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Tuesday, October 15, 2019 Safar 16, 1441 AH TRADING SUPPORT: Page 12 Robust buying GULF TIMES interests lift QSE index above BUSINESS 10,400 levels

Qatar CPI inflation edges down in September: PSA

QFC is eyeing more By Santhosh V Perumal Business Reporter

Qatar’s cost of living, based on CPI (consumer price index), declined 0.75% month-on-month in September despite seven of the 12 sectors treading a flat path, according to the off icial South Korea fi rms amid statistics. The country, however, witnessed a marginal 0.06% jump in inflation on yearly basis, according to figures released by the Planning and Statistics Authority (PSA). The International Monetary Fund, in its latest Article IV consultation with Qatar, said inflation is projected to peak at 3.7% in 2020 with the introduction of a value added tax, but converge growing trade relations to 2% in the medium term. The transport sector, which has a 14.59% weight, saw its group he Qatar Financial Center (QFC) is eyeing index plummet 4.46% on a monthly basis and 0.19% yearly this more South Korean fi rms in view of the September. The sector has the direct linkage to the dismantling of Tgrowing trade relation between the two administered prices of petrol and diesel. countries. The index of housing, water, electricity and other fuels – with a “The QFC is committed to continuing to de- weight of 21.89% in the CPI basket – saw 0.2% and 2.07% declines velop and strengthen these relations, and is al- month-on-month and year-on-year respectively. ready home to several key Korean businesses The CPI of September 2019, excluding “housing, water, electricity, such as Hanwha Techwin and Haeahn Architec- gas and other fuels, showed an increase of 0.66% on yearly basis ture. We look forward to welcoming even more even as it fell 0.9% month-on-month. businesses from South Korea to the QFC in the Food and beverages, which has a weight of 12.58% in the CPI future,” QFC Authority chief executive Yousuf basket, witnessed a marginal 0.07% dip year-on-year in September Mohamed al-Jaida told the Qatar-Korea Business 2019 but registered 0.99% increase year-on-year. Forum, attended by high-level South Korean of- However, the index of clothing and footwear, which has a 5.11% fi cials including ministers and business leaders. bearing on the CPI basket, expanded 1.56% on a monthly basis but Highlighting that Qatar and Korea share ex- saw a 3.07% plunge year-on-year. tensive bilateral economic relations that con- Miscellaneous goods and services, which has a 5.69% weight, tinue to grow year on year; he said while Doha is saw its index gain 0.16% and 4.38% on monthly and yearly basis currently the top liquefi ed natural gas supplier respectively in September. to South Korea, trade volume between two na- The index of recreation and culture, which has a 12.68% weight in tions increased by an impressive 44% to reach the CPI basket, saw a flat path month-on-month this September $16.8bn in 2018. but witnessed a 1.83% decline on a yearly basis. The forum was earlier inaugurated by HE Ali Education, with a 5.75% weight, also saw its index tread a flat bin Ahmed al-Kuwari, Minister of Commerce and course on a monthly basis but registered a 0.93% growth on Industry, and included networking sessions and yearly basis. panel discussions that explored investment op- In the case of furniture and household equipment segment, portunities in Qatar, as well as the impact of arti- which has a 7.7% weight in the CPI basket, the index remained fi cial intelligence (AI) and smart cities on business. unchanged month-on-month but there was a marginal 0.04% dip Al-Jaida was joined by Sheikh Ali Alwaleed on a yearly basis. al-Thani, chief executive, Investment Promo- The index of restaurants and hotels, which has a 6.08% weight, tion Agency; Khalid Abdulla al-Mana, executive treaded a flat course month-on-month but witnessed 1.43% rise director of Business Finance, Qatar Develop- year-on-year in September 2019. ment Bank; and Hamad al-Mohannadi, busi- Communication, which carries a 5.87% weight, saw its group index ness development manager, Qatar Free Zones remain unchanged month-on-month; whereas it witnessed a 1.26% Authority. increase year-on-year this September. The index of health, which Other participants included HE Sheikh Faisal carries a 1.79% weight, was also flat on a monthly basis whereas it bin Qassim al-Thani, chairman, Qatari Business was down 0.08% on yearly basis in September 2019. Association; Sheikh Khalifa bin Jassim al-Thani, The index of tobacco, which has 0.27% weight, was flat on a chairman, Qatar Chamber; and Sung Yun-mo, monthly basis, but more than doubled year-on-year with the South Korean Minister of Trade, Industry and government substantially hiking excise tax on cigarettes from Energy; as well as Yongmaan Park, chairman, January this year. Korea Chamber of Commerce and Industry. Al-Jaida addressing the Qatar-Korea Business Forum.

Qicca issues final and binding judgments in 18 Santos targets Asia LNG growth arbitration cases in 2018

QNA with $1.4bn Conoco agreement Doha

Bloomberg energy producer: Santos and Conoco’s “What we’re seeking is alignment,” said The Qatar International Centre for Conciliation and Sydney northern Australia assets produced about Gallagher on a media call. “What we’re Arbitration (Qicca) has said it issued final and binding 94mn barrels of oil equivalent last year, looking for is people to be balanced on judgments in 18 arbitration cases out of 22 it received last compared to Woodside Petroleum Ltd’s both sides of the joint venture,” he added, year. Board member for International Relations at Qicca, antos Ltd agreed to buy ConocoPhil- 91.4mn. referring to partners having stakes in both Dr Sheikh Thani bin Ali al-Thani said during a legal seminar lips’ northern Australia business for Sanford C Bernstein & Co analysts said Darwin LNG and Barossa. organised by Qicca, an aff iliate of Qatar Chamber, that these S$1.4bn in a deal that will boost the Conoco’s northern Australia business has Gallagher said the company is in ad- indicators reflect the success of the centre in spreading Adelaide-based oil and gas producer’s po- a net asset value of about $1.8bn, citing vanced discussions with LNG buyers the culture of arbitration within the business community in sition in the growing Asian liquefi ed natu- Rystad Energy AS. The deal has “compel- for gas off-take from Barossa, including Qatar. ral gas market. ling strategic merit,” RBC energy analyst with an existing partner in Darwin LNG, He said Qicca last year decided on an arbitration case The transaction may allow Santos to Ben Wilson said in a note to clients, add- and was looking to contract 60%-80% related to contracts concluded in accordance with the rules become the country’s largest independent ing that the price looked reasonable based of gas volumes for the project prior to of Islamic finance worth QR2.5bn, and challenged it before energy producer and capitalise on a push on RBC’s valuation of the assets at around Gallagher: Asia focus. taking a FID, which is expected in early the Court of Cassation, which upheld the ruling issued by by Asian consumers, including China, to $1.63bn. 2020. Qicca. switch to cleaner burning natural gas away Santos, which posted its biggest share shareholders, two of its priorities in recent As an upstream, brownfi eld project, Since its establishment in 2006, Qicca has worked to from coal. Conoco is selling its operating gain this year, said it would fund the ac- years. Barossa was “low risk” compared to new spread the culture of arbitration among the Qatari business interests in the Darwin LNG processing quisition from existing cash and $750mn Conoco is also operator of the Australia greenfi eld LNG projects around the world, community especially as it off ers fast and complete plant and the Bayu-Undan, Barossa and in new two-year debt. Conoco will receive Pacifi c LNG export facility in Queensland, “and because of that it’s got a very com- resolution process to disputes between parties, Sheikh Thani Poseidon gas fi elds. a further $75mn once Barossa enters fi nal which is not part of the Santos deal. petitive cost of supply,” said Gallagher. Its said. “The acquisition of these assets fully investment decision. Santos plans to sell 25% of Conoco’s in- location close to Asian markets also meant Qicca counsellor Dr Minas Khatchadourian presented aligns with Santos’ growth strategy to Conoco is the second US energy major terest in the Darwin LNG export plant to that shipping costs were less than from the proposal on the new rules of the centre regarding the build on existing infrastructure positions, to announce plans to sell down its inter- South Korean fi rm SK E&S as part of the other competing projects. “It’s got very powers of the emergency arbitrator, noting that any party while advancing our aim to be a leading ests in Australia after Exxon Mobil Corp agreement. The company is also in talks robust economics, even in this soft market may submit a written request to the centre to appoint an regional LNG supplier,” Santos chief ex- in September said it would start a process with the facility’s joint venture partners, that we fi nd ourselves in today.” emergency arbitrator to issue measures of an urgent or ecutive offi cer Kevin Gallagher said in a to fi nd a buyer for its Bass Strait producing which include Inpex Corp, Tokyo Gas Co Santos has ambitious plans to grow emergency nature, before the formation and appointment of statement. assets off the coast of southeast Australia. Ltd, Jera Co and Italy’s Eni SpA, to sell eq- DLNG capacity by up to 10mn tonnes per the arbitral tribunal. Santos has been expanding its position Conoco completed the sale of its stake in uity in the Barossa fi eld, which has been annum, compared to 3.7 mtpa currently. He noted that the emergency arbitration provision decides in the Australian oil and gas market hav- the Greater Sunrise fi eld to Timor-Leste’s earmarked to back-fi ll the Darwin plant Over the longer term, the potentially huge on an emergency request as soon as possible, and no later ing acquired Quadrant Energy for about government for $350mn earlier this year, once Bayu-Undan reserves run dry around onshore gas shale reserves in the Beetaloo than 15 days after the appointment. $2.15bn in 2018. Its latest deal could help and the Santos deal will free up capital the end of 2022. Santos will target owner- and McArthur Basins could be processed it become Australia’s top independent to invest in US shale and return cash to ship stakes in both the assets of 40%-50%. through DLNG, Gallagher said. Gulf Times 2 Tuesday, October 15, 2019 BUSINESS

RWE will resist pressure for quicker shutdown of coal capacity

Bloomberg their investors have earned their unilaterally wind down its coal constraining management’s room Frankfurt expected return. Utilities and the operations much before then. for manoeuvre. government are discussing exactly In September, the company pledged Some of the company’s biggest which plants to shut and when, with to make itself carbon neutral by shareholders are municipal Germany’s biggest power environmental groups pressing for 2040. The firm has come under governments where RWE employs generator will resist pressure from faster closures. pressure from environmentally- those workers. They are likely to some environmental groups and “You can’t just employ a hit-and-run minded shareholders and protesters object to a rapid exit from the fuel. shareholders for a rapid shutdown of strategy here,” Krebber said in an to quit its hard coal and lignite At the end of 2018, RWE’s single- its coal-fired plants much before the interview in Frankfurt. The exact operations sooner. It was Europe’s largest shareholder was KEB country’s deadline to do so by 2038. date of the exit would rest on the largest emitter of carbon dioxide last Holding, which is backed by the RWE AG, which owns six facilities progress Germany makes on shifting year, according to European Union City of Dortmund. Its third largest using the dirtiest fossil fuel, has its grid toward wind and solar power Emissions Trading Scheme data. shareholder was the City of Essen obligations to workers and municipal and away from nuclear and coal While Krebber acknowledged with 3% of its stock. shareholders that will prevent plants. some shareholders see risks to “That’s not something a company quicker eff orts to close coal capacity, Germany has pledged to quit RWE’s reputation and finances like ours – especially given the according to its chief financial off icer coal-fired power generation by from maintaining large-scale coal municipal shareholder tradition – Markus Krebber. 2038 in order to meet emissions operations, he also said the company can pursue,” Krebber said. The remarks highlight the targets under the Paris Agreement employed 70% of its workforce Discussing Germany’s ongoing coal complexity of Germany’s decision on climate change. RWE has said in lignite mining operations and exit talks, Krebber said the company Smoke billows on the horizon from Frimmersdorf, left, and Neurath coal-powered plants, to exit from using coal as a power it would stick to the commission’s couldn’t abandon them. German was now in biweekly talks with operated by RWE, in Hambach, Germany. Germany has pledged to quit coal-fired power generation fuel, a move that will recommendations for exiting the corporate law mandates labour the government, adding that the generation by 2038 in order to meet emissions targets under the Paris Agreement on end thousands of jobs and shutter fuel and Krebber’s comments union representation and executive discussions have picked up speed climate change. billions of dollars of assets before suggest the company won’t board and supervisory board level, after a slow start.

Nigeria starts How US oil output went talks with oil majors to end from explosive to sluggish $62bn dispute Bloomberg Bloomberg ston-based investment bank Tudor, Abuja New York/Houston Pickering, Holt & Co, and an overall production decline of 1mn barrels per day, Sanford C Bernstein analyst Bob igeria began preliminary talks with merica’s shale boom got the Brackett said in a note. international oil companies to settle world accustomed to soaring In July, Concho Resources Inc re- Na dispute over revenue. Aproduction. Now growth has vealed disastrous results of a Per- The government, citing a 2018 Supreme slowed, and a cloud has formed over mian spacing test. The stock dropped Court ruling, says it’s entitled to $62bn from the industry. 22% in one day. That was followed by the companies after they failed to comply Fracking pushed the US closer to indications from Apache Corp and with a 1993 law that hands the state a great- its long-sought goal of energy inde- Whiting Petroleum Corp that they er share of income when oil exceeds $20 a pendence at a time of unprecedented were also experiencing delays that barrel. The companies are challenging the geopolitical risk. Wells from Texas’s hurt production. claim. Permian Basin to the Bakken in North At the moment, forecasters see “We have opened up a process of engage- Dakota turned farmers and ranchers diff erent outcomes for 2020, but ment between the parties,” Justice Minister into overnight millionaires. Drivers they’re united that growth will be Abubakar Malami said at his offi ce in Abuja enjoyed cheap gasoline, decent-pay- sluggish. The EIA predicted that late on Saturday. “Whether those discus- ing jobs sprung up in small towns and next year’s production will expand sions will eventually translate to settlement, new technology attracted invest- by nearly 1mn barrels a day – half of whether it will translate to opening up of a ment from all corners of the world, 2018 growth. full-blown negotiation process, is what we keeping drillers busy. Pioneer said oil output will grow wait to see.” It’s true that the end of the boom at about 600,000 to 700,000 barrels President Muhammadu Buhari is trying has been foretold before. For years, per day on average over the next few to bolster government funds after crude the good times came with the warn- years. output and prices dropped. Nigeria relies ing that a litany of fi nancial and engi- It’s all to do with “the change in on oil for at least two-thirds of state reve- neering issues would doom the revo- investor mindset,” CEO Sheffi eld said nue and more than 90% of foreign-curren- lution. Such naysaying was proven at a recent conference. “That’s prob- cy income. While oil is the country’s main wrong again and again by the indus- ably taken off about 300,000 barrels export, it has also targeted other foreign try’s resilience. Producers were able of oil a day off the marketplace going companies in the past, fi ning mobile op- to borrow cheaply, fi ne-tune opera- forward.” erator MTN Group Ltd $5.2bn in 2015, and tions and trim costs along their sup- S&P Global Platts Analytics said eventually settling for less than $1bn after ply chains. that 2020 production is likely to ex- months of negotiations. But the tea leaves look diff erent pand at 1.1mn barrels, while Wood Most of Nigeria’s crude is pumped by this year. Money isn’t as plentiful for Mackenzie estimates growth at Royal Dutch Shell Plc, Exxon Mobil Corp, an industry that in the past decade roughly half that level. Chevron Corp, Total SA and Eni SpA, who burned through nearly $200bn. In- A gas flare burns at dusk in the Permian Basin in Texas, US (file). The S&P 500 Oil & Gas Exploration Index has lost 21% Macquarie Group Ltd’s number is operate joint ventures with state-owned vestors are restless. Returns haven’t in the past 10 years, compared with a 177% rise in the wider market. about 1.3mn barrels per day, assum- Nigerian National Petroleum Corp. Under matched rocketing production, with ing the price holds near $55 a barrel, production-sharing legislation, the com- the S&P 500 Oil & Gas Exploration “You’re going to see a signifi cant a day in the fi rst seven months, ac- cording to a Federal Reserve Bank of but cautioned the estimate could be panies agreed to fund the development of Index losing 21% in the past 10 years, fall back in Permian growth,” Scott cording to the EIA. In weekly data Dallas survey. drastically reduced if the rig count deepwater oil fi elds on the basis that they compared with a 177% rise in the Sheffi eld, chief executive offi cer of available since July, production has Access to capital is especially vital doesn’t increase after recently drop- would share profi t with the government after wider market. Pioneer Natural Resources Co, told hovered at about 12.4mn barrels per to shale drillers because of the wells’ ping to a two-year low. recovering their costs. Crude was selling at “I don’t think the call for the end analysts in an August call. “You’ll day. rapid decline rates. Fracking produc- Giants like Exxon Mobil Corp and $9.50 a barrel when the law became eff ective of shale is stronger this year,” said Ed probably move toward no growth for Some traders and analysts remain tion falls as much as 70% in the fi rst Chevron Corp have plans to expand 26 years ago, and is now trading above $60 Morse, global head of commodities most people.” upbeat, suggesting that the slow- year, compared with as little as 5% in the Permian Basin. Unencumbered in London. research at Citigroup Global Markets Since the oil-price bust of 2014, down is a result of events like bad from conventional vertical drilling, by the funding problems faced by Oil companies including Shell have gone Inc “But it’s more detailed.” unpredictability has been the theme weather. They said new pipelines meaning new wells are constantly independent producers, they plan to to the Federal High Court to challenge the Production growth has run at a pace music of US shale. But through all ramping up will expand takeaway needed. Once the cash for drilling more than double production by the government’s claim that they owe the state of roughly 3% this year after gaining the down moments – a wave of bank- capacity and help drive output gains dries up, production quickly follows. early 2020s. any money, arguing that the Supreme Court nearly 21% from 2017 to 2018, accord- ruptcies and a drop in the number of in 2020. Two of the biggest US oil A more existential issue is also at For now, though, the gathering ruling doesn’t allow the government to col- ing to numbers from the US Energy In- drilling rigs among them – produc- companies are expanding in the shale play. Frackers in the Permian, the clouds have dimmed the outlook. lect arrears. They also contend that because formation Administration. Estimates tion has proven durable. It grew by patch. largest US shale patch, are packing oil Through August, the industry has the companies weren’t party to the 2018 for 2020 vary, but even the most op- more than 2mn barrels per day last But investors have had enough. wells closer together because they’re completed 11% more wells than last case, they shouldn’t be subject to the rul- timistic forecaster has the percentage year, for example. They’re demanding companies running out of space. That creates a year, according to David Ramsden- ing. change nowhere near like it was in the But 2019 has played a diff erent spend less and pay more dividends. loss of well pressure, a phenomenon Wood, chief operating offi cer for “Taking into consideration the govern- glory days, causing even the cowboy- tune. Even with prices holding steady Activists are forcing companies to known as the parent-child eff ect. It Franklin Mountain Energy LLC. ment’s need to attract investments, no pos- booted wildcatters who ignited the above $52 a barrel, oil output was put themselves up for sale. Bank could lead to a loss of 15% to 20% of Even with the added drilling, he sibility can be out-ruled,” Malami said. “The revolution to express doubts. virtually unchanged at 12mn barrels funding is getting tighter, too, ac- recoverable crude, according to Hou- said, production hasn’t grown at all. possibility of settlement is not out of sight.” Five key things to watch for as South Africa acts to fix Eskom

Bloomberg in August that its chief restructuring off icer, Freeman Nomvalo, Cape Town would submit a report to the cabinet by the end of last month recommending how the debt should be reorganised. One of four options was to move most of the debt onto the government’s South Africa has been promising for months to fix Eskom balance sheet while the others weren’t disclosed, according Holdings SOC Ltd, the state power utility that’s drowning in debt, to investors who spoke on condition of anonymity. The made record losses and is reliant on government bailouts to government and Eskom declined to comment on that process, remain solvent. While little tangible progress has been evident or whether it will be incorporated into the policy paper. Gordhan so far, several key decisions are due to be taken this month. has said investors will be consulted on any reorganization. Here’s what to watch out for: 4. Finalisation of energy blueprint 1. Appointment of new chief executive offi cer The Integrated Resource Plan, which has been years in the The utility, which provides about 95% of the country’s power, making and maps out South Africa’s energy mix for the next has been without a permanent CEO since Phakamani Hadebe decade, is due to be discussed by the cabinet tomorrow quit in July. The post has been temporarily filled by its chairman, and then released for public comment, according to Mineral Jabu Mabuza, who has said his replacement will be named by Resources and Energy Minister Gwede Mantashe. A March draft the end of the month. Among three candidates shortlisted are envisions the nation’s electricity output capacity rising more former LNG Canada CEO Andy Calitz and Jacob Maroga, who than 40% to 78,344 megawatts by 2030. The bulk of that is to was Eskom CEO from 2007 to 2009. come from renewable sources. 2. Release of policy paper 5. Mid-term budget Public Enterprises Minister Pravin Gordhan is overseeing The government has allocated 128bn rand to Eskom over the the drafting of a special policy paper that will spell out the next three fiscal years so it can continue to pay its bills. Finance government’s envisioned future for Eskom. It’s likely to flesh out Minister Tito Mboweni will spell out where the money will come a proposal to split the utility into generation, transmission and from when he releases his mid-term budget on October 30. distribution units under a state holding company. The paper The National Treasury has already signalled to government could be referred to cabinet as soon as October 16, and will be departments that they will have to drastically cut costs. released by the end of the month. Additional bailouts for Eskom are unlikely. The Treasury has 3. Debt re-organisation set 28 conditions for Eskom to secure the aid, including that it provide daily updates on its cash position, strengthen its board Eskom owes 450bn rand ($30bn) and isn’t generating enough and provide clarity on the costs and benefits of two new power A sign stands outside the entrance road to Eskom’s Grootvlei coal-fired power station in Mpumalanga, South Africa cash to pay the interest. The utility’s management told investors plants. (file). Eskom owes $30bn debt and isn’t generating enough cash to pay the interest. Gulf Times Tuesday, October 15, 2019 3 BUSINESS

Asian markets rally after China, US reach Mysterious equity surge partial trade deal

AFP concessions made by both Hong Kong sides, it seems these are still the low-hanging fruits that Beijing produces Indonesia’s has off ered in the past. Asian investors yesterday “Some of the more challenging cheered a partial trade deal issues, such as the US between China and the United blacklisting of Chinese tech States, sending regional companies and possible limits markets rallying, though on US institutional investors observers were sceptical about investing in Chinese equities, newest billionaire the overall significance of the don’t seem to be on the agreement. agenda.” On currency markets, Bloomberg Dealers took their lead from a the dollar dipped against most Singapore strong performance on Wall higher-yielding, riskier units Street after top-level negotiators owing to improved optimism. ended two days of talks saying The pound, however, was sk Nico Purnomo Po about the US tariff s due to take eff ect suff ering selling pressure after world-beating stock rally that this week would be put off European leaders appeared Aturned him into Indonesia’s lat- and China would ramp up its unmoved by a hailed Brexit est billionaire, and he’ll tell you the purchases of US farm products. breakthrough on the Northern market is rewarding his property com- They also agreed on other Irish question between the pany’s ability to complete big projects in issues including intellectual leaders of Britain and Ireland. prime locations. property, financial services and The sterling rallied last week “There were concerns before about currencies. after British Prime Minister whether we could execute what we had The news provided some Boris Johnson and his Irish promised to customers, but we’ve proven much-needed support to Asian counterpart Leo Varadkar ourselves,” Nico, 37, the chief operating markets, with Hong Kong up said after talks they could offi cer and controlling shareholder of PT 0.8% and Shanghai jumping see a route towards striking a Pollux Properti Indonesia, said in an in- more than 1% despite data possible divorce deal. terview. showing Chinese imports and But European off icials said Other market observers aren’t so sure. exports fell more than forecast Sunday there were still To them, Pollux Properti’s more than in September. obstacles on how to manage 500% gain since mid-July looks like the Sydney and Singapore both put trade and customs between EU latest example of a thinly traded stock on 0.5%, while Taipei and Seoul member Ireland and Northern surging way ahead of fundamentals. also rallied more than 1%. Ireland, which is a part of Britain. The rally, by far the biggest among Wellington, Mumbai, Manila and “Eurozone negotiators and more than 4,700 shares in the Bloomberg Jakarta saw healthy advances. country leaders appear to be World Index, has lifted Pollux Properti’s While the deal was welcomed underwhelmed by the elaborate valuation to 34 times net assets, 10 times by Trump as “the greatest and detail of the proposed Irish higher than the industry average in In- biggest deal ever made for our backstop solution,” said Jeff rey donesia. Daily trading in the stock over Great Patriot Farmers in the Halley, senior market analyst for the period has averaged around $70,000, history of our Country”, analysts Asia-Pacific at OANDA. meaning it doesn’t take much to boost were a little more guarded. “Like the apparent trade deal the price. “Let’s not get carried away,” that isn’t...precisely no details “The shares have very little liquidity, Raoul Leering, head of of the nuts and bolts of Messrs so the price might not necessarily be a re- international trade research at Johnson and Varadkar’s fl ection of the company’s fundamentals,” ING Bank NV, told Bloomberg breakthrough conversation of said John Teja, a director at PT Ciptadana News. “There is a very tough last week have been released.” Sekuritas in Jakarta. journey ahead for the US and Oil prices dropped more than Christopher Andre Benas, a Jakarta- Chinese negotiators to cut a 1% after Friday’s more-than-two- based analyst who covers the real estate deal that really has substance.” percent surge fuelled by a blast sector at RHB Research Institute, puts There’s the luxury condominium, Flower are up almost 800% since its June future. Our projects are mostly located Tai Hui, chief market strategist on an Iranian tanker as well as it more bluntly: “The valuation doesn’t Pollux Sky Suites, in Mega Kuningan, listing. at ultra-prime locations and defi nitely for Asia at JP Morgan Asset news of the mini trade deal. make sense.” a high-end business district in the Nico, who declined to comment on his landmark iconic buildings.” Management, warned that In Hong Kong, the Hang Seng Indonesia’s stock exchange questioned city, plus another ambitious develop- family’s wealth, was born in Semarang Nico also sees opportunities linked to “market optimism may not be closed up 0.8% to 26,528.95 the rise in August, and Pollux Properti ment on the island of Batam, an hour and came to Singapore for an education, Indonesia’s plan to move its capital from well supported by economic points and Shanghai — pointed to an improvement in its fi nan- by fast ferry from Singapore’s south- studying computing at the National Uni- Jakarta to the island of Borneo. reality”. Composite ended up 1.2% to cial situation. ern coast. versity of Singapore. Pollux Properti doesn’t own any land He added: “While we are still 3,007.88 points. Tokyo was The bourse halted the shares from Long the poor cousin to neighbouring He got his start in real estate in the in the area yet, but has begun a feasi- waiting on the details on closed for a public holiday. trade briefl y in early September after Bintan, where those seeking a weekend city-state and later shifted his focus back bility study on several potential sites, they kept surging, and said on Friday it getaway can stay at resorts with rooms to Indonesia, where housing and infra- he said. continues to monitor the stock. starting from S$1,000 ($730) a night, structure needs have been escalating as Some analysts are much less opti- Fahri Hilmi, a capital markets direc- Batam will soon be home to Meisterstadt the population grows. mistic. Pollux Properti may struggle to tor at Indonesia’s Financial Services Batam. “I spearheaded the expansion into woo Singaporean buyers to its Meister- Authority, known as OJK, said the group The project, now a huge construction property,” Nico said of his transitioning stadt Batam project, given a chal- was coordinating with the exchange re- site, will eventually house a 100-story of the business several years ago. “I saw lenging financing environment, said garding Pollux Properti’s rise. tower for fi nancial fi rms, shopping mall, good opportunities and felt it was the Christine Li, the head of research for On paper, the gains have lifted hospital and high-rise condominiums. right time to enter.” Singapore and Southeast Asia at Cush- Nico’s net worth to $3.6bn, according Pollux has a 51% stake in Meisterstadt, He said Pollux Properti’s meteoric man & Wakefield Inc. to the Bloomberg billionaires Index. the brainchild of late Indonesian presi- share-price rise refl ects the company’s “Because the Singapore government He owns 85% of the company (his fa- dent BJ Habibie, who also was a Po family “investment properties, which will yield has implemented several rounds of prop- ther, Po Sun Kok, is the chairman), via friend. recurring income once operational.” erty-cooling measures, even fi nancing two holding firms. It’s a long way from the company’s In an August 15 fi ling, the company overseas purchases has been tightened Nico also has a 90% stake in the humble beginnings. Nico’s grandmother said fi rst-half profi t was 35.9bn rupiah indirectly,” she said. family’s publicly traded property busi- used to sell shirts she sewed herself to ($2.5mn), a 201% increase from the same “This could potentially aff ect the af- ness in Singapore, Pollux Properties friends in Semarang, a city in Indonesia’s period a year earlier. fordability.” Even when taking into ac- Ltd. Central Java province. “These completions boost investor count Pollux Properti’s undeveloped While Pollux Properti recently com- That textile business still exists via PT confi dence, as Pollux is able to complete land, the stock surge since mid-July Investors look at computer screens showing stock information at pleted the World Capital Tower, one of Golden Flower, although the company mega-size projects,” he said. “There’s looks overdone, RHB’s Benas said. “The a brokerage house in Shanghai. The Composite closed up 1.2% to the tallest buildings in Jakarta, many of now supplies big-label brands like Calvin also certainty that these projects will Indonesian market likes to exaggerate 3,007.88 points yesterday. its key assets are still works in progress. Klein, Zara and Muji. Shares in Golden provide stable recurring income for the things,” he said. “It’s just sentiment.”

Trade doubts lurk in yuan fixing as most EMs rise Trade thaw sends stocks surging and Bloomberg forthcoming, today’s fragile Singapore optimism could evaporate swiftly. The zloty extended its advance Wall Street says the rally isn’t over Considering the lack of to a fifth day as Poland’s ruling enthusiasm for the so-called mini Law & Justice party looked Bloomberg asset prices and bond yields, so trade deal in China, the country’s set for another four years in New York less uncertainty should drive a disappointing trade data, an power after Sunday’s election, a growth revival and market re- unexciting yuan fixing and result that would be in line with versals, as long as valuations the cautious-sounding analyst expectations. Matters may get igns of progress in US- and positions do not already commentaries, it was a wonder more lively later when a Polish China trade talks sent refl ect positive outcomes.” If that emerging markets were able court decides how to apply a Sstocks to the biggest gain history is of any guide, they to make any headway at all. groundbreaking ruling by the in a week and had Wall Street say, investors should brace for But catch-up was predictably European Union’s top tribunal handicappers making odds on a a rotation into emerging mar- the order of the day following relating to non-zloty mortgage bigger rally to come. kets, cyclical and value shares the US rally on Friday, so most loans. The S&P 500 Index climbed while preparing for losses in as- currencies strengthened, Though today’s decision from to within 1.8% of a record af- sets such as developed market bonds were marginally higher the Warsaw court of appeals ter President Donald Trump bonds, US dollar and Japanese and stocks in South Korea, only aff ects a single case, it may said the two sides agreed to the yen. China, Taiwan and Thailand provide a template to how other outlines of a deal that could be Investors embraced the led the MSCI Index to a second cases will be handled aff ecting signed as early as next month. progress on trade talks after successive gain. some $31bn of loans. Should The equity benchmark rose confl icting headlines roiled The yuan’s appreciation was the court go along with the 1.1% on Friday, closing off its markets this week, even if the possibly the most significant EU recommendation that the session highs since several of accord falls short of a compre- because it came after a fixing loans may be annulled, there the thorniest trade problems hensive agreement that would that was in line with the result may be further pain for Polish remain unresolved. Equities put an end to the trade war. of a Bloomberg survey. As our bank stocks. The WIG20 Index also got a boost from signs of “We could break through Singapore-based emerging- declined as much as 0.7%. progress in Brexit negotiations. all-time highs if investors re- market strategist, Simon Flint, Markets took fright as the US At JPMorgan Chase & Co, ally perceive peace to this latest wrote today, the Chinese and Europe ramped up their strategists led by John Nor- round,” said Diane Jaff ee, sen- could have demonstrated sanctions threats against the mand estimated there is 10% ior portfolio manager at TCW, their enthusiasm for Friday’s country over its incursion into upside or more in the stock which oversees $200bn. “Even apparent progress with a northern Syria. It didn’t help market under a “blue sky” sce- Pedestrians walk past the New York Stock Exchange building (file). The S&P 500 Index rose 1.1% on though the market is rising to- symbolically stronger fix. that data yesterday showed nario where agreements are Friday, closing off its session highs since several of the thorniest trade problems remain unresolved. day, there’s still a lot of scepti- The fact that they didn’t might Turkey’s industrial output fell reached in both cases, based on cism embedded here. A lot, a be a good reason to remain for a 12th consecutive month in the way past geopolitical crises They boosted the odds for most since January. Crude oil they urged investors to start posi- lot, a lot.” David Herro, chief skeptical a meaningful currency August. So the lira was under played out. an October 31 Brexit deal from surged following an explosion tioning for a favourable outcome. investment offi cer for inter- pact can be achieved. Today’s pressure for a second day, Outstanding issues are 5% to 50% amid news that UK on an Iranian tanker and Pen- Further progress is likely to revive national equities at Harris As- 0.4% gain in the yuan throws trading as weak as 5.9225 per likely to be resolved because a Prime Minister Boris Johnson tagon plans to ramp up the de- risk appetite from investors who sociates, discusses oil market an even sharper focus on dollar. Two-year domestic bond trade truce with China would made a vital breakthrough in ployment of US forces to Saudi have sought shelter in fi xed in- shocks. tomorrow’s fixing because it yields jumped 66 basis points to strengthen Trump’s bid for next talks with Irish leader Leo Var- Arabia. Gilts tumbled and the come and low-volatility stocks. Elsewhere, equities rallied gives the Chinese authorities 15.89% and the Borsa Istanbul year’s re-election while both the adkar. pound had the biggest two-day “There is still a peace divi- throughout Asia, with shares in another chance to show their crashed through both its 100- UK and European economies Apple Inc, which sells mil- gain in a decade. dend to be earned after this Hong Kong getting an extra lift feelings about Friday. If a and 200-day moving averages are too weak for their leaders to lions of iPhones in China, rose While the strategists admitted week’s moves,” the strategists as protesters discussed scaling substantially stronger fix isn’t to trade 2.3% lower. accept a no-deal outcome, the to an all-time high. The Stoxx details on the trade situation are wrote in a note. “Geopolitics back vandalism ahead of dem- strategists argue. Europe 600 Index jumped the “too scarce to rethink forecasts,” created a growth slump and sank onstrations this weekend. Gulf Times 4 Tuesday, October 15, 2019 BUSINESS

Throwaways help US A reckoning for value investing stainless steel survive nickel as quants gather in London shortage Bloomberg Bloomberg outperform benchmarks. “Today is not New York London 2000, and today’s opportunities are not quite the same as the ones we had at our disposal 20 years ago,” Inker wrote. merican scrap is shielding n a cool October evening in the “But in our estimation, they are simi- the world’s second-larg- City of London, a small army of larly extraordinary and far better than Aest consumer of nickel Oinvestment professionals has anything we had seen before that event from a looming shortage of the gathered for a reckoning. They’ve come or have seen since.” metal. The US produced about to hear Inigo Fraser Jenkins, one of the In the same week as the London 144,000 metric tonnes of nickel quant industry’s most colourful com- Quant Group gathering, Research Af- last year from recycling cars and mentators, opine on the fate of value fi liates was hosting an altogether more planes, discarded refrigerators, investing. formal London event that devoted a sinks, kitchen utensils and just After years of miserable performance session to value investing. The fi rm es- about any used material made and fl eeing cash, it should be a gloomy timates that a mean reversion of valua- from stainless steel, data from topic – but Fraser Jenkins is in a playful tions today could see value outperform Institute of Scrap Recycling In- mood. growth by about 35%. The problem is dustries showed. “Where equities are quite fully val- timing. That’s more than the country’s ued, credit is pretty expensive, sover- “The simple fact is no one knows annual demand. This year’s sup- eign bonds are expensive, private equi- when the turn will be,” founder Rob Ar- ply may rise after scrap exports ty is really, really expensive, maybe the nottsaid in a video address to the group to Canada and China dwindled. only cheap thing I can go buy is value,” of asset-management professionals Premiums companies pay Sanford C Bernstein’s head of quantita- assembled in Holborn. “And if you buy suppliers to have new metal de- tive strategy tells his audience. what’s newly inexpensive, you may livered to the US have tumbled “With the enormous caveat that it’s have a little while to wait until markets to this year’s low, signalling very important that I have absolutely turn and during that period of time you scant demand in the domestic no clients at all.” The crowd bursts into will look and feel like an idiot.” market. That contrasts with the laughter. They are well used to gallows With bond yields tumbling this year 66% surge in the price on Lon- humour when it comes to value. The and tech stocks re-asserting their lead- don Metal Exchange. Inventories investing style that seeks to buy secu- is suddenly red hot thanks to Septem- gible assets. At current levels it might “unimaginably bad” era endured by ership, value looks doomed for bed rest, tracked by the bourse plunged to rities which are undervalued by some ber’s market turmoil, during which a be a good opportunity for asset owners value in the 1990s. if not death. Among six major factors, the lowest since 2012 ahead of fundamental measure has been lagging pure value factor posted its best week in that have “a truly long horizon,” but the “While the magnitude of our under- it is the worst performer both year-to- Indonesia’s ore export ban that just about every other strategy for a 10 years. It resumed its underpeform- problem is few actually do, he says. performance has been 20% to 25% less date and in the past month, according could trigger supply shortages. decade now. ance versus more growth-oriented as- A hundred or so people have come to than it was last time around, its dura- to Citigroup Inc indexes. “We are much more insulated More than a decade, in fact. An in- sets soon after, but the brief revival was hear him speak at an event hosted by tion has been particularly painful,” Ink- All of which has made being a val- from the impact of the Indonesian vestor who went long cheap shares and enough to catch the investing world’s the London Quant Group, which or- er wrote. “This period has lasted over ue fund manager these days like go- ore ban because we are so scrap short expensive ones has lost 37% since attention. ganizes freewheeling evening seminars 10 years instead of the fi ve years of the ing down to “lonesome town,” Fraser reliant,” Joseph Pickard, Washing- 2007, according to Research Affi li- “It’s incredible the number of phone to talk all things systematic invest- late 1990s. Unsurprisingly, our clients Jenkins wrote in a note on the day of his ton-based director of commodi- ates. The California-based fi rm, which calls I got from people over the course of ment. The drink supply is bottomless are once again fi nding their patience talk. He was citing a 1958 Ricky Nelson ties at ISRI, said in a telephone helped pioneer a mash-up of active and last month, saying: Is this it? Is this the and the canapes are plentiful. Unfor- wearing thin.” track, fi lled with lyrics about regret and interview. Using these recycled passive investing known as smart-beta, beginning of the value rally that we’ve tunately where value is concerned, the Yet according to the industry vet- learning to forget. material is also much more cost- sees huge upside when value mean re- been waiting for years and years?” patience of clients is neither. eran, that’s precisely why there has Standing in front of a crowd of his eff ective than buying primary verts. GMO LLC, the famous value- Fraser Jenkins says. “I fi nd it very hard Extraordinary Opportunity Ben Ink- rarely been a better opportunity. As- peers, most of them drink-in-hand, nickel and other metals, he said. investing money manager founded by to agree with that sentiment.” Fraser er can tell you all about that. The head suming value reverts to its long-term leading a debate that’s spreading As traders draw down LME Jeremy Grantham, made a similar argu- Jenkins believes value lives on, but it of asset allocation at GMO tackled the average, GMO’s seven-year forecast is through the investment world, at stockpiles at the fastest pace on ment in a quarterly letter to clients. needs higher infl ation and a new defi - issue head on in his letter this month, for both their multi-asset portfolio and least he knows he’s not alone when record, American consumers of The debate over the investing style nition that takes into account intan- comparing the current situation to the global equity portfolio to signifi cantly talking about it. the stainless-steelmaking in- gredient are staying on the side- lines, content with their steady supply of scrap. The International Nickel Group behind Facebook’s Libra Study Group estimated that the Indonesia ban set to take eff ect Copenhagen’s $1.8bn money pot coin push meets in Geneva January 1 could remove as much as 350,000 tonnes of the refi ned AFP good organisations, and others to implement metal from the world market. is looking for green targets Geneva the cryptocurrency. Macquarie Group Ltd predicts The membership departures came after production of refi ned nickel will US senators sent letters to several financial trail consumption by 47,000 Bloomberg The Danish capital has also set The City of Copenhagen still holds The Libra Association, created by Facebook firms noting that they could face “a high level tonnes in 2020 and the defi cit Copenhagen itself a goal of being the fi rst city in a lot of more conventional assets, to launch its new cryptocurrency, kicked off of scrutiny from regulators” if they partici- could widen to 82,000 tonnes a the world to be net carbon-neutral, including stakes in some of the its first council meeting in Geneva yesterday, pated in the new currency plan. year later. BMO Capital Markets which local politicians expect to world’s biggest equities. Its 20mn- despite defections by previous supporters French economy and finance minister forecasts an even larger shortage fter adopting a greener fo- happen as early as 2025. krone position in Microsoft Corp like Visa and Mastercard. Bruno Le Maire has warned that under cur- – 51,000 tonnes next year and cus for its $1.8bn investment Eric Garcetti, the mayor of Los An- has gone up about 36% this year The meeting also comes as the planned rent circumstances, Libra posed a threat to 127,000 tonnes a year later. Aportfolio a few years ago, the geles, says Copenhagen’s investment alone. In the 12 years the fund has Libra global currency faces swelling criticism the “monetary sovereignty” of governments Stainless steelmakers in the City of Copenhagen is now stepping strategy is one for other cities to follow. existed, its built up stakes in gov- from regulators, and reported warnings from and could not be authorised in Europe. US typically use about 80% to up its search for sustainable assets. He also says he’s already taking steps to ernment bonds, mortgage bonds the G7 group of nations that it poses a threat Facebook executives have, however, 90% of scrap metal as their raw Copenhagen Lord Mayor Frank try to do so, and will be in a position to and equities in an eff ort to boost its to the global financial system. claimed the new digital coin could help lower material. That has protected Jensen says he has “a clear expecta- push the agenda, as he takes over the budget. Over that period, it’s gener- Following the meeting, the non-profit as- costs for global money transfers and help them against the surge in nickel tion that the global green transition rotating chairmanship of C40. ated an extra 2bn kroner. sociation was due to announce its founding those without access to the banking system. prices and the 24% rally in iron in the future will present even bet- “I have already had conversa- “Of course we have to protect membership and provide more details on Facebook chief Mark Zuckerberg is set ore this year through Friday. ter green investment opportunities, tions with sovereign wealth funds taxpayer’s money so we have to how it plans to proceed. to testify at an October 23 hearing in the US US premiums for nickel bri- and we should of course use them.” to bring together all those fi nan- spread our investments,” Jensen, Last month, it voiced hope that the House of Representatives on the Libra plan. quette fell to 18 cents a pound In 2016, the City of Copenhagen ciers and say: Can we adopt these as the Copenhagen mayor, said in an number of companies backing it when it But in a fresh blow, a draft G7 report has above LME prices last month af- changed its investment strategy to standards instead of doing one at a e-mail to Bloomberg. opened for business would swell from an outlined nine major risks posed by such ter staying around 25 cents in the exclude companies that get more time?” Garcetti said in an interview. It’s worth noting that there’s cur- initial 28 to “well over 100” companies. digital currencies, according to the BBC. fi rst half of the year, according to than 5% of their revenue from fos- “Maybe we can develop a standard rently no global standard for what But instead the list has shrunk, after more The report, due to be presented to finance data from CRU Group. The metal sil fuels. Companies involved in the of which we can judge whether we constitutes a green investment, of its initial backers abandoned the alliance ministers at IMF’s annual meeting this for delivery in three months production of tobacco and weap- are being sustainable.” though the City of Copenhagen amid swelling criticism from regulators week, did not single out Libra but referred closed at $17,790 a metric tonne ons are also shunned. Since then, Copenhagen’s investment fund has its own defi nition. Per Hansen, around the world on the planned Libra global to “global stablecoins” with the potential to ($8.07 a pound) on Friday. Copenhagen’s investment fund has is built on surplus revenue from the an investment economist at Nord- currency. “scale rapidly” as posing a range of potential Nickel that’s been recycled generated 517mn kroner ($76mn) city’s taxpayers. The goal of target- net, describes the city’s portfolios Credit card giants Visa and Mastercard, problems. from stainless steel scrap costs in returns. Over the lifetime of the ing greener assets means the city is as “standard+”, which means the online marketplace eBay and digital pay- Stablecoins are seen as more steady than about 4.6 cents in September, up fund, the average three-year return likely to need to move further into investments made are just slightly ments firm Stripe each announced on Friday cryptocurrencies like Bitcoin, since they are from 4 cents a month earlier. has been 500mn kroner. alternative investments, which tend above average in terms of reducing they had changed their minds about being pegged to traditional currencies such as the In normal times, a strong in- Last week, mayors from around to come with a higher risk. the fund’s carbon footprint. founding members of the association, follow- US dollar or the euro. crease in raw material prices the world gathered in the Danish In a recent interview, the head The city’s holdings include air- ing a similar recent announcement by digital But the G7 draft report reportedly would trigger restocking, CRU capital for the annual C40 summit of Denmark’s fi nancial regulator lines, the automotive industry and payments firm PayPal. cautioned that such currencies could pose said. “We believe that on this to address climate change. Much of warned pension funds against ig- gas distribution companies. These Libra Association confirmed on Friday that problems for policymakers setting interest occasion there is limited mo- the focus of the talks was on the way noring their obligation to retirees are not included in the ban, which the companies would no longer be founding rates, and could threaten financial stability if mentum in the US market to of life in Copenhagen, where 40% to generate the highest possible only targets companies involved in members, but said that it would continue users suddenly suff er “loss of confidence” in bring forward purchasing,” the of the population bikes to work or returns, if they’re planning on tar- the extraction, exploration or re- building an alliance of businesses, social- the digital currency. research fi rm said in a note on school every day. geting more ethical investments. fi nement of fossil fuels. September 13. Iron ore spreads crushed as flight to quality takes a knock

Bloomberg SA saying gaps between types of ore In May 2018, BHP Group said the grade material from Vale, even as the Singapore were “here to stay.” reforms in China’s steel sector would miner struggles to restore all of the But as 2019 unfolded, a drop in mills’ hand an advantage to suppliers of output that was knocked off line by the profitability – spurred in part by a dam better-quality iron ore, with executives dam tragedy. The iron ore market’s had a tumultuous collapse at a Vale mine that sparked a referencing a “continuous demand for Following the disaster, Vale has been year as prices soared then sank, miners rally – eroded the diff erentials. higher-quality raw materials.” And to ramping up production from its battled supply disruptions and China “The steel industry is struggling, so the take advantage, Singapore Exchange Northern systems, which produce cooled. Behind the scenes there’s steel mills do not try to maximise blast introduced a futures contract for material with higher iron content, been drama too as grade spreads got furnace productivity at the moment,” higher-grade ore. according to Marex Spectron Group crushed, setting back the case higher- said Erik Hedborg, senior analyst at But this year, spreads narrowed again. analyst Hui Heng Tan. quality products will command a wider CRU Group. Vale’s January dam collapse spurred That part of the company’s operations premium. “They are trying to save costs by a broad rally in prices amid concerns is home to the vast, new S11D project, The gap between a standard tonne of switching to lower-grade ores, which there would be a shortage. That raised which churns out higher-grade ore. ore with 62% iron content and material increases demand for cheaper costs for mills, and the shock played Investors are in line for a host of with 65% iron was about $7 last week, material.” A drop in coking-coal prices out just as conditions worsened in the updates on the outlook as Vale or roughly 7%, according to Mysteel has also fuelled a preference for low- global steel industry, prompting a shift delivers its quarterly production report Globaldata. At the start of the year, the grade ore, according to Hedborg. toward cheaper inputs. yesterday, followed by BHP and Rio spread was 19%, and midway through Iron ore, the key ingredient used to A Bloomberg gauge of mills’ Tinto Group later this week. Ahead of 2018 higher-quality ore was over 40% make steel, comes in many diff erent profitability in China dipped into those insights, more expensive. At the same time, the types that vary by the percentage negative territory in August and, Chinese data showed that iron ore discount between lower-grade and of iron content and the presence of Cranes unload imported iron ore from a ship at a port in Rizhao, China. Iron ore, although it briefly recovered some imports surged in September to the benchmark ore has narrowed. unwanted impurities such as alumina the key ingredient used to make steel, comes in many diff erent types that vary ground afterwards, it returned to third-highest figure on record. Iron ore The grade compression adds a twist and silica. There are also diff erent by the percentage of iron content and the presence of unwanted impurities such loss-making levels this month. In those futures were steady at $88.38 a tonne to an eventful year, although it’s physical forms, with ore sold both as as alumina and silica. circumstances, steelmakers gravitate yesterday in Singapore. On Friday, spot been masked by the drama in the lumps, fines and pellets, that help to towards lower grades. benchmark ore was $92.65 a tonne, foreground. The notion higher-quality determine pricing. to clamp down on pollution – which healthy profit margins for steelmakers The premium between higher-quality while high-grade Brazilian material ore would command a big premium Last year, the premium for higher- pushed mills to use better-quality incentivised them to use more eff icient ore and the benchmark has also fetched $99.40 and lower-quality was one of the market’s chief talking grade ore expanded, with miners and materials – and promote industry ore, typically with greater iron content declined in recent months because Australian ore was $80.60, according to points in 2017 and 2018, with miner Vale banks linking the move to China’s drive consolidation. At the same time, and fewer impurities. there’s been increased supply of better- Mysteel Global. Gulf Times Tuesday, October 15, 2019 5 BUSINESS

KUWAIT KUWAIT OMAN

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

Al-Eid Food Ksc 56.90 0.00 - Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 112.00 -2.61 820,160 Qurain Petrochemical Industr 308.00 -0.32 99,760 Oman Oil Marketing Company 1.07 0.00 - Gulf Petroleum Investment 18.80 1.62 188,499 Advanced Technology Co 900.00 0.00 - Oman National Engineering An 0.14 0.00 1,000 Mabanee Co Sakc 754.00 2.17 485,888 Ekttitab Holding Co Sak 14.90 0.00 628,817 Oman Investment & Finance 0.13 0.00 50,000 Inovest Co Bsc 60.00 0.00 82,000 Real Estate Trade Centers Co 23.90 0.00 - Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 13.20 0.00 - Acico Industries Co Kscc 122.00 -5.43 171,730 Oman Flour Mills 0.68 0.00 400 Mena Real Estate Co 38.00 0.80 426,169 Kipco Asset Management Co 99.00 0.00 - Oman Fisheries Co 0.08 -6.25 426,852 Amar Finance & Leasing Co 45.00 0.00 - National Petroleum Services 1,099.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 450.00 0.00 - Alimtiaz Investment Group 124.00 -0.80 607,449 Oman Education & Training In 0.24 0.00 - National Consumer Holding Co 20.50 -62.73 9,012 Ras Al Khaimah White Cement 59.00 0.00 104,510 Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 40.00 0.00 - Kuwait Reinsurance Co Ksc 158.00 0.00 - Oman Chlorine 0.38 0.00 - Equipment Holding Co K.S.C.C 17.10 3.01 53,700 Kuwait & Gulf Link Transport 71.40 -0.42 25 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 79.50 0.00 - Humansoft Holding Co Ksc 3,190.00 0.16 407,735 Oman Cement Co 0.21 -5.78 45,100 Gfh Financial Group Bsc 71.50 -0.69 25,937 Automated Systems Co Kscc 86.00 0.00 5,000 Oman Cables Industry 0.81 0.00 1,462 Energy House Holding Co Kscp 19.00 0.00 - Metal & Recycling Co 0.00 - Oman & Emirates Inv(Om)50% 0.00 50,000 Zad Holding Co 13.90 0.00 10,099 52.00 0.07 Kuwait Co For Process Plant 212.00 0.00 - Gulf Franchising Holding Co 0.00 - Natl Aluminium Products 0.00 - Widam Food Co 6.23 -0.95 87,682 0.90 0.18 Al Maidan Dental Clinic Co K 1,240.00 0.00 - Al-Enma’a Real Estate Co -0.84 115,476 National Real Estate Develop 0.00 - Vodafone Qatar 1.22 -0.81 680,916 47.50 5.00 National Shooting Company 10.30 0.00 - National Mobile Telecommuni 0.70 9,681 National Mineral Water 0.00 - United Development Co 1.39 1.46 1,937,600 718.00 0.09 Al-Ahleia Insurance Co Sakp 420.00 0.00 - Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 0.40 -1.48 877,893 0.00 0.32 Wethaq Takaful Insurance Co 30.00 0.00 - Unicap Investment And Financ -2.83 547,809 National Gas Co 0.44 46,180 Qatar & Oman Investment Co 0.53 1.74 66,441 41.20 0.23 Salbookh Trading Co Kscp 40.50 -0.98 40,200 Al Salam Group Holding Co 1.38 1,267,541 National Finance Co 0.00 - Qatar Navigation 6.41 4.23 311,716 29.40 0.14 Aqar Real Estate Investments 73.10 0.00 - Al Aman Investment Company 0.00 50,000 National Detergent Co Saog 0.00 - Qatar National Cement Co 5.95 0.00 65,465 55.00 0.70 Hayat Communications 88.90 0.00 - Mashaer Holding Co Ksc -0.71 55,200 National Biscuit Industries 0.00 - Qatar National Bank 19.31 -0.16 2,169,999 69.50 3.92 Soor Fuel Marketing Co Ksc 117.00 0.00 14,791 Manazel Holding 0.00 100,000 National Bank Of Oman Saog 0.00 - Qatar Islamic Insurance 6.75 -3.57 131,555 25.00 0.19 Tamkeen Holding Co 5.20 0.00 - Tijara And Real Estate Inves -2.78 1,000 Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 3.62 0.28 16,317 35.00 0.08 Alargan International Real 109.00 0.00 - Jazeera Airways Co Ksc 0.71 396,382 Muscat Insurance Co Saog 0.00 - Qatar International Islamic 9.55 1.49 5,363,363 998.00 0.78 Burgan Co For Well Drilling 98.10 0.00 - Commercial Real Estate Co 3.22 20 Muscat Gases Company Saog 0.00 - Qatari Investors Group 1.84 0.55 995,439 92.90 0.17 Kuwait Resorts Co Kscc 55.30 0.00 - National International Co -7.85 130 Muscat Finance -1.47 20,000 Qatar Islamic Bank 15.60 2.56 692,819 54.00 0.07 Oula Fuel Marketing Co 117.00 0.86 11,318 Taameer Real Estate Invest C -1.87 109,120 Muscat City Desalination Co -0.85 11,156 Qatar Gas Transport(Nakilat) 2.41 2.55 3,245,102 26.20 0.12 Palms Agro Production Co 59.00 0.00 - Gulf Cement Co 6.13 2,500 Majan Glass Company 0.00 - Qatar General Insurance & Re 3.43 0.00 - 58.90 0.18 Mubarrad Holding Co Ksc 59.50 0.85 104,750 Heavy Engineering And Ship B -0.49 79,510 Majan College 0.00 - Qatar German Co For Medical 0.78 -0.26 11,187,795 403.00 0.17 Shuaiba Industrial Co 160.00 0.00 - National Real Estate Co -0.13 259,308 Hsbc Bank Oman 0.00 201,000 Qatar Fuel Qsc 22.99 0.70 293,370 78.90 0.13 Aan Digital Services Co 16.30 -3.55 289,060 Al Safat Energy Holding Comp -1.99 159,569 Hotels Management Co Interna 0.00 - Qatar First Bank 0.31 -0.32 4,442,471 19.70 1.25 First Takaful Insurance Co 40.00 0.00 - Kuwait National Cinema Co 1.13 11,652 Gulf Stone 0.00 - Qatar Electricity & Water Co 15.50 0.00 135,205 809.00 0.12 Kuwaiti Syrian Holding Co 30.10 -2.90 440,857 Danah Alsafat Foodstuff Co -5.98 6,811,169 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 10.27 1.43 500 17.30 0.31 National Cleaning Company 58.90 1.55 10,060 Independent Petroleum Group -1.16 31,001 Gulf Investments Services -3.80 60,302 Qatar Cinema & Film Distrib 2.20 0.00 - 425.00 0.08 United Real Estate Company 62.50 0.00 5,500 Kuwait Real Estate Co Ksc 2.73 15,682,178 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 2.32 0.00 - 86.70 0.11 Agility 743.00 -0.54 568,092 Salhia Real Estate Co Ksc 0.00 - Gulf International Chemicals 0.00 - Qatar Insurance Co 3.18 -1.24 1,289,432 331.00 0.14 Kuwait & Middle East Fin Inv 70.50 -3.42 895,571 Gulf Cable & Electrical Ind -1.09 236,743 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 0.90 1.23 4,000,997 455.00 7.78 Fujairah Cement Industries 50.50 1.00 69,200 Kuwait Finance House -0.15 2,450,956 Global Fin Investment 0.00 - Ooredoo Qpsc 7.37 1.52 844,607 682.00 0.07 Livestock Transport & Tradng 189.00 0.00 - Gulf North Africa Holding Co -0.17 442,000 Galfar Engineering&Contract 0.00 456,000 National Leasing 0.69 0.14 33,990 57.90 0.08 International Resorts Co 14.20 0.00 - Hilal Cement Co 0.00 - Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 0.74 2.21 1,271,849 90.00 0.39 National Industries Grp Hold 228.00 0.00 448,475 Osoul Investment Kscc 0.00 - Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 2.84 -0.35 1,822,343 70.00 0.06 Warba Insurance Co 80.00 16.45 400 Gulf Insurance Group Ksc -2.94 22,789 Financial Corp/The 0.00 - Al Meera Consumer Goods Co 15.49 0.19 49,250 660.00 0.10 First Dubai Real Estate Deve 31.40 -1.26 376,370 Umm Al Qaiwain General Inves -9.95 600 Dhofar Tourism 0.00 - Medicare Group 7.93 2.06 533,157 66.10 0.49 Al Arabi Group Holding Co 102.00 10.63 3,030,770 Aayan Leasing & Investment -0.72 901,749 Dhofar Poultry 0.00 - Mannai Corporation Qsc 3.26 0.62 39,860 55.50 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc -9.09 193,051 Dhofar Intl Development 0.00 - Masraf Al Rayan 3.72 3.33 17,056,771 39.00 0.30 Mobile Telecommunications Co 551.00 0.55 3,465,406 National Investments Co -1.57 412,085 Dhofar Insurance 0.00 - Al Khalij Commercial Bank 1.19 0.85 150,292 125.00 0.17 Eff ect Real Estate Co 20.50 0.00 - Commercial Facilities Co 0.51 13,552 Dhofar Generating Co Saoc 0.00 - Industries Qatar 10.95 0.09 804,766 199.00 0.19 Tamdeen Real Estate Co Ksc 293.00 0.00 16,100 Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 1.98 -0.50 355,096 66.50 1.28 Al Mudon Intl Real Estate Co 17.20 -0.58 450,000 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed -6.63 10,001 Investment Holding Group 0.53 -0.75 2,339,321 350.00 0.18 Kuwait Cement Co Ksc 259.00 -4.07 5,020 Real Estate Asset Management 0.00 - Dhofar Beverages Co 0.00 - Gulf Warehousing Company 4.92 -0.61 16,248 95.40 0.26 Sharjah Cement & Indus Devel 59.00 0.00 - Construction Materials Ind 0.00 - Gulf International Services 1.66 0.00 332,031 0.04 Kuwait Portland Cement Co 1,100.00 -3.51 9,999 Computer Stationery Inds 0.00 - Ezdan Holding Group 0.65 -1.07 6,196,149 0.26 Educational Holding Group 320.00 0.00 - Bankmuscat Saog -0.45 45,342 Doha Insurance Co 1.00 0.10 25,000 0.44 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa 0.00 10,850 Doha Bank Qpsc 2.58 1.98 4,947,144 0.09 Asiya Capital Investments Co 34.10 2.40 217,636 OMAN Bank Dhofar Saog 0.00 400,000 Dlala Holding 0.68 -1.02 57,600 0.13 Kuwait Investment Co 136.00 -1.45 20,000 Arabia Falcon Insurance Co 0.00 - Commercial Bank Psqc 4.50 2.51 8,311,845 Company Name Lt Price % Chg Volume 0.10 Burgan Bank 307.00 -0.32 7,248,620 Aloula Co 0.00 - Barwa Real Estate Co 3.43 2.08 6,770,543 0.53 Kuwait Projects Co Holdings 219.00 -0.45 513,997 Al-Omaniya Financial Service 0.10 1.06 926,577 Al Khaleej Takaful Group 2.04 -5.12 4,235,763 Voltamp Energy Saog 0.18 0.00 1,365 Al Madina For Finance And In 14.70 -5.16 1,345,846 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 0.71 -0.42 7,036,140 Vision Insurance Saoc 0.11 0.00 4,000 Kuwait Insurance Co 315.00 0.00 - Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 74.00 0.00 - Al-Anwar Ceramic Tiles Co 0.11 0.00 - United Power Co Saog 2.40 0.00 - Intl Financial Advisors 53.90 1.32 220,049 Al Suwadi Power 0.07 0.00 748,000 United Finance Co 0.08 0.00 - KUWAIT First Investment Co Kscc 29.30 -1.01 2,454,298 Al Sharqiya Invest Holding 0.09 -3.26 47,464 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 10.20 0.00 3,147,726 Al Maha Petroleum Products M 0.79 0.00 - Takaful Oman 0.12 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 40.10 -2.20 325,793 Al Maha Ceramics Co Saoc 0.17 0.00 6,533 Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 500.00 0.00 - Al Madina Takaful Co Saoc 0.08 0.00 771,136 Sultan Center Food Products 40.00 -8.88 1,186,471 Sweets Of Oman 0.55 0.00 - Coast Investment Development 31.70 -0.63 71,235 Al Madina Investment Co 0.02 0.00 56,000 Kuwait Foundry Co Sak 420.00 1.20 4,350 Sohar Power Co 0.08 0.00 110 Privatization Holding Compan 52.50 0.00 7,523 Al Kamil Power Co 0.38 0.00 - Kuwait Financial Centre Sak 93.90 1.08 34,617 Sohar International Bank 0.11 0.00 118,000 Injazzat Real State Company 83.00 0.00 - Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 137.00 0.00 - Smn Power Holding Saog 0.08 -1.27 299,000 Kuwait Cable Vision Sak 26.00 52.94 47 Al Jazeera Steel Products Co 0.19 0.00 - Kuwait Finance & Investment 47.00 -1.05 415,276 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 35.00 0.00 - Al Jazeera Services 0.13 3.15 1,218,965 National Industries Co Ksc 166.00 -0.60 89,860 Shell Oman Marketing 1.05 0.00 246,581 Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.07 0.00 110,000 Kuwait Real Estate Holding C 28.90 0.00 - Sharqiyah Desalination Co Sa 0.29 0.00 - Aviation Lease And Finance C 267.00 0.00 1,049 Al Buraimi Hotel 0.88 0.00 - Securities House/The 42.40 -1.62 408,443 Sembcorp Salalah Power & Wat 0.13 -0.79 11,000 Arzan Financial Group For Fi 25.90 -0.77 2,044,105 Al Batinah Power 0.07 1.41 493,754 Boubyan Petrochemicals Co 769.00 1.18 378,269 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 14.00 1.45 1,553,953 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 300.00 0.33 2,500 Salalah Mills Co 0.50 0.00 550 Kuwait Business Town Real Es 40.00 0.00 309,000 Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 319.00 -0.93 295,916 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 90.00 7.14 45,949 Al Anwar Holdings Saog 0.09 -1.12 63,976 National Bank Of Kuwait 949.00 0.11 1,152,295 Sahara Hospitality 3.15 0.00 - Specialities Group Holding C 70.70 1.00 10 Al Ahlia Insurance Co Saoc 0.36 0.00 - Commercial Bank Of Kuwait 500.00 0.00 - Renaissance Services Saog 0.27 6.67 1,352,376 Abyaar Real Eastate Developm 12.50 1.63 9,322,241 Ahli Bank 0.13 0.00 - Kuwait International Bank 270.00 0.75 12,750,026 Raysut Cement Co 0.35 0.00 2,790 Dar Al Thuraya Real Estate C 162.00 0.00 - Acwa Power Barka Saog 0.66 0.00 - Gulf Bank 279.00 0.72 1,224,707 Phoenix Power Co Saoc 0.08 3.75 196,937 Kgl Logistics Company Kscc 35.40 0.00 440,990 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 37.60 9.94 11,045 Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 229.00 0.44 101,897 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 25.90 0.00 1,151,914 Ooredoo 0.52 0.38 5,600 Jiyad Holding Co Ksc 43.70 0.00 - 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 23.50 -0.42 20,010 Ominvest 0.34 0.00 4,716 Warba Capital Holding Co 63.00 -5.97 75,874 #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 850.00 0.00 - Oman United Insurance Co 0.25 1.20 94,673 Gulf Investment House Ksc 43.00 -1.15 115,934 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.59 0.00 81,764 A’ayan Real Estate Co Sak 66.00 0.00 20,000 Boubyan Bank K.S.C 560.00 -0.36 376,596 Oman Refreshment Co 1.33 0.00 - Investors Holding Group Co.K 8.10 0.00 134,532 Ahli United Bank B.S.C 274.00 -0.72 5,517,586 Oman Qatar Insurance Co 0.10 0.00 - Al-Mazaya Holding Co 55.90 0.18 189,700 Osos Holding Group Co 101.00 0.00 - LATEST MARKET CLOSING FIGURES

Bond market bounce-back shows RBI-driven bond rally in deep misgivings on global growth Bloomberg London

ne week of optimism India isn’t over: Survey does not a bond tan- Otrum make. Bloomberg to deploy investment surpluses as Fixed-income markets Mumbai companies deleverage and hold were quick to rebound from back fresh investments. last week’s drubbing as With this backdrop, investors optimism faded over both ore rate cuts from Asia’s will be happy to consider investing Brexit talks and a US-China most accommodative in long maturity state companies’ “mini-deal” on trade. Mcentral bank this year will bonds at current levels due to their Investors instead reo- help India’s sovereign bonds post perceived safety, liquidity and su- pened the playbook that modest gains despite the linger- perior risk-adjusted returns. has served them so well for ing fear of the government missing Pankaj Pathak, fi xed-income most of this year – buying ternational Monetary Fund suit, while US markets were budget targets. fund manager at Quantum Asset bonds, selling currencies is likely to be the latest to closed for a holiday. The yield on the new 10-year Management, said fi scal develop- that are sensitive to the glo- cut its growth forecasts as it The pound tumbled 1% bond due in 2029 is likely to drop to ments will continue to be a drag for bal economy and avoiding starts its annual meeting in after its best week in two 6.38% by December-end, and fur- the next six months. stocks – as recession fears Washington this week. years as traders realised ther to 6.30% by March, accord- The government has announced reawakened. That’s plenty of fodder last week’s optimism over ing to the median estimates in a a borrowing calendar, but it seems “We are in the last knock- to argue against a tantrum a Brexit deal may have been Bloomberg survey of 12 traders and the market does not believe the ings of this cycle,” said in bond markets – the sort misplaced. fund managers. numbers. Sees room for repo rate James Athey, a money man- of rapid rise in yields seen Joining it at the bottom It fell two basis points to 6.49% Reserve Bank of India signage is displayed at the entrance to the bank’s going below 5% as most steps ager at Aberdeen Standard in Treasuries in 2013 or in of the currency-market yesterday. headquarters in Mumbai. More rate cuts from Asia’s most accommodative taken by the government are non- Investments in London, who bunds in 2015. leaderboard were the New The $20bn tax break to com- central bank this year will help India’s sovereign bonds post modest gains infl ationary. Fiscal breach is not is looking to re-enter a US Still, traders in money Zealand and Australian panies and the sluggish growth in despite the lingering fear of the government missing budget targets, because of higher expenditure but Treasury long position that markets pared back expec- dollars, plus the Norwegian revenue have led to concerns about according to the median estimates in a Bloomberg survey of 12 traders lower revenue. he had for most of the year. tations for future rate cuts krone. the government adding to its record and fund managers. Positive on sovereign bonds be- “Trade is an irritant, not the by the Federal Reserve last As with much of the Brex- borrowings. cause the fi scal impact is limited. disease.” week as signs a deal could be it process, market bets that a At the same time, the central was announced previously, the ad- Estimating about Rs500bn of ex- Yields will head down by 30-40 Bonds kicked higher on close rippled through mar- divorce deal can be achieved bank has pledged further easing if ministration aims to end the bor- tra bond supply. Steeper curves are basis points. news China wants further kets. were challenged once trad- needed after delivering fi ve back- rowings in January – two months a logical outcome of the two forces Shailendra Jhingan, chief ex- talks to hammer out details “The Fed has not made ers learned that Prime Min- to-back cuts to boost growth, help- before the fi scal year ends. at play: on the one hand, policy ecutive at ICICI Securities Primary of the trade deal touted by their propensity to ease all ister Boris Johnson‘s still ing steady the market after a two- This window can be used to rates are going to be lower for long- Dealership, expects the yield curve Donald Trump before Xi Jin- contingent on trade, they’ve lacked the detail required for month sell-off . squeeze in extra bond sales, trad- er, and on the other, there’s consid- to keep steepening. Remains over- ping will agree to sign it. been talking about global the bloc to sign off on it. “The possibility of extra borrow- ers say. erable fi scal and bond-supply risk weight on short-end bonds till the But even before that, they growth,” said Priya Misra, “In the cold light of day, it ings will be a factor that the mar- Finance Minister Nirmala Sith- especially when states are consid- time the growth continues to re- were rising amid doubts head of rates strategy at TD was a big move Thursday and ket will continue to watch,” said araman has said she would take a call ered as well. main weak and below potential. that the pledge for China Securities, in a Bloomberg Friday, but the most likely Shailendra Jhingan, chief executive on the year’s fi scal-defi cit goal closer Bullish for rates up to 5-7 years as As a result of the shortfall in rev- to more than double its an- Television interview. “So outcomes are still an exten- at ICICI Securities Primary Dealer- to the federal budget in February. expect some sort of bull steepening enues, the fi scal defi cit may end up nual purchases of American the fact that we took almost sion, an election and more ship Ltd. “But the monetary policy Following are comments from to continue, he said. in the 3.6-3.8% range. agricultural products would an entire cut for next year uncertainty,” said Kit Juckes, would continue to support yields, traders and fund managers: Dhaval Dalal, head of fi xed in- However, this does not mean be enough to shake concern out of the market in the last a London-based strategist primarily at the short end of the Suyash Choudhary, head of fi xed come at Edelweiss Asset Manage- large extra borrowings as the gov- over a global slowdown. week, that was surprising.” at Societe Generale SA. “The curve.” income at IDFC Asset Manage- ment, said constructive on liquid, ernment can cut back on buybacks Adding to the worries UK government bonds led right trade was to use the The government plans to sell ment, said scope for some expendi- high-quality and long-maturity and increase T-bill issuance to was a report showing Chi- Monday’s rally, with 10-year sterling surge to book a holi- Rs2.68tn ($38bn) of debt in the six ture cut exists but still looking at bonds. meet some of the shortfall. na’s exports and imports yields falling as much as 10 day somewhere drier, but I’ll months that began October 1.While about 40bps of slippage on the fi s- The hunt for yield is powerful Expect 25-40 basis points of fur- shrank more than expected basis points to 0.61%. Those watch the pound drift back the size is unchanged from what cal defi cit target. as investors look for opportunities ther rate cuts in the year. in September – and the In- across Europe followed down instead.” Gulf Times 6 Tuesday, October 15, 2019 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,849.72 +33.13 Apple Inc 237.24 0.44 2,545,566 S&P 500 Index 2,970.27 +0.01 American Express Co 116.59 0.16 128,289 Nasdaq Composite Index 8,059.69 +2.65 Boeing Co/The 376.61 0.45 179,778 S&P/Tsx Composite Index 16,415.16 -7.52 Caterpillar Inc 127.79 -0.48 211,175 Mexico Bolsa Index 43,265.45 +50.86 Cisco Systems Inc 46.36 -0.43 1,333,797 Brazil Bovespa Stock Idx 104,111.10 +279.20 Chevron Corp 116.24 0.08 232,932 Ftse 100 Index 7,213.45 -33.63 Walt Disney Co/The 129.65 -0.28 244,342 Cac 40 Index 5,643.08 -22.40 Dow Inc 47.08 -0.11 193,409 Dax Index 12,486.56 -25.09 Goldman Sachs Group Inc 205.24 0.27 138,288 Ibex 35 Tr 9,246.50 -27.30 Home Depot Inc 234.77 0.05 121,342 Nikkei 225 21,798.87 +246.89 Intl Business Machines Corp 141.73 -0.72 131,721 Japan Topix 1,595.27 +13.85 Intel Corp 51.60 -0.94 1,254,506 Hang Seng Index 26,521.85 +213.41 Johnson & Johnson 130.93 -0.30 399,105 All Ordinaries Indx 6,757.86 +35.95 Jpmorgan Chase & Co 116.76 0.53 648,434 Nzx All Index 1,847.45 +17.00 Coca-Cola Co/The 53.37 0.13 522,262 Bse Sensex 30 Index 38,214.47 +87.39 Mcdonald’s Corp 208.92 -0.05 175,439 Nse S&P Cnx Nifty Index 11,341.15 +36.10 3M Co 160.95 1.80 150,390 Straits Times Index 3,124.45 +10.48 Merck & Co. Inc. 84.81 0.56 323,862 Karachi All Share Index 24,669.22 -125.37 Microsoft Corp 139.89 0.15 1,529,808 Jakarta Composite Index 6,126.88 +21.08 Nike Inc -Cl B 95.04 1.24 379,421 Pfizer Inc 36.28 0.47 644,106 Procter & Gamble Co/The 119.99 -0.91 400,909 Travelers Cos Inc/The 142.70 0.07 26,908 TOKYO Unitedhealth Group Inc 222.79 0.32 195,600 United Technologies Corp 136.12 -0.02 71,672 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 177.77 0.40 364,659 Nidec Corp 14,435.00 -0.65 587,100 Verizon Communications Inc 59.64 -0.48 395,392 Isuzu Motors Ltd 1,191.50 2.06 1,507,300 Walgreens Boots Alliance Inc 53.61 -0.70 249,117 Unicharm Corp 3,465.00 0.61 891,400 Walmart Inc 119.91 -0.27 258,685 Nomura Holdings Inc 481.70 2.95 20,664,400 Exxon Mobil Corp 68.96 -0.03 431,382 Daiichi Sankyo Co Ltd 6,518.00 0.34 1,575,900 Subaru Corp 2,982.50 1.79 2,334,700 Sumitomo Realty & Developmen 3,930.00 -0.38 1,462,700 FTSE 100 Ntt Docomo Inc 2,870.00 0.63 3,879,100 Sumitomo Metal Mining Co Ltd 3,403.00 1.92 1,176,200 Company Name Lt Price % Chg Volume Orix Corp 1,639.50 1.05 4,239,600 Asahi Group Holdings Ltd 5,480.00 0.55 1,412,300 Anglo American Plc 1,935.00 -2.50 3,754,112 Keyence Corp 64,190.00 -0.50 302,000 Associated British Foods Plc 2,187.00 0.28 593,078 Mizuho Financial Group Inc 162.10 0.87 88,218,600 Admiral Group Plc 2,038.00 -1.83 435,033 Sumitomo Mitsui Trust Holdin 3,741.00 1.16 1,081,300 Ashtead Group Plc 2,134.00 -1.89 1,312,055 Japan Tobacco Inc 2,369.50 0.55 2,819,200 Antofagasta Plc 866.80 -1.03 961,593 Sumitomo Electric Industries 1,385.00 2.44 2,224,100 Auto Trader Group Plc 522.60 -3.15 4,348,013 Daiwa Securities Group Inc 494.20 1.52 5,272,300 Aviva Plc 396.80 -2.07 10,180,010 Softbank Group Corp 4,156.00 -0.81 11,844,000 Pedestrians walk past the London Stock Exchange. The FTSE 100 was down 0.5% to 7,213.45 points yesterday. Astrazeneca Plc 6,979.00 0.91 2,535,512 Panasonic Corp 877.90 1.89 6,067,600 Bae Systems Plc 558.60 0.47 5,650,835 Fujitsu Ltd 8,828.00 0.42 912,700 Barclays Plc 157.60 -1.79 40,799,798 Central Japan Railway Co 22,645.00 0.58 304,300 British American Tobacco Plc 2,717.00 0.26 2,608,914 Nitori Holdings Co Ltd 16,015.00 -0.28 174,100 Barratt Developments Plc 649.60 -0.73 4,762,459 Ajinomoto Co Inc 2,000.00 0.40 1,240,200 Bhp Group Plc 1,675.00 -2.64 4,394,040 Daikin Industries Ltd 14,125.00 0.39 718,700 Berkeley Group Holdings/The 4,366.00 0.25 459,939 Mitsui Fudosan Co Ltd 2,663.50 0.76 2,707,000 British Land Co Plc 590.80 -0.03 3,922,541 Ono Pharmaceutical Co Ltd 1,900.00 0.98 818,500 Bunzl Plc 1,984.00 -2.02 635,334 Toray Industries Inc 823.10 1.20 4,931,500 Bp Plc 492.75 -0.16 31,187,886 Bridgestone Corp 4,204.00 1.52 1,727,100 Europe markets Burberry Group Plc 1,993.50 -0.52 796,558 Sony Corp 6,230.00 1.53 4,704,600 Bt Group Plc 197.26 0.13 17,782,598 Astellas Pharma Inc 1,586.00 2.49 7,731,600 Coca-Cola Hbc Ag-Di 2,525.00 -0.67 375,222 Hoya Corp 8,931.00 1.91 1,054,200 Carnival Plc 3,110.00 -0.29 593,478 Nippon Steel Corp 1,504.50 1.42 2,438,800 Centrica Plc 67.52 -1.80 14,554,232 Suzuki Motor Corp 4,549.00 3.62 4,063,700 Compass Group Plc 2,002.00 -0.25 1,792,706 Nippon Telegraph & Telephone 5,411.00 0.43 2,046,500 Croda International Plc 4,738.00 0.08 218,879 Jxtg Holdings Inc 494.80 1.92 12,042,000 Crh Plc 2,737.00 1.00 1,045,551 decline on Brexit Murata Manufacturing Co Ltd 5,778.00 1.73 4,528,000 Dcc Plc 6,842.00 -0.84 86,490 Kansai Electric Power Co Inc 1,233.50 0.08 2,824,900 Diageo Plc 3,230.50 0.64 2,903,155 Denso Corp 4,700.00 1.64 1,376,800 Direct Line Insurance Group 284.00 -2.07 3,438,741 Sompo Holdings Inc 4,155.00 -0.65 1,569,700 Evraz Plc 417.70 -3.87 2,151,614 Daiwa House Industry Co Ltd 3,523.00 0.66 1,671,800 Experian Plc 2,455.00 -1.13 2,245,865 Dai-Ichi Life Holdings Inc 1,665.00 2.43 5,199,500 Easyjet Plc 1,210.00 0.83 1,767,718 Mazda Motor Corp 966.10 2.92 4,870,200 Ferguson Plc 6,428.00 0.44 361,947 Komatsu Ltd 2,427.50 1.80 4,696,400 deal doubts Fresnillo Plc 634.40 0.57 1,717,959 West Japan Railway Co 9,152.00 0.00 355,300 Glencore Plc 230.85 -2.80 30,501,104 Kao Corp 8,267.00 -1.55 1,733,300 Glaxosmithkline Plc 1,684.20 0.55 7,337,222 being felt,” noted Fiona Cincotta, sen- Meanwhile, the British pound slid Mitsui & Co Ltd 1,761.00 1.32 4,242,800 AFP Gvc Holdings Plc 834.60 -1.07 5,825,099 ior market analyst at City Index trading against the euro and dollar yesterday, Daito Trust Construct Co Ltd 13,600.00 0.85 320,400 London Hikma Pharmaceuticals Plc 2,023.00 0.05 253,440 Otsuka Holdings Co Ltd 4,214.00 0.36 1,575,900 group. the start of a pivotal week for Britain Hargreaves Lansdown Plc 1,790.00 -3.37 785,813 Oriental Land Co Ltd 16,275.00 -2.02 1,309,900 She added: “The pound has dropped and the european Union to strike a Halma Plc 1,897.00 0.42 985,485 Sekisui House Ltd 2,203.50 0.87 2,526,600 he British pound fell against the like a stone overnight after Brexit ne- Brexit deal. Hsbc Holdings Plc 607.30 -0.02 20,910,096 Secom Co Ltd 9,735.00 0.62 728,000 Hiscox Ltd 1,566.00 -2.37 506,570 euro and dollar yesterday, the gotiations didn’t lead to any signifi cant Fiona Cincotta, senior market ana- Tokio Marine Holdings Inc 5,560.00 0.20 1,809,200 Intl Consolidated Airline-Di 494.40 -0.90 5,998,003 start of a pivotal week for Brit- progress over the weekend.” lyst at City Index trading group said: Aeon Co Ltd 2,172.50 2.57 5,943,700 T Intercontinental Hotels Grou 4,711.50 -1.06 314,210 ain and the European Union to strike a Sterling rallied late last week after “The pound has dropped like a stone Asahi Kasei Corp 1,144.50 1.73 6,407,900 3I Group Plc 1,071.00 -1.97 1,018,118 Brexit deal. British Prime Minister Boris Johnson overnight after Brexit negotiations Kirin Holdings Co Ltd 2,282.00 1.02 1,493,100 Imperial Brands Plc 1,841.00 -0.67 1,405,631 Marubeni Corp 734.50 2.41 5,816,600 European stock markets also re- and his Irish counterpart Leo Varadkar didn’t lead to any signifi cant progress Informa Plc 780.40 -0.96 1,640,824 Mitsubishi Ufj Financial Gro 535.30 1.06 37,707,900 treated as weak Chinese data off set a said after meeting that they could see over the weekend.” Intertek Group Plc 5,188.00 -1.18 328,973 Mitsubishi Chemical Holdings 812.50 4.50 11,830,100 partial trade deal between China and a “pathway” to reaching a Brexit deal. Sterling rallied late last week after Itv Plc 128.25 -0.81 11,895,145 Fanuc Corp 19,465.00 1.38 808,400 Johnson Matthey Plc 2,982.00 0.03 524,617 the United States, analysts said. But European offi cials on Sunday British Prime Minister Boris Johnson Fast Retailing Co Ltd 63,270.00 2.63 1,143,200 Kingfisher Plc 214.10 1.86 9,629,436 London’s FTSE 100 was down 0.5% said obstacles remained on how to and his Irish counterpart Leo Varadkar Ms&Ad Insurance Group Holdin 3,350.00 0.30 1,498,100 Land Securities Group Plc 891.80 -0.42 2,079,129 to 7,213.45 points, Paris’s CAC 40 lost manage trade and customs between said after meeting that they could see Kubota Corp 1,608.50 2.98 3,475,200 Legal & General Group Plc 259.60 -0.46 18,035,955 a “pathway” to reaching a Brexit deal. Seven & I Holdings Co Ltd 4,367.00 4.90 6,550,300 0.4% to 5,643.08 and Frankfurt’s DAX EU-member Ireland and Northern Lloyds Banking Group Plc 57.79 -2.27 195,179,331 Inpex Corp 950.50 3.26 6,166,400 30 slipped 0.2% to 12,486.56 points at Ireland, which is a part of the United But European offi cials on Sunday London Stock Exchange Group 7,298.00 -0.03 280,049 Resona Holdings Inc 448.80 1.29 9,574,600 the close yesterday. Kingdom. said obstacles remained on how to Micro Focus International 1,054.60 -2.37 947,289 Fujifilm Holdings Corp 4,661.00 0.54 1,193,900 manage trade and customs between Marks & Spencer Group Plc 189.05 1.72 10,629,490 Asian investors had earlier yester- Time is running out to sign off on Yamato Holdings Co Ltd 1,700.50 1.07 2,788,100 Mondi Plc 1,600.00 0.28 1,558,262 day saluted the trade deal, sending re- any deal at an October 17-18 European EU-member Ireland and Northern Chubu Electric Power Co Inc 1,621.00 0.09 1,924,800 Melrose Industries Plc 202.00 0.45 14,794,949 gional equity markets rallying, though Union summit, the last such meeting Ireland, which is a part of the United Mitsubishi Estate Co Ltd 2,066.50 -0.22 3,010,600 Wm Morrison Supermarkets 203.70 0.20 10,449,635 observers were sceptical about the before Britain’s scheduled departure Kingdom. Mitsubishi Heavy Industries 4,309.00 2.45 1,389,300 National Grid Plc 883.80 -0.87 8,345,668 Sysmex Corp 6,990.00 -0.14 359,900 overall signifi cance of the agreement. from the European Union at the end of Time is running out to sign off on Nmc Health Plc 2,605.00 -3.80 421,344 Shiseido Co Ltd 8,590.00 -0.10 1,366,600 Offi cial data meanwhile showed the month. any deal at an October 17-18 European Next Plc 6,584.00 1.95 617,491 Shionogi & Co Ltd 5,884.00 -0.08 945,700 Chinese imports and exports fell more Sterling “is in the red as dealers are Union summit, the last such meeting Ocado Group Plc 1,302.50 -1.48 1,222,857 Terumo Corp 3,362.00 0.27 1,828,600 Paddy Power Betfair Plc 0.00 0.00 - than forecast in September, as US tar- less hopeful that a deal will be struck before Britain’s scheduled departure Tokyo Gas Co Ltd 2,750.50 0.04 605,400 Prudential Plc 1,467.50 -2.72 6,801,452 iff s and cooling demand at home and between the UK and the EU,” said David from the European Union at the end of Tokyo Electron Ltd 21,505.00 0.61 1,223,800 Persimmon Plc 2,288.00 0.04 1,777,304 abroad hit trade in the world’s second Madden, analyst at CMC Markets UK. the month. East Japan Railway Co 10,460.00 0.67 890,700 Pearson Plc 691.00 -0.37 2,516,261 largest economy. “Sterling enjoyed a massive rally at Sterling “has given back some of last Itochu Corp 2,236.50 2.19 3,909,700 Reckitt Benckiser Group Plc 6,093.00 -0.03 548,757 Ana Holdings Inc 3,683.00 0.46 741,800 The fi gures weighed heavily on the the back end of last week due to opti- week’s major gains as traders are less Royal Bank Of Scotland Group 215.20 -1.42 22,453,867 Mitsubishi Electric Corp 1,442.50 1.02 3,578,700 oil market, with crude futures slump- mism surrounding the Brexit talks, but hopeful about the prospect of a Brexit Royal Dutch Shell Plc-A Shs 2,289.50 -0.04 6,025,306 Sumitomo Mitsui Financial Gr 3,651.00 1.00 3,834,200 ing around 2%. They had surged Fri- now the Northern Ireland-customs deal being reached”, said David Mad- Royal Dutch Shell Plc-B Shs 2,277.50 -0.20 4,100,200 Relx Plc 1,816.50 -1.09 2,793,526 day, fuelled by a blast on an Iranian union roadblock has popped up again,” den, analyst at CMC markets UK. Rio Tinto Plc 4,115.00 -2.24 2,464,489 tanker and news of the US-China deal. he said, adding the possibility of Brit- “The mood is a little less hopeful Rightmove Plc 551.40 -1.01 1,772,339 SENSEX “Although the US and China made ain requesting an extension has helped that some sort of arrangement will be Rolls-Royce Holdings Plc 752.40 1.24 24,617,404 some progress late last week and Presi- avoid further losses. struck. On Friday, UK banks, like RBS, Rsa Insurance Group Plc 516.40 -1.49 1,751,336 Company Name Lt Price % Chg Volume dent Trump suspended tariff s due to Wall Street was mixed in late morn- Lloyds plus Barclays all made sizeable Rentokil Initial Plc 451.70 -0.66 2,969,438 Adani Ports And Special Econ 407.45 -0.39 3,313,476 come in in mid-October, the damage ing trading, with trading volumes low gains, but... they are all in the red” in Sainsbury (J) Plc 213.80 -0.37 5,236,130 Asian Paints Ltd 1,798.70 0.47 881,724 midday deals. Schroders Plc 2,930.00 -1.31 343,441 from the existing trade restrictions is on the Columbus Day holiday. Axis Bank Ltd 683.50 1.61 11,099,352 Sage Group Plc/The 695.60 0.38 2,713,821 Bajaj Finance Ltd 3,883.30 -2.26 1,768,352 Segro Plc 809.00 -1.61 1,829,185 Bharti Airtel Ltd 393.55 2.78 10,729,180 Smurfit Kappa Group Plc 2,488.00 -1.66 193,357 Bharti Infratel Ltd 259.45 0.50 2,030,766 HONG KONG HONG KONG Standard Life Aberdeen Plc 280.40 -1.96 8,352,923 Bajaj Auto Ltd 2,958.05 2.04 367,105 Ds Smith Plc 346.60 0.46 2,631,805 Bajaj Finserv Ltd 8,082.25 -1.07 190,372 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,587.00 0.60 909,896 Bharat Petroleum Corp Ltd 485.95 -0.42 11,556,126 Scottish Mortgage Inv Tr Plc 495.40 -0.92 1,747,133 Ck Hutchison Holdings Ltd 2.00 Cipla Ltd 440.90 -0.10 5,861,895 71.55 9,838,579 Hong Kong & China Gas 15.28 -0.52 16,339,763 Smith & Nephew Plc 1,860.50 0.03 1,092,997 Hang Lung Properties Ltd 0.33 Coal India Ltd 190.10 0.56 6,340,044 18.10 2,388,010 Bank Of Communications Co-H 5.25 1.35 27,474,329 Spirax-Sarco Engineering Plc 7,620.00 0.73 149,320 Ck Infrastructure Holdings L 2.51 Dr. Reddy’s Laboratories 2,651.90 0.02 301,437 55.20 3,874,142 China Petroleum & Chemical-H 4.70 0.21 76,763,423 Sse Plc 1,281.50 -2.10 4,548,946 Hengan Intl Group Co Ltd -2.63 Eicher Motors Ltd 18,327.95 0.70 77,467 50.00 3,187,551 Hong Kong Exchanges & Clear 237.20 0.00 5,249,208 Standard Chartered Plc 654.80 -0.09 3,855,591 China Shenhua Energy Co-H 0.63 Gail India Ltd 125.85 0.72 12,739,190 15.92 20,507,707 Bank Of China Ltd-H 3.16 0.64 248,843,964 St James’s Place Plc 993.80 -1.07 1,788,060 Cspc Pharmaceutical Group Lt 4.24 Grasim Industries Ltd 698.65 1.05 1,646,833 16.70 61,602,319 Hsbc Holdings Plc 59.95 1.70 37,686,670 Severn Trent Plc 2,180.00 -1.58 784,293 Hang Seng Bank Ltd 0.49 Hcl Technologies Ltd 1,086.80 0.68 1,390,602 164.30 1,966,618 Power Assets Holdings Ltd 54.25 0.46 3,351,165 Tesco Plc 239.10 -1.28 14,051,185 China Resources Land Ltd -1.12 Housing Development Finance 2,014.75 0.23 2,903,479 35.25 10,777,114 Mtr Corp 43.50 -0.80 4,273,706 Tui Ag-Di 1,002.00 -0.30 1,845,724 Ck Asset Holdings Ltd -0.09 Hdfc Bank Limited 1,204.40 0.47 6,133,901 52.70 4,808,910 China Overseas Land & Invest 26.00 0.39 17,427,009 Taylor Wimpey Plc 162.55 -0.73 10,724,372 Sino Biopharmaceutical 3.14 Hero Motocorp Ltd 2,609.20 0.44 708,591 11.16 44,918,574 Tencent Holdings Ltd 328.20 1.05 24,011,589 Unilever Plc 4,645.00 -0.04 1,604,335 Henderson Land Development -0.27 Hindalco Industries Ltd 188.70 0.80 5,222,539 37.25 4,052,210 China Unicom Hong Kong Ltd 8.64 -0.46 27,389,490 United Utilities Group Plc 822.20 -2.56 2,220,170 Aia Group Ltd 0.75 Hindustan Petroleum Corp 310.50 0.66 5,465,692 73.80 28,730,607 Link Reit 82.70 -0.24 7,196,895 Vodafone Group Plc 161.00 -0.19 91,637,950 Ind & Comm Bk Of China-H 1.12 Hindustan Unilever Ltd 2,014.25 0.48 2,135,148 5.43 224,741,370 Sino Land Co 11.98 0.17 2,639,414 John Wood Group Plc 344.80 -0.78 3,311,565 Want Want China Holdings Ltd 1.12 Icici Bank Ltd 428.85 0.07 17,211,042 6.34 10,256,000 China Resources Power Holdin 9.50 -1.66 8,453,657 Wpp Plc 956.60 2.75 3,693,465 Sun Hung Kai Properties 0.18 Indiabulls Housing Finance L 197.80 -5.76 42,427,671 112.40 3,321,582 Petrochina Co Ltd-H 4.13 0.00 68,035,293 Whitbread Plc 4,170.00 -0.60 375,791 New World Development 0.00 Indusind Bank Ltd 1,250.60 2.24 4,786,662 10.36 9,952,819 Cnooc Ltd 11.96 -0.66 40,724,030 Geely Automobile Holdings Lt -1.59 Infosys Ltd 786.10 -3.52 15,150,858 13.66 35,170,554 China Construction Bank-H 6.22 1.47 649,977,688 Swire Pacific Ltd - Cl A 0.90 Indian Oil Corp Ltd 144.75 0.94 11,156,890 72.65 1,372,599 China Mobile Ltd 66.40 -0.30 19,535,867 Sands China Ltd 2.96 Itc Ltd 244.10 0.06 14,713,799 36.50 15,394,424 TOKYO Wharf Real Estate Investment -0.81 Jsw Steel Ltd 221.45 1.93 7,515,730 43.00 3,681,850 Clp Holdings Ltd -0.12 Kotak Mahindra Bank Ltd 1,585.50 -0.14 2,010,190 80.80 4,093,381 Country Garden Holdings Co 0.38 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,423.95 -0.26 2,220,364 10.52 22,811,538 Aac Technologies Holdings In -0.76 Mahindra & Mahindra Ltd 568.65 1.53 2,630,640 45.60 9,281,000 GCC INDICES Japan Airlines Co Ltd 3,329.00 1.87 1,375,000 Shenzhou International Group -0.38 Maruti Suzuki India Ltd 6,821.10 1.82 963,217 106.10 2,118,095 Indices Lt Price Change Recruit Holdings Co Ltd 3,507.00 1.01 7,000,100 Ping An Insurance Group Co-H 1.07 Ntpc Ltd 117.75 0.90 12,146,203 94.60 29,417,476 Softbank Corp 1,518.50 0.26 11,835,500 China Mengniu Dairy Co 31.30 0.64 12,197,228 Oil & Natural Gas Corp Ltd 135.25 4.84 19,460,416 Doha Securities Market 10,404.12 +119.51 Kyocera Corp 6,737.00 0.70 1,217,400 Sunny Optical Tech -2.54 Power Grid Corp Of India Ltd 198.40 -1.29 6,278,901 115.00 8,021,280 Nissan Motor Co Ltd 668.70 1.86 12,160,800 Boc Hong Kong Holdings Ltd 26.15 1.16 13,154,230 Reliance Industries Ltd 1,358.00 0.40 6,123,412 Kuwait Stocks Exchange 4,725.03 -15.49 T&D Holdings Inc 1,165.00 3.14 2,602,000 China Life Insurance Co-H 0.86 State Bank Of India 255.45 0.35 28,265,136 18.68 34,351,501 Toyota Motor Corp 7,269.00 2.27 4,755,500 Citic Ltd 10.14 -0.59 5,293,000 Sun Pharmaceutical Indus 394.65 2.16 4,372,357 Oman Stock Market 4,013.92 +1.73 Kddi Corp 2,965.50 0.24 5,513,500 Galaxy Entertainment Group L 4.27 Tata Steel Ltd 344.85 1.73 16,723,963 51.25 16,813,964 Nitto Denko Corp 5,415.00 2.30 1,131,200 Wh Group Ltd 7.72 4.32 155,391,506 Hitachi Ltd 4,002.00 1.81 2,820,200 Tata Consultancy Svcs Ltd 2,021.00 1.72 3,510,704 Takeda Pharmaceutical Co Ltd 3,720.00 0.90 4,158,900 Tech Mahindra Ltd 720.75 -0.10 1,871,571 Jfe Holdings Inc 1,325.00 2.63 3,706,900 Titan Co Ltd 1,248.95 0.43 1,241,231 Sumitomo Corp 1,681.50 1.54 2,793,900 Tata Motors Ltd 127.85 5.40 68,048,611 Canon Inc 2,864.50 1.29 3,670,800 Upl Ltd 586.65 -0.54 3,373,152 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 5,436.00 2.64 1,065,700 Ultratech Cement Ltd 4,170.30 2.28 467,406 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 39,870.00 -1.07 1,556,000 Vedanta Ltd 147.80 0.51 12,919,085 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 11,700.00 1.30 1,237,000 Wipro Ltd 243.45 1.67 3,592,137 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,681.00 1.67 4,834,900 Yes Bank Ltd 40.10 1.26 223,727,101 this data.” Smc Corp 46,150.00 -0.67 310,400 Zee Entertainment Enterprise 242.90 0.16 9,279,242 Gulf Times 10 Tuesday, October 15, 2019 BUSINESS

Pakistan sets tax collection China exports, imports target over Rs1tn for in deeper contraction next three Reuters tember had marked a major escalation Beijing in the trade row, with Washington im- posing 15% tariff s on more than $125bn months in Chinese imports from September 1, slide in China’s exports picked up and Beijing hitting back with retaliatory pace in September while imports levies. Internews Acontracted for a fi fth straight Though President Trump had Islamabad month, pointing to further weakness in agreed not to proceed with a hike in the economy and underlining the need tariffs set for today, US Trade Rep- for more stimulus as the Sino-US trade resentative Robert Lighthizer said akistan’s Federal Board war drags on. Trump had not made a decision about of Revenue (FBR), after Analysts say it could take time for tariffs that were subject to go into ef- Pfacing a revenue short- Chinese exports to recover amid slow- fect in December. fall of over Rs100bn, has set ing global growth despite tentative Analysts are also sceptical that the the tax collection target for signs of a thaw in tense trade relations “mini deal” would mark a major break- the second quarter (October to between the world’s top two economies. through. “It is diffi cult to take that December) of the current fiscal On Friday, US President Donald much comfort from the latest signs of year 2019-20 at Rs1,295.9bn Trump outlined the fi rst phase of a deal progress given that we’ve had plenty of while the target for the current to end the trade war with China and apparent truces in recent months end month of October has been set suspended a threatened tariff hike set abruptly in a sudden further escalation at Rs376.1bn. for October 15. in trade tensions,” said analysts at Capi- According to official docu- But existing tariff s remain in place tal Economics. ments, the FBR in a bid to and offi cials on both sides said much Customs spokesman Li Kuiwen told achieve the tax collection tar- more work needed to be done. a news conference yesterday China’s get for October has set the tar- September exports fell 3.2% from a stable domestic economy had provided get of income tax collection in year earlier, the biggest fall since Febru- a strong cushion against external chal- direct taxes at Rs131.3bn while ary, customs data showed yesterday. lenges, but added that trade develop- the target of sales tax collec- Analysts had expected a 3% decline ment in the future was still complicated tion in indirect taxes has been in a Reuters poll after August’s 1% drop. and severe. Economists at UBS expect set at Rs149.5bn. “The headline fi gures suggest that further pressure on China’s job mar- The federal excise duty col- global demand softened last month, ket as the impact of the latest US tariff lection target has been set at adding to the pressure from the US tar- escalations fi lter through to struggling Rs25.1bn while customs duties iff s that went into eff ect in September,” manufacturers. at Rs70.1bn. said analysts at Capital Economics. “We think the time to watch for po- To achieve the three-month Economists also attributed the ex- tentially signifi cant job losses is from (October to December) tax col- port slowdown to a fading in the so- December this year until March 2020, lection target of Rs1,295.9bn, called “front-loading” eff ect. assuming all announced tariff hikes are in direct tax collection the in- Some Chinese fi rms had rushed to implemented. come tax collection target has ship goods to the United States ahead Job losses may be more concentrated been set at Rs491.8bn while of the September deadline, supporting in a few sectors that have higher expo- the sales tax collection target overall July and August export readings. Workers make Orolay jackets at the company’s factory complex in Jiaxing, Zhejiang province. China’s exports in September fell sure to foreign fi nal demand, such as in indirect taxes has been set “We expect shrinking exports will 3.2% from a year earlier, the biggest fall since February, customs data showed yesterday. textiles, computers and electronics and at Rs499.8bn. likely be one of the biggest drag on electrical equipment, among others.” The federal excise duty China’s economic growth in the com- including iron ore and copper, surged imports in the raw material processing $39.65bn last month, compared with a Analysts believe China’s economic collection has been kept at ing months, as the tariff impact will be in September fuelled by fi rm demand at sector and softening global commod- $34.84bn surplus in August. growth cooled further in the third quar- Rs84.4bn and the customs du- further in place, along with the pay- steel mills. ity prices possibly playing a role in de- Analysts had forecast $33.3bn. ter from a near 30-year low of 6.2% ties collection at Rs219.8bn. back eff ects,” said Ting Lu, chief China But analysts at ANZ noted volumes pressing overall imports. Its trade surplus with the United hit in April-June, and is threatening It must be made clear that economist at Nomura. were buoyed by recovery from recent Despite more than a year of growth States stood at $25.88bn in September, to breach the lower end of the govern- during the first quarter of the Total September imports fell 8.5% disruptions in Australia and Brazil, and boosting measures, China’s domestic narrowing from August’s $26.96bn. ment’s full-year target of 6.0-6.5%. current financial year from after August’s 5.6% decline, the low- may also have been lifted by restocking demand has remained stubbornly weak China’s exports to the United States A growing number of economists are July to September 2019, the in- est since May, and were expected to fall ahead of China’s 70th anniversary cel- as economic uncertainty weighs on fell 10.7% from a year earlier in dollar forecasting growth could fall into the terim shortfall of the FBR in- 5.2%. ebrations, suggesting overall demand business and consumer confi dence and terms in January-September, while US upper 5% range in 2020 due to lingering creased to over Rs139bn while Some sectors held a silver lining. remains weak. discourages fresh investment. imports dropped 26.4% during that trade tensions and a combination of cy- the last month of September China’s industrial metals imports, Nomura’s Lu pointed to subdued China reported a trade surplus of period, the customs data showed. Sep- clical and structural factors. saw an interim shortfall of more than Rs40bn. In the first quarter of the current fiscal year, Rs30bn tax refunds were paid to the taxpayers. Sources said owing to the International Monetary WeWork to weigh bailout that hands control to SoftBank Fund’s conditions not being met by the FBR, difficulties Bloomberg turning the American giant into a cau- be taking on a troubled enterprise at a might increase because the tax New York tionary tale of private market exuberance time it’s struggling to convince the market collection targets set with the and costing the company’s top executive about its longer-term investment vision. IMF for the first quarter of the his job. It’s also busy wooing potential investors current financial year were not eWork is considering a bailout The fast-growing, money-losing star- for a successor to its record-breaking Vi- achieved and refunds worth that will hand control of the tup had been counting on a stock listing – sion Fund. Rs75bn to the taxpayers were Wco-working giant to SoftBank and a $6bn loan contingent on a success- Son is going through a rocky stretch not released. Group Corp, according to a person familiar ful IPO – to meet its cash needs. after repositioning his company from a Sources said in case of ex- with the matter, one of two main options The Wall Street Journal fi rst reported telecommunications operator into an in- emption not being given by the to rescue the once high-fl ying startup. that SoftBank may be discussing a deal to vestment conglomerate, with stakes in IMF in the first economic ex- The Japanese investment powerhouse gain control of WeWork. Representatives scores of startups around the world. He amination, more steps would controlled by billionaire Masayoshi Son for the Japanese company weren’t imme- built a personal fortune of about $14bn be taken to collect revenues is convinced it can turn around the cash- diately available for comment yesterday, a with spectacularly successful bets on otherwise deduction would strapped American company with the national holiday. companies such as Alibaba Group Holding have to be made in the billions right fi nancial controls in place, the per- SoftBank is already WeWork’s biggest Ltd. But SoftBank’s shares are down about of rupees allocated for devel- son said, asking not to be identifi ed talking shareholder but the proposed deal would 30% from their peak this year as investors, opment expenditures. about internal deliberations. WeWork’s shore up its control of the startup, the per- unnerved by WeWork and Uber Technolo- The FBR collected interim board and backers however are also weigh- son said, declining to elaborate on when gies Inc’s disappointing debut, grow skit- taxes amounting to Rs963bn ing another option: JPMorgan Chase & Co a decision on the competing off ers might tish about startup valuations. In an inter- during the current financial is leading discussions about a $5bn debt be reached. The Japanese company is in view with the Nikkei Business magazine, year’s first quarter (July to package, Bloomberg has reported. advanced talks to acquire more shares at Son said he is unhappy with how far short September), which was though Either rescue package would ease a a signifi cantly lower valuation than the his accomplishments to date have fallen of 15% more than the tax collect- cash crunch that could leave the offi ce- $47bn WeWork sported in January, two his goals. ed during the same period of sharing company short of funds as soon people familiar with those discussions WeWork and Uber may be losing money previous financial year 2018- as next month. The offi ce-sharing star- said last week. The New York Times has now, but they will be substantially profi t- 19, but collection of Rs108bn Employees sit at the WeWork Ocean Gate Minatomirai co-working off ice space in tup had been headed towards one of the reported that members of the board would able in 10 years’ time, Son said in that in- was quite less for the first Yokohama. SoftBank, the Japanese investment powerhouse controlled by year’s most hotly anticipated IPOs before meet later yesterday to decide on which terview. But at a private retreat for port- quarter against the target of billionaire Masayoshi Son, is convinced it can turn around the cash-strapped prospective investors balked at certain fi - bailout to select. If the board opts for the folio companies late last month, he had a Rs1,071bn. American company with the right financial controls in place, a source said. nancial metrics and fl awed governance, SoftBank deal, the Japanese company will diff erent message: get profi table soon.

Singapore eases monetary policy, avoids recession French energy giant Total to buy

AFP which its currency is allowed to a pillar of the trade-dependent Singapore move, eff ectively allowing for a economy, shrank 3.5%, following 37% stake in India’s Adani Gas weaker dollar, as had been expected. a 3.3% contraction the previous Instead of using interest rates, quarter. Singapore eased monetary policy Singapore manages monetary policy Capital Economics forecast the Reuters 37.4% stake in Adani Gas, while public shareholders will for the first time in more than three by letting the local dollar rise or fall economy will likely grow by just 0.5% Bengaluru own the remaining 25.2%. Shares of Adani Gas soared years yesterday as the US-China against a currency basket of its main this year. 18.4% yesterday after the deal was announced, while trade war bites, while the export- trading partners. The city-state last slipped into the broader NSE index rose 0.3% in early trade. reliant economy narrowly avoided “In the last six months, the drag recession in the aftermath of the French energy giant Total SA will buy a 37.4% stake in “The natural gas market in India will have strong growth recession in the third quarter. on GDP (gross domestic product) global financial crisis in 2008. Indian gas distribution company Adani Gas, as it looks and is an attractive outlet for the world’s second-largest The financial hub’s central bank growth exerted by the manufacturing Song Seng Wun, a regional economist to capitalise on the South Asian country’s push for LNG player that Total has become,” Total chairman and joins others around the world, from sector has intensified, reflecting with CIMB Private Banking, said cleaner sources of energy. CEO Patrick Pouyanné said in a statement. Europe to the US, in loosening policy the ongoing downturn in the global with the economy having narrowly Total is the third foreign oil major to enter India’s “Adani will bring its knowledge of the local market and as fears mount of a global economic electronics cycle as well as the avoided recession, MAS must have gas sector after BP Plc and Shell, and it comes at a its expertise in the infrastructure and energy sectors. slowdown. pullback in investment spending, felt that a slight tweaking of policy time when India is spending heavily to cut its carbon This partnership with Adani is cornerstone to our The city-state has traditionally been caused in part by the uncertainty in was enough. emissions. development strategy in this country,” added Pouyanné. the first among Asia’s export-driven US-China relations,” MAS said. The central bank will be hoping that Indian Prime Minister Narendra Modi has set a target Total and Adani plan to establish a joint venture to economies to be aff ected during Preliminary GDP data released at “maybe growth in 2020 might be to more than double the share of gas in the country’s market LNG in India and Bangladesh. a downturn, making it a closely the same time showed Singapore’s better than 2019”, Song told AFP. energy basket to 15% by 2030, while Total has Speaking later at a conference in New Delhi, Pouyanné watched barometer of demand for economy narrowly avoided tipping “Perhaps the US-China phase-one embarked on a series of deals this year to expand its said the deal will take 6 months to complete, adding goods and services for the rest of the into a technical recession, defined deal adds to a little bit of hope for liquefied natural gas (LNG) portfolio. that the energy major was looking to capture a region. as two consecutive quarters of 2020,” he said. Total will buy up to 25.2% in Adani Gas from public substantial part of the Indian gas market with Adani. And it has been hard hit in recent contraction. President Donald Trump announced shareholders at Rs149.63 per share, representing an Total was also in discussions with partners including months, with growth rates and It expanded 0.6% in the three months Friday that US and Chinese 8.7% premium to the stock’s last close and valuing the Adani for partnership in renewable energy, he said at exports plummeting, as US-China to September on a quarterly basis, negotiators had reached a partial stake at Rs41.47bn ($585mn). the India Energy Forum by CERAWeek. tensions upend the global trading bouncing back from a shock 2.7% trade deal, bolstering hopes that It will also buy another 12.2% stake from the Adani Last month, Total completed the acquisition of system. The Monetary Authority of second-quarter contraction. the world’s two biggest economies family at an undisclosed price, according to stock Anadarko’s 26.5% stake in the Mozambique LNG project Singapore (MAS) said it will “reduce The economy grew 0.1% on a yearly may be on the path to resolving their exchange filings. for $3.9bn, while in June it took over Toshiba’s US LNG slightly” the slope of the band at basis. The manufacturing sector, long-running row. After the deal, the Adani family and Total will each hold business. Gulf Times Tuesday, October 15, 2019 11 BUSINESS

Lamborghini review marks step in VW’s march to $220bn market value

Bloomberg as part of a broad strategy review ahead to share the costs of developing commer- A higher valuation would let Diess use 1.2% in Frankfurt during early trading, after “future is electric,” hasn’t said how and Frankfurt of an expected industry shakeout. His cial vans, e-cars and autonomous driving. VW’s stock as currency for partnerships Chinese auto deliveries fell in September when he plans to restore operating profit goal is to reach a market value of €200bn The “Sian” is Lamborghini’s first hybrid. and consolidation opportunities. Despite for the 15th month in 16 to extend an margins to the targeted 8% to 10% margin ($220bn), the people said. “We shouldn’t spread ourselves too thin,” robust operating results, VW shares are unprecedented slump. corridor. He’s scheduled to give investors a Volkswagen AG’s plan to review options The company has started preparations Diess said in an interview published over down by more than one-third from highs Success with its Urus sport utility vehicles full download on Nov. 14 in London and in for its Lamborghini supercar division to fold Lamborghini into a separate legal the weekend in Germany’s Sueddeutsche set before the 2015 diesel-cheating crisis. has probably boosted Lamborghini’s valu- New York the day after. marks a further step in chief executive entity and the process might conclude Zeitung newspaper. “That might be hard VW’s current market value is about €81bn. ation to about $11bn, analysts at Bloomb- The industry’s transformation has already off icer Herbert Diess’s campaign to trans- toward the end of next year, the people in some cases, but it’s the only viable Progress in restructuring has been erg Intelligence estimated in August. started to claim casualties. China’s Nio form the world’s biggest automaker and said, asking not to be identified because way.” hampered by convoluted governance at Herbert Diess Inc is staring into the abyss, Dyson Ltd more than double its market value. the deliberations are confidential. SZ also reported on a possible sale or IPO Volkswagen. Unions, politicians and the Top management decided earlier this mothballed its electric-car project and The German manufacturer is weighing a Restructuring the super-luxury brand of Lamborghini, without saying where powerful Porsche-Piech ownership clan year against pursuing the sale of units market leader Tesla Inc is struggling to potential sale or stock listing for the Italian would fit with Diess’s goal to channel it got the information, as VW drafts a each have a say in big decisions. like Bugatti for now, partly because it turn profitable even as it made the big- brand, according to people familiar with resources more eff iciently and avoid revamp of its 12 automotive brands. An asset review that began in 2016 has so was unclear if sub-scale assets could be gest strides in the still nascent field. The the matter, as Diess channels resources duplicated eff orts. VW signalled on Sun- Such a move would allow VW to focus on far led to an aborted attempt to sell the divested without paying cash on top, status of Apple Inc’s electric-car ambitions to the main VW, Porsche and Audi units. day that any decision is likely a ways off , VW’s brands that are global household Ducati motorcycle brand, and the ill-timed according to one person. Still, smaller remains unclear. No decision has been made and an earlier saying it has no plans for a Lamborghini names, and allocate funds to the highest- Traton IPO that was almost derailed by nameplates might face reshuff ling going Read more: In a Post-WeWorkIPO World, plan to move Lamborghini from under sale or IPO. returning brands, potentially at the ex- internal wrangling. Diess mapped out a forward. New Age Auto Startups Now at Risk the Audi umbrella to Porsche remains an Diess, 60, has been pushing an overhaul pense of nameplates like the mass-market plan last year to shift Lamborghini away Other automakers face similar pressures “The truth is, barriers to entry in autos option, they said. of Volkswagen since he became CEO 18 Skoda and Seat. Analysts have urged VW from its home within Audi and tie it to to VW. Investors are pessimistic traditional remain high. Making cars is hard,” Sanford Structural change is always a challenge months ago — investing billions in electri- to consider deep changes including an sister brand Porsche. players will be able to manage such an C. Bernstein analyst Max Warburton said at Volkswagen because of the multiple fication, selling a stake in truck maker Tra- initial public off ering of Porsche to unlock The potential payoff for Volkswagen is expensive technology shift amid trade in a note. “The move to electric vehicles power bases that play a role in major ton SE, and putting industrial-transmission value. The sports-car unit is VW group’s massive. Ferrari NV, once part of Fiat wars and a global demand slump. will be expensive, but will probably be led decisions. Diess has been sounding out and diesel-engine units up for sale. He’s most profitable division while Audi con- Chrysler Automobiles NV, is now valued Daimler AG chief executive off icer Ola by traditional manufacturers. There will be support for ideas to reshape Volkswagen also forged an alliance with Ford Motor Co tributes the biggest share of earnings. at about $30bn. VW declined as much as Kallenius, who has acknowledged that the less disruption than feared.”

Sophos becomes US gets OK to hit EU with latest UK tech target in $3.8bn $7.5bn Airbus sanction deal

Bloomberg tained by Bloomberg. Malmstrom said Bloomberg Geneva last month that the EU had reached London out to the US with a “detailed pro- posal,” but that the US wasn’t willing he World Trade Organisation to negotiate. Private equity firm Thoma Bravo yesterday formally authorised The EU said that it would be “short- agreed to buy Sophos Group Tthe US to impose tariff s on about sighted” for the US to impose retaliato- Plc for $3.8bn, taking the British $7.5bn worth of European exports an- ry tariff s on European goods and urged cybersecurity firm private in the nually in retaliation for illegal govern- the US to fi nd a “fair and balanced so- biggest takeover of a UK technol- ment aid to Airbus SE. lution” to the dispute, according to a ogy firm this year. Members approved this month’s statement delivered by Paolo Garzotti, Thoma Bravo will pay $7.40 a arbitration award — the largest in the the EU’s deputy head of delegation to share in cash, or 583 pence per trade organisation’s history — at a spe- the WTO. share, representing a premium of cial meeting of the dispute settlement “Both the EU and the US have been 37.1% to its last closing price, the body at the WTO’s headquarters in Ge- found at fault by the WTO dispute set- buyout firm said in a statement neva. The development marks the fi nal tlement system,” Garzotti said. “In yesterday. Shares jumped as much procedural hurdle before the US can re- the parallel Boeing case, the EU will in as 38% in London on Monday and taliate against European goods, which some months equally be granted right traded at 576 pence at 10:34am. it plans to do on October 18. to impose additional countermeasures. The deal would be among the The EU made a last-ditch appeal to The mutual imposition of counter- largest take-privates in the UK the US over the weekend to thwart the measures, however, would only harm technology industry in recent tariff s, seeking a negotiated settlement global trade and the broader aviation years and marks the latest firm that would avoid the economic harm a industry.” snapped up by a foreign buyer. tit-for-tat escalation would cause both The EU has already published a Both semiconductor designer parties. European Trade Commissioner preliminary list of US goods — from ARM and Imagination Technolo- Cecilia Malmstrom told her US coun- ketchup to video-game consoles — it gies — once flagship UK-listed terpart, Robert Lighthizer, that his tar- will target in a $12bn plan for retaliato- companies — have been bought iff plan would compel the EU to apply ry levies related to the Boeing case. The by foreign investors. countermeasures in a parallel lawsuit WTO will issue an arbitration award A weak UK pound has also fed over aid the US provided to Boeing Co. next year. into foreign buyers targeting local “I strongly believe that imposing ad- The offi ce of the US Trade Repre- companies. Cross-border deals ditional tariff s in the two aircraft cases sentative previously said it would im- for UK companies jumped 66% in is not a solution,” Malmstrom said in an pose a 10% tariff on large civil aircraft the third quarter compared to the October 11 letter to Lighthizer seen by Cecilia Malmstrom, EU trade commissioner, gestures while speaking during a panel discussion at the 75th anniversary of from France, Germany, Spain and the same period in 2018, according to Bloomberg News. “It would only infl ict the Bretton Woods system of monetary management in Paris on July 16. Malmstrom has told her US counterpart, Robert UK. The US will also slap 25% levies on data compiled by Bloomberg. damage on businesses and put at risk Lighthizer, that his tariff plan on European exports would compel the EU to apply countermeasures in a parallel lawsuit over a range of other items including Irish Thoma Bravo made an initial non- jobs on both sides of the Atlantic, harm aid the US provided to Boeing Co. and Scotch whiskeys, wine, olives and binding proposal in June 2019, So- global trade and the broader aviation cheese, as well as certain pork prod- phos chief executive off icer Kris industry at a sensitive time.” nis Shea said at yesterday’s meeting tion’s preference is to “fi nd a negoti- all WTO-inconsistent subsidies,” ac- ucts, butter and yogurt from various Hagerman said in an interview US Ambassador to the WTO Den- in Geneva that the Trump administra- ated outcome with the EU that ends cording to a copy of his remarks ob- European nations. after the announcement. Sophos hasn’t received any other off ers, and the Thoma Bravo bid is the one that’s been presented and the one that the board is recommend- Hong Kong turmoil spells opportunity for London property owners ing to shareholders, he said. “We’ve been impressed with both their knowledge of the space and Bloomberg the most international market in the world. And when looking for growth in Asia, as well as in the US South of capital it raised, and its private-market valuation, their experience with software Seattle we have a brand-new, shiny, well-developed building and West. The company is also one of the developers which once stretched to $47bn, said Michael Yang, and in cyber security,” Hagerman and somebody says, ‘I just want to get my money out behind New York’s Hudson Yards. who leads OMERS Ventures’ investment eff orts in the said. “That track record and that of China.’ Then we say, ‘Here you go.’” Turner spoke on Thursday on the sidelines of US. experience and that judgment of London landlords eager to sell properties in the UK In the past four years, Oxford has sold stakes in a symposium in San Francisco that Oxford co- The flexible-off ice sector has become a prolific occu- how do you partner with manage- capital are seeing strong demand from investors flee- London off ices including the Cheese grater skyscraper hosted with OMERS’ venture capital arm. pier of space in recent years, accounting for as much ment teams” is a “compelling fit,” he ing an even more uncertain future in Hong Kong. and buildings on Paternoster Square. Bloomberg The unit, which set up a Bay Area off ice earlier this as 30% of net absorption, a measure of demand, in said. Hagerman said the company As Oxford Properties Group, the real estate arm reported last month that the firm is considering a deal year, is seeking to make more investments in prop- the US, according to a report this week from Green is likely to continue with a similar of the Ontario Municipal Employees Retirement to sell its stake in a £700mn ($882mn) off ice complex erty technology and presented a series of panels on Street Advisors. strategy under the new ownership. System, has looked to wind down some invest- in London’s financial district to its partner, Brookfield innovative approaches to off ice design, retailing and WeWork’s pullback will threaten those fundamentals Sophos also posted details on its ments in London, worries over Brexit have taken Property Partners LP. building construction. Looming over the discussion for off ice owners, Turner said. financial performance for the first a back seat. Turner stressed that Oxford is not leaving London; was WeWork, the flexible-off ice provider that shelved “The immediate impact they’re going to have is half of the year yesterday, and ex- “There’s a very strong bid right now from the flight he just sees better opportunities elsewhere for the its initial public off ering last month. taking the rate of growth out of some markets, such pects to report 9% constant cur- capital, particularly out of Hong Kong,” Oxford Presi- next few years. Selling the UK properties has freed up The company has been the “elephant in the room” for as London and New York,” Turner said. “Momentum rency billings growth for the six dent Michael Turner said in an interview. “London is funds to extend a global push. Turner said Oxford is venture investors for some time, given the amount investing is terrific until the momentum changes.” months to the end of September.

In planning for next US recession, economists say don’t fret about debt

Reuters now at the Peterson Institute for International rising about a possible US slowdown. generate much of it — and there seems little conference of the National Association for even though the ratio of publicly held debt Denver Economics, said in a recent discussion of the An ongoing US-China trade war, meanwhile, reason to think the United States is facing Business Economics devoted to Modern to gross domestic product, currently around world economic outlook. may lead to a long and costly adjustment to any imminent “fiscal cliff .” Monetary Theory, a set of ideas that would 76%, is expected to rise steadily past the 90- “We do have fiscal space,” she said. a less globalised system. “This is the demographic point. pave the way for the United States to issue 100% levels some economists have set as a Economists are divided about when the next This pro-debt attitude finds broad agreement The consensus that major world govern- We are going to be close to the zero lower vastly larger amounts of debt. benchmark for trouble. “We don’t know how US recession will arrive, but they largely among corporate economists, academics, ments can borrow more is driven by a bound (on interest rates) forever,” a fact MMT has figured into plans developed by much fiscal space there is. There is clearly agree on this: the country will need to fight think tank analysts, and private forecasters simple fact: over a period of time when the which gives central banks less room to some Democratic presidential candidates more,” said Meyer. “We do have opportuni- it with a massive fiscal programme, and be alike, and not just in the United States. United States was running up a trillion dollar boost the economy through traditional rate for guaranteed employment programs, as ties, and there are unmet social needs.” ready to swallow deficits that may eclipse Japan, with debt twice the size of its econo- deficit, the Fed was tightening policy and cuts but also gives more room for govern- well as massive proposed expenditures to Over the past year in particular the bench- the trillion-dollar shortfall run by the Trump my, has had no trouble issuing more. the US economy was growing faster than ment to borrow, said Julia Coronado, a combat climate change. But even among marks once seen as near inviolable have administration this year. While Japan’s situation is unique in some expected, interest rates on US Treasury former Fed staff er and founder of Macropo- mainstream economists, rising debt — at been considered less and less binding, Past discussion has focused on the Federal ways, even Europe’s more debt-wary nations bonds remained low — and even notched licy Perspectives consultants. least for nations with strong currencies and particularly for the United States. Reserve as the more powerful first respond- may be opening to the idea that there are some new records. That has led to a broader US debt in relation to the size of the institutions — is no longer a dirty word. The country’s role as issuer of the world’s er, and how rising US debt carries its own good reasons to borrow, particularly to rethink about how much debt countries economy “is going up no matter what...You With the influence of the Fed and other cen- reserve currency, and image as a safe and risks. Now talks are about how much money meet emerging commitments to reduce like the United States can safely take on, can see politically it is going to happen,” she tral banks seeming to wane, policy analysts stable place to do business, keeps demand ought to be spent and where it should go reliance on carbon-based fuels, said Jean particularly now that long-term trends such said, with no strong constituency in either are looking at other ways to respond to for US debt high and its interest rates low in a — whether to infrastructure, programs to Pisani-Ferry, a senior fellow at Bruegel, a as population ageing are thought to be a major party arguing for aggressive short- economic stagnation, such as the expansive world hungry for a “risk-free” way to invest. counter climate change or direct payments European think tank. permanent anchor on interest rates. term spending control. use of automatic programmes that would Prominent mainstream figures like former to households. Fighting climate change “may be an excuse Since older people save more and are more When the United States saw its spotless start sending checks to households as soon International Monetary Fund chief econo- In the next recession, the United States for fiscal action” in countries that would be averse to debt, the argument goes, the sup- credit rating downgraded amid a political as a recession starts. mist Olivier Blanchard have argued that should contemplate “a pretty generous pack- wary of spending just to boost short-term ply of global savings will rise and demand impasse on the debt ceiling in 2011, and Coronado spoke alongside Catherine Mann, large, stable governments should not be age,” of perhaps as much as $1.7 tn, double consumption, he said. for credit will drop, thus lowering the cost of interest rates still fell, “a bunch of light bulbs global chief economist at Citi, and Laurence reluctant to borrow for socially or economi- the amount approved for recession fighting The shift in tone on government debt comes borrowing. Couple that with tepid inflation — went off in a bunch of politicians’ heads...It is Meyer, a former Fed governor known as an cally beneficial projects as long as interest in early 2009 during a steep downturn, Karen as Europe is facing a possible recession, and the fact that trillions of dollars in central like magic money.” inflation hawk in the 1990s. All agreed the rates remain, as they are now, below the Dynan, a former Fed and Treasury off icial China’s economy has ebbed, and concern is bank bond buying in recent years failed to Coronado spoke at a seminar at the recent United States had more room to borrow, economy’s rate of growth. Tuesday, October 15, 2019 GULF TIMES BUSINESS Tajikistan finally opens its very first Islamic bank

By Arno Maierbrugger needs of the Muslim population in the As a financial institution, Tavhidbank transform Sohibkorbank into an sophisticated products such as istisna finance organisation in the country. Gulf-Times Correspondent country, and the government adopted is not exactly a new bank. It has its Islamic institution. and salam (forward contracts) and Alif Capital is mainly off ering small- Bangkok legislation regulating Islamic finance roots in conventional, Dushanbe- The new Islamic banking entity has musawama (bargaining sale), as well term interest-free loans via murabaha just as recently as in 2014. headquartered bank Sohibkorbank, been starting off with five branches as possibly takaful and sukuk at a later and musharaka (joint-venture-based Five years on, with the consultation of which was founded in 1999. Like and 48 banking service centers across point of time. With the completion of sharing) contracts to small businesses The fourth largest economy in Central the Islamic Corp for the Development the country with more than 300 hiring of staff with expertise in Islamic and entrepreneurs, but it is not off icially Asia, Tajikistan, just launched its first- of the Private Sector (ICD), a unit employees. banking and the deployment of a new a bank. ever Islamic bank in the wake of its of the Islamic Development Bank, “The launch of Tavhidbank will open IT infrastructure and other facilities, Overall, Tajikistan’s eff orts in eff orts to open up to the Islamic finance the board of the National Bank of Gulf Times a new page for Tajikistan’s banking Tawhidbank will be “working towards introducing Islamic banking and finance industry. Tajikistan issued the first licence for system, help attract foreign capital improving its business activities by operations show how vivid the Islamic One could say it was about time an Islamic bank in the country to the Exclusive and lead to the opening of more banks off ering new and innovative Islamic finance industry has become in Central since the population of Tajikistan is open joint-stock company Tavhidbank in line with the principles of Islamic finance products for Tajikistan,” Zardov Asia. The by far largest economy as per 98% Muslim, but, however, Tajikistan, for carrying out Islamic banking banking in the country,” Jamshed noted. GDP in the region, Kazakhstan, is on the since the fall of the Soviet Union, kept operations in national and foreign many of Tajikistan’s conventional Nurmahmadzoda, chairman of the While Tavhidbank is Tajikistan’s first way to become the new hub for Islamic considering itself a secular state with currencies starting from September banks, Sohibkorbank suff ered from National Bank of Tajikistan, noted at fully-fledged Islamic bank, it is, strictly finance in the entire region and beyond, a Constitution providing for freedom 16, 2019. liquidity issues during its existence the launch ceremony in Dushanbe last speaking, not the country’s first while Islamic finance is also decidedly of religion, and Islam has only been The ICD has been guiding the and repeatedly needed state help to month. Islamic finance institution. In 2014, the making its foray into Uzbekistan and off icially recognised by the government bank through issues regarding stabilise its financial situation, troubles Tavhidbank’s acting chairman of Sherali year when the government’s Islamic Kyrgyzstan. Turkmenistan is another since 2009. Shariah governance and product which led the government to develop Zardov said that the bank in a first finance regulation came into force, promising candidate, but is still at the This — a legacy of seven decades of development, legal support, human second thoughts about creating step will off er popular Islamic banking microfinance firm Alif Capital was very beginning and currently seeking political control by Moscow — has led resources, IT solutions, accounting, more leeway for Islamic banks whose products including mudharaba (profit launched as the first company to off er assistance from international Islamic to a significant delay of setting up treasury, risk management, as well as debt-based contracts are backed sharing), murabaha (cost plus finance) banking services on strictly Islamic bodies such as the ICD to gain more administrative structures to serve the marketing and communications. by tangible asset and eventually and ijara (leasing) and then add more principles and also as the first micro experience in the industry.

BoE’s Cunliffe says low rates may risk more Robust buying interests lift severe slumps

Bloomberg London

A prolonged period of low inter- QSE above 10,400 levels est rates risks making economic downturns more severe, accord- By Santhosh V Perumal ing to Bank of England deputy Business Reporter governor Jon Cunliff e. Speaking in London yesterday, Cunliff e said the drop in long- obust buying interests — espe- term market rates in developed cially within banking, transport economies partly reflected an Rand real estate counters — yes- over-pessimism about long- terday lifted the Qatar Stock Exchange term prospects, and was also 120 points to place its key barometer part of a structural trend. One above 10,400 levels amidst heightened “challenge of low for longer for trading. financial stability” is “the risk Domestic institutions substantially that in such an environment, increased their buying exposure, which economic downturns will on av- helped the 20-stock Qatar Index surge erage be more severe,” he said. 1.16% higher at 10,404.12 points. “Low for long makes demand Both non-Qatari and Gulf individual management of the economy investors were seen marginally bullish more diff icult in downturns, re- on the market, whose key benchmark ducing the space for monetary shot up 1.02% year-to-date. policy easing with conventional Market capitalisation saw more tools” Cunliff e said. “This is than QR3bn or 0.61% increase to because, for a given inflation QR575.43bn, mainly owing to mid and target and with the reduction small cap segments. in long-run real rates, policy Islamic equities were seen gaining rates are closer to their eff ective slower than the main index on the mar- lower bound.” ket, where local retail investors were He also said the environment increasingly bearish and foreign funds can also lead to “greater risk turned bearish. taking and less resilience in the Trade turnover and volumes were financial sector.” on the increase on the bourse, where In the speech that mainly banking sector alone accounted for focused on the impact of low more than 43% of the total volume. interest rates on financial stabil- The Total Return Index gained 1.16% ity, Cunliff e didn’t talk directly to 19,144.45 points, All Share Index about Brexit or short-term BoE by 0.86% to 3,063.49 points and Al policy, although he reiterated Rayan Islamic Index (Price) by 0.9% to the bank’s mantra that “any 2,343.46 points. future increases in rates will be The transport index soared 2.94%, Domestic institutions substantially increased their buying exposure, which helped the 20-stock Qatar Index surge 1.16% higher at 10,404.12 points yesterday. limited.” He added that mon- realty (1.63%), banks and fi nancial etary policy “is not powerless at services (1.14%), telecom (0.96%), Domestic funds’ net buying in- sellers to the tune of QR29.95mn com- The banks and fi nancial services The telecom sector’s trade volume the eff ective lower bound.” consumer goods (0.58%) and industri- creased substantially to QR67.48mn pared with net buyers of QR15.42mn sector’s trade volume more than tripled almost doubled to 1.53mn stocks and The speech comes amid grow- als (0.03%); while insurance declined compared to QR3.27mn on October 13. the previous day. to 43.65mn stocks and value by about value almost tripled to QR7.01mn on ing signs of a split on the BoE’s 1.27%. Non-Qatari individuals turned net The Gulf institutions turned net fi ve-fold to QR218.44mn on more than 12% jump in deals to 517. Monetary Policy Committee More than 53% of the traded con- buyers to the tune of QR0.33mn against profi t takers of QR2.27mn against net doubled transactions to 2,476. The industrials sector reported over the correct way to react stituents extended gains with major net sellers of QR1.1mn the previous day. buyers of QR1.1mn on Sunday. The real estate sector’s trade vol- 24% surge in trade volume to 17.55mn to a potential Brexit extension. movers being Masraf Al Rayan, Qa- The Gulf individuals were also net Total trade volume more than dou- ume more than doubled to 16.18mn shares, 35% in value to QR28.76mn and While hopes of a deal have tar Islamic Bank, Commercial Bank, buyers to the extent of QR0.3mn com- bled to 101.23mn shares and value more shares and value by about six-fold to 27% in transactions to 1,232. increased in recent days, the Doha bank, Milaha, Nakilat, Ooredoo, pared with net sellers of QR0.79mn on than tripled to QR329.51mn on 77% rise QR30.42mn on more than doubled However, the insurance sector’s next 48 hours will be crucial if Mazaya Qatar, United Development Sunday. in transactions to 6,249. deals to 499. trade volume shrank 23% to 5.68mn prime minister Boris Johnson is Company and Medicare Group; even as However, local retail investors’ The transport sector’s trade volume The consumer goods sector’s trade equities, value by 23% to QR13.76mn to avoid being forced to delay Dlala, Salam International Investment, net selling enhanced signifi cantly to grew almost 12-fold to 3.57mn equities volume more than doubled to 13.08mn and deals by 5% to 374. Britain’s departure beyond the Aamal Company, Qatar Insurance, Al QR35.92mn against QR17.91mn on Oc- and value by about 10-fold to QR9.8mn equities and value almost doubled In the debt market, there was no October 31 deadline, which he Khaleej Takaful, Qatar Islamic Insur- tober 13. on more than six-fold increase in deals to QR21.32mn on more than doubled trading of treasury bills and sovereign has vowed to meet. ance and Ezdan were among the losers. Non-Qatari institutions were net to 410. transactions to 741. bonds.

Billionaires could face tax rates up to 97.5% in US under Sanders

Bloomberg plans tax billionaires so much or more than 7 percentage points Washington more. Warren’s wealth tax plac- higher than they face now under es a 2% levy on fortunes above President Donald Trump. $50mn and a 3% levy on assets Large tax increases on the rich illionaires may have much more than $1bn. Sanders’ plan have been a key topic in the 2020 more to fear from a Bernie goes further, and starts taxing Democratic primary as candi- BSanders presidency than wealth of $32mn at 1%, increas- dates have looked for proposals they do from an Elizabeth War- ing to an 8% tax on fortunes that would lessen inequality and ren administration, according to above $10bn. raise lots of revenue to pay for two economists advising both “With the wealth tax, you expensive social programs, such candidates. get directly at the stock instead as expanded health care and free That’s one of the conclu- of hitting the fl ow of income, college tuition. sions of a new interactive web- making it a much more power- The economists released an site developed by University of ful de-concentration tool than interactive website Sunday that California, Berkeley professors income taxes,” Saez said in an lets users select diff erent tax Emmanuel Saez and Gabriel email about Sanders’ tax, which rates to see how levies on vari- Zucman. Sanders has said would cut the ous income groups are increas- If Sanders had his way, they number of billionaires in the ing. Saez and Zucman are also calculate that the 400 richest country in half in 15 years. releasing a book on Tuesday, Americans, on average, would The calculations by Saez “The Triumph of Injustice: How have an eff ective tax rate of and Zucman cover state, local the Rich Dodge Taxes and How 97.5%. That includes not only and federal taxes and also treat to Make Them Pay,” making the their income, but also a wealth health insurance premiums that case for large tax increases on tax that whittles away at the individuals pay as a tax, arguing top earners. family fortune. that they are one of main drivers All major Democratic can- The 97.5% average eff ective of inequality in the US didates have called for higher tax rate under his plans com- If a Democrat wins in 2020, taxes on the wealthy, including pares with 23% now and 62% wealthy Americans would fare raising the income tax rates or under Warren’s proposals, ac- best if it were Joe Biden, even increasing levies on capital gain cording to the two economists. though the former vice presi- income. Sanders, Warren and Sanders and Warren have dent would hit the rich with a Senator Kamala Harris have both pitched wealth taxes, markedly bigger tax burden — an also fl oated levies on stock and which is a key reason that their eff ective average rate of 30.6%, bond trades.