QNB CEO | Page 15 Maritime sector to benefi t from LNG expansion

Wednesday, February 19, 2020 Jumada II 25, 1441 AH INVESTMENT OPPORTUNITIES: Page 16 Minister of Commerce GULF TIMES to inaugurate ‘Made BUSINESS in Qatar’ in Kuwait

Commercial Bank Financial Services Aamal Company posts launches ‘margin trading’ product

Pioneering innovation and leading the market with cutting- QR322mn profi t on edge technology-based product off erings, Commercial Bank Financial Services (CBFS) has launched its margin trading product, becoming the first bank brokerage subsidiary in Qatar to launch such an “innovative” product. The margin trading facility will allow clients greater flex- ibility, and required liquidity to trade on the Qatar Stock Ex- change (QSE), and take advantage of market opportunities. QR1.29bn revenue in ’19 Commercial Bank group Chief Executive Off icer Joseph Abra- ham said, “As always, we never cease to invest in innovative amal Company, a leading diversifi ed products. CBFS’s launch of margin trading facility marks a new group in the Gulf region, has report- achievement for the bank and its brokerage subsidiary, and Aed net profi t of QR322mn on revenue further enriches our wealth management product off ering. of QR1.29bn in 2019 and suggested 4% cash “Margin trading is the first of the many new exciting prod- dividend. ucts we have in the pipeline in CBFS for this year, which will The company however saw its net under- continue to engage and enable our clients to build trading lying profi t margins decline by 6.9 percent- volumes and market participation rates.” age points to 20.1%. Amit Sah, Commercial Bank executive general manager “Although 2019 saw signifi cant market and head (Retail Banking) and CBFS chairman said, “We headwinds in the construction industry, are pleased to welcome such an innovative service to our our diverse business model continued to portfolio, as the strategic vision for CBFS is to become the prove highly resilient and Aamal respond- “Best Brokerage Business in Qatar” in terms of market share ed positively in this challenging environ- and to lead in product innovation.” ment,” said its chairman HE Sheikh Faisal Shahnawaz Lalani, deputy general manager, CBFS said, bin Qassim al-Thani. “Margin trading facility will be off ered to domestic retail cus- Despite lower profi tability, 2019 was tomers living in Qatar. This new service supports Qatari riyal “undoubtedly a positive” year from an op- currency, and can be accessed through CBFS’s platforms erational perspective and the industrial and other channels; mobile application, e-trade platform and manufacturing segment businesses suc- direct contact with brokers.” cessfully progressed several strategic invest- Commercial Bank Financial Services, a wholly owned ments from which the group expects to reap subsidiary of Commercial Bank, provides customers with the benefi ts in 2020. In the industrial manu- a secure platform for trading on QSE-listed stocks, bonds facturing segment, revenue was QR169mn and T-bills. CBFS is licensed by the Qatar Financial Markets and net profi t stood at QR53mn in 2019. Authority (QFMA) to carry out trade on stock exchange on The segment saw decline in revenue and behalf of customers and itself, providing Margin Trading and net profi ts, refl ecting the combined eff ect HE Sheikh Faisal and Sheikh Mohamed: Responding positively in challenging environment. liquidity provider services. of a slowdown in the Qatari construction The company is located at Grand Hamad Street and can be sector and increased competition which due to strong price competition in the mar- “In 2020, City Center Doha expects to Profi t at Aamal Travel jumped 25% year- reached at 44495522, or through www.cbfin.qa impacted all companies in the segment, the ket. But 2020 presents many opportunities see new shop openings which will drive on-year in 2019, as the company estab- largest impact being felt at Senyar Indus- for Aamal Medical, supported by a strong footfall through the mall and enhance the lished new connections with several foot- tries owing to slower demand. pipeline of promising projects. Aamal visitor experience,” the spokesman said, ball-playing South American countries, “However, the outlook for the construc- Medical will continue to explore the intro- adding furthermore, an agreement has with profi t margins going up 7 percentage The Commercial Bank tion sector in 2020 is positive based on a duction to Qatar of the latest healthcare been signed with Public Works Authority to points. In 2020, Aamal Travel plans to open Plaza at West Bay. signifi cant increase in enquiries related to technologies such as artifi cial intelligence, build a pedestrian bridge (expected to start a new branch and participate in the Qatar CBFS has become the infrastructure development and comple- stem cell therapy, mobile health and tele- by mid-2020), which will directly connect Travel Market for increased exposure. first bank brokerage tions ahead of the FIFA 2022 World Cup,” a medicine. the mall’s fi rst fl oor to the DECC metro “In 2020, we will also progress internal subsidiary in Qatar to company spokesman said. Revenue in the property segment was station. In the managed services segment, projects such as the digital transformation launch the In 2019, increased competition drove av- broadly fl at at QR290mn in 2019, while net revenues and net profi t were QR63mn and of Aamal and undertake a detailed review ‘innovative’ margin erage prices down, placing further pressure profi t was down 7.1% to QR224mn. This re- QR6mn respectively. This was lower year- of our supply chain to ensure we are only trading product. on revenues and profi t margins. fl ects the tougher retail environment stem- on-year, largely due to the deconsolidation partnering with suppliers who are fully Revenue in the trading and distribu- ming from the blockade, increased main- of ECCO Gulf, stemming from the fi ndings aligned to our sustainability principles,” tion segment increased signifi cantly, up tenance, utility and insurance costs, and of a review undertaken in accordance with said Sheikh Mohamed bin Faisal al-Thani, 14.8% year-on-year to QR800mn, while the absence of lease termination penalties its internal controls over fi nancial report- chief executive and managing director of net profi t declined 21.1% to QR99mn partly which Aamal benefi ted from in 2018. ing framework. Aamal.

‘Private sector credit boost to help Qatar non-oil sector stage recovery this year’ Qatar Airways signs codeshare By Pratap John the researcher said and noted it is still await- Business Editor ing third quarter 2019 (Q3) figures for Qatar. Recently, Oxford Economics noted “weakness in Qatar’s non-hydrocarbon sector is fading.” agreement with Bulgaria Air Qatar’s non-oil sector “should stage a recov- Growth in the non-oil sector averaged 3.5% in ery” this year on the back of the private sector 2017-18 but slowed in 2019, notwithstanding credit accelerating, growing by more than outlays on infrastructure projects in prepara- atar Airways has signed a codeshare A multiple award-winning airline, Qatar Air- 20% year-on-year since August 2019, Oxford tion for the 2022 World Cup. agreement with Bulgaria Air and the fi rst ways was named “World’s Best Airline” by the Economics has said in a report. However, with some improvement in Q4 last Qcodeshare fl ights will operate on March 2, 2019 World Airline Awards, managed by the Oxford Economics’ non-oil momentum indica- year, including in the real estate sector, Oxford the national airline said yesterday. international air transport rating organisa- tor (NOMI) for Qatar suggests a turnaround Economics believes non-oil activity eked The agreement will provide Bulgaria Air pas- tion Skytrax. It was also named “Best Airline in for the non-oil sector. out marginal growth of 0.1% in 2019, and it sengers with a “seamless connection” to destina- the Middle East”, “World’s Best Business Class”, “It may not be on the cusp of expansion expects an acceleration to 3.5% this year. tions in Africa, Asia and the Middle East. and “Best Business Class Seat”, in recognition of just yet, but the data points to diminishing Oxford Economics had said Qatar economy Qatar Airways’ passengers will benefi t from its ground-breaking business class experience, contraction in Q4, marking the first sign of would see further improvement in the access to two new destinations in Bulgaria: Varna Qsuite. improvement since late-2017. The improve- medium term and noted the country’s GDP and Burgas. It is the only airline to have been awarded the ment has been most prominent in credit growth is seen averaging 2.9% in 2021-22. Sales under the codeshare agreement with coveted “Skytrax Airline of the Year” title, which indicators and construction permits, off set to Key factors behind Oxford Economics’ near- Bulgaria’s national carrier will start today, Qatar is recognised as the pinnacle of excellence in the some extent by weaker real estate prices and term projection on Qatar economy include Airways said. airline industry, fi ve times. unsupportive gas price dynamics,” Oxford some recovery in crude production, hydrocar- Qatar Airways Group Chief executive, HE Ak- Qatar Airways currently operates a modern Economics noted. bon sector gains because of gas prioritisation, bar al-Baker said, “This agreement with Bulgaria The agreement will provide Bulgaria Air fl eet of more than 250 aircraft via its hub, Ha- “However, with the January non-oil PMI sliding fading weakness in non-hydrocarbon sector, Air follows other recent partnership announce- passengers with a ‘seamless connection’ mad International Airport (HIA), to more than deeper into negative territory again, we will supportive budget spending, sound banking ments we have made with airlines across the to destinations in Africa, Asia and the 170 destinations worldwide. The world’s fastest- cut our forecast for non-oil GDP growth to sector, subdued inflation and eff orts to revive world, demonstrating our commitment to work- Middle East growing airline will add Osaka (Japan); Santorini under 3% from 3.5% currently, though this will tourism. ing with our peers to provide passengers seamless (Greece); Dubrovnik (Croatia); Almaty and Nur- still represent a significant improvement on The economy should gradually recover over connectivity and unrivalled service.” Qatar Airways. This co-operation is only a part of Sultan (Kazakhstan); Accra (Ghana); Cebu (Phil- the estimated 0.1% in 2019,” the researcher the course of 2020, when Oxford Economics Bulgaria Air chief executive offi cer Hristo To- our long-term development strategy and we are ippines); Lyon (France); Trabzon (Turkey); Siem said. forecasts growth of 2.3%, with further im- dorov said, “It is a great pleasure for Bulgaria Air happy to welcome the passengers of Qatar Air- Reap (Cambodia) and Luanda (Angola) to its ex- The GCC non-oil momentum indicators – provement in the medium term, amid ongoing to add Qatar Airways to its partnership network, ways onboard our aircraft.” tensive network in 2020. details of which Oxford Economics provided investment ahead of the World Cup 2022 and which is undoubtedly one of the most respected Qatar Airways fi rst launched services to So- Award-winning Bulgaria Air is the largest Bul- earlier – had shed light on non-oil perform- a rise in gas production. and prestigious airlines in the world. fi a, Bulgaria in September 2011, beginning with a garian airline and national carrier of the Repub- ance ahead of actual GDP data releases. Oxford Economics also sees “some recovery” “We are delighted that they have chosen us as a four-times weekly service. In the years since, due lic of Bulgaria. It operates direct fl ights to some “The importance of our NOMI is significant,” in the country’s crude production in 2020. partner enabling our passengers to travel quickly to the strong demand by travellers, the service 25 cities in Europe, including domestic fl ights to and conveniently to over 170 destinations with has grown to 14 weekly fl ights. Varna and Burgas. Gulf Times 2 Wednesday, February 19, 2020 BUSINESS Qatar shares edge higher on foreign institutions

By Santhosh V Perumal the increase in the bourse, where the real Non-Qatari individuals turned net buy- and value also more than doubled to Business Reporter estate and industrials sectors together ac- ers to the tune of QR2.45mn against net QR50.13mn on a 60% increase in transac- counted for about 69% of the total vol- sellers of QR0.25mn the previous day. tions to 1,510. ume. Local retail investors’ net selling de- The insurance sector’s trade volume he increased buying interests of The Total Return Index rose 0.69% to clined substantially to QR5.37mn com- more than doubled to 1.76mn shares and foreign institutions and substan- 18,075.14 points, the All Share Index by pared to QR30.71mn on Sunday. value soared 57% to QR3.39mn but on fl at Ttially weakened selling pressure 0.83% to 2,935.69 points and the Al Rayan The Gulf funds’ net profi t booking also deals at 84. from local retail investors yesterday lifted Islamic Index (Price) by 0.79% to 2,125.59 shrank perceptibly to QR11.12mn against The real estate sector reported a 53% the Qatar Stock Exchange near 9,800 lev- points. QR15.87mn on February 17. surge in trade volume to 47.58mn equities, els. The transport index soared 2.33%, tel- However, domestic funds were net sell- 50% in value to QR53.05mn and 18% in The transport, telecom and real estate ecom (1.23%), realty (1.18%), banks and ers to the extent of QR18.98mn compared transactions to 1,429. sectors witnessed higher than average de- fi nancial services (0.85%), industrials with net buyers of QR42.51mn the previ- However, the consumer goods sector’s mand as the 20-stock Qatar Index settled (0.68%) and consumer goods (0.32%); ous day. trade volume plummeted 69% to 5.56mn 0.69% higher at 9,775.75 points, although while insurance was down 0.16%. The Gulf individuals were also net profi t stocks, value by 51% to QR12.23mn and it touched a low of 9,664 points initially. About 69% of the traded constituents takers to the tune of QR2.74mn against net deals by 29% to 457. Non-Qatari individuals were seen bull- extended gains with major movers being buyers of QR0.57mn on Sunday. The banks and fi nancial services sec- ish and there was weakened selling pres- Milaha, Nakilat, Ooredoo, United De- Total trade volumes grew 23% to tor saw a 27% plunge in trade volume sure from the Gulf institutions in the mar- velopment Company, Qatari Investors 106.58mn shares, value by 14% to to 14.15mn shares and 25% in value to ket, which is down 6.23% year-to-date. Group, Qatar Electricity and Water, QNB, QR222.8mn and transactions by 20% to QR65.02mn but on 2% growth in transac- Market capitalisation saw about QR5bn, Qatar Islamic Bank and Mesaieed Petro- 6,885. tions to 1,840. or 0.9%, jump to QR542.93bn mainly ow- chemical Holding; even as Mazaya Qatar, The transport sector’s trade volume al- The telecom sector’s trade volume ing to mid and small cap segments. Aamal Company and Doha Bank were most tripled to 8.36mn equities and value shrank 10% to 3.32mn equities, whereas Islamic stocks were seen gaining faster among the losers. also almost tripled to QR21.66mn on a value shot up 13% to QR17.33mn and deals The transport, telecom and real estate sectors witnessed than the main index in the bourse, where Non-Qatari institutions’ net buying in- 53% jump in deals to 694. by 52% to 871. higher than average demand as the 20-stock Qatar Index domestic institutions turned bearish. creased considerably to QR35.71mn com- The industrials sector’s trade volume In the debt market, there was no trading settled 0.69% higher at 9,775.75 points yesterday. Trade turnover and volumes were on pared to QR3.74mn on February 17. more than doubled to 25.84mn stocks of sovereign bonds and treasury bills.

Doha Bank’s exceptional feats honoured at NABS awards

Doha Bank has been recognised for its out- one of the leading platforms for banking standing performance in the “Best Trade and fintech sector in the Middle East, where Finance Bank” category at the 13th New experts and leaders in the industry gather Age Banking Summit Awards (NABS Qatar to discuss topical issues pertaining to the Awards) held in Doha recently. future of the banking sector in Qatar and Braik al-Marri, chief retail banking off icer the Middle East, as well as devise strategies at Doha Bank, received the award on the to tackle any challenges to the industry’s bank’s behalf. development. In his remarks during the occasion, al- “The 2020 edition of the NABS is particu- Marri expressed Doha Bank’s gratitude and larly crucial and relevant to the current appreciation for receiving the accolade scene since it highlighted a range of and said, “We are very pleased to be fundamental topics including the future of acknowledged by NABS Qatar Awards for lending in Qatar and provided profession- demonstrating excellence in the category als with insights on how to build a cyber- of Best Trade Finance Bank. resilient strategy, secure mobile banking “Indeed, Doha Bank has been one of the and payment channels, and enhance the primary providers of trade finance services customer experience.” in the local, Middle East, and international Additionally, nearly 200 bankers and tech- markets for more than 40 years. Over the nology experts participated in the NABS last decades, our Trade Finance Depart- that was held on February 12, address- ment has certainly proved its eff iciency in ing a multitude of developments in the handling and processing all transactions banking and financial industry, including and attending to its customers’ various credit quality, financial markets, regulatory trade needs.” cooperation, regtech, fintech, block chain, Underscoring the importance of the sum- cybersecurity, AI, Islamic finance, and anti- Doha Bank chief retail banking off icer Braik al-Marri receiving the mit, al-Marri said, “The NABS is undoubtedly money laundering eff orts. award.

Gulf Times 4 Wednesday, February 19, 2020 BUSINESS

Euro extends Fed doesn’t want another repo losses to plumb a new crisis, but Treasury isn’t helping 3-year low Reuters London Bloomberg Washington he euro extended losses yesterday to plumb a new he Federal Reserve has doled out Tthree-year low against tens of billions to calm the short- the dollar, after a German sur- Tterm lending markets after they vey showing a slump in investor went haywire in September. confi dence added to pessimism But initiatives by the US Treasury about Europe’s largest economy. Department, to ensure it always has The euro has lost around 3.4% enough cash to pay its bills as the defi - of its value against the US dollar cit soars to a trillion dollars, could make this year, as weak manufacturing it harder for the Fed to prevent a repeat. and gross domestic product data As the department copes with higher from Germany confi rm the eu- spending, large swings in the amount of rozone is more vulnerable than money it has on deposit with the central most economies to the impact of bank have already undercut the Fed’s the coronavirus outbreak which ability to keep bank reserves stable. started in China. Last year, one particularly big shift The US economy has proved helped to drain so much liquidity from more resilient than the rest of the banking system that it contributed the world, keeping the dollar to a spike in overnight lending rates. at 4-1/2 month highs against a Now, as Treasury considers setting basket of currencies. aside even more money, market watch- Other safe-haven assets such ers say the swings are bound to get as the Swiss franc and Japanese worse. That could lead to more disrup- yen have also benefi ted. tions and upend the Fed’s goal of scal- The euro slipped 0.23% at ing back its involvement in the repo $1.08125, touching the low- market. est since April 2017 and on the Treasury’s cash needs “have created cusp of falling below the psy- dislocations that are putting greater chologically key $1.08 level, last strains on the Fed’s reserve manage- breached on April 21, 2017. ment and funding markets,” said Ward Germany’s ZEW research in- McCarthy, chief fi nancial economist stitute said in its monthly survey at Jeff eries & Co and a former senior that investors’ mood had deteri- economist at the Richmond Fed. “But orated far more than expected in the Treasury needs to fund the govern- The US Federal Reserve building in Washington, DC. The Fed has doled out tens of billions to calm the short-term lending markets after they went haywire in September. February, on worries coronavi- ment, so the Fed has to work around But initiatives by the US Treasury Department, to ensure it always has enough cash to pay its bills as the deficit soars to a trillion dollars, could make it harder for the Fed rus would dampen world trade. around that.” to prevent a repeat. “Breaking the $1.0800 level The situation also underscores how seems to be a question of when America’s fi scal imbalance, which has fl uctuations before, the sheer size and It has also swung as high as $451bn and step back from active involvement once told Bloomberg News in an interview rather than if,” Petr Krpata, chief been exacerbated by the combina- swings of the account in recent years dropped as low as $112bn. reserves rise enough to ensure ample li- last month. “It shouldn’t impact the currency strategist at ING, said. tion of tax cuts and spending increases stand out. Under the Obama admin- All that money fl owing in and out of quidity in the banking system. market one way or another whether we “The mix of soft eurozone under the Trump administration, is istration, Treasury in 2015 instituted Treasury’s account has made it hard- Of course, one way Treasury could put money at the Fed or at a bank.” data, the market pricing renewed putting strains on the fi nancial system. a policy of keeping at least fi ve days’ er for the Fed to keep reserves in the help is by keeping most of its cash in Fed chairman Jerome Powell said in ECB deposit rate cuts and attrac- Though arcane even in fi nance cir- worth of expenditures, or a minimum banking system stable, and crucially, accounts of the nation’s commercial December that bank offi cials had yet tive euro funding characteristics cles, repurchase agreements – or repos of $150bn, in case unexpected disrup- to manage monetary policy. That’s banks instead, as it did before the fi - to discuss the topic with their Treasury do not bode well” for the euro, for short – are what keep the global tions from natural disasters or cyber- contributed to abrupt swings in repo nancial crisis. counterparts. Nevertheless, he added he added. The euro slipped also capital markets spinning. And that in- attacks locked it out of the debt mar- rates, which spiked to 10% in mid- That would keep the Fed from having that “there may come a time when we against the Swiss franc, taking it cludes the $16.7tn market for US gov- kets. Prior to the change, Treasury had September. to manage the daily swings in Treas- talk about that.” to within sight of the 4-1/2-year ernment debt. enough cash for just two days. The turmoil forced the Fed to step in ury’s cash cushion to prevent liquidity Even if there’s some kind of agree- low plumbed last week while The Treasury General Account, as it’s But that cushion has grown and be- with tens of billions of dollars in emer- from drying up. ment between the two, some analysts it also weakened half a % ver- offi cially known, operates like the gov- come more volatile as defi cit spending gency repo fi nancing. It also began to Treasury Secretary Steven Mnuchin say the best, and perhaps only, option sus the British pound to a two- ernment’s checking account at the Fed. rose and cash fl ows in and out of the ac- purchase $60bn a month in T-bills to isn’t convinced. for the Fed is to simply accept the fact month trough of 82.92 pence. Money comes in when taxes are paid count increased. permanently lift reserves. In fact, he suggested such a shift that its repo operations have become a Poor euro area data has raised out of bank accounts of individuals and And the fl uctuations have at times The central bank has continued to could lead to even bigger fi nancial-sta- fact of life – and to stand ready to pro- concerns monetary policy will Corps (which drains banks’ reserves been exacerbated when Congress backstop the repo market – in various bility problems. vide more cash whenever it’s needed. remain looser for longer than held at the New York Fed) and money dragged its heels on the debt limit. amounts and over various terms – so it “If you’re a regulator, you wouldn’t “The Fed should just plan to do re- previously expected. goes out when the government pays its Since the start of 2019, the account doesn’t seize up again. It has said it will want a major bank’s balance sheet to pos, beyond just as an emergency tool, Minutes from the Reserve Bank bills (which does the opposite). balance has averaged $303bn, versus continue its repo operations at least go up and down based upon what could as needed,” said Wrightson ICAP’s of Australia’s (RBA) fi rst meeting While the Fed has had to deal with about $240bn in the prior four years. through April, but ultimately wants to be very, very large cash movements,” he Lou Crandall. of the year similarly fuelled ex- pectations of lower interest rates and weighed on the currency. The RBA left rates at a record low 0.75% at that meeting, but the minutes showed it was pre- Hedge funds use DIY strategies to gauge coronavirus impact pared to ease policy further. The Aussie fell 0.5% to 0.6674 versus the greenback, an eight-day low. Reuters smelters — would be one signal that government,” said Leland Miller, head continue betting on more upside in Some methods verge on the macabre. It is also buff eted by the coro- New York business activity is fi nally picking up, of China Beige Book International, an equity rally that’s taken markets to John Lekas, CEO and senior portfolio navirus due to Australia’s trade Polachek said. which regularly surveys thousands of record highs. manager at Leader Capital in Portland, ties with China. Another encouraging sign would Chinese fi rms to gauge business condi- “Everyone realises that they are not Oregon, has been seeking any sort of “If it weren’t for the virus, the s investors crunch numbers to be an increase in air pollution levels tions in the country. pricing in much risk,” he said. His fi rm’s on-the-ground information, including incredibly cheap Aussie dollar determine how the coronavirus over key Chinese manufacturing areas, Chinese offi cials have defended Bei- next survey will contain new questions crematorium activity in hard hit areas, would be defi nitely worth buy- Awill hit China’s economy, hedge which Polachek monitors daily using jing’s management of the epidemic and about the eff ects of the lockdown, such to assess the death toll. ing,” said Marc-André Fongern, fund manager Nathaniel Polachek has the Air Quality Index web site. rejected the idea that China was not as whether the respondent has returned So far, any information he’s received head of FX research at Fongern tied much of his outlook to the fate of a “The best indicators are … from the transparent enough in its initial han- to work or working from home. on the subject has been unverifi able. Global Forex. ship anchored near Weihai, China. physical world,” he said.”I want to see dling of the outbreak. Others are relying on their contacts Lekas’ more mundane methods in- “However, investors should The vessel carries some 750 tonnes how long it takes for materials to get off The latest data provided by China inside the country. clude studying data from the Johns exercise patience as the Austral- of lead concentrate that Polachek, head the boat, how long it takes for me to get indicated a decline in new cases but Kevin Smith, founder of Denver- Hopkins Center for Health Security to ian economy looks set to face of New York-based Commodity Asset paid for them.” “every scenario is still on the table” based Crescat Capital and a longtime determine when the rate of new cases further downward pressure.” Management, purchased in Greece to Doubts over whether there are more in terms of the epidemic’s evolution, skeptic on China’s economy, increased will equal the rate of recoveries, a point China’s off shore-traded yuan sell on the Chinese mainland. cases in China than are being cap- the World Health Organisation said his bets against the country’s stocks af- he believes would indicate a peak in the fell 0.3% to an eight-day low of The coronavirus outbreak has kept tured by official figures have fuelled on Monday. ter receiving an e-mail from one of the outbreak. 7.0110 against the dollar. the ship idling off China’s coast for a do-it-yourself approach among in- The economic toll, meanwhile, has fi rm’s Chinese clients describing “par- Using his own calculations based A study showed that almost weeks, as movement restrictions and vestors looking to determine the out- started to pile up, with Apple Inc the alysing and tragic scenes” in Hubei, the on the daily fi gures, he predicts such a twice as many Chinese medical factory closures slow swathes of the break’s trajectory and gauge its eco- latest company to warn of the impact. outbreak’s epicentre. point will come in early March. workers have been infected by world’s second-largest economy to a nomic impact. Many of Miller’s clients--which in- “It’s not really possible for us to His $450mn fund has been buying coronavirus as offi cially report- crawl. The tools they use range from artifi - clude hedge funds and pension funds be any more bearish on China,” said Treasuries, a popular destination for ed. Norway’s crown, closely cor- Word that the ship has been allowed cial intelligence and computer model- with as much as $100bn under man- Smith, who has been betting against nervous investors. related with global growth and to dock in Weihai — an access point to ling to simple word of mouth. agement--remain uneasy about the China’s currency since 2014. “But we “We are fi xed income (investors) and trade, plunged to a 19-year low one of China’s main industrial hubs and Investors “don’t believe the stuff potentially disruptive eff ects of the are more convinced that this is a cata- nervous by nature,” Lekas said. “The of 9.3365 against the US dollar, home to several metal refi neries and they’ve been hearing from the Chinese virus on global growth, even as they lyst for a downturn.” uncertainty makes us nervous.” down 0.7% on the day. Wall Street targets the Nordics aft er latest spike in wealth

Bloomberg new M&A mandates coming through.” a corporate landscape in which there’s The figure is even higher, when it comes to Stockholm Eirik Winter, chief executive off icer in considerable appetite for debt issuance private-equity deals, according to Nordic the Nordics at BNP Paribas, says the re- and M&A. Knowledge Partners. gion’s appeal lies in its “tendency to grow BNP, which employs around 800 people “The more foreign interest in the mar- One of the world’s richest corners has a bit faster than the rest of Europe and in in the Nordics, hired several dozen people ket, the higher the share of global banks,” become a magnet for a growing number some cases even faster than the US”. in the past year and a half. It wants to focus NKP’s chief executive off icer, Andreas von of Wall Street firms. And big US-based investment manag- on “areas where we are less known, such Buchwald, said. “Typically buyers would The Nordic countries – best known ers are also turning to the region. Neu- as M&A, investment banking and in equity want their Goldman Sachs, rather than for their universal welfare models and berger Berman recently opened an off ice markets,” Winter said. “We’re not ‘smile and depend entirely on local banks.” domination of world happiness rankings – in Stockholm, while Nuveen added to its dial’ bankers who fly in for deals.” Meanwhile, some of the biggest Nordic now have a surplus of cash after years of presence in Scandinavia by creating an New York-based investment manager banks are in the middle of sweeping central bank stimulus. That’s prompting off ice in Copenhagen. Neuberger Berman has seen its business cost-cut programs that are eating into banks from across the globe to line up JPMorgan says it’s relocating bankers to in the Nordic region grow by more than personnel numbers. Frank Vang-Jensen, with advice on everything from money the Nordic region. It also wants to hire as 50% a year since 2005. It relied on flying the new CEO of Nordea Bank Abp, has management to mergers and acquisitions. it tries to expand a portfolio of ultra-high bankers in and out of the region, but has slashed the lender’s wholesale operations JPMorgan Chase & Co, Goldman Sachs net worth clients, and do more investment now decided it needs an off ice in the after shareholders demanded bigger Group Inc and BNP Paribas SA have all banking. Goldman Sachs, which already Swedish capital. returns. The second-biggest Nordic lender, recently announced they’re either expand- has a Nordic base in Stockholm, will open “At the end of the day, we also need to Danske Bank A/S, has frozen headcount ing existing operations or creating new an off ice in Copenhagen in April, starting have a few feet on the ground and not as it grapples with the consequences of a off ices in the Nordic region. Many of them with around 10 people. only operating from a hotel reception or huge money-laundering scandal. are interested in hiring locally to build Pension funds in particular are desper- a hotel lobby,” Mark Oestergaard, head But Nordic banks are keen to hold on their presence. ate for investment ideas as entrenched People cross a street in Helsinki, Finland. The Nordic countries, best known for of the Nordic operations, said. “That is to to their business, with the resources they “We see an opportunity locally to grow negative rates and high stock valuations their universal welfare models and domination of world happiness rankings, signal to the clients that this is not just for have. Nordea plans to increase its asset our investment banking and private push the industry into increasingly risky now have a surplus of cash after years of central bank stimulus. a brief moment in time in the investment management operations by doubling in- banking business organically,” said Klaus corners of the asset market. Many are rely- industry. This is for the long haul.” flows from pension funds, Snorre Storset, Thune, co-head of Nordic banking at ing more than ever on so-called alterna- wealth despite having one of the world’s are some of the highest on the planet. The It’s also worth noting that roughly a head of wealth management, said. He’s JPMorgan, which has about 40 bankers tive investments, which tend to be illiquid highest tax burdens. It also boasts some banks and asset managers Bloomberg third of Nordic corporate deals involve also targeting private banking for growth, in London handling the Nordic corporate and diff icult to price. of the smallest gaps between rich and spoke to also cited the region’s stable a buyer outside the region, and in most but points to the “tough competition” as market. He also says that “there are a lot of The region has been able to amass its not-so-rich, while GDP-per-capita rankings political and regulatory environment, and cases that buyer will bring its own banks. “others also see that it’s very attractive.” Gulf Times Wednesday, February 19, 2020 5 BUSINESS

BHP sees next six weeks as key for virus hit to commodities

Bloomberg contained this quarter, annual growth gross domestic product will grow 4% in a separate statement, as it posted Melbourne forecasts will need to be revised down, in the fi rst quarter, according to the fi rst-half earnings that jumped 29%. Huw McKay, BHP’s vice president of median of 18 forecasts since Jan. 31, The miner said it expects annual market analysis and economics, said which would be the lowest level since crude oil demand to decline by about HP Group warned raw materi- yesterday in a blog post. “This would 1990. 200,000 barrels a day as a result of als demand and prices will take then fl ow directly through to lower While BHP’s new chief executive disruption so far, a fi gure that may rise Ba hit on lower growth in China if commodity demand and price expec- offi cer Mike Henry told reporters the further. the fallout from the coronavirus out- tations.” producer hasn’t experienced any ma- If virus impacts are contained by the break extends beyond the end of next BHP forecasts China’s growth to jor impact to demand from China so end of March, consumers of materials month. slow to about 6% this year and as low far, caution over the virus outlook led such as steel and copper should fully The world’s biggest miner fl agged as 5.75% in 2021 based on a swift re- the company to take a more conserva- recover from the second quarter – and China’s construction and manufactur- covery from the virus outbreak. In a tive approach on its fi rst-half dividend potentially operate at higher than usu- ing sectors need to return to regular worst-case scenario that combined a payment. al rates – meaning that overall materi- operations in April to ensure that ex- lingering impact from the virus and a Potential negative impacts for com- als demand in 2020 will be unaff ected, isting disruption can be made up for re-escalation of trade war tensions, the modities markets have “barely been according to BHP’s McKay. before the end of year. nation’s economic expansion this year priced in,” according to Citigroup Inc. About 90% of China’s steel pro- Mike Henry, chief executive offi cer could slip to 5.5%, the miner said. A decision to pay out a lower pro- duction, more than 80% of auto pro- at BHP Group Ltd, discusses fi rst-half Goldman Sachs Group Inc and Mac- portion of earnings compared to a year duction and fl oor space under con- earnings, the impact of coronavirus quarie Group Ltd are among banks earlier refl ected “caution due to near struction and 80% of infrastructure on the business and his outlook for who’ve cut China growth forecasts for term market volatility driven by the investments are located in provinces iron ore. both the fi rst quarter and the full year 2019 coronavirus disease outbreak, with announced restart dates before If the impact of the outbreak can’t be as a result of the outbreak. China’s trade policy and geopolitics,” BHP said the end of February, he said.

Sensex falls as China shutdowns add to economic woes Asian markets tumble

Bloomberg, Reuters compiled by BSE Ltd fell, led by a Mumbai gauge of telecom companies. Bharti Airtel Ltd dropped the most among Sensex stocks, falling India’s stock benchmark declined 3.1%, while State Bank of India’s as coronavirus hits for a fourth straight day, with 1.1% gain was the biggest. disruptions from the coronavirus Meanwhile the Indian rupee outbreak clouding the outlook tumbled by 24 paise to settle for an economy already facing its at 71.56 against the US dollar weakest expansion in 11 years. yesterday as concerns over the The S&P BSE Sensex Index fell economic fallout from corona- 0.4% to close at 40,894.38 points virus outbreak continued to roil earnings and growth in Mumbai, its longest losing forex market sentiment. Besides, streak in more than four months, sustained foreign fund outflows AFP after sliding as much as 1.1%. and subdued equities also put Hong Kong The NSE Nifty 50 Index retreat- pressure on the rupee. ed by the same magnitude. Most Starting off the session on a markets in Asia fell, with the MSCI weaker note, the rupee weakened sian markets tumbled yester- Asia Pacific Index losing 1.1%. further to hit the day’s low of 71.56 day after Apple warned the new The S&P BSE PSU Index, a against the American currency. Acoronavirus had hit output and gauge of India’s 63 state-run com- The domestic unit finally settled demand in China, fuelling fears over the panies, erased losses following the day at 71.56, a drop of 24 paise wider impact of the epidemic on corpo- bunched trades in some of its big- over its previous close. rate earnings and economic growth. gest contributors including Coal The dollar index, which gauges Investors looked past a positive lead India Ltd, Oil & Natural Gas Corp the greenback’s strength against from European bourses to focus on the and Power Grid Corp of India Ltd. a basket of six currencies, rose by spiralling fallout from the virus that has India, the world’s second-most 0.15% to 99.15. The 10-year govern- so far killed more than 1,800 people and populous nation, is facing the rip- ment bond yield was at 6.39%. infected nearly 72,500, mostly in main- ple eff ects of virus-related factory Global crude oil benchmark land China. shutdowns in China causing sup- Brent futures dropped 1.89% to As well as denting company bottom ply chain disruptions. Quarterly trade at $56.58 per barrel. lines, the virus has sparked panic buying, profit at more than half of Nifty 50 Global crude oil benchmark economic jitters and the cancellation of companies missed estimates in Brent futures dropped 1.89% to high-profi le sporting and cultural events. the latest reporting season, while trade at $56.58 per barrel. “Best to buckle in as we could be in for India’s central bank has begun “Rupee started the day at a bumpy ride (over) the next few weeks,” injecting funds into the financial weak note crossing beyond 71.50, said Stephen Innes of AxiCorp. system to try to boost lending. majorly on back of selling from “I’m struggling to fi nd any research The China shutdown is having institution in risky assets as FIIs report that doesn’t suggest (COVID-19) an impact “across the globe likely to be pulling out money could signifi cantly aff ect short term and now even in India,” said AK from equities as the global market earnings.” Prabhakar, head of research at keep a check on slowdown eff ects Apple suppliers in Asia were hit by the IDBI Capital Market Services Ltd. on rising Corona virus fears in tech giant’s warning that it would miss its “That’s the market’s fear today.” China,” according Jateen Trivedi, quarterly revenue forecast because of the Fifteen of the 19 sector indexes a senior research analyst. virus, dragging markets lower. Tokyo’s benchmark Nikkei 225 index closed down 1.4% — its fourth straight session in the red — a day after data showed the economy shrank in the De- cember quarter, even before the eff ects of An external view of the Hong Kong Stock Exchange building. The Hang Seng index closed down 1.5% to 27,530.20 points yesterday. the virus hit Japan. Hong Kong was 1.5% lower as bank- infections outside hardest-hit Hubei lay concerns. European markets opened Global oil demand will suff er its fi rst ing heavyweight HSBC reported a 33% province, which Chinese offi cials say is lower yesterday, with London’s FTSE quarterly drop in a decade as the virus fall in 2019 pre-tax profits alongside a sign that the outbreak is under control. 100 and the Paris CAC both falling 0.5%. lashes China’s economy and its impact an announcement that it was cutting But World Health Organisation chief Germany’s DAX was down 0.6%. Eu- ripples throughout the world, the In- 35,000 jobs. Tedros Adhanom Ghebreyesus said the rogroup chief Mario Centeno predicted ternational Energy Agency warned last Its shares were off 2.8%. Mainland trend “must be interpreted very cau- Monday the coronavirus would have a week. China’s benchmark Shanghai Composite tiously”. “temporary” impact on the eurozone and Brent Crude fell 1.5% and West Texas Index recovered earlier losses to close up IMF chief Kristalina Georgieva said on the WHO warned against over-reacting Intermediate was down 1.3%. Gold, seen 0.1%. Elsewhere, Singapore fell 0.6% as Sunday there could be a cut of around 0.1- about the epidemic. as a safe haven in times of uncertainty, investors digested the government’s de- 0.2 percentage points to global growth US markets were closed on Monday for was up 0.5%. cision to cut its economic growth fore- but stressed there was much uncertainty a holiday. In Tokyo, the Nikkei 225 closed cast for this year as the virus batters the about the virus’s economic impact. China is the world’s biggest importer down 1.4% to 23,193.80 points; city state’s tourism and trade. Further moves by China’s central bank and consumer of oil, and crude prices Shanghai — Composite ended up The Bombay Stock Exchange building in Mumbai. The Sensex Seoul was off 1.5% and Taipei lost 1%. on Monday to cushion the world’s sec- have been particularly sensitive to the 0.1% to 2,984.97 points and Hong closed down 0.4% to 40,894.38 points yesterday. Sydney shed 0.2%. Investors have taken ond-largest economy against the health epidemic that has spread to nearly 30 Kong — Hang Seng closed down 1.5% some comfort from a slowdown in new crisis appear to have done little to al- countries and territories. to 27,530.20 points yesterday. Bullish calls for Korea won stay even as virus fears re-emerge

Bloomberg currency had slumped to a four-month 1,191 in the dollar-won one-month Seoul low last week amid heightened con- NDF to lock in 0.25% profi t. cerns over the coronavirus outbreak. The virus’s impact on the Korean Here are some market views: economy has been limited so far and nalysts are keeping their bullish Gaurav Garg (Head of Asia FX & rates Korea’s underlying fundamentals re- recommendations on the South strategy, Citigroup): Recommends main resilient. Lee Young Hwa (Econo- AKorean currency as they see the buying the won against dollar and yen mist, Kyobo Securities): Won may rise recent surge in coronavirus cases as as the currency is likely to retrace from to as high as 1,165 per dollar in Febru- temporary. “panic levels”. Sell one-month dollar- ary as risk aversion eases. Citigroup Inc, Credit Agricole CIB won NDF at 1,180, targeting a spot Spot is expected to decline further and Scotiabank have lifted their fore- move below 1,155 with an indicative into the year as central banks competi- casts for the won to as high as 1,155 per stop above 1,195. tively lower borrowing costs, spurring dollar. Negative spillover from infections a decline in the dollar. Their optimism is helping the won, could dampen expectations of narrow- Qi Gao (FX strategist, Scotiabank): which trimmed losses that were trig- ing growth diff erential between the US “The substantial increase in Hubei’s gered last week by the jump in new and rest of the world, posing a chal- new confi rmed cases shocked the mar- cases in Hubei, the Chinese province at lenge to the extent of bullishness for ket with rising USD/CNH, however, the centre of the epidemic. EM Asia FX beyond this retracement. from a diff erent perspective, it sug- The South Korean currency remains On a nominal basis, the won may gests Hubei’s hospitals are able to treat the top-performing Asian currency strengthen more than the off shore all the infection cases properly now, this month with 0.7% gain. yuan. Eddie Cheung (Emerging market which in fact is a positive sign”. “The jump in China infections this strategist, Credit Agricole CIB): Buy the won as the spread of the morning is predominantly seen as a An employee inspects sheets of South Korean 1,000 won banknote at the Korea Minting, Security Printing & ID Card “The jump in cases today refl ects a coronavirus in China may peak this temporary event due to changes in the Operating Corp factory in Geyongsan (file). Analysts are keeping their bullish recommendations on the currency as methodology change in counting the month and then slow. disease’s testing method,” said Min they see the recent surge in coronavirus cases as temporary. cases – that doesn’t impact our core Recommends selling dollar-won at Gyeong-won, an economist at Woori view”. Expects the Korean currency to 1,180 with a target of 1,150 and stop of Bank in Seoul. “Market focus is now in China is likely to spur optimism that soften the blow to South Korea’s econ- its plants. The won closed 0.3% lower rally further. Entered a short dollar- 1,200. Already has short dollar-off - on whether infections will slow down the economic impact from the out- omy, which has seen slower tourist ar- at 1,182.95 per dollar, after dropping as won trade last week, targeting a move shore yuan position, which has a tight again soon.” A slower rate of infection break will be limited. That’s likely to rivals and supply-part disruptions to much as 0.4% during the session. The back to 1,170; recommends stop at correlation with the won. Gulf Times 6 Wednesday, February 19, 2020 BUSINESS

Foreigners pile into Wildfi res are just a Japanese bonds while locals rush overseas

Bloomberg Securities Japan in Tokyo. “They Tokyo may also be using Japan’s bond beginning of Australia market as an alternative to US bills.” he grass is always green- While the Federal Reserve’s er on the other side of eff orts to fi x the US repurchase Tthe fence, or so the say- market to avert a liquidity crunch ing goes. That’s certainly how like that seen in September have it looks in bond markets at the curbed returns for American in- dollar’s climate woes moment. vestors reaching overseas, things Japanese investors have piled have improved recently. Bloomberg into overseas bonds markets, After the Fed pumped in London buying ¥1.6tn ($15bn) of foreign $256bn to avoid a funding short- debt last week, according to data age over year-end, the cost to from the fi nance ministry. borrow dollars has dropped, he Australian dollar could fi nd long Meanwhile, foreign investors decreasing returns for lending term relief from cyclical down- scooped up ¥1.7tn of Japanese them in the funding markets to Tturns if the country’s government bonds in the same period, the less than 2%, from near 3% a decides to take climate change seriously, second most on record going year ago. according to ABN Amro Bank NV. back to 2005. At the same time, Japanese The Dutch bank expects the country’s It sounds counterintuitive, funds that are fl ooding into focus to turn toward environmental poli- but both investment decisions overseas bonds in search of yield cies after wildfi res wrecked havoc on the make economic sense. are fi nding that Treasuries off er economy and hurt the currency. Negative-yielding Japanese the best returns among devel- A switch to a greener economy could government bonds still off er US oped-government debt. alter the fundamental performance of investors some pick-up. Using The best opportunities may the Aussie, making it less driven by global cross-currency swaps, 10-year have been months ago but the risk sentiment, says its senior foreign- JGBs can earn around 2% annu- search is gaining intensity as Ja- exchange strategist Georgette Boele. ally, about 40 basis points higher pan’s fi scal year-end looms on “The character of the Australian dollar than comparable US Treasuries. March 31. could change if the government makes “The improvement in the Yields overseas have been fall- climate policy and reaching the Paris basis swaps may have made it ing and they may not be entirely Agreement more of a priority,” she said in easier for foreign investors to satisfi ed with current levels, but a note to clients. come into JGBs,” said Takafumi they have little choice now, said “The Australian dollar will probably Yamawaki, head of local rates State Street Global Advisors’ Hi- become less cyclical, less commodity- and FX research at JPMorgan roshi Yokotani. driven, and less dependent on the state of the Chinese economy and more driven by the state of the domestic economy.” The Aussie dollar has suff ered from As carry trades suffer, rupiah the spread of the coronavirus, which is seen as impacting Chinese demand for bonds prevail on rate advantage Australian commodities. yesterday, it Australian dollar banknotes of various denominations are arranged for a photograph in Sydney. The Australian dollar could find declined 0.5% to 66.80 US cents after an long term relief from cyclical downturns if the country’s government decides to take climate change seriously, according to ABN Bloomberg ways and in foreign exchange Apple Inc sales warning highlighted the Amro Bank. Hong Kong markets, investors borrow in a larger-than-expected economic impact lower-yielding currency and put of the virus. Australian administration remains un- Yet even if the Australian economy export revenues, Boele said. “The results the money into those with higher It is among the worst-performing interested in shifting climate policies, does become more environmentally sus- of investment and lower CO2 emissions In a world of shrinking carry rates. Group-of-10 currencies this year, lead- public opinion is changing after the bush tainable, the transition would be a tough would only become visible over time – returns, Indonesian bonds are a Bank Indonesia policy has ing losses alongside fellow risk-sensitive fi res. one in the short term for the Aussie. years or even decades,” she said. standout. also been a key ingredient. After currencies the New Zealand dollar and There’s also the possibility the gov- A sizeable cut in coal, LNG and ag- “So in the coming years the funda- While risk premiums have nar- lowering the benchmark rate by Norwegian krone, having dropped al- ernment could be forced via litigation to ricultural exports would reduce car- mentals of the Australian economy will rowed with falling yields, rupiah 1 percentage point last year, the most 5% in 2020. meet climate policy goals as in the Neth- bon dioxide emissions from mining and probably deteriorate, and this could debt gained almost 5% this year central bank is weighing further While ABN Amro notes the current erlands, Boele said. transport but would also result in lower weigh on the Australian dollar.” to beat all its emerging Asian cuts to counter the fallout from peers. Superior real rates and the the virus outbreak. prospect of more easing support The benchmark reverse the bonds even as some tradi- repurchase rate is at 5%, which tional carry trades have suff ered leaves plenty of scope for easing despite the prevalence of loose and this would supercharge long Apple’s forecast cut on virus drags down Asia tech shares monetary policies. positions held for carry. At the heart of the appeal are Regular intervention by the Indonesia’s real rates which top central bank has also lent a Bloomberg so this is just a temporary, knee-jerk Trump’s administration is considering bal technology companies. Apple’s sales those of other emerging Asian measure of stability to the rupiah, Tokyo sell-off ,” said Naoki Fujiwara, chief fund new trade restrictions that would limit warning and the share moves in Asia bonds. This would help to provide and purchases of over $1.6bn of manager at Shinkin Asset Management the use of US equipment to make chips highlight how heavily exposed the sec- a buff er against any flight-to-safe- government debt in January have Company. for China’s Huawei Technologies Com- tor is to disruptions in the world’s most ty shock fuelled by the coronavi- helped sentiment. sian technology stocks tumbled While tech investors have been ex- pany. populous country. rus outbreak. Economists predict that Indo- after Apple Inc said it doesn’t ex- pecting an impact from the virus, “the “Clients’ orders for chipmakers such “Although the Apple news may have Accounting for inflation, 10- nesia’s current-account deficit Apect to meet its revenue guidance news may have come out sooner than as TSMC may be weaker in the second been largely expected, the fl uid situa- year rupiah debt off ers almost widened to $8.1bn last quarter for the March quarter due to work slow- they had anticipated.” quarter due to lower smartphone de- tion and continued uncertainty with the 4%, compared with about 2% for from $7.7bn in the previous three downs and lower demand in China amid Apple’s results for the holiday quarter mand and production delays,” said Owen virus in China is causing some to worry Malaysian securities, which have months as the real eff ective the coronavirus outbreak. beat expectations on solid iPhone de- Cheng, an analyst at President Capital about how bad the impact will be in the the second-highest real yields in exchange rate held firm. Apple said that global iPhone supply mand and surging sales of wearable de- Management. “The latest China tech re- end,” said Matthew Kanterman, an ana- the region. As the precise impact of the vi- will be temporarily constrained due to vices. Still, mounting concern over the striction that the US is considering is the lyst with Bloomberg Intelligence. “We’re The gains in Indonesian debt rus outbreak is still unclear, inves- production ramping up more slowly than virus outbreak has seeped into corporate strictest we’ve seen so far.” looking for the smartphone supply chain are in contrast to the disappoint- tors may choose to plough some anticipated. In addition, demand for the guidance and weakened tech share prices The virus outbreak has compounded to begin getting back to a more normal ing performance in popular carry of the carry from Indonesian debt company’s products has slumped amid over the past few weeks. concerns stemming from the trade war cadence in March and into the second positions such as selling volatility. into hedging against losses in store closures in China. Tech investors were additionally rat- regarding China’s status as a reliable quarter, but a lot can happen between Carry trades work in numerous more vulnerable positions. “Apple earnings in January were good, tled Tuesday by reports that President market and supply chain partner for glo- now and then.” Bond market braces for fresh trillion-dollar Gold ETFs in India lure infl ows wave of fund flows even as buyers shun jewellery

Bloomberg Edwards sees risks looming in global credit Bloomberg Hong Kong For JPMorgan, an increasingly plausible Mumbai explanation for the bond flows is portfolio rebalancing by retail investors, who are Investors who poured money into bond funds reinvesting their equity gains into bonds. It old exchange-traded last year are showing little sign of stopping also implies that buying of stocks may have funds in India are popular in 2020, adding more downward pressure to reached a peak, acting as a constraint to a Gagain as risks to the global yields. further equity-market rally, Panigirtzoglou economy escalate even as jewel- Inflow to fixed-income assets nearly doubled said. lery sales languish in the world’s last year to $1tn, according to data from “If the rebalancing theory is correct, fixed second-biggest consumer of the Morningstar Inc. income is structurally supported here by precious metal. With fears about the coronavirus outbreak retail investors,” he said. “If you have another Indians invested the most in dimming growth prospects for the global $1tn going into bond funds, forget about gold ETFs in more than seven years economy and prompting a search for haven yield-curve steepening.” in January, boosting assets man- assets, bond funds are on track to exceed this But an easing of fears around the virus aged by the 11 funds selling the haul in 2020. outbreak or resurgent inflation could spell a securities to Rs62bn ($870mn), “We’re in uncharted territory,” Nikolaos loss of momentum for bond funds, according according to the Association of Panigirtzoglou, a JPMorgan Chase & Co to John Velis, a strategist at BNY Mellon, in Mutual Funds in India. strategist, said in an interview. “Based on a research note. Portfolio rebalancing flows, While that’s 31% higher than a January flows, it’s going to be another very alongside similar trades being made by year earlier, it’s still about halve strong year for bond fund flows.” risk-parity funds, are vulnerable to “large the 120bn-rupee record touched Bond funds are just a few weeks away from drawdowns” if there is a change in market in January 2013, the industry reaching their longest unbroken streak of narrative, he said. group’s data showed. inflows since the financial crisis. They have The wall of fresh money hitting fixed income “These fl ows will continue for likely benefited from concerns about the means “yields are likely to grind lower,” at least the next couple of years impact of the China-US trade war on global said Hayden Briscoe, head of fixed income and assets will move toward the economic growth and interest rate cuts by for Asia-Pacific at UBS Asset Management highs that were seen in 2013, if not Gold price has outpaced India’s equity markets, rallying by almost a quarter in the past year, central banks including the Federal Reserve, in Hong Kong. He prefers high-yield debt surpass them,” said Chirag Mehta, while the benchmark S&P BSE Sensex has risen 16% according to Wing Chan, director of manager within credit, and recommends substantial a senior fund manager at Quan- research practice for EMEA and Asia at overweights to the US and China among tum Mutual Fund. The price of the metal has out- keep interest rates low for some US-China trade war issues, Brexit, Morningstar Inc. government bonds. “The volatility in equity mar- paced India’s equity markets, ral- time. slowing global growth, increas- On their current trajectory, inflows to “Excess liquidity to combat deflation kets and better returns from gold lying by almost a quarter in the That’s even as holdings in global ing income disparity, geopolitical bond funds in 2020 will almost double last continues to fuel twin bubbles in scarce over the last year has driven peo- past year, while the benchmark gold ETFs are near an all-time high tensions, and the struggle to re- year’s record total, according to a research ‘yield’ and scarce ‘growth’ assets,” the ple to gold.” S&P BSE Sensex has risen 16%. amid the fl ight to haven assets. vive growth in India,” said Vinit note from BofA Securities. Allocations to BofA Securities analysts said, adding that By contrast, gold imports halved Overseas, bullion is trading near Benchmark gold futures were Sambre, head of equities at DSP investment grade credit alone are on pace to they expect the US 10-year Treasury yield in January, according to person fa- its highest level since 2013 as the 0.6% higher at Rs41,000 per Investment Managers Pvt, which total $587bn, representing an increase of 91% to test all-time lows, implying a decline of miliar with government data, as spreading coronavirus outbreak in 10 grams in Mumbai yesterday, oversees $7.5bn in stocks. from last year. about 25 basis points from current levels physical demand remained lack- China threatens global economic just shy of the record hit last “One way to cover some of these Read more about why SocGen’s Albert of around 1.58%. lustre on record high prices and a growth and amid expectations month. would be to allocate some portion slowing economy. that the US Federal Reserve will “We see no dearth of risks, be it of assets to gold.” Gulf Times Wednesday, February 19, 2020 7 BUSINESS

KUWAIT KUWAIT OMAN

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

Al-Eid Food Ksc 72.00 0.00 25,000 Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 96.00 9.71 1,199,771 Qurain Petrochemical Industr 275.00 -3.17 2,287,193 Oman Oil Marketing Company 0.87 -0.46 12,500 Gulf Petroleum Investment 21.50 -0.92 2,681,448 Advanced Technology Co 700.00 0.00 - Oman National Engineering An 0.14 2.96 913,211 Mabanee Co Sakc 875.00 -0.34 1,146,974 Ekttitab Holding Co Sak 15.40 -4.94 1,023,642 Oman Investment & Finance 0.12 -0.81 692,312 Inovest Co Bsc 71.40 0.00 - Real Estate Trade Centers Co 28.80 3.60 105,448 Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 21.60 0.00 - Acico Industries Co Kscc 124.00 -0.80 202,688 Oman Flour Mills 0.60 0.00 - Mena Real Estate Co 36.80 -1.08 436,530 Kipco Asset Management Co 109.00 10.66 2,715,528 Oman Fisheries Co 0.08 0.00 2,000 Amar Finance & Leasing Co 51.00 2.00 50,210 National Petroleum Services 1,340.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 500.00 0.00 - Alimtiaz Investment Group 126.00 0.00 923,909 Oman Education & Training In 0.22 0.00 - National Consumer Holding Co 100.00 0.00 - Ras Al Khaimah White Cement 65.00 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 40.00 0.00 - Kuwait Reinsurance Co Ksc 173.00 0.00 7,000 Oman Chlorine 0.35 0.00 - Equipment Holding Co K.S.C.C 19.90 -2.93 650,540 Kuwait & Gulf Link Transport 61.00 0.00 - Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 81.50 0.00 - Humansoft Holding Co Ksc 3,278.00 -0.06 8,252 Oman Cement Co 0.28 0.00 - Gfh Financial Group Bsc 71.10 -1.80 328,326 Automated Systems Co Kscc 68.90 5.51 40,000 Oman Cables Industry 0.59 0.00 - Energy House Holding Co Kscp 21.00 -7.08 61,060 Metal & Recycling Co 0.00 - Oman & Emirates Inv(Om)50% 0.00 - Zad Holding Co 14.20 -0.70 4,830 48.50 0.06 Kuwait Co For Process Plant 281.00 0.00 43,909 Gulf Franchising Holding Co -17.76 5,559 Natl Aluminium Products 0.00 - Widam Food Co 6.41 -1.08 93,685 69.90 0.17 Al Maidan Dental Clinic Co K 1,220.00 0.00 - Al-Enma’a Real Estate Co -1.18 5,000 National Real Estate Develop 0.00 - Vodafone Qatar 1.16 -0.09 806,721 67.00 5.00 National Shooting Company 10.20 -5.56 1,254,176 National Mobile Telecommuni -1.41 52,829 National Mineral Water 0.00 - United Development Co 1.22 2.88 34,533,959 771.00 0.09 Al-Ahleia Insurance Co Sakp 430.00 0.00 - Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 0.43 1.17 583,075 0.00 0.31 Wethaq Takaful Insurance Co 29.60 0.00 - Unicap Investment And Financ 0.00 - National Gas Co 0.00 - Qatar & Oman Investment Co 0.52 0.97 472,471 51.50 0.24 Salbookh Trading Co Kscp 48.40 0.83 69,754 Al Salam Group Holding Co 0.98 616,259 National Finance Co 0.00 - Qatar Navigation 5.60 2.75 883,546 30.80 0.14 Aqar Real Estate Investments 77.00 0.00 100,000 Al Aman Investment Company 0.66 462,150 National Detergent Co Saog 0.00 - Qatar National Cement Co 4.99 0.30 1,603,034 60.90 0.63 Hayat Communications 55.80 0.00 - Mashaer Holding Co Ksc 4.42 2,078,377 National Biscuit Industries 0.00 - Qatar National Bank 19.43 1.62 1,776,044 78.00 3.92 Soor Fuel Marketing Co Ksc 125.00 -0.79 14,514 Manazel Holding 0.00 50,100 National Bank Of Oman Saog -0.97 65,601 Qatar Islamic Insurance Grou 6.58 2.00 2,800 38.90 0.20 Tamkeen Holding Co 5.20 0.00 - Tijara And Real Estate Inves 9.59 40,203 Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 3.15 1.81 8,231 53.70 0.08 Alargan International Real 107.00 0.00 - Jazeera Airways Co Ksc 0.00 248,771 Muscat Insurance Co Saog 0.00 - Qatar International Islamic 8.90 1.46 411,234 1,010.00 0.54 Burgan Co For Well Drilling 76.40 0.00 - Commercial Real Estate Co 0.00 - Muscat Gases Company Saog 0.00 100 Qatari Investors Group 1.59 1.21 456,166 97.50 0.18 Kuwait Resorts Co Kscc 60.00 -2.12 560,426 National International Co 0.00 1,000 Muscat Finance 1.61 50,000 Qatar Islamic Bank 16.40 1.80 407,190 79.00 0.06 Oula Fuel Marketing Co 127.00 0.00 73,355 Taameer Real Estate Invest C -5.56 2,907,056 Muscat City Desalination Co 0.00 200 Qatar Gas Transport(Nakilat) 2.19 2.29 7,372,885 23.80 0.11 Palms Agro Production Co 54.00 -10.00 10,000 Gulf Cement Co -2.90 180,000 Majan Glass Company 0.00 - Qatar General Insurance & Re 2.31 0.00 - 46.80 0.18 Mubarrad Holding Co Ksc 68.00 -0.73 245,412 Heavy Engineering And Ship B -0.25 97,300 Majan College 0.00 - Qatar German Co For Medical 0.64 -0.47 2,103,493 403.00 0.18 Shuaiba Industrial Co 127.00 0.00 - National Real Estate Co -0.78 1,696,656 Hsbc Bank Oman -0.82 105,000 Qatar Fuel Qsc 20.07 0.05 203,357 89.20 0.12 Aan Digital Services Co 13.70 -1.44 7,103,461 Al Safat Energy Holding Comp -0.45 553,538 Hotels Management Co Interna 0.00 - Qatar First Bank 1.08 2.67 3,268,146 21.90 1.25 First Takaful Insurance Co 47.00 -2.89 17,716 Kuwait National Cinema Co 0.98 30,100 Gulf Stone 0.00 - Qatar Electricity & Water Co 15.92 1.08 224,281 828.00 0.12 Kuwaiti Syrian Holding Co 32.50 -0.61 1,289 Danah Alsafat Foodstuff Co -1.35 30,020 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 9.70 0.31 16,804 14.60 0.31 National Cleaning Company 75.00 2.32 3,999,850 Independent Petroleum Group 0.00 - Gulf Investments Services -1.49 288,685 Qatar Cinema & Film Distrib 2.21 0.00 - 470.00 0.07 United Real Estate Company 60.50 0.17 198,848 Kuwait Real Estate Co Ksc -0.96 2,362,701 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 2.13 -3.96 149,033 103.00 0.11 Agility 800.00 -1.48 1,089,993 Salhia Real Estate Co Ksc 0.45 599,750 Gulf International Chemicals -0.93 15,000 Qatar Insurance Co 3.05 -0.46 679,129 448.00 0.11 Kuwait & Middle East Fin Inv 86.00 -2.82 41,016 Gulf Cable & Electrical Ind -1.22 56,995 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 0.66 -2.08 4,398,142 486.00 5.70 Fujairah Cement Industries 45.50 -1.09 100,250 Kuwait Finance House -0.62 7,548,451 Global Fin Investment 0.00 - Ooredoo Qpsc 6.49 1.79 2,517,278 804.00 0.06 Livestock Transport & Tradng 179.00 0.00 - Gulf North Africa Holding Co 0.00 - Galfar Engineering&Contract 0.00 98,130 National Leasing 0.81 4.36 2,576,555 61.20 0.07 International Resorts Co 0.00 0.00 - Hilal Cement Co 0.00 - Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 0.70 -1.42 3,930,686 100.00 0.39 National Industries Grp Hold 237.00 -0.84 931,072 Osoul Investment Kscc 1.18 370,000 Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 1.83 2.98 6,800,314 86.00 0.06 Warba Insurance Co 61.00 0.00 - Gulf Insurance Group Ksc 0.00 - Financial Corp/The 0.00 - Al Meera Consumer Goods Co 15.40 1.38 504 658.00 0.10 First Dubai Real Estate Deve 47.50 -1.04 1,795,196 Umm Al Qaiwain General Inves 0.00 - Dhofar Tourism 0.00 - Medicare Group 7.28 3.84 367,369 66.70 0.49 Al Arabi Group Holding Co 198.00 0.00 - Aayan Leasing & Investment -1.72 10,737,157 Dhofar Poultry 0.00 - Mannai Corporation Qsc 3.04 -0.20 495,353 45.80 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc 4.05 8,148 Dhofar Intl Development 0.00 - Masraf Al Rayan 4.05 0.17 1,440,550 38.50 0.30 Mobile Telecommunications Co 566.00 -1.74 3,454,363 National Investments Co -2.11 907,668 Dhofar Insurance 0.00 - Al Khalij Commercial Bank 1.30 0.00 2,227,368 139.00 0.18 Eff ect Real Estate Co 20.50 0.00 - Commercial Facilities Co -2.38 1,822,450 Dhofar Generating Co Saoc 0.00 - Industries Qatar 8.94 0.17 1,631,490 205.00 0.20 Tamdeen Real Estate Co Ksc 304.00 0.00 1,402 Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 1.79 0.62 128,172 66.50 1.28 Al Mudon Intl Real Estate Co 19.90 -7.44 1,764,716 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed 0.00 - Investment Holding Group 0.53 -1.12 2,783,624 350.00 0.12 Kuwait Cement Co Ksc 225.00 0.90 14,041 Real Estate Asset Management 0.00 - Dhofar Beverages Co 0.00 2,280 Gulf Warehousing Company 4.53 0.69 106,488 90.00 0.26 Sharjah Cement & Indus Devel 42.20 0.00 - Construction Materials Ind 0.00 - Gulf International Services 1.38 0.59 874,807 0.04 Kuwait Portland Cement Co 941.00 -1.16 74,580 Computer Stationery Inds 0.00 - Ezdan Holding Group 0.58 0.52 7,726,776 0.26 Educational Holding Group 357.00 -1.11 17,650 Bankmuscat Saog 0.00 547,905 Doha Insurance Co 1.15 0.88 1,000,000 0.45 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa -1.00 32,060 Doha Bank Qpsc 2.23 -10.00 92,826 0.10 Asiya Capital Investments Co 40.00 0.00 49,445 OMAN Bank Dhofar Saog 0.00 41,500 Dlala Holding 0.56 1.81 221,024 0.12 Kuwait Investment Co 160.00 -3.03 3,411,021 Arabia Falcon Insurance Co 0.00 - Commercial Bank Psqc 4.59 -0.65 1,095,839 Company Name Lt Price % Chg Volume 0.10 Burgan Bank 300.00 -0.99 892,668 Aloula Co 0.00 - Barwa Real Estate Co 3.35 0.48 1,392,128 0.08 Kuwait Projects Co Holdings 205.00 -0.97 79,163 Al-Omaniya Financial Service 0.12 0.00 58,500 Al Khaleej Takaful Group 1.84 0.05 81,485 Voltamp Energy Saog 0.15 0.00 - Al Madina For Finance And In 16.30 -3.55 1,773,703 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 0.75 -2.09 7,058,095 Vision Insurance Saoc 0.11 0.00 - Kuwait Insurance Co 340.00 0.00 20,000 Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 48.00 0.00 - Al-Anwar Ceramic Tiles Co 0.17 -1.74 241,301 United Power Co Saog 2.16 0.00 300 Intl Financial Advisors 58.00 1.93 985,835 Al Suwadi Power 0.06 0.00 16,500 United Finance Co 0.09 0.00 - KUWAIT First Investment Co Kscc 36.90 0.54 12,419,372 Al Sharqiya Invest Holding 0.09 -2.11 65,230 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 14.80 6.47 5,578,000 Al Maha Petroleum Products M 0.74 0.00 28,200 Takaful Oman 0.13 0.00 1,500 Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 38.00 1.33 11,600 Al Maha Ceramics Co Saoc 0.20 0.00 7,560 Taageer Finance 0.11 0.00 - Egypt Kuwait Holding Co Sae 390.00 7.73 1,000 Al Madina Takaful Co Saoc 0.08 0.00 100,000 Sultan Center Food Products 54.60 2.82 306,110 Sweets Of Oman 0.55 0.00 - Coast Investment Development 42.50 -2.30 1,616,100 Al Madina Investment Co 0.03 9.68 4,233,439 Kuwait Foundry Co Sak 327.00 0.00 - Sohar Power Co 0.06 0.00 110 Privatization Holding Compan 49.80 0.61 101,198 Al Kamil Power Co 0.35 0.00 1,000 Kuwait Financial Centre Sak 113.00 -0.88 1,912,444 Sohar International Bank 0.11 0.00 76,158 Injazzat Real State Company 80.00 1.27 65,317 Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 177.00 -9.69 149,615 Smn Power Holding Saog 0.07 0.00 - Kuwait Cable Vision Sak 14.00 0.00 - Al Jazeera Steel Products Co 0.13 -2.29 296,800 Kuwait Finance & Investment 53.80 1.51 708,950 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 38.00 0.00 - Al Jazeera Services 0.20 -1.49 130,744 National Industries Co Ksc 171.00 0.59 40,907 Shell Oman Marketing 1.10 -7.17 50,147 Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.06 0.00 145,000 Kuwait Real Estate Holding C 31.60 0.32 5,200 Sharqiyah Desalination Co Sa 0.26 0.00 - Aviation Lease And Finance C 266.00 -0.75 60,484 Al Buraimi Hotel 0.88 0.00 - Securities House/The 46.50 0.87 3,967,446 Sembcorp Salalah Power & Wat 0.14 0.00 - Arzan Financial Group For Fi 40.00 0.76 17,624,828 Al Batinah Power 0.06 0.00 110,486 Boubyan Petrochemicals Co 637.00 0.00 141,791 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 14.80 3.50 13,019,090 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 260.00 -0.38 117,175 Salalah Mills Co 0.50 0.00 - Kuwait Business Town Real Es 42.80 -1.61 339,673 Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 339.00 -0.88 952,643 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 105.00 0.00 - Al Anwar Holdings Saog 0.09 -1.16 346,519 National Bank Of Kuwait 1,015.00 -0.98 7,325,302 Sahara Hospitality 3.43 0.00 - Specialities Group Holding C 80.00 -1.11 20,000 Al Ahlia Insurance Co Saoc 0.40 0.00 - Commercial Bank Of Kuwait 506.00 0.00 161,600 Renaissance Services Saog 0.51 0.00 44,832 Abyaar Real Eastate Developm 6.80 -6.85 6,301,790 Ahli Bank 0.15 0.69 126,841 Kuwait International Bank 275.00 -0.36 1,049,192 Raysut Cement Co 0.51 0.00 203,752 Dar Al Thuraya Real Estate C 73.00 -13.51 34,010 Acwa Power Barka Saog 0.60 0.00 - Gulf Bank 297.00 -1.33 3,968,184 Phoenix Power Co Saoc 0.07 0.00 22,563 Kgl Logistics Company Kscc 35.10 0.00 - Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 30.80 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 249.00 0.00 210,726 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 30.70 -2.54 2,515,351 Ooredoo 0.53 0.00 54,805 Jiyad Holding Co Ksc 44.40 7.77 2,433,497 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 21.80 -0.91 276,663 Ominvest 0.34 0.00 - Warba Capital Holding Co 67.40 0.00 - #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 850.00 0.00 - Oman United Insurance Co 0.34 0.00 - Gulf Investment House Ksc 60.80 -0.33 30,002 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.66 0.00 37,851 A’ayan Real Estate Co Sak 70.00 -2.78 118,349 Boubyan Bank K.S.C 638.00 -0.16 213,573 Oman Refreshment Co 1.21 0.00 - Investors Holding Group Co.K 12.30 -4.65 10,042,900 Ahli United Bank B.S.C 327.00 -2.10 15,668,665 Oman Qatar Insurance Co 0.09 -1.08 20,000 Al-Mazaya Holding Co 63.00 -1.72 701,000 Osos Holding Group Co 120.00 0.84 328,484 LATEST MARKET CLOSING FIGURES China stock recovery nearing Dollar strength is masking yen’s enduring $1tn is drawing sceptics value as a haven

Bloomberg Bloomberg set up more factories overseas. Beijing Tokyo Unlike exporters, who typically buy yen to bring their earnings back to Japan, money tied up in oncern is mounting over the on’t write off the yen as a factories and off shore invest- speed of a nearly $900bn re- haven. ments stays put longer. Cbound in Chinese equities that’s D It’s true that Japan’s A steady stream of internation- been driven by bets of sustained govern- currency has failed to break out of al acquisitions by Japanese com- ment support. a relatively narrow range against panies has bolstered this trend. The CSI 300 index of stocks in Shang- the dollar in recent years – de- Japanese investors hunting for hai and Shenzhen has climbed 10% since spite a trade war, tensions in the higher-yielding foreign securi- a record sell-off earlier this month, wip- Middle East and North Korea, ties have also taken advantage of ing out the slide following the end of the Brexit and now a deadly viral out- bouts of yen strength, capping extended Lunar New Year break due to break. gains. Portfolio fl ow data show the coronavirus outbreak. The ChiNext But a close examination of price that pension funds acquired a gauge of smaller companies, typically moves, capital fl ows and Japan’s record amount of overseas bonds the most speculative part of the market, overseas investments shows that in January. has popped 21% from its bottom to be the the yen still off ers a safe harbour “Income from overseas invest- best performer in Asia Pacifi c this year. in times of trouble. ments in principle doesn’t come But the central bank’s move to with- While it has climbed just 2.5% back to Japan,” said Yukio Ishi- draw another 220bn yuan ($31.5bn) from versus the greenback since the zuki, senior currency strategist the banking system on Tuesday citing start of 2018, the yen has jumped at Daiwa Securities Co in Tokyo. ample liquidity, after pulling out a net 12% against a wider basket of its Along with dollar strength, this 700bn yuan the day before, may show Group-of-10 peers. has contributed to the yen trading the risks of chasing further gains. The Japan has maintained its status in a “stale” range, leading some CSI 300 index closed down 0.5% Tues- as the world’s biggest holder of traders to mistakenly question its day while the ChiNext climbed 1.2%, An investor watches his stocks at a securities exchange in Shanghai (file). Concern is mounting over the speed of a nearly $900bn foreign assets. In times of great haven status, according to Ishi- again notching its highest fi nish since rebound in Chinese equities that’s been driven by bets of sustained government support. domestic crisis, like the earth- zuki. December 2016. quake and tsunami of 2011, the The yen has traded between “Shares are acting like we’re in times However keen Beijing is to mitigate with Hengsheng Asset Management Co. that the government will go all out to put yen can surge rather than slump 105 and 112 against the dollar in of exuberance, not the middle of a huge economic pain, offi cials are also facing “The regulators will likely monitor the a fl oor under the economic slowdown. as investors bring money home to the past year. It fl uctuated more public health crisis,” said Shi Junbo, a constraints on aggressive monetary eas- eff ects of those on boosting the econo- “Expectations of more liquidity to be rebuild. against the euro over the same pe- fund manager at Hangzhou Xiyan Asset ing as they struggle with a mountain of my, before their next policy moves.” He unleashed means it won’t be bad year “The dollar’s resilience is riod, moving between 116 to 128. Management Co in Beijing. “But as a rule, debt built up in the aftermath of the 2008 plans to continue selling into the rally. for stocks,” said Wang Cheng, a fund masking the yen’s appreciation in A correlation between moves in when shares rise solely on liquidity hopes, global fi nancial crisis. The government’s The rapidly rising valuations since the manager at Shanghai Lubao Investment times of risk aversion,” said Tsuy- the yen and US stocks also adds they will without exception tumble. 4tn yuan stimulus back then helped give post-holiday slump have driven some Management Co. “More opportunities oshi Ueno, a senior economist at weight to the view about the cur- We’re not getting away from the impact rise to a ballooned shadow banking in- investors to wonder how long the bull- may emerge in the months ahead when NLI Research Institute in Tokyo. rency’s value as a hedge against of the virus on markets once and for all.” dustry that threatened to destabilise the ishness may last. Some are getting ready the government beefs up economic “There is no change to the yen’s risk. Whenever American equi- The ChiNext recouped post-holiday fi nancial system, a heavily indebted state to take profi t and exit once the outbreak stimulus policies.” low-risk nature.” ties begin moving wildly, the yen losses just two days after the A share sector that local authorities bear contin- shows signs of steady easing. The gov- Even though offi cials have insisted But the changing composition tends to get bought as a haven. market reopened to the virus scare on gent liabilities for and increasingly lever- ernment’s historical caution against in- the virus outbreak wouldn’t stop the of Japan’s current-account sur- Leverage funds have also cut February 3 with a record $720bn plunge, aged households as home prices surged. fl ating asset bubbles, the still-unknown world’s second-largest economy from plus does mean that less money is their bearish bets on the yen to followed by the CSI 300’s jump on Mon- In downplaying deleveraging eff orts of economic impact of shutdowns due to accomplishing its already-set goals, being repatriated on a regular ba- around the least since October day to surpass its close before the break. the past few years, China’s government has coronavirus-caused movement curbs and economists have joined one another to sis, reducing some of the upward last year, according to CFTC data. While the ChiNext is up 21% this year, cut taxes, lowered interest rates and allowed uncertainty over how the epidemic may cut growth forecasts. China’s real gross pressure on the currency. “It would be diffi cult to see the the CSI 300 is down 1%. Many overseas local governments to accelerate borrowing. evolve are weighing on their sentiment. domestic product is now forecast to The nation’s trade balance has yen sold on risk-off ,” said NLI’s markets are up so far in 2020 despite the “You can’t expect China to keep roll- To be sure, some traders are less wor- grow about 5.5% this year, according to dwindled in recent years while fi - Ueno. “The yen’s status as a ha- spreading of the virus globally, with the ing out supportive policies,” said Dai ried, arguing that the health crisis has the median result in a Bloomberg survey. nancial investments abroad have ven currency remains structurally S&P 500 Index rising 4.6%. Ming, a Shanghai-based fund manager created an unprecedented situation and That’s down from 5.9% last month. climbed and manufacturers have intact.” Gulf Times 8 Wednesday, February 19, 2020 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 29,221.86 -176.22 Apple Inc 318.50 -1.98 4,293,408 S&P 500 Index 3,369.53 -10.63 American Express Co 135.84 -0.02 151,653 Nasdaq Composite Index 9,714.11 -17.06 Boeing Co/The 338.06 -0.71 179,481 S&P/Tsx Composite Index 17,851.07 +2.71 Caterpillar Inc 136.34 -1.20 170,660 Mexico Bolsa Index 45,025.40 +8.44 Cisco Systems Inc 46.49 -1.02 1,609,590 Brazil Bovespa Stock Idx 114,134.50 -1,174.60 Chevron Corp 109.56 -0.47 348,416 Ftse 100 Index 7,393.84 -39.41 Walt Disney Co/The 138.47 -0.77 798,734 Cac 40 Index 6,073.36 -12.59 Dow Inc 47.76 -1.79 211,936 Dax Index 13,704.74 -79.15 Goldman Sachs Group Inc 233.30 -1.59 174,991 Ibex 35 Tr 10,016.00 -6.20 Home Depot Inc 244.12 -0.37 203,243 Nikkei 225 23,193.80 -329.44 Intl Business Machines Corp 150.16 -0.36 342,563 Japan Topix 1,665.71 -22.06 Intel Corp 66.38 -1.32 1,388,744 Hang Seng Index 27,530.20 -429.40 Johnson & Johnson 149.51 -0.41 306,886 All Ordinaries Indx 7,208.32 -12.88 Jpmorgan Chase & Co 135.84 -1.18 481,796 Nzx All Index 1,992.22 +9.85 Coca-Cola Co/The 59.58 -0.62 756,707 Bse Sensex 30 Index 40,894.38 -161.31 Mcdonald’s Corp 216.20 -0.41 182,647 Nse S&P Cnx Nifty Index 11,992.50 -53.30 3M Co 159.71 -0.81 177,580 Straits Times Index 3,196.63 -16.37 Merck & Co. Inc. 82.51 -0.17 723,222 Karachi All Share Index 27,807.10 -195.59 Microsoft Corp 186.87 0.82 2,768,904 Jakarta Composite Index 5,886.96 +19.44 Nike Inc -Cl B 102.21 -1.28 305,708 Pfizer Inc 36.35 -0.45 1,267,727 Procter & Gamble Co/The 125.48 -0.52 462,089 Travelers Cos Inc/The 136.56 -0.87 59,522 TOKYO Unitedhealth Group Inc 301.46 0.90 190,361 United Technologies Corp 151.68 -1.16 217,371 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 211.14 0.40 514,199 Nidec Corp 14,130.00 -2.01 692,700 Verizon Communications Inc 58.15 -0.62 911,288 Isuzu Motors Ltd 1,139.00 -0.22 2,419,600 Walgreens Boots Alliance Inc 52.07 -1.48 300,473 Unicharm Corp 3,904.00 -1.93 2,043,800 Walmart Inc 119.25 1.15 1,097,317 Nomura Holdings Inc 556.20 -0.48 16,049,800 Exxon Mobil Corp 59.81 -1.38 1,329,275 Daiichi Sankyo Co Ltd 7,527.00 -1.00 890,300 Subaru Corp 2,844.00 -0.32 1,802,400 Sumitomo Realty & Developmen 4,083.00 -0.68 1,514,700 FTSE 100 Ntt Docomo Inc 3,099.00 -0.13 2,978,700 Sumitomo Metal Mining Co Ltd 3,083.00 -1.82 935,800 Company Name Lt Price % Chg Volume Orix Corp 1,893.50 -1.05 3,858,300 Asahi Group Holdings Ltd 4,735.00 -1.91 1,764,800 Anglo American Plc 2,066.00 -1.78 1,621,284 Keyence Corp 37,600.00 -2.44 421,200 Associated British Foods Plc 2,623.00 -1.87 217,844 Mizuho Financial Group Inc 159.40 -0.56 82,307,700 Admiral Group Plc 2,308.00 -0.22 210,587 Sumitomo Mitsui Trust Holdin 3,974.00 -0.45 634,300 Ashtead Group Plc 2,715.00 -0.15 592,762 Japan Tobacco Inc 2,251.00 -0.16 2,957,300 Antofagasta Plc 855.80 -2.44 553,916 Sumitomo Electric Industries 1,457.00 -0.14 1,921,400 Auto Trader Group Plc 576.20 -4.41 1,485,936 Daiwa Securities Group Inc 547.90 -0.94 4,458,600 Aviva Plc 409.20 -0.87 2,254,436 Softbank Group Corp 5,269.00 -4.89 18,882,200 Astrazeneca Plc 7,498.00 1.64 1,177,987 Panasonic Corp 1,182.50 -1.09 7,152,500 Bae Systems Plc 637.80 -0.06 1,612,233 Fujitsu Ltd 12,350.00 -1.79 1,338,100 Barclays Plc 175.72 -1.11 22,360,303 Central Japan Railway Co 21,050.00 -1.10 349,200 British American Tobacco Plc 3,328.00 -0.11 841,967 Nitori Holdings Co Ltd 16,845.00 -1.23 484,700 Barratt Developments Plc 873.00 0.30 2,249,278 Ajinomoto Co Inc 1,959.00 -0.25 2,225,500 Bhp Group Plc 1,672.60 -1.12 2,659,741 Daikin Industries Ltd 15,290.00 0.46 646,900 Berkeley Group Holdings/The 5,386.00 0.94 177,106 Mitsui Fudosan Co Ltd 2,944.50 0.36 2,215,600 An Apple logo is displayed at store in Shanghai. Global stock markets fell yesterday after Apple said the new coronavirus British Land Co Plc 570.00 -1.83 1,134,611 Ono Pharmaceutical Co Ltd 2,534.00 -1.29 1,068,300 was hurting revenues, fuelling investors fears over the damage the epidemic is inflicting on corporate bottom lines. Bunzl Plc 1,922.00 -0.72 111,692 Toray Industries Inc 697.00 -1.13 4,815,300 Bp Plc 459.10 -0.41 13,669,819 Bridgestone Corp 3,903.00 -0.13 2,513,900 Burberry Group Plc 1,984.00 -1.10 778,722 Sony Corp 7,265.00 -2.51 7,586,200 Bt Group Plc 154.70 0.62 7,751,140 Astellas Pharma Inc 1,869.50 -1.35 2,921,700 Coca-Cola Hbc Ag-Di 2,849.00 -0.11 288,978 Hoya Corp 10,065.00 -1.85 1,316,700 Carnival Plc 3,094.00 -0.29 202,802 Nippon Steel Corp 1,453.50 -1.59 3,880,700 Centrica Plc 73.56 1.27 28,953,502 Suzuki Motor Corp 4,930.00 -1.89 1,396,600 Compass Group Plc 1,947.00 0.13 686,960 Stocks fall as Apple Nippon Telegraph & Telephone 2,779.50 -0.11 3,031,300 Croda International Plc 5,095.00 0.10 58,634 Jxtg Holdings Inc 467.00 -1.66 15,420,700 Crh Plc 2,920.00 -0.85 1,158,284 Murata Manufacturing Co Ltd 6,114.00 -3.41 5,116,600 Dcc Plc 6,248.00 -0.19 79,954 Kansai Electric Power Co Inc 1,253.50 -0.63 2,140,700 Diageo Plc 3,117.00 0.87 1,239,900 Denso Corp 4,450.00 -0.27 872,300 Direct Line Insurance Group 345.30 -0.46 1,376,360 Sompo Holdings Inc 4,324.00 -0.18 1,046,100 Evraz Plc 377.20 -2.81 1,466,844 spooks markets with Daiwa House Industry Co Ltd 3,343.00 -2.05 1,154,200 Experian Plc 2,824.00 0.00 459,577 Dai-Ichi Life Holdings Inc 1,645.00 -1.50 3,805,800 Easyjet Plc 1,497.00 -0.83 636,667 Mazda Motor Corp 884.00 0.11 2,299,700 Ferguson Plc 7,560.00 -0.50 91,751 Komatsu Ltd 2,300.00 -1.03 4,134,800 Fresnillo Plc 680.60 2.28 704,466 West Japan Railway Co 8,860.00 -0.86 560,100 Glencore Plc 226.15 -4.44 18,048,941 Kao Corp 8,513.00 -2.06 819,600 virus warning Glaxosmithkline Plc 1,668.20 0.40 8,790,085 Mitsui & Co Ltd 1,930.00 -0.36 3,528,400 Gvc Holdings Plc 822.80 -1.39 1,185,594 Daito Trust Construct Co Ltd 12,495.00 -1.34 237,600 Hikma Pharmaceuticals Plc 1,916.00 1.78 236,534 Otsuka Holdings Co Ltd 4,546.00 -1.22 971,900 the world economy spread, while the eventually, Apple’s business will return Hargreaves Lansdown Plc 1,681.50 -0.53 356,618 AFP Oriental Land Co Ltd 13,930.00 0.29 892,400 dollar mostly gained. to normal in China and the company Halma Plc 2,188.00 -0.32 164,246 London/Washington Sekisui House Ltd 2,345.50 -2.60 2,006,100 Stephen Innes of AxiCorp said most will resume its fi ve percent-plus rev- Hsbc Holdings Plc 554.80 -6.08 39,083,375 Secom Co Ltd 9,521.00 -1.69 316,400 Hiscox Ltd 1,330.00 -0.75 119,673 analysts now predicted that the virus enue growth cadence,” said a note from Tokio Marine Holdings Inc 6,055.00 -0.95 1,056,800 Intl Consolidated Airline-Di 633.40 -1.03 2,558,301 lobal stock markets fell yester- could “signifi cantly” aff ect short term Gene Munster and Will Thompson of Aeon Co Ltd 2,310.00 -0.47 1,318,200 Intercontinental Hotels Grou 4,880.00 1.05 391,882 day after Apple said the new earnings. Loup Ventures. Asahi Kasei Corp 1,028.00 -0.92 2,078,300 3I Group Plc 1,165.50 -0.26 374,242 coronavirus was hurting rev- “Best to buckle in as we could be in “The low probability near-term risk Kirin Holdings Co Ltd 2,311.50 -1.09 3,727,000 G Imperial Brands Plc 1,809.20 0.59 1,057,788 Marubeni Corp 787.50 -0.28 3,260,300 enues, fuelling investors fears over the for a bumpy ride,” he said. is even though global demand is strong Informa Plc 773.40 -1.02 972,457 Mitsubishi Ufj Financial Gro 565.80 -0.63 36,448,300 damage the epidemic is infl icting on Earlier in the day, shares in Apple for Apple products, China needs to get Intertek Group Plc 5,856.00 0.72 148,777 Mitsubishi Chemical Holdings 795.10 -0.43 4,196,300 corporate bottom lines. suppliers in Asia were hit by the tech back on its feet or the company will Itv Plc 132.65 -2.18 3,034,555 Fanuc Corp 20,325.00 -2.45 608,300 Johnson Matthey Plc 2,650.00 -0.93 191,943 Apple said it would miss its March giant’s warning which sent ripples of eventually not have adequate supply Fast Retailing Co Ltd 58,900.00 0.56 518,700 Kingfisher Plc 220.50 -0.68 1,960,978 quarter revenue forecast and global worry across the region’s markets. and risk losing sales.” Ms&Ad Insurance Group Holdin 3,701.00 -1.10 839,700 Land Securities Group Plc 974.80 -0.73 849,612 iPhone supplies would fall, send- Tokyo’s benchmark Nikkei 225 index The COVID-19 death toll now ex- Kubota Corp 1,596.00 -2.24 3,041,100 Legal & General Group Plc 315.90 -0.50 2,991,505 ceeds 1,800 in China, where it has in- Seven & I Holdings Co Ltd 4,297.00 -0.05 1,062,800 ing tremors of dismay across trading saw its fourth straight session in the Lloyds Banking Group Plc 56.03 -1.48 68,957,253 Inpex Corp 1,041.50 -0.86 3,038,100 fl oors. red — a day after data showed the Japa- fected more than 72,000 after emerg- London Stock Exchange Group 8,358.00 0.70 174,562 Resona Holdings Inc 446.10 -1.48 8,090,700 “Apple is the fi rst but it certainly nese economy shrank in the December ing in the central province of Hubei in Micro Focus International 794.30 -3.19 435,416 Fujifilm Holdings Corp 5,388.00 0.37 2,024,300 December. Marks & Spencer Group Plc 180.50 -1.80 1,622,057 won’t be the last, or the most severely quarter, even before the eff ects of the Yamato Holdings Co Ltd 1,920.00 -0.57 1,605,300 Mondi Plc 1,653.50 -0.51 1,065,452 impacted,” said Craig Erlam, Senior virus hit the country. The virus has sparked global eco- Chubu Electric Power Co Inc 1,518.50 -0.33 1,100,800 Melrose Industries Plc 238.20 -1.57 7,611,416 Market Analyst at OANDA Europe. Singapore stocks fell as investors nomic jitters, with travel bans and Mitsubishi Estate Co Ltd 2,099.50 0.70 3,848,000 Wm Morrison Supermarkets 181.95 -0.82 1,847,593 Across Europe, London’s FTSE 100 digested the government’s decision to mass quarantines inside China forcing Mitsubishi Heavy Industries 3,838.00 -0.85 947,200 National Grid Plc 1,053.80 0.86 2,904,926 Sysmex Corp 7,428.00 -2.48 607,300 fell 0.7% to close at 7,382.01 points, cut its economic growth forecast for factories to suspend operations and Nmc Health Plc 821.00 2.63 2,027,617 Shiseido Co Ltd 6,998.00 -0.58 1,353,700 Frankfurt’s DAX 30 was down 0.8% at this year as the virus batters the city shops to close. Next Plc 7,108.00 -0.75 82,971 Shionogi & Co Ltd 6,504.00 2.09 1,295,300 13,681.19, while Paris’ 40 fell 0.5% at state’s tourism and trade. Other Silicon Valley behemoths, Ocado Group Plc 1,139.50 -1.85 573,263 Terumo Corp 3,769.00 -1.49 1,186,800 Paddy Power Betfair Plc 0.00 0.00 - 6,056.82. Hong Kong also fell, as banking such as Facebook, Amazon and Google Tokyo Gas Co Ltd 2,377.50 -0.27 866,800 Prudential Plc 1,482.50 -0.74 1,635,438 Apple shares, listed on the Nasdaq, heavyweight HSBC reported a 33% parent company Alphabet, either have Tokyo Electron Ltd 24,205.00 -4.76 1,737,300 Persimmon Plc 3,252.00 0.15 403,012 were down by more than 2% in the late fall in 2019 pre-tax profi ts alongside limited access to the market or are East Japan Railway Co 9,089.00 -1.32 1,151,300 Pearson Plc 571.60 -0.07 1,602,719 New York morning, depressing the an announcement that it was cutting blocked outright by China’s internet Itochu Corp 2,590.00 -1.26 3,646,600 Reckitt Benckiser Group Plc 6,381.00 0.93 975,655 Ana Holdings Inc 3,314.00 0.03 1,100,000 mood of Wall Street traders return- 35,000 jobs. fi rewall. Royal Bank Of Scotland Group 207.90 -0.53 16,858,368 Mitsubishi Electric Corp 1,551.00 -0.83 3,629,600 ing to their desks after a long holiday HSBC shares in London fell sharply. However, supply chains of global Royal Dutch Shell Plc-A Shs 1,916.40 -0.88 5,191,758 Sumitomo Mitsui Financial Gr 3,797.00 -1.22 5,690,000 weekend. The British pound gained after UK fi rms such as Apple supplier Foxconn Royal Dutch Shell Plc-B Shs 1,924.20 -0.69 2,299,710 Relx Plc 2,084.00 0.53 1,260,954 “The health crisis is causing major data showed the country’s unemploy- and auto giant Toyota have also been Rio Tinto Plc 4,178.00 -0.82 855,065 disruption to businesses in the sec- ment rate steady at 3.8%. disrupted because production facilities Rightmove Plc 685.60 -0.49 546,523 SENSEX ond-largest economy in the world, so Some analysts said they believed in China have temporarily closed. Rolls-Royce Holdings Plc 673.00 -1.46 2,003,424 traders are ducking out of equities,” Apple would make up for lost sales Sportswear giants Nike and Adidas Rsa Insurance Group Plc 570.40 -0.04 1,187,403 Company Name Lt Price % Chg Volume said David Madden, analyst at CMC once the health crisis is over. also shuttered hundreds of stores in Rentokil Initial Plc 498.00 1.20 922,674 Adani Ports And Special Econ 366.60 1.05 1,693,616 Markets UK. “The duration of the impact of the country this month and warned of Sainsbury (J) Plc 207.40 -0.48 1,680,646 Asian Paints Ltd 1,863.65 -0.94 683,421 a negative impact on their earnings. Schroders Plc 3,361.00 -0.68 72,827 Oil prices fell sharply as jitters about COVID-19 is unknown and we believe, Axis Bank Ltd 733.65 -0.64 5,215,502 Sage Group Plc/The 781.00 -0.23 381,862 Bajaj Finance Ltd 4,758.00 -0.39 728,611 Segro Plc 924.60 1.99 1,254,376 Bharti Airtel Ltd 548.25 -2.94 21,462,600 Smurfit Kappa Group Plc 2,780.00 -3.14 254,860 Bharti Infratel Ltd 210.00 -10.64 23,923,588 HONG KONG HONG KONG Standard Life Aberdeen Plc 323.70 0.31 2,354,728 Bajaj Auto Ltd 3,082.50 0.22 337,054 Ds Smith Plc 350.80 -2.18 2,252,650 Bajaj Finserv Ltd 9,529.50 0.01 266,384 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,735.00 -0.63 698,382 Bharat Petroleum Corp Ltd 470.75 1.97 5,970,296 Scottish Mortgage Inv Tr Plc 641.50 0.23 1,484,731 Ck Hutchison Holdings Ltd -1.54 Cipla Ltd 436.00 0.95 2,453,801 70.30 2,087,473 Hong Kong & China Gas 15.16 -0.66 10,994,805 Smith & Nephew Plc 1,829.50 0.05 686,901 Hang Lung Properties Ltd -1.20 Coal India Ltd 171.85 2.38 27,643,844 18.12 4,916,035 Bank Of Communications Co-H 5.16 -1.15 19,939,893 Spirax-Sarco Engineering Plc 9,215.00 -0.65 42,561 Ck Infrastructure Holdings L -0.90 Dr. Reddy’s Laboratories 3,251.35 -1.34 697,366 55.00 1,195,371 China Petroleum & Chemical-H 4.22 -1.17 93,103,532 Sse Plc 1,685.00 0.63 1,022,241 Hengan Intl Group Co Ltd -2.71 Eicher Motors Ltd 18,760.35 1.21 180,650 61.10 2,454,800 Hong Kong Exchanges & Clear 270.00 -1.03 2,088,046 Standard Chartered Plc 630.60 -0.72 2,850,736 China Shenhua Energy Co-H -1.52 Gail India Ltd 119.45 1.23 14,994,097 14.26 26,054,970 Bank Of China Ltd-H 3.20 -0.93 263,843,179 St James’s Place Plc 1,159.50 -0.94 297,991 Cspc Pharmaceutical Group Lt -1.55 Grasim Industries Ltd 723.90 -1.83 1,750,918 19.06 17,380,637 Hsbc Holdings Plc 57.75 -2.78 49,578,379 Severn Trent Plc 2,652.00 1.38 391,290 Hang Seng Bank Ltd -0.36 Hcl Technologies Ltd 607.05 -1.04 5,237,465 163.90 2,110,257 Power Assets Holdings Ltd 56.30 -1.57 1,565,232 Tesco Plc 256.50 -0.35 7,727,150 China Resources Land Ltd -2.08 Housing Development Finance 2,318.80 -1.34 2,345,063 35.35 8,052,496 Mtr Corp 45.15 -1.10 3,002,317 Tui Ag-Di 854.80 -2.86 940,273 Ck Asset Holdings Ltd -1.73 Hdfc Bank Limited 1,213.25 -0.32 5,264,558 51.10 3,144,122 China Overseas Land & Invest 28.05 -2.09 11,101,549 Taylor Wimpey Plc 232.90 0.43 4,595,588 Sino Biopharmaceutical -2.04 Hero Motocorp Ltd 2,252.65 -1.34 839,607 11.52 27,041,500 Tencent Holdings Ltd 408.20 -2.02 13,033,177 Unilever Plc 4,639.50 0.21 808,340 Henderson Land Development -1.07 Hindalco Industries Ltd 184.35 -3.10 8,152,961 37.05 2,469,538 China Unicom Hong Kong Ltd 6.68 -1.62 29,149,076 United Utilities Group Plc 1,040.50 2.97 1,356,673 Aia Group Ltd -1.48 Hindustan Petroleum Corp 224.95 -2.20 5,379,083 79.80 13,936,641 Link Reit 78.05 -1.27 5,795,194 Vodafone Group Plc 154.94 2.53 63,560,164 Ind & Comm Bk Of China-H -1.08 Hindustan Unilever Ltd 2,234.40 -0.81 1,194,605 5.51 221,583,083 Sino Land Co 10.98 -1.44 4,896,000 John Wood Group Plc 399.90 -3.24 1,066,305 Want Want China Holdings Ltd -2.18 Icici Bank Ltd 541.20 -0.07 15,918,303 6.29 12,392,538 China Resources Power Holdin 10.34 0.00 7,660,000 Wpp Plc 976.40 -0.41 783,861 Sun Hung Kai Properties -1.21 Indiabulls Housing Finance L 300.05 -2.50 18,991,374 114.30 1,643,454 Petrochina Co Ltd-H 3.42 -1.16 78,005,811 Whitbread Plc 4,763.00 0.91 206,707 New World Development -1.72 Indusind Bank Ltd 1,140.70 -2.75 11,207,411 10.28 8,593,642 Cnooc Ltd 12.00 -2.12 57,773,825 Geely Automobile Holdings Lt 0.00 Infosys Ltd 797.65 1.04 5,083,346 15.06 45,838,900 China Construction Bank-H 6.47 -1.07 332,570,849 Swire Pacific Ltd - Cl A -1.00 Indian Oil Corp Ltd 112.65 0.76 14,517,328 74.30 996,092 China Mobile Ltd 65.75 -0.38 17,221,827 Sands China Ltd 0.12 Itc Ltd 203.85 -0.46 20,934,864 40.30 7,779,487 TOKYO Wharf Real Estate Investment -2.47 Jsw Steel Ltd 284.80 -1.16 5,463,097 41.40 1,375,523 Clp Holdings Ltd -1.15 Kotak Mahindra Bank Ltd 1,691.00 -0.01 2,219,039 81.55 1,436,378 Country Garden Holdings Co -2.54 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,286.35 0.48 2,347,917 10.76 29,478,119 Aac Technologies Holdings In -3.65 Mahindra & Mahindra Ltd 523.20 0.09 2,868,873 56.70 15,246,300 GCC INDICES Japan Airlines Co Ltd 3,029.00 0.07 2,060,800 Shenzhou International Group -2.12 Maruti Suzuki India Ltd 6,781.10 -1.82 830,678 106.10 1,986,593 Indices Lt Price Change Recruit Holdings Co Ltd 4,500.00 0.02 5,140,700 Ping An Insurance Group Co-H -1.14 Ntpc Ltd 109.60 -0.63 34,458,578 90.70 25,976,634 Softbank Corp 1,497.00 -0.37 5,178,500 China Mengniu Dairy Co 29.80 -1.65 4,541,356 Oil & Natural Gas Corp Ltd 99.30 -0.65 35,575,369 Doha Securities Market 9,775.75 +66.65 Kyocera Corp 7,373.00 -1.06 970,900 Sunny Optical Tech -4.85 Power Grid Corp Of India Ltd 185.00 0.76 17,369,937 127.50 16,426,643 Nissan Motor Co Ltd 494.70 -1.61 24,386,600 Boc Hong Kong Holdings Ltd 27.65 -1.07 7,182,175 Reliance Industries Ltd 1,467.40 -0.73 5,086,964 Kuwait Stocks Exchange 4,829.59 -5.90 T&D Holdings Inc 1,223.00 -0.41 1,422,000 China Life Insurance Co-H -1.13 State Bank Of India 317.55 1.07 38,588,583 19.26 40,328,618 Toyota Motor Corp 7,594.00 -1.70 4,216,100 Citic Ltd 9.33 -2.00 11,299,000 Sun Pharmaceutical Indus 408.65 0.06 4,187,206 Oman Stock Market 4,149.07 -15.79 Kddi Corp 3,395.00 -1.05 3,574,000 Galaxy Entertainment Group L -1.13 Tata Steel Ltd 431.40 -1.25 11,502,423 56.90 11,847,275 Nitto Denko Corp 6,050.00 0.00 749,100 Wh Group Ltd 8.28 -0.84 18,866,445 Hitachi Ltd 4,074.00 -1.02 2,008,400 Tata Consultancy Svcs Ltd 2,215.75 0.57 2,486,223 Takeda Pharmaceutical Co Ltd 4,206.00 -0.85 2,861,100 Tech Mahindra Ltd 838.80 0.67 1,507,814 Jfe Holdings Inc 1,174.00 -1.92 3,165,100 Titan Co Ltd 1,311.00 -0.38 1,761,012 Sumitomo Corp 1,648.00 -1.73 3,828,400 Tata Motors Ltd 161.60 -4.44 52,744,122 Canon Inc 2,792.50 -0.53 2,617,300 Upl Ltd 585.20 -1.65 2,972,328 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 8,775.00 -0.94 538,300 Ultratech Cement Ltd 4,475.70 0.58 510,062 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 39,790.00 -0.53 694,200 Vedanta Ltd 140.55 -1.09 13,205,238 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 13,365.00 -1.94 1,197,700 Wipro Ltd 244.05 0.10 1,252,637 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,847.00 -0.61 3,530,800 Yes Bank Ltd 35.05 -5.65 229,070,225 this data.” Smc Corp 47,690.00 -4.51 210,300 Zee Entertainment Enterprise 245.60 2.68 12,058,654 Gulf Times Wednesday, February 19, 2020 11 BUSINESS

China set to grant tariff exemptions India off ers concessions on on 696 US goods

Reuters US farm, dairy products Beijing China will grant exemptions on retaliatory duties imposed against 696 US goods, the Bloomberg most substantial tariff relief to be offered so New Delhi far, as Beijing seeks to fulfil commitments made in its interim trade deal with the United States. ndia is open to greater market ac- Yesterday’s announcement comes after the cess for American farm and dairy Phase 1 trade deal between the two countries Iproducts and lower duties on took eff ect on February 14 and is the third Harley-Davidson Inc motorcycles as round of tariff exemptions China has off ered on it seeks to conclude a trade deal with US goods. the US in time for President Donald China has committed to boosting its purchases Trump’s scheduled visit next week, of goods and services from the United States according to people with knowledge by $200bn over two years as part of the of the matter. agreement, and has already rolled back some New Delhi is willing to allow mar- additional tariff s on US imports after the deal ket access for US-produced cranber- was signed. ries, blueberries, pecan nuts and avo- US goods eligible for tariff exemptions include cados at lower duties. key agricultural and energy products such as Also on the cards is allowing some beef, soybeans, liquefied natural gas and crude imports of dried distilled grains solu- oil, which were subject to extra tariff s imposed ble, a by-product of ethanol produc- during the escalation of the bilateral trade tion used in animal feed and alfalfa dispute. hay, a plant used for fodder, said the The coronavirus epidemic that emerged late people, asking not to be identifi ed last year in China has raised concerns about its citing rules. ability to meet the purchasing targets, however. Even as talks are on between the Authorities throughout the country imposed two nations to have some sort of a major restriction on travel and transportation deal on the table ahead of Trump’s to curb the spread of the virus, which has killed state visit on February 24-25, there nearly 1,900 and infected more than 70,000 in is no clarity yet on when a fi nal the country. agreement will be ready, the people The containment eff orts have kept factories said, adding that work was still un- shut or operating with drastically reduced staff , derway on the fi ner details, which hitting production. aims to resolve long-pending is- The public has also been discouraged from sues on both sides. Trade talks be- leaving their homes or going to public places, tween Washington and New Delhi also stunting consumption. have been stalled since before Prime White House adviser Larry Kudlow said earlier Minister Narendra Modi’s US visit this month that Chinese President Xi Jinping in September. told US President Donald Trump during a A trade deal, even a small one, with recent call that China will still meet its Phase 1 New Delhi comprising greater mar- trade deal purchasing targets. ket access for the US is likely to help US President Donald Trump is scheduled to visit India on February 24-25 Beijing’s announcement yesterday emphasised Trump further consolidate his posi- that Chinese firms will submit applications for tion in an election year. ing to cut import duties for Harley- on several issues which are of interest The restoration of an exception The spokesperson for the offi ce of tariff exemptions based on market conditions He’s fresh off the success of having Davidson motorcycles by creating a to India including exemptions from that had allowed India duty-free ex- the United States Trade Representa- and commercial considerations. signed a ‘phase one’ agreement with separate tariff classifi cation for them. high steel and aluminium tariff s, the ports of about 2,000 products until tive was not immediately available for “Unless the state forcefully asks firms to apply China last month as well as the Unit- New Delhi has also indicated its people said. last year, is also on the cards. comment because of a public holiday. for tariff exemption and buy US soybeans, ed States Mexico Canada Agreement willingness to relent on domestically So far, it has indicated easing rules This tops India’s agenda because Trade talks between the two sides crushers would still go for Brazilian beans, or USMCA deal. sensitive issues like price caps on to provide greater market access for of its competitiveness with low-cost have been in limbo largely because based on market free will,” said a trader, adding Harley Davidson India has also medical devices and market access to Indian grapes, mangoes and pome- rivals. Trade Ministry spokesman Yo- the Americans have been adding new that Brazilian beans are of good quality and yielded ground on an issue that US dairy products. granate arils along with slashing im- gesh Baweja declined to comment on items during negotiations, the people price this year. Trump has championed by agree- Washington though is yet to blink port duty for these items. the matter. said. Gulf Times 12 Wednesday, February 19, 2020 BUSINESS Foreign firms struggle to resume operations in virus-hit China

AFP Commerce in China. Firms in China epicentre of the outbreak, is a hub for economic and social development Not all suppliers have permission to that almost 80% of respondents did Beijing have seen a slow restart to work US, European and Japanese carmakers goals and tasks that we have set out,” resume production. not have enough staff to run a full after the Spring Festival break in late and electronics suppliers. Xi added. It does not help that companies require production line. January, with residents encouraged More recently, Beijing now requires He emphasised a similar point in a massive amounts of masks – that they Over 40% of surveyed firms said a lack Foreign firms are struggling to to stay home to reduce the spread people arriving in the capital to go into call with British Prime Minister Boris cannot easily procure – for employees of staff was their biggest challenge in resume work in virus-hit China as they of a virus that has killed nearly 1,900 a 14-day self-quarantine. Johnson. before they can restart operations, he the next few weeks, and almost 60% face disrupted supply chains, rising people. This makes it tough for foreign experts But companies continue to face said. expect demand for their goods to be inventory and quarantine rules meant “The whole process is stuttering to to come in if production plants are problems, including the range of Manpower problems add to this lower in coming months. to contain the deadly epidemic, get back as the magnitude of the down, delaying their recovery, said permits needed to transport goods, situation, with some workers unable Over a third of surveyed firms said a the EU chamber of commerce said challenges is just huge,” Wuttke added. Wuttke. which vary by city, region and district. to leave their residential compounds clearer explanation of requirements yesterday. “How long this is going to last is In a call between Chinese President This has become a “logistical freely. was the most important thing With many pharmaceutical anybody’s guess.” Xi Jinping and French President nightmare” and problems moving “Drivers for many companies are still government off icials could do to speed companies globally sourcing from Many cities have imposed travel Emmanuel Macron on Tuesday, Xi goods lead to rising inventory, said on vacation and some of them, when up factory opening approvals. China, pharmacies may also face a restrictions too, with about 56mn stressed that the epidemic’s “impact on Wuttke. they come back, have to be subject to On Monday, Apple announced it shortage of antibiotics and other people in the hard-hit Hubei province the Chinese economy is temporary”, Supply chains remain disrupted, with 14 days of quarantine,” said Wuttke. would miss its March quarter revenue drugs if the epidemic is not resolved virtually sealed off from the rest of the according to state media. many firms relying on other enterprises A survey of 109 manufacturing firms by forecast, and that global iPhone soon, said Joerg Wuttke, president country. “We believe that through hard work... for parts, said Paul Sives, who chairs the the American Chamber of Commerce supplies would drop due to the virus of the European Union Chamber of Wuhan, a city in Hubei and the we will still be able to achieve the EU chamber’s southwest China chapter. in Shanghai released on Monday found epidemic in China.

Pakistan Ambani recasts TV network textile exports before potential stake sale rise 4%

Bloomberg Mumbai Internews Islamabad eliance Industries Ltd, con- trolled by Indian billionaire akistan’s textile exports RMukesh Ambani, is merging marginally increased its media and distribution businesses Paround 4% year-on-year spread across multiple entities into to $8bn in the fi rst seven months Network18 Media & Investments Ltd of the current fi scal year as val- to help simplify the structure of the ue-added exports showed sign assets. of improvement during the pe- The broadcasting business, TV18 riod. Broadcast Ltd, will be housed in Net- Offi cial data from the Pakistan work18, while the cable and Internet Bureau of Statistics showed tex- services will be folded under two tile exports amounted to $7.8bn separate wholly owned units of Net- in the corresponding period a work18, Reliance Industries said in a year earlier. statement late Monday. Readymade garments, one of Reliance Industries’ holding in the main value-added sector, Network18 will be cut to about 64% fetched $1.6bn in July-January from 75% as a result of the recast, the FY2019 compared with $1.5bn in Mumbai-based company said in the the corresponding period a year statement. earlier, showing a 10.8% growth. The recast may be the first step Bedwear exports rose around by Asia’s richest man toward bring- 3% to $1.3bn. ing on board strategic investors in a Knitwear exports increased by business that is being reshaped by 6.2% to $1.8bn during the period streaming giants worldwide. under review. Bloomberg News reported in No- In January, textile exports in- vember that Sony Corp is conducting creased by 2.3% year-on-year due diligence of Network18 as part of and 4.6% month-on-month. talks to acquire a stake, though the In the July-January, food ex- discussions are preliminary. ports improved around 6% to Race for Viewers An investor such $2.6bn. as Sony can bring in international There was 15.1% growth in rice content and bolster the offerings of exports, which stood at $1.2bn as Network18 in a market where compe- opposed to $1bn a year earlier. tition is heating up for paying viewers. Basmati exports showed Streaming titans like Netflix Inc signifi cant growth of 52% to and Amazon.com Inc have been mak- $445mn. ing inroads in India, where more than Exports of fi sh and fi sh prepa- half a billion smartphone users are rations also increased by 16.5% consuming content using data band- to $253mn. Leather exports also width made cheaper by Ambani’s Ambani: Merging media and distribution businesses spread across multiple entities into Network18 Media & Investments Ltd to help simplify the structure of the assets. increased by 11.1% year-on-year wireless carrier, Reliance Jio Info- in the fi rst seven months. Over- comm Ltd. group’s consumer touchpoints, and 9:20am in Mumbai and Den Net- Reliance Industries free of net debt make Network18 net-debt free at the all, exports marginally increased The recast will “simplify the cor- allow for retaining a larger share of works advanced 10%.TV18, Net- by early 2021 and as part of that goal, consolidated level, with a revenue of by 2.2% year-on-year in the Ju- porate structure of the group by re- the consumer’s spend on content.” work18’s listed subsidiary, owns and he’s been seeking to raise money from about Rs80bn ($1.1bn), and provide a ly-January period. ducing the number of listed entities,” Shares of TV18 Broadcast jumped operates a bouquet of 56 channels stake sales. “solid base” for growth, Reliance In- Rupee devaluation is encour- according to the statement from as much as 20% yesterday, its biggest in India and also caters to the Indian Last year, he said Saudi Arabian Oil dustries said in the statement. aging the export-oriented sec- Reliance Industries. “An integrated intra-day gain in more than a decade, diaspora through 16 international Co is in talks to buy a stake in Reli- Ambani, 62, has a net worth of tor to increase outbound ship- media play shall further increase the even as the benchmark index fell. channels. ance’s oil and petrochemicals busi- $57.4bn, according to the Bloomberg ments, although outstanding tax breadth as well as the depth of the Hathway Cable rose 20% as of Ambani has unveiled plans to make ness. The restructuring will help Billionaires Index. refunds are raising concerns for them. Time and again, textile indus- trialists have been questioning the eff ectiveness of the newly- Southeast Asia’s tourist hubs court local market as coronavirus shuts Chinese out introduced automatic refund payment system in the settle- Reuters discounts of 20% to 40%. Thailand, South- ment of refunds. Manila east Asia’s biggest market for Chinese Besides, exports sector still tourists, is now off ering special pack- needs to improve its contribu- ages for local elderly, which allows their tion to GDP. Southeast Asia’s holiday hotspots, hit by expenses to be used for their children’s Total imports, during the July- billions in lost business from Chinese tour- tax deductions. January period, decreased 15.6% ists, are turning to markets closer to home The Thai government is also providing to $27.3bn with all the import to soften the blow from travel restrictions tax breaks and soft loans to help slow job groups depicting double-digit caused by the coronavirus epidemic. losses. decline, except machinery. To make up for foregone revenues, Vietnam, the region’s second-largest Machinery group imports re- firms in the region are dangling discount- market for Chinese tourists, said it would mained fl at at $5.2bn in the July- ed airfares, hotel accommodation and waive entrance fees to some tourist at- January period. tour add-ons in a bid to boost domestic tractions when the outbreak is over. “While imports contraction is travellers. It has also simplified visa procedures lending support to the govern- Home to rich culture, white sand for some non-Chinese arrivals. ment struggling to curtail cur- beaches, diverse marine life, lively night- The coronavirus epidemic could wipe rent account defi cit, it refl ects a life and aff ordable tours, Southeast Asia $5.9bn to $7.7bn from Vietnam’s tourism slowdown in industrial activi- is the favourite for Chinese tourists, the earnings in the next three months. ties. region’s top foreign visitors. Indonesia, Southeast Asia’s largest Industrial output dropped But travel restrictions on China, the economy, has also pledged to boost in the fi rst seven months of the origin of the new coronavirus, since late spending and incentives to soften the current fi scal year,” the report January have led to losses in the region’s virus’s business impact. said. hospitality sector. Bali, Indonesia’s main tourist magnet It further said: “Industrialists In the Philippines, the government because of its aquamarine water, white are concerned over the constant and tourism players last week launched a sand beaches and majestic cliff s, has fall in imports that are needed to travel campaign led by President Rodrigo seen 20,000 cancellations, said Hariyadi run the wheel of industries.” Duterte. Sukamdani, head of the country’s hotels Economic growth decelerated “Come with me and be my travel and restaurants association. to 3.3% last fi scal year from 5.5% companion. I’ll be travelling around the Performers welcome travellers at the Jakarta International Airport. Bali, Indonesia’s main tourist magnet because of its In Kuala Lumpur, a 3,600-member in the fi scal year of 2017/18. Philippines,” Duterte said in video ad- aquamarine water, white sand beaches and majestic cliff s, has seen 20,000 cancellations, said Hariyadi Sukamdani, head industry group has planned for April its The growth is expected to fall dress, off ering assurances that the virus of the country’s hotels and restaurants association. first ever “Cuti Cuti Malaysia” (Holiday in further below 2% during the posed no risks to local tourists in their Malaysia) travel fair, exclusively focused current fi scal year. own country. told Reuters. Manila’s Golden Phoenix Chinese travellers, who are a major source Southeast Asian airlines are making on domestic tourism. Imports of petroleum dropped Member firms of the Tourism Congress Hotel has slashed its rates by two-thirds, of growth for many Southeast Asian fares attractive for cost-sensitive locals. “Individual hotels, airlines, travel com- 17.9% to $7.1bn during the sev- of the Philippines are off ering discounts its marketing director Christine Ann Ibar- economies. Indonesia’s biggest budget carrier, Lion panies, theme parks, dive resorts, have en-month period. of up to 50% on hotels, free upgrades and reta said. Southeast Asia welcomed more than Air, is reducing fares by up to 60% on reduced their normal rates, some by 20% Imports of agriculture and complimentary items like breakfasts. China’s health authorities are reporting 29mn mainland travellers in 2018, up 15% select flights. and 30%,” Tan Kok Liang, the industry chemicals fell 15.3% to $4.4bn. Other firms are off ering individual cus- thousands of new cases daily of the coro- from a year earlier, data from the Asean Philippines’ largest carrier, Cebu Pacific, group’s president, told Reuters. Food imports decreased by tomers corporate or government rates for navirus infection, which has killed 1,868 Statistical Yearbook 2019 showed. which has refunded 1.5bn pesos ($29mn) Despite the big push, industry experts 11.8% to $3bn. tours and hotel accommodation, which people, mostly in China. That was nearly double the entire Eu- to passengers, is off ering seats on flights do not expect local business to do much Imports of metal, includ- are 15% to 30% cheaper, Arwin Paul Lin- The flu-like virus’ spread has also ropean market and almost five times the for as little as $2 before taxes while more than cushion the hit to the region’s ing gold and iron steel scrap, gat, president of a tourism off icers group, prompted countries to shut doors to number of North American tourists. Philippine Airlines launched promotional tourism sector. dropped 19.5% to $2.4bn in the July-June period. Gulf Times Wednesday, February 19, 2020 13 BUSINESS

‘Gas warrior’ seeks Singapore launches to convert India steel mills to spur use

Bloomberg tonnes of the fuel in the year New Delhi ended March, 8.4% more than $4.6bn fi nancial aid a year earlier, government data show, while gas use dropped. AIL India Ltd, the na- GAIL’s revenue is poised to AFP both expected to be hard hit by the vi- panies and families ride out the looming cial package totalling Sg$230mn during tion’s biggest gas util- drop 19% in the year ending Singapore rus in Singapore, an open economy with slowdown, with a large chunk set to go to the Severe Acute Respiratory Syndrome Gity, is in talks with Indian March 31, according to median close links to China that is badly aff ected fi rms in the most aff ected sectors includ- (Sars) outbreak in 2002-03. steel mills to convince them to estimate of seven analysts sur- during any global shock. ing aviation, tourism and retail. The trade ministry said Monday that switch to using the less polluting veyed by Bloomberg. ingapore unveiled US$4.6bn in fi - Finance Minister Heng Swee Keat an- There was also money to help families, growth this year could be between -0.5 fuel in an attempt to revive sales That’s the most since at least nancial packages yesterday to deal nounced fi nancial packages worth a total which will come in the form of cash pay- and 1.5%, with analysts saying this means growth. 2005, according to data com- Swith the impact of the deadly coro- of Sg$6.4bn (US$4.6bn) as part of the outs and grocery vouchers for the needy. there is a higher risk of a recession. The shift to gas will mean a plied by Bloomberg. The compa- navirus outbreak, which has battered the annual budget, and warned that the full An additional Sg$800mn was set aside Singapore has banned travellers from sweeping transition in a country ny’s shares rose as much as 1.1%, city-state’s economy and sparked fears of impact of the outbreak is yet to be felt. to support virus-fi ghting eff orts, with mainland China, the city’s biggest source that depends largely on oil and heading for the biggest gain in a a recession. “The duration and severity of this out- most going to the health ministry. of tourists. coal for energy. week, at 11:41am in Mumbai. The fi nancial hub has reported 77 cases break and the impact on the global econ- The packages would result in an over- Global supply chains have also been The New Delhi-based compa- Demand from new customers of the virus, one of the highest fi gures omy are still unclear,” he said. all budget defi cit of Sg$10.9bn, Heng severely disrupted after the virus closed ny is counting on the global push will help reverse the drop. outside mainland China, where the path- “We must be prepared... the economic said, but added that the government had manufacturing operations in China, im- for factories to seek less pollut- The company is in talks with ogen has killed hundreds and infected impact may be worse than we projected.” enough surpluses to fund it. pacting export-dependent economies ing fuels to drive that change, Steel Authority of India Ltd and tens of thousands. Tourism and trade are Sg$5.6bn was earmarked to help com- Authorities had rolled out a fi nan- such as Singapore. Ashutosh Karnatak, director of has approached Tata Steel Ltd to projects at the state-run utility convince them about the ben- said in an interview. efi ts of switching to gas, he said. For GAIL it’s crucial to fi nd Steel mills alone can consume new clients as demand from close to a fourth of the anticipat- its biggest customers – power ed demand. plants – wanes. Steelmakers and sponge iron The company has the back- plants used almost 30mn tonnes ing of Prime Minister Narendra of domestic coal supplies in the Modi, who has set a goal to re- year ended March, about 4% of duce the emissions intensity of the total shipments, according to the economy as well as curb the the coal ministry. severe air pollution that chokes In addition, about 52mn large swathes of the country’s tonnes of coking coal was im- urban landscape. ported by the steelmakers. Modi is pushing for a gas- “There is a lot of scope for re- based economy, where the fuel placing coal with natural gas in is seen more than doubling its India’s iron and steel sector, but share in the energy mix to 15% aff ordability will be key to that by 2030. transition,” said ACR Das, a met- “There is a lot of pressure on allurgist and a former adviser these industries because of cli- to the steel ministry. “If gas be- mate change and we are off er- comes available at an aff ordable ing them a solution to convert to price, the plants will be willing to gas,” Karnatak, who calls GAIL a make that switch.” “gas warrior,” said. “Oil use can’t Still, shifting to gas has its be wiped out, and neither can be challenges. coal. But we want gas and re- India’s domestic gas produc- newables to increasingly replace tion has declined over the years the dirty fuels.” and fails to cater to all users. Reaching the target would re- A slew of taxes across states quire India’s daily gas consump- burden imported gas, blunting tion to increase to 450mn stand- the advantage of a 60% fall in ard cubic meters from about a custom index based of Platts 150mn, Karnatak estimates. regional prices, in the past year That’s a daunting task for a amid a glut of supply and a re- country with inadequate pipe- cent slump in Chinese demand line infrastructure and custom- because of the virus outbreak. ers who are sensitive to prices. That has left nearly three quar- India’s power utilities are in- ters of India’s gas-fi red capacity Visitors walk along a walkway at Marina Bay in Singapore. The city-state unveiled $4.6bn in financial packages yesterday to deal with the impact of the deadly COVID-19 novel stead using more coal. idle, as they fail to compete with coronavirus outbreak, which has battered the city-state’s economy and sparked fears of a recession. They bought a record 608mn cheaper power from coal plants.

FDI into Pakistan surges 65.7% in seven months Furious shareholders blast Nissan bosses

Internews new investment from other in- AFP I have more than you!” shouted one around the company’s fortunes. “Share- fumed the shareholder. A repentant Se- Karachi ternational and local investors,” Tokyo stockholder. holders, please give us time. I appreciate nard said there would be no repetition of Aleem said. “I bought it at 800 yen per share. I your patience... I want Nissan to be bet- the faux pas. The OICCI official said never thought it would fall below 700 ter. “As soon as I had noticed... I said that Pakistan’s foreign direct invest- Pakistan has made progress on hareholders livid about the per- yen. It’s less than 500 yen per share now. All the top management including could never happen again. ment (FDI) jumped 65.7% to ‘ease of doing business’ and the formance of struggling Japanese What do you think about this? Is it myself are taking this situation seriously I apologise for that. I’m awfully sorry,” $1.563bn in the seven months government has also taken hard Scar giant Nissan yesterday blasted better to sell them on the market? What and working on it,” he said. he said. of the current fiscal year, the decisions to streamline the eco- bosses over dividends, executive pay, the shall I do with my Nissan shares?” But the audience continued attack Executive pay was also an issue on central bank data showed. nomic fundamentals, “which is stock price, and even the type of vehicle The fi rm failed to issue a dividend to after attack, with one upbraiding the shareholders’ minds, with one out-of- FDI stood at $943.6mn in the causing pain for businesses, but they use. shareholders after posting a net loss of chairman of alliance partner Renault, pocket member making the point: “If same period of last fiscal year. hopefully will give confidence to New chief executive offi cer Makoto ¥26.1bn for the three months to Decem- Jean-Dominique Senard, for driving off you are going to reduce the dividend by In January, foreign direct the investors on the economic Uchida received a barrage of furious ber, its fi rst third-quarter loss in more from one meeting in a competitor’s car. that amount, you have to revise execu- inflows were $223.1mn. potential of the country”. Cur- questions at an extraordinary share- than a decade. “After the shareholders’ meeting, you tive compensation.” That compared with $146.8mn rently, the FDI in Pakistan is less holders’ meeting after the most recent It is still battling to restore its reputa- rode a (Toyota) Alphard to leave Japan or “There are 57 executives in top in the corresponding month last than 1% of the GDP, which com- results showed a more than 87% plunge tion after the stunning arrest and later leave Yokohama. management. These 57 people in the year. The rise in FDI was largely pares unfavourably with other in net profi ts. escape of former boss Carlos Ghosn on Alphard! Nissan executives were en- top management scheme, your com- attributed to increased Chinese countries in the region that have “I’ve been a Nissan shareholder for fi nancial misconduct charges that he de- raged. Of course. pensation should be less than ¥10mn inflows followed by Norway. FDI in the region of 2%-6% of close to 20 years. You need to review nies. You were in a competitor’s model. ($91,000).” Net direct investment from the GDP. what you’re doing. I have 3,000 Nis- Uchida sought to placate the share- Why did you choose to do that, Se- “You should immediately take this de- China increased to $532.8mn Most of the key government san shares. Uchida-san, you have 2,000 holders, pointing to a strategic review nard?” “You cannot make the alliance cision and send a press release immedi- in July-January FY20 from functionaries, including in shares. expected in May that he hopes will turn successful with that kind of mindset,” ately!” $282.6mn a year ago. the provinces, have regularly Norwegian firms invested expressed the desire to boost $288.5mn, compared with FDI, but have not followed up $110mn last year. with concrete actions to bring China races to contain job losses as coronavirus batters economy Higher inflows in the com- sustainable growth in FDI for munications sectors following which Pakistan has significant licence renewal fee payment potential. “We expect this to im- Reuters on a solid footing despite Sars. Last week, from two mobile companies also prove in the foreseeable future,” Beijing the cabinet pledged to prevent large-scale led to the increase in the FDI in Aleem said. layoff s, telling local governments to help the seven months of this fiscal. OICCI members have identi- stabilise jobs by drawing on unemployment The communications sector fied some key sectors where When cameraman Mark Xia returned to his insurance and similar funds. Firms in China’s attracted the highest FDI at there are opportunities to job this month after holidays, the Shanghai sprawling services sector, from restau- $446.7mn in July-January FY20, attract FDI. video production house where he worked rants and hotels to shops, cinemas and compared with an outflow of Those include energy and told him to take three months of leave with travel agents, have borne the brunt of the $134.9mn in the corresponding power, (including energy no pay, as a coronavirus epidemic takes a outbreak, besides small manufacturers that period last year. distribution, production, in- toll of China’s businesses. were just barely profitable, economists said. Moreover, major increases frastructure, network, mining Now Xia is looking for a part-time job af- “The employment situation is OK in the were seen in the power sector and alternate/renewables); ter the company, with a workforce of about first quarter, but if the virus is not contained that received $404.1mn in FDI infrastructure development, 100, rejected his request to pay at least half by end-March, then from the second quarter, against the outflow of $297.5mn. transportation and logistics, ag- his monthly salary during the suspension, we’ll see a big round of layoff s,” said Dan Foreign investors see positive riculture, corporate farming and and left him no choice but to resign. Wang, an analyst with the Economist Intel- outlook for FDI in the current agro-based industries, informa- “I understand the company’s cash-flow is ligence Unit (EIU). fiscal year. tion technology and digitalisa- tight,” Xia, 25, told Reuters. “We postponed Job losses could run as high as 4.5mn, he M Abdul Aleem, secretary tion (e.g. export of software, some shooting due to the coronavirus Workers wearing face masks sort and package eggs at a factory in Rongcheng, forecast. Private firms account for 80% of general of the Overseas Inves- etc); food and consumer goods, outbreak, and that’s had a huge impact on Shandong province. Any rapid rise in unemployment could pose a big challenge urban employment. tors Chamber of Commerce healthcare, pharmaceuticals, our revenues, that’s the reality.” to China’s stability-obsessed leaders, with growth in the world’s second-largest Before the virus outbreak, unemploy- and Industry (OICCI) said the tourism, food processing and Xia is one of many losing their jobs in the economy already slumping to near three-decade lows. ment had already risen, with the off icial outlook for FDI in Pakistan is sta- telecommunication. epidemic, which has killed nearly 1,870 and survey-based jobless rate standing at 5.2% ble and at par with the last two The SBP’s data also showed infected more than 72,000, sparking strict the world’s second-largest economy already more appropriate to compare the current in December, up from 4.9% in April 2018 as years considering that many of that foreign portfolio invest- travel and movement curbs that have kept slumping to near three-decade lows. impact to the global crisis, instead of that of a trade war with the United States pinched the projects which were in the ment at stock market stood at many businesses shut, disrupting demand Just 34% of nearly 1,000 small and Sars,” he added, referring to the outbreak of firms. Policymakers have unveiled a raft of pipeline especially in the energy $21.5mn in July-January FY20. and supply for goods and services. medium-sized firms said they could survive Severe Acute Respiratory Syndrome (Sars) measures to buttress the economy against and other sector have made The equity market saw out- Many small firms like Xia’s former em- for a month on current cashflow, a recent in 2002 and 2003. an expected first-quarter hit. progress as per plans. flows of $408.9mn last year. ployer face cash crunches because of a lack survey by Tsinghua University and Peking During the global financial crisis of 2008 Economists have repeatedly cut growth “OICCI members also re- Foreign investment in govern- of orders, forcing them to lay off workers or University showed. and 2009, about 20mn Chinese migrant forecasts as the virus spread. invest approximately $2.5bn- ment securities such as market dock salaries to keep afloat. A third said they could last for two workers lost their jobs as exports tumbled. Investment house Nomura expects first- $3bn annually in expanding treasury bills and Pakistan But the outbreak has yet to show signs months, while 18% said they could stick it That prompted a huge stimulus package quarter growth of 3%, down from 3.8%, due their footprint in Pakistan, so we Investment Bonds reached of peaking. Any rapid rise in unemploy- out for three months. “There could be big by Beijing that quickly boosted growth but to the lower-than-expected rates of return expect this trend to continue $1.839bn, compared with $0.1mn ment could pose a big challenge to China’s layoff s,” said Wang Jun, Beijing-based chief saddled the economy with debt. But in 2002 to work after the extended Lunar New Year and will be a trigger to attract a year ago. stability-obsessed leaders, with growth in economist at Zhongyuan Bank. “I think it’s and 2003, the Chinese economy stayed holiday and business resumption. Gulf Times 14 Wednesday, February 19, 2020 BUSINESS

Intesa’s midnight raid on UBI set to spur Italian bank mergers

Bloomberg footprint,” Messina said on Tuesday on midnight on Monday. That values UBI at to approve a €1bn rights off er to fund north, with very high eff iciency levels since the 2009 crisis. Across the region, Milan a conference call with analysts. about €4.25 a share, Intesa said. that transaction, underwritten by and competitive product companies,” however, little has happened. Italy’s banks have been looking for ways For UBI’s board and the bank’s biggest Mediobanca. BPER shares dropped as said Stefano Girola, a portfolio manager In Italy, mid-sized banks in particular to expand after a decade spent weeding shareholders, the deal came out of much as 9%. at Alicanto Capital SGR in Milan. are still struggling to cope with the Intesa Sanpaolo SpA made an out bad debts in the aftermath of the nowhere. CEO Victor Massiah heard of UBI was trading at €4.27 at 1:20pm in The combination would form a aftermath of the crisis, and while non- unsolicited €4.9bn ($5.3bn) off er for its financial crisis, and the government it late Monday evening, when he landed Milan, just above the bid price. Intesa European lender with €8.7bn in net performing loans have declined and smaller rival Unione di Banche Italiane has been eager to forge an industry in London to meet with investors after gained 1.9%, as most Italian banks interest income and almost €1tn in total valuations are rebounding, profitability SpA in a midnight raid that’s likely to capable of taking on European giants. presenting a three-year plan in Milan. jumped on news of the bid. A UBI bond assets. Combined profit amounts to is far from strong. trigger further consolidation among Until Messina’s move, though, all this He was heading back to Milan on callable in January 2025 also climbed. €21.6bn, based on 2019 financial data. Banco BPM SpA and Banca Monte dei Italy’s struggling banks. amounted mostly to talk. The European Tuesday to meet with the board. Until this point, Italian banking looked The similarity of the banks “means Paschi di Siena SpA, as well as BPER, Intesa chief executive off icer Carlo Central Bank, meanwhile, reacted Messina and Intesa’s adviser, set for another slow year for deals: that there is scope for integration have often featured as both potential Messina, pouncing before the positively to word of the impending Mediobanca SpA, hatched the outlines Executives spoke of the need for and eff iciency gains,” said Ignazio targets and buyers in the Italian press. government could strong-arm banks bid, according to people familiar with during the Christmas break, according consolidation but shied away from Angeloni, a former member of the ECB’s Investors and analysts have long into unwanted combinations, launched the matter who asked not to be named to people familiar with the matter, and taking the plunge. The benefits of supervisory board. “These, though, will expected that the Italian government’s an all-stock bid at a premium of more discussing a confidential issue. planning accelerated during January. increasing scale and synergies were only come with deep restructuring, and impending sale of its majority stake in than 28% to UBI’s price on Monday. The deal would be the biggest European When the deal was announced at weighed against regulatory hurdles, we know that radical cost cuts are not Monte Paschi, acquired in a 2017 bailout, Shares of the target institution soared, banking acquisition in more than 10 midnight on Monday, it looked well Italy’s weak economic prospects and easy to implement in Italy,” he said. would be the trigger for a round of leading a rally in Italian financial stocks. years, according to data compiled by prepared: Part of it involves selling execution risks. European policy makers and executives domestic deals. The EC expects the Italian “We consider this deal to be a unique Bloomberg. UBI investors will get 17 to BPER Banca 400 to 500 branches “The bid is very appealing for both ISP have consistently emphasised the need Treasury to exit the bank by 2021, though opportunity to create a European new shares of Intesa for every 10 shares jointly operated by the two banks. and UBI shareholders, as it would create for bank mergers to challenge the US exactly how that will happen hasn’t been leader that leverages on a strong Italian they hold under the plan announced at BPER will call an extraordinary meeting a massive player in Italy, especially in the giants that have grabbed market share determined.

European banks have another forex-loan Spain plans new tax on ruling to worry about

Bloomberg Zagreb

Croatian banks, mostly units of Italian and Austrian parents, jumbo tech companies have started to feel the heat ahead of a landmark Supreme Court ruling connected to Swiss-franc loans. The tribunal is due to rule by April whether borrowers who voluntarily converted their mortgages into the euro may seek to have those contracts nullified and win compensation. Should it rule against the banks, their fresh costs related to all Swiss franc loans may reach 20bn kuna ($2.9bn), according to despite US warning estimates from the banking industry and borrowers’ repre- sentatives. Bloomberg The lenders have already taken notice. They doubled their pro- Madrid visions last year, according to the central bank, echoing events in Poland, where lenders raised provisions after the verdict last year by the European Court of Justice opened gates to a flood pain will introduce a digital services tax at the of lawsuits. end of the year that would hit the revenue of “The duration of the whole Swiss-franc loans story and the sur- Scompanies such as Facebook Inc and Alphabet rounding elements of populism — that no hit is too big for the Inc’s Google in a move likely to draw the ire of the US banks — increase the impression that this is not a country attrac- administration. tive to investors,” said Velimir Sonje, an economist and owner The levy, which could raise as much as €850mn of Zagreb-based Arhivanalitika consultancy. “In an extreme ($919mn) a year, won’t be implemented until De- scenario, banks may have to recover the lost capital.” cember to allow the Organisation for Economic In 2015, Croatia passed legislation that forced banks to allow Co-operation and Development to make a fi nal $3.4bn in franc loans to be converted into euros after the Swiss push to reach an agreement on a separate, global currency surged, leading to higher instalments for many bor- tech tax. rowers across eastern Europe. The kuna is maintained in a tight Countries including France and the UK have band against the euro. moved forward with their own versions of the digital The lenders, including units of UniCredit SpA, Intesa Sanpaolo tax, concerned current laws don’t properly account SpA and Erste Group Bank AG, bore a combined burden of €1bn for a worldwide, data-driven economy. The Euro- ($1.1bn) but individual lawsuits have continued as local courts pean Union has also said it would consider a bloc- have delivered contradictory rulings, prompting the Supreme wide tax in the absence of a global solution. Ameri- court to step in. can offi cials have threatened to impose tariff s on any Having a healthy banking system is one of the key conditions country that institutes a levy on tech revenue. for Croatia to adopt the common currency. The government The US initially threatened tariff s as high as 100% expects a favourable decision from the European Central Bank on $2.4bn of French goods in response to the tax, be- to join the euro area’s ERM-2 antechamber in the second half of fore Paris said it would delay collecting the revenue the year. until December. “Whatever the Supreme court decides, I don’t think it will jeop- French and Spanish offi cials both say a digital tax ardise Croatia’s euro project,” according to Danko Sucevic, an levied by multiple countries would be more eff ec- independent economic analyst in Zagreb. tive than piecemeal policies, and Spain’s support Should the court nullify the converted loan contracts, bor- may inject additional momentum into the OECD rowers will seek to be compensated for payments beyond the eff orts. return of the original capital of the loan and costs related to the Those talks are trying to address frustration initial fixed interest rate — all denominated in kuna, according among voters around the world about what’s seen as to Goran Aleksic, an opposition lawmaker and member of the large-scale tax avoidance. Corps are often domiciled Association of Swiss-franc Borrowers. in other countries — including low-tax jurisdictions That would make their loans cheaper than any loan ever off ered such as Ireland or Bermuda, and shift money seam- in Croatia. The lenders, among the best capitalised in the Euro- lessly across borders to minimise their obligations. pean Union, have warned that ensuing costs would dwarf the Companies that sell online can easily avoid paying previous damage, pushing them into losses and hurting their taxes in countries where they nevertheless make capital positions. signifi cant sales. “Such an outcome would create an inequality among borrow- Facebook’s chief executive offi cer Mark Zucker- ers,” said Zdenko Adrovic, director of the Croatian Banking berg said at the Munich Security Conference that he Association. Those who took out the loans in Swiss francs would would support OECD eff orts to fi nd a global com- be “in a much more privileged position than those who from the promise on a digital tax. start borrowed in euros.” Spain’s new tax will apply to companies with at Activist Aleksic, who got elected to parliament on a platform least €750mn in global revenue and digital sales of of fighting banks over the contested loans, dismisses such at least €3mn in Spain. concerns, adding the EU’s top court has in the past sided with The Spanish government, led by Socialist Prime the borrowers in Poland and Hungary. Minister Pedro Sanchez, also approved a tax on fi - Attendees peer through portholes on the Google stand on the opening day of the MWC Barcelona in Barcelona “The question here is whether borrowers were fully compen- nancial operations on Tuesday. Lawmakers in Ma- on February 25, 2019. Spain’s digital services tax, which could raise as much as €850mn ($919mn) a year, won’t be sated by converting Swiss franc loans into euro-denominated drid are expected to approve both measures in the implemented until December to allow the Organisation for Economic Co-operation and Development to make a final push loans,” he said. “We don’t think so.” coming months. to reach an agreement on a separate, global tech tax. Boris Johnson’s $570bn reasons for wanting an EU trade deal

Bloomberg administration. But the EU as a whole of bilateral trade, New Zealand and London remains by far the biggest bloc that Australia would come a long way Britain does business with — even if the behind China and India. EU says Johnson will be blamed share of UK exports going to the EU has But the crucial deal remains that with Brexit shattered 50 years of trade policy fallen over time. the EU itself. Analysis by Bloomberg in Britain, divorcing the country from Yet Brussels is in no hurry to give Britain Economics using a gravity model if Brexit wrecks trade with UK its single largest market. Prime Minister access to its market unless Johnson suggests the benefits of such an Boris Johnson is now trying to glue the agrees to abide by its rules. If the prime accord would off set only about half of pieces back together. minister cannot reach a deal with the cost of leaving the EU. Bloomberg separation when a transitional arrangement that maintains Since Britain left the European Union on the bloc by the year-end, Britain will “Forging trade deals round the globe is Brussels the economic status quo expires on December 31. January 31, Johnson has dispatched his crash out of the EU in what would look seen as a significant benefit of Brexit, “We’re looking for a level playing field and they don’t seem foreign secretary on a tour of Australia much very like a no-deal Brexit. Hence but it’s far from certain that they will to want it,” Hogan said in Brussels. Asked about the risk of and Japan to show that Britain is open Johnson’s interest in inking additional confer the same economic benefit as European Union Trade Commissioner Phil Hogan said future disruptions in EU-UK goods trade, he said: “It’s up to for business, while his government has deals with countries around the world. membership of the world’s biggest the UK will have “full responsibility” for any damage the United Kingdom to make sure it doesn’t happen. Full pushed the idea of a trade agreement Trade volume isn’t the only reason for single market. The government has to the British economy after the post-Brexit transition responsibility is in the hands of the United Kingdom.” with the US. the UK to prioritise a deal with the EU. ambitions to improve ties with all expires, countering a stinging attack by Boris Johnson’s The UK government has said it opposes any prolongation But there is one market that matters The theory of trade gravity states that four corners of the globe, but the government on the conditions set by Brussels for a follow- of the transition period, leaving both sides only 10 months more than any other: the EU. The bloc is the level of commerce between two reality is the biggest prize lies on the up deal. to reach a deal to prevent the emergence of tariff s and by far the UK’s biggest trade destination, countries is in proportion to their size UK’s doorstep in the form a deal with Hogan told a conference on Tuesday that the EU wants quotas on goods traded across the English Channel. accounting for £436bn ($570bn) of and proximity. It’s logistically easier to the EU,” said Dan Hanson, senior UK economic integration with the UK to remain deep, In his remarks on Tuesday, Hogan addressed the commerce last year — almost 50% of the buy and sell from your neighbours — a Bloomberg economist. repeating that any free-trade agreement between both possibility of frictions in automotive commerce between country’s total trade in goods. point that ultimately didn’t convince One challenge of exiting the EU is that sides should align competition, environmental and other the EU and UK to make a general point about both sides’ Here’s a look at some of the numbers British voters about the merits of staying any trade deal the bloc has struck will standards. The insistence that Britain stick to EU rules trade relations should Britain reject regulatory alignment that will dictate Britain’s priorities in in the bloc. no longer apply to the UK once the “simply fails to see the point of what we are doing,” the with the bloc after the transition period. “It’s a big worry coming months. For the UK government, forging transition period ends on December 31. UK’s chief Brexit negotiator, David Frost, warned hours for many of the manufacturing sectors in the UK,” he said. The country that is Britain’s biggest agreements with the US, Japan, Australia Britain has so far rolled over deals with before Hogan’s comments. “If they want to diverge from the existing rules and individual trading partner is the US, with and New Zealand is a key aim. The idea 48 countries, accounting for a value The sharply contrasting views about the framework regulations, we are going to have problems. And the more Germany close behind. That explains there is that Britain’s historic ties with of almost £48bn of trade. Agreements for Britain’s ties with the EU as of 2021 set the stage for they diverge from the existing EU law and regulations, the Johnson’s priority to strike a deal those countries will make deals easier to linked to a further £33.5bn of commerce fraught negotiations and highlight the risk of a car-crash more problems we’ll have.” quickly with President Donald Trump’s accomplish, but judged by the amount in goods are still in the works. Gulf Times Wednesday, February 19, 2020 15 BUSINESS

Transport Minister meets top IMO, Georgia officials

HE the Minister of Transport and Communications Jassim Seif Ahmed al-Sulaiti with the director of Maritime Transport HE the Minister of Transport and Communications Jassim Seif Ahmed al-Sulaiti holding talks with assistant Agency of Georgia, Tamara Ioseliani, on the sidelines of the Lloyd’s Qatar Maritime and Logistics Summit (QMLS) 2020. secretary-general of the International Maritime Organisation (IMO), Lawrence Barchue, in Doha yesterday.

Al-Sulaiti meets Ukraine infrastructure minister

HE the Minister of Transport and Communications Jassim Seif Ahmed al-Sulaiti met yesterday with Ukraine’s Minister of Infrastructure, Vladyslav Kryklii. The two off icials discussed means of enhancing co-operation in the fields of transportation, ports, and aviation. They also discussed several matters of common interest between the two friendly countries. The meeting, which was held on the sidelines of the Lloyd’s Qatar Maritime and Logistics Summit (QMLS) 2020, was attended by Ukrainian ambassador Andrii Kuzmenko. Maritime sector has huge absorptive capacity, says Milaha chief executive

Al-Khalifa addressing the Qatar Maritime and Logistics Summit in Doha yesterday. The maritime sector, which accounts for vast majority of the global trade, has huge absorptive capacity to enable technology companies to compete Qatar’s plans to raise greatly with traditional firms in the shipping sector, according to Milaha. Highlighting that almost 90% of global trade is maritime trade, Milaha chief LNG output will lead executive Abdulrahman al-Mannai said it’s necessary to pay attention to this aspect because of its great importance for economic performance. to boom in maritime He said great eff ort has been made in Qatar’s maritime infrastructure field, especially with regard to shipyards, ports, roads and large installations, and transport, logistics in the support system as well, including co-operation between the government and the private sector and investment in technology. services industry, “Given the huge absorptive capacity in this sector, technology companies are able to compete greatly with traditional companies in the shipping sector and says QNB chief we must consider this idea to make decisions in our sector, in addition to focusing on customers and placing By Santhosh V Perumal Despite the challenges facing the trade them first, especially in light of the great Business Reporter movement and the global maritime transport competition, for their satisfaction,” he industry, there are great opportunities for said. development, expansion and investment in Al-Mannai said climate change also has Qatar’s plans to raise the liquefied natural gas technological innovations that support global a role on supply chains, as well as the (LNG) production to 126mn tonnes per annum by trade, al-Khalifa said. sustainability and governance standards 2027 will lead to a major boom in the maritime He said the banking sector’s main role in that its adoption is much more important transport and logistics services industry in providing financial services, credit facilities and today for companies involved in the the country, according to QNB chief executive investment in various sectors in the shipping and shipping sector, especially in 2020, which Abdulla Mubarak al-Khalifa. logistical services industry, including ports, ships, is considered a pivotal year where huge This observation was made at the Qatar Maritime shipping companies, containers and all sectors funds were allocated to these studies to and Logistics Summit (QMLS), which got related to the supply chain of this huge industry, develop these standards. underway in Doha yesterday. particularly since maritime transport accounts Qatar has witnessed very big changes in Many developments have already been achieved for 90% of the global trade traff ic, contributes all stages of supply and supply chains, during the past few years, including the opening approximately $440bn to global gross domestic making it the only country in the Middle of Hamad Port and the start of operating new product. East with suff icient local capabilities navigation lines with a number of countries in The sectors related to the shipping industry in the import and export supply chain the world and the establishment of integrated need diff erent and diversified financial services, today, which is evidence of its great logistics areas, he said. given the large size of this industry, al-Khalifa strength, especially in the past three QNB had a pivotal role in providing financial said, pointing out that QNB considers the years, according to him. services and credit facilities for developing the shipping sector as one of the four main sectors Milaha, a key sponsor of the event, maritime transport industry, which supports working to provide distinguished financial showcased its range of integrated economic relations between Qatar and its services to it. transport, logistics, and supply chain commercial partners, stressing that Doha’s plans Finding that the most important challenges solutions. to achieve self-suff iciency off er great prospects facing maritime transport is the transformation Milaha’s current activities include for marine transport projects and related of ships into the use of clean energy, as the marine transportation in gas, petroleum services, and that QNB is working to contribute International Maritime Organisation seeks to products, containers and bulk; off shore strongly to strengthening this industry during the halve emissions of harmful substances by 2050, support services; port management and next stage, especially in view of the operations he said QNB provides specialised financial operations; logistics services; shipyard; of expanding ports, logistics, warehouses and services and huge investments in building ships trading agencies; real estate investments; establishing free zones in the country. that use clean energy. and asset management. Al-Mannai highlights maritime sector’s huge absorptive capacity. Wednesday, February 19, 2020 GULF TIMES BUSINESS

Oil falls below $57 on virus impact, Opec+ delay

Reuters cents to $51.35. “Risk aversion has returned financial crisis in 2009. The Organisation of London to the markets,” said Commerzbank analyst the Petroleum Exporting Countries (Opec) Carsten Fritsch. “Opec+ has shown no sign and its allies, including Russia, have been yet of reacting to the virus-related slump in considering further production cuts to Oil fell below $57 a barrel yesterday, demand by making additional production tighten supply and support prices. pressured by concerns over the impact cuts.” The group, known as Opec+, has a pact to on crude demand from the coronavirus The virus is having a wider impact on cut oil output by 1.7mn bpd until the end of outbreak in China and a lack of further companies and financial markets. March. action by Opec and its allies to support the Asian shares fell and Wall Street was poised The next Opec+ meeting next month market. to retreat yesterday after Apple said it would is set to consider an advisory panel’s Forecasters including the International miss quarterly revenue guidance owing to recommendation to cut supply by a further Energy Agency (IEA) have cut 2020 oil weakened demand in China. 600,000 bpd. demand estimates because of the virus. “This has spooked market players and Talks on holding an earlier meeting in Though new cases in mainland China have triggered a sharp pullback in risk assets,” February appear to have made no progress, dipped, global experts say it is too early to said Tamas Varga of oil broker PVM, referring Opec sources said. judge if the outbreak is being contained. to Apple’s statement. As well as Opec+ voluntary curbs, support Brent crude was down 82 cents at $56.85 The IEA last week said that first-quarter oil for prices has come from involuntary losses a barrel by 1452 GMT after rallying in the demand is likely to fall by 435,000 barrels in Libya, where output has collapsed since As many as 220 Qatari companies will be displaying their products in the four-day ‘Made in Qatar’ previous five sessions. per day (bpd) from the same period last January 18 because of a blockade of ports expo in Kuwait from today. US West Texas Intermediate crude fell 70 year in the first quarterly decline since the and oilfields. Minister of Commerce to inaugurate ‘Made in Qatar’ in Kuwait today

E the Minister of Com- Thani, Kuwait Chamber vice- beverage (F&B), furniture, pet- merce and Industry Ali chairman Abdel Wahab al-Waz- rochemicals, SMEs, and other Hbin Ahmed al-Kuwari, zan, and Qatar Development industries. The exhibition also together with his Kuwaiti coun- Bank’s (QDB) CEO Abdulaziz al- serves as a platform that brings terpart, Khaled Nasser Abdullah Khalifa will address the forum. together Qatari companies and al-Roudan, will inaugurate the The business forum off ers a factories with the Kuwaiti com- ‘Made in Qatar’ 2020 exhibition good opportunity for both sides munity. today at Hall No 4, inside the to review a host of investment This year’s edition is the Kuwait International Fair. and business opportunities eighth expo since its inception The four-day event, held available in both the countries in 2009, and the third event to under the patronage of Kuwait through two sessions — ‘In- be held outside of Qatar. It is Prime Minister Sheikh Sabah vestment Climate and Joint Co- also the second instalment held Khalid al-Hamad al-Sabah, will operation Opportunities’ and since the June 2017 economic gather as many as 220 Qatari ‘Cooperation Opportunities in blockade was imposed on Qatar. manufacturing companies. It is Industrial Sector and Renewable The ‘Made in Qatar’ exhibi- organised by the Qatar Cham- Energy Sources’. tion aims to promote the Qatari ber, in co-ordination with the The forum will discuss means industry and its products locally Kuwait Chamber of Commerce of increasing joint investments and globally. It also aims to fol- and Industry. and trade between both the lowing objectives — encourage Prior to the inauguration cer- countries, as well as encourag- the use of Qatari products and emony, the ‘Qatar-Kuwait Busi- ing businessmen to establish reduce dependence on imports, ness Forum’ will be held in the projects that serve both the encourage investors and entre- morning at the Kuwait Chamber economies. preneurs to invest in industrial with the participation of more Qatar Chamber has an- projects, and support the state’s than 70 leading Qatari busi- nounced that all preparations approach to public-private nessmen and 100 of their Ku- and logistics of the exhibition partnerships, as well as opening waiti counterparts. have been completed. The expo up new foreign markets to Qa- Qatar Chamber chairman will feature Qatar’s industry tari companies and pushing the Sheikh Khalifa bin Jassim al- through sectors such as food and industry, especially SMEs.