YUAN FILLIP | Page 3 POLITICAL HIT | Page 7 China dilutes South Korea dollar role in slashes 2017 forex basket GDP forecast

Friday, December 30, 2016 Rabia II 1, 1438 AH GULF UPBEAT : Page 2 Heavy lift ing GULF TIMES by foreign institutions helps QSE BUSINESS cross 10,400 ‘Prolonged low oil prices seen Qatar to trim oil output weighing on government ‘more than 11% in ’17’ to spend in Mideast’ A prolonged period of low oil price has impacted government spending in the Middle East, but the move toward economic diversification and reduced reliance on oil is prompting greater investment in the region’s high-potential sectors including real estate, construction, hospitality, tourism and comply with Opec cuts education, according to Booz Allen Hamilton. “There is also a greater national focus on achieving By Santhosh V Perumal defi cit is forecast to be QR28.3bn in 2017. operational eff iciency across sectors – and one notable Business Reporter The estimated defi cit in the budget was area that stands to benefit immensely from embracing due to a combination of a phase of high ex- digitally-enabled solutions is utilities,” it said in a forecast penditure on development and low energy of energy trends in 2017. atar’s oil output is slated to be lower prices, Global said. The utilities sector has historically under-invested in by more than 11% year-on-year in “The budget demonstrates the govern- information technology (IT), but an increasing number of Q2017, in line with the decision of ment’s commitment to complete all major utilities in the Middle East and North Africa (Mena) region the Organisation of the Petroleum Export- sector projects on schedule,” it said, the key are waking up to the benefits of smart technology. ing Countries (Opec) to cut production, focus for the 2017 budget is to ensure ma- In utilities and electric power, the traditional supply chain is according to an estimate of a leading eco- jor projects (including the ones associated undergoing change driven primarily by regulation, public nomic think-tank in the Gulf Cooperation with the 2022 World Cup) are executed as policy, plentiful inexpensive natural gas, and dramatic cost Council. planned. declines in renewable energy and storage. According to the Global’s calcula- Allocations for major projects were Dr Walid Fayad, executive vice president at Booz Allen tion, Qatar’s oil production is estimated QR93.2bn or 47% of the total expendi- Hamilton (Mena) said, “Energy and technology form the at 0.62mn barrels per day (mbpd) in 2017 ture. In 2017, the government is expected backbone of global economies and play a crucial role against 0.7 mbpd in the previous year, im- to sign contracts for new projects worth in driving the operational success of all other sectors. plying a fall of 11.43%. QR46.1bn, including infrastructure and As innovation and technological disruption become the The lower production is in line with the transportation at QR25bn, projects linked norm across the Mena region, we are increasingly seeing decision of the Opec and non-Opec mem- to World Cup 2022 facilities totalling regulators and policymakers embracing game-changing bers to collectively reduce output by 1.8 QR8.5bn, health and education QR5.8bn, trends in the energy sector – from support of renewable mbpd, eff ective from January 1, 2017, in or- Qatar’s lower production estimates are in line with the decision of the Opec and other sector projects valuing QR6.8bn. energy, advanced metering, and grid modernisation to big der to “rebalance” the over-supplied global and non-Opec members to collectively reduce output by 1.8 mbpd Funds to the education sector remain at data and cloud. We expect that wider adoption of these market. QR20.6bn, representing 10.4% of the ex- technologies will increase overall operational eff iciencies, Qatar’s hydrocarbon bellwether has an- Oil in 2017 seen capped below $60 by strong dollar, US shale penditure. They are allotted to complete especially in the wake of a period of prolonged low oil nounced its production cut plan, in line 28 schools and nurseries and construct 17 prices.” with the Opec’s call. “We have started Oil prices will gradually rise towards $60 in the first, to $56.51 in Q2, $58.69 in Q3 new schools and nurseries. Funds are also Dr Adham Sleiman, vice president, Booz Allen Hamilton advising our customers of the expected per barrel by the end of 2017, a Reuters and $59.78 in the fourth quarter. allocated for new projects in Qatar Univer- (Mena) said, “Data analytics has emerged as one of the reductions in oil deliveries to ensure the poll showed yesterday, with further Brent has averaged about $45 per barrel sity, including laboratories for the Faculty key trends that will shape the future of the energy sector state’s compliance with Opec’s alloca- upside capped by a strong dollar, a likely so far this year. of Sciences and the Faculties of Education, in 2017. Big data is rapidly changing the way the energy tions,” Qatar Petroleum president and recovery in US oil output and possible The poll forecast US light crude will Pharmacology, and Law. The money is also sector operates globally – by reducing costs, optimising chief executive Saad Sherida al-Kaabi said non-compliance by Opec with agreed average $55.18 a barrel in 2017. WTI has kept aside to complete the projects in the investments and reducing overall risk. In order to achieve recently. cuts. averaged about $43.38 so far in 2016. Qatar Foundation for Education, Science these objectives, and create additional value from On Qatar’s 2017 budget, Global said Qa- Brent crude futures will average $56.90 “Crude prices should trade most of and Community Development, including untapped areas, organisations in the Middle East must tar’s expected revenues may be “understat- a barrel in 2017, according to 29 analysts the time above their 2016 average. A infrastructure and transportation, and re- establish holistic digital strategies that include upgrading ed” as the current oil prices remain above and economists polled by Reuters. stronger upside potential should become search facilities in Education City. their required digital capabilities.” $50 a barrel. The current forecast is marginally lower evident especially in the second half In 2017, planned spending to the health- Change continues to be the defining feature of the global “Due to the conservative assumption than the $57.01 forecast in the previous when the market fundamentals will care sector stands at QR24.5bn, repre- energy sector in 2017, the Booz Allen Hamilton report said. that oil prices would remain around $45 survey. record a significant improvement (under senting 12.3% of the expenditure. Several In the oil and gas industry, as well as in electric power, per barrel, revenue expected in 2017 may be However, average Brent prices are the assumption of strong compliance projects, including the fi nal phase of Sidra major internal and external forces are driving change, understated, on our estimates, as current expected to improve with each to the Opec deal),” said Intesa SanPaolo Medical and Research Center, would be fi - requiring industry leaders to revisit strategies. oil prices stand well above $50 per barrel.” subsequent quarter, starting with $53.67 analyst Daniela Corsini. nanced during the year. “In oil & gas, 2016 was a year of continued overproduction. The budget oil price assumption was $48 Allocations have also been made to in- The resulting oil inventory overhang finally had an eff ect in for 2016, $65 (2013-15) and $55 (2012). crease facilities at Hamad General Hospi- reducing US shale production, but did little to spur demand The country’s 2017 revenue is estimated crease of 9%. This is ascribed to a boost in QR198.4bn vis-à-vis QR202.5bn in the tal, and complete the Laborers’ Hospital that’s needed to bring the global market into balance,” it to be QR170.1bn compared to QR156.0bn non-oil revenue, Global said. previous fi scal year, easing slightly by 2%, in the Industrial Area, and expand Hamad added. in the previous fi scal year, implying an in- Expenditure is expected to amount to it said, adding consequently, the budget General Hospital. Emirates receives first Rolls powered A380, resolves Turkish confi dence index issues with engine maker hits record low in December Reuters Dubai Reuters Ankara Emirates, the world’s biggest long-haul airline, has taken urkey’s economic confi dence index delivery of its first Rolls-Royce tumbled more than 18% to a record engine-powered Airbus A380 Tlow in December, data showed yes- superjumbo and has resolved its terday, pointing to an even more pessimis- dispute with the engine maker tic outlook after the economy shrank 1.8% over a technical issue. in the third quarter. The A380 jet arrived in Dubai The index, a broad measure of senti- yesterday morning, two days ment about the economy, dropped to 70.52 after Airbus said it would delay points in the fi nal month of the year from the delivery of 12 A380s to the 86.55 a month earlier, the Turkish Statistics airline over the next two years. Institute said. An Emirates spokeswoman told It was the lowest level since the institute Reuters the Rolls-Royce engine Emirates is the biggest operator of the A380 having ordered 142 of began compiling the data in January 2012. jet had arrived, but declined to the superjumbo jets. The index indicates an optimistic eco- say when it would be deployed nomic outlook when above 100 and a pes- for passenger services. diff erent spokeswoman told the Rolls-Royce engines. simistic one when below 100. In November, Typically, airlines will test new Reuters, adding two more Rolls- Rolls-Royce is to supply engines the index had risen 7.4% to 86.55. aircraft before they enter into Royce powered A380s would for 50 Emirates A380 jets. Negative sentiment towards Turkey has service. be delivered before the end of The $9.2bn deal, announced been refl ected in sharp declines in the lira’s The three-class configured 2017. in April 2015, was the largest value this year, with the currency dropping jet was originally scheduled Airbus said on Tuesday it had order in the history of the British as much as 19% against the dollar. for delivery on December 2. delayed deliveries to Emirates of company. It was at 3.5345 at 0910 GMT yesterday Negative sentiment towards Turkey has been refl ected in sharp declines in Emirates also operates two- six A380s in 2017 and six in 2018 Emirates is the biggest operator compared with 2.9185 at the end of 2015. the lira’s value this year, dropping as much as 19% against the dollar class, business and economy following agreements between of the A380 having ordered 142 The Tourism Ministry said yesterday A380s. Emirates and Rolls-Royce as well of the superjumbo jets. that the number of foreign visitors arriv- on Islamic State and Kurdish militants and reporters that Turkey will increase the The airline “has come to an as Emirates and Airbus. The rest of its A380 fleet uses ing in Turkey dropped 21.35% to 1.35mn in by a diplomatic standoff with Russia which minimum wage by about 8% next year to agreement with Rolls-Royce Emirates president Tim Clark Engine Alliance, a joint venture November. erupted more than a year ago. a monthly net minimum wage of 1,404 lira on the technical issue relating said on November 18 the airline of General Electric and Pratt & Tourism, which adds about $30bn to Moscow and Ankara agreed in August to ($397). Consumer price infl ation is forecast to engines for our A380s,” a had some technical issues with Whitney. gross domestic product each year, has been normalise ties. to be just over 8% at the end of next year, hammered by a spate of bombings blamed Separately, the labour minister told according to a central bank survey. Gulf Times 2 Friday, December 30, 2016 BUSINESS

Egypt haggling back in full force as world awash with wheat

Bloomberg Egypt buys more than any other country to help their strong negotiating position. Traders need to pay as little as possible in dollars, Clack said. London provide food for its more than 90mn citizens. a buyer.” The market closely watches tenders because A zero-tolerance policy on ergot, considered The urgency is growing. World wheat stockpiles Egypt buys more than any other country to help harmless in trace amounts, had led to rejected will reach a record 235mn tonnes at the end of provide food for its more than 90mn citizens. In a world overloaded with wheat, Egypt is bol- cargoes, fewer off ers and higher prices at the 2016-17 season, about 6% above the year- GASC was seeking wheat for February 1-10 ship- stering its haggling power. tenders earlier this year. That prompted Egypt, earlier level and almost 1% more than forecast ment in yesterday’s tender, and will now accept As the largest buyer prepared to tap internation- which needs to buy wheat for subsidised bread in October, the International Grains Council said US hard red winter wheat. That may increase al markets yesterday, traders will be watching programme, to return to international standards last month. Total grain inventories will surpass competition with top seller Russia, where exports how much of a discount it can get. On December for the fungus to allay traders’ concerns. Now, 500mn tonnes for the first time ever, the IGC esti- have so far lagged expectations amid a stronger 20, the country’s state-run buyer paid an aver- with confidence restored, the country has the mates. Benchmark wheat prices in Chicago have rouble. It may also prompt lower off ers from Ro- age of $1.73 a metric tonne less than the off ers upper hand as exporters from nations such as tumbled 14% this year, reaching a decade-low in mania and Argentina, which in last week’s tender it received, the biggest discount since traders Russia scramble to off load record harvests. August. sold to Egypt for the first time since February. boycotted tenders in September after off icials “Confidence returns over time,” said Charles In local terms, Egypt’s wheat imports are more “It’s a market where various origins can went back and forth with regulations on how Clack, an analyst at Rabobank International in expensive than they were in October, before compete,” Matt Ammermann, a commodity much of the common ergot fungus was allowed London. “There are still overwhelming exporter the nation floated its pound to end a crippling risk manager at brokerage INTL FCStone Inc in The market closely watches tenders because in imports. supplies kicking about in the global market and currency crisis. That’s giving Egypt’s General Plymouth, Minnesota, said by e-mail. “This plays Egypt buys more than any other country to help The market closely watches tenders because being the No 1 importer, Egypt is well aware of Authority for Supply Commodities an incentive to the advantage of buyers right now.” provide food for its more than 90mn citizens

Gulf markets end year with Heavy lifting by foreign fi rm tone after big swings

Reuters institutions boosts QSE Dubai By Santhosh V Perumal Business Reporter ost Middle Eastern stock markets closed higher yesterday after a tu- Mmultuous year in which many bourses eavy lifting by foreign institutions were hit hard by low oil prices, then recovered yesterday helped the Qatar Stock Ex- in the fi nal few months as the economic outlook Hchange witness 101 points accretion to improved. its key index, which surpassed the 10,400 lev- Fund managers generally expect a stronger els with ease. performance in 2017 because of the rebound in Buying was pronounced especially in the in- oil prices over the past couple of months, and surance and banking segments as the 20-stock Gulf governments’ partial success in stabilising Qatar Index gained 0.97% for the second con- their fi nances this year. secutive day to 10,436.76 points. A Reuters poll of 13 leading Middle Eastern Large and small cap segments saw increased fund managers, published yesterday, found buying support in the bourse, which reported a 62% expect to raise their allocations to regional marginal 0.07% year-to-date gains. equities in the next three months and none to Islamic stocks were seen gaining relatively reduce them — the most bullish view of equities slower than the conventional ones in the mar- since February 2014, before oil prices began to ket where domestic institutions were, however, plunge. increasingly net sellers and non-Qatari retail However, economic growth in most countries investors turned bearish. Trade turnover and looks likely to stay modest because of austerity volumes expanded in the market, where bank- policies as governments continue cutting their ing and realty sectors together accounted for defi cits. about 77% of the total trade volumes. The prospect of more US interest rate hikes Market capitalisation rose more than QR5bn, next year may also restrain the markets. or 0.95%, to QR563.47bn with large, small, mid Dubai’s market was the best-performing in and microcap equities gaining 1.24%, 0.99%, the Gulf this year because the emirate’s diverse 0.62% and 0.36% respectively. economy relies relatively little on oil. The Total Return Index gained 0.97% to The index rose 12% during the year, and edged 16,885.99 points, the All Share Index by 0.92% up 0.3% yesterday. to 2,869.16 points and the Al Rayan Islamic In- Abu Dhabi gained 6% during 2016 and dex by 0.68% to 3,882.99 points. climbed 1.7% yesterday because of a 2.5% jump The insurance sector saw its index expand in telecommunications fi rm Etisalat, which saw 1.82%, followed by banks and fi nancial services Buying was pronounced in the insurance and banking segments as the 20-stock Qatar Index yesterday gained 0.97% for the second consecutive day its highest trading volume since June. (1.21%), industrials (0.92%), consumer goods to close at 10,436.76 points. PICTURE: Noushad Thekkayil Saudi Arabia’s index rose 4% during the year, (0.72%), realty (0.55%) and telecom (0.31%), although it was down 23% at one stage. while transport fell 0.14%. About 74% of the traded stocks extended sellers to the tune of QR12.23mn against net shot up 65% to 0.38mn shares and value more It fell 0.4% yesterday as petrochemical stocks gains with major movers being Commercial buyers of QR2.5mn on December 28. than doubled to QR26.6mn on a 29% increase pulled back, with Saudi Basic Industries drop- Commercial Bank to launch Bank, Qatar Insurance, Qatar Electricity and GCC (Gulf Cooperation Council) institutions in transactions to 363. ping 1.1%. rights issue on January 8 Water, United Development Company, Voda- were net sellers to the extent of QR0.62mn The insurance sector reported a 27% ex- Nama Chemicals plunged its 10% daily limit fone Qatar, QNB, Doha Bank, Qatar First Bank, compared with net buyers of QR13.06mn the pansion in trade volume to 0.14mn equities, as it resumed trading. Commercial Bank will open subscriptions for Mesaieed Petrochemical Holding, Gulf Inter- previous day. 88% in value to QR9.93mn and 59% in deals The exchange had suspended its shares for a a QR1.5bn ($412mn) rights issue on January 8, national Services, Aamal Company, Barwa and GCC individual investors were also net profi t to 146. day because its accumulated losses had reached Qatar’s third-largest lender by assets said yes- Mazaya Qatar; even as Milaha, Al Meera and takers to the tune of QR0.03mn against net However, the transport sector’s trade vol- more than 75% of its capital. terday. The subscription period for sharehold- Qatar Islamic Insurance saw their equities lose buyers of QR1.89mn on December 28. ume plummeted 37% to 0.31mn stocks, value Egypt’s index rose 0.7% yesterday, bringing ers and holders of subscription rights will run sheen. Total trade volume rose 33% to 13.22mn by 46% to QR14.17mn and transactions by 35% its gain for the year to a spectacular 76%. until 1pm Doha time on January 22, the bank Non-Qatari institutions’ net buying in- shares, value by 21% to QR293.32mn and deals to 187. The market took off after the central bank said in a statement. creased substantially to QR66.11mn compared by 20% to 3,779. The telecom sector’s trade volume declined fl oated the Egyptian pound on November 3, Commercial Bank got approval from share- to QR18.38mn on December 28. The banks and fi nancial services sector’s 3% to 1.33mn shares while value rose 2% to making stocks much cheaper for foreign in- holders at an extraordinary general assembly Local retail investors’ net profi t taking de- trade volume more than doubled to 5.53mn eq- QR17.85mn. Deals shrank 27% to 265. vestors and drawing capital infl ows that could on November 16 to increase its capital by 18% clined to QR28.45mn against QR32.81mn the uities, value rose 9% to QR94.36mn and trans- The market witnessed a 1% dip in the real eventually end the country’s endemic hard cur- through an off ering of 58.8mn new shares at previous day. actions by 32% to 1,260. estate sector’s trade volume to 4.63mn equities rency shortage. QR25.5 each. However, domestic institutions’ net selling There was an 86% surge in the industrials but on a 22% increase in value to QR87.9m and Elsewhere in the Gulf, Kuwait’s index edged The bank’s shares closed 7.6% higher at QR32.5 increased considerably to QR24.79mn com- sector’s trade volume to 0.91mn stocks, 98% in 16% in transactions to 869. down 0.1% to 5,748 points; Oman’s index rose yesterday. pared to QR4.02mn on Wednesday. value to QR42.51mn and 61% in deals to 689. In the debt market, there was no trading of 0.3% to 5,783 points, while Bahrain’s index Non-Qatari individual investors turned net The consumer goods sector’s trade volume treasury bills and government bonds. gained 0.6% to 1,220 points.

Mideast funds see stocks rising in 10 best Saudi stocks for dividends, 2017; positive on Saudi budget picked by Aljazira Capital Saudi Airlines Catering Co Stocks near fair value, Aljazira Reuters “We are entering 2017 with a austerity policies mean the Saudi says, so dividends in focus; cement, „ Competitive advantage and prospects Dubai much more positive outlook for economy is likely to stay sluggish petrochemicals, telecoms among linked to fleet expansion oil than we had in 2016,” said Ku- next year. sectors making up picks „ Scope to add to service contracts with wait’s Global Investment House Waha Capital’s managing di- regional airlines, including Oman Air iddle East fund manag- head of regional asset manage- rector of capital markets in Abu Bloomberg Advanced Petrochemical Co ers have become more ment, Bader Al Ghanim. “Re- Dhabi, Mohamed Eljamal, said Dubai Mpositive toward equities gional governments have moved valuations looked expensive and „ Strong cash position in the region as the new year be- towards more prudent fi scal stock prices already refl ected „ Recovery in crude oil to drive valuation gins because of higher oil prices measures. positive news related to the Opec With most Saudi Arabian stocks trading Saudi Cement Co and eff orts by Gulf governments We are witnessing capital mar- agreement and the budget. near their fair value, investors would do to cut their budget defi cits, a ket reforms, such as Saudi aiming “It is diffi cult to sustain current best to target companies set to pay the „ Measures to streamline plant operations monthly Reuters poll found. at inclusion in the MSCI emerging valuations as fundamentals con- most in dividends in 2017, according to the „ Strong presence in eastern region The poll of 13 leading fund markets index in coming years. tinue to deteriorate,” said Dubai’s equities team at Aljazira Capital. Southern Province Cement Co managers, conducted over the last All this should bode well for eq- Almal Capital fund manager, Vijay The Riyadh-based securities firm week, found 62% expect to raise uities.” Harpalani. selected 10 stocks to recommend for „ Diversified plant locations – Jazan, Bisha their allocations to regional equi- Saudi Arabia said in its 2017 Despite long-term optimism dividend investors, after assessing these and Tahama ties in the next three months and state budget, released last week, towards Egypt, valuations there companies’ cash position, spending plans, „ Access to the lucrative western region, none to reduce them, the most that it had made consider- are also keeping funds cautious debt profile and the latest corporate and Tower-sharing deals are likely to where demand is projected to outpace bullish view of equities since Feb- able progress this year cutting a for now after a 74% leap by the in- industry developments. The team of provide operational and capital other parts of Saudi Arabia ruary 2014, before oil prices began huge defi cit. It predicted further dex this year. analysts is led by acting head of research expenditure savings for STC Yanbu Cement Co to plunge. progress next year and pledged to Twenty-three percent now ex- Talha Nazar, whose recommendations In last month’s poll, 43% ex- raise spending moderately to sup- pect to reduce their equity alloca- outperformed the average among his Etihad Etisalat Co – known as Mobily – are „ Implementation of waste-heat recovery pected to increase their alloca- port economic growth. tions to Egypt and 8% to increase Saudi Arabian peers in the past year. positives for Saudi Telecom system to achieve cost savings tions to Middle East equities and Forty-six percent of fund man- them, compared with 29% and The following are Aljazira’s selections, Yanbu National Petrochemical „ Recovery in demand in western region 7% to cut them. agers now expect to raise their 21% respectively last month. along with the reasons for their inclusion to drive valuation One factor behind the change is exposure to Saudi Arabia within Funds are extremely bearish in the list prepared for clients: „ Positive outlook on global ethylene and Qassim Cement Co the rebound of oil prices to about a regional equities portfolio and towards Turkish equities because Saudi Telecom Co propylene demand $55 a barrel in the last several 23% to reduce them, compared of militant attacks there, its in- „ Increased sales and lower cost of „ Well-placed for recovery in demand weeks from this year’s average of with ratios of 29% and 21% last volvement in the Syrian confl ict, „ Tower-sharing deals likely to provide feedstock support profitability from central region about $45, in the wake of an Opec month. currency weakness and other eco- operational and capital expenditure Saudi Vitrifi ed Clay Pipe Co „ Strong dividend payout history output agreement. However, after a strong rally nomic problems. savings Saudi Ground Services Co Fund managers also see Egypt’s by the Saudi market in the past Thirty-eight percent anticipate „ Regulator’s decision to allow companies „ Well-placed to gain from growing Saudi long-term economic outlook as two months, some managers be- reducing their equity allocations to off er wider range of services will Arabian housing industry „ Beneficiary of rapid airports expansion stronger after the Egyptian pound lieve valuations are no longer at- there and none foresee raising add to competition; however, ongoing „ Beneficiary of National Transformation „ Strong long-term relationship with Saudi was fl oated in November. tractive, and they point out that them. challenges at competitors Zain Saudi and Plan implementation Arabia Airlines Gulf Times Friday, December 30, 2016 3 BUSINESS

China vows more proactive China dilutes dollar role in fiscal policy in 2017, to limit debt foreign exchange basket Bloomberg Beijing Bloomberg Beijing China pledged more proac- tive fiscal policy in 2017 while hina diluted the role of the dol- vowing to enhance control lar in a trade-weighted foreign- over local government debt, Cexchange basket and added a as policymakers in the world’s further 11 currencies as offi cials seek second-largest economy seek to project an image of stability in the to sustain steady growth while yuan. defusing risks. The weighting of the dollar will fall Fiscal policy will be more proac- to 22.4% from 26.4% in the basket tive and eff ective next year, and from January 1, China Foreign Ex- more tax cuts will be rolled out, change Trade System said in a state- according to a statement re- ment yesterday. Additions include leased yesterday on the website the South Korean won, the South Af- of Ministry of Finance. China will rican rand, the United Arab Emirates “reasonably” expand expendi- dirham, Saudi Arabia’s riyal, Hunga- tures and improve eff icacy, while ry’s forint, Poland’s zloty and Turkey’s strengthening management of lira. local government debt, it said. While the yuan has tumbled to an The statement, which sets the eight-year low against the greenback, tone for China’s approach to the it’s trading near a four-month high economy next year, is in line against the CFETS RMB Index. Sen- with the outcome of the Central ior Chinese central bank offi cials have Economic Work Conference vowed to maintain stability against earlier this month. President Xi the basket as capital outfl ow pressures Jinping and his top economic mount. policy lieutenants pledged a “The move is aim to reduce the im- harder push to rein in risks that pact of dollar strength on the over- include asset bubbles. all performance of the basket,” said China needs to assess its Christy Tan, head of markets strategy financial diff iculties and hidden in Hong Kong at National Australia diff iculties, and to protect itself Bank. “It will also make it easier for against regional hazards, the China to manage yuan stability ver- ministry said. It also urged local sus the basket, since the yuan will The currency symbol for the Chinese yuan and the US dollar is displayed at a currency exchange store in Hong Kong. The weighting of the dollar will fall to 22.4% from governments to increase the need to appreciate less versus other 26.4% in a trade-weighted foreign-exchange basket from January 1, the China Foreign Exchange Trade System said in a statement yesterday. pace of debt-for-bond swaps, non-dollar currencies amid dollar and vowed to enhance the risk strength.” Siong, a currency strategist at Bank of est annual plunge against the dollar ber 2015 as a means to shift focus away “Adding a batch of emerging-mar- assessment of local debts. The weighting of the basket will Singapore Ltd. “In the near term, the in more than two decades, and when from the yuan’s moves against the dol- ket currencies into the basket will In the meantime, policy makers be evaluated on an annual basis and PBOC’s target would still be to keep the the year turns, policy makers will be lar in the wake of an unexpected de- likely increase two-way volatility of also want to ensure they have updated at the “appropriate time”, yuan stable versus the basket.” faced with a triple whammy of the re- valuation. the yuan’s fi xing and the exchange enough firepower to shore up according to CFETS. The new com- The dollar and currencies that are newal of citizens’ $50,000 quota of People’s Bank of China Deputy rate,” said Ken Cheung, Hong Kong- China’s economy, which is fac- position covers exchange rates of the pegged to the greenback, such as the foreign-currency purchases, prospects Governor Yi Gang said last month the based Asia currency strategist at Mi- ing more uncertainties, ranging nation’s main trading partners, it said, riyal and the Hong Kong dollar, will of further Federal Reserve interest-rate yuan’s depreciation versus the dollar zuho Bank Ltd “If the dollar extends from a cooling property market, adding that the newcomers will take take up 30.5% of the new basket, down increases, and concern that US pres- was largely driven by the strength of its rally next year, particularly against Federal Reserve rate hikes and 21.1% of the overall weighting. from 33% currently. The won will have ident-elect Donald Trump may slap the greenback and the market should the emerging- market currencies un- possibility of a confrontation “The new basket is more com- a 10.8% weighting when it’s added punitive tariff s on China’s exports to refer to its performance against the der Donald Trump’s presidency, the with US President-elect Donald prehensive and a better refl ection of from next month. the world’s largest economy. basket as the economy maintains sta- onshore and off shore yuan will come Trump over trade. China’s trade relations,” said Sim Moh The yuan is headed for its steep- The basket was unveiled in Decem- ble growth. under heavier pressures.” Tokyo stocks slump as yen rises; Toshiba plunges for the 3rd day

AFP since before Donald Trump’s surprise election victory in Hong Kong November, paring the post-election rally. The dollar had also risen since the billionaire’s win on speculation he will boost public spending. Tokyo stocks slumped yesterday as the yen strengthened “A market riding on expectations toward a Trump against the dollar while Toshiba’s stock plunged for the presidency is coming to a close, and we’re starting to third straight day. focus on reality,” said Mitsushige Akino, an executive The troubled conglomerate’s shares ended another torrid off icer at Ichiyoshi Investment Management in Tokyo, told day 17% down, following the company’s warning of a Bloomberg News. possible one-time loss of several billion dollars over its US “I expect investors to take a more nervous stance toward nuclear business. US economic indicators from here on.” Its stock has now lost more than 40% of their value since Bill Lynch, director of investment at Hinsdale Associates, Tuesday and has seen virtually all gains for the year erased. added investors were taking stock as the Dow’s 20,000 Overall, Japanese stocks saw their biggest drop in more level loomed. than a month yesterday after a 1.3% fall at 19,145.14 points, “There is a fair amount of profit-taking when the stocks get following a negative lead from Wall Street and the yen closer to that milestone,” he said. climbing more than 1% against the greenback. Both main oil contracts fell, ending crude’s nine-day The Nikkei is now up just 0.7% in 2016. winning streak, ahead of inventory data from the US Other major markets were mixed, with Hong Kong edging Department of Energy later yesterday, with the market up and Shanghai drifting marginally lower by the close. expecting a 1.5mn barrel drawdown. Hong Kong’s Hang Seng was up 0.2% at 21,790.91 points, But analysts cautioned that with trading volumes less than Shanghai Composite was down 0.2% at 3,096.10 points. half the average, a clearer picture of the market would Sydney recorded a 0.3% rise to end at its highest level of not emerge until the Opec output cut deal takes eff ect in the year. January. The Dow had receded on Wednesday after nearing the “I don’t think we can read a lot into what happens (in the historic 20,000 benchmark with shares of some banks market) until we get a clearer picture of the Opec deal in the falling more than 1% after the stock prices had won outsized new year,” said CMC sales trader Alex Furber. gains in the rally seen since US election day. “Obviously they have got a deal in place, but whether they Wall Street investors sold equities at the fastest rate keep to it is a diff erent matter.”

High-frequency trading at India’s NSE gives unfair access to some brokers

Bloomberg a review of the relevant systems and NSE plans to sell 111.4mn shares Mumbai processes including data retention, job worth up to Rs100bn. It has already rotation, mandatory leave and segre- been directed by SEBI to deposit all gation of duties, according to the draft. revenue from its co-location business he National Stock Exchange of India’s largest exchange handles 85% in an escrow account. India’s high-frequency trading of the nation’s stock cash trading and Many existing investors includ- Tsystem was prone to manipula- 94% of equity derivatives turnover. ing Tiger Global Five Holdings, Te- tion and allowed preferential access to “The regulator may fi ne NSE and, masek’s Aranda Investments (Mau- some brokers, the company said in its or, order remedial actions based on ritius), SAIF II-SE Investments share sale document citing an inde- the disclosures to prevent recurrence Mauritius, General Atlantic’s GAGIL pendent auditor’s report. of unfair practices,” Sandeep Parekh, FDI, Norwest Venture Partners X FII- Price ticks were provided faster to managing partner at Mumbai-based Mauritius, Citigroup Strategic Hold- members connected to less-crowded Finsec Law Advisors and former exec- ings Mauritius, IDBI Bank, Goldman servers, and one broker “consistently utive director at the market regulator, Sachs Strategic Investments and connected fi rst” to the secondary serv- said by phone. “The regulatory actions State Bank of India have tendered er from December 2012 to May 2014, may bring down exchange valuations their shares for the IPO. which may not have been possible but won’t delay its IPO process.” Stung in part by the outcry over the without the knowledge of certain NSE SEBI is examining NSE’s co-location NSE claims, SEBI issued draft rules employees, the exchange said, citing facilities, which refers to placing traders’ in August to try to ensure high-speed the report. India’s market regulator in servers next to that of an exchange, and fi rms didn’t get an unfair advantage. September asked NSE to hire an exter- any adverse directive from the regulator Among the proposals were a fraction- nal auditor to look into its HFT system “may materially and adversely” impact of-a-second speed bump, alternating after receiving complaints. the business, results and the exchange’s trades between diff erent types of or- The fi ndings will be weighed by reputation, the share sale document ders and a mechanism to prevent trad- investors as NSE prepares for an ini- stated. The independent agency said it ers from cancelling an order until it is tial share sale worth about Rs100bn was “not in a position to comment” on confi rmed by the exchange. ($1.5bn), the nation’s biggest listing in whether diff erential access amounted to The rules are still being reviewed by more than six years. NSE will initiate “collusion or connivance,” it said. SEBI and haven’t been implemented. Gulf Times 4 Friday, December 30, 2016 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Fisheries 6.03 0.17 1,907,271 Boubyan Intl Industries Hold 25.00 0.00 6,535,000 Dhofar Beverages Co 0.26 0.00 - Ash-Sharqiyah Development Co 8.55 0.00 673,959 Gulf Investment House Ksc 30.00 -3.23 1,661,992 Construction Materials Ind 0.03 0.00 100 Makkah Construction & Devepl 8.45 -0.82 666,831 Boubyan Bank K.S.C 395.00 0.00 246,022 Computer Stationery Inds 0.26 0.00 - Al Jouf Cement 15.43 0.00 216,840 Ahli United Bank B.S.C 194.00 0.00 700,000 Bankmuscat Saog 0.47 0.00 855,676 Alkhodar Ab Equity 20.11 -0.94 1,627,129 Osos Holding Group Co 130.00 0.00 12,500 Bank Sohar 0.16 -0.62 689,815 Kec Ab Equity 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.08 0.00 1,141,080 Alahlia Ab Equity 10.35 -0.96 1,584,347 Qurain Petrochemical Industr 230.00 0.00 64,798 Bank Dhofar Saog 0.23 0.00 50,000 Arcci Ab Equity 15.07 -0.26 27,906,775 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils 4.05 0.00 - Appc Ab Equity 68.49 1.11 752,828 Ekttitab Holding Co Sak 37.00 -1.33 314,249 Aloula Co 0.53 0.00 - Albabtai Ab Equity 27.70 -1.42 324,155 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.29 0.00 - QATAR Allianz Ab Equity 33.72 0.27 414,386 Real Estate Trade Centers Co 26.50 -8.62 1,751 Al-Hassan Engineering Co 0.06 0.00 123,635 Najran Ab Equity 26.60 0.00 573 Acico Industries Co Kscc 275.00 0.00 20,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Altayyar Ab Equity 18.90 -3.42 494,736 Kipco Asset Management Co 97.00 2.11 84,787 Al-Anwar Ceramic Tiles Co 0.17 0.00 341,705 Ncb Ab Equity 26.20 0.00 - National Petroleum Services 820.00 0.00 2,000 Al Suwadi Power 0.18 0.00 - Zad Holding Co 89.20 7.47 1,033 Catering Ab Equity 22.41 -1.28 698,017 Alimtiaz Investment Co Kscc 102.00 -1.92 17,567,919 Al Shurooq Inv Ser 1.04 0.00 - Widam Food Co 68.00 1.49 181,478 Cityc Ab Equity 14.19 -1.73 2,658,559 Ras Al Khaimah White Cement 90.00 0.00 281,500 Al Sharqiya Invest Holding 0.14 0.00 5,000 Vodafone Qatar 9.37 1.41 1,269,158 Dallah Ab Equity 63.09 0.13 2,575,676 Kuwait Reinsurance Co Ksc 180.00 0.00 520 Al Maha Petroleum Products M 1.60 7.41 80,000 United Development Co 20.65 3.51 1,618,969 Northcem Ab Equity 24.35 -0.81 266,365 Kuwait & Gulf Link Transport 64.00 1.59 432,670 Al Maha Ceramics Co Saoc 0.50 0.00 - Salam International Investme 11.05 0.00 39,544 Care Ab Equity 26.37 -0.11 1,473,047 Human Soft Holding Co Ksc 2,700.00 3.85 1,250,303 Al Madina Takaful Co Saoc 0.07 -1.39 114,751 Qatar & Oman Investment Co 9.95 -1.49 24,811 Jaztakaf Ab Equity 15.12 0.87 657,804 Automated Systems Co Kscc 244.00 0.00 19,850 Al Madina Investment Co 0.06 1.79 120,780 Qatar Navigation 95.60 -1.34 81,071 Metlife Ab Equity 8.70 -0.91 1,804,615 Metal & Recycling Co 60.00 -7.69 20,000 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 86.00 0.35 1,406 Bawan Ab Equity 18.88 -0.89 1,340,347 Gulf Franchising Holding Co 30.00 0.00 5,000 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 162.90 1.12 81,003 Smarketi Ab Equity 40.43 -1.73 533,270 Al-Enma’a Real Estate Co 37.50 -1.32 1,778,963 Al Jazeera Steel Products Co 0.25 1.23 115,960 Qatar Islamic Insurance 50.60 -0.78 4,728 Uacc Ab Equity 40.12 0.30 187,404 National Mobile Telecommuni 1,200.00 3.45 19,900 Al Jazeera Services 0.19 -1.03 336,684 Qatar Industrial Manufactur 44.50 -0.67 14,000 Aatd Ab Equity 25.26 -1.79 881,228 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 0.00 300,000 Qatar International Islamic 62.80 0.00 22,014 Alhammad Ab Equity 13.15 -1.65 903,191 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 58.50 0.17 161,528 Eic Ab Equity 33.44 0.15 730,108 Al Salam Group Holding Co 48.50 0.00 846,794 Al Batinah Power 0.18 0.00 1,300 Qatar Islamic Bank 103.90 0.78 55,468 Mepc Ab Equity 14.75 0.96 2,801,969 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 23.09 0.57 189,810 Sch Ab Equity 78.41 -0.90 56,343 Al Aman Investment Company 48.50 -2.02 530,969 Al Batinah Dev & Inv 0.10 -1.00 22,200 Qatar General Insurance & Re 47.00 0.00 - Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.19 -0.53 1,488,092 Qatar German Co For Medical 10.10 0.00 38,680 Manazel Holding 28.00 0.00 12,500,697 Ahli Bank 0.20 3.70 1,575,978 Qatar Fuel Qsc 145.40 0.14 21,531 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.71 0.00 - Qatar First Bank 10.30 2.49 4,477,622 KUWAIT Tijara And Real Estate Inves 48.00 0.00 9,644 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 227.00 2.25 31,284 Kuwait Building Materials 190.00 0.00 393,000 A’saff a Foods Saog 0.80 0.00 - Qatar Cinema & Film Distrib 27.45 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 770.00 0.00 206,344 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 84.80 2.29 109,408 Commercial Real Estate Co 80.00 -2.44 3,513,640 Ooredoo Qsc 101.80 0.10 59,201 Securities Group Co 89.00 0.00 50 Future Communications Co 85.00 0.00 2,415,740 National Leasing 15.32 -0.78 130,322 Sultan Center Food Products 57.00 -3.39 200,000 National International Co 61.00 -1.61 432,300 Mazaya Qatar Real Estate Dev 14.39 0.28 419,713 Kuwait Foundry Co Sak 182.00 0.00 26,459 Taameer Real Estate Invest C 22.50 4.65 1,025,498 UAE Mesaieed Petrochemical Holdi 15.80 0.89 294,340 Kuwait Financial Centre Sak 88.00 1.15 15,110 Gulf Cement Co 75.00 1.35 640,000 Al Meera Consumer Goods Co 175.50 -0.28 33,577 Ajial Real Estate Entmt 190.00 0.00 45,000 Heavy Engineering And Ship B 168.00 -1.18 289,425 Company Name Lt Price % Chg Volume Medicare Group 62.90 0.64 62,484 Gulf Glass Manuf Co -Kscc 300.00 0.00 401,750 Refrigeration Industries & S 315.00 0.00 700 Mannai Corporation Qsc 80.00 1.39 6,192 Kuwait Finance & Investment 37.00 -6.33 22,500 National Real Estate Co 104.00 0.00 647,133 Waha Capital Pjsc 1.93 4.89 5,793,737 Masraf Al Rayan 37.60 0.53 386,775 National Industries Co Ksc 210.00 0.00 150,422 Al Safat Energy Holding Comp 34.50 0.00 286,299 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.00 1.01 29,311 Kuwait Real Estate Holding C 23.50 -6.00 401,100 Kuwait National Cinema Co 1,240.00 6.90 52,889 United Arab Bank Pjsc 1.60 0.00 - Industries Qatar 117.50 0.86 120,522 Securities House/The 44.00 -1.12 1,144,676 Danah Alsafat Foodstuff Co 87.00 0.00 30,000 Union National Bank/Abu Dhab 4.54 -0.44 2,739,282 Islamic Holding Group 61.00 -0.16 2,349 Boubyan Petrochemicals Co 495.00 -1.00 34,270 Independent Petroleum Group 365.00 0.00 185 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 56.00 0.90 35,176 Al Ahli Bank Of Kuwait 300.00 1.69 16,000 Kuwait Real Estate Co Ksc 61.00 -1.61 1,927,318 Union Cement Co 1.09 0.00 - Gulf International Services 31.10 0.32 143,262 Ahli United Bank (Almutahed) 410.00 1.23 53,812 Salhia Real Estate Co Ksc 355.00 -1.39 201,490 Umm Al Qaiwain Cement Indust 0.90 0.00 - Ezdan Holding Group 15.11 0.07 2,061,364 National Bank Of Kuwait 650.00 0.00 435,582 Gulf Cable & Electrical Ind 375.00 -1.32 96,476 Sharjah Islamic Bank 1.54 6.21 688,094 Doha Insurance Co 18.20 2.13 1,023 Commercial Bank Of Kuwait 410.00 -1.20 3,000 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 34.90 1.45 76,369 Kuwait International Bank 206.00 -0.96 2,271,678 Kuwait Finance House 540.00 0.00 1,299,540 Sharjah Group 1.50 0.00 - Dlala Holding 21.49 0.94 44,496 Gulf Bank 240.00 0.00 26,770 Gulf North Africa Holding Co 36.00 0.00 1,759,932 Sharjah Cement & Indus Devel 1.08 0.00 - Commercial Bank Qsc 32.50 7.62 196,436 Al-Massaleh Real Estate Co 40.00 0.00 1,500 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 33.25 0.45 532,849 Al Arabiya Real Estate Co 31.00 -1.59 2,224,110 Osoul Investment Kscc 61.00 0.00 8,000 Ras Al Khaimah White Cement 1.23 10.81 70,000 Al Khaleej Takaful Group 21.10 0.48 20,084 Kuwait Remal Real Estate Co 67.00 -2.90 1,106,964 Gulf Insurance Group Ksc 670.00 8.06 200 Ras Al Khaimah Ceramics 2.45 -2.00 500,000 Aamal Co 13.63 0.52 141,309 Alkout Industrial Projects C 660.00 0.00 1,179 Kuwait Food Co (Americana) 2,600.00 0.00 131,753 Ras Al Khaimah Cement Co Psc 0.73 0.00 - Al Ahli Bank 39.00 0.00 2,000 A’ayan Real Estate Co Sak 65.00 -1.52 183,478 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.45 0.00 - Investors Holding Group Co.K 22.50 -2.17 7,947,685 Aayan Leasing & Investment 32.50 -2.99 2,948,086 Rak Properties 0.66 0.00 8,675,917 Al-Mazaya Holding Co 108.00 -1.82 217,020 Alrai Media Group Co Ksc 138.00 -2.82 321,823 Ooredoo Qsc 96.10 3.89 2,340 SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - National Investments Co 95.00 -2.06 1,468,260 Oman & Emirates Inv(Emir)50% 1.16 -1.69 141,833 Gulf Petroleum Investment 43.00 -1.15 9,657,296 Commercial Facilities Co 156.00 0.00 35,335 Nbad Oneshare Msci Uae Ucits 6.26 0.00 - National Takaful Company -10.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 850.00 0.00 316,000 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.81 201,019 City Group 0.00 0.00 - Afaq Educational Services Co 162.00 0.00 200,000 National Marine Dredging Co 4.30 0.00 - Gulf Union Cooperative Insur 25.73 -1.76 95,425 Inovest Co Bsc 78.00 2.63 280,590 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.52 0.00 - Gulf General Cooperative Ins 23.99 -1.56 1,498,256 Kuwait Gypsum Manufacturing 95.00 0.00 6,645 Yiaco Medical Co. K.S.C.C 360.00 0.00 500 National Corp Tourism & Hote 2.80 0.00 1,254,626 Basic Chemical Industries 6.16 0.65 96,625,925 Al-Deera Holding Co 32.00 -1.54 52,010 National Bank Of Umm Al Qaiw 3.10 0.00 - Saudi Steel Pipe Co 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.95 0.00 10,000 Buruj Cooperative Insurance 11.76 -1.92 3,269,808 Mena Real Estate Co 20.50 2.50 750,663 National Bank Of Fujairah 4.78 0.00 - Mouwasat Medical Services Co 26.02 -2.44 374,435 National Slaughter House 0.00 0.00 - National Bank Of Abu Dhabi 9.99 1.42 2,315,654 Southern Province Cement Co 16.21 -1.64 771,221 Amar Finance & Leasing Co 54.00 0.00 300,000 OMAN Methaq Takaful Insurance 0.90 0.00 12,934,437 Manazel Real Estate Pjsc 0.58 0.00 29,651,337 Maadaniyah 27.05 -1.71 1,093,441 United Projects For Aviation 670.00 1.52 12,000 Company Name Lt Price % Chg Volume Yamama Cement Co 25.00 -0.40 106,831 National Consumer Holding Co 45.00 -10.00 5,000 Invest Bank 2.26 0.00 - Jazan Development Co 12.55 0.00 - Amwal International Investme 24.00 -2.04 2,462,055 Voltamp Energy Saog 0.49 0.00 187,422 Intl Fish Farming Co Pjsc 1.90 1.60 2,815,420 Zamil Industrial Investment 29.55 -1.60 171,817 Jeeran Holdings 49.00 0.00 30,350 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.74 1.37 500,000 Alujain Corporation (Alco) 13.61 -1.31 2,015,751 Equipment Holding Co K.S.C.C 58.00 5.45 6,335,242 United Power Co Saog 3.25 0.00 104 Gulf Pharmaceutical Ind Psc 2.17 -1.36 22,281 Tabuk Agricultural Developme 29.07 0.14 647,078 Nafais Holding 206.00 0.00 201,000 United Finance Co 0.16 0.00 488,700 Gulf Medical Projects 3.19 7.05 25,650 United Co-Operative Assuranc 74.65 -1.03 271,732 Safwan Trading & Contracting 385.00 0.00 50,000 Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.00 11.11 206,996 Qassim Cement/The 13.26 -0.30 854,845 Arkan Al Kuwait Real Estate 92.00 0.00 1,650 Takaful Oman 0.17 -1.14 17,150 Fujairah Cement Industries 1.11 0.00 - Saudi Advanced Industries 33.26 -1.36 415,980 Gfh Financial Group Bsc 168.00 0.00 4,734,219 Taageer Finance 0.12 0.00 20,000 Fujairah Building Industries 1.56 0.00 - Kingdom Holding Co 33.04 -1.52 125,365 Energy House Holding Co Kscp 42.00 1.20 17,500 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 4.60 0.00 - Saudi Arabian Amiantit Co 40.87 2.43 913,917 Kuwait Slaughter House Co 136.00 0.00 5,500 Sohar Power Co 0.23 0.00 - First Gulf Bank 12.85 1.98 1,808,197 Al Jouf Agriculture Developm 37.36 0.65 1,257,132 Kuwait Co For Process Plant 172.00 0.00 23,500 Sohar Poultry 0.21 0.00 - Finance House 1.73 0.00 93,531 Saudi Industrial Development 17.46 -1.30 440,000 Al Maidan Dental Clinic Co K 1,220.00 0.00 500,000 Smn Power Holding Saog 0.71 0.00 - Eshraq Properties Co Pjsc 1.04 1.96 27,157,455 Bishah Agriculture 59.80 1.67 996,624 National Ranges Company 27.00 -1.82 2,136,500 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 18.80 2.45 11,285,501 Riyad Bank 22.57 0.45 4,281,646 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 2.00 0.50 35,130 Emirates Insurance Co. (Psc) 5.20 0.00 - The National Agriculture Dev 40.18 0.37 3,499,853 Al-Ahleia Insurance Co Sakp 455.00 0.00 2,937 Sharqiyah Desalination Co Sa 4.50 0.00 - Emirates Driving Company 8.05 0.00 - Halwani Bros Co 22.75 0.09 566,211 Wethaq Takaful Insurance Co 31.00 3.33 311,110 Sembcorp Salalah Power & Wat 0.23 0.00 219,560 Dana Gas 0.54 1.89 19,845,667 Arabian Pipes Co 13.50 0.00 - Salbookh Trading Co Kscp 65.00 -4.41 12,000 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.99 0.00 - Eastern Province Cement Co 33.88 -0.88 370,248 Aqar Real Estate Investments 69.00 0.00 1,000 Salalah Mills Co 1.48 0.00 300 Bank Of Sharjah 1.42 1.43 266,000 Al Qassim Agricultural Co 38.93 -0.31 85,544 Hayat Communications 49.50 5.32 1,387,364 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.70 9.38 150,332 Filing & Packing Materials M 71.79 0.72 96,282 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.83 0.00 - Saudi Cable Co 115.45 -0.65 23,661 Soor Fuel Marketing Co Ksc 116.00 0.00 16,853 Renaissance Services Saog 0.24 -2.83 5,300 Alkhaleej Investment 1.18 0.00 - Tihama Advertising & Public 22.09 -0.27 47,113 Alargan International Real 166.00 -4.60 225,000 Raysut Cement Co 1.48 1.02 20,543 Aldar Properties Pjsc 2.63 1.54 8,582,078 Saudi Investment Bank/The 54.04 0.58 147,533 Burgan Co For Well Drilling 99.00 0.00 30,000 Port Service Corporation 0.24 0.00 50,380 Al Wathba National Insurance 7.47 14.92 22,500 Astra Industrial Group 44.69 -1.08 270,579 Kuwait Resorts Co Kscc 80.00 1.27 1,485,401 Phoenix Power Co Saoc 0.15 0.68 232,494 Al Khazna Insurance Co 0.36 -2.70 57,136 Saudi Public Transport Co 8.22 -0.48 4,551,703 Oula Fuel Marketing Co 118.00 0.00 6,229 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Taiba Holding Co 19.88 -1.54 505,979 Palms Agro Production Co 95.00 0.00 1 Ooredoo 0.66 0.00 - Al Dhafra Insurance Co. P.S. 5.00 0.00 757,738 Saudi Industrial Export Co 39.63 -0.70 723,691 Ikarus Petroleum Industries 41.50 5.06 1,590,358 Ominvest 0.51 0.00 10,000 Al Buhaira National Insuranc 2.35 0.00 - Saudi Real Estate Co 17.03 3.53 2,004,361 Mubarrad Transport Co 59.00 0.00 895,400 Oman United Insurance Co 0.32 -2.42 610,374 Al Ain Ahlia Ins. Co. 55.00 0.00 17,460 Saudia Dairy & Foodstuff Co 11.30 -0.96 1,766,636 Al Mowasat Health Care Co 250.00 4.17 1,256,713 Oman Textile Holding Co Saog 0.31 0.00 - Agthia Group Pjsc 7.10 2.31 251,019 National Shipping Co Of/The 38.94 -1.94 210,911 Shuaiba Industrial Co 295.00 0.00 35,000 Oman Telecommunications Co 1.52 0.00 - Abu Dhabi Ship Building Co 2.83 0.00 47,179 Methanol Chemicals Co 36.80 -0.49 307,442 Hits Telecom Holding 41.50 1.22 1,942,644 Oman Refreshment Co 2.16 0.00 - Abu Dhabi Natl Co For Buildi 0.65 0.00 38,333 Ace Arabia Cooperative Insur 131.38 1.12 78,213 First Takaful Insurance Co 49.00 0.00 1,500 Oman Packaging 0.30 0.00 - Abu Dhabi National Takaful C 4.25 0.00 - Mobile Telecommunications Co 16.16 -0.98 1,284,810 Kuwaiti Syrian Holding Co 30.00 1.69 327,016 Oman Orix Leasing Co. 0.13 0.00 - Abu Dhabi National Insurance 2.58 0.39 678,770 Saudi Arabian Coop Ins Co 74.74 -0.04 837,153 National Cleaning Company 46.50 1.09 250,305 Oman Oil Marketing Company 1.86 0.00 - Abu Dhabi National Hotels 3.17 -0.94 1,549,199 Axa Cooperative Insurance 91.49 -0.92 7,836,492 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.16 0.00 - Abu Dhabi National Energy Co 0.53 1.92 196,762 Alsorayai Group 8.84 -1.34 11,822,055 United Real Estate Company 94.00 -2.08 92 Oman Investment & Finance 0.20 -1.96 20,000 Abu Dhabi Islamic Bank 3.80 1.33 5,021,705 Weqaya For Takaful Insurance 2.95 0.00 881,890 Agility 620.00 0.00 1,042,317 Oman Intl Marketing 0.52 0.00 - Bank Albilad 108.46 -1.27 60,335 Kuwait & Middle East Fin Inv 23.50 0.00 349,000 Oman Hotels & Tourism Co 0.40 0.00 - Al-Hassan G.I. Shaker Co 21.24 -2.16 651,075 Fujairah Cement Industries 80.00 5.26 6,069,631 Oman Foods International 0.00 0.00 - Wataniya Insurance Co 11.28 -1.57 501,031 Livestock Transport & Tradng 214.00 -4.46 1,000 Oman Flour Mills 0.70 0.00 3,500 BAHRAIN Abdullah Al Othaim Markets 16.13 1.38 1,707,871 International Resorts Co 27.50 0.00 113,000 Oman Fisheries Co 0.06 0.00 121,250 Hail Cement 25.94 0.04 1,573,670 National Industries Grp Hold 122.00 0.00 1,170,586 Oman Fiber Optics 4.57 0.00 - Company Name Lt Price % Chg Volume Saudi Re For Cooperative Rei 0.42 Marine Services Co Ksc 1.59 Oman Europe Foods Industries 1.00 0.00 - 19.09 266,366 64.00 28,421 Zain Bahrain Bscc 0.10 0.00 15,500 Solidarity Saudi Takaful Co -0.45 Warba Insurance Co 0.00 Oman Education & Training In 0.14 0.00 3,000 24.11 997,751 102.00 2,305 United Paper Industries Bsc 0.00 0.00 - Amana Cooperative Insurance 0.12 Kuwait United Poultry Co -2.00 Oman Chromite 3.64 0.00 - 147.83 122,053 196.00 4,438 United Gulf Investment Corp 0.00 0.00 - Alabdullatif Industrial Inv -0.56 First Dubai Real Estate Deve 0.00 Oman Chlorine 0.49 0.00 - 82.29 103,064 63.00 2,199,012 United Gulf Bank 0.35 0.00 741,888 Saudi Printing & Packaging C -0.33 Al Arabi Group Holding Co 3.17 Oman Ceramic Com 0.42 0.00 - 24.21 374,276 65.00 2,148,106 Trafco Group Bsc 0.24 0.00 65,197 Sanad Cooperative Insurance 0.35 Kuwait Hotels Sak 0.00 Oman Cement Co 0.47 0.00 - 22.85 231,075 0.00 - Takaful International Co 0.00 0.00 - Saudi Paper Manufacturing Co 1.46 Mobile Telecommunications Co 0.00 Oman Cables Industry 1.58 2.61 158,917 11.09 6,050,206 410.00 3,200,386 Taib Bank -$Us 0.00 0.00 - Alinma Bank 0.49 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 31.00 67,216 0.00 - Seef Properties 0.22 -1.82 38,949 Almarai Co -1.99 Tamdeen Real Estate Co Ksc 4.44 Oman & Emirates Inv(Om)50% 0.13 0.00 - 19.66 1,256,811 470.00 1,084,709 Securities & Investment Co 0.00 0.00 - Falcom Saudi Equity Etf -1.04 Al Mudon Intl Real Estate Co -3.75 Natl Aluminium Products 0.19 1.04 315,000 11.45 2,016,733 38.50 12,364,736 National Hotels Co 0.00 0.00 - United International Transpo 1.63 Kuwait Cement Co Ksc 3.80 National Securities 0.10 0.00 - 13.08 1,536,334 410.00 25,000 National Bank Of Bahrain Bsc 0.72 1.41 21,700 Hsbc Amanah Saudi 20 Etf 0.00 Sharjah Cement & Indus Devel 6.17 National Real Estate Develop 5.00 0.00 - 67.25 86,408 86.00 499,256 Nass Corp Bsc 0.12 1.69 218,996 Saudi International Petroche -1.55 Kuwait Portland Cement Co 1.11 National Pharmaceutical 0.11 0.00 - 12.05 1,637,480 910.00 64,504 Khaleeji Commercial Bank 0.07 0.00 1,885,164 Falcom Petrochemical Etf -1.96 Educational Holding Group 0.98 National Mineral Water 0.05 0.00 - 12.01 779,667 206.00 2,235 Ithmaar Bank Bsc 0.13 0.00 200,000 Saudi United Cooperative Ins -1.67 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 8.26 1,591,498 0.00 - Investcorp Bank -$Us 8.10 0.00 25,000 Bank Al-Jazira -0.63 Asiya Capital Investments Co 1.61 National Gas Co 0.57 0.00 5,000 34.78 93,498 31.50 1,500 Inovest Co Bsc 0.21 0.00 19,586 Al Rajhi Bank -2.46 Kuwait Investment Co -3.37 National Finance Co 0.13 0.00 - 10.32 1,313,619 86.00 263,196 Gulf Monetary Group 0.00 0.00 - Samba Financial Group 0.00 Burgan Bank 0.00 National Detergent Co Saog 0.70 0.00 - 69.75 - 305.00 747,100 Gulf Hotel Group B.S.C 0.64 0.00 10,000 United Electronics Co -0.77 Kuwait Projects Co Holdings -1.96 National Biscuit Industries 3.75 0.00 - 11.55 1,358,527 500.00 401,000 Gfh Financial Group Bsc 0.51 0.00 35,000 Allied Cooperative Insurance -0.25 Al Madina For Finance And In 0.00 National Bank Of Oman Saog 0.24 0.00 268,658 23.96 134,323 43.50 14,800 Esterad Investment Co B.S.C. 0.17 0.00 42,043 Malath Cooperative & Reinsur -0.45 Kuwait Insurance Co 9.80 Muscat Thread Mills Co 0.11 0.00 - 62.11 17,478 280.00 300 Delmon Poultry Co 0.00 0.00 - Alinma Tokio Marine 2.01 Al Masaken Intl Real Estate -4.23 Muscat National Holding 1.79 0.00 - 17.75 2,230,203 68.00 682,838 Bmmi Bsc 0.83 0.00 84,641 Arabian Shield Cooperative 0.00 Intl Financial Advisors -1.59 Muscat Gases Company Saog 0.61 0.00 100 34.50 56,650 31.00 532,310 Bmb Investment Bank 0.00 0.00 - Savola -0.74 First Investment Co Kscc -3.19 Muscat Finance 0.13 0.81 12,000 9.36 1,888,089 45.50 982,889 Bbk Bsc 0.40 2.04 65,000 Wafrah For Industry And Deve -0.56 Al Mal In -2.50 Majan Glass Company 0.19 0.00 - 35.63 456,869 vestment Company 19.50 800,092 Bankmuscat Saog 0.00 0.00 - Fitaihi Holding Group -0.16 -1.47 Majan College 0.51 0.00 - 6.09 1,331,366 Bayan Investment Co Kscc 33.50 170,200 Banader Hotels Co 0.07 0.00 33,386 Tourism Enterprise Co/ Shams -1.96 0.00 Hsbc Bank Oman 0.12 0.00 1,013,732 33.96 3,967,611 Egypt Kuwait Holding Co Sae 176.00 10,000 Bahrain Tourism Co ` 0.00 - Sahara Petrochemical Co -0.13 1.32 Hotels Management Co Interna 1.25 0.00 - 15.21 146,022 Coast Investment Development 38.50 3,290,356 Bahrain Telecom Co 0.29 0.70 90,004 Herfy Food Services Co -0.75 -1.15 Gulf Stone 0.11 0.00 - 17.13 291,471 Privatization Holding Compan 43.00 250,000 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Ind Investment Group -0.91 0.00 Gulf Plastic Industries Co 0.00 0.00 - 15.18 3,428,771 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Salama Cooperative Insurance 0.70 0.00 Gulf Mushroom Company 0.34 0.00 - 40.18 109,750 Injazzat Real State Company 74.00 800,000 Bahrain Kuwait Insurance 0.00 0.00 - Emaar Economic City -1.68 -9.09 Gulf Investments Services 0.11 0.00 77,350 35.65 1,137,493 Kuwait Cable Vision Sak 50.00 172,000 Bahrain Islamic Bank 0.12 -3.91 17,608 Alahli Takaful Co 1.06 -3.23 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 26.63 1,115,756 Sanam Real Estate Co Kscc 30.00 399 Bahrain Flour Mills Co 0.00 0.00 - Anaam International Holding 0.22 -2.56 Gulf International Chemicals 0.29 -1.38 101,618 124.54 13,505 Ithmaar Bank Bsc 38.00 3,374,000 Bahrain Family Leisure Co 0.00 0.00 - Saudi Telecom Co 0.60 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 43.37 968,676 Aviation Lease And Finance C 240.00 50,000 Bahrain Duty Free Complex 0.79 0.00 10,195 Al Alamiya Cooperative Insur -2.20 1.56 Global Fin Investment 0.17 0.00 5,000 8.02 8,850,687 Arzan Financial Group For Fi 32.50 459,700 Bahrain Commercial Facilitie 0.67 0.00 10,000 Saudi Industrial Services Co 4.89 5.43 Galfar Engineering&Contract 0.09 -1.05 875,192 45.07 1,360,679 Ajwan Gulf Real Estate Co 48.50 540,471 Bahrain Cinema Co 1.29 0.00 2,000 Al-Ahsa Development Co. -1.19 1.22 Galfar Engineering -Prefer 0.39 0.00 - 8.29 2,109,028 Kuwait Business Town Real Es 41.50 1,366,354 Bahrain Car Park Co 0.00 0.00 - National Co For Glass In/The -0.21 0.00 Financial Services Co. 0.10 0.00 - 18.92 1,296,409 Future Kid Entertainment And 106.00 381 Arab Insurance Group(Bsc)-$ 0.34 3.03 54,879 Dur Hospitality Co 2.56 0.00 Financial Corp/The 0.10 0.00 - 17.23 2,292,910 Specialities Group Holding C 80.00 1,500 Arab Banking Corp Bsc-$Us 0.37 0.00 35,000 Tabuk Cement Co -1.42 -2.17 Dhofar University 1.49 0.00 - 10.41 1,295,436 Abyaar Real Eastate Developm 22.50 910,400 Aluminium Bahrain Bsc 0.32 0.63 10,000 Sasco 0.00 0.00 Dhofar Tourism 0.49 0.00 - 19.39 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.49 0.00 243,940 Saudi Cement -1.95 0.00 Dhofar Poultry 0.18 0.00 - 20.59 681,636 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.12 9.26 9,546,732 Aseer Trading Tourism & Manu 0.84 -1.35 Dhofar Intl Development 0.37 0.00 - 16.80 625,982 Kgl Logistics Company Kscc 73.00 944,973 Al-Ahlia Insurance Co 0.00 0.00 - Nama Chemicals Co 2.11 7.14 Dhofar Insurance 0.21 0.00 - 26.19 1,429,123 Combined Group Contracting 600.00 124,330 Ahli United Bank B.S.C 0.64 0.00 2,190,763 Saudi Arabian Mining Co 98.81 -0.10 48,137 Zima Holding Co Ksc 42.50 -1.16 1,037,310 Dhofar Fisheries & Food Indu 1.28 0.00 - Yanbu Cement Co 11.96 -0.33 323,644 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Friday, December 30, 2016 5 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 19,829.27 -4.41 Apple Inc 116.83 0.06 4,653,469 S&P 500 Index 2,250.63 +0.71 Microsoft Corp 62.88 -0.18 2,636,146 Nasdaq Composite Index 5,430.59 -7.97 Exxon Mobil Corp 90.43 0.14 1,278,166 S&P/Tsx Composite Index 15,416.32 +55.22 Johnson & Johnson 115.50 0.35 690,602 Mexico Bolsa Index 45,770.41 +207.23 General Electric Co 31.72 0.07 4,121,006 Brazil Bovespa Stock Idx 59,824.30 +42.67 Jpmorgan Chase & Co 85.58 -1.06 3,472,500 Ftse 100 Index 7,105.29 -0.79 Procter & Gamble Co/The 84.37 0.36 725,877 Cac 40 Index 4,836.98 -11.03 Wal-Mart Stores Inc 69.44 0.19 1,217,037 Dax Index 11,445.95 -29.04 Verizon Communications Inc 53.76 0.60 1,771,704 Ibex 35 Tr 9,324.80 -20.10 Pfizer Inc 32.49 0.42 3,198,089 Nikkei 225 19,145.14 -256.58 Visa Inc-Class A Shares 78.55 0.32 1,278,015 Japan Topix 1,518.39 -18.41 Chevron Corp 118.13 0.19 849,172 Hang Seng Index 21,790.91 +36.17 Coca-Cola Co/The 41.68 0.69 1,502,305 All Ordinaries Indx 5,746.69 +14.31 Intel Corp 36.61 -0.05 1,770,504 Nzx All Index 1,282.86 +3.19 Merck & Co. Inc. 59.08 -0.32 1,513,943 Bse Sensex 30 Index 26,366.15 +155.47 Cisco Systems Inc 30.49 0.23 2,565,764 Nse S&P Cnx Nifty Index 8,103.60 +68.75 Home Depot Inc 135.43 0.27 766,050 Straits Times Index 2,889.15 -9.15 Intl Business Machines Corp 166.70 0.31 514,490 Karachi All Share Index 32,641.93 +179.95 Walt Disney Co/The 104.18 -0.12 1,536,328 Jakarta Composite Index 5,302.57 +93.12 Unitedhealth Group Inc 161.02 -0.26 586,312 3M Co 178.91 0.47 233,275 Mcdonald’s Corp 123.10 0.34 380,675 Nike Inc -Cl B 50.95 -0.14 1,116,796 TOKYO United Technologies Corp 110.28 0.08 644,690 Boeing Co/The 155.37 -0.47 492,080 Company Name Lt Price % Chg Goldman Sachs Group Inc 238.02 -1.09 854,388 Rakuten Inc 1,161.00 -1.48 5,176,100 American Express Co 74.07 -0.40 475,544 Kyocera Corp 5,860.00 -0.90 822,900 Du Pont (E.I.) De Nemours 74.63 0.34 310,059 Nissan Motor Co Ltd 1,180.50 -1.42 10,789,300 Caterpillar Inc 93.17 0.02 689,501 Hitachi Ltd 631.80 -2.03 15,657,000 Travelers Cos Inc/The 122.34 0.21 161,402 Takeda Pharmaceutical Co Ltd 4,811.00 -0.78 1,684,300 Jfe Holdings Inc 1,790.00 -3.01 3,995,400 Ana Holdings Inc 314.90 -1.22 11,882,000 FTSE 100 Mitsubishi Electric Corp 1,632.50 -0.88 4,933,300 Sumitomo Mitsui Financial Gr 4,470.00 -1.93 7,615,000 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,443.00 -1.35 3,498,400 Fast Retailing Co Ltd 42,660.00 -1.41 448,400 Wpp Plc 1,801.00 -0.88 1,046,733 Ms&Ad Insurance Group Holdin 3,637.00 -0.57 1,105,700 Worldpay Group Plc 267.30 0.00 1,119,977 A mine worker stirs molten gold in a furnace before casting during the refining process at the Kibali gold mine, operated by Kubota Corp 1,660.50 -0.95 2,667,200 Wolseley Plc 4,957.00 -0.12 185,166 Randgold Resources, in Kibali, Democratic Republic of Congo (file). A so-called “Santa Rally” propelled London to its second Seven & I Holdings Co Ltd 4,457.00 -0.62 2,555,000 Wm Morrison Supermarkets 229.90 0.26 2,906,597 straight record close yesterday as a rising gold price sent mining stocks up; Randgold jumped 4.8%. London stocks often Inpex Corp 1,180.50 -1.05 4,406,800 Whitbread Plc 3,735.00 -0.27 127,559 climb during thin trading between the Christmas and New Year holidays in an eff ect called a Santa Rally. Resona Holdings Inc 598.60 -2.76 16,823,300 Vodafone Group Plc 200.15 0.38 14,530,929 Asahi Kasei Corp 1,021.50 -1.11 3,159,000 United Utilities Group Plc 901.50 0.84 334,627 Kirin Holdings Co Ltd 1,896.50 -0.21 1,796,400 Unilever Plc 3,287.00 0.27 568,851 Marubeni Corp 666.50 -1.41 8,842,500 Tui Ag-Di 1,139.00 0.26 167,557 Mitsubishi Ufj Financial Gro 718.40 -2.19 78,244,100 Travis Perkins Plc 1,458.00 -0.41 580,485 Mitsubishi Chemical Holdings 762.80 -1.80 4,737,100 Tesco Plc 205.40 0.49 4,181,340 Fanuc Corp 19,905.00 -2.50 696,000 ‘Golden Santa Rally’ sends London Taylor Wimpey Plc 153.30 0.00 3,420,819 Daito Trust Construct Co Ltd 17,465.00 0.40 221,700 Standard Life Plc 369.20 0.00 1,892,012 Otsuka Holdings Co Ltd 5,058.00 0.54 1,456,700 Standard Chartered Plc 651.30 -1.27 1,414,280 Oriental Land Co Ltd 6,653.00 0.03 591,000 St James’s Place Plc 1,003.00 0.20 222,877 Sekisui House Ltd 1,946.00 -0.76 2,821,100 Sse Plc 1,553.00 0.32 708,138 to second straight record close Secom Co Ltd 8,554.00 -0.71 539,800 Smith & Nephew Plc 1,214.00 0.00 572,963 Tokio Marine Holdings Inc 4,792.00 -0.70 2,240,600 Sky Plc 985.00 0.00 736,921 Aeon Co Ltd 1,663.50 -1.16 1,982,000 Shire Plc 4,620.00 -0.17 361,661 day, with Tokyo suff ering the heaviest ing as the Dow Jones Industrial Aver- Mitsui & Co Ltd 1,614.00 -0.74 5,007,700 AFP Severn Trent Plc 2,230.00 0.81 160,905 drop in more than a month, and Wall age reaching the 20,000 point level Kao Corp 5,519.00 -0.70 1,386,000 London Schroders Plc 2,983.00 0.00 62,960 Street also ticked lower. is looking less likely,” said analysts at Dai-Ichi Life Holdings Inc 1,943.50 -0.51 5,409,800 Sainsbury (J) Plc 249.90 0.77 2,196,409 Mazda Motor Corp 1,923.00 -2.66 6,059,900 London was led higher by shares in Wells Fargo. Sage Group Plc/The 657.50 0.31 348,730 Komatsu Ltd 2,683.00 -1.92 3,210,200 so-called “Santa Rally” pro- gold mining companies such as Fres- First time claims for unemploy- Sabmiller Plc 0.00 0.00 - West Japan Railway Co 7,240.00 -0.33 490,700 pelled London to its second nillo and Randgold, which shot higher ment benefi ts fell to 265,000 last week, Rsa Insurance Group Plc 580.00 0.61 382,001 Murata Manufacturing Co Ltd 15,785.00 -0.75 823,400 straight record close yester- on the back of fi rmer prices for the pre- Labor Department data showed, al- Royal Mail Plc 457.60 0.39 646,910 A Kansai Electric Power Co Inc 1,280.50 -2.29 2,258,600 Royal Dutch Shell Plc-B Shs 2,351.00 0.26 1,214,632 day as a rising gold price sent mining cious metal. though that narrowly missed analyst Denso Corp 5,080.00 -1.91 1,739,600 Royal Dutch Shell Plc-A Shs 2,240.00 0.29 1,132,757 stocks up, though chances of the Dow “Santa seems to favour gold diggers expectations. Sompo Holdings Inc 3,970.00 -0.70 955,500 Royal Bank Of Scotland Group 223.10 -0.98 6,508,863 Daiwa House Industry Co Ltd 3,200.00 -0.06 2,033,300 breaking the 20,000 barrier this year today,” said Ipek Ozkardeskaya, an an- After the Dow once again fl irted with Rolls-Royce Holdings Plc 675.50 -1.60 704,325 Jx Holdings Inc 495.40 -0.68 11,807,700 dimmed. alyst at London Capital Group. the historic and psychological barrier Rio Tinto Plc 3,136.00 -0.96 1,009,204 Nippon Steel & Sumitomo Meta 2,637.50 -1.71 2,577,700 After spending most of the day in Fresnillo shares jumped 4.6% and of 20,000 points in early trading on Rexam Plc 0.00 0.00 - Suzuki Motor Corp 4,122.00 -1.53 1,380,600 Wednesday, Wall Street investors sold Relx Plc 1,448.00 0.49 1,212,055 the red, London’s blue-chip FTSE 100 Randgold 4.8%, making them the Nippon Telegraph & Telephone 4,917.00 -0.24 3,622,100 Reckitt Benckiser Group Plc 6,840.00 -0.23 230,637 index pushed higher in late trading to “standout gainers in London today,” equities at the fastest rate since be- Ajinomoto Co Inc 2,344.00 -0.42 1,804,800 Randgold Resources Ltd 6,390.00 4.41 471,044 close up 0.2% at 7,120.26 points. said Chris Beauchamp, chief market fore Donald Trump’s surprise election Mitsui Fudosan Co Ltd 2,741.50 0.15 4,013,000 Prudential Plc 1,611.50 0.06 1,183,853 Sentiment was subdued however on analyst at IG online trading fi rm. win in November, paring the post-poll Ono Pharmaceutical Co Ltd 2,549.50 -1.30 3,210,900 Provident Financial Plc 2,807.00 0.86 58,694 Daikin Industries Ltd 10,825.00 -0.60 784,700 the penultimate trading day of the year, Gold prices were up 1.4% to $1,571.50 rally. Persimmon Plc 1,744.00 0.00 580,033 Bank Of Yokohama Ltd/The 0.00 0.00 - with many traders away for festivities per ounce. Oil prices fell after offi cial US in- Pearson Plc 818.00 0.43 595,235 Toray Industries Inc 948.80 -0.30 7,184,000 to usher in the New Year. Today London will close at lunch- ventory data showed a surprise rise Paddy Power Betfair Plc 8,735.00 -0.63 14,989 Astellas Pharma Inc 1,603.50 -1.05 4,917,500 Old Mutual Plc 203.90 0.99 3,124,126 London stocks often climb during time but Frankfurt and Paris will re- by 600,000 barrels in crude reserves, Bridgestone Corp 4,223.00 -1.42 2,115,600 Next Plc 4,940.00 0.28 192,478 thin trading between the Christmas main open as normal. while the market had been expecting Sony Corp 3,299.00 -1.17 4,455,400 National Grid Plc 945.60 0.06 1,632,971 and New Year holidays in an eff ect Wall Street slid lower yesterday with a 1.5-mn-barrel drop in commercial Hoya Corp 4,854.00 -0.25 958,200 Mondi Plc 1,659.00 -0.12 517,644 called a Santa Rally. the Dow down 0.02% approaching crude stockpiles. Sumitomo Mitsui Trust Holdin 4,155.00 -4.09 3,835,800 Merlin Entertainment 445.40 0.59 671,507 Japan Tobacco Inc 3,854.00 0.39 3,307,200 Frankfurt’s DAX 30 fell 0.2 % to midday, adding to losses on Wednes- An increase in reserves could indi- Mediclinic International Plc 775.00 1.64 416,372 Osaka Gas Co Ltd 454.40 -1.50 5,970,000 11,451.05 at close close, while Paris day. cate slowing demand in the world’s top Marks & Spencer Group Plc 350.40 -0.28 1,076,792 Sumitomo Electric Industries 1,695.00 -1.14 2,902,500 CAC 40 was down 0.2% at 4,838.47. “Investors will focus on the last oil consuming nation, and therefore London Stock Exchange Group 2,855.00 -0.10 70,656 Daiwa Securities Group Inc 724.90 -1.92 6,163,000 Lloyds Banking Group Plc 62.70 -1.34 54,862,678 Asian equities mostly sank yester- major data points of 2016 this morn- tend to push prices lower. Softbank Group Corp 7,730.00 -1.63 5,429,100 Legal & General Group Plc 247.50 0.57 3,747,691 Mizuho Financial Group Inc 209.20 -2.47 178,763,900 Land Securities Group Plc 1,045.00 0.58 473,354 Nomura Holdings Inc 689.50 -2.03 25,939,800 Kingfisher Plc 346.80 -0.20 932,316 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,371.50 -0.65 1,454,300 Johnson Matthey Plc 3,177.00 0.13 105,660 Fuji Heavy Industries Ltd 4,784.00 -2.11 2,823,600 Itv Plc 203.00 0.10 7,875,069 Ntt Docomo Inc 2,665.50 -0.19 3,142,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 276.30 0.51 804,850 Sumitomo Realty & Developmen 3,112.00 -1.27 2,528,000 Intl Consolidated Airline-Di 443.30 -0.29 1,719,015 Aluminum Corp Of China Ltd-H 3.08 -0.96 20,221,191 Hong Kong & China Gas 13.60 0.00 14,737,650 Sumitomo Metal Mining Co Ltd 1,527.50 -1.36 3,193,000 Intertek Group Plc 3,428.00 -0.09 117,652 Bank Of East Asia Ltd 29.40 -1.18 2,072,773 Hong Kong Exchanges & Clear 180.90 0.11 4,077,914 Orix Corp 1,843.00 -0.32 6,788,900 Intercontinental Hotels Grou 3,596.00 0.81 123,353 Bank Of China Ltd-H 3.40 0.29 267,903,912 Hsbc Holdings Plc 61.95 0.00 18,099,032 Asahi Group Holdings Ltd 3,705.00 0.30 1,381,700 Inmarsat Plc 759.50 2.50 508,006 Bank Of Communications Co-H 5.52 0.00 28,976,403 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 79,090.00 -0.79 156,000 Informa Plc 678.00 0.82 447,885 Belle International Holdings 4.23 -1.17 21,266,083 Ind & Comm Bk Of China-H 4.58 0.88 256,920,578 Nidec Corp 10,110.00 -0.83 836,300 Imperial Brands Plc 3,543.50 0.45 465,486 Boc Hong Kong Holdings Ltd 27.30 -1.09 10,347,334 Li & Fung Ltd 3.40 -0.58 22,390,467 Isuzu Motors Ltd 1,490.50 -1.97 2,080,600 Hsbc Holdings Plc 649.30 -0.55 5,021,661 Cathay Pacific Airways 10.16 -0.39 3,611,347 Mtr Corp 37.50 0.27 2,612,793 Unicharm Corp 2,564.00 -0.77 1,106,300 Hargreaves Lansdown Plc 1,214.00 0.50 263,962 Ck Hutchison Holdings Ltd 87.90 -0.23 6,454,700 New World Development 8.19 0.37 13,101,061 Shin-Etsu Chemical Co Ltd 9,141.00 -1.70 1,535,300 Hammerson Plc 561.00 0.63 497,722 China Coal Energy Co-H 3.60 1.41 6,089,508 Petrochina Co Ltd-H 5.78 -1.03 81,249,115 Smc Corp 28,055.00 -1.41 259,300 Glencore Plc 274.25 -0.96 19,089,720 China Construction Bank-H 5.89 0.00 762,279,008 Ping An Insurance Group Co-H 38.70 0.52 17,934,054 Mitsubishi Corp 2,516.50 -0.83 3,551,200 Glaxosmithkline Plc 1,559.50 0.52 3,606,055 China Life Insurance Co-H 20.05 -0.74 27,988,324 Power Assets Holdings Ltd 67.95 -0.15 2,088,697 Nintendo Co Ltd 24,405.00 0.25 1,095,300 Gkn Plc 327.80 -0.70 869,144 China Merchants Port Holding 18.86 -0.95 1,744,425 Sino Land Co 11.54 1.41 4,643,692 Eisai Co Ltd 6,638.00 -1.18 567,900 Fresnillo Plc 1,217.00 4.02 598,629 China Mobile Ltd 81.45 0.49 13,124,662 Sun Hung Kai Properties 97.40 0.26 3,180,639 Sumitomo Corp 1,375.00 -1.72 4,075,000 Experian Plc 1,572.00 -0.06 601,961 China Overseas Land & Invest 20.30 -0.73 12,782,191 Swire Pacific Ltd - Cl A 73.10 0.69 1,367,303 Canon Inc 3,245.00 -1.73 5,185,800 Easyjet Plc 1,001.00 -1.28 730,411 China Petroleum & Chemical-H 5.47 -0.36 80,185,291 Tencent Holdings Ltd 187.60 2.18 22,120,093 Japan Airlines Co Ltd 3,408.00 -1.70 1,629,300 Dixons Carphone Plc 349.30 -0.96 1,074,370 China Resources Beer Holdin 15.12 0.80 3,391,097 Wharf Holdings Ltd 50.80 0.59 2,801,231 Direct Line Insurance Group 365.80 0.91 1,146,318 China Resources Land Ltd 17.30 -0.69 8,893,340 China Resources Power Holdin 12.22 1.50 4,808,515 Diageo Plc 2,098.00 0.50 741,873 SENSEX Dcc Plc 6,055.00 -0.66 74,960 China Shenhua Energy Co-H 14.44 -0.28 17,980,457 GCC INDICES Crh Plc 2,780.00 0.91 372,913 China Unicom Hong Kong Ltd 9.01 -0.77 13,780,247 Compass Group Plc 1,480.00 0.68 1,055,911 Company Name Lt Price % Chg Citic Ltd 11.02 0.73 6,831,765 Indices Lt Price Change Coca-Cola Hbc Ag-Di 1,737.00 1.34 97,889 Clp Holdings Ltd 71.05 -0.21 2,747,577 Doha Securities Market Zee Entertainment Enterprise 447.60 1.02 2,342,683 10,436.76 +100.71 Centrica Plc 232.80 0.56 2,792,339 Cnooc Ltd 9.62 -0.82 46,480,594 Saudi Tadawul Yes Bank Ltd 1,148.30 3.17 2,975,549 7,210.43 -30.23 Carnival Plc 4,128.00 -0.41 166,733 Cosco Shipping Ports Ltd 7.77 0.13 939,112 Kuwait Stocks Exchange Wipro Ltd 472.35 0.64 2,123,791 5,748.09 -5.27 Capita Plc 525.00 1.65 1,075,095 Esprit Holdings Ltd 6.07 -1.94 1,554,811 Bahrain Stock Exchage Vedanta Ltd 217.00 2.41 9,847,537 1,220.45 +7.10 Burberry Group Plc 1,485.00 0.00 344,885 Fih Mobile Ltd 2.44 -0.81 1,953,780 Oman Stock Market Ultratech Cement Ltd 3,216.20 1.79 345,979 5,782.71 +17.66 Bunzl Plc 2,088.00 0.00 131,318 Hang Lung Properties Ltd 16.02 -0.25 5,485,673 Abudhabi Stock Market Tech Mahindra Ltd 482.70 1.80 2,169,926 4,546.37 +74.80 Bt Group Plc 369.60 0.42 3,067,807 Hang Seng Bank Ltd 143.20 0.07 1,083,504 Dubai Financial Market Tata Steel Ltd 392.35 1.00 3,796,967 3,530.88 +11.17 British Land Co Plc 628.50 0.96 1,195,401 Henderson Land Development 40.70 0.49 2,370,005 Tata Power Co Ltd 75.15 1.69 2,789,817 British American Tobacco Plc 4,587.00 0.44 761,235 Tata Motors Ltd 470.90 1.63 4,981,156 Bp Plc 510.00 0.22 7,133,435 Tata Consultancy Svcs Ltd 2,351.70 1.66 1,023,329 Bhp Billiton Plc 1,297.00 -1.11 2,462,602 Sun Pharmaceutical Indus 614.70 -1.07 5,591,920 Berkeley Group Holdings/The 2,811.00 -0.21 154,153 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. State Bank Of India 247.65 -0.04 11,413,302 Barratt Developments Plc 463.80 -0.26 1,071,738 Reliance Industries Ltd 1,065.45 1.50 2,104,168 The accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not Barclays Plc 221.65 -1.38 15,933,569 Punjab National Bank 113.15 -0.70 15,327,270 intended as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Bae Systems Plc 592.00 -1.17 2,066,282 Power Grid Corp Of India Ltd 180.05 0.03 8,411,854 Doha Bank or any of their employees shall not be held accountable and will not accept any losses or liabilities for Babcock Intl Group Plc 942.50 0.00 270,842 Oil & Natural Gas Corp Ltd 191.60 0.90 14,529,641 actions based on this data.” Aviva Plc 485.30 0.27 1,922,666 Ntpc Ltd 163.55 1.74 5,087,152 Astrazeneca Plc 4,416.00 -0.02 607,729 Maruti Suzuki India Ltd 5,314.80 1.60 690,905 Associated British Foods Plc 2,727.00 0.29 133,749 Mahindra & Mahindra Ltd 1,174.95 0.07 935,817 Ashtead Group Plc 1,569.00 -2.49 502,604 CURRENCIES Lupin Ltd 1,467.85 0.93 595,447 Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,339.20 -0.80 1,425,499 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 678.00 -1.09 998,157 DINAR DINAR Kotak Mahindra Bank Ltd 713.40 0.05 1,350,852 Anglo American Plc 1,155.50 -0.86 2,537,415 Itc Ltd 236.00 0.23 14,702,214 Admiral Group Plc 1,807.00 0.50 113,162 Infosys Ltd 992.35 -0.62 3,285,267 3I Group Plc 695.00 -0.07 306,764 Indusind Bank Ltd 1,105.65 2.18 1,377,521 #N/A 0.00 0.00 - Idea Cellular Ltd 72.75 1.89 11,540,131 Icici Bank Ltd 251.10 -0.26 6,161,079 TOKYO Housing Development Finance 1,257.20 1.55 2,048,195 Hindustan Unilever Ltd 818.50 1.01 1,346,630 Hindalco Industries Ltd 154.75 0.75 8,645,946 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,036.35 1.16 272,192 East Japan Railway Co 10,155.00 -1.07 554,500 Hdfc Bank Limited 1,205.20 1.55 2,095,471 Itochu Corp 1,557.50 -1.64 6,564,300 Hcl Technologies Ltd 819.35 1.52 1,910,867 Fujifilm Holdings Corp 4,439.00 -1.31 1,309,200 Grasim Industries Ltd 843.50 3.99 1,400,510 Yamato Holdings Co Ltd 2,383.00 -1.71 1,009,500 Gail India Ltd 425.55 0.21 4,558,863 Chubu Electric Power Co Inc 1,647.00 -1.38 2,266,100 Dr. Reddy’s Laboratories 3,066.25 -0.11 201,620 Mitsubishi Estate Co Ltd 2,331.50 -0.13 4,247,000 Coal India Ltd 298.65 1.17 7,573,607 Mitsubishi Heavy Industries 534.90 -1.78 11,693,000 Cipla Ltd 564.85 0.44 1,039,245 Toshiba Corp 257.20 -17.46 638,880,000 Cairn India Ltd 241.95 1.47 5,151,550 Shiseido Co Ltd 2,962.00 -0.79 652,900 Bosch Ltd 20,650.00 2.37 15,707 Shionogi & Co Ltd 5,491.00 -0.63 716,900 Bharti Airtel Ltd 303.00 1.17 3,278,657 Tokyo Gas Co Ltd 535.40 -0.89 4,701,000 Bharat Petroleum Corp Ltd 639.65 3.98 5,125,050 Tokyo Electron Ltd 10,965.00 -2.62 822,100 Bharat Heavy Electricals 118.75 -0.50 5,144,205 Panasonic Corp 1,199.00 -1.56 8,006,000 Bank Of Baroda 151.50 0.90 21,291,241 Fujitsu Ltd 648.30 -2.16 8,993,000 Bajaj Auto Ltd 2,651.45 0.69 199,190 Central Japan Railway Co 19,330.00 -0.77 328,400 Axis Bank Ltd 444.25 0.95 6,350,250 T&D Holdings Inc 1,540.00 -0.77 1,927,300 Asian Paints Ltd 880.05 0.50 1,272,185 Toyota Motor Corp 6,838.00 -1.89 11,400,700 Ambuja Cements Ltd 203.90 1.32 1,124,394 Kddi Corp 2,970.50 0.24 4,991,700 Adani Ports And Special Econ 264.65 -1.43 4,576,922 Nitto Denko Corp 8,971.00 -1.68 608,900 Acc Ltd 1,309.95 1.17 292,672 Gulf Times Friday, December 30, 2016 7 BUSINESS Nomura’s Nagai to deepen cost cuts in project dubbed ‘waterline’

Bloomberg company can do so much more to control be shifted to different duties. The project Nomura has earned less profit per such as investment banking. The broker- March, after pretax earnings outside of Tokyo costs,” he said. got its name from a naval analogy, ac- employee than its closest domestic rival age may hire bankers or obtain a team Japan reached ¥40bn in the first half. Cost-cutting has been a feature of cording to the CEO. “The waterline on a Daiwa Securities Group over the past from its rivals to boost its US advisory Second-quarter net income jumped 31%, Nagai’s four years at the helm of Japan’s warship will rise a centimetre each year four years, according to data compiled by and primary businesses “selectively,” thanks to a rebound in fixed-income Nomura Holdings, the Japanese brokerage biggest securities firm, and his latest initia- if the crew brings excess baggage,” he Bloomberg. he said. trading. that has cut hundreds of jobs overseas tive comes after this year’s restructuring said. “Before you know it, the ship will Nomura has eliminated about 900 jobs, Nomura’s status among advisers on Like its Wall Street peers, Nomura has since April, is now embarking on a com- in Europe and the US to trim $700mn of sink.” mainly in Europe and the Americas, since mergers and acquisitions is slipping at attracted investors since Donald Trump’s panywide review of spending in order to expenses. Global banks such as Goldman The review will start at the top by April in an eff ort to return its overseas op- home and abroad. In Japan, the company election victory, on speculation that the reduce operating costs further over the Sachs Group are also finding ways to curb examining how executives are generating erations to profit, people with knowledge is ranked sixth, the lowest in 10 years, and next US president will ease bank regula- next three years. spending in an industry that’s become less work for their subordinates, checking on of the matter have said. The bank plans it hasn’t held the top spot since 2011, data tions and boost fiscal spending. The stock Under the plan, called the “Waterline lucrative since the global financial crisis. how many of the e-mails and documents to trim more positions abroad by around compiled by Bloomberg show. Globally, has jumped 34% since November 7, and is Project,” Nomura will evaluate the cost- Nagai, 57, said Waterline will focus they generate are actually being read, the fiscal year’s end in March, Nagai said, it has slipped to 35th this year from 24th up 1.5% in 2016, rebounding from a more eff ectiveness of employees’ daily activities on reducing non-personnel expenses, Nagai said. without giving a number. in 2015. than three-year low in June. and of the bank’s operations to determine although he didn’t rule out job cuts or He indicated that the project is likely At the same time, in the US, having M&A business aside, Nomura’s for- “It looks like Trump will create a busi- how much money can be saved by 2020, reassignments. He gave the example to be unpopular with Nomura’s 28,654 pared some operations such as lever- tunes appear to be turning. The company ness-friendly environment,” Nagai said. chief executive off icer Koji Nagai said in of an employee who might spend time employees. “There will be resistance” from aged finance, Nagai said he’s keen to is on course to post its first profit abroad Among Japan’s financial firms, “people an interview in Tokyo. “To be honest, this writing unnecessary reports, who could staff , Nagai said. bolster promising businesses in areas in seven years for the 12 months ending think Nomura may benefit the most.” S Korea slashes 2017 GDP RBI approved cash ban just forecast; makes plans to hours before shore up consumption Modi’s speech

Sees 2017 growth at 2.6% vs Bloomberg 500 ($7.3) and Rs1,000 notes 3.0% earlier; finance ministry Mumbai to the central government was sees recovery momentum taken at 5:30pm on November 8 declining; political scandal at a board meeting, the RBI said poses risks to fragile he board of India’s cen- in its responses. sentiment; November tral bank approved the The bank’s board consists of industrial output jump likely Tmove to ban high-de- Governor Patel, his three depu- temporary nomination notes less than ties — R Gandhi, S S Mundra and three hours before Prime Min- N S Vishwanathan — along with Reuters ister Narendra Modi announced a host of eminent personalities Sejong, South Korea the decision in a televised ad- including the Economic Aff airs dress to the nation. Secretary Shaktikanta Das. Information on how many It remains unclear what outh Korea lowered its members favoured or opposed kind of preparations the RBI growth outlook for next the move isn’t “on record,” made for the currency ban that Syear yesterday as it saw the Reserve Bank of India said caused chaos across India: weaker domestic demand and in response to queries from it did not respond to queries waning job growth holding back Bloomberg News under the on how many new 2,000 and recovery in Asia’s fourth-largest Right to Information Act. Pow- Rs500 notes were being print- economy. er Minister Piyush Goyal had ed each day in its mints or the Corporate restructuring in told lawmakers on November number of hours each day the the troubled shipping and ship- 16 that it was the authority’s printing presses were working building sectors would hobble 10-member board that came up in the month leading up to the job growth next year, while con- with the idea. November 8 announcement. sumption was expected to slow Modi’s surprise November Nearly 50 days after the deci- due to uncertainties inside and 8 decision to withdraw 86% of sion, there is still a shortage of outside the country. bank notes in circulation has cash in circulation, with ATMs An ongoing infl uence-ped- squelched demand for goods regularly running out of money dling scandal involving Presi- and services in Asia’s third- and a Rs2,500 per day cap on dent Park Geun-hye and her largest economy, where cash ATM withdrawals. close acquaintance, Choi Soon- dominates transactions. The “The RBI top management sil, has seen lawmakers over- RBI has been criticised for a must communicate more whelmingly vote for Park’s lack of preparedness and nu- through the media and speak- impeachment, which the Con- merous policy U-turns that ing opportunities,” former stitutional Court must soon de- contributed to the ensuing cha- Deputy Governor Usha Thorat cide whether to uphold. os. Questions have also been wrote in an opinion piece on The scandal and subsequent A gantry crane unloads a shipping container from a truck at Busan New Port. The South Korean government sees economic growth of 2.6% in raised about the central bank’s Wednesday in the Indian Ex- investigations have battered 2017, down from its earlier estimate of 3%, and below the Bank of Korea’s 2.8% forecast, the finance ministry said yesterday. independence and communi- press. “This is necessary in the consumer and business confi - cation policy under the leader- interest of transparency and dence, with the consumer confi - Earlier yesterday, Prime Min- protectionist policies from the said Lee Sang-jae, chief econo- the fi rst half of the year to lend ship of Governor Urjit Patel. credibility. It generates confi - dence falling to a 7-1/2 year low ister Hwang Kyo-ahn stressed US and increased trade com- mist at Eugene Investment & the economy a boost. The decision to withdraw the dence that the RBI believes in earlier this week. the importance of restoring petition with Japan and China Securities. The government will also in- legal tender character of the honest communication.” As a result, the government stable conditions so households are risks to export recovery, the The fi nance ministry said if crease policy fi nancing through now sees economic growth of and businesses could go back to ministry said. momentum doesn’t pick up it state-supported banks by 8tn 2.6% in 2017, down from its their normal spending patterns. Also yesterday, data showed may press the case for a supple- won ($6.64bn) in 2017 to 187tn earlier estimate of 3%, and be- In its policy direction for 2017, industrial output in November mentary budget next year. won in total. Kuroda sees steady Japan low the Bank of Korea’s 2.8% the BoK also said the economy jumped at its fastest pace in over Growth slipped to 2.6% in To shore up domestic demand, forecast, the finance ministry faces downside risks from po- seven years, but analysts doubt- 2015 from 3.3% in 2014. it plans to launch a promotional recovery next year: Nikkei said. litical uncertainty, adding that ed the gain would be sustained. Finance Minister Yoo Il-ho event for the upcoming Lunar “It’s a relatively bleak view it plans to keep monetary condi- In a separate statement ana- said on December 22 the govern- New Year holiday in January and Reuters according to the Nikkei given that the government usu- tions easy next year. lysing November’s output, the ment may consider drafting a to develop new travel destina- Tokyo newspaper, reinforcing market ally takes in the upside of policy The declining trend in ex- fi nance ministry downplayed supplementary budget if growth tions and packages inside the expectations that the central eff orts to boost growth,” said ports, however, may have bot- the rebound and said recovery next year looks likely to slow to country to attract foreign and bank will hold off on expanding Moon Jung-hui, an economist at tomed out. momentum could decline due below 2.5%. local tourists. Bank of Japan governor stimulus in the foreseeable KB Investment & Securities. The government projects ex- to factors such as faster policy The government has pledged The government sees infl a- Haruhiko Kuroda said he future. “There are many things “While exports are likely to ports will expand 2.9% next year. tightening by the US Federal Re- to spend 31% of fi scal expendi- tion at 1.6% in 2017, up from 1% expects Japan’s economy we can do if necessary” to rebound next year, sluggish do- December exports, due Janu- serve in 2017. ture by end-March 2017 to estimated for this year, and ex- to enjoy a steady recovery jump-start growth, Kuroda mestic demand will drag down ary 1, are expected to rise for a “This is just a temporary re- counter slowing growth. pects about 260,000 jobs to be throughout next year as said in an interview with Nikkei overall growth as the construc- second straight month. bound and is unlikely to be the The government regularly added, down from 290,000 for global headwinds die down, published yesterday. tion industry is losing steam.” Despite this, possible trade prelude to an actual recovery,” front-loads budget spending in this year. Brazil, Russia lead rare year of emerging market gains in 2016

Reuters Thailand topped Asia with an markets’ worst-ever start to the falls. Since November, MSCI’s London 18-percent rise. year in January, when oil prices hit emerging equity index has lost On dollar bond markets, default- 12-year lows and fears fl ared that more than 6%, versus 6-percent threatened Venezuela returned China was heading for a currency gains for the US S&P 500, while emarkable turnarounds in 52%, outdoing 9% gains on the un- crisis. sovereign emerging dollar debt has Brazil and Russia in 2016 derlying sovereign debt index. Some of those worries remain: lost 4%. Rgave many emerging mar- “We have seen the recovery the yuan has fallen almost 7% “It was all looking so good until ket assets their fi rst year of posi- in commodity prices, the un- against the dollar for its worst year November 8 and then everything tive returns since 2012, on the back derstanding that China can take since 1994, and Chinese mainland changed,” Rabobank’s emerging of a bounce in oil and commodity pretty aggressive steps to stimulate shares — star performers last year market strategist Piotr Matys said. prices. growth in whichever way it feels — have lost 18%. On the bright side, “Trumpo- Although some of the gains have is appropriate and we have a had a But by spring, most emerging nomics” — as the president-elect’s been capped by Donald Trump’s very accommodative global rates markets appeared to have shrugged plans to refl ate the economy have US election win, Brazilian stocks environment,” Aberdeen Asset off that rocky January. been dubbed — may not be entirely rose almost 60% in dollar terms, to Management investment manager And then came Donald Trump. negative for emerging markets. be the best performing major eq- Andrew Stanners said. Mexico’s peso, already strug- Commodity producers such as uity market, while the real gained “Even the most vulnerable cred- gling due to domestic worries, Russia and South Africa are likely 20%, racing neck-and-neck with its like Venezuela that have been was pounded by Trump’s ascent to benefi t. the rouble for the top currency hanging on by their fi ngernails and eventual election win based Investors are betting some re- spot. have been able to fi nd enough room on campaign threats to scrap trade cent losers such as Mexico could While MSCI’s closely followed to survive.” deals and build a wall on the US- stage a comeback in 2017 as bargain 23-country index of emerging Sovereign debt in emerging and Mexican border to cut immigra- hunters step in. market equities is up more than hard currencies has delivered re- tion. “We should not be surprised if 7%, the commodity rebound, has turns of more than 9%, versus zero The peso’s post-election drop some key emerging market cur- meant Latin America, especially on US Treasuries. has been just over 10%. rencies appreciate from here,” fund Peru and Colombia, have done Emerging market corporate debt That has taken it almost 17% manager Amundi’s head of macr- particularly well. has done even better, returning al- lower for the year, though the oeconomics, Didier Borowski, said. Hungarian stocks have been most 18%. Turkish lira, hammered by doubts “The Korean won, Mexican peso, eastern Europe’s best perform- The recovery has been all the over monetary policy credibility the Taiwanese dollar, the Turkish ers for a third successive year and more surprising, given emerging and instability, has matched those lira, they are clearly undervalued.” Friday, December 30, 2016 GULF TIMES BUSINESS

US goods trade defi cit widens; labour market near full strength

Reuters Washington

drop in US exports last month pushed the country’s trade defi cit Ain goods higher while the number of Americans fi ling for unemployment ben- efi ts fell last week in a positive sign for the labour market. The two reports released yesterday sug- gested that when Donald Trump becomes America’s president next month, the labour market will likely be at roughly full strength and international trade could be weighing on the economy. In an initial estimate that does not in- clude trade in services, the Commerce De- partment said the country exported $1.2bn less in November than in October. Imports rose by $2.2bn during the month. The full trade report for November is due on January 6. “It appears net trade will again be a drag” on economic growth in the fourth quarter, said Michael Gapen, an economist at Barclays in New York. Further details in the report showed an increase in retail and wholesale inventories in November, which could provide a tempo- rary boost to economic growth. Trump campaigned heavily on promises to reduce America’s trade defi cit and bring back jobs that moved abroad to countries with lower costs for manufacturing. Working against him could be a stronger US Pedestrians write wishing messages to hang on a Christmas tree standing in front of Monte dei Paschi bank headquarters in Siena. In unusually critical comments of the eurozone’s single banking dollar which could weigh on US exporters. supervisor, Italy’s economy minister Pier Carlo Padoan said the ECB’s new capital target was the result of a “very rigid stance” in its assessment of the bank’s risk profile. The trade defi cit for goods widened by $3.4bn in November to $65.3bn. The dollar has surged about 5% since Trump won the November 8 presidential election as investors bet wider budget defi - cits under his presidency will trigger higher infl ation and more interest rate increases by the Federal Reserve. Italy minister criticises ECB over yesterday, the dollar weakened and stocks rose slightly in light holiday-period trading. Separately, initial claims for state unem- ployment benefi ts dropped 10,000 to a sea- sonally adjusted 265,000 for the week ended Monte Paschi capital decision December 24, the Labour Department said. It was the 95th straight week that claims were below 300,000, a threshold associated ECB nearly doubled capital “It would have been useful, if not The rest of the money Monte dei mas day,” Prime Minister Paolo Gen- in an adverse scenario, so it would with a healthy labour market. shortfall to €8.8bn; economy kind, to have a bit more information Paschi needs will come from the tiloni told a press conference. “It’s be able to restore investor and cus- That is the longest stretch since 1970, minister says ECB should have from the ECB about the criteria that forced conversion of its subordinated important that the reasons behind tomer confidence, the source said. when the labour market was much smaller. given clearer explanation; bank led to this assessment,” Padoan told bonds into shares, in line with Euro- this assessment are shared and that The source also said the ECB had The department said in a statement there set to be recapitalised by state in fi nancial daily Il Sole 24 Ore. pean rules on bank crises. there is a dialogue because we need off ered to explain its stance to both were no special factors aff ecting claims last 2-3 months, says minister Monte dei Paschi, Italy’s third The lender fared the worst in EU- to handle this issue together... We the Italian treasury and Monte dei week although estimating the data can be biggest lender and the world’s old- wide banking stress tests published will stick to our guns.” Paschi. more diffi cult around holiday periods. Reuters est, said on Monday the ECB had in July. The ECB has declined to comment At 8% under the adverse scenario, The department said the actual number Milan/Frankfurt estimated its capital shortfall at Padoan said he expected the capi- on its rationale for the larger capital Monte dei Paschi would still be below of claims was estimated by government staff €8.8bn ($9.20bn), compared with a tal increase to take place in two to shortfall. the average of the ECB’s stress test, for 10 states. €5bn gap previously indicated by the three months. A source close to the matter said in which banks would see their CET 1 Claims for the prior week were unrevised. he European Central Bank bank. The ECB told the Italian treasury the bank’s estimate of a €5bn capi- ratio fall to 9.4% from 13.2%. Labour market strength contributed to should have explained more The higher capital requirement of its decision in a letter, which Pa- tal gap was based on the results of The 8% threshold in the adverse the Federal Reserve raising its benchmark Tclearly why it nearly doubled substantially increases the cost of doan said was just fi ve lines long and the stress test, conducted on end- scenario was also a requirement the overnight interest rate earlier this month by its estimated capital shortfall for the bank’s rescue by the government which has not been made public. 2015 data, and included assump- ECB set for ailing Greek banks in a 25 basis points to a range of 0.50% to 0.75%. the ailing Monte dei Paschi di Siena after it failed to raise the €5bn on the It irked the Rome government and tions such as the sale of its whole 2015 review. The US central bank forecast three rate hikes bank, which is being bailed out by the market. has quickly turned into a political is- portfolio of defaulting loans — a Padoan said the exact amount of in 2017. state, Italy’s economy minister said. The treasury is now set to pump in sue. key plank of its plan to raise money capital Monte dei Paschi will have Economists polled by Reuters had fore- In unusually critical comments of around €6.5bn to salvage the lender, A group of lawmakers from the privately. to raise will be determined once it cast fi rst-time applications for jobless ben- the eurozone’s single banking su- raising concerns that its newly cre- ruling Democratic Party asked Pa- Given that plan’s failure and the presents a new business plan to the efi ts falling to 264,000 in the latest week. pervisor, Pier Carlo Padoan said in a ated €20bn bank bailout fund may doan and Italy’s foreign minister on bank’s worsening balance sheet ECB and the European Commission, The claims report also showed the newspaper interview the ECB’s new not have enough money for other Wednesday to explain in parliament over the past year, the ECB wants to but he played down the bank’s prob- number of people still receiving benefi ts capital target was the result of a “very weak banks. what had happened. ensure Monte dei Paschi has enough lems. after an initial week of aid rose 63,000 to rigid stance” in its assessment of the The government says the fund is “I was a bit surprised to receive the capital to safely meet a Common “The bank is in optimal condition 2.10mn in the week ended December 17, the bank’s risk profi le. suffi cient. news, out of the blue and on Christ- Equity Tier 1 (CET 1) ratio of 8% and will have great success,” he said. highest since September.

Eurozone lending Political upheavals may herald trouble for megadeals in 2017 climbs in Bloomberg strategy” that could be used to defend largest failed deal was Pfi zer’s $160bn border opportunity,” JPMorgan’s Cris- as Treasury secretary, a post that would London strategic industries and companies attempt to take over rival drug maker terna said. make him chair of the Committee on November like drug maker AstraZeneca. Allergan. That was quashed when US A shrinking population and stagnant Foreign Investment in the US CFIUS Next year, Europe will also see elec- regulators proposed new rules to limit economy at home have pushed busi- has the power to review foreign takeo- AFP s companies brace for the impact tions in the Netherlands, France and so-called tax inversion deals, in which a nesses in the country to look for growth vers of American companies and, if its Frankfurt of 2016’s political shocks and Germany that could unseat incumbent company gets an address in a more fa- abroad, he said. mandate is broadened, could be used as Alooming elections next year, glo- leaders and strengthen populist, na- vorable tax regime as part of an acquisi- Japanese companies agreed to spend a tool raise barriers if it opens a path to bal appetite for mega mergers may slow tionalist movements across the conti- tion. more than $84bn acquiring foreign as- reject Chinese investments. Lending to households and com- amid the prospect of increased protec- nent. These votes could have ramifi ca- The US also blocked deals that it saw sets this year, up 23% from 2015. Soft- Trump also picked Peter Navarro, a panies picked up in November tionism. tions for the EU and eurozone, causing as a threat to its national interests, in- Bank’s $32bn purchase of ARM Hold- University of California at Irvine eco- in the eurozone, the European The biggest transactions mostly in- more instability and volatility in the cluding Chinese-backed Grand Chip ings in the UK was the largest of those nomics professor and a critic of Chi- Central Bank said yesterday, volved buyers and sellers from diff erent currency bloc. Investment’s plan to buy German chip- deals, while brewer Asahi Group Hold- na’s trade practices, to lead the newly signalling that its eff orts to countries: Bayer’s acquisition of Mon- maker Aixtron, which supplies Ameri- ings Ltd was one of the most acquisi- formed White House National Trade encourage spending and invest- santo in the US, China National Chemi- The sources of international can defense companies. tive, snapping up European assets sold Council. ment are gaining traction. cal Corp’s bid for Syngenta and Soft- M&A are becoming more inward The outcome of the US elections and off as part of Anheuser-Busch InBev’s Still, some upheaval has created op- Loans to households in the sin- Bank Group Corp’s purchase of ARM looking and protective, and Brexit will result in more protection- merger with SABMiller. portunities for buyers. Foreign acquir- gle currency area grew by 1.9% Holdings. Cross-border deals account- it’s still unclear how political ism in both countries, said Ying Zhang, 3. President Trump ers spent more on European assets this year-on-year, compared to 1.8% ed for more than half of acquisitions changes will aff ect businesses associate dean for China at the Rotter- As Trump prepares to take offi ce in year than they have since at least 1990, a month earlier, the bank said. larger than $25bn announced this year, dam School of Management at Erasmus 2017, several of his proposals could have according to data compiled by Bloomb- Lending to firms accelerated by according to data compiled by Bloomb- Here’s what’s on the minds of deal- University. There could be “huge resist- sweeping implications for companies erg, taking advantage of weaker curren- 2.2%, up from 2.1% in October. erg. They also made up nearly half of the makers as they head into 2017. ance” to foreign acquirers as a conse- that want to do business and deals in cies that cheapened deals. IHS Markit economist Howard $3tn in total announced deals, the data 1. Regulation quence, she said. the US. And going into 2017, some in the in- Archer described the figures as show. The largest acquisitions already saw 2. Asia He’s called for tax breaks that could dustry remain optimistic. “a pleasing set of news for the But the sources of international a decline this year. There were 13 deals China, whose companies spent more lead to the repatriation of US compa- “Trump’s election has injected enor- ECB”. M&A are becoming more inward look- above $25bn announced in 2016, slight- than $200bn on overseas deals this year, nies’ funds held overseas and lower tax mous confi dence into the markets, and “The ECB will particularly wel- ing and protective, and it’s still un- ly below a year earlier, according to data more than double last year’s record, is bills. That could free up billions of dol- nothing is more important to M&A than come a pick-up in the growth clear how political changes will affect compiled by Bloomberg. The value of planning curbs on its companies’ for- lars for M&A in the country, as well as confi dence in the future,” said John Re- rate in eurozone bank lending businesses. Chinese firms are fac- total transactions announced is down eign acquisitions that will last until dividends and share buybacks. iss, head of the global M&A practice to businesses to a more than ing regulatory scrutiny abroad, with about 18% from last year. September, people with knowledge of “This would free up cash for M&A at law fi rm White & Case. “We remain five-year high in November,” growing opposition in the US and Eu- “Lack of confi dence is never good for the matter said last month. That in- and fuel a wave of deal activity,” Lion- very optimistic for 2017 deal making he said. rope, and restrictions on megadeals at dealmaking,” said Hernan Cristerna, cludes barring most investments of Tree Advisors chief executive offi cer and expect it to be more active than in The ECB has embarked on home. global co-head of mergers and acquisi- $10bn or more. Aryeh Bourkoff said in a year-end let- 2016, but less so than 2015.” an unprecedented stimulus In the West, the US elected Donald tions at JPMorgan Chase & Co in Lon- “The impact of capital-control rules ter to staff . “Repatriation could be of US companies especially could be big programme to drive up lending Trump as its next president — a deci- don. “If CEOs are trying to gauge the introduced in China has to be assessed, particular benefi t to Apple, Microsoft, benefi ciaries. “If Trump continues to be and inflation in the euro area, sion with potential implications for benefi ts of a big deal and don’t know as Chinese companies were among the Alphabet, Cisco and Oracle, which are perceived as willing and able to imple- and the monthly loan growth US companies’ tax bills and the recep- how the regulatory environment will most active drivers of M&A in the last holding a combined estimated $500bn ment his pro-business agenda, it will statistics are seen as a key tion that bidders, especially Chinese, play out, some may be hesitant to push few years,” said Thomas Piquemal, glo- in cash overseas.” increase the ability of US companies to indicator of the eff ectiveness of could get when they target assets in the button.” bal head of mergers and acquisitions at Trump’s hard line on China could make acquisitions around the world, its measures. The ECB expects the country. In the UK, which voted More than $580bn in deals were ter- Deutsche Bank in London. also lead to increased scrutiny of in- and increase the attractiveness of the the euro area economy to grow to leave the European Union, Prime minated this year, according to the Japan, which could fi ll the gap left by vestments from the country into the US to non-US acquirers,” Reiss said. by 1.7% this year. Minister Theresa May has said the data, some of which can be attributed Chinese fi rms’ clipped merger ambi- US He’s nominated former Goldman “Overall, the US will be perceived as a country needs a “proper industrial to a stricter regulatory landscape. The tions, represents “the greatest cross- Sachs Group partner Steven Mnuchin relatively good place to do deals.”