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Tuesday, April 25, 2017 Rajab 28, 1438 AH KEY MEETINGS IN US: Page 16 Finance Minister GULF TIMES al-Emadi, IMF chief Lagarde discuss BUSINESS global developments

Masraf Al Rayan posts QR510mn Q1

Participants of the recently-held Al Khaliji seminar for Al Dhameen clients. net profi t as core Al Khaliji seminar addresses challenges faced by SMEs

Al Khalij Commercial Bank (Al Khaliji) recently The event also served as a networking earnings surge organised a seminar at its Um Lekhba Branch platform for the bank’s Al Dhameen clients to to address the challenges currently facing exchange views and strategies on starting, asraf Al Rayan, a Shari- small and medium-sized enterprises (SMEs) financing, and growing their own businesses, ah-compliant lender, has in Qatar. as well we how to succeed in Qatar’s “ever- Mreported a net profi t of During the event, held in association with evolving” SME landscape. QR510mn in the fi rst three months Qatar Development bank (QDB), a special Al Dhameen is an indirect loan facility estab- of this year on the back of “reason- presentation was delivered by Eisa Al Darbasti lished by QDB to guarantee commercial bank able” expansion in core earnings. Auditing Firm, which covered a number of loans to private sector companies as a way The bank’s fi nancing grew 3% important issues that concern SMEs in the of assisting SMEs that show components of year-on-year to QR67.51bn and country. success with limited credit history or lack of investments by 6% to QR15.56bn The topics included understanding the collateral to obtain access to funds for estab- during January-March this year. importance of book keeping, audited balance lishing or growing their businesses. The asset quality (both fi nancing sheets and related terminology, and the Al Khaliji’s seminar reflects the bank’s belief and investments) continues to be importance of management information sys- that to be a successful financial institution, it one of the highest in the region and tems, as well as debt and collection manage- must meet the needs of both this generation globally, maintaining a non–per- ment. The seminar also introduced attendees and future generations of employees, custom- forming fi nancing ratio of 0.16%, to value added tax and what it means for their ers, investors, and business partners by blend- which has been consistently below businesses. ing tradition with innovation, it said. this level for the last many years, a bank spokesman said. Net profi t (adjusted for non- recurring investment gain from Russia indicates it can lift oil output if deal on curbs lapses associates) for the fi rst quarter of 2017 compared to the similar quar- Russian oil output could climb to its Russia, whose contribution to the cuts ter increased by 2%, which indi- highest rate in 30 years if Opec and non- was 300,000 bpd, has yet to state publicly cates a “reasonable” growth in core Opec producers do not extend a supply whether it wants cuts to run beyond June, operating income, the spokesman The Masraf Al Rayan headquarters in Doha. The bank’s financing grew 3% year-on-year to QR67.51bn and reduction deal beyond June 30, according although Moscow was represented on a added. investments by 6% to QR15.56bn during January-March this year. to comments by Russian off icials and panel monitoring the pact that on Friday On the profi tability indicators, details of investment plans released by oil recommended an extension. Masraf Al Rayan continued to economic landscape including the QR94.38bn, which showed an in- Masraf Al Rayan continues to firms, according to Reuters. But Russian off icials have also indicated maintain its leading position with substantial decline of oil prices, crease of 8% on a yearly basis. lead the banking sector with one of The Organisation of the Petroleum that local oil companies were ready to push annualised return on average as- the optimal utilisation of assets Customer deposits grew by an the best operational effi ciency ratio Exporting Countries, along with Russia and up output once the pact runs out. sets at 2.20% and annualised re- and other resources at Masraf Al impressive 12% year-on-year to (cost-to-income ratio) of 21.64% other non-Opec producers, pledged to cut “According to investment programmes of turn on average equity at 16.72%, Rayan’s disposal (helped) maintain QR63.07bn, while shareholders’ against its peers in the market. 1.8mn bpd in output in the first half of 2017. (Russian) companies, it is possible Russian despite the depositors’ share of sustainable fi nancial performance equity reached QR11.71bn at the Earnings-per-share for the pe- With global inventories still bulging, oil production will increase once the deal profi ts increasing by 45.1% due to and excellent customer service,” its end of March 31, 2017. riod reached QR0.68 compared Gulf and other producers have shown expires,” Deputy Prime Minister Arkady higher cost of customer deposits at chairman and managing director The lender’s capital adequacy to QR0.73 in the corresponding increasing willingness to extend the pact to Dvorkovich said, adding firms had been local and international levels. Dr Hussain al-Abdulla said. ratio, using Basel III standards and period of the previous year; while the end of 2017. held back while the deal was in place. “Given the regional and glo- Masraf Al Rayan group chief the Qatar Central Bank regula- book value per share was QR15.62 Saudi Arabia and Kuwait signalled last “If there are no restrictions, they will decide bal market conditions and many executive Adel Mustafawi said tions, reached 19.46% compared to against QR15.01 in the year-ago week they were ready to prolong cuts. not to hold back,” he said. other threats that dominated the the bank’s total assets reached 18.41% at the end of March 31, 2016. period. ZAD to lift fl our mill capacity to 890 mtpd by June

By Peter Alagos Economic Zone near the Hamad awareness for the brand, but we Business Reporter Port. are trying to get into the Saudi “Our cold storage facility at the Arabia and UAE markets,” he said, Industrial Area is expected to be adding that for Qatar, the compa- AD Holding Company is completed by the end of the year ny “is fully satisfying the market.” in the process of expand- but the other facility in Um Alhoul Sheikh Nawaf also reported that Zing the capacity of its fl our is still going through the necessary net profi t increased by 4.55% from mill by 70 metric tonnes per day approval process,” he pointed out. QR160.3mn in 2015 to QR167.6mn by June 2017 to bring the com- Asked about expansion plans at last year, while earning per share pany’s total milling capacity by the Hamad Port, he said, “We are increased from QR7.44 to QR7.78 around 890 mtpd, an offi cial has still waiting for the land alloca- per share over the previous year. announced. tion and once that is done, we are “Further, as per the resolution In his report to shareholders ready with our plans to start con- passed in the company’s AGM in during the company’s annual gen- struction at Hamad Port. 2008, the company has provided eral meeting yesterday at the Sharq “It would certainly enable us QR13.47mn for Zakat in 2016,” Village & Spa, managing director to export in bulk although most Sheikh Nawaf also announced Sheikh Nawaf bin Mohamed bin of our export markets are via land during the meeting, which ap- Jabor al-Thani also said the com- routes. But infrastructure wise, proved the board’s recommenda- pany is in the process of building it would be a bigger port and we tion to distribute 45% cash divi- a cold storage facility at the Indus- could bring in bigger ships for the dends to company shareholders. trial Area slated to be completed in raw materials, so there would be “The company continues to the fourth quarter of 2017. advantage on the freight side.” keep an eye on the changing dy- Speaking to Gulf Times on the For export operations, Mohamed namics of the economic situation sidelines of the meeting, ZAD said, ZAD Holding has been export- and study the demand and supply Holding CEO Tarique Mohamed ing fl our “some two to three years in the market for all its products said the company plans to build back just to test the market abroad.” and services to make necessary another cold storage facility at “To get a larger share of markets arrangements and be prepared to ZAD Holding vice chairman Sheikh Talal bin Mohamed bin Jabor al-Thani presides over the annual general meeting yesterday on behalf of Manateq’s Um Alhoul Special abroad, you still need to create the cater to the market,” he said. chairman Sheikh Nasser bin Mohamed bin Jabor al-Thani. PICTURE: Jayan Orma Gulf Times 2 Tuesday, April 25, 2017 BUSINESS

Bulls push Turkey stocks Turks shunning post-referendum to record

Bloomberg Istanbul lira rally by loading up on dollars Turkish stocks climbed to an all- time high yesterday, boosted by Local investors said to buy up to renewed risk appetite in global $2bn after referendum; Deutsche markets, a relief rally following Bank among global players the country’s recent referen- projecting lira gains dum and expectations for a strong earnings season. Bloomberg The Borsa Istanbul 100 Index Istanbul rose 1.1% to 93,399 points as of 2.38pm as the appeal for riskier assets increased following the urks aren’t as optimistic about first round of voting France’s the lira’s post-referendum po- presidential elections. That’s Ttential as global banks including helping Turkish stocks retain Deutsche Bank. their place among the top five Quite the opposite, in fact. performers in global equity As the currency gained in the days markets this year. after citizens voted to give President “Increased risk appetite is Recep Tayyip Erdogan sweeping powers lending the market its needed on April 16, individuals and businesses support in the run up to the were selling it, according to bankers record” Gulsen Ayaz, the head with knowledge of fl ows. Their prelimi- of institutional sales and trad- nary estimates show locals purchased a ing at Istanbul-based Deniz net $1.5bn to $2bn of foreign currencies Invest, said by email. “Also a big last week. uncertainty domestically - the Since Turks keep about 40% of their referendum - is out of the way. 1.48tn liras ($411bn) of deposits in cur- Add relatively attractive valu- rencies like the dollar and euro, what ations and a strong earnings they do with those savings can have a season. All these are helping meaningful impact on the currency’s Turkish stocks.” trajectory. If they keep shunning the Centrist Emmanuel Macron and lira, that risks undermining gains pro- far-right nationalist Marine Le jected by analysts at Deutsche Bank, Pen won through to a run-off Credit Suisse Group and others. after the first round of France’s The political situation is likely to presidential elections. The re- “continue to constrain the currency,” sult eliminated investors’ most- said Manik Narain, a London-based feared scenario and fuelled strategist at UBS AG, citing Turkey’s demand for riskier assets. A deteriorating relations with the Euro- A money changer holds Turkish lira banknotes next to US dollar bills at a currency exchange off ice in central Istanbul. Since Turks keep about 40% of their 1.48tn liras snap poll from late Sunday sug- pean Union among reasons local inves- ($411bn) of deposits in currencies like the dollar and euro, what they do with those savings can have a meaningful impact on the currency’s trajectory. gested Macron would defeat Le tors are cautious. Pen by more than 20 percent- The referendum result was a relief for currency that investors use to take time of the failed coup attempt against Foreign-currency purchases since 11.49%, according to central bank data, age points in the second round. many money managers. While it gave advantage of the relatively carry- Erdogan in the summer, they drew down the vote, if confi rmed by offi cial data, barely compensating Turks for annual Turks voted on April 16 in favour Erdogan a popular mandate to con- friendly environment,” Deutsche their dollar and euro holdings. That would mark a continuation of a trend infl ation at a nine-year high of 11.29%. of constitutional amendments solidate power, the narrowness of the Bank’s London-based strategist Gau- helped cushion the depreciation. that saw locals buy $2.73bn in the week Central Bank Governor Murat Ce- endowing President Recep victory means he’s unlikely to hold an tam Kalani said in his note. No ex- This year, they pursued the opposite before the referendum and $9.4bn this tinkaya last week reiterated his pledge Tayyip Erdogan with new, vast early election to speed up the transfer of change rate other than the Argentine strategy: As the central bank elevated year. to keep monetary policy tight. The next executive powers, an outcome power to his offi ce. peso has a higher one-year forward borrowing costs to stabilise the lira af- Narain, at UBS, said one reason Turks interest rate decision is tomorrow. that removed a source of po- After strengthening as much as 2.5% implied yield. ter it tumbled to an unprecedented low are selling liras is that interest rates on “Any signal they are looking at the litical uncertainty for investors in the hours after the referendum result, This isn’t the fi rst time investors in of 3.9415 per dollar in January, domestic deposits, while climbing, are “modest” end of the cycle would make it hard to and assured them of a continua- the lira ended the week 1.8% higher at Turkey are managing their cash in a way investors steadily built their dollar and when infl ation is taken into account. spin a positive narrative for the cur- tion of the status quo. 3.6438 per dollar. that defi es the broader trend. As the lira euro positions again, which had fallen to The weighted average rate on local-cur- rency,” said Narain, who predicts the lira The lira “is potentially the next tumbled last year, especially around the an almost two-year low. rency deposits of three months or less is will fall to 4 per dollar by year-end. QSE extends losses on foreign sell pressure

By Santhosh V Perumal Qatar, Barwa, Islamic Holding Group The transport sector’s trade vol- Business Reporter and Alijarah Holding. ume more than tripled to 1mn eq- Nevertheless, Qatar Islamic Bank, uities and value soared 67% to Doha Bank, Commercial Bank, Qatar QR23.88mn on more than doubled he Qatar Stock Exchange First Bank, Dlala and United Devel- transactions to 360. yesterday fell for the eighth opment Company were among the There was 42% surge in the indus- Tconsecutive session, mainly gainers. trials sector’s trade volume to 0.51mn dragged by selling pressure from for- Non-Qatari institutions’ net sell- stocks, 86% in value to QR38.77mn eign investors (both institutions and ing strengthened considerably to and 10% in deals to 747. individuals). QR25.5mn compared to QR4.36mn The real estate sector’s trade vol- Profi t-booking, particularly in the previous day. ume expanded 35% to 2.01mn shares telecom and transport stocks, led Non-Qatari individual investors and value by 48% to QR36.25mn, the 20-stock Qatar Index to decline turned net profi t takers to the tune whereas transactions were down 1% 0.43% to 10,153.76 points. of QR4.55mn against net buyers of to 293. Recovering from initial losses, the QR5.52mn on Sunday. The banks and fi nancial services market traded above 10,200 points in The GCC (Gulf Cooperation Coun- sector saw 18% increase in trade vol- the fi rst 15 minutes, after which there cil) individual investors were net sell- ume to 2.14mn equities, 40% in value was steady profi t-booking for the 105 ers to the extent of QR0.76mn com- to QR66.35mn and 34% in deals to minutes to take the index to a low of pared with net buyers of QR0.4mn 928. about 10,120 points. However, there April 23. The consumer goods sector’s trade was some last minute buying pres- The GCC institutions’ net buying volume was up 6% to 0.33mm stocks, sure, but overall the index settled weakened perceptibly to QR2.56mn value by 14% to QR23.08mn and 44 points lower against the previous against QR5.57mn the previous day. transactions by 27% to 389. close. However, local retail investors’ However, the insurance sector re- Selling was rather skewed towards net buying increased infl uentially to ported 33% plunge in trade volume small-cap segments in the bourse, QR25.82mn compared to QR14.76mn to 0.02mn shares, 32% in value to whose year-to-date losses widened on Sunday. QR1.38mn and 43% in deals to 30. to 2.71%. Domestic institutions turned net The telecom sector’s trade volume Islamic stocks were seen fall- buyers to the tune of QR2.45mn plummeted 23% to 1.94mn equities ing slower than the main index in against net profi t takers of but value shot up 11% to QR26.91mn the market, where Gulf individuals QR21.88mn on April 23. on more than doubled transactions turned bearish and there was lower Total trade volumes rose 17% to 289. buying support from Gulf institu- to 7.94mn shares, value by 41% to In the debt market, there was no tions. QR216.62mn and deals by 32% to trading of treasury bills and govern- However, local retail investors were 3,036. ment bonds. increasingly net buyers and domestic institutions turned bullish. Mobily holds back Saudi index Trade turnover and volumes were on the increase in the bourse, where Saudi Arabian telecoms company the region’s worst performer, down banking, real estate and telecom sec- Mobily slumped after worse 1.1%. tors together accounted for about than expected results yesterday, The main drag was profit-taking on 77% of the total volumes. but the market was buoyed by shares of Union Properties, which Market capitalisation shed about stronger quarterly earnings had surged in unusually heavy QR3bn, or 0.51%, to QR546.82bn as from the insurance sector, while trade in the previous session. small, large, micro and midcap eq- performance across the rest of the The developer fell 3.2% yesterday. uities lost 0.73%, 0.47%, 0.33% and region was mixed. In neighbouring emirate Abu 0.07% respectively. Shares of Etihad Etisalat (Mobily) Dhabi, the index added 0.2% with The Total Return Index declined tumbled 6% to 21.05 riyals after it support from First Abu Dhabi 0.43% to 17,027.25 points, the All swung to a net loss of 163mn riyals Bank and gas explorer Abu Dhabi Share Index by 0.41% to 2,893.43 ($43.47mn) in the first quarter, National Energy, up 1.4% and 3.3% points and the Al Rayan Islamic Index compared with a 20mn riyal net respectively. by 0.34% to 4,082.25 points. profit a year earlier. Egypt’s index recovered a little of The telecom sector’s index shrank Average analyst expectations were the previous session’s 2.8% loss, as 1.94%, transport (1.58%), industri- a net loss of 69.39mn riyals. foreign traders helped it to a 0.3% als (0.57%), consumer goods (0.52%), Mobily attributed its third gain, exchange data showed. banks and fi nancial services (0.16%) consecutive quarterly loss to a Global Telecom Holding, one of the and realty (0.06%); whereas insur- drop in revenue and higher interest stocks favoured by international ance was up 0.01%. and financial charges. funds, was the top performer with About 61% of the stocks were The Riyadh index, however, rose a 3.4% gain. in the red with major losers being 0.1% as most insurance stocks were Elsewhere in the Gulf, Kuwait’s Ooredoo, Nakilat, Milaha, Indus- lifted by the exceptional financial index added 0.2% to 6,831 points; tries Qatar, Aamal Company, QNB, performance of two companies. Oman’s index lost 0.1% to 5,467 QIIB, Medicare Group, Widam Food, Dubai’s index, which was shut on points, while Bahrain’s index edged Mesaieed Petrochemical Holding, Sunday for a public holiday, was down 0.1% at 1,336 points. Gulf International Services, Mazaya Gulf Times Tuesday, April 25, 2017 3 BUSINESS

Emirates named Best Airline Worldwide in sweep of four awards

Emirates has announced that it won four amenity kits for first and business class allowing Emirates Skywards members accolades at the Business Traveller passengers, environmentally sustainable and their guests travelling on Emirates to Middle East 2017 Awards. blankets and interactive augmented enjoy the airline’s first and business class At a ceremony attended by key travel reality amenity kits for economy class lounges at Dubai International Airport industry executives, Emirates was passengers, and regular updates of its and abroad. crowned Best Airline Worldwide. It was range of onboard toys for young flyers. For corporate customers, Emirates also recognised as the Airline with the Regarding in-flight entertainment, the launched a revamped Emirates Business Best First Class, Airline with the Best First airline off ers a choice of over 2,600 Rewards programme to provide greater Class Lounge and Best Frequent Flyer channels on its ICE system. value, including easier loyalty points Programme. On the ground, Emirates completed redemptions and upgrades even on last- Adel al-Redha, Emirates executive a $11mn makeover of its business minute bookings. vice-president and COO, said: “We are class lounge at Concourse B in Dubai Today, Emirates Skywards has 14 honoured to be recognised for our eff orts International Airport, and expanded its airline partners, including strategic by Business Traveller Middle East’s global network of dedicated lounges partnerships with Easyjet and Qantas, readers. I would like thank our team and with the opening of its newest Emirates off ering member access to one of the attribute this award to our dedicated Lounge in Cape Town International world’s largest networks of global travel staff , who are the pillars behind every Airport. destinations, the statement notes. achievement and award we receive.” Emirates Skywards, the airline’s The programme also has 24 hotel In a press statement, Emirates said loyalty programme, last year launched partner brands covering nearly 20,000 it “invests continually in product Cash+Miles, enabling members to properties worldwide. development and service enhancement.” redeem flights using a combination of Earlier this month, Emirates was In the past year, the airline’s on-board cash and Skywards points, regardless recognised as the Best Airline in the enhancements included newly designed of their membership tier. Emirates also World at the TripAdvisor Travellers’ Al-Redha (centre) receiving the Best Airline Worldwide award from Ian Fairservice (right), managing partner and group business class seats, re-designed introduced ‘pay-per-visit’ lounge access, Choice Awards for airlines. editor, Motivate Publishing, and chef Vineet Bhatia at the 2017 Business Traveller Awards.

Oman said Malaysia to pay Abu Dhabi to follow Abu Dhabi with SWf $1.2bn to settle 1MDB debt merger Bloomberg Kuala Lumpur plans alaysia reached an agreement to pay Abu Dhabi about $1.2bn Bloomberg Mas settlement over the debt of London embattled government fund 1Malaysia Development Bhd. Abu Dhabi sovereign wealth fund man, the largest Arab oil International Petroleum Investment producer outside the Or- Co will get half the amount by the end Oganisation of Petroleum of July and the rest by the end of this Exporting Countries, is consid- year, according to an IPIC statement ering a merger of its two main on the London Stock Exchange yester- sovereign wealth funds amid a day. 1MDB will also assume the coupon slump in oil prices, people famil- and principal obligations for $3.5bn of iar with the matter said. bonds issued by it and co-guaranteed The Gulf state is seeking to by IPIC, according to the statement. combine State General Reserve “These obligations will be met by Fund with smaller peer Oman 1MDB, primarily via monetisation Investment Fund to create an of 1MDB-owned investment fund entity with about $25bn in as- units,” the Malaysian company said in sets, the people said, asking not a separate statement. “This arbitra- to be identifi ed as the informa- tion settlement and monetisation of tion is private. The discussions investment fund units represents the are preliminary and no fi nancial resolution of a signifi cant challenge, advisers are currently involved, and is a major part of the 1MDB ration- the people said. Final agree- alisation plan, which is now at its fi nal ments haven’t been reached and stages of conclusion.” talks may still falter, they said. 1MDB and IPIC were locked in a tus- Oman is studying ways to im- sle that spilled over to repayments on prove its investment manage- two sets of bonds issued by the Ma- ment and a merger of the two laysian state fund that led to a default funds could include other invest- in April 2016. IPIC was seeking $6.5bn ments, one of the people said. from 1MDB and the Malaysian govern- Countries in the Gulf Cooper- ment for failure to perform their debt ation Council, a group of six oil- obligations as the dispute moved into producing nations, are restruc- arbitration at the London Court of In- turing national oil companies ternational Arbitration. - selling shares, merging units The agreement is conditional on the and cutting costs - after crude arbitration tribunal making a consent slumped by more than half since award by May 31, IPIC said. 2014. Representatives for SGRF 1MDB’s 5.99% notes due May 2022 and OIF didn’t immediately re- rose to the highest since November. spond to requests for comment. The yield fell 11 basis points to 3.98% as No one at Oman’s fi nance min- of 6.45pm in Hong Kong, according to istry was available for comment. Bloomberg-compiled prices. The yield Abu Dhabi is merging its sov- has declined from 6.63% about a year ereign wealth funds Mubadala ago after 1MDB defaulted on a coupon A construction worker talks on the phone in front of a 1Malaysia Development Berhad billboard at the Tun Razak Exchange development in Kuala Lumpur (file). Abu Development Co with Interna- payment on a separate bond. Dhabi sovereign wealth fund International Petroleum Investment Co will get half the amount by the end of July and the rest by the end of this year, according to an IPIC tional Petroleum Investment Co The settlement removes a key hur- statement on the London Stock Exchange yesterday. to cut costs and combine com- dle amid investigations from the US to plimentary businesses. Singapore, Hong Kong and Switzerland after its 2009 inception. The country’s could be a victim of fraud if payments ter into good faith discussions in rela- zen Sky Ltd and 1MDB Global Invest- SGRF was set up in 1980 to into money laundering and embezzle- parliamentary committee identifi ed at intended for IPIC never made it there, tion to payments made by 1MDB Group ment Ltd, a person familiar with the invest the country’s fi nancial ment linked to 1MDB. A brainchild of least $4.2bn in irregular transactions. while the latter had denied ownership to certain entities,” IPIC said. matter said last week. surpluses and mostly focuses Malaysian Prime Minister Najib Razak Among the issues between the in the company that 1MDB transferred 1MDB and the Malaysian fi nance The Malaysian government said all on opportunities outside Oman, to attract foreign investment, 1MDB 1MDB and IPIC were billions in alleg- money to. ministry will pay IPIC through pro- 1MDB-owned investment fund units according to information on its accumulated billions of dollars in debt edly missing funds. 1MDB has said it “The parties have also agreed to en- ceeds raised from the sale of units Bra- have been monetised. website. Space, the final frontier seen for Earth’s oil giants

Bloomberg tens of millions of US dollars each and an Technology. That much platinum could be Singapore asteroid-harvesting spacecraft could cost worth $25bn to $50bn, although it would $2.6bn, in line with mining operations on likely crater the market for the metal. Earth, Goldman Sachs Group Inc analysts “You could go massively short on The Middle East has a huge impact on including Noah Poponak said in an April 4 platinum and then show up at settle- energy here on Earth. One analyst thinks research note. Most resources would be ment with an asteroid, but you probably some regional powerhouses may leverage processed and used in space although it could only do that once,” James said that role into the development of natural may be economic to ship some com- in an interview after a presentation at resources in space. modities, such as platinum, back to Earth, the National University of Singapore’s Countries like the UAE and Saudi Arabia according to James and Goldman. Middle East Institute. “I don’t think the are developing space programmes and in- “Space mining is still a long way from counter-party would take that trade a vesting in nascent private space commod- commercial viability, but it has the second time.” ity initiatives, said Tom James, a partner potential to further ease access to space,” Platinum futures for July delivery fell at energy consultant Navitas Resources. Poponak wrote. “Water and platinum 0.6% to $972.10 an ounce on the New York Doing so could give them a foothold in group metals that are abundant on Mercantile Exchange yesterday. building extraterrestrial reserves of water asteroids are highly disruptive from a In the long term, most of the commodities - a substance likely to fuel travel within technological and economic standpoint.” mined in space will stay in space to power or split into hydrogen and oxygen, and cooperation on space exploration, ac- ing space ships need to burn less fuel to space - and other resources that could be Navitas expects companies to launch a low-orbit space economy built around then recombined and combusted. Deep cording to a report from Arab News. Abu exit the atmosphere. That benefits some used for in-space manufacturing. satellites searching for rare gases and satellites and space stations, James said. Space Industries Inc, an asteroid mining Dhabi is an investor in Richard Branson’s Middle Eastern countries as launch sites, “Water is the new oil of space,” James said metals in asteroids within five years, with In that scenario, water accumulated in company, has developed a thruster that space tourism venture, Virgin Galactic. In James said. in Singapore. “Middle East investment actual mining happening within eight. A space would become valuable as it could heats water into a steam propellant, ac- addition to money, the Middle East also “The Middle East builds the tallest build- in space is growing as it works to shift single asteroid might contain 175 times be used for rocket fuel for interstellar cording to Goldman. has geography on its side. ings, the biggest shopping complexes,” from an oil-based to a knowledge-based more platinum than the Earth mines in a voyages. The substance is too heavy and The UAE and Saudi Arabia already have The closer a country is to the equator, said James. “Certainly they’re having economy.” year, Goldman said, citing a project associ- costly to transport from Earth. space programmes, with Saudi Arabia the more surface velocity there is from a big impact on the space and satellite Prospecting satellites can be built for ated with the Massachusetts Institute of Water can be used as a propellant in space signing a pact with Russia in 2015 for spinning around the Earth’s axis, mean- industries as well.” Gulf Times 4 Tuesday, April 25, 2017 BUSINESS Sensex climbs the most in a month; rupee rises to 64.44

Bloomberg Cements +7%, Kesoram Industries Mumbai +3.1%. Reliance Industries ad- vanced ahead of its fourth-quarter earnings, scheduled for release; it Indian stocks climbed the most in has climbed 31% so far this year. a month as HDFC Bank extended Meanwhile the rupee yesterday gains after reporting earnings on strengthened against the US dollar Friday. following gains in the global cur- The S&P BSE Sensex rose 1% rencies and equity markets after to 29,655.84 points at the close the outcome of the first round of in Mumbai, the biggest gain the French Presidential election. since March 14. The NSE Nifty 50 The rupee closed at 64.44 a climbed 1.1%. HDFC Bank was the dollar, up 0.27% from its Friday’s biggest boost to both gauges, close of 64.61. The rupee opened rising 2.4% to a record. The lender at 64.51 a dollar and touched increased its market share for a high of 64.41. Year-to-date, it most retail off erings, Antique gained 5.3%. Stock Broking Ltd said in a note, Global stock markets rallied reiterating its buy rating. after its favoured candidate, Yesterday’s gains erased the Emmanuel Macron, won the first Sensex’s declines for the month, round of the French presidential with the benchmark gauge now election. Macron will now face little changed in April. It remains far-right leader Marine Le Pen in 1% below the April 5 record as a May 7 runoff , with opinion polls foreign investors have pared posi- on Sunday predicting an easy win tions. They have been net sellers for him in the final clash, Reuters for nine straight sessions through reported. Thursday, according to the most Foreign institutional investors A pedestrian walks past the Shanghai Stock Exchange building in China. The Shanghai Composite Index slumped 1.4% to 3,129.53 points yesterday. recent data available. Global funds (FIIs) were net sellers for the ninth are poised to turn net short on consecutive session and sold local index futures for the first nearly $600mn in the local equity time since January while domestic markets in this period. So far this investors just turned net long, or year, they have bought $6.33bn bullish. The contracts expire on and $7.14bn from local equity and the last Thursday of every month. debt markets, respectively. “Local investors are helping the The 10-year bond yield closed China stocks tumble as index keep its head above water,” at 6.942% compared to its previ- Paras Bothra, vice president at ous close of 6.924%. Bond yields Ashika Stock Broking, said by and prices move in opposite phone. “Foreigners are bearish directions. amid global concerns.” Asian currencies were trading Cement producers’ shares ral- higher. South Korean won was up lied after quarterly sales for India’s 0.38%, Singapore dollar 0.32%, regulators tighten grip biggest manufacturers, ACC and Taiwan dollar 0.28%, Indonesian Ultratech Cement, beat estimates. rupiah 0.09%, China Off shore Reuters step in to stem a further stock market in summer 2015. And the outstanding na Strategy at UBS Securities. “Investors ACC +7.5%, most since 2010, 0.06%, Thai Baht 0.03%. However, Shanghai slide, as it did during a crash in mid-2015. economic performance in Q1 gives them seem to mostly be responding by adjust- after reporting first-quarter Japanese yen was down 0.99%. “You cannot count on the National more room to tighten.” ing their positions, particularly by rotat- revenue of Rs36.3bn, beating The dollar index, which meas- Team for rescue this time,” said Shen In the latest of a fl urry of regulatory ing into high-quality blue-chips.” An- estimation of Rs31.5bn; Ultratech ures the US currency’s strength hina stocks tumbled more than Weizheng, fund manager at Ivy Capi- measures in recent weeks, China’s in- other big concern for investors has been Cement gained to a record on 4Q against major currencies, was 1% yesterday in their worst day tal, referring to a group of government- surance regulator said on Sunday it will the pace of new IPOs. net income of Rs6.88bn versus trading at 99.03, down 0.95% from Cthis year amid signs that Bei- backed investors. ramp up its supervision of insurance Up to 500 IPOs are expected to be estimation of Rs6.65bn; India its previous close of 99.977. jing will tolerate further market vola- Chinese stocks have been on a down- companies to make sure they comply approved to raise no more than 300bn tility as regulators increasingly clamp ward trajectory since mid-April and have with tighter risk controls. yuan ($43.57bn) in 2017, an offi cial with down on shadow banking and specu- lost nearly 3 % this month, wiping out a It also threatened to investigate execu- Shanghai Stock Exchange was quoted as lative trading. good chunk of their gains so far this year. tives who fl out rules aimed at rooting out saying. Market confi dence also has been hit The Shanghai Composite Index risk-taking. Dozens of newly-listed stocks had lost by an expected fl ood of initial public slumped 1.4% to 3,129.53 points — its The banking regulator said late on more than 30% over the past weeks amid off erings which will pump more sup- worst one-day loss in four months — af- Friday that growth in Chinese wealth tougher regulation and expectations of ply into the weakening market, and by ter suff ering its biggest weekly decline of management products (WMPs) and more equity supply. worries that the world’s second-largest 2017 last week. interbank liabilities eased in the fi rst On Monday, 2,620 stocks fell, while economy will start to lose steam in com- The blue-chip CSI300 index fell 1.0% quarter, suggesting authorities are only 390 plays rose. ing months. to 3,431.26. making some headway in containing fi - Main sectors fell across the board, led Recent signs of stability in China’s Daily declines of more than 1% in nancial risks built up by years of debt- by infrastructure stocks, which dived economy “have provided a good external the indexes have been rare for notori- fuelled stimulus. more than 3%. environment and a window of opportu- ously volatile Chinese markets this year, But while the clampdown is expected Bearish sentiment spread to major nity to reduce leverage in the fi nancial though some highly speculative small to continue, most analysts believe the investment themes, including Beijing’s system, strengthen supervision and ward cap shares have seen wild swings as fi rst moves will be cautious to avoid hitting ambitious “One Belt, One Road” infra- off risks,” the offi cial Xinhua News Agen- speculators, then regulators piled in. economic growth, and some sceptics be- structure plan to eventually connect cy reported on Sunday. “Even the better-than-expected Q1 lieve authorities will continue to put off China to European markets, and the “Over the past week, interbank rates data could not boost the market, as in- deeper and more painful reforms. high-profi le new Xiongan Economic trended higher, bond and capital markets vestors are concerned about regula- Investors are already concerned that Zone near Beijing. suff ered from sustained corrections and tory risks,” wrote Larry Hu, an analyst at the economy could lose momentum in The Shanghai Stock Exchange said it some institutions faced liquidity pres- Macquarie Capital, referring to stronger- coming months as local governments would pay special attention to exces- sure. than-expected 6.9% economic growth launch ever more stringent measures in a sive speculation in stocks related to the But these have little impact to the sta- early in the year. battle to cool heated property prices. Xiongan concept, and would take more The Bombay Stock Exchange building is seen in Mumbai. The BSE bility of the broader environment.” He added that “the last thing policy “Market risk appetite could continue stringent regulatory measures if needed Sensex closed up 1% to 29,655.84 points yesterday. The Xinhua comments quashed lin- makers want to see amid the Party Con- to decline if fi nancial regulation keeps to contain abnormal speculative activi- gering hopes that the government will gress this fall is a market crash like that tightening,” said Gao Ting, Head of Chi- ties that disturb the market. Hot spots in EMs this week: Emerging equities, currencies jump China and Venezuela Reuters London Bloomberg been killed since the protests began this month. London The violence adds to pressure on the nation’s assets. Venezuela’s international reserves are merging assets shifted up a gear yester- at the lowest level since 2002 and its sovereign day as markets cheered the French elec- With the first round of France’s presidential elec- Eurobonds are among the cheapest in emerging Etion results, pushing developing stocks tion complete, emerging markets have escaped markets. to a near-three week high and sending most a potential sell-off trigger, even as concern over Colombia: The central bank is scheduled to emerging currencies surging against the dollar political turmoil in South Africa and South Korea decide on interest rates on Friday. Recent weak and euro. eases. economic data have led to speculation that Sunday’s election saw centrist and market Still, Venezuela remained a flashpoint amid policymakers will speed up the pace of cuts, after favourite Emmanuel Macron take a big stride nationwide protests against the government, reducing the overnight lending rate by 75 basis towards the French presidency, winning the while interest-rate decisions in Turkey and Colom- points since the beginning of December. fi rst round and lining up a showdown against bia were likely to be in focus. In China, investors The central bank will probably lower the rate far-right leader Marine Le Pen in a May 7 run- braced for a continued crackdown on leveraged 25 basis points, according to the median of 20 off vote. trading. estimates compiled by Bloomberg. Victory for the pro-European Union ex- Nigeria: Nigeria’s central bank is introducing a Turkey: The central bank may maintain a banker in the opening round soothed nerves foreign-exchange window for portfolio inves- “tight” policy stance at the April 26 meeting, Gov- over the future of the bloc and its single cur- tors to try to ease a shortage of dollars. Foreign ernor Murat Cetinkaya said last week. rency, and whetted investors’ appetite for investors fled naira assets after the government The bank has pushed funding costs up by more riskier assets. allowed the currency to devalue last year. than 300 basis points this year through daily MSCI’s emerging market index extended While the naira has been little changed at liquidity management. gains into a third day and rose 0.5% as bourses about 315 per dollar since August, non-deliverable JPMorgan Chase & Co said such policy tighten- across Asia, Europe and Africa chalked up sol- forward contracts signal traders see the currency ing has been enough to stabilise markets and id gains. depreciating more than 10% in three months. restore some credibility, though “perhaps not as Currencies also fi rmed as the dollar suff ered China: The Shanghai Composite Index had its eff ective as a conventional 300 basis-point rate its biggest one-day loss in more than a month, worst week this year amid a crackdown on lever- hike.” weakening around 1%. aged trading. Saudi Arabia: The Middle East’s biggest bourse South Africa’s rand proved the star per- The China Securities Regulatory Commission has shifted its settlement cycle to T+2, aligning the former, jumping nearly 2% to its strongest Across central and emerging Europe, cur- He noted Poland was the biggest net receiv- has stepped up criticism of what it called disrup- exchange with its international peers as it seeks level in three weeks. rencies and stocks also basked in the glow of er of EU funds and Hungary the biggest in per tive trading behaviour, with Chairman Liu Shiyu inclusion in MSCI Inc’s emerging-market index, “The big conclusion here is that the ‘risk- the French results, with the threat of a second capita terms. saying Chinese bourses should punish irregulari- which is tracked by fund managers globally. on’ theory may get better support this week,” round between the anti-globalisation candi- Stocks in Warsaw rose 1.4% while those in ties “without mercy.” In 2015, the exchange allowed investors abroad said Luis Costa, the head of CEEMEA debt and dates Le Pen and the hard-left’s Jean-Luc Me- Prague added 1.2%. The zloty and the crown The decline in stocks may persist “as regulators to trade shares directly for the first time. Even FX strategy at Citi. “This is good for carry cur- lenchon averted. strengthened around 0.5% against the euro. will likely maintain their strict stance on financial after the government further eased the require- rencies in general...The markets may remain Jakob Christensen, head of EM research at Chinese assets were the exception how- scrutiny,” said Wu Kan, a Shanghai-based fund ments to access the market last year, foreigners in a reasonably sweet spot whereby EM growth Danske Bank, said the risk of a wider EU crisis ever, with stocks tumbling more than 1% for manager at Shanshan Finance Co. hold less than 5% of the total market capitalisa- shows signs of some improvement.” under a far-right president now looked much their worst day this year on signs Beijing is Venezuela: Opposition leaders have called for tion. Turkey’s lira and Mexico’s peso both gained slimmer. willing to tolerate market volatility amid a more demonstrations to protest against President The Tadawul All Share Index rose on Sunday af- more than 1% with Russia’s rouble strength- A Le Pen presidency “would have raised regulatory clampdown on shadow banking Nicolas Maduro, who has described the recent ter King Salman restored bonuses and allowances ened 0.9%, refl ecting a similar rise in oil pric- doubts about the EU structural fund transfers and speculative trading. unrest as a coup. As many as 20 people have for state employees. es. to Eastern Europe,” Christensen said. The yuan weakened 0.2%. Gulf Times Tuesday, April 25, 2017 5 BUSINESS

Former Brazil central banker Jittery investors are helping says ‘political clouds’ slow growth bonds outpace S&P 500 Bloomberg Sao Paulo Bloomberg New York razil’s corruption scan- dals are casting a cloud nvestors who think the bulls will be Bover the political land- slaughtered this year are seeking scape that’s preventing a Isafety in hybrid assets instead. full-fl edged economic recov- They’re pouring money into con- ery, former central bank head vertible bonds, securities that can Arminio Fraga said. shield investors when stocks drop or It would be unheard of for bonds tank. The notes are among the a recession to be this extreme best performing US securities of the and not be followed by a large year, having jumped 6%, according to rebound, “but right now it feels Bloomberg Barclays index data, top- like a small bounce,” Fraga, a ping the S&P 500 index and junk debt. partner at hedge fund and pri- With strong investor demand, is- vate equity fi rm Gavea Inves- suance of the bonds has surged more timentos, said in an interview. than 300% to $12.8bn, the highest level “The only reason we don’t have a since the 2008 fi nancial crisis. strong rebound is because of the Companies including Microchip uncertainty still ahead of us.” Technology, Tesla and GoPro have sold Despite more than two years convertible debt. of economic contraction that Convertible bonds pay interest, like reached almost 10% – a down- bonds, and can be exchanged for stock turn Fraga called a “depression” after a company’s shares rise above an – many entrepreneurs still have agreed-upon price. If stocks tank, the excess capacity and are waiting coupon payments can prevent the se- before investing in more pro- curities’ value from falling too much. duction, he said. Questions still And if bond markets plunge, the poten- unanswered include whether the tial to convert the bonds into equity can government will increase taxes, keep values relatively strong. reduce subsidies or cut spend- “People are a little more nervous than ing, and whether the next presi- they have been in the past,” said Eli Pars, dent will change Brazil’s eco- co-chief investment offi cer of Cala- nomic direction in coming years. mos Investments in Naperville, Illinois, New revelations in the three- which manages $19bn. “Converts are a year-old Carwash corruption great way to keep some equity exposure probe are also increasing dis- but take risk off the table if you’ve made content and uncertainty, ac- a lot of money in the bull market.” cording to Fraga. Billionaire trader Paul Tudor Jones “What we are seeing is this told investors earlier this month that A runner passes the Federal Reserve building in Washington, DC. The Fed has hiked rates three times since December 2015, and longer-term bond yields have jumped amazing display of completely years of low interest rates have bloated since July of last year, which have made some investors more fearful about the potential for bond prices to drop further. widespread corruption, and this stock valuations to levels not seen since is poisonous,” Fraga said, adding 2000, just before the tech bubble burst, Lynch index, compared with $1.3tn of to drum up support in the traditional Pars. “When interest rates were re- in early part of last decade, when an- that it’s also fertile ground for a which should be “terrifying” to a cen- US junk debt and $6.2tn of investment- debt markets. ally low, it was hard to get Corps to do nual convertible-debt sales sometimes sort of populism that would end tral banker. Even Larry Fink, whose grade notes. Franklin Templeton’s Take GoPro, a sports-camera maker anything but straight debt,” Pars said. topped $100bn. Silverstein said the up undermining attempts to bal- BlackRock oversees $5.4tn mostly bet- Convertible Securities Fund, which without credit ratings. It sold $175mn “As coupon costs go up, that makes the 10-year Treasury would have to reach ance the federal budget. Such an ting on rising markets, acknowledged oversees around $2.2bn, is the largest of convertibles this month, up from a converts conversation a little bit more 3% to 3.5% before borrowing costs rose outcome would be “more painful last week that stocks could fall between mutual fund according to Bloomberg planned $150mn. With $419mn of loss- interesting. It was defi nitely a good fi rst enough to interest many investment- than adjusting,” he said. 5 and 10% if corporate earnings disap- data. There are also a few convertible- es last year and shares that have fallen quarter.” grade companies. Hours of videos released this point. bond ETFs. more than 45% since early October, the Even so, some investors are wary of Even so, the securities may be a good month show owners of Ode- Some bond investors are concerned Those funds, the largest of which is company might have struggled to sell the securities. Kathleen Gaff ney, co- bet now for fearful investors, said David brecht, Latin America’s biggest about the Federal Reserve’s plans to the $3.5bn SPDR Bloomberg Barclays conventional junk bonds or equity. director of diversifi ed fi xed income at Clott, a money manager at Westwood construction company, explain- hike rates, which could hurt bond pric- Convertible Securities ETF, have seen The Federal Reserve has hiked rates Eaton Vance, which manages $381bn, Funds in Framingham, Massachusetts, ing how they bribed offi cials to es, said Ed Silverstein, head of convert- $155mn of infl ows this year. three times since December 2015, and said she hasn’t been tempted by the as- which oversees $21bn. If stock markets win lucrative contracts, tales ibles at MacKay Shields, which man- Investor demand is creating an at- longer-term bond yields have jumped set class recently. swing more, the options embedded in that go back decades and men- ages about $95bn. tractive financing option for some since July of last year, which have made “You’re taking both that equity risk convertibles should be worth more, tion almost 100 politicians, in- “People feel that the 30-year bull companies with volatile stocks. Large some investors more fearful about the and credit risk at the same time,” said lifting the securities’ value. cluding all fi ve of Brazil’s living market in bonds is over. They’re wor- companies like Dish Network Corp potential for bond prices to drop fur- Gaff ney, who holds some convertibles “Given the political backdrop and presidents. ried,” Silverstein said. have sold the debt this year, but it’s ther. Rising yields have also increased in her multisector fund. “History will a lot of the expectations in the mar- “At the moment there is no The convertible bond market is rela- a particularly popular option for the incentives for some companies to tell you it’s hard to do both.” ket, we would expect volatility to pick visibility, there is a massive lack tively small, with about $187bn out- small- and mid-cap companies that try to cut their borrowing costs by sell- While interest rates are rising, they up,” Clott said. “Volatility makes the of trust in politics, on politi- standing in the Bank of America Merrill may lack the credit grades necessary ing convertible notes, said Calamos’s remain well below where they were assets more attractive.” cians,” Fraga said. Brazil President Michel Te- mer’s popularity has fallen into the single digits as he fends off corruption allegations and backs unpopular auster- Hopes rise for China share inclusion as MSCI pitches compromise ity measures, local newspaper Estado de S. Paulo reported on April 17, citing an Ibope poll. Reuters tightly-controlled market. The index Qualifi ed Foreign Institutional Investor ris, senior investment strategist at BNP Connect scheme continues to have Temer was rated “good” or Hong Kong provider has now narrowed the gap be- (QFII) investment scheme. Paribas Investment Partners. operational snags that prevent some “very good” by 9% of respond- tween China and global asset managers It also wanted the country to scrap a “This latest proposal suggests MSCI investors from using it. ents. In the prior Ibope survey by proposing a smaller slate of stocks rule requiring foreigners seek regula- is taking a quality over quantity ap- The smaller proposed number of carried out in March, the presi- he chances of MSCI Inc adding and confi ning them to large-cap com- tory approval before launching invest- proach. This seems like a good start.” stocks means the weighting of A shares dent’s approval rating was 20%. China-listed shares to its global panies accessible to foreign investors ment products that include A shares, The China Securities Regulatory in the index would be just 0.5% if MSCI In this already diffi cult po- Tindex have risen signifi cantly via a trading link with Hong Kong. and said it wanted to see fewer long- Commission did not respond to a re- proceeds in June, meaning around litical environment, the govern- since it proposed to cut the number of “Certainly, in terms of the challeng- term share suspensions. quest for comment, while MSCI de- $12bn would fl ow into Chinese shares, ment will try to pass unpopular companies to include, investors say, es China poses with respect to equity Chinese regulators and benchmark clined to comment. Nomura analysts said. reforms aimed at reducing the but capital controls and market access market access, this proposal does go providers have been in discussions for MSCI will hold consultations with China’s equities market is valued at fi scal defi cit by cutting ben- snags may still pose a hurdle. some way to addressing those con- several years to smooth out market ac- investors in the next few weeks and nearly $8tn. efi ts for retirees. And it will also New York-based index provider cerns,” said David MacKenzie, head of cess issues, but have reached a dead- may still struggle to convince many “I do think this time round there is a probably have to increase taxes, MSCI will announce in June if it will Asian Equity Management at Schrod- lock over the last remaining hurdles, who remain wary of Beijing’s restric- greater likelihood of inclusion but it is a Fraga said. add yuan-denominated Chinese ers. “I’d be very surprised if they didn’t said two people briefed on the matter. tions on capital outfl ows, some inves- small selection of stocks and the actual “The former government blew shares, or A shares, to its Emerging push it through this year.” One of the people said MSCI was tors said. investment amount is very small,” said up the biggest hole in the budget Markets Index, a move that could draw BlackRock — MSCI’s largest client — working around these last issues by re- “There is still a lot of pushback Yannan Chenye, portfolio manager and ever, a deterioration of 6 to 7 up to $400bn into China stocks over said in a statement it was “supportive ducing the proposed selection of 448 from investors due to capital out- head of China research at Chinese as- points of GDP,” said Fraga, the the next decade. of” China A-share inclusion in global stocks to 169. flow restrictions, so I would say the set management giant Harvest Global fi nance-minister designate for MSCI last year declined for the benchmarks but did not comment on “This is a bit of negotiation with the chances of global benchmark inclu- Investments. PSDB candidate Aecio Neves in third time to include mainland-traded the timeline or MSCI’s new proposal. investors on one side telling MSCI what sion this year are still only around “But inclusion would be very the 2014 elections. Neves lost shares to the benchmark, tracked by MSCI said last June China needed they want to see, and the Chinese regu- 50-50,” one person closely involved in symbolic, meaning global investors to Dilma Rousseff , who gave her around $1.5tn in assets, saying more to allow foreign investors to freely re- lators on the other side saying this is the discussions on benchmark inclu- would have to look at the China mar- seat to Temer in April 2016 in an had to be done to open up the country’s patriate capital under its cross-border what they can off er,” said Daniel Mor- sion said. Others pointed out that the ket more closely.” impeachment process. Hedge funds jump on gold for life raft as dollar ship sinks

Bloomberg which oversees $43bn, including gold after it launched a cruise missile strike stability. Bullion’s 60-day historical volatility New York ETFs. “Rather than run the risk of having against Syria. fell on Friday to the lowest since October your dollars eroded on a relative basis, Events in Europe have also been a boon 2014. Assets in the SPDR Gold Shares ETF you can use gold as a life raft to sort of for gold. There are still doubts over where have climbed for three straight weeks. There’s no stopping the gold bulls. Hedge avoid a sinking ship.” the UK’s post-Brexit economy is heading. Still, gold’s appeal could be curbed amid funds increased their wagers on a gold Money managers raised their gold net- In France, a presidential election runoff is softening seasonal demand in India, and rally to the highest since November, bet- long position, or the diff erence between scheduled for May 7 and candidates are as the market may be underestimating the ting that this year’s 11% advance has more bets on a price increase and wagers on stressing their commitment to fight terror- impact of higher US interest rates, Tom Ken- to go. Investors are also loading up on the a decline, by 15% to 161,263 futures and ism after the killing of a policeman on the dall, head of precious metals sales at ICBC metal through exchange-traded products, options contracts in the week ended April Champs-Elysees in Paris last week. Demand Standard Bank, said in a report April 21. pouring $487mn into SPDR Gold Shares. 18, according to US Commodity Futures for gold coins is surging in the nation, with The prospect of higher borrowing costs That was the biggest daily inflow into the Trading Commission data released three CoinInvest selling more than 1,000 ounces remain a headwind because it makes the world’s top bullion ETF in seven months. days later. on Friday. That’s up from typical sales of metal less competitive against inter- Gold is shining bright as the dollar While investors are bullish on gold, 200 to 300 ounces, according to chief est- bearing instruments like bonds. The trades near the lowest since November, prices took a knock on Monday on executive off icer Daniel Marburger. Federal Reserve appears on course to lifting the appeal of alternative assets. speculation that pro-growth centrist Em- “The important thing about gold is it raise interest rates twice more this year At the same time, escalating tensions manuel Macron will become France’s next provides a huge geopolitical hedge wheth- and off icials have signalled they remain between the US and North Korea have president by defeating far-right nationalist er it’s North Korea or its French election confident in their forecast for growth of boosted demand for a haven, while delays Marine Le Pen in the second round of the risks, or wherever else it comes,” Francisco around 2% despite a series of weak first- in implementation for President Donald presidential elections on May 7. Gold is shining bright as the dollar trades near the lowest since Blanch, the head of commodities research quarter reports. Trump’s campaign promises to cut taxes Gold futures in New York fell 1.2% to November, lift ing the appeal of alternative assets at Bank of America, said in a Bloomberg “It’s really the dynamic between and pursue a pro-growth agenda are $1,273.30 an ounce yesterday, paring the TV interview last week. “People are going interest rates and the price of gold that clouding the outlook for earnings. month’s gain to 1.8%. in the metal. Geopolitical tensions are doubt Trump’s resolve after his “decisive to rush into gold.” explains the issue” against owning gold, “There’s an appetite for storehouses of Standard Chartered and Bank of Amer- giving gold a boost, Standard Chartered action” against Syria and Afghanistan. The Open interest in gold futures has Mark Heppenstall, Horsham, Pennsyl- wealth at this point,” said Peter Sorrentino, ica Merrill Lynch say the metal is headed analysts including Suki Cooper, wrote in US dropped the largest non-nuclear bomb rebounded to the highest since January, vania-based chief investment officer of the Dallas-based chief investment off icer towards $1,300, while Societe Generale a note April 18. Last week, Vice President it’s ever used in combat on Islamic State while limited prices swings are proving the Penn Mutual Asset Management, which of Comerica Asset Management Group, recommends investors take long positions Mike Pence said North Korea shouldn’t positions in Afghanistan April 13, days metal’s worth as a haven as investors seek oversees $22bn. Gulf Times 6 Tuesday, April 25, 2017 BUSINESS

Nigeria to let market set naira rate on Goldman said to get burned exchange window

Bloomberg by debts in rare trading miss Lagos

Bloomberg ed client activity. The idea was that igeria’s central bank will let the market deter- New York by preserving its franchise, Gold- mine the naira’s rate in a new foreign-exchange man would build market share once Nwindow for portfolio investors as the nation markets revived. That’s what ana- struggles to revive its economy amid a dollar shortage. oldman Sachs Group’s lysts predicted would happen in the Naira forward contracts and banking stocks rose. fi xed-income revenue was fi rst quarter. Governor Godwin Emefi ele told senior bankers that Gso unexpectedly weak in the Expectations were heightened he would tolerate the naira weakening in the window, fi rst quarter that last week’s earn- after the company built up a repu- which started today, according to a person who at- ings report left the stock tumbling tation last year for its ability to tended meetings with the policy maker over the past and Wall Street buzzing over what profi t under the Volcker Rule. The two weeks. While that may cause the currency to de- happened. Part of the answer is regulation, passed after the fi nan- preciate to its black-market level, the central bank now emerging. cial crisis, broadly limits banks’ probably won’t devalue the interbank exchange rate, Traders got burned by a con- traders to handling client orders, the person said, declining to be identifi ed because he stellation of souring debts tied to rather than betting their own fi rm’s wasn’t authorised to speak publicly. a coal-mining giant and strug- money on future market prices. Isaac Okorafor, a spokesman for the central bank, gling mall retailers, as well as However, those lines can be blurry. didn’t answer calls to his mobile or immediately re- wagers linked to the US dollar, By the end of September, star spond to a text message. according to people familiar with junk bond trader Thomas Mala- Nigeria has suff ered from a dearth of foreign ex- the matter. The bank incurred fronte had generated about $250mn change after the price of oil, its main source of rev- tens of millions of dollars in losses for Goldman over nine months. enue, collapsed. While crude prices have since risen, on companies including Peabody Internally, the bank’s executives some investors say the central bank’s capital con- Energy Corp and Energy Future examined his transactions and trols and attempts to stop the naira from weakening Holdings Corp Borrowings from deemed them as comporting with are exacerbating the crisis. The nation’s economy retailers including Rue 21, Gym- the new rule. contracted last year for the fi rst time since 1991. boree Corp and Claire’s Stores But the fl ip side of such risk-tak- The naira has traded at around 315 per dollar on the also stung, the people said. ing can be the occasional fl ub. interbank, or spot, market since August. The black- The behind-the-scenes losses After enjoying several quarters market rate plummeted to a record 520 against the contributed to a disappointing of rising tides, distressed-debt in- greenback in February, but recovered to 390 after the profi t, announced April 18, that vestors – and the banks handling central bank sold $3bn to $4bn in forward contracts left analysts and shareholders puz- their trades – are starting to have a and on the spot market. zling about what went wrong. The tougher time. Some securities that Three-month non-deliverable forward contracts fi rm’s fi xed-income desks handling were profi table in 2016 have whip- on the naira rose 1.3% to 356.6 per dollar in Lagos, the bonds, currencies and commodi- Goldman Sachs headquarters is seen in New York. Goldman’s fixed-income revenue was so unexpectedly weak in the sawed, moving against Wall Street highest on a closing basis since March 6, suggesting ties generated $1.69bn in revenue, first quarter that last week’s earnings report left the stock tumbling and Wall Street buzzing over what happened. fi rms this year. Prices have slid on traders see the currency’s weakening about 12% in about $340mn below estimates bonds from strained energy com- that period. Six- month contracts rose 1.5% to 377.5. and barely higher than a year- solid profi ts fl owed in from “every- of confusion as rivals including “We specifi cally cited other areas panies and retailers, as well as other Nigeria’s banking sector stock index rose 2.2%, the earlier, which was the worst fi rst body else,” he said. Bank of America Corp and Mor- and factors as the primary reasons” ventures struggling with large debt most since January 9, with lenders’ earnings expected quarter this decade. Chief execu- Deputy chief financial officer gan Stanley cited it as an area of for the fi xed-income division’s burdens, such as radio broadcaster to be boosted by increased dollar liquidity. tive offi cer Lloyd Blankfein blamed Marty Chavez told analysts that strength. underperformance, said Michael iHeartMedia. The foreign-exchange window will be for bond the “operating environment,” but it clients were less active in trad- Under partner Adam Savarese, DuVally, a spokesman for the New Goldman Sachs held rough- and stock investors as well as exporters, the central was the same one that had helped ing commodities, currencies and who heads Goldman Sachs’s dis- York-based company. “In fact, the ly $200mn in Peabody bonds, bank said in a statement late on April 21. The Abuja- every major US rival post double- credits amid low volatility in tressed-debt desk, the bank load- distressed desk had a stronger per- about 10 times more than other based regulator said it “reserves the right to inter- digit increases. some markets. Goldman also has ed up on borrowings from energy formance this past quarter than major dealers, as the coal miner vene” in the window. “I’m still confused,” Brennan a different mix of clients, he said, companies and other beaten-down during the same period last year.” prepared earlier this year to exit The FMDQ OTC Securities Exchange, the La- Hawken, an analyst at UBS Group, with competitors boasting larger names, the people said, asking not For years, Goldman Sachs resist- bankruptcy protection, accord- gos-based trading platform, will publish the rate told Goldman Sachs executives lending books and more corporate to be named discussing the bank’s ed the banking industry’s broad re- ing to data from Securities and for the window, known as Nigerian Autonomous on a conference call to discuss re- customers. trading. Some positions ended up treat from fi xed-income trading as Exchange Commission filings Foreign Exchange Rate Fixing, or NAFEX, around sults. Beating last year’s numbers But for some investors, the com- incurring losses, hurting the unit’s fi rms struggled to maintain profi ts and a person with knowledge of noon each day. The first indicative rate yesterday should’ve been relatively easy, and ments on credit became a point revenue growth. in the face of stiff er rules and mut- the restructuring’s terms. was 372.89 per dollar.

CORPORATE RESULTS Reliance posts 12.8% rise in its fourth-quarter net profit

for employees. The company said it had earlier ers on a conference call. He highlighted “continued activity is catching up with the rig count, and we expected an 8 cents benefit. volatility in the markets in which we operate” but expect to see that relationship continue into next Sandvik stressed that “our HealthTech portfolio grew 3% quarter, most certainly,” interim Chief Financial Of- and achieved further operational improvements.” ficer Robb Voyles said on a post-earnings call. Engineering group Sandvik yesterday reported a Philips was best known for the manufacture of Halliburton’s long-time chief financial off icer, Mark first-quarter operating profit above market fore- lightbulbs, electrical appliances and television sets. McCollum, is taking up the role of chief executive at casts, supported by a recovery in its mining gear But it pulled out of these activities in face of fierce smaller rival Weatherford International. business which helped to drive a double-digit rise in competition from Asia to focus on health technol- US shale producers have been putting more rigs like-for-like orders. ogy such as computer tomography, and diagnostic to work, buoyed by oil prices that have stabilised The Swedish company, whose main rival is Atlas and molecular imaging. above $50 after a more than two-year slump. Copco, is benefiting from a pickup in mining invest- It also manufacturers such vital medical equipment And since the fourth quarter of 2016, oil producers ment in response to higher commodity prices and as defibrillators, as well as household appliances — have also returned to complete wells they had left a generally stronger global industrial demand from electrical and hi-tech toothbrushes to kitchen unfinished during the downturn on hopes of bring- backdrop. equipment. ing them online when prices rose. Operating profit at the Stockholm-based group rose The group, which sold its first lightbulb a few years Halliburton said yesterday it expects revenue in to 3.51bn Swedish crowns ($397.9mn) from 2.41bn after it was founded in 1891, listed its Philips Light- its completion and production unit to increase in a year ago, beating a 3.17bn mean forecast in a ing division at the end of May, netting proceeds of the upper teens in percentage terms in the second Reuters poll of analysts. €750mn. Philips further reduced its shareholding quarter, with margins expected to increase by 275- “We have a very strong quarter behind us,” Sandvik in Philips Lighting to 55%, selling a further 26mn 325 basis points. Chief Executive Bjorn Rosengren told conference shares on February 8. The company’s revenue from North America rose call with journalists. Shareholders had responded well, Van Houten 24.4% in the first quarter ended March 31. The company’s order intake increased to 24.9bn said.”It was always our strategy to participate in “North America activity increased rapidly during crowns, with like-for-like-growth of 16% year-on the value creation that Philips Lighting represents, the first quarter, which was highlighted by our US year, soundly ahead of a 22.8bn crown forecast. therefore we are not in a hurry to sell down our land revenue growth of nearly 30%, outperforming This outperformance was mainly due to 30% stake,” he said. the sequential average US land rig count growth of growth in Sandvik’s mining business, where the The stake would be sold down over the next two 27%,” Halliburton’s Chief Executive Dave Lesar said need for mining firms to replace equipment after years or so, he added, but refused to be drawn in a statement. several years of squeezed capital spending has about when the next tranche of shares would be However, Halliburton and larger rival Schlumberger Indian conglomerate Reliance Industries exceeded The company’s shares rose as much as 8.5% to begun to boost demand. released. have been burdened by the costs associated with estimates yesterday to post a 12.8% rise in its $104.14. Hasbro quarterly sales also overtook larger CEO Rosengren said Sandvik was currently seeing Halliburton reactivating idled equipment to meet the increase fourth-quarter net profit, boosted by higher mar- rival Mattel for the first time in 17 years. the strongest demand from customers mining gold, in demand. gins from its core business of oil refining. Hasbro’s results were in contrast to Mattel, which silver and zinc. Halliburton Co said yesterday that oil producers Halliburton’s reactivation costs are expected to The Mumbai-based firm owned by India’s wealthiest reported a bigger-than-expected quarterly loss and Manufacturing gauges in markets like China, are completing nearly as many wells as they are persist into the second quarter, President Jeff rey man, Mukesh Ambani, said standalone net profit drop in sales last week, hurt by poor demand by Europe and the United States have hit multi-year drilling, a major reversal from when companies left Miller said on the call. for the three months through March 31 rose to retailers for its Barbie and Fisher-Price brands and highs in recent months, adding to expectations wells unfinished in anticipation of higher oil prices. The company on Monday posted an adjusted profit Rs81.51bn ($1.26bn) from Rs72.27bn a year earlier. due to big discounts to move inventory left after of increased demand for Sandvik’s products also Increased demand for Halliburton’s pressure of 4 cents per share, edging past analysts’ average The figures surpassed projections from 16 analysts weak holiday sales. outside the mining industry. pumping and well-construction services helped estimate of 3 cents, according to Thomson Reuters surveyed by Bloomberg, who predicted around Hasbro’s sales have been on the rise, especially The group’s Machining Solutions division (SMS), the world’s No 2 oilfield services provider report I/B/E/S. Rs80.15bn. after it won a lucrative contract from Mattel for the world’s largest maker of metal-cutting tools, slightly better-than-expected quarterly profit and Revenue rose 1.9% to $4.28bn, inching past ana- “Operating profit was led by robust performance dolls based on Walt Disney Co’s princesses such as also beat both earnings and order forecasts for the revenue. lysts’ average estimate of $4.26bn, according to from petrochemicals business and sustained Cinderella and Frozen’s Elsa in 2014. quarter, and its North American business returned “There’s no doubt that the pace of completions Thomson Reuters I/B/E/S. strength in refining business,” Ambani said in a Total sales from Hasbro’s gaming category, which to growth after many quarters of declines. statement. “This was partially off set by losses in oil includes the high-margin digital gaming business SMS accounts for around 60% of Sandvik’s total and gas business due to lower volumes and weak and brands such as “Dungeons and Dragons”, rose operating profit, while the mining division accounts domestic price environment.” 10% to $253.3mn in the first quarter ended April 2. for about a third. Reliance said its gross refining margin — the profit The company’s digital gaming unit also includes Rosengren also said Sandvik had lined up two pos- earned from each barrel of crude — was up to $11.5 mobile game developer Backflip Studios, which it sible buyers for separate parts of its loss-making in the March quarter, an upward swing compared to bought in January. Mining Systems business and that Sandvik hoped previous quarters. It makes games such as “Transformers: Earth Wars” to close those deals during the second quarter. Refining margins are a key profitability gauge for and “Nerf Hoops”. Philips Reliance, one of the world’s largest refiners. “The (Backflip) business revenues have been accel- Reliance launched its 4G telecom services ‘Jio’ in erating as we brought onboard some new leader- Dutch electronics giant Philips yesterday posted a September 2016 off ering free service for the rest of ship and also, we see our brands like “Transformers: seven-fold leap in first quarter profits after spinning the year, followed by vastly cheaper data plans and Earth Wars” performing well,” Chief Executive Brian off its lighting business last year. free voice calls for life. Goldner said on a conference call. Net profit soared to €259mn ($281mn) in the first The audacious off er left rivals scrambling to com- Hasbro’s entertainment and licensing operating three months of 2017, compared with €37mn in the pete, and caused a rush towards consolidation in profit more than doubled to $11.3mn. same period last year. the multi-billion dollar Indian telco sector. The company said it expects sales in the coming The year-earlier figure had been down some 63%, Jio announced recently it had signed up 72mn new quarters to be boosted by upcoming films includ- due mainly to taxes linked to its eff orts to divest the subscribers. “In digital services, the Jio movement ing Marvel’s “Guardians of the Galaxy Vol 2”, to be lighting business. is set to transform India. released early next month, and “Transformers: The The Amsterdam-based group said sales also rose Jio is witnessing the largest migration from free to Last Knight”, to be released in June in the United to €5.7bn from January to March, up 3.6% over the paid services in history,” Ambani added. States. first quarter of 2016. Hasbro Revenue rose 2.2% to $849.7mn in the quarter. Growth was mostly due to sales of specialised Net income attributable to Hasbro rose to $68.6mn, medical equipment, up some 3%. Hasbro, the No 2 US toymaker, reported higher- or 54 cents per share, from $48.8mn, or 38 cents “We had a solid start to the year,” chief executive than-expected quarterly earnings as strong per share, a year earlier. Frans van Houten said. demand for digital games more than doubled profit Hasbro earned 43 cents per share, excluding an “As we become a clearer company there are less in its entertainment and licensing business, sending 11 cent benefit due to the adoption of a new ac- incidentals, so it is the absence of incidentals that its shares to a record high. counting standard governing stock compensation have actually increased the profit,” he told report- Gulf Times Tuesday, April 25, 2017 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 7.69 1.85 683,403 Boubyan Intl Industries Hold 21.50 0.00 1,000,850 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 18.07 2.50 764,664 Gulf Investment House Ksc 42.00 -2.33 1,784,610 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 20.12 3.13 1,810,693 Boubyan Bank K.S.C 405.00 -1.22 793,113 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 13.85 0.36 20,022 Ahli United Bank B.S.C 218.00 0.93 2,108,711 Bankmuscat Saog 0.40 -0.50 778,173 Saudi Printing & Packaging C 16.45 0.98 224,663 Osos Holding Group Co 140.00 4.48 20 Bank Sohar 0.15 0.69 1,672,740 Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 1.09 1,527,108 Saudi Paper Manufacturing Co 8.10 -2.41 2,012,635 Qurain Petrochemical Industr 335.00 0.00 192,353 Bank Dhofar Saog 0.23 0.00 - Alinma Bank 14.42 -0.48 16,621,968 Advanced Technology Co 1,100.00 0.00 5,025 Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 72.75 -0.68 174,955 Ekttitab Holding Co Sak 38.50 0.00 601,184 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 27.90 -1.06 255,250 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 23.03 -0.78 441,683 Real Estate Trade Centers Co 49.50 -1.00 45,650 Al-Hassan Engineering Co 0.05 0.00 13,000 Hsbc Amanah Saudi 20 Etf 27.70 0.00 - Acico Industries Co Kscc 280.00 -3.45 33,905 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 18.03 -0.61 646,880 Kipco Asset Management Co 94.00 -1.05 7,850 Al-Anwar Ceramic Tiles Co 0.14 -0.70 64,299 Falcom Petrochemical Etf 26.70 0.00 65 National Petroleum Services 1,520.00 7.04 196,959 Al Suwadi Power 0.18 0.00 - Zad Holding Co 88.60 0.00 - Saudi United Cooperative Ins 27.52 0.26 274,899 Alimtiaz Investment Co Kscc 172.00 -2.27 6,780,312 Al Shurooq Inv Ser 1.04 0.00 - Widam Food Co 64.00 -2.14 81,784 Bank Al-Jazira 11.86 -0.17 1,402,551 Ras Al Khaimah White Cement 98.00 0.00 210 Al Sharqiya Invest Holding 0.11 -0.88 44,000 Vodafone Qatar 9.51 -0.21 1,854,146 Al Rajhi Bank 63.21 -0.06 1,281,128 Kuwait Reinsurance Co Ksc 194.00 0.00 500 Al Maha Petroleum Products M 1.44 0.00 - United Development Co 19.19 0.63 138,370 Samba Financial Group 21.17 0.71 174,164 Kuwait & Gulf Link Transport 60.00 -3.23 90,500 Al Maha Ceramics Co Saoc 0.40 -2.44 61,762 Salam International Investme 10.45 -0.10 49,700 United Electronics Co 34.94 -0.88 335,834 Human Soft Holding Co Ksc 3,780.00 2.72 300,100 Al Madina Takaful Co Saoc 0.10 0.00 2,350,577 Qatar & Oman Investment Co 9.66 -0.41 5,400 Allied Cooperative Insurance 13.10 1.63 443,152 Automated Systems Co Kscc 265.00 3.92 155 Al Madina Investment Co 0.07 1.49 349,750 Qatar Navigation 70.70 -1.67 75,869 Malath Insurance 21.88 3.40 542,260 Metal & Recycling Co 76.00 0.00 1,800 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 78.50 -0.25 4,481 Alinma Tokio Marine 17.34 0.64 471,462 Gulf Franchising Holding Co 62.00 5.08 2,000 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 146.00 -0.68 90,102 Arabian Shield Cooperative 54.89 2.62 247,117 Al-Enma’a Real Estate Co 42.50 -1.16 1,019,400 Al Jazeera Steel Products Co 0.24 1.27 58,600 Qatar Islamic Insurance 58.00 -1.69 249 Savola 42.80 -0.65 136,376 National Mobile Telecommuni 1,180.00 1.72 250 Al Jazeera Services 0.16 -0.63 10,000 Qatar Industrial Manufactur 42.90 -0.12 6,655 Wafrah For Industry And Deve 22.86 2.05 223,443 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 0.00 47,000 Qatar International Islamic 62.60 -0.63 55,727 Fitaihi Holding Group 12.23 0.25 151,963 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 60.00 0.00 35,425 Tourism Enterprise Co/ Shams 30.20 0.23 89,104 Al Salam Group Holding Co 48.50 1.04 1,715,505 Al Batinah Power 0.17 0.00 6,850 Qatar Islamic Bank 100.80 0.80 25,531 Sahara Petrochemical Co 14.67 -0.68 571,790 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 20.10 -2.00 920,769 Herfy Food Services Co 80.50 -0.31 50,233 Al Aman Investment Company 50.00 0.00 20,202 Al Batinah Dev & Inv 0.09 0.00 14,000 Qatar General Insurance & Re 39.10 0.00 - Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.20 -0.49 123,514 Qatar German Co For Medical 9.55 0.95 48,517 Manazel Holding 54.00 -3.57 1,287,106 Ahli Bank 0.19 -1.58 300,000 Qatar Fuel Qsc 133.80 -0.30 19,679 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.79 0.00 - Qatar First Bank 8.62 0.58 148,664 KUWAIT Tijara And Real Estate Inves 60.00 0.00 5,905 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 209.00 0.63 25,873 Kuwait Building Materials 156.00 0.00 45 A’saff a Foods Saog 0.59 0.00 - Qatar Cinema & Film Distrib 36.30 10.00 796 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 570.00 0.00 25,515 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 70.60 0.14 19,318 Commercial Real Estate Co 78.00 0.00 177,369 Ooredoo Qsc 103.10 -2.27 88,542 Securities Group Co 99.00 0.00 30 Future Communications Co 0.00 0.00 - National Leasing 17.36 -0.91 146,106 Sultan Center Food Products 67.00 0.00 379,176 National International Co 64.00 -1.54 42,700 Mazaya Qatar Real Estate Dev 13.35 -0.82 465,779 Kuwait Foundry Co Sak 290.00 0.00 11,000 Taameer Real Estate Invest C 41.00 -2.38 6,335,371 UAE Mesaieed Petrochemical Holdi 14.65 -0.34 50,377 Kuwait Financial Centre Sak 106.00 0.00 65,005 Gulf Cement Co 83.00 -5.68 50,000 Al Meera Consumer Goods Co 159.00 -1.24 29,501 Ajial Real Estate Entmt 170.00 0.00 500 Heavy Engineering And Ship B 226.00 -0.88 11,936 Company Name Lt Price % Chg Volume Medicare Group 98.00 -2.00 92,783 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 78.50 0.00 2,372 Kuwait Finance & Investment 49.50 -2.94 1,500 National Real Estate Co 102.00 2.00 1,031,781 Waha Capital Pjsc 1.78 0.00 - Masraf Al Rayan 41.85 0.00 116,228 National Industries Co Ksc 214.00 0.00 102 Al Safat Energy Holding Comp 44.50 0.00 10,632 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 14.56 0.07 49,218 Kuwait Real Estate Holding C 42.00 -3.45 1,944,740 Kuwait National Cinema Co 1,400.00 0.00 6,004 United Arab Bank Pjsc 1.56 0.00 - Industries Qatar 105.40 -1.13 250,750 Securities House/The 49.50 -1.00 689,070 Danah Alsafat Foodstuff Co 89.00 1.14 18,000 Union National Bank/Abu Dhab 5.00 -2.72 280,539 Islamic Holding Group 63.40 -2.16 18,933 Boubyan Petrochemicals Co 580.00 -1.69 10,276 Independent Petroleum Group 400.00 0.00 4,959 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 51.70 0.19 242 Al Ahli Bank Of Kuwait 310.00 0.00 662 Kuwait Real Estate Co Ksc 63.00 -1.56 710,000 Union Cement Co 1.20 0.00 - Gulf International Services 25.85 -0.19 118,462 Ahli United Bank (Almutahed) 415.00 1.22 33,652 Salhia Real Estate Co Ksc 375.00 0.00 2,500 Umm Al Qaiwain Cement Indust 1.78 0.00 - Ezdan Holding Group 15.33 -0.07 1,097,233 National Bank Of Kuwait 680.00 0.00 1,391,839 Gulf Cable & Electrical Ind 450.00 -1.10 772,399 Sharjah Islamic Bank 1.38 -0.72 207,013 Doha Insurance Co 16.55 -4.83 396 Commercial Bank Of Kuwait 425.00 0.00 855 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 31.15 0.97 100,537 Kuwait International Bank 248.00 -2.75 3,553,444 Kuwait Finance House 500.00 1.01 8,639,063 Sharjah Group 1.49 0.00 - Dlala Holding 23.90 4.14 1,317,523 Gulf Bank 248.00 0.00 357,064 Gulf North Africa Holding Co 38.50 -1.28 115,570 Sharjah Cement & Indus Devel 1.10 0.00 - Commercial Bank Qsc 29.75 0.17 67,693 Al-Massaleh Real Estate Co 54.00 1.89 643,206 Hilal Cement Co 208.00 0.00 14,842 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 34.50 -0.29 305,544 Al Arabiya Real Estate Co 36.00 -2.70 605,197 Osoul Investment Kscc 63.00 0.00 124,718 Ras Al Khaimah White Cement 1.08 0.00 - Al Khaleej Takaful Group 20.50 7.05 30 Kuwait Remal Real Estate Co 71.00 1.43 1,980,500 Gulf Insurance Group Ksc 550.00 0.00 500 Ras Al Khaimah Ceramics 2.30 -0.86 1,294,998 Aamal Co 13.80 -1.43 15,783 Alkout Industrial Projects C 700.00 0.00 1,000 Kuwait Food Co (Americana) 2,460.00 2.50 15,002 Ras Al Khaimah Cement Co Psc 0.85 0.00 1,889 Al Ahli Bank 35.45 0.00 - A’ayan Real Estate Co Sak 86.00 0.00 205,009 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.70 0.00 - Investors Holding Group Co.K 26.00 -1.89 1,869,177 Aayan Leasing & Investment 49.50 2.06 7,785,825 Rak Properties 0.59 -1.67 2,454,390 Al-Mazaya Holding Co 116.00 0.00 807,210 Alrai Media Group Co Ksc 176.00 1.15 4,861 Ooredoo Qsc 101.00 12.22 3,500 SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - National Investments Co 104.00 0.00 710,110 Oman & Emirates Inv(Emir)50% 0.86 0.00 - Gulf Petroleum Investment 45.00 -2.17 4,515,520 Commercial Facilities Co 162.00 -1.22 25,000 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 820.00 1.23 1,111,262 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.58 - City Group 0.00 0.00 - Afaq Educational Services Co 160.00 0.00 18 National Marine Dredging Co 4.05 -10.00 3,000 United Wire Factories Compan 20.38 -0.44 460,233 Inovest Co Bsc 104.00 0.00 399,295 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.52 0.00 - Etihad Etisalat Co 21.01 -6.08 5,023,229 Kuwait Gypsum Manufacturing 95.00 0.00 100 Yiaco Medical Co. K.S.C.C 216.00 10.20 41,000 National Corp Tourism & Hote 2.90 0.00 - Dar Al Arkan Real Estate Dev 6.10 -1.61 29,450,132 Al-Deera Holding Co 36.00 -1.37 288,762 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 3.10 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 335.00 0.00 250 National Bank Of Ras Al-Khai 4.70 -1.05 66,000 Rabigh Refining And Petroche 13.72 0.88 2,907,939 Mena Real Estate Co 0.00 0.00 - National Bank Of Fujairah 3.21 0.00 - Banque Saudi Fransi 26.17 0.11 127,951 National Slaughter House 40.00 0.00 6,404 National Bank Of Abu Dhabi 11.05 1.38 3,308,523 Saudi Enaya Cooperative Insu 16.79 1.76 156,604 Amar Finance & Leasing Co 57.00 0.00 500 OMAN Methaq Takaful Insurance 0.81 0.00 1,110,316 Manazel Real Estate Pjsc 0.54 0.00 4,829,482 Mediterranean & Gulf Insuran 20.22 1.35 365,771 United Projects For Aviation 690.00 -6.76 2,007 Company Name Lt Price % Chg Volume Saudi British Bank 22.08 0.82 138,772 National Consumer Holding Co 90.00 4.65 78,300 Invest Bank 2.40 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 70.00 1.45 126,216 Voltamp Energy Saog 0.46 0.00 7,340 Intl Fish Farming Co Pjsc 1.57 -1.26 440,818 Red Sea International Co 25.78 1.22 32,399 Jeeran Holdings 45.00 0.00 23,275 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.75 0.00 - Takween Advanced Industries 12.15 0.08 546,024 Equipment Holding Co K.S.C.C 56.00 0.00 1,335,000 United Power Co Saog 3.25 -4.41 8,781 Gulf Pharmaceutical Ind Psc 2.50 3.31 102,183 Sabb Takaful 27.58 0.18 227,889 Nafais Holding 150.00 0.00 5,008 United Finance Co 0.14 0.00 - Gulf Medical Projects 3.00 0.00 - Saudi Arabian Fertilizer Co 68.56 0.45 107,739 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.01 0.00 24,000 National Gypsum 13.60 0.00 53,048 Arkan Al Kuwait Real Estate 83.00 0.00 100,000 Takaful Oman 0.18 0.00 2,000 Fujairah Cement Industries 0.91 0.00 - Saudi Ceramic Co 28.31 -1.70 170,519 Gfh Financial Group Bsc 184.00 0.00 84,981 Taageer Finance 0.11 0.00 95,430 Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 34.11 0.32 61,624 Energy House Holding Co Kscp 43.00 -1.15 99,850 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.50 0.00 - Saudi Pharmaceutical Industr 34.56 -1.06 74,163 Kuwait Slaughter House Co 188.00 0.00 5,000 Sohar Power Co 0.17 -8.11 112,931 First Gulf Bank 12.90 0.00 10,031,354 Thimar 34.77 -0.34 131,416 Kuwait Co For Process Plant 174.00 0.00 941 Sohar Poultry 0.21 0.00 - Finance House 1.65 0.00 - National Industrialization C 16.86 -0.18 713,189 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.70 0.00 - Eshraq Properties Co Pjsc 1.10 -4.35 32,795,088 Saudi Transport And Investme 0.00 0.00 - National Ranges Company 29.00 0.00 697,340 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.65 -0.28 687,511 Saudi Electricity Co 23.19 0.39 697,162 Al-Themar Real International 90.00 0.00 14,686 Shell Oman Marketing 1.88 0.00 - Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 33.52 0.00 83,271 Al-Ahleia Insurance Co Sakp 480.00 -5.88 8,860 Sharqiyah Desalination Co Sa 4.35 0.00 - Emirates Driving Company 8.10 0.00 - Arriyadh Development Company 20.60 -0.72 171,967 Wethaq Takaful Insurance Co 55.00 0.00 600 Sembcorp Salalah Power & Wat 0.24 0.42 415,380 Dana Gas 0.44 0.00 2,158,603 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 64.00 -4.48 248,374 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.75 10.76 1,000 Saudi Research And Marketing 27.10 0.63 96,206 Aqar Real Estate Investments 82.00 0.00 10,000 Salalah Mills Co 1.39 0.00 - Bank Of Sharjah 1.39 -0.71 60,000 Aldrees Petroleum And Transp 27.00 2.43 648,345 Hayat Communications 89.00 -2.20 149,140 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.73 10.61 25,000 Saudi Vitrified Clay Pipe Co 58.40 -2.28 69,464 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.66 0.00 778,667 Jarir Marketing Co 138.34 0.97 137,779 Soor Fuel Marketing Co Ksc 124.00 0.00 38,786 Renaissance Services Saog 0.22 0.00 - Alkhaleej Investment 1.20 -0.83 195 Arab National Bank 19.69 -0.20 84,403 Alargan International Real 188.00 0.00 50 Raysut Cement Co 1.15 -0.43 11,000 Aldar Properties Pjsc 2.10 -0.47 11,657,548 Yanbu National Petrochemical 58.81 0.44 250,475 Burgan Co For Well Drilling 90.00 0.00 160,000 Port Service Corporation 0.23 0.00 42,500 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 35.97 -0.66 78,690 Kuwait Resorts Co Kscc 78.00 -3.70 626,005 Phoenix Power Co Saoc 0.14 0.00 98,570 Al Khazna Insurance Co 0.40 0.00 - Middle East Specialized Cabl 6.64 2.15 678,890 Oula Fuel Marketing Co 124.00 0.00 54,502 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 18.74 0.92 91,506 Palms Agro Production Co 104.00 0.00 205,440 Ooredoo 0.51 -0.39 327,513 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Al Sagr Co-Operative Insuran 37.62 0.08 175,257 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.51 0.00 48,848 Al Buhaira National Insuranc 2.39 0.00 - Trade Union Cooperative Insu 19.21 1.16 170,586 Mubarrad Transport Co 78.00 0.00 215,435 Oman United Insurance Co 0.38 0.00 100,000 Al Ain Ahlia Ins. Co. 50.00 0.00 - Arabia Insurance Cooperative 12.84 2.15 433,524 Al Mowasat Health Care Co 310.00 0.00 20 Oman Textile Holding Co Saog 0.75 -1.57 22,400 Agthia Group Pjsc 6.25 0.00 79,546 Saudi Chemical Company 33.06 -0.42 53,159 Shuaiba Industrial Co 350.00 0.00 10,002 Oman Telecommunications Co 1.30 -0.38 135,402 Abu Dhabi Ship Building Co 2.99 0.00 - Fawaz Abdulaziz Alhokair & C 32.00 9.97 652,511 Hits Telecom Holding 45.50 -2.15 1,793,519 Oman Refreshment Co 2.16 0.00 - Abu Dhabi Natl Co For Buildi 0.52 -3.70 1,867 Bupa Arabia For Cooperative 116.30 -0.17 28,926 First Takaful Insurance Co 57.00 3.64 7,620 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 5.15 0.00 - Wafa Insurance 14.97 2.32 852,051 Kuwaiti Syrian Holding Co 40.00 0.00 870,304 Oman Orix Leasing Co. 0.12 0.00 - Abu Dhabi National Insurance 3.00 0.00 - Jabal Omar Development Co 67.75 -0.34 117,422 National Cleaning Company 50.00 0.00 100,500 Oman Oil Marketing Company 1.66 0.00 - Abu Dhabi National Hotels 3.00 0.00 - Saudi Basic Industries Corp 97.68 0.01 2,120,185 Eyas For High & Technical Ed 400.00 0.00 40,000 Oman National Engineering An 0.15 0.00 - Abu Dhabi National Energy Co 0.62 3.33 7,369,879 Saudi Kayan Petrochemical Co 8.76 -0.34 5,270,792 United Real Estate Company 95.00 -1.04 81,005 Oman Investment & Finance 0.22 0.00 225,000 Abu Dhabi Islamic Bank 3.56 -0.84 395,217 Etihad Atheeb Telecommunicat 9.14 -2.56 645,376 Agility 610.00 0.00 621,369 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 95.97 3.90 171,577 Kuwait & Middle East Fin Inv 30.00 -3.23 58,053 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 19.60 -0.76 139,516 Fujairah Cement Industries 90.00 -3.23 29,000 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 12.42 1.80 141,955 Livestock Transport & Tradng 204.00 -2.86 15,283 Oman Flour Mills 0.93 -1.27 20,000 BAHRAIN Gulf General Cooperative Ins 16.94 2.05 146,217 International Resorts Co 35.00 -5.41 1,874,060 Oman Fisheries Co 0.13 -4.35 1,378,235 Basic Chemical Industries 25.17 0.08 193,694 National Industries Grp Hold 116.00 0.00 1,067,709 Oman Fiber Optics 4.57 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 1.70 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 16.12 157,457 60.00 59,950 Zain Bahrain Bscc 0.10 0.00 40,000 Buruj Cooperative Insurance 0.66 Warba Insurance Co 2.22 Oman Education & Training In 0.15 0.00 - 30.70 421,116 92.00 135,766 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 0.66 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 143.89 49,934 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.46 First Dubai Real Estate Deve -3.33 Oman Chlorine 0.49 0.00 - 56.21 21,645 58.00 1,192,497 United Gulf Bank 0.39 0.00 26,959 Maadaniyah -0.22 Al Arabi Group Holding Co -1.92 Oman Ceramic Company 0.42 0.00 - 22.85 76,350 102.00 40 Trafco Group Bsc 0.25 0.00 10,000 Yamama Cement Co -2.00 Kuwait Hotels Sak 0.00 Oman Cement Co 0.46 -0.87 60,093 18.09 231,375 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 1.13 Mobile Telecommunications Co 0.00 Oman Cables Industry 1.65 0.00 - 14.30 1,132,140 450.00 2,480,232 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.13 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 29.90 50,776 0.00 - Seef Properties 0.24 0.00 100,000 Alujain Corporation (Alco) 0.09 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.11 1.82 90,806 22.40 536,351 425.00 206 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.42 Al Mudon Intl Real Estate Co -2.13 Natl Aluminium Products 0.16 0.00 - 11.99 398,528 46.00 4,833,104 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 1.60 Kuwait Cement Co Ksc 0.00 National Securities 0.05 0.00 - 12.67 243,464 520.00 416 National Bank Of Bahrain Bsc 0.66 -0.75 10,895 Qassim Cement/The 0.76 Sharjah Cement & Indus Devel -1.10 National Real Estate Develop 5.00 0.00 - 50.55 34,898 90.00 1,160,533 Nass Corp Bsc 0.15 0.00 207,715 Saudi Advanced Industries 0.45 Kuwait Portland Cement Co -3.06 National Pharmaceutical 0.11 0.00 - 13.36 188,025 950.00 13,876 Khaleeji Commercial Bank 0.12 1.72 100,000 Kingdom Holding Co 0.98 Educational Holding Group 8.77 National Mineral Water 0.05 0.00 - 10.35 97,808 310.00 493,916 Ithmaar Holding Bsc 0.16 3.23 164,000 Saudi Arabian Amiantit Co 1.22 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 6.64 494,319 0.00 - Investcorp Bank -$Us 8.50 0.00 9,500 Al Jouf Agriculture Developm -0.91 Asiya Capital Investments Co -1.27 National Gas Co 0.42 0.00 - 30.52 50,160 39.00 254,000 Inovest Co Bsc 0.28 0.00 24,000 Saudi Industrial Development 0.94 Kuwait Investment Co -1.96 National Finance Co 0.15 0.00 - 11.81 484,688 100.00 33,500 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank -1.36 National Detergent Co Saog 0.66 0.00 236,500 69.75 - 310.00 520,919 Gulf Hotel Group B.S.C 0.53 -3.64 23,472 Riyad Bank 0.48 Kuwait Projects Co Holdings 0.00 National Biscuit Industries 3.75 0.00 - 10.40 561,304 415.00 161,500 Gfh Financial Group Bsc 0.62 0.00 15,149 The National Agriculture Dev -1.32 Al Madina For Finance And In -1.01 National Bank Of Oman Saog 0.23 -0.44 486,202 31.28 492,599 49.00 95,010 Esterad Investment Co B.S.C. 0.13 0.00 37,024 Halwani Bros Co -0.04 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.08 0.00 - 49.87 26,117 248.00 6,394 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 0.26 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.86 0.00 - 15.55 133,404 78.00 20,000 Bmmi Bsc 0.82 0.00 50,000 Eastern Province Cement Co 1.11 Intl Financial Advisors -3.41 Muscat Gases Company Saog 0.56 0.00 - 27.30 30,454 42.50 7,166,358 Bmb Investment Bank 0.05 0.00 61,091,823 Al Gassim Investment Holding 0.00 First Investment Co Kscc 1.03 Muscat Finance 0.12 0.00 96,700 0.00 - 49.00 2,894,774 Bbk Bsc 0.39 -1.52 120,000 Filing & Packing Materials M 1.25 Al Mal In 0.00 Majan Glass Company 0.19 0.00 - 34.72 83,621 vestment Company 20.00 1,879,051 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 0.00 Majan College 0.51 0.00 - 5.75 - Bayan Investment Co Kscc 49.00 202,002 Banader Hotels Co 0.07 -7.14 57,832 Tihama Advertising & Public -0.98 0.00 Hsbc Bank Oman 0.13 0.00 18,000 41.38 347,341 Egypt Kuwait Holding Co Sae 192.00 95,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.24 0.00 Hotels Management Co Interna 1.25 0.00 - 12.68 178,169 Coast Investment Development 45.00 194,065 Bahrain Telecom Co 0.26 0.00 162,129 Astra Industrial Group 0.25 0.00 Gulf Stone 0.12 0.00 - 16.18 64,840 Privatization Holding Compan 52.00 52,076 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co -1.28 0.00 Gulf Plastic Industries Co 0.00 0.00 - 15.44 1,270,551 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.38 2.70 5,000 Taiba Holding Co -0.31 0.00 Gulf Mushroom Company 0.31 0.00 - 44.76 76,768 Injazzat Real State Company 93.00 6,000 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co 0.56 0.00 Gulf Investments Services 0.11 -1.87 115,100 30.80 88,667 Kuwait Cable Vision Sak 0.00 - Bahrain Islamic Bank 0.15 0.00 30,000 Saudi Real Estate Co 0.00 0.00 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 20.51 81,972 Sanam Real Estate Co Kscc 55.00 15 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -0.98 0.00 Gulf International Chemicals 0.24 0.00 25,000 127.98 29,725 Ithmaar Holding Bsc 48.50 14,718,660 Bahrain Family Leisure Co 0.08 -4.76 150,000 National Shipping Co Of/The 0.93 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 35.74 538,079 Aviation Lease And Finance C 250.00 53,200 Bahrain Duty Free Complex 0.77 0.00 17,000 Methanol Chemicals Co 1.17 0.00 Global Fin Investment 0.17 0.00 - 6.93 745,086 Arzan Financial Group For Fi 37.50 1,522,352 Bahrain Commercial Facilitie 0.69 0.00 9,000 Ace Arabia Cooperative Insur 9.74 0.00 Galfar Engineering&Contract 0.08 1.28 684,421 49.93 1,310,873 Ajwan Gulf Real Estate Co 80.00 102,005 Bahrain Cinema Co 1.30 4.00 3,500 Mobile Telecommunications Co 2.85 -3.77 Galfar Engineering -Prefer 0.39 0.00 - 10.47 5,612,714 Kuwait Business Town Real Es 51.00 514,005 Bahrain Car Park Co 0.14 0.00 16,500 Saudi Arabian Coop Ins Co 2.61 0.00 Financial Services Co. 0.11 0.00 - 22.80 562,787 Future Kid Entertainment And 124.00 505 Arab Insurance Group(Bsc)-$ 0.47 0.00 50,000 Axa Cooperative Insurance 2.84 -1.12 Financial Corp/The 0.10 0.00 - 22.47 908,496 Specialities Group Holding C 88.00 607,829 Arab Banking Corp Bsc-$Us 0.32 0.00 100,000 Alsorayai Group 2.09 0.00 Dhofar University 1.49 0.00 - 9.29 903,330 Abyaar Real Eastate Developm 26.50 4,206,862 Aluminium Bahrain Bsc 0.43 0.00 167,500 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 19.39 - Dar Al Thuraya Real Estate C 204.00 10 Albaraka Banking Group 0.45 0.00 20,000 Bank Albilad 0.65 0.00 Dhofar Poultry 0.18 0.00 - 18.69 529,992 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.10 0.00 175,000 Al-Hassan G.I. Shaker Co 1.36 -1.49 Dhofar Intl Development 0.30 0.00 320 15.66 159,062 Kgl Logistics Company Kscc 66.00 114,100 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co 1.76 -3.45 Dhofar Insurance 0.21 0.00 - 28.40 197,470 Combined Group Contracting 560.00 1,127,593 Ahli United Bank B.S.C 0.71 0.00 263,064 Abdullah Al Othaim Markets 109.77 -0.28 27,345 Zima Holding Co Ksc 56.00 1.82 680,000 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 11.19 0.90 430,838 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Tuesday, April 25, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 20,750.12 +202.36 Apple Inc 143.66 0.98 7,672,744 S&P 500 Index 2,370.29 +21.60 Microsoft Corp 67.22 1.24 12,806,059 Nasdaq Composite Index 5,974.76 +64.24 Exxon Mobil Corp 80.97 0.34 3,735,239 S&P/Tsx Composite Index 15,722.18 +107.70 Johnson & Johnson 122.57 0.66 1,962,593 Mexico Bolsa Index 49,463.30 +495.47 General Electric Co 29.57 0.05 22,766,213 Brazil Bovespa Stock Idx 64,576.86 +816.24 Jpmorgan Chase & Co 87.71 3.77 12,542,603 Ftse 100 Index 7,264.68 +150.13 Procter & Gamble Co/The 89.32 0.79 2,421,365 Cac 40 Index 5,268.85 +209.65 Wal-Mart Stores Inc 74.60 -0.45 2,973,181 Dax Index 12,454.98 +406.41 Verizon Communications Inc 47.13 -0.26 9,560,583 Ibex 35 Tr 10,766.80 +389.80 Pfizer Inc 33.80 0.46 8,644,487 Nikkei 225 18,875.88 +255.13 Visa Inc-Class A Shares 91.53 0.41 5,078,068 Japan Topix 1,503.19 +14.61 Chevron Corp 105.55 0.63 2,002,826 Hang Seng Index 24,139.48 +97.46 Coca-Cola Co/The 43.30 0.52 7,204,136 All Ordinaries Indx 5,900.72 +15.07 Intel Corp 36.67 0.95 7,803,355 Nzx All Index 1,326.34 +4.53 Merck & Co. Inc. 62.22 0.53 3,067,124 Bse Sensex 30 Index 29,655.84 +290.54 Cisco Systems Inc 33.16 1.02 5,730,312 Nse S&P Cnx Nifty Index 9,217.95 +98.55 Home Depot Inc 151.31 0.87 1,844,205 Straits Times Index 3,144.03 +4.20 Intl Business Machines Corp 160.76 0.23 2,147,936 Karachi All Share Index 34,110.24 +326.56 Walt Disney Co/The 114.05 -0.35 2,421,523 Jakarta Composite Index 5,664.48 +69.17 Unitedhealth Group Inc 171.98 0.48 1,082,278 3M Co 193.54 1.07 907,623 Mcdonald’s Corp 134.54 0.85 1,807,496 Nike Inc -Cl B 55.73 -0.21 2,754,086 TOKYO United Technologies Corp 115.82 0.72 1,162,784 Boeing Co/The 182.01 0.90 1,162,356 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 224.46 3.50 3,264,469 Rakuten Inc 1,170.50 2.23 7,650,900 American Express Co 80.48 1.12 1,232,671 Kyocera Corp 6,014.00 0.84 1,098,300 Du Pont (E.I.) De Nemours 79.76 1.41 767,020 Nissan Motor Co Ltd 1,039.50 0.34 9,700,500 Caterpillar Inc 96.69 2.51 2,738,571 Hitachi Ltd 583.60 -0.65 13,879,000 Travelers Cos Inc/The 119.90 0.67 592,541 Takeda Pharmaceutical Co Ltd 5,318.00 0.64 1,740,300 Jfe Holdings Inc 1,827.50 -1.59 5,130,900 Traders work at the Frankfurt Stock Exchange. Germany’s blue-chip share index, the DAX, rose 3.4% to 12,454.98 points Ana Holdings Inc 333.00 1.52 10,053,000 yesterday. FTSE 100 Mitsubishi Electric Corp 1,486.50 -0.80 11,027,000 Sumitomo Mitsui Financial Gr 4,052.00 1.30 7,396,200 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,165.00 1.61 4,457,700 Fast Retailing Co Ltd 36,410.00 3.70 1,037,900 Wpp Plc 1,719.00 1.48 3,341,614 Ms&Ad Insurance Group Holdin 3,514.00 0.09 1,430,500 Worldpay Group Plc 299.70 0.44 7,966,911 Kubota Corp 1,680.00 1.14 3,632,900 Wolseley Plc 4,927.00 2.67 617,243 Seven & I Holdings Co Ltd 4,563.00 0.55 1,913,100 Wm Morrison Supermarkets 231.40 0.04 9,842,267 Inpex Corp 1,051.00 0.05 3,797,400 Europe stocks jump as Macron Whitbread Plc 4,307.00 2.45 1,003,870 Resona Holdings Inc 594.50 0.37 9,371,000 Vodafone Group Plc 202.60 1.94 56,627,508 Asahi Kasei Corp 1,044.50 0.19 2,203,000 United Utilities Group Plc 982.50 0.72 3,030,073 Kirin Holdings Co Ltd 2,121.50 0.78 2,408,700 Unilever Plc 4,021.00 2.12 2,807,467 Marubeni Corp 655.90 -0.09 6,692,400 Tui Ag-Di 1,144.00 3.53 1,309,464 favoured for presidential win Mitsubishi Ufj Financial Gro 688.00 1.42 67,182,100 Travis Perkins Plc 1,583.00 0.19 959,340 Mitsubishi Chemical Holdings 846.60 0.30 4,581,700 Tesco Plc 176.95 1.81 24,497,703 Fanuc Corp 22,790.00 1.81 980,800 Taylor Wimpey Plc 202.00 0.95 13,760,846 analyst at IG trading group. “The move mood may fizzle out by the time of Daito Trust Construct Co Ltd 16,220.00 0.59 292,700 AFP Standard Life Plc 366.20 1.72 7,212,431 back into risk assets means the chief the second election round in two Otsuka Holdings Co Ltd 5,184.00 1.83 939,000 London Standard Chartered Plc 718.50 4.75 8,783,535 Oriental Land Co Ltd 6,597.00 1.40 812,000 losers have been the likes of gold and weeks’ time and a parliamentary vote St James’s Place Plc 1,115.00 2.67 1,680,795 Sekisui House Ltd 1,834.00 0.77 3,533,500 the Japanese yen, with stock markets in June. Sse Plc 1,417.00 -1.94 7,509,364 Secom Co Ltd 7,967.00 1.50 558,300 urope’s stock markets and the moving sharply higher.” “Our optimism is a bit muted,” said Smith & Nephew Plc 1,261.00 1.86 2,611,286 Tokio Marine Holdings Inc 4,614.00 0.02 2,223,900 Sky Plc 985.00 0.56 2,854,905 euro surged yesterday, breath- The price of gold fell by more than Stefan Kreuzkamp at CIO Deutsche Aeon Co Ltd 1,658.00 1.53 2,307,900 Shire Plc 4,564.00 1.48 1,913,996 ing a sigh of relief after moder- one per cent on the day. Asset Management. “A lot depends on Mitsui & Co Ltd 1,525.00 0.23 5,056,100 E Severn Trent Plc 2,343.00 0.99 972,912 ate candidate Emmanuel Macron won “Emmanuel Macron winning the the outcome of the parliamentary elec- Kao Corp 6,134.00 -0.07 1,500,500 Schroders Plc 3,142.00 2.38 440,110 the fi rst round of France’s presidential fi rst round of the French presidential tion and how this outcome supports Dai-Ichi Life Holdings Inc 1,833.00 0.36 5,945,500 Sainsbury (J) Plc 271.40 2.03 9,913,975 Mazda Motor Corp 1,550.50 0.88 5,809,300 election and looked set to triumph in election sent markets into ecstasy,” Macron’s mandate.” Sage Group Plc/The 655.50 0.08 3,948,270 Komatsu Ltd 2,728.50 -1.28 5,566,400 next month’s run-off against far-right said Jasper Lawler, Senior market Ana- But in the meantime enthusiasm was Sabmiller Plc 0.00 0.00 - West Japan Railway Co 7,360.00 1.20 604,800 candidate Marine Le Pen. lyst at LCG. rampant. Rsa Insurance Group Plc 592.50 3.40 2,966,536 Murata Manufacturing Co Ltd 14,395.00 1.12 650,100 Royal Mail Plc 418.10 1.16 2,638,162 Germany’s blue-chip share index, Banking stocks, in particular, took “Bullishness has returned to equi- Kansai Electric Power Co Inc 1,453.50 -0.31 4,593,300 Royal Dutch Shell Plc-B Shs 2,100.00 2.12 4,976,814 the DAX, hit an all-time peak as stock off , with some fi nancials, like Societe ties,” said Mike van Dulken, Head of Denso Corp 4,844.00 0.96 1,440,500 Royal Dutch Shell Plc-A Shs 2,033.00 2.03 5,434,832 markets across Europe pushed sharply Generale and Credit Agricole in Paris, Research at Accendo markets. Sompo Holdings Inc 4,033.00 0.77 882,900 Royal Bank Of Scotland Group 249.30 3.96 18,673,523 Daiwa House Industry Co Ltd 3,294.00 1.67 1,909,700 higher and most of the world’s other posting double-digit intraday gains, he Yesterday’s gains in Asia extended a Rolls-Royce Holdings Plc 810.00 0.43 4,000,178 Jxtg Holdings Inc 483.30 -0.64 12,807,100 equity markets were also fi rmly in the said. rally that was built on comments from Rio Tinto Plc 3,112.50 1.77 3,693,189 Nippon Steel & Sumitomo Meta 2,474.00 -0.26 2,138,800 black. “Bankers look after their own so US Treasury Secretary Steven Mnuch- Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 4,526.00 0.62 1,529,000 in, who promised that a tax reform plan Relx Plc 1,593.00 1.98 3,175,851 The Frankfurt index of 30 leading former Rothschild investment banker Nippon Telegraph & Telephone 4,854.00 1.10 2,432,800 Reckitt Benckiser Group Plc 7,305.00 1.25 1,459,878 stocks rose 3.4% at 12,454.98 points, Macron is a win for the banks,” Lawler would be unveiled soon. Ajinomoto Co Inc 2,172.50 1.59 2,019,300 Randgold Resources Ltd 6,970.00 -1.41 1,127,718 compared with the previous record of said. That was followed by Trump saying Mitsui Fudosan Co Ltd 2,441.50 -0.27 3,178,600 Prudential Plc 1,691.50 3.11 6,053,475 12,391 reached in April 2015. Investors globally had been fearful Friday that there would be “a big an- Ono Pharmaceutical Co Ltd 2,253.00 0.90 1,869,900 Provident Financial Plc 3,229.00 2.93 354,038 Daikin Industries Ltd 10,785.00 0.79 898,800 Wall Street also posted healthy gains that a wave of populism, which swept nouncement tomorrow having to do Persimmon Plc 2,284.00 1.24 832,699 Bank Of Yokohama Ltd/The 0.00 0.00 - approaching midday in New York. Donald Trump to the White House and with tax reform”. Pearson Plc 640.00 1.83 4,960,058 Toray Industries Inc 967.50 0.70 4,704,000 “Relief. That is the word that basi- saw Britain vote to leave the EU, could Oil had another volatile day as in- Paddy Power Betfair Plc 8,710.00 4.69 188,700 Astellas Pharma Inc 1,550.00 1.71 7,995,700 Old Mutual Plc 200.40 4.70 11,767,921 cally describes the sharp moves in the lead to a win for the anti-European Le vestors mulled the chances of Opec Bridgestone Corp 4,532.00 0.78 2,695,500 Next Plc 4,324.00 1.05 533,823 markets today,” said Fawad Razaqzada, Pen and put the future of the bloc in extending an output cut agreement Sony Corp 3,730.00 3.84 13,301,800 National Grid Plc 1,017.50 1.55 8,327,375 a market analyst at Forex.com. doubt. beyond June. After a firmer start, the Hoya Corp 5,140.00 0.12 1,031,800 Mondi Plc 2,013.00 3.55 1,089,408 The euro shot higher to trade above However, Macron is widely expected oil price fell back into negative ter- Sumitomo Mitsui Trust Holdin 3,795.00 1.20 1,506,800 Merlin Entertainment 481.10 1.26 1,481,859 Japan Tobacco Inc 3,736.00 0.92 3,430,900 $1.09 at one point, compared with to gallop to victory over the divisive ritory on selling by traders doubting Mediclinic International Plc 744.50 2.76 1,026,384 Osaka Gas Co Ltd 428.60 1.54 4,491,000 $1.0726 on Friday. Front National leader and traders gave that any extension, if agreed, would Marks & Spencer Group Plc 367.10 1.83 8,775,810 Sumitomo Electric Industries 1,737.00 0.14 2,663,700 “European markets are in a buoyant a huge thumbs-up. actually soak up the current glut on London Stock Exchange Group 3,317.00 3.27 664,576 Daiwa Securities Group Inc 679.30 1.68 9,003,000 Lloyds Banking Group Plc 66.24 2.91 347,642,587 mood,” said Joshua Mahony, market Some cautioned that the party oil markets. Softbank Group Corp 8,174.00 1.04 6,503,700 Legal & General Group Plc 260.50 2.36 27,100,288 Mizuho Financial Group Inc 198.10 1.07 107,517,300 Land Securities Group Plc 1,111.00 1.28 1,568,702 Nomura Holdings Inc 668.60 -0.13 17,801,800 Kingfisher Plc 337.20 2.74 15,113,136 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,443.00 0.60 1,790,900 Johnson Matthey Plc 2,928.00 2.52 463,033 Subaru Corp 4,140.00 0.93 4,300,900 Itv Plc 219.20 1.25 12,882,976 Ntt Docomo Inc 2,636.50 1.21 3,060,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 275.40 0.40 2,295,535 Sumitomo Realty & Developmen 2,984.50 0.30 2,528,000 Intl Consolidated Airline-Di 569.00 4.98 9,667,800 Aluminum Corp Of China Ltd-H 3.96 -2.22 27,053,798 Hong Kong & China Gas 15.36 -0.13 6,012,117 Sumitomo Metal Mining Co Ltd 1,458.50 -0.21 2,214,000 Intertek Group Plc 4,051.00 2.56 308,177 Bank Of East Asia Ltd 31.15 0.00 1,176,902 Hong Kong Exchanges & Clear 190.80 0.00 2,204,904 Orix Corp 1,708.50 -0.18 6,168,800 Intercontinental Hotels Grou 3,962.00 1.10 579,286 Bank Of China Ltd-H 3.70 0.54 243,594,190 Hsbc Holdings Plc 63.00 1.12 24,668,140 Asahi Group Holdings Ltd 4,246.00 1.77 1,398,100 Inmarsat Plc 825.00 1.48 1,345,022 Bank Of Communications Co-H 5.93 1.19 20,228,772 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 44,220.00 1.38 241,100 Informa Plc 645.00 1.65 2,078,844 Belle International Holdings 5.27 0.00 - Ind & Comm Bk Of China-H 4.99 0.60 268,578,834 Nidec Corp 10,185.00 0.49 790,300 Imperial Brands Plc 3,836.00 2.43 1,416,418 Boc Hong Kong Holdings Ltd 31.15 0.97 8,820,338 Li & Fung Ltd 3.26 1.24 76,061,055 Isuzu Motors Ltd 1,414.50 0.71 2,009,400 Hsbc Holdings Plc 638.30 2.29 31,145,146 Cathay Pacific Airways 11.22 1.63 6,837,790 Mtr Corp 44.40 0.23 2,566,526 Unicharm Corp 2,640.50 1.13 937,400 Hargreaves Lansdown Plc 1,388.00 2.36 703,123 Ck Hutchison Holdings Ltd 95.05 2.04 7,994,483 New World Development 9.56 -0.83 16,254,525 Shin-Etsu Chemical Co Ltd 9,456.00 1.03 1,184,500 Hammerson Plc 595.00 1.19 4,475,709 China Coal Energy Co-H 3.85 -1.28 13,842,506 Petrochina Co Ltd-H 5.51 -0.18 99,173,567 Smc Corp 31,080.00 0.42 233,500 Glencore Plc 305.50 2.29 35,540,641 China Construction Bank-H 6.23 0.81 160,980,649 Ping An Insurance Group Co-H 42.40 0.95 20,844,073 Mitsubishi Corp 2,316.00 0.74 3,519,900 Glaxosmithkline Plc 1,585.00 1.25 8,413,916 China Life Insurance Co-H 23.00 1.32 34,961,060 Power Assets Holdings Ltd 69.60 3.11 10,067,859 Nintendo Co Ltd 27,370.00 1.35 1,984,000 Gkn Plc 367.40 4.58 7,628,270 China Merchants Port Holding 21.90 -1.13 4,327,215 Sino Land Co 12.94 0.47 3,851,539 Eisai Co Ltd 5,828.00 1.36 600,900 Fresnillo Plc 1,516.00 1.20 1,150,624 China Mobile Ltd 82.80 -1.25 26,813,942 Sun Hung Kai Properties 115.00 -1.29 3,757,473 Sumitomo Corp 1,438.00 0.21 2,719,900 Experian Plc 1,641.00 2.82 1,991,343 China Overseas Land & Invest 22.75 -0.22 13,014,830 Swire Pacific Ltd - Cl A 74.25 0.34 918,792 Canon Inc 3,501.00 0.57 3,175,200 Easyjet Plc 1,169.00 3.00 3,430,777 China Petroleum & Chemical-H 6.30 0.48 42,287,800 Tencent Holdings Ltd 238.00 0.68 14,548,614 Japan Airlines Co Ltd 3,408.00 0.06 1,959,700 Dixons Carphone Plc 326.80 2.41 3,349,702 China Resources Beer Holdin 18.86 -1.15 2,394,569 Wharf Holdings Ltd 66.15 0.00 2,022,444 Direct Line Insurance Group 344.10 1.83 4,613,516 China Resources Land Ltd 21.65 0.70 10,153,902 China Resources Power Holdin 13.76 -0.58 5,067,366 Diageo Plc 2,261.00 2.40 4,906,051 SENSEX Dcc Plc 7,285.00 1.96 165,233 China Shenhua Energy Co-H 17.86 0.34 17,832,093 GCC INDICES Crh Plc 2,854.00 5.35 3,345,406 China Unicom Hong Kong Ltd 10.26 0.59 41,404,821 Compass Group Plc 1,532.00 1.19 3,446,654 Company Name Lt Price % Chg Volume Citic Ltd 11.04 1.10 5,451,907 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,148.00 2.43 474,506 Clp Holdings Ltd 79.55 -0.13 1,787,566 Doha Securities Market Zee Entertainment Enterprise 524.55 -0.77 722,220 10,153.76 -43.57 Centrica Plc 200.40 -3.51 57,858,851 Cnooc Ltd 9.06 0.11 59,848,372 Saudi Tadawul Yes Bank Ltd 1,554.30 0.66 1,971,372 6,977.54 +8.79 Carnival Plc 4,614.00 1.38 473,676 Cosco Shipping Ports Ltd 8.52 1.31 1,478,287 Kuwait Stocks Exchange Wipro Ltd 491.55 0.06 1,381,246 6,831.07 +12.03 Capita Plc 562.50 -0.44 1,804,891 Esprit Holdings Ltd 6.05 0.83 2,578,320 Bahrain Stock Exchage Vedanta Ltd 231.75 -0.04 11,439,659 1,335.56 -1.08 Burberry Group Plc 1,600.00 1.14 1,667,446 Fih Mobile Ltd 2.70 0.00 6,341,695 Oman Stock Market Ultratech Cement Ltd 4,141.55 4.10 748,654 5,466.61 -7.93 Bunzl Plc 2,379.00 1.84 938,060 Hang Lung Properties Ltd 19.70 0.20 2,441,278 Abudhabi Stock Market Tech Mahindra Ltd 429.25 0.37 1,817,309 4,530.81 +9.18 Bt Group Plc 314.00 0.98 14,180,349 Hang Seng Bank Ltd 156.50 1.82 1,090,576 Dubai Financial Market Tata Steel Ltd 450.70 -0.03 5,404,310 3,430.88 -38.94 British Land Co Plc 652.50 1.24 4,910,592 Henderson Land Development 48.85 -0.31 2,020,130 Tata Power Co Ltd 86.00 2.20 2,899,979 British American Tobacco Plc 5,328.00 2.46 2,643,468 Tata Motors Ltd 443.85 0.74 6,716,205 Bp Plc 449.30 1.79 26,913,881 Tata Consultancy Svcs Ltd 2,328.10 0.75 1,054,661 Bhp Billiton Plc 1,214.50 1.93 8,958,151 Sun Pharmaceutical Indus 642.85 0.51 4,730,860 Berkeley Group Holdings/The 3,303.00 0.52 467,877 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 286.05 1.36 10,842,997 Barratt Developments Plc 584.00 1.74 3,754,141 Reliance Industries Ltd 1,417.40 1.06 6,365,691 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 219.20 5.41 62,591,053 Punjab National Bank 155.15 0.16 8,443,700 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 628.50 1.29 7,210,742 Power Grid Corp Of India Ltd 204.85 -0.36 4,337,704 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 906.00 0.33 1,471,456 Oil & Natural Gas Corp Ltd 181.45 0.67 4,609,094 this data.” Aviva Plc 527.50 3.43 12,016,527 Ntpc Ltd 166.55 -0.39 2,203,693 Astrazeneca Plc 4,662.50 2.11 1,948,011 Maruti Suzuki India Ltd 6,318.35 2.14 468,614 Associated British Foods Plc 2,879.00 2.31 1,189,817 Mahindra & Mahindra Ltd 1,264.60 0.51 695,233 Ashtead Group Plc 1,625.00 2.59 1,414,847 Lupin Ltd 1,361.50 -3.29 1,493,868 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,732.70 2.68 2,390,884 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 840.50 2.69 1,858,478 DINAR DINAR Kotak Mahindra Bank Ltd 895.75 1.74 3,199,226 Anglo American Plc 1,129.00 1.03 7,354,049 Itc Ltd 276.75 0.87 7,848,705 Admiral Group Plc 2,043.00 1.79 578,990 Infosys Ltd 926.55 0.31 2,975,615 3I Group Plc 799.50 3.16 2,444,994 Indusind Bank Ltd 1,433.55 -0.10 991,325 #N/A 0.00 0.00 - Idea Cellular Ltd 85.00 -0.35 4,849,076 Icici Bank Ltd 268.65 -0.19 23,407,519 TOKYO Housing Development Finance 1,530.70 1.54 1,605,144 Hindustan Unilever Ltd 904.55 -0.20 840,736 Hindalco Industries Ltd 190.80 1.44 9,777,067 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,204.40 0.04 122,040 East Japan Railway Co 9,822.00 1.33 722,400 Hdfc Bank Limited 1,533.05 2.44 5,582,524 Itochu Corp 1,529.50 0.86 4,120,800 Hcl Technologies Ltd 819.55 0.84 714,942 Fujifilm Holdings Corp 4,014.00 0.68 3,604,200 Grasim Industries Ltd 1,180.10 4.46 1,226,171 Yamato Holdings Co Ltd 2,301.00 1.86 1,627,300 Gail India Ltd 412.70 3.30 4,486,255 Chubu Electric Power Co Inc 1,473.50 0.00 1,474,500 Dr. Reddy’s Laboratories 2,612.80 0.12 208,583 Mitsubishi Estate Co Ltd 2,110.00 1.05 5,454,300 Coal India Ltd 277.15 0.05 4,317,999 Mitsubishi Heavy Industries 437.90 0.37 13,444,000 Cipla Ltd 557.05 -1.31 2,688,006 Toshiba Corp 208.10 0.39 79,741,000 Cairn India Ltd 283.05 -0.89 9,862,019 Shiseido Co Ltd 2,978.50 0.80 1,398,200 Bosch Ltd 22,481.05 0.33 5,884 Shionogi & Co Ltd 5,781.00 3.47 1,297,800 Bharti Airtel Ltd 344.65 0.54 1,453,182 Tokyo Gas Co Ltd 522.70 1.06 5,917,000 Bharat Petroleum Corp Ltd 714.85 -0.13 1,468,710 Tokyo Electron Ltd 12,425.00 1.02 1,511,300 Bharat Heavy Electricals 176.20 0.57 4,313,493 Panasonic Corp 1,308.00 3.36 22,229,100 Bank Of Baroda 178.90 2.11 8,510,064 Fujitsu Ltd 677.60 1.09 11,696,000 Bajaj Auto Ltd 2,867.75 1.54 205,940 Central Japan Railway Co 18,575.00 1.67 412,600 Axis Bank Ltd 498.65 2.55 14,952,699 T&D Holdings Inc 1,576.50 -0.16 2,833,200 Asian Paints Ltd 1,069.95 0.42 394,579 Toyota Motor Corp 5,887.00 0.55 5,533,900 Ambuja Cements Ltd 246.70 3.05 9,061,406 Kddi Corp 2,939.00 1.80 5,061,700 Adani Ports And Special Econ 331.00 1.53 5,288,407 Nitto Denko Corp 8,272.00 1.21 806,700 Acc Ltd 1,607.00 7.46 2,300,735 Gulf Times Tuesday, April 25, 2017 13 BUSINESS

Chevron plans to sell Bangladesh Boutique bank eyeing India gas blocks

Bloomberg expansion amid M&A boom Mumbai Reuters Mumbai hevron Corp has agreed to sell its natural gas assets in CBangladesh to little known outique investment bank Moe- Himalaya Energy Co, which beat lis & Co plans to expand in In- larger regional explorers such as Bdia where it believes economic Oil & Natural Gas Corp and United growth and corporate restructuring will Energy Group Ltd. prolong a boom in dealmaking, the head Chevron’s Bangladesh unit, of its local business said yesterday. Chevron Global Ventures Ltd, Manisha Girotra, who previously signed an agreement to sell its headed the Indian unit of Swiss bank interests in Block 12 in the Bibiy- UBS and is well known in the industry, ana Field, and Blocks 13 and 14 in said she expects deals in sectors such as the Jalalabad and Moulavi Bazar fi nancials, telecoms and pharmaceuti- fi elds, the San Ramon, California- cals to continue driving M&A activity in based company said in a state- the South Asian nation. ment. The transaction is subject Mergers and acquisitions involving to closing conditions, it said. Indian companies hit a record $72.4bn Chevron, which has seen costs last year, led by transactions in the en- balloon by a third to $88bn at its ergy and power sectors, according to two Western Australia projects, Thomson Reuters data. is looking to cut costs and sell Moelis has been an adviser on deals assets to cope with the plunge in involving infrastructure companies oil and gas prices. Crude has fall- Jaiprakash Associates and GMR Infra- en more than 50% and spot LNG structure, and pharmaceutical compa- has declined nearly 66% since nies such as Strides Shasun and Intas the start of 2014. The sale is part Pharmaceuticals. of a three-year divestment pro- “We have a few mandates at this gramme announced in 2014. point on the new age tech business,” Gi- India’s largest oil and gas pro- rotra said in an interview at her offi ce in ducer ONGC and Hong Kong- central Mumbai. listed United Energy had shown “Telecom towers and fi nancial serv- interest in the deal valued at as ices should see more activity in the next much as $2bn, Bloomberg re- 12 months,” she said, referring to the ported in October. Chevron didn’t sale of assets or stakes in mobile mast disclose the value of the deal. companies. Himalaya Energy is owned by a Moelis, which set up shop in India in consortium of China ZhenHua Oil 2012, currently has a team of 14 bankers. Co and CNIC Corp Ltd, accord- Girotra said she would like to take ing to Chevron. Himalaya Energy that number to as many as 20 in a year couldn’t be reached for comment. or so, cautioning though that growing Chevron operates the Bibiya- revenue takes priority over boosting Boutique investment bank Moelis & Co plans to expand in India where it believes economic growth and corporate restructuring will prolong a boom in dealmaking, the na, Jalalabad and Moulavi Bazar headcount. head of its local business said yesterday. natural gas fi elds in Bangladesh The relatively low investment bank- and sells all the production to ing fee pool in India has frustrated tor banking and within the insurance sets and their stakes in a joint venture as surprised many as it won an adviser role lis would enter into IPO advisory in In- state oil company Petrobangla, bankers, especially multinationals sector, which has already seen a raft of part of an agreed deal to combine their from Saudi Aramco on its plans for what dia. according to its website. Its net some of whom have scaled back their deals after India relaxed foreign owner- phone service operations to create the is expected to be the world’s biggest ini- “The IPO market is very crowd- daily production in 2015 averaged local operations. ship rules. top telecom company in India. tial public share off er. ed in India,” she said. “I see more 720mn cubic feet of natural gas In fi nancial services, Girotra said Vodafone’s Indian unit and Idea Cel- The boutique bank founded by vet- “We would love to do it, but selec- of the growth coming in M&A and and 3,000 barrels of condensate. she sees consolidation in private sec- lular are looking to sell mobile tower as- eran US dealmaker Ken Moelis in 2007 tively,” Girotra said, when asked if Moe- restructuring.”

Trump resorting to unilateralism with Is China too tough a steel beast for Trump to tame? steel probe: China Daily Washington’s move to probe steel imports could trigger a trade dispute Reuters China’s steel exports hit a record plagued Trump’s predecessor for years. steel industry and consumers if Trump steel has been exploited for years, al- between the United States and its Manila/Beijing 112.4mn tonnes in 2015, then dropped Customs data showed yesterday that decides to adopt protectionism.” lowing even shipments that contain just major trading partners, who are slightly to 108.49mn tonnes last year, Chinese mills in March churned out About a third of China’s steel exports tiny amounts of alloy elements to be likely to take retaliatory steps, the as mills have been chastened by threats a record 72mn tonnes of crude steel, fl ow into Asean, or the Association of given rebates. off icial China Daily said in an editorial S President Donald Trump’s of a trade dispute and better demand at mainly used in construction and infra- Southeast Asian Nations, which last The rebates which range between 9% yesterday. fi rst shot across China’s bow home, experts said. structure. year reached 34.3mn tonnes, based on and 13% are “in addition to subsidies for The article was the strongest Uover its steel exports, escalating Exports fell to a three-year low of Then, underscoring the scale and so- data compiled by UK-based consultan- state-owned enterprises, which many off icial response yet to US President a year-long brawl over trade between 5.75mn tonnes in February, recovering phistication of China’s vast export ma- cy MEPS, which has been tracking Chi- of China’s steel mills are,” said Cola. Donald Trump on Thursday launching the world’s top two economies, may not slightly to 7.56mn tonnes in March. chine, the government on Wednesday na’s steel industry since the late 1990s. The rebates are helping many Chi- an investigation of China and other pull up Beijing. Still Trump’s salvo will renew con- published a roadmap outlining its plan South Korea is the top market for nese steel mills deeply undercut rivals steel producers for dumping cheap China exported 620,000 tonnes of cerns that China may retaliate, with US to triple its export from almost 80 in- Chinese exports where 12.3mn tonnes overseas although some domestic pro- steel products into the United States. steel direct to the United States last farmers fearing they would be in the dustries, including steel. were shipped last year, followed by Vi- ducers say exports have dropped as de- “By proposing an unjustified inves- year, a fraction of the 800mn tonnes it crosshairs of any dispute. China’s Foreign Ministry spokes- etnam. mand at home strengthened. tigation into steel imports in the guise produces each year, equal to about half “Trump will do what’s best for Amer- man Lu Kang said on Friday the country China’s massive steel industry, with Still, an early-year surge in Chinese of safeguarding national security, the of world output. ica, but China will do what’s best for needed to ascertain the direction of any an army of millions and largely subsi- steel prices has lifted prices of its export US seems to be resorting to unilateral- Repeated allegations that the world’s China,” said Roberto Cola, vice presi- US investigation before it could make a dised by the state, is unlikely to be de- products and China has lost its com- ism to solve bilateral and multilateral top steelmaker is dumping excess out- dent of the Asean Iron and Steel Coun- judgment. terred by Trump’s attempt to probe into petitiveness with rivals like India and problems,” the China Daily said. The put on world markets may hit harder cil. Chinese steel executives repeated its cheap exports, as Beijing begins its Russia, said Kevin Bai from CRU con- probe could result in eff orts by the closer to home — in Japan and South If Trump slaps new tariff s on steel their mantra that overcapacity is not global campaign to boost overall export sultancy. United States to curb imports that will Korea where steel sectors have borne the exports from China and elsewhere, that just China’s problem and it needs glo- shipments. “But domestic prices have since aff ect the interests of a number of its brunt of China’s rampant sales abroad. will trigger anti-dumping and counter- bal coordination to resolve it, but also For years, Chinese steel exporters dropped quite signifi cantly and close to major trade partners, including China, Speaking in the US capitol at IMF vailing measures from these countries, said it would be tough to rein in the have been gaming the nation’s tax sys- cost and mills have started to carry out it said. “If the US does take protection- and World Bank meetings after Trump said Cola. sector. tem to pump ever greater amounts of maintenance to try to control output ist measures, then other countries launched a trade probe against China “It seems we’re going back to the “The Chinese government will not surplus steel into world markets, craft- and maintain prices,” said Bai, adding are likely to take justifiable retaliatory and other exporters of cheap steel, Ja- protectionist era.” set export limits for the steel mills and ing slightly diff erent alloys to ensure that mills could boost exports if de- actions against US companies that have pan’s Finance Minister Taro Aso laid Two events this week illustrated the could not keep track of every mill,” said their products sidestep Beijing’s cut- mand at home does not pick up. an advantage... in fields such as finance the blame squarely on China, saying its challenge and complexity in trying to Li Xinchuang, vice chairman of the backs to trade subsidies. “The government doesn’t want to see and high-tech, leading to a tit-for-tat vast exports are hurting US, Indian and force China to curb excess steel capacity China Iron and Steel Association. In China, a rebate system to reward higher exports, but I think that’s debat- trade war that benefits no one,” it said. Japanese steel industries. and cheap exports, an issue which also “It will not be a good thing for US exporters selling more value-added able.” Local, global security fi rms in race along China’s ‘Silk Road’

Reuters “OBOR is a lifetime (of work) for insurgents are considered a serious Hong Kong-based logistics fi rm dictable. Yu Xuezhao, a former soldier to us when they’ve (already) got a Shanghai/Beijing us,” said John Jiang, managing director threat, COSG has a joint venture with Frontier Services Group, co-founded working in Kenya for Dewei, is helping problem,” said Humphreys of Control of Chinese Overseas Security Group a local security fi rm with links to Pa- by Erik Prince who created the US to train hundreds of local guards to Risks. (COSG). kistan’s navy. military security services business protect Chinese contractors operating “They’ve started the project and lobal security companies and The Pakistani army also plans to Blackwater, announced in December there, including oil giant Sinopec and they can’t move it forward because their smaller Chinese rivals The $57bn China-Pakistan provide 14-15,000 armed person- it was shifting strategy to capitalise China Road and Bridge. they have a labour dispute or some- Gare jostling for business along Economic Corridor, the largest nel dedicated to guarding Chinese on OBOR. It plans to set up an offi ce in Africa, where China invested long one is throwing petrol bombs at their Beijing’s modern-day “Silk Road”, the single project under the OBOR projects, according to local media the southwestern province of Yunnan, before OBOR was formally created, is trucks.” grandiose plan for land and sea routes banner, envisages roads, reports. The $57bn China-Pakistan which adjoins Southeast Asia, and an- considered a part of the initiative. Hao and other Chinese security ex- connecting the world’s second-largest railways, pipelines and power Economic Corridor, the largest single other base in Xinjiang in China’s west, “The most common incidents we ecutives added that most state-owned economy with the rest of Asia and be- lines that link China’s western project under the OBOR banner, en- the starting point for the CPEC project encounter are thefts and strikes,” enterprises were building their over- yond. reaches with the Arabian Sea via visages roads, railways, pipelines and crossing Pakistan. 27-year-old Yu said, speaking from seas security capabilities from a low Representing investments of hun- Pakistan power lines that link China’s western Smaller Chinese fi rms like COSG, a training compound in the Kenyan base. dreds of billions of dollars, the pet reaches with the Arabian Sea via Pa- Shanghai-based Weldon Security capital Nairobi he has managed since “A lot of the larger state-owned en- project of Chinese President Xi Jin- The small consortium of security kistan. and Dewei Security, meanwhile, see 2015.”We train security guards to in- terprises have only just started to go ping is seen boosting economic growth providers was set up early last year and Major international security opera- their advantage over multinationals in spect cars and do ground patrols.” out in the last few years. at home, and as positive for everything operates in six countries: Pakistan, tors hope their scale and experience state-owned enterprises’ preference Events can quickly escalate. As such, overseas security work re- from steel prices to cement makers. Turkey, Mozambique, Cambodia, Ma- can convince China’s price-conscious for hiring Chinese to handle sensitive In 2015, for example, an attack on a mains a blank space for those fi rms Security fi rms also expect to tap the laysia and Thailand. state-owned giants to pay for foreign projects. hotel in Mali killed three workers at a who had not gone out before,” he said. rush, off ering to protect thousands of “In eight years’ time, we want to run expertise. Only a handful of the estimated Chinese state fi rm, leading to calls by Some Chinese experts said compa- Chinese workers — and the pipelines, a business that can cover 50-60 coun- Firms like Control Risks and G4S 5,800 Chinese security companies op- Beijing for beefed up security. nies operating abroad were beginning roads, railways and power plants they tries, which fi ts with the One Belt One off er staff with military backgrounds erate overseas, with the vast majority Offi cials revealed then that 350 se- to think more about the importance of build — as they fan out across the Road coverage,” Jiang told Reuters. and decades of experience in risky re- focusing on the domestic market. curity incidents had occurred between safety. world under the “One Belt, One Road” Chinese personnel are essentially gions around the world. “For Chinese fi rms, especially with 2010 and 2015 involving Chinese fi rms “This is something Chinese com- (OBOR) initiative. barred under Chinese law, and that of G4S said it had seen an acceleration security work, they (state companies) abroad. panies need to study more,” said Lu It won’t be easy, however, with ex- many host nations they work in, from of interest in its services since OBOR want to speak with another Chinese Such concerns do not easily trans- Guiqing, general manager of private ecutives warning that state-owned carrying or using weapons. began gaining traction. person. late into lucrative contracts, however. builder Zhongnan Group and former enterprises running or planning Instead, COSG and its rivals usually Michael Humphreys, a Shanghai- We can also 100% refl ect their In some cases, security companies chief economist at China State Con- projects from Africa to Vietnam some- work with and train local staff and fo- based partner at Control Risks, said thinking when we work,” said Dewei are called in to deal with an emergency struction Engineering Corp. times prefer to deal with fellow Chi- cus on logistics and planning. around a third of the security consul- general manager Hao Gang. rather than to coordinate a long-term “When you ‘go out’ safety is the nese, treat safety as an afterthought In Pakistan, for example, where tancy’s work in China was related to Security risks facing Chinese work- strategy. most important. What’s the point if and try to keep costs to a minimum. attacks by militants and separatist OBOR. ers abroad are varied and often unpre- “For a lot of companies, they come you end up losing people?” Gulf Times 14 Tuesday, April 25, 2017 BUSINESS Vietnam bank aims to raise $700mn by selling majority stake

Bloomberg would not only put money into the bank Chi Minh City yesterday. Financial servic- early next year and expects to close the 20, citing data from VAMC. “This is an have registered capital of at least $1bn Ho Chi Minh City but also has the same vision about this es companies have led gains in Vietnam deal in mid-2018, Van said. The bank important move to reform the banking during the year before applying to buy market,” Van said in an interview at the stock market this year, rising 14%. Two plans to hire an international bank as system,” said Alan Pham, Ho Chi Minh the stakes, according to the 2014 decree. bank’s Ho Chi Minh City headquarters, out of six banks listed in the Ho Chi Minh a consultant, he said, adding that the City-based chief economist at VinaCapi- International banks are reducing The first Vietnamese bank granted adding that he wants an investor to help City Stock Exchange rose yesterday, with prime minister must ultimately sign off tal Group, one of the nation’s biggest investments in emerging countries’ government approval to sell a majority grow the bank. “More importantly, they Bank for Foreign Trade of Vietnam JSC on the deal. fund managers. “SCB can receive a banks due to new capital requirement stake to a foreign investor could attract need to help our clients to complete their advancing 0.7% and the Vietnam Joint The sale of a majority stake may also capital infusion to improve its non- management regulations under Basel III, an investment of at least $700mn. real estate projects so that we can solve Stock Commercial Bank for Industry and aff ect plans for a listing after 2019 when performing loan problem. Investors can Van said. Vietnam’s asset and registered Saigon Joint Stock Commercial Bank, the bad debt issue in a shorter time.” Trade was up 0.3%. its restructuring process, which began in provide SCB with advanced technology, capital requirements are “a barrier to the fifth-largest by assets, said it’s in Prime Minister Nguyen Xuan Phuc said Saigon Commercial Bank has been in 2012, is completed, Van said. risk management methods, derivatives foreign lenders who seek to invest in talks to draw that investment by selling in a Bloomberg Television interview in talks with six investors, including banks, The government established the trading capabilities and FX manage- Vietnamese banks,” he added. a controlling stake to a sole foreign January he plans to increase the govern- equity funds and insurance companies Vietnam Asset Management Company ment.” Saigon Commercial Bank, established investor. The funds will help strengthen ment’s 30% cap on total foreign owner- from Norway, Indonesia, Taiwan and in 2013 to acquire bad bank loans, which Still, Vietnam’s current regulations with the 2012 merger of Saigon Joint its financial products and speed up the ship in banks to hasten the overhaul of China, Van said. An unnamed foreign has reduced bad-debt ratio to 2.46% of may make it diff icult for overseas inves- Stock Commercial Bank, First Joint Stock resolution of remaining bad debt. Vietnam’s banking system. He singled investment fund earlier this year off ered total loans at the end of 2016 from an tors to acquire bank stakes, Van said. Commercial Bank and Vietnam Tin Nghia Saigon Commercial Bank, or SCB, out Ocean Bank, taken over by the State to buy a 15% stake, according to Van. The estimated 7.8% at the end of 2012. The Under Vietnam law, overseas banks, Commercial Joint Stock Bank, slashed plans to sell more than half of the bank Bank of Vietnam in 2015, as a weak insti- bank also expects intensifying negotia- agency has collected just 50.2tn dong financial firms and financial leasing its bad debt ratio to 0.68% by the end of at par value through the issuance of new tution the government is willing to sell tions with two potential investors from ($2.2bn) of non-performing loans, or companies that seek to acquire 10% or last year from 7.25% in 2012, the lender shares, chief executive off icer Vo Tan immediately to a foreign investor. China and Indonesia. less than 18% of the total outstanding more of a local credit institution’s charter said at its April 18 shareholders’ meeting. Hoang Van said. The benchmark VN Index dropped for The lender aims to submit its stake bad debt, since its establishment, Thoi capital must have total assets worth at The bank targets collecting 1.5tn dong in “We’re really looking for a partner who a third day, falling 0.4% at the close in Ho sale plan to the central bank for approval Bao Kinh Te Vietnam reported March least $10bn. Other foreign investors must overdue loans this year.

Samsung to update India beats Japan as world’s software over ‘red second-largest LPG importer screen’ smartphone Bloomberg New Delhi AFP Seoul ndia toppled Japan as the world’s sec- ond-largest importer of liquefi ed pe- Itroleum gas as Prime Minister Naren- lectronics giant Samsung dra Modi’s pledge to provide cooking gas will this week off er an cylinders to the poor and wean them off Eunusually early software polluting fuels drove up consumption. update for its newly-released Imports of LPG, mostly used as cook- Galaxy S8 phone, it said yester- ing fuel, soared 23% during the fi nan- day after some consumers com- cial year that ended March 31 to 11mn plained of red-tinted screens. tonnes, according to data from oil min- The launch of the device is a istry’s Petroleum Planning & Analysis key step for the South Korean Cell. Japan’s imports slipped 3.2% dur- tech fi rm as it seeks to move ing the same period to 10.6mn tonnes, on from last year’s humiliating according to its fi nance ministry. China withdrawal of the Galaxy Note 7 remains the world’s top importer. over exploding batteries, which Modi’s government in May 2016 em- hammered the fi rm’s once-stel- barked on a drive to provide free cook- lar reputation. The Galaxy S8 ing gas connections to women from started over-the-counter sales extremely poor households, aimed at in the US and its home market reducing the use of polluting fuels such but South Korean users who as wood and dried cow dung that, ac- pre-ordered the phones com- cording to the World Health Organisa- plained their screens displayed tion, causes 1.3mn premature deaths in an unusually reddish hue. India every year. This push led to a record Online images of their phones distribution of 32.5mn new cooking gas went viral on social media but connections during the year. Samsung denied a hardware fl aw “It’s a game changer,” said Ong Han and maintained that users could Wee, who heads the LPG team at Singa- manually adjust the colour pore-based Facts Global Energy. “Never range according to their pref- in history we have seen such huge LPG erences. As more users voiced usage in India. LPG will remain main doubts, Samsung said yesterday cooking fuel for India over next two that a software update would fi x decades.” Free gas connections coupled the problem by allowing them with at least two other government pro- to readjust colours over a wider grammes have taken India’s active LPG range than at present. user count to about 200mn, about 60% “Samsung... has decided to more than Japan’s entire population. release a software update start- India aims to increase LPG usage to ing from this week which will cover 80% of its households by March provide consumers with a fur- 2019, against 72.8% as on April 1. Japan ther enhanced ability to adjust on the other hand is cutting back on the colour setting to their pref- LPG as a cooking fuel and is moving to erence,” it said in a statement. cheaper alternatives such as natural gas, Samsung – the world’s larg- according to Ong. The target of adding Liquefied petroleum gas cylinders are seen at a gas distribution centre in Dujana village, India. The country’s imports of LPG, mostly used as cooking fuel, soared 23% est maker of smartphones – has 50mn new LPG users will boost demand during the financial year that ended March 31 to 11mn tonnes, according to data from oil ministry. pinned its hopes on the Galaxy for the fuel by 10% for the next two years, S8 to compete against archrival according to Nevyn Nah, oil product previous year. Demand for the fuel may a programme to increase access for the to become the dominant source of the with exporting nations, Pradhan said Apple’s iPhone after last year’s analyst at industry consultant Energy touch 35mn tonnes by 2031-32 due to an poor to LPG, he said yesterday. fuel in 2017-18, as consumption sur- in March. Note 7 disaster. The recall deba- Aspects Ltd. “Thereafter, we have to increase in the penetration of cooking According to estimates by the PPAC, passes local production, according to “A million tonnes a month LPG im- cle cost Samsung billions of dol- see what India plans for future growth.” gas connections in rural areas, Oil Min- India’s LPG consumption is expected an oil ministry offi cial. India imports ports will soon be a reality,” said Facts lars in lost profi ts and hammered India’s consumption of LPG during the ister Dharmendra Pradhan told Indian to grow 9.7% in the current fi nan- 40% of its LPG requirements, predom- Global’s Ong. “Impact of India’s grow- its global credibility, forcing it year to March 31 was 21.55mn tonnes, lawmakers last month. The nation added cial year that started April 1 to 23.7mn inantly from the Middle East, and is ing LPG usage will become more visible to apologise to consumers and registering a 9.8% growth from the 21mn new users in the past year under tonnes. Overseas purchases are poised discussing long-term import contracts on global markets over coming years.” postpone the S8 launch. BoJ seen upbeat on growth, gloomy on prices

Reuters monetary stimulus for the time being. With the BoJ expects core consumer infl ation to Tokyo the economy in good shape, the BoJ is widely hit 1.5% in the year ending in March 2018, expected to leave unchanged its commitment followed by 1.7% in fi scal 2018. to guide short-term interest rates at minus The BoJ may also off er an analysis on rightening global growth prospects 0.1% and the 10-year government bond yield why infl ation remains subdued despite a will allow Japan’s central bank to keep around 0% through aggressive asset pur- strengthening recovery, either in the quar- Bmonetary policy steady this week and chases. terly report or at Kuroda’s post-meeting invest time solving the puzzle of why infl a- Analysts also expect the BoJ to maintain a briefi ng. tion remains stubbornly low despite a tight- loose pledge to keep increasing its govern- The International Monetary Fund called ening job market and robust economic re- ment bond holdings by ¥80tn per year. for labour market reforms to solve the co- covery. Japan’s economy has shown signs of life, nundrum. At the two-day rate review ending on as exports rose the most in over two years “Despite a tightening labour market, wage Thursday, the Bank of Japan is set to off er in March and manufacturers’ confi dence demands are not stronger than in the past a more upbeat assessment of the economy climbed to the highest since the global fi nan- few years and thus are unlikely to kindle than it did last month as a pick-up in over- cial crisis a decade ago. much-needed positive wage-price dynam- seas demand bolsters exports and factory But core consumer prices for February ics,” the IMF said in its World Economic Out- output, sources have told Reuters. rose just 0.2% from a year earlier, keep- look report last week. But central bank policymakers still have ing markets doubtful of the BoJ’s fore- “To attain a durable increase in infl ation little to cheer about with consumer infl ation cast infl ation will hit its 2% target by and growth, a comprehensive policy ap- barely above 0%, as soft household spending March 2019. proach that enhances monetary accommo- discourages companies from raising prices. At a quarterly review of its long-term pro- dation with a supportive fi scal stance and And looming geopolitical risks, such as jections to be released on Thursday, the BoJ reforms to labour market policies is needed,” escalating tensions over North Korea, over- may slightly cut this fi scal year’s infl ation it said. shadow otherwise upbeat prospects for the forecast but project price growth accelerat- After three years of heavy money printing global and Japanese economies. ing steadily towards its target in subsequent failed to drive up infl ation, the BoJ revamped “Japan’s economy is recovering and ex- years, say sources familiar with its thinking. its policy framework last September to one panding steadily as a trend,” BoJ governor “The BoJ’s price forecasts are too optimis- better suited for a long-term war against de- Haruhiko Kuroda said last week, off ering a tic, so there’s a very high chance they will be fl ation. brighter view than the central bank’s current revised down. But critics say the central bank cannot assessment that a moderate recovery trend This may happen at its quarterly fore- sustain the current framework if its price tar- A man walks past the Bank of Japan building in Tokyo. With the economy in good shape, the BoJ is widely was in place. “But price momentum, while cast review in April,” said Kazuo Momma, a get remains elusive for too long, as its heavy expected to leave unchanged its commitment to guide short-term interest rates at minus 0.1% and the sustained, lacks steam,” he added, signalling former top BoJ economist. bond buying is already drying up market li- 10-year government bond yield around 0% through aggressive asset purchases. anew that the BoJ will maintain its massive In the current forecast made in January, quidity. Gulf Times Tuesday, April 25, 2017 15 BUSINESS Becton’s $24bn Bard purchase caps CEO’s deal spree

Bloomberg than five years ago, and eclipses the $12bn oversee about $1bn in assets at Candriam dien, announced in 2014, which allowed the position of chairman in 2012. systems. The combined companies will Berlin acquisition of CareFusion Corp he oversaw Investors Group, including shares of Bec- the buyer to move its legal headquarters Becton, which hadn’t disclosed a also off er products capable of address- in March 2015. ton. “Going again after a pretty expensive to Ireland and slash its global tax rate. In purchase of over $1bn before 2012, agreed ing 75% of the “most costly and frequent Forlenza’s shopping spree comes out of and big deal, you’d have to say there’s January, Abbott Laboratories completed to pay $317 a share for Bard in cash and healthcare associated infections.” For more than a century, medical devices necessity. Medical suppliers to hospitals a kind of urgency.” Shares of Becton its $30bn acquisition of St Jude Medical to stock, or about 25% more than Bard’s April The Murray Hill, New Jersey-based company Becton, Dickinson & Co got by and doctors have been under rising dropped 3.9% $178 before the US markets gain bargaining power with hospitals. 21 closing price, the companies said in company will add to Becton’s scale in the without any major acquisitions. That’s pressure to bring down prices, triggering opened yesterday. The Bard agreement, With larger portfolios, the medical com- a statement on Sunday. Becton expects growing categories of oncology and sur- changed dramatically under chief execu- consolidation among makers of medical at $317 a share, off ers a 25% premium on panies can off er hospitals and purchasing $300mn in cost cutting by 2020 from gery and expand its off erings in areas such tive off icer Vincent Forlenza, who is turn- devices. Investors seem to approve of the Bard’s Friday closing price. Bard’s stock groups package deals on products and the purchase. Boards of both firms have as vascular disease, urology, and hernia ing out to be a serial dealmaker. strategy: Becton’s stock has more than jumped 19% to $301 in early trading. services that customers are demanding as unanimously agreed to the deal, according care, according to the statement. Their The company late on Sunday said it had doubled since Forlenza became CEO in The deal marks the fifth year of consoli- they themselves merge into larger health to the release. combined scale will increase international forged its largest deal ever by agreeing to October 2011 and surpassed the 132% dation among makers of medical devices, systems with centralised operations. Bard specialises in minimally invasive presence and opportunities; together, the buy C.R. Bard for $24bn to combine two of returns generated by the S&P 500 Health- which have announced or completed Forlenza rose within the ranks at Bec- devices such as catheters and ports for companies will have about $1bn annual the world’s biggest healthcare suppliers. care Equipment Index. $373bn of mergers and acquisitions ton, joining the company in 1980 and guid- people with irregular heartbeats, end- revenue in China, they said in the state- That marks the 12th acquisition since “As a provider to hospitals, you need since the end of 2012, according to data ing the strategic planning and marketing stage renal disease and clogged arteries, ment. About $300mn in annual, pretax, Forlenza took the helm of the Franklin to be big and have really diversified off er- compiled by Bloomberg. The largest: of several business units before becoming which Becton says will complement its run-rate synergies are expected by the Lakes, New Jersey-based company more ings,” said Rudi Van den Eynde, who helps Medtronic’s $42.9bn acquisition of Covi- chief executive off icer in 2011. He added off erings in intravenous drug delivery 2020 fiscal year, they said.

Akzo to consider German business morale PPG’s sweetened near six-year high; defi es $29bn off er Bloomberg ing pressure to negotiate with Amsterdam PPG after rejecting March 22 the previous sweetened pro- posal as too low and not in the kzo Nobel said it would interests of shareholders, cus- political uncertainty consider PPG Indus- tomers or employees. The CEO Atries’ new unsolicited has since announced a plan to Ifo business climate index €26.9bn ($28.8bn) takeover split the company in two and rises to 112.9; reading bid, which the US rival extend- reward shareholders with a stronger than forecast of ed with “one last invitation” for higher dividend, saying it of- 112.5; highest level since Europe’s largest coatings com- fered more value than PPG’s July 2011; German firms defy pany to negotiate a deal. off er. The bidder said its new political uncertainties Akzo Nobel will “carefully off er is superior to that plan. review and consider” the pro- PPG, anticipating an objec- Reuters posal, the Amsterdam-based tion from Akzo, said it would Berlin company said in a statement be willing to pay a “signifi - yesterday. PPG earlier off ered cant” breakup fee to the Dutch Akzo shareholders cash and company if antitrust regulators erman business morale stock valued at €96.75 a share block the transaction. brightened more than including a dividend that Akzo “PPG is ready to commit to Gexpected in April, hitting plans to pay, the Pittsburgh- a mutually agreed level of di- its highest in nearly six years, based company said in a state- vestitures as may be reasonably suggesting Europe’s largest ment, adding it’s a 50% premi- necessary to meet those re- economy is set to carry its robust um over the unaff ected closing quirements,” it said. The com- upswing into the second quarter price March 8. PPG’s previous, pany also said the Dutch com- despite political risks. sweetened bid valued Akzo pany’s European production The surprisingly strong data, Nobel at €90 a share with the facilities wouldn’t be relocated published by the Munich-based dividend. to the US Ifo institute yesterday, added to “We are extending this one “If Akzo Nobel continues to signs that the German economy last invitation to you and the refuse to engage, PPG may opt is fi ring on all cylinders as the AkzoNobel boards to recon- to retreat and relaunch its off er European Central Bank’s loose sider your stance and to engage in 2018-2019, once the chemi- monetary policy supports a vi- with us on creating extraordi- cals spin is out of the way,” Jef- brant domestic economy and a nary value and benefi ts for all feries analysts including Lau- rise in foreign demand helps ex- of AkzoNobel’s stakeholders,” rence Alexander said in a note. porters. PPG chief executive offi cer “This strategy would run the Ifo’s business climate index, Michael McGarry said in a let- risk, however, of another po- based on a monthly survey of ter to Akzo Nobel. The CEO has tential suitor emerging.” some 7,000 firms, rose to 112.9 said he won’t rule out making Activist Akzo Nobel share- from an upwardly revised 112.4 a hostile off er directly to Akzo holder Elliott Advisors and in March. The reading, the shareholders. other investors have called on highest since July 2011, came With the new off er, Akzo Akzo Nobel to engage with its in stronger than a Reuters con- Pedestrians pass a clothing fashion store as sales promotion signs are seen on display in Berlin. “The German economy is growing strongly,” CEO Ton Buechner faces grow- US suitor. sensus forecast for a value of Ifo chief Clemens Fuest said in a statement. 112.5. “The German economy is Emmanuel Macron came in fi rst, level was excellent, Ifo said. gether more than off set a drag sharply in the fi rst quarter with growing strongly,” Ifo chief Cle- qualifying for a May 7 runoff Construction fi rms are ben- from net trade. industry and private consump- WestJet plans to launch mens Fuest said in a statement. alongside far-right leader Ma- efi ting from a housing boom, Strong industrial output and tion driving the expansion. Ifo economist Klaus Wohlrabe rine Le Pen. “Should Emmanuel fuelled by a growing popula- export fi gures for January and But the central bank warned told Reuters that the German Macron also win the second tion, rising employment levels, February have suggested that that the growth potential could ultra-low-cost carrier economy was not being infl u- round, German industry will be higher job security as well as the economy shifted into an even nearly halve by the middle of enced by political uncertainties relieved,” VP Bank economist record-low borrowing costs. higher gear in the fi rst quarter of the next decade as the work- Reuters executive vice-president, such as the threat of rising pro- Thomas Gitzel said. France is “Germany’s golden cycle has 2017, helped by rising global de- force will decrease by 2.5mn by Montreal commercial, told Reuters the tectionism, major elections in among Germany’s most impor- entered yet another round,” ING mand for cars and machines. 2025 and net immigration will new off ering would feature Europe and the course of Brexit tant trading partners. economist Carsten Brzeski said. Economists expect Germany’s not fully off set this. Germany’s an “a la carte model” of a negotiations. Managers’ assessments of “The only weak spot of the quarterly growth rate to clearly VDMA engineering associa- WestJet Airlines said it base fare plus specific fees “I think we’ll see a really good the current business situation German economy remains rath- pick up in the January-March tion said yesterday it could lift plans to launch an ultra-low- for services like checked fi rst quarter,” Wohlrabe said. improved signifi cantly while er sluggish investment,” Brzeski period after 0.4% in the fi nal its growth forecast for this year cost carrier in Canada in a baggage, only taken one step He noted that a dip in expec- their outlook for the coming six noted, adding the government three months of 2016. if early signals of positive busi- move that would intensify further. tations was mainly due to the months was a bit less optimistic. should further support do- The German government will ness sentiment persist and prove competition with domestic While other low-cost carriers industrial sector and did not Morale improved in construc- mestic demand by stimulating publish its updated growth fore- justifi ed. rivals, including Air Canada’s have failed in Canada, signify a change in sentiment in tion, retailing and wholesaling higher private investments and cast for 2017 tomorrow. VDMA head Carl-Martin lower-priced Rouge service. WestJet’s strategy would work the economy as a whole. whereas manufacturing fi rms increasing its own spending. Preliminary fi rst quarter GDP Welcker said higher demand Calgary-headquartered by winning market share from The Ifo survey was conducted were somewhat less upbeat. Germany’s gross domestic growth data is set to be released from emerging markets such as WestJet aims to kick off the competitors such as Rouge in the fi rst half of April. In construction, assessments product grew by 1.9% last year, on May 12. Russia and India could lift en- service late this year with an and Sunwing Airlines while This means it does not include of the current business situa- the strongest rate in fi ve years, The Bundesbank said in its gineering production this year initial fleet of 10 Boeing Co cannibalising some of its own any reaction to the fi rst round tion rose to a new record high helped by soaring household latest monthly report, also while China, the United States 737-800s planes. traff ic, Cummings said on of the French presidential elec- while expectations remained and state spending as well as published yesterday, that Ger- and Britain were sources of un- Bob Cummings, WestJet’s Friday. tion on Sunday in which centrist broadly positive and the order increased construction that to- man growth likely accelerated certainty. IBM says CEO pay is $33mn; others say it is far higher

Bloomberg This disparity — between what compa- ment, he said. PricewaterhouseCoopers, Rival proxy adviser Glass Lewis & Co drastically impact its fair value. If any- To be fair, Rometty, 59, rose to promi- New York nies say they pay and what CEOs actually which audited IBM’s books, also declined also said investors should give it a thumbs thing, the sheer amount of wiggle room nence as the first woman CEO in IBM’s get — reflects the imprecise art of valuing to comment. down, though it didn’t comment on the is a big part of the problem. And the 105-year history at a diff icult time. stock options, which involves a complex, IBM holds its shareholder meeting on valuation of Rometty’s options. hypotheticals involved shine a light on She had the unenviable task of playing When IBM shareholders gather today, and at times opaque, numbers game. By April 25 at 10am in Tampa, Florida. While “say on pay” votes are non-bind- the black-box math that underlies many catch-up as she tried to shift IBM away they’ll be asked to sign off on a $33mn pay tweaking certain assumptions, awards The company, which awarded Rometty ing, anything below 70% approval can not executive compensation packages. from shrinking businesses such as com- package for chief executive off icer Ginni disclosed in regulatory filings can appear 1.5mn stock options on a one-time basis only be highly embarrassing for company Helped by last year’s 21% rebound in IBM puters and operating system software, Rometty. smaller than they really are. While it’s legal in January 2016, valued the grant at directors, but could also lead to unwanted shares, Rometty’s pay package is currently and into higher-growth areas like the It’s a hefty sum for any CEO, let alone and even fairly common, the particulars $12.1mn. That came on top of her normal scrutiny and activist investor campaigns. worth $65mn, according to the Bloomberg cloud and AI. Rometty also inherited her one who’s overseen five years of falling of Rometty’s case have raised more than compensation, consisting of about $21mn Vanguard and BlackRock declined to say Pay Index. That’s higher than any of her predecessor’s promise that IBM’s earn- revenue and left shareholders with a total a few eyebrows. “Their valuation is very in salary, bonus and shares. IBM didn’t how they will vote, while Berkshire didn’t closest industry rivals, like Microsoft’s ings would reach $20 per share by 2015, return of less than 0.1%. unusual,” John Core, a professor of ac- disclose any of its assumptions for valuing respond to a request for comment. Satya Nadella and Hewlett Packard Enter- which some analysts say pushed her into And the truth is, that figure might counting at MIT’s Sloan School of Manage- the options and declined to do so when Of course, there are any number prise’s Meg Whitman, and puts her among short-sighted decisions such as buybacks understate her actual compensation — by ment, said of IBM’s valuation of Rometty’s asked by Bloomberg. of possible reasons that IBM’s valua- America’s 10 best-paid CEOs. and divestments that ultimately cost the perhaps 50% or more, because of the way options. “There’s certainly a measure of ISS sees Rometty’s grant as a red flag. tion might diff er from those made by Long-term IBM shareholders, on the company time and money. IBM values her stock options. discretion in these models, although this Based on its calculations, the award is Bloomberg and ISS. Both Bloomberg and other hand, have almost nothing to show While Rometty finally abandoned the According to proxy adviser Institutional seems to be on the more extreme side.” almost 60% below the proxy adviser’s ISS use the Black-Scholes model, a widely for their investment during Rometty’s profit target in late 2014, she still hasn’t Shareholder Services, Rometty’s 2016 Ed Barbini, a spokesman for Interna- own “fair value” estimate of about $29mn. accepted standard for pricing options. tenure. Since she became CEO in January been able to right the ship. Last week, IBM package may actually exceed $50mn, tional Business Machines Corp, said the That’s the biggest gap for S&P 500 com- It’s the same methodology that IBM 2012, IBM has returned 0.05%. That’s in- reported that revenue in the first quarter based on its own estimate for the value of Armonk, New York-based company has panies that granted options to executives employs. However, board compensation cluding dividends. (Based on price alone, fell to a 15-year low, and analysts predict her options at the time they were granted. used the same methodology to value last year. The grant is a big reason that ISS committees that divvy up grants into shares have fallen 13%). The S&P 500 has sales will continue to shrink for another Independent calculations by Bloomberg option grants for more than a decade, in took the rare step of recommending IBM portions with diff erent exercise prices more than doubled over the same span year. Gross margins fell by the most in at also suggest that at current values — accordance with generally accepted ac- shareholders — which include billion- and vesting hurdles, which IBM did with and technology companies have, on aver- least a decade. which take into account the rise in IBM’s counting principles and Securities and Ex- aire investor Warren Buff ett’s Berkshire Rometty, sometimes use a combination age, returned even more. How IBM got to $12.1mn for Rometty’s share price since the grant — her com- change Commission regulations. Neither Hathaway Inc, and fund giants Vanguard of the Monte Carlo and binomial lattice “She’s overpaid,” said Tigress Financial option grant remains a mystery. But gen- pensation is now worth $65mn, or almost Rometty nor the directors responsible Group and BlackRock — vote down the models. Inputs such as volatility, dividend Partners’s Ivan Feinseth. “She has not cre- erally, equity planners agree the process is twice as much as her reported pay. for setting her pay were available to com- pay programme. yield and expected life of the security can ated shareholder value in five years.” the same for most companies. Tuesday, April 25, 2017 GULF TIMES BUSINESS

Finance Minister al-Emadi, IMF chief Lagarde discuss latest global developments

HE the Minister of Finance Ali Sherif al-Emadi with IMF managing director Christine Lagarde, US Secretary of Commerce Wilbur Ross and US Secretary of the Treasury Steven Mnuchin at the spring meetings of IMF and the World Bank Group in Washington DC.

QNA recently issued report on Article 4 consultations him cooperation in the financial field and means of IMF and the World Bank Group, which took place mittee. The International Monetary and Financial Doha on Qatar, in which the IMF stressed Qatar’s good of activating the outcomes of the second session over the past two days in the presence of ministers Committee discussed issues of the global economy standing that enables it to tackle macroeconomic of economic and investment dialogue between of finance, central bank governors and senior and the financial and monetary stability, highlight- challenges that resulted from continued drop in oil Qatar and the United States, which was held in off icials of member states, in addition to board ing that the level of recovery in global economy HE the Minister of Finance Ali Sherif al-Emadi yes- and gas prices, thanks to its large financial reserves. Doha in November 2016, particularly regarding chairpersons of global banks and representatives of has become more positive as risks facing the global terday met International Monetary Fund (IMF) man- HE al-Emadi also met US Secretary of Commerce Qatari investments in the US real estate sector and the private sector and academics. economy decline. However, it warned that growth aging director Christine Lagarde on the sidelines Wilbur Ross, with talks touching on bilateral rela- cooperation in the field of taxes. The meetings focused on the horizons of global rates in global economy remain at low levels and of the 2017 spring meetings of IMF and the World tions between Qatar and the US, including coopera- Qatar Central Bank deputy governor Sheikh economy and achieving economic development might continue that trend for a long period due Bank Group, which took place in Washington DC. tion in economy, commerce and civil aviation. Fahad bin Faisal al-Thani also attended the meeting. and financial stability through a number of commit- to the high levels of debt, the weak productivity The meeting reviewed the latest global and re- Additionally, HE the minister met US Secretary of Qatar participated, with a delegation led by HE tees such as the IMF’s International Monetary and and discrepancy in the economic performance of gional economic developments as well as the IMF’s the Treasury Steven Mnuchin and discussed with the minister of finance, in the 2017 spring meetings Financial Committee and the Joint Ministerial Com- advanced, nascent and developing economies.

Top shoe brands Jimmy Choo and EU members push back Bally up for sale

Reuters London against 25-year wireless ritish luxury retailer Jimmy Choo has put itself up for sale to try to maxim- Bise shareholder value as majority in- vestor JAB increases its focus on consumer goods. JAB Luxury also said yesterday it was re- viewing its ownership of Bally International, the Swiss luxury footwear and accessories spectrum licences limit company, clearing the way for a possible sale of that business too. Reuters Jimmy Choo, famous for its stiletto shoes Berlin/Milan and accessories, has discussed its plans with 68% shareholder JAB, which supports the process as part of a move away from a luxury ermany and Italy are among sector it now considers “non-core”. 15 European Union member Jimmy Choo shares hit a record high, Gstates pushing back against valuing the business at around £720mn a proposal to set a 25-year mini- ($921mn). mum on wireless spectrum licenc- JAB Holdings, the investment vehicle of es, thwarting the telecoms indus- Germany’s billionaire Reimann family, has try’s hopes for a more coordinated been building up its coff ee and food chains approach across the bloc. and agreed this month to buy bakery group The European Commission has Panera Bread for $7.2bn. tried for years to coordinate how Shares in Jimmy Choo, which fl oated on national governments allocate so- the London Stock Exchange at 140 pence in called wireless spectrum or parcels 2014, had increased 35% over the last year of airwaves to mobile operators such prior to Monday’s announcement. as Vodafone, Deutsche Telekom and They rose as much as 11.3% and by 1227 EE to create a single European tel- GMT were up 9.5% at 185 pence. ecoms market. “What remains to be seen is whether Telecoms companies have also growing interest from Asia and the Middle long called for a more coordinated East for luxury UK brands, will see Jimmy spectrum policy. Choo receiving off ers from foreign buyers Licence durations vary across Eu- searching for well-known British brands,” rope, making it harder for the com- said Jonathan Buxton, partner and head of panies to operate on a larger scale consumer at Cavendish Corporate Finance. and compete with US rivals. Last month Jimmy Choo reported a 15.7% But member states have in general rise in annual core earnings to £59mn, on been very sensitive about any over- revenue up 14.5%. sight of wireless spectrum by the EU. JAB’s luxury portfolio also includes Brit- The sale of spectrum can raise bil- ish jacket brand Belstaff which could now be lions of euros for governments. surplus to requirements. It indicated that it The Commission sought to ad- The T-Mobile logo is seen on top of the Deutsche Telekom headquarters in Bonn, Germany. The European Commission is proposing a minimum spectrum intended to retain its investment in beauty dress this by proposing a minimum licence duration of 25 years in a telecoms reform proposal for member states in September. products maker Coty. spectrum licence duration of 25 “JAB has therefore made the strategic de- years in a telecoms reform proposal Bulgaria, Croatia, Cyprus, the Czech with subsequent legal uncertainty against an ideal model,” the paper “5G roll-out requires longer li- cision to focus on its successful core busi- in September. Republic, Finland, Germany, Greece, due to cases of litigation, it said. said. censes and a pro-investment ap- nesses of consumer goods, including Coty,” But in a position paper seen by Ireland, Italy, Latvia, the Nether- Currently spectrum licences in The mandatory peer review would proach to spectrum management it said, adding that it expects the review to Reuters the countries said manda- lands, Poland, Spain and the United Europe are awarded for around 10-15 create an “immense bureaucratic as well as network regulation.” complete in the second half of 2017. tory fi xed licence durations were Kingdom. years, except for Britain, which has burden” on national administrations The EU executive has made a pri- Jimmy Choo said Britain’s Takeover Panel “disproportionate and insuffi ciently Increased spectrum trading or the awarded unlimited ones. and the Commission as well as cre- ority of fostering the early develop- has agreed that any talks with third parties fl exible to be able to respond to mar- possibility of withdrawing a licence The countries also take issue with ating legal uncertainty and risk sti- ment of 5G mobile technology in can be conducted within the context of a ket developments.” from an operator if it is not used are the Commission’s proposed peer re- fl ing innovation. Europe, and estimates that 5G will “formal sale process”. That enables talks with Excessively long licence durations not suffi cient counterbalances to the view mechanism to review national “Preserving the status quo is bring €146.5bn ($159bn) per year in interested parties to take place on a confi den- risk “preventing innovation if rel- long licence durations, the paper regulators’ draft measures on spec- no good option,” said Steven Tas, benefi ts. tial basis. evant frequency bands are awarded also said. trum allocation. Chairman of ETNO, the European The Commission’s proposals are The fi rm said it is currently not in receipt for longer than the life cycle of a These depend either on the good “A peer review process as pro- telecoms lobby group representing currently being discussed by both of any approaches. technology,” the paper said. will of operators or require lengthy posed... is based on the idea that Deutsche Telekom, Telecom Italia member states and the European The sale process will be run by BofA Merrill The paper was signed by Austria, withdrawal of rights procedures any award decision can be checked and Telefonica, among others. Parliament. Lynch and Citigroup. Tesla’s big Model 3 bet rides on risky assembly line strategy

Reuters long-held industry norms that has helped on its existing low-volume cars, and the The auto industry’s incumbents have 2015, according to a person familiar with Tesla has laboured under financial pres- New York Tesla upend the traditional auto industry. Model 3 is designed to sell in numbers as not been standing still. the decision and Tesla’s assembly line sure since it was founded in 2003. While Tesla is not the first automaker to high as 500,000 vehicles a year, raising Volkswagen’s Audi division launched planning. The company has yet to turn an annual try to accelerate production on the factory the potential cost of recalls or warranty production of a new plant in Mexico using Working on a tight deadline, Tesla had profit, and earlier this year Musk said the Tesla chief executive Elon Musk took floor, no other rival is putting this much repairs. “It’s an experiment, certainly,” said computer simulations of production tools no time to incorporate lessons learned company was “close to the edge” as it look many risks with the technology in his faith in the production strategy succeeding. Consumer Reports’ Jake Fisher, who has — and indeed the entire assembly line and from soft tooling before having to order toward capital spending of $2-2.5bn in the company’s cars on the way to surpassing Musk expects the Model 3 rollout to done extensive testing of Tesla’s previous factory — that Audi said it believed to be the permanent production tooling, making first half of 2017. Ford Motor Co’s market value. help Telsa deliver five times its current Models S and X. an industry first. the former’s value negligible, the source Tesla has since gotten more breathing Now Musk is pushing boundaries in the annual sales volume, a key target in the Tesla could possibly fix errors quicker, That process allowed the plant to said. room by raising $1.2bn in fresh capital in factory that makes them. automaker’s eff orts to stop burning cash. speeding up the process, “or it could be launch production 30% faster than usual, “Soft tooling did very little for the pro- March and selling a five per cent stake Most automakers test a new model’s “He’s pushing the envelope to see how they have unsuspected problems they’ll Audi said. gramme and arguably hurt things,” said to Chinese Internet company Tencent production line by building vehicles with much time and cost he can take out of the have a hard time dealing with.” An Audi executive involved in the Mexi- the person. Holdings. relatively cheap, prototype tools designed process,” said Ron Harbour, a manufactur- Musk discussed the decision to skip can plant launch, Peter Hochholdinger, is In addition, Tesla has learned to better Musk has spoken to investors about his to be scrapped once they deliver doors ing consultant at Oliver Wyman. what he referred to as “beta” production now Tesla’s vice president of production. modify final production tools, and its 2015 vision of an “alien dreadnought” factory that fit, body panels with the right shape Investors are already counting on testing during a call last month with an Typically, automakers test their design purchase of a Michigan tooling company that uses artificial intelligence and robots and dashboards that don’t have gaps or Tesla’s factory floor success, with shares invited group of investors. with limited production using lower grade means it can make major equipment 30% to build cars at speeds faster than human seams. soaring 39% since January as it makes Details were published on Reddit by an equipment that can be modified slightly to faster than before, and more cheaply as assembly workers could manage. Tesla, however, is skipping that prelimi- the leap from niche producer to mass investor on the call. address problems. well, the source said. But there are limits to what technol- nary step and ordering permanent, more producer in far less time than rivals. He also said that “advanced analytical When most of the kinks are worked out, Financial pressure is partly driving ogy can do in the heavily regulated car expensive equipment as it races to launch There are caution signs, however. techniques” — code word for computer they order the final equipment. Tesla’s haste. business. its Model 3 sedan by a self-imposed vol- The production equipment designed simulations — would help Tesla in advanc- Tesla’s decision to move directly to the The quicker Tesla can deliver the Model For example, Tesla will still have to use ume production deadline of September, to produce millions of cars is expensive to ing straight to production tooling. final tools is in part because lower grade, 3 with its estimated $35,000 base price real cars in crash tests required by the US Musk told investors last month. fix or replace if it doesn’t work, industry Tesla declined to confirm details of disposable equipment known as “soft to the 373,000 customers who have put government, because federal rules do not Musk’s decision underscores his high- experts say. the call or comment on its production tooling” ended up complicating the debut down a $1000 deposit, the closer it can allow simulated crash results to substitute risk tolerance and willingness to forego Tesla has encountered quality problems strategy. of the problem-plagued Model X SUV in log $13bn. for data from a real car.