SON REINS | Page 5 CARNEY SAY | Page 12 HK tycoon Modest BoE Li Ka-shing ‘rate hikes steps down needed’

Friday, May 11, 2018 Sha’baan 25, 1439 AH TRUST DEFICIT : Page 3 GULF TIMES Dubai fi rm rattles Mideast dealmaking BUSINESS with ‘misused funds’ Ministry of Transport to open Milaha offices Qatar’s stock market in Iraq’s Umm Qasr port QNA Doha

The Ministry of Transport and Communications announced it will soon be opening off ices aff iliated to more sensitive to large Milaha in Umm Qasr Port in Iraq. The off ices aim to facilitate the maritime flow between Qatar and Iraq, a step coming in harmony with the great development of relations between Qatar and Iraq, especially that the Qatari-Iraqi relations are approaching an important stage of bilateral co- operation at all levels in order to benefit the people of oil price changes: IMF both countries. A statement issued by the Ministry highlighted the By Santhosh V Perumal results of the meeting between HE the Minister of Business Reporter Transport and Communications Jassim Seif Ahmed al-Sulaiti and Iraq’s Transport Minister Kazem Finjan during his visit to Doha in April. atar’s stock market is more sensi- The meeting resulted in fruitful cooperation in the tive to large oil price changes than to areas of shipping, ports and aviation. Qsmall ones, even as the Gulf Coop- The statement said the results of the meeting quickly eration Council (GCC) bourses do not have came into eff ect by launching the new direct maritime similar sensitivities to oil price changes, ac- shipping line between Hamad Port and Umm Qasr cording to an International Monetary Fund port on May 7. (IMF) working paper. The shipping line was announced during the meeting “When testing for the asymmetry relat- to help open wide horizons of mutual co-operation ing to the magnitude of oil price changes, and promote trade and economic relations between we fi nd that stock return sensitivities are both countries. signifi cantly higher for large oil variations It also aims to provide more flexibility for clients and in Oman and Qatar,” the IMF working paper Iraqi partners through providing wider coverage of said. ports and lessening shipping duration. These dissimilarities, in terms of stock market reactions, confi rm that the GCC countries still diff er in their levels of oil de- pendency, especially in their eff orts to di- versify their economies through structural Qatar stresses support for WTO reforms, it said. multilateral agreements Highlighting the presence of heterogene- ous profi les in the GCC equity markets after examining the asymmetry with respect to Qatar, as an adherent to a 40-member group led by Swit- oil price change’s magnitude; it said “more zerland, has stressed its full support for the WTO and the specifi cally, we fi nd that Omani and Qatari multilateral agreements. stock markets exhibit higher sensitivities to Recently, Qatar participated in the General Council large oil price changes than to small ones.” meeting of the World Trade Organisation at the WTO’s The signifi cant asymmetries in the rela- headquarters in Geneva, Switzerland. tionships between oil prices and stock mar- The 40-member group voiced concerns over growing kets in some GCC countries (Kuwait, Oman, trade tensions and the risks associated with the multi- and Qatar), but not in others (Bahrain, Saudi With respect to the long-term eff ects of oil price changes, the estimations reveal positive correlations between stock return responses and lateral trading system and global trade amid recently Arabia, and the UAE), means investors the magnitudes of oil price changes in Oman and Qatar, according to the IMF. PICTURE: Noushad Thekkayil increasing trade protection measures and countermeas- should exercise more caution when deciding ures between a number of countries. on the compositions of international stock adherence to the exchange rate peg, particu- responses and the magnitudes of oil price The sensitivity of stock return to price The group called on all parties to resolve their diff erences portfolios, it suggested. larly through public expenditure policy, and changes in Oman and Qatar. decline is likely to improve while oil price through dialogue and co-operation within the framework In the GCC equity markets, most stocks in view of the fl edgling taxation system. The GCC region holds 30% of the world’s declines, insofar as market participants of various WTO bodies. are held in domestic non-oil companies and The working paper said the ongoing and crude oil proven reserves and represented expect a higher probability of an adverse Qatar is the only Arab country to join the 40-member therefore, from a policymaker’s viewpoint, expected structural reforms are important, roughly 34% of world oil exports in 2016. impact on non-oil growth due to fi scal ad- group of the WTO, and was one of the founding countries stabilising the impact of oil price change on insofar as they serve to reduce stock market Equity returns fall to the extent that mar- justment. of the organisation, which it joined in 1996. non-oil growth is key, according to the pa- returns’ sensitivities to oil movements. ket participants expect an adverse impact on That impact is tempered, in that the fi s- Qatar hosted the WTO Fourth Ministerial Conference in per. With respect to the long-term eff ects of non-oil growth, of which the expected fi scal cal adjustment is complemented by reforms 2001, when the Doha Development Agenda (DDA), which The main channel for such stabilisation oil price changes, the estimations reveal adjustment (especially government spend- that diversify the economic base and in- is the centrepiece of the ongoing WTO negotiations, was has been fi scal policy, given the GCC group’s positive correlations between stock return ing) is a key determinant. crease non-oil growth resilience over time. launched. BT to cut 13,000 jobs as it tackles bloated legacy

Reuters while trying to keep regulators, pension the London Stock Exchange in the City London fund trustees and investors on side. of London since it was privatised in 1984 On top of that, fraud was discovered in but will now move to smaller premises in Italy while the group was also blindsided the capital. T will cut 13,000 managerial and by a downturn in corporate and public “If we compare how we manage the back-offi ce jobs and move to a sector markets, undermining confi dence business with our peers, we’re frankly Bsmaller London base in the latest in his leadership. too complex and overweight. This is a attempt by the boss of Britain’s biggest Patterson, 50, tried to placate share- big deal,” said Patterson. telecoms group to rebuild from an ac- holders by maintaining the dividend The convergence of diff erent tech- counting scandal and multiple pressures yesterday — and pledging to keep it fl at nologies means BT has faced growing on its business. for the next two years — and he also competition from nimble young rivals Chief executive Gavin Patterson said agreed a new pension funding plan to including Sky which has expanded from radical action was “absolutely critical” plug its £11.3bn defi cit. being a pay TV company to off er a range to ensure BT could deliver the next-gen- Bernstein analysts called the update of broadband services. eration fi bre and mobile networks Brit- “disappointing.” One top-50 investor said there was ain needed. “BT has now fi rmly gone from being no question Patterson was under pres- “We need to make ourselves more ef- a reasonably predictable growth story, sure, but it was not clear how replacing fi cient, we need to create oxygen within an outlier in the incumbent landscape the chief executive would change the the business,” he told reporters yester- across Europe, to becoming a cost re- dynamics. day. structuring story,” they said. “Any growth option they pursue is Despite outlining measures to save “Quite a remarkable shift in fortunes potentially going to have no return on £1.5bn ($2bn) a year by 2020/21, the ini- with an outlook that is well shy of our it because the regulator just wants to tial market reaction was negative. expectations.” regulate your returns away from you,” A failure to hit a revenue target over Traders said guidance for the current the shareholder said. “Pretty much the the latest three months and a disap- financial year was lower than expected, only thing you can do is to attack your pointing outlook for no profi t growth for while fourth-quarter revenue fell short cost base.” a couple of years sent BT shares down of targets, showing the challenges fac- Under Patterson’s leadership, BT has 9% to fi ve-year lows. ing Patterson as he seeks to rebuild a had a fractious relationship with the Losing long-standing fi xed-line voice group that employs more than 100,000 regulator Ofcom. revenue, many legacy telecom fi rms have staff. Patterson, who previously worked at expanded into more profi table areas. BT, which owns Britain’s biggest mo- consumer goods group P&G and cable AT&T in the US is trying to buy enter- bile operator EE, said it would hire about TV company Telewest, said the hit from tainment group Time Warner while BT’s 6,000 new engineers and front line cus- regulation would double from about own push into sports broadcasting was tomer service staff to support its roll out £500mn to £1bn a year as new controls designed to defend its customer base. of fi bre and 5G networks. on its faster wholesale broadband kick Since he took the top job in 2013, Pat- Around two-thirds of jobs cuts will in. terson has spent billions of pounds on fall in Britain. “My biggest concern is more that they sports rights, network investment and The company has been based at the need to clear the air with the regulator,” Chief executive Gavin Patterson said radical action was “absolutely critical” to ensure BT could customer service improvements, all BT Centre, near St Paul’s Cathedral and the investor said. deliver the next-generation fi bre and mobile networks Britain needed Gulf Times 2 Friday, May 11, 2018 BUSINESS

‘Opec in no hurry to decide if extra oil needed to offset Iran’

Reuters US sanctions on Iran will have a six-month as the more likely to be reduced by the citing Iran’s ability to keep much of its London/Dubai period during which buyers should “wind sanctions. exports flowing under a previous round of down” oil purchases, meaning any loss of “It’s too early to know now the impact,” sanctions. “Too early to judge,” he said. supply will not be immediately felt in the said a third Opec source. “We need to wait On Wednesday, a separate Opec source Opec is in no hurry to decide whether market. and see what China will do, what Japan had said Saudi Arabia was monitoring to pump more oil to make up for an “I think we have 180 days before any will do. Who will buy Iranian oil and who the impact of the US move on oil supplies expected drop in exports from Iran after supply impact,” an Opec source said when will side with Trump.” and was ready to off set any shortage but the imposition of new US sanctions, four asked about any plans for action. As part of the supply deal, Opec pledged would not act alone. sources familiar with the issue said, saying A second Opec source said that, while to cut 1.2mn bpd from supplies from its This source had also said the impact of US any loss in supply would take time. the need to add extra supply was being members. sanctions on Iranian supplies needed to The Organization of the Petroleum considered, the safest thing for the group In practice, the group has overshot this, be assessed first and Saudi Arabia did not Exporting Countries has a deal with Russia to do for now was to sit tight and monitor partly because Venezuelan output has expect any physical impact on the market and non-Opec producers to cut supplies the situation. plunged due an economic crisis. until the third or fourth quarters. that has helped erase a global glut and Oil reached $78 a barrel yesterday, its Oil ministers from Opec and its partners Analysts also expect Saudi Arabia to be boosted oil prices to their highest since highest since November 2014, two days meet on June 22-23 in Vienna to review cautious and step in only to off set an 2014. after President Donald Trump said the US the existing agreement. actual supply loss, not an anticipated one. Off icials are considering whether a drop was abandoning an international nuclear Before that, technical off icials meet in “Saudi will remain reactive and not pre- in Iranian exports and a decline in supply deal with Iran and would impose new Jeddah, Saudi Arabia, on May 22-23 when empt forward fundamentals. If a supply from another Opec member, Venezuela, sanctions. the issue of whether extra barrels are dislocation emerges and inventories get demands adjusting the deal that runs to Iran, which pumps about 4% of the world’s needed to off set any Iranian loss will likely abnormally low, then Opec and Russia Offi cials are considering whether a drop in Iranian exports the end of 2018. oil, exports about 450,000 bpd to Europe come up, the second source said. may act,” said Yasser El Guindi, market and a decline in supply from another Opec member, Ministers meet in June to review the and around 1.8mn bpd to Asia. A fourth Opec source also said it was strategist at Energy Aspects. “People are Venezuela, demands adjusting the deal that runs to the end policy. Sales to Europe are seen by analysts too soon to tell if extra oil was needed, putting the cart before the horse.” of 2018

Dollar shift Oil sales, bank woes: Can Iran’s off ers little comfort economy survive Trump exit? to Iran Bloomberg Tehran/Dubai Bloomberg Dubai Whatever steps Iranian leaders take after Donald Trump’s decision to withdraw from the nuclear accord, none will be more criti- ran has cut its reliance on the cal to domestic stability than their eff orts to dollar by selling oil for euros minimise the economic damage. Iand other currencies, but The currency is plunging, banks are that doesn’t off er much protec- struggling with bad loans and the loom- tion after Donald Trump pulled ing return of broad US sanctions mean the US from the nuclear deal. European companies, many already on The US president announced the fence, will likely decide it’s too risky to his decision this week, the cul- invest in the Islamic Republic. A significant mination of years of criticism loss of oil revenues would hit state coff ers during which Trump derided the hard and present a challenge for President 2015 Obama-era agreement as Hassan Rouhani, who won two elections “a disgrace” and “insane.” Once promising to end Iran’s isolation and revive the withdrawal takes eff ect, US its economy. fi nancial penalties on buyers “The next few months will be very, very of Iran’s crude oil will be reim- hard for the Iranian economy,” said Henry posed. Smith, lead analyst at Control Risks in In a bid to protect its econ- Dubai. “It’s hard to see it any other way. omy from currency turmoil in The saving grace would be if there’s some the run-up to the decision, Iran type of mechanism put together to manage sought to curb its dollar usage. some of the secondary sanctions.” But most of the early steps were Pratibha Thaker, editorial director for the symbolic. However, it now re- Middle East and Africa at the Economist ceives payment for most oil sales Intelligence Unit, predicted Iran will go in euros, with some shipments into recession next year. Trump aims to to China and South Korea being “cripple” an economy that’s already weak paid for in those countries’ cur- and had “only turned the corner slightly in rencies, said Hossein Zamaninia, the last couple of years since the deal was Iran’s deputy oil minister for in- signed,” she said. ternational and commercial af- Those who lobbied Trump to nix the deal fairs. argued that delivering a major blow to the But since Trump went after economy could force Tehran to roll back its Iran’s oil sales, “the type of cur- regional presence and stop developing bal- rency Iran receives can’t save its listic missiles. Iranian leaders have said they export volumes,” said Sara Va- won’t compromise on national security, and khshouri, head of Washington- Iranians largely blame the US for not abid- based consultancy SVB Energy. ing by the deal it spent years negotiating. “Receiving payments in euros These are the main areas of the economy only partially immunises Iran’s that could be aff ected as the standoff oil exports from US sanctions.” develops. Opec’s third-largest oil pro- Oil, oil, oil ducer is exporting about 2.5mn barrels of crude and conden- The biggest impact on government rev- sate daily, more than double the enues will come from the expected drop in volume it sold when sanctions oil sales after the US gave companies 180 were at their tightest from 2012 days to extricate themselves from Iranian Iranians look at the sun setting over a shipwreck in Iran’s southern resort island of Kish (file). Whatever steps Iranian leaders take after Donald Trump’s decision to through 2015. energy deals. But Iran is unlikely to suff er withdraw from the nuclear accord, none will be more critical to domestic stability than their eff orts to minimise the economic damage. By tightening sanctions, banks as badly as it did under sanction-regimes will have to stop issuing letters of imposed before the 2015 deal because, this month announced the euro would become them than the declining value of the cur- clothing, adding that he may have to close Thaker. “They didn’t restructure the banks credit for oil contracts, or ena- time, the US is going it alone. its reference currency. But the switch off ers rency. The rial weakened to about 69,000 if the rial crisis persists. “I just don’t want us even during when the sanctions were lifted bling payments for crude to be Opec’s third-largest oil producer, Iran is limited protection for European companies against the dollar on the black market after to get to the stage where we’re forced to in last two years,” she said. “It doesn’t hap- hedged against fl uctuations in currently exporting about 2.5mn barrels that are enmeshed in the global banking Trump’s announcement, from about 55,000 take food from each other.” pen overnight.” the euro-dollar exchange rate. of crude and condensate daily, more than system, according to economists and sanc- per dollar last week, a 25% drop, according Banking crisis? Foreign investments Existing US economic sanc- double what it sold when multilateral tions experts. to three unlicensed traders in Tehran. tions have already hobbled the sanctions were at their tightest from 2012 “Receiving payments in euros only partially Infl ation Iran has also been struggling to avoid a Uncertainty over the nuclear deal since Iran deal, putting off many in- through 2015. A recent Bloomberg survey immunises Iran’s oil exports,” said Sara banking crisis. Years of poor regulation Trump’s election has kept many European vestors who fear running foul of predicted Iran could lose up 500,000 bpd Vakhshouri, head of Washington-based If oil revenues fall and foreign investment since the financial services industry was companies away. In that sense, Iranians the penalties. That’s dented sup- in output when US measures snap back. consultancy SVB Energy. dries up, currency pressure could fuel opened to private lenders in 2004 allowed have less to lose than many expect. port for the accord in Iran, pre- Iran’s biggest buyers, including China, will Currency crisis higher prices. Inflation has dropped from banks to proliferate with little oversight. “As a result of the very hostile rhetoric senting conservative opponents likely oppose the US move and look for above 40% in 2013, when Rouhani was Loans at risk of default soared and liquidity toward the deal and the repeated threats of President Hassan Rouhani ways to avoid secondary sanctions that put Even before Trump withdrew from the pact, first elected, but still hovers around 10%. was squeezed after oil prices tumbled in to pull the US out, there’s no doubt that a with a line of attack. An Ameri- banks, shipping companies, refiners, insur- Iran’s rial was plunging. The central bank Unemployment is 12% and further hardship 2014. The foreign investment promised lot of companies that had been considering can withdrawal will embolden ers and ports at risk of losing access to the has vowed to eliminate a burgeoning black could fester into political anger. by the nuclear deal didn’t live up to the those types of activities but were on the them. European nations – along global banking system by trading with Iran. market but with licensed foreign-exchange “I opened this shop last August when this hype. The International Monetary Fund has fence ultimately decided not to go for- with other agreement signa- In an eff ort to shield its economy, Iran traders now closed, dollars are increasingly precinct opened and thought the situation repeatedly called on authorities to urgently ward,” said Andrew Keller, partner at Hogan tories Russia and China – have had already switched to trading its oil in hard to obtain. Local businesses say the would get better and the market would recapitalize and restructure lenders. Lovells law firm which advises companies vowed to defend the hard-won currencies other than the dollar and last shortage could prove more devastating for improve,” said Reza, 48, who sells men’s That takes time though, said the EIU’s on sanctions compliance. diplomatic achievement but that won’t be easy. QSE extends losses to 3rd day on strong sell pressure

By Santhosh V Perumal mestic and Gulf funds rather damp- consumer goods (0.98%), banks and QR12.33mn against QR1.4mn on May with sellers of QR0.29mn the previous ume to 2.86mn shares, 92% in value to Business Reporter ened sentiments in the market, which fi nancial services (0.94%) and re- 9. day. QR91.55mn and 43% in deals to 1,308. is however up 2.65% year-to-date. alty (0.04%); while transport gained Domestic institutions’ net sell- Total trade volume more than dou- The real estate sector’s trade volume Selling was seen more pronounced 0.29%. ing strengthened considerably to bled to 11mn shares, value soared 54% expanded 45% to 0.97mn equities, val- he Qatar Stock Exchange re- within large cap segments in the More than 59% of the traded QR12.03mn compared to QR8.98mn to QR237.2mn and transactions by 30% ue by 24% to QR14.22mn and transac- mained under the bearish spell bourse, whose capitalisation eroded stocks were in the red with major on Wednesday. to 4,052. tions by 39% to 496. Tfor the third consecutive day 1.01% to QR482.39bn. losers being Ooredoo, Industries Gulf institutions’ net profi t-booking The telecom sector’s trade volume The industrials sector’s trade vol- yesterday and lost 75 points to settle Trade turnover and volumes were on Qatar, Aamal Company, Mesaieed grew perceptibly to QR3.58mn against more than tripled to 4.84mn equi- ume increased 35% to 1.39mn stocks, below 8,800 levels. the increase in the market, where the Petrochemical Holding, Gulf Inter- QR2.72mn the previous day. ties and value more than doubled to while value fell 3% to QR37.41mn de- Strong selling – especially at the tel- telecom and banking sectors together national Services, Qatar Insurance, However, local individual inves- QR54.46mn on 19% jump in deals to spite 32% higher transactions at 843. ecom, industrials and consumer goods accounted for 70% of the total volume. Doha Bank, QNB, Woqod, Widam tors’ net buying grew substantially to 567. There was a 17% rise in the con- counters – drove the 20-stock Qatar The Total Return Index fell 0.85% Food, Nakilat and Mazaya Qatar; QR20.04mn compared to QR14.65mn The insurance sector’s trade vol- sumer goods sector’s trade volume to Index down 0.85% to 8,749.65 points. to 15,415.91 points, the All Share Index whereas Dlala, Islamic Holding on May 9. ume more than tripled to 0.4mn stocks 0.17mn shares but on a 6% fall in value Masraf Al Rayan and Doha Bank by 0.09% to 2,559.4 points and the Al Group, Al Khaleej Takaful, Commer- Non-Qatari individuals turned net and value more than quadrupled to to QR21.8mn and 13% in deals to 373. sponsored exchange traded funds, Rayan Islamic Index (Price) by 0.69% cial Bank, Ahlibank and Milaha were buyers to the tune of QR7.19mn against QR13.25mn on almost-tripled-trans- However, the transport sector’s trade QATR and QETF, reported 5.64% and to 2,186.05 points. among the gainers. net sellers of QR1.28mn on Wednesday. actions to 283. volume plummeted 42% to 0.26mn 0.62% declines respectively. The telecom index tanked 2.01%, Non-Qatari institutions’ net prof- Gulf individuals were also net buyers The banks and fi nancial services equities, value by 35% to QR4.5mn and Increased net selling by foreign, do- industrials (1.17%), insurance (1.15%), it-booking increased infl uentially to to the extent of QR0.74mn compared sector saw a 77% surge in trade vol- transactions by 15% to 182. Gulf Times Friday, May 11, 2018 3 BUSINESS Dubai PE firm rattles dealmaking in Mideast with alleged misused funds

Investors allege Abraaj misused funds; executives fear fallout may hit nascent industry in the region

Bloomberg Dubai/London

It’s troubling for any asset manager, but this dispute has the potential to damage a region. Allegations that one of the biggest and oldest private equity firms in the Middle East misused client money – including from the Bill & Melinda Gates Foundation and the World Bank – have sent shock waves through the ranks of local dealmakers. The firm, Dubai’s Abraaj Group, has shaken up its top ranks, cut dozens of jobs and hired outside help to probe the matter and patch up relations with clients, but the fallout may just start to ripple through. Since the allegations surfaced in February, private equity deals and fundraising in the region, which had already been slowing, have come to a halt, according to interviews with about a dozen financial industry executives. The issue has hurt the region’s reputation and threatens to bring back concerns about a lack of transparency that had kept some investors away, they said, asking for anonymity because the matter is sensitive. “The true impact of the Abraaj situation is one of reputational capital,” said Karim A Souaid, managing partner of Growthgate Capital, a private investment firm operating in the region. It “will impact the appetite of fund investors to commit, and the capabilities of fund managers to raise capital.” At the heart of the contention is how Abraaj used some client money in a $1bn health-care fund. The Middle East’s largest buyout firm says everything is properly accounted for and that some unused capital from the fund – it didn’t say how much – was returned to investors. It said a discrepancy between money it collected from investors and the amounts it invested Abraaj founder Arif Naqvi speaks during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on January 22, 2016. The firm manages almost $14bn for institutions and supranational was due to delays in projects, and that agencies from the US, UK and other countries. Naqvi had become a regular at the World Economic Forum in Davos. That’s precisely why the allegations are so damaging for the broader industry, said one the agreement with clients allowed it top dealmaker in the region. to hold on to the cash until it could be put to use. of Abraaj, the company has suspended aff ected investor appetite more broadly by the Abraaj issue, simply because that is run by firms based in the Middle particularly among institutions, that “At Abraaj, our focus remains new investments, undertaken a review as well as dealmaking, this person said. Abraaj is so large. Another person, an East, according to Preqin. such issues are widespread in the on working collaboratively with of its corporate structure and put the Data provided by Preqin Ltd show that executive at a regional private equity The industry in the region has region, which could impact fundraising, our investors, completing the re- fund unit up for sale. The firm is in talks since the start of the year, only one firm that has looked at co-investing been stunted by significant gaps said several executives. While most organisation of the firm to ensure long- to sell a majority stake in the division to Middle East-based private equity- with Abraaj, said investors already had in the region’s legal and regulatory regional funds have raised enough term growth, and partnering closely Colony NorthStar Inc to help stabilise backed buyout deal occurred. The very small allocations to the region frameworks, particularly in areas of commitments in recent years to keep with our partner companies to create the business and raise cash, people figure doesn’t include venture capital and this will make things worse. That investor protection and corporate going for now, investors will be doing value,” the company said. “We are with knowledge of the matter said this transactions and compares with seven person and others say they have governance. Bankruptcy laws are also a lot more due diligence and paying confident of the long-term resilience week. deals last year. Deals had been slowing received calls from investors in Europe still just developing, making it tricky more attention how Mideast firms of the economies we operate in which Abraaj is considered one of the for three straight years as the region’s and the US asking questions about how to deal with situations where portfolio operate, said one top off icial. are supported by a thriving regional developing world’s most influential economy grappled with the impact of the company is run in the wake of the companies fail. Abraaj has hired investment bank eco-system, a mature private equity investors. The firm manages almost low oil prices. Abraaj troubles. The business landscape in the Middle Houlihan Lokey Inc for assistance in industry, and the long-term interests $14bn for institutions and supranational Fundraising by Middle East-focused Private equity, which lets big East is also primarily relationship- negotiations with investors, and held of global investors who continue to agencies from the US, UK and other private equity has come to a halt, with institutions and wealthy individuals based, which does not facilitate the talks last month with some of them. view growth markets as attractive countries. Its founder Arif Naqvi no funds closing in the first four months invest in companies and assets that transparency that global investors seek. “What they did seems to be allowed by investment destinations.” had become a regular at the World of the year, according to Preqin. aren’t publicly traded, is still a nascent “The region does have an issue with the limited partnership agreement, and Even if no rules were broken, the fact Economic Forum in Davos. Last year, a total of six funds closed, industry in the region, but one with transparency,” said Meziane Lasfer, a their’s seems standard,” said Ludovic that such large, renowned investors That’s precisely why the allegations are though the aggregate amount raised the potential to bring large amounts professor of finance at Cass Business Phalippou, author of ‘Private Equity see a reason to be leery of their so damaging for the broader industry, was only around $144mn. Fundraising of capital needed to help transform School of City University of London. Laid Bare’ and a faculty member of the money manager – and hire their own said one top dealmaker in the region. peaked in 2012, when investors economies that are still reliant on “But hopefully this case will highlight Said Business School at the University accountant to probe the matter – is Abraaj is a blue chip company among committed $2.9bn in total. oil. Worldwide, private-equity firms the need for better governance and of Oxford. “Still, given that Abraaj is an severely damaging for a business that the private equity firms in the Middle One industry executive who is currently oversee about $3tn for clients such disclosure.” ambassador of private equity in the at its core depends on the trust of East, so the impact extends far beyond seeking to raise a venture capital fund as pension funds, endowments and The risk is that the Abraaj dispute Middle East, it will negatively impact clients. Since the questions were asked the firm. The concerns have already said those plans have been impacted sovereign investors. Less than $18bn of deepens investor perceptions, the other firms in the region.”

Bloomberg QuickTake Q&A What led the Middle East’s top dealmaker to step down

By Arif Sharif firm’s $1bn healthcare fund focuses five to seven years, making it a highly Dubai “on improving care in the fields of non- illiquid investment. communicable disease and mother 3. What happened to the and child health in 10 cities, including money in question? The Middle East’s biggest private Lagos, Hyderabad, Karachi, and equity dealmaker has stepped aside Nairobi.” The fund owns 24 hospitals, Abraaj says it’s all properly accounted under a cloud of controversy. Arif 17 clinics and 30 diagnostic clinics for and that some unused capital Naqvi ceded control of the fund- across India, Pakistan, Nigeria and from its health fund – it didn’t management unit of his Abraaj Group Kenya with over 3,200 patient beds. say how much – was returned to in February on the heels of allegations 2. Who invests in its funds? investors. It dismissed questions over that money in the company’s health disappearing money as “inaccurate fund had been misused. Naqvi and Abraaj attracts investors, including and misleading” and said it worked the company denied any wrongdoing foundations, sovereign wealth funds with KPMG “to verify all receipts and and blamed unforeseen political and pension funds, pursuing higher payments made by the fund.” It said and regulatory hurdles for a delay returns alongside social goals. The the discrepancy between the money Even if no rules were broken, the fact that such large, renowned investors see a reason to be leery of in deploying the money. The fund, Bill & Melinda Gates Foundation, the it collected and the money it invested their money manager - and hire their own accountant to probe the matter - is severely damaging for a which invests in hospitals in some of World Bank’s International Finance was due to delays in its projects. The business that at its core depends on the trust of clients. Since the questions were asked of Abraaj, the the poorest countries in the world, Corp unit and two government-backed health fund also invests in greenfield company has suspended new investments, undertaken a review of its corporate structure and put the is a model for replacing aid with development finance organisations, and brownfield projects unlike fund unit up for sale accessible, aff ordable and quality CDC Group Plc and Proparco Group, standard private equity funds and health care using private financing. are among some two dozen investors so the timing of the deployment of retain a non-executive role on the fund 5. Who is Naqvi? Abraaj began raising money for its 1. What’s special about in Abraaj’s health fund, and they hired capital is less predictable, Abraaj said. division’s investment committee and health fund in 2015. Abraaj? a forensic accountant to examine what Retaining capital where an investment remain its chairman. Two younger A pioneer in the Mideast buyout 6. What’s next for Naqvi? happened to some of their money, is delayed also met the terms of the executives, Omar Lodhi and Selcuk market, Naqvi, 57, has been a conduit The 400-person firm has grown to the Wall Street Journal reported on fund’s limited partnership agreement, Yorgancioglu, become co-chief to the developing world for socially He will spend his time thinking become one of the largest private February 2. (The Seattle, Washington- it said. executive off icers of the fund manager. responsible global investors like about “how private capital can equity groups in the emerging based Gates Foundation is the 4. What changes has Abraaj No new capital commitments will Gates. Born in Karachi, Pakistan, serve the needs of communities markets – “growth markets,” as Naqvi world’s largest private philanthropic made? be made until the reorganisation is Naqvi graduated from the London that need it,” and how to achieve preferred to call them – with $13.6bn organisation.) Dutch health-equipment complete. Naqvi said in an interview in School of Economics, began his career social development goals, he said in assets under management. From its company Royal Philips NV, another It said it’s separating Abraaj Holdings, February that he’d outlined his plans in accounting at Arthur Andersen in the interview. He will no longer roots in the Middle East, Abraaj now investor in the health fund, said in the parent company, from Abraaj to transition from his role and separate LLP and worked in Saudi Arabia be involved in executing deals, invests in private equity, healthcare, a statement on February 5 that it Investment Management Ltd, which asset management from the holding for billionaire Suliman Olayan. He governance, reporting structures clean energy, lending and real estate “remains aligned with the fund’s manages the private equity funds. company in a January 2017 memo to founded Dubai-based Abraaj in 2002 and the day-to-day running across Africa, Asia, Latin America and eff orts and objectives.” Private-equity Naqvi will remain the chief executive staff . The moves were accelerated by and worked with Gates on healthcare of Abraaj’s fund management Turkey. According to its website, the investors usually commit capital for off icer of Abraaj Holdings. He will also the recent news reports, he said. projects in Africa and Asia since 2014. business. Gulf Times 4 Friday, May 11, 2018 BUSINESS

Philippine economic China’s ZTE teeters as growth surges; central bank US ban hits operations hikes rates AFP AFP Shanghai Manila

hinese telecom giant ZTE faces he Philippine economy a grim future after ceasing ma- was one of Asia’s best Cjor operations due to a US ban Tperformers in the fi rst on American sales of critical technol- quarter of 2018, data showed ogy to the company, raising the stakes yesterday, but concerns over in- in a trade spat between the world’s two fl ation pushed the central bank largest economies. to lift interest rates. The fi rm’s fate has added a new The 6.8% expansion, which source of tension to trade talks between tied it with China and was only the two countries after Chinese offi cials eclipsed by Vietnam, was boost- raised objections to the US ban dur- ed by a surge in government ing negotiations with their American spending under President Rod- counterparts in Beijing last week. rigo Duterte. ZTE’s fi bre-optic networks de- Philippine growth, which was pend on US components and its cheap 6.5% at the end of 2017, has now smartphones sold en masse abroad are come in at 6.5% or better for 10 powered by US chips and the Android successive quarters. operating system. “The Philippines remains one Without access to such technology, of the best performing econo- the company has been forced to partial- mies in the region,” Economic ly shut down. “Major operating activi- Planning Secretary Ernesto ties of the company have ceased,” ZTE Pernia told reporters. “If not for said in a fi ling on Wednesday. the... increase in infl ation, real Its dimming prospects could further GDP growth could have been sour discussions just as China’s top closer to the high end of our economic offi cial, Vice Premier Liu He, growth target of 7.8%,” he added. heads to Washington for another round As part of his “Build, Build, of negotiations next week. Build” initiative, Duterte has “The Trump administration has sent pushed spending to a record a clear signal to China through its at- high. He is taking aim at bridges tack on ZTE: compromise, make com- and public transit in a drive to promises” on trade, said Cheng Xiaohe, unclog Manila’s notorious traf- an international relations professor at fi c, while also building another Renmin University. international airport north of “Otherwise, we will kill you.” He the capital. However, infl ation added that the US is also investigating is at a fi ve-year high of 4.5% and another Chinese tech giant, Huawei. A People stand at ZTE’s booth during Mobile World Congress in Barcelona, Spain (file). The firm’s fate has added a new source of tension to trade talks between the two the central bank policy board telecom components buyer specialising countries after Chinese off icials raised objections to the US ban during negotiations with their American counterparts in Beijing last week. took action yesterday. in ZTE products said he had seen the ef- “The monetary board noted fects of the production halt ripple into to the fi rm arose from its skirting of US tion’s hardline trade demands. “This is scientists as he visited an IT fi rm last In Wednesday’s statement the fi rm that the latest forecasts have the market, with prices for available export controls by selling to banned ringing major alarms for China,” Cheng month, while offi cials confi rmed they said it still “maintains suffi cient cash” further shifted higher, indicat- ZTE goods jumping 50% or more. countries like North Korea and Iran said. were raising a huge new fund to invest and would continue to pay its debts. ing that infl ation pressures could “They’ve stopped production of all with employees documenting how to “If the trade problems aren’t re- in computer chips. Trading of its Hong Kong and Shen- become more broad-based over products that have chips in them,” said evade American oversight. solved, and a full-scale trade war ZTE said in the fi ling it is still “ac- zhen-listed shares has been halted the policy horizon,” the central Zhao, the buyer, who declined to give Those actions led to a $1.2bn fi ne last erupts, these high-tech companies will tively communicating” with the US since the US decision. bank said in a statement. his full name, adding that if produc- year, with the current export ban im- bear the brunt of it.” side “to facilitate the modifi cation or In a ZTE research and development The board raised the bench- tion completely stopped for a year, “all posed in April after ZTE allegedly failed The result is that Beijing has been reversal” of the ban, and hopes to “forge centre in Beijing, employees remained mark interest rate to 3.25% after ZTE’s gear will become scrap.” to live up to its agreement, lying about galvanised to push harder to develop a positive outcome”. at work, with a warning posted on the it had been at a record low of 3% Beijing has closely followed the de- the punishment of employees involved the technology the US is now denying On Sunday, the fi rm submitted a re- wall of their offi ce. since being reduced in June 2016. velopments around ZTE, a company in the sanctions skirting. to ZTE. quest to the US commerce department “Abide by the law, and strictly ob- The last rate hike was Septem- with 80,000 employees headquartered In Beijing, offi cials see the ban as part “China must rely on itself for core for a stay of the export ban, along with serve civic values,” the employee regu- ber 2014. Central bank deputy in southern China. The ban on US sales and parcel of the Trump administra- technologies,” President Xi Jinping told supplemental information. lation said. governor Diwa Gunigundo said the board had boosted its in- fl ation rate forecast for 2018 to 4.6%. Capital Economics ana- lysts warned rising prices, along with weak export growth and sluggish investment pose a risk Peace in N Korea seen costing $2tn if history a guide to the high-growth trajectory. “Looking ahead, while we expect the Philippines to re- Bloomberg many’s unifi cation, noting that trans- world to secure complete denucleari- appropriately could include escrow ac- move a hurdle to the Federal Reserve’s main one of the fastest growing Hong Kong fers from the West to East totalled more sation,” Jen and Freire wrote in a note. counts or specifi c projects, such as Chi- plan to raise interest rates further. economies in the region, growth than €1.2tn, or around €1.7tn using to- “We stress that we are not arguing that na’s Belt and Road Initiative designed to All told, a peaceful outcome should in 2018 is unlikely to match the day’s value. North Korea should or will demand build infrastructure. add to the case for an acceleration in 6.7% expansion seen last year,” ow much would it cost to keep By population, the relative size of such a large fi nancial assistance. The analysis is based on the assump- US infl ation, higher US interest rates, it said. Analysts had said they the peace on the Korean Pe- North Korea to South Korea is mean- We are merely thinking out loud tion that Korea is unifi ed. weaker global equities and emerging expected the central bank’s re- Hninsula? Around $2tn over ten ingfully larger than East Germany was about what the order of magnitude of If that doesn’t happen then trends markets and support for the dollar, ac- sponse but warned a rate hike years. to West Germany. North Korea is also that fi gure might be.” witnessed during Germany’s unifi ca- cording to the analysis. could hurt consumer spending. That’s according to Stephen Jen and much much underdeveloped compared One option could be a four way split tion won’t play out. “A denuclearised but permanently Pernia said last week that Joana Freire at Eurizon SLJ Capital Ltd to East Germany, which had a well es- of the bill between the US, China, Japan Still, geopolitical risk premiums underdeveloped North Korea would higher infl ation was due mainly in London who estimated what re- tablished industry base. and South Korea which would equate to should decline, which is a potential not permit lasting peace,” Jen and Freire to the “transitory” impact of sources would be needed to ensure a “Given the threat presented by the 1.7%, 1.6%, 7.3%, and 18.3% of each na- negative for safe-haven assets includ- wrote. “We thus assume that denu- a major tax reform law passed denuclearised North Korea is economi- nuclear arsenals, Kim Jong-un is in a tion’s gross domestic product over the ing Treasuries, Japanese government clearisation, if it happens, would come last year that increased the price cally viable. position to demand a very large fi nan- coming decade. bonds and the yen while it would boost with a price tag to ensure that North of fuel, alcohol and beverage They drew on the example of Ger- cial commitment from the rest of the Measures to ensure funds are spent South Korean equities. It would also re- Korea is economically viable.” products

Pakistan joins WTO bloc GM agrees to stake lock-in, make S Korea regional HQ to support multilateral Reuters The terms of the binding deal to be rea Development Bank (KDB) already have South Korean automakers for the develop- Seoul signed on May 11 seek to assuage some of a preliminary deal on $7.15bn of invest- ment of parts for electric and self-driving those concerns. ments, including $2bn of capital spending cars, and other key automotive parts. trading system As per the agreement, GM can’t sell by GM and a $2.8bn debt-for-equity swap “It was a very diff icult and a critical deci- General Motors will stay in South Korea for any of its 77% stake in GM Korea over the for existing loans GM Korea owes to its par- sion,” chairman of the financial watchdog at least 10 years and set up its Asia-Pacific next five years and can’t let it fall below ent, to rescue the unit. Financial Service Commission Choi Jong-ku Internews concerned about increased trade headquarters in the country, government 35% thereafter until 2028, South Korean As a sign of its long-term commitment, said at the briefing, adding the government Islamabad tensions and related risks for the off icials said yesterday, revealing terms of a Finance Minister Kim Dong-yeon told a GM plans to set up a new Asia-Pacific had to consider the risk to 156,000 jobs at multilateral system and world deal aimed at rescuing the US automaker’s press conference. headquarters in South Korea, although GM Korea and its suppliers, the eco-system trade. “We encourage WTO struggling GM Korea unit. The restriction on the stake sale was one that excludes China, the government said of South Korea’s car industry, as well as akistan yesterday joined members to refrain from taking The US car maker’s Korean unit averted of tools that will prevent GM from leaving yesterday. exports and local economies. a group of 41 developing protectionist measures and to a bankruptcy filing with a wage deal the South Korean market, Kim said. GM will also buy more parts from South Barry Engle, President of GM Interna- Pand developed countries avoid risks of escalation. clinched last month, but analysts and He also said the deal package “paved Korean suppliers for its overseas opera- tional, said yesterday that the automaker’s to support a multilateral trading We call on states to resolve customers, as well as the South Korean the way for GM to operate continuously tions, boosting procurement from about commitment to South Korea was long-term system for global economic sta- their diff erences through dia- government, have had doubts about GM’s beyond 10 years”, referring to concerns 2tn won ($1.85bn) a year at present, it said. and sincere, adding that although there bility, prosperity and develop- logue and co-operation, includ- commitment and about how long the loss- that GM may leave after 10 years. In return, South Korea will provide was still a lot of work to do, he sees a bright ment. The rare block emerged in ing through WTO bodies and, as making company will remain in business. The Detroit car maker and state-run Ko- funding to local suppliers of GM and other future in the country. the wake of recent trade restric- appropriate, recourse to our dis- tive measures by US President pute settlement,” said the joint Donald Trump. statement released. Pakistan’s ambassador to The members consider that World Trade Organisation action is needed to address ma- (WTO) Dr Tauqir Shah said that jor challenges facing the WTO. Inpex may drop second bid for Iran’s Azadegan oil project the country has played a key “We particularly note diffi culties role to put together this group in in concluding negotiations and support of a multilateral system. divergent positions on trade and Reuters economy. Inpex relinquished a 10% stake “We recognise that it has become dif- While governments in Europe and Asia He said Pakistan is the found- development.” With respect to Tokyo in Azadegan in 2010 because sanctions by ficult for us to engage in activities for the were still trying to delay the sanctions by ing member of the global system the dispute settlement mecha- the United States on Iran made it diff icult to bidding” after Trump’s decision this week, salvaging some parts of the deal with Iran, and played an important role in nism, the importance of im- access financing for the project. an Inpex spokeswoman told Reuters by analysts had little hope that opposition to the past negotiations. “We will mediately fi lling all current and Japan’s biggest energy explorer, Inpex According to energy consultants Wood phone. the US action would prevent the restric- continue to play our part in pro- future vacancies on the appellate Corp, said yesterday it may drop its second Mackenzie, the Azadegan fields are consid- President Trump on Tuesday said he tions. moting rules-based multilateral body was emphasised. attempt to join in developing Iran’s South ered one of the world’s biggest oil discover- was pulling out of the multi-party nuclear Fereidun Fesharaki, the founder and trading system,” Shah added. “We underline the neces- Azadegan oilfield after US President Donald ies of the past 30 years with an estimate of agreement and will reinstitute US sanctions chairman of energy consultancy FGE, The members welcomed the sity for members to contribute to Trump said he will re-impose sanctions on about 33.2bn barrels of oil in place. against Tehran that were suspended under said Europe and Asia would not be able or marked recovery of world mer- keeping the organisation eff ec- Tehran. Oil production at the fields was planned the 2015 accord. willing to significantly fight against the US chandise trade in 2017, to which tive, relevant and responsive to The comment illustrates the turmoil that to reach 600,000 barrels per day. Other energy projects could be aff ected, sanctions. all regions contributed, and are representative states’ needs, and Trump’s withdrawal from a 2015 agreement The lifting of the sanctions in 2016 after including Total’s multi-billion dollar natural “They will grumble and accept it. There encouraged by the WTO’s posi- we commit to continue working to limit Iran’s nuclear programme has set in the agreement opened the way for Inpex to gas project in Iran, unless waivers can be is no one who will realistically choose Iran tive forecast for the next two with them to improve WTO,” motion for potential investors in the Iranian again participate in developing the oilfield. secured. over the US,” he said. years. However, the members are added the statement. Gulf Times Friday, May 11, 2018 5 BUSINESS

China set to trim soybean imports from Hong Kong billionaire Li quits; US as trade dispute boosts prices son holds reins of $35bn empire

Reuters Reuters Beijing Hong Kong

China will cut its soybean ong Kong’s richest man, Li imports for the first time in 15 Ka-shing, held his last meet- years in 2018/19, the agriculture Hing with shareholders yester- ministry forecast yesterday, day and handed to his eldest son the as a trade spat with the United keys to his $35.3bn empire, bringing States pushes pig farmers in to a close a rags-to-riches story that the world’s top buyer to seek made him an icon in the financial cheaper proteins. hub. In its first predictions for Li, who started out as a factory ap- the upcoming crop year which prentice at 12, is stepping aside from starts in October, the Ministry a conglomerate that employs 323,000 of Agriculture and Rural Aff airs employees and has assets in more said soybean imports were ex- than 50 countries spanning property, pected to dip 0.3% to 95.65mn power, telecoms and oil. tonnes. At the AGMs for his flagship firm That would be the first de- CK Hutchison Holdings and property cline since 2003/04, according arm CK Asset Holdings, the 89-year- to data from the United States old Li engaged with shareholders in agriculture department. his usual idiosyncratic manner, be- The forecast will unnerve top fore handing off formally to Victor Li. exporter Brazil, which has har- “I will still go to the office tomor- vested a record crop this year. row,” Li told reporters after the AGMs It will also add to worries for that lasted several hours, explain- farmers in the United States, ing he would continue to work on his who have already seen exports charitable foundation. to China dry up after Beijing Li appeared in high spirits, smiling, threatened to slap an additional cracking jokes and waving to report- 25% tariff on US soybeans, in re- ers. taliation for trade actions taken He expressed confidence in his eld- by President Donald Trump. est son, who stood in silence behind The threat of hefty tariff s has him with a stoic expression. pushed up the price of soymeal “Victor has followed me for more and sent feedmakers scurrying than 30 years. He should be able to do to source alternative sources a good job.” of protein for farmers already Li will continue to exert some in- grappling with hog prices at fluence as a senior adviser for the multi-year lows. empire that includes Britain’s larg- Live hog prices in China est container port in Felixstowe and plunged by around 30% in the Canada’s Husky Oil. Hong Kong tycoon Li Ka-shing, chairman of CK Hutchison Holdings, waves goodbye to journalists as he formally retires after the company’s annual general meeting in first quarter, one of the steepest Victor Li, who has been a group co- Hong Kong yesterday. declines ever recorded, after a managing director for several years, significant increase in produc- is seen as a steady hand unlikely to would step down, versus a 2% drop an interest in wind-surfing, has also retirement. “Effectively Victor gets “If you’re looking for Victor’s hu- tion by new farms boosted pork change course – which, according to in the overall Hang Seng Index, while had to surmount some traumatic epi- it all (the assets), and it’s pretty big mility you may have to look quite supplies. analysts, could weigh on the firm. CK Asset has shed 1.3% over the pe- sodes. In 1996, he was kidnapped by stuff. hard, his father had an abundance of Prices are still at eight-year “Most of their businesses are in riod. a notorious gangster before he was He’ll have to have very good guys that.” lows, with producers across the ports, energy, and retail, and these Victor Li joined his family’s corpo- freed for a large ransom. around him,” said Simon Murray, a The adoration Li senior enjoys was board losing money, and most are all mature industries, even tel- rate umbrella in 1985. He is now rarely seen about town former right hand man of the elder Li. evident in the turnout at the AGMs. expect losses to continue into ecommunications,” said CEO of GEO Educated at Stanford in civil engi- without a security detail. “I’m not sure where his core com- Among the attendees was wheel- next year. “While the develop- Securities Limited, Francis Lun. “If neering, he is notably less extrovert- Analysts expect Victor to avoid petence lies... well we’ll see. chair-bound Yung. Giving only her ment of livestock farmers is they don’t invest in new sectors, they ed than his father and a stickler for big gambles as he takes the helm, He’s very much a details guy, may- last name, the 86-year-old share- driving an increase in consump- will slowly decline.” numbers, say some who are familiar buttressed by veteran executives in- be too much of a details guy and his holder said she had attended just to tion of feed raw materials, the CK Hutchison shares have dipped with both men. cluding Canning Fok and Frank Sixt, biggest challenge will be relation- hear what Li senior had to say since fall in profits for pig farming around 6% since Li announced he Victor, a low-key family man with though they too may be approaching ships with people. “today is the last time”. will lead to reduced use of protein in feed, and in addition to higher supply of DDGS and other meals, demand growth of soymeal will slow,” said the ministry. China is expanding produc- Anbang’s ex-boss jailed 18 years for fraud tion of ethanol under a new policy to boost the consump- tion of corn. AFP rein in politically connected conglom- sary as authorities work to restructure The push will see higher sup- Shanghai erates that grew rapidly and launched the fi rm. plies of the ethanol byproduct, a wave of splashy multibillion-dollar The highly unusual commandeer- dried distillers grain (DDGS), overseas investments fuelled by exces- ing signalled deep offi cial concern over reaching the animal feed Chinese court jailed the former sive debt. the Beijing-based company’s fi nan- market. high-fl ying head of troubled The government of President Xi Jin- cial situation and appeared to confi rm China’s own soybean produc- AAnbang Insurance Group for ping, who has dramatically strength- that toxic fi nancial risks lurked in the tion is also set to grow, with 18 years yesterday for defrauding the ened his grip on power recently, has world’s second-largest economy. 2018/19 output forecast to rise company of more than $10bn. made cleaning up fi nancial risks a top The company announced in April 4.9% to 15.27mn tonnes, the Wu Xiaohui was toppled as Anbang’s national priority. that the government would inject ministry said. Soybean farmers head last year and China’s insurance Wu’s situation marks a startling fall 60.8bn yuan into it. are getting additional support regulator announced an unprecedented from grace for a man who reportedly Acquisitive private companies such following the launch of an takeover of the conglomerate in Febru- married a granddaughter of the late as Anbang, HNA, Fosun and Wanda “emergency” campaign this ary, as the government moves to pre- Chinese leader Deng Xiaoping – a sign spent billions on the overseas purchas- month to boost output. vent heavily-indebted large private that even political connections cannot es of everything from European football Soybean acreage will companies from collapsing and posing guarantee immunity. clubs to hotel chains and movie studios. increase by 7.8% to 8.39mn hec- a risk to the fi nancial system. Wu previously worked in auto sales But Chinese authorities, who origi- tares (20.7mn acres), although Established in 2004, Anbang grew and infrastructure investment before nally encouraged such asset-shopping, lower rainfall in Inner Mongolia rapidly into a fi nancial-services power- setting up Beijing-based Anbang, ac- abruptly reversed course over the past will curb yields. house, making waves in 2014 by buying cording to Chinese media reports. year, clamping down amid concerns Higher subsidies for soy New York’s landmark Waldorf Astoria Anbang used massive sales of short- over capital fl ight and fears that com- farmers will eat into corn plant- hotel for $1.95bn and other acquisitions. term, high-yield policies to become one panies could collapse and trigger a fi - ing however, with output set In addition to the prison sentence, of China’s biggest insurers, but regula- nancial contagion at home. to fall 2.9% to 210mn tonnes, it the Shanghai Municipal No 1 Interme- tors are now believed to fear the com- They have also become increasingly said. “Relatively severe” drought diate People’s Court announced that it Wu: Defrauded Anbang of more than 65bn yuan. pany had hugely overextended. alarmed by conglomerates’ murky webs in some parts of the northeast had ordered the seizure of 10.5bn yuan The company made a failed $14bn bid of subsidiaries and debt and their po- was also expected to hurt corn ($1.6bn) worth of his property and the ditures”, the judges said. Between 2011 of funds, which exceeded the scale the for the Starwood hotels chain in 2016. tential threat to China’s economy. yields. suspension of his political rights for and 2017, Wu instructed others to pro- former insurance regulator approved,” It also was in aborted talks with Don- The four fi rms are referred to as “grey Beijing has embarked on a four years. duce false earnings reports, disclose it said. At his March trial, the court was ald Trump’s son-in-law and adviser rhinos” – plodding fi nancial beasts that major push to reduce its corn The court found him guilty of de- false information, fake fund injections also told that Anbang had sold invest- Jared Kushner to redevelop a Manhat- could charge quickly, with damaging planting to whittle down a frauding Anbang of more than 65bn and conceal insurance revenue to de- ment products that exceeded allowable tan offi ce tower, Bloomberg News re- systemic results. huge overhang of stocks, while yuan following a trial in March. ceive regulators, the court said. fund-raising amounts by a whopping ported last year. In response, the government has for supporting soybean planting in The funds were transferred to com- “(Wu) used bait by promising inter- 723.9bn yuan. Anbang’s takeover by the authorities more than a year implemented ever- its place. panies that Wu personally controlled est rates higher than the bank deposito- The government’s swoop on Anbang is due to last a year but the government tighter controls to curb excessive debt to repay debts or for “personal expen- ry rate to illegally absorb large amounts marked its most aggressive step yet to has said it could be extended if neces- and “irrational” investments overseas. Australia’s AMP feels shareholder wrath over misconduct

Reuters removed. “We’ve let you the shareholder holder, said in a statement that while Harmos decades, said it would defend itself against Sydney down, we’ve let the company down and we’ve “bears some responsibility” for the miscon- two class-action lawsuits filed on behalf of let the community down,” interim executive duct it supported his election to ensure the shareholders seeking damages for the board’s chairman Mike Wilkins told the two-and-a-half board could “function appropriately”. failure to disclose its governance issues Top Australian wealth manager AMP Ltd faced hour meeting in Melbourne. Investment manager Australian Ethical said sooner. The lawsuits were filed by global law an investor revolt at its annual meeting yes- AMP’s share price has lost a sixth of its it had off loaded its A$8mn stake in AMP, first firm Quinn Emanuel Urquhart & Sullivan and terday, with shareholders voting overwhelm- value, wiping A$2.1bn ($1.6bn) off the firm’s instance of a divestment on ethical grounds Melbourne-based Phi Finney McDonald. ingly against its executive pay plans in the market capitalisation, since mid-April when an from a financial firm cited in the inquiry. Australian litigation financier IMF Bentham wake of damaging revelations of board-level independent inquiry into Australia’s financial “AMP knowingly and deliberately misled is also planning another class action against misconduct. sector exposed serious flaws in its govern- regulators and there is suff icient evidence AMP. A director was also narrowly re-elected ance, accountability and culture. to show that these breaches are not isolated Wilkins said costs likely would mount as the in the face of a sizeable protest vote as the The inquiry may recommend criminal incidents,” said Stuart Palmer, head of ethics firm worked to resolve the issues identified by company scrambles to restore trust amid charges. Three directors quit this week includ- research at Australian Ethical. the inquiry. allegations it charged fees for no service, ing two facing re-election at yesterday’s meet- AMP shares closed down 2.9%, while the AMP expected a review of the fees it paid doctored an independent report and lied to ing, while the chairman, CEO and chief lawyer broader market finished up 0.2%. financial planners would lead to further regulators. had already departed over the scandal. The Royal Commission inquiry has “customer remediation costs and associated The vote against the company’s executive The director re-elected yesterday, Andrew exposed Australia’s richest financial firms to expenses”. The logo of AMP adorns its head off ice building in Sydney. AMP’s pay sets the 169-year-old company up for a Harmos, received 62% of the vote, well short unprecedented public scrutiny, raising costs Some customers were closing their ac- share price has lost a sixth of its value, wiping A$2.1bn ($1.6bn) off the possible board spill. of the near-unanimous support directors of and squeezing margins amid calls for tighter counts, he added. “Not surprisingly, we did firm’s market capitalisation, since mid-April when an independent If more than a quarter of shareholders large Australian companies usually get. regulation and stiff er penalties. see some increase in customer call-centre inquiry into Australia’s financial sector exposed serious flaws in its vote against the pay proposal for two years BlackRock Inc, the world’s largest asset AMP, whose name has been synonymous enquiries and withdrawal requests, although governance, accountability and culture. running, they can call for the board to be manager and AMP’s second-largest share- with financial planning in Australia for this has eased back in recent days,” he said. Gulf Times 6 Friday, May 11, 2018 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Alabdullatif Industrial Inv 12.92 0.54 122,925 Al Aman Investment Company 59.80 4.00 125,160 Al Sharqiya Invest Holding 0.13 -0.76 809,194 Saudi Printing & Packaging C 19.95 -0.35 391,081 Mashaer Holding Co Ksc 45.00 -7.98 3,486 Al Maha Petroleum Products M 0.82 0.00 1,221 Saudi Paper Manufacturing Co 8.72 0.23 449,855 Manazel Holding 32.00 1.59 456,300 Al Maha Ceramics Co Saoc 0.23 0.00 1,512 Alinma Bank 20.36 -0.05 24,113,172 Tijara And Real Estate Inves 57.90 0.00 6,025 Al Madina Takaful Co Saoc 0.11 0.93 569,096 Almarai Co 59.85 1.37 435,316 Jazeera Airways Co Ksc 715.00 1.42 18,321 Al Madina Investment Co 0.06 1.85 38,816 Falcom Saudi Equity Etf 30.80 -0.65 231,706 Commercial Real Estate Co 70.90 0.00 215,000 Al Kamil Power Co 0.39 0.00 - United International Transpo 34.97 1.16 162,935 National International Co 60.00 0.00 15,951 Al Jazerah Services -Pfd 0.55 0.00 - Hsbc Amanah Saudi 20 Etf 32.30 0.00 - Taameer Real Estate Invest C 27.50 -1.79 102,718 Al Jazeera Steel Products Co 0.32 0.00 - Saudi International Petroche 20.09 -0.15 1,285,918 Gulf Cement Co 86.00 0.00 372,166 Al Jazeera Services 0.16 -1.84 3,283,000 Falcom Petrochemical Etf 31.60 0.00 44 Heavy Engineering And Ship B 322.00 -0.31 167,600 Al Izz Islamic Bank 0.08 0.00 - QATAR Walaa Cooperative Insurance 30.35 -0.03 225,125 National Real Estate Co 113.00 4.63 734 Al Buraimi Hotel 0.88 0.00 - Bank Al-Jazira 13.58 2.41 7,656,170 Al Safat Energy Holding Comp 25.30 0.00 21,201 Al Batinah Power 0.12 0.00 96,508,899 Company Name Lt Price % Chg Volume Al Rajhi Bank 80.59 0.46 2,695,355 Kuwait National Cinema Co 1,065.00 -0.47 3 Al Batinah Hotels 1.13 0.00 - Samba Financial Group 27.78 1.24 1,131,284 Danah Alsafat Foodstuff Co 51.00 2.00 157,215 Al Batinah Dev & Inv 0.10 0.00 - Zad Holding Co 73.99 -0.01 4,408 United Electronics Co 73.32 0.42 205,187 Independent Petroleum Group 410.00 0.00 39,356 Al Anwar Holdings Saog 0.15 0.00 77,299 Widam Food Co 60.00 -1.64 19,787 Allied Cooperative Insurance 21.16 0.81 161,687 Kuwait Real Estate Co Ksc 46.50 -1.06 31,100 Al Ahlia Insurance Co Saoc 0.36 0.00 - Vodafone Qatar 9.11 0.44 4,676,442 Malath Insurance 13.30 2.39 941,647 Salhia Real Estate Co Ksc 337.00 -0.30 210,050 Ahli Bank 0.16 0.00 - United Development Co 14.10 -0.42 218,188 Alinma Tokio Marine 22.98 -1.12 117,691 Gulf Cable & Electrical Ind 389.00 0.00 1,725 Acwa Power Barka Saog 0.74 0.00 - Salam International Investme 5.48 0.37 12,587 Arabian Shield Cooperative 39.47 -0.83 166,413 Kuwait Finance House 527.00 -0.19 1,286,230 Abrasives Manufacturing Co S 0.05 0.00 - Qatar & Oman Investment Co 6.72 1.82 17,761 Savola 38.73 -4.11 1,884,060 Gulf North Africa Holding Co 35.50 0.85 71,000 A’saff a Foods Saog 0.59 0.00 - Qatar Navigation 56.49 1.71 3,452 Wafrah For Industry And Deve 15.40 6.21 475,551 Hilal Cement Co 73.70 0.00 6,521 Oman Oil Marketing Co-Pref 0.25 0.00 - Qatar National Cement Co 53.11 -1.65 5,623 Fitaihi Holding Group 12.84 0.39 158,999 Osoul Investment Kscc 60.50 0.00 5,492 Qatar National Bank 143.31 -1.51 223,531 Tourism Enterprise Co/ Shams 32.39 1.44 53,311 Gulf Insurance Group Ksc 640.00 -1.39 2,446 Qatar Islamic Insurance 49.25 -1.60 4,168 Sahara Petrochemical Co 17.43 1.81 2,753,460 Umm Al Qaiwain General Inves 70.80 0.00 264 Qatar Industrial Manufactur 38.60 0.26 9,061 Herfy Food Services Co 46.96 0.23 24,446 Aayan Leasing & Investment 30.40 0.00 846,210 Qatar International Islamic 53.00 -0.97 59,496 Saudi Ind Investment Group 25.94 1.13 1,195,185 Alrai Media Group Co Ksc 132.00 3.13 115,575 Qatari Investors Group 31.45 -0.16 11,895 Salama Cooperative Insurance 25.30 -0.08 149,822 National Investments Co 93.00 0.22 20,000 Qatar Islamic Bank 102.75 -0.73 119,653 Emaar Economic City 13.04 0.23 1,295,730 Commercial Facilities Co 173.00 2.98 13,600 Qatar Gas Transport(Nakilat) 14.71 -0.68 237,247 Alahli Takaful Co 28.30 0.75 122,502 Yiaco Medical Co. K.S.C.C 132.00 0.00 1,000 Qatar General Insurance & Re 48.80 1.67 6,790 Munshaat Real Estate Project 79.80 0.25 160,280 Qatar German Co For Medical 5.63 0.00 19,284 Noor Financial Investment Co 46.00 -1.92 388,900 Qatar Fuel Qsc 136.00 -1.56 77,538 Al Tamdeen Investment Co 280.00 0.00 5,250 Qatar First Bank 5.71 -1.55 140,889 KUWAIT Credit Rating & Collection 21.90 -4.78 500 Qatar Electricity & Water Co 194.88 0.20 33,564 Ifa Hotels & Resorts Co. K.S 102.00 -0.97 2,406 Qatar Exchange Index Etf 87.72 -0.62 4,000 Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 39.90 2.31 40,297 Qatar Cinema & Film Distrib 22.61 0.00 - Warba Bank Kscp 239.00 0.00 1,510,748 Al Rayan Qatar Etf 21.90 -5.64 173,109 Sultan Center Food Products 62.50 -3.70 1,210,149 Viva Kuwait Telecom Co 703.00 0.00 17,318 Qatar Insurance Co 32.90 -2.40 379,400 Kuwait Foundry Co Sak 248.00 0.00 20,000 Mezzan Holding Co Kscc 728.00 2.25 249,525 Ooredoo Qpsc 68.62 -3.70 162,366 Kuwait Financial Centre Sak 102.00 -2.86 59,250 UAE National Leasing 9.32 -0.32 53,959 Ajial Real Estate Entmt 144.00 0.00 68,739 Company Name Mazaya Qatar Real Estate Dev 6.47 -1.52 301,263 Kuwait Finance & Investment 44.50 0.00 5,000 Lt Price % Chg Volume Mesaieed Petrochemical Holdi 16.06 -1.47 400,030 National Industries Co Ksc 190.00 0.00 40,000 Al Meera Consumer Goods Co 139.50 -0.36 19,793 Kuwait Real Estate Holding C 27.00 8.00 345,000 Waha Capital Pjsc 1.70 -2.86 855,685 Medicare Group 63.00 -0.82 43,881 Securities House/The 46.50 1.09 233,500 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 45.01 0.74 87,300 Boubyan Petrochemicals Co 880.00 5.26 1,568,692 United Arab Bank Pjsc 1.20 0.00 - Masraf Al Rayan 34.20 -0.38 220,529 Al Ahli Bank Of Kuwait 312.00 0.00 94,091 Union National Bank/Abu Dhab 3.65 0.00 551,543 Al Khalij Commercial Bank 11.00 0.00 5,780 Ahli United Bank (Almutahed) 285.00 -1.04 360,985 Union Insurance Co 1.89 0.00 - Industries Qatar 110.21 -1.60 165,553 National Bank Of Kuwait 738.00 0.00 1,332,477 Union Cement Co 1.85 0.00 - Islamic Holding Group 29.89 9.93 83,019 Commercial Bank Of Kuwait 495.00 3.13 134,316 Umm Al Qaiwain General Inves 1.00 0.00 - Investment Holding Group 5.47 -1.44 665,141 Kuwait International Bank 221.00 0.45 976,240 Sudan Telecommunications Gro 0.52 0.00 572,573 Gulf Warehousing Company 41.00 0.10 19,695 Gulf Bank 253.00 0.00 222,750 Sharjah Islamic Bank 1.23 -0.81 408,425 Gulf International Services 17.26 -0.23 56,876 Al-Massaleh Real Estate Co 38.10 0.00 3,500 Sharjah Insurance Company 3.49 0.00 - Ezdan Holding Group 9.10 0.22 239,955 Al Arabiya Real Estate Co 32.30 0.94 3,747 Sharjah Group 1.15 0.00 - Doha Insurance Co 12.51 0.00 158 Kuwait Remal Real Estate Co 0.00 0.00 - Sharjah Cement & Indus Devel 0.98 -2.00 22,668 Doha Bank Qpsc 26.51 -2.36 154,392 A’ayan Real Estate Co Sak 51.00 2.00 511 Ras Al-Khaimah National Insu 3.68 0.00 - Dlala Holding 13.30 7.17 1,550,418 Investors Holding Group Co.K 13.00 4.84 3,761,044 Ras Al Khaimah White Cement 1.00 0.00 25,000 Commercial Bank Pqsc 36.18 1.06 216,048 Al-Mazaya Holding Co 98.00 -1.01 20,000 Ras Al Khaimah Ceramics 2.42 -3.20 77,038 Barwa Real Estate Co 33.10 -0.30 212,046 Al-Madar Finance & Invt Co 35.00 0.00 441,273 Ras Al Khaimah Cement Co Psc 0.73 -1.35 227,672 Gulf Petroleum Investment 26.30 -0.75 631,819 Ras Al Khaima Poultry 2.70 0.00 - Mabanee Co Sakc 643.00 0.94 56,437 Rak Properties 0.65 0.00 - SAUDI ARABIA Inovest Co Bsc 66.70 -2.34 90,471 Ooredoo Qpsc 81.00 0.00 - Al-Deera Holding Co 20.00 -3.85 35,900 Oman & Emirates Inv(Emir)50% 0.50 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mena Real Estate Co 27.50 0.00 14,745 OMAN 0.42 - Amar Finance & Leasing Co 39.00 0.00 2,500 National Marine Dredging Co 2.80 -9.97 2,704 National Investor Co/The 0.51 0.00 - United Wire Factories Compan 16.97 1.50 135,077 United Projects For Aviation 709.00 1.29 11,200 Company Name Lt Price % Chg Volume Etihad Etisalat Co 16.95 1.19 2,633,147 National Consumer Holding Co 0.00 0.00 - National Corp Tourism & Hote 1.86 0.00 - Dar Al Arkan Real Estate Dev 11.84 -0.34 54,340,201 Amwal International Investme 50.00 3.95 3,394 Voltamp Energy Saog 0.36 0.00 2 National Bank Of Umm Al Qaiw 2.70 -10.00 48,983 Alawwal Bank 12.54 0.88 563,358 Equipment Holding Co K.S.C.C 28.30 -2.08 150,500 Vision Insurance Saoc 0.15 0.00 1,088,795 National Bank Of Ras Al-Khai 4.41 0.00 - Rabigh Refining And Petroche 25.28 0.16 3,624,469 Arkan Al Kuwait Real Estate 76.00 0.00 60,000 United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Fujairah 2.65 0.00 - Banque Saudi Fransi 32.24 2.15 196,570 Gfh Financial Group Bsc 108.00 1.89 1,762,751 United Power Co Saog 3.28 0.00 - Methaq Takaful Insurance 0.77 4.05 199,952 Saudi Enaya Cooperative Insu 10.76 -2.71 775,464 Energy House Holding Co Kscp 27.00 -6.90 106,225 United Finance Co 0.11 0.00 - Manazel Real Estate Pjsc 0.50 0.00 2,938,423 Mediterranean & Gulf Insuran 21.96 2.91 71,979 Kuwait Co For Process Plant 162.00 0.00 5,000 Ubar Hotels & Resorts 0.13 0.00 - Invest Bank 2.08 -0.95 2,000 Saudi British Bank 32.55 0.74 154,225 Al Maidan Dental Clinic Co K 1,220.00 0.00 70,000 Takaful Oman 0.13 0.00 - Intl Holdings Co Pjsc 1.40 0.00 135,000 Red Sea International Co 18.17 0.28 36,410 National Shooting Company 17.00 -5.56 264,301 Taageer Finance 0.11 0.00 - Insurance House 0.85 0.00 - Takween Advanced Industries 9.74 -2.21 1,115,844 Al-Ahleia Insurance Co Sakp 438.00 0.00 119 Sweets Of Oman 1.34 0.00 - Gulf Pharmaceutical Ind Psc 2.12 0.00 - Sabb Takaful 19.21 0.10 201,792 Wethaq Takaful Insurance Co 27.50 -0.36 71,500 Sohar Power Co 0.12 0.00 - Gulf Medical Projects 1.75 0.00 - Saudi Arabian Fertilizer Co 63.69 2.28 235,105 Salbookh Trading Co Kscp 38.00 -5.00 1,640 Sohar Poultry 0.21 0.00 - Gulf Cement Co 0.93 -7.00 53,958 National Gypsum 13.47 1.28 496,480 Aqar Real Estate Investments 74.00 0.00 100 Smn Power Holding Saog 0.60 0.00 - Fujairah Cement Industries 1.20 0.00 - Saudi Ceramic Co 20.45 2.20 184,760 Hayat Communications 80.00 0.00 50 Shell Oman Marketing - Pref 1.05 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 29.66 0.03 109,377 Soor Fuel Marketing Co Ksc 110.00 0.92 21,982 Shell Oman Marketing 1.65 0.00 - Foodco Holding Pjsc 3.98 0.00 - Saudi Pharmaceutical Industr 30.75 -0.23 65,896 Tamkeen Holding Co 16.90 0.00 2,000 Sharqiyah Desalination Co Sa 3.96 0.00 2,860,713 First Abu Dhabi Bank Pjsc 11.45 -1.29 1,768,013 Thimar 31.21 2.53 261,865 Burgan Co For Well Drilling 72.00 0.00 3,512 Sembcorp Salalah Power & Wat 0.22 0.00 2,821 Finance House 1.70 0.00 - National Industrialization C 20.19 0.40 3,122,868 Kuwait Resorts Co Kscc 60.00 3.45 18,019 Salalah Port Services 0.60 0.00 - Eshraq Properties Co Pjsc 0.73 2.82 3,884,174 Batic Investments And Logist 40.94 -0.39 206,632 Oula Fuel Marketing Co 111.00 -0.89 44,275 Salalah Mills Co 1.33 0.00 - Emirates Telecom Group Co 16.15 -1.82 1,166,060 Saudi Electricity Co 21.19 2.86 1,634,153 Palms Agro Production Co 80.00 0.00 8,200 Salalah Beach Resort Saog 1.38 0.00 - Emirates Insurance Co. (Psc) 6.60 0.00 - Saudi Arabia Refineries Co 41.50 1.54 276,400 Mubarrad Holding Co Ksc 57.20 -8.48 43,123 Sahara Hospitality 2.38 0.00 - Emirates Driving Company 7.50 0.00 93,000 Arriyadh Development Company 18.59 0.70 110,674 Shuaiba Industrial Co 249.00 0.00 8,000 Renaissance Services Saog 0.39 0.00 - Dana Gas 1.04 -0.95 19,100,564 Al-Baha Development & Invest 20.03 0.91 154,526 Aan Digital Services Co 20.00 -2.44 304,100 Raysut Cement Co 0.71 0.00 - Commercial Bank Internationa 0.69 0.00 - Saudi Research And Marketing 96.71 -0.61 192,145 First Takaful Insurance Co 45.50 -9.90 750 Phoenix Power Co Saoc 0.13 0.00 - Bank Of Sharjah 1.07 -1.83 1,764 Aldrees Petroleum And Transp 27.25 0.07 127,851 Kuwaiti Syrian Holding Co 31.70 0.63 146,195 Packaging Co Ltd 2.21 0.00 - Axa Green Crescent Insurance 0.59 0.00 - Saudi Vitrified Clay Pipe Co 49.26 -1.34 35,488 National Cleaning Company 48.90 -2.20 281,750 Ooredoo 0.47 -0.84 25,000 Arkan Building Materials Co 0.64 1.59 145,792 Jarir Marketing Co 172.80 0.64 34,920 United Real Estate Company 59.00 0.00 5,049 Ominvest 0.38 0.00 1,000 Alkhaleej Investment 2.15 0.00 - Arab National Bank 29.91 1.56 432,215 Agility 763.00 -0.29 481,574 Oman United Insurance Co 0.33 0.00 - Aldar Properties Pjsc 2.03 0.00 6,019,499 Yanbu National Petrochemical 71.38 1.59 297,600 Kuwait & Middle East Fin Inv 25.00 0.00 5,104 Oman Telecommunications Co 0.80 0.00 64,200 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 28.70 0.17 63,553 Fujairah Cement Industries 73.00 0.00 70,965 Oman Refreshment Co 1.80 0.00 - Al Qudra Holding Pjsc 1.21 0.00 - Middle East Specialized Cabl 8.35 2.83 708,607 Livestock Transport & Tradng 191.00 -3.54 7,000 Oman Qatar Insurance Co 0.12 -4.00 6,300 Al Khazna Insurance Co 0.25 0.00 - Al Khaleej Training And Educ 16.14 0.06 137,718 International Resorts Co 24.80 -0.80 144,000 Oman Packaging 0.28 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Sagr Co-Operative Insuran 28.03 2.49 663,229 National Industries Grp Hold 160.00 0.00 5,433,791 Oman Oil Marketing Company 1.26 -4.18 250,000 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Trade Union Cooperative Insu 20.42 0.05 413,104 Warba Insurance Co 78.90 -0.13 1,731 Oman National Engineering An 0.16 0.00 1 Al Buhaira National Insuranc 2.20 0.00 - Arabia Insurance Cooperative 18.04 0.73 197,338 First Dubai Real Estate Deve 44.00 2.33 337,584 Oman Investment & Finance 0.12 0.00 375,827 Al Ain Ahlia Ins. Co. 38.00 0.00 - Saudi Chemical Company 34.08 -0.55 160,542 Al Arabi Group Holding Co 74.70 0.00 5,000 Oman Intl Marketing 0.52 0.00 - Agthia Group Pjsc 4.50 2.74 1,637,626 Fawaz Abdulaziz Alhokair & C 28.81 0.10 520,914 Mobile Telecommunications Co 379.00 -0.26 2,591,612 Oman Flour Mills 0.76 0.00 19,922 Abu Dhabi Ship Building Co 1.98 0.00 - Bupa Arabia For Cooperative 102.60 -0.42 36,825 Eff ect Real Estate Co 20.00 33.33 100 Oman Fisheries Co 0.12 0.00 258,185 Abu Dhabi Natl Co For Buildi 0.62 3.33 386,190 Wafa Insurance 11.05 0.73 619,687 Tamdeen Real Estate Co Ksc 383.00 0.00 100 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi National Takaful C 4.70 -9.44 89 Jabal Omar Development Co 44.87 -2.63 934,496 Al Mudon Intl Real Estate Co 28.50 -2.06 100 Oman Education & Training In 0.18 0.00 - Abu Dhabi National Oil Co Fo 2.51 0.40 219,071 Saudi Basic Industries Corp 114.81 0.84 4,164,906 Kuwait Cement Co Ksc 450.00 1.35 375,839 Oman Chromite 3.64 0.00 - Abu Dhabi National Insurance 3.40 0.00 - Saudi Kayan Petrochemical Co 14.17 1.00 12,197,874 Sharjah Cement & Indus Devel 89.00 0.00 100,000 Oman Chlorine 0.40 0.00 - Abu Dhabi National Hotels 2.78 0.00 - Etihad Atheeb Telecommunicat 5.34 0.38 743,800 Kuwait Portland Cement Co 1,039.00 3.38 23,010 Oman Ceramic Company 0.42 0.00 - Abu Dhabi National Energy Co 1.30 -2.26 2,576,122 Co For Cooperative Insurance 69.73 0.48 549,530 Educational Holding Group 317.00 0.00 1 Oman Cement Co 0.36 0.00 2,000 National Petrochemical Co 27.30 1.75 225,683 Asiya Capital Investments Co 37.50 0.00 218,592 Oman Cables Industry 0.89 0.00 12,560 Gulf Union Cooperative Insur 16.02 3.96 305,646 Kuwait Investment Co 117.00 5.41 34,180 Oman & Emirates Inv(Om)50% 0.13 1.57 40,129 BAHRAIN Gulf General Cooperative Ins 15.69 0.13 108,866 Burgan Bank 263.00 0.00 176,625 Natl Aluminium Products 0.35 0.57 87,500 Basic Chemical Industries 24.78 1.89 263,928 Kuwait Projects Co Holdings 243.00 0.41 308,835 National Securities 0.04 0.00 - Saudi Steel Pipe Co 19.52 2.95 611,359 Al Madina For Finance And In 27.90 3.33 11,674 National Real Estate Develop 5.00 0.00 - Company Name Lt Price % Chg Volume Buruj Cooperative Insurance -2.22 Kuwait Insurance Co 5.26 30.85 404,195 260.00 17,000 National Pharmaceutical 0.12 0.00 - Zain Bahrain Bscc 0.09 0.00 260,000 Mouwasat Medical Services Co 2.51 Al Masaken Intl Real Estate -3.86 182.06 47,850 79.80 100,000 National Mineral Water 0.10 0.00 - United Paper Industries Bsc 0.00 0.00 - Southern Province Cement Co -0.12 Intl Financial Advisors -0.76 40.07 132,433 26.10 1,040,900 National Life & General Insu 0.34 0.00 - United Gulf Holding Bsc 0.76 0.00 5,000 Maadaniyah 0.98 First Investment Co Kscc 0.98 18.47 115,761 41.30 810,579 National Gas Co 0.35 2.33 362,337 Trafco Group Bsc 0.32 0.00 69,250 Yamama Cement Co 1.23 Al Mal Investment Company 3.65 16.40 57,536 19.90 298,870 National Finance Co 0.13 0.00 - Takaful International Co 0.00 0.00 - Jazan Energy And Development 1.16 Bayan Investment Co Kscc 5.51 14.79 212,024 40.20 105,585 National Detergent Co Saog 0.65 0.00 - Seef Properties 0.23 0.00 63,738 Zamil Industrial Investment 0.33 Egypt Kuwait Holding Co Sae 0.61 24.51 64,929 330.00 10,000 National Biscuit Industries 3.75 0.00 - National Bank Of Bahrain Bsc 0.61 0.00 30,000 Alujain Corporation (Alco) -0.72 Coast Investment Development -3.13 30.27 1,629,877 30.90 365,092 National Bank Of Oman Saog 0.18 0.00 1,000 Nass Corp Bsc 0.11 0.00 45,000 Tabuk Agricultural Developme 0.09 Privatization Holding Compan -1.00 11.63 269,953 59.70 130,162 Muscat Thread Mills Co 0.08 0.00 - Khaleeji Commercial Bank 0.08 0.00 50,000 United Co-Operative Assuranc 0.80 Injazzat Real State Company 5.76 11.30 79,594 89.90 20,200 Muscat Insurance Co Saog 0.80 0.00 - Ithmaar Holding Bsc 0.10 5.26 105,000 Qassim Cement/The 0.54 Kuwait Cable Vision Sak 0.00 39.30 33,099 29.00 21 Muscat Gases Company Saog 0.42 0.00 50 Investcorp Bank -$Us 9.30 0.00 125,000 Saudi Advanced Industries 1.08 Sanam Real Estate Co Kscc -2.60 13.13 247,216 30.00 13,603 Muscat Finance 0.10 0.00 - Inovest Co Bsc 0.27 0.00 50,000 Kingdom Holding Co 0.69 Ithmaar Holding Bsc 0.00 8.81 121,169 30.00 3,045,000 Muscat City Desalination Co 0.14 0.00 - Gulf Hotel Group B.S.C 0.52 0.00 14,445 Saudi Arabian Amiantit Co -0.14 Aviation Lease And Finance C 0.85 6.92 1,320,292 355.00 17,000 Majan Glass Company 0.18 0.00 - Gfh Financial Group Bsc 0.39 2.67 2,479,380 Al Jouf Agriculture Developm 1.73 Arzan Financial Group For Fi 1.75 27.00 83,097 29.00 284,596 Majan College 0.44 0.00 - Esterad Investment Co B.S.C. 0.11 0.00 101,260 Saudi Industrial Development 1.01 Ajwan Gulf Real Estate Co 2.82 8.96 385,927 21.90 618,530 Hsbc Bank Oman 0.10 0.00 279,626 Eskan Bank Realty Income Tr 0.10 0.00 131,000 Riyad Bank 3.17 Kuwait Business Town Real Es 2.50 14.32 1,240,491 41.00 237,485 Hotels Management Co Interna 1.25 0.00 - Delmon Poultry Co 0.28 0.00 7,100 The National Agriculture Dev 1.48 Future Kid Entertainment And 0.00 34.88 179,701 110.00 10,000 Gulf Stone 0.12 0.00 - Bmmi Bsc 0.71 0.00 15,000 Halwani Bros Co -2.57 Specialities Group Holding C -1.21 50.09 22,232 57.00 30,200 Gulf Mushroom Company 0.31 0.00 - Bbk Bsc 0.44 -1.35 100,000 Arabian Pipes Co 1.18 Abyaar Real Eastate Developm -1.58 12.84 788,398 18.70 910,500 Gulf Investments Services 0.11 0.00 1,050,982 Bahrain Telecom Co 0.24 0.84 3,500 Eastern Province Cement Co 1.02 Kgl Logistics Company Kscc -2.06 25.69 134,625 42.70 1,408,880 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Bahrain National Holding 0.40 0.00 34,650 Al Gassim Investment Holding 1.23 Combined Group Contracting 1.64 12.36 245,838 433.00 11,800 Gulf International Chemicals 0.20 0.00 3,000 Bahrain Kuwait Insurance 0.35 0.00 57,586 Filing & Packing Materials M -0.15 Jiyad Holding Co Ksc -0.20 34.00 90,862 100.80 5,151 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Islamic Bank 0.13 0.00 50,000 Saudi Cable Co 0.61 Boub 7.81 8.21 248,915 yan Intl Industries Hold 29.00 5,200 Global Fin Investment 0.11 0.00 - Bahrain Flour Mills Co 0.36 0.00 8,084 Tihama Advertising & Public 0.53 0.00 49.26 494,570 Gulf Investment House Ksc 17.20 570,657 Galfar Engineering&Contract 0.11 -0.88 2,416,232 Bahrain Duty Free Complex 0.73 0.00 10,000 Saudi Investment Bank/The 0.70 -0.20 17.18 30,934 Boubyan Bank K.S.C 496.00 185,491 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Commercial Facilitie 0.74 0.00 10,000 Astra Industrial Group -0.36 0.00 19.35 479,782 Ahli United Bank B.S.C 176.00 712,650 Financial Services Co. 0.18 0.00 30 Bahrain Cinema Co ` 0.00 27,500 Saudi Public Transport Co 0.27 -0.48 14.93 266,360 Osos Holding Group Co 83.30 10,000 Financial Corp/The 0.10 0.00 - Arab Banking Corp Bsc-$Us 0.31 0.00 15,000 Taiba Holding Co -0.52 0.00 30.77 88,591 Al-Eid Food Ksc 0.00 - Dhofar Tourism 0.49 0.00 - Aluminium Bahrain Bsc 0.61 0.00 78,046 Saudi Industrial Export Co -1.17 2.04 242.85 38,446 Qurain Petrochemical Industr 350.00 1,496,009 Dhofar Poultry 0.18 0.00 - Albaraka Banking Group 0.31 0.00 429,851 Saudi Real Estate Co 10.00 -10.00 24.10 375,158 Ekttitab Holding Co Sak 26.10 100,578 Dhofar Intl Development 0.31 0.00 - Al-Salam Bank 0.11 0.00 50,000 Saudia Dairy & Foodstuff Co 0.63 5.26 99.72 26,389 Real Estate Trade Centers Co 20.00 51,600 Dhofar Insurance 0.19 0.00 - Ahli United Bank B.S.C 0.60 -0.83 44,000 National Shipping Co Of/The 28.53 0.00 312,221 Acico Industries Co Kscc 260.00 0.00 100 Dhofar Fisheries & Food Indu 1.28 0.00 - Methanol Chemicals Co 9.39 0.64 641,621 Kipco Asset Management Co 64.50 0.00 1,500 Dhofar Cattlefeed 0.19 0.00 - Chubb Arabia Cooperative Ins 23.40 1.69 164,964 National Petroleum Services 715.00 0.42 2,000 Dhofar Beverages Co 0.26 0.00 - Mobile Telecommunications Co 6.98 3.10 5,519,003 Alimtiaz Investment Co Kscc 130.00 0.78 1,270,894 Construction Materials Ind 0.03 0.00 - Saudi Arabian Coop Ins Co 18.80 0.86 215,274 Ras Al Khaimah White Cement 78.00 0.00 793,060 Computer Stationery Inds 0.26 0.00 - Axa Cooperative Insurance 26.81 -2.72 304,075 Kuwait Reinsurance Co Ksc 0.00 0.00 - Bankmuscat Saog 0.38 0.00 13,028 Alsorayai Group 18.46 2.27 844,573 Kuwait & Gulf Link Transport 96.30 -12.45 4,009,585 Bank Sohar 0.14 0.71 242,140 Bank Albilad 23.00 1.50 489,676 Human Soft Holding Co Ksc 3,725.00 0.68 38,489 Bank Nizwa 0.09 2.33 6,183,914 Al-Hassan G.I. Shaker Co 10.41 0.97 242,173 Automated Systems Co Kscc 149.00 0.00 14,000 Bank Dhofar Saog 0.19 0.00 - Wataniya Insurance Co 27.05 2.15 16,536 Metal & Recycling Co 58.00 0.00 11,289 Aloula Co 0.53 0.00 - Abdullah Al Othaim Markets 77.05 -0.61 200,331 Gulf Franchising Holding Co 24.60 0.00 35,000 Al-Omaniya Financial Service 0.28 0.00 - Hail Cement 8.89 0.23 411,996 Al-Enma’a Real Estate Co 32.40 1.25 30,500 Al-Hassan Engineering Co 0.05 0.00 69,638 Saudi Re For Cooperative Rei 8.29 2.22 1,136,461 National Mobile Telecommuni 869.00 0.00 1,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Solidarity Saudi Takaful Co 20.74 1.17 134,941 Unicap Investment And Financ 48.00 0.00 6,280 Al-Anwar Ceramic Tiles Co 0.12 -2.50 12,229 Amana Cooperative Insurance 16.72 3.27 196,122 Al Salam Group Holding Co 33.00 -1.20 88,274 Al Suwadi Power 0.12 1.67 10,000 LATEST MARKET CLOSING FIGURES Gulf Times Friday, May 11, 2018 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 24,735.89 +193.35 Apple Inc 189.32 1.05 10,478,620 S&P 500 Index 2,716.81 +19.02 Microsoft Corp 97.71 0.79 5,863,544 Nasdaq Composite Index 7,392.49 +52.59 Exxon Mobil Corp 81.48 1.94 7,438,551 S&P/Tsx Composite Index 15,983.06 +72.25 Johnson & Johnson 125.48 1.60 1,513,059 Mexico Bolsa Index 46,889.63 +595.20 General Electric Co 14.64 0.14 14,958,268 Brazil Bovespa Stock Idx 85,789.68 +1,524.19 Jpmorgan Chase & Co 113.88 0.41 3,247,650 Ftse 100 Index 7,700.97 +38.45 Procter & Gamble Co/The 73.14 1.06 2,600,070 Cac 40 Index 5,545.95 +11.32 Walmart Inc 83.49 0.52 7,490,119 Dax Index 13,022.87 +79.81 Verizon Communications Inc 46.82 0.95 5,889,738 Ibex 35 Tr 10,241.10 +19.90 Pfizer Inc 35.04 -0.38 6,056,782 Nikkei 225 22,497.18 +88.30 Visa Inc-Class A Shares 131.30 0.35 2,404,488 Japan Topix 1,777.62 +4.71 Chevron Corp 129.11 0.30 1,853,316 Hang Seng Index 30,809.22 +273.08 Coca-Cola Co/The 42.12 0.81 3,012,596 All Ordinaries Indx 6,215.86 +11.41 Intel Corp 54.43 0.17 5,931,783 Nzx All Index 1,536.76 +3.14 Merck & Co. Inc. 58.43 0.82 2,648,315 Bse Sensex 30 Index 35,246.27 -73.08 Cisco Systems Inc 46.04 0.00 6,975,836 Nse S&P Cnx Nifty Index 10,716.55 -25.15 Home Depot Inc 187.07 0.38 1,364,503 Straits Times Index 3,537.59 -10.95 Intl Business Machines Corp 143.61 0.70 1,218,635 Karachi All Share Index 31,755.53 -11.00 Walt Disney Co/The 101.57 1.60 3,777,409 Jakarta Composite Index 5,907.94 +133.22 Unitedhealth Group Inc 232.57 1.47 546,227 3M Co 204.45 0.50 804,572 Mcdonald’s Corp 165.11 0.53 550,372 Nike Inc -Cl B 67.59 -0.53 1,904,063 TOKYO United Technologies Corp 123.80 0.56 580,056 Boeing Co/The 346.20 0.49 1,784,694 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 244.37 1.09 1,001,201 Sumitomo Realty & Developmen 4,402.00 0.94 1,052,000 American Express Co 101.19 0.69 773,202 Sumitomo Metal Mining Co Ltd 4,701.00 1.25 1,456,400 Caterpillar Inc 154.68 1.36 1,754,223 Orix Corp 1,950.50 -1.56 7,930,900 Travelers Cos Inc/The 130.49 0.57 337,814 Daiwa Securities Group Inc 654.50 -0.08 9,765,000 Softbank Group Corp 8,355.00 -2.34 5,090,400 Mizuho Financial Group Inc 198.10 0.25 68,227,100 Traders at the Frankfurt Stock Exchange. The DAX 30 gained 0.6% to 13,022.87 points yesterday. Central Japan Railway Co 21,350.00 0.19 182,400 FTSE 100 Nitori Holdings Co Ltd 18,300.00 -1.43 279,700 T&D Holdings Inc 1,809.50 0.25 1,313,300 Company Name Lt Price % Chg Volume Toyota Motor Corp 7,592.00 2.26 14,687,300 Hoya Corp 5,897.00 2.01 1,430,700 Wpp Plc 1,306.00 2.79 2,856,461 Sumitomo Mitsui Trust Holdin 4,681.00 0.06 920,900 Worldpay Group Plc 0.00 0.00 - Japan Tobacco Inc 2,994.00 0.02 4,495,100 Wolseley Plc 0.00 0.00 - Osaka Gas Co Ltd 2,396.50 0.71 1,745,400 Europe stock markets gain; Wm Morrison Supermarkets 251.60 2.53 17,402,654 Sumitomo Electric Industries 1,664.00 0.09 1,918,800 Whitbread Plc 4,216.00 -0.61 350,602 Ono Pharmaceutical Co Ltd 2,513.50 0.78 2,664,000 Vodafone Group Plc 210.10 0.67 53,306,300 Ajinomoto Co Inc 2,104.00 4.31 5,316,500 United Utilities Group Plc 781.20 0.80 2,004,412 Mitsui Fudosan Co Ltd 2,789.50 1.70 2,870,700 Unilever Plc 4,140.00 1.14 2,815,384 Daikin Industries Ltd 13,120.00 2.10 840,600 pound suff ers steep losses Tui Ag-Di 1,738.50 0.64 1,035,865 Toray Industries Inc 943.00 -5.17 18,395,700 Travis Perkins Plc 1,306.50 0.15 595,004 Bridgestone Corp 4,511.00 -0.02 1,424,000 Tesco Plc 244.20 0.99 22,145,201 Trump’s decision Tuesday mean- hurry to raise UK interest rates”, expec- Sony Corp 5,109.00 -0.56 4,111,800 AFP Taylor Wimpey Plc 192.70 -0.59 10,753,390 while came as data shows US stockpiles tations of which had been supporting Astellas Pharma Inc 1,655.50 0.30 5,158,300 London Standard Life Plc 0.00 0.00 - are dwindling, major producer Vene- the value of the pound. Jxtg Holdings Inc 719.20 1.38 13,510,600 Standard Chartered Plc 764.60 2.06 5,144,671 Nippon Steel & Sumitomo Meta 2,443.00 0.64 1,425,000 zuela is wracked by economic upheaval, European and US stocks pushed St James’s Place Plc 1,179.00 0.34 694,077 Suzuki Motor Corp 5,638.00 -1.45 2,359,300 il prices reached fresh 3.5-year and Opec and Russia press on with an higher. London’s FTSE 100 was up 0.5% Sse Plc 1,401.50 -0.18 2,417,786 Nippon Telegraph & Telephone 5,266.00 -0.13 2,038,900 highs yesterday, before profi t output cap. at 7,700.97, Frankfurt’s DAX 30 gained Smith & Nephew Plc 1,308.00 0.69 2,890,532 Sompo Holdings Inc 4,690.00 0.73 1,018,400 taking took hold, amid ex- Meanwhile, Israel conducted wide- 0.6% at 13,022.87 and Paris’ CAC 40 Sky Plc 1,350.50 -0.26 1,716,815 O Daiwa House Industry Co Ltd 4,071.00 1.24 2,205,300 Shire Plc 4,061.50 2.10 4,256,758 pectations that US President Donald spread strikes overnight against Iranian was up 0.2% at 5,545.95 at close yester- Komatsu Ltd 3,582.00 0.34 2,617,300 Severn Trent Plc 2,020.00 0.45 657,039 Trump’s decision to tear up the Iran targets in Syrian territory, their largest day. West Japan Railway Co 8,011.00 0.34 407,100 Schroders Plc 3,422.00 0.15 355,571 nuclear deal will lead to tighter crude military action yet against their regional Murata Manufacturing Co Ltd 14,440.00 0.31 636,000 Sainsbury (J) Plc 304.90 1.80 11,219,781 Kansai Electric Power Co Inc 1,589.00 -4.16 3,847,300 supplies. foe and a dramatic escalation along the “US stocks are adding to yesterday’s Sage Group Plc/The 672.80 1.60 2,427,944 Denso Corp 5,518.00 -1.04 2,353,700 The president’s announcement ear- tenuous border with Syria. solid advance in early action, with con- Abi Sab Group Holding Ltd 0.00 0.00 - Dai-Ichi Life Holdings Inc 2,133.00 0.59 2,915,400 lier this week over Iran, a major pro- “If the tension in the Middle East sumer price infl ation coming in cooler Rsa Insurance Group Plc 655.20 3.12 4,771,818 Mazda Motor Corp 1,448.50 -0.28 3,773,900 Royal Mail Plc 611.40 1.26 3,040,749 ducer of crude oil, has helped light a fi re does not subside, oil prices are likely than expected, while trade and geo- Mitsui & Co Ltd 1,934.50 -0.05 4,575,000 Royal Dutch Shell Plc-B Shs 2,693.00 -1.07 11,052,502 under the commodity, with both main to push higher in the short-term,” said political concerns remain relatively in Kao Corp 7,663.00 0.09 1,298,400 Royal Dutch Shell Plc-A Shs 2,633.50 0.00 5,304,445 oil futures contracts striking highs not analysts at Cantor Fitzgerald. check,” said analysts at Charles Schwab Sekisui House Ltd 1,989.50 -0.13 1,541,400 Royal Bank Of Scotland Group 286.50 3.77 54,453,987 brokerage. Oriental Land Co Ltd 11,225.00 -1.23 524,800 seen since the end of November 2014 On other markets yesterday, the Brit- Rolls-Royce Holdings Plc 824.60 -0.65 4,090,067 Secom Co Ltd 8,417.00 0.95 478,200 and speculation rampant they could go ish pound slid after the Bank of England US consumer prices rose by 0.2% in Rio Tinto Plc 4,196.50 1.68 2,259,004 Tokio Marine Holdings Inc 5,249.00 0.13 1,177,300 even higher. (BoE) held its key interest rate at 0.50% March, while analysts had been expect- Rexam Ltd 0.00 0.00 - Aeon Co Ltd 2,147.50 0.99 1,646,700 ing a stronger gain of 0.3%. Relx Plc 1,605.50 1.39 2,110,513 “In the aftermath of Donald Trump’s and slashed the growth forecast for the Fanuc Corp 23,030.00 -1.64 1,003,000 Reckitt Benckiser Group Plc 5,732.00 0.10 985,920 announcement on the Iran nuclear deal, British economy less than one year be- Briefi ng.com analyst Patrick O’Hare, Daito Trust Construct Co Ltd 18,645.00 0.78 214,800 Randgold Resources Ltd 5,674.00 -6.98 1,739,770 oil has continued to rally yesterday al- fore Brexit. noted that stocks rose following the Otsuka Holdings Co Ltd 5,291.00 -0.62 1,331,000 Prudential Plc 1,932.00 -0.13 4,086,218 though the gains the are being made “The pound has suff ered steep losses data, which “helped temper concerns Resona Holdings Inc 619.00 0.62 6,616,200 Provident Financial Plc 687.40 -1.18 921,193 Asahi Kasei Corp 1,518.50 -0.36 2,342,700 are now slowing,” noted Craig Erlam, once again against the dollar and other about the potential for the Fed to be Persimmon Plc 2,757.00 -0.58 747,703 Kirin Holdings Co Ltd 2,988.00 0.76 3,714,000 senior market analyst at Oanda trading major counterparts yesterday after the more aggressive than expected.” Pearson Plc 920.40 0.68 2,847,394 Mitsubishi Ufj Financial Gro 719.00 0.31 39,559,300 group, before investors began to take Bank of England kept interest rates un- The fi gures were the latest to illus- Paddy Power Betfair Plc 7,190.00 2.06 133,938 Marubeni Corp 866.90 0.25 8,351,500 Old Mutual Plc 260.90 2.31 7,983,794 their profi ts. changed as expected,” said FXTM re- trate that infl ation has not so far leap- Mitsubishi Chemical Holdings 1,039.00 2.01 10,950,500 Next Plc 5,568.00 6.14 1,752,754 “While it remains unclear what im- search analyst Lukman Otunuga. frogged to levels that would prompt the Fast Retailing Co Ltd 48,650.00 -0.41 320,300 National Grid Plc 843.90 -0.05 6,346,935 pact the sanctions – which are not The BoE now sees the British econo- Fed to lift interest rates more swiftly Ms&Ad Insurance Group Holdin 3,699.00 0.49 728,600 Mondi Plc 2,007.00 0.30 1,369,277 backed by the other countries that my growing by 1.4% this year, compared than the current pace. Kubota Corp 1,845.00 0.76 2,582,600 Merlin Entertainment 371.30 -0.27 1,018,896 Seven & I Holdings Co Ltd 4,762.00 -0.38 1,434,500 signed up to the initial agreement – will to an earlier forecast of 1.8% growth, Higher interest rates would increase Mediclinic International Plc 694.00 -1.76 1,190,022 Inpex Corp 1,449.00 3.35 5,722,900 have on output, the moves we’ve so far and infl ation to fall more quickly. costs for businesses and may tempt Marks & Spencer Group Plc 293.80 0.20 10,655,449 Sumitomo Mitsui Financial Gr 4,492.00 0.42 3,502,700 seen suggest there is a belief it will be Otunuga said this provides “less rea- investors to switch their money to gov- London Stock Exchange Group 4,471.00 1.57 360,309 Ana Holdings Inc 4,123.00 -2.34 1,307,100 Lloyds Banking Group Plc 66.86 0.48 139,243,517 signifi cant.” son to believe that the BoE will be in a ernment bonds. Mitsubishi Electric Corp 1,634.00 0.46 3,969,800 Legal & General Group Plc 280.00 0.29 13,801,616 Honda Motor Co Ltd 3,550.00 0.08 3,536,100 Land Securities Group Plc 976.10 -0.56 2,141,661 Tokyo Gas Co Ltd 2,871.50 -1.81 1,620,600 Kingfisher Plc 297.30 3.12 7,638,051 HONG KONG HONG KONG Tokyo Electron Ltd 21,245.00 0.69 728,300 Johnson Matthey Plc 3,446.00 1.14 286,336 Panasonic Corp 1,562.00 0.39 4,903,500 Itv Plc 160.35 6.05 34,242,862 Fujitsu Ltd 679.30 -0.34 7,756,000 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 198.60 1.35 3,657,335 East Japan Railway Co 10,710.00 0.56 462,000 Intl Consolidated Airline-Di 693.20 -0.17 5,436,265 Aluminum Corp Of China Ltd-H 4.41 0.46 13,473,940 Hong Kong & China Gas 16.68 0.36 12,181,439 Itochu Corp 2,033.50 0.00 5,523,900 Intertek Group Plc 5,100.00 0.83 230,819 Bank Of East Asia Ltd 33.85 -0.15 651,001 Hong Kong Exchanges & Clear 258.20 0.47 3,518,522 Fujifilm Holdings Corp 4,221.00 0.48 847,800 Intercontinental Hotels Grou 4,824.00 0.63 289,543 Bank Of China Ltd-H 4.17 0.24 172,237,685 Hsbc Holdings Plc 77.10 1.31 18,504,582 Yamato Holdings Co Ltd 2,898.50 -2.46 1,901,900 Inmarsat Plc 387.00 0.31 1,606,105 Bank Of Communications Co-H 6.22 -0.96 33,660,596 Hutchison Whampoa Ltd 0.00 0.00 - Chubu Electric Power Co Inc 1,735.50 -1.98 2,731,500 Informa Plc 755.20 -0.08 3,262,771 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 6.79 0.30 155,496,393 Mitsubishi Estate Co Ltd 2,005.50 0.40 2,618,200 Imperial Brands Plc 2,795.50 0.56 2,008,034 Boc Hong Kong Holdings Ltd 40.85 0.25 6,507,044 Li & Fung Ltd 4.23 0.95 17,427,670 Mitsubishi Heavy Industries 4,114.00 0.02 1,838,300 Hsbc Holdings Plc 731.70 1.70 29,641,423 Cathay Pacific Airways 12.96 0.78 4,789,021 Mtr Corp 45.70 1.33 4,845,842 Shiseido Co Ltd 7,201.00 -0.25 1,127,300 Hargreaves Lansdown Plc 1,881.50 0.80 491,373 Ck Hutchison Holdings Ltd 91.65 -0.16 4,100,142 New World Development 11.44 1.42 13,566,845 Shionogi & Co Ltd 5,668.00 3.49 1,716,600 Hammerson Plc 551.20 -0.33 1,853,107 China Coal Energy Co-H 3.49 1.45 13,502,176 Petrochina Co Ltd-H 6.05 1.68 263,951,244 Recruit Holdings Co Ltd 2,771.00 1.99 4,614,300 Glencore Plc 376.20 2.55 27,849,735 China Construction Bank-H 8.10 0.12 182,096,592 Ping An Insurance Group Co-H 77.35 0.52 28,945,411 Japan Airlines Co Ltd 3,985.00 -1.80 2,291,000 Glaxosmithkline Plc 1,477.00 -0.11 5,614,201 China Life Insurance Co-H 22.55 0.00 24,798,270 Power Assets Holdings Ltd 58.85 -0.59 7,135,680 Nitto Denko Corp 8,382.00 1.74 618,200 Gkn Plc 473.90 0.19 1,433,565 China Merchants Port Holding 17.48 0.69 3,258,628 Sino Land Co 13.20 0.00 2,945,104 Kddi Corp 2,884.00 0.82 3,619,900 Fresnillo Plc 1,294.50 -0.38 788,967 China Mobile Ltd 73.45 -0.14 10,175,119 Sun Hung Kai Properties 125.60 0.56 1,761,370 Rakuten Inc 813.90 0.82 6,735,300 Experian Plc 1,758.00 1.15 1,529,587 China Overseas Land & Invest 26.90 0.37 12,370,747 Swire Pacific Ltd - Cl A 76.85 -0.52 786,077 Kyocera Corp 6,750.00 1.29 1,071,800 Easyjet Plc 1,689.50 1.90 2,039,585 China Petroleum & Chemical-H 8.00 1.52 169,476,159 Tencent Holdings Ltd 406.20 2.94 31,117,306 Nissan Motor Co Ltd 1,110.50 1.05 10,195,600 Dixons Carphone Plc 221.40 -0.09 3,346,461 China Resources Beer Holdin 35.35 0.57 3,605,153 Wharf Holdings Ltd 25.25 -0.39 3,746,304 Direct Line Insurance Group 373.50 0.62 3,027,358 China Resources Land Ltd 28.95 -1.53 7,418,546 China Resources Power Holdin 15.00 0.40 14,419,258 Diageo Plc 2,670.00 0.39 2,793,866 SENSEX Dcc Plc 7,460.00 0.88 137,784 China Shenhua Energy Co-H 20.45 3.49 32,230,010 GCC INDICES Crh Plc 2,720.00 0.37 1,129,507 China Unicom Hong Kong Ltd 10.68 -0.56 10,784,257 Compass Group Plc 1,516.00 0.53 2,863,426 Company Name Lt Price % Chg Volume Citic Ltd 11.80 -0.51 4,142,026 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,540.00 3.00 1,467,608 Clp Holdings Ltd 81.95 0.12 1,987,725 Doha Securities Market Zee Entertainment Enterprise 588.40 -0.52 3,196,452 8,749.65 -74.61 Centrica Plc 146.50 -5.76 32,882,776 Cnooc Ltd 13.90 2.81 113,141,191 Saudi Tadawul Yes Bank Ltd 344.65 -0.92 7,682,445 7,914.27 +35.98 Carnival Plc 4,858.00 1.27 428,451 Cosco Shipping Ports Ltd 6.89 -0.14 2,078,110 Kuwait Stocks Exchange Wipro Ltd 270.45 0.07 1,864,308 #N/A N/A #N/A N/A Capita Plc 128.55 5.30 14,024,388 Esprit Holdings Ltd 2.52 -0.79 4,550,059 Bahrain Stock Exchage Vedanta Ltd 279.70 -1.22 9,356,351 1,270.74 -0.31 Burberry Group Plc 1,792.00 1.24 1,826,519 Fih Mobile Ltd 1.27 4.96 14,669,970 Oman Stock Market Ultratech Cement Ltd 3,998.55 0.81 269,990 4,681.51 +5.02 Bunzl Plc 2,242.00 1.82 812,761 Hang Lung Properties Ltd 18.50 -0.32 3,162,551 Abudhabi Stock Market Tech Mahindra Ltd 663.60 1.45 4,068,076 4,437.83 -48.82 Bt Group Plc 221.05 -7.36 88,407,771 Hang Seng Bank Ltd 200.40 1.98 1,262,956 Dubai Financial Market Tata Steel Ltd 594.15 -1.49 4,235,167 2,881.80 -7.90 British Land Co Plc 689.40 0.67 2,729,278 Henderson Land Development 49.80 0.00 2,018,797 Tata Power Co Ltd 82.00 -1.62 5,933,086 British American Tobacco Plc 3,915.00 0.15 2,678,968 Tata Motors Ltd 333.60 -2.44 11,940,878 Bp Plc 564.00 -1.40 39,626,946 Tata Consultancy Svcs Ltd 3,451.25 -1.09 1,991,160 Bhp Billiton Plc 1,669.40 2.30 7,372,574 Sun Pharmaceutical Indus 497.20 -1.77 4,404,624 Berkeley Group Holdings/The 4,145.00 0.07 350,371 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 247.95 -0.02 14,283,847 Barratt Developments Plc 558.40 -1.72 3,862,496 Reliance Industries Ltd 981.15 0.46 4,334,599 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 213.80 1.35 35,114,572 Punjab National Bank 91.40 -1.72 12,245,151 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 619.00 0.81 6,827,652 Power Grid Corp Of India Ltd 208.00 -1.82 8,657,783 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 765.80 1.40 1,251,737 Oil & Natural Gas Corp Ltd 188.25 2.95 11,274,263 this data.” Aviva Plc 541.60 0.18 7,378,959 Ntpc Ltd 168.50 -1.12 8,727,487 Astrazeneca Plc 5,252.00 -0.10 2,341,774 Maruti Suzuki India Ltd 8,704.95 -0.15 317,953 Associated British Foods Plc 2,795.00 1.97 892,204 Mahindra & Mahindra Ltd 856.50 -0.42 1,431,928 Ashtead Group Plc 2,232.00 1.45 1,098,089 Lupin Ltd 755.55 -0.87 1,448,026 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,362.20 -0.98 1,331,356 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 1,040.00 2.61 2,075,978 DINAR DINAR Kotak Mahindra Bank Ltd 1,247.50 -0.29 1,031,109 Anglo American Plc 1,800.20 2.87 4,095,385 Itc Ltd 280.15 -0.76 6,012,897 Admiral Group Plc 1,972.00 -1.99 487,363 Infosys Ltd 1,168.00 -0.23 1,669,735 3I Group Plc 974.60 1.88 1,515,269 Indusind Bank Ltd 1,885.35 0.33 2,760,749 Idea Cellular Ltd 58.35 -3.79 19,999,128 Icici Bank Ltd 306.85 0.02 17,380,758 TOKYO Housing Development Finance 1,894.30 -0.18 1,187,953 Hindustan Unilever Ltd 1,486.50 -0.64 1,054,671 Hindalco Industries Ltd 241.30 1.32 10,183,116 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,646.00 -0.23 370,786 Hitachi Ltd 864.30 -0.06 14,251,000 Hdfc Bank Limited 1,992.70 0.72 1,848,455 Takeda Pharmaceutical Co Ltd 4,621.00 2.03 10,766,600 Hcl Technologies Ltd 930.20 0.29 1,954,960 Jfe Holdings Inc 2,345.50 0.69 2,063,600 Grasim Industries Ltd 1,093.05 -0.17 982,149 Sumitomo Corp 1,925.50 -1.18 3,486,400 Gail India Ltd 340.00 -0.56 3,550,207 Canon Inc 3,790.00 0.03 3,346,800 Dr. Reddy’s Laboratories 1,989.60 -3.62 703,589 Nintendo Co Ltd 45,500.00 -1.60 1,707,100 Coal India Ltd 269.35 0.75 4,099,522 Eisai Co Ltd 7,339.00 0.60 482,800 Cipla Ltd 575.50 -2.13 2,261,976 Isuzu Motors Ltd 1,645.50 1.51 1,623,400 Cairn India Ltd 0.00 0.00 - Unicharm Corp 3,188.00 0.79 2,362,200 Bosch Ltd 18,693.55 -1.22 15,804 Shin-Etsu Chemical Co Ltd 11,270.00 1.71 1,152,200 Bharti Airtel Ltd 412.10 2.40 8,381,074 Smc Corp 41,600.00 -0.74 134,700 Bharat Petroleum Corp Ltd 390.20 1.23 4,418,728 Mitsubishi Corp 3,187.00 0.60 3,825,900 Bharat Heavy Electricals 80.60 -3.59 10,589,106 Asahi Group Holdings Ltd 5,845.00 -1.00 1,421,100 Bank Of Baroda 138.65 -3.92 11,232,225 Keyence Corp 67,690.00 1.74 218,900 Bajaj Auto Ltd 2,827.50 -1.55 241,824 Nidec Corp 16,930.00 0.86 426,300 Axis Bank Ltd 547.65 -0.15 11,833,472 Nomura Holdings Inc 610.00 0.99 10,319,200 Asian Paints Ltd 1,217.70 -0.40 2,015,414 Daiichi Sankyo Co Ltd 3,835.00 -0.29 1,184,500 Ambuja Cements Ltd 220.05 -2.05 3,677,828 Subaru Corp 3,692.00 0.82 2,140,000 Adani Ports And Special Econ 410.80 -0.62 1,614,320 Ntt Docomo Inc 2,792.50 -0.09 2,206,100 Acc Ltd 1,493.85 -1.05 258,125

Gulf Times Friday, May 11, 2018 9 BUSINESS Malaysian markets leery over Najib’s defeat, Mahathir’s return

Reuters Minister Najib Razak’s Barisan Nasional corruption on a massive scale. Mahathir majority of seats in the 222-member Foreigners hold nearly half of all out- “At a time of growing pressure on Singapore (BN) coalition. must first obtain a pardon for Anwar, who parliament. standing Malaysian government bonds. emerging market currencies and bonds, The ringgit lost 4% in off shore trading, is currently in jail on a sodomy conviction Meantime the shock of Najib’s defeat The equity market is Asia’s top per- the situation in Malaysia bears careful while an overseas Malaysian equity fund that he and independent observers say reverberated through markets. former after Vietnam, with more than 7% watching for potential knock-on eff ects, A fall in the Malaysian ringgit in showed a 6% drop in share values. was politically motivated, and then Anwar “This upset ranks up there with Brexit gains this year in dollar terms. particularly as rising rates and geopoliti- offshore trading and a rise in the cost “A classic knee-jerk reaction is in play,” needs to win a parliamentary seat before and Trump election,” said Aninda Mitra, While most banks are disallowed by cal uncertainties remain live in the back- of insuring the country’s debt showed Eli Lee, head of investment strategy at becoming prime minister. a senior sovereign analyst at BNY Mellon regulators from actively participating in drop,” said Bank of Singapore’s Lee. how nervous investors were yesterday Bank of Singapore, said in a note. At the same time there are questions Investment Management. “I believe the the non-deliverable forward markets for Still, analysts expect the ringgit will find after a stunning election defeat of the But others stressed the uncertainties hanging over the fate of Najib, given the ringgit will come under pressure as policy ringgit, the NDFs showed a 4% fall in the support once the jitters over the election coalition that had ruled Malaysia for six abounding as Malaysia’s politics moved possibility Mahathir and Anwar, whose continuity will come under a cloud.” 3-month tenor, to 4.12 per dollar. ebb. decades. into uncharted territory. reputation as a reformist is largely built on If Mahathir’s coalition takes over the The currency was last traded at 3.9480 As a net oil exporter and one of Asia’s Malaysia’s stock, bond and currency “As this is the first time in Malaysia’s standing against corruption, could reopen government, investors have to grapple onshore on Tuesday and has been a higher growth economies, the country is markets were closed yesterday and will history that the ruling coalition has lost a Malaysian investigation into a sovereign with the impact of the PH’s pledges to relative outperformer in the region as a also seen retaining its appeal for foreign be closed today after the government power, markets are understandably anx- fund that is the focus of a US kleptocracy abolish a goods and services tax, restore a combination of rising US yields, recover- investors. declared them public holidays while ious to see a peaceful and orderly transfer probe. petrol subsidy, increase minimum wages ing oil prices and global trade tensions “The ringgit has scope to outperform the Southeast Asian nation faced a seis- of power,” Mizuho Bank said in a note. Najib has consistently denied any and review infrastructure projects. have sapped most high-yielding emerging the region once the dust has settled with mic change in its political landscape. The 92-year-old Mahathir, who had wrongdoing. “The impact on the ringgit is likely via market currencies. steady domestic growth path amid lower That left thinly traded off shore ringgit retired 2003 after leading BN govern- Adding to market worries, Najib ap- the sentiment channel with perceived risk The US-traded iShares MSCI Malay- inflation,” wrote Sue Trinh, head of Asia FX markets to absorb the selling after elec- ments for 22 years, says he intends to be peared to raise doubt that Mahathir would associating with the transition of govern- sia exchange traded fund (ETF) fell 6% strategy at RBC Capital Markets. tion results showed Pakatan Harapan sworn in as the new prime minister before succeed him, telling a news conference it ment,” said Frances Cheung, head of overnight. “There is upside risk to our 3.93 end- (PH), an alliance of opposition parties handing over the role to Anwar Ibrahim, would be up to Malaysia’s king to decide macro strategy at Westpac. “The impact The cost of insuring against default on 2018 forecast but we are for now reserv- spearheaded by former prime minister the former enemy he allied with to topple who should be the next prime minister, on the fiscal balance is the first thing to Malaysian debt rose to 84 basis points ing judgement until we see Mahathir’s Mahathir Mohamad had defeated Prime Najib, who they have both accused of since no single party had won a simple watch.” from 78 before the election. policies fleshed out in greater detail.”

Walmart BoJ chief signals debate on to comply with tax rule on conditions for stimulus exit Flipkart Reuters Tokyo deal: CEO ank of Japan governor Haruhiko Kuroda said the central bank Bloomberg Bcould debate conditions for exit- New Delhi ing from ultra-easy policy if prospects for achieving its infl ation target im- prove, reminding markets his radical almart Inc will com- stimulus programme won’t last forever. ply with any tax de- But he refrained from dropping hints Wmand arising from on the timing of an exit and warned that its purchase of a stake in India’s it could take more time than expected e-commerce leader, a move that to drive up infl ation, suggesting the BoJ could help the global giant avoid was in no rush to follow in the footsteps festering litigation that over- of its US peer in dialling back stimulus. seas companies such as Voda- “When the possibility of achieving fone Group Plc face in the South our price target heightens, conditions Asian nation. for an exit would fall into place,” Kuroda “Our intent is, whether look- told a seminar yesterday. ing backwards related to our “The BoJ’s policy board could then acquisition here or looking for- discuss conditions for an exit,” he said, ward, we will be compliant with giving the strongest signal yet on the whatever the tax rules are,” chances of beginning a debate over how Walmart chief executive offi cer to end the bank’s crisis-mode policies. Doug McMillon told reporters in A summary of the BoJ’s rate review New Delhi. in April showed on Friday the bank was The world’s biggest retailer working to prepare markets for a future led a group that bought a 77% withdrawal of its stimulus, with some stake in Flipkart Online Services policymakers calling for more scrutiny Pvt in a deal valuing the Indian of the rising cost of prolonged easing. company at about $21bn. In a speech delivered at the seminar, In its decade-long existence Kuroda pointed to risks that could delay in India, Vodafone has spent a achievement of its price target, such as large part fending off tax claims the chance infl ation expectations may on its 2007 acquisition of the not increase smoothly. Indian unit of Hong Kong-based With the economy in good shape and Hutchison Whampoa Ltd, now the labour market tightening, the key to part of CK Hutchison Holdings achieving 2% infl ation was to change Bank of Japan governor Haruhiko Kuroda attends a news conference in Tokyo. Kuroda rejected views the cost of easing exceeded its merits, saying he did not see the Ltd. public perceptions that prices won’t BoJ’s policy nearing a limit. Vodafone says no tax is pay- rise much, he said. able as the transaction was done “If there is strong uncertainty about heighten infl ation expectations.” its stimulus programme would boost not see the BoJ’s policy nearing a limit. will fall, Kuroda said. “When assess- off shore while Indian authorities future growth, fi rms will hesitate to The remarks, which came in the wake infl ation expectations – key to meeting Once infl ation expectations height- ing the extent to which interest rates claim otherwise. raise wages,” he said. “We need to keep of the BoJ’s decision last month to drop its price goal. en, the stimulative eff ect of the current stimulate economic activity and prices, Cairn Energy Plc was also or- in mind that it might take a fair amount any timeframe for meeting its price Kuroda rejected views the cost of eas- policy will increase as real interest rates, it’s essential to consider the level of real dered to pay $1.6bn in taxes for of time” before actual rises in prices goal, underscore its waning conviction ing exceeded its merits, saying he did or infl ation-adjusted borrowing costs, interest rates,” he said. selling a stake in Cairn India Ltd. McMillon said the retailer plans to run its cash-and-carry business and online retail in the Asian nation separately for some time and will explore the option of implementing Flipkart’s pay- China producer infl ation picks up in April ments ecosystem, including the PhonePe application in other countries. Reuters at a slower pace, offi cial data showed accelerating from a 17-month low of price rises could bolster profi ts for in- from March. The food price index rose Walmart’s international reach Beijing yesterday. Analysts and investors are 3.1% in March, the National Bureau of dustrial fi rms, which saw earnings 0.7% from a year earlier, after rising sprawls across 6,360 stores in closely watching producer infl ation Statistics (NBS) said yesterday. growth slow to the weakest pace in over 2.1% in March as distortions from the about two dozen countries from in China for signs of a long-expected On a month-on-month basis, the a year in March. long Lunar New Year holiday receded. Argentina to Zambia. hina’s producer infl ation picked economic slowdown that would weigh PPI declined 0.2%. The consumer price index (CPI) rose Non-food prices rose 2.1%, the same Many were acquired during a up for the fi rst time in seven on industrial profi t growth and invest- Analysts polled by Reuters had ex- 1.8% from a year earlier, marginally as a month ago. buying spree from 1999 to 2009, Cmonths in April, bolstered by ment, even if there are no trade shocks. pected April producer infl ation would lower than expectations and slowing While neither Washington nor Bei- but that era of aggressive fl ag- surging commodities prices and sug- But the country’s commodity futures rebound to 3.5% as steel mills stocked from March’s gain of 2.1%. jing has set a hard timeframe for the planting is long over. gesting industrial demand remains re- markets are notoriously speculative, up on raw materials such as iron ore and On a month-on-month basis, the imposition of tit-for-tat tariff s, there Today, its international busi- silient even as trade tensions ratchet up making it diffi cult to tell if price swings coking coal to meet a seasonal surge in CPI declined 0.2%. are worries that the threat of disrup- ness accounts for less than a with the United States. are pointing to a real change in underly- construction activity. The core consumer price index, tions and higher costs could start to add quarter of Walmart’s total reve- But consumer infl ation eased from ing demand. The producer price index Crude oil and fuel prices have also which strips out volatile food and ener- upward pressure on infl ation in China nue, down from almost 30% fi ve the previous month as food prices rose (PPI) rose 3.4% in April from a year ago, been on the rise. Sharper factory-gate gy prices, rose 2% in April, unchanged ranging from factory fl oors to farms. years ago.

Chinese banks pitching safety and returns lure customers into deposits

Reuters Wang as a fine alternative. “I’m thinking customers. Compared to the guaranteed Investors are attracted by these new are off their balance-sheets and hence the WMPs, said Qiu Gaoqing, chief analyst at Shanghai of moving my money into ‘Wisdom & Re- 5-percent-plus returns on wealth manage- bank deposits because they off er them a target of the government crackdown on BoComm. “They really need to tighten ward’ so that I can sleep sound at night,” ment products, these deposits simply sense of safety as well as the possibility of shadow banking, grew less than 2% last their belts.” Wang said. “I can live with lower returns.” guarantee the principal and an undefined high returns – actual yields are linked to year to 29.54tn yuan. Lenders such as Ping An Bank and At a Hua Xia Bank branch in Shanghai’s Risk-averse customers such as Wang yield of anywhere between 1.5% and 8%. the performance of the underlying assets WMPs are expected to shrink further China Merchants Bank have already seen financial district, Wang Shujuan, a 72-year- are sought-after trophies in an escalat- But they are selling well. the banks use derivatives to bet on. this year, snapping a streak of breakneck shrinking margins during the first quarter, old retired doctor, is looking at moving ing deposit war between banks, whose Bank of Communications (BoComm) Banks are embedding derivatives into growth averaging 50% during the 2011- despite higher loan demand in a recover- her money out of a high-yielding wealth wealth management businesses face an has launched a series of structured regular savings deposits to generate 2015 period. ing economy. management product into a bank deposit existential threat from the tougher asset deposits that indicate annualised returns higher yields for clients. As their role as intermediaries in Another concern is that banks will use bearing an indefinite rate of return. management rules, which were published exceeding 4% – much higher than the China Merchants Bank has pegged its wealth management products diminishes, these structured deposits as a new tool For Wang and other Chinese retail last month. benchmark one-year deposit rate of 1.5%. deposit rates to gold prices. banks are desperate to retain clients and to circumvent regulations, particularly as investors opting for this new, aggressive- According to the rules, designed “Many clients like this product, because Bank of China is marketing a deposit deposits. The intense competition has there are no dedicated rules governing ly-marketed “Wisdom & Reward” product to reduce risks in China’s $15tn asset it’s principal-guaranteed,” said Chen Chen, product that bets on the exchange rates however seen heavy inflows of retail cash these products. the decision seems perfectly rational. management sector, explicit or implicit a BoComm customer manager, adding of the US dollar and Japanese yen. into bond funds and money market funds Some of the products don’t specify Under China’s new rules for its asset guarantees, a common practice used by that several tranches of the products had Central bank data shows these prod- this year. how much of a client’s money will be management industry, banks’ wealth banks to woo customers seeking higher been sold out soon after launching. ucts have caught on. While it’s early days, the risk is that diverted to derivatives trading, and how management products (WMP) are no returns than deposits, are banned. The structured deposit is further Outstanding structured deposits at these new deposits push up bank funding gains are distributed. longer allowed to off er guarantees on Fearful of a client exodus, banks are evidence of China’s struggle to regulate Chinese banks jumped 47% from a year costs and threaten their margins. “Structured products could be quite the principal and returns. “Wisdom & aggressively marketing structured depos- its massive banking sector, where every earlier to 8.8tn yuan ($1.38tn) at the end “Life would be especially tough at tricky,” said Zhou Liang, fund manager at Reward”, a principal-protected structured its – a combination of mundane savings regulatory attempt to reduce risk leads to of March. smaller lenders whose rapid growth Minority Asset Management, who holds deposit product, is seen by investors like and risky derivative trading – to retain innovative products to circumvent curbs. In contrast, bank WMPs, most of which was driven by aggressive expansion” in shares in Chinese lenders. Gulf Times 10 Friday, May 11, 2018 BUSINESS

Sensex Asia equity markets, energy snaps 3 sessions fi rms rally with oil prices of gains AFP Bloomberg Hong Kong Mumbai

rude prices extended their rally ndia’s benchmark equity in- yesterday, propelling Asian en- dex fell, snapping three ses- Cergy fi rms and equity markets, Isions of gains as investors fo- as rising demand and Donald Trump’s cused on company earnings and decision to tear up the Iran nuclear deal rising crude oil prices. point to a thinning of supplies. The S&P BSE Sensex fell 0.2% While broadly expected, the presi- to 35,246.27 in Mumbai, after dent’s announcement has helped light a surging as much as 0.5% to a fi re under oil, with both main contracts three-month high earlier in the now sitting at highs not seen since the day. end of November 2014 and speculation Sixteen of 19 sector sub- they could go even higher. indexes compiled by BSE Ltd The decision Tuesday comes as data declined, led by a gauge of real shows US stockpiles are dwindling, estate companies. Dr Reddy’s major producer Venezuela is wracked Laboratories Ltd was the worst by economic upheaval, and Opec and performer on the Sensex. Russia press on with an output cap. “There are multiple factors “Unsurprisingly, crude continues to impacting markets including the trade actively following the US pull- elections in Karnataka, rising oil ing out of (the Iran pact) as the deci- prices and a depreciation in the sion poses signifi cant supply risk in the rupee,” AKPrabhakar, head of context of the delicately balanced sup- research at IDBI Capital Market ply and demand matrix,” said Stephen Services Ltd. “A number of com- Innes, head of Asia-Pacifi c trading at pany earnings have also been be- OANDA. low estimates.” He added that “unless there are some Of the 23 Nifty companies that production increases from the Opec/ have posted quarterly results so Non-Opec accord to off set the drop in far, 14 have missed analyst esti- Venezuelan production, and the ex- mates on profi t. Brent crude rose pected decline of the Iranian output, as much as 1% yesterday to $78 prices could be in for a signifi cant leg per barrel, its highest level since higher. November 2014. “Of course, there is little indication India imports nearly three that the accord will be looking to inter- fourth of its oil requirements. vene” but eyes are now on Opec’s meet- The Karnataka state poll will be ing in Vienna on June 21. held on May 12, with results an- Both main oil contracts, which rose nounced on May 15. around 3% on Wednesday, were almost Meanwhile, the embattled ru- 1% up in Asia. pee yesterday dropped further The gains fed into energy fi rms with by fi ve paise to end at a fresh Woodside Petroleum surging 5.1% in 15-month low of 67.32 against Sydney, CNOOC more than 3% in Hong the American currency on steady Kong and Tokyo-listed Inpex piling on Traders at the Tokyo Stock Exchange. The index ended up 0.4 % at 22,497.18 points yesterday. dollar demand from banks and 3.4%. importers. Stock markets were also benefi ting. 0.8% higher, while Wellington, Tai- general election. “This tug-of-war re- cial, told Bloomberg News. “This is a the China-US trade spat, with Xi Jin- Currency traders and specu- Hong Kong rose 1% at 30,827.17 after pei and Manila were deep in positive mains in the market, regardless of the market that has to sort that out, and ping’s top economics adviser heading lators also took into account the three straight gains, Shanghai fi nished territory. positive headlines on North Korea, re- that 10-year (US Treasury) yield fl irt- to Washington next week for fresh talks rise of Middle-East tensions af- 0.5% higher at 3,174.41 and Tokyo end- However, Singapore was off 0.2%. gardless of the positive headlines on ing with 3% again is a refl ection of that after a high-level meeting between the ter the decision of US President ed up 0.4 % at 22,497.18. Trade in Malaysian equities and the earnings,” Quincy Krosby, the chief tug-of-war.” economic powers ended with no agree- Donald Trump to withdraw from Sydney added 0.2% and Seoul was Malaysian markets are closed for the market strategist at Prudential Finan- Dealers are also keeping an eye on ment last week. the nuclear deal with Iran. Strong commodities, Is the dollar rally going further?

Reuters tepid dollar lift EMs London he dollar’s near-5% rally against a bas- Reuters ket of currencies in the space of just London Tthree weeks has brought it up against some critical technical levels, which could give fresh legs to the greenback if successfully merging market equities broken. extended gains and some The initial catalyst was the realisation that Ecurrencies bounced yes- some of the world’s biggest central banks, no- terday as a tepid dollar and ris- tably the European Central Bank, would not in ing oil prices off set tensions over the near-term follow the example of the US Iran’s nuclear deal, while Malay- Federal Reserve in raising interest rates from sia’s surprise election outcome crisis-era lows. reverberated through Asian mar- But there are other factors too. kets. From the widening interest rate diff eren- MSCI’s emerging market index tial in favour of the United States to investors’ rose 0.7% in its fourth straight need to unwind some of the short dollar posi- day of gains, lifted by solid gains tions they had built up over the past year and in Asia. low market volatility, all these are conspiring IT stocks across develop- to make the dollar more attractive. The dollar’s near-5% rally against a basket of currencies in the space of just three weeks ing markets jumped 1.4% in the “It is certainly shaping up to be another has brought it up against some critical technical levels, which could give fresh legs to the slipstream of gains by developed incredibly bullish trading week for the green- greenback if successfully broken. peers. back, which has punched above 93.35, its Adding to the momentum were highest level this year,” said Lukman Otunuga, cal levels. David Madden, markets analyst at a while, has been negated because the lows we higher oil and copper prices. a research analyst at FXTM, a currency broker. CMC Markets reckons the dollar has recently saw in January and February were multi-year The former hit more multi- “The dollar index remains heavily bullish completed what is known as a “double-bot- lows,” Madden said. “So we could push on year highs as markets adjusted on the daily charts as there have been consist- tom” reversal. higher from here.” to the prospects of renewed US ently higher highs and higher lows.” According to technical analysis website, For instance, the dollar broke through a sanctions against major crude On three major market metrics – valua- StockCharts.com, this is a bullish reversal 200-day moving average against the British exporter Iran. Following a bruis- tions, positioning and technical indicators pattern, made up of two consecutive troughs pound last week for the fi rst time in a year. ing few days, some emerging – the dollar looks set for more gains, market that are roughly equal, with a moderate peak- A rise to around $1.3257 would mark the currencies made the most of the players reckon. Against some of its major ri- in between. “There’s a good argument to be 50% range of the pre-Brexit referendum high dollar taking a breather. vals, the dollar is perched at some key techni- made that the downward trend that was in for of $1.5022 and an October 2016 low of $1.1491. “While oil remains on its up- ward drive – not least because of the increased tension in the Middle East with apparent at- European flotations falter as investors hold line on price tacks between Israel and Syria/ Iran – some dollar and US Treas- ury calming (is) leaving emerg- Reuters trading performances of several of them, has ing to off er,” the banker said. The aftermarket ing market FX mixed,” Simon London/Frankfurt given investors pause for thought. is also playing a role with Swiss-based Ceva Quijano-Evans, emerging mar- “The market is oversaturated and IPO Logistics, Deutsche Bank’s asset management kets strategist at Legal & General investors scared off by poor after-market per- unit DWS, Dutch bank NIBC and Spanish real Investment Management, wrote An increasing number of companies are failing formance of IPOs,” an equity capital markets estate company Metrovacesa trading down in in a note to clients. “high access stand-by” fi nanc- ness ahead while the country’s to get over the start line in this year’s race to banker familiar with the Springer IPO said. the days after their debuts. Others have fared South Africa’s rand and Mex- ing arrangement from the Inter- credit default swaps hit the high- the public markets in Europe, the Middle East IPOs are historically a stop-and-start market better, but overall gains are limited. ico’s peso strengthened around national Monetary Fund (IMF) to est level in at least a year. and Africa as investors take a harder line on and it is not unusual for companies and their “While overall valuations have come off 0.5%, while China’s yuan also calm volatile fi nancial markets. Former Prime Minister Ma- the price they will pay. advisers to miss the boat in terms of timing, or recent highs due strong corporate earnings, edged higher. Turning to the IMF is a po- hatir Mohamad’s possible return German publisher Springer Nature became to have over-inflated price expectations. stocks of European companies which floated Turkey’s lira edged 0.2% high- litically risky move for business- to power is set to raise concerns the largest European firm to cancel its initial Equity markets have not risen much in 2018: this year are only up approximately 2% on er after investors digested the friendly President Mauricio among investors over the eco- public off ering (IPO) this year, and at least for example the FTSE 100 is down 0.7% year average,” Christoph Stanger, co-head of equity outcome of an emergency meet- Macri, who was elected in late nomic outlook, including his 13 others have pulled previously announced to date and the STOXX Europe 600, which capital markets in Europe Middle East and ing between President Tayyip 2015 after 12 years of leftist gov- likely plans to scrap goods and IPOs, although 52 still went ahead, an analysis represents 90% of the freefloat market of the Africa at Goldman Sachs said. Erdogan and members of the ernment. services taxes which would hit of Thomson Reuters data shows. European stock market is up 0.6%. Equity capital markets bankers, those who ad- government’s economic team. Many Argentines blame the government revenues. Global IPO proceeds rose to $39bn in the So while many companies in Europe have vise companies on the pricing, timing and inves- Policymakers agreed to take IMF for imposing policies on Ar- Ratings agency Moody’s said first quarter, the highest since 2014, with the produced strong results, pricing for buyers tor appetite for their IPOs, say that the market is measures to ease interest rates at gentina that led to a deep fi nan- the result left the country in un- proceeds from European listings more than and sellers has got out of kilter. not shut to new issuers. “Investors are subjecting the gathering in a move unlikely cial crisis in 2001 and 2002. charted territory and could be tripling to $13bn. And IPOs in Europe Middle “While stock market indices are flat, good IPOs to strict scrutiny, they are kicking the tyres to assuage investor concerns Meanwhile a shock election credit negative. East and Africa have raised $16.5bn, versus company earnings mean that companies and looking under the bonnet, and they want about double-digit infl ation. victory by Malaysia’s nonage- Malaysia’s central bank kept $11.2bn in the same period last year. But trade on average at 15 times price to earnings, to make sure that the valuations are attractive But there was no let-up on the narian opposition leader saw the its key interest rate unchanged at despite low market volatility and a broadly compared to 16 times last year. enough for a sustainable after-market,” Craig horizon for Argentina, with the ringgit dip in off shore trading a scheduled meeting, citing low- positive economic outlook, this flood of new So investors are asking for higher discounts Coben, vice chairman of global capital markets peso weakening 0.5% after Bue- with non-deliverable currency er infl ation and steady economic listings, combined with poor stock market to buy into IPOs, something sellers are not will- at Bank of America Merrill Lynch. nos Aires said it would request a forwards pointing to more weak- growth opposition. Gulf Times Friday, May 11, 2018 11 BUSINESS Buying in India, selling in UK: What Walmart will do next Bloomberg ues to spill red ink and higher labour which owns Walmart shares. New York expenses from this year’s wage hike – Stoeckle and other investors were have forced McMillon into hard choic- encouraged when Walmart’s fi nance es. Some, like selling the British Asda chief, Brett Biggs, said in October that he sun never sets on Walmart stores, were welcomed by Wall Street, he’s “open to taking action” to sim- Inc’s empire, thanks to its net- but Wednesday’s deal got a rude wel- plify operations. Getting leaner should Twork of stores across fi ve conti- come from investors, who raised con- help Walmart devote more focus and nents. But in the span of 10 days, chief cerns about Flipkart’s steep losses and fi repower to its escalating battle with executive Doug McMillon has begun asked whether Walmart’s cash would Amazon, which is trying to crack cat- dramatically redrawing the retailer’s be better spent elsewhere. S&P Glo- egories like food and apparel, long map, and there’s likely more to come as bal Ratings said the heavy spending to Walmart strongholds. Acquiring e- it places bets to remain on top. compete with Amazon could threaten commerce startup Jet.com two years “All of a sudden, everything is in Walmart’s pristine credit rating. ago has helped, but the Flipkart deal play,” said Dave Marcotte, an analyst at McMillon defended the Flipkart deal suggests that future moves will likely Kantar Retail. to analysts, saying it was a unique op- come outside the US. In less than two weeks, Walmart portunity. He’s certainly mindful of In Brazil, a nation just coming back has agreed to cede control of its Brit- past missteps abroad, such as his 2011 after a two-year recession and politi- ish business to a competitor and spend decision to buy an unprofi table, sec- cal unrest, Walmart has already closed $16bn to acquire India’s e-commerce ond-tier online marketplace in China stores, overhauled management and leader in its biggest-ever deal, fend- that’s forced the company to play wound down its e-commerce plat- ing off Amazon.com Inc. The wheeling catch-up to Alibaba – the Amazon of form. It’s now reportedly considering and dealing show how McMillon is fo- China – ever since. selling a majority stake in the unit, cusing on high-potential markets like Walmart’s international reach which includes a dozen diff erent store China and India, fi nding partners to sprawls across 6,360 stores in about types that could easily get broken up by help it battle online and cutting loose two dozen countries from Argentina a new owner. middling businesses. He’s got more to Zambia. Many were acquired dur- “Would I prefer they take capital out work to do, though, and subpar mar- ing a buying spree from 1999 to 2009, of Brazil and put that toward battling kets like Brazil and Japan might be next but that era of aggressive fl ag-planting Amazon? Sure,” Stoeckle said. on his list. is long over. Today the international Japan is another potential trouble Walmart’s far-fl ung international business accounts for less than one- spot. Walmart’s big-box, one-stop units don’t get much attention, but quarter of Walmart’s total revenue, shopping model has never caught on they’re important as a source of cash, down from nearly 30% fi ve years ago. there, and today its Seiyu chain sits far management talent and ideas that per- That share will decline further after behind leaders Seven & i Holdings Co colate into its core US operations. Sales Walmart’s decision to merge its Asda and Aeon Co, according to data tracker The Walmart logo is displayed on a screen on the floor of the New York Stock Exchange. Walmart’s international reach growth outside the US once topped business in the UK with Sainsbury Plc, Euromonitor. As with other Asian mar- sprawls across 6,360 stores in about two dozen countries from Argentina to Zambia. more than 10% annually, adjusted for retreating from a market that was once kets like China and India, success in currency moves, but it’s less than half its shining star abroad. Other moves Japanese retail is more about clicks than that market is online,” Kantar’s Mar- to capital-gobbling traditional stores. and we could see something smart be- that now as sluggish economies, store are expected to follow, as the Asda sale bricks. Walmart has taken steps to im- cotte said. “There’s certainly going to be a ing done there.” With Walmart’s shares closures and fi erce competition have “was the fi rst volley” in a broader re- prove its digital business, teaming with Walmart could go further, cutting a bright-light audit on Japan,” said Bill down about 16% this year, after two taken their toll. shuffl e of Walmart’s global holdings, local player Rakuten Inc earlier this year deal with Rakuten or another Japanese Dreher, an analyst at Susquehanna In- straight years of increases, McMillon Those pressures – combined with a said Mark Stoeckle, portfolio manager to revamp its online grocery service. company that allows it to focus on the ternational Group. “The growth and needs to cast a bright light across Wal- US e-commerce business that contin- of the Adams Diversifi ed Equity Fund, “The only route they have to grow online business and lessen its exposure margins of Seiyu are underwhelming mart’s entire map.

CORPORATE RESULTS Panasonic profit soars on automotive business growth

in the three months ended March 31, up from improvement in the weather in April led to 2.59mn bpd a year earlier. better-than-expected first-quarter sales. The Enbridge Mainline system is Canada’s Shares in Next rose 6.2%, the top FTSE riser, largest transporter of crude oil. after it guided towards a full-year pretax profit of It originates in Edmonton, Alberta and extends £717mn ($972mn), up from a previous forecast east across the Prairies to the Canada-US border of £705mn. near Gretna, Manitoba. Next has been one of Britain’s most successful Calgary-based Enbridge’s first-quarter net clothing retailers in terms of profits but it has income attributable to shareholders fell about faltered over the last two years as consumer 30 % to C$445mn ($348.15mn) due to higher spending moved away from clothing towards costs. Excluding one-time items, the company holidays and entertainment. earned 82 Canadian cents per share, ahead First quarter sales were driven by erratic of analysts’ average estimate of 66 cents, weather. according to Thomson Reuters I/B/E/S. While sales fell 10% in a snowy week at the end US-listed shares of Enbridge rose 2.6% in light of February compared to the same time last premarket trade. year, they rose over 25% in one mid-April week On Wednesday, Enbridge said it would sell when Britain enjoyed a heatwave. certain secondary assets for $2.5bn in order to The quarter, which ended May 7, finished with reduce its debt, which stood at roughly $61bn as sales around £40mn ahead of the company’s of end-2017. internal forecast. The company has received bids as high as “Overall, we think that the recent warm C$4.5bn for the Canadian midstream assets it weather, netted off against the eff ect of the is selling as part of its debt-reduction eff orts, snow earlier on, has probably benefited us by Reuters reported on Wednesday. around 2 to 3%,” chief executive Simon Wolfson UniCredit told Reuters. “It’s probably brought forward some sales.” UniCredit SpA said yesterday that first-quarter Online sales rose 18.1% while sales in its more net profit increased by double digits, a result than 500 stores fell 4.8%, with analysts at that chief executive Jean Pierre Mustier deemed RBC saying both figures were better than the bank’s “best first quarter in more than a expected. decade.” Wolfson said that the shift from in-store to The Italian bank’s net profit rose almost 22.6% online sales would continue, a trend that from a year earlier to €1.11bn ($1.32bn), helped by could help protect the firm as the high street lower operating costs and net write downs on continues to struggle. Japanese electronics giant Panasonic yesterday in first-quarter net profit yesterday due to of EFSF bonds to the central bank as a one-off loans and provisions. Analysts at Morgan Stanley, who have an said its full-year net profit surged, helped by regulatory pressure at home, an unfavourable item in the first quarter. In contrast, the bank’s revenues in the first “underweight” rating on the stock, said that the growth in its automative-related business. exchange rate in Brazil and a one-off gain a year This, coupled with €138mn of staff costs related quarter fell by 0.7% to €5.1bn, while the bank strong first quarter sales number “is likely to The Osaka-based company said net profit for ago, despite rising electricity output. to a voluntary exit scheme, led to a loss of confirmed its ability to achieve target revenues be taken as evidence that Next has managed the fiscal year to March rose 58% to ¥236bn Portugal’s largest company by assets made €80mn. for the current year as a whole, which is €20.1bn. to negotiate some pretty challenging market ($2.1mn), up from ¥149bn in the previous year. €166mn ($198mn) in January-March in net Piraeus reported net earnings of €12mn in the UniCredit one of Europe’s largest banks and has conditions very well.” “Increases in both sales and profit were profit, while earnings before interest, taxes, fourth quarter of 2017. branches abroad such as Russia, Austria and Sales at full price were up 6.0% during the achieved for fiscal 2018 due mainly to growth depreciation and amortization (EBITDA) fell 12% Piraeus and other Greek banks recently others, is listed on the Italian stock exchange first quarter and the company forecast a sales in the automotive and industrial-related to ¥893mn, it said in a statement. underwent a health check by the European with a capital of about €27bn. increase of 2.2% for the full year to January businesses,” the company said in a statement, Revenues from electricity sales fell 9% to Central Bank before the country exits its bailout Next 2019. adding that exchange rates also contributed to €1.39bn despite a rise in electricity output of in August. Next shares have increased 17% so far this year increased revenue. 7% in the first quarter, when rains finally refilled The stress test results, released last week, British clothing retailer Next upgraded its but are trading well below levels of two years The company has been enjoying a solid most of its hydroelectric dams after a severe showed no need for new capital. full-year profit forecast yesterday, after an ago. recovery, particularly with healthy sales of drought in 2016-17. “The outcome of the 2018 stress test signals the electronics products for automobiles such as The utility’s installed capacity rose 3% from a end of a long period of uncertainty for Greece’s navigation units. year earlier. banking sector,” Piraeus CEO Christos Megalou The automative sales increased thanks to In Portugal, EDP incurred losses from a said in a statement. “The results confirmed that “market growth for eco-cars and expanded government-imposed reduction in the final the market environment in Greece is tangibly demand in advanced driver-assistance systems,” compensation paid to the former monopoly improving.” Panasonic said. for giving up some long-term power-purchase Megalou said the bank’s financial standing Panasonic has partnered with local automotive deals, an increase of clawback tax in August would be further strengthened by the plan titan Toyota and has provided batteries for US 2017, and higher costs of the so-called social that management is already executing, which electric vehicle innovator Tesla, as it explores tariff for low-income households. includes the sale of bad loan portfolios and ways to expand beyond its mainstay electronics. Without these eff ects, EBITDA would have risen divesting non-core assets. Jointly with Tesla, Panasonic produces lithium- 2%, the company said. The bank said bad debt provisions fell to ion battery cells at a “gigafactory” but Tesla’s EDP said EBITDA at its Brazilian unit rose 18% in €164mn in January to March, from €1.18bn in the new mass-market model has been hit by a local currency, but fell 1% in euros due to a sharp fourth quarter. production delay. depreciation of the Brazilian real. Greek banks have been under regulatory Panasonic added that it is also boosting Piraeus Bank pressure to tackle their bad debt problem, which production capacity for automotive batteries at restricts their ability to expand credit and help a new factory in Dalian, China. Greece’s largest lender by assets, Piraeus the economy recover. Operating profit jumped 37.5% to ¥381bn while Bank, reported a rise in first-quarter net profit, Enbridge sales rose 8.7% to ¥7.9tn, the company said. excluding one-off items, thanks to lower loan- It forecast net profit would climb 5.9% to loss provisions. Enbridge Inc’s first-quarter profit handily topped ¥250bn with sales rising 4.0% to ¥8.3tn for the Piraeus, which is 26.2% owned by Greece’s analysts’ forecasts yesterday, as Canada’s coming year. bank rescue fund HFSF, reported a net profit largest pipeline operator transported higher EDP-Energias de Portugal from continued operations of €18mn ($21mn), volumes of crude oil and natural gas. excluding one-off items. Enbridge moved 2.63mn bpd of crude oil on EDP-Energias de Portugal posted a 23% drop The bank flagged a sum of ¥21mn from the sale its Mainline system across Canada and the US Friday, May 11, 2018 GULF TIMES BUSINESS US consumer prices rise slightly; labour market tightening

Reuters bank said in its latest policy statement rebounding 0.3% in April and the core US stock index futures added to gains would pay to rent or receive from rise since April 2015. In a second report Washington last week. CPI climbing 0.2%. after yesterday’s data and prices of US renting a home, rose 0.3% last month yesterday, the Labor Department said The Labor Department said its The personal consumption Treasuries rose. after a similar gain in March. initial claims for state unemployment Consumer Price Index rose 0.2% expenditures price index excluding The dollar added to losses against a But healthcare costs nudged up 0.1% benefits were unchanged at a US consumer prices increased as increases in the cost of gasoline food and energy, which is the basket of currencies. after advancing 0.4% in March, helping seasonally adjusted 211,000 for the modestly in April, pointing to a steady and rental accommodation were Fed’s preferred inflation measure, Last month, gasoline prices rebounded to restrain the increase in the core CPI. week ended May 5. buildup of inflation that will likely tempered by a moderation in accelerated 1.9% year-on-year in March 3.0% after tumbling 4.9% in March. Prices for used cars and trucks tumbled Claims dropped to 209,000 during the keep the Federal Reserve on a path of healthcare prices. as last year’s big declines in the price of Further increases are likely after crude 1.6% in April, the largest drop since week ended April 21, which was the gradual monetary policy tightening. The CPI had slipped 0.1% in March. cell phone service plans dropped out of oil prices jumped to 3-1/2-year highs on March 2009. lowest level since December 1969. Price pressures could soon get a boost In the 12 months through April, the CPI the calculation. Wednesday in the wake of President The cost of recreation fell 0.4% last The labour market is considered to be from a tightening labour market. increased 2.5%, the biggest gain since Economists expect the core PCE price Donald Trump’s decision on Tuesday month, the biggest decline since near or at full employment, leading to a Other data yesterday showed new February 2017, after rising 2.4% in the index, which had increased 1.6% in to pull the US out of an international December 2009. slowdown in job growth as employers applications for unemployment comparable period in March. February, to breach its target in May. nuclear deal with Iran. There were also decreases in the cost struggle to find skilled workers. benefits holding near more than a 48- Excluding the volatile food and energy In their policy statement last week, Food prices rose 0.3% last month, the of airline tickets, new motor vehicles A government report on Tuesday year low last week. components, the CPI edged up 0.1% Fed off icials said they expected annual largest increase in a year, after nudging and communications. showed job openings rising to a record Inflation is flirting with the US central after two straight monthly increases inflation to run close to the “symmetric” up 0.1% in March. The cost of motor vehicle insurance fell 6.6mn in March. bank’s 2% target. of 0.2%. 2% target over the medium term. Food consumed at home increased for the first time in a year. Competition for workers is expected Fed policymakers have in recent The so-called core CPI rose 2.1% year- The central bank left interest rates 0.3%, the biggest gain since March Apparel prices rose 0.3% in April after to push up wage growth, which has days signalled they would not be too on-year in April, matching March’s unchanged last week. The Fed hiked 2017. falling 0.6% in the prior month. remained moderate. concerned if inflation overshot the increase. rates in March and has forecast at least Owners’ equivalent rent of primary Prices for household furniture Hiring slowed in March and April after target, reiterating what the central Economists had forecast the CPI two more increases for this year. residence, which is what a homeowner increased 0.5% last month, the largest surging in February.

Uber to off er Modest BoE rate hikes needed food delivery by drone even as infl ation cools: Carney in under MPC keeps key interest rate on 30 minutes hold at 0.5% after Q1 slump

Bloomberg Bloomberg London San Francisco

ark Carney said the Bank ber Technologies Inc plans to deliver of England still intends to food by drone in San Diego as part of a Mdeliver “modest” tighten- Uwide-reaching commercial test pro- ing after an unexpected economic gramme approved by the federal government slowdown derailed an interest-rate on Wednesday, said Dara Khosrowshahi, the hike that investors had anticipated chief executive offi cer. as soon as this month. Khosrowshahi said people should expect The governor was speaking after meal delivery in fi ve to 30 minutes, depend- offi cials kept the key interest rate ing on whether it comes from a drone or a on hold at 0.5% after a fi rst-quarter human. “Push a button and get food on your slump, and said infl ation will weaken doorstep,” he said. Uber is now the largest faster than previously anticipated. food delivery business in the world, Khos- Money markets shifted to no longer rowshahi told the crowd during an on-stage fully price in an interest-rate in- interview with Bloomberg at an Uber confer- crease this year. ence in Los Angeles. “We think the momentum in the The US Transportation Department said economy is going to reassert,” he told it chose 10 state, local and tribal govern- reporters in London. “The Monetary ments and a handful of companies, includ- Policy Committee judges that an on- ing Alphabet Inc, FedEx Corp, Intel Corp, going, modest tightening of mon- Qualcomm Inc and Uber, to work together on etary policy over the forecast period commercial drone testing. will be appropriate to return infl a- Hamburgers via drone was among a range tion sustainably to its target.” of topics that Khosrowshahi touched on dur- The MPC voted 7-2 to hold the rate ing the interview at the company’s fl ying car steady, as predicted by all but three conference, Uber Elevate. While the CEO of 54 economists in a Bloomberg said he’d joined Uber last year as a sceptic survey. Ian McCaff erty and Michael of the fl ying car programme, he eventually Saunders reiterated their support for decided to support the futuristic endeavour. an immediate increase. “Uber can’t just be about cars,” he said. “It Money markets now show the BoE governor Mark Carney addresses the media during the quarterly Inflation Report press conference in London yesterday. The bank still intends to deliver has to be about mobility.” probability of an August increase in “modest” tightening, he said. Uber itself isn’t building fl ying cars. In- borrowing costs as only about 50%, stead, it’s striking partnerships with com- and a hike by the end of the year – Explaining the decision to stand tion to the goal after the fi rst increase will reach its 2% infl ation target. vour of tighter policy put more panies, along with government agencies like previously fully priced in – at about pat, the majority of the MPC noted in a decade last November. Sweden’s Riksbank and the Bank of weight on surveys suggesting the Nasa and the US Army, with the hope that 85%. Sterling initially declined but the recent weak numbers. They said “An ongoing tightening of mon- Canada have also revised their tight- slowdown was temporary and signs pilot programes will begin in 2020. recouped some of those losses as that “the costs to waiting for ad- etary policy over the forecast pe- ening expectations. that domestic infl ationary pressures Talk of fl ying cars – which are many years Carney spoke. It was down 0.2% at ditional information were likely to riod would be appropriate to return New Zealand central bank Gover- are building. away from moving around actual custom- $1.3527 as of 12.58pm in London. be modest, given the need for only infl ation sustainably to its target at nor Adrian Orr said in an interview Their argument hinges on the la- ers, if ever – off ered a diversion from Uber’s The decision ends a roller-coaster limited tightening over the forecast a conventional horizon,” the BoE yesterday that the bank wants to see bour market, where unemployment embattled autonomous-car programme. ride for investors who had expected period.” said. It repeated its well-worn re- wages rise and start to drive up pric- is the lowest since the 1970s and Testing has remained grounded since March, an increase until a few weeks ago, New forecasts from the central frain that future increases will come es before it increases interest rates wage growth is picking up, bolster- when one of its self-driving vehicles struck when data revealed a near standstill bank showed infl ation will slow “at a gradual pace and to a limited from a record low. ing their assessment that slack is and killed a pedestrian in Tempe, Arizona. in economic growth and slower- more sharply, falling to the 2% target extent.” In the updated forecasts, the UK largely used up. On Wednesday, Khosrowshahi said he ex- than- expected infl ation. While in two years. But it said this is partly The BoE isn’t the only central bank central bank sees growth at 1.4% this The central bank reiterated that pected Uber would resume testing in “the the BoE keeps alive the prospect of because the pass-through of the to wobble on the exit ramp from the year, down from 1.8% in February. the economy may be running a bit next few months,” once the National Trans- tighter policy to come, its statement pound’s depreciation since the Brex- easy money of the past decade, even But it puts all this down to the fi rst- hot for its potential as negotiations portation Safety Board completes its inves- suggests a gentle pace. it vote is happening faster. It still sees as the US Federal Reserve sticks to its quarter slump, which it suspects will to leave the European Union con- tigation. He said Uber is co-operating with In the press conference after the a small amount of excess demand in plan to gradually raise rates. be revised up to 0.3% from the initial strain the supply side. With the split the inquiry. Khosrowshahi then took a jab at decision, Carney was consistently the economy by early 2020. The European Central Bank may estimate of 0.1%. The bank’s fore- scheduled for March 2019, the BoE Tesla Inc CEO Elon Musk, who has taken a forced to defend the BoE’s commu- The Infl ation Report also showed now wait until after June to outline casts for 2019 and 2020 were un- said managing the implications of more combative approach with the agency. nication strategy since February’s that about one quarter-point hike a its next steps, while the Bank of Ja- changed at 1.7%. Brexit remains the main challenge “We will not be tweeting ahead of their fi nd- meeting. year will be needed to return infl a- pan recently played down when it The MPC’s two dissenters in fa- for rate setters. ings,” Khosrowshahi said.

Wells Fargo adds mobile app tool as RBS to pay $4.9bn US subprime fi ne tech fight heats up AFP tions pursued by this bank before the crisis. Wells Fargo & Co is adding a new tool to make London “Removing the uncertainty over the scale of its mobile app easier to use as the bank tries to this settlement means that the investment keep Silicon Valley innovators from stealing more case for this bank is much clearer,” McEwan customers, according to Bloomberg. ritain’s state-rescued Royal Bank of added. “Pay with Wells Fargo” will be an option on the Scotland said yesterday it had been The lender added that $3.46bn of the set- app’s home screen that lets customers select Bfi ned $4.9bn by the US Justice Depart- tlement will be covered by existing provisions, their most commonly used features, such as ment (DoJ) over its role in the subprime crisis. while it will take another $1.44bn charge for the peer-to-peer payment service Zelle, before The huge sum, the equivalent of €4.1bn, the second quarter of 2018. logging in. The company’s head of payments, was however less than feared and resulted in Shares in RBS jumped 4.5% to 288.5 pence virtual solutions and innovation, Avid Modjtabai, a sharp share price gain for the government- in early deals on London’s benchmark FTSE was set to unveil the new technology yesterday owned lender. 100 index, which was up 0.2% overall. at the bank’s Investor Day, according to a RBS said in a statement that it reached a That “a signifi cant obstacle that had been statement reviewed by Bloomberg News. preliminary deal “with the US Department of hanging over the bank looks fi nally to have In addition to Zelle, options including mobile Justice (DoJ) to resolve its investigation into been cleared”, noted analyst Michael Hewson wallets, card-free ATM access and money RBS’s issuance and underwriting of US resi- at CMC Markets UK. transfers will be available through a quicker dential mortgage-backed securities between Britain’s Conservative government is verification process, according to the statement. 2005 and 2007”. meanwhile planning to return RBS to private US consumers have been slow to adopt mobile- It follows a separate fi ne of $5.5bn agreed ownership with the aim of selling £15bn of its phone payment options, prompting banks, in July 2017 with the Federal Housing Finance stake by 2023. card networks, retailers and tech companies Agency over the same matter. However, it had stressed that the subprime to invest in their own apps to try to win them Edinburgh-based RBS, which remains 71% claims needed to be resolved before it could over. The mobile-payments market could reach owned by the British government after receiv- start selling down its holding. $283bn by 2021, according to estimates by ing the world’s biggest banking bailout at the RBS last year posted its fi rst annual bottom- Forrester Research Inc, and banks are fighting height of the subsequent 2008 global fi nancial line profi t since 2007, the eve of the global fi - for a slice of that business after years of losing crisis, described the news as a “milestone”. nancial crisis, following a huge drop in litiga- to tech startups like PayPal Holdings Inc’s “Today’s announcement is a milestone tion costs. Venmo. moment for the bank,” said chief executive And the bank recently revealed that this Pay with Wells Fargo will give customers the Ross McEwan. “Reaching this settlement in year’s fi rst-quarter net profi ts more than tri- “tools that make their financial lives easier and principle with the US Department of Justice pled on lower restructuring costs and rising simpler, and put them in control of their finances,” will, when fi nalised, allow us to deal with income. Modjtabai said in the statement. A signage is seen at the front of an RBS branch in central London. The US fine was less this signifi cant remaining legacy issue and is Earnings after tax surged to £792mn ($1.1bn, than feared and resulted in a sharp share price gain for the government-owned lender. the price we have to pay for the global ambi- €911mn) in the fi rst three months of this year.