GLUT DEBATE CHINA PLAN - Gulf Times

Wednesday, May 24, 2017Sha’baan 28, 1438 AH

BUSINESSGULF TIMES

Opec set to prolong its output cuts

Merger talks eye $120bn chem giant

GLUT DEBATE | Page 3 CHINA PLAN | Page 12

Foreign investment fl ows into Qatar jump 11% to QR537.3bnBy Santhosh V PerumalBusiness Reporter

Foreign investments into Qatar grew by a robust 11% year-on-year to QR537.3bn with foreign

direct investments alone accounting for about one-fourth of them, accord-ing to the Ministry of Development Planning and Statistics (MDPS).

Of the total inward foreign invest-ments, foreign other investment (ex-cluding fi nancial derivatives) stood at QR332.4bn, FDI (QR133bn) and for-eign portfolio investments (QR71.9bn), MDPS said in its updated ‘Qatar For-eign Investment Survey, 2015’, which was released yesterday.

The objective of the survey, con-

ducted in collaboration with the Qatar Central Bank, was to cover all major enterprises (private and public) oper-ating in the national economy. How-ever, data could be obtained only from privately owned companies and public corporations. International fi nancial transactions made by individuals and by the government were not covered.

About 90% of inward FDI was ac-counted for by the oil and gas and as-sociated downstream manufacturing and other activities such as transporta-tion and marketing. In terms of the book value of investments, manufacturing activities accounted for 56% of the to-tal value of FDI, followed by mining and quarrying (33%) and fi nancial and insur-ance activities (6%) at the end of 2015.

Manufacturing saw QR74.5bn worth

FDI, followed by mining and quarrying (QR43.3bn) and fi nance and insurance (QR7.5bn), MDPS said.

On region-wise classifi cation, FDI from other American countries amounted to QR47.5bn (36% of the total), followed by European Union QR39bn (29%), the US QR30.8bn (23%) and Asia (excluding Gulf Coop-eration Council) QR6.7bn (5%).

The country’s total overseas invest-ments expanded about 12% year-on-year to QR378.3bn with foreign other investments amounting to QR212.1bn, FDI QR130.8bn and foreign portfolio investments QR35.4bn.

Of the total outward QR130.8bn FDI, it said fi nance and insurance sector accounted for QR47.5bn (36% of the total), followed by transportation and

storage; information and communica-tion QR39.9bn (31%), and mining and quarrying QR35.7bn (27%).

Qatar had FDI abroad in about 80 countries, the report said, adding the top four groups of countries accounted for a relative share of 82% of the total at the end of 2015.

Qatar’s FDI in European Union amounted to QR44.6bn (34% of the total outward FDI), followed by the Gulf Cooperation Council QR31.8bn (24%), other Arab countries QR19.5bn (15%) and Asia (excluding Gulf and other Arab countries) QR11.1bn (8%).

A recent report from Kamco Re-search had found that FDI into the GCC has been on a consistent decline over the past fi ve years with a com-pound annual growth rate of -15.3%.

LONDON CONFERENCE: Page 16

Private sector crucial for future generations, says Qatar envoy

BUSINESS

Gulf Times Wednesday, May 24, 20172

Rouhani win seen speeding Iran push to lift oil outputBloombergDubai

Iranian President Hassan Rou-hani is in a stronger position after his re-election to push through

plans for wooing foreign investors the country needs to boost oil production, according to analysts at Cornerstone Global Associates and SVB Energy.

Iran’s eff ort to attract about $100bn to develop more than 50 oil and natu-ral gas fi elds bogged down ahead of the May 19 presidential election. Politi-cal arguments stalled approval of the contract terms the government would off er, and US fi nancial sanctions – and the potential threat of additional curbs – continue to dissuade many would-be international investors.

Rouhani defeated rivals in a land-slide, winning about 57% of the vote. As his victory was announced on Sat-urday, US President Donald Trump was in Saudi Arabia. Trump has said the nuclear accord that world powers reached with Iran is one of the worst deals he’s seen and is reviewing policy toward the country.

“The election does give Rouhani a mandate to push things through,” Ghanem Nuseibeh, founder of Lon-don-based management consultant Cornerstone Global Associates, said in an interview in Dubai on Sunday. “Rouhani will do one of two things: either wait and see what Trump does, or he’ll say, ‘Let’s move ahead.’ I’d ad-vise him to go ahead.”

Years of international sanctions throttled investment in Iran, once Opec’s second-largest producer, and stunted its economy. A tightening of restrictions in 2012 cut into its crude exports. The country more than dou-bled oil sales after restrictions were eased in January 2016.

Exports have risen to about 2.5mn bpd since then, Bijan Namdar Zan-

ganeh, the oil minister, said on May 6 at a Tehran conference. Zanganeh has been instrumental in the govern-ment’s drive for foreign investment, helping to craft Iran’s new oil-inves-tor contracts and pitching projects to international companies. Rouhani hasn’t said yet if he’ll retain the same cabinet for his second term.

Iran was waiting until after the election to hold its fi rst international auction of oil-development rights, Iranian Students News Agency re-ported on May 16, citing Ali Kardor, managing director of state-run Na-tional Iranian Oil Co. Iran announced some terms of the new investor con-tract at a November 2015 conference in Tehran, and it targeted signing the

fi rst deals in March or April of 2016.“The fact that Rouhani won as a

reformist who delivered the nuclear deal and promised to bring in for-eign investment would suggest that there is support for things like the oil contracts,” Patrick Murphy, a Dubai-based partner at law fi rm Clyde & Co, said by phone on Sunday.

Rouhani’s political foes have less interest in blocking the new contract now that he’s won a new term, said Sara Vakhshouri, president of Wash-ington, DC-based consultant SVB Energy. Even so, international inves-tors “are still worried about remain-ing US sanctions and possible future sanctions that could target Iran’s mis-sile programme,” she said by e-mail.

The biggest oil companies have committed so far to little more than agreements to study energy projects or form development plans in Iran. Total, which agreed to draw up plans to produce off shore natural gas and pump crude onshore, hasn’t signed any fi nal deals for projects there.

“Iran funds, arms, and trains ter-rorists, militias, and other extrem-ist groups,” Trump said on Sunday in Riyadh in a speech to leaders of more than 50 predominantly Muslim countries. “All nations of conscience” should isolate Iran until it’s “willing to be a partner for peace,” he said.

The Trump administration agreed last week to roll over sanctions waiv-ers on Iran’s oil industry and crude

sales. At the same time, the US im-posed new sanctions on Iran’s ballis-tic missile programme and said it was continuing to review Iran’s adherence to the 2015 nuclear accord.

“Everything becomes irrelevant” if Trump tears up or tries to modify the historic agreement, as that would scare off investors, said Nuseibeh, the London-based analyst.

On the other hand, Rouhani will boost interest among European gov-ernments and companies for keeping Iran open for business if he can off er oil-development contracts now, the consultant said. That would “make it even more complicated for Trump to try to renegotiate the nuclear deal,” Nuseibeh said.

Arabtec rights issue investors left with 33% loss in one weekBloombergDubai

Investors who bought contracts that

entitle them to participate in Dubai

construction company Arabtec Hold-

ing’s rights issue were left with a 33%

loss at the end of the security’s single

week of trading.

The contracts surged on their first day,

the only session when no limits were

placed on the price, carried on a wave

of speculative buying, said Majd Dola,

senior research analyst at Al Ramz

Capital in Dubai. The securities rose as

high as 21 fils (US 6 cents) on May 15,

from an opening price of 1 fil, and set-

tled at 9 fils. They ended at six fils on

Sunday, their final session, having lost

a third of their value from the close on

the initial day of trade.

Many investors bid for the contracts

without necessarily understanding

what they were buying, and were

caught out when liquidity evapo-

rated in the remaining sessions, Dola

said. Holders will be able to sub-

scribe for new shares at one dirham,

plus the cost of the contract, while

Arabtec stock traded on Dubai’s

Financial Market closed at 79.2 fils

on Sunday.

“Naive investors fell into the specula-

tion trap,” said Dola. “People followed

the liquidity on day one of trad-

ing and then got stuck as liquidity

disappeared. That’s why it makes no

economic sense.”

The construction company, whose

shares have slumped 85% in the

past three years, intends to use the

proceeds of the issue to fund the com-

pletion of projects and to implement a

turnaround business plan. At the end

of March, Arabtec posted its first quar-

terly profit since September 2014.

Arabtec’s largest shareholder, Aabar

Investments, has committed to sub-

scribing for its full entitlement under

the rights off er, and for any unsold

shares up to 1.5bn dirhams.

A picture shows an oil facility in the Khark Island. Years of international sanctions have throttled investment in Iran, once Opec’s second-largest producer, and stunted its economy.

MSCI bounce for Saudi shares may happen sooner than you thinkBloombergDubai

If history is any guide, Saudi Arabian

stocks will benefit from being included

in MSCI’s emerging-market index in the

months before the promotion, not after.

Saudi equity investors can expect returns

of about 20% in each of the years leading

up to the upgrade and in the year of the

event, and then a decline of 12% in the

following 12 months, according to data

collected by EFG-Hermes Holding. The

investment bank studied the fortunes

of markets that gained emerging status

at MSCI from 1993 to 2014, including the

UAE and Qatar. While foreign investor in-

flows will increase, that may not translate

to higher liquidity.

Investors tend to pile into markets that

they think will get the promotion, before

the actual decision, attracted by policy

changes such as allowing foreign owner-

ship of previously off -limit companies, the

adoption of settlement cycles that meet

international standards and revamped

disclosure rules. Those enhancements

don’t mean the job is done for up-

graded exchanges – the bourses need to

continue to evolve to retain their allure,

according to MSCI.

“The eff ort required by markets to get

into MSCI emerging markets has to be

consistently maintained,” Robert Ansari,

the index provider’s executive director

for the Middle East, said last week at a

conference in Abu Dhabi. Once admitted,

they’re “fighting for the same slice of

capital” as China, Russia and India. “All of

a sudden, you are being looked at by big

Swiss pension funds. So, actually, classifi-

cation is when the work starts, not when

the work ends.”

As they look forward to next month’s

MSCI annual market classification review,

Saudi off icials will have ticked off most of

the steps required by the index provider,

which is tracked by $1.5tn of emerging-

market funds. These include allowing

direct foreign ownership of local shares,

extending the settlement cycle and

becoming the first Arab market to allow

short-selling. The kingdom has spent

two years reforming its stock market to

attract foreign investors after the slump

in oil, its main revenue generator, slowed

economic growth.

“Given the size of the existing market,

we expect Saudi’s eventual upgrade to

be a milestone event for regional capital

markets,” said Salah Shamma, who helps

manage an $85mn Middle East and North

Africa fund at Franklin Templeton Invest

ME Ltd in Dubai. Saudi and UAE shares

make up 29% and 26% of his holdings,

respectively.

The Saudi market could account for 5% of

the MSCI developing markets index and

draw as much as $50bn of inflows, if the

country’s plan to take state-owned Saudi

Arabian Oil Co public succeeds, Shamma

said.

Saudi investors can expect returns of about 20% in each of the years leading up to the upgrade and in the year of the event, and then a decline of 12% in the following 12 months, according to EFG-Hermes

BUSINESS3Gulf Times

Wednesday, May 24, 2017

QSE declines on lower buying supportBy Santhosh V PerumalBusiness Reporter

Qatar Stock Exchange was back in the negative turf yesterday, mainly dragged by transport, real estate,

banking, insurance and industrials stocks.Lower buying support from foreign in-

stitutions and local retail investors led the 20-stock Qatar Index decline 0.12% to 10,123 points.

Overcoming the initial weakness, the index shot up to reach a high of above 10,160 points in the fi rst 30 minutes, after which it witnessed stronger profi t book-ing for the next 60 minutes to take the in-dex to less than 10,120 points. Thereafter, the index was on a slow gaining mode but overall it settled 12 points lower against the previous close.

Small and mid-cap stocks saw notice-able selling pressure in the bourse, which also saw non-Qatari individuals turn bearish and increased net selling by Gulf retail investors.

Islamic stocks fell faster than the other indices in the market, which however saw lower net selling by domestic and Gulf in-stitutions.

Trade turnover and volumes were on the decline in the bourse, where banking, real-

ty and telecom sectors together accounted for about 88% of the total volumes.

Market capitalisation however gained QR22mn or 0.04% to QR540.4bn mainly on 0.14% gain in large cap equities; even as small, mid and microcaps declined 0.66%, 0.21% and 0.07% respectively.

The Total Return Index shed 0.12% to 16,975.67 points, All Share Index by 0.07% to 2,865.02 points and Al Ray-an Islamic Index by 0.2% to 4,047.45 points.

The transport sector’s index shrank 0.73%, real estate (0.63%), consumer goods (0.6%), insurance (0.58%) and in-dustrials (0.58%); whereas banks and fi nancial services gained 0.58% and tel-ecom 0.06%.

About 67% of the traded stocks were in the red with major losers being Zad Holding, Barwa, Ezdan, Qatar Insurance, Industries Qatar, Mesaieed Petrochemi-cal Holding, Qatar Electricity and Water, Aamal Company, Vodafone Qatar, Na-

kilat, Milaha, Medicare Group, Widam Food and Al Khaleej Takaful; even as QNB, Ooredoo, Gulf International Services and Qatar Islamic Insurance were among the gainers. Local retail investors’ net buying declined perceptibly to QR7.66mn com-pared to QR9.29mn the previous day.

Non-Qatari institutions’ net buying weakened considerably to QR0.02mn against QR6.87mn on May 22.

Non-Qatari retail investors turned net sellers to the tune of QR0.48mn compared with net buyers of QR1.54mn on Monday.

The GCC (Gulf Cooperation Coun-cil) retail investors’ net selling rose to QR1.48mn against QR1.1mn the previ-ous day. However, domestic institutions’ net selling weakened substantially to QR5.66mn compared to QR15.54mn on May 22.

The GCC institutions’ net profi t book-ing decreased marginally to QR0.08mn against QR1.07mn on Monday.

Total trade volumes fell 14% to 7.24mn

shares, value by 27% to QR202.07mn and deals by 22% to 2,432.

There was 63% plunge in the consumer goods sector’s trade volume to 0.11mn equities, 66% in value to QR8.53mn and 59% in transactions to 149.

The transport sector’s trade volume plummeted 41% to 0.23mn stocks, value by 13% to QR12.24mn and deals by 71% to 130. The banks and fi nancial services sector saw 19% shrinkage in trade vol-ume to 2.44mn shares and 26% in value to QR97.22mn but on 6% rise in transactions to 1,401.

The real estate sector’s trade volume tanked 14% to 2mn equities, value by 31% to QR31.96mn and deals by 29% to 265.

The industrials sector reported 9% de-cline in trade volume to 0.39mn stocks, 26% in value to QR24.56mn and 23% in transactions to 275.

However, the insurance sector’s trade volume grew 14-fold to 0.14mn shares and value by about 12-fold to QR8.34mn on more than six-fold jump in deals to 80.

Although the telecom sector’s trade volume was fl at at 1.93mn equities, there was 20% slump in value to QR19.21mn and 43% in transactions to 132.

In the debt market, there was no trading of treasury bills and government bonds.

Opec set to prolongoil production cuts by nine monthsReutersVienna

Opec is likely to extend production cuts for another nine months, ministers and delegates said yes-

terday as the oil producer group meets this week to debate how to tackle a global glut of crude.

Opec’s top producer, Saudi Arabia, fa-vours extending the output curbs by nine months rather than the initially planned six months, as it seeks to speed up market rebalancing and prevent oil prices from sliding back below $50 per barrel.

On Monday, Saudi Energy Minister Khalid al-Falih won support from Opec’s second-biggest and fastest-growing pro-ducer, Iraq, for a nine-month extension and said he expected no objections from anyone else.

The Organisation of the Petroleum Ex-porting Countries meets in Vienna tomor-row to consider whether to prolong the deal reached in December in which Opec and 11 non-members, including Russia, agreed to cut output by about 1.8mn bar-rels per day in the fi rst half of 2017.

The decision pushed prices back above $50 per barrel, giving a fi scal boost to ma-jor oil producers.

But it also spurred growth in the US shale industry, which is not participating in the output deal, thus slowing the mar-ket’s rebalancing.

Kuwait said yesterday not every Opec member was on board yet for an extension to March 2018, but most ministers and delegates in Vienna said they expected a fairly painless meeting.

Ecuador Oil Minister Carlos Perez said Opec and other oil-producing coun-tries would discuss a six- or nine-month extension to output cuts and probably choose the latter.

“Six and nine months are both propos-als on the table...we will support the ma-jority, probably the nine months,” Perez,

whose country is in Opec, told reporters after arriving in Vienna yesterday.

Asked whether deeper cuts would be discussed, he said: “Not at this point, I don’t think so.”

Noureddine Boutarfa, energy minister of Opec member Algeria, said Opec was discussing a possible nine-month exten-sion, with curbs kept at the same level as under the group’s existing deal.

“Right now we are talking about nine months,” Boutarfa told reporters in the Austrian capital. Falih also arrived in Vi-enna yesterday but made no comment to reporters.

“Despite a supply cut extension being factored in by the market, oil prices have made only modest progress.

It may take more than an extension to rekindle bullish spirits,” he added.

Oil prices initially fell 1% yesterday af-ter US President Donald Trump proposed to sell half of the United States’ Strategic Petroleum Reserve in the next 10 years as well as to speed up Alaskan exploration.

Saudi’s Falih said on Monday he ex-pected the new deal to be similar to the old one, “with minor changes”.

“He (Falih) has talked to several coun-tries including Norway, including Turk-

menistan, including Egypt, and they have made signs of their willingness to join the collaboration,” Kuwait’s oil minister Es-sam al-Marzouq said yesterday.

Norway’s oil ministry said it had no plan to join cuts but had a good dialogue with Opec. Deutsche Bank said the market had priced in a nine-month extension.

“The inclusion of smaller producing non-Opec countries such as Turkmen-istan, Egypt and the Ivory Coast would be a negligible boost, in our view,” Deutsche said. “A deepening of cuts, though, has more potential to provide an upside surprise.”

Profi t-taking pulls down Gulf stock markets

Egypt’s stock market yesterday

recovered some of the previous

day’s heavy losses while Gulf

bourses were weaker as investors

booked profits ahead of the holy

month of Ramadan, when trad-

ing volumes and liquidity often

decrease.

Cairo’s index rebounded 1.1%

after tumbling 2.5% on Monday,

its largest single-day decline since

January 19, after the central bank

unexpectedly raised interest rates

by 2 percentage points to fight

sky-high inflation.

The surprise move prompted

heavy selling by local retail

investors but several foreign

fund managers said they did

not expect a lasting impact on

the market, partly because of

the loose links between interest

rates and the real economy in

Egypt.

Importers may benefit from

lower input costs if the rate hike

strengthens the Egyptian pound,

while many exporters should

remain competitive if inflation

eases, said a note by Dubai’s

Arqaam Capital.

Arabian Food Industries,

which depends on imports for

its food production, rose 1.4%.

Shares of the largest listed

lender, Commercial International

Bank, gained 0.5%. “Most banks

will be positively aff ected due

to positive net asset-liability

management positions, boosting

net interest margins, despite po-

tential impact on credit growth,”

Arqaam said.

Ezz Steel jumped 2.9% after

it posted a consolidated net

profit attributable to sharehold-

ers of 162.5mn Egyptian pounds

($9.0mn) for the last fiscal year

versus a net loss of 418mn

pounds a year ago.

The Riyadh index pulled back

0.7% as 147 shares declined and

only 11 rose in modest volumes.

Dubai’s index dropped 0.8%

with the only listed exchange in

the Gulf, Dubai Financial Market,

retreating 3.6%. In recent months

Dubai’s stock market has been

underperforming its regional

peers and trading volumes have

shrunk.

In Abu Dhabi, mid- to small-

sized companies weighed on

the index, which fell 0.1%; food

producer Agthia Group was down

1.8%.

Elsewhere in the Gulf, Kuwait

index lost 0.4% to 6,745 points;

Bahrain index edged up 0.1%

to 1,310 points and Oman index

edged down 0.2% to 5,402 points

yesterday.

Abu Dhabi economy showing signs ofrecovery, says offi cialReutersAbu Dhabi

Abu Dhabi’s economy, the largest in the United Arab Emirates (UAE), is

showing signs of recovery on the back of heavy government spending, an Abu Dhabi offi -cial said yesterday.

“The government is spend-ing heavily on projects.

These are signs of economic recovery,” Khalifa al-Man-souri, undersecretary of the Department of Economic De-velopment in Abu Dhabi, told reporters, adding that spend-ing was focused on tourism and infrastructure.

Mansouri predicted the emirate’s gross domestic product would grow 3% this year and 4% in 2018, after growth of roughly 3% last year.

Average growth in the last fi ve years was 4.1%, he said.

The forecast appears more optimistic than that of the International Monetary Fund, which has forecast the UAE will see GDP growth slowing to 1.3% this year because of a shrinking oil sector in Abu Dhabi, as the UAE cuts oil output in line with a supply agreement among global pro-ducers.

Meanwhile Aldar Proper-ties won a contract on Mon-

day to build a new site for the twofour54 free trade zone that hosts media fi rms. Aldar, the state-linked construction fi rm that built Abu Dhabi’s Formu-la One circuit, was awarded the build-operate-transfer contract for the new site by the government-owned Media Zone Authority-Abu Dhabi, twofour54 said.

The United Arab Emir-ates has built free trade zones across the country, off ering foreign fi rms 100% ownership and repatriation of profi ts.

Outside these zones, fi rms in the UAE usually need to be at least 51% owned by UAE nationals. The twofour54 free zone for media fi rms, now based in Abu Dhabi city, will move to nearby Yas Island where the Formula One circuit is located.

Companies that are already set up in the free zone include CNN and Sky News Arabia.

The fi rst phase of build-ing the free trade zone is val-ued at 1bn dirhams ($272mn), the statement said. The ini-tial gross fl oor area would be 95,000 square metres and would expand over time to 300,000 square metres, it said.

Dubai, another of the seven emirates making up the UAE, has developed specialised free trade zones for various indus-tries, ranging from media to health.

Offi cial business hours during Ramadan

Qatar Stock Exchange yesterday said the off icial business hours during Ramadan will be from 9am until 2pm.The trading hours would remain

unchanged from 9:30 until 13:15 with a pre-opening session starting at 9am and ending at 9:30am, a bourse spokesman said.

Bidders emerge for UASC-linked shipping unit

Gulf-based bidders have emerged for the part-owned subsidiary of United Arab Shipping Company (UASC) whose sale is key to finalising the merger between UASC and German container shipping line Hapag Lloyd, sources close to the matter said.Last week, sources told Reuters that Hapag Lloyd was close to completing the €7-8bn merger after UASC shareholders agreed terms to repay outstanding debt.A sale of United Arab Chemical Carriers (UACC) — in which UASC holds the biggest stake — is also part of the terms of the Hapag Lloyd merger deal.Three finance sources with knowledge of discussions said a few bidders had

emerged for UACC, which is estimated to be worth around $200mn.One of the sources said Saudi Arabian shipping company Bahri was among the suitors together with an unidentified United Arab Emirates bidder.So far, none of the interest has translated into a deal, they added.UASC has a 45% stake in UACC, with the remaining shares held by various Saudi shareholders.UACC’s fleet of 24 chemical tankers is estimated to be valued at $478.7mn, down from $576.9mn a year ago due to the fall in ship values for the sector, according to ship valuation company VesselsValue.

Visitors browse retail stores at the Yas Island Mall in Abu Dhabi. Abu Dhabi’s economy, the largest in the United Arab Emirates, is showing signs of recovery on the back of heavy government spending, according to Khalifa al-Mansouri, undersecretary of the Department of Economic Development.

Gulf insurance fi rms turn to invest in bondsReutersDubai

Regulatory change and surging high-grade debt issuance by governments

are encouraging Gulf insurance companies to invest in bonds, bringing the region closer to in-vestment patterns in developed economies.

Traditionally, Gulf insur-ers have shown little interest in bonds, partly because of a lack of supply of highly rated debt issued by governments or blue-chip corporates.

Equities and real estate ac-count for most of United Arab Emirates insurers’ portfolios;

bonds comprised about 11% of listed UAE insurers’ assets in 2016, and only a small portion of that was investment grade, ac-cording to Moody’s.

In Saudi Arabia, insurers tra-ditionally invest in shorter-term money market funds or fi xed bank deposits.

By contrast, many European insurers allocate more than 70% of their funds to bonds.

The pattern in the Gulf is changing, however, as govern-ments of the six Gulf Coopera-tion Council (GCC) nations is-sue an unprecedented amount of bonds to cover budget defi cits caused by low oil prices.

Most of the new debt is rated investment grade, such as Saudi

Arabia’s $17.5bn debut sale of conventional bonds last Octo-ber — the largest-ever emerging market bond sale — and its is-sue of $9bn of Islamic bonds last month.

“Some UAE insurance com-panies are slowly increasing their investments into fi xed in-come, and we expect allocations towards fi xed income overall to increase slightly this year,” said Emir Mujkic, associate director of insurance ratings at Standard & Poor’s.

In Saudi Arabia, the move to-wards bonds has begun but has not progressed as far; some in-surers invested in April’s 11.3bn riyal ($3.0bn) sukuk issue by national oil giant Saudi Aramco,

for example. So far, the volume of high-grade, local-currency bond issuance in Saudi Arabia remains small, limiting insurers’ opportunities to invest.

“There is interest but at this stage, given the low supply in the local market, the shift is mini-mal,” said Mujkic.

However, Saudi authorities are keen to develop the do-mestic bond market to reduce companies’ near-complete de-pendence on bank loans, while Saudi state fi rms need to raise money as they receive less sup-port from their cash-strapped government.

So the supply of corporate debt in the kingdom is expected to grow.

In a sign of insurers’ rising interest in bonds, Abu Dhabi-based Invest AD Asset Manage-ment, in partnership with Swiss bank Julius Baer, said this month it was launching an investment product for institutions that was based on high-grade GCC bonds.

The product provides expo-sure to US dollar conventional bonds and sukuk with a weight-ed average portfolio rating of A- minus and above.

Mohammed al-Hashemi, ex-ecutive director at Invest AD As-set Management, said increased GCC bond issuance across a range of ratings and maturities in the past year had broadened the market.

A general view of the Organisation of the Petroleum Exporting Countries building in Vienna. Opec is likely to extend production cuts for another nine months, ministers and delegates said yesterday as the oil producer group meets tomorrow to debate how to tackle a global glut of crude.

BUSINESS


EM assets weaker with eye on China, BrazilReutersLondon

Emerging markets slipped yesterday after weaker Chinese import data hinted at economic slowdown in the world’s second-largest economy and Brazil, in political turmoil, was threatened with a credit ratings downgrade.MSCI’s benchmark emerging market stocks index eased 0.2% after two days of gains, and major emerging currencies such as the Turkish lira and South African rand weakened against the dollar.Chinese imports of refined copper, which tend to be a barometer of industrial demand, were down 41% in April versus a year ago.This continues a run of lacklustre data from China.“One thing we are keeping an eye on is what’s happening in China where the recovery seems to have peaked.We expect the slower data to continue in coming quarters and that could have repercussions on emerging markets as a whole,” said William Jackson, senior emerging markets economist at Capital Economics.Chinese bourses were subdued but Hong Kong stocks rose to 22-month highs in moves attributed to flows from Chinese mainland investors.Brazil’s real steadied after Monday’s fall whilst the Europe-listed Brazil exchange traded fund DBX MSCI Brazil rose 2.7%. President Michel Temer has refused to step down despite a corruption scandal that threatens to tear apart his coalition.Ratings agency S&P threatened to downgrade Brazil further

into junk territory. Brazil has a large weighting in all the major emerging bond and stock benchmarks and sell off s there will hit indexes as a whole.There is little sign of a spillover so far.Gerardo Zamorano, a portfolio manager at Brandes Investment Partners, said the initial reaction to the Temer scandal, which sent assets tumbling, had been excessive.“The fact is Brazil is coming out of recession, we will still see good GDP developments and some year-on-year growth.We still think interest rates will come down,” he said, adding he had bought some Brazilian shares after the sell off .The Turkish lira weakened 0.4% as a crackdown on suspected coup-plotters continues, with arrest warrants issued for dozens at the telecoms and capital markets watchdogs, according to CNN Turk.There were some concerns about Croatia where a 2020 dollar bond from the country’s biggest company Agrokor fell 0.5 cents to 34.5 cents after local suppliers of indebted food and retail giant Agrokor said they would halt deliveries unless some debts are repaid.“The ongoing crisis at Agrokor in Croatia is increasing risks for (the) sovereign and would be likely to aff ect sovereign risk pricing in (the) medium-term,” Raiff eisen analysts said in a note.The South African rand slipped 0.5%, with General Motors saying it would cut 600 jobs as it pulls out of the country.Central banks in Hungary and Nigeria are expected to keep interest rates on hold later in the day.

Pressure piles on best Asian currency ahead of elections next yearBloombergKarachi

The Pakistani central bank’s sup-port for the rupee has left the cur-rency little changed in the past

two years. As the economy faces signs of stress ahead of elections in 2018 the question becomes how much longer can it last?

Banks refrain from trading above 104.87 rupees a dollar, according to peo-ple with knowledge of the matter. The central bank will assist and ensure avail-ability of foreign exchange to keep the currency steady, the people said, asking not to be identifi ed.

The State Bank of Pakistan and gov-ernment offi cials say that the rupee is a free-fl oating currency that moves under normal supply and demand pressures. Yet it’s the only measure to have gained against the dollar in Asia since 2014, up 0.5% in that period, according to a basket of 13 currencies compiled by Bloomberg.

That’s despite signs that South Asia’s second-largest economy is starting to look vulnerable with its current ac-count defi cit tripling to $7.3bn in the ten months through April, while exports have fallen to the lowest in six years. Pa-kistan’s foreign exchange reserves have also declined 15% to $15.9bn in May, after peaking at $18.9bn in October last year.

“It’s artifi cial, I don’t think there is any stability, there is an enforced stabil-ity,” said Muzaff ar Ali Isani, an econom-ics professor at Iqra University in Kara-chi. “You have to keep in mind there is an election next year. At least to the run up of the election” they will try and keep it unchanged, he said.

Pakistan emerged from the edge of a debt crisis in 2013, staved off when the then newly-elected government of Prime Minister Nawaz Sharif submitted to the $6.6bn International Monetary Fund loan programme, which ended in Sep-tember. The IMF said last year that Pa-kistan’s currency is overvalued as much as 20%.

“The forex market is independent,” Fi-nance Minister Ishaq Dar said in a Febru-ary interview. “I think it is the confi dence of the investors, confi dence of the market players and it is the true strength of the currency itself.”

Pakistan’s Ministry of Finance didn’t immediately respond to an email seeking comment. The rupee was little changed at 104.8 per dollar on the interbank mar-ket yesterday in Karachi.

Pakistan’s central bank has faced continued questions over its independ-ence despite the introduction of South Asia’s fi rst monetary policy commit-tee by Ashraf Wathra whose three-year tenure ended last month. Riaz Riazud-

din has been made acting governor un-til a replacement is named within three months.

“Like many other central banks, State Bank of Pakistan occasionally inter-venes in the market with the objective to contain the excessive volatility in the exchange rate and ensure smooth func-tioning of the domestic foreign exchange market,” the central bank said in an e-mailed response to queries. It didn’t give further details.

Pride is at stake as Pakistan boasts of increased infrastructure investment as China fi nances more than $55bn in projects across the country, part of its fl agship “One Belt, One Road” plan. Concerns have increasingly been raised that Pakistan will be left with unman-

ageable foreign-currency debts to the Chinese, which any rupee depreciation would exacerbate.

“Keeping your rupee strong means a stronger economy, this has gone into mindset of this government,” said Ash-faque Hasan Khan, a former fi nance ministry adviser and now dean at the business school at Islamabad’s National University of Sciences and Technology. “How can you align this type of exchange rate with an unprecedented rise in trade gap? It’s against economics.”

Pakistan’s trade gap expanded to $3.2bn in April, close to lowest level hit a month ago since Bloomberg started compiling data in 2003.

The nation’s stock market is also feel-ing the pinch. Foreigners have sold stocks

worth $232mn this year despite MSCI Inc upgrading the nation to emerging mar-kets status this month.

Concerns about the overvalued ru-pee coming under pressure is one reason some foreign investors are fl eeing and staying away, said Saad Khan, the deputy head of research at IGI Finex Securities in Karachi.

“A period of currency stability is great for foreign investors if a country is emerging from a crisis and that describes Pakistan in 2013 to 2015,” said Hasnain Malik, the Dubai-based head of global equities research at Exotix Partners. “But if it goes on too long then competitive-ness is eroded and sooner or later has to be corrected. That arguably describes where we are now.”

Asian markets take breather after rallyAFPHong Kong

Asian markets mostly turned lower yesterday as profit-taking overshadowed a healthy lead from Wall Street, while the pound fell after 22 people were killed in a terror blast in Manchester.Global stocks had rallied on Monday, with energy firms benefiting from a surge in oil prices as Opec and Russia look set to extend an output cut, while US dealers welcomed an optimistic survey on US manufacturing.But crude was unable to sustain gains yesterday and this weighed on petroleum-linked firms before a meeting between Opec and Russia later in the week.With Donald Trump on his first overseas trip, the political crisis that drove huge losses last week has calmed for now.However, the Washington Post reported that the president had asked two top intelligence officials in March to help push back against an FBI probe into his campaign’s possible links with Russia.Capital markets were hammered in the middle of last week on fears about Trump’s economy-boosting agenda, with his presidency engulfed in a crisis over his firing of FBI chief James Comey and allegations he disclosed sensitive intelligence to Russian officials.Hong Kong closed up 0.1%, Shanghai slipped 0.5% and Sydney eased 0.2% while Tokyo ended 0.3% down.However, Seoul and Singapore each

added 0.3%. On foreign exchanges the pound fell to $1.2971 from almost $1.30 late in New York after police said 22 people had been killed outside a concert in Manchester on Monday night.The uncertainty also saw safe-haven assets rise, with the yen and gold both rising.The attack, the worst in Britain since London bombers killed 52 people in 2005, reawakened concerns about terror and geopolitical worries.“Trump risk and geopolitical concern triggered by the UK news this morning is making the market prone to risk-aversion moves,” Ayako Sera, a market strategist with Sumitomo Mitsui Trust Bank in Tokyo, told Bloomberg News.”The biggest thing, nevertheless, is the wariness over suspicion surrounding Trump and Russia.”Traders are now awaiting the release this week of minutes from the Federal Reserve’s latest policy meeting, hoping for some clarity on its plans for raising interest rates in light of recent disappointing US data.A number of board members will also be speaking.There was little initial movement from the release of Trump’s 2018 budget, which proposes billions of dollars in spending cuts over the next ten years and increased military spending.In Tokyo, the Nikkei 225 closed down 0.3% at 19,613.28 points; Hong Kong — Hang Seng edged up 0.1% at 25,403.15 points and Shanghai — Composite fell 0.5% at 3,061.95 points yesterday.

Sensex and rupee extend lossesBloombergMumbai

The rupee and stocks extended losses after the Indian Army said it launched military raids into a Pakistan-controlled part of

Kashmir to destroy camps hosting terrorists.India’s currency weakened as much as 0.5%,

the most since May 18, to 64.8975 per dollar, be-fore closing at 64.89 in Mumbai. State-run lend-ers sold dollars, probably on behalf of the central bank, as the rupee extended declines, two Mum-bai-based traders said.

The S&P BSE Sensex index of shares closed 0.7% lower, while benchmark 10-year sovereign bonds reversed gains. The Sensex lost 206 points yesterday to close at 30,365.25 points.

“Investors across asset classes got a bit nerv-ous,” Soumen Chatterjee, Kolkata-based head of research at Guiness Securities, said by phone. “Increasing tensions across the border will create uncertainty.”

The operation was conducted “very recently,” in the Nowshera sector, Ashok Narula, a spokesman, told reporters in New Delhi. Pakistan denied the action took place.

Geopolitical concerns in Asia are on the rise, led by tensions in the Korean peninsula. South Korea’s military fi red warning shots at an unidentifi ed object fl ying across the military demarcation line yesterday, days after North Korea conducted an-other missile test.

India’s military action comes roughly three weeks after New Delhi blamed Pakistani military personnel for killing and mutilating Indian sol-diers in the disputed region of Kashmir, which is claimed in full and ruled in part by both countries.

Tensions have remained high between the nu-clear-armed, South Asian neighbours since India said in September last year that it launched military raids across the so-called Line of Control that di-vides Kashmir. Pakistan denied the raids occurred.

Indian sovereign bonds fell, with the yield on

the new 10- year benchmark notes rising one basis point to close at 6.67%.

Most Asian emerging currencies and stocks were already trading lower yesterday after a sui-cide bombing killed 22 people in the northern city of Manchester last night.

South Korean won was down 0.25%, Taiwan dollar 0.23%, Thai baht 0.22%, Singapore dollar 0.05%, China renminbi 0.05% and Philippines peso 0.05%. However, Malaysian ringgit was up 0.18% and Japanese yen 0.1%.

Sentiment was weaker also on rising US politi-cal risk following a report that President Donald Trump sought to push back against an FBI inves-tigation into possible collusion between his cam-

paign and the Russian government. India’s rupee has rallied 4.7% this year, boosted by foreign pur-chases of Indian stocks and bonds.

“The kneejerk reaction was mainly on the back of the news of Pakistan strikes,” said Ashtosh Raina, Mumbai-based head of foreign-exchange trading at HDFC Bank. “Hopefully, the rupee will recover tomorrow.”

The 10-year bond yield closed at 6.675% com-pared to its previous close of 6.667%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US cur-rency’s strength against major currencies, was trading at 96.89, down 0.10% from its previous close of 96.984.

The Bombay Stock Exchange building is seen in Mumbai. The Sensex closed down 206 points to 30,365.25 yesterday.

Pakistani rupee banknotes and coins are arranged for a photograph in Karachi. The Pakistani central bank’s support for the rupee has left the currency little changed in the past two years.

Zad Holding CoWidam Food CoVodafone Qatar

United Development CoSalam International Investme

Qatar & Oman Investment CoQatar Navigation

Qatar National Cement CoQatar National Bank

Qatar Islamic InsuranceQatar Industrial Manufactur

Qatar International IslamicQatari Investors Group

Qatar Islamic BankQatar Gas Transport(Nakilat)Qatar General Insurance & ReQatar German Co For Medical

Qatar Fuel QscQatar First Bank

Qatar Electricity & Water CoQatar Cinema & Film Distrib

Qatar Insurance CoOoredoo Qsc

National LeasingMazaya Qatar Real Estate Dev

Mesaieed Petrochemical HoldiAl Meera Consumer Goods Co

Medicare GroupMannai Corporation Qsc

Masraf Al RayanAl Khalij Commercial Bank

Industries QatarIslamic Holding Group

Gulf Warehousing CompanyGulf International Services

Ezdan Holding GroupDoha Insurance Co

Doha Bank QscDlala Holding

Commercial Bank QscBarwa Real Estate Co

Al Khaleej Takaful GroupAamal Co

Al Ahli Bank

75.50

61.70

8.99

19.07

10.32

9.30

68.00

71.80

142.00

64.30

42.90

60.50

58.40

101.50

19.04

39.00

9.07

122.30

8.12

211.00

31.00

70.00

106.10

16.72

12.15

14.30

154.90

94.00

76.70

44.20

14.50

104.80

65.90

51.30

23.99

15.50

16.30

30.90

25.00

30.75

34.10

19.50

13.15

33.00

-4.43

-1.12

-0.11

-0.10

-0.77

2.20

-0.73

-0.28

1.21

2.88

-0.12

0.00

0.00

0.20

-0.83

0.00

-0.22

-0.41

-0.25

-1.86

0.00

-0.85

0.09

-0.18

-0.08

-0.49

0.00

-1.05

0.00

0.23

0.00

-0.19

0.61

-0.39

0.80

-0.70

0.00

-0.32

-0.79

0.33

-0.73

-1.02

-0.38

0.00

16,600

38,785

1,913,552

101,848

5,725

105

149,383

22,559

162,311

109,515

2,373

164,152

4,015

20,015

68,562

-

3,100

6,311

424,745

3,980

-

15,698

19,049

277,702

413,405

37,270

7,260

28,453

3,412

762,810

-

169,257

35,491

15,259

139,042

1,385,629

-

50,093

21,911

519,797

100,131

11,682

12,720

-

QATAR

Company Name Lt Price % Chg Volume

United Wire Factories CompanEtihad Etisalat Co

Dar Al Arkan Real Estate DevSaudi Hollandi Bank

Rabigh Refining And PetrocheBanque Saudi Fransi

Saudi Enaya Cooperative InsuMediterranean & Gulf Insuran

Saudi British BankMohammad Al Mojil Group Co

Red Sea International CoTakween Advanced Industries

Sabb TakafulSaudi Arabian Fertilizer Co

National GypsumSaudi Ceramic Co

National Gas & IndustrializaSaudi Pharmaceutical Industr

ThimarNational Industrialization C

Saudi Transport And InvestmeSaudi Electricity Co

Saudi Arabia Refineries CoArriyadh Development Company

Al-Baha Development & InvestSaudi Research And MarketingAldrees Petroleum And Transp

Saudi Vitrified Clay Pipe CoJarir Marketing Co

Arab National BankYanbu National Petrochemical

Arabian CementMiddle East Specialized Cabl

Al Khaleej Training And EducAl Sagr Co-Operative Insuran

Trade Union Cooperative InsuArabia Insurance Cooperative

Saudi Chemical CompanyFawaz Abdulaziz Alhokair & C

Bupa Arabia For CooperativeWafa Insurance

Jabal Omar Development CoSaudi Basic Industries Corp

Saudi Kayan Petrochemical CoEtihad Atheeb Telecommunicat

Co For Cooperative InsuranceNational Petrochemical Co

Gulf Union Cooperative InsurGulf General Cooperative Ins

Basic Chemical IndustriesSaudi Steel Pipe Co

Buruj Cooperative InsuranceMouwasat Medical Services Co

Southern Province Cement CoMaadaniyah

Yamama Cement CoJazan Development Co

Zamil Industrial InvestmentAlujain Corporation (Alco)

Tabuk Agricultural DevelopmeUnited Co-Operative Assuranc

Qassim Cement/TheSaudi Advanced Industries

Kingdom Holding CoSaudi Arabian Amiantit Co

Al Jouf Agriculture DevelopmSaudi Industrial Development

Bishah AgricultureRiyad Bank

The National Agriculture DevHalwani Bros Co

Arabian Pipes CoEastern Province Cement Co

Al Gassim Investment HoldingFiling & Packing Materials M

Saudi Cable CoTihama Advertising & Public

Saudi Investment Bank/TheAstra Industrial Group

Saudi Public Transport CoTaiba Holding Co

Saudi Industrial Export CoSaudi Real Estate Co

Saudia Dairy & Foodstuff CoNational Shipping Co Of/The

Methanol Chemicals CoAce Arabia Cooperative Insur

Mobile Telecommunications CoSaudi Arabian Coop Ins Co

Axa Cooperative InsuranceAlsorayai Group

Weqaya For Takaful InsuranceBank Albilad

Al-Hassan G.I. Shaker CoWataniya Insurance Co

Abdullah Al Othaim MarketsHail Cement

19.10

21.17

6.30

0.00

12.05

26.94

15.60

17.44

22.86

12.55

23.50

12.04

26.32

66.23

13.25

27.83

31.94

34.60

32.72

14.35

0.00

23.44

32.77

20.10

22.50

30.14

23.65

55.24

142.00

19.67

55.50

36.08

7.03

16.95

29.66

17.89

13.13

35.98

37.10

114.31

13.69

67.50

98.11

8.49

8.95

98.00

18.70

18.19

15.65

22.66

15.95

30.70

149.08

50.55

22.14

17.75

13.63

27.63

25.54

13.26

15.14

49.90

12.60

10.25

5.96

30.10

11.91

69.75

10.34

29.09

49.53

14.70

26.20

0.00

33.65

5.75

37.62

12.70

16.07

14.33

41.26

30.04

21.19

128.53

35.60

6.75

47.07

9.89

20.90

22.89

8.76

19.39

18.31

14.40

28.10

105.06

9.98

-1.50

0.24

-1.56

0.00

-2.03

-0.19

-2.74

-2.35

-1.04

0.00

-2.29

-2.59

-1.79

-0.78

-0.38

-0.61

-1.36

-0.57

-2.33

-1.78

0.00

0.21

-1.94

-0.74

0.00

-3.15

-0.84

-0.47

0.35

-1.65

0.23

-0.17

-1.54

-2.31

-3.14

-1.11

-3.03

1.21

-0.27

0.66

-2.70

-0.31

-0.74

-1.85

-1.97

0.52

-1.42

1.00

-4.34

-1.65

0.00

-2.54

-1.75

-1.13

-1.69

-0.28

0.96

-1.22

-2.52

-4.33

-0.79

0.00

-2.17

-0.58

-2.30

-0.99

2.58

0.00

-0.10

-0.51

-1.41

-2.00

-1.50

0.00

-2.44

0.00

-3.02

0.00

-1.41

-1.24

-0.55

-1.83

-0.47

-1.83

-1.25

-2.17

-2.26

-3.04

-2.70

-3.90

-3.74

0.00

-0.70

-1.64

-2.84

0.06

-0.70

478,026

603,179

41,071,795

-

2,339,336

5,694

181,683

268,101

241,282

-

43,998

1,065,645

74,957

192,723

126,393

130,592

37,101

71,076

149,734

1,083,375

-

1,075,982

189,392

171,174

-

483,010

207,957

20,138

35,625

215,787

349,110

82,278

514,046

158,316

490,977

276,712

488,946

426,514

223,715

112,370

600,984

118,524

2,647,065

7,107,786

426,318

15,000

186,841

1,249,737

421,757

168,153

100,058

272,997

3,228

63,968

192,120

136,268

666,435

99,014

720,316

2,995,189

2,035,755

27,246

744,572

31,187

1,004,211

160,237

2,134,691

-

169,767

1,770,599

8,969

1,188,315

32,584

-

116,407

-

274,119

30,345

93,781

726,782

253,469

235,918

313,734

69,266

885,197

1,104,000

102,652

2,720,780

334,379

209,901

554,130

-

299,643

134,036

187,127

29,162

240,112

SAUDI ARABIA


Saudi Re For Cooperative ReiSolidarity Saudi Takaful Co

Amana Cooperative InsuranceAlabdullatif Industrial Inv

Saudi Printing & Packaging CSanad Cooperative Insurance

Saudi Paper Manufacturing CoAlinma Bank

Almarai CoFalcom Saudi Equity Etf

United International TranspoHsbc Amanah Saudi 20 Etf

Saudi International PetrocheFalcom Petrochemical Etf

Walaa Cooperative InsuranceBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath InsuranceAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ ShamsSahara Petrochemical Co

Herfy Food Services Co

7.50

17.80

17.91

13.30

16.33

15.23

7.82

14.74

77.27

27.80

22.55

27.70

15.63

26.70

28.27

11.57

62.54

21.80

32.49

12.97

21.05

26.70

48.37

41.19

22.24

12.97

29.11

13.68

55.60

-3.10

-2.94

-3.35

-1.85

-2.51

0.00

-2.74

0.41

-0.60

-0.71

-0.70

0.00

-2.25

0.00

-1.87

-1.11

-0.68

-0.59

-1.63

-3.21

-1.17

-2.52

-2.18

0.10

-3.09

-3.21

-2.48

-1.23

-2.93

1,515,344

565,586

359,297

93,275

1,147,049

-

836,637

25,022,643

122,994

234,914

252,853

-

940,594

32

279,269

2,415,613

2,155,351

290,707

189,051

248,812

53,085

78,983

48,554

264,657

362,058

1,011,069

82,813

747,115

131,994

SAUDI ARABIA


Securities Group CoSultan Center Food Products

Kuwait Foundry Co SakKuwait Financial Centre Sak

Ajial Real Estate EntmtGulf Glass Manuf Co -Kscc

Kuwait Finance & InvestmentNational Industries Co Ksc

Kuwait Real Estate Holding CSecurities House/The

Boubyan Petrochemicals CoAl Ahli Bank Of Kuwait

Ahli United Bank (Almutahed)National Bank Of Kuwait

Commercial Bank Of KuwaitKuwait International Bank

Gulf BankAl-Massaleh Real Estate Co

Al Arabiya Real Estate CoKuwait Remal Real Estate Co

Alkout Industrial Projects CA’ayan Real Estate Co Sak

Investors Holding Group Co.KAl-Mazaya Holding Co

Al-Madar Finance & Invt CoGulf Petroleum Investment

Mabanee Co SakcCity Group

Inovest Co BscKuwait Gypsum Manufacturing

Al-Deera Holding CoAlshamel International Hold

Mena Real Estate CoNational Slaughter House

Amar Finance & Leasing CoUnited Projects For Aviation

National Consumer Holding CoAmwal International Investme

Jeeran HoldingsEquipment Holding Co K.S.C.C

Nafais HoldingSafwan Trading & Contracting

Arkan Al Kuwait Real EstateGfh Financial Group Bsc

Energy House Holding Co KscpKuwait Slaughter House Co

Kuwait Co For Process PlantAl Maidan Dental Clinic Co K

National Ranges CompanyAl-Themar Real International

Al-Ahleia Insurance Co SakpWethaq Takaful Insurance Co

Salbookh Trading Co KscpAqar Real Estate Investments

Hayat CommunicationsKuwait Packing Materials Mfg

Soor Fuel Marketing Co KscAlargan International RealBurgan Co For Well Drilling

Kuwait Resorts Co KsccOula Fuel Marketing Co

Palms Agro Production CoIkarus Petroleum Industries

Mubarrad Transport CoAl Mowasat Health Care Co

Shuaiba Industrial CoHits Telecom Holding

First Takaful Insurance CoKuwaiti Syrian Holding Co

National Cleaning CompanyEyas For High & Technical EdUnited Real Estate Company

AgilityKuwait & Middle East Fin Inv

Fujairah Cement IndustriesLivestock Transport & Tradng

International Resorts CoNational Industries Grp Hold

Marine Services Co KscWarba Insurance Co

Kuwait United Poultry CoFirst Dubai Real Estate Deve

Al Arabi Group Holding CoKuwait Hotels Sak

Mobile Telecommunications CoAl Safat Real Estate Co

Tamdeen Real Estate Co KscAl Mudon Intl Real Estate Co

Kuwait Cement Co KscSharjah Cement & Indus Devel

Kuwait Portland Cement CoEducational Holding Group

Bahrain Kuwait InsuranceAsiya Capital Investments Co

Kuwait Investment CoBurgan Bank

Kuwait Projects Co HoldingsAl Madina For Finance And In

Kuwait Insurance CoAl Masaken Intl Real Estate

Intl Financial AdvisorsFirst Investment Co Kscc

Al Mal Investment CompanyBayan Investment Co Kscc

Egypt Kuwait Holding Co SaeCoast Investment Development

Privatization Holding CompanKuwait Medical Services Co

Injazzat Real State CompanyKuwait Cable Vision Sak

Sanam Real Estate Co KsccIthmaar Holding Bsc

Aviation Lease And Finance CArzan Financial Group For Fi

Ajwan Gulf Real Estate CoKuwait Business Town Real Es

Future Kid Entertainment AndSpecialities Group Holding C

Abyaar Real Eastate DevelopmDar Al Thuraya Real Estate C

Al-Dar National Real EstateKgl Logistics Company Kscc

Combined Group ContractingZima Holding Co Ksc

Qurain Holding Co

98.00

0.00

300.00

104.00

168.00

0.00

43.50

208.00

37.80

44.00

557.00

320.00

425.00

685.00

354.00

246.00

243.00

39.00

35.00

69.00

690.00

79.00

24.00

114.00

0.00

38.70

810.00

0.00

103.00

0.00

34.90

260.00

25.20

40.00

0.00

875.00

107.00

73.90

48.10

52.20

150.00

0.00

85.50

186.00

43.80

184.00

160.00

0.00

28.00

70.00

490.00

45.00

60.00

82.00

83.00

0.00

117.00

186.00

87.00

82.40

123.00

110.00

0.00

79.00

315.00

278.00

43.20

63.70

36.40

42.50

445.00

82.00

650.00

28.50

83.50

226.00

37.90

119.00

66.00

86.00

0.00

51.10

91.00

0.00

432.00

0.00

410.00

40.00

450.00

90.00

960.00

296.00

0.00

43.00

93.00

329.00

374.00

49.20

247.00

73.00

41.10

47.00

16.20

62.00

198.00

42.00

49.20

0.00

92.00

0.00

50.00

44.20

286.00

37.00

89.00

51.00

100.00

89.50

25.50

0.00

0.00

51.20

598.00

53.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.57

0.00

-0.26

-1.12

0.72

0.00

1.19

0.00

0.28

0.00

-0.82

-18.75

-2.78

-1.15

0.00

-1.13

-2.04

2.70

0.00

-2.03

2.53

0.00

-2.83

0.00

0.00

0.00

-11.58

0.00

0.00

0.00

18.89

-0.81

-0.82

-1.88

0.00

0.00

0.00

0.00

2.10

0.00

0.00

0.00

0.00

0.00

0.00

-13.46

1.69

0.00

0.00

0.00

-3.31

0.00

0.00

0.00

0.82

0.00

0.00

0.00

0.00

1.09

-0.69

0.00

4.00

0.00

0.00

0.00

0.00

0.00

0.60

0.00

-2.82

-0.83

1.54

0.00

0.00

0.00

0.00

0.00

0.47

0.00

0.00

-4.31

12.22

0.00

0.00

0.34

0.00

-1.60

0.00

0.30

-0.27

-0.81

0.00

0.00

0.00

0.43

0.00

0.16

0.00

-1.41

0.00

0.00

0.00

0.00

0.00

-3.91

4.00

0.27

0.00

-1.73

-15.25

0.00

-0.78

0.00

0.00

-6.06

2.22

-2.57

0.00

132

-

1,040

3,010

4,250

-

20,000

13,290

6

630,340

202,940

4,227

39,000

457,762

18,100

50,935

152,522

2

221,000

41,100

2

25,601

659,660

734,762

-

821,831

557,955

-

46,700

-

-

1

2,762,470

6,404

-

691

70

16,101

108,833

652,830

2

-

23,000

262,750

250

1

4,000

-

932,174

8,000,000

5

75

24,489

20,005

610

-

59,629

1,000

338

1,000

77,020

15

-

99,938

1,338

505

1,010,100

64

55,000

675,910

214,038

6,168

2,072,911

346

6,971

512

100,100

637,505

125,000

337

-

250,595

44,446

-

316,870

-

176,000

97,600

2,000

10

1,712

137,881

-

3,005

26,031

126,201

135,000

1,149,200

10,000

14

1,242,500

45,150

708,000

2,978,227

12,010

6,000

40,000

-

20,000

-

875

3,024,700

234,107

50,410

7,578,400

312,900

26

28,510

740,050

-

-

810,307

231,400

59,262

-

KUWAIT


Voltamp Energy SaogUnited Power/Energy Co- Pref

United Power Co SaogUnited Finance Co

Ubar Hotels & ResortsTakaful Oman

Taageer FinanceSweets Of OmanSohar Power Co

Sohar PoultrySmn Power Holding Saog

Shell Oman Marketing - PrefShell Oman Marketing

Sharqiyah Desalination Co SaSembcorp Salalah Power & Wat

Salalah Port ServicesSalalah Mills Co

Salalah Beach Resort SaogSahara Hospitality

Renaissance Services SaogRaysut Cement Co

Port Service CorporationPhoenix Power Co Saoc

Packaging Co LtdOoredoo

OminvestOman United Insurance Co

Oman Textile Holding Co SaogOman Telecommunications Co

Oman Refreshment CoOman Packaging

Oman Orix Leasing Co.Oman Oil Marketing Company

Oman National Engineering AnOman Investment & Finance

Oman Intl MarketingOman Hotels & Tourism CoOman Foods International

Oman Flour MillsOman Fisheries CoOman Fiber Optics

Oman Europe Foods IndustriesOman Education & Training In

Oman ChromiteOman Chlorine

Oman Ceramic CompanyOman Cement Co

Oman Cables IndustryOman Agricultural Dev

Oman & Emirates Inv(Om)50%Natl Aluminium Products

National SecuritiesNational Real Estate Develop

National PharmaceuticalNational Mineral Water

National Hospitality InstituNational Gas Co

National Finance CoNational Detergent Co Saog

National Biscuit IndustriesNational Bank Of Oman Saog

Muscat Thread Mills CoMuscat National Holding

Muscat Gases Company SaogMuscat Finance

Majan Glass CompanyMajan College

Hsbc Bank OmanHotels Management Co Interna

Gulf StoneGulf Plastic Industries Co

Gulf Mushroom CompanyGulf Investments Services

Gulf Invest. Serv. Pref-SharGulf International Chemicals

Gulf Hotels (Oman) Co LtdGlobal Fin Investment

Galfar Engineering&ContractGalfar Engineering -Prefer

Financial Services Co.Financial Corp/The

Dhofar UniversityDhofar Tourism

Dhofar PoultryDhofar Intl Development

Dhofar InsuranceDhofar Fisheries & Food Indu

Dhofar Cattlefeed

0.44

1.00

3.55

0.13

0.13

0.17

0.11

1.34

0.16

0.21

0.70

1.05

1.88

4.35

0.24

0.63

1.33

1.38

2.50

0.22

1.06

0.23

0.14

2.21

0.50

0.52

0.36

0.68

1.26

2.06

0.28

0.16

1.66

0.14

0.20

0.52

0.40

0.00

0.92

0.15

0.00

1.00

0.16

3.64

0.49

0.42

0.45

1.60

0.00

0.11

0.15

0.05

5.00

0.11

0.05

0.00

0.39

0.14

0.68

3.75

0.23

0.08

0.86

0.56

0.12

0.19

0.49

0.13

1.25

0.12

0.00

0.31

0.10

0.11

0.24

10.50

0.16

0.08

0.39

0.10

0.10

1.49

0.49

0.18

0.29

0.20

1.28

0.19

-1.34

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.42

0.00

0.00

0.00

0.00

0.00

-2.75

-0.44

0.00

0.00

0.00

0.00

0.00

0.00

-0.79

0.00

0.00

3.21

0.00

-0.73

-1.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-5.06

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-1.02

0.00

0.42

0.00

0.00

-1.25

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

16,445

-

-

-

-

-

5,000

-

-

-

-

-

-

-

101,915

-

-

-

-

10,000

52,717

7,578

30,000

-

304,307

-

30,000

-

33,576

-

-

622,666

-

44,500

35,990

-

-

-

-

190,400

-

-

3,000

-

-

-

55,440

-

-

41,000

212,000

-

-

-

-

-

-

-

-

-

50,000

-

1,084

-

60,000

-

110

-

-

-

-

-

100,500

-

15,000

-

-

531,865

-

-

-

-

-

-

-

-

-

-

OMAN


Dhofar Beverages CoConstruction Materials Ind

Computer Stationery IndsBankmuscat Saog

Bank SoharBank Nizwa

Bank Dhofar SaogAreej Vegetable Oils Saoc

Aloula CoAl-Omaniya Financial Service

Al-Hassan Engineering CoAl-Fajar Al-Alamia Co

Al-Anwar Ceramic Tiles CoAl Suwadi Power

Al Shurooq Inv SerAl Sharqiya Invest Holding

Al Maha Petroleum Products MAl Maha Ceramics Co SaocAl Madina Takaful Co Saoc

Al Madina Investment CoAl Kamil Power Co

Al Jazerah Services -PfdAl Jazeera Steel Products Co

Al Jazeera ServicesAl Izz Islamic Bank

Al Buraimi HotelAl Batinah PowerAl Batinah Hotels

Al Batinah Dev & InvAl Anwar Holdings Saog

Ahli BankAcwa Power Barka Saog

Abrasives Manufacturing Co SA’saff a Foods Saog

0Man Oil Marketing Co-Pref

0.26

0.03

0.26

0.40

0.15

0.09

0.23

0.00

0.53

0.28

0.05

0.75

0.15

0.18

0.00

0.11

1.44

0.36

0.12

0.07

0.31

0.55

0.27

0.16

0.08

0.88

0.17

1.13

0.09

0.21

0.18

0.76

0.05

0.59

0.25

0.00

0.00

0.00

0.50

-0.68

-1.09

0.87

0.00

0.00

0.00

0.00

0.00

-0.68

0.00

0.00

0.00

0.00

0.00

3.45

6.15

0.00

0.00

0.00

-0.63

2.67

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-

-

-

354,051

250,000

556,598

42,500

-

-

-

-

-

305,724

174,983

-

263,842

-

-

7,057,237

4,994,267

-

-

-

23,000

190,650

-

-

-

6,000

415,261

-

-

-

-

-

OMAN


Waha Capital PjscUnited Insurance Company

United Arab Bank PjscUnion National Bank/Abu Dhab

Union Insurance CoUnion Cement Co

Umm Al Qaiwain Cement IndustSharjah Islamic Bank

Sharjah Insurance CompanySharjah Group

Sharjah Cement & Indus DevelRas Al-Khaimah National Insu

Ras Al Khaimah White CementRas Al Khaimah Ceramics

Ras Al Khaimah Cement Co PscRas Al Khaima Poultry

Rak PropertiesOoredoo Qsc

Oman & Emirates Inv(Emir)50%Nbad Oneshare Msci Uae Ucits

National Takaful CompanyNational Marine Dredging Co

National Investor Co/TheNational Corp Tourism & Hote

National Bank Of Umm Al QaiwNational Bank Of Ras Al-Khai

National Bank Of FujairahFirst Abu Dhabi Bank Pjsc

Methaq Takaful InsuranceManazel Real Estate Pjsc

Invest BankIntl Fish Farming Co Pjsc

Insurance HouseGulf Pharmaceutical Ind Psc

Gulf Medical ProjectsGulf Cement Co

Fujairah Cement IndustriesFujairah Building Industries

Foodco Holding PjscFirst Gulf BankFinance House

Eshraq Properties Co PjscEmirates Telecom Group Co

Emirates Insurance Co. (Psc)Emirates Driving Company

Dana GasCommercial Bank Internationa

Bank Of SharjahAxa Green Crescent Insurance

Arkan Building Materials CoAlkhaleej InvestmentAldar Properties Pjsc

Al Wathba National InsuranceAl Khazna Insurance Co

Al Fujairah National InsuranAl Dhafra Insurance Co. P.S.

Al Buhaira National InsurancAl Ain Ahlia Ins. Co.

Agthia Group PjscAbu Dhabi Ship Building Co

Abu Dhabi Natl Co For BuildiAbu Dhabi National Takaful C

Abu Dhabi National InsuranceAbu Dhabi National Hotels

Abu Dhabi National Energy CoAbu Dhabi Islamic Bank

1.75

2.00

1.50

5.00

1.86

1.17

1.78

1.37

3.85

1.49

0.98

4.10

1.06

2.60

0.78

3.70

0.58

101.10

0.71

6.20

0.58

4.50

0.54

2.45

2.99

4.35

3.32

0.00

0.80

0.56

2.40

1.55

0.80

2.19

4.11

0.92

1.04

1.56

5.99

0.00

1.60

1.05

17.45

5.98

8.50

0.43

1.50

1.31

0.66

0.68

1.25

2.24

12.75

0.40

300.00

3.84

2.20

50.00

5.60

2.70

0.56

5.15

3.00

3.20

0.58

3.61

-0.57

0.00

-3.85

-1.96

0.00

0.00

0.00

-1.44

0.00

0.00

-2.97

0.00

0.00

0.00

-2.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.90

0.00

-1.08

0.00

0.00

0.00

0.00

0.00

-0.94

0.29

0.00

0.00

2.38

-5.06

0.00

0.00

1.49

0.00

-1.75

0.00

0.00

0.00

0.00

0.00

0.00

-1.75

0.00

0.00

0.00

0.00

0.00

-1.69

-0.28

647,571

-

100,000

12,036

-

-

-

96,389

-

-

50,000

-

-

-

94,315

-

2,517,201

-

-

-

-

-

-

208,252

-

2,848

-

-

559,978

4,853,181

-

657,969

-

17,152

-

100,000

-

-

-

-

50

19,202,717

749,293

-

-

6,462,470

30,000

10,251

-

177,140

-

9,114,154

-

-

-

-

-

-

124,636

-

-

-

-

-

83,754

192,603

UAE


Zain Bahrain BsccUnited Paper Industries Bsc

United Gulf Investment CorpUnited Gulf BankTrafco Group Bsc

Takaful International CoTaib Bank -$Us

Seef PropertiesSecurities & Investment Co

National Hotels CoNational Bank Of Bahrain Bsc

Nass Corp BscKhaleeji Commercial Bank

Ithmaar Holding BscInvestcorp Bank -$Us

Inovest Co BscGulf Monetary Group

Gulf Hotel Group B.S.CGfh Financial Group Bsc

Esterad Investment Co B.S.C.Delmon Poultry Co

Bmmi BscBmb Investment Bank

Bbk BscBankmuscat Saog

Banader Hotels CoBahrain Tourism CoBahrain Telecom Co

Bahrain Ship Repair & EnginBahrain National Holding

Bahrain Kuwait InsuranceBahrain Islamic Bank

Bahrain Flour Mills CoBahrain Family Leisure Co

Bahrain Duty Free ComplexBahrain Commercial Facilitie

Bahrain Cinema CoBahrain Car Park Co

Arab Insurance Group(Bsc)-$Arab Banking Corp Bsc-$Us

Aluminium Bahrain BscAlbaraka Banking Group

Al-Salam BankAl-Ahlia Insurance Co

Ahli United Bank B.S.C

0.00

0.00

0.00

0.00

0.27

0.00

0.00

0.24

0.00

0.00

0.68

0.13

0.10

0.15

8.60

0.33

0.00

0.54

0.65

0.12

0.00

0.82

0.00

0.39

0.00

0.07

`

0.26

0.00

0.41

0.54

0.15

0.00

0.08

0.76

0.74

1.30

0.14

0.47

0.29

0.42

0.42

0.10

0.00

0.67

0.00

0.00

0.00

0.00

4.72

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.52

0.00

8.33

0.00

-0.76

0.00

5.67

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.79

2.91

0.00

-1.04

0.00

-0.74

-

-

-

-

9,884

-

-

17,500

-

-

30,000

112,393

69,241

50,000

200,000

15,000

-

23,700

28,000

737,534

-

16,000

-

9,888

-

61,699

-

41,000

-

5,000

24,022

10,653

-

150,000

62,000

12,000

16,407

223,000

9,287,082

20,870

36,000

100,000

94,704

-

46,000

BAHRAIN


Boubyan Intl Industries HoldGulf Investment House Ksc

Boubyan Bank K.S.CAhli United Bank B.S.C

Osos Holding Group CoAl-Eid Food Ksc

Qurain Petrochemical IndustrAdvanced Technology Co

Ekttitab Holding Co SakKout Food Group Ksc

Real Estate Trade Centers CoAcico Industries Co Kscc

Kipco Asset Management CoNational Petroleum ServicesAlimtiaz Investment Co Kscc

Ras Al Khaimah White CementKuwait Reinsurance Co Ksc

Kuwait & Gulf Link TransportHuman Soft Holding Co Ksc

Automated Systems Co KsccMetal & Recycling Co

Gulf Franchising Holding CoAl-Enma’a Real Estate Co

National Mobile TelecommuniAl Bareeq Holding Co Kscc

Housing Finance Co SakAl Salam Group Holding Co

United Foodstuff IndustriesAl Aman Investment Company

Mashaer Holdings Co KscManazel Holding

Mushrif Trading & ContractinTijara And Real Estate Inves

Kuwait Building MaterialsJazeera Airways Co Ksc

Commercial Real Estate CoFuture Communications Co

National International CoTaameer Real Estate Invest C

Gulf Cement CoHeavy Engineering And Ship B

Refrigeration Industries & SNational Real Estate Co

Al Safat Energy Holding CompKuwait National Cinema CoDanah Alsafat Foodstuff Co

Independent Petroleum GroupKuwait Real Estate Co Ksc

Salhia Real Estate Co KscGulf Cable & Electrical IndAl Nawadi Holding Co Ksc

Kuwait Finance HouseGulf North Africa Holding Co

Hilal Cement CoOsoul Investment Kscc

Gulf Insurance Group KscKuwait Food Co (Americana)

Umm Al Qaiwain Cement IndustAayan Leasing & Investment

Alrai Media Group Co KscNational Investments CoCommercial Facilities Co

Taiba Kuwaiti Holding Co KscAfaq Educational Services Co

Kuwait Pillars For FinancialYiaco Medical Co. K.S.C.C

Dulaqan Real Estate Co

42.00

37.50

405.00

207.00

131.00

88.00

340.00

1,100.00

35.50

0.00

43.50

280.00

82.00

1,580.00

154.00

103.00

196.00

68.00

4,150.00

200.00

104.00

69.90

38.60

1,220.00

0.00

0.00

54.50

0.00

50.00

0.00

48.80

0.00

58.00

136.00

460.00

75.00

0.00

61.90

34.80

78.00

224.00

0.00

112.00

40.40

1,200.00

76.50

355.00

58.10

385.00

430.00

0.00

496.00

36.70

0.00

60.00

550.00

2,660.00

0.00

44.70

129.00

107.00

174.00

0.00

150.00

0.00

260.00

0.00

-2.33

0.00

0.25

0.98

-5.07

0.00

2.10

0.00

-1.39

0.00

0.00

0.00

0.00

-2.47

0.00

0.00

0.00

5.43

1.24

-6.98

0.00

0.00

-0.26

1.67

0.00

0.00

0.55

0.00

0.00

0.00

-2.40

0.00

0.00

0.00

-5.15

1.21

0.00

-1.75

-4.66

0.00

0.00

0.00

0.00

-0.25

0.00

-0.52

0.00

-1.02

-1.28

-0.46

0.00

0.81

-0.27

0.00

0.00

0.00

0.00

0.00

-1.32

0.00

0.94

0.00

0.00

0.00

0.00

0.00

0.00

185,000

2,035,969

160,626

1,321,592

20,073

9

176,466

1,015

42,512

-

4,000

4,100

2,500

124

2,820,365

2,000

5

150,172

129,379

2,101

77

2,300

163,265

31,467

-

-

3,568,150

-

500

-

1,206,907

-

10

295

30,000

426,713

-

15,818

2,923,360

130,595

50,070

-

11,063,415

675,558

750

80,497

50

675,000

135,157

8,920

-

3,073,505

10,005

-

100,237

9,741

10,001

-

1,583,042

892

210,100

901,000

-

5,000

-

500

-

KUWAIT


LATEST MARKET CLOSING FIGURES

BUSINESS5Gulf Times


CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

London stocks dip afterattack in ManchesterAFPLondon

London stocks dipped yester-day, with sentiment dented by a deadly terror attack in Manches-

ter, while eurozone equities climbed on upbeat data.

The British capital’s FTSE 100 in-dex of leading blue-chip companies wobbled between gains and losses during the day, closing down 0.2%. The pound, meanwhile, ended the day higher against the dollar.

“Trading was inevitably overshad-owed by last night’s terror attack in Manchester,” noted Russ Mould, in-vestment director at stockbroker AJ Bell.

At least 22 people were killed, in-cluding children, in the suicide bomb blast at the end of a pop concert by US star Ariana Grande in Britain’s third city of Manchester.

Police say they believe Monday night’s attack, the deadliest on British soil in 12 years and coming two weeks before next month’s general election,

was carried out by one man who had died at the scene.

The attack, the worst in Britain since bombers killed 52 people in 2005, re-awakened concerns about terror and geopolitical worries.

In the eurozone, meanwhile, stocks rose on well-received economic num-bers, with the Frankfurt DAX index climbing 0.3% and the Paris CAC ris-ing 0.5%. The eurozone economy grew at its fastest pace in six years in May as job creation in Europe picked up to its highest level in a decade, a closely watched survey showed.

Data monitoring company IHS Markit said its May Composite Pur-chasing Managers Index came in at 56.8 points, unchanged from April which was also the best for six years.

The PMI measures companies’ will-ingness to invest in their business and so gives a good idea of how well the un-derlying economy is performing.

Any reading above the boom-bust 50 points line indicates the economy is expanding.

US stocks pushed higher as the ad-ministration of US President Donald

Trump released a 2018 budget that seeks a staggering $1.7tn in cuts over 10 years to a category of spending that includes key social and “mandatory” programmes for lower-income Ameri-cans.

“It’s perhaps not surprising to see the latest Trump slump become an-other buy-the-dip opportunity,” said market analyst Jasper Lawler at Lon-don Capital Group.

“The Donald’s fi rst budget landing on lawmakers’ desks yesterday is a re-minder that while a special prosecutor is a hindrance to the pro-growth agen-da, work is still being done.”

Markets were hammered in the middle of last week on fears about Trump’s economy-boosting agenda, with his presidency engulfed in a cri-sis over his firing of FBI chief James Comey and allegations he disclosed sensitive intelligence to Russian of-ficials.

In London, the FTSE 100 closed down 0.2% at 7,485.29 points; Frank-furt — DAX 30 edged up 0.3% at 12,659.15 points and Paris — CAC 40 rose 0.5% at 5,348.16 points yesterday.

A visitor passes a sign inside the London Stock Exchange. The FTSE 100 closed down 0.2% to 7,485.29 points yesterday.

Apple IncMicrosoft Corp

Exxon Mobil CorpJohnson & JohnsonGeneral Electric Co

Jpmorgan Chase & CoProcter & Gamble Co/The

Wal-Mart Stores IncVerizon Communications Inc

Pfizer IncVisa Inc-Class A Shares

Chevron CorpCoca-Cola Co/The

Intel CorpMerck & Co. Inc.

Cisco Systems IncHome Depot Inc

Intl Business Machines CorpWalt Disney Co/The

Unitedhealth Group Inc3M Co

Mcdonald’s CorpNike Inc -Cl B

United Technologies CorpBoeing Co/The

Goldman Sachs Group IncAmerican Express Co

Du Pont (E.I.) De NemoursCaterpillar Inc

Travelers Cos Inc/The

153.94

68.52

82.52

127.88

28.15

85.37

86.22

78.84

45.48

32.18

93.80

106.15

44.51

35.94

64.54

31.81

155.31

152.39

107.29

174.19

198.03

148.15

52.16

122.37

183.55

218.18

77.17

77.58

103.00

121.79

-0.04

0.11

0.28

0.49

-0.12

0.79

0.01

0.37

0.01

0.19

0.53

0.03

0.74

0.48

0.78

0.68

-0.42

-0.16

-0.32

-0.29

-0.24

-0.03

1.14

0.58

-0.07

1.00

0.25

0.26

0.69

0.12

9,232,615

5,393,091

2,328,809

1,389,386

7,110,415

3,819,427

1,545,122

2,469,153

2,942,045

6,937,090

2,056,863

1,363,042

4,660,293

8,264,128

1,817,525

8,499,540

1,175,116

892,726

2,765,704

688,836

575,774

1,203,355

6,429,913

936,088

765,343

1,350,320

769,451

538,304

1,156,147

398,645

DJIA


Wpp PlcWorldpay Group Plc

Wolseley PlcWm Morrison Supermarkets

Whitbread PlcVodafone Group Plc

United Utilities Group PlcUnilever Plc

Tui Ag-DiTravis Perkins Plc

Tesco PlcTaylor Wimpey Plc

Standard Life PlcStandard Chartered Plc

St James’s Place PlcSse Plc

Smith & Nephew PlcSky Plc

Shire PlcSevern Trent Plc

Schroders PlcSainsbury (J) Plc

Sage Group Plc/TheSabmiller Plc

Rsa Insurance Group PlcRoyal Mail Plc

Royal Dutch Shell Plc-B ShsRoyal Dutch Shell Plc-A Shs

Royal Bank Of Scotland GroupRolls-Royce Holdings Plc

Rio Tinto PlcRexam Ltd

Relx PlcReckitt Benckiser Group Plc

Randgold Resources LtdPrudential Plc

Provident Financial PlcPersimmon Plc

Pearson PlcPaddy Power Betfair Plc

Old Mutual PlcNext Plc

National Grid PlcMondi Plc

Merlin EntertainmentMediclinic International Plc

Marks & Spencer Group PlcLondon Stock Exchange Group

Lloyds Banking Group PlcLegal & General Group PlcLand Securities Group Plc

Kingfisher PlcJohnson Matthey Plc

Itv PlcIntu Properties Plc

Intl Consolidated Airline-DiIntertek Group Plc

Intercontinental Hotels GrouInmarsat Plc

Informa PlcImperial Brands Plc

Hsbc Holdings PlcHargreaves Lansdown Plc

Hammerson PlcGlencore Plc

Glaxosmithkline PlcGkn Plc

Fresnillo PlcExperian Plc

Easyjet PlcDixons Carphone Plc

Direct Line Insurance GroupDiageo Plc

Dcc PlcCrh Plc

Compass Group PlcCoca-Cola Hbc Ag-Di

Centrica PlcCarnival Plc

Capita PlcBurberry Group Plc

Bunzl PlcBt Group Plc

British Land Co PlcBritish American Tobacco Plc

Bp PlcBhp Billiton Plc

Berkeley Group Holdings/TheBarratt Developments Plc

Barclays PlcBae Systems Plc

Babcock Intl Group PlcAviva Plc

Astrazeneca PlcAssociated British Foods Plc

Ashtead Group PlcArm Holdings Plc

Antofagasta PlcAnglo American Plc

Admiral Group Plc3I Group Plc

#N/A

1,673.00

314.00

4,894.00

245.10

4,210.00

224.25

1,048.00

4,190.00

1,141.00

1,657.00

182.60

199.00

383.40

733.60

1,177.00

1,551.00

1,332.00

1,002.00

4,710.00

2,491.00

3,132.00

276.70

701.00

0.00

618.00

423.40

2,156.50

2,112.00

264.90

862.00

3,192.50

0.00

1,642.00

7,630.00

7,240.00

1,738.50

3,097.00

2,456.00

697.00

8,415.00

192.80

4,466.00

1,076.50

1,994.00

517.50

869.00

387.70

3,410.00

72.16

252.80

1,075.00

359.20

3,112.00

198.20

266.00

601.00

4,272.00

4,291.00

807.00

643.00

3,649.50

666.90

1,367.00

577.50

291.95

1,629.50

348.40

1,582.00

1,658.00

1,301.00

326.60

342.10

2,320.50

7,400.00

2,809.00

1,607.00

2,244.00

206.70

4,788.00

579.00

1,741.00

2,443.00

315.65

635.00

5,420.00

474.25

1,201.00

3,355.00

609.00

214.25

641.50

969.50

531.00

5,141.00

2,954.00

1,564.00

0.00

811.00

1,075.00

1,995.00

838.50

0.00

-2.16

-0.03

-0.08

-0.04

-0.94

-0.04

1.06

-0.11

-0.95

-1.43

-1.11

-0.10

-0.29

-0.50

1.03

1.11

-0.15

-0.50

-2.35

1.76

0.38

-0.47

0.14

0.00

0.57

-0.49

0.19

0.12

1.26

1.00

-0.58

0.00

0.49

-0.07

-1.63

0.17

-1.15

-0.08

-0.43

-1.69

1.26

-0.25

1.22

0.96

-1.52

-2.03

-1.97

-0.84

0.52

1.00

-0.19

-2.42

1.47

0.10

-0.60

0.50

0.38

-0.21

0.50

-0.92

-1.36

0.05

-0.07

-1.03

-1.53

-0.76

-0.80

-1.31

0.73

2.52

-1.09

-1.50

0.63

-0.13

0.43

-0.80

0.58

1.03

-0.04

-1.36

-0.85

-0.12

0.25

-0.63

-0.86

0.06

-1.19

-0.27

-0.73

0.28

0.00

2.97

-0.09

0.21

1.62

-0.38

0.00

-0.98

-0.97

-0.60

0.24

0.00

6,280,968

3,672,992

596,345

6,825,821

863,883

53,809,514

2,153,967

2,075,306

1,237,659

856,375

16,406,601

8,854,234

4,098,654

5,231,984

947,216

3,399,627

1,675,287

3,838,338

2,327,981

1,232,640

312,035

5,691,915

1,451,913

-

1,639,039

4,281,331

5,790,126

4,665,296

10,252,357

5,173,859

4,106,412

-

3,720,659

977,537

496,501

3,108,954

225,544

1,204,323

4,669,124

119,793

14,249,245

466,205

7,936,079

2,677,482

3,313,274

1,912,593

12,384,941

690,619

112,944,695

15,347,333

3,005,082

14,556,116

597,181

12,054,735

6,037,467

6,099,702

346,594

448,576

1,279,666

1,567,333

2,144,096

24,368,904

571,248

4,298,936

35,107,199

9,843,998

3,810,494

731,937

1,810,490

3,962,660

2,824,280

7,534,585

3,600,410

165,968

891,519

2,807,684

467,778

23,946,843

495,918

2,316,674

1,296,697

579,636

15,522,135

4,914,327

2,596,224

27,437,657

8,274,593

368,142

2,423,454

38,458,084

5,548,877

3,969,032

8,031,726

1,901,742

1,525,177

1,169,560

-

2,160,099

4,420,955

862,681

1,757,345

-

FTSE 100


East Japan Railway CoItochu Corp

Fujifilm Holdings CorpYamato Holdings Co Ltd

Chubu Electric Power Co IncMitsubishi Estate Co Ltd

Mitsubishi Heavy IndustriesToshiba Corp

Shiseido Co LtdShionogi & Co Ltd

Tokyo Gas Co LtdTokyo Electron Ltd

Panasonic CorpFujitsu Ltd

Central Japan Railway CoT&D Holdings Inc

Toyota Motor CorpKddi Corp

Nitto Denko Corp

10,660.00

1,600.00

4,050.00

2,357.00

1,470.50

2,082.00

445.40

232.10

3,640.00

6,066.00

581.80

15,355.00

1,368.50

786.80

18,285.00

1,549.50

6,000.00

3,066.00

8,938.00

0.38

-1.14

-1.44

-0.74

-0.44

0.07

0.34

0.91

0.05

-0.13

-0.63

-2.07

0.00

-0.56

-0.22

-0.67

0.05

-0.03

-0.47

655,000

3,649,200

1,435,700

1,460,300

1,541,800

2,754,800

7,991,000

57,310,000

1,181,500

795,700

7,516,000

1,464,500

3,980,900

7,246,000

437,600

3,190,900

4,217,200

3,714,400

367,300

TOKYO


Rakuten IncKyocera Corp

Nissan Motor Co LtdHitachi Ltd

Takeda Pharmaceutical Co LtdJfe Holdings Inc

Ana Holdings IncMitsubishi Electric Corp

Sumitomo Mitsui Financial GrHonda Motor Co Ltd

Fast Retailing Co LtdMs&Ad Insurance Group Holdin

Kubota CorpSeven & I Holdings Co Ltd

Inpex CorpResona Holdings Inc

Asahi Kasei CorpKirin Holdings Co Ltd

Marubeni CorpMitsubishi Ufj Financial Gro

Mitsubishi Chemical HoldingsFanuc Corp

Daito Trust Construct Co LtdOtsuka Holdings Co Ltd

Oriental Land Co LtdSekisui House Ltd

Secom Co LtdTokio Marine Holdings Inc

Aeon Co LtdMitsui & Co Ltd

Kao CorpDai-Ichi Life Holdings Inc

Mazda Motor CorpKomatsu Ltd

West Japan Railway CoMurata Manufacturing Co Ltd

Kansai Electric Power Co IncDenso Corp

Sompo Holdings IncDaiwa House Industry Co Ltd

Jxtg Holdings IncNippon Steel & Sumitomo Meta

Suzuki Motor CorpNippon Telegraph & Telephone

Ajinomoto Co IncMitsui Fudosan Co Ltd

Ono Pharmaceutical Co LtdDaikin Industries Ltd

Bank Of Yokohama Ltd/TheToray Industries IncAstellas Pharma Inc

Bridgestone CorpSony CorpHoya Corp

Sumitomo Mitsui Trust HoldinJapan Tobacco Inc

Osaka Gas Co LtdSumitomo Electric Industries

Daiwa Securities Group IncSoftbank Group Corp

Mizuho Financial Group IncNomura Holdings Inc

Daiichi Sankyo Co LtdSubaru Corp

Ntt Docomo IncSumitomo Realty & Developmen

Sumitomo Metal Mining Co LtdOrix Corp

Asahi Group Holdings LtdKeyence Corp

Nidec CorpIsuzu Motors Ltd

Unicharm CorpShin-Etsu Chemical Co Ltd

Smc CorpMitsubishi CorpNintendo Co Ltd

Eisai Co LtdSumitomo Corp

Canon IncJapan Airlines Co Ltd

1,306.00

6,470.00

1,074.00

667.90

5,787.00

1,871.50

345.10

1,564.50

4,045.00

3,069.00

37,080.00

3,810.00

1,733.00

4,777.00

1,055.00

561.90

1,061.50

2,320.00

680.20

691.30

834.80

21,840.00

17,430.00

5,115.00

7,191.00

1,886.00

8,079.00

4,718.00

1,658.50

1,505.50

6,899.00

1,826.50

1,527.00

2,646.00

7,782.00

15,805.00

1,506.50

4,780.00

4,395.00

3,587.00

490.40

2,479.50

5,147.00

5,236.00

2,366.00

2,594.00

2,363.50

10,860.00

0.00

922.60

1,414.00

4,748.00

3,957.00

5,420.00

3,775.00

4,177.00

421.10

1,812.50

673.10

8,508.00

197.10

668.90

2,443.50

3,768.00

2,735.50

3,175.00

1,381.00

1,760.00

4,425.00

48,590.00

10,435.00

1,392.00

2,959.00

9,815.00

34,470.00

2,249.00

30,880.00

5,958.00

1,429.00

3,777.00

3,310.00

0.00

-0.35

-1.47

-0.93

0.94

-0.05

-1.23

-1.36

-0.52

-0.52

-0.75

-0.86

-1.06

-0.21

-0.80

-1.14

-0.70

-0.39

-0.82

-0.62

-0.16

-0.46

2.38

0.55

1.18

-0.63

-0.15

-1.67

-0.21

-0.13

0.16

-0.33

-0.97

-1.51

0.28

-0.03

-1.76

-0.02

-2.14

-0.64

-1.61

-1.18

-0.73

0.19

0.38

-0.35

-0.78

0.23

0.00

-0.62

-0.14

-0.04

0.36

-0.51

-0.26

1.53

1.08

-0.19

-0.87

-0.32

0.05

-1.36

-0.14

-1.15

0.04

0.44

-0.83

0.89

-0.58

0.19

0.24

-0.46

-0.10

-0.15

-0.14

-0.64

1.28

-0.42

-1.07

-0.26

-2.27

TOKYO

Company Name Lt Price % Chg

Aluminum Corp Of China Ltd-HBank Of East Asia Ltd

Bank Of China Ltd-HBank Of Communications Co-H

Belle International HoldingsBoc Hong Kong Holdings Ltd

Cathay Pacific AirwaysCk Hutchison Holdings Ltd

China Coal Energy Co-HChina Construction Bank-H

China Life Insurance Co-HChina Merchants Port Holding

China Mobile LtdChina Overseas Land & Invest

China Petroleum & Chemical-HChina Resources Beer Holdin

China Resources Land LtdChina Resources Power Holdin

China Shenhua Energy Co-HChina Unicom Hong Kong Ltd

Citic LtdClp Holdings Ltd

Cnooc LtdCosco Shipping Ports Ltd

Esprit Holdings LtdFih Mobile Ltd

Hang Lung Properties LtdHang Seng Bank Ltd

Henderson Land Development

3.57

32.25

3.86

5.88

6.08

34.40

11.48

100.30

3.50

6.32

25.05

22.35

86.25

22.45

6.28

19.76

21.35

15.20

19.02

10.76

12.14

82.85

9.14

8.90

5.59

2.55

19.36

161.40

49.00

-1.38

0.16

-0.52

0.34

-0.16

-0.15

-0.86

0.65

-2.51

-0.16

0.80

1.59

-0.23

-0.44

-0.16

-1.94

-0.23

-1.30

0.63

3.86

0.33

-0.30

-0.33

2.30

-2.27

-1.16

-0.72

0.19

-0.41

19,638,128

1,234,855

296,885,462

23,356,475

27,542,994

16,512,435

8,733,150

5,539,687

8,711,400

259,359,101

68,143,105

4,726,713

11,329,015

12,595,254

64,045,009

5,721,192

7,137,660

3,653,592

25,130,207

66,384,427

19,016,760

1,837,545

60,802,686

4,944,577

1,733,607

12,942,778

4,268,150

1,013,698

2,530,102

HONG KONG


Hong Kong & China GasHong Kong Exchanges & Clear

Hsbc Holdings PlcHutchison Whampoa Ltd

Ind & Comm Bk Of China-HLi & Fung Ltd

Mtr CorpNew World Development

Petrochina Co Ltd-HPing An Insurance Group Co-H

Power Assets Holdings LtdSino Land Co

Sun Hung Kai PropertiesSwire Pacific Ltd - Cl ATencent Holdings Ltd

Wharf Holdings Ltd

15.84

195.20

67.65

0.00

5.12

3.12

44.10

9.56

5.33

48.50

69.15

13.20

113.10

76.90

275.20

66.30

0.38

-0.61

-0.07

0.00

0.20

0.00

0.46

-1.04

0.19

0.62

0.07

-1.05

-0.62

1.85

-0.07

0.23

8,372,061

2,962,559

20,413,047

-

258,464,129

15,418,676

9,157,196

14,716,711

115,622,864

72,037,483

2,668,589

3,152,250

3,321,778

3,068,989

34,952,505

4,168,679

HONG KONG


Zee Entertainment EnterpriseYes Bank Ltd

Wipro LtdVedanta Ltd

Ultratech Cement LtdTech Mahindra Ltd

Tata Steel LtdTata Power Co Ltd

Tata Motors LtdTata Consultancy Svcs Ltd

Sun Pharmaceutical IndusState Bank Of India

Reliance Industries LtdPunjab National Bank

Power Grid Corp Of India LtdOil & Natural Gas Corp Ltd

Ntpc LtdMaruti Suzuki India Ltd

Mahindra & Mahindra LtdLupin Ltd

Larsen & Toubro LtdKotak Mahindra Bank Ltd

Itc LtdInfosys Ltd

Indusind Bank LtdIdea Cellular Ltd

Icici Bank LtdHousing Development Finance

Hindustan Unilever LtdHindalco Industries Ltd

Hero Motocorp LtdHdfc Bank Limited

Hcl Technologies LtdGrasim Industries Ltd

Gail India LtdDr. Reddy’s Laboratories

Coal India LtdCipla Ltd

Cairn India LtdBosch Ltd

Bharti Airtel LtdBharat Petroleum Corp Ltd

Bharat Heavy ElectricalsBank Of Baroda

Bajaj Auto LtdAxis Bank Ltd

Asian Paints LtdAmbuja Cements Ltd

Adani Ports And Special EconAcc Ltd

512.25

1,403.15

526.40

230.75

4,267.35

415.75

490.40

80.50

450.50

2,521.70

614.10

288.85

1,305.55

149.75

201.40

174.65

156.95

6,878.85

1,331.75

1,250.60

1,740.75

940.25

300.15

957.30

1,393.95

84.55

306.05

1,511.50

1,024.80

192.00

3,585.00

1,569.10

864.90

1,096.90

380.35

2,579.45

267.85

533.20

285.35

23,141.60

371.90

699.55

155.90

182.00

2,824.95

500.60

1,098.90

239.80

331.65

1,627.50

-1.56

-0.19

1.00

0.81

-0.05

0.82

0.82

-1.89

0.19

-0.38

-4.07

-1.85

-1.40

-0.79

-0.54

-1.41

-0.79

2.64

1.95

-1.21

-0.64

-0.11

-1.14

-0.43

0.33

-3.65

0.72

-0.55

0.61

0.92

0.63

-0.44

0.87

-0.95

-2.52

-1.12

-2.19

-5.31

0.00

0.26

-0.17

0.57

-3.38

-0.44

-3.06

-0.34

-1.23

-1.46

-6.43

0.04

SENSEX

Company Name Lt Price % Chg

WORLD INDICESIndices Lt Price Change

GCC INDICESIndices Lt Price Change

Dow Jones Indus. AvgS&P 500 Index

Nasdaq Composite IndexS&P/Tsx Composite Index

Mexico Bolsa IndexBrazil Bovespa Stock Idx

Ftse 100 IndexCac 40 Index

Dax IndexIbex 35 Tr

Nikkei 225Japan Topix

Hang Seng IndexAll Ordinaries Indx

Nzx All IndexBse Sensex 30 Index

Nse S&P Cnx Nifty IndexStraits Times Index

Karachi All Share IndexJakarta Composite Index

20,935.06

2,399.72

6,142.18

15,500.11

49,096.20

62,531.12

7,485.29

5,348.16

12,659.15

10,916.30

19,613.28

1,565.22

25,403.15

5,802.79

1,356.48

30,365.25

9,386.15

3,222.69

35,863.66

5,730.61

+40.23

+5.70

+8.56

+41.65

+152.74

+857.63

-11.05

+25.28

+39.69

+122.90

-65.00

-2.43

+11.81

-8.44

-4.01

-205.72

-52.10

+9.12

+431.54

-18.83

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

10,123.00

6,936.37

6,744.67

1,309.86

5,401.59

4,546.03

3,363.60

-11.90

-51.28

-29.67

+0.95

-11.84

-5.76

-26.44

“Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on this data.”

7,139,500

598,300

13,473,100

13,688,000

2,374,900

4,134,600

11,574,000

5,139,700

4,256,600

6,803,300

309,700

1,869,400

3,902,600

1,587,500

3,162,500

14,852,400

2,233,000

2,079,300

7,544,000

54,222,400

5,402,800

603,500

750,600

625,900

789,900

2,200,800

308,900

2,707,200

1,406,600

3,573,800

1,488,000

3,649,500

4,122,000

5,355,700

574,000

487,400

2,550,200

1,038,100

1,967,400

1,404,200

11,115,700

3,386,600

1,530,800

2,740,300

1,698,600

2,080,000

1,663,100

827,100

-

4,119,900

6,331,100

1,921,400

4,587,700

757,800

1,155,000

6,574,300

8,863,000

2,207,600

7,072,000

3,657,800

75,769,500

10,591,000

1,386,400

3,352,000

2,829,900

1,630,000

3,808,000

4,710,200

1,360,100

176,100

584,000

2,525,400

835,600

725,600

357,100

3,091,400

1,742,900

499,300

2,828,300

2,366,100

2,956,600

1,498,885

3,065,398

1,750,947

16,409,013

241,729

5,066,791

10,769,895

6,136,208

11,403,116

1,423,887

12,709,237

21,325,580

2,350,395

20,137,643

3,768,158

6,210,143

2,440,767

1,032,028

822,234

2,141,232

1,071,557

1,444,663

20,942,742

2,733,101

811,070

7,727,094

32,688,115

1,923,659

3,261,360

15,674,336

209,505

833,489

3,836,073

1,778,773

10,486,112

303,600

4,051,183

1,368,603

26,579,537

10,238

7,055,399

1,845,708

5,638,646

11,348,044

506,414

8,042,220

1,420,138

2,679,443

6,669,677

360,565

Volume

Volume


BUSINESS6

BUSINESS


ChemChina, Sinochem in merger talks to create $120bn chemicals giantReutersHong Kong/Beijing

Chinese state-owned Sinochem and ChemChina are in merger talks to create the world’s biggest

industrial chemicals fi rm, to be headed by Sinochem chief Ning Gaoning, four people with knowledge of the negotia-tions said.

A deal could be announced by the end of the year, the people said, potentially just months after ChemChina completes its own $43bn purchase of Switzerland’s Syngenta, China’s biggest overseas deal to date.

A consolidation of Sinochem and ChemChina would be worth around $120bn, one of the people said, topping companies like industrial chemicals giant BASF. Talks to create a Chinese chemicals powerhouse were fi rst reported last year, but were dismissed by both companies as rumour. Sinochem and China National Chemicals Corp, as ChemChina is of-fi cially known, did not immediately re-spond to requests for comment yesterday.

A Syngenta spokesperson said the company was not aware of any talks.

The two companies have accelerated negotiations after regulators last month cleared ChemChina’s acquisition of Syn-genta, the people said.

With the approval also of over 80% of Syngenta shareholders bringing comple-tion of that deal nearer, focus has shifted to creating a Chinese powerhouse.

Beijing sees a Sinochem/ChemChina deal as a blueprint for streamlining and consolidating its sprawling, debt-heavy state-owned enterprises, the people said, leaving fewer, but more powerful, na-tional champions.

“This is the priority now for both com-panies. The message from the top to the managers is very clear: don’t be distract-ed by anything else,” one of the people said, adding that the focus on this deal accounted in part for Sinochem recently ditching a plan to invest in Noble Group, a loss-making commodity trader.

A deal is not yet fi nal, and China’s 19th Communist Party Congress later this year leaves room for some political uncertainty. The expected retirement of

ChemChina chief Ren Jianxin in January may speed up the process, one of the peo-ple said, to allow for a handover period.

Ren, known for bold deals includ-ing Syngenta and the purchase of Ital-ian tyremaker Pirelli, has spent over a decade and billions of dollars expanding ChemChina, founding a popular noodle chain along the way.

He may, though, have irked the author-ities with his chutzpah in forging ahead with high-profi le deals, another of those with knowledge of the discussions said.

Ning, who made a name for himself as head of state-owned food processing group Cofco, is seen as politically well connected.

“The magnitude of the Syngenta deal

means Beijing wants to make sure it’s se-curely managed,” said a person from the oil and gas industry.

While the ambitious Syngenta takeo-ver brought China a portfolio of top-tier chemicals and patent-protected seeds to improve agricultural output, it also leaves ChemChina with hefty debt.

ChemChina last year arranged $32.9bn in bridge loans with more than 20 Chi-nese, European and Asian lenders – giv-ing it a level of gearing that investors and analysts think is too high.

Combining Sinochem and an enlarged ChemChina would put the group among the world leaders across the competitive chemicals, fertiliser and oil industries – a giant overseas and a major challenger

domestically to Sinopec and PetroChina.Sinochem is larger than ChemChina,

but needs a long-term partner to expand globally market from its roots as an oil and chemical trader.

Sinochem’s growth in its energy busi-ness has stagnated, with more competi-tion at home in trading from companies including Unipec and Chinaoil, while its overseas oil and gas assets have struggled amid prolonged weaker oil prices.

Regulators may yet prove an obstacle.During the European Commission ap-

proval process for the ChemChina/Syn-genta deal, both companies indicated they were not imminently pursuing a deal with Sinochem, a separate source said at the time.

Noble’s woes deepen as S&P warns on debt riskReutersSingapore

Noble Group’s troubles wors-ened after S&P warned of a risk the struggling commod-

ity trader won’t pay its debt and as sources told Reuters a potential inves-tor backed out, triggering a one-third fall in its shares and a dip in its bonds.

Late on Monday, S&P Global Ratings cut Noble’s corporate credit ratings by three notches deeper into junk ter-ritory, to CCC+ from B+ and said the outlook was negative.

“The negative rating outlook re-fl ects the potential that Noble’s cash fl ow and profi tability will remain weak for the next 12 months, with the risk of nonpayment of its debt obligations due to weakened access to funding,” the ratings agency said in a statement.

S&P’s move comes after Noble re-ported a shock quarterly loss in May and warned that it would not be profi t-able for the next two years.

This pummelled its stocks and

bonds. Citing sources, Reuters re-ported on Monday that China’s state-owned Sinochem is no longer pursuing an investment in Noble due to con-cerns over its fi nances and business outlook.

The setbacks come at a time when Noble is negotiating a crucial rollover of a $2bn credit facility secured on its inventories and working capital.

Noble declined to comment on S&P’s report.

Lorraine Tan, director of equity re-search in Asia at Morningstar, said No-ble faced a big refi nancing challenge. “Their survivability depends on their ability to refi nance the borrowing base facility,” she said and placed her cov-erage of Noble under review, pending news.

“There is a question mark again on how much more they would have to pay in the refi nancing,” Tan said.

Noble asked for a trading halt after its shares dropped as much as 32% in heavy volume to S$0.40, the lowest since 2001, in the fi rst 36 minutes of trading yesterday.

Noble is due to issue a statement af-ter the Singapore exchange queried the company.

Its bonds due 2022 fell to a price of 39.33 cents on the dollar from 42.84 cents, and down some 58 points since early May when Noble fi rst warned of the quarterly loss and also fl agged losses for the next two years.

Moody’s and Fitch downgraded No-ble’s credit ratings subsequently.

Noble has struggled ever since Ice-berg Research questioned its accounts in early 2015 and following a brutal downturn in commodity markets.

The company has stood by its ac-counts.

The combined impact has been a collapse of its share price, credit downgrades, management upheavals and a series of writedowns, asset sales and fundraising.

Noble’s market value has shrunk to about $400mn now from $6bn in Feb-ruary 2015. This month, the company also kicked off a strategic review of its businesses under new Chairman Paul Brough.

A man rides past the off ice building of Sinochem in Beijing. China sees a Sinochem-ChemChina merger deal as a blueprint for streamlining and consolidating its sprawling, debt-heavy state-owned enterprises, the people said, leaving fewer, but more powerful, national champions.

ReutersTokyo

Japan must adhere to the gov-ernment’s goal to achieve a balanced budget by the fi scal

year ending in March 2021, Fi-nance Minister Taro Aso said, in a resolve to push for fi scal con-solidation to fi x the country’s tattered fi nances.

Aso made the pledge at a meeting of Prime Minister Shin-zo Abe’s top economic advisory council, which yesterday dis-cussed the government’s annual key economic and fi scal policy guidelines due around the end of June.

The guidelines will provide the basis for compiling the budget for the fi scal year starting April 2018. The council also approved an outline for its annual growth strategy, mostly a continuation of policies Abe introduced last year to narrow the wealth gap, improve working conditions and raise productivity.

“Achieving a primary budget surplus in fi scal 2020 is the least of our responsibilities for future generations. We are not allowed to take down the fl ag,” Aso said in a document submitted to the council.

The primary budget balance – excluding new bond sales and debt servicing – serves as a ba-rometer of government eff orts to balance spending with revenue.

The goal remains elusive.

The government’s calculations show a primary budget surplus won’t be met by end-March 2021 without further eff orts to boost tax revenue and cut spending.

Given Japan’s huge public debt – more than twice the size of its economy – any signs the govern-ment is giving up on fi scal dis-cipline could invite a bust in fi -nances or runaway infl ation that would deal a blow to the general public.

Aso urged the government, when compiling the fi scal 2018 budget, to keep a cap on bulg-ing social security spending in a fast-ageing society, and called for more eff orts to curb such outlay. The government faces a diffi cult balancing act trying to lower spending on medicine and healthcare without alienating older voters. It also wants to help low-income households with a free schooling programme and more vocational training.

Some economists are con-cerned overall fi nances will not improve if increased spending on some welfare programmes off sets cuts from other budget parts.

Fiscal consolidation should contribute to growth and boost revenue as it helps ease concerns about the future and stimulate consumer spending and business investment, Aso said yesterday.

He added that fi scal reform should strengthen Japan’s fragile fi scal structure and win the trust of the international community.

Japan sticks to budget balancing goal,seeks growth strategy continuity

ReutersBeijing

China’s imports of North Ko-rean goods in April fell below $100mn to the lowest in nearly

three years, data showed yesterday, af-ter China stopped buying coal from the isolated country and as calls mount for further economic sanctions.

Neighbouring China is North Ko-rea’s biggest trade partner, and the data indicates that China’s halt of North Korean coal imports on Febru-ary 26 is having an impact and curbing Pyongyang’s ability to raise hard cur-rency through exports.

The world’s second-largest economy bought goods worth $99.3mn in April from North Korea, the lowest monthly tally since at least June 2014, according to Chinese customs data.

Previous data was not available.That compares with $114.6mn in

March and $167.7mn a year earlier.A fi fth of the April total was iron ore

imports, which hit 285,000 tonnes, their highest since August 2014.

That was up 10% from a month ear-lier and 2-1/2 times higher than a year earlier.

US President Donald Trump has been urging China to put more pressure on North Korea to step back from its nu-clear and missile programmes, and lav-ished praise on President Xi Jinping last month for eff orts to do so.

At a regular briefi ng yesterday, Chi-nese Foreign Ministry spokeswoman Hua Chunying said Beijing’s actions were not aimed at proving anything to anyone else.

“This is our international obligation as a responsible member of the inter-national community and permanent

member of the UN Security Council,” she said. Cho Bong-hyun, who heads research on North Korea’s economy at IBK Bank in Seoul, said China’s imports from North Korea were likely to con-tinue to decline due to Pyongyang’s re-peated missile tests and the suspension of coal shipments to China.

“This won’t be disastrous for North Korea, but it will obviously hurt North Korea because it tends to export goods to China worth around $3bn per year,” he said.

The value of imports from North Ko-rea has fallen month-on-month since December, the data showed.

China’s exports to North Korea eased to $288.2mn in April, down 12% from March.

Exports for the fi rst four months of the year were up 32% at $1bn.

Diesel shipments to North Korea in April more than halved from March

to 2,606 tonnes and gasoline sales dropped 6% to 13,496 tonnes.

North Korea gets most of its oil needs from China.

Crude oil exports from China to North Korea have not been disclosed by customs for several years, but sources have put it at about 520,000 tonnes a year.

Cutting off oil to North Korea for an extended period would be a crippling measure that analysts have said they don’t expect China would take.

Pyongyang does not publish eco-nomic data.

North Korea fi red a ballistic missile into waters off its east coast on Sunday, the second test in a week in defi ance of United Nations Security Council reso-lutions.

In a statement posted yesterday, Chi-nese Foreign Minister Wang Yi urged North Korea not to violate UN

resolutions on its nuclear and missile programmes.

Washington has weighed tougher economic sanctions on Pyongyang, in-cluding an oil embargo, a global ban on its airline, intercepting cargo ships and punishing Chinese banks that do busi-ness with Pyongyang.

China is North Korea’s chief ally but has become increasingly frustrated by Pyongyang’s provocative behaviour, but opposes any retaliatory action that would destabilise or threaten the regime of Kim Jong-un.

Data released later yesterday showed China did not take any North Ko-rean coal in April for a second straight month, after Beijing’s ban of such im-ports following repeated missile tests by Pyongyang.

China imported 1.53mn tonnes of coal worth $72.3mn from North Korea in April 2016.

China’s imports from N Korea sink as coal ban bites

Aso: Fiscal reform should strengthen Japan’s fragile fiscal structure and win the trust of the international community.

Deal for US drugmaker poised to boost sales for SawaiBloombergTokyo

For decades, Japan’s Sawai

family was content to keep the

drug business they founded

focused on its home market.

Now, they are steering the

country’s second-biggest maker

of generic drugs through its

first overseas acquisition in its

88-year history.

Sawai Pharmaceutical Co,

which plans to complete its

$1bn purchase of the generic

drug business of Minnesota-

based Upsher-Smith Laborato-

ries Inc next month, forecasts

sales growth at the US business

to reach 13% annually through

2021. The US growth would

provide a new boost for the

Japanese firm, which has over

the last 15 years seen revenue

jump more than sevenfold to

¥132.4bn ($1.1bn), according to

data compiled by Bloomberg.

As Sawai expands in the US,

it faces rising competition from

Indian and Chinese makers of

low-cost copycat medicines

and political pressure on the

drug industry to curb prices.

The Osaka-based drugmaker is

counting on Japan’s reputation

for high-quality therapies cou-

pled with Upsher-Smith’s local

expertise to navigate the world’s

largest pharmaceutical market.

Sawai shares traded 2.1%

higher to ¥6,420 at the 11:30am

trading break in Tokyo yester-

day, the biggest gain in a month.

The broader Topix index was lit-

tle changed. “Upsher-Smith has

a very good eye on selecting

products and pricing them to a

level which can bring suff icient

profit to the company,” presi-

dent Mitsuo Sawai said in an

interview in Tokyo last week.

Noble asked for a trading halt after its shares dropped as much as 32% in heavy volume to S$0.40, the lowest since 2001, in the first 36 minutes of trading yesterday.

BUSINESS13Gulf Times


ReutersMumbai

India’s gold imports could plunge in 2017 during the traditional period of peak demand in the second half

of the year, after jewellers have aggres-sively restocked inventory ahead of a national sales tax that takes eff ect on July 1.

Lower imports from the world’s second-biggest consumer during its high-demand season could drag on glo-bal gold prices that have gained nearly 10% this year as political turmoil in the United States has raised expectations of a slower pace of interest rate hikes this year.

India’s gold imports typically strengthen in the second half of a year as the precious metal is considered an auspicious gift at weddings and festi-vals such as Diwali and Dussehra.

But the timing of strong purchases looks backwards this year, as the imple-mentation of a goods and services tax (GST) that will replace a slew of federal and state levies has buyers cramming their major activity into the fi rst half of 2017.

“This (strong buying) trend will not continue in the coming months,” said James Jose, secretary of the Association of Gold Refi neries and Mints, referring to the tripling in the value of gold im-ports in April.

“Ahead of GST, some people are stocking up fearing higher tax, but de-mand has been falling (more recently),” he said.

India’s gold imports could hit 450 tonnes in the fi rst half of the year, more than double from the same period in 2016, according to Sudheesh Nambiath, a senior analyst at GFMS, a division of Thomson Reuters.

Imports could then fall to 250 tonnes in the second half, about 40% lower than a fi ve-year average for the period of 403 tonnes, Nambiath said.

Gold imports in the second half of 2016 were 313.8 tonnes, up 60% com-pared with the fi rst half of that year.

“Aggressive Indian buying is unlikely

to be there in the second half like every year.

Global prices need to fi nd support from other sources like exchanged traded funds or have to correct,” said a Mumbai-based dealer with a private bank.

Another reason for the first-half buying surge is that cash many jew-ellers deposited in banks because of demonetisation last year has been routed back through official channels,

allowing for the restocking of gold, Nambiath added.

In November, Prime Minister Naren-dra Modi scrapped 500- and 1,000-ru-pee banknotes – 86% of the value of cash in circulation – as part of a crack-down on corruption, tax evasion and militant fi nancing.

Still, gold could start trading at dis-counts in India in the next few weeks as jewellers “are carrying far higher in-ventory than required,” said a Mumbai

bullion dealer with a global bank. “They have to bring imports down in coming months,” he said.

Gold imports in May could drop to around 50 tonnes, Jose of the refi n-ers’ association said, from 85 tonnes in April.

Lower gold imports could help Asia’s third-biggest economy in containing a swelling trade defi cit that hit its highest level in 29 months in April.

Imports of unrefi ned gold will also

fall sharply in the second half as new rules allow only refi neries accredited by the Bureau of Indian Standards (BIS) to import gold from June 1, said Jose of re-fi ners’ association.

“It will take at least six months for re-fi ners to secure BIS accreditation. Many small refi ners may fail to get accredita-tion,” he said.

India imported 142 tonnes of unre-fi ned gold in 2016, according to data compiled by the World Gold Council.

India gold imports to fall after pre-GST purchases

A salesperson at a jewellery showroom in Mumbai. India’s gold imports could hit 450 tonnes in the first half of the year, more than double from the same period in 2016, according to a senior analyst at GFMS, a division of Thomson Reuters.

Alstom seeks more Chinatie-ups in eff ort to bolster Asia orders

BloombergSingapore

Alstom SA, the French maker of locomotives, light transit trains and rail

signalling systems, is looking for more joint ventures in China as it seeks to boost new orders from Asia to more than €1bn ($1.1bn) a year.

The company, which has been present in China for almost six decades and already established fi ve local partnerships, may next zero in on services and main-tenance for a venture, Jean-Francois Beaudoin, senior vice president for Asia-Pacifi c, said in an interview in Singapore yes-terday. He didn’t elaborate.

After selling most of its en-ergy assets to General Electric Co in 2015, Alstom has become a transport-focused company. It is attempting to expand its footprint in China, even as the country’s own state-owned be-hemoth CRRC Corp has been competing for rail contracts around the world, in direct com-petition with the likes of Alstom, Siemens AG and Bombardier Inc. CRRC is also Alstom’s lo-cal partner in two of the existing ventures.

The Saint-Ouen, France-based company has won con-tracts for tramways in Shanghai and Chengdu, and expects the trend of more cities courting this “secondary transport system” to continue, Beaudoin said in the interview.

“It was totally unknown in China,”’ he said. “It is a very good solution.”

Growth in the Asia-Pacifi c region will be driven mainly by China, India, Australia, Hong Kong and Singapore, followed by Taiwan, Thailand and Vietnam, he said.

In India, Prime Minister Narendra Modi’s government has announced a record $61bn spending programme to upgrade infrastructure, including rail-ways. For Alstom, that’s an op-portunity, Beaudoin said.

“We are talking about thou-sands of kilometres of lines to be electrifi ed,” he said. “That is something that will come up in the near future, which is some-thing we are getting positioned for.”

India will see at least fi ve new metro lines opening every year in the next few years from the current pace of one or two new lines, Beaudoin said. The rate is about 20 to 25 in China, he said.

Alstom has built up about €5bn of outstanding orders in the region, about a seventh of its total. The target is to boost sales in the region to €1bn by 2020, from about €700mn now, he said.

Sony chief says major turnaround completeAFPTokyo

Sony chief executive Kazuo Hirai yesterday hailed a years-long company restructuring

as a success, but said struggles in its movie business remain a “pressing issue”.

The 56-year-old company veter-an was tapped fi ve years ago to lead a major overhaul at the once-iconic company, which was suff ering from huge losses largely tied to a hard-hit consumer electronics business.

After years of layoff s and asset sales, Sony is on track to report a ¥500bn operating profi t this fi scal year – its highest in two decades.

“We’ve done signifi cant work on downsizing or restructuring the

business,” Hirai told reporters at a corporate strategy briefi ng.

“The major downsizing is com-plete.

“The biggest factor is that our consumer electronics business, which struggled for many years, has turned into a division with stable profi tability,” he added.

Sony’s bleeding television busi-ness – which Hirai had refused to sell despite calls to dump the unit – is now back to profi tability as the fi rm focuses on producing fewer models with an eye on the higher-end market.

South Korean and Taiwanese ri-vals have battered higher-cost Japa-nese TV makers, including Sony and Sharp.

“(We) changed our strategy to go after profi tability rather than focus

on the size of the business,” Hirai said, referring to the TV unit.

“Now the challenge is to stay in the black.”

In recent years, Sony has sold off a string of assets, including the Vaio laptop business and a unit that made rechargeable lithium ion batteries.

Smartphone components and the top-selling PlayStation 4 games console have boosted its bottom line.

But the company took a nearly $1bn write-down at its movie unit as Sony Pictures’ woes included box-offi ce disappointments such as a reboot of the Eighties classic Ghostbusters with an all-female cast and Inferno, a sequel to the Da Vinci Code.

The movie business is “a pressing issue for Sony”, Hirai told reporters.Hirai: The movie business is ‘a pressing issue’ for Sony.

SoftBank’s $100bn tech fund rankles VCs as valuations soarBloombergTokyo

Earlier this month SoftBank led a $502mn

investment in a London-based virtual

reality startup called Improbable Worlds.

Less than two years ago, the startup was

worth about $100mn. Then SoftBank came

along, and suddenly it was worth 10 times

that. Overnight, Improbable Worlds had

become a unicorn. In the months since

SoftBank Group Corp unveiled plans for

a $100bn technology fund, the Japanese

company has been making its presence

deeply felt across the industry. The Vision

Fund closed a few days ago with $93bn in

initial commitments, and already venture

firms from London to Silicon Valley are fret-

ting about a behemoth with the resources,

clout and name recognition to snatch away

the most promising deals. Just last week,

SoftBank swooped in and pumped $1.4bn

into Paytm, India’s largest digital-payments

startup.

The deal boosted Paytm’s valuation by

about 40% to $7bn. That’s not outlandish

given Paytm’s dominant market position,

but the valuations of other SoftBank deals

have prompted head-scratching and ig-

nited alarm that a funding atmosphere that

only recently cooled off will heat up again.

To put the size of the fund in perspective,

there were more than $100bn worth of

global VC deals done in 2016, according to

research firm Preqin.

Moreover, because Masayoshi Son’s

company typically makes investments of

at least $250mn — big by venture stand-

ards — some VCs say the influx of money

will give fledgling companies more room

to run, whether they deserve it or not. Big

bets are Son’s style, and he’s been invest-

ing like this for more than 20 years. He

was an early backer of Yahoo! Inc, and he

bet on China’s Alibaba Group Holding Ltd,

which turned into one of the best venture

investments of all time. He parlayed an

initial $20mn outlay into a stake that is

now valued at more than $90bn, or 4,500

times his original investment. SoftBank

also backed ride-hailing giant Didi Chuxing

earlier this year in a record $5.5bn venture

round, a bet on the four-year-old startup’s

plan to expand beyond China. The round

lifted Didi’s valuation to about $50bn.

Venture industry veterans liken

SoftBank’s potential impact on valuations

to what happened when Wall Street fell

hard for tech startups. Starting about five

years ago, hedge funds and private equity

shops got into the act, backing the likes of

Snapchat, Pinterest and Dropbox.

Then last year, after watching firms

like Etsy stumble once they went public,

startups began putting initial public off er-

ings on hold.

Others, flush with cash, chose to stay pri-

vate longer while building their businesses.

Hedgies, used to quick returns, pulled

back, and valuations have returned to

more rational levels. Now, the cycle may

be set to start all over again, this time

fuelled by the Vision Fund, whose investors

include Saudi Arabia and Abu Dhabi.

“The fear is all rooted in the 2014, 2015

investment environment, where there

were tourist investors and valuations were

getting out of control, and when valuations

get too high it limits exit opportunities,”

says Kyle Stanford, an analyst at PitchBook

Data Inc.

“That fear is still there so when you see a

fund of $100bn coming in already making

big headliner deals, I think that fear is go-

ing to come back.”

Earlier this year, according to a person

familiar with the matter, SoftBank invested

$300mn in WeWork Cos, which rents

out temporary work space. After the

SoftBank infusion, WeWork’s valuation also

increased by about $2bn to about $18bn,

according to an estimate by private stock

market provider Equidate. SoftBank will

eventually take a much larger stake, the

person says, probably by tapping the new

fund. That could push up the valuation

even more at a company whose breakneck

growth projections may not play out as

expected.

Then there’s the concern that SoftBank

will ladle out more money than startups

need or can absorb. One worry is that big

infusions will persuade founders to stay

private longer than they otherwise would.

Consider SoFi. Back in May 2015, the online

lender said it would probably go public

within 12 months. Later that year, SoFi

raised $1bn in a deal led by SoftBank.

Today there’s no sign SoFi has any plans

to pull the trigger on an IPO, despite an

improving market for initial public off erings.

“As the exit gets prolonged, the likelihood

that early investors get diluted or boxed out

goes up,” says Semil Shah, a general partner

at the early stage investment firm Haystack.

“And so a lot of investors, even some

very good institutional investors, may

not be able to protect their positions.” A

spokesman for SoftBank’s Vision Fund

declined to comment on the fund’s

strategy. Already founders approached by

SoftBank are caught between the desire

to take the money and concern about

handing over too much control of their

company, according to an investor. One

startup targeted by SoftBank has tried to

negotiate for less money, this person says.

SoftBank won’t budge; it’s a big check

or nothing. SoFi originally asked for less

money, too, according to another investor.

Pushing startups to take more cash than

they ask for has been Son’s strategy since

the beginning.

SoftBank invested more money in Ya-

hoo, Alibaba and Didi than what the entre-

preneurs had initially wanted. Some deem

the hand-wringing about SoftBank’s impact

overly pessimistic. In some cases, the fund-

ing from sources like SoftBank will give

startups the lifeline they need to create a

grander vision from an otherwise promis-

ing idea. In others, it will give founders,

employees and venture backers a chance

to sell holdings, creating exit opportunities

for stakeholders who may not otherwise

have a chance to unlock value. One VC

says much depends on how quickly the

Vision Fund is invested. If the company and

its partners invest the $100bn over five

years, it will essentially replace what the

hedge funds and private equity firms were

spending before. This person also says Son

could choose to buy a big public company,

leaving less money to invest in private

startups. The VC acknowledges that taking

SoftBank’s money would dilute founders’

stakes and ratchet up pressure on them to

pull off a big exit, but he says they would

also stand to benefit from Son’s global con-

nections and star power-advantages few

venture firms can match.

A view of the Improbable World head off ice in London. Earlier this month, SoftBank led a $502mn investment in the London-based virtual reality startup.

BUSINESS


Fed minutes likely to leave June hike firmly in play for FOMCBloombergWashington

Details of the closed-door discussion that

Federal Reserve off icials held during their

most recent policy gathering are expected

to keep the odds of a June interest-rate

increase high.

The record of the May 2-3 meeting, at

which off icials voted to leave the target

range for the federal funds rate un-

changed at 0.75% to 1%, is scheduled to be

released today at 2 p.m. in Washington.

“Through May 2, consumer and busi-

ness confidence numbers were still very,

very high,” said Mickey Levy, chief econo-

mist for the US and Asia at Berenberg

Capital Markets in New York.

“The minutes will confirm, or people will

read from it, that the Fed is going to go in

June.”

Levy and other economists don’t expect

the minutes to reveal major decisions

about when and how off icials intend

to wind down the Fed’s $4.5tn balance

sheet, though some said the discussion

surrounding that topic could provide

important hints.

Fed policy makers have put themselves

on a path to raise rates three times this

year, including a March hike already in the

books. They’ve also signalled a desire to

begin reducing the balance sheet before

year’s end, another step that would raise

borrowing costs for businesses and house-

holds. Investors, however, have begun to

doubt the Fed can hold to such an aggres-

sive plan and will be looking for signs the

committee is wavering.

Unemployment has continued falling in

recent months, hitting 4.4% in April, com-

pared to the 4.7% that off icials estimate to

be its lowest sustainable level.

That has some on the committee, like

Boston Fed chief Eric Rosengren and

Cleveland’s Loretta Mester, warning the

Fed risks eventually falling behind in fight-

ing inflation if it fails to stay on its current

pace of quarterly rate hikes.

Yet current inflation is not exactly sup-

porting their argument. Despite continued

strong jobs growth, the core measure of

the Fed’s favourite price gauge, which

excludes food and energy, slowed to 1.6%

for the 12 months through March, from

1.8% in February.

Chicago Fed President Charles Evans

said May 12 he still views greater risk in

inflation running too low, rather than too

high. “They’ve got a dilemma building with

unemployment very low, unusually low,

but at the same time core inflation is not

showing signs of picking up,” said Paul

Ashworth, chief US economist at Capital

Economics in Toronto.

“I expect there will be some divide,

but my guess is the minutes will suggest

a June rate hike is still a distinct pos-

sibility.”

That may prove true partly because

some of the disappointing inflation data

didn’t emerge until after the May 2-3 meet-

ing. The gathering also occurred before

a burst of political turmoil in Washington

raised questions about the Trump admin-

istration’s ability to deliver on promised

tax cuts and regulatory rollback.

“The markets may be disposed to say

the minutes are old news,” said Michael

Hanson, head of global macro strategy at

TD Securities in New York.

The probability of a rate hike at the

Fed’s June 13-14 meeting implied by prices

for federal fund futures contracts were

around 78% after peaking at 85% on May

9.

Regarding the Fed’s out-sized portfolio

of bonds, Hanson predicted the minutes

will cement the committee’s preference for

phasing out re-investments, as opposed to

halting them from one month to the next.

The Fed currently maintains the level of

bond holdings by reinvesting the principle

that is returned when bonds mature.

The minutes may also reveal that a

majority of the committee favours equal

treatment of Treasury and mortgage-

backed securities in the way they reduce

assets, Hanson said.

Hanson and others, however, didn’t

expect that any of the larger decisions sur-

rounding the balance sheet were resolved

at the May meeting. These include exactly

when the draw-down starts, the pace at

which the balance sheet will shrink from

month to month, and how big off icials

believe the balance sheet should be when

they’re done shrinking.

“I don’t think they want to reveal their

hand,” said Berenberg’s Levy. “They don’t

need to put a frame or numbers on it right

now.”

Capital Economics’s Ashworth agreed,

saying firm decisions on the balance sheet

were “pretty unlikely.”

“That doesn’t mean there won’t be a

discussion, and that could give us a steer

in terms of which way the majority of the

committee is leaning,” he said.

Greek debt deal delayed as 15-year extension fails to lure IMF offi cialsBloombergBrussels

Greece’s creditors failed to resolve their diff er-ences over the measures

required to bring the country’s debt back to a sustainable path, as a compromise off ered by the eurozone wasn’t deemed suffi -cient by the International Mon-etary Fund.

Concessions put on the ta-ble at a meeting of euro-area fi nance ministers on Monday, including a potential extension of maturities on some bailout loans by up to 15 years, were not enough for the IMF to unequiv-ocally say that Greece’s debt is sustainable, offi cials familiar with the discussions said, ask-ing not to be named as the talks were private. In turn, the IMF’s reluctance was a deal-breaker for the Greek delegation, due to the implications for the coun-try’s inclusion in the European Central Bank’s quantitative eas-ing and the signal it would send to markets.

“The feeling was at the end of the meeting that more work was needed to get the clarity that the Greek people and markets would need to understand,” Greek Fi-nance Minister Euclid Tsaka-lotos said on his way out of the meeting.

“The proposed deal was transferring the solution to the future and didn’t refl ect Greek people’s eff orts,” Greek gov-ernment spokesman Dimitris Tzanakopoulos told reporters in Athens yesterday.

Convincing the IMF to join the programme is a condition for the disbursement of more aid by the euro area, as most governments in the bloc, including Germany, see the Fund’s participation as

a guarantee for the credibility of the bailout. While having the IMF on board has repeatedly been mentioned by euro-area governments as a condition for additional funds, offi cials were less explicit on the point after Monday’s meeting, signalling that Greece may receive the next tranche of euro-area funds without having the Fund fully on board.

More debt relief is also nec-essary for the ECB to consider Greek bonds in its asset pur-chases programme, which would ease the country’s access to bond markets.

While the International Mon-etary Fund accepts that ad-

ditional debt relief for Greece doesn’t require fi nal approval and “does not need to be cali-brated to its last detail,” it still wants more clarity about what will happen after the current bailout expires in 2018, said Poul Thomsen, head of the IMF’s Eu-ropean Department. “We still think that there is a need for more realism in the assumptions and we think there is a need for a bit more specifi city.”

The IMF didn’t see the draft proposals presented on Monday as explicit enough for the Fund to immediately resume co-fi nanc-ing of the lifeline keeping Greece afl oat since 2010, the people fa-miliar with the discussions said.

An IMF spokesman declined to comment on the content of the compromises off ered.

Negotiations will continue in the coming weeks with the aim of reaching a conclusion on June 15 at the next meeting of euro area fi nance ministers, ac-cording to Jeroen Dijsselbloem, the Dutch fi nance minister who presides over meetings with his euro-area counterparts.

Even though euro-area gov-ernments committed last year to a laundry list of potential meas-ures to ease repayment terms on Greek bailout loans after 2018, the degree to which these meas-ures will be implemented is still a subject of contention.

A key point of contention stems from the creditors diff er-ent views on Greece’s long term economic outlook and the pri-mary surplus, which excludes interest payments, the country will be able to sustain. The IMF has more conservative estimates about both these outcomes than Greece’s euro-area creditors, in turn suggesting the country needs greater debt relief.

Dijsselbloem said the parties agreed on a target for Greece’s primary surplus, which excludes interest payments, of 3.5% of gross domestic product until 2022. For the years after that, the country would comply with the EU’s fi scal rules, although he didn’t determine what level of surplus that would entail and didn’t specify whether the IMF shares the euro area’s growth as-sumptions for Greece.

Greece doesn’t have a large maturity deadline until July, when more than €7bn in obli-gations come due, but delaying the resolution of the program review adds to months of uncer-tainty that have taken their toll on the Greek economy — which has slipped back into recession — and kept the country from re-turning to the bond market.

“The last details still have to be worked through now,” said Luxembourg Finance Minister Pierre Gramegna. “The IMF is asking for a number of assur-ances that must be taken into account. We all hope that we will get an answer in three weeks at the meeting in Luxembourg on this aspect of the sustainability of the debt.”

Greek bonds fell on the news, with yields on 2019 notes ris-ing 18 basis points to 5.76% at 3pm in Athens, while the Athens Stock Exchange general index was little changed.

Poul Thomsen, director of the European department at the IMF, looks on ahead of a Eurogroup meeting of euro-area finance ministers in Brussels on Monday. Concessions put on the table at the meeting, including a potential extension of maturities on some bailout loans by up to 15 years, were not enough for the IMF to unequivocally say that Greece’s debt is sustainable, off icials familiar with the discussions said.

Nokia ends court fi ght with Apple in patent fee dealBloombergHelsinki

Nokia, once the world’s undisputed master of mobile-phones, scored

an underdog victory by settling all patent litigation with Apple in return for cash and a foot-hold in the US company’s retail space.

Nokia rose as much as 7.9%, the most in more than a year, as the Finnish company hailed the accord as a “meaningful agree-ment” that resets the relation-ship from one of adversaries to business partners. Nokia will receive up-front payment from the iPhone maker and addi-tional revenue during a multi-year agreement, though details such as the length of the pact and size of payments, weren’t disclosed in the companies’ statement yesterday.

The deal is a boon for chief executive offi cer Rajeev Suri, who is trying to reinvigorate Nokia, which exited mobile-phone making a few years ago as Apple redefi ned the indus-try with the iPhone. The high-margin Nokia division in charge of patents, a key component in Suri’s plan to boost profi t, al-ready accounts for more than a quarter of earnings, a share set to increase through the settle-ment. Nokia is also betting on health products such as fi tness bands and connected scales, after acquiring a consumer-products business last year.

“It’s positive — especially how quickly it came,” said Han-nu Rauhala, an analyst at OP in Helsinki. “The gross margin in the patent business is almost 100, so revenues from this go almost directly to profi ts.”

The value of the deal is “clearly more” than the €150mn ($169mn) a year that Nokia collected under a previ-ous pact, Rauhala said. Nokia has augmented its patent port-folio through acquisitions since the earlier agreement, from

2011, giving it more negotiat-ing power. The resolution of the legal battle also relieves Nokia of litigation costs that the com-pany had expected to amount to about €100mn a year.

Since selling a handset busi-ness that was eclipsed in just a few years by phones from Apple and Samsung Electronics Co, Nokia has focused on network infrastructure. It’s now tapping its patent portfolio as a source of income, rather than as a cross-licensing tool to protect its own products. While No-kia hasn’t provided a revenue forecast for its patents, it said in January that the run-rate for annual licensing revenue was €800mn. That could in-crease to about 1.2bn after the deal with Apple, analysts from Liberum said in a note to cli-ents.

Apple and Nokia struck a business collaboration deal, under which Nokia will provide network products and services to the US company. Apple will also resume carrying Nokia’s digital health products in stores and online, and the companies will explore cooperation in dig-ital health. For Nokia, the long-term benefi ts to sales and profi t from access to the US compa-ny’s stores and the network products partnership could be greater than the sum of higher royalty payments from Apple, Liberum said.

Other companies’ fi ghts with Apple haven’t always ended in swift or favourable resolutions, with chipmaker Qualcomm battling the Cupertino, Cali-fornia-based tech giant over patent royalties for years. Im-agination Technologies Group Plc shares lost as much as 72% on a single day in April after it revealed that Apple would stop using its intellectual property, and the UK chip designer said this month it “has been unable to make satisfactory progress with Apple regarding alter-native commercial arrange-ments.”

Eurozone business activity remain buoyant in MayReutersLondon

Businesses across the eurozone main-tained April’s blistering growth rate this month as fi rms struggled to meet

growing demand, suggesting the bloc’s eco-nomic momentum is sustainable at least for now, a survey showed. Data pointing to a broad-based expansion alongside rising price pressures and a record level for Ifo’s German business morale index will be welcomed by policymakers at the European Central Bank.

IHS Markit’s eurozone Flash Composite Purchasing Managers’ Index for May, seen as a good guide to growth, matched the previous month’s 56.8, its highest since April 2011.

A reading above 50 indicates growth.That confounded the median expectation

in a Reuters poll for a dip to 56.6. IHS Markit said the PMI pointed to second quarter GDP growth of 0.7%, much faster than the 0.4% predicted in a Reuters poll last week.

Offi cial fl ash data said the bloc’s economy grew 0.5% in the fi rst quarter.

“The strength of both the eurozone com-posite PMI and the German Ifo in May provide

further evidence that the economic recovery gained pace in Q2,” said Jessica Hinds at Capi-tal Economics.

Activity in the French private sector surged to a six-year high in May as growth in the dominant service sector accelerated and the election of President Emmanuel Macron lift-ed business optimism, a sister survey showed.

Germany’s private sector grew at the fastest pace in more than six years, and Ifo said busi-ness morale brightened more than expected, suggesting Europe’s biggest economy will carry its robust upswing into the second quar-ter. Its economy picked up steam in the fi rst quarter helped by strong exports, booming construction and higher household and state spending, offi cial data showed earlier yester-day.

Growth was 0.6% quarter on quarter, up from 0.4% in the fi nal three months of last year. “Today’s strong German data add to the evidence that, not only the German economy, but the entire eurozone economy could be-come the positive growth surprise of 2017,” said Carsten Brzeski at ING.

However, the relative strength of the Ger-man and French composite PMIs compared with the static eurozone reading suggests

growth has slowed in other countries across the region. “As much as the pessimism at the start of the year was exaggerated, the current euphoria is as well.

Be aware of the sugar rush,” Brzeski said.The euro set a new six-month month high

yesterday and the region’s shares made gains as the latest economic data made for some encouraging reading, especially in Germany.

Buoyant demand meant fi rms across the bloc built up backlogs of work at the second fastest rate in over six years.

The sub-index rose to 53.3 from 53.0.Factories across the currency union had a

much better May than predicted.A Reuters poll said the manufacturing PMI

would fall to 56.5 but it instead climbed to 57.0 from 56.7, its highest since April 2011.

An index measuring output, which feeds into the composite PMI, rose to 58.4 from 57.9, also the highest since April 2011.

Demonstrating their confi dence about the months ahead, factories increased headcount at the fastest rate in the 20-year history of the survey.

The employment index was 56.2, up from April’s 55.5 and overall employment gains were the second best in a decade.

GE said to face probe for misleading EU over $1.7bn deal

BloombergParis

General Electric Co is the latest US company to be investigated by European Union for possibly turning in misleading information during a merger review, according to two people familiar with the GE case.The European Commission is reviewing whether GE misled EU off icials examining a deal to buy LM Wind Power, a maker of wind-turbine blades, for €1.5bn ($1.7bn), said the people, who asked not to be named as the case is confidential.The company may be in trouble for telling regulators it didn’t have any plans to develop a new giant off shore wind turbine when the company did have such a project on hold, said one of the people. The EU began to suspect it had been misled shortly after giving its stamp of approval to the deal in March and GE is now scrambling to explain that there was no intention to misinform regulators, the person said.EU Competition Commissioner Margrethe Vestager signalled a zero tolerance approach to companies that give inaccurate information when she fined Facebook €110mn on May 18 for combining WhatsApp data with its other services after having told the merger off icials otherwise during the EU’s 2014 review. The social network said it acted in good faith and won a lower fine after cooperating with regulators.“It’s no excuse that the closed circle of people working on a merger didn’t know what was

going on elsewhere at the company,” Vestager told Bloomberg on May 19 in a general response to questions about the EU’s crackdown on merger cases. “That simply doesn’t hold up,” she said, adding that companies “need to be thorough.”GE and the European Commission in Brussels both declined to comment on the GE probe.GE’s push into the wind industry comes after the Boston-based firm took over Alstom Renewable Power Sector as part of its $10bn acquisition of Alstom’s power operations two years ago. GE renamed the unit, which produces 6MW off shore wind turbines, GE Renewable Energy.On March 20, the EU approved GE’s acquisition of Denmark-based LM Wind Power unconditionally after off icials found no competition concerns.But while GE told the commission during the review that it wasn’t planning to expand into next-generation off shore wind turbines with a capacity of 12MW, EU regulators subsequently said they found evidence to the contrary, the person said. The punishment for breaking the EU’s rules is as high as 1% of their annual sales.The probe into possible misleading information may lead to a statement of objections around the EU’s summer break in August and subsequent fines, the person said.In addition to any fine, the case could hurt GE’s relationship with EU regulators as they review its other merger plans and investigate its maintenance contracts for aircraft engines. Last month, GE filed for EU approval its plan to combine its oil and gas business with Baker Hughes.

15ISLAMIC FINANCEGULF TIMESWednesday, May 24, 2017

Islamic fi nance is making a case for ‘impact investment’By Arno MaierbruggerGulf Times Correspondent Bangkok

Islamic fi nance is increasingly being discovered as a vehicle to support sustainable development goals by

investments in environmental projects, as well as to deal with challenges of poverty, social inequality and fi nancial exclusion, a method called “impact in-vesting.”

To that end, the Islamic Develop-ment Bank (IDB) and the Istanbul In-ternational Center for Private Sector in Development of the UN Development Programme launched the “Global Is-lamic Finance and Impact Investing Platform,” an institution which seeks to build collaborations between a multi-tude of stakeholders, including Islamic banks and Islamic fi nance institutions, that engage in developmental invest-ments in accordance with the United Nation’s 2030 Agenda for Sustainable Development.

Both institutions last week allowed a glimpse into the role Islamic fi nance can play in this process through the launch of the new report “I for Impact: Blend-ing Islamic Finance and Impact Invest-ing for the Global Goals.” In short, the report sheds light on the potentials of Islamic fi nance in impact investment for the achievement of sustainable de-velopment goals.

The basic idea is that ethical, en-vironmental and socially responsible values within fi nance and business are considerations that are deeply rooted in Islamic theology and jurisprudence. Thus, it is no wonder that develop-mental institutions like those men-tioned above are looking for ways to tap into Islamic fi nance as the industry itself seeks new areas of growth, right-fully arguing that socially responsi-ble investments, as well as ethical and “green” fi nancial products can benefi t from the Islamic beliefs and teachings pertaining to the environment and so-cial development.

“Islamic fi nance and impact invest-ing are both based on ethical and social criteria and emphasise inclusiveness,” said Professor Mohamed Azmi Omar, director general of the IDB’s Islamic Research and Training Institute, at the presentation of the report, adding that “one of the key aims of the report is identifying areas of convergence of the two sectors and to develop collabora-tive strategies for achieving the global development agenda.”

The idea of blending Islamic fi nance with impact investing is that both are value-based investment struc-tures through which investors associ-ate themselves with a moral purpose,

namely the principle “doing good and avoiding harm to others,” which consti-tutes the main underlying ethical prin-ciple of Islamic fi nance.

Furthermore, the reasoning is that such ethical and sustainable invest-ment products can tap a wider range of demand if they are made Shariah-com-pliant to appeal to Muslims. At the same time, non-Muslims – who might nor-mally avoid Islamic investments prod-ucts owing to their perceived higher complexity and pricing – may embrace them if they are designed for an ethical purpose.

In fact, the concept is not new, but is hasn’t unlocked its full potential yet. As in many other aspects of Is-lamic finance, Malaysia was the first

to announce guidelines for the issu-ance of socially responsible sukuk as early as in 2014, which were aimed at helping companies raise money for projects ranging from renewable

energy to affordable housing. Mean-while, Islamic finance companies from the UK, Canada, Hong Kong and some Gulf Cooperation Council countries, namely the UAE and Saudi Arabia, jumped upon the bandwagon

of impact investing through Islamic finance.

In particular, the latter two countries embraced the idea of green sukuk after they set ambitious clean energy and en-ergy effi ciency targets for their econo-mies.

Apart from environmental-con-scious investments, Islamic finance could also play an important role in alleviating global poverty and reduc-ing inequality given that fact that IDB member countries account for 40% of the world’s poor. Useful instru-ments in this case are Islamic micro-finance solutions, as well as a better utilisation of waqf, charitable endow-ments under Islamic law, and zakat, donations to the poorer part of the

population by those with sufficient means. Islamic finance can also be used to fund new, innovative solu-tions to help build inclusive finan-cial systems which actively integrate parts of a population which are either directly or indirectly kept out of the formal financial sectors and whose numbers are particularly high in less wealthy Muslim nations in the Mid-dle East, North Africa and Central and East Asia. Such innovations could be mobile banking and payment systems for Islamic finance, entrepreneur and startup financing, as well as the provision of basic tools for business planning and accounting for small businesses to help create employment and a better integration in society.

EDUCATION/FAQ on Murabaha

Is it permissible to make the profit rate in a Murabaha contract contingent upon the period of repayment?It is permissible to make profit contingent upon the repayment period. However, the amount of profit should be decided at the time of contracting. In other words, this entails that, at the time of contracting, the client be given an option of diff erent repayment periods, each with diff erent profit rates from which the client may select one.

Is it permissible to benchmark Murabaha instalments on the market price of the goods prevailing at the due date of each instalment?It is not permissible to benchmark Murabaha instalments on the current market price of goods. A

Murabaha is a sale of goods in which the cost and profit is unambiguously decided at the time of contract.A client approaches a bank with a request to finance the construction of a building over land owned by the client. The bank gets a specified percentage of mark-up as profit. Is such a transaction permissible under Murabaha contract?Murabaha is a contract of sale in which the owner of an asset sells the asset to the buyer at a known mark-up. The transaction described does not fall under the category of Murabaha since there is no asset to sell. However, such a transaction may be financed under an Istisna mode of financing.

In the event that the value of the damage to

some Murabaha goods is insignificant, is it necessary for the bank to deduct the amount of damage from the price or is it suff icient to pay the purchase pledger the amount of recompense received from the Takaful company?If credit is extended for a Murabaha deal, then it is necessary to deduct the amount of damage however insignificant, from the price in addition to paying the purchase pledger the amount of recompense received from the insurance company.

A client approaches a bank to buy goods under a Murabaha. The buyer agrees to buy the goods at a price less than the market value. At the same time, the buyer contacts the owner of goods and promises

to pay the diff erence between the sale price and market price. Is such a transaction permissible?The transaction described in the question is not permissible, as it amounts to an interest-based financing by the bank. If the bank becomes aware of such an agreement between the client and owner of goods, it should refuse to provide financing.

Is it permissible to make the profit on Murabaha contracts contingent upon the time the customer takes to make payment?It is impermissible to link profit to time. Profit is part of the Murabaha price and cannot be separated over time. It is permissible to take into consideration the time a particular client takes to make

payment for future dealings with that client.

Is it permissible for the seller to give a discount to the buyer on advance payments of Murabaha instalments?A discount on advance payments is permissible. However, this is left at the sole discretion of the creditor (i.e. seller). It is not permissible to bind the seller into giving a discount. Therefore, such a discount may not be stipulated or implied either orally or in writing. At the same time, there is no harm in the seller forming a policy whereby one gives a discount upon early payment and makes such a policy known to all customers.

Is it permissible to amend Murabaha contracts before

the conclusion of the sale?It is permissible in the Shariah to amend the Murabaha contract prior to its execution with the consent of both parties. However, unilateral amendment is not permissible for either party.

What is the responsibility of the bank as regards purchase of goods under Murabaha?The bank is bound to acquire the goods exactly as requested by the buyer. Due care and precaution should be exercised in buying the goods. The bank should obtain multiple quotations in order to obtain the best possible off er.

A bank orders goods from abroad in pursuance of a Murabaha transaction. The exporter sends the goods in the name of the bank’s client

(promising buyer). Is this valid?A Murabaha transaction is one in which the seller buys goods requested by the buyer and sells them to the buyer at a cost plus an agreed upon mark-up. It is necessary that the goods be dispatched or shipped in the name of the bank, as this is an integral of the contract and the only documentary evidence that proves that the seller (bank) actually bought the goods itself.

Is it permissible to sell air tickets under a Murabaha contract?It is permissible to sell air tickets under a Murabaha contract. It is best, however, to seek a Shariah opinion on the specific contract before its execution.

Source: Ethica Institute of Islamic Finance via Bloomberg

IDB to revamp, decentralise operationsReutersSarajevo

The Islamic Development Bank (IDB), the largest development organisation in the Muslim world, plans to revamp its operations, including a shift away from small-scale capital interventions to more sustainable, grassroot-level support.The non-profit group has extended $86.1bn in financing in the last ten years for energy, transportation, water and sanitation projects.Bangladesh, Pakistan and Egypt are among the top beneficiaries.But its new president, Bandar

Hajjar, said the bank needed to decentralise and change the way it operates.“IDB needs to shift away from providing individual, small-scale intervention to value chain solutions,” Hajjar told Reuters on the sidelines of a business conference in the Bosnian capital Sarajevo.The IDB has traditionally provided capital and technical assistance to individual firms and government organisations, but Hajjar said the bank would engage a wider array of entities and plans to form a network of non-governmental organisations, foundations and universities.

“The shift will help the bank deal with development challenges in a more sustainable and eff icient manner.We will create a network and the bank will play a role of a catalyser.”Hajjar, Saudi Arabia’s former Haj minister, was elected president of the IDB last year, replacing long-serving Ahmad Mohamed Ali who steered the bank since its establishment in 1975.“The challenge is huge, immense, complicated and IDB cannot solve these problems by itself and all this requires decentralisation,” Hajjar said.Hajjar said sukuk issuance for 2017 was set at some $1.25bn for public

sukuk and $300mn for private sukuk, but that another issue of $1bn worth of sukuk is expected before the end of this year.Saudi Arabia is the largest shareholder of IDB with 23.5% of share capital subscription, followed by Libya, Iran, Nigeria and the UAE.The IDB tripled its authorised capital to $150bn in 2013 and in 2015 up-sized its flagship Islamic bonds (sukuk) issuance programme to $25bn.The bank also expects to appoint a new vice-president for finances, a position vacant for a year now, who Hajjar said would be tasked with restructuring the department of finance.

Oman starts sukuk sale seeking funds to fi ll budget gapBloombergBrussels

Oman opened a sale of Is-lamic bonds yesterday, its second international

off ering this year, as it moves to plug a gap in its fi nances left by dwindling oil revenue.

The Sultanate is off ering a seven-year sukuk at about 250 basis points above the mid-swap rate, tightened from earlier guidance in the region of 270 ba-sis points, according to a person familiar with the deal who asked not to be identifi ed because the information is private. The country’s fi nance minister said this month that the country is targeting proceeds of $2bn from the sale, which comes alongside a series of economic and fi scal reforms.

Oman is the largest Arab oil producer outside Opec and a halving of crude prices since 2014 left it with a budget defi cit of almost 22% of economic out-put in 2016, according to the In-ternational Monetary Fund. S&P Global Ratings cut the country’s credit score to sub-investment grade status on May 12 cit-ing volatile export revenue and heightened external fi nancial needs.

“The issuer is at the edge to lose the investment grade rat-ing so it has to pay a relatively high spread for a relatively good credit quality,” said Lutz Roe-hmeyer, who manages about $2.5bn at Landesbank Berlin Investment and plans to buy the new issue.

Oman’s existing dollar debt curve implies a seven-year spread of around 230-235 ba-sis points above the mid-swap rate, according to valuation data and Bloomberg calcula-tions as at 9am yesterday in London.

Alizz Islamic Bank, Citigroup, Dubai Islamic Bank, Gulf In-ternational Bank, HSBC Hold-ings, JPMorgan Chase & Co and Standard Chartered are man-aging the deal. The country’s last foray into international debt markets was a $5bn three-part off ering of dollar bonds in March.

Gulf TimesExclusive

IDB extended $86.1bn in fi nancing in the last ten years for energy, transportation, water and sanitation projects

Emarati men stand on a balcony overlooking the Shams 1, Concentrated Solar power (CSP) plant, in Al-Gharibiyah district on the outskirts of Abu Dhabi (file). The UAE and Saudi Arabia, in particular, have embraced the idea of green sukuk after they set ambitious clean energy and energy eff iciency targets for their economies.

BUSINESSWednesday, May 24, 2017

GULF TIMES

Private sector crucial for future generations, says envoy al-KhaterBy Denise MarrayGulf Times CorrespondentLondon

Qatar’s ambassador to the UK, Yousef Ali al-Khat-er, gave the keynote ad-

dress at the Oxford-GCC Busi-ness Conference 2017 held at St Antony’s College in London on Saturday.

The event partners were the University of Oxford, the Arab British Chamber of Commerce and Said Business School; par-ticipants included Oxford Gulf and Arabian Peninsula Studies Forum (OxGAPS), the Arab Gulf States Institute in Washington, Oxford Women in Politics, Ox-ford Business Group, Arabisk and Unity for Global Develop-ment. Scholars and policy ex-perts spoke on a wide range of topics impacting the GCC busi-ness environment.

Speaking to Gulf Times at the conference al-Khater said Qatar had a strong focus on developing a diversifi ed economy with a dy-namic private sector.

“We are working away from hydrocarbon resources because we believe that sustaining the development of future genera-tions should be our key focus.

“The government will con-tinue to provide some of the in-centives that we off er at the mo-ment but this will not last. It is not indefi nite. The government is trying to fi nd the base for private business to take their share in recruiting the new generations. Hopefully, this will be realised with the implementation of the Qatar National Vision 2030.”

Dr Khalid Rashid Alkhater, speaking in his personal capac-ity as a Qatari economist spe-cialising in monetary policy and political economy and a fellow researcher at Cambridge Uni-versity, addressed the role of the private sector in the GCC growth model. “There is a dire need for diversifi cation outside the oil sector, particularly to promote the development of an export tradeable sector that is not con-strained by the boom-bust cy-

cles of the oil sector,” he said. He observed that sustainable eco-nomic benefi ts would fl ow from incentivising investors to look beyond government contracts and take more risk in investing in private sector ventures.

He said that aims to channel human resources towards high value sectors can be undermined by a focus on construction and real estate projects which tend to soak up national human capital and result in the squeezing of the

tradeable sector. He added that adopting a model which fosters diversifi cation and allows wealth distribution while not disturb-ing the status quo is always chal-lenging.

Alkhater said that many oil based economies in the region have their economic activities concentrated in the non-trade-able sector such as services and construction relying on low skill imported labour with the ma-jority of nationals employed in

the public sector. This model, he said, does not support build-ing human capital, technological development, or a knowledge based economy. He added that the most important and chal-lenging element of diversifi ca-tion is human capital develop-ment.

He characterised periods where the oil revenues fall as op-portunities to develop the non-oil tradeable sector.

He pointed to Malaysia and Indonesia as countries which had successfully diversifi ed their economies through policies en-acted ahead of oil revenue dips as a result of necessity. They used vertical diversifi cation to create linkages in the existing industries and horizontal diversifi cation with an emphasis on exports and technological upgrade.

Oliver Cornock, editor-in-chief, Oxford Business Group, spoke on ‘Plotting a new course for private sector development in the Gulf States’. He noted that within many GCC countries the tradeable sector is focused on servicing the needs of a transient immigrant workforce intent on repatriating their wages. He argued that a diff erent kind of

private sector needs to be devel-oped with economic diversifi ca-tion of the non-oil tradable sec-tor towards high value-added sectors.

Chris Innes Hopkins, UK ex-ecutive director, Saudi-British Joint Business Council, argued that SMEs are handicapped by inadequate access to fi nancing, lack of skills, and poor business services support.

Professor William Scott-

Jackson, chairman, Oxford Strategic Consulting, said that family businesses within the GCC should be more proactive in seeking opportunities; he pointed to the defence industry in Saudi Arabia as a prime ex-ample of a sector in which they could profi tably engage. He also noted that within Qatar there was great potential for engage-ment by family fi rms in high end tourism.

HE Mr Yousef Ali al-Khater giving his keynote address at the Oxford-GCC Business Conference 2017 in London.

Conference speakers (from left) Dr Khalid AlKhater; Oliver Cornock; Chris Innes-Hopkins, Professor William Scott-Jackson; and panel chair Suliman al-Atiqi, committee chairman, Oxford Gulf and Arabian Peninsula Studies Forum.

Gulf TimesExclusive

Ooredoo discusses cognitive computing at Watson Qatar SummitOoredoo has participated in IBM’s signature event, Watson Qatar Summit, which was held in Doha.In an on-stage interview during the summit, Ooredoo discussed how cognitive computing can transform businesses, and that the solutions it had deployed in Qatar will soon enable public and private sector organisations to understand, reason, and learn.Ooredoo also used the summit’s platform to highlight its Mobile Device Management (MDM) off ering that was launched last year. The MDM is a comprehensive solution for total enterprise device management that enables companies to seamlessly manage employees’ smartphones, tablets, and even laptops, as well as personal devices across their entire corporate network. Powered by IBM MaaS360, the MDM solution off ers a range of essential solutions via the cloud, so that employees can access corporate e-mail, calendar, contacts and share documents securely through their device. Companies deploying the system can manage inventory, update policies, and configure features via a central portal, giving them more security and control. This solution also enables businesses to protect data on lost or stolen devices with remote password locks and resets, as well as partial and

full data wipes, remote lock and generate reports.“For each customer in Qatar, we will bear the full weight and expertise of the Ooredoo brand: our people, who are some of the most experienced anywhere in the world; our world-class, continually-improving network; our wide-ranging portfolio of solutions; and our legacy or track record of excellence in delivering for Qatar’s biggest and smallest businesses,” said Yousuf al-Kubaisi, chief operating off icer at Ooredoo Qatar.As Qatar’s enterprise class organisations are rapidly growing and demand that their services be scalable in volume, size, and functionality, Ooredoo said it is making sure to be “out in front” with a rich portfolio of solutions to support their growth and enable them to meet and react to market demands.“Cognitive computing is surging in customer demand simply because it aids human decision-making, which is central to the successful management of any organisation whether large or small”, added al-Kubaisi.Ooredoo said it believes that the number of use cases involving cognitive computing will continue to grow, and enterprise customers will demand these solutions. It added that Ooredoo “is bringing all those advancements to the businesses and organisations in Qatar.”

Modern retailers increasing footprint in Qatar’s malls, says Alpen Capital

Modern retailers are pen-etrating into Qatar to “target the affl uent seg-

ment”, Alpen Capital said and noted that as more organised malls are being set up as a means of entertainment and shopping, modern grocery stores are in-creasing their footprint at such malls.

A high composition of expatri-ates from diff erent parts of the world has led to demand for in-

ternational foods and other con-sumer products in the GCC, Al-pen Capital said in its ‘GCC retail industry’ report.

Alongside, a rapid urbanisa-tion and high income levels are the other major factors enabling modernisation of the retail mar-ket in the region.

Modern retail outlets include supermarkets, hypermarkets, discount stores and convenience stores. Consumers fi nd it hassle-

free to shop at such organised es-tablishments, as they off er a wide range of products at competitive prices in a convenient set-up.

The region’s modern retail landscape is dominated by hy-permarkets that are mainly lo-cated within large shopping centres. Grocery sales account for the largest part of revenue of such modern stores.

During 2014, groceries ac-counted for more than 60% of

total hypermarket sales and 81% of supermarket sales in the UAE, the largest retail market in the GCC.

Penetration of the modern grocery outlets is high in Bahrain and the UAE at 65% and 62%, re-spectively, and lowest in Kuwait at 45%, Alpen Capital said. Pen-etration rates in the other GCC countries range between 52-56%.

The report also showed the Middle East, represented largely

by the GCC countries, is home to many high net worth individu-als. The wealth of the affl uent section in the Middle East grew at a CAGR of 5.7% from 2006 to reach $2.3tn in 2015 and is ex-pected to grow further at an an-nualised rate of 6.7% to $4.4tn by 2025.

“Thanks to the high spend-ing power, the consumers have a penchant for high-value luxury goods and services. In addition

to the spending propensity, the region’s favourable demograph-ics and active tourism sector makes it a fertile ground for luxury retailers,” Alpen Capital said.

Almost half of the GCC re-gion’s population is below the age of 30 and luxury retailers are looking to tap the growing number of young people, with a focus to convert them into loyal customers.

Buoyed by strong fundamen-tals, the Middle East region ranks amongst the top ten luxury retail destinations in the world and is home to premium brands like Cartier, Chanel, Gucci, Hermes, Prada and Ralph Lauren.

At constant currency rates, the luxury market in the region has grown at a CAGR of 1.4% in the last four years to 2016 to an estimated €7.6bn, Alpen Capital said.

QNB receives ‘Best Bank in Qatar’ awardQNB has received the ‘Best Bank in Qatar’ award from Euromoney magazine during the Euromoney Middle East Awards for Excellence ceremony held in Dubai.The Euromoney Awards for Excellence are among the most prestigious global awards for banking excellence. In addition to certified performance criteria, the judges utilise independent data available from BankScope, Bloomberg, Capital Intelligence, and Dealogic while choosing winners each year. The award is designed to review a wide range of qualitative and quantitative standards such as business volume, innovation, leadership, credit ratings, quality of assets and earnings, eff iciency ratios, and key performance indicators.QNB is a frequent recipient of the prestigious Euromoney

awards, which the magazine awards through a prominent annual award ceremony to recognise industry leaders, reflecting the excellence of the services it off ers to its clients across its vast network of operation.Euromoney is a leading magazine and industry analyst that has in-depth knowledge on key financial markets, top of development sectors, and industry trends. The magazine has benchmark awards, such as its Best Bank Award that are rated by the industry and for the industry. QNB Group is present through its subsidiaries and associate companies in 31 countries across three continents, providing a comprehensive range of products and services. QNB Group staff exceeds 28,000 operating through more than 1,250 locations with a network of 4,300 ATMs.

Dignitaries from QNB and Euromoney magazine during the Euromoney Middle East Awards for Excellence ceremony held in Dubai.

HSBC Qatar picks up three honours atEuromoney awards

HSBC received three ma-jor awards at the annual ‘Euromoney Awards for

Excellence’ event held in Dubai recently.

HSBC was awarded ‘Best in-vestment bank in Qatar’ this year and retained its title as ‘Best investment bank in the Middle East’ for the fi fth con-secutive year. This is the bank’s seventh win of the title since 2008.

HSBC Qatar CEO Abdul Ha-keem Mostafawi said, “The award for ‘The best investment bank in Qatar’ is testament to HSBC’s longstanding relation-ship with the country. Our pres-ence in Qatar for over 60 years, combined with the banking ex-pertise of our in-country team and extensive global network give us the leading edge to support our customers in their growth ambitions. We are honoured to be awarded for our work.”

In addition, HSBC Saudi Ara-bia, an affi liate of HSBC Group, received its seventh award since 2009 as ‘Best investment bank, Saudi Arabia’.

HSBC was also awarded ‘Best bank in Oman’.

On the wins, HSBC Bank Middle East deputy chair-man and CEO Georges Elhed-ery said, “We are honoured to win the ‘Euromoney Awards for Excellence’ for three major categories this year. This is a great recognition by our valued customers of our capabilities to off er them innovative and tailored products and services that meet their regional and global requirements.”

“It is also a testament to the hard work and dedication of our staff , without whom we would not have achieved these great wins,” ElHedery added.

The Euromoney Awards for Excellence are acknowledged by the industry as the pinnacle of achievement for wholesale and retail banks. These awards are given to those institutions that demonstrate leadership, inno-vation, and momentum in the markets in which they operate.

The judges took into account both the breadth and depth of HSBC’s coverage in the region; not only the bank’s league table positions but also its involve-ment with many of the market defi ning transactions of the year.

HSBC was awarded ‘Best investment bank in Qatar’ this year at the ‘Euromoney Awards for Excellence’ event held in Dubai recently.

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