FEWER OFFERS | Page 2 GAS GIANT | Page 5 Wheat traders Santos says cautious on no to $7.2bn Egypt feud approach

Friday, November 17, 2017 Safar 28, 1439 AH RISING PRICES, STILL WAGES: Page 12 Britain’s shoppers GULF TIMES rein in spending in fi rst yearly BUSINESS drop since 2013 Qatar CPI inflation up 0.3% month-on-month in October

Qatar’s cost of living, based on recovery in global commodity prices equipment segment, which has a Transport, which has a 14.59% bearing, The CPI of October 2017, excluding level and showed a 2% plunge year- consumer price index (CPI), edged up and the implementation of a value 7.7% weightage, saw its index gain 1% saw its group index grew 0.5% this “housing, water, electricity, gas and on-year. 0.3% month-on-month this October added tax are expected to moderate month-on-month in October this year; October against September 2017 other fuels” showed an increase of 0.7% Education, with a 5.75% weightage, saw on higher expenses towards dining Qatar’s inflation over the medium term. while it was down 0.3% year-on-year. level but reported a higher 7.8% jump on a monthly basis and 1.3% on a yearly its index gain 0.4% in October year-on- out, furniture and health, according to The index of Restaurants and Hotels, Food and beverages, which has a on a yearly basis. The sector has the basis. year and tread a flat course on monthly off icial estimates. which has a 6.08% weight, shot up 2% weight of 12.58% in the CPI basket, direct linkage to the dismantling of Miscellaneous goods and services, basis. The CPI inflation showed a 0.2% jump month-on-month in October 2017; even witnessed a 0.9% gain in its group the administered prices in petrol and which has a 5.69% weight, saw its index Communication, which carries 5.87% year-on-year in October this year, the as it was flat on a yearly basis. index on a monthly basis and by a diesel. decline 0.4% month-on-month and 1.1% weight, saw its group index tread a flat Ministry of Development Planning and The index of health, which carries a higher 4.9% year-on-year. However, housing, water, electricity and on a yearly basis. path against September 2017 level but Statistics data suggest. 1.79% weight in the CPI basket, soared Clothing and footwear, which carries other fuels – with a weight of 21.89% in Recreation and culture, which has down 1.1% year-on-year. The International Monetary Fund had 1% this October on a monthly basis and a 5.11% weight, saw its index rise 0.8% the CPI basket – saw a 0.4% month-on- a 12.68% weight in the CPI basket, Tobacco, which has a 0.27% weight, said during 2017–18, subsidy cuts, 3.6% on a yearly basis. month-on-month in October 2017 but month fall in its index in October this saw a marginal 0.1% fall in index in stood unchanged both annually and increase in public fees, a moderate The furniture and household was down 0.5% on a yearly basis. year and 5.4% on a yearly basis. October from the previous month’s monthly in October this year.

Turkish, Iraqi offi cials discuss resuming Kirkuk oil exports

Reuters Baghdad

Turkish energy delegation has met with Iraqi top oil offi cials in Baghdad to discuss Aissues including the resumption of Kirkuk oil exports via the Turkish port of Ceyhan, Iraq’s oil ministry said in a statement yesterday. Exports from oilfi elds in Kirkuk have been on hold since Iraqi government forces took control of them from the Kurds last month in retaliation for a Kurd- A Saudi investor monitors shares prices at the Saudi Stock Exchange, or Tadawul, in the capital Riyadh (file). The Capital Market Authority is asking brokerages to suspend the accounts of dozens ish referendum on independence which was widely of princes, billionaires and off icials being held so they’re unable to buy or sell shares on the Tadawul, according to three people familiar with the matter. opposed by Turkey, Iran and Western powers. “A high level Turkish energy delegation met with senior oil offi cials, including offi cials from state-run SOMO, to discuss ways to restart Kirkuk oil exports,” the statement said. Baghdad’s meeting was attended by senior of- fi cials from the Turkish energy ministry, state- owned energy company TPAO and Turkish pipe- line operator Botas, according to the oil ministry. Saudi said to freeze trading “The two parties discussed fi nancial and techni- cal issues which delay Kirkuk oil exports resump- tion. The talks are to be completed in Ankara,” the statement said. Iraqi oil offi cials accuse Kurdish authorities of not responding to requests made by the oil minis- try to use the Kurdish pipeline to resume exports accounts as part of purge from Kirkuk. Iraq needs at least three months to repair an old Bloomberg ing not to be identifi ed because the informa- weeks. A spokesman for Tadawul declined to almost $19bn from stock markets in the region pipeline which was shipping Kirkuk crude to Cey- Dubai tion is private. comment, while offi cials at the CMA didn’t in the fi ve days through last Thursday. Gulf han port in Turkey, SOMO has said. The kingdom last week said Saudi Arabian immediately respond to requests for com- individuals and institutions sold a net 771mn The main 600,000 bpd Kirkuk-Ceyhan pipeline Monetary Agency, or SAMA as the central ment. riyals ($206mn) worth of Saudi shares last had been offl ine since March 2014 following insur- audi Arabia’s market regulator has fro- bank is known, had frozen the bank accounts In addition, the UAE central bank is said to week, the most since at least October 2015, gent attacks. zen the trading accounts of individuals of individuals being investigated, but not have asked fi nancial institutions to provide when Bloomberg began tracking the data. Oil Minister Jabar al-Luaibi earler this week said Sbeing detained or investigated as part of those of the companies they own or manage. information on the accounts of 19 Saudi citi- Based on investigations over the past three Iraq plans to increase production from oilfi elds in the kingdom’s crackdown on alleged corrup- Wealthy Saudis are moving assets out of the zens. The regulator asked to be informed of years, Saudi authorities estimate that at least Kirkuk to 1mn bpd and has visited the Bai Hasan tion, according to three people familiar with region to avoid the risk of getting caught up any accounts, deposits, investments, fi nan- $100bn has been misused “through system- and Avana fi elds to order work be accelerated to the matter. in the crackdown, people with knowledge of cial instruments, credit facilities, safe deposit atic corruption and embezzlement over sev- restore operations soon, the ministry’s spokesman The Capital Market Authority is asking the matter said. In Saudi Arabia, some are in boxes or fi nancial transfers linked to the peo- eral decades,” according to Attorney General said. brokerages to suspend the accounts of dozens talks with banks and asset managers to move ple, according to a circular seen by Bloomberg. Sheikh Saud al-Mojeb. A total of 208 indi- The oil ministry’s spokesman also said the Kurd- of princes, billionaires and offi cials being held money outside the country, the people said. The arrests, which include Prince Alwaleed viduals have been called in for questioning ish natural resources ministry is not cooperating to so they’re unable to buy or sell shares on the The Tadawul All Share Index fell 1% on bin Talal, one of the world’s richest men, so far and seven have been released without return “necessary material” that was removed by Tadawul stock exchange, the people said, ask- Wednesday, the most in more than three prompted a selloff across the GCC, wiping out charge. Page 2 Kurdish engineers before they fl ed the oilfi elds. IEA sees shale surge as biggest oil and gas boom in history

Bloomberg ergy policy. US drillers have “weathered cally recovered by about 30% to 105bn needs,” Birol said at a press conference London the turbulent period of lower oil prices barrels. Forecasts for shale-oil output in London. That “will bring a lot of dol- since 2014 with remarkable fortitude.” in 2025 were bolstered by 34% to 9mn lars to US business.” While oil prices have recovered to bpd. US shale “has emerged from its Nevertheless, US shale output is expected The supply surge from US shale oil and a two-year high above $60 a barrel, trial-by-fire as a leaner and hungrier to decline from the middle of the next gas will beat the biggest gains seen in they’re still about half the level traded version of its former self, remarkably re- decade, and with investment cuts taking the history of the industry, the Interna- earlier this decade, as the global market silient and reacting to any sign of higher their toll on other new supplies, the world tional Energy Agency predicted. struggles to absorb the scale of the US prices caused by Opec’s return to active will become increasingly reliant once By 2025, the growth in American oil bonanza. It’s taken the Organization market management,” the IEA said. again on Opec, according to the report. production will equal that achieved by of Petroleum Exporting Countries and Reflecting the expected flood of supply, the The group, led by Middle East producers, Saudi Arabia at the height of its expan- Russia almost 11 months of production agency cut its forecasts for oil prices to $83 will see its share of the market grow to sion, and increases in natural gas will cuts to clear up some of the oversupply. a barrel for 2025 from $101 previously, and 46% in 2040 from 43% now. surpass those of the former Soviet Un- “The US will be undisputed leader of to $111 for 2040 from $125 before. Yet that could still change, the IEA said. ion, the agency said in its annual World global oil and gas markets for decades Lower prices are helping to support oil As shale has outperformed expecta- Energy Outlook. The boom will turn the to come,” IEA executive director Fatih demand, and the IEA raised its projec- tions so far, the IEA added a scenario US, still among the biggest oil import- Birol said on Tuesday in an interview tions for global consumption through to in which the industry beats current ers, into a net exporter of fossil fuels. with Bloomberg Television. “In terms of 2035, despite the growing popularity of projections. If shale resources turn out “The implications of the shale revolu- oil, big growth coming from shale oil, electric vehicles. The world will use just to be double current estimates, and the tion for international markets and en- and as such there’ll be a big diff erence over 100mn barrels of oil a day by 2025. use of electric vehicles erodes demand ergy security have been profound,” said between the US and other producers.” That will benefit the US as it turns from more than anticipated, prices could stay By 2025, the growth in American oil production will equal that achieved by the Paris-based IEA, which advises most The agency raised estimates for the imports to exports. The country will in a “lower-for-longer” range of $50 to Saudi Arabia at the height of its expansion, and increases in natural gas will of the world’s major economies on en- amount of shale oil that can be techni- “see a reduction of these huge import $70 a barrel through to 2040. Page 3 surpass those of the former Soviet Union, according to the IEA Gulf Times 2 Friday, November 17, 2017 BUSINESS Strong buying in telecom shares boosts Qatar bourse

By Santhosh V Perumal and financial services (0.57%) and net sellers to the extent of QR6.19mn Business Reporter transport (0.1%); whereas realty tanked compared with net buyers of QR5.72mn 2.28%, consumer goods (0.5%) and on Wednesday. insurance (0.48%). GCC institutions’ net profit-booking Strong buying especially in telecom Major gainers included Commercial strengthened marginally to QR2.32mn yesterday instilled bullish momentum Bank, Industries Qatar, Barwa, against QR2.03mn the previous day. on the Qatar Stock Exchange. Ooredoo and Milaha; while Qatar First Total trade volume fell 13% to Foreign institutions were seen net Bank, Qatari Investors Group, Gulf 6.06mn shares and value by 13% to buyers as the 20-stock Qatar Index International Services, Aamal Company, QR166.04mn, while deals were up 2% gained 0.83% to 7,825.77 points. Qatari German Company for Medical to 2,701. However, local as well as non-Qatari Devices, Ezdan and Mazaya Qatar were There was an 88% plunge in the retail investors and domestic funds among the losers. insurance sector’s trade volume to turned bearish in the market, whose Non-Qatari institutions turned net 0.06mn equities, 82% in value to year-to-date losses were at 25.02%. buyers to the tune of QR26.23mn QR2.43mn and 36% in transactions to Islamic equities were seen declining in compared with net sellers of 64. the bourse, whose capitalisation grew QR22.77mn on November 15. The transport sector’s trade volume 0.44% to QR420.54bn. GCC (Gulf Cooperation Council) retail plummeted 69% to 0.27mn stocks, Trade turnover and volumes were on investors’ net buying rose marginally value by 79% to QR5.38mn and deals the decline in the market, where the to QR0.18mn against QR0.15mn on by 29% to 227. banking, real estate and industrials Wednesday. The telecom sector reported a 36% sectors together accounted for more However, local retail investors were shrinkage in trade volume to 1.03mn than 74% of the total volume. net sellers to the extent of QR10.58mn shares, 31% in value to QR10.17mn and The Total Return Index gained 0.83% to compared with net buyers of QR16.6mn 10% in transactions to 226. 13,123.35 points and the All Share Index the previous day. The banks and financial services sector Foreign institutions were net buyers on the QSE yesterday as the 20-stock Qatar Index gained 0.83% to 7,825.77 points. by 0.15% to 2,136.8 points, while the Al Domestic institutions were also net saw a 10% decline in trade volume Rayan Islamic Index was down 0.05% to sellers to the tune of QR7.34mn against to 1.91mn equities, 18% in value to value by 69% to QR47.21mn and to 1.38mn shares, 96% in value to whereas value shrank 31% to QR6.92 2,945.48 points. net buyers of QR2.32mn on November QR72.44mn and 9% in deals to 867. transactions by 55% to 688. QR21.49mn and 18% in deals to 436. and transactions by 11% to 193. The telecom index expanded 2.17%, 15. However, the industrials sector’s trade The market witnessed a 47% surge in The consumer goods sector’s trade In the debt market, there was no trading followed by industrials (0.57%), banks Non-Qatari individual investors turned volume soared 61% to 1.21mn stocks, the real estate sector’s trade volume volume shot up 33% to 0.2mn equities, of treasury bills and sovereign bonds.

Turkey Wheat traders cautious as regulator reassures on Oger Egypt feud sows confusion debt Latest wheat tender draw off ers from fewest companies in two months Reuters Istanbul Bloomberg Cairo urkey’s banking regula- tor has assured creditors gypt’s latest wheat tender drew Tof Oger Telecom that a off ers from the fewest companies $4.75bn syndicated loan will not Ein two months, as confl icting rul- go to default and they don’t have ings over the world’s largest buyer’s ev- to re-classify it as “non-pe- er-changing grain standards continued forming”, its head said yesterday, to confuse traders. likely helping them avoid costly Six fi rms off ered to sell wheat to the write-downs. General Authority for Supply Com- “We told banks not to clas- modities yesterday, two traders familiar sify the debt as non-performing. with the matter said. That’s down from Either Treasury will acquire, or eight companies in the previous tender will sell it to Saudi Telecom or to and is the fewest since mid-September, others. The loan will not go into data compiled by Bloomberg show. default,” Mehmet Ali Akben, the The off ers come two days after a head of the BDDK banking regu- court ruling banned imports of wheat lator, told Reuters on the side- infected with ergot, a common type lines of an event in Istanbul. of fungus that’s toxic in high quanti- The BDDK’s request marks an ties. However, the agency that oversees attempt to stem the fall-out from inspections of grain cargoes said on Dubai-based Oger’s Telecom’s Wednesday it will continue to follow widening debt problem. international standards, which allow Oger, which owns 55% of for trace amounts of ergot, unless the fi xed-line operator Turk Tel- government issues a new decree stating ekom, has struggled to repay the otherwise. loan. The court’s decision adds to con- Last month, Reuters reported fusion for traders who sell wheat to Oger missed a third payment due Egypt. Diff erent authorities in Egypt on the loan. have issued confl icting rules for toler- A man collects wheat at the grain silos in Cairo. Diff erent authorities in Egypt have issued conflicting rules for tolerance of the fungus, causing sporadic halts in imports Creditors include Turkey’s ance of the fungus, causing sporadic to the most populous Arab nation. Akbank and Garanti, as well as halts in imports to the most populous Isbank, Turkey’s largest listed Arab nation. Casillo Commodities’ Egypt pays a premium of at least GASC, the state buyer, received of- tion for Export and Import Control, the cal news reports fanned worries that lender. French unit said uncertainty over ergot $50mn a year for wheat imports be- fers of Russian wheat from fi ve compa- agency in charge of grain inspections, ergot-tainted bread sold by state bak- Akbank has $1.5bn of expo- rules was one of the reasons it wouldn’t cause of its “unpredictable” policy, nies in yesterday’s tender, according to said on Wednesday. eries could cause ailments from kidney sure, while Garanti has $951mn participate in yesterday’s tender. according to a report from SovEcon in two traders who asked not to be iden- Egypt’s Agriculture Ministry is wait- failure to miscarriages. When Egypt and Isbank 1.9bn lira ($491mn) “Uncertainty surrounding the ergot Moscow. tifi ed because they’re not authorized ing for instructions on whether the halted cargoes suspected of ergot con- worth of exposure to the loan, specifi cations means a higher risk of While tenders have been mostly to speak to the media. One fi rm, Cofco court ruling will change the inspection tamination, traders responded by rais- according to banks’ third-quar- traders incurring a costly rejection,” proceeding normally this year, Egypt’s International Ltd, off ered Romanian process, spokesman Hamed Abdel- ing prices. It took a decree for the prime ter fi nancials. said Charles Clack, an analyst at Ra- wheat imports have been disrupted for wheat, the traders said. The grain is for Dayem said. “Until then, things remain minister to resolve the standoff . Oger is 35% owned by Saudi bobank International in London. While containing poppy seeds. The govern- January 1-10 delivery. the same, nothing changes,” Abdel- If the requirement for zero content Telecom Company (STC). Reu- that was somewhat refl ected in the ment stopped several cargoes earlier Wheat cargoes that the authority Dayem said. of ergot is back, it’ll be a problem and ters reported last month that number of off ers yesterday, prices “are this year due to concern that they con- contracted to buy in the past won’t be The dispute dates back about two make Russian exports slower,” said Turkey’s Treasury opted not to a still pretty low with no risk premium as tained the seeds, which the country aff ected by the court decision, Ismail years, when the country said it had zero Arkady Zlochevsky, president of the grant a request from STC to ex- such,” he said. bans. Gaber, head of the General Organiza- tolerance for the fungus and after lo- Russian Grain Union. tend a deadline in the debt talks. Investors re-price risk in Mideast bond market

Reuters This time, credit spreads and Abu Dhabi, a stronger credit, has Thirdly, investors believe Sau- Dubai/London the cost of insuring debt against risen 15 bps. The yield on Bah- di Arabia’s 32-year-old Crown default have increased not only rain’s 2047 bond, a much weaker Prince Mohammed bin Salman for Saudi Arabia and Lebanon, but credit, is up 50 bps. may be changing a political sys- rise in Middle East bond across the six-nation Gulf Coop- “This is a repricing of system- tem that endured for decades. yields following Saudi Ara- eration Council, which includes ic political risk. This will not be a “Investors have long looked Abia’s anti-corruption purge Qatar, Kuwait and Abu Dhabi. short-term bounce in yields, but to the rule of the royal family and turmoil in Lebanon signals a “Now everybody feels con- a long-term step up to a slightly as a source of stability. But this long-term re-pricing of regional fi rmed that it is justifi ed to have higher risk bracket,” said Marcus stability was only present so debt caused by heightened politi- an additional spread for GCC Chenevix, regional analyst at TS long as decisions were reached cal risk, investors believe. and also Middle Eastern risk, Lombard. by consensus. Now consensus is Funds started selling Middle because of potential geopolitical Several factors make the cur- no longer king. Absolute rule has East bonds early this month af- risks,” said Trieu Pham, regional rent situation seem particularly been brought back,” Chenevix ter Saudi Arabia detained dozens credit strategist at MUFG Se- serious to investors. said. of senior offi cials and top busi- curities. “Geopolitical risk will One is that it follows the deci- Anita Yadav, head of fi xed in- nessmen in an unprecedented remain high in the region...and I sion by four Arab states in June come research at Emirates NBD, crackdown on graft. think the geopolitical additional to impose sanctions on Qatar, said the jittery market was ig- The arrests coincided with the spread is there to stay for now.” an act which threatens the long- noring the fact that oil prices — resignation of Lebanon’s prime Yields have risen by around 25 term integrity of the GCC. the single most important factor minister, which put that country basis points this month on some In past years, GCC bonds were for regional credit quality — had at the centre of regional tensions of the most actively traded sov- in short supply, so they were risen above $60 a barrel from between Saudi Arabia and Iran, ereign bonds in the region, in supported by an imbalance in $50 a few months ago. pushing Lebanese bond prices to particular at the long end of the demand. But even if political uncer- multi-year lows. curve, where most internation- Now supply is plentiful as tainty eases in coming weeks, In past years, political events al investors concentrate their governments and companies this may be off set by an expected — such as Islamic State’s taking holdings. raise money in response to low increase of US of the Iraqi city of Mosul in 2014, Saudi Arabia’s $6.5bn bond oil prices; dollar-denominated Treasury yields, she said. or the start of Saudi Arabia’s maturing in 2046, for instance, bond issuance from the Gulf to- “Bond prices may remain un- military intervention in Yemen now yields 4.67%, up from tals about $80bn so far this year, der pressure, and may not recov- in 2015 — had only a brief eff ect 4.43% just before the Saudi ar- against a record $63.5bn in the er materially, even though the A man counts Saudi riyal banknotes in a jewellery store in Riyadh. A rise in Middle East bond yields on bonds, which was confi ned to rests. whole of 2016, Thomson Reuters factors that contribute to those following Saudi Arabia’s anti-corruption purge and turmoil in Lebanon signals a long-term re-pricing of a few countries. The yield on the 2047 bond of data shows. prices would change.” regional debt caused by heightened political risk, investors believe. Gulf Times Friday, November 17, 2017 3 BUSINESS

Shale goal in sight: Pump with a profit, without hurting growth

Bloomberg City-based Devon Energy Corp, told analysts Calgary on a November 1 earnings call. “This is not a populist philosophy that we are paying lip service to. We are absolutely committed to Shale drillers are promising to add a new doing business diff erently.” wrinkle to their world-shaking oil boom: they It helps that producers have the wind of an may finally make money. oil rally at their backs. Brent crude prices rose In third-quarter earnings reports, explorers 11% above the same period in 2016, settling including Pioneer Natural Resources Co, in above $52 a barrel. Company revenues EOG Resources Inc and Anadarko Petroleum jumped and explorers across the board beat Corp said they’re on the cusp of shrinking or analyst expectations for sales and profits. even eliminating the gap between operating US government data released on Wednesday expenses and the cash they take in. That shows US crude inventories increased for a would mark a turning point for an industry second week, while nationwide output jumped that’s piled up losses and lived on borrowed for four straight weeks to a fresh record-high. money for years, as drillers plowed resources Despite a more cautious outlook on spending, into developing new oil plays across the US. and the eff ects of a destructive hurricane The International Energy Agency season, drillers also said they plan to pump acknowledged the US boom’s resilience on more oil and natural gas in the fourth quarter Tuesday, predicting shale will be dominant in and beyond. That could undercut an Opec-led global markets for at least the next decade. If eff ort to cut global crude supplies that finally earnings forecasts are right, that dominance gained some traction in the third quarter. will come with a helping of fiscal discipline. Companies promised to heed investor calls for Among the biggest shale-focused a hardened focus on dividends, buybacks and producers, free cash fl ow – the money boosting stock prices. left aft er subtracting operating To hear shale executives talk this earnings costs – are expected to rise in the season “was to hear actors auditioning for coming quarters, according to analyst the same part, reading the same lines from estimates tracked by Bloomberg the same script,” said Dan McSpirit, a BMO Capital Markets Corp analyst, in a note to Still, Tim Dove, the CEO at Pioneer – one of clients Tuesday. “The story was about capital the quintessential shale growth companies discipline or growth within cash flow or some – felt the need to reassure investors that variation of it.” profitability will remain paramount. “This Among the biggest shale-focused producers, is not just growth for growth’s sake,” Dove free cash flow – the money left after said on an analyst call, in reference to a 10%, subtracting operating costs – are expected quarter-on-quarter jump in Pioneer’s oil to rise in the coming quarters, according to output. “These growth numbers are really analyst estimates tracked by Bloomberg. based on strong returns and high capital Some companies said they’ll even make eff iciency.” enough to cover growing dividends. Whether the industry can stick to the value- The new “balanced operating model is in over-volumes mantra remains to be seen, said contrast to the industry’s historical behaviour BMO’s McSpirit. “We’ll call it a work of fiction of aggressively chasing top line growth at for now, pointing to the industry’s past that A worker waits to connect a drill bit on Endeavor Energy Resources’ Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas (file). Despite a the ultimate expense of shareholders,” Dave doesn’t provide much evidence to support a more cautious outlook on spending, and the eff ects of a destructive hurricane season, drillers also said they plan to pump more oil and natural gas in the Hager, chief executive off icer at Oklahoma change in behaviour,” he wrote. fourth quarter and beyond.

Bloomberg QuickTake Global oil prices

By Brian Wingfield forced high-cost drillers to idle rigs while international giants like Chevron, Shell and Halliburton cut thousands of workers and billions of Oil is so much more than a fuel. It’s dollars in spending. Last November, a force even bigger than its trillion- Opec nations finalised a deal to cut dollar market. It’s a weapon, a strategic supply for the first time in eight years, asset, and a curse. It’s a maker and after Saudi Arabia and Iran were able spoiler of fortunes, a leading indicator to set aside diff erences that had sunk and an echo chamber. Each has a part earlier eff orts to rein in production. in determining oil prices. But this didn’t result in a big price The Situation rebound, as Libya and the US began pumping more. After four years when the highest The Background average oil prices in history seemed to defy economic gravity, petroleum During the mid-20th century, a group began to plummet in mid-2014. of multinational oil giants known Prices dropped as much as 75% as the Seven Sisters (including the over the next 18 months, throwing companies that became Exxon oil producers into turmoil and Mobil, Chevron and BP) dominated roiling global markets. Supply had the market. Controlling the barrels expanded as the sustained higher from the wellhead to the gasoline prices made techniques such as tank, they traded mainly with each The Argument deep–water drilling and fracking pay other on confidential terms; there suppliers and the development of producers say the shale revolution energy consumption and slow the off . Then China’s economy slowed was no open market. Countries futures exchanges gave rise to new Few analysts expect oil prices to — which made the country one of shift to cleaner fuels that would help and its imports sagged. Instead of with oil fields wrested more control market-based prices. Today, the return to the levels seen a few the world’s biggest producers of oil fight climate change. Longer-term, staunching the glut by pumping less with the formation in 1960 of the international benchmark is Brent years ago any time soon, giving and gas — has freed it from fears that though, remedies for global warming oil, Middle East exporters engaged Organization of the Petroleum crude from the North Sea. The US rise to the idea that this could be a Middle East conflicts will cut off its could have a dramatic eff ect on oil, if in a price war to defend their market Exporting Countries. The group’s benchmark, West Texas Intermediate new era of energy abundance. The supply. Some industry-watchers worry governments favour policies to keep share. Adding to the oversupply, Arab members used their power for crude, which for years traded at a price slump has been a blessing for that bargain prices will begin a period crude in the ground. But oil companies Iran began ramping up exports an embargo in 1973. Prices spiked discount to Brent, has been close to gasoline-guzzling consumers and a of under-investment in oil production say the future includes rising energy after an agreement to curtail its again in 1979 because of the Iranian parity in 2016. The US repealed its curse for governments in countries that could set the stage for another demand and population growth, nuclear programme lifted economic revolution. In the 1980s, Opec 40-year-old ban on exporting crude like Venezuela and Nigeria, whose surge in prices. Environmentalists making oil an important fuel for sanctions. The price collapse then infighting, the emergence of new in December 2015. fortunes are tied to energy sales. US worry that cheap oil will increase decades to come. Gulf Times 4 Friday, November 17, 2017 BUSINESS

China’s ‘hard bones’ reform drive seen leaving expansion intact

Bloomberg that after four decades of reform address its reform challenges without Tilton. “The policy challenge for detailed economic policy for next yesterday on the sidelines of the Beijing and development, most low- undermining the expansion. 2018 will be to move ahead on risk year - that’s due in December - signs Caixin conference. hanging fruit has been picked. What Global investors have been buoyed reduction and key reforms without of seriousness of purpose have China’s total debt will increase to remains involves the hard stuff, like by the solid year that China’s too much of a slowdown,” Tilton emerged. 292% of output in 2019 and 328% China’s reform drive is winning meaningful governance changes economy has put in, setting it up wrote in a note Thursday. “Given that Read here how Xi’s economic aide is in 2022, up from 162% in 2008, plaudits from economists who are to state-owned companies and for potentially the first full-year roughly half the world’s investment poised for a key role in debt cleanup according to Bloomberg Economics increasingly confident that excesses overhauling how local government is acceleration since 2010. However, spending and more than a quarter of And among other policy makers, estimates. in the world’s second-largest funded. even optimists see a slowdown next global growth occur in China, how its the mantra now is that preventing Still, Morgan Stanley economists economy can be tackled without China must “bite the hard bones,” Xu year amid efforts to rein in excess policy makers manage this balancing systemic risks in the banking system including Chetan Ahya wrote in a derailing growth. said at the Caixin Summit. Reforms borrowing and tame the property act remains central to the health of is the key priority. Data for October report this week that China should Faced with a debt pile rising toward in the new era must break through sector. the world economy.” also show that the pace of increase nevertheless achieve a “near- three times annual output, a property the “psychological comfort zone,” Read about estimates of China’s first Goldman Sachs forecasts a 6.5% gain in credit aggregates is slowing, with stabilisation” of its debt-to-GDP ratio market showing signs of turning, and he added, referencing President Xi full-year acceleration in seven years. in 2018, revised higher last month M2 money supply growth now at a by late 2019, and achieve high- entrenched interests slowing long- Jinping’s heralding last month of Economists surveyed by Bloomberg from a prior estimate of 6.3%. record low. While actual deleveraging income status by 2025. needed reform of state enterprises, a fresh period in the country’s of estimate real gross domestic product In October, Xi conspicuously isn’t happening yet, officials point to “Confidence in our thesis has China’s top officials are signalling that development in history. growth of 6.4% next year, down dropped a previous Communist this as progress. increased over the past few months the tough jobs can’t be put off much As that sentiment becomes from a projected 6.8% this year. Just Party pledge to double 2010 output, The PBoC’s current focus is still considering the better-than- longer. increasingly widespread, economists how much debt-slashing goes on signaling a fresh focus on the quality preventing financial risks and expected progress thus far and People’s Bank of China research at Goldman Sachs Group Inc and next year matters far beyond China, of economic growth rather than supporting the real economy, Yin the continued strong emphasis on director Xu Zhong said at a Morgan Stanley are nevertheless according to Goldman Sachs analysts the mere adherence to nominal Yong, a deputy governor of the ensuring ‘sustainability’ of growth,” conference in Beijing yesterday upbeat that the economy can led by chief Asia economist Andrew targets. While officials haven’t yet central bank said in an interview they wrote.

Beijing’s China oil refi ners rush to Jan-Oct outbound investment cash in on bumper profi ts falls 40.9%

Reuters Beijing to $86.31bn

hinese oil refi ners are churning Reuters out record amounts of fuel in Beijing Cthe last quarter of 2017, looking to cash in on the best refi ning profi ts in nearly two years after a rally in diesel hina’s non-fi nancial out- and gasoline prices. bound direct investment Offi cials at fi ve state-owned oil proc- Cfrom January to Octo- essors said they are refi ning and ship- ber fell 40.9% year-on-year to ping as much product as possible after $86.31bn, the Ministry of Com- receiving generous export quotas. merce said yesterday as authori- That is creating a domestic shortage ties bear down on what they say that China’s independent refi ners – of- are speculative foreign ventures. ten called teapots – are rushing to meet, Outbound investment in Octo- while also raising their output to profi t ber fell 29.6% on-year to $8.28bn, from a hike in state-controlled gasoline Reuters calculated from offi cial and diesel retail prices. data, narrowing from a 42.5% on- “With major oil companies ramping year decline in September. Over- up exports to use their additional quota, seas investment by Chinese fi rms regions such as northeastern provinces has fallen sharply since Beijing showed tightness, giving teapots more implemented strict controls on space to sell their products domesti- capital leaving the country. cally,” said Gao Jian, an oil analyst with China says it continues to en- China Sublime Information Group. courage genuine overseas deals Wholesales diesel prices quoted by but has vowed to limit invest- major independent refi ners gained ment in overseas property, hotels, about 600 yuan ($90.40) in the last two entertainment, sports clubs and weeks to 6,600 yuan ($994.40) a tonne, fi lm industries it suspects is more while gasoline prices rose to 6,300 yuan speculative and aimed at circum- ($949.20) a tonne, both hitting the venting tight capital controls. highest level in two years, data from Zibo Longzhong Information Group Overseas investment by showed. Chinese fi rms has fallen Four independent refi ners in Shan- sharply since Beijing dong, with a combined 18mn tonnes of implemented strict controls annual crude processing capacity are on capital leaving the pushing out as much diesel and gaso- country line as possible due to strong domestic demand, said offi cials at the processing Top government offi cials have plants. Vehicles refuel at a Sinopec gas station in Hong Kong. Chinese oil refiners, including Sinopec, are churning out record amounts of fuel in the last quarter of 2017, looking recently stressed that China is The uptake is resulting in low fuel in- to cash in on the best refining profits in nearly two years after a rally in diesel and gasoline prices. Off icials at five state-owned oil processors said they are refining and looking step up its outbound ventories at the refi neries ahead of win- shipping as much product as possible after receiving generous export quotas. investment, and is encouraging ter, and they will likely need to keep run fi rms to expand globally as the rates high to replenish stocks. 40% surge in underlying crude prices Chinese refi ners are also benefi ting tors to sell abroad, further draining lo- sis. That trend isn’t likely to end, with country looks to play a larger role This tightening has also lifted refi n- since July. from a crackdown on illegal fuel sellers, cal fuel inventories. the independents getting a boost in in the global economy. ing margins. With margins higher, China’s refi ners as well as environmental controls that “Recent buying led by Sinopec’s pro- their 2018 crude import quotas. Investment in countries in- Profi ts at the independents to proc- raised overall crude processing to near have hit small chemical plants that sell curement division helped draw stocks The profi t party could end soon, volved in China’s Belt and Road ess a tonne of crude rose to 800 yuan record levels in October, with runs ris- fuel. of both gasoline and diesel to razor though, with refi ning offi cials say- initiative, an extensive infra- ($120.49) a tonne this month, high- ing by 7.4% from September to 50.51mn “The environmental campaign shut thin,” a manager with Shandong Fuhai ing margins are under threat from the structure plan meant to link Asia est since early 2016, data provided by tonnes. down many of the smaller chemical Industrial Co. start-ups at PetroChina’s Yunnan re- with the Middle East and Eu- China’s Sublime Information Group The margins are a turnaround for the plants, which helped lift our sales,” said Shandong Fuhai and Shandong Won- fi nery and CNOOC’s Huizhou refi nery. rope, totaled $11.18bn in the fi rst showed. independents, who struggled to break a manager with Shandong Dongming full PetroChemical Group were two of Still, a manager with a 5mn tonne- 10 months of the year, the Minis- For state-owned majors, margins to even this summer amid a pricing war Petrochemicals, one of teapots raising the other teapot refi ners bumping up per-year private refi nery said his plant try of Commerce said. process Daqing crude touched 710 yuan with major refi ners Sinopec and Pet- crude runs to profi t in the current mar- throughput. will try to make the good times last. Belt and Road deals accounted a tonne, best level in a year, according to roChina. ket. The high refi nery runs will add to “As long as we make good mar- for 13% of total investments, data from Zibo Longzhong Information Sinopec and PetroChina own the fi ve To cash in on the higher margins as China’s crude oil imports, currently on gin, we will churn out products at full up from 8.3% of all deals in the Group. refi neries that offi cials said were pump- much as possible, some state refi ners track to top United States’ imports this speed,” said the manager, declining to year-ago period, the Ministry of The higher profi ts come despite a ing up runs to maximise fuel exports. are buying fuel from private competi- year for the fi rst time on an annual ba- be named. Commerce said.

Subaru recalls 400,000 Indian corporates find saviour in bonds as loans dry up

Reuters savings and are chasing yields which include Nirchem Cement, Tanot India’s GDP compared with other vehicles in Japan Mumbai/Singapore are higher than traditional bank Wind Power, Oriental Nagpur Betul emerging markets such as China, deposits,” Karthik Srinivasn, group Highway, Hindustan Oil Ventures – a Malaysia and Thailand where the head – financial sector ratings at ICRA welcome development for regulators ratio is nearly 50% as of 2016, AFP compulsory inspections three years Indian companies are finding it Ratings, said. who have long sought to develop the according to ICRA. Tokyo after purchase, a transport minis- easier to raise funds through bonds “However, investors need to do corporate bond market. “We understand there will be good try offi cial said. “There is no prob- than bank loans, as a surge in bad their own diligence and cherry pick More established companies have and continued demand from lem with older cars as they have al- credit chokes off bank lending the companies as they go down also been lured to the domestic mutual funds especially fixed ubaru recalled nearly 400,000 ready been confi rmed to meet safety while investors seek higher-yielding the rating curve for higher-yielding market. income group funds...,” Greenko vehicles from its domestic mar- standards,” this offi cial told AFP. investments for their cash. assets.” Reliance Industries raised Rs175bn Group’s Rao Kaipa said, adding that Sket yesterday due to an inspec- A Subaru spokesman said the The country has seen a record Recently, Indian billionaire Anil ($2.7bn) from the domestic debt 8.75% was “reasonably attractive” tion scandal – the latest to hit the be- group had decided to reinspect all number of corporate bond issues this Ambani’s Reliance Communication market in the last three months. to investors. leaguered Japanese car industry. vehicles produced domestically year, including from lower-rated and missed on coupon payment but that Investors started putting their cash in Corporate bond issuance climbed The recall concerns nine models, from 2014, not just some models first-time issuers, partly as a result of has not dented investor appetite, banks after the government banned to a record Rs5.52tn during including a sports car that Subaru believed to have been checked by troubles in the banking sector. fund managers said. high-value notes in November last January-September, 19% higher manufactures for Toyota, but vehi- uncertifi ed staff . Banks are grappling with $145bn Investors are drawn by returns of year in a bid to purge the economy of than a year ago, according to Prime cles sold overseas were not aff ected, The recall is the latest blow to the in stressed loans and are leery 8.5-9.5% compared with bank fixed unaccounted money. Database. a spokesman told AFP. once fl awless reputation of Japan of extending more credit to the deposit rates of around 6.5%. That led to trillions of rupees of On the other hand, banks’ loans to Subaru admitted last month that Inc, after a similar case at bigger rival corporate sector. Renewable energy company Greenko savings stashed at home flowing corporates contracted 1.5% from uncertifi ed staff had conducted vehicle Nissan. Last month, Nissan recalled Bankers expect companies to Group raised $450mn for the first into mutual funds and insurance March-September despite overall inspections at two factories northwest some 1.2mn cars in Japan that had continue to tap the debt market time in the domestic market in late companies – the top investors in credit growing by 8.2%, which of Tokyo. It said at the time it would failed to meet domestic rules on fi nal despite bond yields having risen 25 October at 200 basis points below corporate bonds. too was the lowest in over two likely have to recall 250,000 cars at a vehicle inspections. This put a major basis points in the last two months what it would have paid for a bank Mutual funds’ share of corporate decades. “Five years back the share cost of some 5bn yen ($44mn). dent in its operating profi t forecast as companies can still refinance at loan. “The purpose of the bond is bond investments stood at 45.98% of bank loan versus bonds was It is not immediately known how this year, the fi rm said last week. some 100-150 basis points below to refinance the existing higher of debt assets under management 75-25 for a corporate,” said Ajay much the wider recall of 395,000 The embarrassing admissions bank loans. cost loans obtained during project as of end-July, up from 37.31% a year Manglunia, head of fixed income at vehicles will cost the group. have hurt Japan’s auto industry, “The cost differential is a big fillip to construction phase with better earlier, data from the Securities and Edelweiss Financial Services. The aff ected cars were produced once the envy of the world for its bond issuers and also beneficial to pricing,” said Vasudeva Rao Kaipa, Exchange Board of India show. “That share has changed to 65-35 at the two factories between January just-in-time manufacturing and investors like mutual funds who are chief financial officer at Greenko Bond supply has risen but corporate now and will become 50-50 in the 2014 and October 2017. Cars bought near-obsessive focus on constant receiving huge inflows of financial Group. Other first-time issuers debt accounts for only a fifth of next two years.” before then will have been subject to improvement. Gulf Times Friday, November 17, 2017 5 BUSINESS

Tapi pipeline: Pakistan to press for reducing gas price

Internews for the IP pipeline. However, this Islamabad project has been stalled in the wake of US sanctions on Tehran. Australian gas giant For the Tapi project, the Pakistan has decided to ask Turk- laying of pipeline and develop- menistan to slash gas price by ment of gas field have started in linking it with Brent crude oil rates Turkmenistan. Simultaneously, under a revised pricing formula eff orts to achieve financial close for the transnational gas pipeline are under way and the project is that the Central Asian country is expected to come on stream as building to meet energy needs of per schedule. Santos rejects over Afghanistan, Pakistan and India. The four countries partici- “The government has decided pating in the Tapi project have to re-negotiate the price under already signed an investment the gas sale-purchase agreement agreement for the $10bn tran- with Turkmen Gas Company in snational pipeline in a bid to kick the light of prevalent rates of off work, update feasibility study liquefied natural gas (LNG) and and finalise pipeline route in comparable fuels,” said a senior Afghanistan. $7bn takeover off er government off icial. Leaders of the four countries “The matter will be taken performed the ground-breaking Reuters up in a meeting of the steering of the project in December 2015, Melbourne committee for the Turkmenistan- which would help ease energy Afghanistan-Pakistan-India (Tapi) deficit in South Asia. gas pipeline project which will be With the title of peace pipeline, ustralian gas producer Santos held next month in India.” the Tapi project is expected to Ltd said yesterday it rejected a Earlier, the gas price was linked bring peace and stability in the AA$9.5bn ($7.2bn) takeover ap- with the Japan crude cocktail at region because of cooperation proach in August, sending its shares up 64% of its value. The same formu- among regional countries and re- 13% on speculation another off er was la was applied to the Iran-Pakistan liance on each other for satisfying likely to emerge. (IP) gas pipeline project. energy demand. The pipeline will Santos, with stakes in three lique- However, Pakistan has secured connect South and Central Asia. fied natural gas (LNG) projects in a re- a 15-year LNG deal with Qatar at Turkmenistan will invest gion where gas demand is soaring, said 13.37% of the Brent crude price. around $25bn to deliver 3.2bn it rebuffed the approach from private Later, the government entered cubic feet of gas per day (bcfd) equity-backed Harbour Energy as too into LNG contracts at further to energy-hungry Afghanistan, cheap and has not received a further lower price at 11.99% of crude oil Pakistan and India. proposal. rate with Italian energy giant Eni Of the total, $15bn will be in- It revealed the August approach after under a long-term arrangement. vested in developing the gas field a newspaper reported that US-based “Now, we will try to match this whereas $10bn will be poured into Harbour, led by a former executive di- price,” the off icial said while point- laying the pipeline over 1,680km rector of Royal Dutch Shell Plc, Linda ing out that there was a clause in connecting Afghanistan, Pakistan Cook, was set to make a bid worth the gas pipeline agreements that and India with Turkmenistan. around A$11bn. if Pakistan succeeded in import- The off icial said a consortium Santos said in a statement it had turned ing gas at cheaper rates, then of Japanese companies was work- down the “non-binding conditional and Turkmenistan and Iran would ing on fast track to develop the indicative” takeover proposal from Har- have to match those prices. gas field in Turkmenistan whereas bour at A$4.55 a share, but said it had no Pakistan has already asked a Chinese company was working current proposal from Harbour and was Iran to bring down the gas price on building the pipeline. not in talks with the group. The Australian Financial Review said Harbour is lining up a bid of around A$5.30 a share, well above analysts’ aver- age price target of A$4.26, according to Pakistan services exports Thomson Reuters data. Harbour Energy’s general counsel de- grow 9% $457.78mn in Sept clined to comment. “Linda was an architect of Shell’s LNG business in Australia and had overseen its Santos, with stakes in three liquefied natural gas (LNG) projects in a region where gas demand is soaring, said it rebuff ed the Internews of 5.6% over the corresponding development. approach from private equity-backed Harbour Energy as too cheap and has not received a further proposal. Islamabad period of last year. It is therefore not surprising that Linda Last year, Pakistan’s exports would be interested in getting involved in “Santos is a considerably improved two years ago, while ExxonMobil swal- Harbour Energy was formed in 2014 of services recorded a growth of Australian LNG with Harbour,” a source business, with a strong management lowed another PNG player, InterOil, this by private equity fi rm EIG Global Energy Pakistan’s services exports wit- 1.76% year-on-year to $5.55bn. familiar with the matter told Reuters. team and soon to be fresh set of eyes as year, after trumping a bid from Total SA Partners to make investments outside the nessed a growth of 9% year-on- The import of services were Santos, whose shares hit a 15-month chairman,” said Credit Suisse analyst and Oil Search. United States. year to $457.78mn in September, up 7.4% to $2.5bn in Jul-Sept as high of A$4.97 yesterday, also rejected Mark Samter. Santos’ biggest shareholder is China’s Earlier this year Harbour bought the Pakistan Bureau of Statistics against $2.36bn over the cor- a A$7.1bn proposal in 2015 from a fund Santos should only consider “serious ENN Ecological Holdings Co, which to- Shell’s UK North Sea assets with said yesterday. responding period last year. On backed by the ruling families of Brunei discussions” at A$6.50 a share, he said. gether with private equity partner Hony Chrysaor Holdings Ltd for $3bn, mak- The growth in export of serv- a monthly basis, the import of and the United Arab Emirates, at a time The main prize in Santos is its stake in Capital holds 15.1% of the group. ing it the largest independent oil and gas ices mainly remained driven by services dipped 7.4% year-on-year when the company was saddled with the Papua New Guinea LNG project, run They have an agreement with Santos producer in the North Sea. finance and insurance, transport to $733.15mn. nearly A$9bn in debt. by ExxonMobil Corp. that they must accept any takeover rec- EIG has already invested in Australia, and storage, wholesale and retail In the year 2016-17, import of Analysts said a bid even at A$5.30 was PNG, considered the lowest cost ommended by the Santos board, as long taking a 12% stake in junior gas producer trade, public administration and services increased 2.96% year-on- unlikely to be accepted by a company that source of LNG growth, has been a hot- as it is pitched above their average en- Senex Energy. defence. year to $9.12bn. The trade deficit has since slashed debt, cut costs and is bed of takeover activity, which could see try price into the company, but are not If an A$11bn ($8.4bn) for Santos In three months between July in services increased 5.87% to poised to benefi t from rising oil and gas other bidders emerge for Santos, analysts blocked from making a counter off er. emerges, it will be the biggest US of- to September, export proceeds $1.22bn in July-September on a prices at its Gladstone LNG project, Pa- at UBS said. Hony declined to comment on Thurs- fer for an Australian company ever and of services recorded a growth year-on-year basis. pua New Guinea LNG, Australia’s Cooper Woodside Petroleum was rebuff ed in a day and ENN was not immediately avail- Australia’s second-biggest private equity Basin and off shore northern Australia. bid for PNG LNG partner Oil Search Ltd able for comment. buyout, according to Reuters data. PBoC adviser expects less forceful deleveraging in ’18

Reuters Congress, China’s largely rubber-stamp parliament, Beijing said the ratio of China’s fi nancial sector to the overall economy is the highest in the world. “This is not a good thing,” Huang told the fi nance Chinese central bank adviser said yesterday forum yesterday. he expects the government’s fi nancial delev- Central bank governor Zhou Xiaochuan warned A eraging to be less forceful next year, a cam- last month that corporate debt levels are still rela- paign that has weakened credit expansion at a time tively high and household debt is rising too quickly. when the world’s second-biggest economy is show- Central bank adviser Sheng yesterday said he ex- ing signs of slowing. pects China to keep the yuan stable, with no sharp China is in its second year of a crackdown on spec- moves in either direction. ulative investment and high corporate debt levels as A rapid rise in the yuan could hurt China’s econ- it looks to defuse fi nancial risks and a property bub- omy while a dramatic fall could trigger some risks, Jochem Heizmann, president and CEO of Volkswagen China, poses during an interview in Guangzhou. “China is leading the way to the ble. he said. final breakthrough in the adoption of e-mobility and Volkswagen Group China is determined to be at the forefront,” said Heizmann. But it walks a fi ne line – a dramatic clamp-down The yuan could trade around 6.6 per dollar by the on fi nancial risks could stunt economic growth. end of 2017, Sheng said. Factory output, fi xed asset investment and retail It started the year around 6.9 per dollar and has sales last month all fell short of expectations. since made steady gains. “Currently, our fi nancing deleveraging has Sheng said he also expects market interest rates in achieved obvious results. China to fl uctuate at high levels next year. Next year, we will continue to deleverage, but the Huang said a property tax could be on the cards in Volkswagen China to invest the next few years, adding it will help temper specu- deleveraging will not be as forceful as this year,” cen- tral bank adviser Sheng Songcheng said at a fi nance lation in a sector that has drawn a raft of government forum in Beijing. curbs in the past year. China’s new loans slumped more than expected in China has discussed a recurring property tax for billions in new energy cars October to their lowest in a year, the latest data from years, but public progress on the initiative ground to the central bank show. a halt after a very limited pilot scheme in 2011. Broad M2 money supply, which includes cash, and “I believe (a property tax) will happen in the near AFP cars among sales of 4mn vehicles in China jing, where getting a valid license plate is short- and long-term deposits, missed growth fore- future, not take 10-20 years. Beijing last year. The investment and partnership near impossible, authorities have allocated casts in October with a gain of 8.8%, expanding at It could happen in the next several years,” he said. will help the German manufacturer reach thousands of plates for electric cars. the slowest pace since records began in 1996. Huang, appointed to his current post in February, its goal of introducing dozens of new en- Beijing has plans to phase out petrol The central bank said in June that slowing M2 is considered a leading fi nancial expert in China and olkswagen will invest more than ergy models and delivering 1.5mn new en- vehicles entirely, though it has yet to set a growth could be a “new normal” due to the crack- is best known for his term as mayor of Chongqing. €10bn ($12bn) along with its part- ergy vehicles in the country by 2025. date for the ban. down on risky shadow lending activities. Yesterday, he also called for changes to how China Vners in China to build new energy “China is leading the way to the fi nal Volkswagen now faces one of the biggest “I expect M2 growth to pick up somewhat next manages its massive pile of foreign exchange re- vehicles in the country, the company said breakthrough in the adoption of e-mobil- challenges for electric carmakers – batter- year. serves, which rose to $3.109tn in October. yesterday. ity and Volkswagen Group China is deter- ies – and it said it was looking for partners It cannot be as low as this year,” Sheng said. “China has reached a stage where the foreign ex- Volkswagen is also establishing a new mined to be at the forefront,” said Jochem to ramp up battery production capacity for Sheng expects China to maintain prudent mone- change reserves system must be reformed,” Huang joint venture with state-owned JAC Mo- Heizmann, president and chief executive its vehicles. tary policy in 2018 and make appropriate fi ne-tuning said, adding that the Ministry of Finance should play tors to make electric vehicles, with an of Volkswagen Group China. Other foreign automakers are also step- based on economic and fi nancial conditions. a bigger role in managing the country’s foreign re- aim to get the first electric car to market China will implement a complex quota ping up eff orts to produce green cars in China’s total social fi nancing (TSF), which in- serves. by next year, the company said in a press system in 2019 requiring automakers to China. cludes off -balance sheet forms of fi nancing such as The reserves are primarily managed by the Peo- release on the eve of the Guangzhou Auto produce a minimum number of electric US car giant Ford envisages that 70% of loans from trust companies, bond sales and initial ple’s Bank of China. Show. cars. all Ford cars available in China will have public off erings, slumped to 1.04tn yuan in October Huang said China’s forex reserves can currently The move comes as China has put in Beijing originally wanted to start en- electric options by 2025. from 1.82tn yuan in September, and indication the only be invested in liquid foreign debt, which gener- place a series of carrots and sticks to com- forcing the rule in 2018, but it delayed it Last week it announced a $756mn in- curbs are working. ates low returns. pel carmakers to produce more fuel effi - by a year after Germany and some foreign vestment with its Chinese joint venture to Still, monetary authorities are not about to let “We want to be a true fi nancial power. cient and eventually petrol-free cars. fi rms raised concerns. produce electric cars. their guard down. To be a fi nancial power, we should not lend more Volkswagen has been a laggard in the area For electric car buyers, China has intro- Volvo plans to introduce its fi rst 100% Huang Qifan, deputy chairman of the economic money to other countries, but invest globally and so far, selling just a few hundred “green” duced subsidies and in some cities like Bei- electric car in China in 2019. and fi nance committee under the National People’s have high and sustainable returns.” Gulf Times 6 Friday, November 17, 2017 BUSINESS Capital Management feels equity bull run nearing end

Reuters the rally falters, so he would recommend aggressive in raising rates, but feared the seeking alternative asset classes, such as MW also holds about 6% of its funds to a fund manager that trades in bitcoins Singapore sticking to safer developed markets. broader tightening of policy by major hedge funds. in gold. and other cryptocurrencies. “We are not expecting 2018 to be a central banks will hurt stock prices. About 35% of MW’s funds are allocated “We think it’s quite important to hold “My expectation is what will happen particularly bullish year,” Aspin told the The reason to avoid emerging markets, to hedge funds, including a large one to gold, particularly given current central with bitcoin will follow what we saw in Global equities may be close to the end of Reuters Summit in Singapore yesterday. he said, was their tendency to be more US-based hedge funds. bank policy,” Aspin said, explaining it was 1999-2000 with the internet, for example one of the longest rallies in history, mak- “If anything, it could prove to be a tip- volatile than average. Aspin expects to stay similarly invested necessary to hedge both against the risk – a massive rally and a massive selloff ing developed markets such as Europe ping point and we could see a degree of “So, if we do see a selloff in the devel- next year. Aspin’s preferred picks among of real interest rates going negative if and then you are able to pick the winners and Japan safer bets than emerging selloff .” oped markets, due to either valuations, emerging markets are Russia, India and there was another sudden slowdown in from the rubble that perform quite well in markets, the chief investment off icer of a The Dow Jones Industrial Average and a shock to the system or indeed liquidity China, although MW’s direct allocations to global growth or a rise in inflation. the longer term,” Aspin said. multi-family off ice said yesterday. broader Standard & Poor’s 500 index being pulled out, that will have an impact these markets are small. MW is also looking at investing in “I think there is a massive future for Speaking at the Reuters Global Invest- have more than tripled since 2009. on emerging markets.” He reckons China is a good relative bet bitcoin, Aspin said, although he believes coins, particularly for bitcoin given its ment 2018 Outlook Summit, Rob Aspin, The MSCI All Countries World Index has The MW multi-family off ice, which han- for the longer term but expects the Chi- the market is in its infancy and it was pre- network, but I think it’s still very much in chief investment off icer of MW Capital almost tripled over the same period. dles investments for ultra-rich high-net nese markets to be relatively weak next mature to pick possible winners among bubble phase, so I wouldn’t be allocating Management, said he would not be Aspin said he does not expect the worth individuals, goes after uncorrelat- year as the authorities tighten cash condi- companies in the blockchain sector. any significant amount at this point. It will surprised if equity markets fell in 2018 as US Federal Reserve to be particularly ed, steady-state returns, and that implies tions to reduce levels of debt leverage. He plans on making a small allocation just be a very small allocation.”

Indian Asia markets mostly up but stocks rebound

Bloomberg traders on edge after losses Mumbai

AFP Failure of the bill could hit world equities, ndia’s stock benchmark re- Hong Kong which have rallied on the back of hopes the mar- bounded from its longest ket-friendly measures would be introduced. Ilosing streak in four weeks, On Wall Street all three indexes were sharply helped by gains in Reliance In- ost Asian markets edged up yesterday lower a week after posting record highs. dustries Ltd and Infosys Ltd, after a recent sell-off across global Tokyo, which had fallen for six straight days after some investors judged Mmarkets but gains were tempered as after hitting a 25-year high on Tuesday, jumped the selloff as excessive. the optimism that pushed equities to multi-year 1.5% to 22,351.12, while Hong Kong added 0.6% The S&P BSE Sensex highs last week gives way to investor caution. to 29,018.76. climbed 1.1% at the close in Prices have been falling for much of the week Sydney was 0.2% up, Seoul added 0.7% and Mumbai, after shedding 1.7% as the sharp gains of October and early Novem- Wellington and Jakarta were well up. over the previous three ses- ber led to profi t-taking and worries about high However, Shanghai lost 0.1% and Singapore sions. The NSE Nifty 50 rose valuations, while US lawmakers’ tax reform shed 0.5% at close yesterday. 1%, climbing back above its struggles are also dampening sentiment. With oil prices creeping up slightly energy 50-day moving average. The Eyes are on Washington as Republicans from fi rms in Asia were mixed following this week’s India NSE Volatility Index fell each chamber of Congress provide diff ering big losses in the commodity. for the first time in five ses- plans to overhaul the tax system, raising con- Hong Kong-listed CNOOC was up 0.7% but sions. cerns they will not be able to push anything PetroChina shed 0.4%, while Inpex in Tokyo lost Reliance, which derives the through before the end of the year, as Donald almost 2% and Sydney-listed Rio Tinto ticked bulk of its profits from refin- Trump had hoped. up. Crude plummeted on Tuesday and Wednes- ing and petrochemicals, rose The most recent idea in the Senate is to repeal day after the International Energy Agency (IEA) 2.3% as crude oil steadied af- the Obamacare individual mandate as part of the cut its forecast for crude consumption for next ter its recent decline. Infosys plan, leading to speculation the legislation could year. and State Bank of India were collapse in the same way as their healthcare re- That was compounded by data pointing to a among the biggest boosts to forms. rise in US stockpiles. both the Sensex and Nifty. “This is a classic omnibus political stunt to While offi cial fi gures Wednesday showed the The rebound in India mirrored get an unattractive piece of legislation passed increase in reserves was not as big as expected, gains in Asian stocks. by stapling it to something that is likely to get investors remain on edge, and there are also “Shares are stabilising af- passed,” Greg McKenna, chief market strategist worries an Opec-Russia output cut might not be ter the sharp selloff,” Sageraj at AxiTrader, said. extended. Bariya, vice president of in- “But, given that such a move was already ex- “It sounds like there is some discourse be- stitutional sales at East In- pressly voted down on the fl oor of the Senate, tween Opec and non-Opec in terms of not com- dia Securities, said by e-mail. and taking into account resistance from House mitting to something at the end of the month, “Markets are closer to their Republicans it may have just made the Presi- and maybe kicking the can down the road,” Nick Pedestrians walk in front of an electronic stocks indicator showing the numbers on the Tokyo Stock near-term supports and are dent’s Christmas timetable a little harder to Holmes, an analyst at US-based Tortoise Capital Exchange in the window of a securities company in Tokyo. The benchmark Nikkei 225 index jumped 1.5% to getting help from positive sen- meet.” Advisors LLC, told Bloomberg News. 22,351.12 to end at 22,351.12 points yesterday. timent among Asian markets.” Emerging stocks, currencies snap Why China bond selloff isn’t losing streak on solid US data luring back the biggest holder Bloomberg is unlikely for the bond market any time soon. Hong Kong China’s current policy is like “asking the Reuters offi cials accusing Riyadh of holding horse to run (support for the real economy London its Prime Minister Saad al-Hariri through loans and direct fi nancing) but not hostage, while France’s President anks, the most powerful group in Chi- letting it eat grass (low excess reserves, high Emmanuel Macron has invited Har- na’s bond market, may hold the key to funding cost),” Zhang Jiqiang, a fi xed-in- merging stocks snapped a iri and his family to come to France. Breversing the nation’s sovereign debt come analyst at China International Capital fi ve-day losing streak yester- Lebanon’s dollar-denominated selloff . Problem is, government policy is Corp, wrote in a report. Eday as investors found sol- bonds were mainly lower across the keeping them at bay. While the expansion of shadow-banking ace from solid US data in the wake curve, with the 2028 issue down 1.4 Even with yields surging to a three-year products has slowed, cash has not returned of the recent global equity sell off cents but still off the lows it hit on high, banks are staying put. The percentage to banks. M2 money-supply growth reached while currencies advanced despite a November 10 according to Thom- of sovereign bonds owned by lenders dropped an all-time low last month. Banks may also slightly stronger dollar. son Reuters data. to a fi ve-year low of 66% in September, com- be under pressure to buy municipal bonds MSCI’s emerging market index Lebanon fi ve-year credit default pared with a record-high 70% in 2014, and instead of sovereign securities, in order to rose 0.9% thanks to solid gains in swaps also rose 4 basis points (bps) market participants say they’ve not seen attract deposits from local authorities, ac- Asian heavyweight bourses Hong from Wednesday’s close to 598 bps, much evidence of a pickup in demand. cording to Li Qilin, chief macroeconomic Kong and Seoul, and Chinese main- still some way off the November 10 Banks are facing a rapid slowdown in sav- researcher at Lianxun Securities Co Debt is- land stocks. peak. ings, thereby limiting the fi repower they sued by local governments swelled to 4.2tn Emerging Europe also opened Despite the dollar fi rming against have to use, partly due to a crackdown on yuan ($635bn) so far this year, compared higher, with Hungary leaping 1.2%, a basket of currencies, many emerg- wealth management products. At the same with 2.9tn yuan of sovereign debt. and Turkey and the Czech Republic ing currencies traded stronger. time, they are being encouraged to shift more “This year’s adjustment has been to re- up 0.8%. South Korea’s won chalked up of their funds into loans in order to maintain duce money-supply growth but stabilise The broad-based move higher some of the biggest gains, strength- a steady economic expansion. While yuan loans,” said Shi Lei, chairman of investment came after US data showed a rise in ening 0.7% against the dollar to its deposit growth hit a record low in August, advisory Attractor Adviser Ltd in Shang- core infl ation, bolstering the view highest since September 2016, and the average amount of monthly new loans is hai. “The real economy is still adding lever- that a recent disinfl ationary trend taking its annual gains to nearly poised to rise to a record this year. age; it’s just the fi nancial system that’s been worrying the US Federal Reserve 10%. “Since the start of the year, banks’ bond deleveraging.” This strategy would seem to had probably come to an end. However, a fi nance ministry of- investment has weakened, mainly because run counter to policy makers’ goals. Presi- A rise in retail sales also showed fi cial in charge of currency markets their loans have increased quickly,” said David dent Xi Jinping in July spoke about lowering consumer spending was cruising at said the won’s gain had been exces- Qu, a market economist at Australia & New borrowing in the entire economy, rather than a healthy clip. sive, and warned that policymakers Zealand Banking Group Ltd in Shanghai. the fi nancial system alone. For years, reduc- This confi rmed expectations that were monitoring it closely. This structural predicament – inherent in ing reliance on loans by supporting direct the Fed would not only hike in De- Mexico’s peso recovered 0.45% China’s desire to deleverage without sacrifi c- fi nancing methods such as bonds has also cember — which is now almost fully against the greenback, after falling ing growth – is one of the reasons why relief been a recurring theme for reforms. priced in – but multiple times next to an eight-month low on Wednes- year as well. day as a lack of progress in Nafta “Markets have caught a breather talks frayed investors’ nerves. China’s Yixin posts strong Hong Kong debut amid tech IPO boom – the infl ation data from the US Russia’s rouble fi rmed 0.6%, lift- came in line with what was expect- ed by stronger oil prices and com- ed and markets are fully priced for panies buying roubles to make local Yixin Group, China’s top online car retailer, flat or lower, according to Thomson Reuters a Fed hike in December,” said Kiran tax payments. ended 6% higher in its trading debut after an data. In New York, 80% of IPOs over that Kowshik, a strategist at UniCredit. South Africa’s rand also strength- intra-day surge of nearly a third, adding to a period enjoyed a first-day pop. “US Treasury prices are rally- ened 0.8% and Turkey’s lira fi rmed string of successful tech floats in Hong Kong Including Yixin, the last seven large floats in ing, so yields are going down, and 0.5%. that is boosting the city’s reputation for new Hong Kong have all gained on their debut – a that provides a bit of a breather In emerging Europe the Czech listings. run of success not seen at any point in at least for emerging markets.” US 10-year crown rallied 0.4% against the euro Backed by Chinese Internet giants Tencent six years. yields edged higher on Thursday and the Polish zloty fi rmed 0.2%. Holdings and JD.com, Yixin raised HK$6.77bn Yixin’s shares opened on Thursday at but were still lower than recent Venezuelan sovereign and PDVSA ($867mn) after pricing its initial public off ering around HK$10 and extended gains to HK$10.18 peaks. bonds were mainly fi rmer across at the top of an indicative range of HK$6.60- in early trade. However, Saudi Arabian stocks the curve after Venezuela won eas- HK$7.70. While Hong Kong has been the They closed at HK$8.15 as the initial excite- remained under pressure, easing ier debt terms from Russia and got world’s largest listings venue for the past two ment abated somewhat amid a weak day for 0.4% on the day, having lost more a vote of confi dence from China, years, a stream of poorly performing deals had many Hong Kong blue-chips. than 4% since the start of the year. as the oil-rich country said it had dented its reputation among international in- “We are a Tencent-backed company...In Some other bourses across the started making interest payments vestors compared to other fundraising centres Hong Kong, we can attract both international Gulf region also headed lower. wards the close of each day to pre- tivity appeared to decrease, raising on bonds. such as New York. investors as well as Chinese ones who are Since the announcement of vent Riyadh’s market from falling concerns that the bourse may be Sovereign dollar bonds rose up to In the past six years, half of large Hong Kong more familiar with our business back in main- Saudi’s anti-corruption probe at signifi cantly, asset managers say. vulnerable to more selling. 2.5 cents and PDVSA bonds up to 4 IPOs – defined as those worth at least $500mn land China,” said CEO Zhang Xuan, speaking to the start of last week, state-linked However, this petered out on Political tensions across the re- cents according to Thomson Reu- – have ended their debut trading session either reporters after the opening bell ceremony. funds have been buying stocks to- Wednesday, when the funds’ ac- gion remain high, with top Lebanese ters data. Gulf Times Friday, November 17, 2017 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 6.37 -1.85 642,097 Boubyan Intl Industries Hold 37.50 -1.32 57,320 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 19.80 -2.08 429,620 Gulf Investment House Ksc 22.50 0.00 971,115 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 23.17 -2.07 261,017 Boubyan Bank K.S.C 420.00 -1.18 347,759 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 12.55 -3.46 73,167 Ahli United Bank B.S.C 200.00 0.00 303,800 Bankmuscat Saog 0.40 0.00 528,946 Saudi Printing & Packaging C 16.43 -2.20 280,782 Osos Holding Group Co 109.00 0.00 1,000 Bank Sohar 0.16 0.64 423,898 Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 0.00 154,856 Saudi Paper Manufacturing Co 7.38 -2.38 764,115 Qurain Petrochemical Industr 326.00 -0.31 178,802 Bank Dhofar Saog 0.20 0.00 - Alinma Bank 17.48 -0.29 26,073,202 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 54.42 -1.63 257,285 Ekttitab Holding Co Sak 31.30 -2.19 10,000 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 27.20 -1.45 79,980 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 25.06 -0.95 980,504 Real Estate Trade Centers Co 36.00 0.00 100 Al-Hassan Engineering Co 0.05 0.00 - Hsbc Amanah Saudi 20 Etf 29.50 0.00 1 Acico Industries Co Kscc 232.00 -3.33 104,929 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 14.75 0.27 604,119 Kipco Asset Management Co 69.80 -0.14 38,128 Al-Anwar Ceramic Tiles Co 0.13 -0.76 25,000 Falcom Petrochemical Etf 26.00 0.00 - National Petroleum Services 808.00 0.00 4,609 Al Suwadi Power 0.14 0.00 - Zad Holding Co 70.00 0.00 - Walaa Cooperative Insurance 29.83 2.30 602,347 Alimtiaz Investment Co Kscc 158.00 0.00 1,761,378 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 52.99 -0.02 5,066 Bank Al-Jazira 11.54 0.26 1,203,402 Ras Al Khaimah White Cement 83.20 0.00 2,000 Al Sharqiya Invest Holding 0.11 0.00 - Vodafone Qatar 6.10 -0.81 983,076 Al Rajhi Bank 62.87 0.10 2,489,863 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.00 -1.39 44,735 United Development Co 12.68 0.24 158,987 Samba Financial Group 23.38 0.34 3,827,626 Kuwait & Gulf Link Transport 61.40 4.24 100,040 Al Maha Ceramics Co Saoc 0.28 0.00 5,434 Salam International Investme 6.00 -1.80 94,025 United Electronics Co 46.24 -1.15 192,226 Human Soft Holding Co Ksc 3,800.00 0.98 149,627 Al Madina Takaful Co Saoc 0.10 0.00 403,000 Qatar & Oman Investment Co 6.64 -0.90 5,925 Allied Cooperative Insurance 15.15 -2.70 70,468 Automated Systems Co Kscc 150.00 0.00 2,000 Al Madina Investment Co 0.06 -1.72 262,500 Qatar Navigation 44.00 1.15 51,494 Malath Insurance 12.87 -2.05 693,137 Metal & Recycling Co 80.00 0.00 100 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 57.50 0.68 7,933 Alinma Tokio Marine 17.96 -2.76 112,298 Gulf Franchising Holding Co 74.90 0.00 38,000 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 120.95 0.97 306,407 Arabian Shield Cooperative 41.79 2.43 143,993 Al-Enma’a Real Estate Co 33.80 -0.29 149,420 Al Jazeera Steel Products Co 0.26 0.00 80,298 Qatar Islamic Insurance 44.98 -1.77 4,307 Savola 37.97 0.24 293,828 National Mobile Telecommuni 1,063.00 -1.94 16,349 Al Jazeera Services 0.14 0.00 - Qatar Industrial Manufactur 38.20 0.79 33,361 Wafrah For Industry And Deve 19.29 -1.88 110,143 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 -1.49 206,650 Qatar International Islamic 45.50 0.00 20,527 Fitaihi Holding Group 11.86 -0.84 31,887 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 22.99 -4.61 57,001 Tourism Enterprise Co/ Shams 26.85 0.07 61,159 Al Salam Group Holding Co 39.80 -1.73 40,010 Al Batinah Power 0.14 0.00 - Qatar Islamic Bank 94.00 0.00 63,036 Sahara Petrochemical Co 14.36 -1.51 852,820 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 13.87 -0.22 209,270 Herfy Food Services Co 44.35 -2.08 80,963 Al Aman Investment Company 47.50 -2.86 810 Al Batinah Dev & Inv 0.09 0.00 - Qatar General Insurance & Re 39.99 -0.03 2,910 Mashaer Holding Co Ksc 65.50 3.64 34,541 Al Anwar Holdings Saog 0.15 1.35 717,639 Qatar German Co For Medical 5.30 -3.64 1,718 Manazel Holding 31.00 -1.59 338,040 Ahli Bank 0.17 0.00 - Qatar Fuel Qsc 86.95 0.46 24,174 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.77 0.00 - Qatar First Bank 4.92 -4.09 486,932 KUWAIT Tijara And Real Estate Inves 58.00 0.00 50 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 174.00 0.58 141,086 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.55 0.00 - Qatar Cinema & Film Distrib 23.99 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 656.00 0.31 419,999 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 40.99 -0.65 51,778 Commercial Real Estate Co 94.00 -1.05 320 Ooredoo Qpsc 84.50 2.66 49,792 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 8.00 -0.12 104,654 Sultan Center Food Products 0.00 0.00 - National International Co 69.70 0.00 100 Mazaya Qatar Real Estate Dev 6.55 -2.53 96,413 Kuwait Foundry Co Sak 276.00 7.39 50 Taameer Real Estate Invest C 29.20 -2.67 478,450 UAE Mesaieed Petrochemical Holdi 10.91 -1.36 150,975 Kuwait Financial Centre Sak 101.00 0.00 22,000 Gulf Cement Co 80.60 0.12 8,561 Al Meera Consumer Goods Co 132.20 -0.60 8,825 Ajial Real Estate Entmt 175.00 0.00 7,240 Heavy Engineering And Ship B 208.00 0.00 10 Company Name Lt Price % Chg Volume Medicare Group 45.00 -6.29 61,683 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 57.97 0.00 - Kuwait Finance & Investment 45.40 -0.22 5,750 National Real Estate Co 120.00 -0.83 182,000 Waha Capital Pjsc 1.76 0.00 135,416 Masraf Al Rayan 34.49 0.26 480,172 National Industries Co Ksc 186.00 1.09 58,708 Al Safat Energy Holding Comp 35.80 -0.56 2,000 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 12.00 -0.41 3,000 Kuwait Real Estate Holding C 34.00 0.00 50 Kuwait National Cinema Co 1,480.00 0.00 252 United Arab Bank Pjsc 1.97 0.00 - Industries Qatar 96.00 2.11 136,775 Securities House/The 48.70 -1.62 198,501 Danah Alsafat Foodstuff Co 68.00 -1.16 17,206 Union National Bank/Abu Dhab 3.98 -1.24 1,192,777 Islamic Holding Group 25.59 -0.08 1,207 Boubyan Petrochemicals Co 639.00 0.16 486,981 Independent Petroleum Group 405.00 0.00 5 Union Insurance Co 1.80 0.00 - Investment Holding Group 5.27 -2.41 499,017 Al Ahli Bank Of Kuwait 309.00 2.32 128,560 Kuwait Real Estate Co Ksc 57.30 -1.88 161,501 Union Cement Co 1.26 0.00 - Gulf Warehousing Company 38.13 -0.99 7,000 Ahli United Bank (Almutahed) 363.00 0.00 127,321 Salhia Real Estate Co Ksc 355.00 0.00 15,800 Umm Al Qaiwain Cement Indust 1.04 0.00 - Gulf International Services 14.30 -3.51 143,432 National Bank Of Kuwait 740.00 0.14 1,911,803 Gulf Cable & Electrical Ind 428.00 1.18 49,765 Sharjah Islamic Bank 1.36 0.00 115,000 Ezdan Holding Group 6.85 -6.04 593,541 Commercial Bank Of Kuwait 400.00 0.00 155,147 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 - Doha Insurance Co 13.60 0.00 - Kuwait International Bank 224.00 -1.32 472,530 Kuwait Finance House 549.00 0.00 2,805,906 Sharjah Group 1.20 0.00 - Doha Bank Qpsc 26.95 -0.19 76,499 Gulf Bank 243.00 0.00 432,020 Gulf North Africa Holding Co 37.00 0.00 295,010 Sharjah Cement & Indus Devel 1.05 0.00 - Dlala Holding 15.49 0.00 278,927 Al-Massaleh Real Estate Co 37.00 -5.13 5,133 Hilal Cement Co 170.00 0.00 120,000 Ras Al-Khaimah National Insu 3.69 0.00 - Commercial Bank Pqsc 26.85 2.29 87,038 Al Arabiya Real Estate Co 32.60 1.88 757,026 Osoul Investment Kscc 58.00 -1.69 30,000 Ras Al Khaimah White Cement 1.05 0.00 - Barwa Real Estate Co 28.60 3.44 526,913 Kuwait Remal Real Estate Co 56.90 0.00 31,030 Gulf Insurance Group Ksc 670.00 0.00 184 Ras Al Khaimah Ceramics 2.51 -1.57 142,500 Al Khaleej Takaful Group 11.19 3.52 136 Alkout Industrial Projects C 590.00 0.00 5,735 Kuwait Food Co (Americana) 1,699.00 1.13 5 Ras Al Khaimah Cement Co Psc 0.67 3.08 326,000 Aamal Co 6.14 -2.23 42,187 A’ayan Real Estate Co Sak 79.90 0.00 10,000 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.40 0.00 - Investors Holding Group Co.K 17.50 -1.13 2,135,238 Aayan Leasing & Investment 38.80 -2.27 1,617,197 Rak Properties 0.69 0.00 2,699,405 Al-Mazaya Holding Co 109.00 -1.80 317,830 Alrai Media Group Co Ksc 110.00 4.76 1,900 Ooredoo Qpsc 80.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 24.70 -5.00 503,338 National Investments Co 100.00 -0.99 1,274,883 Oman & Emirates Inv(Emir)50% 0.53 0.00 - Gulf Petroleum Investment 29.30 0.00 94,504 Commercial Facilities Co 162.00 -0.61 47,500 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 14.58 Company Name Lt Price % Chg Volume Mabanee Co Sakc 723.00 0.42 256,722 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.55 10,000 City Group 0.00 0.00 - Afaq Educational Services Co 121.00 0.00 1 National Marine Dredging Co 3.50 0.00 - United Wire Factories Compan 14.93 -1.45 330,622 Inovest Co Bsc 96.00 1.37 353,878 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.51 0.00 - Etihad Etisalat Co 13.39 -1.90 1,152,347 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 0.00 0.00 - National Corp Tourism & Hote 2.14 -4.89 500,000 Dar Al Arkan Real Estate Dev 7.29 -10.00 84,879,737 Al-Deera Holding Co 29.40 0.00 348,928 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.94 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.75 -1.04 62,608 Rabigh Refining And Petroche 13.67 -0.65 926,729 Mena Real Estate Co 0.00 0.00 - National Bank Of Fujairah 4.60 0.00 - Banque Saudi Fransi 30.80 2.02 793,088 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 21.04 -1.68 166,928 Amar Finance & Leasing Co 30.50 -19.74 100 OMAN Methaq Takaful Insurance 0.79 2.60 522,809 Manazel Real Estate Pjsc 0.51 0.00 778,899 Mediterranean & Gulf Insuran 30.12 -2.84 105,392 United Projects For Aviation 670.00 0.00 3 Company Name Lt Price % Chg Volume Saudi British Bank 26.00 0.39 504,579 National Consumer Holding Co 0.00 0.00 - Invest Bank 2.50 0.00 1,344 Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 35.00 0.00 600 Voltamp Energy Saog 0.55 0.00 2,554 Intl Fish Farming Co Pjsc 1.41 -0.70 231,111 Red Sea International Co 18.26 -5.09 755,266 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.85 0.00 - Takween Advanced Industries 9.32 -0.21 332,302 Equipment Holding Co K.S.C.C 34.70 1.76 140,650 United Power Co Saog 3.90 0.00 - Gulf Pharmaceutical Ind Psc 2.25 0.00 - Sabb Takaful 22.99 -1.03 52,464 Nafais Holding 580.00 0.00 41 United Finance Co 0.12 0.00 - Gulf Medical Projects 2.20 0.00 - Saudi Arabian Fertilizer Co 58.20 0.83 211,263 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 0.96 0.00 - National Gypsum 11.40 -0.52 164,921 Arkan Al Kuwait Real Estate 85.40 0.00 3,300 Takaful Oman 0.17 0.00 - Fujairah Cement Industries 0.96 0.00 - Saudi Ceramic Co 22.27 -0.76 187,493 Gfh Financial Group Bsc 134.00 3.08 537,033 Taageer Finance 0.11 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 28.20 -1.64 210,497 Energy House Holding Co Kscp 29.60 6.47 12,600 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 4.70 0.00 - Saudi Pharmaceutical Industr 28.64 -1.00 54,884 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.16 0.00 110 First Gulf Bank 0.00 0.00 - Thimar 28.59 -2.52 135,683 Kuwait Co For Process Plant 159.00 6.00 50 Sohar Poultry 0.21 0.00 - Finance House 1.83 -0.54 20,396 National Industrialization C 14.57 0.48 362,226 Al Maidan Dental Clinic Co K 1,220.00 0.00 225,410 Smn Power Holding Saog 0.69 0.00 - Eshraq Properties Co Pjsc 0.73 1.39 7,283,368 Saudi Transport And Investme 0.00 0.00 - National Shooting Company 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 16.60 -1.19 1,568,801 Saudi Electricity Co 24.00 0.25 1,224,847 Al-Themar Real International 100.00 0.00 638,493 Shell Oman Marketing 1.80 0.00 30 Emirates Insurance Co. (Psc) 6.00 0.00 - Saudi Arabia Refineries Co 30.07 -1.38 121,665 Al-Ahleia Insurance Co Sakp 400.00 0.00 17,459 Sharqiyah Desalination Co Sa 3.96 0.00 - Emirates Driving Company 7.75 0.00 - Arriyadh Development Company 15.97 -0.31 570,320 Wethaq Takaful Insurance Co 35.10 0.00 19,880 Sembcorp Salalah Power & Wat 0.23 0.00 - Dana Gas 0.72 -1.37 5,327,931 Al-Baha Development & Invest 22.79 -3.10 237,079 Salbookh Trading Co Kscp 53.80 0.00 100 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 0.88 0.00 - Saudi Research And Marketing 52.83 -1.22 118,415 Aqar Real Estate Investments 75.00 0.00 505 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.19 -3.25 160,000 Aldrees Petroleum And Transp 25.13 0.12 618,775 Hayat Communications 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.89 0.00 - Saudi Vitrified Clay Pipe Co 47.03 9.37 273,170 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.66 0.00 631,000 Jarir Marketing Co 142.10 -0.04 41,316 Soor Fuel Marketing Co Ksc 114.00 0.88 47,924 Renaissance Services Saog 0.24 -2.44 97,976 Alkhaleej Investment 3.11 0.00 - Arab National Bank 24.75 0.20 498,276 Alargan International Real 158.00 0.00 1,000 Raysut Cement Co 0.86 0.00 - Aldar Properties Pjsc 2.22 0.00 3,059,254 Yanbu National Petrochemical 55.19 -2.28 270,869 Burgan Co For Well Drilling 51.00 0.00 1,695 Port Service Corporation 0.18 -1.11 14,380 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 33.74 -0.18 72,185 Kuwait Resorts Co Kscc 78.90 12.71 100 Phoenix Power Co Saoc 0.13 0.00 45,520 Al Khazna Insurance Co 0.30 0.00 - Middle East Specialized Cabl 8.34 5.17 3,049,733 Oula Fuel Marketing Co 113.00 -1.74 35,977 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 18.73 -1.47 53,162 Palms Agro Production Co 75.00 0.00 502 Ooredoo 0.54 0.00 34,100 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 22.23 -1.42 123,600 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.46 0.00 - Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 18.19 -1.73 117,440 Mubarrad Transport Co 72.20 0.28 25,000 Oman United Insurance Co 0.35 0.00 - Al Ain Ahlia Ins. Co. 40.85 0.00 - Arabia Insurance Cooperative 16.94 1.19 267,491 Al Mowasat Health Care Co 0.00 0.00 - Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 5.15 0.98 1,026,604 Saudi Chemical Company 30.29 0.30 53,758 Shuaiba Industrial Co 270.00 8.00 200 Oman Telecommunications Co 1.27 -1.56 41,348 Abu Dhabi Ship Building Co 2.33 0.00 - Fawaz Abdulaziz Alhokair & C 28.96 -4.96 351,557 Aan Digital Services Co 0.00 0.00 - Oman Refreshment Co 1.89 0.00 - Abu Dhabi Natl Co For Buildi 0.42 0.00 - Bupa Arabia For Cooperative 101.01 -2.67 48,409 First Takaful Insurance Co 63.00 0.00 9,503 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 5.00 0.00 - Wafa Insurance 19.10 -1.04 217,885 Kuwaiti Syrian Holding Co 31.40 1.29 150,200 Oman Orix Leasing Co. 0.17 0.00 - Abu Dhabi National Insurance 3.60 0.00 - Jabal Omar Development Co 63.86 1.66 476,244 National Cleaning Company 52.00 0.00 155,000 Oman Oil Marketing Company 1.59 0.00 - Abu Dhabi National Hotels 2.90 5.45 100 Saudi Basic Industries Corp 99.69 0.19 2,911,153 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.20 0.00 - Abu Dhabi National Energy Co 0.65 8.33 1,363,840 Saudi Kayan Petrochemical Co 8.97 -0.88 5,133,268 United Real Estate Company 78.00 4.70 30,798 Oman Investment & Finance 0.14 -0.71 270,666 Abu Dhabi Islamic Bank 3.70 -0.54 908,072 Etihad Atheeb Telecommunicat 6.05 -1.47 328,020 Agility 777.00 -1.02 530,463 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 92.61 -1.92 123,717 Kuwait & Middle East Fin Inv 24.00 0.00 5,100 Oman Hotels & Tourism Co 0.44 0.00 - National Petrochemical Co 16.56 -0.96 313,392 Fujairah Cement Industries 74.50 0.00 400,414 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 15.57 -1.70 97,875 Livestock Transport & Tradng 246.00 0.00 73 Oman Flour Mills 0.89 0.00 - BAHRAIN Gulf General Cooperative Ins 15.10 -3.21 146,906 International Resorts Co 29.40 0.00 80,100 Oman Fisheries Co 0.13 1.60 1,615,960 Basic Chemical Industries 18.78 0.59 141,854 National Industries Grp Hold 142.00 -0.70 646,726 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -2.78 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 15.03 18,201 0.00 - Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance -1.49 Warba Insurance Co 3.45 Oman Education & Training In 0.16 0.00 5 29.67 176,859 60.00 10,000 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -1.33 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 162.80 663 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.09 First Dubai Real Estate Deve 0.00 Oman Chlorine 0.44 0.00 - 43.00 9,922 42.10 95,809 United Gulf Bank 0.00 0.00 - Maadaniyah -2.88 Al Arabi Group Holding Co 0.00 Oman Ceramic Company 0.42 0.00 - 19.24 217,432 84.00 6 Trafco Group Bsc 0.00 0.00 - Yamama Cement Co -0.31 Kuwait Hotels Sak 0.00 Oman Cement Co 0.41 0.00 - 16.14 105,899 175.00 5,300 Takaful International Co 0.10 0.00 39,087 Jazan Development Co 0.59 Mobile Telecommunications Co 0.66 Oman Cables Industry 1.23 0.00 - 18.60 314,681 460.00 1,674,400 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.93 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 24.42 75,250 0.00 - Seef Properties 0.21 0.00 115,000 Alujain Corporation (Alco) -1.83 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.08 0.00 2,028 19.83 703,017 400.00 5 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -3.45 Al Mudon Intl Real Estate Co 0.00 Natl Aluminium Products 0.17 0.00 - 12.02 1,079,371 33.00 6,900 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -2.54 Kuwait Cement Co Ksc 0.00 National Securities 0.04 0.00 - 12.28 110,313 456.00 10,987 National Bank Of Bahrain Bsc 0.63 0.00 11,859 Qassim Cement/The 0.36 Sharjah Cement & Indus Devel 9.41 National Real Estate Develop 5.00 0.00 - 39.14 45,993 93.00 158,900 Nass Corp Bsc 0.13 0.00 200,000 Saudi Advanced Industries -0.83 Kuwait Portland Cement Co 5.27 National Pharmaceutical 0.11 0.00 - 11.91 205,139 959.00 10 Khaleeji Commercial Bank 0.10 0.00 29,412 Kingdom Holding Co -1.58 Educational Holding Group 0.00 National Mineral Water 0.05 0.00 - 8.70 123,588 309.00 11,000 Ithmaar Holding Bsc 0.10 0.00 1,600,000 Saudi Arabian Amiantit Co 0.00 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 6.52 3,009,074 0.00 - Investcorp Bank -$Us 8.25 0.00 45,000 Al Jouf Agriculture Developm -2.16 Asiya Capital Investments Co 0.00 National Gas Co 0.29 0.00 - 23.60 185,324 37.60 61,720 Inovest Co Bsc 0.32 0.00 41,154 Saudi Industrial Development -1.11 Kuwait Investment Co -2.68 National Finance Co 0.14 0.00 - 8.91 271,636 109.00 1,160,500 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.60 National Detergent Co Saog 0.65 0.00 - 0.00 - 317.00 273,483 Gulf Hotel Group B.S.C 0.50 0.00 30,952 Riyad Bank 0.41 Kuwait Projects Co Holdings -0.33 National Biscuit Industries 3.75 0.00 - 12.16 1,395,805 299.00 97,000 Gfh Financial Group Bsc 0.44 2.33 4,283,643 The National Agriculture Dev 0.30 Al Madina For Finance And In -3.80 National Bank Of Oman Saog 0.20 0.00 - 30.22 212,768 38.00 403,600 Esterad Investment Co B.S.C. 0.00 0.00 - Halwani Bros Co 1.10 Kuwait Insurance Co -3.17 Muscat Thread Mills Co 0.08 0.00 - 44.13 38,028 275.00 1,000 Delmon Poultry Co 0.29 0.00 6,300 Arabian Pipes Co -2.53 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.00 0.00 - 10.40 637,407 78.90 30 Bmmi Bsc 0.76 0.00 494,418 Eastern Province Cement Co -0.57 Intl Financial Advisors -1.30 Muscat Gases Company Saog 0.56 0.00 - 22.62 15,959 30.30 578,905 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -1.21 Muscat Finance 0.11 0.00 3,800 0.00 - 40.70 2,002,782 Bbk Bsc 0.42 -1.41 20,000 Filing & Packing Materials M -1.42 Al Mal In 17.65 Majan Glass Company 0.18 0.00 - 31.99 39,555 vestment Company 30.00 5,951,075 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -2.01 Majan College 0.47 2.17 14,949 10.81 - Bayan Investment Co Kscc 39.00 260,183 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public -2.47 0.90 Hsbc Bank Oman 0.12 0.00 - 38.66 188,941 Egypt Kuwait Holding Co Sae 223.00 2,100 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The -0.14 0.29 Hotels Management Co Interna 1.25 0.00 - 14.56 108,250 Coast Investment Development 34.00 599,500 Bahrain Telecom Co 0.20 -0.99 449,103 Astra Industrial Group -1.67 -2.05 Gulf Stone 0.12 0.00 - 15.29 184,736 Privatization Holding Compan 52.50 177,136 Bahrain Ship Repair & Engin 1.45 0.00 2,886 Saudi Public Transport Co 0.81 0.00 Gulf Plastic Industries Co 0.00 0.00 - 13.67 300,703 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Taiba Holding Co -1.35 0.00 Gulf Mushroom Company 0.31 0.00 - 34.38 182,860 Injazzat Real State Company 82.00 10,000 Bahrain Kuwait Insurance 0.49 0.00 4,557 Saudi Industrial Export Co -9.96 18.42 Gulf Investments Services 0.08 -2.44 66,300 13.74 2,035,173 Kuwait Cable Vision Sak 27.00 50 Bahrain Islamic Bank 0.14 0.00 79,685 Saudi Real Estate Co -1.99 14.06 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 18.71 37,680 Sanam Real Estate Co Kscc 36.50 7,837 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -2.20 4.18 Gulf International Chemicals 0.21 0.97 15,000 124.40 45,941 Ithmaar Holding Bsc 29.90 1,305,436 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.52 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 28.55 288,585 Aviation Lease And Finance C 368.00 62,130 Bahrain Duty Free Complex 0.76 -0.65 15,000 Methanol Chemicals Co 0.00 0.00 Global Fin Investment 0.16 0.00 - 7.31 4,126,520 Arzan Financial Group For Fi 32.00 193,128 Bahrain Commercial Facilitie 0.69 0.00 10,000 Ace Arabia Cooperative Insur 1.67 -15.27 Galfar Engineering&Contract 0.08 1.28 3,502,478 23.09 699,233 Ajwan Gulf Real Estate Co 46.60 17,896,710 Bahrain Cinema Co 1.20 -0.83 55,000 Mobile Telecommunications Co -0.49 -0.66 Galfar Engineering -Prefer 0.39 0.00 - 6.14 3,201,531 Kuwait Business Town Real Es 45.30 140,204 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -1.60 0.00 Financial Services Co. 0.14 0.00 - 17.19 291,647 Future Kid Entertainment And 110.00 720 Arab Insurance Group(Bsc)-$ 0.48 0.00 11,000 Axa Cooperative Insurance -3.00 -3.85 Financial Corp/The 0.10 0.00 - 18.44 40,926 Specialities Group Holding C 75.00 71,400 Arab Banking Corp Bsc-$Us 0.28 -1.75 550,000 Alsorayai Group -0.65 -0.47 Dhofar University 0.00 0.00 - 7.61 1,731,409 Abyaar Real Eastate Developm 21.20 3,346,039 Aluminium Bahrain Bsc 0.61 0.00 63,147 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.35 0.00 20,000 Bank Albilad -0.21 0.00 Dhofar Poultry 0.18 0.00 - 18.64 288,266 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.10 2.15 4,605,586 Al-Hassan G.I. Shaker Co -3.05 0.77 Dhofar Intl Development 0.32 0.00 - 10.16 382,449 Kgl Logistics Company Kscc 52.20 1,604,865 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -0.84 0.21 Dhofar Insurance 0.20 0.00 - 26.09 76,390 Combined Group Contracting 476.00 23,000 Ahli United Bank B.S.C 0.67 1.52 49,709 Abdullah Al Othaim Markets 120.20 0.17 13,526 Jiyad Holding Co Ksc 0.00 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 8.07 -0.98 304,492 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Friday, November 17, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 23,454.52 +183.24 Apple Inc 170.99 1.13 7,551,317 S&P 500 Index 2,583.94 +19.32 Microsoft Corp 83.00 0.03 4,845,783 Nasdaq Composite Index 6,786.86 +80.65 Exxon Mobil Corp 80.45 -0.94 3,378,463 S&P/Tsx Composite Index 15,940.44 +61.96 Johnson & Johnson 139.14 0.03 690,885 Mexico Bolsa Index 47,879.46 +188.66 General Electric Co 18.27 0.08 33,272,803 Brazil Bovespa Stock Idx 72,453.12 +1,626.53 Jpmorgan Chase & Co 98.80 0.62 3,178,581 Ftse 100 Index 7,389.18 +16.57 Procter & Gamble Co/The 89.42 1.34 2,722,187 Cac 40 Index 5,338.35 +37.10 Wal-Mart Stores Inc 97.44 8.47 15,457,337 Dax Index 13,043.70 +67.33 Verizon Communications Inc 44.36 0.57 3,639,915 Ibex 35 Tr 10,095.80 +81.90 Pfizer Inc 35.37 0.01 2,733,352 Nikkei 225 22,351.12 +322.80 Visa Inc-Class A Shares 111.23 0.89 1,674,442 Japan Topix 1,761.71 +17.70 Chevron Corp 114.83 -1.39 1,716,596 Hang Seng Index 29,018.76 +167.07 Coca-Cola Co/The 46.81 0.00 2,518,776 All Ordinaries Indx 6,023.54 +11.22 Intel Corp 45.73 0.59 4,039,040 Nzx All Index 1,446.44 +6.08 Merck & Co. Inc. 55.05 0.46 2,629,626 Bse Sensex 30 Index 33,106.82 +346.38 Cisco Systems Inc 36.30 6.41 25,591,990 Nse S&P Cnx Nifty Index 10,214.75 +96.70 Home Depot Inc 167.45 1.20 1,267,589 Straits Times Index 3,341.30 -27.40 Intl Business Machines Corp 148.85 1.19 1,584,419 Karachi All Share Index 29,152.03 +95.85 Walt Disney Co/The 103.69 0.00 1,554,878 Jakarta Composite Index 6,037.91 +65.60 Unitedhealth Group Inc 210.90 0.50 400,585 3M Co 229.12 0.76 264,288 Mcdonald’s Corp 168.43 0.66 610,261 Nike Inc -Cl B 56.90 0.48 1,459,180 TOKYO United Technologies Corp 117.94 0.31 541,689 Boeing Co/The 264.38 0.58 606,199 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 240.13 1.06 790,620 Rakuten Inc 1,127.00 -0.22 5,086,500 American Express Co 93.39 0.14 594,847 Kyocera Corp 8,022.00 1.53 1,160,700 Du Pont (E.I.) De Nemours 0.00 0.00 - Nissan Motor Co Ltd 1,064.50 -0.70 20,232,100 Caterpillar Inc 136.87 2.07 1,112,486 Hitachi Ltd 856.60 0.46 16,291,000 Travelers Cos Inc/The 131.22 -1.86 472,648 Takeda Pharmaceutical Co Ltd 6,196.00 0.18 1,925,300 Jfe Holdings Inc 2,404.00 -0.06 4,178,600 Ana Holdings Inc 4,293.00 0.68 1,429,100 FTSE 100 Mitsubishi Electric Corp 1,868.00 1.99 7,462,100 Sumitomo Mitsui Financial Gr 4,358.00 -0.02 6,567,400 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,660.00 1.10 5,454,500 Fast Retailing Co Ltd 39,790.00 2.21 869,300 Wpp Plc 1,264.00 0.88 3,532,838 Ms&Ad Insurance Group Holdin 3,722.00 0.57 1,643,100 Worldpay Group Plc 409.00 0.96 4,691,734 Kubota Corp 1,947.50 -0.36 4,758,800 Wolseley Plc 0.00 0.00 - Seven & I Holdings Co Ltd 4,559.00 1.51 2,743,000 Wm Morrison Supermarkets 210.80 1.84 3,324,940 Brokers working at the Frankfurt Stock Exchange. The DAX 30 finished 0.6% up at 13,047.22 points yesterday. Inpex Corp 1,257.50 -1.91 7,164,500 Whitbread Plc 3,555.00 0.71 197,363 Resona Holdings Inc 589.30 0.22 9,249,400 Vodafone Group Plc 228.85 0.22 34,445,582 Asahi Kasei Corp 1,425.50 0.49 3,741,100 United Utilities Group Plc 834.50 0.06 828,658 Kirin Holdings Co Ltd 2,664.50 2.01 2,551,000 Unilever Plc 4,228.50 0.43 1,312,478 Marubeni Corp 722.10 -1.00 10,464,700 Tui Ag-Di 1,319.00 0.84 581,028 Mitsubishi Ufj Financial Gro 738.70 0.34 74,766,700 Travis Perkins Plc 1,473.00 -0.34 403,402 Mitsubishi Chemical Holdings 1,165.00 1.53 7,672,100 Tesco Plc 184.25 0.33 13,726,859 Fanuc Corp 27,480.00 1.42 1,175,200 Taylor Wimpey Plc 194.80 1.46 17,776,958 World stock markets up on Daito Trust Construct Co Ltd 20,470.00 -0.51 346,500 Standard Life Plc 0.00 0.00 - Otsuka Holdings Co Ltd 4,894.00 -0.37 2,487,700 Standard Chartered Plc 720.30 -0.43 2,269,933 Oriental Land Co Ltd 9,490.00 1.14 796,400 St James’s Place Plc 1,142.00 0.62 668,517 Sekisui House Ltd 2,096.00 0.91 2,497,500 Sse Plc 1,373.00 1.33 2,378,109 Secom Co Ltd 8,331.00 0.97 648,900 Smith & Nephew Plc 1,347.00 1.66 1,064,482 bargain-hunting, earnings Tokio Marine Holdings Inc 4,739.00 -0.32 2,545,800 Sky Plc 900.00 0.00 6,919,057 Aeon Co Ltd 1,731.50 1.55 2,375,500 Shire Plc 3,752.00 6.27 2,187,487 Mitsui & Co Ltd 1,633.00 -0.31 8,033,000 Severn Trent Plc 2,141.00 0.09 312,372 Nevertheless, Briefi ng.com analyst on buying the dips,” said ETX Capital Kao Corp 7,086.00 2.10 1,337,800 AFP Schroders Plc 3,512.00 1.53 107,295 Patrick O’Hare cautioned that investor analyst, Neil Wilson. Dai-Ichi Life Holdings Inc 2,144.00 1.01 7,019,400 London Sainsbury (J) Plc 229.20 0.92 5,332,327 Mazda Motor Corp 1,517.50 -1.33 7,331,800 conviction remains weak. “Stocks in Europe have recovered Sage Group Plc/The 760.50 0.80 938,333 Komatsu Ltd 3,615.00 -1.34 6,937,700 “The typical pattern of late has fea- ground.” Abi Sab Group Holding Ltd 0.00 0.00 - West Japan Railway Co 7,878.00 0.66 662,200 lobal stock markets rebound- tured weak opens that then give way to While British retail sales rebounded Rsa Insurance Group Plc 613.50 1.40 887,998 Murata Manufacturing Co Ltd 15,955.00 0.38 1,152,500 Royal Mail Plc 393.60 1.18 8,420,573 ed yesterday as investors a steady buy-the-dip bid that makes in October from September, they fell on Kansai Electric Power Co Inc 1,460.00 0.17 2,263,000 Royal Dutch Shell Plc-B Shs 2,385.50 -2.07 3,370,345 snapped up bargains after the things look better by the close,” O’Hare an annual basis for the fi rst time in more Denso Corp 6,446.00 1.59 1,706,500 G Royal Dutch Shell Plc-A Shs 2,343.50 -2.42 4,677,330 recent sell-off, encouraged by solid said. than four years, with Britons’ purchas- Sompo Holdings Inc 4,468.00 0.95 1,189,000 Royal Bank Of Scotland Group 273.50 -0.51 4,305,568 Daiwa House Industry Co Ltd 4,038.00 1.48 2,105,900 quarterly earnings reports on Wall “In that vein, then, we wouldn’t put it ing power weighed down by a combina- Rolls-Royce Holdings Plc 898.50 -0.94 1,449,400 Jxtg Holdings Inc 610.00 -0.38 17,621,500 Street. past this fi ckle market to see a solid open tion of high infl ation and weak earnings Rio Tinto Plc 3,549.50 -0.31 5,356,084 Nippon Steel & Sumitomo Meta 2,557.50 0.45 4,293,600 After Tokyo recovered from a six- today give way to selling on the strength growth. Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,997.00 2.08 1,940,200 Relx Plc 1,744.00 0.93 2,005,332 day losing streak and European indices that makes things look worse by the end “We’ve been waiting for the pay Nippon Telegraph & Telephone 5,817.00 1.80 4,248,000 Reckitt Benckiser Group Plc 6,387.00 0.50 815,412 pushed higher, Wall Street was also in of the day.” squeeze to fi lter through... Ajinomoto Co Inc 2,095.00 2.27 3,788,400 Randgold Resources Ltd 7,025.00 -0.28 271,176 positive territory, buoyed by favourable At the end of the session in Europe, the and at fi rst glance today’s numbers Mitsui Fudosan Co Ltd 2,577.00 1.20 3,644,300 Prudential Plc 1,875.00 0.81 9,679,929 earnings reports from the likes of Wal- Frankfurt and Paris stock markets were aren’t good news on that front,” said Ono Pharmaceutical Co Ltd 2,464.50 0.82 2,343,100 Provident Financial Plc 898.50 3.39 614,739 Daikin Industries Ltd 12,875.00 1.86 997,700 Mart and Cisco, traders said. each up by more than half a percent. Hargreaves Lansdown economist, Ben Persimmon Plc 2,672.00 0.11 888,233 Bank Of Yokohama Ltd/The 0.00 0.00 - The day before, global equity markets The gains in London were more mod- Brettell. Pearson Plc 694.50 0.14 1,816,810 Toray Industries Inc 1,131.00 0.98 4,507,300 had dropped, hit by sliding oil prices est, dampened by lacklustre UK retail In commodities trading, oil prices Paddy Power Betfair Plc 8,740.00 3.86 110,683 Astellas Pharma Inc 1,469.00 0.75 7,569,100 Old Mutual Plc 188.90 0.11 4,377,966 and doubts over US President Donald sales data. dipped further after plummeting this Bridgestone Corp 4,906.00 0.57 3,731,200 Next Plc 4,314.00 0.87 253,260 Trump’s plans for tax cuts, as well as London’s FTSE 100 closed 0.2% up week when energy watchdog the IEA cut Sony Corp 5,177.00 1.61 11,622,600 National Grid Plc 888.00 -0.22 11,420,657 profi t-taking as investors worried that at 7,386.94 points, Frankfurt’s DAX 30 its forecast for crude consumption for Hoya Corp 5,874.00 -0.22 2,177,500 Mondi Plc 1,744.00 1.34 1,261,436 stocks were overvalued. fi nished 0.6% higher at 13,047.22 points, next year. Sumitomo Mitsui Trust Holdin 4,068.00 -0.32 2,173,100 Merlin Entertainment 378.20 0.32 1,878,284 Japan Tobacco Inc 3,736.00 0.84 4,318,700 “Equities are benefi ting from a return Paris’ CAC 40 ended 0.7% up at 5,336.39 That has been compounded by offi cial Mediclinic International Plc 584.50 -1.68 3,220,440 Osaka Gas Co Ltd 2,140.00 1.09 1,290,600 of risk appetite following a two-week points, while the EURO STOXX 50 data pointing to a rise in US stockpiles Marks & Spencer Group Plc 304.00 -1.46 6,085,821 Sumitomo Electric Industries 1,867.50 0.65 2,450,100 sell-off ,” said Accendo Markets analyst, gained 0.5% at 3,564.80 points. and the possibility that an Opec-Russia London Stock Exchange Group 3,780.00 1.12 145,664 Daiwa Securities Group Inc 699.60 0.03 9,149,000 Lloyds Banking Group Plc 66.09 -0.24 49,302,841 Mike van Dulken. “European investors are still focused output cut may not be extended. Softbank Group Corp 9,546.00 2.21 7,447,700 Legal & General Group Plc 267.30 0.56 4,682,587 Mizuho Financial Group Inc 198.00 0.76 156,355,200 Land Securities Group Plc 936.00 1.46 2,203,220 Nomura Holdings Inc 643.70 0.88 23,528,300 Kingfisher Plc 300.80 -0.07 2,496,116 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,662.50 2.54 2,343,400 Johnson Matthey Plc 3,304.00 0.49 381,836 Subaru Corp 3,622.00 0.78 5,037,600 Itv Plc 150.50 -0.07 9,497,597 Ntt Docomo Inc 2,798.00 0.36 5,824,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 203.90 0.34 2,889,521 Sumitomo Realty & Developmen 3,777.00 0.59 2,659,000 Intl Consolidated Airline-Di 600.50 1.95 9,136,245 Aluminum Corp Of China Ltd-H 5.42 -4.91 50,756,000 Hong Kong & China Gas 14.78 -0.27 7,434,442 Sumitomo Metal Mining Co Ltd 4,435.00 -1.25 3,747,400 Intertek Group Plc 5,320.00 0.28 144,156 Bank Of East Asia Ltd 33.15 -0.15 833,886 Hong Kong Exchanges & Clear 233.20 1.22 5,351,355 Orix Corp 1,873.50 -0.21 5,866,900 Intercontinental Hotels Grou 4,271.00 1.45 299,461 Bank Of China Ltd-H 3.77 -0.26 280,604,940 Hsbc Holdings Plc 75.35 0.33 8,504,207 Asahi Group Holdings Ltd 5,360.00 0.58 1,317,400 Inmarsat Plc 498.10 0.42 2,118,256 Bank Of Communications Co-H 5.78 0.17 28,406,734 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 66,990.00 1.65 348,300 Informa Plc 737.00 -0.07 1,008,619 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 6.06 0.33 214,640,240 Nidec Corp 15,870.00 1.57 1,265,100 Imperial Brands Plc 3,067.50 -0.44 809,831 Boc Hong Kong Holdings Ltd 37.25 -0.27 6,108,903 Li & Fung Ltd 3.65 1.39 15,238,510 Isuzu Motors Ltd 1,700.50 0.47 3,338,900 Hsbc Holdings Plc 732.80 -0.37 12,228,271 Cathay Pacific Airways 11.80 -1.50 6,979,882 Mtr Corp 45.20 0.11 2,360,937 Unicharm Corp 2,837.50 0.64 1,896,400 Hargreaves Lansdown Plc 1,583.00 2.13 367,507 Ck Hutchison Holdings Ltd 98.05 0.05 4,581,211 New World Development 11.48 -0.35 9,924,848 Shin-Etsu Chemical Co Ltd 12,385.00 1.23 1,306,800 Hammerson Plc 534.00 1.23 2,438,849 China Coal Energy Co-H 3.53 0.57 19,291,136 Petrochina Co Ltd-H 5.24 -0.19 115,020,295 Smc Corp 46,420.00 3.36 225,200 Glencore Plc 352.65 0.79 24,210,198 China Construction Bank-H 6.69 0.15 146,026,146 Ping An Insurance Group Co-H 77.85 5.56 68,565,463 Mitsubishi Corp 2,745.00 0.00 5,212,300 Glaxosmithkline Plc 1,315.50 0.61 13,464,702 China Life Insurance Co-H 26.90 2.48 62,091,561 Power Assets Holdings Ltd 66.50 -0.75 2,080,193 Nintendo Co Ltd 44,790.00 3.95 3,966,600 Gkn Plc 296.70 -4.54 32,397,067 China Merchants Port Holding 21.10 -7.25 33,740,482 Sino Land Co 13.84 -1.14 6,030,014 Eisai Co Ltd 6,364.00 2.10 669,800 Fresnillo Plc 1,299.00 -1.96 795,378 China Mobile Ltd 78.10 -0.57 15,310,965 Sun Hung Kai Properties 125.60 -1.41 3,164,160 Sumitomo Corp 1,658.50 -0.12 3,740,800 Experian Plc 1,551.00 -2.08 1,966,944 China Overseas Land & Invest 24.00 -0.41 13,183,994 Swire Pacific Ltd - Cl A 74.25 -0.74 1,805,433 Canon Inc 4,310.00 1.20 5,054,500 Easyjet Plc 1,295.00 3.52 1,225,776 China Petroleum & Chemical-H 5.53 0.36 133,961,441 Tencent Holdings Ltd 391.80 2.30 32,583,706 Japan Airlines Co Ltd 4,023.00 1.49 1,750,100 Dixons Carphone Plc 155.00 3.96 6,029,085 China Resources Beer Holdin 22.25 -0.89 4,072,000 Wharf Holdings Ltd 26.90 -2.18 18,785,210 Direct Line Insurance Group 356.70 -0.28 1,790,962 China Resources Land Ltd 22.25 -0.22 8,188,325 China Resources Power Holdin 15.16 -1.30 5,543,600 Diageo Plc 2,583.50 0.88 1,278,690 SENSEX Dcc Plc 7,170.00 1.06 194,823 China Shenhua Energy Co-H 19.38 -1.82 15,067,451 GCC INDICES Crh Plc 2,663.00 1.02 710,801 China Unicom Hong Kong Ltd 11.64 -0.85 29,219,528 Compass Group Plc 1,620.00 0.56 5,888,810 Company Name Lt Price % Chg Volume Citic Ltd 11.26 0.00 5,519,000 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,465.00 0.74 319,231 Clp Holdings Ltd 79.25 -0.88 2,010,485 Doha Securities Market Zee Entertainment Enterprise 539.35 -0.16 2,920,988 7,825.77 +64.52 Centrica Plc 166.30 0.48 15,240,555 Cnooc Ltd 10.60 0.19 49,007,347 Saudi Tadawul Yes Bank Ltd 301.30 0.12 9,554,495 6,913.46 +1.11 Carnival Plc 4,965.00 0.40 313,089 Cosco Shipping Ports Ltd 7.70 -7.89 15,268,488 Kuwait Stocks Exchange Wipro Ltd 297.65 0.39 1,902,469 6,309.31 +23.75 Capita Plc 479.80 1.83 636,742 Esprit Holdings Ltd 4.10 -0.73 3,968,480 Bahrain Stock Exchage Vedanta Ltd 301.30 1.96 7,092,263 1,269.90 +4.82 Burberry Group Plc 1,735.00 0.87 863,587 Fih Mobile Ltd 2.34 -1.27 6,486,823 Oman Stock Market Ultratech Cement Ltd 4,273.10 -0.78 136,663 5,105.67 -5.74 Bunzl Plc 2,156.00 0.47 1,850,241 Hang Lung Properties Ltd 17.52 0.00 8,331,911 Abudhabi Stock Market Tech Mahindra Ltd 499.90 0.67 1,587,107 4,327.58 -9.51 Bt Group Plc 244.50 -1.07 12,856,878 Hang Seng Bank Ltd 185.70 -0.75 470,809 Dubai Financial Market Tata Steel Ltd 686.35 1.27 2,762,829 3,460.21 -7.35 British Land Co Plc 620.50 4.02 3,821,005 Henderson Land Development 51.65 -1.53 2,380,464 Tata Power Co Ltd 84.80 3.35 10,233,962 British American Tobacco Plc 4,948.00 1.17 1,355,794 Tata Motors Ltd 413.45 1.17 6,742,045 Bp Plc 491.55 -0.70 17,435,652 Tata Consultancy Svcs Ltd 2,746.65 1.53 892,920 Bhp Billiton Plc 1,357.00 -0.70 5,361,935 Sun Pharmaceutical Indus 508.55 0.77 5,780,781 Berkeley Group Holdings/The 3,696.00 1.26 348,338 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 333.40 2.60 23,734,169 Barratt Developments Plc 626.00 0.64 5,229,827 Reliance Industries Ltd 903.85 2.28 7,573,866 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 185.40 1.64 70,472,067 Punjab National Bank 189.60 4.93 24,854,008 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 542.50 0.37 3,668,459 Power Grid Corp Of India Ltd 208.30 0.63 10,225,565 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 760.50 2.63 1,489,116 Oil & Natural Gas Corp Ltd 179.15 0.90 7,752,070 this data.” Aviva Plc 497.80 0.32 2,834,083 Ntpc Ltd 176.45 1.29 8,758,111 Astrazeneca Plc 5,024.00 0.65 1,590,242 Maruti Suzuki India Ltd 8,163.70 0.45 334,081 Associated British Foods Plc 3,094.00 1.24 290,900 Mahindra & Mahindra Ltd 1,413.95 -0.09 907,975 Ashtead Group Plc 1,896.00 0.80 891,390 Lupin Ltd 829.00 0.65 2,183,677 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,219.30 0.81 2,084,662 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 946.00 -0.53 1,213,358 DINAR DINAR Kotak Mahindra Bank Ltd 1,017.45 0.59 1,626,132 Anglo American Plc 1,433.00 -0.31 3,003,210 Itc Ltd 255.10 0.71 10,342,396 Admiral Group Plc 1,876.00 0.86 243,296 Infosys Ltd 988.40 3.85 8,489,542 3I Group Plc 917.50 2.11 1,856,678 Indusind Bank Ltd 1,603.90 0.41 939,162 #N/A 0.00 0.00 - Idea Cellular Ltd 96.00 2.56 10,614,151 Icici Bank Ltd 318.95 1.09 9,803,189 TOKYO Housing Development Finance 1,664.40 0.82 4,241,548 Hindustan Unilever Ltd 1,276.50 0.91 973,248 Hindalco Industries Ltd 254.70 1.13 5,594,800 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,657.00 -0.40 263,335 East Japan Railway Co 10,845.00 0.37 583,900 Hdfc Bank Limited 1,807.70 0.41 1,040,866 Itochu Corp 1,879.50 -0.45 8,068,100 Hcl Technologies Ltd 851.90 0.42 1,139,944 Fujifilm Holdings Corp 4,496.00 0.78 1,667,600 Grasim Industries Ltd 1,160.05 -1.59 1,459,832 Yamato Holdings Co Ltd 2,107.50 -1.03 2,991,000 Gail India Ltd 449.45 0.06 5,168,532 Chubu Electric Power Co Inc 1,419.50 -0.39 2,114,000 Dr. Reddy’s Laboratories 2,333.55 1.01 296,924 Mitsubishi Estate Co Ltd 2,039.00 0.84 3,219,000 Coal India Ltd 268.35 -1.47 3,009,513 Mitsubishi Heavy Industries 4,136.00 -0.29 1,899,500 Cipla Ltd 592.85 -0.13 1,320,905 Toshiba Corp 289.00 0.35 13,555,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 5,224.00 3.30 2,672,400 Bosch Ltd 19,258.45 0.27 15,753 Shionogi & Co Ltd 6,385.00 1.53 1,140,100 Bharti Airtel Ltd 489.90 0.65 10,144,817 Tokyo Gas Co Ltd 2,662.50 -0.52 1,135,000 Bharat Petroleum Corp Ltd 499.35 -1.06 2,734,231 Tokyo Electron Ltd 22,940.00 1.82 1,619,600 Bharat Heavy Electricals 87.75 -0.62 6,783,888 Panasonic Corp 1,678.50 0.18 11,263,500 Bank Of Baroda 182.80 4.34 24,362,352 Fujitsu Ltd 833.70 0.19 10,961,000 Bajaj Auto Ltd 3,208.85 -0.13 166,260 Central Japan Railway Co 20,235.00 0.95 363,400 Axis Bank Ltd 542.60 0.11 5,857,144 T&D Holdings Inc 1,704.00 0.86 2,729,000 Asian Paints Ltd 1,179.55 -0.17 455,767 Toyota Motor Corp 6,962.00 0.03 5,775,400 Ambuja Cements Ltd 275.15 -0.36 2,840,158 Kddi Corp 2,998.00 1.22 6,398,100 Adani Ports And Special Econ 397.20 -2.43 5,494,243 Nitto Denko Corp 11,060.00 0.23 1,137,400 Acc Ltd 1,795.65 1.40 360,720

Gulf Times 10 Friday, November 17, 2017 BUSINESS

Companies turn to war games to spot scarce cybersecurity talent

Bloomberg grounds for companies and government about 3 to 1, according to online recruit- events in the US, such as those run by ing teams might plug one vulnerability to brief the board of the fictional shipping London security agencies. ment site Indeed. It’s this gap that Cyber the US Department of Energy’s National only to see the attackers shift tactics and company on their investigation. “We want to find untapped talent to fill Security Challenge UK, a non-profit organi- Laboratories and the US Department of exploit another one. It also included hacks They also had to present forensic roles in our own operation and in the in- sation set up by the British government Homeland Security. This year’s competi- of industrial systems, such as those that evidence and the competition organisers A major shipping company is under at- dustry as a whole,” said Rob Partridge, BT with support from Corps and universities, tion focused on potential cyberattacks control robot arms and factory equipment. brought in actual trial lawyers, in the wigs tack. With help from a corrupt executive, Group Plc’s head of commercial develop- is supposed to help fill. on the shipping industry largely because Even many cybersecurity experts are and gowns they wear in the UK, to grill the an international hacking syndicate called ment for penetration testing. The group runs a series of online it was held at Trinity House, a Georgian unfamiliar with the software that manages competitors. Scorpius, has penetrated the computer BT is one of a half-dozen companies, games that allow amateur cybersleuths building that houses a 500-year-old char- this kind of equipment, said Kevin Jones, “It’s not just about technical skills,” networks of Fast Freight Ltd. The hack- including Airbus SE, Cisco Systems Inc and white-hat hackers to test their skills. ity empowered by the British government head of cybersecurity architecture and Jones said. “We need people with business ers have taken control of servers and and smaller, specialist cybersecurity firms Those who score well online are invited to to maintain lighthouses and other aides innovation at Airbus. knowledge too, and presentation skills. compromised the systems that control Darktrace Ltd and Check Point Software a series of regional, in-person competi- to maritime navigation, Harrison said. But As Sophia McCall’s team struggled It even reaches into psychology, since Fast Freight’s vessels and its portside Technologies Ltd, that sponsored this tions. The top performers at these events he said ports and shipping were important to repel a group of attackers that had human factors are one of the major vul- machinery. year’s Challenge competition. are then invited to the annual three-day components of critical national infrastruc- compromised five of its six computers, nerabilities in any network.” Jess Williams, The company’s cybersecurity consult- The UK’s National Crime Agency, the masterclass and team-based competi- ture that are increasingly targeted by forcing the group to work on one machine, now a cybersecurity technical consultant ants have 48 hours to uncover the breach Bank of England and law firm 4 Pump tion where they face a realistic scenario hackers. the 19-year old student from Bournemouth at BT, is among those who have found jobs and repulse the attackers before they Court also supported the competition. created by experts from the sponsoring Recently, A P Moller-Maersk, one of University said the competition was the after being talent-spotted at the competi- cripple Fast Freight’s business and cause Partridge also said he hopes the competi- companies. the world’s largest shipping companies, toughest she’s ever participated in. “It’s tion. serious economic damage. tion will help raise the profile of cyberse- About 70% of the finalists wind up posted a third-quarter-loss after having its good but it’s definitely been really chal- She had been studying computer game It sounds like the plot to a blockbuster curity as a profession, encouraging more being hired into cybersecurity jobs within business disrupted by a cyberattack last lenging,” she said. design at De Montfort University in Leices- thriller. But this was the fictional scenario 42 students to pursue a career in the field. 12 months, Nigel Harrison, co-founder and summer. McCall said she normally practices ter, England, in 2015 when on a lark she de- budding computer security experts faced There are about 1mn unfilled cybersecu- acting chief executive off icer of Cyber Previous years’ competition scenarios hacking networks, not defending them cided to try her hand at the online Cyber at the annual UK Cyber Security Challenge rity jobs globally, according to an estimate Security Challenge, said. The challenge were scripted, but this year’s featured a and was finding that playing defence was Security Challenge games. She advanced competition earlier this week in London. from Cisco. And computer security firm began in 2010, amid growing concern live “red team” made up of professional teaching her to think diff erently. all the way through the finals competi- With demand for cybersecurity Symantec Corp forecasts that the number about the cyberwarfare capabilities of network penetration testers from the “It caught me off guard,” she said. “But it tion, where she caught the attention of expertise exploding, but qualified people of positions will grow to 1.5mn by 2019. other countries, including China and Rus- sponsoring companies. is good to be on the flip side and see what BT, which later off ered her a job. This year, in short supply, war-gaming competi- In the UK, advertised cybersecurity sia, Harrison said. That made the war-gaming more real- that is like.” The push for realism also ex- Williams returned to the competition to tions like this have become key recruiting roles exceed interested candidates by It was loosely modelled on similar istic — and more diff icult as the compet- tended to requiring the competing teams help run it.

Adidas edges Nike in World Cup team Drahi faces struggle to sponsorship as Puma falters

Bloomberg regain investors’ trust Frankfurt Bloomberg Paris didas has the early lead in the shirt-spon- sorship battle that will accompany the AWorld Cup in Russia next year. illionaire Patrick Drahi is fac- With qualifi cation for the 32-team quadrennial ing an uphill battle to restore soccer tournament complete, the German compa- Binvestors’ confi dence in Al- ny has secured at least 11 jersey sponsorships, one tice as slowing growth exposes his more than Nike of Beaverton, Oregon. indebted phone giant to a potential While the world’s biggest sporting-goods mak- cash shortage. er had a last-minute addition to its roster after Shares of Altice have plunged Australia beat Honduras on Wednesday to clinch 45% since November 2, when the the next-to-last spot, several prominent Nike- company posted third-quarter sponsored teams — including Chile, the Nether- revenue that missed estimates and lands and the US — failed to qualify. New Zealand, said cost-cutting benefi ts in France another Nike team, Wednesday blew its chance to have been delayed. That intensifi ed upset Peru, which took the fi nal spot. questions about whether Altice can The sponsorship stakes are high, with Nike and manage its massive debt load, with Adidas jointly selling almost $5bn worth of soc- €51bn ($60bn) coming due by 2028. cer gear last year. While 2017 may be a lighter year “Supporting so much debt re- with no World Cup or European championship, quires results and for the moment retailers are starting to stock up on jerseys for next the results are not there,” Andrea year’s global tournament now that the qualifi ca- Tueni, head of sales trading at Saxo tion campaign has ended. Banque France, said in an e-mail. While Adidas has at least one more team than “The difficulties in France are a at the 2014 World Cup in Brazil and Nike has two dark shadow for Altice and need to fewer, the biggest change in sponsorship has hit be a priority for Patrick Drahi. The smaller competitor Puma. lack of visibility and performance Adidas’s crosstown rival in Herzogenaurach, of the group in France, combined Germany, had eight nations in the race in Brazil, with a high level of debt, are caus- but four-time world champion Italy’s failure to ing great distrust.” win a spot means only Switzerland and Uruguay Following the stock decline, will represent the leaping-cat logo at the 2018 Drahi reasserted himself at the event. helm of the company he founded Nike, Adidas and Puma confi rmed their spon- as part of a broad reshuffle of top sorships to Bloomberg News. While soccer federa- management. Investors are ex- tion FIFA shows Iranian players in Adidas shirts on pecting Drahi to focus on improv- its website, the company said yesterday it doesn’t ing the business’s fundamentals have a World Cup deal with the nation’s team. after years of debt-fuelled expan- New Balance Athletics and Iconix Brand sion in Europe and the US. Group’s Umbro each sponsor two teams partici- “I never wanted to buy Altice pating, while Errea Sport, Hummel International shares because I always considered Sport & Leisure, Uhlsport and Romai Sports have that this group was living beyond its one each, according to company websites and me- means, with sizeable and expensive dia reports. Not all have confi rmed that their deals debt that can only be reimbursed extend through the tournament. with a very optimistic customer gains Adidas in Brazil secured a double win, as both and high revenue per subscriber,” fi nalists played in its uniforms. Mirroring recent said Christian Jimenez, chairman of sales successes and market-share wins, the com- Diamant Bleu Gestion, in an e-mail. Patrick Drahi, chairman of Altice, greets an attendee ahead of a news conference in Paris. Investors are expecting Drahi to focus on improving the pany has also had a run of luck in soccer this year. Drahi “should have understood that a business’s fundamentals after years of debt-fuelled expansion in Europe and the US. In four of Europe’s fi ve largest leagues, Adidas- company exists only by its customers. outfi tted teams won the national titles this year, The right strategy is one that places In addition, growth is negative at decline until late 2019 as the com- SFR executives may need to pri- sive investments in content (un- and Adidas also saw teams in its jerseys lift the the customer at the centre.” SFR this year. The unit lost 75,000 pany faces issues such as rising con- oritise fi xing the balance sheet to proven return), in fi bre (unneces- trophies in the two pan-European competitions, Altice declined to comment. fi xed-line subscribers in the third tent costs and intense competition, win back investors, Raymond James sary in our view), and M&A action the Champions League and the Europa League. To squeeze out costs, Drahi plans quarter as it battles tough compe- analysts at Morgan Stanley said in a analysts led by Stephane Beyazian is more critical to regain investors’ Nike still has a potent roster for Russia, includ- to cut 5,000 jobs by mid-2019 at tition on prices, particularly from note on Tuesday. The analysts said said in a November 10 note. confi dence in the context of rising ing Brazil — the only team to win the tournament the French unit SFR Group, bought Bouygues. And after years of un- they would turn more positive on “Management might consider interest rates.” fi ve times — and Portugal, ranked third in the from Vivendi in 2014. There was derinvestment in its network, SFR Altice if there was evidence that it that the priority is to stabilise Altice shares declined 13% in world. The team around superstar Cristiano Ro- uncertainty about how many would has yet to reap the benefi ts of recent can de-lever its balance sheet and SFR’s customer base as soon as Amsterdam on Tuesday to €8.90, naldo last year won the European championship, sign up for the voluntary plan, and spending to improve the speeds and French growth trends would im- possible, maybe accelerating the its lowest since April 2014. That ending Adidas’s winning streak in that competi- Altice said this month it will only quality that data-hungry consum- prove. Potential French telecom fibre and TV strategies,” Beyazian gave the company a market value of tion that lasted from 1996 to 2012, according to realise about one-third of its tar- ers are increasingly seeking. market consolidation would also said. €14.3bn, compared with a net debt Nielsen Sports. geted €400mn in savings this year. Altice’s French earnings are set to help, they said. “We believe that stopping mas- of €49.6bn. Gulf Times Friday, November 17, 2017 11 BUSINESS

CORPORATE RESULTS Cisco profit beats on strength in security business

services company after Compass Group, posted clients continued to withdraw funds from BSI. a rise of 1.9% in like-for-like revenue to €20.698bn The integration of technology platforms into one ($24.38bn) for the fiscal year ended August 31. core IT system is expected to contribute signifi- Operating profit before exceptional items rose cantly to targeted cost savings of 240mn francs, 8.4% to €1.326bn, broadly in line with the group’s the group said. guidance for a increase that would come in at the Fairfax Media bottom of an initial 8-9% range. Sodexo was expected to post revenue of €20.735bn Domain had been a money-spinning division of and operating profit of €1.379bn, according to an Fairfax that benefited from Australia’s strong real Inquiry Financial poll for Reuters. estate market and digital classifieds, even as its For the current 2017-2018 fiscal year, Sodexo fore- traditional media divisions were hit by advertising cast underlying revenue growth of between 2-4% and circulation declines. and confirmed its broader, medium-term goal, but Fairfax flagged spinning-off Domain in February the company also forecast a flat underlying operat- and outlined details in August after a bidding war ing margin at 6.5% of sales. between US private equity giant TPG Capital and Sodexo warned in July that full-year revenue US investment firm Hellman & Friedman to buy the growth would be less than initially expected after a entire firm fell through. weaker third quarter. Shareholders overwhelmingly backed the separa- TMK tion plan — in which Fairfax took 60% of Domain stock — in early November. Russian pipe maker TMK said yesterday strong Domain Holdings Australia was valued at A$2.1bn demand in the United States and an improvement (US$1.6bn) after its first day of trading in Sydney in the Russian market would support earnings in yesterday, finishing the trading day at A$3.69 after the last three months of the year after growth in the opening at A$3.80. previous quarter. But Fairfax collapsed 31.46% to 73 Australian cents. TMK, Russia’s largest maker of steel pipes for the The media giant — which owns major newspapers oil and gas industry, said it was still on track for including The Sydney Morning Herald and Austral- stronger financial results in 2017 despite some pres- ian Financial Review — in August posted a return sure on margins from higher raw materials prices. to profit for the year to June 30 after a cost-cutting Margins are, however, expected to expand in the drive. first quarter of 2018, it added. But advertising revenue for its major newspapers “In the fourth quarter, TMK’s financial performance weakened further. will continue to be driven by strong demand in the Sime Darby US, with improvement also expected in the Russian market,” Alexander Shiryaev, TMK’s chief executive, Malaysia’s Sime Darby Bhd, the world’s largest oil said in a statement. palm planter by land size, yesterday said its first Cisco Systems reported a better-than-expected hurricanes in Texas, Florida and Puerto Rico and per year from 2018 to 2022, adding it will mainly The company, controlled by Russian businessman quarter net profit increased over 150% versus a quarterly profit on Wednesday, driven by gains earthquakes in Mexico. focus on Europe, China and Central Asia. Dmitry Pumpyansky, posted third-quarter net profit year ago, buoyed by increased production and by from its newer businesses such as security, which The Richfield, Minnesota-based company’s net Its nine-month sales rose to €928.3mn from of $22mn, up from $11mn a year ago. the sale of some assets. more than off set the declines in its traditional income rose to $239mn, or 78¢ per share, in the €852.4mn. Adjusted earnings before interest, taxation, The conglomerate, whose interests stretch beyond switches and routers business. third quarter, from $194mn, or 61¢ per share, a year BAWAG depreciation and amortisation (EBITDA) rose 34% palm oil into areas such as property, announced a The world’s largest network gear maker forecast earlier. Excluding items, Best Buy earned 78¢ per to $169mn, it said, while revenue increased by 39% net profit of 1.32bn ringgit ($315.98mn) for the quar- second-quarter adjusted profit between 58¢ to 60¢ share, in line with analysts’ estimates, according to BAWAG, the former trade union bank which made to $1.1bn. ter that ended in September, up from its restated per share, largely above analysts’ estimate of 58¢, Thomson Reuters I/B/E/S. its market debut last month in Austria’s biggest TMK has said it is considering diff erent options earnings of 522mn ringgit in the corresponding according to Thomson Reuters I/B/E/S. Revenue rose 4.2% to $9.32bn, below expectations ever IPO, yesterday reported its highest ever third- for its US subsidiary IPSCO but intended to keep a quarter a year ago. Revenue from Cisco’s security business — which of $9.4bn. quarter pretax profit and reiterated plans to make controlling stake in the firm. Revenue for the quarter stood at 8.14bn ringgit, off ers firewall protection and breach detection Prudential acquisitions in Germany. The third-quarter results were stronger than versus restated revenue of 6.93bn ringgit for the systems — rose 8% to $585mn. The bank is hoarding capital to fund possible deals, expected, but the key market focus now is on the same time last year. The company’s net income rose to $2.39bn, or 48¢ Prudential expects its Asian business to double in mainly in Germany, and stuck to its broad guidance potential sale or initial public off ering of its US Sime Darby’s plantation division saw its profits per share, in the first quarter ended October size every five to seven years, the British life insurer that it is in talks to make acquisitions of various division, analysts at BCS investment bank said in a jump by more than four times, boosted by land 28, from $2.32bn, or 46¢ per share, a year earlier. said after reporting the region drove a 17% rise in companies with balance sheets of up to around note. sales and as palm fruit output recovered from the Excluding items, the company earned 61¢ per new business profit during the first nine months €10bn ($11.8bn). NN Group lingering eff ects of a strong El Nino weather pattern share. Revenue fell 1.7% to $12.14bn. of 2017. “We’re very bullish on the German market,” BAWAG in 2015 and 2016, which brought dry conditions to Analysts on average had expected Cisco to report a Britain’s largest insurer, which traditionally saw its chief executive Anas Abuzaakouk said. “We’re Dutch insurer NN Group beat expectations yes- swathes of Southeast Asia. profit of 60 cents per share on revenue of $12.11bn. revenue fairly equally split between Asia, the United pursuing a number of M&A opportunities between terday with a 35% jump in third-quarter profit to Profits at the company’s property division more TBC Bank States and Britain, has pushed ahead with Asian Germany and Austria.” €431mn ($507.7mn) buoyed by its acquisition of than doubled on the back of stake disposals in two growth in recent years. Unlike larger Austrian lenders Raiff eisen Bank smaller rival Delta Lloyd. other property companies. TBC Bank Group, Georgia’s largest retail bank, re- Asia was “in some ways, ours to lose”, chief execu- International and Erste Group, BAWAG has turned Analysts polled by Reuters on average had pre- Sime Darby announced in August it was on track ported a 29% jump in third-quarter underlying net tive Mike Wells told investors yesterday after Pru- its back on eastern Europe and instead focused on dicted operating profit from on ongoing business of to spin-off and list its plantations and property profit, buoyed by robust lending, and maintained its dential said that new business profit in the region Germany, Austria and Switzerland. €394mn, up from 319mn a year earlier. businesses by year-end after some restructuring medium-term return-on-equity target. rose 15% to £1.61bn, helped by higher sales and That is in line with major shareholder Cerberus Net profit rose 68% to €734mn, also beating expec- activity. TBC, which became Georgia’s largest bank by loans rising interest rates. Capital Management’s bet on German-speaking tations. The company on Wednesday announced Novem- and deposits after buying JSC Bank Republic from Group new business profit of £2.47bn ($3.25bn) was countries that has seen the private equity firm also Sales rose by 33% as the €2.5bn Delta Lloyd takeo- ber 30 as the tentative listing date for its plantation SocGen and the European Bank for Reconstruction driven by higher sales and favourable economics, take a stake in Deutsche Bank. ver, which was completed in May, helped results at and property units. and Development (EBRD), said net interest margin Prudential said in a statement published ahead of BAWAG’s initial public off ering (IPO) raised €1.9bn its life insurance business in the Netherlands. Benchmark palm oil prices were up 0.6% at 2,747 stood at 6.2% compared with 8.3% a year earlier. an investor day. and enabled Cerberus to sell down its stake to Delta Lloyd agreed to a takeover late last year, ringgit a tonne at the midday break yesterday. Net profit jumped to 88.0mn laris ($32.8mn) in the Seven countries clocked double-digit growth in roughly 35% from 53%. GoldenTree Asset Manage- ending a turbulent period in which it struggled to The group reported its quarterly results during the quarter ended September 30. Asia, including Hong Kong, Singapore and China, ment also reduced its stake to around 26% from strengthen its capital base and clashed with the Kuala Lumpur stock exchange’s midday break. Viacom which said last week it would ease foreign owner- 39%. Several recent bolt-on acquisitions helped Dutch central bank, leading to the departure of top Bouygues ship curbs in the financial sector, with the limit on BAWAG boost its net interest income by 12.4% in the executives. Viacom, owner of MTV and Comedy Central, said insurance companies due to be raised to 51% after three months through September compared with a NN expects the takeover to lead to cost reductions French conglomerate Bouygues reported a yesterday it expects lower revenue from cable and three years, and fully removed after five. year earlier while operating expenses remained flat. reaching 150mn euro in 2020, It will present further forecast-beating 37% jump in nine-month operat- satellite companies in 2018, a forecast that sent its Market gains helped Eastspring, the firm’s Asian Another acquisition, of German regional lender plans for the combined company to analysts and ing profits, driven by a robust performance at its shares down almost 10% in morning trading. asset management business, deliver year-to-date Suedwestbank agreed in July, is expected to close investors on Nov 30. telecoms arm, which raised its forecasts and helped The largest US cable and satellite companies have external net inflows of £2.8bn, and Prudential said in the fourth quarter. NN reported strong demand in Japan for its life to send Bouygues shares higher. shed more than a million subscribers so far this it was also looking to China to help drive future The bank said profit before tax rose 7.9% to insurance products in the third quarter, while profit The family-controlled group, which also builds year, a situation that has left them less willing to growth. €131.8mn compared with the same period a year fell at the property, casualty and health business roads and owns France’s biggest private TV pay for Viacom’s programs. Prudential is shifting its focus away from traditional earlier, mainly driven by core earnings. in the Netherlands, due to high claims on disability broadcaster TF1, kept its target for an improvement Viacom said it expects high single-digit declines in life insurance products with hefty capital charges That brought the nine-month total for this year to insurance. in group profits in 2017 while Bouygues Telecom US aff iliate sales in the first half of 2018. such as annuities, which pay a fixed income for life. €382.4mn. The overall improved results and favourable devel- raised its 2017 goal for its EBITDA (earnings before For the year, it expects aff iliate sales to be down in It merged its UK fund and life insurance businesses BAWAG repeated its outlook for 2017, including opments on the bond markets strengthened NN’s interest, depreciation and amortisation) margin. the mid-single digits with positive sales returning earlier this year. pretax profit of more than €500mn. capital position. Deputy chief executive Philippe Marien told a con- in 2019. The New York-based media company said It is planning to sell a £10bn book of closed annuity “I would like to tell you I can explain what the Its Solvency II capital ratio rose to 204% at the end ference call that Bouygues, which failed to merge revenue grew 2.9% to $3.32bn, beating analyst business in the first instance, according to media dynamics are but quite frankly that’s out of our of September from 196% at the end of June. Bouygues Telecom with market leader Orange last estimates, as US advertising sales improved to their reports, but the shift would be slow, John Foley, control,” Abuzaakouk said when asked about the EFG International year, believed its stand-alone strategy was the right strongest since 2014. chief executive of the UK business, said. recent share slide. one. Revenue from Viacom’s film unit, which includes Mediclinic International “It’s the same team, it’s the same strategy, it’s the EFG International attracted net inflows from July to The consolidation of the French telecom sector theatre and licensing revenue, grew 2% to $789mn same execution, it’s the same targets the day the end of the October for the first time since the was an issue that will be “behind us for a long time”, from a year earlier. Expectations that Mediclinic International would before the IPO and post-IPO. Swiss private bank bought BSI bank in early 2016. Marien added. Domestic aff iliate revenue fell 3% to $948mn in the succeed in taking over Britain’s Spire Healthcare So with time hopefully people will realise the ben- EFG said yesterday it saw net inflows of 500mn Nine month revenues rose 3% to €23.828bn quarter and domestic ad sales were flat at $936mn. Group fell yesterday after South Africa’s largest pri- efits of the franchise and that will take care of itself.” Swiss francs ($506mn) in the period, raising assets ($28.10bn), while the current operating profit rose Net profit attributable to Viacom rose to $674mn, vate hospital group said no deal had been reached. Royal Mail under management to 147.5bn francs. by 37% to €976mn. or $1.67 per share, in its fiscal fourth quarter ended Mediclinic’s underlying earnings fell to £84mn That was despite outflows of 1.5bn francs related to This included a capital gain of €28mn on the sale of September 30, from $254mn, or 64 cents a share, a ($110.64mn), or 11.3 pence per share, from £94mn, Strong growth at its European parcels business the integration of BSI. 50% of its ‘Nextdoor’ arm. year earlier. or 12.8 pence, a year ago. helped Britain’s Royal Mail to beat first-half profit Some outflows were expected to continue into the The results beat a company-compiled consensus The quarter included a $127mn gain from an asset Earnings before interest, tax, depreciation and am- forecasts, boosting its shares as much as 4.6% yes- first quarter of 2018, the group — which last month of analysts’ expectations for an operating profit of sale. Excluding items, the company earned 77 cents ortization (EBITDA) in its Middle East business fell terday, though it warned an ongoing labour dispute announced a change of leadership in 2018 — added. €934mn and sales of €23.703bn, with Bouygues per share. more than 20% in the six months to September 30. could hit its second-half performance. EFG agreed to buy rival Swiss bank BSI from Brazil’s also benefiting from a strong performance at its Analysts, on average, had expected earnings of 86 Mediclinic expanded into the UAE with the acquisi- Adjusted pretax profit dipped to £250mn ($329mn) BTG Pactual in February 2016 to nearly double in French construction arm. cents per share and revenue of $3.23bn, according tion of Al Noor in 2015. for the 26 weeks to September 24, from £252mn, a size so it could compete better in Switzerland’s Bouygues Telecom was now expecting a 2017 to Thomson Reuters I/B/E/S. While this has helped double the company’s expo- year earlier, the postal and parcel delivery company crowded private banking market. EBITDA margin between 26-27%, having achieved Best Buy sure there, new health insurance regulations by the said. But Lugano-based BSI has been mired in legal 27.7% in the first nine months. government have hurt its operations. Three analysts said that beat expectations. problems, chiefly related to transactions linked to This compared to an earlier goal for a margin of Best Buy Co took a $100mn hit in the third quarter For example, a co-payment system for private Royal Mail, which has been in a row with the Com- the scandal-hit Malaysian sovereign fund 1MDB, slightly above 25%. from the late launch of the iPhone X and gave a healthcare in Abu Dhabi, which took eff ect in July munications Workers Union (CWU) over plans to which resulted in the closure of BSI’s Singapore In the nine months to September 30, Bouygues profit forecast for the holiday period that fell short 2016 and was scrapped in April this year, weighed replace the company’s defined benefit pension branch last year. Telecom’s operating earnings reached €395mn of analysts’ estimates, as it competes in a brutal US on the firm’s business. scheme, said revenue rose 2% to £4.83bn, helped Following billions of dollars of client withdrawals compared with €117mn in the same period last year. retail market. EBITDA at its Swiss-based Hirslanden fell marginally by its European parcels business. last year, wealthy EFG customers withdrew a net Growth benefited from the first positive eff ects The United States’ largest electronics chain raised with underlying EBITDA margin decreasing to 17.4% Revenue at UKPIL, which comprises Royal Mail’s 5.5bn Swiss francs in the first six months of 2017. of price increases, and the telecoms arm added its revenue guidance for the full year and said from 18.6%, hurt by lower patient volumes, and core UK and international parcels and letters deliv- The bank in July said it was unlikely to hit its target 110,000 fixed-line phone customers and 295,000 earnings in the crucial fourth quarter when US investment costs. ery businesses, was broadly unchanged at £3.62bn. for net new money growth of 3% to 6% until 2019 as mobile customers in the third quarter. consumers spend the most would be $1.89 to $1.99 Krka GLS, the European parcels business, which covers per share, roughly flat from a year earlier. 41 European markets, saw revenue jump to £1.20bn The earnings forecast for the current quarter and Generic drugs producer Krka yesterday forecast from £942mn. same-store sales growth of 4.4% in the third quarter a rebound in net profit this year and next and an- Royal Mail, which was privatised in 2013, is trying to ended October 28 both fell short of analysts’ nounced a Chinese joint venture that it expects to modernise after years of underinvestment and has expectations, sending its shares down about 6% in bolster sales. taken steps such as reducing layers of manage- morning trading. Slovenia’s biggest company by market size said ment, upgrading its technology and selling off Chief financial off icer Corie Barry said Best Buy was it expects a profit of €140mn this year, up from property. worried that the iPhone’s $1,000 price tag might 108.4mn in 2016. It forecast a profit of €153mn for Uncertainty over the outcome of pensions negotia- weigh on customers’ spending on other electronics 2018. tions have long held back Royal Mail’s stock, which in the run-up to Christmas. Krka has formed a 60-40 joint venture in China with have lost about a fifth of its value in the last year. “We are quite thoughtful about that share of wal- Ningbo Menovo Pharmaceutical, the company said, Sodexo let question, particularly over the holidays when which will “be focused on development, production people often go in with a budget and are trying to and marketing of (pharmaceutical) products with French facilities management and vouchers group think about how to stretch that budget as far as significant sales results expected in about three Sodexo said its cost reduction plan was on track they can”, she told a post-earnings call. years”. The joint venture will have a starting capital and expressed confidence it could accelerate sales Best Buy also raised an online storm by charging of €30mn and start operating at the start of 2018. growth, although its shares fell on disappointment $100 more than the base price for unlocked ver- Krka reported a group net profit of €110.1mn for the over its margin guidance. sions of the iPhone X. first nine months of 2017, up from €80.3mn. Sodexo, which is buying for $675mn US company The company now says it will off er the high-end Its nine-month sales rose to €928.3mn from Centerplate — which provides food and hospitality phone at its original price but only on an instalment €852.4mn buoyed by a 21% rise in sales in Russia. at sports, convention and entertainment venues — basis. It forecast annual sales of €1.24mn, rising to 1.3bn also said its strong financial structure gave it scope In the latest quarter, Best Buy also said its same- in 2018. to eye more acquisitions. store sales suff ered by 15 to 20 basis points from Krka said sales are expected to rise by at least 5% Sodexo, the world’s second-biggest catering Friday, November 17, 2017 GULF TIMES BUSINESS Fed insiders push for radical policy review as Powell era dawns

Bloomberg should work, and is it compatible with or higher without choking off growth. “It would be optimal to have a decision said in an interview with Bloomberg Washington where we’ve been and where we are try- But fundamentals in the economy have around what’s the best framework that we News earlier this month. “This is a discus- ing to get to?” changed since the crisis. Growth and should be using well before the next reces- sion we’re going to have to have within The Fed in 2012 off icially settled on 2% productivity have been tepid. sion,” he said, because it will “take some the Fed, and within the broad economic Federal Reserve off icials are pushing for a inflation as an explicit target for the price As a result, the so-called neutral level time” for off icials to hammer out such an community.” potentially radical revamp of the playbook stability half of its dual mandate from of interest rates — which neither speeds important policy. There’s good reason to discuss the for guiding US monetary policy, hoping Congress. The other goal is maximum up or slows the economy — is very low by Alternative approaches could include future of monetary policy now. The unem- to seize a moment of economic calm and sustainable employment. historic standards, leaving the Fed with allowing prices to overshoot for the same ployment rate is low and growth is hum- leadership change to prepare for the next The move formalised a policy they’d less wiggle room. amount of time they undershot — com- ming along steadily, and though inflation storm. been following in practice for several Allowing prices to rise slightly higher monly called price-level targeting — or remains below target, off icials expect it to While the country is enjoying its third- years, and it was backed by careful logic: would give the Fed more scope to ease even raising the desired inflation goal to pick up in coming months. In this period longest expansion on record, inflation and 2% is high enough to ensure that work- in the next downturn. The federal funds 3%. of economic calm, economists can debate interest rates are still low, meaning the ers continue to get raises and to give rate is quoted in nominal terms, or not Less radically, Fed off icials could make the merits of diff erent approaches slowly central bank has little room to ease policy the Fed some cushion against deflation. adjusted for inflation. So if neutral stands their willingness to overshoot the inflation and carefully. in a downturn before hitting zero again. Other advanced economies aim for a at 0.5%, in real terms, and prices are rising goal more formal by forecasting above- “Developing a new framework prior With Jerome Powell nominated to similar level. at a 3% pace, the Fed can get rates as high two-percent inflation in their quarterly to the next zero-lower bound episode take over as Fed chairman in February, Powell: To the helm. Yet Fed off icials, most loudly Williams, as 3.5% before policy would be restric- economic projections, Bank of America allows time for a shift in the nature of influential off icials including San Francisco have been urging the policy-setting tive. If inflation were only 2%, that level in Merrill Lynch economist Ethan Harris forward guidance — and communications Fed chief John Williams and the Chicago leadership,” Atlanta Fed president Raphael Federal Open Market Committee to revisit nominal terms would be 2.5%. suggests. more generally,” Evans said on Tuesday Fed’s Charles Evans have taken the lead in Bostic told reporters on Tuesday in Mont- that approach. Williams told reporters in early No- “There’s a host of possible options, and in Frankfurt. calling for reconsidering policy maker’s 2% gomery, Alabama. “The new guy comes The reason? The target was settled at vember that he favours discussing a new I have not settled on any one of those The policies would then be better un- inflation target. in and they are able to really think about, a time when off icials thought they’d have framework now, though he doesn’t want yet,” but it merits a discussion “now,” derstood, better refined, and “therefore, “It’s a good time given the shift in how should this work, how do I think this no problem in lifting interest rates to 2% to tie the talks to near-term strategy. Philadelphia Fed President Patrick Harker likely be more eff ective,” he said. Tesla to unveil electric big-rig truck in midst of Model 3 factory ‘hell’

Reuters ways and the benefi ts of allow- San Francisco ing drivers to rest while trucks travel. The truck would have a esla Inc will unveil today working range of 200 to 300 a prototype electric big- miles (320 to 480km), at the Trig truck, which may be low end of what is considered able to drive itself, throwing “long-haul” trucking, Reuters the company into a new mar- reported. ket even as it struggles to roll Diesel trucks are capable of out an aff ordable sedan which travelling up to 1,000 miles is central to the company’s fu- (1,600km) on a single tank of ture. fuel. Chief executive Elon Musk Musk, who has pushed back has described electric trucks the debut twice, said this week as Tesla’s next eff ort to move that the truck would “blow the economy away from fossil your mind clear out of your fuels through projects includ- skull” when it was introduced A shopper protects her hair from the rain with a shopping bag on Oxford Street in central London. Sales volumes in Britain in the three months to October were just 1.1% higher ing electric cars, solar roofs and in a webcast. than the year before, the weakest growth rate since May 2013. power storage. “Semi specs are better than But some analysts fear the anything I’ve seen reported so truck, named Tesla Semi, will far. be an expensive distraction for Semi eng/design team Tesla, which is burning cash, work is aces, but other needs has never posted an annual are greater right now,” Musk profi t, and is in self-described tweeted in October, announc- “manufacturing hell” starting ing the second delay. up production of the $35,000 “It can transform into a ro- Britain’s shoppers rein Model 3 sedan. bot, fi ght aliens and make one The young market for elec- hell of a latte,” he added on tric cargo trucks is mostly fo- Wednesday, posting a picture cused on medium duty, rather of a backlit, shadowed Semi than the heavy big rig market with trapezoidal blue head- Tesla is after. lights. The power capacity, weight He has forecast large-scale in spending, 1st yearly and cost of batteries all limit a production within a couple of truck’s ability, analysts say. years. Reuters in August reported A Tesla truck with a range of that Tesla was working on 300 to 450 miles would be able self-driving technology for the to address less than half of the truck. total semi-truck market, esti- Several Silicon Valley com- mated Bernstein analyst Toni decline since 2013 panies see long-haul trucking Sacconaghi in a note on Mon- as a prime early market for the day. Retail sales decline y/y for ers in October 2016 which dis- This meant sales volumes in taking part in a Reuters poll had its longest run of falls in almost self-driving technology, cit- “It is somewhat unclear why first time since March 2013; torted the comparison. “We are the three months to October predicted sales would drop 0.6% three years. Recent reports from ing the relatively consistent the company needs another monthly sales up 0.3%; data continuing to see an underlying were just 1.1% higher than the on the year and grow just 0.1% British retailers have also indi- speeds and little cross-traffi c major initiative... on its already better than expected, but picture of steady growth in re- year before, the weakest growth on the month, according to the cated consumers may be tight- trucks face on interstate high- full plate,” wrote Sacconaghi. shows inflation impact tail sales, although this October rate since May 2013. median forecasts. ening their belts. suff ered in comparison with a Sterling rose slightly after the The ONS said monthly sales Department store chain John Reuters very strong October in 2016,” data and British government in fact rose by 0.3% along with Lewis has posted seven straight London ONS statistician Kate Davies bond prices edged down as the the minus 0.3% year-on-year weeks of sales decline, cloth- said. sales fi gures came in less weak fi gure. ing retailer Next missed ana- Goldman Sachs is said Mild weather also put shop- than suggested by a series of The Bank of England raised lysts’ quarterly forecasts, and ritish retail sales recorded pers off buying winter clothes, other surveys of retailers. interest rates on November 2, Marks & Spencer said it faced to create Brexit-driven their fi rst year-on-year adding to the weakness in the “This is in stark contrast to saying it forecast household “stronger headwinds” in food Bdecline since 2013 last fi gures. the survey data which were consumption growth, adjusted and was slowing openings of its Frankfurt entity month as consumers struggled But volumes were still far low- pointing to an absolute blood- for infl ation, would slow to 1% upmarket convenience stores. with fast-rising prices and stag- er that they were before the June bath,” Alan Clarke, an economist next year from 1.5%. It also said The ONS said that retail sales nant wages. 2016 vote to leave the European with Scotiabank, said. “Things it expected infl ation would peak growth in cash terms slowed Bloomberg Chief executive officer Although the fall was less se- Union hit sterling and drove up are probably as bad as they are in October before slowly falling to an annual 2.8% in October, Frankfurt Lloyd Blankfein tweeted vere than analysts had expected, infl ation. going to get, so I’d be hesitant to back towards its 2% target over down from 4.6% in September last month that he would the offi cial data showed a 0.3% Looking at the three months extrapolate the downward trend the next three years. and the weakest since June 2016. probably be spending “a lot year-on-year fall in sales vol- to October, which smooths out too far,” he said. Offi cial data earlier this week The gauge of infl ation used in Goldman Sachs Group is more time” in Germany’s umes — the biggest since March monthly volatility in the data, “Next year should be a bet- showed that consumer price in- the retail sales data, the retail creating a Frankfurt-based financial capital. If Britain 2013. sales growth picked up to 0.9% ter year as lower infl ation and fl ation held at a fi ve-year high of price defl ator, dropped to 3.1% holding company to prepare leaves the European That partly refl ected a very from 0.7% in the three months fi rmer wages reverse this year’s 3% in October while regular pay, in October from 3.3% in Sep- for Brexit, according to Union without retaining strong performance by retail- to September. downwards trend.” Economists adjusted for infl ation, suff ered tember. people with knowledge of membership of the single the plan. market or a special deal for Goldman Sachs Europe will financial services, some house the Wall Street firm’s trading operations that German advisory business, international banks have G20’s fiscal guns may grow quiet in 2018 as politics prevails which will be merged with based in London will likely several Spanish operations, be required to move to Bloomberg “Increasingly fragmented and partisan is closer to 0.1% of GDP, they found. G20 crimp the eff ectiveness of extra spending. according to the people, who another nation in the trading Hong Kong parliaments, reflecting a surge in political governments led by the US, UK, Japan Investors will need to be cautious of asked not to be identified bloc. discontent among the electorates, will and Germany may deliver fiscal stimulus explosive debt trajectories that could because the information is The Frankfurt holding not make it easier to reach the necessary of about 0.2% of GDP in 2018, if their eventually push some nation’s towards a private. Goldman Sachs said company may in turn own Whenever the next global downturn political decisions swiftly,” Morgan spending plans win approval. fiscal cliff , according to Morgan Stanley. in an emailed statement a second unit that would comes, don’t count on government Stanley economists wrote in a note. Japanese Prime Minister Shinzo Abe’s Government’s unable to borrow in their yesterday that it planned consolidate Goldman Sachs’s spending to prop things up. “Hence, eff ective major fiscal policy action re-election has cleared the way for an own currency will also face sustainability “several Societas Europaea continental European Divided legislatures and surging debt may looks unlikely to us.” additional budget. In the US, lawmakers challenges during liquidity crunches, they (SE) entities to reflect the securities sales and trading limit the ability of governments to take They found that some change is already continue to debate President Donald said. firm’s international identity,” operations, the people said. swift action, according to an analysis of underway. The amount of fiscal stimulus Trump’s tax reform proposals, which This isn’t to say that government without saying where they’d Blankfein has also tweeted fiscal policy in the world’s twenty biggest actually implemented in developed means meaningful fiscal stimulus is spending can’t play an important role be based. that his bank was still economies by Morgan Stanley. economies this year is set to come in unlikely in the near term, according to during future downturns, and it still has The move doesn’t mean investing in its new London At the same time, central banks may at 0.25% of gross domestic product, Morgan Stanley. “Overall, the budget the potential to be highly eff ective when Goldman Sachs is about to off ice, but suggested policy be handicapped by political and legal much smaller than the 0.5% originally plans for the next fiscal year are still more accompanied by loose monetary policy. move jobs from London, and makers will ultimately decide constraints after they embraced massive expected by the investment bank’s in a state of flux than they normally would But Morgan Stanley message for the 2018 no decisions are likely to whether the building is bond buying programs following the economists. After including emerging be at this stage of the year,” they wrote. budget season is: “Stay tuned! But don’t be made in that regard for fully used as the firm once global financial crisis. economies, global fiscal stimulus this year Another issue is tight labour markets may hold your breath.” months, the people said. intended.