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Wednesday, March 22, 2017 Jumada II 23, 1438 AH

WINNING STREAK: Page 20 GULF TIMES QSE advances on stronger buying support from BUSINESS foreign institutions Rosneft signs LNG deal with Egypt for CI affi rms QNB ratings 10 cargoes this year

North African Nation turned to imports two years ago; Rosneft plans to join Eni-led Zohr gas project to boost output on par with Qatar’s Bloomberg Moscow

ussia’s largest crude producer, Rosneft joined trad- ers from Trafi gura Group to Glencore in boosting Rliquefi ed natural gas deliveries to Egypt before the with a stable outlook country restores domestic production. Rosneft, which seeks to expand its international gas By Santhosh V Perumal business, signed a contract to supply the north African Business Reporter nation with 10 LNG cargoes this year, Rosneft said yester- day by email. The deal, which followed a debut contract of three cargoes last year, will further strengthen the strate- apital Intelligence (CI), a global gic partnership between Rosneft and Egypt, the company credit rating agency, yesterday af- said. Cfi rmed QNB’s long and short-term Egypt, Africa’s largest gas market, was forced to turn to foreign currency ratings (FCRs) at ‘AA-’ imports two years ago as domestic production shrank at and ‘A1+’ respectively, at the same level as the same time as electricity demand is rising. The coun- the sovereign ratings for Qatar. try plans to purchase more than 100 LNG cargoes this The bank’s support rating of ‘1’ (affi rmed) year, including as many as 45 cargoes via government-to- refl ects the ownership by the Qatar Invest- government contracts from Rosneft, Oman and France’s ment Authority and its role as the fi nancial Engie, a person familiar with the matter said last month. arm of the government. The outlook on the The north African nation is targeting a reduction in im- long-term FCR is restored to ‘stable’ from ports next year, moving back to self-suffi ciency or even ‘negative’. exports after the planned commissioning of two major gas Asset quality and capitalisation of QNB - projects. Rosneft seeks to join one of them, the giant Zohr which has already achieved a high degree of fi eld, after it agreed to buy a share in the development diversifi cation of its assets, funding sources from Italy’s Eni, the project’s main owner. and profi ts with its presence in more than Egypt plans to boost gas output by 50% by the end of 30 countries - are expected to remain good next year from 3.8bn cubic feet by the end of 2016. It tar- with capital adequacy ratio to be main- gets a resumption of exports in 2019. tained at around 16% through additional Rosneft has long sought to build up its gas business. Tier 1 or Tier 2 capital, if necessary, it said. It overtook Novatek to become Russia’s second-largest Profi tability should remain good with any producer last year, but it has no LNG facilities of its own. pressures on domestic net interest margin Last year’s cargoes for Egypt, the fi rst-ever LNG deal for (NIM) being at least partially off set by the Asset quality and capitalisation of QNB - which has already achieved a high degree of diversification of its assets, funding sources and the company, were bought on the open market. Rosneft higher NIMs in Egypt and Turkey. profits with its presence in more than 30 countries - are expected to remain good with capital adequacy ratio to be maintained at around is mulling building an export plant near Russia’s Pacifi c Finding that QNB’s performance is no 16% through additional Tier 1 or Tier 2 capital, if necessary, CI has said. coast no earlier than 2023. It is also considering a Ven- longer solely a function of its domestic ezuelan LNG project. market, CI said it also depends on economic coverage ratio remains well in excess of the QNB has mitigated this by diversifying its In the meantime, QNB is expected to The LNG deliveries to Egypt will start in May, Rosneft performance in Egypt and Turkey and in the regulatory minimum. business organically and through acqui- continue to access capital markets to fur- said. countries in which it has branches, subsidi- The FSR is constrained to some extent sitions, the latest being the purchase of ther grow and diversify its longer term aries and affi liates. by the relatively tight ratio of loans-to- Turkish Finansbank, which has otherwise funding base. Affi rming QNB’s fi nancial strength rat- customer deposits, and by a fairly tight impacted its “reasonable” cost metrics While the rising exposure to coun- Rosneft , which has ing (FSR) at ‘AA-’ with “stable” outlook, it net liquid asset ratio; partly refl ective of compared to Qatari banks and its larger re- try and foreign exchange (forex) risks long sought to build said the FSR is supported by very good as- the sovereign decision in 2014 to begin to gional peers. on overseas subsidiaries and associates up its gas business, set quality, strong capitalisation and good deleverage by reducing borrowings and de- “At its current very high level of ‘AA-’, is to some extent a constraint, CI said overtook Novatek profi tability, particularly at the operating posits with banks. The quasi liquid asset QNB’s FSR nonetheless remains somewhat all foreign subsidiaries are self-funding to become Russia’s level. ratio is, nevertheless, strong while the net pressured on liquidity. However, liquid- with future forex risks partially hedged, second-largest Although tightening liquidity is the main quasi-liquid asset ratio is “satisfactory”. ity conditions domestically have eased”, CI and hence “unlikely to exert significant producer last year, constraining factor, QNB’s deposit base is The FSR is also constrained by Qatar’s said, assuming suffi cient liquidity injection downward pressure” on the FSR, unless but it has no LNG sound and access to well-diversifi ed global small population size and therefore the op- by the Qatari government into the banking the cross-border exposure levels increase facilities of its own funds is good, CI said, adding the liquidity portunities to grow domestic lending, but system, if needed. markedly. Page 20 QGIRC growth strategy: Focus on core businesses, realty projects

By Santhosh V Perumal in 2016, Sheikh Nasser said this Business Reporter increase reinforces its strategy on the management of real estate portfolio, which continues to earn revenues and Qatar General Insurance and increase total liquidity. Reinsurance Company (QGIRC) will not “We are maintaining our focus towards only strengthen its core businesses on converting our non-income-producing exponentially growing demand for risk land into income producing holdings,” cover, especially for large infrastructure he said, adding the aim is to maintain projects, but also focus more on real the leading position in the insurance estate projects. and real estate investment industries in “Our main objective is to expand in the country, considering that Qatar is the insurance areas, focus on the real one of the fastest growing economies estate projects currently executed by in the world. the company, enhance the capabilities Its group company General Real Estate and increase the financial eff iciency Company has seen a stable year in in compliance with international 2016 with projects continuing to meet standards and criteria,” QGIRC their targets. chairman and managing director QGIRC group chief executive Ghazi Sheikh Nasser bin Ali bin Saud al-Thani Abu Nahl said the slowdown in told shareholders at the annual general infrastructure expansion is expected assembly meeting yesterday. to ease by the end of this year. “We While international and local markets are likely to see an increased demand were aff ected by the prevailing for insurance on large infrastructure conditions of oil prices, which projects,” he added. consequently had its impact on the Qatar General Holding, which owns insurance industry, QGRIC managed most of the group’s subsidiaries and to achieve a 42% jump in net profit manages the group’s treasury and from previous year after excluding investment portfolio, said its “cautious” the revaluation gains of investment outlook on investments would properties, he highlighted. remain this year as it seeks to achieve QGIRC - whose coverage ratio of the reasonable returns, while maintaining QGIRC off icials outline the company’s 2017 growth strategy to the shareholders yesterday. available economic capital stood an appropriate level of diversification. at 294% as on December 31, 2016 - “We approach 2017 with cautious Holding deputy chief executive said. “significantly” lower the construction and further the development of “The recent securement of notable reported a net profit of QR258mn on optimism as infrastructure spending About realty projects, Ragheb Jalabi, costs of its projects, which include Oriental Enterprises (acquired in 2015),” medium and large size real estate gross written premium of QR838mn is set to pick up and the turbulent general manager of General Real Estate Lusail Fox Hills, Lusail Waterfront and he said. projects will enable us to bolster our (including takaful business) in 2016. conditions we have experienced Company, said a more realistic and Mozoon Towers. Remaining positive on Qatar’s standing within the market place, and Highlighting that its total equity throughout last year are expected to competitive pricing strategies of its “These cost savings enabled us to development path, Oriental Enterprises put us in a strong position to win further grew 2% year-on-year to QR6.4bn ease,” Abdallah Barrage, Qatar General suppliers and contractors enabled it to realign capital towards new projects general manager Adib El Choufani said, work in Qatar’s rapidly growing market.” Gulf Times 2 Wednesday, March 22, 2017 BUSINESS Iran struggles to coax Bank of England to open clearing accounts

Reuters the talks, said Tehran has approached the Tehran said: “The Bank of England has sus- ence in the main global financial centre countries to allow it back into the interna- to do more, so far there had been no London/Ankara Bank of England to seek clearing accounts pended anything related to Iran, even the outside of the United States. tional financial system to violate the spirit progress. directly with the UK central bank. latest scheduled meeting was cancelled. Even Iran’s embassy in London has so of the 2015 nuclear deal. The senior Iranian banking off icial Such accounts, for Iran’s own central Everything has been put on hold.” A far been unable to open a British bank ac- It says Britain in particular, given its added that meetings between Iranian and Iran has asked the Bank of England (BoE) bank or for the British subsidiaries of Bank of England spokesman declined to count. Three Iranian banks have subsidiar- large capital markets, should do more British government off icials had yielded to set up special clearing accounts for its Iranian banks, would allow them to make comment. ies with licences to operate in Britain: Melli to ensure Iranian banks operating there no change in the commercial banks’ banks, but has so far been rebuff ed in its and receive payments in sterling, business Iran’s central bank off icials were not Bank, Bank Sepah International and Persia legally are treated fairly. policies. “They (banks) are worried about eff ort to resolve an impasse that has left so far rejected by commercial banks. available to comment. International Bank. The UK government, eager to boost Trump’s Iran approach — and now that Iran it excluded from banking in London more “That would send a huge message to The sources all spoke on condition of But none has been able to persuade a trade with new markets like Iran after last has been ‘put on notice’, the process will than a year after sanctions were lifted. the market. What commercial bank is anonymity as talks between Iran and the commercial bank to clear its payments in year’s vote to leave the European Union, be much more diff icult,” the off icial said, Tehran has been hoping for swift re- practically going to stop Bank of England bank have not off icially been made public. sterling, the British currency. has struggled to convince British banks to referring to remarks made in Washington integration into global trade after its deal payments? None,” said one Western Although EU and United Nations “It is totally unacceptable that a UK boost trade with Iran, sources have told last month by then US national security in 2015 aimed at curbing Tehran’s nuclear source. sanctions over Iran’s nuclear programme bank which has a banking licence, which Reuters. advisor Michael Flynn threatening an un- programme in return for the lifting of However, the sources said the BoE were lifted a year ago, the United States is in good standing with its regulators, is British trade minister Liam Fox told a specified response after an Iranian ballistic international sanctions. seems uninterested in resolving the prob- still has separate measures in place over unable to access the sterling system,” said parliamentary committee last week he missile test. Its failure to persuade Western banks lem for now. Iran’s missile programme, and the new US Sue Millar, partner with law firm Stephen- had commissioned work from his depart- In response to questions from Reuters, to accept its business has been one of “The Bank of England has proved resist- administration has promised a hard line. son Harwood that represents those three ment to look at how to normalise “eff ec- the British government said it was com- the main choke points preventing its ant to intervening in any kind of positive The risk of falling afoul of US measures UK-based arms of Iranian banks, as well tive payment channels” with Iran to try to mitted to working closely with all parties, rehabilitation. way in order to assist trade between Iran has been enough to persuade Western as Bank Saderat, which remains on the US open up trading opportunities. including UK banks and industry groups, Banking sources from both Iran and the and the UK,” said the Western source. banks to steer clear, including in London, blacklist. An off icial close to Rouhani said while to help open opportunities for trade West, and Iranian political sources close to A senior Iranian banking off icial in where Iran is particularly keen for a pres- Iran considers the failure of Western the British government had promised between Britain and Iran.

Egypt aims to raise Libya’s major ports get $329mn from sale of stakes in state fi rms

Reuters mainly through stock exchange ready to resume crude Cairo offerings, which are widely seen as more transparent and could also help strengthen the gypt aims to raise 6bn bourse and attract prospective pounds ($329mn) from investors. Ethe sale of stakes in Oil Minister Tarek al-Molla state-owned companies in the said last year that eight petro- shipments after clashes 2017/18 financial year, Finance leum companies were among Minister Amr El Garhy told those being considered for pri- Bloomberg oil production following the Reuters, part of government vatisation. Cairo overthrow in 2011 of Muammar efforts to generate revenue and Central Bank Governor Tarek Gaddafi . The confl ict showed attract investors. Amer has said the govern- signs of calming in recent He did not specify which com- ment also plans to off er 20% ibya’s major oil ports of Es months, with oil output reach- panies would be involved, or the of Banque du Caire as well as a Sider and Ras Lanuf are ing about 700,000 barrels a day size of the stakes which would be 40% stake in the Arab African Lresuming operations and in February from 260,000 a day off ered to investors. International Bank (AAIB), in preparing to export crude after in August, according to data Egypt plans to off er shares in which the central bank owns a a two-week halt in shipments compiled by Bloomberg. Libya several public companies, main- stake. due to armed clashes in the pumped 1.6mn barrels a day be- ly in the petroleum and fi nancial Banque du Caire is expected to holder of Africa’s largest crude fore Gaddafi ’s ouster. sectors, on the stock exchange list its shares in the fi rst half of reserves. Waha Oil has an output ca- this year. the year. Libya’s total production rose pacity of more than 300,000 The off erings will be its fi rst The moves are part of on Monday to 646,000 barrels barrels a day, according to the since 2005, when the state sold Egypt’s efforts to revive its a day from 621,000, mostly due NOC’s website. Its production shares in Telecom Egypt, AMOC economy after the 2011 upris- to an increase from Waha Oil dropped by half to 40,000 bar- and Sidi Kerir. ing drove away tourists and Co, Jadalla Alaokali, a National rels a day after the closing of Es The Egyptian government foreign investors. Oil Corp board member, said by Sider, before it came to a com- owns a large number of com- On November 3, the central phone the same day. Waha Oil plete halt. Libya has been re- panies in various industries as bank abandoned its peg of 8.8 feeds into Es Sider, the coun- scheduling crude loadings at Es well as several banks, but its pounds per dollar, allowing the try’s biggest oil port. Staff are Sider and Ras Lanuf and trans- efforts to privatise state hold- pound to halve in value. returning to Es Sider and Ras A general view of the industrial zone at the oil port of Ras Lanuf, Libya (file). Libya’s major oil ports of Es Sider ferring them to other ports such ings have proven politically The stock market has rallied in Lanuf, the country’s third- and Ras Lanuf are resuming operations and preparing to export crude after a two-week halt in shipments. as Zueitina and Brega. sensitive. response to the fl oat with foreign largest, and exports are set to The country split into sepa- The government plans to investors also buying up govern- restart in a week to 10 days, clashes between armed factions ing, including airstrikes, dealt Crescent emergency commit- rately governed regions in 2014, sell minority stakes of 20-30% ment debt instruments. Alaokali said on Sunday. in the politically divided nation a blow to international eff orts tee, said. At least 45 workers leading to the establishment of “Both ports are ready to re- forced Es Sider and Ras Lanuf to restore stability in the coun- and engineers have returned to competing NOC administra- Suez Canal revenues fall to $375.8mn in February start exports,” he said. An oil to suspend shipments. Waha try. A rival group had seized Es their jobs at Ras Lanuf and 35 tions. A deal meant to reunite tanker, still to be nominated, is Oil is “soon” expected to reach Sider and Ras Lanuf earlier this others at Es Sider, El-Zegheid the state company under a sin- Egypt’s Suez Canal revenues fell revive its economy since a 2011 set to load 1mn barrels of crude 75,000 to 80,000 barrels a day, month. said. gle management was signed to $375.8mn in February from uprising scared away tourists from Es Sider on March 26, ac- the level it was at about two Brent crude added 42 cents, Employees at Es Sider have in July 2016. The future of that $395.2mn the previous month, and foreign investors, key cording to a person familiar weeks ago before fi ghting broke or 0.8%, to $52.04 a barrel in inspected storage tanks and accord now appears uncertain. a government website reported earners of hard currency. with the situation, who asked out near the ports on March 3, Dubai. The global benchmark valves, and the facilities are The head of the NOC in the east yesterday. The canal’s $8bn expansion, not to be identifi ed because the according to Alaokali. has lost more than 8% this year. ready to receive crude from the said earlier this month that he The canal is the fastest shipping inaugurated by President matter isn’t public. The venture began pump- Libya’s eastern oil region is Waha fi eld, which will slowly was pulling out of the deal be- route between Europe and Abdel Fattah al-Sisi in 2015, Waha Oil, a joint venture ing on Saturday. Forces loyal safe now, and companies in the increase Waha Oil’s production, cause the terms of the agree- Asia and one of the Egyptian was intended to double daily between the NOC, Hess Corp, to Libya’s eastern-based mili- area can resume normal opera- he said. ment, including the transfer of government’s main sources of traffic and increase annual Marathon Oil Corp and Cono- tary commander Khalifa Haftar tions related to production and Libya has sought to boost the company’s headquarters foreign currency. revenue to more than $13bn coPhillips, suspended produc- regained control over the two exports, Mustafa El-Zegheid, crude exports after fi ghting to the eastern city of Benghazi, Egypt has been struggling to by 2023. tion earlier this month after ports on March 14. The fi ght- coordinator of the NOC’s Oil among rival militias hobbled have yet to be met. Israel-Turkey gas talks may wrap up in summer

Bloomberg Tel Aviv

Talks between government off icials on building a natural gas pipeline from Israel to Turkey may conclude as early as this summer, Israeli Energy Minister Yuval Steinitz said yesterday. The aim is to create a framework that would let compa- nies on both sides advance their own negotiations, with gas flowing to Turkey in about three years, Steinitz said in an interview with Yousef Gamal El-Din and Shery Ahn on Bloomberg Television. Israel is also in talks for a more ambitious pipeline that would pass through Cyprus and Greece to Italy, whose energy minister plans to visit Israel in early April to discuss the project, he said. “The purpose is to conclude by this summer a govern- ment-to-government agreement on a gas pipeline stretch- ing from Israel to Turkey, in order to export natural gas from Israel and also the vicinity, to Turkey,” he said. “My vision is that three years from now we will be able to export natural gas to Turkey and six years from now we will be able to complete this cross-Med pipeline” to Italy, he said. The Israeli push to connect the eastern Mediterranean through pipelines in a region riven by old conflicts is going to be hard to pull off , especially as world energy prices remain depressed. A conduit to Turkey would have to go through Cyprus, which has been divided since a Turkish invasion of the north in 1974. Israel has discovered two large off shore reservoirs holding an estimated 930bn cubic metres of natural gas, more than enough to supply its own domestic needs for at least two decades. It is auctioning new fields this summer and is trying to find nearby export destinations to bring in billions of dollars in revenue while strengthening Israel’s geopolitical standing in the region. Jordan has already signed an estimated $10bn deal to import Israeli gas and Steinitz said talks continue to export gas to two idle lique- faction facilities in Egypt. The partners in Leviathan, Israel’s largest off shore gas find, started working on a $3.75bn development plan to service the domestic contracts and the Jordanian market.

Wednesday, March 22, 2017 6 ISLAMIC FINANCE GULF TIMES

EDUCATION/FAQ on Mudarabah

Is it permissible for the working the first deduction being along with of profit, it is permissible to divide demand such money from the working partnership, as well as any ancillary Is it possible to vary profits margins partner to deduct zakat on other administrative expenses, it according to any mutually agreed partner. The role of the working expenses. by business area? Mudarabah operations on behalf of while the second being the salary ratio. The investors are not bound to partner is that of a trustee, and a Before finalising an agreement in a the investors? of the bank’s shareholders out of divide profits in proportion to their trustee cannot be required to pay any In case of long-term Mudarabah restricted Mudarabah, the investor It is permissible for the working the net profits? capital investment. This entails, for amount to the investor except in case contracts, is it permissible to may stipulate that some areas of the partner to deduct zakat from It is permissible in the Shariah to example, that two investors may of the trustee’s negligence. periodically distribute profits business earn the worker higher profit Mudarabah operations from the deduct salaries from the Mudarabah have a 1:1 ratio of capital investment, among investors instead of a bulk margins than others, for instance, the investors’ accounts, provided that he in the mode described. The second and 2:3 ratio of division of profits. In case of termination of a distribution at the conclusion of the mudarib’s profit share is 20% in textile has been authorized to do so by the deduction represents nothing more However, loss on investment may Mudarabah through the investor Mudarabah contract? businesses and 30% in electronics investors. than the bank’s share in the profits only be divided in proportion to buying all the assets of the It is permissible, with mutual businesses. of the Mudarabah operation, in its capital invested. Losses are charged partnership, is it permissible for agreement among investors, to Is it permissible for an investor in a capacity as working partner, and directly to the capital itself, therefore that investor to sell such assets periodically distribute profits instead In case a client approaches a bank Mudarabah to also act as working such profit is to be paid to the bank’s their division must be according to under a Murabaha? of a bulk distribution at the conclusion to finance a particular project, is it partner? shareholders. Care should be taken to the proportion of capital invested In the case described above, the of the contract. permissible for the bank to charge It is permissible for the investor in ensure that the second deduction is by each investor. Any stipulation Mudarabah operation has ceased a fee for evaluating the profitability a Mudarabah to assume the role according to the share of the bank as that states to the contrary will be to exist and all assets belonging to Is it permissible to restrict the of the project prior to entering into of working partner as well. This is prescribed in the Mudarabah contract. considered void. the Mudarabah operation are now time-period of investment in a a financing arrangement? particularly relevant in Mudarabah in the custody of the investor. It is Mudarabah contract? It is permissible for the bank to charge transactions involving multiple banks, Is it permitted for the investors to Is it permissible for the investor permissible for the investor to dispose It is permissible for the investor to a fee for evaluation of the project, where each bank is an investor and mutually agree upon a formula of to demand from the working of the assets in any manner he deems restrict the time-period of investment provided that such fee is charged one bank is an investor and a working division of investment yield that is partner a certain percentage of suitable, including Murabaha. However, in a Mudarabah contract. At the before entering into a financing partner. not commensurate with the capital each investment to be made, in care must be taken to comply with all end of the specified time-period, all arrangement. invested? addition to his share of proceeds of the requirements of a valid Murabaha transactions cease and the profit Is it permissible to deduct salaries This returns to whether there is profit investment? sale, including disclosure of the exact or loss is divided as per Mudarabah Source: Ethica Institute of Islamic from the Mudarabah in two steps: or loss on the investment. In case It is not permissible for the investor to purchase price of goods from the contract. Finance via Bloomberg

‘Ezdan Holding to meet fixed income Challenges for takaful in investors ahead of dollar sukuk’

Reuters limelight as growth slows Dubai Qatari real estate developer Ezdan Holding will By Arno Maierbrugger meet fixed income investors in Hong Kong from Gulf Times Correspondent tomorrow ahead of a potential US Bangkok dollar-denominated sukuk issue, a document from one of the banks leading the transaction showed yesterday. slamic insurance, or takaful, an industry The company will hold meetings in Singapore that mostly stands in the shadow of the on Friday, in Dubai and Abu Dhabi on March 26 Imuch larger Islamic banking sector, will and in London on March 27. be in the centre of attention at the upcom- A benchmark Regulation S senior unsecured ing 12th annual World Takaful Conference, sukuk with a maturity ranging between five and an infl uential gathering of Islamic insur- seven years may follow. ance players to be held on April 11 and 12 in HSBC and Mashreq bank are the joint global Dubai. The event, seen as the leading global coordinators, and Dubai Islamic Bank, Emirates forum for takaful, plays an instrumental role NBD Capital, HSBC, Mashreq, Natixis and in the development of the industry and will Standard Chartered are joint lead managers and this year have to address a number of issues, bookrunners. including low profi tability despite sizeable The Islamic bond would be part of a $2bn trust growth in the takaful business, as well as certificate issuance programme. questions about full Shariah-compliance Ezdan Holding is rated BBB- by S&P and Ba1 by of various insurance models takaful players Moody’s. off er. While takaful is a popular insurance meth- od in Islamic countries, in the global arena it is still at a nascent stage of development, both in terms of product variety and in terms Turkey to pay investors of frameworks and regulation. Takaful has indeed witnessed rapid growth, mainly in its for seized Bank Asya’s core markets, the Gulf Cooperation Coun- cil (GCC) countries, Pakistan and Malaysia, defaulted Islamic bond with total assets doubling in the last fi ve years, but in most other regions it has main- Bloomberg tained niche status and needs much promo- Istanbul tion as it navigates through the complex glo- bal insurance landscape. Takaful is a type of Islamic insurance on Turkey’s Deputy Prime Minister Nurettin Canikli risk-sharing basis, where members contribute has said the government will make coupon money into a pooling system in order to safe- payments on a sukuk issued by Bank Asya, which guard each other against loss or damage. It is is being liquidated after it was seized in 2015, so based on Shariah law which sets the case how The Syarikat Takaful Malaysia headquarters (centre left) stands in the Jalan Sultan Sulaiman area of Kuala Lumpur on August 27, 2014. Takaful as not to face an international credibility issue. individuals cooperate and protect each other. has indeed witnessed rapid growth, mainly in its core markets, the GCC countries, Pakistan and Malaysia, with total assets doubling in the last Bank Asya, seized for connections to a movement The problem starts with this very Shariah- five years, but in most other regions it has maintained niche status and needs much promotion as it navigates through the complex global blamed for last year’s coup attempt, failed compliance. While takaful contracts in theory insurance landscape. to make a payment on its $250mn debt in are set up as truly risk-sharing agreements, in October 2016, while it was being managed by a larger context the Shariah idea gets diluted ucts, unsuccessful product diff erentiation panies require considerable capital invest- $20bn globally at the end of the year, they government-appointed trustees. The fate of the when takaful companies invest fee infl ows from conventional insurance products and ment to become established, yet relatively acknowledge that annual growth will slow payments was unclear as the bank is undergoing in non-Shariah-compliant fi nancial instru- overcapacity in the insurance markets as a new companies often come under pressure to down from around 20% in the past couple of a liquidation process following its seizure by the ments, insure their own risk with convention- whole which leads to aggressive price wars in generate profi ts and deliver healthy returns years to below 15% in most key markets. Savings Deposit Insurance Fund, or TMSF, a state al re-insurers instead of re-takaful companies which takaful players are sometimes strug- to their investors,” the report points out. Experts ahead of the World Takaful Con- fund for resolving failed companies. or simply lack consistency in following the gling to stay afl oat. ference recommend a shift in strategy to- “In the liquidation process we have the option not underlying principles of mutuality in a takaful It is also a structural problem: For exam- wards alternative consumer segments and to make coupon payments of subordinated loans, agreement, pressured by stiff competition on ple, there are currently more than 70 takaful the exploration of merger options, together but we are even paying those,” Canikli said in an the overall insurance market. players in the GCC region alone, competing Gulf Times with a much-needed harmonisation of regu- interview with Anadolu Agency last Thursday. In terms of profi tability, takaful operators for fee income of just around $10bn, of which latory frameworks for the fragmented takaful The liquidation process could take two-and-a-half show relatively weak performance despite 80% originates from Saudi Arabia. Exclusive industry. The absence of common regula- to three years, he said. they normally charge higher fees on mutual “The heavy competition, combined with tions to allow players to operate across dif- Bank Asya was founded by followers of Fethullah protection agreements than conventional in- net losses, is eroding capital strength of taka- ferent takaful models is seen as a major ob- Gulen, a US-based cleric that President Recep surers. This has to do with their usually small ful players and damaging their credit pro- Ratings fi rm Moody’s also remains cau- stacle on the way to develop a market-wide Tayyip Erdogan blamed for a corruption probe size, short track records and focus on retail fi les,” ratings agency Standard & Poor’s said tious. Although the agency’s analysts expect strategy that highlights the unique features into his government in 2013, and then for the instead of commercial and industrial clients. in a recent report on the takaful industry. takaful growth to remain at double-digit lev- of Islamic insurance and achieves sustain- failed coup attempt in July of last year. Other problems are a small variety of prod- “In our opinion, Islamic insurance com- els in 2017 and gross contributions to reach able long-term growth. Aramco said to plan $2bn debut bond ahead of IPO

Sukuk sale would be first phase of a $10bn debt programme; HSBC Holding’s local unit is working on planned deal

Bloomberg Dubai

audi Arabian Oil Co plans to raise off ering in October raised $17.5bn in the about $2bn in its debut bond sale, the biggest-ever emerging-market sale. Sfi rst step of a plan by the energy giant A spokesperson for Saudi Aramco didn’t to tap markets for $10bn, according to peo- immediately respond to requests seeking ple familiar with the matter. comment. Saudi Aramco, as the company is known, The company hired HSBC Holdings’s lo- will sell riyal-denominated Islamic bonds, cal unit and Riyad Capital to help with the or sukuk, as early as the second quarter, sale, people said last month. NCB Capi- the people said, asking not to be identifi ed tal Co and Alinma Investment Co are also as the discussions are private. The sukuk working on the deal that could be followed may be privately placed with investors, they by dollar-denominated bonds, they said. said. Saudi Arabia is also planning a sale of Saudi Aramco is preparing to sell bonds Islamic bonds in riyals to local institutions ahead of an IPO in 2018 and will add to a this year to help boost the country’s sukuk string of sales in the Middle East and North market, people said earlier this month. The Africa where countries raised almost $80bn kingdom is working on the benchmark- in bonds last year, the most since Bloomb- sized issue alongside a plan to sell dollar erg started compiling data in 1999. Islamic bonds in the international market, The Saudi Arabian government’s debut they said. Gulf Times Wednesday, March 22, 2017 7 BUSINESS

Sensex falls further; rupee strengthens

Modi magic seen lasting Rs400bn ($6.1bn). Bloomberg Mumbai Meanwhile the rupee yesterday rebounded and closed near 17-month high against the US India’s benchmark index edged dollar. It gained six out of seven lower as drugmakers declined trading sessions. in Indian markets amid on concern US Food and Drug The rupee closed at 65.28 Administration regulations a dollar — up 0.12% from its would hurt the companies. Monday’s close of 65.36. The S&P BSE Sensex dropped The rupee opened at 65.40 0.1% at the close, while NSE Nifty a dollar and touched a high 50 Index was down less than and a low of 65.21 and 65.44, 0.1%, erasing an earlier gain of respectively. foreign investment fl ows 0.2%. Divi’s Laboratories fell The US Federal Reserve could 20% after saying the FDA issued raise interest rates two, three Bloomberg import alerts on some of its or four times this year, said Singapore products. Chicago Fed president Charles Dr Reddy’s Laboratories Evans, though his Minneapolis dropped 4.1% after the Mumbai colleague Neel Kashkari argued ndian Prime Minister Narendra Modi’s Stock Exchange sought that there was no need to rush, election-win magic looks to be casting clarifications on reports of Bloomberg reported. Ia spell on the stock market. repeated observations from the Traders are awaiting Fed The S&P BSE Sensex index will climb to US drug regulator. chairwoman’s Janet Yellen’s 32,000 by the end of December, up more “Pharma stocks are being speech on Thursday for further than 8% from its close of 29,518.74 on Mon- pulled down by negative cues. day, according to a median estimate of eight sentiment due to regulatory So far this year, rupee gained traders and investors surveyed by Bloomb- issues with the USFDA,” Soumen 4.2% while foreign institutional erg News on March 14, three days after Chatterjee, head of research investors have bought $4.23bn Modi’s landslide victory in state elections. at Guiness Securities, said by and $1.28mn from local equity Financial companies and drug makers are phone. The “strong rupee, low and debt markets, respectively. among their top picks on optimism the re- commodity prices are limiting The 10-year bond yield closed sult will open the gates to foreign cash. the downside.” at 6.887%, compared to its “India will get $15-$20bn a year from Axis Bank, Aurobindo Pharma Monday’s close of 6.893%. emerging-market allocations, which will and Idea Cellular were among Bond yields and prices move in partly get a boost due to political stability the worst performers on the opposite directions. after Modi’s win in state elections,” said Nifty Index. Divi’s fell the most Asian currencies were trading Samir Arora, Singapore-based founder of on the BSE 500. lower. hedge-fund fi rm Helios Capital Manage- Avenue Supermarts, Thai baht was down 0.23%, ment Pte. “I would buy even now, but be controlled by Indian billionaire Singapore dollar 0.15%, selective. The market is in good hands.” Radhakishan Damani, more Japanese yen 0.14%, China The optimism comes even after the India’s price-to-earnings premium to the note. Overseas investors bought a net gist, wrote in a note Thursday. Renewed than doubled in its trading off shore 0.06% and Philippines post-election rally made Indian stocks the MSCI Asia Pacifi c ex- Japan Index has $1.56bn of Indian shares in February, end- weakness in oil prices may act as another debut after investor demand peso fell 0.05%. However, South most expensive in Asia, according to data come down to 26% versus an average ing a four-month selloff . They have already positive for India in the emerging-market exceeded stocks on off er by 106 Korean won was up 0.37% and compiled by Bloomberg, as their one-year 40% and a peak of 50% over the past two purchased another $2.43bn in March, with context, Wood added. times. Taiwan dollar 0.18%. forward price-to- earnings ratio climbed years, Goldman Sachs Group analysts led $867.6mn of it coming in just two days fol- The respondents in the survey are from The shares surged as high as The dollar index, which to the highest since 2010. by Sunil Koul wrote in a note on Friday. lowing the state- election results. Equinomics Research & Advisory, IDBI Rs650 versus its off er price measures the US currency’s The benchmark dropped 0.1% at the Risk from foreign positioning is low as Foreigners began 2017 looking for rea- Capital Market Services, Motilal Oswal of Rs299, the best debut strength against major close yesterday, after marking its highest emerging market and Asia ex-Japan mu- sons to sell India, but capitulation has be- Asset Management Co, Religare Capital performance in four years. currencies, was trading at level since March 2015 on Friday. Its rela- tual funds’ overweight on India has come gun, and the election result would further Markets, India Infoline, Guiness Secu- Yesterday’s performance values 100.22 — down 0.19% from its tive strength index has risen above 70, a down to 330 basis points from 550 basis accelerate that trend, Christopher Wood, rities, OmniScience Capital and Kotak the department-store chain at Monday’s close of 100.41. level some investors see as a signal to sell. points during the 2015 peak, according to CLSA’s Hong Kong-based equity strate- Mahindra Bank. Modi-backed Most Asian bourses end higher after retreat ETF may fuel AFP India sales after Hong Kong ost Asian markets rose yester- day following the previous day’s $1.4bn haul Mretreat, but the dollar was hit by fresh uncertainty over Donald Trump’s economic policy and contradictory views Bloomberg funds due to lower returns,” on future rate rises among two top Federal Hong Kong said Prasad. “This is partly due Reserve offi cials. to information asymmetry in Global stocks had started the week with the Indian stock market that a wobble after G-20 fi nance chiefs failed The success of an exchange- gives active managers an to renew a longstanding anti-protection- traded fund backed by Prime advantage.” ist pledge in the face of Trump’s “America Minister Narendra Modi’s In the case of CPSE, retail First” push, fuelling fears about the inter- government may help boost the investors put bids of more than national trade system. acceptance of such products in Rs35bn, swayed by its perform- But investors returned to buying in the world’s second-fastest grow- ance. The fund has climbed Asian business yesterday, with Hong ing ETF market. 43% in the past year, more than Kong closing up 0.4% — marking four Investors poured Rs92bn double the gain in the Sensex, days of gains that have pushed the Hang ($1.4bn), or 3.7 times the data compiled by Bloomberg Seng Index to its highest level since July targeted amount, into a fund of show. The outperformance will 2015. Sydney was fl at, Shanghai closed the top 10 state-run compa- help stoke interest for such 0.3% higher, while Seoul jumped 1% and nies, according to Reliance products, according to Outlook Singapore barely moved. People walk outside the Hong Kong Stock Exchange building. The Hang Seng closed up 0.4% to 24,593.12 points yesterday. Mutual Fund, which manages Asia Capital. Taipei, Wellington, Jakarta, Bangkok the pool. It was the third time “As the size of ETF assets and Manila were all higher. Charles Evans suggested there could be OANDA, said in a note: “Post (Fed deci- a sigh of relief that centrist Emmanuel in three years the government grow, fund managers are now But Tokyo lost 0.3% as traders returned more increases this year but Minneapolis sion) the markets’ attention has turned Macron came out on top in the fi rst French used the Central Public Sector seeing a viable business model,” from a long weekend to fi nd the yen had boss Neel Kashkari said the policy board again to the Trump administration’s lack presidential debate on Monday, seeing off Enterprises ETF, or CPSE, to said Manoj Nagpal, chief execu- strengthened signifi cantly against the should take its time. of concrete policy announcements. his closest rival, the far-right, anti-EU raise assets. A first sale in March tive off icer at the Mumbai-based dollar. The uncertainty surrounding US pol- “With the new administration’s 100 candidate Marine Le Pen. 2014 generated Rs43bn and investor advisory firm. “More The greenback was at ¥112.70, up from icy comes as investors await details on days of action rapidly turning into 100 In early European trade London rose a second tranche in January niche ETFs are getting filed with New York but well off the ¥113.33 mark Trump’s promise to boost infrastruc- days of inaction, extended dollar refl a- 0.1%, Paris gained 0.4 % and Frankfurt raised at least Rs45bn. Proceeds the market regulator. That’s a seen when the Nikkei was last open Fri- ture spending and slash taxes to fi re up tionist long positioning has started head- was 0.3% higher. will be used to maintain public positive trend.” day. The dollar has come in for heavy sell- the economy. World markets surged after ing for the door.” In Tokyo, the Nikkei 225 closed down spending without increasing the Modi is using CPSE ETF to ing since the Federal Reserve on Wednes- his November election on expectations The dollar was also struggling against 0.3% to 19,455.88 points; Hong Kong — fiscal deficit. pare the government’s exten- day raised borrowing costs but pointed to he would push the plans through but the most other high-yielding units, with the Hang Seng edged up 0.4% to 24,593.12 “India’s ETF market is expect- sive ownership in companies in- another two rises this year, confounding lack of anything substantial since then has South Korean won up 0.2% and the Mexi- points and Shanghai — Composite rose ed to witness robust growth cluding Oil & Natural Gas Corp, talk of a possible three or four. spooked some. can peso 0.4% higher. 0.3% to 3,261.61 points at the close in the coming years due to the the largest explorer, and Coal On Monday, Chicago Fed President Jeff rey Halley, senior market analyst at The euro edged up as markets breathed yesterday. structural shift in asset-class India, the world’s top producer preference from fixed income of the fuel. Separately, the state- to equities,” Rajendra Prasad, an run Employees Provident Fund analyst at Karvy Stock Broking Organisation has put Rs181bn Ltd, said in an interview. CPSE into shares via index-linked is a “catalyst for the broader funds since it was allowed in development of ETFs in India.” 2015 to buy stocks, Labour Emerging equities extend winning streak Indian households are Minister Bandaru Dattatreya putting more money into told the Press Trust of India on Reuters pectations grew. Russian stocks So the easing cycle could be financial assets as slowing the weekend. London rose to three-week highs. quite signifi cant from here on,” inflation reduces the value of The pension fund may invest The central bank will hold he said. gold and Modi’s cash ban shock up to 15% of its Rs1.4tn ($21bn) rates at 10% this Friday, 15 out of The Polish zloty has risen damps demand for real estate. surplus into equities in the year further pullback in the 25 analysts predicted in a Reuters strongly, hitting seven-month Money managed by local ETFs starting April 1, PTI cited the dollar and US Treasury poll, but the number of people highs against the euro thanks have almost tripled to $6bn in minister as saying. That would Ayields yesterday helped expecting a cut has increased to data showing robust growth the past three years, the fastest mean an inflow of $3bn, said to extend a winning streak by since last month as infl ation ap- and infl ation and slightly more pace after Japan, data from the Nagpal. “Institutional inves- emerging market equities to the proaches the 4% target. hawkish rhetoric by some central Association of Mutual Funds in tors will grow the ETF market longest since last August, while Renaissance Capital ana- bankers. India show. The investments for the next one to two years, Russian bond yields hit three- lyst Oleg Kouzmin expects no “Our sense is that any rate still make up just 2% of the followed by retail once they see year lows on rate-cut expecta- change in rates but told clients hikes are more likely to come in industry’s total Rs18tn assets, size and liquidity,” he said. “In tions. that “thanks to the improv- 2018. the data show. the meantime, the industry is MSCI’s emerging stocks index ing infl ation outlook, we expect But when you have that slight While the under-performance getting ready by creating more rose half a per cent for an eighth the CBR to soften its rhetoric shift coupled with continued of portfolio managers has made products.” straight day of gains after the US signifi cantly and provide clear very loose monetary policy by ETFs into a $4tn industry globally, In Japan, where ETF assets Federal Reserve’s relatively do- guidance of a rate cut at one of the ECB that could provide some products linked to indexes are an have more than doubled in vish tone pushed down the dol- the upcoming meetings”. He support for the zloty,” Jackson emerging trend in India where three years to $193bn, buying lar and US yields. predicted a 50-basis-point (bps) added. money managers have produced is driven by a central bank The index is up 4.4% this cut at the bank’s meeting at the Markets will also watch Ni- market-beating returns by initiative. After exhausting month to its highest since Au- end of April, with rates likely to geria’s central bank meeting for picking individual stocks. Local more traditional forms of asset gust 2015. Emerging market cur- end 2017 at 8.5 to 9.0%. But Wil- clues on plans to fl oat or devalue actively-managed equity funds purchases, the Bank of Japan rencies have also broadly fi rmed liam Jackson at Capital Econom- the naira after recent tentative have risen an average 20% annu- in 2011 began buying ETFs to against the dollar, though yes- ics reckons a 50-bps cut is likely moves. The bank is expected to ally over the past three years, ver- stoke the economy. The BoJ terday most retreated after hit- this week. keep interest rates at 14%. As de- sus a 13% gain in the benchmark owns about 66% of ETFs, mak- ting multi-month highs. “The infl ation rate...is very valuation hopes have faded, the S&P BSE Sensex, data compiled ing the country home to most The exception was the rouble, near the central bank’s target, naira has risen in the non-de- by Bloomberg show. of the 10 largest ETFs outside of as oil prices rose and cash fl owed and it doesn’t seem justifi ed liverable forwards market, with “Flows into Indian ETFs are the US, according to Bloomberg into Russian debt. It touched having the policy rate at 10% six-month NDFs now pricing a less than those into mutual Intelligence. fi ve-week highs while 10-year when infl ation is at 4.5pct and 354 per dollar rate, down from bond yields fell as rate cut ex- going down. almost 400 a month ago. Gulf Times 8 Wednesday, March 22, 2017 BUSINESS

Russia tax plan could Deutsche Bank may face US put pressure on budget fi nes over currency trades and infl ation

Bloomberg Reuters New York Moscow

eutsche Bank AG is expected to Russian fi nance ministry be fi ned by the Federal Reserve proposal to overhaul the Dand New York’s Department of Atax system could create a Financial Services for its conduct in the budget shortfall and put upward foreign exchange market, a person fa- pressure on infl ation, Tatiana miliar with the matter said. Golikova, the head of Russia’s The German lender said on Mon- Audit Chamber, told Reuters in day that the US Justice Department an interview. had closed a criminal inquiry into its The ministry has proposed currency- trading activities without cutting employers’ mandatory action. social security contributions But regulators are in the fi nal stages with the aim of enticing busi- of their own reviews of that conduct to nesses out of the shadow econ- determine what fi nes, if any, the bank omy. To off set that, it proposes should pay, the person said. The Fed- increasing value added tax (VAT) eral Reserve has fi nished its investiga- to 22% from 18%. tion, the person said, and the New York The ministry wants the com- bank regulator is close to wrapping up bined change to take eff ect from its own probe. 2019. But the intervention from Deutsche Bank has moved beyond Golikova, an infl uential former most of its legal challenges in the US government minister and deputy In the past two years, it has struck set- fi nance minister, indicates the pro- tlements with the Justice Department posal could face resistance from over allegations of interest-rate ma- some quarters in ruling circles. nipulation and its sale of toxic mort- Golikova, whose audit cham- gage securities. ber is responsible for monitoring Separately, it reached settlements whether the government is using with the DFS over sanctions violations budget spending eff ectively, said and “mirror trading” that moved bil- the changes would force the gov- lions of dollars out of Russia. The bank ernment to increase its support also paid a $2.5mn civil penalty to the for the pension fund. Commodity Futures Trading Com- The fi nance ministry’s pro- mission for failing to report its swaps posal is to cut employers’ social transactions. security contributions to 22% of While the bank no longer has to con- a worker’s salary from their cur- tend with the Justice Department’s for- rent level of 30%. eign exchange probe, the US attorney’s The headquarters of Deutsche Bank is seen in Frankfurt. Deutsche Bank is expected to be fined by the Federal Reserve and New York’s Department of Financial Services A part of the contributions offi ce in Manhattan is continuing its for its conduct in the foreign exchange market, according to reports. goes into the state pension fund investigation of sanctions violations to help keep it topped up. and the Russian mirror trading. Dawn as SA, Credit Suisse Group AG and So- to escape Justice Department action. tion that could interfere with its own en action against some individual cur- The fund is already in defi cit, Dearden, a spokeswoman for the US ciete Generale SA. Goldman Sachs and The bank still has to contend with a investigation. Deutsche Bank was rency traders. In January, former Bar- a problem the fi nance ministry attorney’s offi ce in Manhattan, has de- Credit Suisse declined to comment, civil suit against it and 15 other banks. among nine banks that argued in court clays trader Jason Katz pleaded guilty itself says needs to be addressed, clined to comment on the status of its and the other banks didn’t respond to In the suit fi led in Manhattan, the fi lings that that there wasn’t “a single to conspiring to manipulate emerging- and the drop in social security investigation. requests for comment. plaintiff s allege currency rigging in specifi c factual allegation” that they market currency trades. A week later, contributions will mean that less Spokesmen for Deutsche Bank, the Overlapping currency investiga- online chat rooms where 22 currencies conspired to manipulate benchmark prosecutors charged three ex-traders money is going into the fund, she Federal Reserve and DFS declined to tions by law enforcement and regula- were discussed. currency rates. who used an online chat room called said. comment. tory agencies have ensnared several big In one chat room open from early On Monday the bank said it had re- “The Cartel” to allegedly coordinate Asked if the proposed tax The DFS opened its currency probe banks. Five pleaded guilty in 2015 in 2008 until late 2012, Deutsche Bank ceived a letter from the Justice Depart- trading in US dollars and euros. They changes would increase the of Deutsche Bank and Barclays in 2014, connection with the US Justice Depart- traders discussed the Canadian dol- ment in February saying it had closed have yet to make an appearance in burden on the budget, Golikova focusing on conduct using their elec- ment’s currency-trading probe - Citi- lar and New Zealand dollar with trad- its criminal inquiry. court. said: “In this conception, in this tronic trading platforms. group, JPMorgan Chase & Co, Barclays, ers from six other banks, according to The US reserves the right, as it cus- The Fed has banned from the US construction, yes.” The regulator eventually expanded Royal Bank of Scotland Group and UBS that suit. The Justice Department had tomarily does, to reopen the probe if banking industry two traders involved The Russian budget had to its investigation to four other banks Group AG. asked more than a year ago for certain more information emerges, Deutsche in the Cartel chat room: Christopher provide around 3.4tn roubles operating in the US under a state char- Deutsche Bank was the largest par- details of the lawsuit to be made con- Bank said. Ashton, formerly of Barclays, and Mat- ($17.40bn) to cover the Pen- ter: Goldman Sachs Group, BNP Parib- ticipant in the foreign exchange market fi dential to avoid disclosing informa- The Justice Department has also tak- thew Gardiner, who worked at UBS. sion Fund’s liabilities last year, an extra burden on a budget al- ready straining under low tax revenues. According to the Chamber’s calculations, under the fi nance Fed relief turns investors’ focus to emerging economies in bloom ministry’s proposal social secu- rity payments would go down by 1.5tn roubles while revenues Bloomberg of February, but investors are back in for our investors to look at the medium to the highest level since 2014. Rus- bonds narrowed by 19 basis points. from VAT would increase by only London the game. This environment is good for to longer term.” sian assets are attractive as the coun- The iShares JPMorgan USD Emerging 1.3tn roubles. risk sentiment.” That echoes Christopher Bright- try is recovering from a “bad economic Markets Bond ETF gained $438mn In the interview, Golikova Developing-nation stocks are man’s view. The chief investment of- downturn,” FIM’s Alava says. of inflows in the four days through said the other consequence he strength of a rally across de- on longest winning streak in seven fi cer at Research Affi liates said inves- Currencies: The MSCI gauge of de- March 20. of the proposed tax changes veloping nations after the Fed- months, and Mexico’s peso and South tors have the opportunity to get in early veloping-nation currencies advanced Key risks: US President Don- would be on inflation, which Teral Reserve’s rate increase has Africa’s rand led a measure of emerg- on what should be a multi- year bull for a fi fth day, the longest run this year. ald Trump’s policies are the biggest the central bank is seeking to become a riddle for global investors. ing currencies to the highest level market in emerging assets as demand Mexico’s peso and South Africa’s rand risk for emerging markets, Alva says. get under its target of 4% by the But the answer may be simple: growth since 2015. The iShares MSCI Emerg- for commodities increases. extended their status as the world’s Capital Economics predicts the Fed end of 2017. prospects. ing Markets ETF, an exchange-trade Here’s a look at various metrics that best carry trades this year. South Ko- will boost rates by a greater degree The fi nance ministry has ac- While higher US borrowing costs fund that tracks developing equities, show the strength of developing assets: rea’s won was the biggest gainer among than markets anticipate, according knowledged that the VAT in- typically boost the dollar, policy mak- saw infl ows of $197mn on Monday, the Stocks: The MSCI Emerging Mar- Asian peers since the Fed meeting as to William Jackson, a London-based crease may result in a one-off ers were less hawkish than investors second in a week. kets Index rose to the highest level fund fl ows into the country increased. economist. 2-percentage-point increase in expected, sending the greenback tum- Chinese stocks and South Korea’s since June 2015. While that took its val- All currencies of developing Asian Jackson sees Turkey’s lira and in- infl ation. bling and emerging-market assets won starred in the rally since the latest uation to the highest level since Octo- currencies rose during the period. dustrial metals as the be most vulner- Golikova said that would have soaring. That gave investors breathing US rate increase. Most investors favour ber, or 14% above its fi ve-year average, Concerns of a “hard landing” in Chi- able to gains in US borrowing costs. “If far-reaching consequences for space to revel in the prospect of faster Asian assets for the rest of 2017. “One analysts have increased their average na’s economy have eased after a raft we move into a more hawkish environ- monetary policy and for ordi- US growth - because when the world’s of the reasons why we really like Asia earnings forecasts for the gauge’s com- of recent data sparked optimism that ment, we would anticipate that as a nary people. largest market takes off , it lifts the for- and why we are overweight emerging panies to the highest level since August the rate of growth is picking up, Alava risk where we’ll see a stronger US dol- “This (proposal) means that tunes of countries worldwide. markets is because we believe the fun- 2015. Chinese, Taiwanese and Korean says, adding that she favours countries lar and tightening fi nancial conditions a half or even more of that 4% “The global recovery is getting damentals are now turning,” Belinda companies accounted for seven of the including India, Vietnam and Philip- which of course would be negative for (of infl ation)...would be made stronger and even Europe is showing Boa, the Hong Kong-based head of 10 biggest contributors to the stock pines, as they have “young popula- this part of the world,” BlackRock’s by our own hands...This means some signs of life,” said Hertta Alava, active investments for Asia Pacifi c at gains in the MSCI gauge since the Fed tions” and their economies “have room Boa says. that the central bank will have the head of emerging markets at FIM BlackRock, told Bloomberg Television. decision. to catch up.” French elections will be watched for to make additional eff orts to Asset Management in Helsinki. “There “There are markets that are running Analysts have raised estimates for Bonds: The yield on a gauge of any sign that right-wing populists may maintain the infl ation level,” was a little bit of weakening at the end hot. What’s really important for us is dollar earnings at Russian companies dollar-denominated government be taking the upper hand, Jackson says. Golikova said. Gold is marooned between US rates and India demand

By Clyde Russell in mid-December. So, why is the gold Council. One of the main factors driving It’s likely that the best-case scenario Launceston, Australia market being sanguine about rising US the slump was the government’s for China this year is one of steady interest rates? ongoing eff orts to attack the informal demand, with the main X-factor being Part of the answer may be that economy, culminating in the removal of the value of the yuan, as a depreciating It’s not unusual for a financial market investors are taking a view that the rise high denomination Rs500 and Rs1,000 local currency may spur Chinese to be pulled in diff erent directions in real yields may not be as dramatic notes in November, a demonetisation investor appetite for gold as a hedge. simultaneously by competing influences, given US inflation is also on an upward that eff ectively removed some 86% of Another potential positive for gold but what is notable for gold currently is trend. bank notes by value. is the usual suspect of geopolitical the apparent inability of the contradictory There also may be a US dollar eff ect, In an economy where most transactions risk, although if elections in France factors to gain momentum. with analysts at JP Morgan noting are still cash, the impact was to crimp and Germany follow the recent Dutch History and logic suggest that that it’s likely that the greenback has retail gold demand as liquidity dried up. vote, where anti-European populists when the United States starts a already seen the bulk of its rally in this But there are positive signs that India did less well than expected, it may not monetary tightening cycle, gold will tightening cycle. is recovering, with imports jumping to add much to gold demand from a risk underperform, since as a non-yielding “In the current cycle, the broad US 50 tonnes in February, up more than perspective. asset it loses out to instruments that dollar has so far appreciated by 22%, 82% from the same month in 2016, Overall, it appears there is no clear will enjoy higher yields from the rising and we see the dollar rallying another according to data provided by GFMS. price trend for gold, and looking at a rates. 2% higher into midyear before retracing While some of this was likely due cross-section of forecasts from analysts The Federal Reserve lifted interest rates to current levels by the first quarter History and logic suggest that when the United States starts a to what GFMS called the release of shows hat those who are bearish are on March 15 for the second time in three of 2018,” JP Morgan said in a note monetary tightening cycle, gold will underperform, since as a pent-up demand, it’s also possible that only mildly so, while those bullish are months, with expectations that it will published March 15. non-yielding asset it loses out to instruments that will enjoy higher stronger economic conditions will lift also expecting modest gains at best. raise at least twice more this year and “In short, the lion’s share of this cycle’s yields from the rising rates Indian demand for jewellery, the main While the ebb and flow of news events perhaps three times in 2018. US dollar appreciation could potentially driver of that market. will drive daily price movements in But spot gold didn’t drop when the be behind us,” the note said. signalling is that while US interest rate world’s top consumer of the precious While India is looking more positive gold, it would appear that a driver to Fed pulled the rates lever, gaining 1.7% Rising US inflation and a peak in US rises are still a bit of a headwind, they metal. Indian gold demand was for gold, it’s worth noting that China, move the price away from the $1,100 to the day of the increase, and closing dollar strength may mean that the may not be enough to off set some pummelled in 2016, falling 21% to 675.5 the world’s largest buyer, is less $1,300 an ounce range is lacking. at $1,233.15 an ounce on Monday, up traditional impact of a US monetary compelling tailwinds. tonnes from 857.2 tonnes the prior year, constructive, with soft jewellery almost 3% since the day before the Fed tightening cycle may be less than usual. The main boost to gold prices in 2017 the biggest yearly decline in volume demand and the lack of a clear price „Clyde Russell is a columnist for Reuters. move and 9.9% since the recent low What the gold market is currently may well come from India, formerly the terms recorded by the World Gold trend deterring investment appetite. The views expressed are his own. Gulf Times Wednesday, March 22, 2017 9 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 7.99 -0.50 2,923,636 Boubyan Intl Industries Hold 23.50 -2.08 902,359 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 18.70 -4.54 1,333,574 Gulf Investment House Ksc 46.00 0.00 2,882,869 Construction Materials Ind 0.03 0.00 35,400 Amana Cooperative Insurance 18.81 -3.34 664,045 Boubyan Bank K.S.C 425.00 1.19 243,768 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 14.40 -0.35 115,436 Ahli United Bank B.S.C 248.00 -0.80 2,196,400 Bankmuscat Saog 0.39 -1.52 182,050 Saudi Printing & Packaging C 17.02 -2.01 996,154 Osos Holding Group Co 162.00 1.25 903,265 Bank Sohar 0.15 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 86.00 0.00 20 Bank Nizwa 0.09 0.00 1,284,898 Saudi Paper Manufacturing Co 9.84 -0.61 946,615 Qurain Petrochemical Industr 350.00 0.00 1,163,064 Bank Dhofar Saog 0.25 0.00 366,962 Alinma Bank 14.67 0.41 23,414,963 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 4.05 0.00 - Almarai Co 68.99 -0.73 499,262 Ekttitab Holding Co Sak 42.00 0.00 123,350 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 27.60 0.36 237,368 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.29 0.00 - QATAR United International Transpo 27.02 0.33 319,701 Real Estate Trade Centers Co 43.50 1.16 989,200 Al-Hassan Engineering Co 0.06 14.58 178,771 Hsbc Amanah Saudi 20 Etf 27.70 0.00 - Acico Industries Co Kscc 300.00 0.00 140 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 17.21 -1.54 391,389 Kipco Asset Management Co 88.00 0.00 8,000 Al-Anwar Ceramic Tiles Co 0.16 0.00 263,292 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 1,220.00 -1.61 32,520 Al Suwadi Power 0.18 0.00 33,510 Zad Holding Co 85.20 0.00 1,495 Saudi United Cooperative Ins 26.46 -1.05 410,408 Alimtiaz Investment Co Kscc 190.00 -1.04 7,510,689 Al Shurooq Inv Ser 1.04 0.00 - Widam Food Co 64.20 -0.62 21,065 Bank Al-Jazira 15.11 0.33 2,558,743 Ras Al Khaimah White Cement 102.00 2.00 14,870 Al Sharqiya Invest Holding 0.12 0.00 75,334 Vodafone Qatar 9.06 0.33 1,914,487 Al Rajhi Bank 63.05 -0.97 2,401,691 Kuwait Reinsurance Co Ksc 192.00 0.00 2,000 Al Maha Petroleum Products M 1.46 -7.03 10,800 United Development Co 19.60 0.31 251,546 Samba Financial Group 21.05 -0.19 317,514 Kuwait & Gulf Link Transport 69.00 1.47 1,322,322 Al Maha Ceramics Co Saoc 0.47 0.00 - Salam International Investme 10.58 0.47 67,338 United Electronics Co 37.80 9.76 1,210,030 Human Soft Holding Co Ksc 3,100.00 2.65 120,210 Al Madina Takaful Co Saoc 0.10 0.00 472,748 Qatar & Oman Investment Co 9.80 -1.01 18,376 Allied Cooperative Insurance 15.06 -2.78 417,293 Automated Systems Co Kscc 300.00 9.09 100 Al Madina Investment Co 0.07 0.00 574,152 Qatar Navigation 77.00 0.00 52,720 Malath Cooperative & Reinsur 8.55 -0.58 830,914 Metal & Recycling Co 72.00 -5.26 10,100 Al Kamil Power Co 0.31 0.00 1,600 Qatar National Cement Co 81.00 0.12 7,273 Alinma Tokio Marine 17.25 -1.54 309,759 Gulf Franchising Holding Co 54.00 -1.82 160,000 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 147.00 0.07 176,259 Arabian Shield Cooperative 60.05 -0.32 133,849 Al-Enma’a Real Estate Co 44.00 -1.12 4,484,294 Al Jazeera Steel Products Co 0.22 -4.35 1,138,337 Qatar Islamic Insurance 68.00 0.00 - Savola 41.21 6.21 1,374,903 National Mobile Telecommuni 1,180.00 0.00 10,434 Al Jazeera Services 0.19 0.00 229,993 Qatar Industrial Manufactur 46.40 8.67 13,204 Wafrah For Industry And Deve 23.09 -0.86 347,945 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 1.43 129,600 Qatar International Islamic 68.10 -0.44 1,147,818 Fitaihi Holding Group 12.60 0.72 653,256 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 64.80 0.15 123,999 Tourism Enterprise Co/ Shams 31.57 -1.37 317,019 Al Salam Group Holding Co 53.00 -1.85 1,010,000 Al Batinah Power 0.18 -0.55 307,651 Qatar Islamic Bank 102.90 0.88 61,232 Sahara Petrochemical Co 14.80 -1.14 1,591,992 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 21.60 0.33 441,032 Herfy Food Services Co 78.94 -0.67 84,179 Al Aman Investment Company 53.00 0.00 264,865 Al Batinah Dev & Inv 0.09 0.00 51,600 Qatar General Insurance & Re 44.50 0.00 - Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.20 0.51 392,495 Qatar German Co For Medical 9.62 0.21 11,867 Manazel Holding 51.00 2.00 33,436,832 Ahli Bank 0.20 0.00 470,535 Qatar Fuel Qsc 136.30 -0.07 19,225 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.74 0.00 - Qatar First Bank 8.60 -0.46 561,593 KUWAIT Tijara And Real Estate Inves 62.00 0.00 61,980 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 220.90 1.56 53,676 Kuwait Building Materials 102.00 6.25 1,000 A’saff a Foods Saog 0.66 0.00 - Qatar Cinema & Film Distrib 29.45 9.89 308 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 590.00 1.72 246,387 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 71.00 0.00 260,748 Commercial Real Estate Co 81.00 -3.57 954,220 Ooredoo Qsc 105.30 2.33 437,792 Securities Group Co 99.00 0.00 1,229 Future Communications Co 0.00 0.00 - National Leasing 18.04 3.44 716,634 Sultan Center Food Products 67.00 1.52 765,060 National International Co 72.00 -1.37 1,775,650 Mazaya Qatar Real Estate Dev 13.80 3.53 263,096 Kuwait Foundry Co Sak 315.00 3.28 11,075 Taameer Real Estate Invest C 34.00 -2.86 1,926,750 UAE Mesaieed Petrochemical Holdi 14.70 0.00 117,053 Kuwait Financial Centre Sak 106.00 1.92 11,968 Gulf Cement Co 88.00 0.00 1,200,000 Al Meera Consumer Goods Co 168.80 0.18 8,151 Ajial Real Estate Entmt 176.00 0.00 19,995 Heavy Engineering And Ship B 214.00 1.90 103,736 Company Name Lt Price % Chg Volume Medicare Group 101.50 -0.78 99,904 Gulf Glass Manuf Co -Kscc 325.00 0.00 25,302 Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 83.00 0.12 9,332 Kuwait Finance & Investment 42.00 -3.45 15,816 National Real Estate Co 106.00 0.00 1,632,307 Waha Capital Pjsc 2.23 0.90 908,873 Masraf Al Rayan 42.60 2.40 1,430,527 National Industries Co Ksc 200.00 -0.99 10 Al Safat Energy Holding Comp 51.00 -1.92 2,107,176 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 14.40 -0.28 19,172 Kuwait Real Estate Holding C 40.00 -5.88 1,017,411 Kuwait National Cinema Co 1,580.00 0.00 1,010 United Arab Bank Pjsc 1.91 0.00 - Industries Qatar 114.00 -0.35 335,282 Securities House/The 53.00 0.00 6,012,050 Danah Alsafat Foodstuff Co 100.00 1.01 2,757,177 Union National Bank/Abu Dhab 4.34 2.12 1,387,663 Islamic Holding Group 64.80 1.09 22,542 Boubyan Petrochemicals Co 590.00 1.72 260,035 Independent Petroleum Group 410.00 -3.53 34,909 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 52.00 1.17 140,778 Al Ahli Bank Of Kuwait 305.00 0.00 5,793 Kuwait Real Estate Co Ksc 77.00 2.67 34,022,293 Union Cement Co 1.30 0.00 - Gulf International Services 28.10 1.81 410,095 Ahli United Bank (Almutahed) 455.00 -2.15 423,475 Salhia Real Estate Co Ksc 375.00 1.35 858 Umm Al Qaiwain Cement Indust 0.95 0.00 - Ezdan Holding Group 15.51 0.19 1,375,326 National Bank Of Kuwait 760.00 1.33 4,561,514 Gulf Cable & Electrical Ind 495.00 -1.00 49,159 Sharjah Islamic Bank 1.47 -3.92 225,381 Doha Insurance Co 17.01 4.36 2,209 Commercial Bank Of Kuwait 465.00 0.00 4,536 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 31.40 0.00 636,475 Kuwait International Bank 236.00 0.85 1,278,777 Kuwait Finance House 610.00 -1.61 3,761,931 Sharjah Group 1.50 0.00 - Dlala Holding 23.59 0.38 446,055 Gulf Bank 248.00 0.81 1,792,008 Gulf North Africa Holding Co 42.50 0.00 531,043 Sharjah Cement & Indus Devel 1.06 0.00 60,000 Commercial Bank Qsc 33.65 3.86 401,700 Al-Massaleh Real Estate Co 50.00 0.00 906 Hilal Cement Co 206.00 0.00 17,050 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 35.10 1.01 1,239,257 Al Arabiya Real Estate Co 43.00 0.00 1,049,020 Osoul Investment Kscc 69.00 0.00 10,700 Ras Al Khaimah White Cement 1.20 0.00 - Al Khaleej Takaful Group 19.30 -0.52 1,000 Kuwait Remal Real Estate Co 84.00 2.44 23,322,938 Gulf Insurance Group Ksc 550.00 0.00 17 Ras Al Khaimah Ceramics 2.28 -0.87 762,916 Aamal Co 14.57 1.89 221,906 Alkout Industrial Projects C 700.00 0.00 5,000 Kuwait Food Co (Americana) 2,500.00 0.00 2,467 Ras Al Khaimah Cement Co Psc 0.82 0.00 - A’ayan Real Estate Co Sak 93.00 -3.13 571,893 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.22 0.00 - Investors Holding Group Co.K 29.00 -1.69 6,217,749 Aayan Leasing & Investment 53.00 6.00 19,900,237 Rak Properties 0.73 0.00 6,095,217 Al-Mazaya Holding Co 134.00 1.52 1,537,638 Alrai Media Group Co Ksc 178.00 2.30 274,050 Ooredoo Qsc 94.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - National Investments Co 118.00 0.00 824,140 Oman & Emirates Inv(Emir)50% 0.95 0.00 - Gulf Petroleum Investment 51.00 0.00 11,705,631 Commercial Facilities Co 182.00 1.11 100 Nbad Oneshare Msci Uae Ucits 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 850.00 -1.16 131,006 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.66 1,405,000 City Group 600.00 0.00 - Afaq Educational Services Co 0.00 0.00 - National Marine Dredging Co 4.50 0.00 - United Wire Factories Compan 23.15 0.65 166,305 Inovest Co Bsc 112.00 -1.75 3,082,476 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.52 0.00 - Etihad Etisalat Co 21.71 -0.14 378,072 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 275.00 0.00 10 National Corp Tourism & Hote 3.00 0.00 - Dar Al Arkan Real Estate Dev 5.94 -0.17 7,408,761 Al-Deera Holding Co 41.00 5.13 3,715,964 National Bank Of Umm Al Qaiw 2.90 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 385.00 0.00 10 National Bank Of Ras Al-Khai 4.62 0.00 - Rabigh Refining And Petroche 12.64 -0.86 1,536,884 Mena Real Estate Co 32.00 0.00 2,090,693 National Bank Of Fujairah 3.62 0.00 - Banque Saudi Fransi 24.70 0.00 146,248 National Slaughter House 55.00 0.00 20,000 National Bank Of Abu Dhabi 10.50 1.94 2,759,111 Saudi Enaya Cooperative Insu 16.33 -4.17 499,413 Amar Finance & Leasing Co 47.50 5.56 10,000 OMAN Methaq Takaful Insurance 0.82 1.23 49,892 Manazel Real Estate Pjsc 0.55 0.00 6,872,999 Mediterranean & Gulf Insuran 24.43 0.70 1,678,634 United Projects For Aviation 790.00 -5.95 3,700 Company Name Lt Price % Chg Volume Saudi British Bank 21.00 0.29 860,090 National Consumer Holding Co 0.00 0.00 - Invest Bank 2.38 14.98 1,044,852 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 83.00 -5.68 3,527,623 Voltamp Energy Saog 0.56 -0.71 10,911 Intl Fish Farming Co Pjsc 2.01 5.24 3,440,826 Red Sea International Co 24.48 -1.13 194,697 Jeeran Holdings 57.00 0.00 20,000 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.83 0.00 - Takween Advanced Industries 12.24 0.08 1,243,883 Equipment Holding Co K.S.C.C 59.00 0.00 2,372,156 United Power Co Saog 3.40 0.00 - Gulf Pharmaceutical Ind Psc 2.34 0.00 52,600 Sabb Takaful 28.17 -0.84 274,769 Nafais Holding 240.00 0.00 40,480 United Finance Co 0.15 0.00 - Gulf Medical Projects 2.56 -8.24 8,000 Saudi Arabian Fertilizer Co 67.77 -0.47 96,784 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.07 3.88 224,255 National Gypsum 13.51 -0.88 318,188 Arkan Al Kuwait Real Estate 85.00 -1.16 357,232 Takaful Oman 0.17 2.38 62,200 Fujairah Cement Industries 0.99 0.00 - Saudi Ceramic Co 28.11 -1.95 346,311 Gfh Financial Group Bsc 228.00 -0.87 450,800 Taageer Finance 0.13 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 33.89 -1.63 208,282 Energy House Holding Co Kscp 39.50 1.28 337,027 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.40 0.00 - Saudi Pharmaceutical Industr 35.95 0.42 42,776 Kuwait Slaughter House Co 188.00 5.62 500 Sohar Power Co 0.22 0.00 - First Gulf Bank 13.00 1.56 4,031,874 Thimar 36.61 -0.49 406,494 Kuwait Co For Process Plant 160.00 3.90 11,560 Sohar Poultry 0.21 0.00 - Finance House 1.58 -9.71 71,419 National Industrialization C 17.29 3.53 2,327,441 Al Maidan Dental Clinic Co K 1,220.00 0.00 10 Smn Power Holding Saog 0.70 0.00 - Eshraq Properties Co Pjsc 1.15 0.00 9,683,130 Saudi Transport And Investme 54.99 -0.70 109,274 National Ranges Company 30.50 -3.17 1,447,900 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 18.15 1.40 886,087 Saudi Electricity Co 22.83 -1.42 1,705,094 Al-Themar Real International 91.00 0.00 84,809 Shell Oman Marketing 2.00 -0.25 25,000 Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 34.01 -0.41 221,394 Al-Ahleia Insurance Co Sakp 495.00 0.00 153 Sharqiyah Desalination Co Sa 4.50 0.00 - Emirates Driving Company 9.25 8.82 6,000 Arriyadh Development Company 21.16 -0.05 161,075 Wethaq Takaful Insurance Co 59.00 0.00 3,500 Sembcorp Salalah Power & Wat 0.24 -0.82 27,300,300 Dana Gas 0.44 0.00 3,785,449 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 82.00 0.00 757,488 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.90 5.56 526,000 Saudi Research And Marketing 29.03 -3.10 537,233 Aqar Real Estate Investments 83.00 0.00 17,800 Salalah Mills Co 1.40 0.00 - Bank Of Sharjah 1.38 0.00 - Aldrees Petroleum And Transp 27.44 0.51 202,622 Hayat Communications 94.00 -5.05 1,183,597 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.72 0.00 - Saudi Vitrified Clay Pipe Co 55.82 2.78 277,438 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.71 -2.74 2,331,914 Jarir Marketing Co 127.62 -0.68 55,525 Soor Fuel Marketing Co Ksc 130.00 3.17 486,975 Renaissance Services Saog 0.23 0.00 - Alkhaleej Investment 1.32 0.00 - Arab National Bank 19.97 0.86 127,306 Alargan International Real 192.00 5.49 118,028 Raysut Cement Co 1.39 0.00 - Aldar Properties Pjsc 2.43 1.25 9,328,166 Yanbu National Petrochemical 56.25 -1.25 217,889 Burgan Co For Well Drilling 89.00 -4.30 6,500 Port Service Corporation 0.30 1.02 410,942 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 37.62 -0.48 369,960 Kuwait Resorts Co Kscc 84.00 -2.33 40,987 Phoenix Power Co Saoc 0.14 -0.70 35,900 Al Khazna Insurance Co 0.41 0.00 - Middle East Specialized Cabl 7.89 -0.13 517,299 Oula Fuel Marketing Co 134.00 6.35 2,635,892 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 18.80 0.00 385,708 Palms Agro Production Co 97.00 0.00 12,716 Ooredoo 0.55 -6.80 213,523 Al Dhafra Insurance Co. P.S. 3.95 0.00 - Al Sagr Co-Operative Insuran 37.67 -2.03 476,221 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.53 0.00 50,822 Al Buhaira National Insuranc 2.16 0.00 - Trade Union Cooperative Insu 17.65 -2.05 295,241 Mubarrad Transport Co 81.00 1.25 3,415,670 Oman United Insurance Co 0.42 0.97 323,542 Al Ain Ahlia Ins. Co. 55.00 0.00 - Arabia Insurance Cooperative 12.83 -2.28 731,765 Al Mowasat Health Care Co 375.00 0.00 2,750 Oman Textile Holding Co Saog 0.76 0.00 - Agthia Group Pjsc 6.40 0.00 51,650 Saudi Chemical Company 33.53 -0.12 121,340 Shuaiba Industrial Co 400.00 1.27 24,500 Oman Telecommunications Co 1.40 1.82 496,013 Abu Dhabi Ship Building Co 2.70 0.00 - Fawaz Abdulaziz Alhokair & C 30.92 -1.15 338,304 Hits Telecom Holding 51.00 0.00 2,840,949 Oman Refreshment Co 2.16 0.00 - Abu Dhabi Natl Co For Buildi 0.57 5.56 74,000 Bupa Arabia For Cooperative 120.52 -0.37 92,545 First Takaful Insurance Co 62.00 3.33 146,267 Oman Packaging 0.30 0.00 - Abu Dhabi National Takaful C 5.00 0.00 - Wafa Insurance 17.77 -9.66 6,609,718 Kuwaiti Syrian Holding Co 42.00 -2.33 2,751,727 Oman Orix Leasing Co. 0.14 0.00 - Abu Dhabi National Insurance 2.80 0.00 - Jabal Omar Development Co 67.60 -1.31 314,771 National Cleaning Company 54.00 1.89 593,967 Oman Oil Marketing Company 1.85 0.00 - Abu Dhabi National Hotels 2.94 0.00 - Saudi Basic Industries Corp 96.32 -0.16 1,959,570 Eyas For High & Technical Ed 335.00 0.00 30,087 Oman National Engineering An 0.15 0.00 - Abu Dhabi National Energy Co 0.45 0.00 302,643 Saudi Kayan Petrochemical Co 7.75 0.65 2,144,983 United Real Estate Company 95.00 1.06 172,115 Oman Investment & Finance 0.23 0.43 181,247 Abu Dhabi Islamic Bank 3.91 -0.26 2,731,028 Etihad Atheeb Telecommunicat 4.16 0.24 1,562,632 Agility 620.00 -1.59 556,280 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 123.83 1.93 188,415 Kuwait & Middle East Fin Inv 32.50 -2.99 120,000 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 20.20 -0.20 149,621 Fujairah Cement Industries 90.00 0.00 150,720 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 12.44 -2.74 247,923 Livestock Transport & Tradng 222.00 0.00 10,461 Oman Flour Mills 0.86 0.00 - BAHRAIN Gulf General Cooperative Ins 17.47 -3.16 282,477 International Resorts Co 39.50 6.76 5,509,238 Oman Fisheries Co 0.18 2.84 1,679,167 Basic Chemical Industries 23.94 0.38 108,146 National Industries Grp Hold 136.00 1.49 430,264 Oman Fiber Optics 4.57 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.93 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 17.07 448,415 64.00 95,002 Zain Bahrain Bscc 0.09 0.00 236,983 Buruj Cooperative Insurance -3.70 Warba Insurance Co 0.00 Oman Education & Training In 0.13 0.00 - 30.19 947,776 98.00 7,998 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 0.63 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 141.25 11,096 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -2.10 First Dubai Real Estate Deve -1.54 Oman Chlorine 0.49 0.00 - 62.87 49,843 64.00 602,885 United Gulf Bank 0.35 -6.91 25,000 Maadaniyah 1.15 Al Arabi Group Holding Co -2.06 Oman Ceramic Company 0.42 0.00 - 22.84 418,497 95.00 1,354,380 Trafco Group Bsc 0.23 0.00 16,322 Yamama Cement Co 0.11 Kuwait Hotels Sak 0.00 Oman Cement Co 0.50 0.00 114,044 18.17 91,709 250.00 14,205 Takaful International Co 0.00 0.00 - Jazan Development Co -1.48 Mobile Telecommunications Co 1.09 Oman Cables Industry 1.65 0.00 112,500 13.30 595,823 465.00 3,305,817 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.38 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 28.91 28,491 0.00 - Seef Properties 0.21 0.00 59,644 Alujain Corporation (Alco) -1.50 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.13 -2.27 30,178 19.70 470,080 450.00 19 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.17 Al Mudon Intl Real Estate Co -2.06 Natl Aluminium Products 0.18 0.57 37,000 11.78 1,084,031 47.50 9,748,558 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -5.94 Kuwait Cement Co Ksc 0.00 National Securities 0.05 0.00 - 14.25 1,445,202 485.00 59,113 National Bank Of Bahrain Bsc 0.70 0.00 15,641 Qassim Cement/The -1.97 Sharjah Cement & Indus Devel 2.33 National Real Estate Develop 5.00 0.00 - 53.18 35,204 88.00 23,000 Nass Corp Bsc 0.12 0.00 265,000 Saudi Advanced Industries -1.32 Kuwait Portland Cement Co -1.82 National Pharmaceutical 0.11 0.00 - 13.50 1,526,363 1,080.00 100,500 Khaleeji Commercial Bank 0.12 1.74 277,244 Kingdom Holding Co -2.18 Educational Holding Group 5.37 National Mineral Water 0.05 0.00 - 10.77 278,172 255.00 1 Ithmaar Holding Bsc 0.17 0.00 121,000 Saudi Arabian Amiantit Co 0.00 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 6.85 214,696 0.00 - Investcorp Bank -$Us 8.50 0.00 3,926 Al Jouf Agriculture Developm -0.26 Asiya Capital Investments Co -1.39 National Gas Co 0.51 0.00 - 31.08 171,999 35.50 352,540 Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development -0.08 Kuwait Investment Co 6.25 National Finance Co 0.16 0.00 - 11.93 2,079,831 102.00 2,032,749 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.54 National Detergent Co Saog 0.70 0.00 - 69.75 - 330.00 1,421,535 Gulf Hotel Group B.S.C 0.59 0.00 3,400 Riyad Bank 1.53 Kuwait Projects Co Holdings 0.00 National Biscuit Industries 3.75 0.00 - 10.60 1,318,746 485.00 263,523 Gfh Financial Group Bsc 0.73 0.00 45,978 The National Agriculture Dev -0.62 Al Madina For Finance And In 0.00 National Bank Of Oman Saog 0.25 0.00 1,357,101 24.19 396,388 54.00 665,548 Esterad Investment Co B.S.C. 0.14 0.00 33,961 Halwani Bros Co -0.85 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.09 0.00 - 51.51 108,822 290.00 8,264 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -1.59 Al Masaken Intl Real Estate 0.00 Muscat National Holding 1.72 0.00 20,000 16.07 302,226 78.00 8,500 Bmmi Bsc 0.78 -3.70 30,000 Eastern Province Cement Co -1.26 Intl Financial Advisors 5.75 Muscat Gases Company Saog 0.56 0.00 - 29.10 7,736 46.00 4,952,495 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -1.85 Muscat Finance 0.13 0.00 - 0.00 - 53.00 1,193,505 Bbk Bsc 0.40 0.51 1,778,283 Filing & Packing Materials M -0.23 Al Mal In -2.27 Majan Glass Company 0.19 0.00 - 34.27 115,655 vestment Company 21.50 4,857,870 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 0.00 Majan College 0.51 0.00 - 5.75 - Bayan Investment Co Kscc 48.00 597,130 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public 0.43 -1.00 Hsbc Bank Oman 0.13 -1.54 655,000 23.09 704,177 Egypt Kuwait Holding Co Sae 198.00 50,643 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 1.13 -1.03 Hotels Management Co Interna 1.25 0.00 - 13.47 31,795 Coast Investment Development 48.00 1,974,568 Bahrain Telecom Co 0.27 0.74 36,700 Astra Industrial Group -1.19 -3.70 Gulf Stone 0.12 0.00 - 15.78 279,752 Privatization Holding Compan 52.00 4,757,382 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co 0.61 0.00 Gulf Plastic Industries Co 0.00 0.00 - 14.94 878,760 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.42 0.00 24,442 Taiba Holding Co -1.03 0.00 Gulf Mushroom Company 0.31 0.00 - 40.48 17,266 Injazzat Real State Company 93.00 100,000 Bahrain Kuwait Insurance 0.55 0.00 2,844 Saudi Industrial Export Co -3.41 0.00 Gulf Investments Services 0.11 0.89 10,100 31.97 420,060 Kuwait Cable Vision Sak 22.50 101,176 Bahrain Islamic Bank 0.13 0.00 49,795 Saudi Real Estate Co 1.47 9.26 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 20.68 1,288,198 Sanam Real Estate Co Kscc 59.00 498,000 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -0.22 0.00 Gulf International Chemicals 0.29 -1.03 36,500 126.00 9,182 Ithmaar Holding Bsc 51.00 8,121,698 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.55 -1.64 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 35.90 322,582 Aviation Lease And Finance C 240.00 267,225 Bahrain Duty Free Complex 0.84 0.00 50,000 Methanol Chemicals Co 0.00 6.41 Global Fin Investment 0.17 0.00 - 6.90 2,013,794 Arzan Financial Group For Fi 41.50 1,730,145 Bahrain Commercial Facilitie 0.73 0.00 26,200 Ace Arabia Cooperative Insur -2.03 0.00 Galfar Engineering&Contract 0.08 0.00 202,086 46.89 74,345 Ajwan Gulf Real Estate Co 66.00 202,800 Bahrain Cinema Co 1.35 0.00 5,000 Mobile Telecommunications Co -1.04 -1.75 Galfar Engineering -Prefer 0.39 0.00 - 8.57 1,467,256 Kuwait Business Town Real Es 56.00 1,070,671 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -2.14 0.00 Financial Services Co. 0.17 0.00 - 20.59 458,433 Future Kid Entertainment And 124.00 10,000 Arab Insurance Group(Bsc)-$ 0.44 0.00 15,500 Axa Cooperative Insurance -3.29 0.00 Financial Corp/The 0.10 8.89 365,670 21.17 775,115 Specialities Group Holding C 91.00 211,000 Arab Banking Corp Bsc-$Us 0.37 0.00 224,370 Alsorayai Group 0.00 -4.84 Dhofar University 1.49 0.00 - 10.78 384,932 Abyaar Real Eastate Developm 29.50 91,106,425 Aluminium Bahrain Bsc 0.38 -1.04 112,881 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 19.39 - Dar Al Thuraya Real Estate C 150.00 20 Albaraka Banking Group 0.45 -1.63 195,348 Bank Albilad -0.67 0.00 Dhofar Poultry 0.18 0.00 - 17.82 233,611 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.10 0.98 100,000 Al-Hassan G.I. Shaker Co 3.13 0.00 Dhofar Intl Development 0.36 0.00 - 15.82 2,236,391 Kgl Logistics Company Kscc 74.00 2,813,214 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -0.28 0.00 Dhofar Insurance 0.21 0.00 - 28.25 504,390 Combined Group Contracting 495.00 132,656 Ahli United Bank B.S.C 0.80 -1.23 1,544,974 Abdullah Al Othaim Markets 104.69 0.42 11,853 Zima Holding Co Ksc 56.00 0.00 6,077,353 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 11.10 0.00 174,070 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 10 Wednesday, March 22, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 20,756.28 -149.58 Apple Inc 141.27 -0.13 16,514,696 S&P 500 Index 2,353.67 -19.80 Microsoft Corp 64.73 -0.31 9,522,622 Nasdaq Composite Index 5,841.78 -59.75 Exxon Mobil Corp 81.91 -0.11 4,746,628 S&P/Tsx Composite Index 15,347.81 -94.51 Johnson & Johnson 127.69 -0.30 2,723,744 Mexico Bolsa Index 48,702.07 +108.63 General Electric Co 29.52 -0.76 9,907,960 Brazil Bovespa Stock Idx 63,093.53 -1,790.74 Jpmorgan Chase & Co 88.61 -1.58 10,557,286 Ftse 100 Index 7,369.06 -60.75 Procter & Gamble Co/The 91.32 0.11 2,974,662 Cac 40 Index 4,996.29 -15.87 Wal-Mart Stores Inc 69.76 -0.32 3,217,059 Dax Index 11,961.69 -91.21 Verizon Communications Inc 50.31 0.14 7,070,693 Ibex 35 Tr 10,210.70 -3.30 Pfizer Inc 34.49 0.31 10,309,285 Nikkei 225 19,455.88 -65.71 Visa Inc-Class A Shares 88.27 -1.02 3,901,243 Japan Topix 1,563.42 -2.43 Chevron Corp 107.80 0.13 2,401,044 Hang Seng Index 24,593.12 +91.13 Coca-Cola Co/The 42.40 0.52 5,273,642 All Ordinaries Indx 5,819.49 -1.02 Intel Corp 35.13 -0.85 7,739,995 Nzx All Index 1,307.47 +5.38 Merck & Co. Inc. 64.12 0.02 3,841,933 Bse Sensex 30 Index 29,485.45 -33.29 Cisco Systems Inc 33.95 -0.96 7,775,195 Nse S&P Cnx Nifty Index 9,121.50 -5.35 Home Depot Inc 146.84 -0.65 1,916,672 Straits Times Index 3,158.57 -7.13 Intl Business Machines Corp 174.61 -0.62 1,571,296 Karachi All Share Index 33,092.14 +226.42 Walt Disney Co/The 111.96 -0.67 2,540,343 Jakarta Composite Index 5,543.09 +9.10 Unitedhealth Group Inc 167.90 -0.06 1,925,630 3M Co 192.04 -0.50 602,951 Mcdonald’s Corp 128.44 -0.26 1,659,133 Nike Inc -Cl B 58.12 -0.95 6,071,142 TOKYO United Technologies Corp 112.53 -0.86 1,088,827 Boeing Co/The 176.48 -1.62 1,141,315 Company Name Lt Price % Chg Goldman Sachs Group Inc 236.59 -2.29 2,210,767 Rakuten Inc 1,127.00 0.45 8,111,400 American Express Co 78.27 -0.73 2,588,051 Kyocera Corp 6,338.00 -0.67 1,095,300 Du Pont (E.I.) De Nemours 80.86 -0.79 1,071,822 Nissan Motor Co Ltd 1,138.00 0.53 10,165,900 Caterpillar Inc 93.08 -2.43 2,619,656 Hitachi Ltd 627.90 0.51 14,148,000 Travelers Cos Inc/The 121.67 -0.56 366,894 Takeda Pharmaceutical Co Ltd 5,315.00 0.04 1,484,800 Jfe Holdings Inc 1,990.00 -1.80 3,523,700 Ana Holdings Inc 351.50 -0.06 11,848,000 FTSE 100 Mitsubishi Electric Corp 1,688.50 0.09 3,385,100 Sumitomo Mitsui Financial Gr 4,266.00 -0.84 6,387,200 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,542.00 0.23 3,692,800 Traders work in front of the DAX board at the Frankfurt Stock Exchange. The DAX 30 closed 0.8% down at 11,962.13 points Fast Retailing Co Ltd 35,850.00 -0.53 395,100 yesterday. Wpp Plc 1,671.00 -0.59 3,638,106 Ms&Ad Insurance Group Holdin 3,869.00 -0.57 1,277,200 Worldpay Group Plc 292.40 0.45 2,803,870 Kubota Corp 1,769.00 -0.53 2,067,300 Wolseley Plc 5,065.00 -1.17 776,631 Seven & I Holdings Co Ltd 4,421.00 -0.09 1,472,900 Wm Morrison Supermarkets 236.00 -0.63 3,978,599 Inpex Corp 1,106.50 -0.49 3,327,100 Whitbread Plc 3,903.00 -0.33 292,128 Resona Holdings Inc 641.00 0.17 9,665,900 Vodafone Group Plc 209.70 -0.38 38,767,542 Asahi Kasei Corp 1,106.50 1.37 3,161,000 United Utilities Group Plc 1,009.00 0.50 835,317 Kirin Holdings Co Ltd 2,095.50 1.04 2,573,400 Unilever Plc 4,020.00 -1.17 2,177,107 European markets follow Marubeni Corp 721.10 -0.26 6,127,700 Tui Ag-Di 1,118.00 -1.84 531,983 Mitsubishi Ufj Financial Gro 745.70 -1.75 69,746,300 Travis Perkins Plc 1,510.00 1.62 855,130 Mitsubishi Chemical Holdings 882.70 1.75 9,741,000 Tesco Plc 189.40 0.21 18,512,300 Fanuc Corp 23,005.00 -0.30 837,900 Taylor Wimpey Plc 192.00 -0.78 9,269,280 Daito Trust Construct Co Ltd 15,785.00 1.64 555,500 Standard Life Plc 365.40 0.47 5,158,353 Otsuka Holdings Co Ltd 5,113.00 -1.71 1,675,300 Standard Chartered Plc 730.80 -0.20 4,894,624 Wall Street to close lower Oriental Land Co Ltd 6,321.00 -1.10 765,900 St James’s Place Plc 1,062.00 -1.39 513,371 Sekisui House Ltd 1,909.00 -0.08 2,828,300 Sse Plc 1,504.00 -0.20 1,786,080 Secom Co Ltd 8,209.00 -0.82 556,100 support to scrap Obamaare, “that will higher on expectations of rising inter- Smith & Nephew Plc 1,240.00 -0.56 3,353,145 AFP Tokio Marine Holdings Inc 5,062.00 -0.98 1,685,100 Sky Plc 987.00 -0.05 4,489,275 London suggest relations with Congress are est rates. Aeon Co Ltd 1,636.50 1.05 1,743,000 Shire Plc 4,693.00 -1.39 1,055,750 even more complicated than antici- The stronger pound weighs on Mitsui & Co Ltd 1,679.00 0.45 5,505,500 Severn Trent Plc 2,408.00 0.63 363,782 pated,” said Daniel Larrouturou of the FTSE-listed multinational companies Kao Corp 6,049.00 -0.38 1,240,300 Schroders Plc 3,128.00 -0.89 201,742 uropean stock markets turned independent asset manager Diamant that earn income abroad. Dai-Ichi Life Holdings Inc 2,191.00 -1.79 5,700,200 Sainsbury (J) Plc 272.60 -0.62 2,896,193 Mazda Motor Corp 1,622.50 0.25 5,515,100 lower yesterday, dragged down Bleu Gestion. On Monday, stocks had been Sage Group Plc/The 629.50 -1.72 1,613,251 Komatsu Ltd 3,009.00 0.17 4,129,600 by losses on Wall Street where “That creates political uncertainty... weighed down by trade fears after G20 Sabmiller Plc 0.00 0.00 - E West Japan Railway Co 7,427.00 -1.04 764,500 investors fretted about US Presi- which is hitting Wall Street and drag- fi nance chiefs failed to renew their Rsa Insurance Group Plc 596.00 0.42 1,417,091 Murata Manufacturing Co Ltd 15,930.00 -0.59 628,700 Royal Mail Plc 414.70 0.05 2,302,744 dent Donald Trump’s ability to push ging the European markets down with anti-protectionist pledge at a weekend Kansai Electric Power Co Inc 1,230.50 -0.08 2,510,100 Royal Dutch Shell Plc-B Shs 2,202.50 -0.63 2,055,224 through his promised reforms, dealers it,” Larrouturou said. gathering, fanning concerns over US Denso Corp 5,218.00 -0.80 1,276,200 Royal Dutch Shell Plc-A Shs 2,103.00 -0.61 3,911,001 said. On this side of the Atlantic, stock President Donald Trump’s “America Sompo Holdings Inc 4,358.00 -1.45 846,300 Royal Bank Of Scotland Group 237.50 -1.00 8,923,285 Daiwa House Industry Co Ltd 3,268.00 -0.21 1,544,100 London’s FTSE 100 closed 0.7% prices in London were hit after offi cial First” push. Rolls-Royce Holdings Plc 776.50 0.19 3,459,870 Jx Holdings Inc 538.80 -0.68 16,354,100 down at 7,378.34 points, Frankfurt’s data showed British 12-month infl ation However, Asian markets mostly Rio Tinto Plc 3,312.50 -4.54 2,626,546 Nippon Steel & Sumitomo Meta 2,653.50 -0.71 2,935,000 DAX 30 0.8% down at 11,962.13 points, soared to 2.3% in February — reaching fi zzed higher yesterday as investors Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 4,781.00 -0.50 1,340,900 Relx Plc 1,535.00 -0.32 2,426,451 Paris’ CAC 40 0.2% down at 5,002.42 the highest level since 2013. snapped up bargain shares. Nippon Telegraph & Telephone 4,946.00 0.73 3,500,000 Reckitt Benckiser Group Plc 7,438.00 -0.61 678,939 points and the EURO STOXX 50 0.3% Higher infl ation translates into ris- Hong Kong stocks won 0.4% — Ajinomoto Co Inc 2,271.00 -0.48 1,064,700 Randgold Resources Ltd 7,195.00 0.56 461,483 down at 3,426.13 points yesterday. ing company costs and weaker con- marking four days of gains that have Mitsui Fudosan Co Ltd 2,475.50 -1.71 4,859,000 Prudential Plc 1,752.50 -0.90 3,106,755 The markets have reversed” because sumer expenditure. pushed the Hang Seng Index to its Ono Pharmaceutical Co Ltd 2,400.00 -0.46 1,870,100 Provident Financial Plc 2,926.00 -0.14 162,560 Daikin Industries Ltd 11,095.00 -1.07 714,200 of growing concern about possible op- “Rising prices are bad for most highest level since July 2015. Persimmon Plc 2,084.00 -1.74 593,369 Bank Of Yokohama Ltd/The 0.00 0.00 - position to Trump’s reforms within Re- stocks as they can push up input costs, Tokyo, however, lost 0.3% as traders Pearson Plc 654.50 0.46 1,588,435 Toray Industries Inc 1,001.00 0.60 4,771,000 publican party, said Gregori Volokhine which makes everything more expen- returned from a long weekend to fi nd Paddy Power Betfair Plc 8,675.00 -0.69 34,536 Astellas Pharma Inc 1,517.00 1.61 8,231,500 Old Mutual Plc 224.80 -0.04 2,490,832 of Meeschaert Financial Services. sive for a corporate,” said City Index the yen had strengthened signifi cantly Bridgestone Corp 4,613.00 0.00 1,757,500 Next Plc 3,850.00 -0.10 427,900 In particular, Trump’s plans to dis- analyst Kathleen Brooks. against the dollar. Sony Corp 3,627.00 -0.33 3,805,300 National Grid Plc 1,000.00 0.95 4,793,834 mantle the “Obamacare” health care “However, consumer stocks — food The euro rose against the dollar on Hoya Corp 5,481.00 0.90 1,191,900 Mondi Plc 1,925.00 -0.93 408,675 law are under scrutiny as Republicans producers, clothing retailers, res- relief that centrist Emmanuel Macron Sumitomo Mitsui Trust Holdin 3,999.00 -1.72 2,396,700 Merlin Entertainment 483.30 -0.17 1,087,605 Japan Tobacco Inc 3,856.00 2.23 5,387,100 are deeply divided as to what the re- taurants — are particularly badly hit came out on top in the fi rst French Mediclinic International Plc 760.50 -0.91 403,486 Osaka Gas Co Ltd 434.10 -0.05 4,273,000 placement health care plan should look as rising prices can erode consumer presidential debate Monday, seeing off Marks & Spencer Group Plc 329.30 0.43 3,181,890 Sumitomo Electric Industries 1,887.50 -1.15 2,632,000 like. spending.” his closest rival, the far-right, anti-EU London Stock Exchange Group 3,081.00 -0.55 192,239 Daiwa Securities Group Inc 741.80 -1.84 10,641,000 Lloyds Banking Group Plc 68.35 -1.37 127,342,108 If Trump fails to garner suffi cient The news also sent sterling fl ying candidate Marine Le Pen. Softbank Group Corp 8,274.00 -1.87 6,583,400 Legal & General Group Plc 250.80 0.04 6,440,107 Mizuho Financial Group Inc 211.00 -0.80 133,476,700 Land Securities Group Plc 1,048.00 0.19 1,366,805 Nomura Holdings Inc 745.80 -1.45 11,918,300 Kingfisher Plc 344.50 -0.83 9,810,266 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,602.50 -0.23 1,565,000 Johnson Matthey Plc 3,005.00 -0.43 365,119 Fuji Heavy Industries Ltd 4,312.00 -0.85 3,033,700 Itv Plc 209.40 0.14 10,711,364 Ntt Docomo Inc 2,700.50 -1.01 4,117,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 280.30 0.04 835,676 Sumitomo Realty & Developmen 3,015.00 -0.43 1,860,000 Intl Consolidated Airline-Di 560.50 -0.80 5,756,815 Aluminum Corp Of China Ltd-H 3.92 -0.51 19,555,518 Hong Kong & China Gas 15.14 -0.26 11,437,787 Sumitomo Metal Mining Co Ltd 1,603.50 0.63 2,560,000 Intertek Group Plc 3,870.00 -1.20 561,849 Bank Of East Asia Ltd 32.05 0.00 1,062,825 Hong Kong Exchanges & Clear 199.70 -0.35 3,655,748 Orix Corp 1,717.00 -1.18 7,213,300 Intercontinental Hotels Grou 3,858.00 -0.87 182,486 Bank Of China Ltd-H 3.99 0.50 357,288,065 Hsbc Holdings Plc 63.70 0.31 16,065,877 Asahi Group Holdings Ltd 4,200.00 1.50 1,703,000 Inmarsat Plc 787.50 -0.57 1,500,584 Bank Of Communications Co-H 6.19 -0.16 26,317,338 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 45,190.00 0.49 222,200 Informa Plc 640.50 0.16 1,017,654 Belle International Holdings 5.24 0.00 22,593,467 Ind & Comm Bk Of China-H 5.22 0.58 356,553,293 Nidec Corp 10,735.00 -0.32 598,700 Imperial Brands Plc 3,879.50 -0.22 1,165,567 Boc Hong Kong Holdings Ltd 32.15 0.00 7,675,520 Li & Fung Ltd 3.81 -0.52 26,654,576 Isuzu Motors Ltd 1,573.50 -1.19 2,972,800 Hsbc Holdings Plc 654.70 -0.67 18,721,033 Cathay Pacific Airways 11.36 1.43 9,170,857 Mtr Corp 43.30 0.81 4,067,864 Unicharm Corp 2,661.50 -0.62 1,162,700 Hargreaves Lansdown Plc 1,301.00 -1.51 336,338 Ck Hutchison Holdings Ltd 96.95 -0.05 6,646,876 New World Development 9.97 0.91 13,552,177 Shin-Etsu Chemical Co Ltd 9,698.00 0.36 1,024,800 Hammerson Plc 583.00 -0.17 1,092,753 China Coal Energy Co-H 4.19 0.24 11,275,817 Petrochina Co Ltd-H 5.90 0.51 72,713,412 Smc Corp 33,270.00 0.51 217,600 Glencore Plc 332.50 -3.54 40,023,647 China Construction Bank-H 6.50 0.78 368,330,353 Ping An Insurance Group Co-H 44.20 1.84 66,958,098 Mitsubishi Corp 2,491.00 0.77 3,764,100 Glaxosmithkline Plc 1,677.00 -0.68 3,677,746 China Life Insurance Co-H 25.20 0.00 24,189,966 Power Assets Holdings Ltd 68.10 -0.22 4,940,824 Nintendo Co Ltd 26,265.00 2.68 4,210,600 Gkn Plc 370.20 -0.99 2,918,890 China Merchants Port Holding 22.00 0.69 3,827,240 Sino Land Co 13.94 2.65 10,612,261 Eisai Co Ltd 6,059.00 -0.39 527,500 Fresnillo Plc 1,543.00 0.98 792,790 China Mobile Ltd 90.35 0.00 22,349,484 Sun Hung Kai Properties 115.10 0.26 2,944,615 Sumitomo Corp 1,510.50 -0.72 4,767,300 Experian Plc 1,625.00 -0.98 671,451 China Overseas Land & Invest 24.80 1.22 21,903,441 Swire Pacific Ltd - Cl A 77.75 -0.26 1,237,822 Canon Inc 3,535.00 -0.08 3,760,500 Easyjet Plc 1,010.00 -0.49 1,010,065 China Petroleum & Chemical-H 6.11 1.66 104,754,248 Tencent Holdings Ltd 228.80 0.26 28,352,992 Japan Airlines Co Ltd 3,701.00 -0.51 1,517,000 Dixons Carphone Plc 310.00 0.13 3,390,437 China Resources Beer Holdin 18.66 5.07 8,516,891 Wharf Holdings Ltd 68.50 0.00 2,692,375 Direct Line Insurance Group 339.30 -0.24 4,218,229 China Resources Land Ltd 22.40 1.82 14,945,256 China Resources Power Holdin 15.04 0.80 10,262,120 Diageo Plc 2,313.00 -0.64 3,112,787 SENSEX Dcc Plc 7,025.00 -1.40 96,473 China Shenhua Energy Co-H 18.90 -1.25 45,162,863 GCC INDICES Crh Plc 2,817.00 -1.16 927,644 China Unicom Hong Kong Ltd 10.18 -0.20 60,013,108 Compass Group Plc 1,509.00 -0.40 4,445,857 Company Name Lt Price % Chg Citic Ltd 11.52 1.59 18,706,000 Indices Lt Price Change Coca-Cola Hbc Ag-Di 1,999.00 0.40 494,086 Clp Holdings Ltd 80.50 0.44 3,587,938 Doha Securities Market Zee Entertainment Enterprise 523.40 0.44 1,371,584 10,485.53 +78.74 Centrica Plc 214.90 0.33 14,670,873 Cnooc Ltd 9.09 0.11 77,022,965 Saudi Tadawul Yes Bank Ltd 1,484.75 -2.05 2,611,529 6,912.78 -6.47 Carnival Plc 4,482.00 -0.53 485,266 Cosco Shipping Ports Ltd 8.69 -0.11 2,574,562 Kuwait Stocks Exchange Wipro Ltd 498.65 0.23 2,475,719 6,881.20 +12.37 Capita Plc 565.00 -0.79 1,583,928 Esprit Holdings Ltd 6.82 -2.43 2,159,257 Bahrain Stock Exchage Vedanta Ltd 261.65 -0.63 9,613,583 1,365.78 -8.45 Burberry Group Plc 1,754.00 -1.74 566,262 Fih Mobile Ltd 3.11 -0.32 9,395,023 Oman Stock Market Ultratech Cement Ltd 4,007.80 0.20 347,138 5,629.93 -40.77 Bunzl Plc 2,360.00 1.07 558,873 Hang Lung Properties Ltd 20.75 1.22 4,251,874 Abudhabi Stock Market Tech Mahindra Ltd 476.95 -1.03 4,477,126 4,512.82 +55.07 Bt Group Plc 327.50 -1.70 13,707,724 Hang Seng Bank Ltd 160.00 0.44 646,447 Dubai Financial Market Tata Steel Ltd 496.40 -0.05 5,429,259 3,494.87 +17.38 British Land Co Plc 614.50 -0.24 3,362,449 Henderson Land Development 47.50 1.28 2,641,476 Tata Power Co Ltd 87.65 0.57 4,292,409 British American Tobacco Plc 5,190.00 0.04 1,339,897 Tata Motors Ltd 473.75 -0.47 4,891,601 Bp Plc 457.40 -0.80 19,995,656 Tata Consultancy Svcs Ltd 2,486.70 0.27 1,734,658 Bhp Billiton Plc 1,280.50 -4.19 4,317,337 Sun Pharmaceutical Indus 698.05 -1.20 4,030,848 Berkeley Group Holdings/The 3,169.00 -0.35 734,826 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 272.35 -0.57 13,040,434 Barratt Developments Plc 543.50 -0.55 2,494,816 Reliance Industries Ltd 1,263.80 -1.33 5,410,491 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 228.85 0.24 27,008,226 Punjab National Bank 142.85 -1.62 8,552,703 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 644.00 -0.77 3,738,427 Power Grid Corp Of India Ltd 193.25 -0.18 4,837,838 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 919.00 -0.49 585,371 Oil & Natural Gas Corp Ltd 194.05 1.68 7,086,807 this data.” Aviva Plc 537.00 -0.19 4,400,492 Ntpc Ltd 162.15 0.46 3,148,546 Astrazeneca Plc 4,835.00 -1.33 1,165,141 Maruti Suzuki India Ltd 6,076.30 -1.34 560,808 Associated British Foods Plc 2,647.00 -0.45 1,045,443 Mahindra & Mahindra Ltd 1,294.40 -0.45 4,472,140 Ashtead Group Plc 1,645.00 -2.32 786,962 Lupin Ltd 1,454.40 -0.70 518,067 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,549.05 0.74 1,718,833 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 824.50 -2.94 2,044,038 DINAR DINAR Kotak Mahindra Bank Ltd 859.55 0.58 1,504,768 Anglo American Plc 1,245.00 -2.66 3,402,401 Itc Ltd 287.90 2.13 14,614,611 Admiral Group Plc 1,992.00 0.76 725,441 Infosys Ltd 1,032.85 1.11 2,535,960 3I Group Plc 717.50 -2.25 813,320 Indusind Bank Ltd 1,390.25 0.77 953,148 #N/A 0.00 0.00 - Idea Cellular Ltd 92.95 -4.86 106,477,897 Icici Bank Ltd 272.05 -1.09 16,542,315 TOKYO Housing Development Finance 1,458.40 0.04 2,249,298 Hindustan Unilever Ltd 903.45 0.56 1,094,620 Hindalco Industries Ltd 198.30 1.07 9,538,416 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,334.70 -0.17 156,225 East Japan Railway Co 9,913.00 -0.74 1,174,000 Hdfc Bank Limited 1,440.95 0.34 1,540,197 Itochu Corp 1,660.00 0.48 5,582,800 Hcl Technologies Ltd 859.30 -0.58 3,862,149 Fujifilm Holdings Corp 4,520.00 0.02 1,309,000 Grasim Industries Ltd 1,092.00 2.78 1,276,099 Yamato Holdings Co Ltd 2,437.50 -0.98 1,825,400 Gail India Ltd 370.30 -1.08 3,592,255 Chubu Electric Power Co Inc 1,483.50 1.02 1,557,900 Dr. Reddy’s Laboratories 2,623.25 -4.06 1,596,534 Mitsubishi Estate Co Ltd 2,172.50 0.02 4,307,000 Coal India Ltd 292.25 0.15 7,700,371 Mitsubishi Heavy Industries 479.10 -0.73 16,529,000 Cipla Ltd 591.85 -0.75 923,487 Toshiba Corp 196.50 3.37 124,890,000 Cairn India Ltd 291.35 -0.68 2,884,965 Shiseido Co Ltd 2,988.50 0.40 1,010,500 Bosch Ltd 22,902.90 1.01 26,590 Shionogi & Co Ltd 5,635.00 -0.19 1,006,600 Bharti Airtel Ltd 349.90 0.14 2,407,374 Tokyo Gas Co Ltd 513.40 0.00 3,991,000 Bharat Petroleum Corp Ltd 641.90 -0.26 1,932,322 Tokyo Electron Ltd 11,610.00 0.13 712,800 Bharat Heavy Electricals 168.95 -1.14 5,399,008 Panasonic Corp 1,245.00 -0.92 6,991,200 Bank Of Baroda 162.85 -1.66 6,737,921 Fujitsu Ltd 674.70 0.87 8,651,000 Bajaj Auto Ltd 2,906.85 -0.57 222,383 Central Japan Railway Co 18,545.00 0.11 349,700 Axis Bank Ltd 488.30 -2.89 11,546,216 T&D Holdings Inc 1,772.00 -2.90 4,329,100 Asian Paints Ltd 1,068.70 -1.02 1,494,186 Toyota Motor Corp 6,373.00 -0.06 5,472,200 Ambuja Cements Ltd 237.15 1.26 1,799,079 Kddi Corp 3,040.00 -0.16 3,998,800 Adani Ports And Special Econ 325.75 0.09 3,222,363 Nitto Denko Corp 8,739.00 -0.69 863,400 Acc Ltd 1,413.05 0.31 176,170 Gulf Times Wednesday, March 22, 2017 17 BUSINESS

Indians leave OECD: China growth to slow bankers in the cold to 6.5% in 2017, 6.3% in 2018 in $23bn Reuters telecoms Beijing hina’s economic growth is mega-deal likely to slow to 6.5% this year Cand cool further to 6.3% in 2018, the OECD said, though exports Reuters are set to pick up as global demand Hong Kong/Mumbai strengthens. The Organisation for Economic Co-operation and Development also nvestment banking business warned of China’s ballooning corpo- in India should be enjoying rate debt in its bi-annual economic Ibumper fees after a record outlook report released yesterday. year of dealmaking. “In terms of risk, we believe that It’s not, and big banks blame internally the biggest risk is the ac- in-house teams of advisers that cumulated and fast pace of growth of have proliferated as the coun- credit both in terms of shadow bank- try’s top family-owned con- ing and the banking system,” Alvaro glomerates tighten their grip. Santos Pereira, director of the country This week’s $23bn tie-up be- studies branch of the OECD’s Eco- tween Idea Cellular, controlled nomics Department, told reporters. by the Aditya Birla Group, and “I think it’s important to intensify the Indian business of Vodafone efforts to tackle this issue.” Group, is the latest example of China’s corporate debt is about a trend that is squeezing major 175% of GDP, one of the highest in international investment banks. emerging market economies, he said, Many are struggling in a mar- with state-owned enterprises (SOEs) ket that has long been diffi cult, accounting for around 75% of that. thanks to messy deals, paltry “One of our top recommendations fees and local challengers. is to remove implicit guarantees to Bankers had been circling SOEs and other government and pub- both sides of the telecoms mega- lic entities,” said Margit Molnar, head merger since it was fi rst mooted of the China desk at the OECD’s Eco- late last year, when competition nomics Department. in the sector accelerated dra- Such guarantees have enabled SOEs matically. and local government investment ve- In India, deals worth more hicles to continue accumulating debt, than $1bn are rare. she said. In the event, Vodafone hired Financial risks in China are mount- six advisers: Morgan Stanley, ing because of indebted enterprises, Robey Warshaw, Bank of Amer- growing non-bank activities and ica Merrill Lynch, Kotak Invest- enormous overcapacity, the report ment Banking, Rothschild and said. UBS. Idea hired none. The OECD’s forecast for 2017 is in Instead of tapping bankers, line with the Chinese government’s Residential buildings are seen along a street in Hefei, Anhui province. The Organisation for Economic Co-operation and Development warned of China’s ballooning the Aditya Birla Group relied growth target of around 6.5% this corporate debt in its bi-annual economic outlook report released yesterday. on their in-house team, which year, versus last year’s 6.5%-7% range. includes Saurabh Agrawal, a The economy grew 6.7% in 2016, “but is gradually and appropriately this year and 6% in 2018, down from threat of rising protectionism from of the gains of the last ten, fifteen former South Asia head of cor- the slowest pace in 26 years. moderating as the population ages 8.6% growth in 2016, as imports used the United States but noted that pro- years – is going to be extremely costly porate fi nance at Standard Char- Some analysts believe the more and the economy rebalances from in- to process exports fall. tectionism by some trading partners to everyone,” Pereira said. tered, whom it hired last year as modest target will give policymakers vestment to consumption,” the report The world’s second-largest econo- would hurt Chinese exports. China’s rapid economic growth has head of corporate strategy, and more room to tackle debt risks and said. Export volumes are expected my needs more innovation, entrepre- However, it said China could miti- been accompanied by rising inequal- former Morgan Stanley banker push through painful reforms, though to grow 3.4% this year and 3.3% next neurship, effective corporate govern- gate this by signing free trade deals ity which could be combated by re- Ashish Adukia, who joined near- authorities are expected to proceed year, up from 2.3% in 2016, due to in- ance and reform of its state-owned with other partners. “Rising protec- forming the tax system and the house- ly three years ago. cautiously to avoid hurting growth. creasing global demand. sector, the OECD added. tionism to the level that some people hold registration system which limits Earlier this year, it also hired Economic growth remains high Import volumes are set to grow 7.7% The report did not single out the are talking about – or reversing some labour movement, the OECD said. Ankur Dalwani, a former man- aging director at Jeff eries in In- dia, according to a source famil- iar with the move. “Investment banking is monthly tracking of revenue that you’ve made, investment New World Bank CEO warns against protectionism banking in corporate is monthly tracking of ideas that you have generated. That’s the diff erence,” Reuters of the European Commission. In “In 2016, 35% of growth in the world Adukia said in an e-mailed com- Beijing Germany over the weekend, finance came from China,” she said. “While ment. ministers and central bankers from this contribution is going to gradually The trend, say bankers, is 20 rich nations dropped a former decline somewhat, it is very signifi - about bringing back control for he World Bank’s newly ap- pledge in their communique to keep cant.” Indian tycoons behind some of pointed chief executive gave a global trade free and open, acquiesc- China has said it is targeting eco- its biggest companies. Tspirited defence of globalisation ing to an increasingly protectionist nomic growth of about 6.5%, after it One source with direct knowl- during her fi rst offi cial visit to China, US administration. reported growth of 6.7% last year. edge of this deal said Birla took a saying it had helped richer and poorer Georgieva called for an “intelligent, The World Bank, through the Inter- direct role in the deal, assisted by countries, and economic integration calm conversation” about sharing the national Bank for Reconstruction and Agrawal. made it hard for any nation to walk benefi ts of globalisation more broadly. Development, is now providing about “In some cases, the company away. Warning against protectionist poli- $2bn annually in lending to China, and in the middle of a transaction Kristalina Georgieva, a Bulgarian cies, she said every country would be is involved in projects ranging from won’t even copy the bank ad- who took up her post at the multilat- hurt if decades of integration and in- pollution controls to urban and rural vising on the deal when sending eral development lender at the start terdependence were unravelled. development. mails fi nalising the details. It’s of this year, also praised China for its “It’s impossible to say, now we are in Georgieva said the biggest chal- all about keeping control of each commitment to economic reforms and this boat, but it is only your end of the lenges facing the World Bank remain in and every decision,” said one open markets. boat that is sinking,” said Georgieva. those countries torn apart by confl ict banker who has worked with big “Open markets, trade, division of Rather than erect trade barriers, and facing famine. Indian conglomerates, includ- labour has worked extremely well for economies should encourage compe- “It is horrible to have the shadow ing Birla. “Increasingly you will the poorer countries,” she told Reuters tition which boosts innovation and of famine in the 21st century,” she see the large companies roping in an interview late on Monday. raises productivity, she said. said, pointing to situations in South in external advisers only in those But wealthier countries also have Georgieva called for China’s gov- Sudan, Somalia, Yemen and northern cases where they can’t bridge benefited from rising middle class- ernment to continue opening up the Nigeria. the gap. It will mainly involve es, which are demanding more ex- domestic market to competition, and “Our biggest fear is related to that the markets where they have no ports from advanced economies, said move forward with reforms to create kind of devastation combining the presence or no knowledge.” Georgieva: Praising China for its commitment to economic reforms and open markets. Georgieva, a former vice president “a more dynamic economy”. force of nature with the evil of men.” ‘Skyscraper curse’ claims victim in Lotte’s $3.6bn tower

Bloomberg “Lotte is kind of the perfect storm of ships, announced March 15 its fourth named the “skyscraper curse” by Mark 2.5% this year, according to a survey by The group’s then-vice chairman, Lee Seoul in terms of vulnerability,” said Andrew straight annual loss. Thornton, senior fellow at the Mises Insti- Bloomberg News, and that would be the In-won, was found dead in August, just Gilholm, Shanghai-based principal and “Korea is definitely facing a lot of dif- tute in Auburn, Alabama. Lotte’s 123-story lowest since 2012. hours before he was scheduled to be director of analysis for Greater China and ficulties at home and abroad,” said Emily tower got a taste of that misfortune on China’s retribution over the missile questioned by prosecutors investigating The glass-bottomed observation deck North Asia with Control Risks. “They’re in Dabbs, economist with Moody’s Analytics Monday, when the conglomerate said system will exacerbate the problem, and allegations of slush funds, embezzlement sitting 118 stories up in the Seoul sky sectors that are very exposed.” in Sydney. “Over the next year, we are go- the scheduled March 22 opening of the Lotte Group is especially vulnerable. Most and tax evasion at the group. isn’t for the faint of heart. That condition And that’s more bad news for South ing to see a low-growth environment.” observation deck would be delayed until of its 99 Lotte Mart stores in China are The court set a March 27 hearing for would apply to the tower’s builder, the Korea, which is being pummelled by Record-setting skyscrapers and at least April 3 following an elevator closed for alleged safety violations, and its Shin Dong-bin and Lotte executives in the beleaguered Lotte Group, as well. concurrent political and economic economic hard times are no strangers, malfunction. joint-venture factory with Hershey Co in trial, which may last months before a ver- After almost seven years of planning crises. Park Geun-hye was impeached as said Andrew Lawrence, Hong Kong-based Lotte isn’t buying into talk of a curse, Shanghai was ordered by Chinese authori- dict is reached. A hearing date for other and 4tn won ($3.6bn) in spending, the president over a corruption scandal that founder of Oculus Research Asia and saying yesterday its tower and accom- ties to stop production for a month. family members will be set in the future. conglomerate is preparing to unwrap has produced about 40 indictments, and creator of the Skyscraper Index. panying Lotte World Mall will generate “The problems have put Lotte into its As the legal troubles grind on, South its Lotte World Tower to the public. The she faced questioning by prosecutors New York’s Empire State Building de- 10tn won in economic benefits a year and worst crisis ever,” said Bruce Lee, chief Korea’s government is trying to help. The building boasts some record-setting yesterday for the first time after losing her buted during the Great Depression; work attract 50mn tourists. executive off icer of Zebra Investment trade minister raised the issue of China’s amenities: highest glass floor at the top of immunity. She has denied any wrongdoing. on Malaysia’s Petronas Towers finished “There are several cases where Management in Seoul. retaliation against the tourism and retail a building and highest swimming pool. The investigation ensnared Jay Y Lee, during the Asian financial crisis of the late landmark skyscrapers around the world Lotte faces trouble at home, too. The sectors with the World Trade Organisa- Yet the debut couldn’t come at a worse de facto head of the country’s biggest 1990s; and Dubai’s Burj Khalifa opened have good impact on the local economy,” group’s chairman, Shin Dong-bin, and tion, Kang Myung-soo, director-general time for Lotte, the chaebol with $81bn in conglomerate, Samsung Group. The in 2010 as the property market there col- Lotte said in a statement. “Lotte decided three other family members went on of the Trade Ministry’s trade cooperation revenue that may be the latest victim of billionaire was jailed after being indicted lapsed. “Most of the skyscrapers are con- to delay the opening in an eff ort to keep trial March 20 on charges ranging from bureau, said by text message March 20. what’s called the “skyscraper curse.” The on corruption charges. He has denied ceived in the up-cycle and completed in safety as a priority.” embezzlement to fiduciary breaches Still, the economic repercussions may empire’s 94-year-old founder and three of wrongdoing. the recession, putting significant pressure Still, South Korea is in the midst of a amounting to about 280bn won. get worse in the short term since Lotte his children face corruption charges, and What was once the country’s biggest on the companies that have built them,” slowdown. Household income grew at the The defendants include the group’s and other Korean companies have limited its stores are at the epicentre of Chinese container shipping company, Hanjin said Lawrence, who proposed the index slowest pace on record last year, rising elderly founder, Shin Kyuk-ho, who first ability to resist Chinese pressure. China consumer retaliation for a US missile- Shipping Co, declared bankruptcy last for buildings of record height in 1999. 0.6%. Consumption expenditure fell 0.5%, proposed the Lotte World Tower three says the missile shield called Thaad will defence system being installed on land it year, and Daewoo Shipbuilding & Marine The relationship between skyscrap- the first decline. The country’s gross decades ago. The family members deny break the regional strategic balance and provided. Engineering Co, the world’s biggest maker ers and economic downturns has been domestic product is expected to grow by the charges. wants it withdrawn. Gulf Times 18 Wednesday, March 22, 2017 BUSINESS

BOC Aviation orders 13 Boeing jets worth $1.4bn Indonesia tax amnesty nets

AFP Singapore

Singapore-based aircraft $330bn – now for reform leasing firm BOC Aviation said yesterday it has ordered 13 new Reuters Boeing 737 MAX 8 planes worth Jakarta a total of $1.4bn at list prices. “Airlines are attracted by the 737 MAX 8’s lower operating outheast Asia’s biggest economy costs and fuel eff iciency,” BOC this month is winding up one of Aviation managing director and Sworld’s most successful tax am- chief executive Robert Martin nesties, with at least 745,000 taxpayers said in a statement. declaring more than $330bn of assets so “We are delighted to an- far. nounce the inclusion of these President Joko Widodo has cited additional aircraft as we build higher tax revenue as the key to boost- our future delivery pipeline.” ing infrastructure spending and growth. BOC Aviation, owned by But if the amnesty is to avoid being Bank of China, is based in just a one-off windfall, Indonesia needs Singapore with off ices in Dublin, to improve a tax collection ratio well London and Tianjin. below many of its peers, international It is a key customer for both agencies and local offi cials have said. European aircraft maker Airbus To that end, Indonesia’s fi nance and its US rival Boeing. minister Sri Mulyani Indrawati has set BOC Aviation said its fleet up a special tax reform team to boost is leased to 68 airlines in 32 collection. countries as of end December It faces an immense task in a country last year. where tens of millions of people – both Following the latest purchase the wealthy and the poor – remain out- agreement, the company said side the tax system. its cumulative outstanding or- Parliament is considering draft leg- ders, purchases and deliveries islation that would overhaul an insti- from Boeing total 331 aircraft. tution the public views as one of In- Most of its Boeing planes donesia’s most corrupt, according to are from the single-aisle 737 global corruption watchdog Transparency family, a popular choice among International. low-cost carriers, which have “People don’t pay taxes because they expanded rapidly in Southeast believe they won’t get caught,” said Da- Asia. russalam (like many Indonesians, he goes by one name), a partner at consul- tancy Danny Darussalam Tax Centre. The amnesty has provided the gov- ernment with more revenue than simi- lar plans in countries such as India, Chile, Italy or South Africa, Indrawati SoftBank said. The amnesty has been criticised for benefi ting mostly the rich. The World Bank blames poor tax invests compliance amongst high income earn- ers in Indonesia for hampering poverty reduction and maintaining inequality. $300mn in The richest 1% of Indonesia’s 250mn people control nearly half the wealth, charity organisation Oxfam said. WeWork The tax bureau as of 2016 employed about 38,000 people to collect taxes from a workforce of 118.41mn. Indonesian President Joko Widodo speaks about the tax amnesty programme to members of the business community in Jakarta. Widodo has cited higher tax revenue Reuters Less than a third of the workforce is as the key to boosting infrastructure spending and growth. San Francisco registered at the tax offi ce and even few- er fi le annual tax reports. conditioner. His job would be easier if be distracted by campaigning ahead of to push through reforms of everything the tax ratio will likely stay below 11% A visit to the tax offi ce in Jakarta pro- tax auditors had far fewer clients and 2019 elections. from the tax offi ce’s business model to of GDP. oftBank Group Corp vides a window into the challenges the more access to third-party data, such as Widodo has vowed to bypass parlia- tariff s. Rosan Roslani, chairman of Indone- has invested $300mn in government faces. banking information, he said. ment if necessary by issuing an emer- Hestu Yoga Saksama, a tax offi ce sia’s chamber of commerce and indus- Sshared-offi ce space com- Tax inspector Jeff ry Martino some- He might get that wish under pro- gency regulation before mid-year giv- spokesman, said the team would rede- try, said that the tax offi ce should not pany WeWork, the fi rst instal- times works a 12-hour day just to keep posed legislation to reform the tax ing the tax offi ce access to bank data. ploy thousands of tax offi cers to audit- just monitor those already in the sys- ment of a multi-billion-dollar tabs on a small portion of the hundreds system. The draft in Indonesia’s par- In the meantime, Finance Minister ing once the amnesty period ends this tem, but go after tax evaders. bet, according to a source famil- of companies under his watch. liament calls for giving tax collectors Indrawati’s tax reform team aims to month. “When our tax base is low, there will iar with the matter. He has 661 taxpayers under his wider access to bank data in line with increase the tax ratio to 15% of GDP in “We are preparing to take legal action be some ‘hunting in the zoo’ because SoftBank, the Japanese tel- watch, but focuses on the biggest 100 Indonesia’s pledge to join a global eff ort 2020 from about 11% now. against people we found non-compliant you only have so many people in the ecommunications and Internet companies that contribute the most to to share tax-related fi nancial data. That compares with a global average but have not taken part in the amnesty,” system,” said Roeslani, who is also ad- company, has made bold and his target of collecting 495bn rupiah Andreas Eddy Susetyo, a member of of 14.8% in 2014, according to the World said Saksama, describing it as a poten- vising the reform team. wide-ranging bets in the tech- ($37.02mn) this year. the commission overseeing the bill, said Bank. The team, consisting of fi nance tial quick win. He advocates creating an Indonesian nology industry, including India “We are the spearhead of state rev- it may take up to a year to fi nish discus- ministry offi cials and advisers from the But the World Bank still estimates In- social security number system, simi- ride-service company Ola, San enue collection,” said Martino, at his sions and even then progress may be World Bank and other agencies, intends donesia will miss its 2017 total revenue lar to that of the United States, to help Francisco-based fi nancial serv- temporary offi ce with a misfi ring air interrupted because politicians would to act as a brainstorming think-tank target by 70tn rupiah ($5.23bn), while boost the number of taxpayers. ices startup SoFi and Virginia- based satellite communications startup OneWeb. The WeWork investment is just the fi rst tranche of a much larger funding round that is ex- pected to total about $3bn, ac- Westinghouse seeks US bankruptcy fi nancing cording to the person familiar with the matter, who spoke on condition of anonymity. Reuters expected to exceed $500mn, the peo- a turnaround expert. Toshiba has so Scana Corp and Santee Cooper be among the largest creditors of the While this fi rst round of fund- Tokyo ple added. far said it was considering several own the plants in South Carolina, developer, owed the work that has yet ing comes from SoftBank itself, Should it file for bankruptcy, the options for Westinghouse, including and Georgia Power leads a consor- to be completed and potential penal- the remainder of the cash is ex- money would allow Westinghouse to selling the unit. tium that commissioned the Georgia ties, according to the sources. pected to come from SoftBank’s estinghouse Electric Co continue to pay employees and build Toshiba and Westinghouse did not plants. The exploding population in the $100bn Vision Fund, a massive LLC, the nuclear power four nuclear power plants in Georgia immediately respond to requests for “We will continue to hold (West- southeastern United States spurred tech-focused investment vehi- Wplant developer owned and South Carolina, commissioned by comment. inghouse) accountable for their re- the development of the plants, which cle led by CEO Masayoshi Son. by Japanese electronics company local utility companies. Toshiba has said it would take a sponsibilities under our agreement,” were first approved by regulators in WeWork and SoftBank de- Toshiba Corp, is taking offers for a fi- These would be the first nuclear $6.3bn writedown related to West- Georgia Power said in a statement. 2012. Nuclear power fell out of favor clined to comment. nancing package to help it go through power plants built in the US in more inghouse, and gained an extension “Work continues to progress at the in the United States after a partial nu- New York-based WeWork US bankruptcy, people familiar with than 30 years. from Japanese regulators until April Vogtle site, we are monitoring the sit- clear meltdown at Three Mile Island leases offi ce space and divvies it the matter said on Monday. The sources cautioned that the 11 to submit financial results or face uation and prepared for any potential in central Pennsylvania in the late up to rent out to individuals and Toshiba is reviewing proposals move is preparatory and that no deci- having its public shares delisted from outcome.” 1970s. small companies, namely start- from financial institutions and in- sion has yet been made for Westing- the Tokyo Stock Exchange. A spokeswoman for Scana said that Toshiba’s acquisition of Westing- ups. vestment firms about a so-called house to file for bankruptcy. The power plants Westinghouse is “with approximately 5,700 contractor house about 10 years ago for $5.4bn It encourages people to share debtor-in-possession loan, which They asked not to be identified building are called the Virgil C Sum- and subcontractor personnel on site represented a major bet on a renais- offi ces and common space. would carry the company through a because the deliberations are confi- mer Nuclear Generating Station in today, we continue to make progress sance of the fuel. SoftBank’s investment was potential bankruptcy, said two people dential. Reuters reported earlier this Fairfield County, South Carolina and with construction of these new units.” But the projects now face long con- reported earlier Monday by the familiar with the situation. month that Westinghouse was work- the Vogtle Electric Generating Plant In a potential Westinghouse bank- struction delays and billions of dol- Wall Street Journal. The size of this financing package is ing with bankruptcy attorneys and in Burke County, Georgia. ruptcy, the utility companies would lars in cost overruns. Beset by delays, Myanmar-China oil pipeline nears start-up

Reuters will allow the state energy giant to im- planning under the state-owned My- start-up of the Yunnan refi nery has uters Eikon shows the oil tanker United China as it has been tainted by a graft Yangon/Beijing port overseas oil via the Bay of Bengal anmar Oil and Gas Enterprise (MOGE), been held up as PetroChina and Myan- Dynamic, carrying 1mn barrels of Az- probe into PetroChina’s ex-chairman and pump it through the pipeline to said the project was awaiting a fi nal mar negotiated fi nal terms for deliver- eri crude, is currently off the coast of Jiang Jiemin, a supporter of the project. supply a new 260,000-barrels-per- sign-off by the Minister of Electric- ing the oil. southern India and expected to unload Critics have raised concerns about early a decade in the making, day (bpd) refi nery in landlocked Yun- ity and Energy. Major issues including PetroChina plans to start test pro- its cargo at Kyauk Phyu this week. the economic viability of the project, a project to pump oil 770km nan province. transport tariff s and Myanmar’s tax duction at the refi nery in June, aiming A Myanmar government offi cial said which also includes a natural gas pipe- N(480 miles) across Myanmar The new oil gateway fi ts with Chi- take on the oil have been settled, but to expand its foothold in China’s fuel- there had been “a big argument with line, which was touted as providing to southwest China is set for imminent na’s “One Belt, One Road” ambitions, port fees have yet to be fi nalised, said short southwest which has so far relied the Chinese” over the move to ship in “strategic new channels” for China’s start-up, with a supertanker nearing linking it with central Asia and Europe, a Myanmar-based industry source fa- largely on rival Sinopec for supplies, crude before the contract was fi nalised, energy needs. At the same time, the the port of Kyauk Phyu, marking the and will provide a more direct alterna- miliar with the matter. said two Beijing-based oil offi cials fa- while a second offi cial said the entry of prolonged squabbling over key fea- opening of a new oil trading route. tive route to sending Middle Eastern oil “The two sides are working to fi nal- miliar with the Yunnan refi nery. the tanker was pending approval from tures of the deal, fi rst discussed back in Dogged by sensitive relations be- via the crowded Malacca Straits and ise the terms and sign the contract,” Before then, PetroChina is expected Myanmar’s navy. 2004, has soured Chinese enthusiasm tween Naypyitaw and Beijing, the Singapore. the person said, declining to be named to purchase another 7mn barrels of PetroChina did not respond to re- for the project. $1.5bn oil pipeline has been sitting It would also be a rare win for China as the information is not public. crude for the pipeline, to stock up fuel quests for comment. “There are open questions about empty for two years, but the two sides in Myanmar after a diplomatic off en- “I can’t say for sure when the deal for about one month’s production at its Any delay would be costly for the oil the economics and future coopera- are now close to a deal, said Myanmar- sive aimed at forging better ties with would be sealed – it could be in a cou- new refi nery, said one of the offi cials. shipper, which is carrying crude worth tion with Myanmar, given the repeated based government and industry sourc- its resource-rich neighbour, which has ple of days or early April.” While the deal is still to be fi nalised, over $50mn and which has a daily delays and under-utilisation,” noted es, despite some last-minute tensions. often been wary of Beijing’s economic The pipeline will have an eventual oil is already on its way to supply the tanker charter cost of nearly $20,000, a senior PetroChina offi cial who re- An agreement between China’s Pet- clout. capacity of 400,000 bpd, about 5% of pipeline, straining relations with My- excluding fuel and crew costs. quested anonymity as he’s not author- roChina and Myanmar’s government Aung Myat Soe, deputy director of China’s daily import demand, but the anmar. Shipping data in Thomson Re- The deal is also controversial in ised to speak to press. Gulf Times Wednesday, March 22, 2017 19 BUSINESS

EU fi nance chiefs distance themselves from Trump, G-20 on free trade

Bloomberg When Trump met German Brussels Chancellor Angela Merkel at the White House last week, he repeated his complaints that uropean Union fi nance his country has been treated chiefs expressed fear that “very, very unfairly” in trade Esome governments are arrangements. trending toward protection- “It has now been confi rmed ism as they distanced them- that open world trade maybe selves from President Donald is not a priority for everyone,” Trump’s “America First” policy Luxembourg Finance Minister stance and the Group of 20 na- Pierre Gramegna told reporters. tion’s watered-down declara- “We are all worried in Europe tion on free trade. that open trade and globalisa- “The G-20 was unfortunate- tion with its good sides are be- ly a disappointing meeting be- ing put into question.” cause the promise we have giv- Belgium’s Finance Minister en each other in the past is now Johan Van Overtveldt said he being taken away by the new was “very worried” about the US administration,” Danish Fi- move towards protectionism. nance Minister Kristian Jensen “Practically all the Euro- told reporters yesterday on the pean economies are very open way into talks in Brussels. “I’m economies, very much oriented quite concerned that we need to toward an open international fi ght harder for Europe to keep trade system and if we would up free trade.” walk away from that system or After two days of meetings start to walk away from it, that in the German town of Baden- would have major consequenc- Baden, fi nance chiefs and cen- es,” he said. tral bankers from the G-20 set The paradigm shift in US Bank of England governor Mark Carney speaks during a panel discussion at the BoE in London yesterday. February’s rise represented the first time in more than three years that aside a pledge to avoid protec- policy has left the EU scram- inflation topped the BoE’s target, but Carney said it was important not to overreact to a single month’s data. tionism. They preferred a much bling to reinforce European pared-down statement com- trade standards. pared with the group’s com- “We are working to defend munique last year to work “to the multilateral rule-based strengthen the contribution of system that has safeguarded trade to our economies.” our prosperity over so many EU fi nance ministers, of decades,” EU Trade Commis- whom only those of France, sioner Cecilia Malmstrom said Germany, Italy and the UK are in a speech in Toronto yester- members at the G-20 level, will day. The Trump administra- UK infl ation shoots pick over Saturday’s commu- tion’s embrace of bilateral trade nique at the Brussels meeting. deals and its proposed border The absence of words directly tax “are worrying signals,” she addressing protectionism fol- said. lows claims Trump that the US “We do know the conse- has had a bad deal from the cur- quences of turning away from rent global trade setup. open trade,” Malmstrom said. above 2%, adding to BMW plans biggest model launch ever BoE conundrum Consumer price index +2.3%; record-low borrowing costs be- But Ruth Gregory, an econo- tion, it has also given a boost to which also caused a sharp fall Bloomberg ive tone marks a turnaround af- first time CPI above BoE cause of growing infl ation pres- mist at Capital Economics, said manufacturers whose exports in sterling. Munich ter Krueger, who took charge in target since November 2013; sures and the economy’s resil- the latest data would do little to are more competitive in foreign Infl ation has also accelerated 2015, stumbled out of the gates. fuel prices rise, food turns ient response so far to Britain’s reassure those BoE rate-setters markets. in the United States and else- The revamped 7-Series sedan more expensive; sterling decision last June to leave the who are more concerned about A recovery in the global econ- where in Europe. MW plans the biggest failed to challenge the Mer- gains, government bonds fall European Union. higher infl ation. omy is also helping British fac- The ONS said transport costs, rollout of new and re- cedes S-Class, while the rede- Other policymakers said they “If the economy continues to tories. which were pushed up by rising Bvamped models in its sign of the 5-Series was cau- Reuters could soon follow suit, depend- hold up well as we expect, inter- Optimism among British fac- fuel costs, were the biggest driv- history as the luxury-car maker tious. Krueger is focusing on London ing on infl ation and growth est rates could be rising rather tories surged to a 22-year high in er of infl ation in February. fi ghts back after losing the sales profi tability instead of sales to data. sooner than the markets have March as exports rebounded, a Also, food prices rose in annu- crown to Mercedes-Benz. conserve resources for a costly February’s rise represented been anticipating,” she said in a survey showed. al terms for the fi rst time in more Over the next two years, the shift to an era of self-driving, ritish infl ation shot past the fi rst time in more than three note to clients. Britain’s vote to leave the EU than two-and-a-half years. Munich-based manufacturer electric vehicles, with a plan to the Bank of England’s 2% years that infl ation topped the The increase in the annual last June caused the pound to Excluding oil and other vola- will unveil 40 variants, includ- release the autonomous iNext Btarget last month, po- BoE’s target, but Governor Mark infl ation rate between January, slide, pushing up the price of tile components such as food, ing the new X2 compact sport in 2021. tentially adding to uneasiness Carney said it was important not when it stood at 1.8%, and Feb- imports. core consumer price infl ation utility vehicle and full-sized After spending €5.16bn, among some offi cials at the cen- to overreact to a single month’s ruary was the steepest since Oc- Furthermore, global oil prices rose to 2.0%, above the Reuters X7 SUV. Chief executive offi cer or 5.5% of its revenue, on re- tral bank about keeping interest data. tober 2012, the ONS said. have risen, adding to the squeeze poll forecast of 1.8%. Data on Harald Krueger is seeking to search and development last rates near zero. Carney has previously warned Economists taking part in a on the spending power of house- factory gate prices underscored revitalise growth after profi t- year, BMW said it plans to in- Consumer prices rose by a of “twists and turns” ahead for Reuters poll had expected infl a- holds. the infl ationary pressures still in ability fell to a six-year low in vest at an even higher rate in stronger-than-expected 2.3%, Britain’s economy as the coun- tion would rise to 2.1%. Sterling The BoE has said it expects the pipeline. 2016 and sales slipped behind the coming two years. Amid the biggest annual increase in try prepares to leave the EU, a hit its highest level against the inflation will peak at 2.8% Output prices rose 3.7% in Mercedes for the fi rst time in increased costs, the company nearly three-and-a-half years, process Prime Minister Theresa US dollar in three weeks after in the second quarter of next annual terms, the strongest in- more than a decade. predicted profi t and revenue pushed up by an increase in glo- May will start next week. the data. year, but many economists say crease since the end of 2011. “We are launching the big- will rise “slightly” in 2017, and bal oil prices and the impact of And most BoE policymakers British government bond it is likely to hit 3%.The BoE Prices paid by factories for gest model off ensive ever,” the automotive margin will the Brexit vote on sterling. have noted how slowly wages are prices fell. underestimated the extent of materials and energy surged Krueger said at the annual remain in its range of between Last week, one of the BoE’s growing, another reason to keep While the fall in the value of inflation’s rise after the glo- with the cost of crude oil, almost press conference. The combat- 8% and 10%. policymakers voted to raise rates low. the pound has pushed up infl a- bal financial crisis in 2007-09 doubling from a year earlier. Apple’s next big thing: Augmented reality

Bloomberg worked on the Oculus and HoloLens vir- headsets like the Oculus and HoloLens are team drawn from inside and outside the virtual reality platform; Duncan McRob- features Apple is exploring is the ability to San Francisco tual reality headsets sold by Facebook and niche rather than mainstream products. company. It has done much the same with erts, Meta’s former director of software de- take a picture and then change the depth Microsoft as well as digital-eff ects wizards Apple believes AR will be an easier sell the AR eff ort. In 2015, Apple recruited velopment; Yury Petrov, a former Oculus of the photograph or the depth of specific from Hollywood. Apple has also acquired because it’s less intrusive. Referring to VR Mike Rockwell, who previously ran the researcher; and Avi Bar-Zeev, who worked objects in the picture later; another would Tim Cook has talked up a lot of tech- several small firms with knowledge of AR headsets, Cook last year said he thought hardware and new technologies groups on the HoloLens and Google Earth. isolate an object in the image, such as a nologies since becoming Apple’s chief hardware, 3D gaming and virtual reality few people will want to be “enclosed in at Dolby, the iconic company known for Apple has rounded out the team with person’s head, and allow it to be tilted 180 executive in 2011. Driverless cars. Artificial software. something.” its audio and video technology. Rockwell iPhone, camera and optical lens engineers. degrees. A diff erent feature in develop- intelligence. Streaming television. But no As previously reported by Bloomberg, Building a successful AR product will also advised Meta, a small firm that makes There are people with experience in ment would use augmented reality to technology has fired up Cook quite like Apple is working on several AR products, be no easy task, even for a company $950 AR glasses and counts Dolby as an sourcing the raw materials for the glasses. place virtual eff ects and objects on a augmented reality, which overlays images, including digital spectacles that could known for slim, sturdy devices. The cur- investor. The company has also mined the movie person, much the way Snapchat works. video and games on the real world. Cook connect wirelessly to an iPhone and beam rent crop of AR glasses are either under- Rockwell now runs the main AR team industry’s 3D animation ranks, the people The iPhone camera features would prob- has likened AR’s game-changing potential content—movies, maps and more—to the powered and flimsy or powerful and at Apple, reporting to Dan Riccio, who’s said, opening a Wellington off ice and lur- ably rely on a technology known as depth to that of the smartphone. At some point, wearer. While the glasses are a ways off , overwhelmingly large. Apple, the king in charge of the iPhone and iPad hard- ing several employees from Weta Digital, sensing and use algorithms created by he said last year, we will all “have AR expe- AR features could show up in the iPhone of thin and light, will have to leapfrog ware engineering groups, the people the New Zealand special-eff ects shop that PrimeSense, an Israeli company acquired riences every day, almost like eating three sooner. current products by launching something said. “He’s a really sharp guy,” says Jack worked on King Kong, Avatar and other in 2013. Apple may choose to not roll out meals a day. It will become that much a Apple declined to comment. small and powerful. McCauley, who co-founded and worked films. these features, but such additions are part of you.” It’s an auspicious moment for Apple to Adding AR features to the iPhone isn’t a at Oculus before it was sold to Facebook Besides hiring people, Apple has been an up-and-coming trend in the phone Investors impatient for Apple’s next move into augmented reality. The global giant leap. Building glasses will be harder. in 2015. “He could certainly put a team busy making tactical acquisitions. In 2015, business. breakthrough will be happy to know that market for AR products will surge 80% to Like the Watch, they’ll probably be teth- together that could get an Apple AR the company acquired Metaio, which The AR-enhanced glasses are further Cook is very serious about AR. People with $165bn by 2024, according to researcher ered to the iPhone. While the smartphone project going.” developed AR software. Former Metaio down the road, the people say. Getting knowledge of the company’s plans say Global Market Insights. But Apple really will do the heavy lifting, beaming 3D Last spring, in a sign that it’s serious CEO Thomas Alt now works on Apple’s the product right will be key, of course. Apple has embarked on an ambitious bid has no choice, says Gene Munster, a found- content to the glasses will consume a lot about taking products to market, Apple strategic deals team, which decides which Wearables are hard. Apple’s first stab at to bring the technology to the masses—an ing partner at Loup Ventures who covered of power, so prolonging battery life will be put some of its best hardware and soft- technologies to invest in. Last year, Apple the category, the Watch, has failed to eff ort Cook and his team see as the best the company for many years as an analyst. crucial. Content is key too. If Apple’s AR ware people on Rockwell’s team, including also bought FlyBy Media, which makes become a mainstream hit. And no one has way for the company to dominate the next Over time, Munster says, AR devices will glasses lack useful apps, immersive games Fletcher Rothkopf who helped lead the AR-related camera software. Cook even forgotten Google Glass, the much-derided generation of gadgetry and keep people replace the iPhone. “It’s something they and interesting media content, why would team that designed the Apple Watch, and visited the off ices of Magic Leap last sum- headset that bombed in 2014. Still, time wedded to its ecosystem. need to do to continue to grow,” he says, someone wear them? The glasses will Tomlinson Holman, who created THX, mer and displayed interest in the secretive and again, Apple has waited for others Apple has built a team combining the “and defend against the shift in how peo- also require a new operating system and the audio standard made popular by company’s AR technology, the people say. to go first and then gone on to dominate strengths of its hardware and software ple use hardware.” perhaps even a new chip. Finally, Apple LucasFilm. Magic Leap declined to comment. the market. “To be successful in AR, there veterans with the expertise of talented Augmented reality is the less known will have to source the guts of the gadget Apple has also recruited people with Hundreds of engineers are now is the hardware piece, but you have to outsiders, say the people, who requested cousin of virtual reality. VR gets more cheaply enough to make it aff ordable for expertise in everything from 3D video devoted to the cause, including some on do other stuff too: from maps to social to anonymity to discuss internal strategy. attention because it completely immerses the mass market. production to wearable hardware. Among the iPhone camera team who are working payments,” Munster says. “Apple is one Run by a former Dolby Laboratories ex- users in an artificial world and has an obvi- When it was developing the Watch, them, the people say: Cody White, former on AR-related features for the iPhone, of the only companies that will be able to ecutive, the group includes engineers who ous attraction for gamers. So far, however, Apple put together a multi-disciplinary lead engineer of Amazon’s Lumberyard according to one of the people. One of the pull it off .” Wednesday, March 22, 2017 GULF TIMES BUSINESS

QDB holds workshop to train exporters on ‘Harmonised System Nomenclature 2017’

atar Development He added: “Harmonised Sys- Bank (QDB), through tem Nomenclature 2017 is very Qits export programme important because the new edi- Tasdeer, organised a training tion includes critical amend- workshop to inform export- ments on food, fi sheries, and ers on the main features of the agricultural commodities. This globally-recognised exporting allows for better monitoring and classifi cation system, ‘Harmo- control of trade in the interest nised System (HS) Nomencla- of food security and manage- ture’. ment of resources. We deliver The sixth edition of the HS this workshop in the fi rm belief Nomenclature, developed by that it is imperative that Qatari World Customs Organisation exporters be made aware of the (WCO), entered into the work- prevailing changes as it aff ects force on January 1, while previ- their exports and compatibility ous editions of the classifying with global standards.” discipline have been in use by The newest HS Nomen- over 200 countries to cat- clature 2017 edition includes egorise goods in international 233 sets of amendments to the trade since 1983. previous edition, thus aff ect- The latest instalment of the ing trade classifi cations across classifi cation system includes various sectors. The breakdown 5,387 six-digit subheadings in of the amendments includes contrast to the 5,205, which 85 amendments to trade clas- were featured in the previous sifi cations in the agricultural 2012 edition. The World Trade sector, trade classifi cations in Organisation (WTO) and a the chemical sector (45), trade wide range of countries use the classifi cations in the wood sec- HS Nomenclature system as a tor (13), trade classifi cations common language for trade, for in the textile sector (15), trade the purposes of negotiation, as classifi cations in the machinery The QSE’s market capitalisation gained more than QR3bn or 0.58%, to QR562.66bn yesterday. well as for the determination of sector (25), trade classifi cations the source of origin for goods. in the transport sector (18), and Major features of the new HS an additional 32 amendments Nomenclature include envi- to trade classifi cations across ronmental and social issues of a variety of miscellaneous sec- global concern and are directly tors. relevant to the internationali- In the past, Tasdeer contrib- sation of the private sector. uted greatly to promoting the Tasdeer’s workshop dis- presence of Qatari exports in QSE gains on stronger cussed the new classifi ca- foreign markets through a wide tions in three key sessions: the range of activities and events, main features of the newest such as international exhibi- edition of HS Nomenclature, tions, bilateral trade coopera- the implementation of the HS tion programmes, and training Nomenclature 2017 as it ap- workshops. plies to the setting of new tariff QDB’s workshop on HS No- buying support from rates and statistical data, and menclature 2017 is the latest the implications on operators in a series of exports-related involved in the international training sessions in which marketplace. Tasdeer has empowered lo- Tasdeer executive director cal companies to become more Hassan Khalifa al-Mansoori competitive in regional and in- said: “Through the organisa- ternational markets. tion of Tasdeer’s newest train- Tasdeer is gearing to pro- foreign institutions ing and awareness session, we mote local manufacturers in a aim to introduce the new inter- number of international exhi- By Santhosh V Perumal gaining faster than the main goods were down 0.02%. More Council) institutions’ net selling volume to 2.35mn shares to more national classifi cation system bitions, including Big 5 Saudi, Business Reporter index on the bourse, where do- than 64% of the stocks extended also rose to QR39.68mn against than double value to QR62.97mn to Qatari exporters so that they an expo that focuses on the mestic and Gulf institutions as gains with major movers being QR22.02mn on March 20. on more than doubled transac- may retain their competitive- construction industry, which well as Gulf retail investors were Commercial Bank, Masraf Al Non-Qatari individual in- tions to 823. ness in the rapidly-developing will be held at Jeddah Cen- tronger buying support increasingly into profi t book- Rayan, Alijarah Holding, Oore- vestors turned net sellers to the The banks and fi nancial serv- international marketplace and tre for Forum and Events from from foreign institutions ing and non-Qatari individuals doo, Qatar Industrial Manu- tune of QR4.43mn, compared ices sector’s trade volume shot thrive therein.” March 27 to 30. Syesterday extended the turned bearish. facturing, Mazaya Qatar, Gulf with net buyers of QR5.42mn the up 36% to 5.64mn equities, val- bullish spell on the Qatar Stock Trade turnover and volumes International Services, Aamal previous day. ue by 47% to QR234.59mn and Exchange for the second day and were on the increase on the Company, Qatar Electricity and The GCC retail investors’ deals by 92% to 2,455. its key index gained more than bourse, where banking, real es- Water, Barwa and Gulf Ware- net profi t booking strength- The market witnessed 24% 78 points to inch near the 10,500 tate and telecom sectors togeth- housing. ened perceptibly to QR2.36mn jump in the insurance sector’s level. er accounted for more than 82% Nevertheless, among the los- against QR2.01mn on Monday. trade volume to 0.26mn stocks Telecom and banking of the total volumes. ers were Industries Qatar, QIIB, Total trade volumes rose 30% to more than double value to counters witnessed higher than Market capitalisation gained Qatar First Bank, Al Khaliji and to 13.54mn shares, value by 35% QR18.59mn but on 6% fall in average demand, which led the more than QR3bn or 0.58% to Medicare Group. to QR502.92mn and deals by transactions to 118. 20-stock Qatar Index to rise QR562.66bn. Non-Qatari institutions’ 42% to 6,094. The industrials sector’s trade 0.76% to 10,485.53 points with The Total Return Index rose net buying rose signifi cantly There was 50% surge in the volume rose 19% to 1.28mn passive funds making way into 0.76% to 17,348.37 points, to QR163.3mn compared to transport sector’s trade volume shares, while value declined 8% Qatar, a day after FTSE Russell All Share Index by 0.67% to QR133.94mn on March 20. to 0.63 equities, 7% in value to to QR75.62mn and deals by 5% completed its second tranche of 2,944.93 points and Al Rayan Is- Local retail investors’ net QR20.9mn and 19% in transac- to 983. transitioning Qatar into second- lamic Index by 0.78% to 4,160.55 profi t booking fell considerably tions to 326. The real estate sector reported ary emerging market status. points. to QR3.52mn against QR31.42mn The consumer goods sec- 18% increase in trade volume to Local retail investors’ sub- The telecom sector saw its the previous day. tor’s trade volume soared 41% 3.13mn equities, 18% in value to stantially weakened selling index gain 2.01%, banks and fi - However, domestic institu- to 0.24mm stocks, value by less QR73.18mn and 16% in transac- pressure also helped the market, nancial services (0.84%), indus- tions’ net selling increased sub- than 1% to QR17.07mn and deals tions to 1,042. QDB’s workshop on HS Nomenclature 2017 is the latest in a which posted 0.47% year-to- trials (0.67%), realty (0.46%), stantially to QR113.16mn com- by 11% to 347. In the debt market, there was series of exports-related training sessions in which Tasdeer has date gains. transport (0.32%) and insur- pared to QR84mn on Monday. The market saw 37% expan- no trading of treasury bills and empowered local companies to become more competitive in Islamic stocks were seen ance (0.13%); while consumer The GCC (Gulf Cooperation sion in the telecom sector’s trade government bonds. regional and international markets. Gulf stocks rise in quiet trade; Egypt declines QNB wins ‘Most Innovative

Abu Dhabi is Gulf’s top performer; trade as the insurance sector tumbled. Aldar Properties climbs after Saudi Indian Company for Cooperative AGM; Dubai’s trading volume is Insurance slumped 8.7% after the board Marketing Programme’ award lowest this year; Saudi loses steam proposed reducing its capital to help cut as insurance, telecom weigh; accumulated losses and support growth NB has won the ‘Most In- are pleased to see the efforts of our Egyptian Chemical Industries up plans. novative Marketing Pro- partners in developing products on land sale plan Several Saudi insurance companies have Qgramme’ award at the ‘2017 that offer customers the highest announced plans to reduce losses, but Mastercard Mena Leadership Forum’ level of convenience, safety, and Reuters many investors expect there could be held recently in London. security, while also strengthening Dubai mergers in the near future because of QNB is the only bank from Qatar Mastercard’s reach to a wider con- tough competition, especially amongst to win an award at the event. The sumer base,” said Khalid Elgibali, health insurers, which are dominated by award was presented to QNB for its division president, Mena, Master- Gulf stock markets were mostly higher BUPA Arabia, whose shares closed flat. campaign launched last year, the card. yesterday, buoyed by firm global equities, Telecommunications operators were also ‘Luxury Watches’ campaign. The forum, which brought to- although trading volumes were generally laggards, with Zain Saudi dropping 1.2%. Hosted by Mastercard, the forum gether more than 60 attendees from thin and the Egyptian bourse fell on profit Egypt lost 0.9% to 12,905 points in very brought together executives from QNB is the only bank from Qatar to win an award at the ‘2017 Mastercard across the Middle East and Africa taking. thin trade, with the largest listed bank a number of leading banks in the Mena Leadership Forum’. region, featured a packed agenda of Abu Dhabi was the top performer, Commercial International Bank down 1.8%. region to discuss the future of the industry sessions led by senior Mas- climbing 1.2% to 4,513 points on strong But export related shares were stronger, payments industry and celebrate the UEFA 2017’ campaign, which runs gathering of banking offi cials and tercard executives. banking shares, with National Bank of with Juhayna Food Industries and success of fi nancial organisations until April 22, will see four packages payment experts who discuss the QNB is continuously expanding Abu Dhabi up 1.9%. Aldar Properties Arabian Food Industries each jumping by in maximising the reach of Master- being given out to the lucky winners. need to respond to the evolution to build relationships with its cus- rose 1.3% after its chairman Abubaker al- their 10% daily limit. Shares that depend card’s solutions and programmes The packages include business-class of the fi nancial industry towards a tomers and satisfy all their banking Khoori told shareholders late on Monday on exports have been outperforming in among their customers. fl ight tickets, a six-day stay in Lon- stronger digital focus’’ said Heba needs. The bank also continues to of plans to increase its operating income recent days as the pound has weakened QNB and Mastercard have part- don, a private shopping experience, al-Tamimi, general manager, QNB deliver the most innovative products to Dh2.2bn ($599mn) in 2020 from the against the US dollar. nered on multiple strategic cam- and a unique private jet transfer be- Group Retail Banking. and services locally and internation- current Dh1.6bn. Egyptian Chemical Industries gained paigns during the past year with the tween London and Cardiff for the “We congratulate QNB on win- ally. Dubai edged up 0.5% to 3,495 points 2.0% after it said it has inviting bids to aim of rewarding their mutual cus- ‘2017 UEFA Champions League’ fi nal ning the ‘Most Innovative Market- The QNB Group is present through in its lowest volume this year as Shua buy six plots of land which it owned in tomers with unique prizes and expe- match. ing Programme’ award and applaud its subsidiaries and associate com- Capital, which confirmed last week that Aswan. riences. Both the parties have jointly ‘‘We are proud to win this prestig- their efforts in successfully im- panies in more than 30 countries it was in preliminary talks to merge with Elsewhere in the Gulf, the Kuwait index launched many successful products, ious award from Mastercard. This is plementing their unique solutions across three continents, providing GFH Financial, added 1.6%. gained 0.2% to 6,881 points, the Oman services, and campaigns, including another testimony that QNB off ers in their respective markets. As a a comprehensive range of products GFH was flat. index fell 0.7% to 5,630 points and the the ‘Luxury Watches’ campaign, the the best-in-class products and cam- whole, the region offers tremen- and services. QNB Group staff ex- Saudi Arabia fell 0.1% to 6,913 points, Bahrain index dropped 0.6% to 1,366 Summer campaign, and the UEFA paigns to its customers. The ‘Mas- dous potential for the develop- ceeds 28,000, operating through losing momentum in the final hour of points. Champions League campaign. tercard Mena Leadership Forum’ ment of a highly-innovative pay- 1,200 locations with a network of This year’s ‘QNB Mastercard has proven to be a highly-productive ments and financial sector, and we 4,300 ATMs.