitability in December, after climbing 4.7% in the previous quar- entered the project,” Chief Financial Off icer Tim 2016 and beyond. However, he kept the company’s ter. The government now expects economic growth Weller said in a media call. earlier estimate for an impact from changes to of 4-4.5% this year, down from an earlier projection Weller said unit labour costs in the UK were much Polish legislation at about £30mn ($41.94mn). of 5%. For the first half of the financial year Sime higher than in the company’s core markets, and The lender said in December it was evaluating Darby recorded a 601.7mn ringgit net profit, down that Petrofac would not again take on a fixed-price alternative business models for Slovakia after the 36% from the previous six months. project similar to Laggan Tormore. country amended its consumer legislation, which The multinational said it expects to face major He added that the company had cut about 150-160 was expected to hit its business there. challenges on the back of an economic slowdown, jobs in the UK and reduced headcount by the “low IPF had warned in December it expected a hit to particularly in China. hundreds” across the world. Petrofac reported a its Slovak business from the proposed consumer Iberdrola net profit of $440mn for the year ended December legislation amendments. 31 2015, before accounting for the Laggan Tormore CEO Ryan said he was confident that the company Spanish utility Iberdrola said yesterday it would project, compared with a net profit of $581mn a would be able to achieve growth in home credit target a growth rate in core earnings of 6% over year earlier and above a company-compiled con- products and digital product off erings outlined the next five years and would increase its dividend sensus $435mn. earlier. At least two analysts covering the company in line with that trend as it continues to expand Peugeot maintained a positive outlook about the company’s internationally. future profitability and kept their “buy” rating on Europe’s biggest power company by market value France’s biggest automobile maker PSA Peugeot the stock. said it would target investment in the US and Britain Citroen said yesterday it moved back into the black IPF said yesterday its full-year pretax profit before as part of a new strategic plan, at the same time as in 2015 with a net profit of €1.2bn ($1.4bn) after a exceptional items fell 6% to £116.1mn ($162.5mn), its rivals in the energy business limit their expan- successful restructuring and on higher demand, but was ahead of analysts’ average expectation of sion objectives. Iberdrola posted core earnings or two years after it almost went to the wall. £115.92mn. EBITDA of €7.3bn ($8bn), almost 5% above a year Europe’s second biggest carmaker revealed a 5.7% RBC earlier but slightly missing analysts’ forecasts in rise in sales to €56.3bn as it said it would unveil its a Reuters poll. The company also said it aimed to new “strategic sustainable growth plan” on April 5. Royal Bank of Canada reported a lower-than-ex- invest €24bn ($26bn) between 2016 and 2020, The results are a turnaround for a group which pected quarterly profit yesterday, hurt by weakness mostly in networks and renewable energies. posted a €555mn loss in 2014. Airbus Group said yesterday its net profits climbed average analyst estimate of $5.16. Wal-Mart Stores, in its insurance and capital markets businesses, but As Iberdrola gets more exposed to its regulated “Peugeot posted a substantially better operating 15% last year and predicted deliveries of more than Target’s biggest rival, reported sales below market it raised its quarterly dividend. business, chiefly made up of its renewable energy performance in 2015 which demonstrates a sig- 650 aircraft in 2016 and a rise in orders to record estimates last week, hurt by falling food prices and Canada’s second-largest lender by assets is also and grids sectors and which account for 75% of nificant improvement of its business in our view,” levels. The France-based European aerospace slugglish demand for clothes as well as a strong showing increasing signs of pain from the oil price core profit, its dividend becomes a more important S and P said in a statement, published only hours group chalked up a net profit of €2.7bn ($3.0bn), dollar. crash and economic slowdown in Western Canada. part of its strategy to please investors. after the company’s earnings report. with sales up 6.0% to €64bn. Unlike Wal-Mart, Target has no international opera- Both bad loans and provisions for credit losses Petrofac Buoyant European demand led the way although Orders soared to €159bn, sending its order book to tions since its failed foray into Canada. jumped in the first quarter ended on January 31. 2014 saw China become the group’s biggest car a record of more than €1tn. “Given the toughness of the market and the much Gross impaired loans in the oil and gas sector British oilfield services company Petrofac said its market, outstripping France. Earnings before interest and tax edged higher to worse performance from Walmart and department almost doubled to C$310mn ($224.04mn) from the full-year revenue grew 10% and that its order book PSA said yesterday that it had exceeded several tar- €4.1bn from €4.07bn a year earlier, excluding one- store rivals, the comparable sales uplift is very previous quarter. Bad energy-sector loans were stood at record levels at the end of the year, send- gets, operating margin notably hitting 5%, exceed- time items, said the group, which announced its respectable,” Neil Saunders, chief executive of C$5mn in the year-earlier period. ing shares up more than 12% yesterday. ing a projected two which had been forecast for results in London. Based on the strong results, the research firm Conlumino, wrote in a note. Provisions for credit losses tied to the energy sector Petrofac said most of the $20.7bn backlog came 2018. PSA, which makes the Peugeot, Citroen and group proposed a dividend to shareholders of €1.30 Bouygues reached C$106mn from none recorded a year ear- from its core Middle Eastern markets. DS brands, is the number one French carmaker with per share, up 8.0% from the previous year. lier. First-quarter net income dipped to C$2.45bn, “The pipeline appears strong, although we have 2.97mn units produced last year as the group came “We remain focused on programme execution and An improved performance from its telecoms busi- or C$1.58 per share, from C$2.46bn, or C$1.65 per concerns that it may be much weaker if further out of the 2008-2013 crisis in the European car managing the challenges we face with the accelera- ness helped French conglomerate Bouygues beat share. Excluding special items, earnings were contracts are deferred/cancelled as a result of the industry which led the group in 2014 to require a tion of the A350,” CEO Tom Enders. 2015 operating profit forecasts, strengthening its C$1.64 per share. Analysts on average had expected continuing low oil price environment” analysts at bailout from the French state and China’s Dongfeng “The company broke even on production of the hand in merger talks with larger rival Orange. C$1.67, according to Thomson Reuters I/B/E/S. Cenkos Securities said. Petrofac recorded a $431mn Motor Corp, who both took a 14-percent stake. A380 superjumbo for the first time, and will restore Chief Executive Martin Bouygues said yesterday Profit at RBC’s insurance division dropped 29% due loss in 2015 on the Laggan Tormore project in the A restructuring plan dubbed “Back in the Race” was output of the older A330 wide-body to seven planes that discussions about a possible sale of Bouygues to higher claim costs, while earnings from capital North Sea, hurt by higher costs and bad weather. designed to return the carmaker to the forefront of a month” from six currently. Telecom, France’s third-biggest mobile phone markets slipped 4%. “We underestimated those challenges when we the industry in Europe. Demand for the latter remains resilient with 136 operator, to market leader Orange were continuing Sime Darby orders across 2015 even alongside the transition and that Bouygues aimed to get a stake of at least to the new A330neo new engine option wide body 10% in Orange under a future deal. Malaysia’s Sime Darby Bhd, the world’s biggest twin engine. Orange has been in talks since early January to buy listed palm oil producer, yesterday announced a Target Bouygues Telecom for about €10bn ($11bn) in cash 38% plunge in second-quarter profit due to weak and shares in a deal that would make Bouygues commodity prices and China’s slowdown. Target Corp’s quarterly comparable sales beat ana- the biggest shareholder in Orange after the French The firm said net profit for the three months ended lysts’ estimates, helped by higher traff ic and strong government. December 31 was 273.3mn ringgit ($64.6mn), demand for goods in its higher-margin signature Bouygues Telecom’s earnings before interest, tax, compared to 437.4mn ringgit in the same quarter categories, which include apparel, products for depreciation and amortisation (EBITDA) came in last year. children, and health and wellness items. at 752mn euros in 2015, in line with the company’s But Sime Darby, which is also involved in property The retailer, whose shares were up 1.2% at $74.89 in goal for about 750mn, and up from 694mn in 2014. and the industrial and hospital sectors, also said early trading yesterday, also forecast a higher-than- Sales rose 2% to 4.505bn euros and Bouygues quarterly revenue rose 10.3% year-on-year to expected adjusted profit for the full year. Telecom confirmed its long-term targets for sales 11.83bn ringgit. Earnings in the plantation division Target reported a net profit of $1.43bn, or $2.32 per and profit growth. suff ered from lower palmoil prices and declining share, compared with a loss of $2.64bn, or $4.10 per IPF fresh fruit production, “coupled with a signifi- share, a year earlier. cantly more challenging business environment”, Excluding items, the retailer earned $1.52 per share, Consumer credit lender International Personal Mohamad Bakke Salleh, president and group chief below the average analyst estimate of $1.54, as it Finance’s full-year pretax profit edged past expecta- executive, said in a statement. spent more on promotions. tions as its digital unit and credit business in Mexico Sime Darby’s shares dipped 4.02% to 7.64 ringgit. Total sales fell 0.6% to $21.63bn. Analysts had ex- grew, but regulatory worries in eastern Europe Plunging prices of oil and other commodities have pected sales to remain flat at $21.75bn, according to pulled its shares down sharply. hurt Malaysia’s growth prospects and government Thomson Reuters I/B/E/S. Target forecast a full-year IPF Chief Executive Gerard Ryan reiterated an ear- revenues. The economy grew a slower than expect- adjusted profit of $5.20-$5.40 per share, above the lier warning that regulatory changes in Poland and ed 4.5% year-on-year in the three months through Gulf Times 6 Thursday, February 25, 2016 BUSINESS

EM assets remain Asian markets slump as under pressure

Reuters sentiment turns weak London

AFP Tokyo he prospect of more mon- etary policy easing pushed Tthe Hungarian forint low- sian stocks mostly slumped yes- er yesterday and fuelled a sharp terday as sentiment was dragged tumble in bond yields, while the Adown by a renewed drop in oil rand also slipped before what is prices and a resurgent yen sucked the seen as a make-or-break budget air out of the Japanese market. for South Africa. In Tokyo, the Nikkei 225 fell 0.85% Weaker crude prices brought at 15,915.79 points; Shanghai – Com- renewed pressure on most other posite up 0.88% at 2,928.90 points and emerging assets after top ex- Hong Kong - Hang Seng down 1.15% to porter Saudi Arabia ruled out 19,192.45 points at the close yesterday. production cuts and industry Crude weakened after Iran’s oil min- data showed a further build in ister called a proposal by Saudi Arabia US crude stocks. and Russia to freeze production “ridic- MSCI’s emerging equity index ulous”, as it seeks to boost output after fell for the second day straight years of sanctions-constrained sales. after 6% gains over the previ- Saudi Arabia has ruled out a cut in ous week. While Chinese main- production. land shares closed higher, Hong Analysts warned that current market Kong-listed H-shares slumped turmoil was unlikely to ease in the short more than 1%. term. Dubai, Saudi and Qatari stocks “It will take some time before mar- fell around 1% while Russian ket sentiment does turn,” Kerry Craig, shares tanked 1% and the rouble global market strategist at JPMorgan slipped 0.4% to the dollar. Asset Management, told Bloomberg TV The forint fell 0.8%, retreating in Melbourne. further from recent nine-month “It’s still very pessimistic. Most in- highs against the euro after the vestors are very risk-averse. You need central bank fl agged more policy catalysts or triggers such as an oil price Traders work at the Hong Kong Stock Exchange. The Hang Seng closed down 1.15% to 19,192.45 points yesterday. easing ahead. stabilisation, clarity about what the Hungarian bonds rallied af- Fed is actually going to do and what we level since December 2014, and Wall Traders, meanwhile, were betting reversing losses from earlier in the day, duced monetary leeway. Japan and the ter yesterday’s statement and see happening with the Chinese cur- Street fell more than 1% on Tuesday. the US Department of Energy’s weekly on expectations of economic reform eurozone have already seen negative yields fell again around 10 ba- rency and economic data.” The price of oil continued to sink petroleum inventories report Wednes- pledges at an upcoming annual meet- interest rates. sis points across the curve after The pound touched a seven-year yesterday, with US benchmark WTI for day would show another increase in US ing of lawmakers. “A lot of people have been want- central banker Marton Nagy said low on worries that Britain may vote April delivery down 2.51%. Brent, also crude stockpiles. Hong Kong ended more than 1% ing to see increased global coordina- he could not exclude cutting the to leave the European Union, as Prime for April, lost 1.59%. “There won’t be a pact on output, down, on the day its fi nancial secretary tion coming from the G20 given that bottom of the interest rate corri- Minister David Cameron ramps up his “Iran and Saudi Arabia are show- there’s no possibility of that occurring John Tsang described the economic central banks in the Western world dor into negative territory. bid to stay inside the 28-nation bloc. ing little desire to lower production, because there are insuffi cient levels of outlook as “far from promising”. He at least seem to be approaching some “Yesterday’s meeting Sterling dropped as low as $1.3965, so despite the agreement by the main trust,” Michael McCarthy, a chief strat- forecast growth for 2016 at between kind of limit to monetary policy,” said strengthens our view that the its lowest since March 2009. countries to freeze output it’s clear that egist at CMC markets in Sydney, told one and 2%, down from last year’s Martin Enlund, chief analyst at Nordea central bank will cut rates from Asian bourses tracked losses in glo- alone won’t push oil prices back up to Bloomberg News. 2.4%. Markets in Stockholm, according to 1.35% to 1% by mid-year; we see bal markets, with Tokyo stocks weighed $50 or $60 a barrel,” said Chihiro Ohta, “The market is still in surplus and Seoul fell 0.09% while Sydney plum- Bloomberg. the forint at 325 by year-end,” down by the strength of the yen which general manager of investment infor- will remain that way for some time.” meted more than 2%. Europe’s main stock markets fell Commerzbank analysts said. is seen as a safe-haven asset. mation at SMBC Nikko Securities. With oil depressing the outlook, To- Ahead of a meeting of G20 fi nance once more at the start of trading on The currency is trading at 310 US and European markets had been “There are no catalysts to purchase kyo shares fell for a second day, ending ministers’ and central bank chiefs Wednesday but losses were far less per euro at present. battered on Tuesday after a closely- stocks now. We’re not seeing buy- 0.85% down as the renewed strength of starting on Friday in Shanghai, there acute than the previous session. Analysts at JPMorgan sug- watched report rated German business ing ahead of the G20 either,” Ohta told the yen weighed on exporters. have been calls for increased fi scal sup- London dipped 0.2%, Frankfurt gested the central bank would confi dence in February at the lowest Bloomberg News. But Shanghai closed almost 1% up, port as authorities grapple with re- dropped 0.2% and Paris lost 0.1%. home in on the front-end of the yield curve. It has already cut the amounts that can be placed in short-term deposits with it, and many believe this will be ex- Sensex drops further; rupee closes marginally higher tended. “The potential easing op- tion of limiting amounts that Bloomberg they have been net sellers on all but one the most in at least 22 years on could be placed on three-month Mumbai of the past 15 days, data compiled by Tuesday. Balrampur Chini Mill and Bajaj deposit at the central bank Bloomberg show. Hindusthan Sugar both climbed the could be particularly eff ective The government will also unveil the most in a week. EID Parry added 1.7%. in pushing short-end implied Indian stocks tumbled for a second railway budget on Thursday and the Prices rose after the International Sugar yields lower and instigating a day as investors refrained from taking economic survey, a summary of the Organisation increased its forecast considerable sell-off in forint,” new bets before next week’s federal various policy initiatives over the last for an output deficit in the current JPM wrote. budget and as losses in Asian equities year, on Friday. The expiry of monthly crop year on rising concern about the Investors in South Africa are deepened. derivative contracts, which is often impact of the El Nino weather pattern watching to see what cost-cut- NTPC fell for a third day after the preceded by an increase in volatility, is on supplies. ting, revenue-raising measures government sold shares in the top also tomorrow. Meanwhile the rupee yesterday closed Gordhan can unveil to ward off power producer at a discount. Bharat Bharat Heavy Electricals tumbled 5.1%, little changed against the US dollar as the threat of the sovereign rating Heavy Electricals, the biggest power- extending this year’s loss to 45%. HDFC traders avoided taking huge positions tumbling into junk. equipment maker, plunged to a 10-year Bank retreated 2.1%. The stock has ahead of the Union budget, scheduled The rand is trading just off low. HDFC Bank is heading for its worst dropped 9.6% in February, heading for to be presented on February 29. The two-month highs versus the monthly loss in four years. ITC, India’s its worst month since November 2011. rupee is just 0.4% away from its all-time dollar, while stocks pulled back biggest cigarette company, fell to a ICICI Bank decreased 2.6% to its lowest low of 68.85, hit on August 28, 2013. 1.3%. 30-month low. level since February 2014. State Bank The currency closed at 68.56, up 0.03% A commitment to fi scal con- The S&P BSE Sensex plunged 1.4% The rupee closed at 68.56 yesterday, up 0.03% from its previous close of India lost 1.4%, extending this year’s from its previous close of 68.59. The local solidation is also expected to to 23,088.93 at the close in Mumbai. decline to 30%. currency opened at 68.63 a dollar and help the South African bond Investors are looking ahead to key about global cues, corporate earnings in American equities rose for the first ITC slid 2.1%, taking this month’s decline touched a high and a low of 68.49 and curve to fl atten further, driving events over the next few days, including and fundamentals,” Daljeet Singh time in seven sessions as the swing to 10%, set for its worst since the period 68.64, respectively in intraday trade. down longer-dated yields. Ten- Finance Minister Arun Jaitley’s budget Kohli, head of research at India Nivesh back to losses reminded investors of the October 2008. Tata Motors, owner of Since the beginning of this year, the and 15-year yields have already for the financial year starting April 1 on Securities, said in an interview with sense of uncertainty that has persisted Jaguar Land Rover, decreased the most rupee has lost 3.5%, while foreign fallen about 20 basis points this Monday. Appetite for equities continued Bloomberg TV India. “Unfortunately, in global markets since the start of the since February 16. Oil & Natural Gas institutional investors have sold $2.31bn month. to sour in Asia as oil’s drop and a revival there’s no positive news on any of year. The risk that UK citizens will vote Corp, the largest state-owned explorer, from local equity and $414.7mn in bond Ukraine’s hryvnia currency in demand for low-risk assets saw those.” to leave the European Union in June is slid 2.4%, ending a five-day, 7.3% markets. slipped further, staying close to stocks from Japan to Australia decline Oil’s retreat is weighing on global stocks weighing on the British currency. advance. The yield on India’s 10-year benchmark one-year lows. with emerging-market currencies. along with concerns about growth Overseas investors bought a net Sugar mills’ shares bucked the bond closed at 7.825% against Tuesday’s Earlier in Asia, Singapore “The budget impact will last a few in China, the world’s second-biggest $118.2mn of Indian stocks on Tuesday, downtrend in the broader market close of 7.822%. Bond yields and prices posted better-than-expected days, after which we will start talking economy. A gauge of expected volatility paring this year’s outflow to $2.3bn. Still, after global raw-sugar prices surged move in opposite direction. fourth quarter growth fi gures, allowing the dollar to rally 0.2%. Asia hedge funds top rankings as Jiang smells opportunity

Bloomberg tend their slump and the central bank fund fi nished fourth. Golden China, a said Zeng, the partner. Shares of those rebound from distressed levels seen Hong Kong steps up eff orts to stimulate the econ- long-short fund, landed in the seventh companies jumped as earnings beat during the market panic because of omy and control the devaluation of the spot, one place ahead of the Tybourne estimates and mergers among technol- government easing to stimulate an yuan. Equity Fund. ogy companies boosted investor senti- economy. The country’s economy is hinese market tumult has been In January, Golden China lost Jiang, 48, a former Shenzhen Stock ment. growing at the slowest pace in 25 years. unnerving investors around the 11%, according to data compiled by Exchange offi cial who founded Green- The fund also benefi ted from con- This isn’t Jiang’s fi rst rodeo. Golden Cglobe, but when volatility fl ares Bloomberg, as the Shanghai Com- woods in 2004, took advantage of sumer companies with yuan- and China, whose almost 28% annualized George Jiang, the founder of Shang- posite Index plunged almost 23% and the volatility last year. The Shanghai foreign currency-denominated shares return from inception to December hai-based hedge fund Greenwoods gauges of Hong Kong- and US-listed benchmark index jumped almost 60% listed in China, such as jewellery mak- 2015 was more than twice that of the Asset Management, smells opportu- Chinese stocks also had double-digit in the fi rst fi ve-and-a-half months of er and retailer Lao Feng Xiang Co and MSCI China Index, recorded two an- nity. declines. It’s the kind of volatility that last year before plunging as much as spirits producer Kweichow Moutai, nual losses out of 11 full years of trad- In 2015, the most tumultuous year Jiang has navigated many times before. 43% over the next three months. Zeng said. Golden China gained 14% in ing. In 2008, the fund declined almost in Chinese equities in a decade, Jiang’s “We watched the market closely After Golden China lost more than the fi nal quarter of the year. 56% amid the global credit crisis. In- Golden China Fund returned almost when it tumbled but we were never 8% in both July and August, at the “We remain a fundamental investor vestors fl ed, cutting its assets from an 22%. It joins three other Asia-based panicky,” said Jiang, who has a master’s height of the China stock selloff , Jiang and value investor,” Jiang said. October 2007 high of $810mn to one- funds near the top of Bloomberg’s degree in international fi nance from Jiang: Taking full advantage of added to holdings of Chinese Inter- Greenwoods looks for “unicorns tenth of that size by February 2009. ranking of the 50 best-performing the Graduate School of the People’s mistakes in the market. net companies such as Sina Corp and with wings amid a panic market,” he Today, Golden China investors are hedge funds worldwide with assets of Bank of China, the country’s central consumer fi rms like Kweichow Moutai said, referring to high-growth compa- more willing to ride out short-term $1bn or more last year. bank. “The stock market tends to over- tal into the fi rm’s funds in February, Co that he expects to grow in diff erent nies that can weather the business cy- price swings in the Chinese market, The strong performance by Segantii shoot on either the upside or downside said Joseph Zeng, a Hong Kong-based stages of the business cycle. During the cle. “We had identifi ed a few recently, Zeng said. “When investors heard that Capital Management, Sylebra Capi- from time to time. And we want to take Greenwoods partner. The fi rm has year, the fund also sold holdings that such as some companies in the educa- we added to high-conviction stocks tal Management, Greenwoods and advantage of mistakes in the market about $6.5bn in assets under manage- had become expensive. tion business and health-care sector. after they fell a lot, and the ration- Tybourne Capital Management (HK) when that occurs.” ment. Helped by the fourth-quarter re- Also we added to some core holdings” ale, most of them understood and felt shows that the industry has matured in While most international institu- The Segantii Asia-Pacifi c Equity bound of the American depository re- after thorough due diligence “and be- comfortable,” he said. Asia, where a number of billion-dollar tions that Greenwoods has met with Multi-Strategy fund, managed by a ceipts of Chinese Internet companies, lieve they are fundamentally strong.” The fund, which started 2015 with fi rms started after the 2008 fi nancial are cautious or pessimistic about Chi- fi rm started in 2007, returned almost the fund booked double-digit returns Greenwoods managers told inves- $1.4bn, drew hundreds of mns of net crisis. These managers are being tested na, a US endowment and several family 30% to take third place in the rank- during the year from Ctrip.com In- tors in its November newsletters that infl ows last year, mostly in the fi rst again this year as Chinese stocks ex- offi ces were planning to put more capi- ing. Sylebra Capital Partners Master ternational, Sina and Youku Tudou, Chinese companies’ valuations will half, Zeng said. Gulf Times Thursday, February 25, 2016 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 5.80 1.75 522,441 Boubyan Intl Industries Hold 28.50 3.64 9,658,267 Areej Vegetable Oils 5.51 0.00 - Solidarity Saudi Takaful Co 7.03 0.57 1,239,374 Gulf Investment House Ksc 20.50 2.50 2,066,126 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 6.85 0.74 835,816 Boubyan Bank K.S.C 390.00 1.30 947,807 Al-Omaniya Financial Service 0.31 0.00 - Alabdullatif Industrial Inv 17.43 2.35 1,723,019 Ahli United Bank B.S.C 200.00 1.01 1,024,640 Al-Hassan Engineering Co 0.07 -2.86 21,080 Saudi Printing & Packaging C 21.55 9.95 7,158,693 Osos Holding Group Co 90.00 2.27 1 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 100.00 0.00 5,000 Al-Anwar Ceramic Tiles Co 0.28 0.00 - Saudi Paper Manufacturing Co 14.64 7.73 8,122,267 Qurain Petrochemical Industr 174.00 0.00 8,082 Al Suwadi Power 0.20 0.00 - Alinma Bank 13.26 0.61 56,654,559 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 64.68 2.23 276,526 Ekttitab Holding Co Sak 28.00 0.00 760,134 Al Sharqiya Invest Holding 0.11 1.90 20,000 Falcom Saudi Equity Etf 22.50 0.45 204,918 Kout Food Group Ksc 570.00 0.00 60,500 Al Maha Petroleum Products M 1.72 0.00 - QATAR United International Transpo 36.80 1.94 204,170 Real Estate Trade Centers Co 34.00 0.00 4,100 Al Maha Ceramics Co Saoc 0.42 2.44 142,134 Hsbc Amanah Saudi 20 Etf 21.70 0.00 - Acico Industries Co Kscc 280.00 3.70 1,100 Al Madina Takaful Co Saoc 0.07 0.00 355,350 Company Name Lt Price % Chg Volume Saudi International Petroche 12.97 2.21 390,558 Kipco Asset Management Co 108.00 0.00 10 Al Madina Investment Co 0.06 1.64 430,700 Falcom Petrochemical Etf 17.30 0.00 - National Petroleum Services 640.00 0.00 2,000 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 71.40 -2.86 129 Saudi United Cooperative Ins 8.41 2.44 1,736,528 Alimtiaz Investment Co Kscc 75.00 0.00 3,100,568 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 46.70 -1.27 5,998 Bank Al-Jazira 13.03 1.09 4,411,669 Ras Al Khaimah White Cement 95.00 0.00 8 Al Jazeera Steel Products Co 0.15 2.05 266,082 Vodafone Qatar 10.44 0.00 352,626 Al Rajhi Bank 53.95 0.30 2,078,856 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Jazeera Services 0.29 3.93 188,460 United Development Co 22.18 1.05 952,882 Samba Financial Group 20.63 1.13 346,824 Kuwait & Gulf Link Transport 41.00 0.00 63,500 Al Izz Islamic Bank 0.06 -1.69 289,224 Salam International Investme 12.55 0.72 581,904 United Electronics Co 25.47 4.04 2,317,316 Human Soft Holding Co Ksc 750.00 5.63 45 Al Buraimi Hotel 0.88 0.00 - Islamic Holding Group-Rts 0.00 0.00 - Allied Cooperative Insurance 13.52 1.50 2,182,049 Automated Systems Co Kscc 295.00 0.00 31,640 Al Batinah Power 0.20 0.00 100 Qatar & Oman Investment Co 11.31 0.00 72,669 Malath Cooperative & Reinsur 13.46 1.05 1,166,298 Metal & Recycling Co 57.00 0.00 10 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 98.00 3.27 137,785 Alinma Tokio Marine 19.32 3.54 4,039,065 Gulf Franchising Holding Co 31.00 0.00 500 Al Batinah Dev & Inv 0.07 0.00 20,000 Qatar National Cement Co 81.70 -0.73 30,925 Arabian Shield Cooperative 21.56 0.00 551,647 Al-Enma’a Real Estate Co 52.00 -1.89 217,000 Al Anwar Holdings Saog 0.18 -0.55 760,624 Qatar National Bank 138.00 0.36 96,312 Savola 39.45 -0.38 198,107 National Mobile Telecommuni 1,140.00 -3.39 2,268 Ahli Bank 0.18 0.00 - Qatar Islamic Insurance 66.60 0.45 8,301 Wafrah For Industry And Deve 23.92 2.93 2,197,521 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.62 0.00 - Qatar Industrial Manufactur 40.90 -1.21 19,000 Fitaihi Holding Group 15.95 5.07 707,779 Housing Finance Co Sak 26.00 4.00 4,722,517 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 68.50 0.74 108,959 Tourism Enterprise Co/ Shams 37.03 2.04 1,729,295 Al Salam Group Holding Co 30.50 1.67 514,210 A’saff a Foods Saog 0.86 0.00 - Qatari Investors Group 39.30 9.93 429,531 Sahara Petrochemical Co 8.21 1.36 4,033,711 United Foodstuff Industries 96.00 0.00 1 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 99.00 -1.00 31,992 Herfy Food Services Co 68.48 -1.00 265,057 Al Aman Investment Company 57.00 0.00 1,140,000 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 23.69 1.41 381,195 Mashaer Holdings Co Ksc 95.00 0.00 3,000 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 51.00 -3.77 10,440 Manazel Holding 18.50 0.00 259,000 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 10.51 -0.38 81,141 Mushrif Trading & Contractin 71.00 1.43 295,591 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 164.50 1.54 116,281 KUWAIT Tijara And Real Estate Inves 39.50 0.00 45 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 199.60 -0.20 32,579 Kuwait Building Materials 0.00 0.00 - #N/A Invalid Security 0.00 0.00 - Qatar Cinema & Film Distrib 28.25 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 820.00 2.50 373,814 #N/A Invalid Security 0.00 0.00 - Qatar Insurance Co 88.50 0.00 - Commercial Real Estate Co 77.00 0.00 68,750 Ooredoo Qsc 87.30 0.46 63,543 Securities Group Co 82.00 0.00 24,701 Future Communications Co 100.00 1.01 46,000 National Leasing 12.41 0.89 210,834 Sultan Center Food Products 61.00 -1.61 34,000 National International Co 47.00 -5.05 293,750 Mazaya Qatar Real Estate Dev 11.81 0.51 266,846 Kuwait Foundry Co Sak 210.00 0.00 2,934 Taameer Real Estate Invest C 20.00 -4.76 100,000 UAE Mesaieed Petrochemical Holdi 18.00 1.12 200,498 Kuwait Financial Centre Sak 85.00 0.00 10,000 Gulf Cement Co 73.00 0.00 60,000 Al Meera Consumer Goods Co 196.50 2.66 37,830 Ajial Real Estate Entmt 138.00 0.00 800 Heavy Engineering And Ship B 146.00 1.39 95 Company Name Lt Price % Chg Volume Medicare Group 92.90 1.09 98,871 Gulf Glass Manuf Co -Kscc 470.00 0.00 833 Refrigeration Industries & S 320.00 0.00 4,714 Mannai Corporation Qsc 104.20 6.44 172,648 Kuwait Finance & Investment 32.00 3.23 16,000 National Real Estate Co 91.00 1.11 200,050 Waha Capital Pjsc 2.15 2.87 2,652,867 Masraf Al Rayan 36.90 0.00 - National Industries Co Ksc 230.00 0.00 508 Al Safat Energy Holding Comp 9.00 0.00 5,738,549 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.55 0.00 - Kuwait Real Estate Holding C 21.00 0.00 39,990 Kuwait National Cinema Co 1,120.00 0.00 10,000 United Arab Bank Pjsc 4.30 0.00 - Industries Qatar 109.50 2.34 626,795 Securities House/The 34.50 7.81 6,760,377 Danah Alsafat Foodstuff Co 69.00 0.00 25,000 Union National Bank/Abu Dhab 3.60 0.56 1,369,970 Islamic Holding Group 56.50 9.92 223,891 Boubyan Petrochemicals Co 445.00 0.00 139,260 Independent Petroleum Group 320.00 0.00 24,576 Union Insurance Co 1.21 0.00 - Gulf Warehousing Company 45.50 8.59 21,868 Al Ahli Bank Of Kuwait 345.00 0.00 110,000 Kuwait Real Estate Co Ksc 47.00 0.00 1,410,000 Union Cement Co 1.20 0.00 8,108 Gulf International Services 34.70 -1.42 2,222,761 Ahli United Bank (Almutahed) 435.00 1.16 85,316 Salhia Real Estate Co Ksc 330.00 0.00 367,250 Umm Al Qaiwain Cement Indust 0.90 0.00 - Ezdan Holding Group 14.58 1.25 426,297 National Bank Of Kuwait 730.00 2.82 2,043,674 Gulf Cable & Electrical Ind 340.00 0.00 16,390 Sharjah Islamic Bank 1.41 -2.76 295,544 Doha Insurance Co 19.50 1.83 21,099 Commercial Bank Of Kuwait 530.00 0.00 105,945 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 42.50 3.66 276,846 Kuwait International Bank 194.00 1.04 642,865 Kuwait Finance House 495.00 2.06 6,056,442 Sharjah Group 1.50 0.00 - Dlala Holding 13.10 -1.28 125,013 Gulf Bank 202.00 -0.98 11,000 Gulf North Africa Holding Co 30.00 0.00 2,633,693 Sharjah Cement & Indus Devel 1.02 0.00 - Commercial Bank Qsc 43.20 0.47 86,738 Al-Massaleh Real Estate Co 60.00 0.00 1 Hilal Cement Co 134.00 0.00 10 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 37.10 3.63 1,014,859 Al Arabiya Real Estate Co 28.50 -1.72 1,672,922 Osoul Investment Kscc 32.00 0.00 25,000 Ras Al Khaimah White Cement 1.16 0.00 - Al Khaleej Takaful Group 25.00 -1.57 7,751 Kuwait Remal Real Estate Co 31.50 1.61 103,150 Gulf Insurance Group Ksc 700.00 0.00 2,067 Ras Al Khaimah Ceramics 3.40 0.00 164,900 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 2,100.00 0.96 1,129,227 Ras Al Khaimah Cement Co Psc 0.82 0.00 1,404,066 A’ayan Real Estate Co Sak 65.00 6.56 6,434,772 Umm Al Qaiwain Cement Indust 65.00 -7.14 100,000 Ras Al Khaima Poultry 1.99 0.00 - Investors Holding Group Co.K 20.00 2.56 113,075 Aayan Leasing & Investment 41.00 -1.20 162,545 Rak Properties 0.62 0.00 16,583,427 Al-Mazaya Holding Co 108.00 1.89 4,000 Ooredoo Qsc 73.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 1.38 0.00 - Gulf Petroleum Investment 41.00 0.00 2,167,100 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 870.00 2.35 623,150 OMAN 1.08 - City Group 460.00 0.00 21,643 National Marine Dredging Co 4.51 0.00 - National Investor Co/The 0.63 0.00 - United Wire Factories Compan 17.62 0.74 303,231 Inovest Co Bsc 49.50 -1.00 162,450 Company Name Lt Price % Chg Volume Etihad Etisalat Co 23.38 -0.55 427,039 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.81 0.00 - Dar Al Arkan Real Estate Dev 4.63 0.65 15,200,800 Al-Deera Holding Co 26.50 1.92 58,500 Voltamp Energy Saog 0.44 0.00 24,179 National Bank Of Umm Al Qaiw 3.30 0.00 - Saudi Hollandi Bank 24.59 -0.04 135,646 Alshamel International Hold 460.00 0.00 150 United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.48 -2.14 562,000 Rabigh Refining And Petroche 9.25 -0.22 2,676,809 Mena Real Estate Co 19.00 -5.00 32,000 United Power Co Saog 3.43 0.00 - National Bank Of Fujairah 4.79 0.00 - Banque Saudi Fransi 23.85 4.74 126,427 National Slaughter House 64.00 0.00 8,663 United Finance Co 0.13 0.00 - National Bank Of Abu Dhabi 8.13 0.37 118,464 Saudi Enaya Cooperative Insu 9.87 1.86 1,510,520 Amar Finance & Leasing Co 63.00 0.00 500 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.67 -2.90 8,400,140 Mediterranean & Gulf Insuran 17.01 0.95 1,249,374 United Projects Group Kscc 600.00 0.00 9,490 Takaful Oman 0.10 0.00 - Manazel Real Estate Pjsc 0.58 1.75 48,676,501 Saudi British Bank 20.68 0.78 62,993 National Consumer Holding Co 0.00 0.00 - Taageer Finance 0.13 0.00 - Invest Bank 1.62 -1.22 1,839,904 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 18.50 2.78 286,000 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 7.49 -0.13 2,950 Red Sea Housing Services Co 21.34 1.81 1,154,741 Jeeran Holdings 64.00 0.00 3,050 Sohar Power Co 0.35 0.00 30 Insurance House 0.81 0.00 - Takween Advanced Industries 21.10 4.25 4,776,387 Equipment Holding Co K.S.C.C 51.00 0.00 435,000 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Industri 2.45 -5.04 1,044,999 Sabb Takaful 23.85 -2.45 3,975,059 Nafais Holding 136.00 0.00 21,145 Smn Power Holding Saog 0.74 0.00 - Gulf Medical Projects 2.25 0.00 - Saudi Arabian Fertilizer Co 66.86 1.55 631,505 Safwan Trading & Contracting 300.00 0.00 5,000 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.93 -3.13 12,850 National Gypsum 13.06 2.27 2,095,312 Arkan Al Kuwait Real Estate 85.00 -4.49 5,000 Shell Oman Marketing 1.95 0.00 - Fujairah Cement Industries 1.25 0.00 - Saudi Ceramic Co 37.46 -0.37 987,407 Gfh Financial Group Bsc 57.00 1.79 17,236,694 Sharqiyah Desalination Co Sa 4.60 0.00 - Fujairah Building Industries 1.71 0.00 - National Gas & Industrializa 20.38 0.10 54,692 Energy House Holding Co Kscp 29.50 0.00 233,258 Sembcorp Salalah Power & Wat 2.49 -0.20 4,467 Foodco Holding Pjsc 4.05 0.00 - Saudi Pharmaceutical Industr 28.96 0.66 80,670 Kuwait Slaughter House Co 204.00 0.00 334 Salalah Port Services 0.65 0.00 - First Gulf Bank 12.75 0.00 1,225,380 Thimar 34.54 2.89 2,964,620 Kuwait Co For Process Plant 210.00 0.00 15 Salalah Mills Co 1.45 0.00 - Finance House 1.93 0.00 79,287 National Industrialization C 8.74 1.27 6,762,288 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.66 1.54 102,175,098 Saudi Transport And Investme 53.73 2.77 2,002,190 National Ranges Company 17.50 0.00 811,000 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 16.70 0.60 1,803,994 Saudi Electricity Co 14.80 1.44 2,016,760 Al-Themar Real International 80.00 0.00 2,500 Renaissance Services Saog 0.15 6.34 1,789,404 Emirates Insurance Co. (Psc) 6.72 0.00 - Saudi Arabia Refineries Co 34.52 0.61 614,274 Al-Ahleia Insurance Co Sakp 465.00 2.20 15,000 Raysut Cement Co 1.00 -2.44 74,282 Emirates Driving Company 6.25 0.00 - Arriyadh Development Company 18.15 0.22 411,971 Wethaq Takaful Insurance Co 30.00 0.00 17,000 Port Service Corporation 0.13 0.00 - Dana Gas 0.51 0.00 21,711,078 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 67.00 3.08 197,891 Phoenix Power Co Saoc 0.14 0.00 165,630 Commercial Bank Internationa 2.24 0.00 - Saudi Research And Marketing 43.80 9.88 2,995,173 Aqar Real Estate Investments 75.00 0.00 10,500 Packaging Co Ltd 0.48 0.00 - Bank Of Sharjah 1.37 0.00 - Aldrees Petroleum And Transp 39.01 -0.51 230,977 Hayat Communications 44.50 3.49 336,388 Ooredoo 0.70 0.00 103,000 Axa Green Crescent Insurance 1.24 0.00 - Saudi Vitrified Clay Pipe Co 81.09 -0.20 17,869 Kuwait Packing Materials Mfg 340.00 0.00 11,150 Ominvest 0.46 0.00 4,942 Arkan Building Materials Co 0.90 0.00 65,241 Jarir Marketing Co 123.36 0.06 40,235 Soor Fuel Marketing Co Ksc 112.00 0.00 137,795 Oman United Insurance Co 0.24 0.42 1,158,766 Alkhaleej Investment 2.22 0.00 - Arab National Bank 18.77 0.37 80,428 Alargan International Real 188.00 0.00 158,113 Oman Textile Holding Co Saog 0.39 0.52 3,690 Aldar Properties Pjsc 2.49 0.00 5,402,610 Yanbu National Petrochemical 32.65 -0.15 865,948 Burgan Co For Well Drilling 118.00 1.72 2,273 Oman Telecommunications Co 1.58 0.96 230,328 Al Wathba National Insurance 4.35 7.41 35,000 Arabian Cement 45.00 -0.16 271,452 Kuwait Resorts Co Kscc 90.00 -5.26 150,000 Oman Refreshment Co 2.25 0.00 - Al Khazna Insurance Co 0.29 3.57 30,492 Middle East Specialized Cabl 6.80 -2.02 4,869,549 Oula Fuel Marketing Co 110.00 0.00 2,185 Oman Packaging 0.29 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 23.52 6.33 2,020,256 Palms Agro Production Co 112.00 9.80 1,350 Oman Orix Leasing Co. 0.13 0.00 - Al Dhafra Insurance Co. P.S. 4.40 0.00 - Al Sagr Co-Operative Insuran 26.97 2.74 2,332,704 Ikarus Petroleum Industries 82.00 -1.20 27,000 Oman Oil Marketing Company 1.95 0.00 - Al Buhaira National Insuranc 2.43 0.00 - Trade Union Cooperative Insu 13.77 1.32 634,252 Mubarrad Transport Co 60.00 1.69 367,500 Oman National Engineering An 0.21 0.00 - Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 6.30 0.96 754,522 Al Mowasat Health Care Co 210.00 0.00 500 Oman Investment & Finance 0.20 -0.50 688,500 Agthia Group Pjsc 7.40 3.50 1,398,297 Saudi Chemical Company 44.32 1.89 311,067 Shuaiba Industrial Co 420.00 0.00 68,000 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.80 0.00 - Fawaz Abdulaziz Alhokair & C 45.10 1.51 789,329 Hits Telecom Holding 28.00 1.82 1,272,040 Oman Hotels & Tourism Co 0.24 0.00 - Abu Dhabi Natl Co For Buildi 0.41 -2.38 200,000 Bupa Arabia For Cooperative 108.60 2.13 123,428 First Takaful Insurance Co 52.00 0.00 7,010 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 5.30 0.00 - Wafa Insurance 6.64 -0.75 1,045,445 Kuwaiti Syrian Holding Co 34.50 1.47 3,907,380 Oman Flour Mills 0.44 0.00 - Abu Dhabi National Insurance 2.21 1.38 8,450 Jabal Omar Development Co 47.99 0.48 152,199 National Cleaning Company 37.00 0.00 90,601 Oman Fisheries Co 0.06 0.00 70,957 Abu Dhabi National Hotels 2.50 0.00 - Saudi Basic Industries Corp 72.54 -0.52 6,224,482 Eyas For High & Technical Ed 385.00 0.00 20 Oman Fiber Optics 5.26 0.00 - Abu Dhabi National Energy Co 0.45 2.27 125,680 Saudi Kayan Petrochemical Co 4.90 0.20 14,483,933 United Real Estate Company 92.00 1.10 60,000 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.57 0.56 1,552,015 Etihad Atheeb Telecommunicat 4.18 -1.42 7,293,950 Agility 425.00 1.19 467,299 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 71.87 3.02 139,904 Kuwait & Middle East Fin Inv 28.00 3.70 200 Oman Chromite 3.64 0.00 - National Petrochemical Co 13.71 0.73 1,799,708 Fujairah Cement Industries 72.00 -2.70 505,010 Oman Chlorine 0.51 0.00 - BAHRAIN Gulf Union Cooperative Insur 8.33 0.60 1,271,968 Livestock Transport & Tradng 122.00 0.00 20,000 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 13.70 2.54 1,028,671 International Resorts Co 23.50 -2.08 684,005 Oman Cement Co 0.44 0.00 1,000 Basic Chemical Industries 20.91 -2.43 462,750 National Industries Grp Hold 114.00 0.00 780,450 Oman Cables Industry 1.55 0.00 4,936 Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 1.19 Marine Services Co Ksc 0.00 17.81 422,095 114.00 1,810 Oman Agricultural Dev 1.75 0.00 - Zain Bahrain Bscc 0.17 0.00 220,000 Buruj Cooperative Insurance -0.24 Warba Insurance Co 1.85 16.98 882,460 110.00 59,242 Oman & Emirates Inv(Om)50% 0.10 0.00 3,029 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 6.51 Kuwait United Poultry Co 5.26 114.01 26,631 200.00 33,245 Natl Aluminium Products 0.22 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -0.99 First Dubai Real Estate Deve -1.30 67.82 161,630 38.00 165,655 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah 1.32 Al Arabi Group Holding Co 1.67 23.84 903,940 61.00 1,359,100 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.00 0.00 - Yamama Cement Co 0.07 Kuwait Hotels Sak 0.00 28.52 639,081 210.00 6,356 National Pharmaceutical 0.11 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 0.63 Mobile Telecommunications Co 0.00 11.16 994,358 360.00 2,108,568 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.54 Al Safat Real Estate Co 7.35 27.76 768,513 36.50 4,037,016 National Hospitality Institu 2.05 0.00 - Seef Properties 0.19 0.00 125,000 Alujain Corporation (Alco) 4.62 Tamdeen Real Estate Co Ksc 0.00 11.99 2,099,930 560.00 4,914 National Gas Co 0.31 -1.29 11,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -1.08 Al Mudon Intl Real Estate Co 1.79 10.09 1,587,640 28.50 445,079 National Finance Co 0.13 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 0.11 Kuwait Cement Co Ksc 0.00 8.77 701,952 365.00 1,158 National Detergent Co Saog 0.64 0.00 - National Bank Of Bahrain Bsc 0.68 -0.74 121,000 Qassim Cement/The -0.39 Sharjah Cement & Indus Devel 0.00 64.00 236,323 84.00 1,500 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.11 0.00 175,000 Saudi Advanced Industries 3.92 Kuwait Portland Cement Co 0.00 10.34 2,675,956 1,060.00 11,590 National Bank Of Oman Saog 0.27 -1.46 213,631 Khaleeji Commercial Bank 0.07 -1.45 87,383 Kingdom Holding Co -0.44 Educational Holding Group 0.00 11.34 529,043 200.00 50 Muscat Thread Mills Co 0.13 0.00 - Ithmaar Bank Bsc 0.11 0.00 220,000 Saudi Arabian Amiantit Co -0.23 Bahrain Kuwait Insurance 0.00 8.77 1,419,780 0.00 - Muscat National Holding 1.86 0.00 - Investcorp Bank -$Us 6.60 0.00 493,800 Al Jouf Agriculture Developm 0.47 Asiya Capital Investments Co -1.32 23.44 251,814 37.50 447,110 Muscat Gases Company Saog 0.83 0.00 - Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development 3.36 Kuwait Investment Co 0.00 9.54 4,912,641 88.00 63,736 Muscat Finance 0.13 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 69.75 - 335.00 290,000 Majan Glass Company 0.20 0.00 - Gulf Hotel Group B.S.C 0.00 0.00 - Riyad Bank -0.45 Kuwait Projects Co Holdings 0.00 11.10 392,391 550.00 430,000 Majan College 0.52 0.00 - Global Investment House Kpsc 0.00 0.00 - The National Agriculture Dev 0.76 Al Madina For Finance And In 1.69 18.61 2,143,484 30.00 2,095,870 Hsbc Bank Oman 0.10 0.00 - Gfh Financial Group Bsc 0.17 0.00 290,000 Halwani Bros Co 3.28 Kuwait Insurance Co 0.00 68.72 81,574 310.00 10,000 Hotels Management Co Interna 1.25 0.00 - Esterad Investment Co B.S.C. 0.19 0.00 42,033 Arabian Pipes Co 0.44 Al Masaken Intl Real Estate 0.00 9.18 1,347,206 69.00 2 Gulf Stone 0.11 0.00 - Delmon Poultry Co 0.00 0.00 - Eastern Province Cement Co -4.58 Intl Financial Advisors 1.96 32.26 2,113,337 26.00 1,480,922 Gulf Plastic Industries Co 0.39 0.00 - Bmmi Bsc 0.85 0.00 44,000 Al Qassim Agricultural Co 1.31 First Investment Co Kscc 2.27 10.08 1,737,736 45.00 627,501 Gulf Mushroom Company 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Filing & Packing Materials M 1.56 Al Mal In 2.90 34.42 669,523 vestment Company 35.50 5,483,503 Gulf Investments Services 0.09 -2.08 75,000 Bbk Bsc 0.38 0.00 75,000 Saudi Cable Co 2.46 1.61 7.07 3,245,122 Bayan Investment Co Kscc 31.50 1,611,575 Gulf Invest. Serv. Pref-Shar 0.12 0.00 - Bankmuscat Saog 0.00 0.00 - Tihama Advertising & Public 9.10 1.56 38.95 11,512,026 Egypt Kuwait Holding Co Sae 130.00 142,500 Gulf International Chemicals 0.30 -0.66 88,360 Banader Hotels Co ` 0.00 650,820 Saudi Investment Bank/The -0.27 4.29 15.00 114,911 Coast Investment Development 36.50 3,613,876 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Tourism Co 0.23 0.00 18,290 Astra Industrial Group 0.39 2.06 15.36 1,017,404 Privatization Holding Compan 49.50 294,660 Global Fin Investment 0.12 0.00 20,000 Bahrain Telecom Co 0.31 0.00 11,153 Saudi Public Transport Co 3.30 0.00 11.27 4,545,196 Kuwait Medical Services Co 0.00 - Galfar Engineering&Contract 0.06 1.61 3,915,367 Bahrain Ship Repair & Engin 0.00 0.00 - Taiba Holding Co -0.03 -5.75 33.19 18,839 Injazzat Real State Company 82.00 23,486 Galfar Engineering -Prefer 0.39 0.00 - Bahrain National Holding 0.00 0.00 - Saudi Industrial Export Co 2.75 -9.43 49.29 1,085,091 Kuwait Cable Vision Sak 24.00 70,000 Financial Services Co. 0.17 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Real Estate Co 1.27 6.33 17.54 649,953 Sanam Real Estate Co Kscc 42.00 22,501 Financial Corp/The 0.11 0.00 - Bahrain Islamic Bank 0.13 0.00 40,376 Saudia Dairy & Foodstuff Co 0.04 0.00 123.80 4,070 Ithmaar Bank Bsc 32.50 4,677,244 Dhofar University 1.49 0.00 - Bahrain Flour Mills Co 0.00 0.00 - National Shipping Co Of/The 3.93 3.03 36.80 3,341,623 Aviation Lease And Finance C 204.00 74,010 Dhofar Tourism 0.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - Methanol Chemicals Co 0.90 0.00 5.62 4,092,443 Arzan Financial Group For Fi 31.50 200,000 Dhofar Poultry 0.18 0.00 - Bahrain Duty Free Complex 0.85 0.00 3,000 Ace Arabia Cooperative Insur 0.24 0.00 40.96 55,561 Ajwan Gulf Real Estate Co 24.50 2,587,391 Dhofar Intl Development 0.38 -1.55 9,000 Bahrain Commercial Facilitie 0.00 0.00 - Mobile Telecommunications Co 1.20 2.56 5.92 2,231,297 Kuwait Business Town Real Es 40.00 2,246,795 Dhofar Insurance 0.21 0.00 - Bahrain Cinema Co 1.17 0.00 6,321 Saudi Arabian Coop Ins Co -1.38 0.00 15.70 1,118,741 Future Kid Entertainment And 110.00 50 Dhofar Fisheries & Food Indu 1.28 0.00 - Bahrain Car Park Co 0.16 -1.82 18,000 Axa Cooperative Insurance 0.94 6.41 12.90 2,348,919 Specialities Group Holding C 83.00 100 Dhofar Cattlefeed 0.22 0.00 - Arab Insurance Group(Bsc)-$ 0.00 0.00 - Alsorayai Group 1.51 -2.04 10.78 833,145 Abyaar Real Eastate Developm 24.00 62,950 Dhofar Beverages Co 0.26 0.00 - Arab Banking Corp Bsc-$Us 0.48 0.00 102,100 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 0.00 - Construction Materials Ind 0.03 0.00 611,000 Aluminium Bahrain Bsc 0.34 0.00 20,000 Bank Albilad 0.04 -2.50 23.19 487,907 Al-Dar National Real Estate 19.50 25,444,529 Computer Stationery Inds 0.26 0.00 - Albaraka Banking Group 0.56 0.00 40,000 Al-Hassan G.I. Shaker Co 1.36 0.00 23.14 859,912 Kgl Logistics Company Kscc 56.00 24,107 Bankmuscat Saog 0.44 -0.91 520,605 Al-Salam Bank 0.10 3.19 639,250 Wataniya Insurance Co -0.35 0.00 48.18 162,186 Combined Group Contracting 790.00 7,500 Bank Sohar 0.16 -0.61 134,706 Al-Ahlia Insurance Co 0.00 0.00 - Abdullah Al Othaim Markets 80.80 -0.55 39,955 Zima Holding Co Ksc 94.00 3.30 2,041,407 Bank Nizwa 0.07 0.00 244,100 Hail Cement 12.07 -0.25 760,017 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.28 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Thursday, February 25, 2016 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 16,200.38 -231.40 Apple Inc 94.03 -0.69 11,921,879 S&P 500 Index 1,898.38 -22.89 Microsoft Corp 50.65 -1.04 7,578,507 Nasdaq Composite Index 4,437.66 -65.93 Exxon Mobil Corp 80.00 -1.52 4,489,298 S&P/Tsx Composite Index 12,585.55 -177.89 General Electric Co 28.44 -2.67 14,844,610 Mexico Bolsa Index 42,556.90 -659.68 Johnson & Johnson 103.21 -0.84 2,167,818 Brazil Bovespa Stock Idx 41,396.44 -1,124.50 Jpmorgan Chase & Co 54.71 -2.51 10,219,278 Ftse 100 Index 5,864.63 -97.68 Procter & Gamble Co/The 80.90 -1.11 2,252,094 Cac 40 Index 4,148.04 -90.38 Pfizer Inc 29.61 -1.18 10,404,646 Dax Index 9,176.36 -240.41 Wal-Mart Stores Inc 66.53 0.08 3,485,420 Ibex 35 Tr 8,014.60 -253.00 Walt Disney Co/The 93.63 -1.84 2,494,934 Nikkei 225 15,915.79 -136.26 Coca-Cola Co/The 43.48 -0.48 3,749,339 Japan Topix 1,284.53 -6.64 Verizon Communications Inc 50.26 -0.73 3,182,717 Hang Seng Index 19,192.45 -222.33 Visa Inc-Class A Shares 70.57 -2.19 2,338,641 All Ordinaries Indx 4,943.26 -95.86 Home Depot Inc 123.44 -0.88 2,622,841 Nzx All Index 1,199.60 +9.90 Chevron Corp 83.59 -1.55 3,871,783 Bse Sensex 30 Index 23,088.93 -321.25 Intel Corp 28.66 -0.49 5,054,162 Nse S&P Cnx Nifty Index 7,018.70 -90.85 Merck & Co. Inc. 49.68 -1.70 2,098,329 Straits Times Index 2,619.96 -52.11 Cisco Systems Inc 25.87 -0.96 5,888,357 Karachi All Share Index 21,413.65 +145.07 Intl Business Machines Corp 130.57 -1.38 1,338,161 Jakarta Composite Index 4,657.72 +3.67 Nike Inc -Cl B 59.35 -1.43 3,435,463 Unitedhealth Group Inc 118.49 -2.20 926,141 Mcdonald’s Corp 116.06 -0.72 1,671,253 Boeing Co/The 112.90 -3.42 2,347,971 TOKYO 3M Co 154.33 -1.18 491,306 United Technologies Corp 92.83 1.34 5,394,190 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 141.39 -2.43 1,575,772 Rakuten Inc 1,002.50 -1.33 9,915,000 American Express Co 53.91 -2.17 1,736,327 Kyocera Corp 4,854.00 -2.24 1,297,100 Du Pont (E.I.) De Nemours 58.34 -0.83 983,384 Nissan Motor Co Ltd 967.50 -0.46 13,882,300 Caterpillar Inc 63.81 -2.99 2,100,928 Hitachi Ltd 460.00 -2.34 25,879,000 Travelers Cos Inc/The 107.12 -0.73 452,557 Takeda Pharmaceutical Co Ltd 5,358.00 0.37 2,209,800 Jfe Holdings Inc 1,360.50 -0.40 5,457,300 Traders work at the Frankfurt Stock Exchange. The DAX 30 closed down 2.64% at 9,167.80 points yesterday. Ana Holdings Inc 325.40 0.34 14,754,000 FTSE 100 Mitsubishi Electric Corp 1,121.00 -1.02 6,504,000 Sumitomo Mitsui Financial Gr 3,096.00 0.68 12,167,600 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 2,848.00 -2.01 7,272,900 Fast Retailing Co Ltd 31,320.00 -2.00 580,000 Wpp Plc 1,463.00 -1.68 2,926,241 Ms&Ad Insurance Group Holdin 2,971.50 -0.47 2,754,300 Worldpay Group Plc 289.80 -1.70 3,973,239 Kubota Corp 1,444.00 -0.96 3,915,000 Wolseley Plc 3,562.00 -1.38 323,963 Europe markets extend losses; Seven & I Holdings Co Ltd 4,464.00 1.55 3,898,000 Whitbread Plc 3,745.00 -1.06 657,820 Inpex Corp 821.40 -1.31 11,180,400 Vodafone Group Plc 211.70 -1.03 29,104,881 Resona Holdings Inc 398.60 0.99 20,609,700 United Utilities Group Plc 917.00 -2.50 551,633 Asahi Kasei Corp 643.20 -1.38 6,101,000 Unilever Plc 3,036.50 -0.96 1,352,820 Kirin Holdings Co Ltd 1,477.00 0.54 3,325,200 sterling receives pounding Tui Ag-Di 1,037.00 -2.54 281,558 Marubeni Corp 573.80 -1.58 8,982,800 Travis Perkins Plc 1,712.00 -1.27 456,845 Mitsubishi Ufj Financial Gro 478.60 0.97 102,111,700 duction cut comments out of Iran and As Britain prepares for the June 23 Tesco Plc 176.05 -1.95 9,212,323 AFP Mitsubishi Chemical Holdings 582.50 -3.75 7,707,700 Taylor Wimpey Plc 177.80 0.74 5,697,292 Saudi Arabia and a mixed government referendum on EU membership, Brit- Fanuc Corp 16,970.00 -1.08 1,526,800 London Standard Life Plc 316.40 -3.42 3,731,173 oil inventory report,” analysts Charles ish Prime Minister David Cameron has Daito Trust Construct Co Ltd 15,120.00 0.93 368,300 Standard Chartered Plc 387.75 -4.72 13,743,315 Schwab said in an investors’ note. warned that a departure would threat- Otsuka Holdings Co Ltd 4,041.00 -0.74 1,647,600 St James’s Place Plc 858.50 -2.22 1,016,179 Oriental Land Co Ltd 7,855.00 0.93 957,900 orld stock markets extended Shares in Frankfurt led the pack, en its economic and national security. Sse Plc 1,363.00 -1.45 977,941 Sekisui House Ltd 1,772.50 0.45 2,801,100 losses from a day earlier yes- dropping more than 2.6%, after a ses- But London Mayor and Conservative Sports Direct International 383.30 -4.58 1,896,855 Secom Co Ltd 8,079.00 0.20 602,400 terday as investors grappled sion that also saw periphery coun- rival Boris Johnson has dealt a blow Smiths Group Plc 949.50 -2.42 573,656 W Tokio Marine Holdings Inc 3,850.00 0.13 4,295,900 Smith & Nephew Plc 1,146.00 -0.52 1,010,147 with volatile oil prices that again tum- terparts Madrid and Milan shed more by backing a so-called Brexit despite Aeon Co Ltd 1,434.00 -0.03 6,611,700 Sky Plc 1,006.00 -1.08 1,246,482 bled and the pound sterling hit near than3% at one point. Cameron winning a deal on EU re- Mitsui & Co Ltd 1,328.00 -1.01 10,266,900 Shire Plc 3,780.00 -0.79 904,022 seven-year lows. US stocks were dragged down by an- forms. Kao Corp 5,752.00 -1.35 1,777,300 Severn Trent Plc 2,119.00 -1.58 192,308 Uncertainty over which way British other sharp decline in oil prices while The pound has been struggling for Dai-Ichi Life Insurance 1,293.00 -1.22 6,282,400 Schroders Plc 2,472.00 -1.32 334,402 Mazda Motor Corp 1,567.50 -2.55 10,317,000 voters will jump in a looming referen- new data revealed that US new-home some time, though. Sainsbury (J) Plc 247.10 -1.67 2,186,381 Komatsu Ltd 1,771.50 0.34 4,748,800 dum on European Union membership sales slumped in January more than ex- “Unsurprisingly, the concerns for Sage Group Plc/The 565.00 -1.74 1,950,099 West Japan Railway Co 6,681.00 0.57 768,200 weighed on markets and will likely do pected, despite a sharp drop in prices. the global economy have continued to Sabmiller Plc 4,170.00 -0.01 2,092,372 Murata Manufacturing Co Ltd 12,870.00 -1.68 1,067,000 Rsa Insurance Group Plc 391.90 -3.19 1,259,176 so for some time to come, analysts said. “Eurozone indices are going to suff er have disastrous consequences for the Kansai Electric Power Co Inc 1,193.50 -1.08 3,824,900 Royal Mail Plc 442.00 -1.38 1,001,989 Added to the mix are concerns about under the same Brexit fears currently pound, which often performs poorly Denso Corp 4,183.00 -0.83 1,673,100 Royal Dutch Shell Plc-B Shs 1,543.50 -1.81 9,024,630 the global economy, with the overall plaguing the pound and the FTSE,” said in a risk-off environment,” said Phil Sompo Japan Nipponkoa Holdin 3,189.00 2.57 2,905,200 Royal Dutch Shell Plc-A Shs 1,554.00 -1.40 6,551,580 Daiwa House Industry Co Ltd 3,017.00 0.72 1,825,200 result that emphatic losses marked the Connor Campbell, fi nancial analyst at McHugh, at trading group Currencies Royal Bank Of Scotland Group 232.20 -1.61 10,669,368 Jx Holdings Inc 446.80 0.93 11,424,300 eurozone’s main indices Wednesday Spreadex trading group, referring to a Direct. Rolls-Royce Holdings Plc 652.00 -1.73 4,620,921 Nippon Steel & Sumitomo Meta 1,914.00 -1.80 5,384,800 that set the tone for US stocks. possible exit by Britain from the EU. Asian bourses earlier saw Tokyo stocks Rio Tinto Plc 1,884.00 -5.23 5,596,047 Suzuki Motor Corp 2,725.50 -1.59 2,617,800 Rexam Plc 609.00 0.83 1,554,147 In London, the FTSE 100 down 1.6% The pound slumped to $1.3913 at one weighed down by the strength of the yen Nippon Telegraph & Telephone 4,576.00 -1.38 5,870,500 Relx Plc 1,219.00 0.25 1,995,415 at 5.867.18 points; Frankfurt - DAX point—the lowest level since March which is seen as a haven asset. Ajinomoto Co Inc 2,809.00 -0.53 1,966,000 Reckitt Benckiser Group Plc 6,521.00 -0.50 591,241 30 fell 2.64% at 9,167.80 points and 2009. But Shanghai closed up almost 1% Mitsui Fudosan Co Ltd 2,568.50 0.23 3,955,000 Randgold Resources Ltd 6,660.00 2.15 572,433 Paris - CAC 40 down 1.96% at 4,155.34 Analyst John Higgins, of Capital yesterday, reversing losses from ear- Ono Pharmaceutical Co Ltd 19,680.00 -0.25 406,400 Prudential Plc 1,186.00 -2.79 2,690,143 Daikin Industries Ltd 7,505.00 -2.57 1,659,500 points at the close yesterday. Economics, said uncertainty was key lier in the day, on expectations of eco- Provident Financial Plc 3,244.00 -0.70 532,488 Bank Of Yokohama Ltd/The 514.80 0.94 11,552,000 Investors seemed especially dis- and would go on plaguing the British nomic reform pledges at an upcoming Persimmon Plc 2,072.00 2.12 1,087,852 Toray Industries Inc 905.00 0.10 5,590,000 appointed after Iran’s oil minister on currency until the vote was done and annual meeting of lawmakers. Pearson Plc 765.50 -3.47 1,948,715 Astellas Pharma Inc 1,564.50 -0.54 8,371,300 Old Mutual Plc 164.90 -4.57 6,722,148 Tuesday dismissed an output freeze dusted. Ahead of a meeting of G20 fi nance Bridgestone Corp 3,956.00 0.00 3,289,200 Next Plc 6,725.00 -1.32 196,048 deal between the world’s top two pro- “We estimate that sterling would re- ministers and central bank chiefs Sony Corp 2,398.50 -1.52 8,571,900 National Grid Plc 955.00 -0.93 3,482,849 ducers Saudi Arabia and Russia as “a bound from $1.39 to $1.50 against the starting Friday in Shanghai, there have Hoya Corp 4,069.00 0.22 1,675,100 Mondi Plc 1,268.00 -1.48 808,580 joke”. dollar if the UK voted today to remain a been calls for increased fi scal support Sumitomo Mitsui Trust Holdin 324.60 -0.28 17,580,000 Merlin Entertainment 432.40 -1.50 937,722 Japan Tobacco Inc 4,366.00 -2.46 3,709,300 “US stocks are extending yesterday’s member of the EU,” he wrote in a note. as authorities grapple with reduced Marks & Spencer Group Plc 412.40 -1.20 2,277,215 Osaka Gas Co Ltd 433.70 -1.39 5,841,000 drop following losses in Asia and amid “But if the vote were to leave, we monetary leeway. Japan and the euro- London Stock Exchange Group 2,550.00 -3.04 2,825,276 Sumitomo Electric Industries 1,329.00 -0.41 3,043,600 a European sell-off , with oil prices re- think the exchange rate might fall zone have already seen negative inter- Lloyds Banking Group Plc 62.08 -1.35 81,576,124 Daiwa Securities Group Inc 658.00 -0.69 11,110,000 Legal & General Group Plc 213.30 -2.51 8,437,567 maining volatile on disappointing pro- swiftly to $1.20.” est rates. Softbank Group Corp 5,321.00 2.39 17,597,600 Land Securities Group Plc 967.00 -2.47 1,135,484 Mizuho Financial Group Inc 166.10 0.12 161,399,400 Kingfisher Plc 323.80 -1.97 3,591,530 Nomura Holdings Inc 479.80 -1.07 27,291,700 Johnson Matthey Plc 2,420.00 -2.54 345,204 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,246.00 -0.71 2,727,900 Itv Plc 247.60 -0.60 10,167,018 Fuji Heavy Industries Ltd 3,635.00 -1.57 4,534,200 Intu Properties Plc 277.30 -2.74 889,196 Ntt Docomo Inc 2,511.00 -0.81 6,070,200 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intl Consolidated Airline-Di 527.00 -4.27 6,770,877 Sumitomo Realty & Developmen 3,040.00 -0.30 2,795,000 Intertek Group Plc 2,872.00 1.45 529,718 Aluminum Corp Of China Ltd-H 2.86 5.93 163,656,892 Hong Kong & China Gas 13.84 -1.70 8,384,013 Sumitomo Metal Mining Co Ltd 1,204.50 -1.15 6,316,000 Intercontinental Hotels Grou 2,475.00 -2.56 1,576,386 Bank Of East Asia Ltd 24.35 -2.79 4,627,293 Hong Kong Exchanges & Clear 172.30 -0.58 3,471,269 Orix Corp 1,434.50 0.46 6,111,000 Inmarsat Plc 965.50 -2.57 588,151 Bank Of China Ltd-H 2.94 -0.68 196,360,673 Hsbc Holdings Plc 48.70 -0.92 24,572,792 Asahi Group Holdings Ltd 3,313.00 -2.07 2,185,600 Imperial Brands Plc 3,707.50 -0.82 1,019,551 Bank Of Communications Co-H 4.47 -0.67 19,007,629 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 57,760.00 -1.47 161,900 Hsbc Holdings Plc 433.25 -1.82 28,517,683 Belle International Holdings 5.27 -1.50 12,534,782 Ind & Comm Bk Of China-H 3.93 -1.50 160,318,198 Nidec Corp 7,247.00 -0.93 1,431,900 Hikma Pharmaceuticals Plc 1,867.00 -0.48 177,471 Boc Hong Kong Holdings Ltd 19.90 -1.73 10,791,035 Li & Fung Ltd 4.40 -3.08 20,293,528 Isuzu Motors Ltd 1,111.50 -2.29 3,509,600 Hargreaves Lansdown Plc 1,224.00 -2.47 647,150 Cathay Pacific Airways 12.40 -0.32 3,588,999 Mtr Corp 37.00 1.51 2,632,466 Unicharm Corp 2,420.00 -0.53 1,898,600 Hammerson Plc 535.50 -2.81 1,334,506 Ck Hutchison Holdings Ltd 95.55 0.16 3,745,269 New World Development 6.37 -0.47 16,798,912 Shin-Etsu Chemical Co Ltd 5,732.00 1.58 1,655,100 Glencore Plc 117.40 -9.31 56,948,969 China Coal Energy Co-H 2.69 0.75 7,585,734 Petrochina Co Ltd-H 5.07 -2.12 50,607,874 Smc Corp 26,380.00 -2.78 255,800 Glaxosmithkline Plc 1,358.00 -1.45 5,186,580 China Construction Bank-H 4.61 -1.07 152,715,449 Ping An Insurance Group Co-H 33.35 -2.06 28,170,068 Mitsubishi Corp 1,855.00 -2.93 7,538,300 Gkn Plc 263.50 -2.44 7,423,171 China Life Insurance Co-H 17.56 -2.44 51,456,399 Power Assets Holdings Ltd 74.50 0.68 2,454,639 Nintendo Co Ltd 16,090.00 -1.35 634,800 Fresnillo Plc 994.50 1.90 1,054,647 China Merchants Hldgs Intl 22.25 -1.55 1,805,943 Sino Land Co 10.88 0.18 4,249,298 Eisai Co Ltd 6,896.00 -0.71 975,300 Experian Plc 1,148.00 -1.37 1,039,361 China Mobile Ltd 84.10 -0.71 8,655,437 Sun Hung Kai Properties 86.70 -0.97 3,020,409 Sumitomo Corp 1,117.50 -1.41 6,928,000 Easyjet Plc 1,510.00 -0.79 760,432 China Overseas Land & Invest 22.65 -1.31 27,045,251 Swire Pacific Ltd - Cl A 76.25 -0.20 911,995 Canon Inc 3,257.00 -1.24 3,787,000 Dixons Carphone Plc 420.00 -2.35 1,047,501 China Petroleum & Chemical-H 4.28 -2.73 116,120,997 Tencent Holdings Ltd 140.40 -1.06 15,133,469 Japan Airlines Co Ltd 4,125.00 -0.43 1,590,300 Direct Line Insurance Group 373.00 -1.11 1,635,184 China Resources Beer Holdin 13.10 0.15 1,758,151 Wharf Holdings Ltd 39.35 -0.88 4,993,852 Diageo Plc 1,858.50 -0.32 2,871,668 China Resources Land Ltd 18.44 -1.28 7,114,554 China Resources Power Holdin 12.90 -2.12 6,254,417 Dcc Plc 5,625.00 -0.62 114,692 SENSEX Crh Plc 1,769.00 -2.37 685,097 China Shenhua Energy Co-H 11.40 -1.89 7,134,865 GCC INDICES Compass Group Plc 1,219.00 -0.81 2,581,569 China Unicom Hong Kong Ltd 8.92 -1.33 33,740,289 Coca-Cola Hbc Ag-Di 1,388.00 -4.80 325,186 Company Name Lt Price % Chg Volume Citic Ltd 10.66 0.19 4,833,945 Indices Lt Price Change Centrica Plc 204.50 -2.80 9,413,026 Clp Holdings Ltd 68.25 0.96 3,794,166 Doha Securities Market Zee Entertainment Enterprise 388.00 0.23 1,027,529 9,917.52 -85.28 Carnival Plc 3,438.00 -0.58 682,770 Cnooc Ltd 7.98 -3.04 53,300,615 Saudi Tadawul Yes Bank Ltd 690.65 0.63 4,611,589 5,942.28 -80.80 Capita Plc 1,073.00 -1.74 1,062,924 Cosco Pacific Ltd 8.42 -1.98 5,226,935 Kuwait Stocks Exchange Wipro Ltd 533.95 -1.11 1,086,664 5,174.69 +8.50 Burberry Group Plc 1,174.00 -4.86 2,401,177 Esprit Holdings Ltd 7.88 -4.95 6,850,076 Bahrain Stock Exchage Vedanta Ltd 70.90 -2.94 14,312,079 1,189.15 +12.98 Bunzl Plc 1,905.00 0.11 264,334 Fih Mobile Ltd 2.72 -1.09 5,472,000 Oman Stock Market Ultratech Cement Ltd 2,797.35 -0.67 237,699 5,403.95 -26.46 Bt Group Plc 456.40 -0.75 9,576,275 Hang Lung Properties Ltd 13.52 -2.73 4,447,358 Abudhabi Stock Market Tech Mahindra Ltd 422.05 -1.53 900,623 4,282.45 -31.12 British Land Co Plc 645.50 -2.34 2,863,612 Hang Seng Bank Ltd 131.10 0.15 1,995,568 Dubai Financial Market Tata Steel Ltd 247.90 -2.23 5,411,345 3,137.34 -54.47 British American Tobacco Plc 3,826.50 -0.43 1,222,929 Henderson Land Development 42.35 -0.82 2,206,786 Tata Power Co Ltd 57.80 -0.34 1,578,564 Bp Plc 335.55 -2.84 33,198,330 Tata Motors Ltd 306.30 -3.85 8,136,987 Bhp Billiton Plc 688.80 -7.78 16,654,363 Tata Consultancy Svcs Ltd 2,210.95 -2.34 876,840 Berkeley Group Holdings 3,208.00 -0.43 671,380 Sun Pharmaceutical Indus 854.55 -1.90 1,840,694 Barratt Developments Plc 571.00 1.60 1,892,395 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 156.30 -1.39 22,053,323 Barclays Plc 156.85 -2.91 25,888,072 Reliance Industries Ltd 952.65 0.32 4,928,960 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Bae Systems Plc 503.50 -0.98 2,792,193 Punjab National Bank 72.20 -0.69 15,368,966 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Babcock Intl Group Plc 898.00 -1.32 656,350 Power Grid Corp Of India Ltd 139.70 1.90 6,533,469 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Aviva Plc 412.20 -2.16 5,643,526 Oil & Natural Gas Corp Ltd 209.40 -2.42 1,969,558 this data.” Astrazeneca Plc 4,087.00 -1.05 1,548,719 Ntpc Ltd 118.65 -4.16 18,667,293 Associated British Foods Plc 3,308.00 0.30 1,003,591 Maruti Suzuki India Ltd 3,489.70 0.07 674,884 Ashtead Group Plc 859.50 -1.88 828,313 Mahindra & Mahindra Ltd 1,218.60 0.82 822,214 Arm Holdings Plc 941.00 -1.00 3,488,079 Lupin Ltd 1,761.40 -0.94 973,583 CURRENCIES Antofagasta Plc 476.30 -4.09 2,395,551 Larsen & Toubro Ltd 1,112.90 -1.53 1,346,388 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Anglo American Plc 409.60 -9.60 10,841,183 DINAR DINAR Kotak Mahindra Bank Ltd 618.75 -0.68 696,728 Admiral Group Plc 1,731.00 -0.40 268,067 Itc Ltd 287.60 -2.11 9,628,310 Aberdeen Asset Mgmt Plc 227.20 -3.40 4,336,317 Infosys Ltd 1,125.35 0.13 2,680,646 3I Group Plc 424.90 0.64 1,540,104 Indusind Bank Ltd 821.90 -2.11 1,076,294 #N/A! 0.00 0.00 - Idea Cellular Ltd 104.70 -1.92 3,055,376 Icici Bank Ltd 187.00 -2.60 21,490,386 TOKYO Housing Development Finance 1,022.10 -2.76 4,990,259 Hindustan Unilever Ltd 836.75 -0.01 1,117,162 Hindalco Industries Ltd 66.40 -3.07 7,095,447 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 2,621.25 -1.50 228,313 East Japan Railway Co 9,837.00 -0.44 1,374,800 Hdfc Bank Limited 949.60 -2.11 1,701,827 Itochu Corp 1,349.50 -1.82 8,327,100 Hcl Technologies Ltd 811.05 -2.16 1,126,321 Fujifilm Holdings Corp 4,220.00 -0.50 1,503,000 Grasim Industries Ltd 3,367.80 -1.17 49,495 Yamato Holdings Co Ltd 2,346.50 0.15 2,038,700 Gail India Ltd 313.75 -1.03 1,746,497 Chubu Electric Power Co Inc 1,420.50 -1.46 1,994,000 Dr. Reddy’s Laboratories 3,013.20 -2.20 419,426 Mitsubishi Estate Co Ltd 2,099.50 0.55 5,360,000 Coal India Ltd 295.25 -1.94 3,356,582 Mitsubishi Heavy Industries 401.10 -2.86 21,036,000 Cipla Ltd 513.95 -1.66 1,923,396 Toshiba Corp 173.70 -4.87 45,917,000 Cairn India Ltd 122.65 -2.81 2,827,289 Shiseido Co Ltd 2,407.50 -1.39 2,419,200 Bosch Ltd 16,520.20 -1.95 12,115 Shionogi & Co Ltd 4,820.00 0.40 1,594,300 Bharti Airtel Ltd 323.95 0.82 2,492,777 Tokyo Gas Co Ltd 528.60 -2.20 11,216,000 Bharat Petroleum Corp Ltd 768.90 4.46 2,424,459 Tokyo Electron Ltd 6,872.00 -1.81 1,070,300 Bharat Heavy Electricals 93.45 -5.08 12,832,174 Panasonic Corp 870.20 -0.01 11,772,100 Bank Of Baroda 133.70 0.56 12,233,313 Fujitsu Ltd 410.40 0.05 9,222,000 Bajaj Auto Ltd 2,337.40 -2.46 309,663 Central Japan Railway Co 20,305.00 -0.61 458,100 Axis Bank Ltd 386.65 0.39 12,741,800 T&D Holdings Inc 1,102.50 -1.39 2,892,100 Asian Paints Ltd 881.80 0.54 1,360,273 Toyota Motor Corp 5,974.00 -0.33 10,888,100 Ambuja Cements Ltd 191.40 -1.14 1,046,183 Kddi Corp 2,824.50 -2.47 8,169,600 Adani Ports And Special Econ 200.15 -1.98 3,696,840 Nitto Denko Corp 5,777.00 -4.56 1,402,000 Acc Ltd 1,233.15 -0.86 135,787 Gulf Times 12 Thursday, February 25, 2016 BUSINESS

Thousands of apps running Asia oil markets in upheaval Baidu code leak personal as China, India change game information India overtakes Japan in oil Reuters imports, China goes for top Singapore/Beijing spot; China’s national oil firms challenge Asian oil pricing method; independent Chinese refiners Thousands of apps running storm on to international markets code built by Chinese Internet giant Baidu have collected and Reuters transmitted users’ personal Singapore/New Delhi information to the company, much of it easily intercepted, researchers say. sia’s oil markets are being up- The apps have been down- ended as India’s and China’s re- loaded hundreds of millions Afi ners overtake once-dominant of times. The researchers at buyers like Japan and challenge the US Canada-based Citizen Lab said as the world’s biggest consumer. they found the problems in an The shifts are not only establishing Android software development new trade routes but are also challeng- kit developed by Baidu. These ing the way oil is priced in the region as aff ected Baidu’s mobile browser the new players push for more cash car- and apps developed by Baidu goes and fewer long-term deals. and other firms using the same China and India’s combined share of kit. Baidu’s Windows browser world oil consumption has tripled since was also aff ected, they said. 1990 to over 16%, nearing the US share The same researchers last of roughly 20%, cementing their status year highlighted similar prob- as the main centre of global demand lems with unsecured personal growth. data in Alibaba’s UC Browser, “Asian oil markets are in a tremen- another mobile browser widely dous period of fl ux,” said Owain John- used in the world’s biggest son, managing director of Dubai Mer- Internet market. cantile Exchange (DME). Alibaba fixed those vulner- By 2040, China and India could dou- abilities, and Baidu told Reuters ble their share again to a third, analysts it would be fixing the encryp- say. tion holes in its kits, but would One of Asia’s rising traders is Indian still collect data for commercial Oil Corp, which operates 11 refi neries there’s a profi table opportunity,” said use, some of which it said it with a combined capacity of 80.7mn Ivan Szpakowski, head of Asia com- shares with third parties. Baidu tonnes a year (1.9mn barrels per day), a modity research at Citigroup. said it “only provides what data third of India’s capacity and roughly the “India will become the biggest source is lawfully requested by duly same size as Exxon’s US refi ning base. of oil consumption growth. Its geogra- constituted law enforcement “Spot crude (trading) gives more phy also changes trade fl ows. If you look agencies.” fl exibility and more variety is avail- at a map, the Middle East is much closer The unencrypted information able. Last year we raised spot purchases to India than to Japan or China and such that has been collected includes and for this year we are working out a shipments are eff ectively short-haul.” a user’s location, search terms strategy,” said its head of fi nance AK In China, state-owned oil giants have and website visits, Jeff rey Sharma. been joined by nearly 20 independent Knockel, chief researcher at The changes come at the expense of refi ners which have been granted im- Citizen Lab, told Reuters ahead western majors, with Shell complain- port licenses and exclusively buy spot of publication of the research ing in December that aggressive trad- supplies. yesterday. The problem high- ing, conducted by Chinese companies, Their arrival is changing trade fl ows lights how diff icult it is for users meant Asian crude prices didn’t prop- through their preference for cheaply- to know just what data their erly refl ect the market. delivered Russian crudes which has phone collects and transmits, “Chinese oil companies have become helped Russia challenge the Middle and the risk that personal data the new power houses in oil trading,” East as China’s biggest supplier. might leak because of poor or said Oystein Berentsen, managing di- Not all is smooth sailing. Richard no encryption. It also highlights rector of crude at Strong Petroleum in Gorry, director of JBC Energy Asia, how many diff erent groups Singapore. said the rise of these traders is causing might be interested in access- Previously, Asia’s largest oil buyers “teething problems” as they make their ing such data. from Japan – which once accounted for fi rst deals with highly regulated inter- “It’s either shoddy design about 10% of global demand – stuck national companies. or it’s surveillance by design,” with long-term contracts. In January, a crude cargo sold to an said Citizen Lab director Ron Now, as China and India take the independent Chinese refi ner by west- Deibert. Citizen Lab said Baidu lead, a growing share of trading is done ern merchants Vitol and Mercuria had – which reports quarterly earn- on a spot basis as buyers prioritise cost to be resold after the fi rm failed to se- ings in New York today – had and delivery fl exibility over fi xed ship- cure fi nancing, while this month an- fixed some of the problems ment schedules. other private Chinese company walked since it brought them to the Moreover, thanks to the hefty vol- away from a deal to buy $680mn of company’s attention in Novem- umes, the new buyers are able to extract Russian oil, citing “changes in the mar- ber, but the Android browser favourable prices. China and India’s ket” as a reason. ess. To avoid further squeezes, Platts “The old system is no more and the Other exchanges are also looking to still sends sensitive data such combined daily net crude imports ex- China’s national oil fi rms are also made more crude available in its MoC, creation of new systems and patterns of capitalise on the change. as the device ID in an easily ceed 10mn barrels, or some 3mn bpd challenging Asia’s leading price bench- and Dave Ernsberger, head of global oil behaviours has begun,” said Jorge Mon- “China is obviously keen to have an decryptable format. more than top importer the US. mark, the Dubai Market-on-Close content at Platts, a subsidiary of Mc- tepeque, who set up the MoC system for ever greater say in pricing. At the same Baidu told Reuters its interest The new buyers are also bringing new (MoC) by Platts, used to price more Graw Hill Financial, said it “absolutely Platts in the 1990s and is now an inde- time, Iran is returning to the market. in the data was just commercial, characteristics to the marketplace. than 12mn bpd of crude to Asia, by fre- makes sense” for China to take “a much pendent consultant. Firms across Asia are looking at new but declined to say who else “Indians are more fl exible than quently sweeping up almost all avail- more pre-eminent role in price discov- Keen to play a bigger part in price ways of doing business and legacy ar- might have access. many of their Asian peers, buying up able cargoes, preventing other traders ery.” creation, China plans to launch Shang- rangements are all under review,” distressed or stranded cargoes when from participating in the pricing proc- Still, challengers are circling. hai crude futures. DME’s Johnson said. Gulf Times Thursday, February 25, 2016 13 BUSINESS

BoJ says no proof of media China’s FX reserves dive leak but vows tighter $99.5bn to $3.23tn in Jan measures Reuters AFP Beijing Tokyo

hina still owns the world’s larg- Japan’s central bank said est currency reserves, but it has yesterday it would toughen Cbeen burning through them at measures to prevent leaks such a pace that some think Beijing to the media, but found no might soon have to allow a sharp fall in evidence to support claims a the yuan or back-pedal on liberalisation major newspaper was fed early and tighten its capital controls. details about its latest stimulus Foreign exchange reserves in China plan. declined $99.5bn in January to $3.23tn, The Bank of Japan said it following a record fall the previous would limit the use of smart- month, and have shrunk by $762bn phones and other hi-tech gadg- since mid-2014, more than the gross ets at its headquarters and domestic product of Switzerland. restrict reporters’ movements That still leaves a mighty arsenal, and ahead of policy announce- the People’s Bank of China (PBoC) says ments. it is more than adequate, though it has The BoJ launched an investi- not said what the minimum might be gation earlier this month after and did not return a request for com- Japan’s leading Nikkei business ment. said the bank was mulling a PBoC governor Zhou Xiaochuan negative interest rate policy told Caixin magazine a week ago that just before it made the formal much of the outfl ow had been Chinese announcement. companies repaying dollar debt as the The story was published on- greenback rose, which would bottom line several minutes before the out, or outbound investment, which BoJ shocked markets with the was to be welcomed. fresh stimulus after a closed- Most economists agree China has a door meeting. way to go before running out of road, The bank’s meetings are but some believe it will have to hit the considered top secret, with brakes in months, not years. media waiting in a closed room The pace of decline has accelerated with no outside communica- as the PBoC fought to keep the yuan tion until the board releases its steady in the face of speculative sell- policy decision. ing off shore and capital fl ight at home, Only policymakers and sev- a task made harder by China’s slowest eral government off icials were economic growth in 25 years and the Euro, Hong Kong dollar, US dollar, yen, pound and 100 yuan banknotes are seen in this file picture illustration. China still owns the world’s largest currency reserves, but in attendance and the Nikkei bank’s own decision to guide the cur- it has been burning through them at such a pace that some think Beijing might soon have to allow a sharp fall in the yuan or back-pedal on liberalisation and tighten its report immediately sparked rency down in August and again in early capital controls. suspicion that the information January. had been supplied from some- Though it has huge reserves, an dent level for China, which is not far serves spook local investors into shift- a Beijing-based think-tank. “We have Brown Brothers Harriman. “There’s no one at the meeting. economy the size of China’s needs them away if reserves keep falling at the cur- ing more funds off shore. net claims on foreign assets of $1.5tn, magic number ... I do think that confi - The bank said it reviewed to cover imports and foreign debts, and rent pace. According to Win Thin, global head and we still have a trade surplus of dence is a big part of this whole thing, security camera footage the less liquid assets in reserves can’t “If that occurs in the next few of emerging market currency strategy about $600bn.” and China’s policymakers are really try- and spoke with employees, readily serve those purposes. months,” says SocGen, “expect to see a at Brown Brothers Harriman, New York, If it falls to $2tn by 2025, he said, “we ing to restore confi dence.” executives and the government Though the composition of China’s tidal wave of speculative selling, forcing China has 17 months’ import cover, and will still be safe and sound”. Certainly bearish bets against the off icials. reserves is a state secret, offi cials also the PBOC to throw in the towel and let its short-term foreign debt is only 25% Another economist at a govern- yuan have fallen since spiking in Janu- But “the bank could not find say the falling dollar value of other cur- the market decide the level of the ren- of reserves, comfortably better than the ment think tank put the bottom line at ary, according to a Reuters Asia FX po- anything to point to a leak”, it rencies it holds accounts for some of the minbi exchange rate.” three-month and 55% levels that might $1.62tn. sitioning poll, as the dollar has come off said in a statement. fall. Economists and foreign exchange A G20 deputy central banker was be considered safe for emerging mar- “They are a bit worried about the fall its peaks. But Chris Morrison, portfolio It was not immediately clear professionals around the world are nev- considerably more sanguine. kets (EM). in reserves, but it’s too early to panic,” manager at Hedge fund Omni, which if market regulators were also ertheless asking how low can they go “Whatever number I would come up “I would say by any metric that we he said, though he acknowledged an has been vocally betting against the looking into the apparent ir- before Beijing is forced to choose be- with, it would be a lot less than $2.8tn,” use for EM, Chinese reserves are more unresolved confl ict between overseas currency, thinks the tipping point is regularity. tween fresh capital controls or giving he said, adding that reserves could fall than suffi cient,” he said. investors expecting the yuan to fall and closer than most. The stimulus news im- up selling dollars to defend the yuan, another trillion by year-end in con- Within China, economists agree the government’s belief that China’s “This game is all to do with expecta- mediately sparked a reaction also known as the renminbi. junction with stability in the exchange there is no imminent crisis facing poli- fundamentals did not support contin- tions and confi dence... Once the mar- on markets, sending the yen French bank Societe Generale says rate. Analysts at HSBC felt $2tn would cymakers. ued depreciation. ket sees the bottom of the pit, they lose into a steep dive and sparking International Monetary Fund guide- be suffi cient in theory, but doubted Bei- “We have $3.3tn. What should we Ultimately, the safe level is less about all credibility. And I think going through a huge stock rally as investors lines put $2.8tn as the minimum pru- jing would risk letting ever-falling re- worry about?” said one economist at ratios than sentiment, said Thin at $3tn is that point.” cheered the BoJ’s newest weapon in its bid to kick-start the world’s number three economy. Negative interest rates – ef- fectively charging commercial Grand bargain to rescue global economy unlikely at G20 meet lenders to park new deposits at the BoJ – are aimed at ramp- ing up lending to people and Reuters a deal along the lines of the 1985 Plaza likely to produce any short-term crisis to off set weak consumer demand in de- ated the decline. To slow the slide, the businesses in order to help the Shanghai Accord, which reversed a destabilising responses”. veloped economies. “We’re concerned People’s Bank of China has intervened economy. surge in the dollar, appears unlikely. In 1985, the Plaza Accord was struck that if you have sustained fi nancial tur- heavily to support the exchange rate, The policy was adopted “Financial markets need something among just fi ve industrialised coun- moil, increasing risk aversion, further moved to stem speculative capital out- by a narrow 5-4 vote, a result nvestors hoping for a grand plan refreshing, but we are not expecting a tries. Today, the divergent interests falls in risk assets, further turbulence, fl ows and said it was not planning fur- hinted at in the Nikkei report, from the world’s top fi nancial offi - ‘Plaza’-like policy accord,” said a Japa- between the major developed and big particularly in China, that could be ther currency devaluation. which said that BoJ chief Icials to stabilise shaky markets are nese offi cial. “There’s no magic bullet.” emerging economies that make up the enough to tip the global economy over Another worry among international Haruhiko Kuroda was trying to set for disappointment, insiders say, With divergent monetary policies G20 makes agreement on strong, co- the edge into recession territory,” said investors is whether the Chinese gov- convince some of his sceptical when fi nance ministers and central exacerbating currency market volatil- ordinated action much harder, analysts Charles Collyns, chief economist at the ernment is up to the task of manag- colleagues. bankers gather this week in Shanghai ity, China, the G20 chair in 2016, has say. “There is a risk that a G20 outcome Institute of International Finance. ing an increasingly complex economy. The Nikkei, which bought to discuss the troubled global economy. said strengthening policy coordination that has no specifi city will get the same One concern for China has been has Botched attempts to arrest falling stock the Financial Times last year, Stubbornly weak demand, falling and reducing “negative spillovers” from reviews as a pointless movie sequel, but been the rate of capital outfl ows, which markets last year dented confi dence and is known for its accuracy in equity markets and currency volatil- domestic policy measures was a “press- cause more fi nancial stress and further has prompted some economists to sug- caused overseas markets to shudder. reporting corporate earnings ity pose a challenge to the Group of 20 ing task”. asset market selling,” Citi said in a re- gest Beijing should temporarily back- China is not seen as the only coun- results weeks before off icial (G20) major economies that some are Others, including the US and Japan, search note this week. pedal on liberalising reforms and tight- try with communications problems, announcements by compa- comparing to its April 2009 meeting, at are planning to urge G20 states to do “However we think they can give en capital controls. however. In the developed world, the nies. Foreign investors have the height of the global fi nancial crisis, more to counter market turmoil and enough indications that policy is not China’s yuan currency has been apparent lack of monetary policy coor- criticised the early reports, when ministers agreed on coordinated use fi scal policy to support the global dead to give modest support to asset losing value against the dollar since dination between the US, Japan and Eu- saying they give their Japa- stimulus to avert a worldwide depres- economy. markets.” China will likely attempt to 2014, weakened by factors including rope will also factor, insiders said, with nese counterparts an unfair sion. “The global picture is less rosy than it set minds at ease about its ability to a renewed enthusiasm for dollar as- International Monetary Fund Managing advantage being many time Many G20 members are urging stim- was a year ago,” said an Italian offi cial, manage its slowest growth in a quarter sets, falling interest rates and concerns Director Christine Lagarde urging G20 zones ahead, and are usually ulus and better policy coordination, but who declined to be identifi ed, adding century and plans to reform its econo- about capital fl ight. A surprise currency policymakers to think about the “sp- published first in Japanese. with no convergence about what to do the February 26-27 meeting was “un- my - and by extension China’s ability devaluation in August 2015 acceler- illovers” from their policies. Sharp starts 2-day board meeting on Foxconn’s $5.9bn off er

Reuters posed by the state-backed Innovation Network Yet, some sources have cited lingering doubts Tokyo Corp of Japan (INCJ). within Sharp over Foxconn’s commitment, after After Sharp said this month it would devote a breakdown in a 2012 agreement between the more resources to studying a deal with Foxconn, two companies to form capital ties. In a ges- he board of Japan’s Sharp Corp began a the Taiwanese fi rm’s CEO Terry Gou fl ew into ture to reassure Sharp executives, Foxconn has two-day meeting yesterday to decide if it Osaka to talk with Sharp executives and later off ered to pay ¥100bn as a cancellation fee if it Tshould accept a $5.9bn takeover bid from announced that the two fi rms had agreed on does not go through with the deal, one source Taiwan’s Foxconn over an off er from a state- most points of a deal. said. Board members will also discuss INCJ’s backed fund. At least four of Sharp’s 13 board members fa- off er before moving to a vote today, the sources A Sharp spokesman confi rmed the off ers vour the Foxconn off er, two of whom represent said. would be discussed today, although he declined Sharp’s two main lenders, according to sources A takeover by Foxconn, which assembles var- to say what its board members had discussed so familiar with recent discussions. The lenders are ious electronics products such as smartphones far. The company is due to make a decision on wary of the INCJ plan, which calls for them to and televisions for the likes of Apple and Sony, Foxconn’s off er by the end of the month. cancel the preferred shares they own, they said. would vastly expand sales channels for Sharp’s A deal with Foxconn, formally known as Hon But it was unclear how the other board mem- liquid crystal display (LCD) panels. Hai Precision Industry Co, would pave the way bers including Chief Executive Kozo Takahashi Teruo Asamoto, professor at Kyushu Sangyo for the largest acquisition by a foreign company would vote, they said. Sources have declined University, said Foxconn’s ample resources in Japan’s insular technology sector, where deals to be identifi ed as they were not authorised to would also enable much-needed investment in have mostly been struck between domestic ri- speak on the matter. next-generation display technology, including vals and struggling fi rms rescued by banks or INCJ at one time had been considered the A pedestrian walks past a logo of Sharp at a railway station in Tokyo. The loss-making Japanese for organic light-emitting diode (OLED) screens state funds. more favoured suitor as it was seen as a more re- electronics maker is due to make a decision on Foxconn’s off er by this month end. which Apple is believed to be adopting in its Foxconn is widely seen as the frontrunner in liable investor with the backing of government. iPhone around 2018. The two companies “would the race to rescue the loss-making electronics The fund has said it wants to merge Sharp’s dis- Government offi cials initially backed INCJ’s however, that policymakers warmed to Hon make a good match as Sharp can take advantage maker, with sources saying its off er is more than play business with Japan Display Inc, in which it plan, fearing a loss of Japan’s technological ex- Hai’s off er as a step towards bolstering foreign of Hon Hai’s expertise in production effi ciency double the ¥300bn ($2.7bn) investment pro- is the top shareholder. pertise to a foreign company. Sources have said, direct investment in Japan. to commercialize their gadgets,” he said. Gulf Times 14 Thursday, February 25, 2016 BUSINESS

Boeing bets on China domestic cargo boom for 737 conversion

Bloomberg passenger jets into cargo planes. Boeing predicted growth in China’s according to the planemaker’s the conversion programme. of 2017. Conversions will take place Beijing The Chicago-based planemaker e-commerce market will boost statement. “With the growth rate of China’s in facilities near customers, including won 30 confirmed orders and 25 demand for cargo planes. Customers “Express air services in China now e-commerce market expected to one in Shanghai, the planemaker said. commitments from seven customers will need more than 1,000 converted rely mostly on excess capacity in the exceed that of the air express market, The aircraft has a range of 2,000 Boeing expects China’s domestic for the converted 737, Boeing said in freighters the size of the 737 over the belly of passenger aircraft,” Ihssane we will see plenty of freighter demand nautical miles (3,700 kilometres) and freight market to surge in the next a statement yesterday. The aircraft next 20 years, with China’s domestic Mounir, Boeing’s senior vice president going forward.” can carry as much as 52,800 pounds two decades and said it will off er will be primarily used to carry express air freight carriers accounting for for sales in Northeast Asia, said at a The first of the converted freighters (24,000 kilograms) of cargo, Boeing conversions for its bestselling 737 cargo on domestic routes, it said. almost one-third of the total market, ceremony in Shanghai to introduce will be delivered in the fourth quarter said.

China fi rm Wanda to ‘Political tensions a drag announce ‘major deal’ tomorrow on Hong Kong economy’

Reuters Bloomberg Hong Kong London ong Kong rolled out a multi- alian Wanda Group, the Chinese billion dollar package of conglomerate that’s been on an ac- Hsweeteners to bolster its Dquisition spree, is planning to an- economy yesterday, as a slowdown nounce a “major deal” tomorrow, billionaire in China and rising political tensions chairman Wang Jianlin said. deepen its economic woes. Wang, who spoke at Oxford University on In unusually blunt comments for a Tuesday, didn’t provide details of the deal budget address, Financial Secretary beyond saying that it would be outside of John Tsang said “political volatil- the UK. Wanda is also in talks on a “com- ity” was threatening to undermine prehensive” project involving entertain- the economy and warned disputes ment in the UK that would result in 10,000 would intensify ahead of legislative jobs, he said. elections this year, pitting the city’s Wang, who vies with Alibaba Group democratic opposition against pro- Holding’s Jack Ma as China’s richest man, Beijing and pro-establishment po- has had a busy year by agreeing to buy litical parties. He said the confl icts “Godzilla”-producer Legendary Entertain- must be resolved. ment for $3.5bn, investing in three hospitals “Politics and economics are close- for $2.3bn, forming a fi nancial group and ly intertwined. Political volatility signing a $10bn development deal in India. will unavoidably impact our econo- In addition, Wanda has said it’s planning my,” Tsang said. fi ve major acquisitions in 2016 – three of In the wake of a night-long ‘riot’ them overseas. earlier this month that saw protesters Separately, the group’s Wanda Cinema fi ght pitched street battles with po- Line Co theatre-chain unit was halted from lice, Tsang warned Hong Kong faced trading in Shenzhen yesterday pending the “even greater chaos” and risks future announcement of an acquisition. generations growing up “in the midst Wanda is seeking to acquisitions to bol- of hatred”. ster growth as the group braces for falling Hong Kong is a special adminis- sales from its main property business. trative region of China that returned That’s prompted Wang, estimated by from British to Chinese rule in 1997 the Bloomberg Billionaires Index to have a under a “one country, two systems” fortune of $27.2bn, to increasingly look to- framework that guarantees broad wards expanding his entertainment busi- freedoms and autonomy. ness. In buying Legendary, Wang is poised Tsang, who said the local econom- to become the fi rst Chinese person to con- ic outlook was “far from promising”, trol a Hollywood fi lm company. Aside from expects GDP growth to slow to 1-2% running China’s biggest movie-theatre this year, the slowest pace in four chain, he bought control of AMC Entertain- years. ment Holdings in the US in 2012. He’s also The economy expanded 2.4% in building a 50bn-yuan ($7.7bn) complex in 2015, in line with the government’s Hong Kong financial secretary John Tsang announces the annual budget report at the Legislative Council yesterday. eastern China that will include the world’s estimate, and better than a median largest movie studio. 2.3% forecast by six economists sur- budget was no surprise. “The long- and trade links with China have also property rate waivers and a public 2014’s street protests and occupa- Yet Wang, who’s sought to invest in Met- veyed by Reuters. term challenges are not something weighed on growth, including the re- housing supply target of 280,000 tion of roads – part of a push for full ro-Goldwyn-Mayer years ago, still lacks Tsang noted the economy grew that can be solved in a single budget. tail and tourism sectors which have units for 10 years up to 2026. democracy that ended without any control of a major Hollywood studio, an a seasonally adjusted 0.2% in the But the support for SMEs, technol- been hit hard by a drop in mainland Hong Kong home prices remain concessions from Beijing’s leaders – ambition he’s voiced in the past. fourth quarter, slowing from a re- ogy and innovation is certainly what tourists. among the highest in the world. also lingers. “Hong Kong is facing a One is up for sale. Viacom chief execu- vised 0.6% in the third, and expand- Hong Kong could do with.” “Weak tourism was caused by the The recent riot, slowness in roll- structural problem,” said Avery Ng, tive offi cer Philippe Dauman said on Tues- ed 1.9% from a year earlier. After a stint of healthy surpluses, anti-corruption campaign in China ing out major infrastructure projects a pro-democracy activist with the day that it’s exploring the sale of a stake Some economists said core sectors including HK$30bn ($3.86bn) for the and a relatively strong Hong Kong such as a rail link with China and League of Social Democrats. in Paramount Pictures and that it expects including trade, property and fi nance current fi nancial year, Tsang said he dollar compared to neighbouring HSBC Holdings’ recent shunning “Unless we have true universal to reach an agreement by June. A Wanda were in trouble and needed longer- expected the city to run up defi cits economies,” said Iris Pang, an econo- of the city for its headquarters, are suff rage, and can use our surpluses representative wasn’t immediately avail- term solutions. “More one-off relief in its consolidated accounts for two mist at Natixis. posing a stiff test for Hong Kong’s to have genuine reform in terms of able to comment on the prospects of the measures were always likely given the years starting from 2018, largely due Among the nearly HK$40bn worth Beijing-backed leader Leung Chun- the social welfare system as well as Chinese company being a suitor for Para- weaker outlook for the Hong Kong to the need to pay for healthcare re- of measures to support the econ- ying and have tarnished its reputa- the education system...a one-time mount, while a Viacom spokesman de- and global economy,” said John Zhu, form and retirement protection. omy were a personal tax cut up to tion as a law-abiding and effi cient sweetener won’t help alleviate the clined to comment. an economist for HSBC, who said the The city’s deep fi nancial, service HK$20,000 for some city residents, global business hub. The shadow of anger of Hong Kong people.” Honda aims for green cars to make BHP boss faces $11bn up two-thirds of its line-up by 2030 dilemma as prices fall Reuters Tokyo Reuters are already facing calls from some quarters to Sydney/London make the best of a terrible market. Honda Motor Co yesterday said it aimed for “This is exactly what BHP should be doing. new-energy vehicles to account for two-thirds of Using their strength of balance sheet to make its line-up by 2030 from around 5% now, as in- he world’s largest miner BHP Billiton bottom of cycle acquisitions and during boom creasingly stringent global emissions regulations is sitting on a $11bn cash pile and what times pay out most of their earnings – rather prompt automakers to make greener cars. TCEO Andrew Mackenzie does with the than buy and or invest at top of cycle,” said Japan’s third-biggest automaker by sales said money will be a critical test of his ability to in- Paul Xiradis, chief investment offi cer of Aus- in its latest strategy update that its petrol-battery vest during the industry’s worst downturn in tralia-based Ausbil Investment Management, hybrid, plug-in hybrid, battery electric and fuel decades. which owns BHP stock. The world’s mining cell vehicles (FCV) would collectively outnumber Announcing plans this week to slash its div- giants were heavily criticised in the years after its petrol-only off erings in less than 15 years’ time. idend and shore up its balance sheet, the min- the 2008 fi nancial crisis, accused of making Plug-in hybrids – which can also be recharged ing giant said repeatedly that it would consider ruinous acquisitions and – worse – pursuing via household wall sockets – will be “at the core of “opportunities” – cranking up the rhetoric, costly mine projects at the top of the market, electrification in the future” for Honda, said chief even as it warned of prolonged price pain. fuelling over-supply when the market could executive Takahiro Hachigo. One of a generation of conservative min- least aff ord it. But as the cycle hits bottom, Honda will release a plug-in hybrid in North ing bosses brought in after years of breakneck steep spending cuts have left BHP, a mining America by 2018 that shares the same production growth, former BP executive Mackenzie is not behemoth, pumping in enough cash to stay in platform as its Clarity FCV announced in October, an empire builder by nature. He has not done a business but, some analysts argue, not enough Hachigo said. It will then make plug-in versions single major acquisition since he took the reins to grow. That puts the question of whether to of its major models and raise model numbers, he A man gets behind the wheel of a Honda S660 car at its showroom in Tokyo. The automaker at BHP in 2013. But with indebted miners An- wait or to buy fi rmly on the table: is the time said. The announcement makes Honda the latest said in its latest strategy update yesterday that its petrol-battery hybrid, plug-in hybrid, glo American and Freeport-McMoRan under now, or is it a decade too soon? automaker to set dramatic long-term emissions- battery electric and fuel cell vehicles would collectively outnumber its petrol-only off erings in unprecedented strain, bankers say some of the “BHP have a strategic dilemma,” one indus- related targets. In October, Toyota Motor Corp less than 15 years’ time. world’s most coveted copper mines could be- try banker said. Anglo, Freeport and Glencore said it aimed to cut new vehicles’ average carbon come available – testing Mackenzie’s deal-mak- have all put assets on the block as part of ef- dioxide emissions by 90% from 2010 levels by tions to revitalise research and development production flexibility – in line with an industry ing mettle. “It’s not quite a war chest, but who forts to cut debt. For now, advisers say none of 2050. (R&D). trend – and a focus on global models such as the knows what might come under distress in this those meets BHP or indeed chief rival Rio Tin- Behind the push are governments globally On Tuesday, Honda said managing off icer Fit compact, Civic and Accord sedans. sort of environment,” the BHP boss told inves- to’s requirements – some are not copper, oth- rapidly raising emissions standards. But limited Yoshiyuki Matsumoto would direct R&D, moving “The key to improving sales is our global mod- tors and analysts, when asked about the $11bn. ers are too small or in risky jurisdictions once infrastructure such as charging stations make on from leading automotive operations. els ... which are so central to the company’s brand. Only a few deals and only one metal – cop- seen as pioneering and now frowned upon. some green cars a hard sell, while low oil prices “Our appointment of a new head of the R&D If we develop these models to raise their appeal, per – can expect to meet BHP’s tough require- But if Anglo and Freeport fail to fi nd buyers have sparked demand for sport utility vehicles centre is intended to position R&D at the centre it will translate into higher sales,” Hachigo said. ments for an adequate return. Copper is the for what they have got for sale now, bankers and other petrol-guzzlers. of all product development, and make it respon- Separately, Honda repeated at the strategy up- most sought-after industrial metal, as existing say better mines could come up. More likely, Honda’s new-energy target featured in the sible for the design and performance of each and date that it did not plan to off er further financial mines age and new ones are found in increas- according to industry advisers, the compa- automaker’s strategy update, the first under every vehicle,” Hachigo said yesterday. support to long-time supplier Takata Corp, whose ingly diffi cult locations. nies will be reluctant to sell crown jewels and Hachigo. The CEO, who assumed the job almost a The strategy update also included a shift airbag inflators are at the centre of a deepening But the buy-or-wait debate, say investors, would put themselves in play, alongside cop- year ago, has restructured personnel and opera- to standardised vehicle platforms to increase global recall. bankers and analysts, is gathering steam inside per-heavy players like Lundin Mining, or First some of the industry’s largest players, who Quantum, already under the scanner. Gulf Times Thursday, February 25, 2016 15 BUSINESS

Bouygues CEO turns up pressure on Orange in phone merger talks

Bloomberg for 2015. “I’m interested in having a 769,000 mobile clients and 360,000 stake to be diluted, clearing one poten- Paris stake in Orange’s capital to benefi t from fi xed broadband customers. tial hurdle to a transaction, a person fa- future value creation in France and Combining the division with Orange miliar with the matter said this month. abroad.” would create a French phone giant. To The government holds about 23% of ouygues turned up the pressure in Talks with Orange need to be com- overcome antitrust opposition, Orange Orange, the former state phone mo- the talks to sell its mobile phone pleted by the end of March to limit dis- would sell part of Bouygues Telecom’s nopoly, and wants to remain the larg- Bdivision to Orange, demanding a ruption to clients, employees and the assets to Numericable-SFR and Iliad, est shareholder and retain a blocking stake of at least 10% in its bigger rival market itself, the CEO said. Faced with the No 2 and 3 operators in the French minority in terms of voting rights, the and saying there’s a 50% chance the a price war in the French mobile-phone market in terms of clients. In June, person said. deal won’t happen. and Internet market, he opted to nego- Bouygues rejected a €10bn off er from For Bouygues as a whole, operating A stake of 10% to 15% in Orange tiate the sale of Bouygues Telecom to Numericable. profi t before one-time items climbed “would be fi ne,” but anything less would Orange in exchange for cash and shares. Bouygues has no plan to get a bigger 6% to €941mn in 2015, the Paris-based be rejected, chief executive offi cer Mar- Shares of Bouygues rose 0.1% to stake in Orange than the French gov- company said in a statement. Analysts tin Bouygues told reporters at press con- €34.67 at 11:36am in Paris, while Or- ernment “for now,” the CEO said. He had estimated €880mn on average. ference in Paris yesterday. The deal is ange lost 2.2% to €15.63. said he can’t forecast what the govern- “The group’s transformation strat- valued at as much as €10bn ($11bn). Bouygues Telecom’s earnings before ment will do with its Orange stake in egy started to produce results in “If we don’t reach a win-win deal for interest, taxes, depreciation and amor- the future. A shareholder pact between 2015,” Bouygues said in the statement. all, we’ll pursue our standalone strat- tisation rose 8% last year to €752mn, in Orange and the French government “Thanks to the strategy of transform- egy,” the executive said after the French line with a target of €750mn, as it elim- isn’t in the cards, he said. ing its business segments, the group construction and telecoms group re- inated jobs and other costs. Revenue As part of a deal with Bouygues, should continue to improve profit- “If we don’t reach a win-win deal for all, we’ll pursue our standalone strategy,” ported better-than-estimated profi t climbed by 2%, after the carrier added France is willing to allow its Orange ability in 2016.” says Bouygues.

Viacom weighs selling BP sees end in sight for oil minority stake in Paramount fi lm unit

Reuters majority stake in US movie stu- New York dio Legendary Entertainment. glut, but impact will linger Hunan TV & Broadcast Inter- mediary Co has provided fi nanc- Stock overhang could take at fast. Last year, global oil demand iacom is considering ing to Lions Gate Entertainment least a year to disappear; Saudi’s grew by twice its 10-year average,” selling a “signifi cant” Corp, and Huayi Brothers Media al-Naimi says more nations could he said. Vminority stake in its Par- Corp produces fi lms with STX join output freeze; even with Demand growth, although prob- amount Pictures movie studio, Entertainment. Alibaba Pictures carbon price of $100, emissions ably not as strong as last year, would chief executive Philippe Dau- was an investor in Paramount’s would still rise continue, he said, while new sup- man said. 2015 release Mission Impossible: plies, especially from US tight oil — In the face of weak advertis- Rogue Nation. Reuters around half a million bpd below its ing sales and poor ratings at its With the importance of Brussels peak — contract. cable networks, investors have China’s fi lm market growing, “Even allowing for Iranian sup- been urging Viacom to sell all or Hollywood studios have tai- ply, I see fl at to falling global supplies part of the movie studio, saying lored content to increase the trong demand should start to this year and so I think you’ll see a possible buyers include Chinese chances of getting movies into cut into an oil glut around the big swing in the market. By the end fi rms and tech companies look- the country and to build their Send of this year, even as new of this year, the market moves closer ing to develop original content. appeal to Chinese audiences. Iranian supplies enter the market into balance,” he said. The entire studio, which For the fourth Transformers and doubts persist over whether ma- “There will still be a highly sig- Viacom says is in a rebuilding movie in 2014, Paramount fi lmed jor oil producers will reduce output, nifi cant stock overhang,” he added, process after some high-profi le scenes in Hong Kong and main- BP’s chief economist said yesterday. which could take a year or more to failures, is worth $4bn, Sanford land China and added Chinese But a stock overhang could still disappear. Bernstein analyst Todd Juenger actress Li Bingbing to the cast. linger for at least a year. BP also for the long term to 2035 estimated this week. Viacom Sony Corp changed 2015 fi lm Oil prices dropped to their low- predicts rising oil demand as the declined to say what percent- Pixels for global audiences, re- est since 2003 last month under number of vehicles outside the de- age it might sell. moving an attack on the Great the pressure of a supply surplus of veloped world triples. Dauman, who took on the Wall of China and other politi- around 1mn barrels per day (bpd). It has previously underestimated role of executive chairman from cally sensitive plot points, in- Saudi Oil Minister Ali al-Naimi renewable sources, such as wind and 92-year-old majority owner ternal e-mails showed. has ruled out imminent Opec pro- solar, while over-estimating nuclear Sumner Redstone earlier this Paramount, whose fi lms this duction cuts, although he said on and biofuels. Overall, it expects non- month, is under pressure to re- year include sequels to its Star Tuesday he was confi dent more na- fossil fuel to grow by around 6.5%. vive Viacom’s fortunes after the Trek and Teenage Mutant Ninja tions would join a pact to freeze out- That is more than any other en- company missed Wall Street Turtles franchises, is increasing put. ergy source, although its share stays earnings estimates for the fi fth its movie output after reducing Fellow Opec member, Iran, mean- below 10% of the mix, as the EU straight quarter, sending its its slate in recent years and ex- while, is eager to increase output af- Emissions Trading System (ETS), stock down more than 21% to a panding into TV production. It ter sanctions were lifted. which BP says it supports, remains fi ve-year low. ranked sixth among major Hol- BP’s Spencer Dale said he could too weak to drive a faster transition Mario Gabelli, the second- lywood studios in 2015 US box not predict what Opec and other to lower carbon sources. largest owner of Viacom voting offi ce receipts. major producers would do and said BP foresees a 20% rise in planet- shares, has suggested Alibaba Paramount reported an op- promised freezes had come from warming emissions by 2035, or by Group Holding as a partner. erating loss of $146mn for the nations unlikely to increase output 10% in its lower carbon scenario, Activist investor Eric Jackson, quarter ended in December, anyway. which assumes a carbon price of whose fi rm SpringOwl Asset more than double the amount “What is clear, is the oil market $100 per tonne. Management has a small Viacom a year earlier. Terminator: Gen- is behaving like any market. Prices That compares with below fi ve eu- stake, has called for a sale of a isys was among its recent box are falling quite sharply and, as a ros per tonne at present on the over- “Even allowing for Iranian supply, I see flat to falling global supplies this year and so I think you’ll see Paramount stake to Alibaba or to offi ce disappointments. response, demand is growing quite supplied ETS. a big swing in the market. By the end of this year, the market moves closer into balance,” Dale says. Amazon, one of many tech com- Viacom has been approached panies expanding into develop- by several strategic investors ing original movies and shows. and has retained PJT Partners Alibaba declined to com- as its fi nancial adviser, Dauman ment. said at a media conference. Car maker Aston Martin to open new factory in Wales A Chinese fi rm would be a Given how undervalued Par- likely buyer, analysts and inves- amount is, it makes sense to sell AFP DBX crossover model that incorporates Minister David Cameron said in a Chief executive Andrew Palmer said the tors said. Hollywood studios are a minority stake rather than the London SUV features, as the classic brand attempts statement announcing the deal. board had been “consistently impressed also eager to work with Chinese whole company, analysts noted. to diversify including into a line of electric “With our economic strengths and easy with the focus on quality, cost and speed companies to help get their fi lms “If they can monetise some cars. The plant will be in the village of St access to European markets, the UK from the Welsh government team”. distributed in China, which lim- minority interest in this, it British car maker Aston Martin, fictional Athan on former defence ministry land and automotive sector is thriving,” he said, The new plant is part of a £200mn its the number of foreign fi lms could be a relatively big number spy James Bond’s favourite model of complements the current plant at Gaydon as he campaigns for Britain to stay in the (€253mn, $278mn) investment plan raised allowed into the country each which would go a long way to- transport, yesterday said it had picked in central England. European Union ahead of a membership from private investors last year. year. China is the world’s sec- ward helping the stock price Wales as the site for a second plant due to “Aston Martin is an iconic British brand referendum on June 23. Aston Martin is forecasting that more ond-largest fi lm market. recover,” said Salvatore Muoio, begin production in 2020. and the decision to invest here shows The car maker had considered potential than 90% of production at the Welsh site Chinese property and invest- whose fi rm, S Muoio & Co, is Output at the plant will include the new real confidence in our economy,” Prime sites in the rest of Britain and abroad. will be for export. ment fi rm Dalian Wanda Group Viacom’s 10th biggest voting agreed in January to acquire a shareholder.

Draghi has two weeks to map ECB plan that won’t let you down

Bloomberg Oxford Economics, who doesn’t expect Now, it may also face practical bar- €20bn, the nation might run short as as Germany would fi nd it acceptable to ence market pricing. In September, Frankfurt such a move just yet. “You’d have to sort riers. early as November. Gianluca Salford, buy riskier bonds from elsewhere. the ECB lifted the ceiling on the share of throw the rule book out. It might be About two-thirds of QE purchases a bond strategist at JPMorgan Chase “You’ve really got to sort of put that of each bond issue banks can buy. It quite interesting to see whether Draghi, are government and agency debt, with Bank, estimates the limit under an ex- in print, write it down, to realise how can do so again, but would probably ario Draghi has two weeks as he tends to do when he’s confronted covered bonds and a small proportion panded programme may be reached be- completely unworkable politically that limit itself to securities without col- left to decide how to ramp by these situations, pulls another rabbit of asset-backed securities making up tween mid-2017 and autumn next year. would be,” Nixon said. “It’s just a com- lective action clauses, which grant a Mup stimulus in a way that out of the bag.” the rest. The Governing Council agreed To ease the reliance on German debt, plete non-starter.” blocking minority the central bank doesn’t upset either his colleagues or Here are the main options and obsta- in December to make regional and local the ECB could eliminate the capital The ECB could allow purchases of doesn’t want. investors. cles. government debt eligible. key that links buying to economic size. debt even when the yield is lower than “You could be creating market seg- When European Central Bank pol- A cut in the deposit rate of at least National central banks, which make That would allow other countries with the deposit rate. That’s tantamount to mentation,” Salford said. “If you have icy makers meet in Frankfurt from 10 basis points from the current minus the purchases, buy public-sector bonds more outstanding debt, such as Italy, to locking in losses, since the income from some bonds of which the ECB might March 9-10, they’ll consider whether 0.3% is wholly expected by investors, issued by their own country. They must buy a greater share. the deposit facility wouldn’t cover the buy more than others, this could create negative interest rates and €60bn Eonia forwards show. stick to debt with a yield higher than That strategy might make it look shortfall on bonds held to maturity. two diff erent curves.” ($67bn) a month of debt purchases As that would further squeeze the the deposit rate and a maturity of 2 like the ECB is supporting nations that “For the hawks, that might be an If policy makers are deadlocked, the is enough to revive consumer prices. profi tability of lenders, offi cials may years to 30 years, and are limited to 33% pursued riskier fi scal policies. Worse, easier sell than shifting away from the easiest solution might be to leave QE as With another rate cut priced in by introduce a two-tiered rate or grant of any issue, or 25% if a blocking mi- it could draw accusations of monetary capital key,” said Stefan Schneider, an it is, relying instead on a steep cut in the markets, the biggest question mark higher exemptions for minimum re- nority applies. fi nancing, which is banned under Euro- economist at Deutsche Bank in Frank- deposit rate. hangs over how to customise quanti- serves, strategies used by peers such The country to watch is Germany. As pean Union law. furt. The Governing Council will be wary tative easing. as the Swiss National Bank. ECB Vice purchases are eff ectively linked to the “They chose the capital key for a rea- The ECB might expand the asset of disappointing investors though. On The ECB president has said there are President Vitor Constancio said last size of the economy, it makes up almost son,” said Peter Schaff rik, head of Eu- classes eligible for QE, perhaps adding December 3, when the rate was cut by no limits to how far policy makers will week offi cials should “mitigate the ef- a quarter of QE. Yet of the 51 securi- ropean rates strategy at Royal Bank of corporate bonds. The concern is that 10 basis points and QE extended by go within their mandate, yet sub-zero fect on banks” of any easing. ties in the Bloomberg Germany Sover- Canada in London. “Do I think it would there may not be enough company debt six months with the monthly pace left rates carry risks and expanding QE is The ECB’s accommodative mon- eign Bond Index, only 15 meet the rules make sense to change that from a mac- available. According to Anatoli An- unchanged, the euro soared the most easier said than done. He’ll walk a fi ne etary policy has not been supported on yield and maturity, accounting for roeconomic point of view? Absolutely. nenkov, an economist at Societe Gen- since 2009 and bonds slumped. line between convincing investors he unanimously by euro-area governors. $379bn of the $1.1tn index. Do I think that’s the preferred measure erale, “there’s quite a lot of liquidity “Could they get away with it? Sure,” can overcome the hurdles and avoiding Yesterday, Bundesbank President Jens Under the current plan, Germany and most easily adoptable within the constraint already.” said Carsten Brzeski, chief economist the market disappointment that greet- Weidmann said at a press conference may face liquidity constraints between council? I’m not so convinced.” The central bank is even able to buy at ING-Diba in Frankfurt. “But there ed the last adjustment in December. that it’s “dangerous to simply ignore” April 2017 and March 2018, accord- Allowing central banks to buy other equities, he said. That would have to probably would be a stronger euro, and “It’ll be very challenging” to increase long-term risks and side-eff ects of ing to the Bruegel research institute in nations’ public debt would also be a be in a “real emergency” because the maybe the most important part would QE, said James Nixon, an economist at ECB accommodation. Brussels. If monthly QE is increased by hard sell. It’s unlikely a country such central bank doesn’t want to influ- be a loss of credibility.” Thursday, February 25, 2016 GULF TIMES BUSINESS Qatar real estate price rally looks drawing to an end: Samba

By Pratap John After years of large surpluses, this oil price shock ance. However, this largely reflected the resumption Chief Business Reporter has pushed GCC fiscal accounts into deficit. These are of domestic government bond issuance in Saudi around 15% of GDP for Saudi, Bahrain and Oman, and Arabia for the first time since 2007. GCC corporates are projected to worsen in 2016. were less active, although banks continued to raise The long rally in Qatar real estate prices looks draw- “Hopes for an improvement hinge on both a recov- funds in capital markets. ing to an end as “growth prospects weaken”, accord- ery in oil prices as well as sustained eff orts at fiscal Saudi Arabia issued $30bn in domestic bonds in ing to Samba Financial Group. consolidation,” Samba said. 2015, and is looking to issue a similar amount this This is despite the continued investment momen- Public spending has already been reined in and year, augmented by its first international sovereign tum from the FIFA 2022 World Cup preparations and further cuts are in prospect over 2016. In addition, all bond issuance. GCC sovereign issuance in general sustained population growth, Samba said in its latest GCC states have moved to reform their energy and is expected to rise this year, and banks may also be ‘GCC Chart Book’. utilities subsidies, and are preparing to introduce pushed to raise more funds. In Dubai also, Samba said real estate prices remain VAT by 2018. Generous welfare systems are likely All GCC central banks except Qatar and Oman have on the retreat, and are likely to stay weak as new sup- to be rolled back and Saudi Arabia is also looking to followed the US Fed in raising policy rates 25 bps. ply come on stream. Although, the lifting of sanctions privatise state assets and intensify diversification In contrast, Qatar is expected to lower its repo rate on Iran may provide some support from that source, eff orts. Generally, low public debt levels leave plenty from 4.5% to 2.5% to help banks dealing with strained it said. of scope for new debt issuance to help fund fiscal liquidity conditions, Samba said. In view of the low oil price, Samba said the GCC deficits, although governments will also look to draw Reflecting both an increase in policy rates as well producers will need to adjust to a major oil price on their own savings. as tightening liquidity as oil revenues decline, GCC shock. Last year saw a surge in GCC bond and sukuk issu- interbank rates have surged, it said. Ooredoo expands Cisco partnership Sheikh Faisal presents Oliveira with the QBA Crystal Shield. oredoo is building its long-term strategic re- Olationship with technol- ogy leader Cisco, announcing two new signifi cant agreements at the Mobile World Congress in QBA, Portuguese Barcelona recently. The two agreements will sig- nifi cantly expand the range of services available to Ooredoo offi cials discuss customers, as companies look to deploy innovative solutions to reduce costs and increase pro- co-operation ductivity. With the fi rst agreement, en- terprise customers will now be ffi cials of the Qatari readiness of the business sector able to lease Cisco technology Businessmen Asso- and present concrete proposals from Ooredoo, providing them Ociation (QBA) have met to his Qatari counterpart. with access to cutting-edge with a business delegation led Oliveira also expounded on technology. Through the second by the Portuguese secretary of ways to co-operate in several agreement, Ooredoo will be able state for internationalisation sectors such as banking, ener- to bring Cisco’s Virtual-Man- to discuss ways to strengthen gy, tourism, and health, “espe- aged-Services (VMS) suite to the co-operation ties in various cially since the state was able to Qatar market. fi elds. go beyond the economic crisis Ooredoo Qatar chief execu- QBA chairman Sheikh Faisal and succeeded in the develop- tive offi cer Waleed Mohamed al- bin Qassim al-Thani held talks ment of these sectors.” Sayed said, “We are continually yesterday with Jorge Costa He also invited Qatari busi- looking to enhance the range of Oliveira and his accompany- nessmen to visit Portugal “and services and solutions available ing delegation, in the presence study the actual opportunities to companies in Qatar, working of Portuguese ambassador on the ground.” with an ecosystem of technology António Tânger. The QBA said the Portuguese leaders. Our relationship with During the meeting, Sheikh economy depends on exports, Cisco, the worldwide leader in Faisal discussed existing rela- private investment, and the networking, continues to bring tions with several Portuguese development of the high-tech new solutions that enable com- companies, and highlighted sector. Travel and tourism are panies to connect, communicate the potential of Portugal as “a also considered vital sectors in and deliver incredible benefi ts Al-Sayed (left) with Chris Dedicoat, executive vice-president (Worldwide Sales - Cisco) exchange the agreements at the Mobile World touristic destination that en- the country’s economy. for their customers.” Congress in Barcelona. joys security and stability in a “Portugal has succeeded in Through the new Cisco leas- time of turbulence all over the reaching the targeted rates of ing agreement, companies period of three years, and cus- streamline IT investment strat- Services (VMS), Ooredoo will be site-to-site, remote access, and world.” the European Central Bank and will be able to lease essential tomers will be able to buy back egy. We have pushed for this able to off er its customers au- Internet gateway applications. He also stressed on the inter- the International Monetary business infrastructure with- their equipment at the end of leasing agreement because it tomated cloud-based services, Based on the European Tel- est of Qatari businessmen to Fund, and the economy began out having to make a large in- their contract for a low cost. enables Ooredoo business cus- enabling them to outsource the ecommunications Standards In- invest in the industrial sector to recover in 2015 where the vestment. Hardware available Customers can also opt to dis- tomers to stay up-to-date with management of their network stitute (ETSI) management and as part of Qatar’s vision to di- total gross domestic product through the agreement includes continue using the equipment the latest solutions and remain and IT services to a trusted tech- orchestration, Cisco Cloud VPN versify its income sources. reached an annual growth rate networking solutions, collabo- on lease, or have their solution within their budgets.” nology partner. delivers on the promise of au- For his part, Oliveira pointed of 1.5 %, mainly due to the re- ration technology, telephony, replaced with new solutions. Ooredoo has also agreed to Ooredoo will begin with Cis- tomation and simplifi cation for out that his visit aims to in- covery in consumer spending,” video and instant messag- Al-Sayed said, “In the current work with Cisco to deliver Vir- co’s Cloud VPN, part of Cisco’s managed services and leverages crease the value and volume of QBA added. ing, and servers. environment, more companies tual Managed Services (VMS) to Virtual Managed Service portfo- Cisco’s best-in-class portfolio partnership and co-operation Sheikh Faisal concluded the With the leasing agreement, in Qatar are looking to man- the Qatar market. lio, which off ers secure business of enterprise virtualised net- between Qatar and Portugal. meeting by presenting Oliveira each order will be in place for a age costs and support a more With Cisco’s Virtual Managed connectivity and routing for working functions (VNFs). He also wanted to confi rm the with the QBA Crystal Shield. Doha hotels’ rooms beIN Media Private sector must be a yield plunges 24.4% Group may to $155 in January: EY buy Miramax driver of job creation for Reuters, QNA Doha GCC nationals: Report By Santhosh V Perumal longer stays,” it said. Elsewhere in the GCC, EY Business Reporter found that hotels in Madina saw rooms’ yield soar 17.5% to $153 on the back of 1% rise in eIN Media Group is optimistic ooz Allen Hamilton strategies are adopted to ensure the private sector has — for too occupancy to 70% and 15.2% in average room of agreeing a deal to buy Cali- has urged private sec- that GCC nationals are success- long — been treating nationali- Qatar’s hospitality sector began the year 2016 rate to $216. bfornian fi lm studio Miramax, Btor organisations across fully integrated into the private sation quotas as a liability and on a pessimistic note with its hotel room’s yield Jeddah witnessed 5.9% fall in hotel rooms’ yield the Qatari fi rm’s deputy chief execu- the Gulf Cooperation Coun- sector workforce. a cost rather than an opportu- plunging double-digit in January but Doha has to $159 owing to a 3% decline in occupancy to tive told Reuters yesterday. cil (GCC) countries to adopt a Booz Allen Hamilton said the nity, and that the majority of been trying to reverse the trend of being an 65% and 1.9% in average room rate to $244. “We are optimistic. I think you “more robust and tailored” hu- private sector enterprises need private sector organisations expensive destination relative to other Gulf Riyadh witnessed 6.8% plunge in hotel rooms’ might hear something on this in the man resources (HR) model to to put an end to rule avoidance lack the required talent man- cities, according to Ernst and Young (EY). yield to $125 as there was 5.2% decline in short-term,” Yousef al-Obaidly, dep- improve labour nationalisation and illicit practices to meet agement capabilities to attract Doha hotels’ rooms yield plunged 24.4% to $155 the average room rate to $203 and 1% in uty CEO of state-owned beIN Media levels in the private sector. government quotas, which are nationals from the public to the in January 2016 on 16.1% decrease in average occupancy to 61%. Group, told Reuters on the sidelines In a report released yester- only to the detriment of their private sector. room rate to $229 and 8% in occupancy to 67%, In the UAE, hotels in Dubai (overall) witnessed of a company event in Doha. day, Booz Allen Hamilton said productivity, profitability, “True nationalisation can EY said in its Middle East Hotel Benchmark 9.3% shrinkage in rooms’ yield to $260 on 8.2% Privately-held Miramax, which the private sector must explore and sustainability. The sector be achieved only by balancing Survey. fall in average room rate to $300 and 1.1% in owns the rights to hundreds of Hol- new approaches to hiring, de- must work ‘holistically’ to- the strategic needs of the or- “Looking to Doha, the city has been trying occupancy to 86.6%. lywood fi lms including “Bridget veloping, nurturing, and re- wards greater levels of nation- ganisation with the long term to reverse the trend of being an expensive Abu Dhabi’s hotels rooms’ yield plummeted Jones’ Diary” and “The English Pa- taining nationals, in order to alisation and tap into the local benefi ts of integrating into the destination relative to other cities in the GCC (Gulf 15% to $116 on 12.5% fall in average room rate to tient,” was exploring a potential sale, meet critical employment ob- workforce as a source of rich local society”, said Rasheed Cooperation Council) with high average daily rate $145 and 2% in occupancy to 79%. sources told Reuters last July. ligations and leverage local tal- talent. Eltayeb, vice-president (Public (ADR) and low occupancy rates,” EY said. However, hotels in Ras Al Khaimah (overall) An investor group including state- ent as a competitive advantage. “Successfully rethinking Sector practice) at Booz Allen A new tourism strategy adopted by the Qatar saw 35.9% surge in rooms’ yield to $117 owing owned Qatar Holding and Thomas J According to the Interna- strategies to attract and retain Hamilton and co-author of the Tourism Authority is aiming at attracting a to 14.1% jump in average room rate to $183 and Barrack Jr’s investment fi rm Colony tional Monetary Fund, the nationals in the private sector report. bigger volume of tourists; growing the leisure 10.3% in occupancy to 64.2%. Capital bought the company from GCC’s private sector was ex- workforce will off er tangible “Companies that have segment, and trying to capture more non-GCC Manama (Bahrain) witnessed 8.6% gains in Disney in 2010 for $660mn. pected to create approximately benefi ts to private organisa- preemptively implemented arrivals, it said, adding the country is developing hotel rooms’ yield to $105 on 9% increase in Meanwhile, beIN and Discovery 600,000 new jobs for nation- tions and increase their cultur- this approach are already reap- several tourism products throughout the occupancy to 54% even as average room rate Communications yesterday formal- als by 2019 – only 50% of the al diversity and social impact,” ing benefi ts by attracting the country, such as eco-lodges and desert hotels, to were down 9.3% to $194 in January 2016. ised the commencement of their 1.2mn projected nationals en- said Fuad Abdelhadi, vice- cream of the national talent diversify its tourism off ering and spread tourism Kuwait saw its hotel rooms’ yield drop 9% to partnership that will see six chan- tering the workforce by that president, People and Organi- base. Only those that set upon density away from Doha. $110 on the back of 10% decline in occupancy nels join the Doha-based network’s time. sation Practice, at Booz Allen a strategy-led and all-inclu- “This diversification strategy should allow to 39% but there was 13.3% expansion in line-up, providing new and expand- This indicates the likelihood Hamilton Mena and co-author sive nationalisation approach transferring travellers from airport transits to average room rate to $278. ed entertainment choices for the of an increase in national unem- of the report. can thrive in the region for the whole family. ployment rates unless new HR The report highlights that long-term,” Fuad said.