CHINA OUTFLOWS | Page 6 BOE STUCK | Page 14 Yuan crunch Odds stacking spurs banks to up against the hoard abroad pound for 2016

Wednesday, December 30, 2015 Rabia I 19, 1437 AH

GULF TIMES EXCLUSIVE: Page 2 GULF TIMES Islamic banking assets grew 16% in 2015; Qatar among BUSINESS the key markets Qatar private sector may feel heat if QCB Qatar oil demand to fi rm responds to Fed liftoff

By Santhosh V Perumal Business Reporter up in 2016 on transport Qatar, which has not yet responded to the liftoff of interest rate by the US Federal Reserve, can aff ord to wait in the short term, but will have to eventually reciprocate, which may slowdown the private sector that is increasingly becoming a growth engine for the country, according to experts. “Given that consumer price index inflation is benign and strong growth has to emerge, especially from the non-hydrocarbon and industry, says Opec sector, conventional wisdom suggests continuing with an expansionary monetary policy (in the short term),” a banking By Pratap John source said. Chief Business Reporter Highlighting that the 2016 budget has itself spelt out the need for raising finance from domestic markets to plug the more than 26% decline in expected revenues; he said in such a scenario an inter- il demand is expected to grow fi rm- est hike would put additional burden on the exchequer. ly in Qatar in 2016 with transporta- Saudi Arabia, the UAE, Kuwait and Bahrain had increased interest Otion fuels, especially gasoline, and rates, following the Fed’s decision to hike the rate by 25 basis industrial fuels such as diesel and residual points, after keeping it near zero for the last seven years. fuel oil playing a “signifi cant part” in the “We might not need to increase the interest rates based on the overall oil demand growth, an Opec report liquidity and looking at our domestic environment,” Qatar Central has shown. Bank (QCB) Governor HE Sheikh Abdulla bin Saoud al-Thani had Oil demand growth in the region is pro- said in October. jected to reach 0.19mn bpd in 2015, while An investment analyst, who tracks fixed income markets, said the in 2016 it is anticipated to record around QCB’s overnight deposit rate is lower than the US benchmark by 0.21mn barrels per day of growth. 50 basis points despite the 0.25% hike in Fed rates. Oil demand grew strongly in Qatar and “This, along with the accumulated comfortable buff ers, could the UAE this year, shows Opec’s latest aff ord (the QCB to) delay a rate hike,” he said. ‘Monthly oil market report’. In both coun- QCB’s policy rates such as QMR deposit rate stands at 0.75%, tries, transportation fuels – notably gaso- QMR lending rate at 4.5% and repo rate at 4.5%. The deposit and line – dominated the increases. lending rates are announced by the QCB on overnight deposit Elsewhere in the Middle East, solid de- and loan deals between it and local banks through Qatar Money mand requirements have been registered in Market Rate Standing Facility (QMR), respectively. October with oil demand growth in Saudi The Federal Open Market Committee projections suggest that Arabia hitting the highest level in 2015. the rate is expected to rise to about 1.4% by the end of 2016, sug- Oil demand in Saudi Arabia contin- gesting four more increases over the coming 12 months. Qatar ues its positive momentum, growing by The report also showed world oil de- while Europe and Asia Pacifi c are seen de- sia, Russia, China and Colombia has been banking sources said in the long term, it will eventually prompt around 0.34mn bpd, or 15% year-on-year. mand in 2015 was estimated to grow by clining. more than off set by lower-than-expected the QCB, whose monetary policies are linked to riyal’s fixed peg All products recorded positive gains during 1.53mn bpd, around 300,000 bpd higher In the non-OECD region, growth is ex- growth in Canada due to the wildfi re in with dollar, to reciprocate. the month, without exception. than the initial forecast in July 2014. pected to be around 1.1mn bpd, with China Alberta in Q2, 2015, the unexpectedly The Ministry of Development Planning and Statistics, in its Qatar Direct crude burning recorded highest The upward revision has been support- showing slightly lower growth. sharp decline in Mexico, and higher de- Economic Outlook 2015-17 Update, had said domestic interest gains in both percentage and volumetric ed by lower oil prices in the main demand Steady oil requirements are expected in clines in Australia and from Caspian pro- rates in Qatar are likely to rise during 2015-17 on rising funding basis, it said. Transportation, industrial centres, particularly the Organisation for Asia, the Middle East and Latin America. ducers. needs of government and the commercial banks and “accentu- fuels and direct crude burning were the Economic Co-operation and Development Nevertheless, the demand forecast for US oil output increased by a lower- ated” by the Fed liftoff . contributing elements in rising Saudi Ara- (OECD), Americas and Europe. 2016 is subject to considerable uncertain- than-anticipated 810,000 bpd, the report “Over the outlook period, and in circumstances where oil and gas bian demand in 2015, which continues to Motor fuel consumption in the US and ties, depending on the pace of economic said. revenues have ebbed and public sector deposits in the commer- be the pattern of consumption during Oc- Europe was encouraged by cheaper prod- growth, development of oil prices, and In 2016, non-Opec oil supply is fore- cial banking system have fallen, domestic interest rates are likely tober this year. uct prices, along with improving car sales. weather conditions, as well as the impact cast to decline by 380,000 bpd. Growth is to feel upward pressure from rising funding needs of government Demand grew solidly also in Kuwait, Petrochemical consumption also contrib- of substitution and energy policy changes. seen coming mainly from Canada and Bra- and the commercial banking system, which must now comply particularly lifting road transportation and uted to the higher growth. Non-Opec supply growth in 2015 has zil, with declines also expected in the US, with tighter regulatory standards,” the update had said. industrial fuels, gasoline and gas diesel In the non-OECD, demand growth came been revised down by 310,000 bpd since Mexico, Russia, Kazakhstan, the UK and Given the fiscal austerity measures currently being contem- oil. Iraqi oil demand continued its positive mainly from China, India and the Middle the initial forecast to now stand at 1mn Azerbaijan. plated; the private sector, which ought to play a bigger role in the growth trend which started in June, with East. In contrast, Brazilian oil require- bpd. This has been mainly due to the im- Opec’s natural gas liquids (NGLs) are country’s growth story, will face more heat if the rates were to most gains being observed in fuel oil and ments slipped back into a contraction as pact of low oil prices and declining invest- seen increasing by 170,000 bpd in 2016, harden, sources said. gasoline. economic momentum slowed. ments in the oil industry. following a growth of 160,000 bpd in 2015. Considering that government plans to increasingly tap the But, the report said Middle East oil de- In 2016, world oil demand is expected to The adjustment is also attributable to As a result of the current forecasts, the domestic debt market and that the country has now elongated mand growth may be challenged in 2016 grow by 1.25mn bpd, partly supported by downward revisions in both the OECD demand for Opec crude in 2016 is expected maturities for instruments, the sources said the time has come to by some downside risks, which relate to the improvement in global economic ac- and developing countries of 420,000 bpd at 30.8mn bpd, which represents an in- systematically develop the corporate debt market, which could the continuing geopolitical turbulence in tivities. The OECD region is anticipated to and 40,000 bpd, respectively. Higher- crease of 1.5mn bpd over the estimated augur well for the infrastructure development in the country. some countries. rise by 150,000 bpd, led solely by the US, than-expected growth in the UK, Malay- level for 2015. Saudi plans unprecedented subsidy cuts amid oil fall

Bloomberg Salman, who ascended to the throne in more than 35% over the past year, Riyadh January, and for an economic council straining the public fi nances of pro- led by his son, Deputy Crown Prince ducers from Venezuela to Iraq. The for- Mohammed bin Salman. In its fi rst eign reserve assets of the Saudi central onfronting a drop in oil prices, months in power, the new administra- bank dropped more than $95bn in the Saudi Arabia reduced energy tion brought in swift changes, over- fi rst 11 months of this year to $627.7bn. Csubsidies and allocated the big- hauling the cabinet and merging min- Signifi cant progress in economic di- gest part of government spending in next istries. versifi cation relies largely on policies year’s budget to defence and security. The new measures are the begin- put in place before the price shock, ac- Authorities announced increases to ning of a “big programme that the eco- cording to an International Monetary the prices of fuel, electricity and water nomic council will launch,” Economy Fund study released in December 2014. as part of a plan to restructure subsi- and Planning Minister Adel Fakeih told It cited Dubai as the main successful dies within fi ve years. The government reporters in Riyadh. The subsidy cuts example among Gulf states. intends to cut spending next year and won’t have a “large eff ect” on people “Next year will see continued ad- gradually privatise some state-owned with low or middle income, he said. ministrative and fi scal reforms,” entities and introduce value-added The collapse in oil prices has slashed Fakeih, the economy minister, said. taxation as well as a levy on tobacco. government revenue, forcing offi cials He said that 20bn riyals of this year’s The biggest shakeup of Saudi eco- to draw on reserves and issue bonds for spending overshoot was due to in- nomic policy in recent history coin- the fi rst time in nearly a decade. The crease military and security spending cides with growing regional unrest, government recorded a budget defi cit related to the operation in Yemen. including the confl ict in Yemen, where of 367bn riyals ($98bn) in 2015. That’s For 2016, the government allocated a Saudi-led coalition is battling Houthi about 16% of gross domestic product, 213bn riyals for military and security rebels. In attempting to reduce its reli- according to the National Bank of Abu spending, the largest component of ance on oil, the kingdom is seeking to Dhabi, but below the 20% forecast by the budget. put an end to the population’s depend- the International Monetary Fund. Monica Malik, chief economist at ence on government handouts. For 2016, the government expects Abu Dhabi Commercial Bank, said “This is the beginning of the end of the defi cit to narrow to 326bn riyals. she believes “that the actual fall in ex- the era of free money,” said Ghanem Spending, which reached 975bn riyals penditure will be sharper than implied Nuseibeh, founder of London-based this year, is projected to drop to 840bn in the budget.” consulting fi rm Cornerstone Global riyals. Revenue is forecast to decline to “We believe that lower govern- Associates. “Saudi society will have to 513.8bn riyals from 608bn riyals. ment spending will be the key driver get used to a new way of working with Oil made up 73% of this year’s reve- narrowing the fi scal defi cit in 2016, the government. This is a wakeup call nue, according to the Finance Ministry. though further fi scal reforms are ex- for both Saudi society and the govern- Non-oil income rose 29% to 163.5bn pected,” she wrote in a note, forecast- ment that things are changing.” riyals. ing a shortfall of 10.8% of gross do- A Saudi man walks past a pump at a petrol station in the Jeddah on Monday. Authorities announced increases to the prices This is the fi rst budget under King Brent crude prices have plunged mestic product in 2016. Pages 3, 16 of fuel, electricity and water as part of a plan to restructure subsidies within five years. Wednesday, December 30, 2015 2 ISLAMIC FINANCE GULF TIMES

SUKUK PIPELINE

Reuters ISLAMIC DEVELOPMENT Dubai BANK: The Islamic Islamic banking assets Development Bank wants to use sukuk to help finance the Following are major Islamic reconstruction of countries bond issues in the global ravaged by conflict such as pipeline. Yemen, with the World Bank The Thomson Reuters Global as a potential joint issuer, the Sukuk Index is at 116.99181 head of the IDB said in mid- up 16% in 2015; Qatar points, down from 117.25342 at November. the end of last month but up BOUBYAN BANK: Kuwait’s from 115.79726 at the end of Boubyan Bank said in mid- last year. The Thomson Reuters November that it was in the Investment Grade Sukuk Index preliminary stages of studying is at 115.16744 points against issuance of sukuk that would 115.35741 at end-November and boost its capital reserves. among key markets 113.69014 at end-2014. KUWAIT: Kuwait’s financial SAMALAJU: Samalaju regulator released rules By Arno Maierbrugger Industrial Port proposed a covering issuance of sukuk in Gulf Times Correspondent sukuk murabaha programme mid-November, in a move that Bangkok of up to 950mn ringgit could facilitate sales of sukuk ($221mn), RAM Ratings by both the government and reported in mid-December. Corps. Finance Minister Anas slamic retail and commercial bank- VALLIANZ: Singapore’s al-Saleh has said Kuwait may ing assets continued to grow at 16% Vallianz Holdings said in mid- issue local-currency sukuk to Iin 2015, at the same rate they did in December that a subsidiary cover its budget deficit. 2014. This is one of the key fi ndings of the would refinance loans with PAKISTAN: The Pakistani recently issued World Islamic Banking a Saudi riyal-denominated government is likely to issue Competitiveness Report 2016 by consul- sukuk issue of up to 1.1bn riyals sukuk worth over 300bn tancy EY. ($293mn); it appointed banks rupees against the security of The study says that Islamic banking in Saudi Arabia to lead and Jinnah International Airport assets in six main markets are set to ex- manage the sukuk financing. Karachi next month to squeeze ceed $801bn in 2015. Those markets are WEGO: Malaysia’s Wego surplus liquidity from Islamic Qatar, Indonesia, Saudi Arabia, Malaysia, Sdn Bhd, which holds the banks, The News quoted a the UAE and Turkey, where around 80% concession to build six Islamic local banker as saying in mid- of international banking assets are being religious schools for the Perak November. held. Altogether, global Islamic banking state government, proposed a Pakistan’s government plans assets are expected to reach or cross $1tn sukuk musharaka issue of up an international sukuk issue, in 2015 and by 2020 to reach a profi t pool to 210mn ringgit, RAM Ratings likely to be worth $500mn, of approximately $30.3bn. said in mid-December. next year, possibly in the April- Gulf Cooperation Council (GCC) BARWA BANK: Qatar’s Barwa June quarter, finance secretary countries added $91bn in Shariah-com- Bank listed a $2bn Islamic bond Waqar Masood Khan told pliant assets in 2015, representing a year- programme on the Irish Stock Reuters in late September. on-year growth of 18%, the study found. Exchange, taking it a step OMANTEL: Oman If Bahrain, Kuwait and Pakistan are closer to tapping the sukuk Telecommunications Co added to the core markets, altogether market for the first time, the (Omantel) plans to sell 50mn they account for 93% of global industry bank said in early December. rials ($130mn) of Islamic bonds assets in Islamic banking which are esti- GARUDA: Indonesian airline by early 2016 in what would be mated to exceed $920bn in 2015. Garuda intends to raise the country’s second corporate $500mn through selling global sukuk issue, a top executive bonds or sukuk next year to said in early November. Gulf Times refinance debt, the Jakarta SAUDI ELECTRICITY: Saudi Globe quoted president Electricity Co received Exclusive director Arif Wibowo as saying approval from its executive at the start of December. committee to set up a sukuk SIME DARBY: Malaysia’s Sime programme worth as much as Iran is not included in the study. Al- Darby said in late November $1.5bn and negotiate for loan though the country also has a huge Is- that its board had approved financing worth $2.3bn, the lamic banking industry, it is unique as it the company’s plan to Gulf’s largest utility said in late is almost entirely domestic and not (yet) establish a perpetual sukuk August. connected to the international banking programme of up to 3.0bn ALUMINIUM BAHRAIN: channels. ringgit. Aluminium Bahrain is seeking Muzammil Kasbati, director of EY’s TAIWAN: The Taipei Exchange a credit rating ahead of talks Bahrain-based Global Islamic Banking expects next year to list sukuk with banks about fund- Center, says that despite the operat- issued by local companies, raising for its $3.5bn Line 6 ing environment of banks is generally the president of the exchange expansion, a company official “getting tougher given the prevailing said in late November without told Reuters in late August. A [low] oil price and the resulting im- giving details. banking source said a bond pact on banking system liquidity and AFGHANISTAN: The or sukuk could be issued infrastructure spend,” Islamic banks government of Afghanistan before end-2015 or early in were in a better position to weather intends to sell sukuk, perhaps 2016. this storm “due to the simpler nature over the coming year, the PHILIPPINES: Sukuk are of their balance sheets, basic products central bank governor said in a funding option for the and localized operations.” They, how- late November. Philippine government, ever, in line with conventional banks WAPDA: The Pakistan National Treasurer Roberto would need to innovate and introduce government in late Tan told Reuters in mid-August, new products and technologies to be November gave the Water adding that he hoped Congress ready for the changes that are impact- and Power Development would pass legislation to allow ing the way customers engage with expected to reach $1.6tn, and their overall “There is still a lot of opportunity for ing. Shariah-compliant assets of Qatar’s Authority permission to such issuance. banks. profi t pool is expected to reach $27.8bn. Islamic banking,” the study notes, adding banks grew three times higher than in borrow 244bn rupees BANK MUSCAT: Bank Muscat “A fundamental review of their oper- In terms of Islamic banking mar- that “the industry today is yet to reach conventional banking. However, supply- ($2.3bn) from commercial has delayed plans to launch a ating models at this stage will be critical ket share, Saudi Arabia, Kuwait, Bah- 100mn customers.” side initiatives or the launch of new Is- banks through domestic 500mn rial sukuk programme to the success of Islamic banking across rain and Qatar are expected to be the Looking specifi cally at Qatar, the re- lamic banks would be needed if Islamic sukuk issues to finance after the central bank rejected the Organization of Islamic Cooperation major players by 2020, with the GCC port says that while the national market banking in Qatar wishes to go main- construction of two the proposal, a source at the markets,” Kasbati says. providing additional acceleration for share of Islamic banking plateaued in the stream, EY notes. hydropower projects, bank told Reuters in mid- The study also forecast the develop- future growth of the industry. Turkey recent past, this changed during 2014 In total, Qatar in 2014 had a national but refused to give tax July. “We will restructure the ment of the industry up to 2020. By that is expected to recover from the cur- when it achieved a noticeable increase market share of Islamic banking assets exemptions on the loans, the sukuk proposal and file for the year, total Islamic banking assets of com- rent temporary setback due to political and became the third largest contributor of 20.8%, or$72bn, and a global share of Express Tribune reported. approval again,” he said. mercial banks in the six core markets are volatility. towards global growth in Islamic bank- 8.1%.

EDUCATION/FAQ on Employment Are non-compete clauses that restrict an employee’s Global sukuk face challenge in ability to work in another company valid? Non-compete clauses that restrict an employee’s ability to work in another company are impermissible and corrupt the entire contract, though the contract itself remains valid and the clause would only have the eff ect of a non-binding 2016 as CIMB sees $40bn sales promise.

Is it permissible to record interest-based Slowing economic growth rising yield expectations,” said While Saudi Arabia’s fi scal def- transactions? to weigh on issuance, says Angus Salim Amran, the Kuala icit is pushing the government to The unlawfulness of any form of employment depends RHB Investment; worldwide Lumpur-based head of fi nancial consider selling bonds and search on how direct one’s involvement is to the unlawful: direct off erings languishing in worst markets at RHB Investment, Ma- for savings, major development involvement entails that one participates in the actual year since 2010 laysia’s second-biggest Islamic initiatives won’t be delayed, Fi- execution of an unlawful transaction; using interest-based bond arranger. “Lower oil prices nance Minister Ibrahim al-Assaf transactions as an example, the one who buys, sells, trades, Bloomberg may encourage governments and said this year. The kingdom is witnesses, records, calculates or in any way directly assists Kuala Lumpur corporates to explore better cost likely to continue selling debt to in an interest-based transaction during its execution is effi ciencies, which may reduce fi nance its burgeoning defi cit, ac- culpable (e.g. car buyer who contracts an interest-based borrowing requirements and lead cording to an October report by lease; homeowner who takes a mortgage; futures and s global Islamic bonds lan- to lower sukuk sales.” Standard & Poor’s credit analyst options trader; insurance salesman; loan off icer); if an guish in the bleakest year Angus said the potential de- Mohamed Damak. accountant, for instance, merely records a transaction that Afor sales since 2010, the crease in government revenue The Indonesian government has already taken place, the involvement is not considered next 12 months look just as chal- and higher budget defi cits may has set aside over 300tn ru- direct, and therefore remains permissible, though it is lenging. encourage sovereigns to tap the piah ($21.9bn) for infrastructure always superior to avoid the doubtful. Malaysia’s CIMB Group Hold- Shariah-compliant debt market, next year and may step up su- ings Bhd, the top sukuk arranger but at the same time, if compa- kuk sales to fund those projects, Who is entitled to initiate the cancellation of an worldwide for seven of the last nies curtail plans due to slowing said CIMB’s Safri. Malaysia has employment contract? nine years, predicts a pick up in growth then sukuk sales next year Qatar is spending $182bn on infrastructure such as roads and stadiums a $444bn development pro- Both employer and employee are entitled to cancel the 2016 to at least $40bn from 2015’s will be more in line with 2015. as it prepares to host the soccer World Cup in 2022. While issuance gramme, with many local com- employment contract at any time given an agreed upon $34.5bn. The forecast is still 20% Global issuance has fallen 29% in the GCC region has dropped 33% to $9.9bn in 2015, sukuk sales are panies undertaking the con- notice period, though if the employer cancels the contract less than the record $50.1bn in from last year’s total and off erings expected to gather pace next year as Qatar and Saudi Arabia are seen struction of roads, railways and after the employee begins work, the employer is obligated 2012, data compiled by Bloomb- are down 17% to 54.2bn ringgit leading spending. power plants as part of that plan to pay for work done at the agreed upon rate; but if the erg show. ($12.6bn) in Malaysia, the world’s who sell Islamic bonds for fi - employee cancels, whether work had begun or not, the Slowing economic growth biggest market for the debt, data company from China to sell sukuk Islamic Bank Bhd, a unit of CIMB nancing. employee is entitled to nothing. could weigh on companies’ capi- compiled by Bloomberg show. if it gets a sale off the ground. Group. “It won’t be an easy year,” said tal and their investment spend- Worldwide sales amounted to While issuance in the six- Qatar is spending $182bn on Mohd Eff endi Abdullah, the Kuala If one is required to perform occasional unlawful acts ing, tempering any increase in $48.5bn in 2014 and $48.8bn in member Gulf Cooperation Coun- infrastructure such as roads and Lumpur-based head of Islamic during the course of an otherwise lawful job, should Shariah-compliant bond issu- 2013. cil has dropped 33% to $9.9bn in stadiums as it prepares to host the markets at AmInvestment Bank one continue working with such an employer? ance next year, according to RHB CIMB predicts investment 2015, the poorest showing since soccer World Cup in 2022. A 41% Bhd, Malaysia’s fourth-biggest If one is employed in lawful work that occasionally requires Investment Bank Bhd. Borrowers and infrastructure spending will 2011, sales are expected to gath- slump in oil prices in the past 12 sukuk arranger. “While project fi - one to perform something unlawful, one must leave the in the $2tn Islamic fi nance indus- be the likely drivers behind new er pace next year as Qatar and months could also foster more is- nancing sukuk may pick up, cor- employer unless one’s obligation to perform the unlawful try also now face higher costs af- Islamic bond off erings in 2016. Saudi Arabia lead spending, said suance from Saudi Arabia, which porates may defer sales or seek al- work is waived. ter the US raised interest rates for Ghana and Morocco are also set to Mohamad Safri Shahul Hamid, is the top exporter among the Or- ternative cheaper funding in light the fi rst time in almost a decade debut Shariah-compliant debt in the Kuala Lumpur-based senior ganization of the Petroleum Ex- of the rising interest-rate envi- Source: Ethica Institute of Islamic Finance via Bloomberg and signalled more increases. 2016, while Sichuan Development managing director and deputy porting Countries and is part of ronment and general economic “Sukuk supply will fall with Holding would become the fi rst chief executive offi cer of CIMB the GCC. slowdown.” Gulf Times Wednesday, December 30, 2015 3 BUSINESS

Saudi cuts dependence Saudi economic shakeup on oil amid price slump

Bloomberg Kuwait shows it is planning for Saudi Arabia, the world’s biggest crude exporter, is cutting its dependence on oil revenue due to the slump in crude prices while boosting production to defend its market share. Revenue from oil sales in the kingdom will make up about prolonged cheap oil era 70% of the budget next year, John Sfakianakis, a Riyadh- Reuters based economist and a former Dubai adviser to the government, said by phone. That will be 73% in 2015, compared with 89% in the audi Arabia’s planned cuts in previous year, according to a spending and energy subsidies statement posted on the finance Ssignal that the world’s largest ministry website on Monday. crude exporter is bracing for a pro- “The kingdom reduced its longed period of low oil prices. dependency rate on oil revenues The Opec heavyweight shows no in 2015 and it will do the same in signs of wavering in the long-term oil 2016 to overcome any negative strategy it has orchestrated since last impact from the decline in oil year. Instead, it appears willing to con- prices,” Sfakianakis said. “It’s tinue tolerating cheap crude to defend very clear that Saudi Arabia will market share and wait for the market continue with its oil policy of to balance without cutting supplies, oil defending its market share in sources and analysts say. 2016 as it prepared itself for low In one of the strongest signals that oil price environment.” the kingdom will stay the course de- Saudi Arabia announced its spite the impact on its fi nances, Saudi first budget under King Salman, Aramco’s chairman Khalid al-Falih said who ascended to the throne in it could outlast others. January, amid plans to gradually “We see the market balancing some- cut subsidies and sell stakes in time in 2016, we see demand ultimately government entities to counter exceeding supply and soaking up a lot the drop in oil revenue. Brent of the excess inventory and prices in crude has declined 36% this year. due course will respond regardless of The kingdom also announced when and by how much,” Falih told a on Monday that it was raising news conference late on Monday de- domestic fuel, power and water tailing next year’s budget. “Saudi Ara- prices, according to the off icial bia more than anyone else has the ca- Saudi Press Agency. pacity to wait out the market until this The Organization of Petroleum balancing takes place,” he said. Exporting Countries on December Analysts said the plans announced 4 eff ectively abandoned its limits on Monday to shrink a record state on output amid eff orts to squeeze budget defi cit with spending cuts, re- higher-cost producers such as forms to energy subsidies and a drive Russia and US shale drillers out of to raise revenues from taxes and priva- the market. Saudi Arabia produced tisation showed Riyadh was expecting 10.33mn bpd in November, up lower revenues. by 830,000 bpd since the end “We don’t see any changes to Saudi of last year, according to data Arabia’s oil policy - in the context of oil compiled by Bloomberg. Saudi production,” said Amrita Sen, chief oil Arabia forecast revenue to decline analyst at consultancy Energy Aspects. to 513.8bn riyals ($137bn) in 2016 “The budget changes suggest they from 608bn riyals this year. are expecting oil prices to stay low for Revenue from oil sales in 2015 some time and the reforms are a small Saudi appears willing to continue tolerating cheap crude to defend market share and wait for the market to balance without cutting supplies. In one of the strongest will drop 23% to 444.5bn riyals, step towards addressing that.” signals that the kingdom will stay the course despite the impact on its finances, Saudi Aramco’s chairman Khalid al-Falih said it could outlast others. according to the Finance Ministry The 2016 budget and reforms an- statement. nouncements marked the biggest belt-tightening. In the past the country insight into the kingdom’s oil thinking, market strategy. Riyadh was the driv- The Finance Ministry did not dis- “The 2016 budget is the first shake-up to economic policy in the has spent lavishly on health, education Falih has long been considered a possi- ing force behind Opec’s shift in policy close the average oil price assumed in budget in more than 10 years kingdom for over a decade and aimed and infrastructure in diffi cult times ble successor to Saudi Oil Minister Ali last year, rejecting calls to reduce out- its 2016 budget calculations but econ- that is based on an oil price of to cut the government defi cit to 326bn knowing that oil prices will be sup- al-Naimi. put to support oil prices that are trad- omists estimated it was about $40 a less than $50 a barrel for Brent. riyals, down from 367bn riyals or 15% portive,” said Asim Bakhtiar, head of re- His appearance at the news confer- ing this month at their lowest since barrel and saw crude production re- This signals that the Saudis are of gross domestic product in 2015. search and investment advisory, Saudi ence with two other ministers, during 2004. It chose instead to defend market maining high at above 10mn bpd next ready for the new market reality Next year’s budget projects spending Fransi Capital. “If oil has entered a down which he shared his views on oil prices share against higher-cost-rivals. year. in 2016,” Sfakianakis said. The of 840bn riyals, down from 975bn riy- cycle then belt-tightening will prevail.” and market assessment, was seen as a Falih said the policy had borne fruit. “We do not see Saudi Arabia... cut- Saudi 2016 budget is estimated als spent in 2015. Falih, who is also the health minis- possible signal he could be named oil “Over the last year we have seen ting production in order to support to be based on a $37 a barrel for The government also said it was hik- ter, became chairman of Aramco, the minister when al-Naimi, 80, eventu- the down cycle in the oil markets have upward movement in prices. So far, Brent oil prices and an annual ing prices for fuels, water and elec- world’s biggest state energy fi rm, ear- ally retires. a signifi cant impact on both supply Saudi policy of gaining market share average export level of 7.2mn tricity as well as gas feedstock used by lier this year after more than 30 years in The Organization of the Petroleum and demand. Supply has plateaued in has worked, with lower prices under- bpd of crude oil, he said. The 2015 industry, as part of politically sensitive the company. Exporting Countries (Opec) rolled over North America and started declining cutting both Opec and non-Opec com- budget was based on a Brent subsidy reforms. As one of one of a handful of Sau- its year-long strategy of pumping at by signifi cant amounts and we expect petitors in key markets,” wrote analysts price of $47 a barrel and the same “Saudi Arabia can either spend its di fi gures whose views are closely will in its December 4 meeting, raising that to continue or perhaps accelerate at Jadwa Investment, a leading Saudi level of crude exports, he said. way out of the current scenario or start watched by traders and analysts for any the stakes in its survival-of-the-fi ttest in 2016,” he said. fi nancial fi rm, in a note yesterday. Iran adding to a global oil glut dims recovery hopes next year

Bloomberg hedge fund that focuses on energy. New York “The supply and demand outlook is negative.” Speculators’ long positions nvestors are losing faith in an in WTI fell by 3,198 contracts to oil-price recovery next year as 259,181 futures and options, CFTC IIran prepares to add more crude data show. Shorts rose 3.4% to to a global glut. That’s good news 172,258, just short of the all-time for American drivers who have en- high reached earlier this month. joyed the lowest gasoline prices in Net-long positions fell 9.2% to six years. 86,923. Hedge funds reduced bets on ris- Money managers cut their bull- ing prices to a three-month low and ish bets on Brent crude during the kept bearish wagers near a record period. Speculators reduced net- high in the week ended December longs 3.4% to 166,034 contracts, 22, data from the US Commodity according to data from ICE Futures Futures Trading Commission show. Europe. Oil fell to the lowest level in more In other markets, net bearish than six years on December 21 amid wagers on US ultra low sulphur diesel speculation suppliers from the decreased 5.3% to 39,172 contracts. Middle East to the US will exacer- Diesel futures slipped 5.2% in the bate a glut as they fi ght for market period. Net bullish bets on Nymex share. Iran, which expects sanc- gasoline slipped 9.7% to 21,385 con- tions over its nuclear programme to tracts as futures declined 5.6%. be lifted by the fi rst week of Janu- Iran’s priority is to boost shipments to pre-sanction levels, says Oil Minister WTI climbed to a three-week ary, has secured customers for its Bijan Namdar Zanganeh. high on December 24 after US crude planned supply expansion, an Ira- inventories declined and drillers nian oil offi cial said this month. US gasoline slipped to 1.998 a gallon on Iranian Oil Co, according to the idled rigs. Stockpiles should move pump prices have followed crude December 20, the fi rst time below Shana news agency. higher in January because Gulf lower, giving consumers extra mon- $2 since 2009, according to Heath- The Iranian government plans to Coast refi ners curb deliveries at the ey to spend during the holidays. row, Florida-based AAA. add 500,000 bpd of exports within end of the year to reduce local taxes, “There’s every reason to be Iran’s priority is to boost ship- a week of the removal of sanctions Kilduff said. bearish,” said Tom Finlon, Jupiter, ments to pre-sanction levels, Oil and 1mn within six month, said Ja- “I wouldn’t be surprised if we Florida-based director of Energy Minister Bijan Namdar Zanganeh vadi, who is also the country’s dep- start the year with an initial run to Analytics Group. “As we approach said, according to the state-backed uty oil minister. $40 before running out of steam,” the end of December, there’s more IRNA news agency. The nation sees “There are fundamental ele- Kilduff said. “The fi rst half of the attention being paid to the expected the potential for further oil-price ments that will put downward pres- year will be tough. I think we should return of Iranian barrels adding to declines as it plans to boost supply sure on the market during the new make new lows and drop below $30 the glut in supply.” amid a lack of Opec consensus, said year,” said John Kilduff , a partner at when the refi nery maintenance sea- The average price of regular US Roknoddin Javadi, head of National Again Capital, a New York-based son begins.” Gulf Times 4 Wednesday, December 30, 2015 BUSINESS

An investor watches his stocks at a securities exchange in Shanghai. That piggy-back strategy, while completely legal, is magnifying the challenge for Chinese policy makers as they try to improve the international image of a $7.2tn stock market where valuations often appear detached from economic fundamentals. Global money managers cut their holdings of mainland shares by about 5% in the first nine months of 2015, even after authorities made it easier than ever to bring money into the country. Dancing with wolves: Why Chinese traders love manipulated stocks

Amateur traders try to ride coattails of a professor of finance at the Beijing-based levied a 19.9mn yuan fine in September on Ye In a response to questions from Bloomberg Kai, a 27-year-old consultant at a financial firm in market manipulators; regulators are Cheung Kong Graduate School of Business. Fei, one of the country’s most well-known hedge News on December 18, CSRC spokesman Zhang Beijing, sold his personal equity holdings in June stepping up eff orts to fight market abuses “This isn’t the first time authorities have tried to fund managers, after saying he manipulated Xiaojun said that data on market manipulation in part because he thinks amateur traders will crack down, but in terms of scale it is large. This five stocks including Beijing Xinwei Telecom cases for the second half will only be compiled struggle to make much money in shares where Bloomberg is good for the stock market.” Technology Group Co. The developer of network at year-end. He said the CSRC has teams at Zhuang Jia are active. Beijing The Shanghai Composite Index yesterday rose equipment has a market value of 75bn yuan, on branches across the country who monitor “It’s possible for individual investors to enjoy 0.9% at the close. par with Alcoa Inc, the biggest US aluminium for signs of misconduct, including stock some soup if they follow the Zhuang Jia, but Gan says the most common form of manipulation producer. manipulation, without providing specifics. they can never eat the meat in the end,” he said. The way Liu Xiaozhen tells it, the only way to in China is the classic “pump and dump” scheme, Ye, the general manager at Yitian Investment Market manipulation in China is probably China’s state-run media began drawing truly understand China’s stock market is by where the perpetrators establish positions in Co, said he used “inappropriate methods” when widespread in part because the market is still in attention to the manipulation problem late learning the tactics of traders who routinely a stock and promote it to outsiders, seeking to trading shares in May and June, according to the early stages of development, according to last year, with a November article in the off icial manipulate it. inflate the share price before selling out. In some a letter to shareholders published on Yitian’s Rui, the finance professor at CEIBS in Shanghai. Xinhua News Agency saying the market had “We need to dance with the wolves,” says Liu, cases, multiple manipulators team up to trade website in September. Ye couldn’t be reached for He compared the country to the US during the moved into a “New Zhuang Jia Stocks Era.” The the chief executive off icer at Qingdao Langwang shares among themselves, creating an illusion comment and a Yitian employee, who wouldn’t 1920s, when “pump and dump” syndicates were piece warned that manipulators were using Investment Consulting Co, a producer of online of growing investor demand that’s designed give his name, declined to comment when common and the investing public often tried to Internet posts and online messaging services to video seminars for stock investors in China’s to attract momentum-chasing speculators, contacted by Bloomberg News. benefit from the resulting share-price gains. drive up share prices before dumping holdings eastern Shandong province. according to Oliver Rui, a professor of finance This year’s most high-profile target of China’s Today’s mentality in China also has echoes of on individual investors. For a one-time payment of 6,800 yuan ($1,050), and accounting at China Europe International manipulation crackdown was Xu Xiang, who 1990s Japan, where reports of manipulation Policy makers stepped up their rhetoric against Liu’s firm provides a crash course on stock Business School in Shanghai. ran some of the country’s top-performing routinely showed up in financial tabloids and manipulators after a crash this summer that manipulators in China: how to anticipate their China’s market is particularly vulnerable hedge funds as the head of Zexi Investment in libraries were stocked with books on how to erased $5tn of stock-market value. The CSRC targets, how to spot their trades and - most to such schemes because it has so many Shanghai. Xu was detained in November and trade in manipulated shares, known locally as organized a special probe into the issue importantly - how to profit by following in their unsophisticated investors, Gan said. Individuals police froze $1bn of shares in listed companies “shite kabu.” during the height of a selloff in July, spurring tracks. The three-month class is one of at least account for more than 80% of trading on tied to the money manager. Eff orts to contact While the popularity of piggy-back trades speculation that authorities were seeking to 100 across the country that promise insight into mainland exchanges, while one university him for comment have been unsuccessful. has diminished in the US and Japan, those deflect blame for a bust that many analysts Zhuang Jia, a local term for market manipulators survey showed that more than two-thirds of the While the CSRC doesn’t publish estimates markets are by no means free of concerns say was fuelled by lax regulation of leveraged that portrays them as holding the upper hand. nation’s new investors at the end of 2014 hadn’t on the prevalence of stock manipulation, it about manipulation. Spoofing, when a trader investors. The courses, along with hundreds of books on received a high-school level education. does release figures on manipulation cases places orders they have no intention of filling Finding scapegoats is probably one goal of the the subject, show how law-abiding investors are While manipulation cases in developed pursued by regulators. The latest data show to move markets in their favour, has come crackdown, but it’s also part of the government’s adapting to a market that even China’s state- countries like the US often revolve around 31 investigations in the first half, versus 15 under worldwide scrutiny this year as the rise of long-term eff ort to professionalize the stock run media acknowledge has become rife with penny stocks with tiny market values, Chinese for all of 2014 and eight in 2013. In October, computerized trading made the bait-and-switch market and lure more international investors, manipulation. authorities have punished traders for targeting regulators said they had prosecuted 12 market scheme more eff ective. according to CEIBS’s Rui. If China wants to Instead of avoiding suspected Zhuang Jia multibillion dollar companies this year. manipulation cases with fines and confiscated Of course, not all individual investors in China achieve its ambition of turning the yuan into targets, many of the nation’s 97mn individual The China Securities Regulatory Commission gains totalling 2bn yuan. are chasing after manipulated stocks. Zhang a global currency, policy makers will have to investors actively seek them out - hoping to ride convince overseas fund managers they can the artificial gains in manipulated shares and sell keep market abuses to a minimum. before they inevitably collapse. “It’s diff icult for foreign investors who manage “If you want to make a quick buck from the funds to justify jumping in” when the stocks stock market, you’d better look for stocks with they buy could be subject to manipulation, said manipulators,” explains Chen Yifeng, a 37-year- Andy Xie, an independent economist in Hong old accountant at a state-owned company in Kong who previously worked for the World Bank Shanghai who has about 100,000 yuan of his and Morgan Stanley. personal portfolio invested in local shares. “You Changing investor attitudes will be diff icult. just need to pull out faster than them.” While the CSRC says its public announcements That piggy-back strategy, while completely on manipulation fines and investigations help legal, is magnifying the challenge for Chinese educate investors on the dangers of Zhuang policy makers as they try to improve the Jia, a search on online bookstore Dangdang. international image of a $7.2tn stock market com returns more than 200 titles on how to find, where valuations often appear detached follow and ride the coattails of stock-market from economic fundamentals. Global money manipulators. managers cut their holdings of mainland shares At Langwang, the investment seminar firm by about 5% in the first nine months of 2015, whose name translates to “wolf king,” students even after authorities made it easier than ever learn to track rapid price and volume changes to bring money into the country. that deviate from the broader stock market. Chinese securities regulators are hoping to Those are tell-tale signs of manipulation, tackle the problem at its source. Over the past according to Liu, the firm’s CEO. He says the best few months, they’ve escalated a crackdown on way to piggy-back on the gains is by building a market manipulators, ensnaring some of the “trial” position with a stop-loss order designed nation’s most high-profile money managers and to limit damage if the stock reverses. If it rallies announcing more than 2bn yuan of fines and at least 5%, Liu suggests adding to the position. confiscated gains. That comes after authorities “Stocks backed by major players and more than doubled the pace of manipulation manipulators tend to perform much stronger,” investigations in the first half from a year earlier. Liu said. “The regulatory crackdown will The regulatory focus on manipulation “is a An employee holds 100 yuan banknotes at the Bank of China Hong Kong headquarters in Hong Kong. If China wants to achieve its ambition of certainly have some impact, but market long overdue policy measure,” said Gan Jie, turning the yuan into a global currency, policy makers will have to convince overseas fund managers they can keep market abuses to a minimum. manipulation will continue. It’s inevitable.” Gulf Times Wednesday, December 30, 2015 5 BUSINESS

China bond defaults seen BlackRock’s ardent push into rising as borrowing hedge funds faces setback costs climb Bloomberg The push isn’t solely about client Bloomberg Boston demand. BlackRock’s $114bn alterna- Beijing tives business, which also includes pri- vate equity, infrastructure and funds of es, he runs the biggest asset hedge funds, is among its most lucra- hinese corporate defaults management fi rm the world has tive. Fees of 1 to 2% on assets and up will likely spread next Yever seen. But right now, Lau- to 20% for performance - standard for Cyear as borrowing costs rence D Fink has a little hedge-fund most hedge funds - far outstrip aver- climb, fi nancial companies sur- problem. age expense ratios of about 1.1% and veyed by Bloomberg said. Fink’s BlackRock, the $4.5tn behe- 0.35% for its open-end mutual funds All 22 bond traders, analysts moth known for its mutual funds and and iShares exchange- traded funds, and others surveyed forecast ETFs, threw in the towel on its lack- according to data compiled by fund re- China’s corporate default rate lustre macro hedge fund last month - a search fi rm Morningstar. will rise in 2016, while over 70% humbling capitulation that stunned As a whole, alternative funds con- expect the extra yield on cor- the investing world. tribute a disproportionate amount to porate notes to increase. The While hedge funds represent only a BlackRock’s fee income. They account premium on fi ve-year AA rated tiny fraction of BlackRock’s total assets for 8% of revenue and make up just 3% company securities over gov- under management, the setback none- of assets. ernment notes has risen to 173 theless underscores the upheaval con- That part of the business “contrib- basis points after plunging to vulsing the broader hedge-fund indus- utes to profi tability at a much higher an eight-year low of 169.2 basis try, as well as the particular challenges level,” said Macrae Sykes, an analyst at points last month. facing BlackRock as Fink tries to attract Gabelli & Co. More fi rms in China are strug- hedge-fund money - and the hefty fees In the previous two decades, Black- gling to repay debt amid the that come with it. Rock’s hedge-fund model was based in worst economic slowdown in The turbulence threatens to hold part on allowing its long-only manag- a quarter century. The number back BlackRock’s ambitious push into ers to start alternative strategies. After of listed companies with more hedge funds, which form a key part of Carl Eifl er was named the head of its debt than equity has jumped to the alternatives business that Fink, the direct hedge-fund business in 2013, 913 from 705 in 2007, according fi rm’s chief executive offi cer, rapidly BlackRock has focused on creating big- to data compiled by Bloomberg. built up through a series of acquisi- ger funds. It has also fi lled gaps by add- Three Chinese manufactur- tions. And while BlackRock said the ing event- driven and credit strategies. ers said last week that they lack macro fund closure will have a minimal Some have been top performers. The funds to repay bonds due this impact on its business, such missteps $1.8bn European hedge fund has gained month. do little to change a long-standing per- 27.2% through October, the investor Earlier in December, pig iron ception that traditional “long-only” document showed. That’s more than producer Sichuan Shengda shops lack the wherewithal to compete quadruple the return for HFRI West- Group became at least the sev- with their more glamorous counter- ern/Pan Europe Index. enth Chinese fi rm to renege on parts - regardless of overall perform- The $2.1bn fl agship global fi xed-in- local debt obligations this year. ance. come fund, called Obsidian, has out- “There have been quite a “In terms of its ability to grow the paced a comparable HFRI benchmark number of bond defaults re- business, it’s something you would have The BlackRock headquarters building in New York. The US firm, which now oversees $32bn in hedge-fund assets, quietly in four of the past fi ve years. cently and defaults will become liked to see prosper,” said Rory Callagy, became a big player in the industry after acquiring Barclays Global Investors in late 2009. “BlackRock is one of the few long- normal in the near future,” ac- a senior credit offi cer at Moody’s In- only fi rms that has succeeded” in cording to a December 24 re- vestors Service. More broadly, “poor Baupost Group, it’s still a relative small vestments and has put more emphasis Ascent fund was on course for its worst building a hedge-fund business, said search note from Hua Chuang performance by hedge funds this year, fry when it comes to the individual of- on targeting consultants that specialize ever year, tumbling 9.4%. The fund, Don Steinbrugge, managing partner of Securities written by analysts in a market environment in which they ferings in its long and varied hedge- in the business. which had $4.6bn in assets just two Agecroft Partners. led by Qu Qing. “Investors need were designed to shine, may lead to a fund lineup. BlackRock’s own fi gures suggest it years ago, has shrunk to less than $1bn, Despite those successes, traditional to watch out for companies ex- slowdown in fl ows into funds and chal- Of the 17 strategies listed in an inves- has kept pace with the broader hedge- a person familiar with the matter said asset managers like BlackRock may still posed to industries in which the lenge growth across the industry.” tor document obtained by Bloomberg, fund industry in attracting client assets in November. face an uphill battle winning over skep- government is trying to cut ex- BlackRock, which now oversees a dozen of its funds still managed less in recent years. Some of its strategies McCombe, who said the macro fund tical hedge-fund investors. cess capacity.” $32bn in hedge-fund assets, quietly than $1bn as of October. have also been standouts. But bringing was a “huge disappointment,” declined Long-only shops have traditionally China’s government pledged became a big player in the industry One example is BlackRock’s long- in more money may be a challenge with to specify how BlackRock would fi ll struggled to win over clients because this month to off er more sup- after acquiring Barclays Global Inves- short credit pool. When it started in the industry itself bracing for more re- that gap in its multi-strategy lineup. of nagging worries that they don’t have port for companies to upgrade tors in late 2009. The deal, which made 2013, the fund set out to gather as much demptions. Many investors and bankers now say the expertise to consistently win by technology and equipment, and BlackRock the dominant provider of as $3bn. It managed about $554mn af- Unexpected market shocks this year, the industry could see outfl ows this shorting, a common practice used to reduce debt with “innovative fi - exchange-traded funds, also helped to ter declining 3.6% through October. such as the devaluation of the Chinese quarter after the weakest third-quarter betting against securities, according nancial policies.” boost its hedge-fund assets by $13.8bn, Mark McCombe, who was named to yuan in August, has led to steep de- infl ows in six years. to Jason Kephart, an alternative funds Undervalued property-related more than doubling its business at the co-lead BlackRock’s alternatives arm in clines for some macro fund managers Fink, 63, has argued that there’s a big analyst at Morningstar. bonds sold in China’s domestic time. June, said the fi rm can still do more to and caused investors to lose patience opportunity in alternative investments And even if performance holds up, market will be a good bet in the The New York-based fi rm currently attract clients. even with funds run by marquee funds as traditional long-only clients look for there’s the risk they won’t be able to coming year, 50% of the respond- has about 30 hedge-fund strategies and “We defi nitely noticed as a fi rm we like Fortress Investment Group and diff erent ways to bolster returns. reward those who run in-house hedge- ents said. Some 23% said bonds says it’s committed to adding more of- were very broad, we had some excep- Bain Capital. A sudden turnabout in “This is one of the big reasons why fund strategies enough to keep them from overcapacity industries ferings to give clients the broadest array tionally good product, but it wasn’t the junk bond market has only added to we are building out our infrastructure from being poached or setting out on can off er good value in 2016 and of options - even after the macro fund’s necessarily where we were seeing most jitters in the past two weeks. platform, continue to build out our their own. another 23% prefer notes from failure. While BlackRock’s size makes of the asset fl ow,” he said in an inter- BlackRock’s own macro fund was hedge fund platform, our real estate Generally, “what really trips up long- small- and medium- enterprises. it one of the industry giants alongside view. McCombe said he’s developed a upended by the turmoil. platform,” Fink said during a third- only managers that try to get into it is Most of the respondents see the likes of Viking Global Investors and dedicated sales team for alternative in- Before it was shut down, the Global quarter earnings call in October. the shorting,” Kephart said. the highest risks in companies in the coal and steel sectors. Si- nosteel Co, a state-owned steel trader, earlier this month post- poned a bond payment a third Hedge fund copycats draw record money as clients hunt for safety time. Winsway Enterprises Holdings, the Chinese coking- Bloomberg Investors’ interest is fueled by fears decline, can short sell a security to the year, according to data from Hedge and can often use a much wider coal importer, missed interest London that their traditional stock-and-bond make money in a falling market and Fund Research. spectrum of instruments to not only payment for the second time portfolios won’t be able to absorb borrow money to increase their bets About seven in every $10 invested in generate returns, but also manage risk,” in October on a debenture due shocks from market turbulence as like a hedge fund. Retail investors liquid alternative funds this year has said Bruno Schneller, chief investment 2016. Coal miner Hidili Indus- Funds copying hedge-fund strategies the US Federal Reserve prepares to can, through a broker or private bank, gone to European funds, boosting off icer at fund of funds group try International Development to make money are on track to record increase interest rates for the first time invest $1,000 or even less. Hedge funds assets to €344.5bn. Skenderbeg Alternative Investments. didn’t repay dollar- denominat- their best ever net inflows this year in almost a decade on Dec. 16 and stock typically require a minimum initial “The advent of not only low- and Research firm Preqin estimates more ed bonds due November 4. as investors look for ways to escape market valuations hover near record investment of $1mn. zero-interest rates, but now negative than 100 liquid alternative funds have Chinese investors are predict- volatile markets. highs. Capital flows are stronger in Liquid alternative funds received interest rates from the ’safer’ Northern been started so far this year. ing a record-long rally in bonds These funds, known in the asset Europe, where investors are also trying about $110bn in the first 10 months of European economies are drivers of the While the universe of liquid alternative- will end before mid-2016 and management industry as liquid to shield their assets from negative the year, 14% more than in the whole increase in interest among European investment managers is expanding debt securities will trail behind alternatives, charge lower fees than interest rates. of 2014 and exceeding the previous investors,” said Jeremy Beckwith, rapidly because they off er investors stocks the economy stabilises. hedge funds, allow investors to take “Investors are moving into liquid record of $106.6bn in 2013, according the director of manager research for the convenience of mutual funds and Fifteen of 22 fi xed-income trad- out money on a daily or weekly basis, alternative funds because they want to to data compiled by research firm Morningstar UK. “The flows in Europe the potential advantages of alternative ers and analysts surveyed by and provide better transparency on insulate their portfolios from market Morningstar. Total assets under took off in 2014 as the ECB adopted first investments, not all are created equal. Bloomberg said the rally of eight how exactly they make money. As swings and be able to take money out management have increased by a 10th quantitative easing and later negative Their proliferation has also attracted consecutive quarters will end a result, both retail investors and if anything goes wrong,” said Peter to about $715bn this year after stock- rates.” scrutiny from regulators, who are before June 30. institutions have poured money in the Laurelli, global head of research at market turmoil in China hit values, These “products may even require considering new rules to ensure China Securities Co expects funds, especially in Europe, helping industry tracker eVestment. the data show. By comparison, assets more due diligence than buying mutual funds’ migration into complex more defaults among both the them grow faster than the hedge-fund The open-end funds, typically designed managed by hedge funds increased by ’traditional’ hedge funds that have strategies doesn’t pose risks to the private-sector and state-owned industry. to provide protection during a market 1% to $2.9tn in the first nine months of years of demonstrable track records financial system. enterprises, according to a re- search note from the brokerage. No end to EM bond sale torpor as JPMorgan sees slide

Bloomberg putting projects on hold as China’s languish most in Asia and Latin Amer- constructive market backdrop for is- London economy grows at the slowest pace ica, while the area spanning central suance,” Weiler said by phone from in 25 years, Russia and Brazil struggle and eastern Europe, the Middle East London. “With the recent drop in oil with recessions, South Africa grapples and sub-Saharan Africa may witness a prices, it is also likely that we will see a op arrangers of emerging- with the lowest commodity prices this pick-up in off erings, said Stefan Weil- need for more issuance out of the Mid- market Eurobonds are readying decade and Turkey’s security situation er, the head of debt- capital markets dle East.” Tthemselves for another year of deteriorates. for the region at JPMorgan. Emerging-market Eurobond issu- shrinking business. “With that sort of backdrop, this As Turkey and Poland leave election ance dropped 27% in 2015 and was JPMorgan Chase & Co, the third- year was always going to be challeng- jitters behind in 2016, companies have the lowest since touching $270bn in largest organiser of bonds in euros and ing,” Adil Kurt-Elli, the head of debt scope to focus on refi nancing existing 2011, according to data compiled by dollars this year, expects governments capital markets for central and east- debt and revive investment plans, he Bloomberg. and companies in developing nations ern Europe and sub-Saharan Africa said. Brazil sold no sovereign debt abroad to cut issuance by 9% in 2016. HSBC at HSBC, said by phone from London. Sales of euro- and dollar- denomi- in 2015 as political turmoil drove yields Holdings, which topped the board by “There is little to suggest that we will nated bonds out of Poland were vir- to record highs, the data show. Presi- managing 10% of the off erings since see a diff erent picture in 2016.” tually wiped out during the past 12 dent Dilma Rousseff faces impeach- January, says depressed commodity Declining borrowing needs of gov- months, while those in Turkey fell by ment proceedings in Congress and a prices and geopolitical confl icts will ernments will act as an additional drag 70%, according to data compiled by corruption scandal that began at state- deter some borrowers, especially those on issuance. JPMorgan projects sov- Bloomberg. run oil giant Petroleo Brasileiro SA and in emerging Europe, Middle East and ereign redemptions will drop 38% to JPMorgan Chase & Co, the third-largest organiser of bonds in euros In Russia, where US and European has landed numerous executives and Africa, from raising cash. $27bn. and dollars this year, expects governments and companies in sanctions over the confl ict in Ukraine politicians in jail. The outlook is bad news for deal That, in turn, may steer a 22% de- developing nations to cut issuance by 9% in 2016 have largely blocked issuers from glo- The premium investors demand to managers who saw Eurobond sales cline in issuance out of emerging mar- bal capital markets, bond sales plunged own emerging-market debt over US plummet 29% in 2015 to a four-year kets to $65bn, the bank predicts. rushing to the market to lock in lower rise is unlikely to cause any acceleration 60% year to date. Treasuries widened 63 basis points low of $334bn, according to data from With expectations that the Fed- costs, according to Kurt-Elli. “In real in funding plans as this has been priced “In Turkey, Poland and Russia, this year to 417, on course for the big- JPMorgan. An increasing number of eral Reserve will increase interest rates terms, we will remain in an extremely into the market for some time.” where market activity was subdued gest annual increase since 2011, ac- borrowers in the developing world are only gradually, borrowers also won’t be low rates environment,” he said. “A rate Among corporate issuers, sales will this year, we expect to see a more cording to JPMorgan indexes. Gulf Times 6 Wednesday, December 30, 2015 BUSINESS

Aussie bonds gaining 45% over six years keep AAA allure

Bloomberg over four years, the nation’s 10-year and buoying demand for government Japan’s bond market gained 1.1% iron ore, the nation’s biggest export, climb along with those in the world’s Singapore yield of 2.69% is still about half a per- bonds, the Aussie dollar has rallied in 2015, headed for a 12th consecu- dropped about 42% this year. Invest- biggest market, he said. centage point more than similar-ma- 3.6% this quarter against the green- tive yearly gain as the nation faces ment in Australia’s mining industry “Australian bond yields normally turity Treasuries and 2.12 percentage back, bolstering confi dence among more than a decade-long deflation has declined 39% from its high in rise in tandem with US bond yields,” ustralia’s bonds rallied for a points more than equivalent German overseas investors. threat. 2013, the steepest decline in percent- Jolly said. “Now is not the right op- sixth straight year in 2015, bunds. “There’s still demand to buy the Australia’s winning run is still the age terms since the 1990s, based on portunity” in the local debt market, he Alonger than any other major de- Australia’s yields, the highest Australian currency and Australian longest among the rest of the 12 big- government data. said. Local 10-year yields will probably veloped debt market except Japan, and among the 10 countries ranked AAA by bonds,” said Kazuaki Oh’E, the head of gest developed debt markets, which Peter Jolly, the head of market re- climb about 60 basis points to 3.3% by investors say the nation’s AAA debt is all three major rating companies, are fi xed income at CIBC World Markets are the US, the UK, Italy, France, Ger- search at National Australia Bank Ltd, the close of 2016, he said. still appealing in the global hunt for proving too good to pass up as central Japan in Tokyo. “That has been the many, Spain, Canada, Belgium, the the nation’s biggest lender by assets, The latest Bloomberg surveys of yield. banks in Europe and Japan keep their case all year. It’s a good choice because Netherlands and Greece, based on says the bond market’s winning streak economists show investors will just Aussie debt returned 2.7%, rounding own benchmarks near zero as the US it’s AAA.” data compiled by Bloomberg. is over. about break even next year. They off a 45% gain since the end of 2009, raised its key rate by a quarter percent- Australia’s dollar has climbed about The South Pacifi c nation’s debt The RBA is probably fi nished cut- project the yield will be 3.15%, with based on Bank of America Corp Merrill age point to a range of 0.25% to 0.5% 4% against its Japanese counterpart market ranks No 12. ting, according to Jolly. the most recent forecasts given the Lynch indexes. this month. this quarter. Reserve Bank of Australia Gover- The Federal Reserve will probably heaviest weightings. An investor who Even after a rally in prices as the While a mining slowdown is limit- It traded at 72.65 US cents and nor Glenn Stevens cut interest rates keep pushing US rates higher in 2016, bought Tuesday would lose 0.6%, central bank cut interest rates 10 times ing economic growth Down Under ¥87.39 as of 5 pm yesterday in Sydney. twice in 2015 and bonds rallied as and Australia’s borrowing costs will based on data compiled by Bloomberg.

Dagong looking to hire, expand in Europe

Bloomberg comment on supervised enti- Beijing ties or on ongoing supervisory activities. “Dagong has made signifi cant hina’s Dagong Global investments in Europe and will Credit Rating Co is look- continue to do so in the coming Cing to hire in Europe as it years,” Guan said, without giv- expands operations and tries to ing details. “We would like to increase market share, according promote our own credit-rating to the fi rm’s chairman. methodologies, which are supe- The assessor, one of China’s rior to those adopted by our glo- top three credit-rating com- bal competitors. panies, will move its European This is a long march with high headquarters to Frankfurt from costs, so our market share won’t Milan very soon, and add staff rise sharply soon. But without to its offi ce of fewer than 20 em- Dagong’s eff orts, the world’s ployees, Guan Jianzhong said in credit-rating market is hopeless.” an interview. Guan has been a vocal oppo- The subsidiary, which has nent of methodologies adopted been making losses since it set by the world’s biggest grading up operations in 2012, will pro- companies, including Standard mote the company’s methods & Poor’s and Moody’s Investors and try to raise its “very small” Service. He published a booklet slice of the market, Guan said. in June, saying that foreign rat- He described as groundless a ing companies look at irrelevant report that the fi rm’s European factors to decide a bond’s risk A teller counts yuan banknotes in a bank in Lianyungang. China has scaled back eff orts to prop up the yuan after the International Monetary Fund included the currency in its unit is being probed by the Eu- and pay too much attention to Special Drawing Rights. ropean Securities and Markets historical default rates. Authority, adding that he isn’t Dagong caused a fl utter in aware of any checks by regula- 2013 when it cut the US’ rating to tors in the past 18 months. A- from A after President Barack His comments came after Obama signalled legislation Reuters reported last week that raising the federal debt limit. ESMA is investigating the sub- That was below the rating of sidiary on concerns that it may Botswana, which was graded A. Yuan crunch spurs major not be “fully compliant with” Dagong lowered Japan’s local-cur- local rules that prevent confl icts rency sovereign ratings to A- from of interest. A on December 17, and its foreign- In an e-mailed statement, currency grading to A from A+, banks to hoard abroad ESMA said that it doesn’t each with a stable outlook. China Dec offi cial PMI likely to show contraction Activity in China’s manufactur- the sector next year. “There were ing sector is expected to have some bright spots in the economy contracted for a fifth straight in December such as a continued month in December, a Reuters recovery in the housing market as China curbs outfl ows poll showed, likely consigning the and an improvement in auto world’s second-largest economy sales,” said Nie Wen, an analyst. Bloomberg to buy overseas assets denominated in is set for the biggest monthly loss since tal is also needed to off set ongoing do- to its slowest annual growth in a “But performances in these sec- Shanghai the currency. August. Savings in the Chinese currency mestic outfl ows, which are threatening quarter of a century. tors do not necessarily boost the The measures are aimed at making it in Hong Kong fell 15% this year to 854bn to destabilise the exchange rate and push The off icial manufacturing PMI above the 50-point level due harder for speculators to short the yuan yuan in October, according to latest avail- up borrowing costs amid the slowest Purchasing Managers’ Index (PMI) to contractions in other indus- hinese banks from Hong Kong in the off shore market, according to Na- able data, prompting lenders including economic growth in 25 years. is forecast to inch up to 49.7 from tries.” Vehicle sales in China have to London are selling a record tional Australia Bank. Bank of China (Hong Kong) to off er higher Financial institutions including the November’s 49.6, according to a rebounded after the government Camount of yuan-denominated “Given the attempts by Chinese au- interest rates to attract savers. PBoC sold 221bn yuan of foreign ex- median forecast of 27 economists cut taxes on smaller cars from certifi cates of deposit as China takes thorities to keep off shore interest rates In December, Agricultural Bank of change in November, a sign of capital in a Reuters poll. A reading below October 1. Off icial data on Sunday steps to curb outfl ows of the currency. high to increase the cost of shorting the China’s unit sold 63mn yuan of six- outfl ows, data showed last week. 50 points suggests a contraction showed Chinese industrial profits Sales jumped to an unprecedented yuan, this trend will probably continue,” month certifi cates of deposit in Hong The overnight Hong Kong Interbank in activity, while a reading above fell 1.4% in November from a year 66.1bn yuan ($10.2bn) this month, data said Becky Liu, Hong Kong- based senior Kong, while China Construction Bank Off ered Rate for borrowing yuan re- indicates an expansion on a earlier, marking a sixth consecu- compiled by Bloomberg show. rates strategist at Standard Chartered. Corp’s London subsidiary issued 100mn corded its biggest-ever three-day in- monthly basis. tive month of decline. That comes after Hong Kong’s pool of “The depreciation expectations have yuan of three-month securities. crease last week, rising 458 basis points The off icial PMI factory reading In a bid to prevent a sharper off shore yuan savings, the world’s larg- made it increasingly diffi cult for banks to “CDs can help banks raise a lot of to 6.55% last week. will be released on Friday along economic slowdown, Beijing has est, shrank to the smallest in two years, get funds from the retail market. Coupled money in a relatively short period of Its year-to-date average was 3.22%, up with the off icial services PMI. rolled out a series of stimulus and Deutsche Bank said the currency’s with higher interbank fi nancing costs, time,” said Jack Yang, head of the yuan from 2.2% in 2014. The comparable rate Analysts expect only a mar- measures and monetary policy depreciation pressures are weighing on commercial banks now have to turn to business division at Bank of China (Hong in Shanghai was 1.82% last week. ginal improvement in the vast easing over the past year and ana- deposits. CDs to lock in stable and relatively long- Kong). “Compared with selling yuan “In the past, banks could attract de- manufacturing sector in Decem- lysts expect further steps in 2016. The Chinese government has in the term funding.” bonds off shore or attracting deposits posits in the retail market, but the yuan ber from November, when activity China’s economic growth is past month imposed restrictions on yuan China has scaled back eff orts to prop up from the retail market, it will continue depreciation expectations have made it fell to a three-year low. expected to cool from 7.3% in outfl ows, including ordering a halt to the yuan after the International Monetary to be the preferred way to raise funds for very costly to do so because fewer people Chronic overcapacity, sluggish 2014 to 6.9% this year, the central off shore banks borrowing from domestic Fund included the currency in its Special off shore Chinese lenders.” want to hold the Chinese currency now,” demand at home and abroad bank said in a recent work paper, markets through bond repurchases, and Drawing Rights on November 30. The The yuan’s fading fortunes challenge said Raymond Yeung, Hong Kong-based and deflationary pressures are its slowest pace in a quarter of a suspending new applications in a pro- yuan traded in Hong Kong has retreated President Xi Jinping’s push to broaden senior economist at Australia & New expected to continue to weigh on century. gramme that allows domestic investors 1.8% since then to 6.5517 a dollar and global use of the currency. Foreign capi- Zealand Banking Group. Malaysia winners from ringgit fall look risky to top fund

Bloomberg ing debts at a state-run company, the The technology stock index dropped exports that was the most since April Kuala Lumpur currency has rebounded 2.4% since 0.4% in Kuala Lumpur, led by Inari, 2014. the end of September to be the second- which declined 1.6%. “Earnings-growth momentum of best performer in Asia as political con- Malaysia’s currency is “underval- local technology exporters will out- iding out the slump in the Ma- cerns receded. ued” and may have turned a corner pace the global industry as a whole laysian ringgit by buying tech- “The ringgit reversal is a big risk,” said as the potential resolution of debts at over the medium term,” said Kong, the Rnology stocks has lost its allure Wong, whose Areca EquityTrust Fund 1Malaysia Development lifts the over- most accurate analyst for at least three to one of the nation’s top-performing has beaten 98% of peers over the past hang for investors, according to a re- technology stocks tracked by Bloomb- funds. three years with a 13% return. “At cur- port from Affi n Hwang Capital. 1MDB, erg. Every 1% drop by the ringgit versus Danny Wong Teck Meng, the chief rent prices, I will not be buying further.” which drew criticism from lawmak- the dollar boosts profi t for the compa- executive offi cer of Areca Capital, said Kuala Lumpur-based Wong has ers for accumulating 42bn ringgit of nies he covers by 3 to 5%, he said. he sold all his technology shares in the bought power plant builder Pestech debt in less than fi ve years, announced Shares have already priced in all past month after the equities started International Bhd. and information $2.3bn of asset sales in November, the good news, said Ang Kok Heng, to look expensive and the ringgit re- and technology training provider Pre- helping cut the country’s risk of de- chief investment offi cer at Phillip bounded. The Bursa Malaysia Technol- stariang Bhd., while he’s also avoiding fault by the most in an quarter for four Capital Management, which manages ogy Index has surged 52% this year to oil and gas stocks. years. $630mn. be the best-performing industry group Inari Amertron, which has the big- Technology companies with over- The Malaysian technology gauge’s on the nation’s benchmark gauge as gest weighting on the technology in- seas earnings will remain a bright advance this year is 22 times the gain the falling currency boosted the value dex, has soared 84% this year to trade spot next year as the ringgit weakness by the MSCI All-Country World In- of exporters’ overseas earnings. at 5.3 times net assets. A 5% drop in the persists and demand for semiconduc- formation Technology Index, while The technology index trades at twice ringgit versus the dollar boosts profi t tor components increases, says Kong the country’s broader gauge has fallen net assets, the highest level in eight for the semiconductor manufacturer Heng Siong, a top-ranked analyst at 6.7%. Malaysian ringgit banknotes of various denominations are arranged for a years and 13% pricier than the FTSE by 5.9mn ringgit ($1.4mn), accord- RHB Capital in Kuala Lumpur. “We are not buying anymore at photograph in Tokyo. While the ringgit has tumbled 19% this year amid a plunge Bursa Malaysia KLCI Index. While the ing to company fi lings. Malaysian Pa- Malaysian shipments of electronic present because prices have already in crude and a scandal involving debts at a state-run company, the currency has ringgit has tumbled 19% this year amid cifi c Industries, the second largest, has products surged 23% in October, help- run up,” Ang said by phone in Kuala rebounded 2.4% since the end of September to be the second-best performer in a plunge in crude and a scandal involv- jumped 115% and is valued at 2.1 times. ing drive a 17% gain in the nation’s Lumpur. “It’s expensive.” Asia as political concerns receded. Gulf Times Wednesday, December 30, 2015 7 BUSINESS EM assets remain under pressure Tech giants Microsoft, Reuters with bourses in Kuwait slipping London some 0.8%. However, Russian rouble stocks traded higher, while indexes in Emerging market assets mainland China ended the day remained under pressure in firmer after the central bank IBM vie for China smog the final days of 2015 with vowed to maintain reasonable stocks extending losses credit growth and keep the yesterday as Saudi Arabia’s yuan stable. budget announcement China’s yuan briefly touched weighed heavily on its bourse a 4-1/2 year low due to strong while many currencies also year-end dollar demand before weakened. recovering again while Russia’s forecasting business MSCI’s broadest emerging rouble weakened 0.5% against market index slipped 0.2% in its the dollar, its fourth straight Reuters second straight day in the red session in the red. Beijing and is on track for an annual “In recent days we have been loss of more than 16% though seeing pretty big moves again trading remained thin in many in the rouble to new record lows ir pollution in China could be big markets. as we move to year end,” said business. Two of the world’s larg- Gulf markets racked up some of Nomura’s Tim Ash, adding this Aest technology fi rms, IBM and the steepest losses on the day was partially due to the rouble Microsoft, are vying to tap the nascent, despite oil prices stabilising. catching up with the decline in fast-growing market for forecasting air Saudi Arabia’s bourse tumbled oil prices. quality in the world’s top carbon emit- more than 3% in early “But I think it is also recognition ters. trading after the government by Moscow that 2016 could Bouts of acrid smog enveloping Bei- announced its 2016 budget actually be a much more jing prompted authorities in the Chinese late on Monday which included diff icult year for the Russian capital to declare two unprecedented spending cuts, rises in fuel economy than had hitherto “red alerts” this month - a warning to prices, reforms to energy been assumed.” the city’s 22mn inhabitants that heavy subsidies and a drive to raise In fellow oil producer pollution is expected for more than three revenues from taxes and Kazakhstan, the tenge days. privatisation. stumbled almost 2% lower Such alerts rely on advances in pollu- “The 2016 budget ... marked the against the dollar in a third day tion forecasting, increasingly important biggest shake-up in economic of losses. for Communist Party leaders as they policy for over a decade and Across central and eastern seek improvements in monitoring and suggests that the government Europe, the Romanian leu hit managing the country’s notorious smog is not counting on a major its weakest level in nearly two in response to growing public awareness. recovery of oil prices any time years against the euro due to Offi cial interest has also been boosted soon,” BNY Mellon analysts year-end import transactions by China’s preparations to host the Win- wrote in a research note. while the forint also weakened, ter Olympics –Beijing’s smog is worse in The move weighed on other resuming last week’s slide the colder months – in 2022. stock markets in the region, following gains on Monday. “There is increasing attention to the air quality forecast service,” said Yu Zheng, a researcher at Microsoft. “More and more people care about this infor- mation technology.” A rudimentary forecast was pioneered by Dustin Grzesik, a US geochemist and former Beijing resident who cre- ated Banshirne.com, a free website and smartphone app, in 2013 to predict clean Meng Zhang, chief meteorologist of IBM Research in China, talks about graphics showing the company’s smog forecasting system air days using publicly available weather called the ‘Green Horizon’, at its research off ice in Beijing. Two of the world’s largest technology firms, IBM and Microsoft, are vying data on wind patterns. to tap the nascent, fast-growing market for forecasting air quality in the world’s top carbon emitters. “If you can predict the weather, it only takes a few more variables to predict air ing real-time levels of PM2.5 – airborne jing, to do forward planning and scenario nology, which can also help predict the quality,” said Robert Rohde of Berkeley particulate matter under 2.5 microns in modelling ahead of the games. availability of sunlight. Earth, a US-based non-profi t that maps diameter that can penetrate deep into the For its part, Microsoft has signed Microsoft has created a website called China’s real-time air pollution. “Most of lungs – in 2012, after denouncing the US up China’s environment ministry, and Urban Air and a smartphone app with a the time pollutant emissions don’t vary embassy for publishing its own real-time the environmental protection bureaus 48-hour forecast for cities across China, very rapidly.” monitoring data on Twitter. in Fujian province and Chengdu, the while the China Open tennis tournament Now, advances in “cognitive comput- IBM’s fi rst client was the city of Bei- capital of the southwestern province of put two-day IBM pollution forecasts for ing” – machines programmed to improve jing’s environmental protection bureau, Sichuan. parks across Beijing on its public WeChat modelling on their own – allow more so- which bases its colour-coded pollution Outside China, IBM has also signed social messaging account. phisticated forecasting software to pro- alerts on the technology. deals for air quality modelling with Del- But there are still kinks to work out. vide predictions for the air quality index The company launched a “Joint Envi- hi, one of the world’s most polluted cit- The latest version of Microsoft’s up to 10 days in advance using data on ronmental Innovation Centre” - staff ed ies, and Johannesburg. iPhone app lacked the forecasting func- weather, traffi c and land use, as well as by government and IBM scientists - with “We should be able to use the same tion advertised, which the company real-time pollution levels from govern- the bureau earlier in December, allowing base system and do air quality forecast- blamed on a soon-to-be-fi xed bug, while ment monitoring stations and even so- offi cials to better model pollution reduc- ing in diff erent parts of the world,” said during a recent “red alert,” when the air cial media posts. tion scenarios during the worst episodes. Brad Gammons, the business leader be- was considered hazardous and schools Forecasts can help governments plan Still the municipal government only hind the IBM initiative, which the com- were shut, the China Open IBM-based when to close schools and airports, re- makes public a 24-hour forecast on its pany calls ‘Green Horizons’. forecast recommended “light exercise”. strict vehicles or postpone sporting website, meaning residents aren’t able “With the machine-based learning we And while other tech giants, such as Chi- events, and also decide which polluting to see for themselves when a “red alert” can do it very quickly.” na’s Alibaba, currently remain on the side- factories to shut down temporarily. may be due. The two tech rivals aren’t just com- lines, Air Visual, a crowd-sourced start-up Both Microsoft and IBM secured their The environmental bureau’s monitor- peting over government clients. Business pollution monitoring platform based in fi rst government clients last year after ing centre did not respond to a request clients - in particular renewable power Beijing, is already giving IBM and Microsoft developing their respective pollution for comment. generation companies - are another tar- a run for their money, using “deep machine forecasting technologies at their China- IBM has also signed a deal with get, along with consumers. learning” to provide its own free three-day based research labs. Zhangjiakou, which will jointly host the Already more than 30 solar farms in forecasts for cities across the globe through Chinese authorities only began releas- 2022 Winter Olympics alongside Bei- China are using IBM’s forecasting tech- its website and smartphone app. Sensex climbs; rupee weakens

Asia markets turn bullish again Bloomberg compared with a multiple of 10.9 for the MSCI Mumbai Emerging Markets Index. Meanwhile the rupee fell on speculation importers Reuters took advantage of its eight-day rally to buy dollars Tokyo Indian stocks advanced for a second day in thin more cheaply to pay month-end bills. trading, with automakers helping the benchmark The rupee weakened 0.3% to 66.3950 a dollar index climb to a four-week high. in Mumbai, prices from local banks compiled by sian stocks poked into positive ter- Bajaj Auto and Hero MotoCorp, the biggest Bloomberg show. ritory yesterday, shrugging off early motorcycle makers, and Mahindra & Mahindra, It climbed 1.4% in the last eight days, the longest Alosses as Chinese shares rose a day af- the nation’s largest tractors company, were the run of gains since June 2011. ter marking their biggest loss in a month and top percentage gainers on the S&P BSE Sensex. The currency has risen 0.4% in December in the crude prices took back some lost ground. Hindustan Unilever retreated from a four- month second-best performance in emerging Asia. Financial spreadbetters at IG expected high. Bharat Heavy Electricals, a government- “Importers perhaps found the levels attractive to Britain’s FTSE 100 to open up by 2 points, controlled power-equipment maker, fell the most accumulate dollars,” said Navin Raghuvanshi, a while Germany’s DAX and France’s CAC were in three weeks. Mumbai-based foreign-exchange trader at DCB both seen rising by 0.6%. The Sensex increased 0.2% at the close in Mumbai, Bank. “Asian markets have looked past the wob- while the Nifty 50 Index rose less than 0.1%, with The increased foreign- investment limits for Indian ble in oil prices and Chinese data yesterday to trading volume in stocks on the gauge 23% below bonds are expected to bring inflows and that’ll be push tentatively into the green,” Angus Ni- the 30-day average. positive for the rupee, he said. cholson, market analyst at IG in Melbourne, Overseas investors bought a net $75mn of Indian The South Asian nation will grant overseas said in a note to clients. stocks on December 23, a fifth day of purchases investors access to an additional Rs165bn ($2.5bn) “However, volumes are very low through- that helped pare this quarter’s withdrawals to of sovereign and state-government notes from out the region, even lower than the pre- less than $600mn. December month equity- January 1, part of a September plan to allow a Christmas trade last week, so it is diffi cult to derivative contracts are due to expire on phased increase in the limits. read too much into them,” he added. Investors look at computer screens showing stock information at a brokerage house in Thursday. DCB Bank joins Edelweiss Financial Services and MSCI’s broadest index of Asia-Pacifi c Shanghai. The Shanghai Composite Index closed up 0.5% yesterday. “Buying by foreign investors has shored up RBL Bank in predicting this week that the new shares outside Japan was up 0.1%. But it re- the indexes,” D.K. Aggarwal, chairman of SMC quotas will attract global funds, whose holdings of mained on track to mark a loss of around 12% 0.1% a barrel to $36.67, though it was still not The greenback has been sapped by profi t Investments in New Delhi, said by phone. rupee-denominated debt have declined Rs98.2bn for 2015, a year that saw it log a more than far from an 11-year low of $35.98 struck last taking after the Federal Reserve this month “The indexes may trade in a range, given the over December and November amid a rise in US seven-year high in April. week, while US crude added about 0.2% to hiked interest rates for the fi rst time in nine volatility around expiry.” Aggarwal said he’s interest rates. China’s blue-chip CSI300 index added $36.89. years. Investors are waiting for the Fed to recommending clients buy power, software and The yield on sovereign notes due May 2025 was 0.7%, while the Shanghai Composite Index Their overnight tumble sent US energy send fresh signals about when the second banking companies. little changed at 7.76%, prices from the central was up 0.5%, as the central bank vowed to shares down 1.8%, the worst performing of rate hike could take place in 2016 to deter- Traders have replaced 44% of current month bank’s trading system show. It rose one basis point maintain reasonable credit growth and keep the major S&P sectors. Wall Street marked mine the dollar’s near-term direction. futures with January contracts, data compiled by on Monday after increasing two basis points last the yuan stable. modest losses after trading resumed follow- The euro nudged up 0.1% to $1.0976. Bloomberg show. week. Both indexes had skidded more than 2% in ing the Christmas break, with this week’s ac- The dollar edged down against its Cana- Mahindra & Mahindra rose 1.2%, the most in a India plans to sell Rs140bn of government the previous session as weak industrial profi t tivity expected to remain thin until after the dian counterpart to C$1.3873 after the loo- week. Bajaj Auto was the top gainer on the Sensex, notes at an auction on January 1, according to a data and a looming revamp of how compa- long New Year holiday weekend. nie slipped overnight in line with weakening climbing 1.5%. Hero MotoCorp added 0.8% to pare central bank statement after the close of markets nies will be listed, weighed on the market. Spot gold rose 0.5% to $1,073.80 an ounce crude oil prices. this year’s loss to 12%. Monday. Japan’s Nikkei erased earlier losses and after falling overnight in line with crude. The Canadian unit plumbed an 11-year low Hindustan Unilever lost 0.9%, the most since The government last sold debt at a December 11 ended up 0.6%, while South Korea’s KOSPI “Over the short-term, the precious metal of C$1.4003 against the dollar earlier this December 8. sale, raising Rs150bn after underwriters stepped in was up 0.1%. will likely trend sideways, as funds look to month. Bharat Heavy tumbled 1.7% to extend this year’s to purchase unsold securities. Australian stocks rallied 1.2%, gaining for close out the year and contemplate heading “We are looking for USD/CAD to break slide to 36%. Coal India, the world’s biggest Concern that supply will soon resume and the the eighth consecutive session after reopen- into next year with a fresh slate,” said INTL 1.40 and head towards 1.45 in the fi rst half producer of the fuel, decreased 1.2%. uncertainty surrounding the issuance timing ing following a four-day long holiday week- FCStone analyst Edward Meir. of 2016. The oil industry is experiencing its The Sensex has fallen 5.2% this year so far, of a new 10-year benchmark bond is hurting end. In currencies, the dollar edged down about biggest downturn since the 1990s and prices poised for its worst annual performance in four sentiment, Vijay Sharma, executive vice Crude oil futures stabilised after both 0.1% to ¥120.32, within striking distance of could fall another $10 a barrel before bottom- years. president for fixed income at PNB Gilts in New Brent and US crude prices dropped more a two-month low of 120.05 struck late last ing,” wrote Kathy Lien, managing director at It trades at 15.6 times projected 12-month earnings, Delhi, said on Monday. than 3% on Monday. Brent edged up about week. BK Asset Management. Gulf Times 8 Wednesday, December 30, 2015 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 7.25 2.69 1,461,935 Boubyan Intl Industries Hold 29.00 -1.69 1,611,000 Areej Vegetable Oils 5.51 0.00 - Solidarity Saudi Takaful Co 7.54 1.75 910,616 Gulf Investment House Ksc 26.00 -3.70 1,244,378 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 8.24 1.23 1,793,750 Boubyan Bank K.S.C 440.00 1.15 1,206,437 Al-Omaniya Financial Service 0.31 0.00 - Alabdullatif Industrial Inv 29.79 -0.03 22,255 Ahli United Bank B.S.C 204.00 -0.97 860,000 Al-Hassan Engineering Co 0.07 0.00 30,000 Saudi Printing & Packaging C 26.28 -4.05 9,944,108 Osos Holding Group Co 82.00 0.00 12 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.30 -0.65 42,500 Saudi Paper Manufacturing Co 18.53 -2.16 2,176,545 Qurain Petrochemical Industr 186.00 -1.06 27,435 Al Suwadi Power 0.19 0.00 100,000 Alinma Bank 15.13 4.42 64,231,874 Advanced Technology Co 920.00 0.00 1,000 Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 77.64 -3.40 273,764 Ekttitab Holding Co Sak 30.50 3.39 924,788 Al Sharqiya Invest Holding 0.09 -2.11 115,142 Falcom Saudi Equity Etf 24.80 -2.75 252,280 Kout Food Group Ksc 640.00 -13.51 5,000 Al Maha Petroleum Products M 1.90 -2.06 10,000 QATAR United International Transpo 42.09 -1.08 109,035 Real Estate Trade Centers Co 22.50 2.27 5,750 Al Maha Ceramics Co Saoc 0.40 -1.00 15,000 Hsbc Amanah Saudi 20 Etf 24.40 1.24 1,100 Acico Industries Co Kscc 295.00 5.36 90 Al Madina Takaful Co Saoc 0.08 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 14.67 -6.14 2,214,069 Kipco Asset Management Co 100.00 0.00 61,000 Al Madina Investment Co 0.05 0.00 46,304 Falcom Petrochemical Etf 22.20 0.00 300 National Petroleum Services 650.00 0.00 7,900 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 81.00 4.52 190 Saudi United Cooperative Ins 10.87 3.92 1,976,861 Alimtiaz Investment Co Kscc 78.00 -1.27 106,851 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 51.00 -0.20 47,207 Bank Al-Jazira 16.54 0.73 3,133,367 Ras Al Khaimah White Cement 100.00 0.00 50,000 Al Jazeera Steel Products Co 0.14 -2.86 508,611 Vodafone Qatar 12.59 -1.41 1,046,909 Al Rajhi Bank 52.61 -0.38 5,604,011 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Jazeera Services 0.31 0.00 - United Development Co 20.40 -0.73 101,656 Samba Financial Group 22.70 -0.04 593,956 Kuwait & Gulf Link Transport 42.50 -1.16 229,349 Al Izz Islamic Bank 0.07 1.49 8,000 Salam International Investme 11.77 -0.93 176,477 United Electronics Co 40.07 2.14 115,399 Human Soft Holding Co Ksc 980.00 0.00 765 Al Buraimi Hotel 0.88 0.00 - Islamic Holding Group-Rts 14.00 0.00 - Allied Cooperative Insurance 17.31 7.58 1,160,961 Automated Systems Co Kscc 300.00 -7.69 100 Al Batinah Power 0.19 0.00 - Qatar & Oman Investment Co 12.00 -1.64 27,219 Malath Cooperative & Reinsur 21.39 9.64 2,980,134 Metal & Recycling Co 74.00 -11.90 10 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 96.00 1.48 75,642 Alinma Tokio Marine 25.30 9.95 4,225,556 Gulf Franchising Holding Co 31.50 -1.56 4,373 Al Batinah Dev & Inv 0.08 -2.44 102,700 Qatar National Cement Co 101.50 -1.46 3,147 Arabian Shield Cooperative 25.67 4.82 624,829 Al-Enma’a Real Estate Co 61.00 -7.58 3,457,732 Al Anwar Holdings Saog 0.17 0.00 864,174 Qatar National Bank 176.00 2.92 66,889 Savola 49.62 -1.08 250,688 National Mobile Telecommuni 1,060.00 0.00 5,105 Ahli Bank 0.20 0.51 460,000 Qatar Islamic Insurance 65.70 -1.94 150 Wafrah For Industry And Deve 25.34 2.55 1,212,156 Al Bareeq Holding Co Kscc 104.00 0.00 500 Acwa Power Barka Saog 0.73 0.00 - Qatar Industrial Manufactur 38.45 -0.90 1,000 Fitaihi Holding Group 15.24 -0.78 837,719 Housing Finance Co Sak 31.50 -4.55 2,534,766 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 64.00 -0.78 52,568 Tourism Enterprise Co/ Shams 42.95 2.19 1,845,380 Al Salam Group Holding Co 35.50 -1.39 736,662 A’saff a Foods Saog 0.86 0.00 - Qatari Investors Group 36.90 -1.34 47,059 Sahara Petrochemical Co 10.61 -5.18 6,779,665 United Foodstuff Industries 140.00 -6.67 10 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 106.20 -2.12 71,231 Herfy Food Services Co 101.00 -0.49 7,709 Al Aman Investment Company 57.00 0.00 74,500 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 23.00 -0.69 644,862 Mashaer Holdings Co Ksc 106.00 0.00 2,217 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 54.00 0.75 13,005 Manazel Holding 23.00 2.22 774,110 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 13.86 -0.72 8,849 Mushrif Trading & Contractin 69.00 0.00 172,100 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 143.60 -1.03 17,763 KUWAIT Tijara And Real Estate Inves 41.50 0.00 117,285 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 215.00 -1.38 24,859 Kuwait Building Materials 250.00 0.00 20,000 #N/A Invalid Security 0.00 0.00 - Qatar Cinema & Film Distrib 34.00 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 910.00 0.00 4,866 #N/A Invalid Security 0.00 0.00 - Qatar Insurance Co 84.20 -3.22 45,660 Commercial Real Estate Co 81.00 2.53 443,138 Ooredoo Qsc 73.90 0.41 78,632 Securities Group Co 110.00 0.00 598 Future Communications Co 110.00 0.00 5,000 National Leasing 13.91 -1.07 44,949 Sultan Center Food Products 66.00 0.00 93,285 National International Co 59.00 -3.28 250,987 Mazaya Qatar Real Estate Dev 14.10 -1.54 167,362 Kuwait Foundry Co Sak 220.00 0.00 50,000 Taameer Real Estate Invest C 24.50 2.08 100,500 UAE Mesaieed Petrochemical Holdi 18.89 0.43 58,313 Kuwait Financial Centre Sak 102.00 0.00 5,000 Gulf Cement Co 78.00 0.00 208,303 Al Meera Consumer Goods Co 222.10 -1.07 2,194 Ajial Real Estate Entmt 166.00 0.00 2,500 Heavy Engineering And Ship B 148.00 0.00 13,010 Company Name Lt Price % Chg Volume Medicare Group 120.00 -1.23 4,081 Gulf Glass Manuf Co -Kscc 490.00 0.00 20,000 Refrigeration Industries & S 320.00 0.00 25,000 Mannai Corporation Qsc 94.90 -1.04 405 Kuwait Finance & Investment 36.50 -6.41 7,500 National Real Estate Co 87.00 -1.14 216,796 Waha Capital Pjsc 2.13 -0.47 281,573 Masraf Al Rayan 36.90 -0.27 224,059 National Industries Co Ksc 226.00 -0.88 249,416 Al Safat Energy Holding Comp 12.50 -3.85 1,586,000 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.45 -3.06 36,568 Kuwait Real Estate Holding C 21.00 0.00 10,000 Kuwait National Cinema Co 880.00 0.00 2,789 United Arab Bank Pjsc 5.38 0.00 - Industries Qatar 110.00 1.76 424,703 Securities House/The 36.00 -4.00 2,490,800 Danah Alsafat Foodstuff Co 82.00 0.00 171,050 Union National Bank/Abu Dhab 4.63 0.43 675,762 Islamic Holding Group 78.30 -2.00 101,220 Boubyan Petrochemicals Co 500.00 0.00 1,020 Independent Petroleum Group 275.00 5.77 78,500 Union Insurance Co 1.21 0.00 - Gulf Warehousing Company 57.00 0.00 82 Al Ahli Bank Of Kuwait 370.00 0.00 100,000 Kuwait Real Estate Co Ksc 56.00 0.00 701,790 Union Cement Co 1.19 -0.83 18,036 Gulf International Services 51.40 -1.91 523,585 Ahli United Bank (Almutahed) 540.00 0.00 156,204 Salhia Real Estate Co Ksc 350.00 0.00 20,000 Umm Al Qaiwain Cement Indust 1.00 0.00 - Ezdan Holding Group 16.25 -0.31 290,599 National Bank Of Kuwait 800.00 0.00 2,222,077 Gulf Cable & Electrical Ind 370.00 -1.33 355 Sharjah Islamic Bank 1.47 0.68 281,909 Doha Insurance Co 21.00 0.00 1,427 Commercial Bank Of Kuwait 500.00 0.00 70,004 Al Nawadi Holding Co Ksc 84.00 0.00 1,065 Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 43.65 -0.80 45,459 Kuwait International Bank 220.00 0.00 63,964 Kuwait Finance House 540.00 -1.82 213,874 Sharjah Group 1.35 0.00 - Dlala Holding 18.10 -0.55 2,547 Gulf Bank 260.00 0.00 6,076 Gulf North Africa Holding Co 28.00 -5.08 929,022 Sharjah Cement & Indus Devel 1.09 0.00 - Commercial Bank Qsc 44.90 -0.88 92,783 Al-Massaleh Real Estate Co 61.00 0.00 11,680 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 40.00 -0.25 180,359 Al Arabiya Real Estate Co 29.50 -3.28 205,229 Osoul Investment Kscc 41.00 0.00 17,073 Ras Al Khaimah White Cement 1.24 3.33 2,176 Al Khaleej Takaful Group 30.10 0.17 18,933 Kuwait Remal Real Estate Co 34.50 1.47 199,500 Gulf Insurance Group Ksc 750.00 0.00 236 Ras Al Khaimah Ceramics 3.45 1.47 7,250 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 1,960.00 0.00 69,723 Ras Al Khaimah Cement Co Psc 0.90 1.12 1,000,000 A’ayan Real Estate Co Sak 79.00 0.00 87,550 Umm Al Qaiwain Cement Indust 75.00 0.00 187,095 Ras Al Khaima Poultry 2.48 0.00 - Investors Holding Group Co.K 25.00 -1.96 980,651 Aayan Leasing & Investment 48.00 -2.04 938,958 Rak Properties 0.54 1.89 1,902,000 Al-Mazaya Holding Co 102.00 0.00 275,650 Ooredoo Qsc 74.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 1.38 0.00 - Gulf Petroleum Investment 52.00 0.00 759,369 Nbad Oneshare Msci Uae Etf 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 920.00 -1.08 133,781 OMAN 1.08 6,408,233 City Group 405.00 0.00 6,535 National Marine Dredging Co 5.48 0.00 - National Investor Co/The 0.62 0.00 - United Wire Factories Compan 22.50 1.95 208,219 Inovest Co Bsc 55.00 0.00 146,000 Company Name Lt Price % Chg Volume Etihad Etisalat Co 28.04 -0.11 961,002 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.50 0.00 - Dar Al Arkan Real Estate Dev 6.15 0.49 25,630,820 Al-Deera Holding Co 32.00 0.00 26,964 Voltamp Energy Saog 0.41 0.00 21 National Bank Of Umm Al Qaiw 3.30 0.00 - Saudi Hollandi Bank 29.10 0.48 219,980 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 6.20 3.33 63,714 Rabigh Refining And Petroche 12.91 -0.69 5,798,267 Mena Real Estate Co 24.00 0.00 100 United Power Co Saog 2.74 0.00 500 National Bank Of Fujairah 4.02 14.86 235,000 Banque Saudi Fransi 27.10 0.15 44,514 National Slaughter House 0.00 0.00 - United Finance Co 0.12 4.35 212,390 National Bank Of Abu Dhabi 8.00 -0.12 1,116,342 Saudi Enaya Cooperative Insu 16.61 4.86 2,419,440 Amar Finance & Leasing Co 56.00 0.00 301,000 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.60 0.00 1,237,384 Mediterranean & Gulf Insuran 25.70 9.74 2,758,077 United Projects Group Kscc 650.00 -7.14 60 Takaful Oman 0.10 0.00 - Manazel Real Estate Pjsc 0.58 -1.69 4,049,769 Saudi British Bank 23.60 1.37 178,940 National Consumer Holding Co 99.00 0.00 80 Taageer Finance 0.13 0.00 - Invest Bank 2.00 -2.91 27,458 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 0.00 0.00 - Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 6.95 0.00 - Red Sea Housing Services Co 24.72 0.98 554,064 Jeeran Holdings 60.00 0.00 100 Sohar Power Co 0.35 0.00 5,960 Insurance House 0.81 0.00 - Takween Advanced Industries 37.56 1.68 201,360 Equipment Holding Co K.S.C.C 59.00 -1.67 294,969 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Industri 2.50 0.00 - Sabb Takaful 32.47 3.61 1,363,714 Nafais Holding 184.00 -9.80 10 Smn Power Holding Saog 0.74 0.00 - Gulf Medical Projects 2.54 1.60 12,000 Saudi Arabian Fertilizer Co 84.99 -1.20 435,001 Safwan Trading & Contracting 300.00 0.00 7,250 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.94 0.00 8,097 National Gypsum 15.91 0.82 591,309 Arkan Al Kuwait Real Estate 110.00 -1.79 68,595 Shell Oman Marketing 2.00 0.00 50,000 Fujairah Cement Industries 1.25 0.00 - Saudi Ceramic Co 49.32 -1.38 1,125,758 Gfh Financial Group Bsc 39.50 2.60 38,243,662 Sharqiyah Desalination Co Sa 4.85 4.19 2,000 Fujairah Building Industries 1.71 0.00 - National Gas & Industrializa 26.20 -2.24 925,684 Energy House Holding Co Kscp 43.00 0.00 1,000 Sembcorp Salalah Power & Wat 2.45 0.00 9,606 Foodco Holding Pjsc 4.00 0.00 100,000 Saudi Pharmaceutical Industr 33.21 -0.92 259,964 Kuwait Slaughter House Co 0.00 0.00 - Salalah Port Services 0.65 0.00 - First Gulf Bank 12.95 2.78 396,269 Thimar 39.22 1.03 740,318 Kuwait Co For Process Plant 218.00 0.00 1,545 Salalah Mills Co 1.49 0.00 - Finance House 2.15 0.00 - National Industrialization C 10.79 -2.44 2,253,248 Al Maidan Dental Clinic Co K 1,220.00 0.00 50 Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.55 0.00 9,069,221 Saudi Transport And Investme 71.59 -0.54 500,884 National Ranges Company 21.50 0.00 390,500 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 15.95 0.00 1,254,231 Saudi Electricity Co 15.74 -5.75 13,706,185 Al-Themar Real International 90.00 0.00 963,333 Renaissance Services Saog 0.17 0.00 - Emirates Insurance Co. (Psc) 6.72 0.00 - Saudi Arabia Refineries Co 40.23 2.18 436,968 Al-Ahleia Insurance Co Sakp 485.00 5.43 15,000 Raysut Cement Co 1.04 0.00 1,000 Emirates Driving Company 5.05 0.00 - Arriyadh Development Company 17.72 0.51 1,100,153 Wethaq Takaful Insurance Co 41.00 2.50 350 Port Service Corporation 0.13 0.00 2,000 Dana Gas 0.48 -2.04 5,740,421 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 83.00 1.22 63,100 Phoenix Power Co Saoc 0.14 -0.69 126,569 Commercial Bank Internationa 1.85 0.00 12,100,341 Saudi Research And Marketing 57.09 -1.89 3,780,412 Aqar Real Estate Investments 75.00 0.00 666 Packaging Co Ltd 0.48 0.00 - Bank Of Sharjah 1.41 0.71 40,000 Aldrees Petroleum And Transp 43.20 0.33 866,792 Hayat Communications 44.50 -3.26 10,500 Ooredoo 0.72 -1.10 282,557 Axa Green Crescent Insurance 0.73 0.00 - Saudi Vitrified Clay Pipe Co 92.21 3.49 30,723 Kuwait Packing Materials Mfg 360.00 0.00 1,909 Ominvest 0.44 0.92 375,736 Arkan Building Materials Co 0.90 0.00 - Jarir Marketing Co 159.54 -0.91 40,203 Soor Fuel Marketing Co Ksc 110.00 0.00 62,355 Oman United Insurance Co 0.22 -0.91 241,292 Alkhaleej Investment 2.45 0.00 - Arab National Bank 22.74 0.57 214,499 Alargan International Real 176.00 0.00 54,240 Oman Textile Holding Co Saog 0.35 0.00 - Aldar Properties Pjsc 2.28 0.88 2,375,577 Yanbu National Petrochemical 33.20 -7.55 2,222,695 Burgan Co For Well Drilling 122.00 -7.58 200 Oman Telecommunications Co 1.57 -0.32 259,553 Al Wathba National Insurance 4.50 0.00 - Arabian Cement 49.24 -5.90 659,882 Kuwait Resorts Co Kscc 96.00 0.00 64,310 Oman Refreshment Co 2.22 0.00 - Al Khazna Insurance Co 0.32 0.00 - Middle East Specialized Cabl 9.20 0.00 914,911 Oula Fuel Marketing Co 112.00 0.00 27,640 Oman Packaging 0.29 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 34.94 1.42 606,391 Palms Agro Production Co 112.00 0.00 8,570 Oman Orix Leasing Co. 0.14 0.00 - Al Dhafra Insurance Co. P.S. 4.80 0.00 - Al Sagr Co-Operative Insuran 29.72 2.80 606,918 Ikarus Petroleum Industries 90.00 -1.10 6,179 Oman Oil Marketing Company 2.00 0.00 - Al Buhaira National Insuranc 2.50 0.00 - Trade Union Cooperative Insu 21.12 4.45 599,821 Mubarrad Transport Co 76.00 0.00 100,000 Oman National Engineering An 0.26 0.00 385 Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 7.44 2.62 1,145,374 Al Mowasat Health Care Co 180.00 0.00 1,727 Oman Investment & Finance 0.18 1.69 1,704,917 Agthia Group Pjsc 7.70 -2.41 25,600 Saudi Chemical Company 58.75 -3.51 345,704 Shuaiba Industrial Co 390.00 0.00 446 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.93 0.00 - Fawaz Abdulaziz Alhokair & C 74.11 0.23 276,020 Hits Telecom Holding 28.50 -3.39 1,032,322 Oman Hotels & Tourism Co 0.24 0.00 - Abu Dhabi Natl Co For Buildi 0.45 0.00 - Bupa Arabia For Cooperative 107.43 5.58 325,238 First Takaful Insurance Co 56.00 0.00 7,000 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 4.73 0.00 - Wafa Insurance 13.35 5.04 1,118,110 Kuwaiti Syrian Holding Co 25.00 2.04 195,029 Oman Flour Mills 0.42 0.00 1,000 Abu Dhabi National Insurance 2.88 -10.00 94,250 Jabal Omar Development Co 53.75 0.00 324,048 National Cleaning Company 40.00 0.00 95,000 Oman Fisheries Co 0.05 0.00 - Abu Dhabi National Hotels 2.70 -5.92 50,000 Saudi Basic Industries Corp 78.03 -4.55 11,636,919 Eyas For High & Technical Ed 330.00 0.00 13,000 Oman Fiber Optics 5.26 0.00 - Abu Dhabi National Energy Co 0.44 -2.22 70 Saudi Kayan Petrochemical Co 7.13 -1.79 9,138,857 United Real Estate Company 96.00 0.00 1,129 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.95 3.67 329,941 Etihad Atheeb Telecommunicat 5.44 0.00 3,857,658 Agility 485.00 0.00 69,205 Oman Education & Training In 0.16 0.00 - Co For Cooperative Insurance 75.04 6.20 331,407 Kuwait & Middle East Fin Inv 27.50 0.00 5,500 Oman Chromite 3.64 0.00 - National Petrochemical Co 17.92 -7.01 2,200,917 Fujairah Cement Industries 74.00 0.00 25,010 Oman Chlorine 0.51 0.00 - BAHRAIN Gulf Union Cooperative Insur 12.05 4.51 596,066 Livestock Transport & Tradng 126.00 -1.56 5,000 Oman Ceramic Com 0.45 0.00 - Gulf General Cooperative Ins 20.05 5.14 494,993 International Resorts Co 29.00 -1.69 686,708 Oman Cement Co 0.46 0.00 - Basic Chemical Industries 20.64 2.08 323,350 National Industries Grp Hold 128.00 1.59 375,500 Oman Cables Industry 1.77 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.23 Marine Services Co Ksc -7.02 21.42 165,478 106.00 1,100 Oman Agricultural Dev 1.70 17.24 1,429 Zain Bahrain Bscc 0.18 0.00 20,000 Buruj Cooperative Insurance 9.74 Warba Insurance Co 0.00 17.80 1,532,859 104.00 51,010 Oman & Emirates Inv(Om)50% 0.09 -2.17 21,500 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -0.67 Kuwait United Poultry Co 0.00 118.20 41,888 186.00 11,000 Natl Aluminium Products 0.22 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -4.68 First Dubai Real Estate Deve -1.00 71.25 153,132 49.50 423,050 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah 0.43 Al Arabi Group Holding Co 0.00 25.68 487,248 80.00 40,000 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.24 0.00 374,361 Yamama Cement Co -3.18 Kuwait Hotels Sak 0.00 32.87 865,335 200.00 2,118 National Pharmaceutical 0.11 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 0.18 Mobile Telecommunications Co 1.45 16.86 1,277,988 350.00 1,059,934 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -1.39 Al Safat Real Estate Co 0.00 33.31 509,788 0.00 - National Hospitality Institu 2.05 0.00 - Seef Properties 0.20 0.00 67,468 Alujain Corporation (Alco) -1.69 Tamdeen Real Estate Co Ksc 3.23 14.58 442,649 640.00 9,444 National Gas Co 0.31 0.00 1,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.69 Al Mudon Intl Real Estate Co -2.99 13.12 1,513,963 32.50 1,891,032 National Finance Co 0.13 0.00 - National Hotels Co 0.28 0.00 13,894 United Co-Operative Assuranc 4.27 Kuwait Cement Co Ksc 0.00 11.72 405,651 380.00 599 National Detergent Co Saog 0.70 0.00 1,000 National Bank Of Bahrain Bsc 0.69 0.73 30,500 Qassim Cement/The -1.86 Sharjah Cement & Indus Devel -1.19 71.89 140,740 83.00 165,000 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.12 0.00 55,000 Saudi Advanced Industries 0.30 Kuwait Portland Cement Co 0.00 13.27 1,043,876 1,080.00 490 National Bank Of Oman Saog 0.27 -0.75 50,100 Khaleeji Commercial Bank 0.07 0.00 2,171,079 Kingdom Holding Co -2.26 Educational Holding Group 0.00 16.01 1,035,107 210.00 2,000,000 Muscat Thread Mills Co 0.13 0.00 - Ithmaar Bank Bsc 0.15 3.57 30,000 Saudi Arabian Amiantit Co -0.67 Bahrain Kuwait Insurance 0.00 8.93 619,471 0.00 - Muscat National Holding 1.86 0.00 - Investcorp Bank -$Us 6.20 0.00 10,000 Al Jouf Agriculture Developm -2.12 Asiya Capital Investments Co 0.00 34.60 236,415 38.00 28,766 Muscat Gases Company Saog 0.83 0.00 - Inovest Co Bsc 0.16 0.00 48,482 Saudi Industrial Development 3.49 Kuwait Investment Co 0.00 14.23 2,826,056 100.00 150 Muscat Finance 0.14 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 69.75 - 375.00 684,218 Majan Glass Company 0.20 0.00 - Gulf Hotel Group B.S.C 0.81 0.00 5,500 Riyad Bank -0.49 Kuwait Projects Co Holdings -1.72 12.16 942,910 570.00 532,982 Majan College 0.52 0.00 - Global Investment House Kpsc 0.00 0.00 - The National Agriculture Dev -0.67 Al Madina For Finance And In 0.00 32.54 122,152 35.00 1,668,229 Hsbc Bank Oman 0.10 0.00 3,666 Gfh Financial Group Bsc 0.16 -8.57 100,000 Halwani Bros Co -0.08 Kuwait Insurance Co 0.00 72.00 14,036 305.00 1,000 Hotels Management Co Interna 1.25 0.00 - Esterad Investment Co B.S.C. 0.20 0.00 35,000 Arabian Pipes Co 0.79 Al Masaken Intl Real Estate 8.16 14.05 860,303 53.00 659,578 Gulf Stone 0.11 0.00 - Delmon Poultry Co 0.32 0.00 131,166 Eastern Province Cement Co -3.20 Intl Financial Advisors -3.33 32.71 619,907 29.00 4,341,369 Gulf Plastic Industries Co 0.39 0.00 - Bmmi Bsc 0.87 0.00 47,000 Al Qassim Agricultural Co 0.22 First Investment Co Kscc 1.85 13.50 1,904,732 55.00 111,969 Gulf Mushroom Company 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Filing & Packing Materials M 0.50 Al Mal In 0.00 38.43 422,704 vestment Company 0.00 - Gulf Investments Services 0.09 0.00 - Bbk Bsc 0.43 0.00 33,500 Saudi Cable Co -1.27 -2.90 7.76 648,582 Bayan Investment Co Kscc 33.50 76,002 Gulf Invest. Serv. Pref-Shar 0.12 0.00 - Bankmuscat Saog 0.00 0.00 - Tihama Advertising & Public 0.03 0.00 29.82 1,014,581 Egypt Kuwait Holding Co Sae 156.00 28,500 Gulf International Chemicals 0.26 3.60 18,000 Banader Hotels Co ` 0.00 419,368 Saudi Investment Bank/The 0.47 -1.56 17.08 242,083 Coast Investment Development 31.50 1,024,990 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Tourism Co 0.22 0.00 51,600 Astra Industrial Group 3.20 -3.77 20.02 845,546 Privatization Holding Compan 51.00 1,588,400 Global Fin Investment 0.11 0.00 - Bahrain Telecom Co 0.32 0.00 40,100 Saudi Public Transport Co -2.83 0.00 16.83 4,340,339 Kuwait Medical Services Co 29.50 1,000 Galfar Engineering&Contract 0.07 0.00 3,245 Bahrain Ship Repair & Engin 0.00 0.00 - Taiba Holding Co -0.65 -5.95 35.23 129,415 Injazzat Real State Company 79.00 286,870 Galfar Engineering -Prefer 0.39 0.00 - Bahrain National Holding 0.00 0.00 - Saudi Industrial Export Co 1.87 0.00 39.14 740,881 Kuwait Cable Vision Sak 25.00 2,000 Financial Services Co. 0.17 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Real Estate Co 0.21 3.57 23.42 322,106 Sanam Real Estate Co Kscc 43.50 1 Financial Corp/The 0.11 0.00 - Bahrain Islamic Bank 0.14 0.00 30,000 Saudia Dairy & Foodstuff Co 2.47 2.30 109.64 19,931 Ithmaar Bank Bsc 44.50 3,380,700 Dhofar University 1.49 0.00 - Bahrain Flour Mills Co 0.00 0.00 - National Shipping Co Of/The -1.52 0.00 46.10 3,754,262 Aviation Lease And Finance C 210.00 10,000 Dhofar Tourism 0.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - Methanol Chemicals Co -2.16 7.14 7.24 2,028,046 Arzan Financial Group For Fi 37.50 12,050 Dhofar Poultry 0.18 0.00 - Bahrain Duty Free Complex 0.86 0.00 10,000 Ace Arabia Cooperative Insur 5.02 1.89 53.80 215,764 Ajwan Gulf Real Estate Co 27.00 300,000 Dhofar Intl Development 0.40 0.00 - Bahrain Commercial Facilitie 0.77 6.25 3,000 Mobile Telecommunications Co 0.36 -4.49 8.48 1,549,632 Kuwait Business Town Real Es 42.50 21,338,045 Dhofar Insurance 0.21 0.00 - Bahrain Cinema Co 1.30 0.00 1,174 Saudi Arabian Coop Ins Co 5.86 0.00 17.35 755,413 Future Kid Entertainment And 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Bahrain Car Park Co 0.18 0.00 10,000 Axa Cooperative Insurance 6.37 0.00 16.52 1,607,077 Specialities Group Holding C 89.00 200 Dhofar Cattlefeed 0.21 0.00 - Arab Insurance Group(Bsc)-$ 0.38 0.00 20,000 Alsorayai Group -0.43 -1.67 16.13 108,032 Abyaar Real Eastate Developm 29.50 411,863 Dhofar Beverages Co 0.26 0.00 - Arab Banking Corp Bsc-$Us 0.43 0.00 35,000 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 140.00 121 Construction Materials Ind 0.03 0.00 - Aluminium Bahrain Bsc 0.36 -0.55 25,379 Bank Albilad 0.78 3.85 24.53 566,529 Al-Dar National Real Estate 27.00 2,498,213 Computer Stationery Inds 0.26 0.00 - Albaraka Banking Group 0.55 0.00 20,000 Al-Hassan G.I. Shaker Co 3.91 -1.75 28.47 281,014 Kgl Logistics Company Kscc 56.00 410,110 Bankmuscat Saog 0.47 0.43 2,663,850 Al-Salam Bank 0.09 -1.06 100,000 Wataniya Insurance Co 3.11 0.00 64.29 151,901 Combined Group Contracting 780.00 33 Bank Sohar 0.16 0.00 - Al-Ahlia Insurance Co 0.00 0.00 - Abdullah Al Othaim Markets 87.75 -1.39 30,084 Zima Holding Co Ksc 122.00 -3.17 2,614,200 Bank Nizwa 0.07 0.00 1,096,633 Hail Cement 14.56 -0.34 427,146 Qurain Holding Co 7.00 0.00 1,801,093 Bank Dhofar Saog 0.22 0.93 166,500 LATEST MARKET CLOSING FIGURES Gulf Times Wednesday, December 30, 2015 9 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 17,705.23 +176.96 Apple Inc 107.67 0.80 8,378,894 S&P 500 Index 2,075.20 +18.70 Microsoft Corp 56.48 0.94 9,231,070 Nasdaq Composite Index 5,097.07 +56.09 Exxon Mobil Corp 79.29 0.70 2,652,943 S&P/Tsx Composite Index 13,199.77 -110.03 General Electric Co 31.19 0.95 10,453,022 Mexico Bolsa Index 43,586.24 +190.08 Johnson & Johnson 103.84 0.60 1,263,639 Brazil Bovespa Stock Idx 43,811.54 +47.20 Jpmorgan Chase & Co 66.93 0.83 3,049,492 Ftse 100 Index 6,292.34 +37.70 Procter & Gamble Co/The 80.45 0.66 1,154,343 Cac 40 Index 4,688.30 +70.35 Pfizer Inc 32.74 0.99 4,401,057 Dax Index 10,825.68 +171.77 Wal-Mart Stores Inc 61.70 1.56 2,653,417 Ibex 35 Tr 9,645.00 +92.50 Walt Disney Co/The 107.22 -0.03 2,550,644 Nikkei 225 18,982.23 +108.88 Coca-Cola Co/The 43.74 0.56 2,424,183 Japan Topix 1,543.39 +14.17 Verizon Communications Inc 47.11 0.77 2,240,987 Hang Seng Index 21,999.62 +80.00 Visa Inc-Class A Shares 79.25 0.92 1,307,562 All Ordinaries Indx 5,315.58 +59.48 Home Depot Inc 134.16 1.12 1,085,796 Nzx All Index 1,211.59 +12.74 Chevron Corp 91.30 1.04 2,423,827 Bse Sensex 30 Index 26,079.48 +45.35 Intel Corp 35.43 1.43 3,896,193 Nse S&P Cnx Nifty Index 7,928.95 +3.80 Merck & Co. Inc. 53.35 0.97 2,070,901 Straits Times Index 2,888.22 +12.90 Cisco Systems Inc 27.60 1.06 3,955,186 Karachi All Share Index 22,868.03 +128.37 Intl Business Machines Corp 139.59 1.44 1,130,227 Jakarta Composite Index 4,569.36 +12.01 Nike Inc -Cl B 64.33 0.81 2,404,150 Unitedhealth Group Inc 120.05 1.45 595,882 Mcdonald’s Corp 119.82 0.90 1,133,269 Boeing Co/The 146.91 1.64 764,042 TOKYO 3M Co 152.56 0.89 489,845 United Technologies Corp 97.30 1.26 1,018,491 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 183.51 1.04 740,737 Rakuten Inc 1,398.50 0.79 4,066,400 American Express Co 70.24 0.69 991,226 Kyocera Corp 5,634.00 0.66 624,000 Du Pont (E.I.) De Nemours 67.78 1.97 659,459 Nissan Motor Co Ltd 1,274.50 0.47 6,840,200 Caterpillar Inc 68.91 0.48 1,157,336 Hitachi Ltd 690.20 0.69 15,767,000 Travelers Cos Inc/The 114.71 1.08 235,996 Takeda Pharmaceutical Co Ltd 6,093.00 2.77 2,152,000 Jfe Holdings Inc 1,939.50 -1.10 4,130,700 Ana Holdings Inc 349.00 1.13 9,494,000 FTSE 100 Mitsubishi Electric Corp 1,281.50 1.02 3,656,000 Sumitomo Mitsui Financial Gr 4,603.00 1.19 4,288,400 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,884.00 0.23 1,913,900 Fast Retailing Co Ltd 42,160.00 -1.01 500,600 Wpp Plc 1,568.00 1.95 1,145,156 Ms&Ad Insurance Group Holdin 3,575.00 1.62 1,413,700 Worldpay Group Plc 303.90 1.00 3,026,805 Kubota Corp 1,877.00 -0.13 3,322,000 Wolseley Plc 3,747.00 1.77 215,568 A Persimmon banner flutters outside a construction site in Hatfield, UK. Homebuilders Persimmon and Taylor Wimpey were Seven & I Holdings Co Ltd 5,536.00 2.22 1,533,800 Whitbread Plc 4,470.00 0.68 306,631 among the top gainers on the London Stock Exchange yesterday. Inpex Corp 1,183.50 0.85 3,841,300 Vodafone Group Plc 217.60 0.44 19,894,358 Resona Holdings Inc 591.60 1.86 6,873,100 United Utilities Group Plc 946.00 1.01 760,159 Asahi Kasei Corp 828.50 -0.26 7,058,000 Unilever Plc 2,933.00 1.45 828,176 Kirin Holdings Co Ltd 1,636.00 0.99 2,276,600 Tui Ag-Di 1,240.00 0.81 412,309 Marubeni Corp 628.70 0.24 11,402,400 Travis Perkins Plc 2,004.00 1.47 192,405 Mitsubishi Ufj Financial Gro 759.70 1.13 41,122,200 Tesco Plc 150.50 -0.27 12,835,811 Mitsubishi Chemical Holdings 775.70 0.78 2,816,800 Taylor Wimpey Plc 204.10 3.50 8,606,404 European stocks, Wall Street Fanuc Corp 21,085.00 -0.54 533,600 Standard Life Plc 395.00 -0.05 1,293,501 Daito Trust Construct Co Ltd 14,010.00 1.74 262,300 Standard Chartered Plc 580.40 -1.46 2,815,933 Otsuka Holdings Co Ltd 4,330.00 1.22 829,000 St James’s Place Plc 1,018.00 2.21 313,439 Oriental Land Co Ltd 7,260.00 1.18 739,900 Sse Plc 1,552.00 1.24 1,236,722 Sekisui House Ltd 2,035.00 1.90 2,057,800 Sports Direct International 570.50 1.06 1,034,678 climb as oil price steadies Secom Co Ltd 8,205.00 1.16 370,100 Smiths Group Plc 963.00 0.47 365,536 Tokio Marine Holdings Inc 4,753.00 1.82 1,609,900 Smith & Nephew Plc 1,207.00 2.90 1,411,702 Aeon Co Ltd 1,858.50 1.34 2,112,000 Sky Plc 1,121.00 2.00 1,253,026 enhancing whatever nascent positive lower for longer,” said Tony Cross, Mitsui & Co Ltd 1,446.00 0.35 5,143,000 AFP Shire Plc 4,664.00 1.19 755,838 sentiment there is in the eurozone, al- market analyst at Trustnet Direct. Kao Corp 6,139.00 0.84 1,500,900 London Severn Trent Plc 2,198.00 1.06 258,745 lowing the DAX and CAC to stretch out Crude oil prices fi rmed but held Dai-Ichi Life Insurance 2,044.50 0.99 2,716,600 Schroders Plc 2,999.00 1.28 150,322 Mazda Motor Corp 2,535.00 0.12 4,150,400 their legs,” said analyst Connor Camp- near recent multi-year lows, dogged Sainsbury (J) Plc 263.80 -0.98 3,622,917 Komatsu Ltd 2,010.00 0.02 3,219,600 uropean stock markets rose bell at trading fi rm Spreadex. by stubborn oversupply and tepid eco- Sage Group Plc/The 610.00 2.35 950,110 West Japan Railway Co 8,293.00 1.39 646,800 yesterday on steadier oil prices “The FTSE has not been so lucky; nomic data. Sabmiller Plc 4,070.00 -0.12 492,487 Murata Manufacturing Co Ltd 17,495.00 2.64 961,700 which also lifted Wall Street, despite a strong set of housing stocks Asian equities broadly rose in see-saw Rsa Insurance Group Plc 430.60 -0.07 1,223,594 E Kansai Electric Power Co Inc 1,443.50 0.56 1,842,400 Royal Mail Plc 455.30 1.18 975,765 with many traders away for an extend- due to the tragic fl ooding in the north trading despite fears about the state of Denso Corp 5,784.00 0.09 943,100 Royal Dutch Shell Plc-B Shs 1,570.00 -0.06 4,771,827 ed festive break. of England, and a stable oil price, the China’s economy, a key driver of global Sompo Japan Nipponkoa Holdin 4,039.00 1.30 806,000 Royal Dutch Shell Plc-A Shs 1,553.00 -0.26 4,308,857 Daiwa House Industry Co Ltd 3,509.00 2.66 1,519,700 The benchmark indices in Paris and UK index is struggling to match its eu- growth. Thin trading volumes also un- Royal Bank Of Scotland Group 308.50 1.21 5,202,489 Jx Holdings Inc 509.70 0.39 5,892,400 Frankfurt showed healthy gains, af- rozone peers, hampered by a grumpy derpinned gains as markets wind down Rolls-Royce Holdings Plc 585.50 -1.60 3,100,801 Nippon Steel & Sumitomo Meta 2,436.50 -0.33 2,585,100 ter losses on Monday following the mining sector.” for the fi nal week of the year. Rio Tinto Plc 1,962.50 -2.19 2,483,218 Suzuki Motor Corp 3,705.00 0.41 1,106,900 “Equity markets (in Europe) are in Relx Plc 1,200.00 1.69 1,590,181 Christmas holiday. In London, homebuilders Persim- Nippon Telegraph & Telephone 4,795.00 0.97 3,394,100 Reckitt Benckiser Group Plc 6,291.00 1.04 392,760 The key Paris index CAC 40 closed mon and Taylor Wimpey were among the green, tracking an Asian recovery Ajinomoto Co Inc 2,861.50 1.15 1,179,000 Randgold Resources Ltd 4,201.00 -0.80 232,467 up 1.8% at 4,701.36 points. the top gainers. of sorts, amid continued assurances Mitsui Fudosan Co Ltd 3,049.00 -0.10 3,108,000 Prudential Plc 1,556.50 1.07 1,458,575 In London, the FTSE 100 was up “With the cost of repairing and re- from Beijing that it will continue to Ono Pharmaceutical Co Ltd 21,700.00 1.57 365,200 Provident Financial Plc 3,367.00 2.06 192,659 Daikin Industries Ltd 8,891.00 1.33 886,500 1.0% at 6,314.57 points and Frankfurt’s building the countless homes up north monitor the economy and administer Persimmon Plc 2,038.00 3.29 470,648 Bank Of Yokohama Ltd/The 744.70 2.51 4,053,000 DAX 30 was up 1.9% at 10,860 at close. that have been damaged by the fl ood- treatment where required,” said re- Pearson Plc 743.00 -3.26 1,591,591 Toray Industries Inc 1,136.00 1.43 4,503,000 US stocks showed solid gains, too, ing... investors appear to be confi dent search analyst Augustin Eden at trad- Old Mutual Plc 182.80 0.61 2,849,271 Astellas Pharma Inc 1,733.00 1.70 3,537,500 Next Plc 7,235.00 0.77 252,936 with dealers also citing the upward that the housing sector is set to ben- ing fi rm Accendo Markets. Bridgestone Corp 4,157.00 0.58 1,560,200 National Grid Plc 951.80 1.80 3,912,715 move in oil prices as a factor. efi t,” added Campbell. Shanghai fi nished up 0.85% and Sony Corp 2,978.00 -0.17 5,317,600 Mondi Plc 1,342.00 -1.25 604,651 London returned to action yesterday “There’s a genuine concern that the Shenzhen added 0.95%. Hong Kong’s Hoya Corp 4,967.00 1.22 655,900 Merlin Entertainment 455.00 1.11 384,585 with more modest gains but the home- devastating fl oods that have caused Hang Seng index ended 0.36% higher. Sumitomo Mitsui Trust Holdin 462.00 1.63 11,818,000 Marks & Spencer Group Plc 454.80 0.31 3,445,623 Japan Tobacco Inc 4,404.00 -0.05 2,058,800 building sector jumped on demand havoc across the North of England In Tokyo, the Nikkei 225 added London Stock Exchange Group 2,773.00 2.63 279,334 Osaka Gas Co Ltd 434.70 0.98 6,654,000 hopes in the wake of fl ooding in north- could have a meaningful impact on 0.58% on bargain-hunting. Seoul Lloyds Banking Group Plc 73.90 0.54 44,577,312 Sumitomo Electric Industries 1,727.00 1.05 1,789,500 ern England. economic growth, which in turn may tacked on 0.11%, while Taiwan closed Legal & General Group Plc 271.60 0.85 2,747,342 Daiwa Securities Group Inc 743.60 0.15 4,847,000 Land Securities Group Plc 1,201.00 1.26 662,757 “Thin trading volumes appear to be translate into interest rates staying 0.77% lower. Singapore dipped 0.45%. Softbank Group Corp 6,127.00 -0.03 3,447,300 Kingfisher Plc 331.60 0.58 2,245,306 Mizuho Financial Group Inc 243.80 1.37 83,880,000 Johnson Matthey Plc 2,719.00 0.59 236,900 Nomura Holdings Inc 679.80 0.00 13,471,500 Itv Plc 277.30 0.84 3,093,075 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,519.00 2.57 2,637,900 Intu Properties Plc 325.70 1.05 389,844 Fuji Heavy Industries Ltd 5,038.00 1.55 2,719,700 Intl Consolidated Airline-Di 608.50 0.91 2,242,476 Ntt Docomo Inc 2,484.00 0.71 4,060,800 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intertek Group Plc 2,797.00 0.25 159,305 Sumitomo Realty & Developmen 3,499.00 0.14 1,584,000 Intercontinental Hotels Grou 2,648.00 0.46 388,932 Aluminum Corp Of China Ltd-H 2.59 0.39 12,976,400 Hong Kong & China Gas 15.16 0.13 3,182,263 Sumitomo Metal Mining Co Ltd 1,488.00 0.81 4,469,000 Inmarsat Plc 1,146.00 1.42 310,545 Bank Of East Asia 27.95 1.45 1,034,280 Hong Kong Exchanges & Clear 200.20 -0.10 2,264,822 Orix Corp 1,713.00 0.65 2,867,200 Imperial Tobacco Group Plc 3,608.00 1.82 782,034 Bank Of China Ltd-H 3.51 0.57 151,256,051 Hsbc Holdings Plc 62.30 0.89 6,279,587 Asahi Group Holdings Ltd 3,778.00 0.37 802,500 Hsbc Holdings Plc 543.10 0.33 7,026,831 Bank Of Communications Co-H 5.49 -0.54 14,220,402 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 66,420.00 1.58 106,600 Hikma Pharmaceuticals Plc 2,347.00 4.26 239,447 Belle International Holdings 5.93 2.95 11,751,096 Ind & Comm Bk Of China-H 4.73 -0.42 129,132,066 Nidec Corp 8,738.00 1.19 826,400 Hargreaves Lansdown Plc 1,518.00 2.43 230,452 Boc Hong Kong Holdings Ltd 23.85 0.21 4,310,437 Li & Fung Ltd 5.19 1.17 13,502,978 Isuzu Motors Ltd 1,323.50 -0.04 1,993,300 Hammerson Plc 610.50 0.91 749,249 Cathay Pacific Airways 13.36 0.60 1,576,950 Mtr Corp 38.25 2.14 3,773,252 Unicharm Corp 2,456.00 2.12 2,536,900 Glencore Plc 92.06 -0.37 43,527,493 Ck Hutchison Holdings Ltd 104.90 0.96 3,241,291 New World Development 7.61 -0.26 25,085,973 Shin-Etsu Chemical Co Ltd 6,631.00 0.18 729,700 Glaxosmithkline Plc 1,387.50 0.84 2,698,418 China Coal Energy Co-H 3.07 0.00 5,692,555 Petrochina Co Ltd-H 5.19 -1.52 66,111,390 Smc Corp 31,690.00 0.76 143,900 Gkn Plc 308.90 1.21 1,217,608 China Construction Bank-H 5.36 -0.37 114,799,434 Ping An Insurance Group Co-H 43.80 0.69 7,763,976 Mitsubishi Corp 2,040.00 0.77 3,669,800 Fresnillo Plc 706.00 -1.33 745,444 China Life Insurance Co-H 25.60 1.39 13,081,532 Power Assets Holdings Ltd 70.45 0.57 1,330,531 Nintendo Co Ltd 16,945.00 3.01 759,700 Experian Plc 1,216.00 1.00 707,063 China Merchants Hldgs Intl 24.95 2.04 1,593,325 Sino Land Co 11.44 0.00 1,641,435 Eisai Co Ltd 8,111.00 1.44 569,400 Easyjet Plc 1,756.00 2.03 591,889 China Mobile Ltd 87.75 0.17 5,043,417 Sun Hung Kai Properties 94.00 -0.48 1,653,740 Sumitomo Corp 1,244.50 0.69 2,698,500 Dixons Carphone Plc 500.50 0.56 1,391,176 China Overseas Land & Invest 27.10 2.07 15,265,401 Swire Pacific Ltd - Cl A 86.75 0.81 774,722 Canon Inc 3,693.00 0.76 2,671,700 Direct Line Insurance Group 412.40 0.41 2,871,830 China Petroleum & Chemical-H 4.75 -0.63 36,025,885 Tencent Holdings Ltd 150.80 -0.07 7,371,486 Japan Airlines Co Ltd 4,360.00 2.04 1,564,500 Diageo Plc 1,868.00 0.62 1,159,869 China Resources Beer Holdin 15.94 0.89 2,147,382 Wharf Holdings Ltd 43.20 0.12 1,442,732 Dcc Plc 5,660.00 0.71 103,870 China Resources Land Ltd 22.45 1.81 7,361,258 China Resources Power Holdin 15.38 1.05 4,607,100 Crh Plc 1,975.00 1.49 423,993 SENSEX Compass Group Plc 1,184.00 2.07 1,653,705 China Shenhua Energy Co-H 12.38 1.14 6,373,871 GCC INDICES Coca-Cola Hbc Ag-Di 1,474.00 -0.07 240,937 China Unicom Hong Kong Ltd 9.54 0.32 14,185,000 Centrica Plc 220.40 1.01 5,063,592 Company Name Lt Price % Chg Volume Citic Ltd 13.80 0.88 7,599,413 Indices Lt Price Change Carnival Plc 3,870.00 1.84 363,698 Clp Holdings Ltd 65.25 0.54 1,250,100 Doha Securities Market Zee Entertainment Enterprise 416.35 1.17 1,850,348 10,398.33 +0.38 Capita Plc 1,230.00 0.57 557,201 Cnooc Ltd 8.28 -0.12 18,380,318 Saudi Tadawul Yes Bank Ltd 731.45 -0.20 1,568,710 6,930.60 -61.59 Burberry Group Plc 1,221.00 0.99 636,917 Cosco Pacific Ltd 8.70 -1.02 4,559,854 Kuwait Stocks Exchange Wipro Ltd 564.05 0.46 842,502 5,583.81 -44.60 Bunzl Plc 1,896.00 1.39 180,693 Esprit Holdings Ltd 8.65 6.13 5,402,043 Bahrain Stock Exchage Vedanta Ltd 91.95 0.05 8,423,485 1,202.43 -1.97 Bt Group Plc 469.75 0.58 5,036,816 Fih Mobile Ltd 3.07 0.99 7,473,927 Oman Stock Market Ultratech Cement Ltd 2,818.40 0.24 157,228 5,429.36 -5.38 British Land Co Plc 797.00 0.44 1,056,815 Hang Lung Properties Ltd 18.00 0.22 1,797,658 Abudhabi Stock Market Tech Mahindra Ltd 518.95 0.03 628,200 4,296.16 +43.98 British American Tobacco Plc 3,792.50 0.30 744,707 Hang Seng Bank Ltd 147.50 1.30 602,231 Dubai Financial Market Tata Steel Ltd 255.30 0.47 4,502,209 3,134.82 +15.42 Bp Plc 358.80 -1.95 15,768,460 Henderson Land Development 47.55 -0.31 849,207 Tata Power Co Ltd 67.10 -0.59 2,146,914 Bhp Billiton Plc 771.40 -0.66 6,578,092 Tata Motors Ltd 391.85 -0.55 7,802,134 Bg Group Plc 1,001.50 1.52 3,425,890 Tata Consultancy Svcs Ltd 2,455.80 -0.28 878,362 Berkeley Group Holdings 3,695.00 2.27 217,904 Sun Pharmaceutical Indus 811.35 -0.03 2,916,995 Barratt Developments Plc 631.00 2.44 1,160,709 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 228.20 -0.31 7,763,112 Barclays Plc 221.80 0.05 10,786,624 Reliance Industries Ltd 1,015.40 0.49 3,658,043 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Bae Systems Plc 507.00 1.95 2,570,713 Punjab National Bank 120.00 -0.37 3,332,423 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Babcock Intl Group Plc 1,021.00 -0.20 352,174 Power Grid Corp Of India Ltd 140.95 -0.84 4,891,700 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Aviva Plc 519.00 0.00 3,426,132 Oil & Natural Gas Corp Ltd 239.75 -0.19 2,877,629 this data.” Astrazeneca Plc 4,611.00 1.56 727,873 Ntpc Ltd 144.80 0.59 10,217,666 Associated British Foods Plc 3,358.00 0.57 188,776 Maruti Suzuki India Ltd 4,636.90 -0.07 268,132 Ashtead Group Plc 1,125.00 1.17 742,494 Mahindra & Mahindra Ltd 1,264.60 1.22 459,984 Arm Holdings Plc 1,047.00 0.87 964,888 Lupin Ltd 1,846.75 0.32 691,624 CURRENCIES Antofagasta Plc 458.10 -0.97 1,516,841 Larsen & Toubro Ltd 1,289.55 -0.43 1,653,446 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Anglo American Plc 305.05 -7.01 6,995,879 DINAR DINAR Kotak Mahindra Bank Ltd 706.20 -0.25 1,131,094 Admiral Group Plc 1,665.00 1.59 244,326 Itc Ltd 324.85 -0.41 3,126,172 Aberdeen Asset Mgmt Plc 290.90 0.31 2,439,177 Infosys Ltd 1,104.70 -0.00 1,728,734 3I Group Plc 483.60 0.79 686,548 Indusind Bank Ltd 958.75 0.12 790,604 #N/A! 0.00 0.00 - Idea Cellular Ltd 140.65 0.61 3,669,031 Icici Bank Ltd 264.75 0.27 9,093,079 TOKYO Housing Development Finance 1,234.30 0.54 1,974,708 Hindustan Unilever Ltd 857.90 -0.92 801,059 Hindalco Industries Ltd 84.40 -0.65 5,466,876 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 2,731.90 0.83 293,526 East Japan Railway Co 11,365.00 0.71 703,400 Hdfc Bank Limited 1,077.95 0.06 1,076,104 Itochu Corp 1,444.50 0.94 2,983,700 Hcl Technologies Ltd 854.50 -1.52 1,173,999 Fujifilm Holdings Corp 4,950.00 1.21 716,800 Grasim Industries Ltd 3,742.40 1.28 65,227 Yamato Holdings Co Ltd 2,586.50 0.56 822,200 Gail India Ltd 366.05 1.13 1,677,453 Chubu Electric Power Co Inc 1,633.00 0.55 1,178,200 Dr. Reddy’s Laboratories 3,100.50 -0.65 677,036 Mitsubishi Estate Co Ltd 2,530.00 1.08 2,649,000 Coal India Ltd 321.75 -1.15 2,451,701 Mitsubishi Heavy Industries 534.00 0.11 17,107,000 Cipla Ltd 653.85 -0.57 502,969 Toshiba Corp 232.10 2.70 73,081,000 Cairn India Ltd 137.90 -0.83 1,753,067 Shiseido Co Ltd 2,480.00 -0.30 1,699,600 Bosch Ltd 18,549.75 0.76 9,630 Shionogi & Co Ltd 5,544.00 1.93 1,247,600 Bharti Airtel Ltd 335.25 1.06 2,598,857 Tokyo Gas Co Ltd 559.90 1.14 6,030,000 Bharat Petroleum Corp Ltd 902.60 -0.08 876,058 Tokyo Electron Ltd 7,326.00 -0.22 624,200 Bharat Heavy Electricals 168.55 -1.69 3,830,504 Panasonic Corp 1,240.00 0.16 6,136,300 Bank Of Baroda 157.85 -0.69 2,754,050 Fujitsu Ltd 608.30 -0.85 7,650,000 Bajaj Auto Ltd 2,530.45 1.52 227,039 Central Japan Railway Co 21,405.00 0.30 372,200 Axis Bank Ltd 458.35 0.66 6,465,383 T&D Holdings Inc 1,622.50 1.22 1,750,500 Asian Paints Ltd 880.10 -0.11 630,953 Toyota Motor Corp 7,454.00 -0.40 9,706,400 Ambuja Cements Ltd 205.55 1.41 1,435,888 Kddi Corp 3,140.00 0.29 3,188,500 Adani Ports And Special Econ 263.55 0.59 1,952,049 Nitto Denko Corp 8,905.00 1.76 937,900 Acc Ltd 1,350.45 1.47 171,660 Gulf Times 14 Wednesday, December 30, 2015 BUSINESS

ECB reverse auctions to add competition in extended QE programme

Bloomberg taking a gradual approach to Madrid opening up its bond-buying plan to more competition. That’s in contrast to the Bond purchases under Federal Reserve, whose multi- the European Central year QE programme largely Bank’s quantitative-easing used reverse auctions, in programme in 2016 may which investors and the public surprise some investors who typically were advised days in grew accustomed to trading advance of which securities on a strictly bilateral basis — were targeted. via a phone call, e-mail, or on “Because auctions tend to private trading systems. be more competitive, the After buying more than auction prices should be €480bn ($524bn) since March better” for the central banks in government and agency that buy, even as dealers may bonds where prices and “lose some profit margin,” targeted securities weren’t said Haoxiang Zhu, assistant disclosed, the ECB will begin professor of finance at the using more transparency in Massachusetts Institute of deals. Some of the 19 euro-area Technology. central banks that carry out QE At the same time, “since now may use reverse auctions, auctions are transparent about where potential sellers the timing of the purchases, compete to undercut one the dealers may actually another on price, the Frankfurt- source the bonds more based institution said. eff iciently before delivering” After the French, Dutch and them in sales, said Zhu, who Lithuanian central banks studied reverse auctions at tested the method since the Fed. October, determining it can The ECB endorsed reverse produce “competitive pricing,” auctions for some central the ECB said reverse auctions banks, without specifying may be used alongside which ones, and only in the traditional buying in “some part of its QE programme specific market segments,” dedicated to government and without describing them. agency bonds, according to a Conscious of reduced trading statement on its website. levels, the ECB said the new An off icial at the Bank of Spain purchase method was found said the nation’s central bank A view of the Bank of England (BoE) in London. After the US Federal Reserve increased interest rates for the first time in almost a decade this month, the risk is that concern about to be “useful” in less-liquid didn’t think it was necessary to the EU referendum will leave the BoE lagging further behind its US peer, weighing on the pound’s outlook. market segments. The ECB is use reverse auctions.

No further eurozone Pound outlook darkens expansion seen in next few years: EU offi cial on referendum with AFP for eurozone membership,” Brussels Dombrovskis said. But at the moment, no EU member is in the “euro waiting he eurozone is not expect- room”, with the exception of ed to welcome any new Denmark, which has a special Tmembers in the coming status, he said. BoE stuck on launchpad years, as the region’s long crisis Dombrovskis said that Bul- seems to have put some coun- garia and Romania had both Bloomberg follow its US counterpart with on December 22, the weakest tainty dissipates, the capital- week showed the economy ex- tries off , deputy European Com- expressed interest in taking the Londona a lag of about three months, ac- since April 15. fl ow situation will be positive panded 0.4% in the third quar- mission chief said in a newspaper fi rst step to joining the euro. cording to economists at Deut- SocGen predicts the pound again, he said. ter, down from a revised 0.5% in interview yesterday. And preliminary talks have sche Bank. But markets cur- will drop to $1.41 by the end “Then the focus is completely the previous three months. “No new members are ex- also been held with the previ- he odds are stacking up rently aren’t pricing in a full rate of September, a level not seen shifting back to the rate outlook Forward contracts based on pected to join in the next few ous government in Poland. against the pound for increase until the fi rst quarter of since 2009. The median fore- and then the market will once the sterling overnight index years,” Valdis Dombrovskis told “But it may be the case that T2016. 2017. cast of economists surveyed by again understand the BoE is well average, or Sonia, aren’t fully the daily Die Welt. the new government in Warsaw With growth slowing and the Britain leaving the EU “is Bloomberg is for Britain’s cur- ahead of other central banks af- pricing in a 25-basis-point in- Dombrovskis is the EU Com- is somewhat more reserved,” potential for a referendum on a lose-lose” situation that rency to end that month at $1.52, ter the Fed.” crease to interest rates until missioner in charge of the euro Dombrovskis said. Britain’s future in the European “could delay any hike from the with the prediction trending One factor going against 2017. In the US, markets are sig- and social dialogue. “Initially, joining the euro Union as soon as June, options Bank of England,” said Vincent lower since early November. the pound is its own strength. nalling a more than 50% chance Out of the 28 EU member seemed attractive to the new traders are the most bearish Chaigneau, global head of rates Even so, that split shows that Deutsche Bank’s sterling trade- of a second rate increase by states, 19 have signed up to the EU members. But the euro cri- on the pound in more than six and foreign-exchange strategy not all strategists are convinced weighted index is set to gain March. single currency. sis changed this. And the Greek months. The currency has un- at Societe Generale in London. by the risks that an EU vote this year, as it has done in all but “Over the course of the past “Before a country joins the crisis all the more so,” he said. dershot analysts’ forecasts by “In this context there is scope would pose. The most recent one year since 2010. It soared to six years being a pound bull has euro, it must have a fi xed ex- The last countries to join the the most since 2010 this year, for short-term rate differen- poll of voting intentions, re- its strongest level in more than proved one of the easier calls change rate to the euro. This euro were Latvia in 2014 and while predictions for the end of tials to widen to push cable to leased last week, found 45% of seven years against the euro in for forecasters,” Simon Derrick, mechanism is the waiting room Lithuania in 2015. 2016 haven’t been lower since the downside,” he said, refer- respondents saying they’d opt July. chief currency strategist in Lon- the week of the general election ring to the pound versus the to stay in, with 38% preferring Even the pound’s decline this don at Bank of New York Mellon “Before a country in May. dollar. an exit. year versus the broadly stronger Corp, wrote in a note to clients joins the euro, it After the Federal Reserve in- The premium for three-month Manuel Oliveri, a foreign- dollar, which has benefi ted from last week. must have a fi xed creased interest rates for the options to sell sterling versus the exchange strategist at Credit the Fed rate hike, is muted in “While shifting expectations exchange rate fi rst time in almost a decade this greenback reached 1.2 percent- Agricole’s corporate and invest- comparison to other G-10 cur- about the future path of mon- to the euro. This month, the risk is that concern age points on Monday, the most ment-banking unit in London, rencies. etary policy in the UK are likely mechanism is about the EU vote will leave the since June, risk-reversal data is in the more bullish camp. He With infl ation near zero, well to remain the dominant issue in the waiting room Bank of England lagging further compiled by Bloomberg show. said sterling has the “biggest below the Bank of England’s determining the performance of for eurozone behind its US peer, weighing on The pound was little changed at upside risk” among Group- 2% target, offi cials have kept GBP in the months ahead, other membership,” the pound’s outlook. In the past $1.4871 as of 9:45 a.m. London of-10 currencies. UK rates at a record-low 0.5% factors also suggest caution Dombrovskis 20 years, the BoE has tended to time, after dropping to $1.4806 Once the referendum uncer- throughout 2015. A report last might be warranted.” says Valeant selects trio to fill in for ailing CEO; shares dive

Reuters privacy. The spokeswoman also declined vast majority of patients with pneumonia New York to comment on Pearson’s medical history. fully recover thanks to eff ective antibiot- “It is an inopportune time for their ics. But others are slow to recover and leader to take sick leave after the can be tired for months afterward, he Valeant Pharmaceuticals International company has faced credibility issues in said, particularly if they have pre-existing yesterday said a group of company recent months,” said Morningstar analyst structural lung disease, including damage executives will immediately take over for Damien Conover. “If the company was on from emphysema, bronchitis, asthma and its chief executive off icer until he returns solid footing, it wouldn’t be as much of smoking. from medical leave, news that sent its an issue.” He noted pneumonia can be caused by shares tumbling 10%. Valeant said its board has created an a range of bacteria, viruses, fungi, as well The Canadian company said CEO “off ice of the chief executive off icer,” as inflammation, and in very severe cases Michael Pearson, 56, was being treated which will include general counsel Robert can cause heart attacks or heart failure. for severe pneumonia. Chai-Onn, group chairman Ari Kellen and Pearson, who joined Valeant as CEO in The decision to put leadership in the chief financial off icer Robert Rosiello. 2010 after a 23-year career at consultancy hands of three executives was unusual, The board also created a committee McKinsey & Co, has made rapid-fire ac- experts said, and suggested a lack of con- to oversee and support the off ice of the quisitions that greatly increased Valeant’s fidence in any one company executive to CEO, including lead independent director size and share price. But Valeant’s stock temporarily fill Pearson’s shoes. Robert Ingram, president of ValueAct has plunged more than 60% since Au- A spokeswoman for Valeant, based in Capital Mason Morfit and former Valeant gust, due largely to questions about the Laval, Quebec, declined to comment on CFO Howard Schiller. company’s marketing practices and the the decision to appoint a trio to take over Jerome Reisman, a partner in the law sustainability of its business model. for Pearson. firm Reisman Peirez Reisman and Ca- Investors have been turning up Valeant and Pearson have come pobianco of Garden City, New York, said pressure on the Laval, Quebec-based under pressure for steep price increases Valeant’s three-member CEO committee company to provide a more detailed plan on some drugs and for close ties to a will likely prove too cumbersome. on how it will boost profits in 2016. speciality pharmacy that used aggressive “With all these kings they’re appointing Under a deal announced this month, methods to overcome insurer barriers to to the troika, nobody will be able to make Walgreens Boots Alliance will take over reimbursing its medicines. decisions,” said Reisman, a financial legal many functions previously handled by Pearson was hospitalised with the consultant to numerous drugmakers. “A specialty pharmacy Philidor Rx Services. lung condition on Friday. The company committee on a committee just won’t Valeant cut ties with the Philidor in re- spokeswoman yesterday declined to say work. You need a strong CEO.” sponse to allegations of aggressive billing whether he had experienced any compli- Dr Bruce Hirsch, an infectious disease practices. cations or when he might return, adding specialist at North Shore University Valeant shares fell 10.5% to $102.14 on Valeant Pharmaceuticals chairman Michael Pearson poses following their annual general meeting in Laval, Quebec, on it was honouring a family request for Hospital in Manhasset, New York, said the the New York Stock Exchange. May 19, 2015. Pearson, 56, is being treated for severe pneumonia. Gulf Times Wednesday, December 30, 2015 15 BUSINESS Brazil reports Brazil central bank must worst primary avoid more tightening, budget defi cit of ’15 in Nov says ruling party chief Bloomberg es the government’s primary Brasilia budget target for this year, Bloomberg allowing it to post a deficit Brasilia rather than a surplus. Ana- razil reported the biggest lysts surveyed by the central primary budget defi cit of bank don’t expect the govern- razil should refrain from Bthe year last month, as ment to close the budget gap cutting investments and the deepening recession erodes until 2017. Bconsider raising its infl a- tax revenue and dissent in Con- The fi scal deterioration puts tion target to avoid further in- gress thwarts government ef- Latin America’s largest country terest rate increases, according forts to cut spending. at risk of another credit down- to the head of President Dilma The budget gap before inter- grade and threatens to exacer- Rousseff ’s Workers’ Party. est payments, which includes bate the sell-off of Brazilian as- Lifting interest rates would do states, cities and government- sets such as the real, the worst more to hurt investment than it run companies, was 19.6bn performing emerging-market would to contain infl ation cur- reais ($5.1bn) in November, currency this year after the Ar- rently at more than 10%, Rui compared to the median fore- gentine peso. The real was little Falcao, president of the Work- cast of 14 analysts surveyed by changed in mid-morning trad- ers’ Party, said in an interview. Bloomberg for a 19.8bn-real ing at 3.8598 per dollar. The party instead proposes rais- defi cit. The 12-month primary ing the government’s infl ation Investors and credit rat- budget gap as a percentage of target so there would be less ing companies use Brazil’s so- gross domestic product ex- pressure on the central bank to called primary budget result panded to 0.89% in Novem- resume monetary tightening. to gauge the country’s fi scal ber from 0.7% a month ear- “It’s impossible to maintain in- health. lier. The nominal budget defi cit terest rates at this level when the Congress in December widened to 43.1bn reais from economy is shrinking,” Falcao said. passed legislation that relax- 29.4bn reais a month earlier. “It’s an illusion that higher interest rates will contain infl ation.” Renewed pressure from the Workers’ Party to change eco- nomic policy will test Finance Refuge from Fed found Minister Nelson Barbosa’s re- solve to adhere to fi scal auster- in Chile as ties to ity, especially as business lead- ers and local politicians demand treasuries break down more government aid. The party had pushed for Rousseff to re- place Finance Minister Joaquim Lifting interest rates would do more to hurt investment than it would to contain inflation currently at more than 10%, Rui Falcao, president of the Bloomberg Moncado at Banco de Credito Levy with Barbosa, then plan- Workers’ Party, said in an interview. Santiago & Inversiones and Sebastian ning and budget minister. Senzacqua at Bice Inversiones Falcao said economic policy in ernor Rodrigo Rollemberg said ing costs unchanged at 14.25% interest rate rises and invest- budget surplus target before in- in Santiago. 2016 should focus on saving jobs in Brasilia. Rousseff ’s press of- for three consecutive meetings. ment cuts,” he wrote in an edito- terest payments for next year Latin America’s best-rated “The increase in local yields and protecting salaries to help fi ce declined to comment on Policy makers said in a quarterly rial posted on the party’s website than the one approved by Con- country is providing a hideout will be limited, or zero, struggling workers and improve the party’s proposals. The press report last week they would take on Monday. Folha de S Paulo pre- gress. Barbosa last week said he’ll for investors seeking to avoid precisely because the flows Rousseff ’s popularity as she fac- offi ces for the fi nance ministry measures to bring infl ation to viously reported the party wants take “all measures necessary” to rising US Treasury yields while which could have a greater es impeachment proceedings. and central bank didn’t respond the 4.5% target by 2017. to raise the infl ation goal to 5.5%, achieve the target set out by leg- keeping their money in the impact are in the hands of Governors also weighed in on to questions sent by e-mail. While Brazil’s central bank has while keeping the range of toler- islators, adding that there’s no safest sovereigns. local institutions,” said BCI’s economic policy and met with Traders in the swaps mar- operational autonomy, mone- ance unchanged at 2 percentage discussion “at this moment” of Chilean bonds are less Moncado. Barbosa on Monday to present ket expect the central bank to tary policy should respond to the points. changing the goal to post a prima- correlated to Treasuries than Foreign ownership of Chilean proposals to “generate jobs and resume interest rate increases government’s broader economic Falcao also said it would have ry surplus equal to 0.5% of gross at any point since May 2009, debt rose following Citigroup’s income,” Federal District Gov- in January after it kept borrow- policy, Falcao said. “Enough of been better to adopt a less rigid domestic product. according to a central bank decision in 2013 to off er global study published last week. depositary notes designed to And while yields on the debt make it easier for foreigners may be low compared to to invest in peso-denominated historical levels, returns are government bonds. Yet by stable. Risk-adjusted returns one measure, holdings have After 39-point yield surge, Argentina bonds a buy to peso bears from Chilean local-currency since more than halved. At less bonds were the highest in the than 5%, foreign ownership region in the second half of of Chilean bonds is a fraction Bloomberg For Argentina to become competitive, of a broader economic overhaul aimed December 17, the yield in pesos on dollar- 2015. Investors are scouting of the levels in other Latin Buenos Aires the currency needs to weaken as much as at luring capital to a country that suff ers linked bonds due in 2016 rose to 10.7% for alternatives to Treasuries American markets. Foreigners 25% by the end of 2016, according to Alejo from infl ation estimated at about 30%, from negative 29% on September 12, ac- as economists forecast that own more than half of Costa, the head of research at brokerage anaemic growth and a lack of business cording to data compiled by Puente. That US government bond yields Mexico’s notes. urging yields on Argentina’s dollar- Puento Hnos Sociedad de Bolsa. Years of confi dence. He has also pledged to settle compares with a yield of just 6.6% on will rise by as much as 0.76 Chile has the fourth-highest linked bonds are a buying opportu- support from the central bank kept the with creditors that sued the country for Argentina’s defaulted overseas dollar-de- percentage point next year as possible rating from Moody’s Snity for investors convinced the local peso artifi cially strong, stifl ing growth full repayment after its 2001 default and nominated bonds due in 2033. the Federal Reserve embarks Investors Service. Standard & currency has further to fall. and discouraging foreign investment in a eliminated taxes that discouraged farmers The peso is stronger than it otherwise on its first rate-tightening Poor’s rates it an equivalent The peso-denominated notes, which pay country that suff ered from a lack of dol- from selling their crops overseas. would be because of temporary eff ects cycle in 11 years. Chile, the AA- and Fitch Ratings a level in dollars upon maturity, saw yields go as lars and lawsuits that prevented it from While the peso plunged as much as 30% related to the end of currency controls, top-rated emerging market lower at A+. That ranks it a level low as negative 29% last year as investors borrowing overseas. “The exchange rate is on its fi rst day of free trading, it recovered according to Leo Chialva, a partner at along with China, may be an above Japan and in line with bid up assets that provided protection from relatively low and the dollar is cheap cur- some of those losses and now trades just Delphos Investment in Buenos Aires. Ar- attractive option because China. The country yesterday a plunging peso. After newly elected Presi- rently,” said Costa, who recommends the 25% weaker at about 13 per dollar. Traders gentina’s currency gained as farmers, who the concentration of local filed in the US to sell as much dent Mauricio Macri fulfi lled a campaign bonds due in 2016 for local investors. “It’s of non-deliverable forwards in New York, had withheld crops in storage bags as they holders means the bonds as $3bn of dollar bonds. It last pledge to let the currency trade freely this an attractive alternative with a signifi cant contracts that are used to speculate on waited for a better exchange rate, sold are less vulnerable to rising sold dollar-denominated debt month, sparking a 27% drop, yields shot up premium, considering it’s an asset that foreign-exchange levels, see Argentina’s their goods while importers waited to ac- international yields, according in December 2014, and sold to more than 10% as some investors con- isn’t purchased in dollars.” peso trading at 18 per dollar in 12 months. cess the market until new rules governing to economists Antonio bonds in euros in May. cluded the peso was trading at fair value. Macri’s end to currency controls is part Since the peso was allowed to fl oat on their purchases are implemented.

Pep Boys says Icahn off er is superior, moves to terminate Bridgestone deal

Reuters, Bloomberg Icahn’s third bid for the com- their presence in the tyre and New York pany including two moves to automotive-repair sector by sweeten the deal this month adding Pep Boys’ 800 loca- Bridgestone and Icahn En- tions across more than 30 ep Boys-Manny Moe terprise were not immedi- states. Bridgestone operates & Jack said its board ately available for comment. more than 2,200 tyre and Pdetermined activist The auto parts retailer has automotive centres in the investor Carl Icahn’s latest been on the block since June, country. buyout off er was superior when it said it was consider- Icahn, meanwhile, plans to to the deal it accepted from ing selling itself as part of a combine Pep Boys with the Bridgestone Corp, and the strategic review. Auto Plus chain, which he US auto parts retailer moved Bridgestone had said on acquired earlier this year. to terminate the Bridgestone October 26 that it would buy Icahn’s increased off er sent agreement. Pep Boys to boost its retail Pep Boys’ stock up as much Icahn’s latest bid of $18.50 network by more than a third as 7.1% to $18.65 in late trad- per share on Monday val- in the US. ing. Shares of the company, ues Pep Boys at about $1bn, Icahn had reported a whose full name is Pep Boys while Bridgestone’s previous 12.12% stake in Pep Boys ear- — Manny, Moe & Jack, had off er of $17 per share val- lier in December and said the already gained 77% this year, ued the company at about company’s retail automo- largely driven by the bidding $947mn. tive parts business would be war. Bridgestone rose 0.5% Pep Boys said that its a perfect fi t for Auto Plus, a to 4,155 yen as of 2:17 p.m. in board has delivered a notice competitor he owns. Tokyo. to Bridgestone to terminate Meanwhile, Bridgestone Pep Boys gave Bridgestone their previous agreement. Corp will decide its next until 5 p.m. New York time Icahn Enterprises said it move within three business on December 31 to make an- would be willing to bid in ex- days, spokesman Fusamaro other off er or terminate their cess of $18.50 per share for Iijima said yesterday in an e- agreement. Icahn had pre- Pep Boys unless Pep Boys in- mail. viously said he was willing creases Bridgestone’s termi- The takeover battle for Pep to pay at least $18.10 a share nation fee of $39.5mn. Boys underscores the confi - and was puzzled by Pep Boys’ Icahn Enterprises’ off er is dence Icahn and Bridgestone board opting for the Bridge- not subject to any due dili- have in the US auto-parts stone off er. gence, fi nancing or antitrust retailing industry, which has “We cannot understand conditions. benefi ted from an aging vehi- the actions of the directors in Icahn and Bridgestone cle fl eet on American roads. that they know we were will- have been in a bidding war for Both Bridgestone and Ic- ing to off er a lot more than Icahn’s latest bid of $18.50 per share on Monday values Pep Boys at about $1bn, while Bridgestone’s previous off er of $17 per share valued the company at Pep Boys. Monday’s off er was ahn are seeking to expand $17,” he said last week. about $947mn. Wednesday, December 30, 2015 GULF TIMES BUSINESS

Montaud: Committed. Employees from partner institutions in the oil and gas sector and university teachers, among others, at the technical training session held at the Total Research Centre-Qatar (TRC-Q). Technical training session held at Total Research Centre-Qatar

otal’s senior international spe- bonate headquarters team and Richard fi eld, and this is all thanks to new tech- “Knowledge-sharing is a key to suc- be used in the oil and gas industry. In carbonates, on geochemistry and acid cialists from its Exploration & Labourdette led the training on “Geo- nical developments in carbonate depo- cess, and we are strongly committed to this way, Total supports the building of stimulation. TProduction Scientifi c and Tech- logical heterogeneities in carbonate sition, statigraphy and seismic imag- such scientifi c exchanges with our Qa- a knowledge-based economy in Qatar”, Total has had a continuous pres- nical Centre in Pau, France, recently reservoirs in the Middle East”. ing. tari industrial and academic partners, he said. ence in Qatar for close to 80 years, organised a technical training session at They shared their collective 47 years TRC-Q is one of the seven worldwide for the benefi t of all,” said Pierre Mon- TRC-Q has taken over innova- and is the only international oil com- the Total Research Centre-Qatar (TRC- of experience, and helped attendees research and development centres of taud, director, Total Research Centre- tive research projects, especially in pany active in all branches of Qatar’s Q) for more than 40 employees from understand the large and small scale Total E&P, and has become a”hub for Qatar. carbonate reservoirs as all of Qatar’s oil and gas sector. This includes ex- partner institutions in the oil and gas geological characteristics of carbonate development” of new technologies, “How we work is by developing new currently producing oil and gas res- ploration and production, refining sector, and university teachers. reservoirs. The purpose was to better research and knowledge-sharing with ideas, testing them on producing fi elds, ervoirs are carbonates. In 2015 alone and petrochemicals, and the market- Arnaud Meyer, project leader in car- represent the behaviour of a dynamic Qatari partners. and analysing the results so they may they filed two new patents related to ing of lubricants.

QSE treads a flat path as most shares lose value

By Santhosh V Perumal net sellers to the extent of Saudi shares fall but Business Reporter QR11.97mn compared with net buyers of QR12.2mn the previous day. The Qatar Stock Exchange largely The GCC (Gulf Cooperation treaded a flat path yesterday Council) institutions were despite more than 76% of the also net sellers to the tune of traded stocks losing value. QR3.08mn against net buyers of end off lows as budget Local and foreign retail QR9.07mn on Monday. investors as well as Gulf Non-Qatari individual investors institutions turned net profit turned net sellers to the extent takers as the 20-stock Qatar of QR5.47mn compared with Index was up mere 0.38 points net buyers of QR2.77mn on to 10,398.33 points. December 28. Buying interests in the banking The GCC individual investors’ introduces austerity and transport sectors was to a net profit booking strengthened great extent contained by selling to QR9.93mn against QR0.7mn Saudi budget wins approval natural gas. “With a 67% hike pressure — especially in the the previous day. from many analysts; but in feedstock prices, this will insurance, consumer goods and However, domestic institutions nervous retail investors have a significant squeeze on real estate — in the market, which turned net buyers to the tune of dump stocks; petrochemicals margins, because the cement is down 15.37% year-to-date. QR10.09mn compared with net hardest hit as feedstock producers will not be able to Large cap equities were seen buyers of QR9.8mn on Monday. prices rise; cement, pass on the higher cost to the high in demand in the bourse, Non-Qatari institutions were construction vulnerable to consumer since there is still a where overall volumes declined also net buyers to the extent of spending cuts; banks, many huge surplus of cement, close as large institutional investors QR20.4mn against net sellers of second-tier stocks gain to 22mn tonnes.” are away on holidays. QR13.52mn on December 28. Utility Saudi Electricity Co, However, domestic and foreign Total trade volume fell 22% to Reuters which had jumped 9.9% on institutions were seen bullish in 4.85mn shares, value by 20% to Dubai Monday in anticipation of the the bourse, where the industrials, QR199.77mn and deals by 21% electricity price hike, dropped telecom and banking sectors to 2,562. 5.7%. It said the price increase dominated the trading ring as There was 52% plunge in the audi Arabia’s stock index would have little effect on its their stocks accounted for more consumer goods sector’s trade fell but closed well off its bottom line because it would be than 63% of the volumes. volume to 0.26mn equities, 56% Slows yesterday after the offset by higher fuel costs. Market capitalisation rose 0.35% in value to QR8.16mn and 42% 2016 state budget introduced However, rising stocks out- or about QR2bn to QR551.21bn in transactions to 166. spending cuts, rises in fuel, nat- numbered losers 88 to 64 as with large cap equities gaining The industrials sector’s trade ural gas feedstock and electricity many second- or third-tier 0.6%; while small, mid and volume plummeted 47% to prices, and tax hikes. Other mar- stocks such as insurers climbed. micro caps falling 1.34%, 0.86% 1.17mn stocks, value by 29% kets in the region were mixed. Many banks also gained as they and 0.09% respectively. to QR82.45mn and deals Analysts welcomed the budg- were seen as not directly vulner- The Total Return Index was by 40% to 727. The market et as showing the government’s able to the austerity steps; Al- rather unchanged at 16,162.71 witnessed 20% shrinkage in willingness to adopt diffi cult inma Bank rose 4.8%. points, while All Share Index the insurance sector’s trade reforms to address a huge defi - Elsewhere in the Gulf, Du- was down 0.02% to 2,764.81 volume to 0.08mn shares, 13% cit caused by low oil prices. As bai fell in early trade but ended points and Al Rayan Islamic in value to QR5.21mn and 29% such, it could help to sustain Investors watch share price movements displayed on screens in a hall at ANB Invest, the investment arm 0.5% higher. GFH Financial, a Index by 0.47% to 3,827.1 points. in transactions to 76. confi dence in the riyal’s peg to of the Arab National Bank, in Riyadh (file). Some Saudi stocks were sold indiscriminately yesterday as speculative favourite that was Banks and financial services The banks and financial the US dollar. retail investors reacted badly to the biggest shake-up to economic policy for over a decade. the market’s most heavily traded stocks gained 0.52% and services sector’s trade “It is a step in the right direc- stock, jumped 7.5%. transport 0.23%; whereas volume tanked 19% to 0.77mn tion, as these steps will not bring many investors had feared, and Saudi Basic Industries, the large operating margins, so they Abu Dhabi gained 1.0% on the insurance shrank 2.22%, equities and value by 9% to the budget into balance again the planned cut in 2016 spend- biggest petrochemical producer, would not necessarily post loss- back of banks. National Bank of consumer goods (0.76%), realty QR46.76mn, while deals grew but do help to improve the fi s- ing was smaller. tumbled 4.0% and Saudi Kayan es in 2016. Fujairah, which rarely trades, (0.37%), telecom (0.09%) and 7% to 679. cal sustainability of the country Nevertheless, some Saudi lost 2.1%. Methane was raised to Construction and cement jumped 14.9% in its heaviest industrials (0.01%). The real estate sector saw and its ability to withstand low stocks were sold indiscrimi- $1.25 per million British thermal fi rms are likely to be hurt by volume this year. Major gainers included QNB, 14% decline in trade volume oil prices now and in the future,” nately yesterday as retail in- units and ethane to $1.75, from spending cuts in the budget. Egypt’s index climbed 0.8% Industries Qatar, Mesaieed to 0.74mn stocks, 18% in said Jaap Meijer, managing di- vestors reacted badly to the 75 US cents for both. Abdullah Abdul Mohsin al- as real estate fi rm Palm Hills De- Petrochemical Holding, value to QR16.27mn and 2% in rector for equity research at Ar- biggest shake-up to economic “Saudi petchem producers Khodari Sons slid 0.9%, and velopment gained 1.2%. But GB Ooredoo and Milaha; even transactions to 332. qaam Capital in Dubai. policy for over a decade. The have lost the cost advantage, Saudi Cement Co fell 2.2% after Auto slipped 3.6% after it said it as Qatar Islamic Bank, The telecom sector’s trade Many of the austerity meas- main index ended down 0.9% and they cannot pass on this saying it would take a charge of planned to allocate 2% of its to- Commercial Bank, Doha Bank, volume was down 7% to ures had been expected and were at 6,931 points, off a low of cost in their prices to end-users 66.2mn riyals this quarter as it tal shares to an employee com- Al Khaliji, Aamal Company, Gulf 1.13mn shares, value by 25% to partly factored into stock prices 6,756 points. because that is determined by wrote off two kilns that would pensation programme. International Services, Qatar QR18.91mn and deals by 25% before the announcement, ana- Petrochemical producers, market forces of demand and remain idled indefi nitely — a In Kuwait, the index dropped Insurance, Mazaya Qatar, United to 438. However, the transport lysts said. which generally account for supply,” said Iyad Ghulam, ana- sign of a gloomy demand out- 0.8% to 5,584 points, while, the Development Company, Ezdan, sector’s trade volume more than In addition, they said, the about a third of the market’s lyst at NCB Capital. look. Oman index edged down 0.1% Barwa, Vodafone Qatar and doubled to 0.72mn equities, 2015 defi cit of 367bn riyals capitalisation, were particularly He added, however, that the Santhosh Balakrishnan at to 5,429 points and the Bahrain Nakilat bucked the trend. value surged 70% to QR22mn ($97.9bn) was lower than the hard hit as their margins will be companies could absorb some Riyad Capital noted cement index edged down 0.2% to 1,202 Local retail investors turned and transactions by 45% to 144. 400bn to 450bn riyals which hurt by more costly feedstock. of the costs because they have firms were heavy users of points.

Waseela opens office in Qatar Ooredoo hosts managed security services event Integrated ICT system and service position ourselves as a highly capable solutions provider Waseela has opened systems integrator across telecoms, oredoo hosted a special event be used over the web, such as a fully off ice in Qatar as part of its regional ICT and ELV solutions. The launch of for companies from some of customisable dashboard, which is se- expansion. a dedicated branch in Doha improves OQatar’s key industries recent- cured by service level agreements. Through its new branch in Doha’s Gate our ability to deliver unmatched ly, showcasing its portfolio of man- “Ooredoo has been working with Building Tower 2, Waseela seeks to tap service and expertise in integrated aged security services. major global security brands, and of- into growing demand for integrated solutions to clients across construction, The event, which welcomed around fers a host of solutions to combat ICT (information communication public sector and industry projects,” 30 large business customers, provided online threats, in addition to enhanc- and technology) systems in Qatar Waseela’s chief executive Samer Taha a run-through of Ooredoo’s managed ing the level of security available to as the country’s construction boom said. security services, which include net- companies in Qatar, such as advanced gathers momentum. Since its 2007 Waseela has been building telecom work security, web and email security, threat protection, managed SIEM, incorporation in Jordan, Waseela has solutions since 2007, and has a strong security and vulnerability solutions The managed security event in progress. vulnerability and network risk assess- expanded into the UAE and Saudi Taha: Improved ability. track record in creating advanced IP and, business continuity and disaster ment, compliance consultancy and Arabia. networking, delivering nationwide recovery. ment, but also what we can and are business continuity planning,” the Waseela’s Qatar off ice off ers clients in public security surveillance, creating wireless networks, and implementing Yusuf al-Kubaisi, COO of Ooredoo doing for their businesses.” statement adds. the country a full spectrum of solutions public safety wireless systems in indoor telecom systems for airports, Qatar, said: “We are Qatar’s busi- Adding to its security portfolio, Al-Kubaisi said in addition to the and services provided by its subsidiary underground tunnels, installing 3G and hotels, malls and universities across ness provider of choice because we Ooredoo recently announced the new SOC, customers can rely on 24x7 companies with smart solutions for 4G systems, and delivering turnkey the Gulf Cooperation Council. continue to establish and maintain a launch of a Managed Security Opera- security monitoring supported by mega construction projects a key area integrated solutions combining ICT The company has also formed a secure cyberspace for our customers. tions Centre (SOC), which off ers the “mature processes, trusted staff and of focus. with extremely low voltage (ELV) and specialised team to handle the design We work hard to safeguard our na- latest in cyber security solutions, ac- award-winning technology”. For full The firm is also undertaking building management systems (BMS). and implementation of converged tion’s interests and preserve the fun- cording to a statement. details of the solutions available, busi- specialised projects such as deploying “We started operating in Qatar in ICT, ELV and BMS solutions for large damental values of Qatar’s society. The “SOC in a Box” solution re- nesses customers can arrange a meet- broadband wireless networks for early 2015, and were quickly able to construction projects. Hosting events such as these shows quires no capital investment and ing with their account manager or ring our customers not only our invest- comes with a host of features that can the business team on 800 8000.