Thursday, December 27, 2018 Rabia II 20, 1440 AH FED CONCERNS: Page 12 Currency traders GULF TIMES on front line as markets stay wary BUSINESS of US headwinds

Corrigendum

Doha Bank successfully closes $525mn syndicated term loan

LNG output surge of 43% In the report published in yesterday’s Gulf Times (Business Page 1) on Doha Bank’s syndicated term loan closure, the amount was erroneously mentioned as QR525mn in the headline instead of $525mn. The correct headline should read as “Doha Bank successfully closes $525mn syndicated term loan”. by 2024 to drive Qatar’s The error is regretted. - Editor next development phase As oil prices plunge, Opec By Pratap John In September, Qatargas an- Chief Business Reporter nounced a long-term sale and purchase agreement (SPA) with output is at risk PetroChina International Com- atar’s decision to step up pany Limited to supply China with annual liquefi ed natural gas around 3.4mn tonnes of LNG a from unrest Q(LNG) production capac- year. ity by 43% to 110mn tonnes within Under the 22-year agreement, fi ve years was among the energy which ends in 2040, Qatargas will Bloomberg sector highlights of 2018, a year in supply LNG from the Qatargas 2 London which the country also opted out project, a joint venture between of Organisation of the Petroleum QP, ExxonMobil and Total, to dif- Exporting Countries (Opec), which ferent receiving terminals across il’s plunge has taken prices below the level all it joined in 1961, one year after the China, with the fi rst cargo to be de- but one Opec country needs to square their organisation’s establishment. livered later this month. O2019 budgets, increasing the risk of supply dis- The new LNG capacity increase Qatargas made inaugural de- ruptions from economic dislocation and social unrest. will further strengthen Qatar’s livery of LNG to Pavilion Gas, a At the Brent price of $55 a barrel, only Kuwait will be leading position as the world’s wholly-owned subsidiary of Pa- able to make ends meets next year. Opec giants Saudi largest LNG producer and exporter, vilion Energy in April this year. Arabia, Iraq and Iran need much higher prices. So do and will further boost Qatar Petro- The shipment was delivered to the the nations that have suff ered disruptions in the past leum’s (QP) strategic growth plan. Singapore LNG Receiving Termi- when prices have fallen: Libya, Venezuela and Nigeria. This production jump is expect- nal on Jurong Island onboard the As prices have dropped, the market has focused on ed to have a great impact on Qatar’s Qatargas-chartered Q-Flex vessel the impact on US shale growth next year, but recent economic growth and help stimu- ‘Al Oraiq’. history points to rising risks within the group. As oil late the country’s local economy. The file photo taken on February 6, 2017 shows the Ras Laff an Industrial City, Qatar’s principal site for production On January 1, 2019, Qatar will revenues fall, governments could soon face social un- The capacity enhancement will of LNG and gas-to-liquids, some 80km north of Doha. The new LNG capacity increase will further strengthen formally withdraw from Opec. The rest due to slower economic growth and higher unem- be achieved through four LNG Qatar’s leading position as the world’s largest LNG producer and exporter, and will further boost QP’s strategic decision to withdraw from Opec ployment. They’ll also have far less money to invest in trains, each one of nearly 8mn growth plan. was announced by al-Kaabi in the petroleum sector to keep output up. tonnes per year capacity. LNG de- Doha on December 3. “At current prices, too much attention on shale, not livery from the new project is ex- be part of a new world scale petro- The agreement covers the Amo- This is the second presence for Qatar was the fi rst country to enough on Opec,” said Olivier Jakob, managing direc- pected either in end-2023 or early chemicals complex at the Ras Laf- ca, Mizton, and Tecoalli off shore oil QP in Mexico. At the end of Janu- join Opec after the fi ve founding tor at Swiss consultant Petromatrix GmbH. 2024, HE the Minister of State for fan Industrial City. fi elds, which lie in Area 1 in Mexi- ary this year, QP won exploration nations – Iran, Iraq, Kuwait, Saudi In late 2015, when oil prices plunged after Saudi Energy Aff airs, Saad bin Sherida The petrochemicals complex co’s Campeche Bay. rights in fi ve off shore blocks in the Arabia and Venezuela – formed Arabia imposed a “pump-at-will” policy that fl ooded al-Kaabi said in September. will include an ethane cracker with Perdido and Campeche basins as the group in 1960. It’s the fi rst the market, social trouble spread across Opec, send- The new project will produce a capacity of more than 1.6 mtpy part of a consortium comprising Middle Eastern nation to leave the ing supply outages to a peak of 2.8mn bpd – though about 32mn tonnes per year (mtpy) of ethylene, making it the “largest Year-end Review Shell and Eni respectively. group. the number was exacerbated by Western sanctions on of LNG, 4,000 tonnes per day of ethane cracker” in the Middle East, In line with its growth plans, this Qatar is Opec’s 11th-biggest oil Iran. Lower prices accelerated the decline of Venezue- ethane, 260,000 barrels per day of and among the largest in the world. opportunity represents another producer, accounting for less than la’s oil industry and saw the re-emergence of violent condensate, and 11,000 tonnes per The petrochemicals complex The agreement, however, is sub- step in implementing QP’s strategy 2% of total output. confl ict in Nigeria’s main crude-producing region. day of LPG, in addition to approxi- will also include world-class deriv- ject to customary regulatory ap- to expand its international foot- “Qatar’s decision to exit Opec is Since then, even with new US sanctions on Tehran, mately 20 tonnes per day of pure ative plants, which will consolidate provals by the government of Mex- print, and to pursue Latin America not political, it was purely a busi- Opec supply outages have fallen to less than 1.7mn helium. Qatar’s position among the leading ico. Following such approval, both as an important core area for its ness decision for Qatar’s future bpd, according to Bloomberg News calculations based This will increase Qatar’s total petrochemicals producers in the Eni and QP will jointly hold 100% upstream activities. strategy towards the energy sec- on data from the US Energy Information Administra- production capacity from 4.8mn to world markets. interest in the Area 1 production QP’s international upstream tor,” QNA quoted al-Kaabi as say- tion. 6.2mn barrels of oil equivalent per Earlier this month, QP entered sharing contract, according to QP. footprint has been expanding re- ing. Despite the sharp fall over the last two and a half day. into an agreement with Italy’s Eni The deal marks another mile- cently in Brazil, Mexico, Argen- He had also said the global oil months, oil prices remain well above the depths of This year Qatar also announced to acquire a 35% participating in- stone for QP as it strengthens its tina, Cyprus, Congo, South Africa, market will not be aff ected by the 2015-16 crisis. Brent crude, the global benchmark, fell its plans to build the Middle East’s terest in three off shore oil fi elds in international footprint and ex- Mozambique and the Sultanate of move, since Qatar “is not a high last Thursday to a low of $54.65 a barrel, compared to biggest ethane cracker, which will Mexico. pands its presence in Mexico. Oman. volume producer of oil”. $27.10 in January 2016. World economy is set to feel the delayed trade war pain in 2019

Bloomberg Bank of America Merrill Lynch estimates that Huawei Technologies Co chief financial off icer Hong Kong/Washington the trade war news has accounted for a net Meng Wanzhou illustrates the risk of unex- drop of 6% in the S&P 500 this year. China’s pected developments that can quickly inflame stock market has lost $2tn in value in 2018 and already tense relations. While 2018 was the year trade wars broke out, is languishing in a bear market. “‘Trade divergence’ since 2018 and the ‘Tariff s- 2019 will be the year the global economy feels Recent data underscore concerns that trade Limbo’ into 2019 are likely to keep a high the pain. will be a drag on American growth next year. degree of uncertainty and continue to have an Bloomberg’s Global Trade Tracker is softening US consumers are feeling the least optimistic impact on trade and investment plans,” New amid a fading rush to front-load export orders about the future economy in a year, while York-based Citigroup global markets econo- ahead of threatened tariff s. And volumes are small business optimism about economic mist Cesar Rojas wrote in a recent note. tipped to slow further even as the US and improvement fell to a two-year low and com- The critical question is whether Washington China seek to resolve their trade spat, with panies expect smaller profit gains in 2019. The and Beijing can strike a deal by the March 1 companies warning of ongoing disruption. International Monetary Fund forecasts trade deadline. If they succeed, a cloud will be lifted Already there are casualties. GoPro Inc will volumes will slow to 4% in 2019 from 4.2% this off the world economy. But for now, the threat move most of its US-bound camera production year and 5.2% in 2017. They warn that trade that tensions will linger is a brake on business out of China by next summer, becoming one barriers have become more pronounced. expansion plans, and thereby the global of the first brand-name electronics makers to Europe isn’t insulated either. While Germany’s economy. take such action, while FedEx Corp recently key machinery sector will produce a record Dippin’ Dots LLC is among those caught in slashed its profit forecast and pared interna- €228bn ($260bn) this year, the trade disputes the crossfire. The US-based maker of ice tional air-freight capacity. are among reasons why growth will slow, cream and other frozen products spent three “Any kind of interference with commerce according to the VDMA industry association. years breaking into the Chinese market and is going to be a tax on the economy,” said Output will increase about 5% in real terms in opened its first stores in the country this year, Hamid Moghadam, chief executive off icer of 2018, the most since 2011, before growth slows only to pay double-digit tariff s on imported San Francisco-based Prologis Inc, which owns to 2% next year. dairy products. CEO Scott Fischer said if the almost 4,000 logistics facilities globally. “And Then there’s the risk of the US placing tariff s on US-China talks fail and additional tariff s are the world economy is probably going to slow auto imports from Europe and Japan, a move added, he’d be forced to rethink strategy, down as a result of it.” that would damage relations between some of supply chains, and where in the world he Financial markets have already taken a hit. the world’s biggest economies. The arrest of expands. Gulf Times 2 Thursday, December 27, 2018 BUSINESS Qatar shares extend losses to remain below 10,300 levels

By Santhosh V Perumal market, where foreign funds turned Company, Qatari Investors Group, However, non-Qatari funds turned by 18% to QR87.42mn and deals by Business Reporter bullish. Trade turnover and volumes Mazaya Qatar, Ezdan, Barwa and net buyers to the tune of QR17.52mn 22% to 4,419. were on the increase in the bourse, Nakilat; even as Ooredoo, United compared with net sellers of However, the market witnessed a where the industrials sector alone Development Company, Qatar QR0.68mn the previous day. 50% plunge in the transport sector’s The Qatar Stock Exchange yesterday accounted for about three-fourth of National Cement, Qatar Industrial Gulf individuals’ net profit booking trade volume to 0.11mn equities and fell further to remain below 10,300 the total volume. Manufacturing, Qatari German weakened perceptibly to QR0.42mn 50% in value to QR2.17mn but on a levels, mainly on profit booking The Total Return Index fell 0.11% to Company for Medical Devices, Zad against QR0.66mn on December 25. 19% rise in transactions to 211. pressure from local and non-Qatari 18,011.76 points, the Al Rayan Islamic Holding and Islamic Holding Group Total trade volume rose 21% to The insurance sector’s trade volume retail investors. Index (Price) by 0.17% to 2,376.59 were among the gainers. 9.26mn shares, value by 24% to plummeted 44% to 0.05mn stocks Gulf institutions were seen points and the All Share Index by Local individuals turned net sellers QR140.26mn and transactions by and value by 68% to QR0.92mn, increasingly bearish as the 20-stock 0.09% to 3,043.92 points. to the tune of QR11.98mn compared 16% to 5,658. while deals were up 4% to 58. Qatar Index declined 0.11% to The insurance index declined with net buyers of QR1.94mn on The real estate sector’s trade volume The banks and financial services 10,222.98 points. 0.39%, followed by consumer goods Tuesday. more than doubled to 1.05mn sector saw a 13% decline in trade There was also decreased net buying (0.3%), transport (0.22%), real estate Gulf institutions’ net profit booking equities and value almost doubled volume to 0.81mn shares, 13% in support from domestic funds in the (0.19%) and banks and financial increased considerably to QR5.11mn to QR17.9mn on a 27% jump in deals value to QR13.93mn and 23% in market, which is up 19.94% year-to- services (0.1%); while telecom and against QR3.59mn the previous day. to 323. transactions to 405. date. industrials gained 0.27% and 0.08% Non-Qatari individuals turned net The consumer goods sector reported The telecom sector’s trade volume Market capitalisation was up respectively. sellers to the extent of QR0.9mn a 75% surge in trade volume to tanked 8% to 0.11mn equities, value QR10mn, or 0.02%, to QR583.71bn About 50% of the traded stocks compared with net buyers of 0.21mn stocks and 40% in value by 21% to QR1.05mn and deals by Gulf institutions were seen increasingly as mid and small cap segments saw were in the red with major losers QR0.55mn on December 25. to QR6.87mn but on a 2% fall in 15% to 63. bearish as the 20-stock Qatar Index gains. being Qatar Islamic Bank, Al Domestic institutions’ net buying transactions to 179. In the debt market, there was declined 0.11% to 10,222.98 points Islamic equities were seen declining Khaleej Takaful, Qatar Oman declined influentially to QR0.88mn The industrials sector’s trade volume no trading of treasury bills and yesterday faster than the other indices in the Investment, Industries Qatar, Aamal against QR2.43mn on Tuesday. soared 24% to 6.91mn shares, value sovereign bonds.

Saudi plans Dubai public ignores govt’s spate of water project privatisations ambitious electric car goals in 2019 after Despite an off icial eff ort to move beyond oil, the nation of cheap gasoline is pushing back slow start

Bloomberg Dubai Bloomberg Riyadh ubai has ambitious goals for electric cars. Early adopters audi Arabia plans to tender Dget free parking, no tolls and or award six water-related discounts on registration fees. Even Sprojects in 2019 as it pushes the power is gratis at the 200 charg- ahead with a privatisation pro- ing stations the government installed gramme that got off to a slow start. throughout the city. The cabinet recently approved The trouble is the public is just fi ne the tendering of seven desalina- without them. tion and wastewater projects. One The biggest buyer of electric vehicles was awarded this week, three are is the government itself, dealers say, with in various stages of tender proc- hundreds sold in bulk to local authorities ess and three more will be off ered over the past few years. The few others to investors next year, the govern- spotted speeding up Dubai’s highways ment’s National Center for Priva- tend to be Teslas, which start at 335,730 tisation and PPP said in a state- dirhams ($91,400). Expats will splash ment. out in this relatively low-tax city, but So far, more than 40% of the they often go for fl ashy sports cars. bids have come from international The economic benefi ts of owner- companies relying heavily on fi - ship aren’t strong in the UAE, which nancing from international banks, has some of the most aff ordable gas the centre said. It didn’t provide prices in the world and some of the details on the monetary value of hottest weather. It costs about $41 to the water projects, but said the to- fi ll a 16-gallon tank of gasoline in Du- tal value of all public-private part- bai, compared with about $50 in the US nerships to be tendered by 2020 is or $125 in Norway, where plug-in hy- expected to be 24bn to 28bn riyals brid and electric vehicles have boomed ($6.4bn to $7.5bn). faster than anywhere else. Air condi- The fi rst project, a desalination tioning — essential when the tempera- Electric cars sit on display at the Tesla showroom in Dubai. The economic benefits of electric cars ownership aren’t strong in the UAE, which has some of the cheapest plant in Rabigh that will supply tures are regularly above 110 degrees in gas prices in the world and some of the hottest weather. water to the Makkah region, was the summer — will drain an EV battery, awarded to a consortium led by decreasing the range. director of the Dubai-based SEE Nexus vehicles on the road by 2020, if only car customer was the Dubai Electricity and Tesla drivers don’t have to fi ght for ACWA Power on Monday. “Unless you get someone who’s re- Institute, which advises cities on sus- companies would off er suitable models Water Authority, followed by the Dubai spots at the charging station inside the Saudi Arabia unveiled a major ally into looking after the environment, tainable development. “If we want to for sale in the emirate of 3mn people. Police and other utility and govern- Sustainable City in Dubai. privatisation programme in 2016 to get the consumers into those vehi- accelerate the uptake, we need a wider “Even today, if we give every incen- ment agencies. “On the retail side, we Some of the fi rst electric-car charg- as part of Crown Prince Moham- cles, there’s not a lot of incentive,” said range of electric vehicles to satisfy tive you can think of, there aren’t cars haven’t seen the same success,” said ers were installed in 2015 at Dubai med bin Salman’s plan to raise Bill Carter of Autodata Middle East, tastes and wallets.” available,” said Faisal Rashid, a direc- Salah Yamout, director of sales and Sustainable City, a 5mn-square-foot government revenue and diversify which provides data and valuation in Alf Ellefsen, a consultant in Dubai tor at the Dubai Supreme Council of marketing at Arabian Automobiles Co, development designed to showcase from oil. Economy Minister Mo- the local industry. who drives a Jaguar, talks to his sister Energy. He says they regularly raise the which sells the Renault brand here. the best practices for a modern, eco- hammed al-Tuwaijri said last year Defensive driving is essential on in Norway about her electric car. “It supply issue with local car dealers. Tesla declined to provide sales fi g- friendly city. Among the town’s 2,700 that the government expected to Sheikh Zayed Road, the highway that costs them close to nothing to run,” he There are about 4,000 hybrid and ures for the region. But the company residents, El-Jisr said, there are about raise some $200bn in the next few runs parallel to the coast of the UAE. said. “Here, you can buy a huge car for electric vehicles on the road now in is taking reservations for the lower- 15 Teslas and no other electric vehicles. years through privatisation, how- Daily commutes in Dubai commonly half the price that you can in Norway, Dubai, including fewer than 1,000 priced Model 3 sedan and expects to Two of those Teslas belong to Fiona ever progress has been slow. involve a highway that stretches to 16 and running it is like a [quarter] of the fully electric vehicles, he said. There’s deliver next year. The Road Transport Brenninkmeijer, who ordered them In addition to the water projects, lanes in some areas. “The highways in price. So why would you pay extra for a “soft” target of 10% of all vehicles in Authority, which oversees the roads, right when Tesla opened its service the government plans in 2019 to Dubai and the UAE can be a little bit in- an electric car?” Dubai to be electric by 2030, he said. public transportation and taxis, has centre and showroom in the region in move ahead on renewable energy timidating, so people here opt for big- Still, the government estimates it When Renault started selling its said it will buy 200 Teslas to integrate July 2017. “I think they didn’t believe projects in solar and wind, parking ger cars,” said Karim El-Jisr, executive could accommodate 32,000 electric electric Zoe three years ago, its fi rst into its fl eet of 5,000 vehicles. their luck,” she said of the salesmen. in Riyadh. Libya ‘green gold’ olive industry hit by export ban

AFP because of the cost of the oil extraction tonnes of the crop annually. the white olives — sweet, with a low Tarhuna, Libya process,” said Zahri al-Bahri, owner of a But only 20% is turned into oil, well acidic content and a distinct scent — are press in Tarhuna. behind neighbours Morocco, Tunisia mixed with their bog-standard cousins On his farm, olives heavy with oil are and Algeria, according to the United to produce oil. Stretching as far as the eye can harvested by hand in order not to Nations’ Food and Agriculture Only 2% of Libya’s 1.7mn square see, groves of gnarled olive trees damage the trees. Organisation. kilometres (650,000 square miles) is in northwest Libya have proudly Laid out on huge sheets, the ripened Al-Nuri emphasises the industry arable land, in a country famed for vast withstood the country’s devastating crop is transported in flour sacks to the requires more attention and resources swathes of desert. conflicts. presses where their rich, redolent oil is to prosper, beginning with better It boasts more than 8mn olive trees, But the industry of extracting olive carefully extracted. irrigation in this desert region, as well as according to the agriculture ministry. oil, often dubbed “green gold”, is now “There is enough production in Libya,” state help to ensure quality control and To the east of Tarhuna lies the Msallata under threat after Libyan authorities said al-Bahri. “I don’t understand why set up bottling factories. region known for its centuries-old halted exports in a bid to “protect” local we can’t export anymore.” And while cheaper, imported olive trees that yield distinct sweet and produce. Exports of Libya’s most emblematic alternatives to olive oil — such as strong-tasting oil. Libya has depended heavily on exports products — namely dates, honey and corn oil — have become part of But it has been hit by urbanisation in of its ample crude oil reserves since the olive oil — have been halted since 2017. Libyan cuisine, “olive oil remains recent decades. 2011 fall of longtime ruler Muammer A decree at the time said the (the) paramount” choice among Cutting down olive trees had been Gaddafi. suspension would be “temporary” to householders, al-Nuri said. strictly forbidden before Gaddafi came The North African nation, mired in bitter meet domestic market needs. Olive trees, he recalled, had “saved” to power in 1969, said Mokhtar Ali, internal conflicts since Gaddafi’s ouster, But no date has yet been set to resume Libyans during lean periods before the whose farm includes 600-year-old has failed to diversify its economy exports. discovery of crude oil in the late 1950s. specimens. despite the enormous potential of its Justifying the ban, an off icial in the A Libyan man checks a rare white Olive tree, originating from Tuscany in The olive tree was a “nourishing And the chaos that has engulfed the tourism and fisheries industries. agriculture ministry said produce had northern Italy and known as olea leucocarpa, which grows fruits that keep mother,” he maintained. country since Gaddafi’s fall has further Authorities repeatedly express their been “exported in bulk at low prices their light colour even when ripe, in the Libyan town of Tarhuna, 80kms south Among the hundreds of olive trees on diminished the stock of trees. desire to develop the promising olive oil and without adding value for the of Tripoli. Authorities repeatedly express their desire to develop the promising al-Nuri’s vast farm, there is a particularly Nowadays “olive trees are torn up with industry. Libyan economy”, leaving domestic olive oil industry. But in Tarhuna, farmers and workers at olive presses view such rare variety — white olives. impunity to make charcoal or to replace But in Tarhuna, farmers and workers at demand for oil to be met by expensive pledges with scepticism. Originating in Tuscany in northern Italy, with concrete,” Ali said. olive presses view such pledges with imports. the tree — known as olea leucocarpa — But he remains optimistic, seeing a scepticism. Frustrated farmers continue to grapple Libyan coast for centuries, most of the brought the land back to life,” Ali al- grows olives that keep their light colour silver lining in attempts by several “We constantly have problems with a dearth of specialised bottling and current groves were planted by Italian Nuri, a farm owner in Tarhuna, told AFP, even when ripe. farmers to preserve the country’s getting spare parts, which are getting packaging plants, leaving them unable settlers in the 1930s. posing proudly in a grove. But Tarhuna only has five or six heritage, by either planting native expensive because of the collapse of to climb the value chain. “My farm has existed for almost 90 Libya, the 11th largest olive producer specimens, planted by the Italians. species or importing new trees from the dinar against the dollar, but also Although olive trees have grown on the years when Italians occupied Libya and in the world, grows around 150,000 In the absence of scalable production, Spain. Gulf Times Thursday, December 27, 2018 3 BUSINESS

China issues new regulations for domestic online financial information providers

Reuters monetary policies, disturb economic brought forward if violations constitute a polices, the CAC in a Q&A issued after information, pornography, fake news, and no reward would come without hard work. Beijing order or to harm the nation’s interests, the crime, it added. publication of the regulations. eff orts to “defame the nation’s image”. Tianfeng Securities, a mainland securi- Cyberspace Administration of China (CAC) The move came as slowing growth for “(They) have brought an impact on Online criticism of the government’s ties firm, said in a research note published said in a statement on its website. the world’s second-biggest economy has the economic and financial stability, and economic and trade policies is also in November that more than 2mn job ads China’s cyber watchdog yesterday issued Service providers being targeted include spurred calls from academics and entre- should be addressed immediately,” said frowned upon, as China’s economy on a prominent Chinese job website had new regulations for domestic financial those involved in financial analysis, financial preneurs for more stimulus policies. CAC. Financial information providers further loses momentum despite a raft of disappeared from its website this year information providers, in an apparent trading and financial decision-making, but Domestic providers of financial infor- are also not allowed to fabricate news supportive measures rolled out this year. due to the economic slump. crackdown on online content deemed do not include foreign wire services, accord- mation are expanding rapidly, and some or events that could move stock, fund, While Chinese policymakers admit According to the job website 51job, detrimental to the country’s financial ing to CAC. The CAC said violators of the institutions that aren’t strict in supervising futures and foreign exchange markets. pressure on the economy is increasing, Tianfeng’s findings had misled the market stability as the economy slows. regulations, due to take eff ect on February 1, content are speculating on market risks In recent years, China has tightened state media has focused on the vastness of and raised widespread concerns about Financial information providers are will be “condemned publicly” and “ordered and publishing sensitive market informa- oversight of online content, concerned China’s consumer market, progress in re- employment stability and the health of not allowed to distort Chinese fiscal and to rectify” their errors. Criminal cases will be tion and distorting financial regulatory about the spread of politically “harmful” forms and market access, and the idea that the broader economy.

Billionaire Kuok’s Steady, not strong, as SE Asia Kerry Logistics faces growth risks in 2019 eyes Thai unit IPO Bloomberg Singapore Bloomberg Singapore ast year, economists predicted Southeast Asia would be blessed Lwith a strong and vibrant 2018. erry Logistics Network For next year, they’re not quite so op- Ltd, backed by Malaysian timistic. Kbillionaire Robert Kuok, Moderating economic growth and is considering an initial public higher interest rates lie ahead. off ering of its Thai business, ac- The Federal Reserve is set to keep cording to people with knowl- everyone on edge as it navigates an even edge of the matter. trickier interest-rate path in 2019, while The Bangkok IPO could raise the trade war between the US and China $200mn to $300mn, said the is already hurting exports in the region. people, who asked not to be iden- The Philippines might eke out a small tifi ed because the process is pri- gain in growth in 2019, if their bets that vate. infl ation will diminish come to fruition. The off ering could take place as “Asean growth and infl ation look set soon as the fi rst half of 2019, one to soften in 2019,” said Tamara Hender- of the people said. son at Bloomberg Economics. “Even so, Kerry Logistics’ planned of- a desire to attract investment infl ows fer would accompany a number may require that the region’s central of big-ticket IPOs that may take banks maintain a bias towards tighten- place in Thailand next year, in- ing – at least until a pause by the Fed- cluding that of state-owned eral Reserve comes into view or China’s energy giant PTT Pcl’s retail oil stimulus starts to bear fruit.” business, TCC Group’s Asset To top it off , elections in Thailand, World Corp property unit and Indonesia and the Philippines could Central Group’s retail assets. rock the boat even more. Investors have snapped up We’d like to see the good times roll, fi rst- time share sales in the but most economists are seeing a fur- country this year despite a rout in ther slowing of global growth in 2019, global equity markets. just as this year couldn’t beat the previ- An external spokesperson for ous one. Kerry Logistics declined to com- While economies like the Philippines ment in an emailed response to and Vietnam remain outperformers, the Bloomberg queries. “We shall slowdown probably will take its toll in provide updates about our busi- Southeast Asia. ness developments and plans in Especially due to China’s tight re- the form of public announcement lationship with the region, demand or press release,” according to the that’s taken quite a hit in the world’s e-mail. No 2 economy amid tariff s and struc- Labourers work at a garment factory in Bac Giang province, near Hanoi. While economies like the Philippines and Vietnam remain outperformers, the slowdown probably Hong Kong-based Kerry Lo- tural changes will negatively aff ect the will take its toll in Southeast Asia, said Tamara Henderson at Bloomberg Economics. gistics, part of Kuok’s Kerry neighbourhood. Properties Ltd, provides logis- The domino eff ect of trade pain re- get worse before they get better, with sentiment. Indonesia’s turn is in April sees the challenges mounting as the just slashed their infl ation forecasts, tics, freight forwarding and sup- mains a high risk amid both the delayed the technology cycle fi nding a bottom – a rematch between President Joko year goes on. seeing a continued calm for oil prices ply chain services, according to impact of third-quarter tit-for-tat in the fi rst half of the year, Nomura ana- Widodo and his rival Prabowo Subianto. A big part of her regressive-outlook and relief from legislation that eases its website. duties and the uncertain outlook of a lysts project. The Philippines is set to hold mid- view is a rocky Fed transition amid fur- rice import restrictions. fragile truce forged between the US and Merchandise trade accounts for more term elections in May. ther balance-sheet trimming and the Could the diminished expectations Kerry Logistics’ planned China this month. than 200% of Singapore’s economy, Central banks will struggle with the potential for the central bank to move expose some analysts to a shock in price off er would accompany “Asia is going to face quite a few chal- and more than 100% of those of Viet- Fed’s evolving interest-rate path and beyond neutral rates. growth that leaves some central bankers a number of big-ticket lenges” in early 2019, Rob Subbaraman, nam, Malaysia, and Thailand. act accordingly to protect their curren- Economists are seeing a quiet rise in behind? IPOs that may take place head of emerging markets economics Thailand is set fi nally to hold a vote on cies and keep current accounts in check. infl ation for much of Southeast Asia It’s a risk worth watching, especially in Thailand next year, and Asia ex-Japan fi xed income re- February 24 after more than four years While Nomura analysts see a bright- next year. as the relatively low interest rates in including that of state- search at Nomura Holdings Inc, told re- of military rule, and analysts are fret- er second-half than the fi rst, Selena Just the Philippines will be spared, much of the region have left the Phil- owned energy giant PTT porters on December 13. ting over the potential of social unrest Ling, an economist at Oversea-Chinese according to Bloomberg surveys. ippines with a negative real rate, and Pcl’s retail oil business, TCC Especially for global trade, things will that could hurt tourism and investor Banking Corp in Singapore, conversely Central bankers in the Philippines Thailand’s close to zero. Group’s Asset World Corp property unit and Central Group’s retail assets

In Thailand, the group also Daiwa eyes Italian return owns Kerry Siam Seaport, a deep sea port serving the industrial es- MUFG picks core bank unit tates on Thailand’s eastern sea- with M&A advisory office board and in the Greater Mekong Region, and Kerry Express, which Reuters With it, Daiwa’s European investment it says is the second-largest ex- head as CEO in reshuffl e Tokyo banking unit, DC Advisory, will press delivery operator in Thai- have six offices including in France, land. Germany and Britain. VGI Global, the media unit Reuters Daiwa Securities Group Inc is Daiwa’s M&A-related fees grew of Bangkok’s elevated metro Tokyo considering opening an M&A to ¥21.7bn ($195.13mn) in the year operator BTS Group Holdings, advisory office in Milan, as the through March 2018, from ¥10.3bn said earlier this year it would Japanese investment bank makes three years earlier, company take a 23% stake in Kerry Ex- itsubishi UFJ Financial Group a cautious return to expanding its presentation materials showed. press (Thailand) for 5.9bn baht (MUFG) said yesterday it overseas business after a major The firm is not seeking to advise ($181mn). The deal would allow Mpicked Kanetsugu Mike, the restructuring drive seven years ago. mega-deals worth billions of dollars. Kerry Express to set up kiosks head of its core commercial banking “Italy’s economy is big. We pulled Instead, it is trying to build a and counters in Skytrain stations unit, as its next president and CEO as out from Milan twice in the past. business targeting cross-border to collect parcels. Japan’s largest lender accelerates ef- This time, we are considering mid-market deals, valued at up to Kerry Logistics Chairman forts to expand overseas. having a base for M&A advisory $500mn. George Yeo said last month Mike will also continue to serve business there,” Seiji Nakata, CEO of In the global mid-market M&A that trade diversions will ben- as chief of the commercial banking Japan’s second-biggest investment advisory segment for the first nine efi t countries in Southeast Asia, unit, MUFG Bank, while current CEO bank and brokerage, said in an months of 2018, Daiwa ranked 50th while China’s One Belt, One Road Nobuyuki Hirano will become chair- interview. in terms of the number of deals policy will open more opportu- man, the company said in a statement. To stem losses outside Japan, Daiwa advised, showed data from Refinitiv. nities for Kerry in terms of new The changes will take place in April. cut jobs in 2010-2012 and closed “There is a gap from global mid- markets and routes. Joining what is today’s MUFG in operations overseas including a cap advisory top runners like Discussions for the Thai IPO 1979, Mike, 62, has spent about half of branch in Milan, the business capital Rothschild, Lazard and Houlihan are at an early stage, and it isn’t his career outside Japan. of the eurozone’s third-largest Lokey,” Nakata said. “We would like immediately clear which parts of He became CEO of MUFG Bank last President and CEO of the Bank of Tokyo-Mitsubishi UFJ Kanetsugu Mike speaks economy. to keep increasing bankers and Kerry Logistics’ operations in the year after his predecessor resigned during an interview in Tokyo. Joining what is today’s MUFG in 1979, Mike, 62, The company has since switched offices.” country would be included in the suddenly on health grounds. has spent about half of his career outside Japan. back to pursuing growth, with Nakata also said he wants to expand off er, the people said. The company also said chief infor- merger-and-acquisitions (M&A) the number of bankers covering Details including the size and mation offi cer Hironori Kamezawa nese investment banking joint ven- ade ago. Unlike other Japanese banks, advisory one of its focus areas. initial public offerings (IPOs) in timing of the off er may change, will become deputy president. tures have made big progress in the MUFG has retail banking operations Last year, it bought two boutique Japan, where he sees a robust deal they said. Robert Kuok is Ma- Hirano, who has led the banking M&A advisory and equity fi nance sec- overseas. M&A advisory firms – Sagent pipeline for the next year. There laysia’s richest man with a net group since 2013, has been credited tors. “We also want to do new wealth In addition to Union Bank in the Holdings Inc and Signal Hill have been 91 IPOs in Japan this year, worth of $16bn, according to the with growing MUFG in a tightly con- management business in Japan by uti- United States, MUFG has been build- Holdings LLC – to strengthen such almost all from small companies. Bloomberg Billionaires Index. trolled manner. lising Morgan Stanley’s expertise,” he ing up a full banking business in operations in the United States. Besides SoftBank Corp’s record His unlisted family-owned He expanded the Japanese lender’s told a news conference. Southeast Asia through a string of It now aims to build up its advisory $23.5bn IPO, the only offering to holding company, Kerry Group successful tie-up with Morgan Stanley Mike is taking over the helm of deals involving local lenders. business in Europe. exceed ¥100bn was that of flea Ltd, controls Hong Kong-listed after MUFG invested $9bn in the Wall a fi nancial conglomerate with over In 2013, MUFG bought a 72% stake Last week, Daiwa announced the market app operator Mercari Inc. Kerry Properties Ltd. Street bank in 2008. ¥300tn ($2.7tn) in assets, after Hirano in Thailand’s Bank of Ayudhya for acquisition of boutique Spanish There will be more than one IPO Kerry Properties and Kerry MUFG has a 24% stake in Morgan carried out a major overseas push as $5.3bn. MUFG also said last year it was investment bank Montalban Atlas in the league of Mercari next year, Group own almost 66% of Kerry Stanley. many of its western peers pulled back seeking a 73.8% stake in Indonesia’s Capital for an undisclosed sum. Nakata said, “if things go smoothly.” Logistics, according to data com- Mike said the two companies’ Japa- during the global fi nancial crisis a dec- Bank Danamon. piled by Bloomberg. Gulf Times 4 Thursday, December 27, 2018 BUSINESS

IMF puts Pakistan in S Korea exports seen rising a tight spot for new slowly amid China-US row programme Internews Islamabad Reuters Seoul The International Monetary Fund (IMF) has asked Pakistan outh Korean exports in Decem- to ensure primary surplus on ber are likely to increase less budget deficit to move ahead Sthan in the previous month due with the programme, leaving it to cooling demand from major econo- with the hard choice of either mies led by China, a Reuters survey slashing down its defence or found yesterday. development expenditure. The median forecast from 10 econ- The budget deficit has to omists polled was a 3.3% rise in ex- be curtailed within a range of ports from a year earlier, down from 4% to 5% of GDP during the 4.1% growth in November and below programme period. a 6.2% gain for the first 11 months of Moving towards free float this year. of exchange rate and hiking Imports are seen rising 4.2% in De- power tariff by 22% are among cember from a year earlier, sharply other major stumbling blocks down from November’s 11.5% in- to the way of evolving a staff crease. If December exports match level agreement between the the poll forecast, there will be growth two sides. of 5.9% for the year, way below 2017’s For achieving primary sur- gain of 15.8%. plus on the budget deficit front, The finance ministry sees export off icial sources said the govern- growth slowing to 3.1% next year. An- ment will have to restrict deficit alysts said recent declines in prices of in such a way that ensures key South Korean export items, such out of total revenues minus as memory chips and oil products, total non-interest expenditures could lead to annual declines export within the vicinity of 4% to 5% value early in the new year. of GDP during the programme “Falling semiconductor prices and period. global oil prices could lead to contrac- This indicates that interest tion in South Korean exports in the payments could only be hiked, first quarter,” said Lee Seung-hoon, while the government will have an economist at Meritz Securities. to make choice between cutting South Korea is the world’s leading down defence and develop- exporter of chips, and a major source ment spending for achieving of ships, cars and petroleum products. reduction in budget. It is the first major exporter to re- “So the government will have port monthly trade data, which pro- to make hard choice either to vides an early reading of global trade cut down defence or develop- conditions. ment spending if Islamabad For the first 20 days of December, wants to move ahead with the South Korea’s overseas sales of mem- An employee works at an assembly line of Hyundai Motor’s plant in Asan, South Korea. The country’s exports in December are likely to increase less than in the previous IMF programme,” said the of- ory chips fell by 9.8% in value from month due to cooling demand from major economies led by China, a Reuters survey found yesterday. ficial sources. a year earlier, according to customs Pakistan will have to imple- agency data released earlier. jae, an economist at Eugene Invest- 2016 and chip exports increased the vember’s 2%, which matched the cen- the poll showed. November industrial ment all ‘prior actions’ for “Easing in the Sino-US trade con- ment & Securities. least since November 2016. tral bank’s target. output data will be released on Fri- evolving a consensus on staff flict and a rebound in global oil prices In November, South Korea’s exports Also in the latest poll, respondents Industrial output in November was day, December inflation on Decem- level agreement with the IMF are essential for sustained growth in to China, its biggest trade partner, de- see December’s annual headline in- seen shrinking 0.2% from a month ber 31 and December trade figures on otherwise the talks would stall South Korean exports,” said Lee Sang- clined for the first time since October flation rate slowing to 1.7% from No- earlier versus a 1% gain in October, January 1. at the present stage. Pakistan and the IMF do not agree on revenue projections of the FBR because the Fund mis- sion calculated the FBR target on the basis of devaluation of Nissan updates governance code to address cross-shareholding rupee ranging beyond Rs150 against US dollar but Islamabad refuses to accept this kind of Bloomberg the company’s holdings in certain other role he played at the French carmaker. adjustments in one go on im- Tokyo listed companies,” Nissan said in an e- Renault couldn’t be reached on Christ- mediate basis. mail. “Nissan is one of hundreds of list- mas Day holiday. A spokesman for the The IMF wants to jack up the ed companies in Japan issuing an update Renault-Nissan-Mitsubishi Motors FBR collection to more than issan Motor Co updated its at this time in this manner.” Corp alliance didn’t have a comment. Rs4,550bn for the current fiscal corporate governance code, a Nissan shares rose as much as 3.3% The Japanese automaker holds a 15% but the FBR authorities want to Nmonth after the shock arrest in Tokyo yesterday and were poised to stake in Renault – with a market value keep it close to Rs4,455bn. and indictment of former chairman close higher for the fi rst time in eight of about $2.8bn – and no voting rights, “We will take more additional Carlos Ghosn brought diff erences with trading sessions. a position that has been the source of revenue measures with or with- partner Renault SA out in the open after Renault is the largest shareholder in tensions with the French company. out the IMF by jacking up the a two-decade partnership. Nissan and the Asian company in re- Renault owns 43% of Nissan, a stake tax rates on POL products,” said As part of the new code, Nissan clari- turn is the second-largest shareholder worth almost $14bn. Acrimony be- the off icial and added the rising fi ed its policy on cross-shareholdings, in the French carmaker. The two com- tween the two has exploded since the inflationary pressures would in which two companies hold stakes in panies also have minority shareholdings November 19 arrest of the bigger-than- also help increase tax revenues each other. in Germany’s Daimler AG. life leader overseeing their alliance. for the purpose of curtailing The board will examine whether the Nissan said it also has minority cross- With regards to voting rights of cross- the budget deficit in the current purpose of each such shareholding is shareholding with other companies. shareholdings, the new Nissan code says fiscal year. appropriate and whether the benefi ts Nissan’s exchange fi ling comes at a the company will consider “whether or Some non-economic factors and risks cover the cost of capital. time when Renault asked the Japanese not it leads to the improvement of mid for curtailing the China Pakistan A Nissan spokesman said yesterday company to call a shareholder meeting to long term corporate value and share- Economic Corridor (CPEC) are the exchange fi ling on Christmas Day to discuss corporate governance issues. holder interest and exercise our voting- also hindering consensus on was routine and mandatory to comply Bloomberg News reported earlier that rights properly.” The previous version of the staff level agreement. with Japanese corporate governance Nissan was shoring up cash to build its the code in July didn’t refer to the possi- The obtaining situation might code requirements. fi repower amid tensions with Renault. bility of selling cross holdings. force Islamabad to ask some The deadline for such submissions The move comes as the two long- “We will investigate including the important players of the IMF was the end of the calendar year and time partners have diff ered over how option of sale of the shares when con- executive board to play a role therefore the timing of the release they approach the issue of Ghosn’s ar- tinued possession of the shares is to soften the IMF team’s stance Carlos Ghosn, former chairman of Nissan Motor. The company updated its wasn’t unusual. rest. While Nissan immediately sacked judged to be inappropriate as a result on the pace of adjustments of corporate governance code, a month after the shock arrest and indictment of “The policy itself has not changed in the offi cial as its chairman, Renault of verifi cation of the propriety of such diff erent contentious proposed Ghosn brought diff erences with partner Renault out in the open after a two any way, and the clarifi cation does not chose a diff erent option by naming a cross-shareholdings,” Nissan’s code measures. decade partnership. refer to alliance partners, but rather to deputy for the chief executive offi cer also said.

Pakistan govt mulls freezing E-commerce grows massively in Pakistan this year

corporate tax rate at 29% Internews B2C e-commerce. COD is hinder- the total population of 207mn, out five people in June 2012, now Karachi ing the growth of e-commerce in of which 61mn are 3G/4G subscrib- employs a staff of around 1,000 Pakistan, though it is a general phe- ers with total Internet subscribers people. Internews budget deficit. The revenue collection target nomenon in most of the developing at 63mn. On the bright side, Alibaba, in- Karachi for the current fiscal year has been set at This year Pakistan’s e-commerce countries. Moreover, the scope of 4G is stead of bringing Chinese products Rs4,398bn. sector has performed better than Buyers do not trust sellers as expected to expand in remote areas in the country, decided to keep The FBR managed to collect around ever before as digitalisation and products, which they receive, are of Pakistan next year, as the mobile promoting Pakistani products. The government of Pakistan is considering Rs1,300bn during the first five months of the larger Internet accessibility paved usually not what they see on web network operator, Jazz, is expected In another development, in freezing corporate tax rate at the present current fiscal year, posting a growth of 6.7%, the way for almost 100% increase portals. to invest over $200mn to expand March, Alipay, a part of the Alibaba level of 29%, owing to economic challenges compared with the collection of Rs1.223bn in in sales of local and international The trust deficit, which is not its tower network. Group, founded in 2004 by Jack and substantial decline in revenue collection, the corresponding period of the last fiscal year. merchants. allowing people to pay through on- Other than that bringing 5G in Ma announced to buy 45% share in sources in the Federal Board of Revenue (FBR) Reduction in the corporate tax rate is one of Sales reached Rs40.1bn in FY18 line payment solutions, still exists. the country is also on the cards, Telenor Microfinance Bank. has said. the reasons for shortfall in the revenue collec- compared with Rs20.7bn in FY17, Nevertheless, e-commerce in the which will further lift the Internet And in November this year, The corporate tax rate for the tax year tion, the sources said, adding that the previous an encouraging growth of 93.7%, country is growing as digitalisation accessibility for people. antitrust watchdog, the Competi- 2019 (July 1, 2018-June 30, 2019 or companies government of PML-N had taken this decision according to a State Bank of Paki- has made it possible to bypass mid- The growth of e-commerce in the tion Commission of Pakistan (CCP), having special tax year) has been fixed at 29%, in the budget presented in the election year. stan (SBP) report released in late dlemen, who used to eat up most of country has also attracted interna- approved the deal. other than the banking companies. The previous government through the October. the business margins. tional buying interest as in early According to market experts, Through the Finance Act, 2018, it has been Finance Act, 2013 introduced reduction in the The online market witnessed a Leading producers of apparel, May this year, Alibaba, the biggest Alibaba is creating its complete e- made part of the statute that the corporate corporate tax rate from 35% to 30% for the boom in the outgoing year owing smartphone, food and electronics e-commerce platform, rose from commerce infrastructure including tax rate will be reduced up to 25% by the tax next five years (tax year 2014 to 2018). to the services sector, which now have set up websites to connect the east and bought Daraz.pk from online marketplace, online payment year 2023. Then through the Finance Act, 2018, the rate has a 60% contribution to the gross with their customers. European internet company, Rocket system and its own logistic system, The corporate tax rate other than the bank- was further reduced in a phased manner to domestic product (GDP), increasing Large-scale investments in Internet, in Pakistan. which shows that the country is ing companies is 30% for the tax year 2018. 25% up till the tax year 2023. from the previous 52%. the business-to-business (B2B) The giant took over the whole attractive for investors. The sources said the country was facing However, the tax rate for banking compa- This is the data which the central category are underway; however, Daraz Group in all five countries, According to a McKinsey Global serious economic challenges due to twin nies remained intact at 35%. bank has compiled through digital business to consumer (B2C) sector including Bangladesh, Myanmar, Sri Institute (MGI) report, “Pakistan can deficits in the wake of tight foreign repayment The sources said the government is consid- transactions like credit/debit cards, is growing at a faster pace on the Lanka and Nepal by acquiring 100% experience an increase in its GDP schedule. ering freezing the corporate tax rate at 30% interbank fund transfers (IBFT), back of relatively larger Internet shareholding. by a cumulative seven percentage The economic managers are making eff orts or 29%. prepaid cards and mobile wallets. penetration in areas where the on- Out of these five countries, with points (roughly $36bn) and create to bring the country out of this diff icult situ- In 2016, the government had reduced the However, market estimates that line connectivity has never reached around five mn customers, Pakistan around four mn new jobs during ation, but to do this, the government needs corporate tax rate to 30% in a phased manner cash on delivery (COD) settlements before. was the biggest market for the 2016-2025 via an increase in the significant increase in revenue collection to to 30% on the recommendation of the Tax are about 90% of the total volume The country has got 153mn cel- group. use of digital financial services create avenues for development and curtail Reform Commission (TRC). and about 60% of the total value of lular subscribers, more than 73% of Daraz, which started with only (DFS) alone.” Gulf Times Thursday, December 27, 2018 5 BUSINESS

China top bond fund sees attraction in Asian markets retreat LGFVs on stimulus bet Bloomberg easing measures aimed at shoring Beijing up corporate bond financing, the annual return on China’s credit notes have reached 6.67% so far in Chinese bond fund manager Li 2018, the highest level since 2015, as US political tumult Yishuo is seeing opportunities in according to Bloomberg-compiled notes of local government financ- data. ing vehicles as systemic risks for The People’s Bank of China said the sector abates. last week it would supply lower- Li, whose bond funds have cost liquidity for as long as three beaten more than 90% of their years to banks willing to lend more peers this year, says LGFVs will to smaller companies. adds to growth worry gain from China’s continued pur- In November, President Xi suit of policy easing amid slowing Jinping repeated “unwavering” economic growth, as well as local support for the private economy Reuters government support. amid a record year of local bond Tokyo The yield spread between three- failures. year top rated LGFVs and similar Here are other views from Li: corporate bonds is near a three- More defaults will occur next year sian stock markets retreated again month high, Bloomberg-compiled because of worsening profit- yesterday, extending a rout that data show. ability, and financing diff iculties Abegan last week as US political un- “The LGFV sector will provide have yet to be fully addressed. certainty exacerbated worries over slow- investment opportunities next Investments in the manufactur- ing global economic growth. year as policymakers have asked ing sector have been suppressed Investors were unnerved by the US financial institutions to meet last year due to the long-standing federal government partial shutdown and reasonable financing demand deleveraging campaign, and a President Donald Trump’s hostile stance from these platforms,” said Li, a recovery may occur as there have towards the Federal Reserve chairman. Beijing-based manager at E Fund been signs of policy relaxation. US Treasury Secretary Steven Mnuch- Management Co. “We believe Property developers that have in had also raised market concerns by there will be less systemic risks better capabilities in repay- convening a crisis group amid the pull- within the LGFV sector.” ing short-term debts will likely back in stocks. China’s top policymakers last withstand the sector’s cyclical S&P 500 emini futures were last down week confirmed of more mon- slowdown, and they will have less 0.6%, pointing towards a lower start for etary and fiscal support for 2019 credit risks if they have more land Wall Street when the US market reopens as the economy struggles with a banking in first or second-tier after Christmas Day, when many of the slowdown that’s yet to show signs cities. Bonds sold by steel makers world’s fi nancial markets were shut. of ending. and coal producers that used to Markets in Britain, Germany and Slowing growth and sluggish have excess capacity are gener- France remained closed yesterday. exports will generally support ally less risky now as profitability MSCI’s broadest index of Asia-Pa- bond performance next year, said has improved. Bonds issued by cifi c shares outside Japan slipped 0.5%, Li, who profited from buying over- such companies can usually brushing a two-month low. sold bonds of private sector firms. achieve higher yields as previ- The Shanghai Composite Index lost He added that risk-free interest ously some risk-averse investors 0.4% while South Korea’s KOSPI shed rates may fall by as much as 30 kept clear of sectors that are 1.6%. Japan’s Nikkei, which slumped 5% basis points next year. Thanks to deemed to have overcapacity. the previous day, had a volatile session. It swerved in and out of the red, falling more than 1% to a 20-month-low at one stage, before ending the day with a gain of 0.9%. Pedestrians walk past a stock indicator board showing the share prices of the Tokyo Stock Exchange. Tokyo index opened higher “In addition to concerns towards the yesterday, rebounding from the previous day’s 5% drop as the yen’s rise took a breather. Brazil shares at 6-week low US economy, the markets are now having to grapple with growing turmoil in the In an eff ort to reassure investors, likely to remain shut into the new year. tended its fall to touch 2.722%, its lowest Latin American currencies Brazilian real was at a two-week White House which has raised political Treasury Secretary Mnuchin spoke on The US-China trade war also shows no since early April. weakened against a firm dollar low, while the Bovespa index risk ahead of the year-end,” said Masa- Sunday with the heads of the six larg- signs of a resolution.” In commodities, US crude futures were yesterday, while stocks on Brazil’s fell more than 1% with pressure hiro Ichikawa, senior strategist at Sumi- est US banks, who confi rmed they have US bond yields have declined amid up 0.4% at $42.70 per barrel after tum- benchmark index hit a six-week from stocks of banks and energy tomo Mitsui Asset Management. enough liquidity to continue lending and the rout, including a steep sell-off in oil, bling 6.7% on Monday. low as global equities retreated companies. US stocks have dropped sharply in re- that “the markets continue to function prompted investors to move into safe- US crude futures plunged to the lowest on worries of political uncer- Brazilian retailer Via Varejo cent weeks on concerns over weaker eco- properly.” haven government debt, adding to the level since June 2017 on Monday, as bear- tainty in US and slowing global SA was the biggest decliner on nomic growth. “In the end, we believe that the Fed is growing pressure on the dollar. ish stocks added to fears of an economic growth worldwide. the index amid the replacement Trump has largely laid the blame for the only presence capable of ending the The dollar traded at 110.35 yen after slowdown. The partial shutdown of the of CEO Flavio Dias in an eff ort economic headwinds on the Fed, openly current confusion in the markets,” Kenta retreating to a four-month low of 110.00 Brent crude futures were down 0.18% US federal government, one to turnaround its fortunes after criticising its chairman, Jerome Powell, Inoue, senior market economist at Mit- overnight against its Japanese peer, at $50.38 a barrel, having skidded 6.2% of the recent factors that has a year of lukewarm results and whom he appointed. subishi UFJ Morgan Stanley Securities, which tends to attract demand as a per- in the previous session to their weakest unnerved investors, entered the rocky stock performance. That has further rattled investors as said in a note. ceived safe-haven during times of market since August 2017. fifth day adding to heightened Mexico’s peso was treading they grappled with fears of slowing glo- “The White House will probably keep volatility and economic stress. Safe-haven gold was well bid, with concerns over slowing global water, while the Chilean peso bal growth, corporate earnings and US- making gestures intended to halt the rout The euro was 0.15% higher at $1.1412. spot prices brushing a six-month peak of economic momentum. The fell 0.4%. China trade tensions. in stocks, but the federal government is The 10-year US Treasury note yield ex- $1,272.83 per ounce. $5.6tn Asia stock Reversal in US futures helps India loss has traders on edge of their seats equities halt three-day slump Bloomberg Mumbai Bloomberg cea in the form of any positive Singapore impetus,” said Jingyi Pan, mar- ket strategist for IG Asia Pte. ndian equities erased steep losses, “The weight that is given to boosted by a reversal in US stocks ith three days of Asia President Trump’s assurances Ifutures, as the nation’s key indexes equity trading left for is simply much lighter than the capped their fi rst gains in four days. Wthe year and low vol- threats he is throwing.” The benchmark S&P BSE Sensex umes across the board, traders And news from elsewhere climbed 0.5% to 35,649.94 at the 3:30pm don’t seem to be taking any did little to excite investors: close in Mumbai, reversing a decline of as chances. On Tuesday, China released much as 1.3%. About $5.6tn of equity value new rules promising to treat all The NSE Nifty 50 Index rose 0.6%. has been obliterated in the re- firms equally from a regulatory March contracts on the S&P 500 Index gion this year as the global car- standpoint, whether they are gained 0.5%, after plunging as much as nage shows no let-up. foreign, private Chinese com- 1.1% and rising as much as 0.8% in vola- And investors are bracing for panies or state-owned enter- tile trading. volatile days ahead. prises. Chinese authorities also Indian stocks are seen following global Today is a classic example said they are studying plans to cues due to an absence of local factors of that: The MSCI Asia Pacific help banks replenish capital, currently. Index, which climbed as much as President Xi Jinping vows Investors have their eyes set on nation- as 0.6% yesterday, swung be- to step up support for the na- al elections around May, as recent wins in tween gains and losses and was tion’s struggling private sector. three key states for the Indian National 0.2% higher as of 4:20pm in North and South Korean staged Congress opposition party have made its Hong Kong. Japan’s Nikkei 225 a symbolic ground-breaking national contest with the ruling Bharati- Stock Average also had a chop- ceremony to upgrade severed ya Janata Party tighter than expected. py day but ultimately closed up rail links, although UN Secu- “There are no local cues for Indian 0.9% after entering a bear mar- rity Council approval would be equities at least till the second or third ket on Christmas Day. needed to advance the project. week of January, and it seems that stocks US stock-index futures Long-stalled plans to restore will take direction from global events till fluctuated between gains and rail links severed by the Korean then,” said Deepak Jasani, head of retail losses, with the S&P 500 Index War were revived in historic research at HDFC Securities Ltd in on the brink of entering a bear summits by North Korea leader Mumbai. market when it reopens late Kim Jong-un and South Korean “I think markets are largely oversold yesterday. President Moon Jae-in earlier and there could be some covering of short Hong Kong, Australia and this year. Islamic State claimed positions by traders also ahead of the ex- New Zealand remain closed for a suicide attack on the Libyan piry of the December derivatives con- a holiday. There’s a chance that Foreign Ministry’s headquar- tracts tomorrow,” Avinash Gorakshakar, 10-year US bull market comes ters in Tripoli that officials said head of research at Mumbai-based Join- to an end when markets reopen killed three people, in the latest dre Capital Services Ltd said. “Emer- even after US President Donald blow to efforts to stabilise the gence of fl ows from overseas investors if Trump gave his first expression war-ravaged North African na- the US Fed signals less rates hikes can be of public support for Treasury tion. a positive for an emerging market like In- Secretary Steven Mnuchin and What’s next? “As far as the dia,” he said. Traders are seen at the Bombay Stock Exchange. The Sensex climbed 0.5% to 35,649.94 at the 3:30pm close in Mumbai yesterday, Fed Chairman Jerome Pow- futures are suggesting, the “Any bounce in markets will be hard reversing a decline of as much as 1.3%. ell since Bloomberg News last market is indecisive right now,” to sustain as there are a lot of negative week reported that the presi- Pan said. “One should not be expectations arising out of political un- ger sell-off expected around the cline of as much as 2.4%, after its parent a day before the expiry, according to data dent had discussed dismissing surprised if most are still wait- certainties ahead of general elections in election.” said it was considering legal options for compiled by Bloomberg. the Fed chief, who was recom- ing out the storm this week.” May,” Jasani said. Thirteen of the 19 sector indexes com- $55mn tax fi ne on the Indian unit. Total The roll cost, or price to replace De- mended by Mnuchin. With less than a week left in “Investors should aim at cleaning up piled by BSE Ltd retreated, paced by a trading volume of Sensex stocks was 29% cember futures and options with January, “The direly weak sentiment 2018, here’s a look at how ma- and restructuring their portfolios and gauge of telecom stocks. Wireless carrier lower than the 30-day average. Traders was 37 basis points versus a six-month continues to be the engine be- jor stock markets have done raise some cash at every bounce in the Bharti Airtel Ltd gained the most among have rolled over 53% of their derivatives mean of 41 basis points. hind the declines for markets this year across the region, as market till the national elections,” he Sensex members, rising 3.7%. Hindustan linked to Nifty as of 3:58pm compared In India, contracts end on the last that have yet to fi nd the pana- of December 25”. said. “They can deploy that cash in a big- Unilever Ltd rose 0.4%, reversing a de- with the past six months’ average of 50% Thursday of every month. Gulf Times 6 Thursday, December 27, 2018 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 15.62 2.09 56,700 Coast Investment Development 31.60 -0.63 371,300 Dhofar Intl Development 0.26 0.00 183,668 Amana Cooperative Insurance 21.90 36.02 3,150,160 Privatization Holding Compan 51.60 -4.09 9,374 Dhofar Insurance 0.17 0.00 - Alabdullatif Industrial Inv 11.10 -0.54 80,954 Injazzat Real State Company 86.00 0.00 100 Dhofar Generating Co Saoc 0.21 0.00 - Saudi Printing & Packaging C 16.24 0.12 349,693 Kuwait Cable Vision Sak 11.90 -40.50 8 Dhofar Fisheries & Food Indu 1.28 0.00 - Saudi Paper Manufacturing Co 13.40 0.00 535,628 Sanam Real Estate Co Kscc 34.70 0.00 20,000 Dhofar Cattlefeed 0.17 0.00 - Alinma Bank 22.64 0.89 5,659,949 Ithmaar Holding Bsc 25.00 -0.40 1,033,720 Dhofar Beverages Co 0.26 0.00 - Almarai Co 47.60 0.21 47,008 Aviation Lease And Finance C 351.00 0.29 245,190 Construction Materials Ind 0.02 0.00 - Falcom Saudi Equity Etf 30.00 0.00 355,354 Arzan Financial Group For Fi 29.00 -1.36 195,701 Computer Stationery Inds 0.26 0.00 - United International Transpo 26.90 0.75 162,182 Ajwan Gulf Real Estate Co 18.20 3.41 436,954 Bankmuscat Saog 0.41 0.49 109,979 Hsbc Amanah Saudi 20 Etf 30.60 0.00 - Kuwait Business Town Real Es 46.20 -0.43 41,003 Bank Sohar 0.11 0.93 1,068,607 QATAR Saudi International Petroche 19.50 0.31 114,456 Future Kid Entertainment And 95.00 0.00 8,945 Bank Nizwa 0.09 2.27 318,000 Falcom Petrochemical Etf 31.10 0.00 - Specialities Group Holding C 68.30 -5.01 5,000 Bank Dhofar Saog-Rts 0.02 0.00 - Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 21.22 -0.09 63,903 Abyaar Real Eastate Developm 15.70 -0.63 525,812 Bank Dhofar Saog 0.18 2.31 60,667 Bank Al-Jazira 13.96 -0.14 963,206 Kgl Logistics Company Kscc 40.10 0.00 1,004,158 Arabia Falcon Insurance Co 0.12 0.00 - Zad Holding Co 104.00 2.97 10,592 Al Rajhi Bank 85.00 0.47 618,111 Combined Group Contracting 318.00 0.00 100 Aloula Co 0.53 0.00 - Widam Food Co 66.62 0.11 3,684 Samba Financial Group 30.00 -0.17 703,535 Jiyad Holding Co Ksc 71.10 -3.27 514,482 Al-Omaniya Financial Service 0.19 0.00 - Vodafone Qatar 7.83 0.00 111,970 United Electronics Co 60.70 3.06 145,933 Boubyan Intl Industries Hold 32.90 -6.80 2,297,512 Al-Hassan Engineering Co 0.02 0.00 38,830 United Development Co 14.35 0.77 748,389 Allied Cooperative Insurance 17.92 -0.44 64,985 Gulf Investment House Ksc 16.70 -1.76 200,882 Al-Fajar Al-Alamia Co 0.75 0.00 - Salam International Investme 4.30 -0.23 20,737 Malath Insurance 12.14 -0.49 170,923 Boubyan Bank K.S.C 571.00 -0.87 578,483 Al-Anwar Ceramic Tiles Co 0.07 0.00 1,156,784 Qatar & Oman Investment Co 5.37 -2.89 120,922 Alinma Tokio Marine 16.38 -0.73 113,483 Ahli United Bank B.S.C 202.00 0.00 1,731,774 Al Suwadi Power 0.10 -2.83 51,229 Qatar Navigation 65.02 0.03 2,306 Arabian Shield Cooperative 18.18 -1.52 239,831 Osos Holding Group Co 98.00 0.00 2,000 Al Sharqiya Invest Holding 0.09 -1.16 85,765 Qatar National Cement Co 58.15 1.11 18,675 Savola 26.60 0.76 171,802 Al-Eid Food Ksc 66.00 0.00 11 Al Maha Petroleum Products M 0.93 0.00 57,000 Qatar National Bank 193.49 0.25 6,954 Wafrah For Industry And Deve 16.58 1.34 123,414 Qurain Petrochemical Industr 350.00 0.57 234,462 Al Maha Ceramics Co Saoc 0.21 0.00 100 Qatar Islamic Insurance 54.00 -0.83 1,200 Fitaihi Holding Group 10.78 0.00 16,781 Ekttitab Holding Co Sak 21.30 0.00 26,406 Al Madina Takaful Co Saoc 0.09 0.00 970,860 Qatar Industrial Manufactur 43.50 3.08 51,236 Tourism Enterprise Co/ Shams 31.85 -0.93 232,860 Real Estate Trade Centers Co 23.00 0.00 100 Al Madina Investment Co 0.04 0.00 - Qatar International Islamic 66.00 0.02 19,679 Sahara Petrochemical Co 15.00 -0.53 790,706 Acico Industries Co Kscc 170.00 -0.58 27,500 Al Kamil Power Co 0.38 0.00 - Qatari Investors Group 27.94 -0.57 125,818 Herfy Food Services Co 45.00 0.45 5,058 Kipco Asset Management Co 69.00 -6.76 842 Al Jazerah Services -Pfd 0.55 0.00 - Qatar Islamic Bank 150.06 -1.05 14,344 Saudi Ind Investment Group 22.28 -0.09 540,544 National Petroleum Services 920.00 1.10 2,000 Al Jazeera Steel Products Co 0.28 0.00 - Qatar Gas Transport(Nakilat) 18.02 -0.44 105,510 Salama Cooperative Insurance 15.82 -1.13 552,251 Alimtiaz Investment Group 133.00 0.76 1,760,033 Al Jazeera Services 0.11 -1.80 9,500 Qatar General Insurance & Re 47.00 -2.08 1,924 Emaar Economic City 7.95 -0.25 343,541 Ras Al Khaimah White Cement 74.50 0.00 20,000 Al Izz Islamic Bank 0.09 0.00 - Qatar German Co For Medical 5.30 4.13 147,145 Alahli Takaful Co 29.10 0.52 123,892 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatar Fuel Qsc 163.00 -0.61 24,088 Anaam International Holding 14.06 4.93 1,789,625 Kuwait & Gulf Link Transport 94.90 1.61 20,020 Al Batinah Power 0.10 -1.92 31,000 Qatar First Bank 4.08 0.00 301,185 Saudi Telecom Co 90.70 -0.44 67,626 Humansoft Holding Co Ksc 3,200.00 -1.54 117,767 Al Batinah Hotels 1.13 0.00 - Qatar Electricity & Water Co 185.19 0.92 1,163 Al Alamiya Cooperative Insur 30.90 3.00 303,988 Automated Systems Co Kscc 120.00 0.00 3,334 Al Batinah Dev & Inv 0.09 0.00 - Qatar Exchange Index Etf 101.40 -0.10 250 Saudi Industrial Services Co 10.82 -0.37 495,329 Metal & Recycling Co 63.00 53.66 25 Al Anwar Holdings Saog 0.10 2.08 583,000 Qatar Cinema & Film Distrib 20.03 0.00 - Al-Ahsa Development Co. 10.00 -0.40 94,344 Gulf Franchising Holding Co 70.00 0.00 79 Al Ahlia Insurance Co Saoc 0.35 0.00 - Al Rayan Qatar Etf 23.80 0.00 - National Co For Glass In/The 18.00 -0.22 32,984 Al-Enma’a Real Estate Co 33.30 0.60 5,000 Ahli Bank 0.15 0.00 200 Qatar Insurance Co 35.90 0.31 14,944 Dur Hospitality Co 18.32 0.11 75,842 National Mobile Telecommuni 695.00 1.16 1,371 Acwa Power Barka Saog 0.72 0.00 - Ooredoo Qpsc 75.86 0.42 2,414 Tabuk Cement Co 11.18 -0.18 171,066 Unicap Investment And Financ 71.00 6.61 239,600 Abrasives Manufacturing Co S 0.05 0.00 - National Leasing 8.67 -0.23 45,580 Sasco 16.46 0.37 99,244 Al Salam Group Holding Co 32.00 0.00 503 A’saff a Foods Saog 0.60 0.00 - Mazaya Qatar Real Estate Dev 7.72 -0.39 133,225 Saudi Cement 48.00 1.80 54,613 Al Aman Investment Company 51.00 0.00 17,150 0Man Oil Marketing Co-Pref 0.25 0.00 - Mesaieed Petrochemical Holdi 14.94 -0.20 126,858 Aseer Trading Tourism & Manu 9.20 0.22 38,503 Mashaer Holding Co Ksc 72.00 10.77 9,319,280 Al Meera Consumer Goods Co 144.26 -1.19 2,764 Nama Chemicals Co 27.00 1.12 292,074 Manazel Holding 27.70 -1.07 93,400 Medicare Group 61.86 -0.24 4,389 Saudi Arabian Mining Co 48.20 -0.21 166,652 Tijara And Real Estate Inves 47.90 0.00 20 Mannai Corporation Qsc 54.95 -0.07 1,326 Yanbu Cement Co 23.90 -1.24 81,722 Jazeera Airways Co Ksc 735.00 -0.68 60,359 UAE Masraf Al Rayan 40.73 -0.17 86,436 Saudi Fisheries 36.00 9.92 5,713,270 Commercial Real Estate Co 92.00 1.10 2,003,014 Al Khalij Commercial Bank 11.11 -0.18 123,520 Ash-Sharqiyah Development Co 50.70 1.40 201,144 National International Co 60.00 1.69 500 Company Name Lt Price % Chg Volume Industries Qatar 133.70 -0.22 10,666 Makkah Construction & Devepl 80.10 0.00 7,639 Taameer Real Estate Invest C 28.70 -1.03 560,150 Islamic Holding Group 21.98 1.01 26,506 Waha Capital Pjsc 1.70 0.00 201,761 Al Jouf Cement 7.75 0.00 114,029 Gulf Cement Co 65.00 -1.52 19,300 Investment Holding Group 4.89 0.82 80,468 United Insurance Company 2.00 0.00 - Abdullah A.M. Al-Khodari Son 6.94 2.36 422,128 Heavy Engineering And Ship B 422.00 0.00 1,775,984 Gulf Warehousing Company 39.61 0.00 2,702 United Arab Bank Pjsc 1.20 -4.00 7,529,210 Knowledge Economic City 9.07 -0.77 241,235 National Real Estate Co 91.00 1.11 50,000 Gulf International Services 17.30 0.58 75,089 Union National Bank/Abu Dhab 4.73 0.42 1,356,028 Al-Ahlia Cooperative Insuran 11.54 0.35 125,079 Al Safat Energy Holding Comp 31.00 0.00 140,250 Ezdan Holding Group 12.21 -0.33 23,097 Union Insurance Co 0.81 14.89 24,838 Al Rajhi Co For Co-Operative 65.40 1.40 182,453 Kuwait National Cinema Co 1,068.00 0.00 1,710 Doha Insurance Co 12.50 0.00 - Union Cement Co 0.00 0.00 - Advanced Petrochemicals Co 49.30 -0.90 362,395 Danah Alsafat Foodstuff Co 38.80 2.11 364,167 Doha Bank Qpsc 21.22 0.09 26,326 Umm Al Qaiwain General Inves 0.97 0.00 - Al Babtain Power & Telecommu 19.90 -0.50 25,437 Independent Petroleum Group 410.00 0.00 120 Dlala Holding 10.00 0.00 24,726 Sudan Telecommunications Gro 0.37 -1.33 304,379 Allianz Saudi Fransi Coopera 31.40 3.63 605,257 Kuwait Real Estate Co Ksc 52.90 0.76 243,720 Commercial Bank Pqsc 39.69 -0.28 11,244 Sharjah Islamic Bank 1.15 3.60 4,616 Najran Cement Co 8.42 0.00 384,431 Salhia Real Estate Co Ksc 327.00 0.31 56,000 Barwa Real Estate Co 39.30 -0.20 148,276 Sharjah Insurance Company 2.84 0.00 - Al Tayyar Travel Group 19.78 -0.60 229,366 Gulf Cable & Electrical Ind 350.00 -0.57 79,909 Al Khaleej Takaful Group 8.49 -5.56 27,778 Sharjah Group 1.08 0.00 - National Commercial Bank 47.05 -1.36 425,733 Kuwait Finance House 0.00 0.00 - Aamal Co 8.91 -0.78 63,063 Sharjah Cement & Indus Devel 0.93 0.00 - Saudi Airlines Catering Co 81.50 -0.49 111,946 Gulf North Africa Holding Co 48.50 -1.02 303,700 Al Ahli Bank 28.99 0.00 4,678 Ras Al-Khaimah National Insu 2.90 0.00 - City Cement Co 9.16 -0.87 392,793 Hilal Cement Co 0.00 0.00 - Ras Al Khaimah White Cement 0.86 0.00 - Dallah Healthcare Co 56.30 -1.05 152,037 Osoul Investment Kscc 60.00 0.00 19,395 Ras Al Khaimah Ceramics 1.85 2.78 367,562 Northern Region Cement Co 8.25 -0.48 70,490 Gulf Insurance Group Ksc 665.00 0.00 1,500 SAUDI ARABIA Ras Al Khaimah Cement Co Psc 0.60 -7.69 452,766 National Medical Care Co 48.00 0.00 41,807 Umm Al Qaiwain General Inves 65.00 6.73 92,980 Ras Al Khaima Poultry 1.90 0.00 - Aljazira Takaful Ta’awuni Co 17.80 -0.34 233,588 Aayan Leasing & Investment 36.30 3.13 10,589,156 Rak Properties 0.50 1.02 320,000 Company Name Lt Price % Chg Volume Metlife Aig Anb Cooperative 23.58 -1.42 307,970 Alrai Media Group Co Ksc 60.50 0.83 138,431 Ooredoo Qpsc 70.50 0.00 - United Wire Factories Compan 0.00 Bawan Co 13.28 -1.48 161,016 National Investments Co 82.70 -0.12 50 14.10 36,845 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Etihad Etisalat Co -0.61 Saudi Marketing Co 15.66 -0.89 138,094 Commercial Facilities Co 174.00 0.00 57,015 16.34 1,060,285 National Takaful Company 0.62 0.00 - Dar Al Arkan Real Estate Dev -0.11 Umm Al-Qura Cement Co 11.42 -0.70 99,770 Yiaco Medical Co. K.S.C.C 107.00 1.90 100 8.95 3,447,729 National Marine Dredging Co 3.45 0.00 - Alawwal Bank 0.83 Abdul Mohsen Al-Hokair Touri 17.40 0.46 151,439 Munshaat Real Estate Project 102.00 0.00 10,010 14.66 60,396 National Investor Co/The 0.58 0.00 - Rabigh Refining And Petroche 0.74 Noor Financial Investment Co 67.70 -1.02 2,968,372 19.00 218,428 National Corp Tourism & Hote 1.68 0.00 - Banque Saudi Fransi 0.48 Al Tamdeen Investment Co 280.00 0.00 25,000 31.15 223,597 National Bank Of Umm Al Qaiw 2.58 0.00 - Saudi Enaya Cooperative Insu -4.29 Credit Rating & Collection 22.30 0.00 50 23.20 1,493,280 KUWAIT National Bank Of Ras Al-Khai 4.01 -6.09 50,000 Mediterranean & Gulf Insuran 0.61 Ifa Hotels & Resorts Co. K.S 88.00 0.00 3,100 16.42 322,059 National Bank Of Fujairah 4.49 0.00 - Saudi British Bank -1.06 Sokouk Holding Co Sak 39.20 -0.51 77,500 32.75 95,441 Company Name Lt Price % Chg Volume Methaq Takaful Insurance 0.77 5.60 244,330 Red Sea International Co -1.50 Warba Bank Kscp 210.00 -0.94 925,931 14.40 65,331 Manazel Real Estate Pjsc 0.37 -0.27 608,779 Takween Advanced Industries -0.21 Sultan Center Food Products 50.60 -8.00 101,235 Viva Kuwait Telecom Co 803.00 2.03 59,703 9.56 70,178 Invest Bank 2.49 0.00 - Sabb Takaful -0.11 Kuwait Foundry Co Sak 182.00 1.11 18,100 Mezzan Holding Co Kscc 515.00 0.19 1,600 17.48 47,805 Intl Holdings Co Pjsc 0.96 0.21 1,344,500 Saudi Arabian Fertilizer Co 0.92 Kuwait Financial Centre Sak 103.00 0.00 21,020 77.00 86,072 Insurance House 0.85 0.00 - National Gypsum -0.66 Ajial Real Estate Entmt 135.00 0.00 22,802 11.98 31,933 Gulf Pharmaceutical Ind Psc 1.90 -9.09 25,639 Saudi Ceramic Co 0.72 Kuwait Finance & Investment 34.80 3.88 500 19.50 174,346 Gulf Medical Projects 1.75 0.00 - National Gas & Industrializa 0.00 National Industries Co Ksc 184.00 0.55 64 28.00 11,938 OMAN Gulf Cement Co 0.78 0.00 - Saudi Pharmaceutical Industr 0.86 Kuwait Real Estate Holding C 23.50 0.00 163,404 29.30 3,644 Fujairah Cement Industries 1.25 0.00 - Thimar 1.09 Securities House/The 52.10 -0.38 581,997 27.80 1,388,777 Company Name Lt Price % Chg Volume Fujairah Building Industries 1.15 0.00 - National Industrialization C 15.04 0.40 1,318,363 Boubyan Petrochemicals Co 999.00 -0.20 184,000 Voltamp Energy Saog 0.24 -9.81 7,214 Foodco Holding Pjsc 3.71 0.00 - Batic Investments And Logist 38.60 2.80 54,691 Al Ahli Bank Of Kuwait 295.00 0.00 70,100 Vision Insurance Saoc 0.13 0.00 - First Abu Dhabi Bank Pjsc 14.00 0.72 533,122 Saudi Electricity Co 15.12 0.13 725,955 Ahli United Bank (Almutahed) 298.00 0.34 61,320 United Power/Energy Co- Pref 1.00 0.00 - Finance House 1.64 0.00 - Saudi Arabia Refineries Co 41.00 3.02 218,243 National Bank Of Kuwait 832.00 0.00 3,466,201 United Power Co Saog 3.44 0.00 - Eshraq Properties Co Pjsc 0.43 -1.83 5,751,754 Arriyadh Development Company 17.50 -0.11 16,713 Commercial Bank Of Kuwait 500.00 0.00 2,000 United Finance Co 0.09 0.00 - Emirates Telecom Group Co 16.84 0.00 399,887 Al-Baha Development & Invest 23.00 1.32 920,208 Kuwait International Bank 264.00 -0.38 434,822 Ubar Hotels & Resorts 0.13 0.00 - Emirates Insurance Co. (Psc) 6.75 0.00 - Saudi Research And Marketing 83.20 0.85 96,939 Gulf Bank 258.00 -0.39 5,426,200 Takaful Oman 0.13 0.00 - Emirates Driving Company 7.10 0.00 - Aldrees Petroleum And Transp 36.20 0.42 42,949 Al-Massaleh Real Estate Co 36.60 -3.68 3,000 Taageer Finance 0.10 0.00 1,000 Dana Gas 0.80 1.91 6,666,537 Saudi Vitrified Clay Pipe Co 51.30 0.00 2,941 Al Arabiya Real Estate Co 29.00 -3.97 141,285 Sweets Of Oman 0.55 0.00 - Commercial Bank Internationa 0.76 0.00 - Jarir Marketing Co 151.40 0.00 69,833 Kuwait Remal Real Estate Co 42.80 2.64 300,330 Sohar Power Co 0.12 0.00 80 Bank Of Sharjah 1.01 -0.98 100,000 Arab National Bank 31.90 -1.39 606,278 A’ayan Real Estate Co Sak 59.90 0.00 1,000 Smn Power Holding Saog 0.37 0.00 - Axa Green Crescent Insurance 0.50 0.00 - Yanbu National Petrochemical 63.10 0.00 236,145 Investors Holding Group Co.K 12.00 1.69 1,704,612 Shell Oman Marketing - Pref 1.05 0.00 - Arkan Building Materials Co 0.46 -5.91 485,749 Arabian Cement 22.70 -0.87 35,607 Al-Mazaya Holding Co 70.00 -0.71 274,585 Shell Oman Marketing 1.49 0.00 - Alkhaleej Investment 1.61 0.00 - Middle East Specialized Cabl 12.18 2.35 931,236 Al-Madar Finance & Invt Co 162.00 3.18 2,051,400 Sharqiyah Desalination Co Sa 0.31 0.00 - Aldar Properties Pjsc 1.52 2.01 1,335,560 Al Khaleej Training And Educ 12.80 -0.78 201,171 Gulf Petroleum Investment 28.30 1.80 8,233,374 Sembcorp Salalah Power & Wat 0.17 0.00 - Al Wathba National Insurance 12.76 0.00 - Al Sagr Co-Operative Insuran 12.40 -0.80 201,778 Mabanee Co Sakc 621.00 0.00 67,390 Salalah Port Services 0.60 0.00 - Al Qudra Holding Pjsc 0.79 4.37 120,000 Trade Union Cooperative Insu 24.82 0.24 73,126 Inovest Co Bsc 84.00 0.00 335,018 Salalah Mills Co 0.77 0.00 - Al Khazna Insurance Co 0.25 0.00 - Arabia Insurance Cooperative 16.42 -0.85 313,880 Al-Deera Holding Co 19.60 3.16 10 Salalah Beach Resort Saog 1.38 0.00 - Al Fujairah National Insuran 300.00 0.00 - Saudi Chemical Company 31.10 0.32 6,305 Mena Real Estate Co 31.80 -0.31 41,420 Sahara Hospitality 3.09 0.00 - Al Dhafra Insurance Co. P.S. 3.60 0.00 - Fawaz Abdulaziz Alhokair & C 21.78 -0.82 135,535 Amar Finance & Leasing Co 44.10 0.00 2,000 Renaissance Services Saog 0.37 0.00 - Al Buhaira National Insuranc 1.99 0.00 - Bupa Arabia For Cooperative 77.90 1.17 72,935 United Projects For Aviation 635.00 0.00 10 Raysut Cement Co 0.37 0.00 5,000 Al Ain Ahlia Ins. Co. 37.00 0.00 - Wafa Insurance 9.50 0.00 - National Consumer Holding Co 0.00 0.00 - Phoenix Power Co Saoc 0.10 0.00 7,615 Agthia Group Pjsc 3.80 -3.55 380,000 Jabal Omar Development Co 34.10 -0.29 239,912 Amwal International Investme 62.00 0.00 2,000 Packaging Co Ltd 2.21 0.00 - Abu Dhabi Ship Building Co 1.10 0.00 - Saudi Basic Industries Corp 115.60 -1.20 1,171,559 Equipment Holding Co K.S.C.C 26.80 -0.74 155,140 Ooredoo 0.57 0.00 465,556 Abu Dhabi Natl Co For Buildi 0.48 0.00 - Saudi Kayan Petrochemical Co 12.98 0.62 3,279,176 Arkan Al Kuwait Real Estate 81.10 0.00 10,000 Ominvest 0.36 1.12 128,271 Abu Dhabi National Takaful C 4.40 0.00 - Etihad Atheeb Telecommunicat 5.35 0.00 - Gfh Financial Group Bsc 68.30 -3.26 14,494,919 Oman United Insurance Co 0.30 0.00 - Abu Dhabi National Oil Co Fo 2.29 0.00 671,749 Co For Cooperative Insurance 60.70 0.50 41,935 Energy House Holding Co Kscp 38.90 0.00 51,559 Oman Telecommunications Co 0.80 -0.99 98,611 Abu Dhabi National Insurance 3.90 0.00 - National Petrochemical Co 24.80 -0.80 108,621 Kuwait Co For Process Plant 229.00 -4.18 5,000 Oman Refreshment Co 1.75 0.00 - Abu Dhabi National Hotels 3.15 0.00 - Gulf Union Cooperative Insur 14.16 0.43 31,256 Al Maidan Dental Clinic Co K 1,220.00 0.00 1,500 Oman Qatar Insurance Co 0.12 0.00 - Abu Dhabi National Energy Co 0.92 0.55 84,543 Gulf General Cooperative Ins 13.36 -1.04 97,550 National Shooting Company 16.10 0.00 20,100 Oman Packaging 0.27 0.00 - Abu Dhabi Islamic Bank 3.94 2.87 783,641 Basic Chemical Industries 21.90 -1.62 39,973 Al-Ahleia Insurance Co Sakp 420.00 0.00 20,000 Oman Oil Marketing Company 1.13 0.00 - Abu Dhabi Commercial Bank 8.00 0.00 24,694 Saudi Steel Pipe Co 18.00 -1.21 198,098 Wethaq Takaful Insurance Co 27.90 0.00 15,900 Oman National Engineering An 0.16 0.00 - Abu Dhabi Aviation Co 3.15 0.00 - Buruj Cooperative Insurance 25.85 -1.15 151,968 Salbookh Trading Co Kscp 39.00 -2.26 3,400 Oman Investment & Finance 0.08 0.00 128,014 Mouwasat Medical Services Co 81.00 1.76 11,075 Aqar Real Estate Investments 61.20 0.00 50,000 Oman Intl Marketing 0.52 0.00 - Southern Province Cement Co 36.55 -0.14 16,147 Hayat Communications 68.00 0.00 672,199 Oman Flour Mills 0.68 0.00 - Maadaniyah 17.28 -0.23 71,931 Soor Fuel Marketing Co Ksc 115.00 0.88 33,710 Oman Fisheries Co 0.06 0.00 806,626 Yamama Cement Co 13.10 -0.76 156,436 Tamkeen Holding Co 10.20 0.00 15,000 Oman Europe Foods Industries 1.00 0.00 - Jazan Energy And Development 14.50 0.69 157,534 Burgan Co For Well Drilling 95.00 0.00 4,640 Oman Education & Training In 0.24 0.00 - Zamil Industrial Investment 17.08 0.12 12,213 Kuwait Resorts Co Kscc 54.30 -0.37 119,001 Oman Chromite 3.64 0.00 - Alujain Corporation (Alco) 19.38 1.25 596,431 Oula Fuel Marketing Co 116.00 0.87 12,653 Oman Chlorine 0.29 0.00 - Tabuk Agricultural Developme 9.86 -0.40 96,667 Palms Agro Production Co 0.00 0.00 - BAHRAIN Oman Ceramic Company 0.42 0.00 - United Co-Operative Assuranc 11.80 0.00 110,205 Mubarrad Holding Co Ksc 61.00 0.00 13,100 Oman Cement Co 0.30 -1.33 9,409 Qassim Cement/The 33.90 0.00 13,964 Shuaiba Industrial Co 188.00 0.00 50 Oman Cables Industry 0.98 0.00 - Saudi Advanced Industries 12.66 2.26 439,774 Aan Digital Services Co 17.70 -1.67 630,432 Company Name Lt Price % Chg Volume Oman & Emirates Inv(Om)50% 0.12 2.68 6,000 Kingdom Holding Co 7.68 0.00 61,932 First Takaful Insurance Co 46.00 0.00 100 Zain Bahrain Bscc 0.00 0.00 - Natl Aluminium Products 0.36 0.00 - Saudi Arabian Amiantit Co 5.78 0.52 329,832 Kuwaiti Syrian Holding Co 39.30 0.77 1,458,404 United Paper Industries Bsc 0.00 0.00 - National Real Estate Develop 5.00 0.00 - Al Jouf Agriculture Developm 21.60 0.93 19,358 National Cleaning Company 58.00 0.00 13,973 United Gulf Holding Bsc 1.23 0.00 7,890 National Pharmaceutical 0.19 0.00 - Saudi Industrial Development 8.16 -0.49 140,658 United Real Estate Company 60.00 0.00 27,523 Solidarity Bahrain Bsc 0.00 0.00 - National Mineral Water 0.10 0.00 - Riyad Bank 19.56 0.10 2,866,237 Agility 787.00 -1.13 964,040 Seef Properties 0.22 0.00 25,250 National Life & General Insu 0.32 0.00 - The National Agriculture Dev 27.20 0.74 50,577 Kuwait & Middle East Fin Inv 32.00 0.00 1,950 National Bank Of Bahrain Bsc 0.61 0.83 30,000 National Gas Co 0.26 0.79 14,000 Halwani Bros Co 46.60 0.65 96,815 Fujairah Cement Industries 63.50 2.42 75,000 Nass Corp Bsc 0.10 0.00 56,884 National Finance Co 0.14 0.00 47,372,623 Arabian Pipes Co 9.31 -0.11 119,624 Livestock Transport & Tradng 188.00 -1.05 329 Khaleeji Commercial Bank 0.08 -1.20 62,398 National Detergent Co Saog 0.70 0.00 300,771 Eastern Province Cement Co 19.92 -0.50 81,967 International Resorts Co 22.40 -5.88 54,000 Ithmaar Holding Bsc 0.09 0.00 100,000 National Biscuit Industries 3.92 0.00 - Al Gassim Investment Holding 10.84 0.56 551,695 National Industries Grp Hold 157.00 0.00 312,122 Investcorp Bank -$Us 9.40 0.00 862 National Bank Of Oman Saog 0.17 -1.14 451,446 Filing & Packing Materials M 34.50 1.47 17,327 Warba Insurance Co 66.00 0.00 42 Gulf Hotel Group B.S.C 0.00 0.00 - Muscat Thread Mills Co 0.08 0.00 - Saudi Cable Co 36.45 9.95 985,515 First Dubai Real Estate Deve 38.00 -2.56 27,901 Gfh Financial Group Bsc 0.23 -2.17 493,704 Muscat Insurance Co Saog 0.80 0.00 - Tihama Advertising & Public 44.55 1.02 195,595 Al Arabi Group Holding Co 61.40 -9.71 20,000 Esterad Investment Co B.S.C. 0.00 0.00 - Muscat Gases Company Saog 0.21 0.00 10,000 Saudi Investment Bank/The 16.70 0.60 119,301 Mobile Telecommunications Co 447.00 0.00 1,182,516 Eskan Bank Realty Income Tr 0.09 0.00 20,000 Muscat Finance 0.08 0.00 457,196 Astra Industrial Group 16.58 1.59 113,662 Eff ect Real Estate Co 11.00 0.00 171,774 Bmmi Bsc 0.75 0.00 75,000 Muscat City Desalination Co 0.12 0.00 5,000 Saudi Public Transport Co 13.92 -0.29 55,320 Tamdeen Real Estate Co Ksc 345.00 0.00 4,800 Bbk Bsc 0.45 0.00 65,000 Majan Glass Company 0.18 0.00 290 Taiba Holding Co 30.25 -0.33 7,848 Al Mudon Intl Real Estate Co 28.90 -0.34 366,148 Bahrain Telecom Co 0.28 0.72 80,200 Majan College 0.20 -8.22 7,527 Saudi Industrial Export Co 90.40 -0.11 447,214 Kuwait Cement Co Ksc 350.00 0.00 2,188 Bahrain National Holding 0.35 0.00 72,943 Hsbc Bank Oman 0.12 0.00 4,925 Saudi Real Estate Co 12.14 -0.33 76,382 Sharjah Cement & Indus Devel 74.90 7.00 2,000 Bahrain Kuwait Insurance 0.00 0.00 - Hotels Management Co Interna 1.25 0.00 - Saudia Dairy & Foodstuff Co 100.00 0.40 41,636 Kuwait Portland Cement Co 1,120.00 -2.61 23,383 Bahrain Islamic Bank 0.13 6.67 267,833 Gulf Stone 0.12 0.00 - National Shipping Co Of/The 32.50 0.62 172,739 Educational Holding Group 315.00 0.00 42,870 Bahrain Duty Free Complex 0.74 0.00 15,075 Gulf Mushroom Company 0.31 0.00 - Methanol Chemicals Co 9.06 -0.11 412,888 Asiya Capital Investments Co 32.00 3.23 33,233 Bahrain Commercial Facilitie 0.77 1.32 15,132 Gulf Investments Services 0.07 1.43 18,455 Chubb Arabia Cooperative Ins 18.42 0.00 64,213 Kuwait Investment Co 129.00 2.38 589,709 Arab Banking Corp Bsc-$Us 0.42 3.75 705,000 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Mobile Telecommunications Co 8.00 -2.20 6,357,258 Burgan Bank 279.00 -0.36 477,437 Aluminium Bahrain Bsc 0.60 0.00 27,200 Gulf International Chemicals 0.18 0.00 5,000 Saudi Arabian Coop Ins Co 11.92 -1.32 470,864 Kuwait Projects Co Holdings 209.00 -0.48 74,300 Albaraka Banking Group 0.30 1.69 110,569 Gulf Hotels (Oman) Co Ltd 9.50 0.00 - Axa Cooperative Insurance 22.90 0.00 17,644 Al Madina For Finance And In 20.80 -4.15 1,488,772 Al-Salam Bank 0.09 4.65 2,808,200 Global Fin Investment 0.08 0.00 4,400,500 Alsorayai Group 14.36 1.56 3,509,940 Kuwait Insurance Co 350.00 0.00 2,500 Ahli United Bank B.S.C 0.67 0.00 961,078 Galfar Engineering&Contract 0.08 0.00 161,723 Bank Albilad 26.10 0.38 60,167 Al Masaken Intl Real Estate 62.50 0.00 15 Galfar Engineering -Prefer 0.39 0.00 - Al-Hassan G.I. Shaker Co 8.32 -0.72 212,534 Intl Financial Advisors 25.00 -10.07 4,133,010 Financial Services Co. 0.18 0.00 - Wataniya Insurance Co 24.00 -0.33 190,463 First Investment Co Kscc 39.90 1.27 100 Financial Corp/The 0.10 0.00 - Abdullah Al Othaim Markets 67.80 -1.02 35,819 Al Mal Investment Company 19.60 1.03 404,332 Dhofar Tourism 0.49 0.00 - Hail Cement 7.92 0.64 40,469 Bayan Investment Co Kscc 48.50 0.00 129,447 Dhofar Poultry 0.18 0.00 - Saudi Re For Cooperative Rei 7.89 -0.38 221,946 Egypt Kuwait Holding Co Sae 325.00 2.52 1,000 LATEST MARKET CLOSING FIGURES Gulf Times Thursday, December 27, 2018 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 21,718.84 -73.36 Apple Inc 147.67 0.57 14,019,984 S&P 500 Index 2,355.10 +4.00 Microsoft Corp 95.11 1.04 10,961,173 Nasdaq Composite Index 6,215.22 +22.30 Johnson & Johnson 122.29 -0.45 1,972,105 S&P/Tsx Composite Index 13,780.19 -155.25 Jpmorgan Chase & Co 91.16 -1.06 6,063,215 Mexico Bolsa Index 41,211.95 -168.16 Exxon Mobil Corp 65.01 -0.76 5,186,702 Brazil Bovespa Stock Idx 84,140.07 -1,557.08 Walmart Inc 87.01 1.39 2,084,736 Ftse 100 Index 6,685.99 -35.18 Visa Inc-Class A Shares 123.48 1.44 2,858,434 Cac 40 Index 4,626.39 -67.99 Unitedhealth Group Inc 232.32 -0.27 832,312 Dax Index 10,633.82 +0.00 Pfizer Inc 40.66 0.27 5,376,361 Ibex 35 Tr 8,480.60 -76.20 Verizon Communications Inc 52.47 -1.08 4,311,544 Nikkei 225 19,327.06 +171.32 Chevron Corp 100.94 -0.05 1,934,355 Japan Topix 1,431.47 +15.92 Procter & Gamble Co/The 86.82 -0.62 1,802,818 Hang Seng Index 25,651.38 -102.04 Intel Corp 43.69 0.23 5,062,364 All Ordinaries Indx 5,559.60 +26.34 Cisco Systems Inc 40.60 0.79 5,916,846 Nzx All Index 1,515.10 +4.80 Home Depot Inc 160.45 1.46 1,448,588 Bse Sensex 30 Index 35,649.94 +179.79 Boeing Co/The 292.69 -0.50 1,273,273 Nse S&P Cnx Nifty Index 10,729.85 +66.35 Coca-Cola Co/The 45.70 -0.57 3,123,808 Straits Times Index 3,011.15 -39.91 Merck & Co. Inc. 71.11 -0.06 2,976,185 Karachi All Share Index 28,509.79 +29.60 Walt Disney Co/The 100.65 0.30 2,072,997 Jakarta Composite Index 6,127.85 -35.75 Mcdonald’s Corp 169.09 -0.70 751,804 Dowdupont Inc 49.07 -0.04 2,057,087 Nike Inc -Cl B 69.55 2.13 2,255,082 3M Co 177.08 -0.86 553,444 TOKYO Intl Business Machines Corp 106.07 -1.39 1,300,897 United Technologies Corp 100.71 -1.32 1,438,054 Company Name Lt Price % Chg Volume American Express Co 89.30 -0.22 984,182 Traders work on the trading floor at the New York Stock Exchange (file). The flip side of what’s been the third-worst month Sumitomo Realty & Developmen 3,954.00 0.61 1,702,900 Goldman Sachs Group Inc 151.98 -2.80 2,135,268 Sumitomo Metal Mining Co Ltd 2,795.50 -0.39 1,768,200 for American stocks in the postwar era is that prices are a whole lot cheaper than they were before the rout. Walgreens Boots Alliance Inc 64.72 -0.83 907,665 Orix Corp 1,539.00 1.35 4,899,700 Caterpillar Inc 116.26 -0.59 1,025,407 Daiwa Securities Group Inc 536.10 0.53 7,022,800 Travelers Cos Inc/The 111.15 -1.31 240,119 Softbank Group Corp 6,947.00 -1.36 13,352,800 Mizuho Financial Group Inc 166.50 0.42 136,858,700 Central Japan Railway Co 1.23 FTSE 100 21,835.00 402,100 Nitori Holdings Co Ltd 13,680.00 1.86 363,600 With Trump preaching buy the dip, T&D Holdings Inc 1,234.00 -1.28 4,085,300 Company Name Lt Price % Chg Volume Toyota Motor Corp 6,146.00 0.84 5,506,200 Hoya Corp 6,273.00 2.95 1,228,500 Wpp Plc 850.00 -1.73 889,571 Sumitomo Mitsui Trust Holdin 3,934.00 -0.03 935,500 Wood Group (John) Plc 506.20 1.08 525,014 equities look cheapest in years Japan Tobacco Inc 2,511.50 -2.92 9,382,500 Wm Morrison Supermarkets 217.45 -1.27 1,736,978 Osaka Gas Co Ltd 1,935.00 1.47 936,500 Whitbread Plc 4,520.00 1.32 96,600 Sumitomo Electric Industries 1,376.50 1.25 3,005,500 Vodafone Group Plc 154.50 -1.43 29,797,560 tainly proved a great chance to get in. danger of an impending recession in Ono Pharmaceutical Co Ltd 2,162.00 0.53 1,781,800 Bloomberg United Utilities Group Plc 731.40 -4.91 922,105 The S&P 500 has handed investors a the US, and indicators ranging from Ajinomoto Co Inc 1,861.00 1.31 1,806,400 London Unilever Plc 4,164.50 -0.90 674,333 Mitsui Fudosan Co Ltd 2,424.50 0.96 2,854,800 56% return since the start of the fi nal the job market to manufacturing PMIs Tui Ag-Di 1,129.50 0.40 143,130 Daikin Industries Ltd 11,125.00 -0.58 1,155,000 quarter of 2013, a period that includes suggest solid growth will continue, Tesco Plc 190.00 -1.94 4,316,381 Toray Industries Inc 749.50 0.48 4,861,900 what gives some investors pause is Taylor Wimpey Plc 134.85 0.07 1,999,565 he fl ip side of what’s been the the near 15% tumble in the index this Bridgestone Corp 4,079.00 -1.76 2,445,800 Standard Life Aberdeen Plc 251.20 -1.66 1,438,727 third-worst month for Ameri- month. And earnings growth has been broader concern about policy maker Sony Corp 5,103.00 2.06 7,082,600 Standard Chartered Plc 592.20 -0.47 967,176 can stocks in the postwar era is much stronger this year than ear- errors. Back in 2013, the Fed unsettled Astellas Pharma Inc 1,393.50 1.38 6,058,200 T St James’s Place Plc 935.40 -0.26 310,547 that prices are a whole lot cheaper than lier this decade, a trend that many see markets by warning that its quantita- Jxtg Holdings Inc 547.30 1.90 10,150,100 Sse Plc 1,080.50 -0.05 1,310,783 Nippon Steel & Sumitomo Meta 1,820.00 0.69 3,112,700 they were before the rout. continuing thanks to solid US job and tive easing was coming to an end. This Smurfit Kappa Group Plc 2,086.00 -0.19 71,021 Suzuki Motor Corp 5,348.00 1.44 2,212,600 While it may take a strong stomach consumption growth. time around, it’s an accelerating global Smiths Group Plc 1,366.50 -1.05 125,276 Nippon Telegraph & Telephone 4,292.00 1.11 2,618,800 to nibble at US equities, they do off er “You’ve just got to wait for prices withdrawal of liquidity, alongside un- Smith & Nephew Plc 1,441.00 0.03 580,876 Sompo Holdings Inc 3,589.00 0.76 1,797,300 Shire Plc 4,498.50 0.20 3,534,928 the most attractive valuations since to get down to a level where some- expected question marks around the Daiwa House Industry Co Ltd 3,334.00 1.03 1,569,400 Severn Trent Plc 1,817.50 -2.94 231,755 2013, measured by the price-to-earn- body’s going to buy it – I think it’s longevity of US policy makers, that’s Komatsu Ltd 2,297.50 1.86 5,936,300 Segro Plc 602.00 -0.23 668,637 ings ratio for the S&P 500 Index in data gone too far,” said Chris Rupkey, chief hurting confi dence. West Japan Railway Co 7,380.00 1.07 564,400 Scottish Mortgage Inv Tr Plc 442.95 -2.65 913,198 compiled by Bloomberg. At little more financial economist at MUFG Union “After an extraordinary period of Murata Manufacturing Co Ltd 14,335.00 -0.69 1,143,200 Schroders Plc 2,438.00 -0.29 99,539 Kansai Electric Power Co Inc 1,613.50 1.22 1,720,200 than 13 times the coming year’s esti- Bank, referring to the US stock mar- eight, nine years of quantitative easing Sainsbury (J) Plc 263.90 -2.26 1,018,093 Denso Corp 4,570.00 1.40 1,428,200 mated earnings, American stocks are ket. “I expect it to recover from here from the major central banks, which Sage Group Plc/The 567.00 -3.60 638,874 Dai-Ichi Life Holdings Inc 1,640.50 -0.61 6,108,700 also looking less of an outlier versus certainly.” topped out earlier in the year at $24tn Rsa Insurance Group Plc 500.80 0.50 694,782 Mazda Motor Corp 1,085.50 0.23 6,126,500 Royal Mail Plc 279.10 -0.50 670,864 other advanced markets than earlier Some sectors have dropped so much – that’s about a third of the market Mitsui & Co Ltd 1,579.50 1.19 4,701,800 Royal Dutch Shell Plc-B Shs 2,291.00 0.42 1,169,939 this year. they’re even cheaper on an historical capitalisation of all global equities – Kao Corp 7,717.00 0.19 1,659,700 Royal Dutch Shell Plc-A Shs 2,270.00 0.15 1,873,799 “Relative to the stretched valuations basis than the broad big-cap index. Fi- now we’ve started seeing that go into Sekisui House Ltd 1,562.00 1.46 2,647,300 Royal Bank Of Scotland Group 206.00 -1.29 2,418,725 reverse,” said Simon French, chief Oriental Land Co Ltd 10,510.00 2.04 576,300 we have seen for US indices in 2017, nancial shares have been beaten down Rolls-Royce Holdings Plc 801.00 -1.11 598,451 Secom Co Ltd 8,962.00 1.15 1,005,100 the current levels certainly appear thanks to a fl attening in the US yield economist at Panmure Gordon in Lon- Rio Tinto Plc 3,775.00 -0.66 566,993 Tokio Marine Holdings Inc 5,006.00 -0.48 2,270,900 more attractive,” said Jingyi Pan, mar- curve, where Federal Reserve interest- don, on Bloomberg Radio. Rightmove Plc 426.70 1.38 540,257 Aeon Co Ltd 2,129.50 2.09 5,723,300 Futures trading on Wednesday in Rentokil Initial Plc 329.00 1.04 898,521 ket strategist at IG Asia in Singapore. rate hikes have pushed up shorter- Fanuc Corp 16,175.00 2.44 1,332,000 Relx Plc 1,595.00 0.47 948,571 “That being said, just as markets over- dated rates while turmoil in stocks has European hours suggested limited Daito Trust Construct Co Ltd 14,640.00 0.97 239,900 Reckitt Benckiser Group Plc 6,163.00 -1.46 326,222 looked the high valuations and focused contributed to haven demand for long- odds for a bounce in US stocks as trad- Otsuka Holdings Co Ltd 4,431.00 -0.94 1,386,400 Randgold Resources Ltd 6,470.00 -1.07 105,586 on the growth potential through to er-dated Treasuries. ing resumes after the Christmas break. Resona Holdings Inc 513.00 0.10 10,027,900 Prudential Plc 1,368.00 0.59 1,451,269 Asahi Kasei Corp 1,074.00 0.85 3,521,700 the peak this year, the current lowered Valuations on energy stocks are also Contracts on the S&P 500 climbed in Persimmon Plc 1,901.50 -0.08 202,549 Kirin Holdings Co Ltd 2,210.00 -0.32 2,244,700 valuations alone do not make for buy- around their lowest since early this London on Wednesday after swing- Pearson Plc 928.20 0.17 475,991 Mitsubishi Ufj Financial Gro 520.20 0.02 58,667,700 ing reasons.” decade, hammered by the $30-plus ing between gains and losses during Paddy Power Betfair Plc 6,245.00 -1.11 26,384 Marubeni Corp 722.60 1.62 5,577,000 Ocado Group Plc 765.00 -0.60 308,463 President Donald Trump was less a barrel collapse in the price of West the Asia trading day. Headlines rais- Mitsubishi Chemical Holdings 789.90 3.08 8,330,700 Nmc Health Plc 2,722.00 0.81 68,936 equivocal about American companies Texas Intermediate crude since early ing doubts about Trump’s confi dence Fast Retailing Co Ltd 55,890.00 -0.92 1,016,800 Next Plc 4,014.00 -2.34 116,746 at the White House Tuesday: “They October. Others aren’t as much of a in Treasury Secretary Steven Mnuchin Ms&Ad Insurance Group Holdin 3,052.00 0.36 1,520,900 National Grid Plc 778.50 -1.00 1,790,829 have record kinds of numbers. So I bargain. The Dow Jones Industrial Av- were the latest source of disquiet, days Kubota Corp 1,503.00 -0.03 3,238,800 Mondi Plc 1,633.00 0.90 487,035 Seven & I Holdings Co Ltd 4,654.00 1.44 2,220,000 think it’s a tremendous opportunity to erage Index was less expensive as re- after Bloomberg reported the presi- Micro Focus International 1,380.50 2.60 519,348 Inpex Corp 940.20 0.21 4,890,200 buy. Really a great opportunity to buy.” cently as early 2016, as was the Nasdaq dent discussed fi ring chairman Jerome Melrose Industries Plc 157.55 -0.60 2,425,190 Sumitomo Mitsui Financial Gr 3,546.00 -0.23 7,612,900 In retrospect, the last time valua- Composite. Powell out of frustration over interest- Marks & Spencer Group Plc 246.40 -1.36 1,846,775 Ana Holdings Inc 3,838.00 2.21 1,109,800 London Stock Exchange Group 3,908.00 -3.91 172,184 tions were around current levels cer- While few economists see elevated rate hikes. Mitsubishi Electric Corp 1,175.00 2.09 5,656,800 Lloyds Banking Group Plc 50.94 -1.11 44,358,491 Honda Motor Co Ltd 2,781.50 0.93 3,793,500 Legal & General Group Plc 226.60 -0.09 2,981,427 Tokyo Gas Co Ltd 2,699.00 0.95 1,333,800 Land Securities Group Plc 808.60 -0.66 494,677 HONG KONG HONG KONG Tokyo Electron Ltd 12,085.00 2.98 1,838,100 Kingfisher Plc 207.30 -1.38 1,074,033 Panasonic Corp 943.10 2.51 11,531,500 Just Eat Plc 576.80 -2.07 272,781 Fujitsu Ltd 6,652.00 0.74 812,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Johnson Matthey Plc 2,769.00 -0.22 67,221 East Japan Railway Co 9,265.00 1.22 941,000 Itv Plc 125.45 0.04 2,362,970 Aluminum Corp Of China Ltd-H 2.41 -3.21 24,726,916 Hong Kong & China Gas 16.16 0.62 6,418,337 Itochu Corp 1,767.00 0.57 4,006,200 Intl Consolidated Airline-Di 598.00 -2.54 1,216,458 Bank Of East Asia Ltd 24.55 0.41 507,146 Hong Kong Exchanges & Clear 227.60 -0.26 972,560 Fujifilm Holdings Corp 4,086.00 0.86 1,355,700 Intertek Group Plc 4,740.00 -2.05 218,314 Bank Of China Ltd-H 3.33 0.30 321,548,129 Hsbc Holdings Plc 64.15 -0.62 5,543,914 Yamato Holdings Co Ltd 2,794.00 0.54 1,323,000 Intercontinental Hotels Grou 4,062.00 0.74 91,501 Bank Of Communications Co-H 5.94 0.51 12,526,247 Hutchison Whampoa Ltd 0.00 0.00 - Chubu Electric Power Co Inc 1,527.00 0.49 1,352,100 Informa Plc 627.40 1.69 779,205 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 5.52 0.73 213,105,361 Mitsubishi Estate Co Ltd 1,684.00 0.42 3,845,900 Imperial Brands Plc 2,322.00 -2.00 579,642 Boc Hong Kong Holdings Ltd 29.00 -0.34 2,162,918 Li & Fung Ltd 1.22 0.83 10,368,071 Mitsubishi Heavy Industries 3,877.00 0.00 1,262,500 Hsbc Holdings Plc 647.00 -1.07 5,867,296 Cathay Pacific Airways 11.16 -0.18 620,939 Mtr Corp 41.30 1.47 1,407,253 Shiseido Co Ltd 6,395.00 1.93 2,519,200 Hargreaves Lansdown Plc 1,800.00 -1.29 232,502 Ck Hutchison Holdings Ltd 75.95 -0.46 2,428,189 New World Development 10.66 1.33 4,347,913 Shionogi & Co Ltd 6,167.00 0.88 1,277,800 Halma Plc 1,330.00 -1.19 133,814 China Coal Energy Co-H 3.08 -0.65 2,135,400 Petrochina Co Ltd-H 4.85 -0.61 31,930,970 Recruit Holdings Co Ltd 2,598.00 2.22 5,155,900 Gvc Holdings Plc 669.00 -2.12 579,864 China Construction Bank-H 6.35 -0.16 202,339,786 Ping An Insurance Group Co-H 70.05 -0.64 18,466,511 Japan Airlines Co Ltd 3,843.00 2.18 1,585,400 Glencore Plc 287.70 0.17 10,665,520 China Life Insurance Co-H 16.40 -1.32 14,046,166 Power Assets Holdings Ltd 54.85 1.11 1,469,649 Nitto Denko Corp 5,326.00 2.07 1,063,100 Glaxosmithkline Plc 1,497.40 -1.04 2,449,596 China Merchants Port Holding 13.86 0.00 1,095,301 Sino Land Co 13.64 1.19 1,502,860 Kddi Corp 2,516.00 2.11 7,550,400 Fresnillo Plc 835.00 -0.24 196,231 China Mobile Ltd 74.00 -1.79 9,856,603 Sun Hung Kai Properties 113.40 0.27 786,452 Rakuten Inc 724.00 0.98 7,459,000 Ferguson Plc 4,885.50 -0.09 114,035 China Overseas Land & Invest 26.05 -1.88 5,893,286 Swire Pacific Ltd - Cl A 83.35 0.24 317,646 Kyocera Corp 5,273.00 0.21 1,574,800 Experian Plc 1,863.00 0.43 1,016,887 China Petroleum & Chemical-H 5.98 -0.50 43,517,284 Tencent Holdings Ltd 310.60 -1.46 14,579,845 Nissan Motor Co Ltd 856.90 2.24 17,329,900 Evraz Plc 469.80 -3.27 442,720 China Resources Beer Holding 27.00 -0.37 1,488,419 Wharf Holdings Ltd 20.45 0.49 1,416,511 Easyjet Plc 1,099.00 0.55 246,499 China Resources Land Ltd 29.50 0.00 5,376,160 China Resources Power Holdin 15.06 0.00 3,432,961 Ds Smith Plc 296.20 -1.30 609,950 SENSEX Direct Line Insurance Group 314.20 0.13 978,903 China Shenhua Energy Co-H 17.50 0.46 7,281,755 GCC INDICES Diageo Plc 2,795.00 -1.03 1,788,099 China Unicom Hong Kong Ltd 8.20 -2.15 22,713,521 Dcc Plc 5,780.00 -0.52 34,784 Company Name Lt Price % Chg Volume Citic Ltd 12.18 -0.98 7,914,477 Indices Lt Price Change Croda International Plc 4,644.00 -0.02 75,916 Clp Holdings Ltd 89.70 1.01 1,342,109 Doha Securities Market Zee Entertainment Enterprise 455.05 4.19 9,567,794 10,222.98 -10.90 Crh Plc 2,032.00 -0.20 521,323 Cnooc Ltd 11.70 0.17 22,755,123 Saudi Tadawul Yes Bank Ltd 179.45 -1.56 52,124,006 7,710.93 -6.82 Compass Group Plc 1,631.00 -0.21 786,190 Cosco Shipping Ports Ltd 7.70 -0.52 672,464 Kuwait Stocks Exchange Wipro Ltd 326.15 -0.17 2,475,062 4,699.77 +9.73 Coca-Cola Hbc Ag-Di 2,415.00 -0.41 112,428 Esprit Holdings Ltd 1.55 1.97 538,850 Bahrain Stock Exchage Vedanta Ltd 196.40 0.00 10,291,997 1,318.30 +5.30 Centrica Plc 134.85 -0.85 3,017,664 Fih Mobile Ltd 0.83 -3.49 939,100 Oman Stock Market Upl Ltd 750.20 1.87 2,126,973 4,326.15 +13.21 Carnival Plc 3,659.00 -3.23 283,928 Hang Lung Properties Ltd 15.14 1.07 1,392,244 Abudhabi Stock Market Ultratech Cement Ltd 3,996.10 2.02 246,346 4,817.11 +16.41 Burberry Group Plc 1,670.50 -2.45 206,591 Hang Seng Bank Ltd 174.60 -0.11 572,695 Dubai Financial Market Titan Co Ltd 889.15 1.06 3,998,047 2,468.85 +1.50 Bunzl Plc 2,370.00 0.42 157,012 Henderson Land Development 39.40 0.64 836,607 Tech Mahindra Ltd 693.55 -0.62 1,930,785 Bt Group Plc 243.40 -2.25 7,262,256 Tata Steel Ltd 513.45 -0.05 5,420,359 British Land Co Plc 535.00 -0.93 868,005 Tata Motors Ltd 170.90 -0.93 13,365,642 British American Tobacco Plc 2,519.00 -0.55 1,782,039 Tata Consultancy Svcs Ltd 1,889.20 -1.53 2,558,500 Bp Plc 498.90 0.75 6,840,248 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Sun Pharmaceutical Indus 413.65 -2.52 9,115,305 Bhp Billiton Plc 0.00 0.00 - State Bank Of India 294.15 0.38 14,649,704 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Berkeley Group Holdings/The 3,358.00 -1.26 301,754 Reliance Industries Ltd 1,098.35 0.84 7,684,982 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Barratt Developments Plc 444.70 -1.62 932,750 Power Grid Corp Of India Ltd 195.30 0.70 2,728,271 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Barclays Plc 146.36 -1.77 21,053,889 Oil & Natural Gas Corp Ltd 146.60 -0.88 9,689,008 this data.” Bae Systems Plc 451.50 -0.64 1,551,179 Ntpc Ltd 145.55 -0.58 9,044,751 Aviva Plc 372.20 0.08 1,850,493 Maruti Suzuki India Ltd 7,569.10 0.53 645,267 Astrazeneca Plc 5,961.00 1.02 517,829 Mahindra & Mahindra Ltd 787.70 -0.12 1,880,956 Associated British Foods Plc 2,080.00 -2.26 170,429 Larsen & Toubro Ltd 1,422.65 1.27 1,908,282 CURRENCIES Ashtead Group Plc 1,643.00 2.59 448,775 Kotak Mahindra Bank Ltd 1,248.15 0.78 2,489,585 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 771.80 0.36 345,008 DINAR DINAR Jsw Steel Ltd 296.30 1.40 5,912,171 Anglo American Plc 1,739.20 -0.71 685,035 Itc Ltd 276.65 0.24 8,910,859 Admiral Group Plc 1,982.50 0.28 105,047 Infosys Ltd 644.05 -0.76 6,619,419 3I Group Plc 756.20 -4.23 688,259 Indusind Bank Ltd 1,556.45 -0.38 1,823,324 Indian Oil Corp Ltd 134.65 -0.30 20,034,995 Indiabulls Housing Finance L 830.50 1.37 10,221,179 TOKYO Icici Bank Ltd 355.85 0.88 9,174,325 Housing Development Finance 1,933.35 1.64 1,586,723 Hindustan Unilever Ltd 1,791.60 0.39 2,660,597 Company Name Lt Price % Chg Volume Hindustan Petroleum Corp 248.85 1.04 8,073,454 Hitachi Ltd 2,822.00 1.07 3,304,200 Hindalco Industries Ltd 218.60 0.34 6,950,706 Takeda Pharmaceutical Co Ltd 3,718.00 2.14 5,888,200 Hero Motocorp Ltd 3,175.20 0.21 533,979 Jfe Holdings Inc 1,679.00 -0.03 2,728,800 Hdfc Bank Limited 2,122.35 2.00 2,002,721 Sumitomo Corp 1,487.50 1.54 3,846,100 Hcl Technologies Ltd 942.80 0.53 1,260,191 Canon Inc 2,917.00 -1.32 7,135,300 Grasim Industries Ltd 819.25 1.37 1,114,550 Nintendo Co Ltd 28,115.00 1.24 2,921,300 Gail India Ltd 353.40 1.64 2,069,303 Eisai Co Ltd 8,325.00 3.45 968,500 Eicher Motors Ltd 23,081.35 -0.56 58,816 Isuzu Motors Ltd 1,430.00 0.60 1,648,100 Dr. Reddy’s Laboratories 2,622.30 0.87 797,089 Unicharm Corp 3,338.00 0.48 1,559,000 Coal India Ltd 247.05 -0.50 5,260,511 Shin-Etsu Chemical Co Ltd 8,147.00 1.13 1,351,700 Cipla Ltd 514.30 -0.87 1,627,189 Smc Corp 31,940.00 -0.28 231,200 Bharti Infratel Ltd 262.60 0.02 1,314,880 Mitsubishi Corp 2,855.50 1.21 4,227,500 Bharti Airtel Ltd 320.45 3.67 8,039,190 Asahi Group Holdings Ltd 4,092.00 -1.06 1,401,200 Bharat Petroleum Corp Ltd 366.35 0.38 6,788,156 Keyence Corp 53,000.00 2.87 634,100 Bajaj Finserv Ltd 6,439.05 2.62 289,447 Nidec Corp 12,025.00 1.91 1,245,700 Bajaj Finance Ltd 2,567.40 0.10 1,974,549 Nomura Holdings Inc 405.10 1.40 15,332,400 Bajaj Auto Ltd 2,734.60 0.37 455,937 Daiichi Sankyo Co Ltd 3,339.00 1.61 2,447,300 Axis Bank Ltd 619.50 0.73 7,441,089 Subaru Corp 2,272.50 2.80 3,786,800 Asian Paints Ltd 1,363.00 0.44 2,068,544 Ntt Docomo Inc 2,388.50 2.01 3,618,200 Adani Ports And Special Econ 376.55 4.28 4,958,085

Gulf Times AVIATION Thursday, December 27, 2018 11 BUSINESS Trump asked to Fire caused by lithium block Air Italy on batteries: It’s high time irrational grounds ways — and hence the airline tends not to carry passengers from other airlines, but rather just those flying between A and B with Air Italy. to manage risks The route between Milan and New York is already operated by five other carriers, including American Airlines, By Pratap John Delta Air Lines, United, Dubai-based Emirates, and Italy’s bankrupt national carrier Alitalia — arguably one of the In 2011, there was a crash of a South largest receivers of state-subsidies in Korean airline Asiana B747F following recent history, the airline continues to a fire in the cargo compartment. operate day-to-day operations on bor- The aircraft was carrying a large rowed Italian government aid, despite it automotive lithium ion battery, supposedly being a private company. loaded next to a large quantity of By Alex Macheras Following the letter to Trump’s ad- flammable liquid. ministration, Air Italy announced plans The scheduled cargo flight from to start flights to two more destinations Incheon International Airport, Eleven US Senators (led by Senator Ted in North America: Los Angeles and San Incheon, South Korea, to Shanghai Cruz) have written to President Trump’s Francisco, to be operated by Airbus Pudong International Airport in administration criticising Italian airline, A330-200s. China, crashed into the international Air Italy — specifically citing urgent need The Senators, led by Senator Ted waters about 130km west of Jeju for action in relation to Air Italy’s routes Cruz, ended their letter by requesting an International Airport after the to both New York and Miami. investigation into the airline. flight crew reported a cargo fire In 2017, Qatar Airways acquired a 49% The US’ fight against the Gulf carriers and attempted to divert to Jeju stake in AQA Holding, the parent company has been ongoing for several years, but International Airport. of Meridiana Fly, which was later rebrand- Senator Ted Cruz’s calls on an ‘investiga- Aboard the aircraft were two pilots, ed as Air Italy. With Qatar’s investment, tion’ into Air Italy over the airline launch- both fatally injured, and the aircraft Air Italy is now set to become a significant ing and expanding US routes is a new was destroyed. airline player in Italy, and perhaps one update to the ‘America First’ protection- Immediately after the accident, day, the largest, given the uncertainty sur- ism policy the US frequently adopts in search and rescue operations have rounding bankrupt-Alitalia. relation to aviation. been initiated, and about two hours In the letter to the Trump administra- While the Senators highlight the after the accident, the South Korean tion, Senators questioned Air Italy’s ‘unfairness’ in 49% of Air Italy’s funds Coast Guard recovered some floating ability to launch US services, claiming coming from a state-owned airline, why debris and wreckage at the accident Air Italy’s flights to the US threatens are other state-owned airlines continu- site. American airlines and jobs, while adding ously tolerated, or rather, ignored? If The Aviation and Railway Accident that Air Italy’s entry into the “crowded they had assessed Air Italy’s business Investigation Board (ARAIB) market appears consistent with Qatar model correctly, they could have found determined the probable cause Airways pattern of adding subsidised that the airline has no need to act as of this accident as follows: a fire Lithium ion batteries are seen at the Electrovaya headquarters in Canada. While lithium batteries are becoming more capacity in markets where demand is another Qatar Airways access point to developed on or near the pallets and more prevalent in our society, so are the risks involved. already served.” the US — as Qatar Airways fly from its containing dangerous goods but no The Senators said that “without fund- Doha Hamad International Airport hub physical evidence of the cause of the The blaze burned through the goods and to explosives.” This was prevent such incidents. While lithium ing from Qatar Airways, Air Italy would to all 10 of the largest US metro areas. fire was found. fuselage and filled the cabin proposed to the Dangerous Goods batteries are becoming more and be unable to launch its new service, just When Air Italy operated to the US under The fire rapidly escalated into a large Ethiopian Airlines jet with acrid Panel, which adopted requirements more prevalent in our society, so as Qatar Airways would not be viable its former brand, ‘Meridiana’, there were uncontained fire, and this caused smoke while the plane was parked at for packages and overpacks are the risks involved. The above without direct support from the Qatar no complaints from the US Senate. some portions of the fuselage to a remote stand on the runway. containing lithium batteries to be mishaps highlight dangers posed by government.” At this point, one has to Emirates continue to fly between separate from the aircraft in midair, Since the Heathrow incident, Boeing segregated from packages and lithium batteries on flights. wonder if the Senators plan to launch Dubai and New York via Milan, much thereby resulting in the crash. has added a specific section on overpacks containing explosives, Safety experts therefore urge the same attack on government-owned to the dislike of the US — however, for Preliminary findings by South fighting lithium battery fires to its flammable gases, flammable liquids passengers not to travel with a airlines Oman Air, Saudia, Kuwait Air- passengers, both Emirates’ continuation Korea’s Aircraft and Railway Accident flight attendant manual. and flammable solids when loaded device with a damaged or defective ways, Singapore Airlines, Royal Air Ma- of its Milan-New York flights, and Qatar Investigation Board showed the According to the United States into an aircraft unit load device and battery. roc, Aeroflot, Ethiopian Airlines, Finnair, backed-Air Italy’s expansion into the aircraft was 50 minutes into its flight Federal Aviation Administration (FAA) when loaded into the aircraft cargo They must make sure battery is Royal Jordanian, China Airlines & more, US is good news. Both off er a superior and had just been transferred to (as of January 24, 2018) there were compartment. properly installed in their devices. and their respective subsidiary airlines. passenger experience when compared Shanghai area control centre when it as many as 191 air/airport incidents This was adopted to reduce the risk Batteries properly installed in devices This specific kind of rationale used as to the American carriers operating the made the emergency call. involving lithium batteries carried should there be a fire in the cargo pose less of a fire risk as long as they an argument by the US Senators is ap- route, on ageing aircraft, while continu- A year earlier than this incident – in as cargo or baggage that have been compartment so that the flammable are recharged properly. plicable to other state-owned airlines, and ing to charge passengers more. September 2010, the crew of a cargo recorded since March 20, 1991. dangerous goods don’t contribute to If a passenger is travelling with a while it’s certainly true that “without fund- Undoubtedly, Air Italy’s recently plane reported radio problems and Most of these incidents included intensity of any fire that may engulf spare battery, he must take care to ing from Qatar Airways, Air Italy would announced expansion to the US (an- smoke in the cockpit of the B747-400 smoke, fire, extreme heat or the lithium batteries. protect them from damage and short be unable to launch its new service” it’s nounced after the Senators’ letter to freighter shortly before the crash in explosion involving lithium batteries Shippers of lithium cells, batteries circuiting. This can be accomplished also true that “without funding from Trump) will further displease those in an unpopulated area near Dubai. or unknown battery types. Incidents and equipment containing lithium by placing the spare batteries in their Singapore Airlines, ‘Scoot’ would be un- Washington. The cause was not known at the time, have included devices such as cells and batteries when they off er original retail packaging; placing tape able to launch its new service” too — but Finally, it’s worth highlighting that but is now known to have been due E-cigarettes, laptops, cell phones, these for transport must sign the over the terminals of the battery to in true ‘US airlines vs Middle East airlines’ Qatar Airways holds various stakes in to a fire caused by lithium batteries. and tablets. The severity of these completed Shipper’s Declaration, insulate them or place each battery fashion, the focus here is a Gulf carrier. multiple airlines worldwide which fly Investigators say the crash highlights incidents ranged from minor injuries said Dave Brennan, IATA assistant in a separate plastic or protective The Senators fear Air Italy may be act- to the US, including airlines that have the risks posed by lithium batteries, to emergency landings. director (Cargo Safety Standards). pouch. ing as a ‘feeder’ airline for Qatar Airways expanded to the US following Qatar’s which are prone to overheating The accident investigation “In signing the ‘Shipper’s Declaration’, Unless something is done to prevent passengers to fly to the US via Europe, investment. The airline owns a 15% stake leading to intense fires. report in the Asiana airline crash the shipper is declaring that what similar disasters due to fire in cargo similar to how Emirates has a (very in British Airways parent company IAG, A 2013 blaze on a parked Boeing recommended that airlines not load they are off ering complies with all hold caused by lithium batteries, the popular) fifth freedom flight between of whom somewhat specialise in trans- 787 Dreamliner owned by Ethiopian flammable liquids in close proximity relevant parts of the regulations,” FAA says such crashes are all but Milan and New York. atlantic travel, and have a joint-venture at London’s Heathrow prompted to lithium batteries. Brennan points out. inevitable in future! However, Air Italy is mostly a point-to- agreement with American Airlines. investigators to call for a safety The IATA Dangerous Goods Board Even as regulators and safety point carrier. It has established very few review of all lithium battery-powered believes this “should be expanded experts are working on tackling the „ Pratap John is Business Editor and codeshare agreements with airlines such „ The author is an aviation analyst. equipment on planes. to include all flammable dangerous issue, a few precautions can help Chief Business Reporter at Gulf Times as British Airways, Iberia and Qatar Air- Twitter handle: @AlexInAir

Norwegian Air says liquidity is A319neo with CFM LEAP-1A engines wins ‘satisfactory’ as it cuts costs FAA and EASA joint type certification

Bloomberg focus on profit more than expansion. If London there’s a need to issue more shares, the The A319neo powered by CFM family certified over the last three years. will bring much of the world within nonstop company will do it.” International LEAP-1A engines has Its certification also paves the way for the range. Norwegian Air is nearly done using a leased achieved joint type certification from ACJ319neo (Airbus Corporate Jet) variant to The A320neo Family off ers a choice of Norwegian Air Shuttle ASA took pains to Airbus A380 plane on its New York route to both the US FAA and European EASA enter service with VIP operators during the two new-generation engine options (the reassure investors about the solidity of its repatriate all its customers stranded during airworthiness authorities. first half of 2019. PurePower PW1100G from Pratt & Whitney cash position and plans to sell aircraft and the Gatwick shutdown, Allport said, adding This means that now all three aircraft The A319neo is the shortened-fuselage and the LEAP-1A from CFM International), cut costs as disruptions in the debt-laden that it’s too early to put a figure on the models – the A319neo, A320neo and member of Airbus’ game-changing as well as the incorporation of large, fuel- budget carrier’s long-haul flights add to financial cost of the operation. A321neo – are certified by the international A320neo product line. saving “Sharklet” wingtip devices. difficulties during the traditionally slow Although there will be costs involved, authorities to operate with the CFM LEAP-1A This airliner can seat 140 passengers in Moreover, the NEO family is the world’s winter season. Elnaes said the airline won’t be liable to pay engine option. two classes or as many as 160 in a high- best-selling single-aisle product line “To meet the competitive environment in the customers, while buoyant demand for This latest achievement follows an intensive density layout with a range of up to 3,750 with over 6,200 ordered from over 100 a period with seasonally lower demand in aircraft means the company should be able certification flight-test programme since the nautical miles, while its impressive takeoff customers’ since its launch, capturing some Europe, the company has made several to strike a good deal for part of its fleet. A319neo’s first flight in March last year, with performance enables it to operate from 60% share of the market. changes to its route portfolio as well as Norwegian Air must have a book equity this variant having now accumulated over even the most challenging and remote Thanks to their wide cabins, all members of adjusted its capacity,” Norwegian said value higher than 1.5bn kroner and more 500 flight hours. airports. this family off er unmatched comfort in all in a statement. “These measures should than 500mn kroner of liquidity to comply The A319neo with LEAP-1A engines is the Meanwhile, the ACJ319neo’s ability to fly classes and 18” wide seats in economy as improve the financial performance from the with bond covenants, according to a fifth airframe/engine variant of the NEO eight VIP passengers 6,750nm or 15 hours standard. start of 2019.” company presentation. There’s no financial A previously-announced plan to cut costs covenant on a 1bn-kroner revolving credit will save at least 2bn kroner ($230mn) facility agreed with bank lender DNB ASA. next year, while “significant progress” is Norwegian Air chief financial officer Geir being made in efforts to sell five Airbus Karlsen said in November that the carrier SE aircraft, the carrier said. In a separate would idle planes and trim capacity, statement, spokesman Philip Allport said deepen a cost-cutting program, and boost the liquidity position is “satisfactory” and hedging measures. It sold six Boeing Co Norwegian is attracting new passengers 737s in August and two in October, and every month. Winter months are a critical then unveiled the plan to offload five Airbus time for European carriers as travel slows. A320s. Rising fuel prices, persistent engine issues, The airline was also affected by groundings and delivery delays on new planes are of Boeing Co’s 787 jetliners for engine also heaping pressure on Norwegian Air’s repairs and said on Monday it has reached a strategy of offering heavily discounted deal with engine manufacturer Rolls-Royce fares. Adding to these woes, some of the “which will have a positive effect from the company’s flights were grounded last week first quarter of 2019.” due to chaos at Gatwick Airport sparked by The Nordic company, which has rejected drones spotted around the runway that led takeover approaches from British Airways to a prolonged shutdown of operations at owner IAG SA and also attracted interest the hub. from Deutsche Lufthansa AG, has been “It could be a very tough winter and first working to create a fleet joint venture with quarter,” Hans Jorgen Elnaes, an aviation an unnamed partner that would take over analyst at Winair AS, said by phone. “2019 cash obligations on its mammoth aircraft will be a year of consolidation, with the order book. The A319neo with LEAP-1A engines is the fifth airframe/engine variant of the NEO family certified over the last three years Thursday, December 27, 2018 GULF TIMES BUSINESS

BANKING ON KNOWLEDGE Surge in global headwinds contributes to roller-coaster rides in markets

By Dr R Seetharaman Seng down by 14% YTD. Russia is down strengthened by 2% YTD this year and by 8% YTD with fall in oil prices also is at 110 levels against the US dollar. contributing to fall in capital markets. Yields on 10-year US Treasury notes The global markets are witnessing The markets have fallen by concerns slipped on Monday to eight-month lows significant volatility. The Dow Jones has about a slowing global economy, the as investors, unsettled by dramatic fallen by close to 12% YTD this year. The trade dispute with China and another stock market losses, piled more S&P Index has fallen by above 12% YTD interest rate increase by the Fed. Brazil than a year on fears of an economic and low storage levels. Gold price had money into low-risk government debt. this year. The Nasdaq index has fallen had surged by 12% YTD this year. Brazil slowdown and increase in supplies from fallen by close to 3% YTD and is at Two-year yields dropped the most on by above 10% YTD this year. had surged the most as investor- US shale. WTI had fallen by close to 30% $1268.54/ounce and silver had fallen Monday since May, to the lowest level The investor concerns that President friendly candidate Jair Bolsonaro’s YTD. Brent had fallen by close to 24% by close to 13% YTD and is below $15/ since July, on reduced expectations that Donald Trump could fire Federal victory in the country’s presidential YTD. WTI at $42.53/barrel and Brent at ounce. the Federal Reserve will raise interest Reserve chairman Jerome Powell amid election. $50.47/barrel respectively. The Fed’s monetary policy tightening rates further in 2019. anger over the Fed’s recent interest-rate In the Gulf region, Qatar market Earlier this month Opec, Russia and had erased the gains in precious The surge in global headwinds such as hike spurred market losses. Some parts has demonstrated a remarkable other producers agreed to reduce their metals. On the currency side, the dollar slowdown in global economic growth, of the federal government shut down performance in 2018 with 20% growth combined oil output by 1.2mn barrels index is at 96.65 levels and has surged steep drop in oil prices, uncertainty last Friday for the third time this year as YTD. Dubai market down by 27% YTD, daily, with Opec’s share at 800,000 by close to 5% YTD. The dollar index from Fed actions, delay in Brexit lawmakers continued to wrangle over Abu Dhabi market up by close to 9% bpd. However, it failed to impress a has surged on Fed monetary policy plans and US-China trade wars could funding for Trump’s proposed border YTD. Saudi market up by more than 6% market worried about global economic tightening. Euro and pound had fallen contribute to roller-coaster rides in wall. The shutdown could last into 2019. down by 18% YTD, the UK down by YTD. Oman market down by more than growth and consequently crude oil by more than 5% YTD and 6% YTD financial markets. The Nikkei had fallen by more than 5% 13% YTD, France down by 12% YTD. In 15% YTD. Bahrain down by more than demand. Natural gas is at $3.467/ respectively and is at 1.13$ and 1.26$ on Tuesday and by more than 15% YTD. the Asian markets, India up by 1% YTD, 1% YTD. Oil prices plunged by more MMBTU and had surged by more than respectively. The Brexit concerns had „ Dr R Seetharaman is Group CEO In the European markets, Germany Shanghai down by 24% YTD, Hang than 6% to the lowest level in more 12% YTD on account of strong demand impacted pound. The Japanese yen has of Doha Bank.

Scary bonds from last Currency traders on crisis were the best place to hide in 2018

Bloomberg gists than investment-grade New York corporate bonds. They also rec- ommend buying 4.5% coupon front line as markets government-backed mortgage he securities that trig- bonds secured by 30-year loans. gered the last fi nancial The strategists expect the notes Tmeltdown are proving to to outperform investment- be one of the best places to hide grade debt after adjusting for in this downturn. risk, noting that mortgages often Bonds backed by loans like do well in periods of stress and stay wary of US risk auto and credit-card debt have slower growth. gained 1.6% this year through Comparing consumer and Bloomberg Monday, according to Bloomb- corporate balance sheets shows New York erg Barclays indexes. Some por- why that might asset-backed tions of the market for repack- might perform well this time aged debt are doing even better: around. US household fi nancial he fi nal week of 2018 could prove bonds supported by home loans obligations, including payments tumultuous for investors as hol- without government backing on credit cards and mortgages, Tiday-thinned trading combines have gained more than 11% in equaled 9.8 times disposable in- with a growing array of pressures on 2018. Those are eye-popping come in the second quarter, ac- markets. returns after US equities are on cording to the Federal Reserve. Traders in the $5.1tn-a-day currency track to be down more than 10%. That’s the lowest since 2012 and market were among the fi rst to respond to The party for mortgage- and close to the lowest on record. a partial US government shutdown and a asset-backed securities may The fi gure has broadly been report that President Donald Trump has not be stopping. Strategists at trending down since peaking at discussed fi ring Federal Reserve chair- Goldman Sachs Group and Wells the end of 2007. man Jerome Powell. The dollar slipped Fargo & Co are advising clients to US companies, on the other against its Group-of-10 peers, while the add to their holdings while trim- hand, have seen their debt loads yen, seen by many as a haven, gained for ming their corporate bond in- rise more than 40% to $9.6tn a seventh day. vestments. Companies broadly in the last decade. Investment- Treasury futures climbed in early have high debt levels relative to grade Corps now carry average Asian hours before paring their advance. earnings after a decade of low debt loads of more than 3 times Cash bonds trading was shut in Asia due rates, but consumers have been their earnings, the highest on to a holiday in Japan, the fi rst in a week more careful after the housing record, according to S&P Global that will see a number of closures across crisis. Ratings. Around half of US high- major markets. Many of the money manag- grade company bonds are in the Sentiment in global fi nancial markets ers that focus on mortgage- and BBB range, the tier just above has already taken a beating with the S&P asset-backed bonds have had junk. 500 Index just recording its worst week surprisingly strong years. The Figures like those spurred the in seven years. Columbia Mortgage Opportu- Ellington Credit Opportunities Increased uncertainty over the leader- nities Fund gained around 7% Fund to focus on securities tied ship of the Fed could add to turmoil along this year through Friday includ- to consumers. with a partial shutdown of the US gov- ing interest payments, the most The fund, which has returned ernment, although assurances from US among US structured credit 8% this year through October, Treasury Steven Mnuchin about liquidity mutual funds, according to data has benefi ted from trades like and the future of the central bank chief US dollar banknotes are pictured at a currency exchange shop in Mexico. The Bloomberg Dollar Index was up more than 4% in compiled by Bloomberg. The bundling loans from formerly may ease some concerns. 2018 at the end of last week and is close to its highest level in a year and a half, while the Japanese yen surged around 2% last week fund benefi ted from bets includ- delinquent individual borrowers The Treasuries yield curve last week versus the greenback. ing mortgage bonds without into new bonds and selling the moved closer than ever to its fi rst post- government backing, said Jason highest-rated portions to banks crisis inversion and the rally in safer as- fi nancial markets and further tighten fi - tive on the risk that US economic policy won’t melt down if Powell leaves offi ce, Callan, head of structured assets and insurers. It often holds onto sets dragged the 10-year yield below nancial conditions.” Market participants becomes more erratic.” according to Rupkey. “They already did,” at Columbia Threadneedle In- the lower-rated portions of the 2.75% for the fi rst time since April. How- are generally of the view that Powell will The Bloomberg Dollar Index was up he said. vestments in Minneapolis. off erings that can be too risky for ever, given that much of the upheaval is not be fi red, and senior administration more than 4% in 2018 at the end of last Those on the front lines of this week’s “Because interest rates have other buyers. emanating from the US, it is not entirely offi cials say Trump recognises he doesn’t week and is close to its highest level in a opening trade say markets are on a knife been persistently low, consum- Using the asset-backed secu- clear whether Treasuries, and also the US have that authority. But even continued year and a half, while the Japanese yen edge. ers are much more able to repay rities market for both funding dollar, will act as reliable havens should exploration of the possibility could make surged around 2% last week versus the “If equity markets fall further, they’re their debts than in previous cy- and making investments is criti- Powell’s leadership face a genuine threat. for a volatile week. greenback. going to set off machine-based selling,” cles, which allows them ample cal to generating strong returns Societe Generale SA’s head of US rates The market response to a material Chris Rupkey, chief fi nancial econo- said Saed Abukarsh, the co-founder of fl exibility to manage through now, given how low rates still strategy Subadra Rajappa said she thinks threat to the Fed’s independence would mist at MUFG Union Bank in New York, Dubai-based hedge fund Ark Capital a downturn,” Callan said. He’s are, said Mike Vranos, Ellington a change in Fed leadership is “extremely be complicated, according to Steve Eng- is among the few eyeing the strained re- Management. “The other risk is that ex- expecting the economy to slow Management Group’s chief ex- unlikely,” though she’s not ruling out the lander, head of global G-10 FX research lations between the president and the perienced traders are on holiday, so the down next year, but said indi- ecutive offi cer. possibility of the president persuading and North America macro strategy for Fed chair with equanimity. ones left will be trigger happy with every vidual borrowers should be able This optimism about con- Powell to “resign.” Standard Chartered Bank. The stock market “has discounted new headline.” to handle it. The fi rm is looking sumers is a far cry from last “If it comes to that, given the back- He said near-term uncertainty over everything but the kitchen sink, includ- “I can’t see buyers stepping into this at debt like relatively short-term decade, when the housing cri- drop of the recent government shut- the process and politics in a fl uid situ- ing the loss of a Fed Chair who hasn’t market to stem off any selling pressure asset-backed securities now. sis turned subprime mortgage down, investors might be less inclined to ation would weigh on equity prices and been in offi ce for even a year yet,” he said until January,” said Abukarsh. “So if you High-rated slices of asset- bonds and related securities into treat Treasuries as safe haven assets,” she bond yields. The dollar, he said, would by e-mail. need to adjust your books for the year- backed securities supported toxic cesspools that triggered said by e-mail. “A change in Fed leader- likely face multiple opposing forces, but Given that the Fed is already close to end with any meaningful size, you’re go- by consumer debt look more more than $1.9tn of losses for fi - ship will likely rattle the already-fragile the “near-term response is likely nega- the end of its hiking cycle, the markets ing to have to pay for it.” appealing to Goldman strate- nancial institutions. Global chaos makes gold a holiday winner as hedge funds pile in

Bloomberg the Federal Reserve lifted US interest 112,974 contracts, the second gain in said Randy Frederick, a vice president New York rates on December 19, driving declines three weeks. of trading and derivatives at Charles for the dollar. The Fed: The Fed sent shock waves Schwab & Co Inc in Austin, Texas. “The market is questioning whether across assets after policy makers raised “Frankly, that’s probably a better place Forget frankincense or myrrh - chaos in the Fed is making a policy mistake, rates for the fourth time this year and to be because even if the market global markets makes gold the holiday and that could lead not only to slower lowered their forecast for hikes next does come down or we go into a bear asset hedge funds are getting behind. growth, but perhaps to a recession,” year to two from three. Markets had market, that 2% return on cash will still Money managers are the most bullish said Quincy Krosby, the chief market been priced for just one. The stock be there.” they’ve been on bullion in half a year strategist at Prudential Financial Inc, market slumped on concerns the rising US uncertainty: The abrupt resignation amid a multitude of threats that could which has about $1.4tn in assets under borrowing costs would hurt growth. of Jim Mattis as defence secretary has slow economic growth and deepen the management. For equities, when you Meanwhile, currency traders took the stoked turmoil in President Donald plunge for equities. see this “heavy selling, it’s indicative of move as dovish, sending the dollar Trump’s White House and sparked As financial anxieties heighten, fear, and gold becomes a safe-haven lower. That created a bullish spark for worries among governments from investors have poured about $1.25bn allocation.” gold that sent prices above the 200- Brussels to Beijing about the reliability into exchange-traded funds backing Here’s what traders are watching: day moving average. of American alliances. precious metals over the past month, Fund wagers: In the week ended Still, the Fed’s intention to raise rates Negative news is having more of an the biggest inflows among commodity December 18, money managers more could eventually run counter to gold’s impact on gold than it has the past six ETFs. Open interest for gold futures is than doubled their net-long position, appeal, because it doesn’t pay interest months, according to Dan Denbow, a also on the rise. or the diff erence between wagers on a or off er dividends like assets such as senior portfolio manager at USAA Asset Prices have climbed more than 2% price increase and bets on a decline, to bonds, equities or even cash. Management Co that oversees more in December, on pace for the biggest 24,569 futures and options, according “In the very, very short term, if people than $400mn in assets. After declining monthly gain since August 2017. to the US Commodity Futures Trading don’t want to put money into cash for most of 2018, open interest in New Traders flocked to the haven asset as Commission data released three days then, there’s probably nothing wrong York futures has started to rebound. turmoil in the White House extended later. That’s the most bullish since mid- with buying gold, but with interest “Gold, as we all know, has many declines for the stock market. Concerns June. rates being up, cash is actually paying narratives, but right now I think it is Gold prices have climbed more than 2% in December, on pace for the over slower global growth grew after Long-only wagers jumped 15% to a return for the first time in a decade,” uncertainty,” Prudential’s Krosby said. biggest monthly gain since August 2017