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Wednesday, March 29, 2017Rajab 1, 1438 AH

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Qatar wealth fund expansion undeterred by Brexit concernQIA to boost UK investments by £5bn, CEO says fund eyes opportunities in US technology, healthcare

BloombergDoha/Dubai/London

Qatar’s sovereign wealth fund plans to expand in the UK and the US, as top offi cials said long-term commercial

opportunities would outweigh political uncer-tainty roiling the two countries.

Qatar will add £5bn ($6.3bn) to its UK port-folio in the next three to fi ve years, and will set up an offi ce soon in San Francisco – its second in the US after New York. The focus will be on infrastructure, technology, healthcare and real estate, they said.

The plans were announced on Monday in London, and the investments could help signal that the UK remains an attractive destination for foreign capital even after it leaves the Euro-pean Union. Prime Minister Theresa May is set to begin the two-year clock on Brexit negotia-tions today.

“We look at our investments purely on a commercial basis,” HE the Finance Minister Ali Sherif al-Emadi told Bloomberg Television in an interview, responding to a question on whether turbulent Brexit talks would change Qatar’s view. “We were heavily investing in the UK and Europe during the fi nancial crisis. Most of our investments are very much long-term.”

Qatar, the world’s biggest exporter of lique-fi ed natural gas, is already a major investor on both sides of the Atlantic. It has assets valued at more than £35bn in the UK, including Lon-don landmarks such as the Harrods depart-ment store, The Savoy hotel and the Shard sky-scraper. The Qatar Investment Authority has

also invested more than 60% of the $35bn it has dedicated to the US.

“Qatar realises that due to its large capi-tal base and relative small size of its economy, there are constraints to what it can do inside the country,” said John Sfakianakis, director of economic research at the Gulf Research Center Foundation in Riyadh. “It makes sense to invest in countries that will produce long-lasting and stable returns.”

More than 400 Qatari offi cials and execu-tives were in the UK for the two-day invest-ment forum, led by HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani, as well as bank-ers from the some of the world’s top fi nancial institutions.

Qatar has a stake in keeping the UK economy and asset prices strong during and after Brexit. It delivers 90% of the UK’s imports of the fuel. The emirate invested billions in Barclays dur-ing the global fi nancial crisis and has built up a stock and real estate portfolio over the past decade.

In a frank assessment of the uncertainty fac-ing the UK due to Brexit, QIA chief executive offi cer HE Sheikh Abdullah bin Mohamed bin Saud al-Thani said, “If you ask anyone here, they won’t have any clue at what’s happening in this economy.”

Yet he said the wealth fund still agreed to commit “a big amount of investment in the UK, especially in infrastructure” during its last strategy session.

Al-Emadi, said the QIA and its units were also looking at opportunities in UK property, technology as well as energy, and dismissed the impact of the weakening pound on his coun-try’s investments.

“Since we’re not trading in our portfolio, it’s always going to be an accounting adjustment,”

he said. “If we look at what we’ve been holding in the last 10 years, we still have the same assets as of today and I don’t think we’re going to give up these assets” anytime soon, he added.

He also said his country would encourage any talks between the US and the six-member Gulf Co-operation Council, which includes Qatar, to establish a free trade agreement after Brexit.

Monday’s announcement would maintain the UK’s status as Qatar’s top investment des-tination even as the QIA considers expanding in the US. The fund will open an offi ce in San Francisco by the end of this year or the fi rst quarter of next, its CEO Sheikh Abdullah told reporters.

Al-Emadi said Qatar’s investments in the US are “really ahead of schedule.”

“The US market has done extremely well, es-pecially after Trump’s election,” he said. “But the way we are look at this is more about the US economic and fi nancial policies.”

The $335bn sovereign wealth fund, created in 2005 to handle the country’s windfall from liquefi ed natural gas, has stepped up the pace of investments as energy prices recovered, buying stakes in Turkey’s biggest poultry producer, Russian oil giant Rosneft and UK energy com-pany National Grid.

Qatar is also weighing whether to invest in a $100bn global technology fund formed by SoftBank Group Corp. Page 16

HYDROCARBON RECEIPTS : Page 15

Qatar budget defi cit may fall to 5% of the country’s GDP this year, says Samba

Qatar Airways plans new UK destinations: Al-BakerQatar Airways has hinted at further expansion to new UK destinations in view of the significant role played by the aviation sector in expanding the business relationship between Qatar and the UK.The country’s national carrier, which already works with many British companies as Rolls-Royce contributing to investment and employment opportunities, indicated this at the high-profile Qatar-UK Business and Investment forum, which took place in London and Birmingham this week.“We are proud of the part we play in encouraging trade between the UK and Qatar with more than 70 flights each week between Qatar and destinations in the UK such as London Heathrow, Birmingham, Edinburgh and Manchester,” Qatar Airways chief executive Akbar al-Baker said.In addition, London is home to the headquarters of International Airlines Group, of which Qatar Airways is a shareholder and the UK will also be the very first market to which it will fly the recently launched ‘Qsuite’ this summer, bringing First to Business Class, a direct reflection of the importance it places upon the Qatar–UK relationship, he said.There are some 20,000 UK citizens in Qatar and another some 40,000 who visit the country annually from the UK, and Qatar Airways provides a modern and eff icient transport infrastructure, with a fleet of the world’s latest generation aircraft and one of the most modern

airports in the world, the Hamad International Airport.The two-day forum provided a significant platform to develop the trade and investment relationships between Qatar and the UK, while raising the profile of the strong relationships that exist between the two countries.The forum included an invitation for al-Baker

to attend a VIP round table discussion with UK Prime Minister Theresa May on the importance of the UK-Qatar relationship, alongside key representatives from Qatar led by HE Sheikh Abdullah bin Nasser bin Khalifa al-Thani, Prime Minister and Minister of Interior. Al-Baker also held a private meeting with Secretary of State for International Trade for the UK, Dr Liam Fox.

The forum included a roundtable meeting with May and was attended by senior Qatar off icials including HE the Minister of Transport and Communication Jassim Seif Ahmed al-Sulaiti and HE the Minister of Finance Ali Sherif al-Emadi.The forum also featured an impressive gala dinner attended by Prince Edward, the Earl of

Wessex and his wife, the Countess of Wessex.Qatar Airways also hosted a gala dinner in celebration of its ties with the UK by serving London Heathrow for 20 years at London’s Dorchester Hotel for more than 450 VIP guests, including notable dignitaries such as the Qatari Premier.

Qatar Airways accelerates India pushBloombergLondon

Qatar Airways may order 100 new jetlin-ers before the end of this year to power its push into India and also plans to an-

nounce two new routes to the UK even as the country prepares to exit the European Union, chief executive offi cer Akbar al-Baker said.

The Gulf carrier is confi dent that a new avi-ation policy mapped out by “futuristic” Indian Prime Minister Narendra Modi will permit 100% foreign ownership of a domestic airline, al-Baker said Monday in London.

Qatar Airways is briefi ng lawyers in India and will seek formally to establish the new air-line soon, with a tender for aircraft to follow. “It could be this year,” the CEO told journalists after addressing the Qatar-UK Business and Investment Forum. “It depends how fast we can arrange our application.”

Al-Baker revealed last month that he planned to set up an Indian carrier with a fl eet of 100 narrow-body jets, breaking into a fast-growing market where local rules previously prevented full ownership by foreign airlines. He said at the time that the Qatar Investment Authority could fund the venture, leaving Qa-tar Airways to run it.

Qatar Airways is targeting an Indian foot-hold after Etihad Airways of Abu Dhabi took a 24% stake in Jet Airways India. Leading Asian carriers Singapore Airlines and AirAsia also have 49% holdings in affi liates in the subcon-tinent, though no foreign operator has been able to acquire full control.

Al-Baker sought to use the QIA to secure a position in discount specialist Indigo during its initial public off ering, but the fund failed to gain the required approvals in time.

Qatar Airways’ expansion plans elsewhere include the addition of two new routes to Brit-ain, the CEO said at the investment event. The carrier already off ers 72 weekly services to the UK, where it serves London’s Heathrow hub as well as Manchester and Birmingham in Eng-land and Edinburgh in Scotland.

Al-Baker said his company accepts that a ban on passengers carrying large electronic de-vices aboard US-bound fl ights from a clutch of Mideast and African nations including Qatar is a “security decision,” adding that it’s too early to say if the measures will hurt business.

“I don’t think it is targeted at Gulf airlines,” he said. “It is a decision made by the US that we as an operator have to follow. We have to comply and make sure that we don’t cause any inconvenience to our passengers.”

Qatar Airways customers bound for the US are required to surrender their laptops and other equipment when passing through secu-rity screening.

HE Sheikh Abdullah (second right), HE al-Sulaiti (left), HE al-Emadi (right) and al-Baker at the Qatar Airways gala dinner at The Dorchester London. Right: Pictured during a panel discussion in London are HE Dr Hanan Mohamed al-Kuwari, Qatar’s Minister of Public Health (left); al-Baker (centre left); Dr Hassan al-Derham, president, Qatar University (centre right) and Karen Bradley (right), MP, Secretary of State for Culture, Media and Sport, UK.

Britain’s Prime Minister Theresa May greets HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani at Downing Street in London on Monday. More than 400 Qatari off icials and executives as well as bankers from the some of the world’s top financial institutions were in the UK for the two-day investment forum.

2 ISLAMIC FINANCE GULF TIMESWednesday, March 29, 2017

Innovative approach in Islamic fi nance: Hybrid sukuk issueBy Arno MaierbruggerGulf Times Correspondent Bangkok

Saudi Aramco, the world’s largest oil and gas producer and also the world’s most valuable company by assets, in its fi rst-

ever debt sale has chosen a hybrid sukuk to kick off a series of large domestic off er of riyal-denominated Islamic bonds.

That leads to the question: What is a hy-brid sukuk? What are its benefi ts and why would an oil giant such as Saudi Aramco choose an apparently highly complex debt structure for its fi rst issuance?

Against what would probably fi rst come to mind, a hybrid sukuk is not a combination of a normal sukuk and a conventional bond. That way, the debt instrument would imme-diately loose its Shariah-compliance.

On the contrary, a hybrid sukuk – also called mixed-asset sukuk – is a structure in which the underlying pool of assets consists of two or more Islamic fi nance contracts that can comprise of istisna, murabaha, mudara-ba and Ijarah at the same time and in the same structure which is then called hybrid.

Such a structure allows the issuing com-pany or entity to take into account the diver-sifi ed demands of various investors, allowing for a wider portfolio of assets classes that, in turn, aim at a greater mobilisation of funds.

In short, a hybrid sukuk is used when a broad range of possible investors is being addressed and when there are hopes that as much money as possible will be raised – which, by the way, gives an indication how desperately Saudi Aramco is seeking to bal-ance its fi nances in the current low oil price environment.

Reportedly, the fi rst Saudi Aramco sukuk is expected to fetch up to $2bn of fresh money, and it’s just part of a whopping $10bn sukuk issuance programme launched by Aramco to tap new sources of fi nance ahead of its planned partly stock listing next year.

As per its hybrid structure, at least 51% of the Aramco sukuk’s raised funds would be used in a mudaraba agreement, a profi t part-nership in which one partner provides capital and the other provides labour and/or busi-

ness and management expertise. The pro-ceeds of this part of the hybrid sukuk could be invested in Aramco’s operative business and used for general corporate purposes. The remainder of the funds comes from a mu-rabaha facility which could be used to buy or fi nance through a special purpose vehi-cle, normally an intermediary bank or asset manager, tangible assets such as machinery, corporate property, commodities, products and services.

Basically, the concept compares to a con-ventional securitisation structure where debt receivables are sold to a special purpose vehicles, which issues bonds for investors to fi nance the structure.

The particular 51:49 share in Saudi Ara-mco’s new hybrid sukuk is owing to the ne-cessity that the majority of the sukuk must be normally made up of tradable Islamic contracts such as mudaraba to allow the en-tire sukuk to be traded on secondary markets.

However, there have been cases where even a minority of 30% of tangible assets included in the pool of assets has been accepted by the relevant Shariah scholars.

“Hybrid sukuk are among the favourable emerging type of sukuk in the Islamic capi-tal market worldwide,” says Hafas Furqani, scholar at the International Shariah Research Academy for Islamic Finance, or ISRA, in

Kuala Lumpur.“It is viewed as one of the innovative prod-

ucts in the Islamic capital market compared to the plain vanilla sukuk structures that are basic and standard, which do not add value such as the option to exchange or convert

into equity at a specifi ed time,” he adds, pointing at the characteristics of a hybrid sukuk of holding both debt and equity. This grants the sukuk holder the right to convert his sukuk certifi cates to shares or equity ownership of the issuer, in this case Saudi Aramco, which makes a perfect case for the oil giant’s upcoming initial public off ering.

In other words, a hybrid sukuk has much of the characteristics of a reverse convert-ible bond used in the conventional fi nancial world, and is additionally Shariah-compli-ant.

Furqani expects that amid ongoing capital markets uncertainty, companies will con-tinue to look at hybrid sukuk structures as part of their infrastructure funding options. Nevertheless, their complexity could be an obstacle since it is sometimes diffi cult to obtain Shariah approval, and there could be regulatory and taxation issues in some coun-tries that need to be resolved.

EDUCATION/FAQ on Murabaha

A bank executing a purchase under a Murabaha contract opens documentary credit in a foreign bank and receives a commission. Should such a commission be given to the client or is the bank entitled to keep it?The bank should, first of all, notify the client of such a commission. If it is agreed with the client that the bank is entitled to receive the commission, the amount of commission is deducted from the principal amount per the provisions of the Murabaha contract. If the receipt of the commission is not declared by the bank, then the commission will be held to be the client’s property.

What do scholars recommend to ensure that a Musharakah remains a going concern?Since every going concern relies on

some level of stability and continuity, scholars recommend that the Musharakah contract clearly state at the outset:1) that individual parties may not compel the entire partnership to terminate the business unless there is a majority favouring such a move; and 2) whether the Musharakah terminates after a fixed period of time or whether the Musharakah terminates after the fulfilment of a specific objective, like the sale of an inventory of goods or the construction of a building.

When does constructive possession take place in an import Murabaha?In an import Murabaha when the bill of lading is received the party having received it is considered to have constructive possession of the goods.

Is it permissible to stipulate that Murabaha instalments be payable in foreign currency at the rate prevailing on the due date, in consideration of the fact that the bank has to pay for such goods in instalments in foreign currency?It is a condition for the validity of a contract that the contract price be known to both parties. In such a case, both the seller and buyer do not know the contract price, as it is contingent upon the currency rate prevailing in the future. Due to this and other ambiguities, such an arrangement is not permissible in the Shariah and should be avoided.

Is it permissible for a bank to import goods under Murabaha agreement based on a quotation issued under the name of the client?

It is permissible for the bank to import goods under a Murabaha agreement based on a quotation issued under the name of the client. However, it is preferable that the quotation be addressed to the bank.

In case of goods imported by a bank under a Murabaha agreement, which currency conversion rate should be used to determine the contract price?In case of goods imported under a Murabaha, the bank should use the conversion rate prevailing on the day of purchase from the exporter.

Is it permissible for a client to reject goods bought by a bank under Murabaha agreement due to a defect in the goods?The client may reject such goods, as it

is the right of the buyer to reject goods due to a defect in them.

Is it permissible to enter into a Murabaha contract where the determination of profit is deferred until the date of delivery of the goods?It is impermissible to defer profit determination in Murabaha contracts until the date of delivery.

In a Murabaha transaction, is it permissible for the buyer under the Murabaha (client) and the owner of the goods to agree that the buyer will return the goods or have them replaced in case they are not sold?It is permissible for the buyer and owner of goods to enter into such an agreement, as it is independent from the Murabaha transaction. Such a contract has no relation to the seller under a Murabaha.

In the event of damage to goods under a Murabaha contract, is it necessary to decrease the price of the contract by the amount of insurance compensation received? Will it suff ice to hand over the compensation amount to the client without decreasing the price?It is obligatory to decrease the price of a Murabaha contract by the amount of any insurance compensation received in lieu of damage to the goods. Changes in price that take place subsequent to the Murabaha contract should be immediately notified to the client. It is not suff icient to hand over the compensation amount to the client without decreasing the price.

Source: Ethica Institute of Islamic Finance via Bloomberg

Gulf TimesExclusive

Islamic fi nance aims for easier sukuk investment with ‘new standards’By Bernardo VizcainoReuters

Two top standard-setting bodies are proposing new guidelines for Islamic bonds that could in-

crease investment in the instruments by making them more transparent and easier to structure.

The Accounting and Auditing Or-ganisation for Islamic Financial Insti-tutions (AAOIFI) recently published draft accounting standards for sukuk that aim to clarify how they should be treated on balance sheets and the in-formation which issuers should dis-close.

Bahrain-based AAOIFI, whose standards are followed in whole or in part by Islamic fi nancial institu-tions around the world, said it had also formed a working group to overhaul its

Shariah standards for sukuk. Shariah standards cover the instruments’ com-pliance with Islamic principles.

Late last year, the Malaysia-based Islamic Financial Services Board (IFSB) drafted its own guidelines for disclo-sure related to Islamic capital market products, mainly focusing on sukuk.

The new standards could make su-kuk more popular because both issuers and investors have complained that the instruments, which seek to replicate conventional bonds without the use of interest payments, can be complex and time-consuming to design, and diffi -cult for investors to understand.

Aligning the market around com-mon, specifi c standards, and requir-ing all issuers to disclose the same in-formation, could help to resolve these problems.

Conventional debt issuance nearly doubled in the Gulf region during 2016,

reaching over $140bn, but sukuk is-suance dropped by 6% and stood be-low $20bn for a second year running, Standard & Poor’s estimated.

“Muted issuance could push the market toward more standardisation as issuers and advisors realise that the lack of volume is due to the complexity of the process,” said Mohamad Damak,

global head of Islamic Finance at S&P.The proposed AAOIFI standards

cover the accounting treatment of su-kuk by special purpose vehicles, which are often used in Islamic bond transac-tions. The standards say when sukuk should be classifi ed as equity, quasi-equity or a liability.

This could help to resolve a long-standing source of confusion among investors over whether sukuk are as-set-backed, giving them a share of the instrument’s underlying assets, or as-set-based, in which they may only have limited recourse to those assets.

“These two terms are too similar and can even mislead unfamiliar inves-tors bewildered by sukuk jargon,” said Khalid Howladar, managing director at Dubai-based advisory fi rm Acreditus.

The IFSB draft covers disclosures on the risks involved in certifying prod-ucts as Shariah-compliant, capital-

boosting structures, underlying as-sets, limitations on how sukuk can be traded, and investors’ rights in case of default or restructuring.

The new IFSB standards would allow exemptions from certain disclosure re-quirements for governments and mul-tilateral bodies issuing sukuk, though some in the industry are challenging that.

The General Council for Islamic Banks and Financial Institutions, a lob-by group, said such exemptions should be avoided as they could complicate cross-border sukuk off ers.

“Identifi cation of assets for sover-eign or multilateral sukuk issuances is essential,” the Manama-based group said in written comments to the IFSB. The Islamic Development Bank and the Malaysia-based International Islamic Liquidity Management Corp are the main multilateral issuers of sukuk.

Aramco said to set final price for debut riyal sukuk

BloombergDubai

Saudi Arabian Oil Co told investors how much it’s willing to pay to sell its debut riyal-denominated sukuk bonds, a person familiar with the matter said.Saudi Aramco, as the oil company is known, set the final price of its seven-year Islamic debt private placement at 25 basis points over the six-month Saudi Arabian interbank off ered rate, or Saibor, said the person, who asked not to be identified because the information isn’t public. This, the first off ering under Aramco’s 37.5bn-riyal ($10bn) sukuk programme, was earlier said to be for the riyal equivalent of about $2bn.The world’s largest oil producer is selling the debt ahead of an initial public off ering of shares planned for 2018. Alinma Investment Co, GIB Capital, HSBC Holdings, NCB Capital, Riyad Capital, Samba Capital and Saudi Fransi Capital are arranging the hybrid riyal sukuk bond, which is expected to close on April 3, the person with knowledge of the deal said.Aramco’s sukuk follows Saudi Arabia’s $17.5bn bond issue in October, which was the state’s debut international debt sale as well as the biggest-ever dollar bond from an emerging-market issuer.

Aramco valuation seen topping $1tn after tax cut

Saudi Aramco could have a market value of more than $1tn, Sanford C Bernstein & Co estimates, after the government slashed the oil producer’s tax burden to attract investors ahead of what may be the world’s biggest initial public off ering.The tax cut will increase Aramco’s net income by 300%, putting its per-barrel income in a range similar to that of international oil companies including Exxon Mobil Corp, Bernstein analysts said in a report. A production-weighted valuation on a par with such companies could give Aramco, known off icially as Saudi Arabian Oil Co, a market value of $1tn to $1.5tn, the analysts said.The Saudi government announced on Monday it’s reducing Aramco’s tax rate to 50% from 85%, as it prepares to off er investors as much as 5% of the world’s biggest oil exporter. Estimates of Aramco’s potential valuation vary widely. Deputy Crown Prince Mohammed bin Salman has said it’s worth about $2tn, while consultant Wood Mackenzie Ltd valued the company last month at around $400bn, according to clients who attended a private briefing.“Before the reduction in tax, it was hard to argue that Aramco should trade at an equivalent value to Western oil peers,” Bernstein analysts Neil Beveridge and Oswald Clint said in the report. “With the reduction in tax to 50%, profitability per barrel is more in line” with those peers, and could be higher, they said.

Ezdan Holding sets initial price guidance for 5-yr dollar sukuk

ReutersDubai

Qatari real estate developer and operator Ezdan Holding has set initial price guidance for a five-year US dollar-denominated sukuk issue in the 5.125% area, a document issued by one of the lead banks showed yesterday.The wakala-structured, senior unsecured and Regulation S registered sukuk issue is expected to price today.HSBC and Mashreq bank are the global coordinators, joined by Dubai Islamic Bank, Emirates NBD, Natixis and Standard Chartered as bookrunners. The issue is expected to obtain a Ba1 rating from Moody’s and BBB- from Standard & Poor’s, the document showed.

The proposed AAOIFI standards cover the accounting treatment of sukuk by special purpose vehicles, which are oft en used in Islamic bond transactions

A gas flame is seen in the desert near the Khurais oilfield, Saudi Arabia yesterday. Saudi Aramco, the world’s largest oil and gas producer and also the world’s most valuable company by assets, in its first-ever debt sale has chosen a hybrid sukuk to kick off a series of large domestic off er of riyal-denominated Islamic bonds.

BUSINESS3Gulf Times

Wednesday, March 29, 2017

Citigroup applies for capital markets licence in Saudi ArabiaReutersDubai

Citigroup has formally applied for a licence to conduct capital markets business in Saudi Arabia, two sources familiar with the matter said, in a move to return to the country after an absence of nearly 13 years.The application has been made with Saudi Arabia’s Capital Market Authority (CMA), whose primary role is to regulate and develop the capital market in the oil-rich kingdom, the sources said.

Investment opportunities in the kingdom are opening up as the government diversifies its economy away from oil under its National Transformation Plan.The government is also preparing to list up to 5% of oil giant Saudi Aramco in an initial public share off ering that could raise as much as $100bn.Citi declined to comment on its Saudi plans.No one at the CMA was immediately available to comment.Citi is “positive” that it will gain a licence this year, a third source said.If successful, Citi could also pursue with

the Saudi central bank permission for a full bank branch licence, potentially joining other banks such as JPMorgan and Deutsche Bank.After operating in the oil-rich kingdom for five decades, Citigroup pulled out of Saudi Arabia in 2004 when it sold its 20% stake in Samba Financial Group, saying then it was reallocating capital to core investments.In 2015 it won permission from the Saudi Arabian regulator to invest directly in the local stock market, the first step towards returning to the country.Citi had approached bankers about

potential jobs in anticipation of the bank gaining a licence and building a team in the kingdom, one of the sources said.Citi is not the only global bank looking to expand in Saudi Arabia.Credit Suisse is also seeking a banking licence, as it wants to build a fully-fledged onshore private banking business there, the bank told Reuters in an email in late February.Goldman Sachs is also exploring the possibility of gaining a licence from the CMA to conduct share sales and trading in Saudi Arabia, a source briefed on the plan said.

The Wall Street bank has held preliminary talks with regulators, the source said.Bloomberg earlier reported Goldman’s plans.Goldman declined to comment on that report.”Saudi Arabia has ambitious plans to establish industries and privatise companies led by the Aramco initial public offering, which attracts a lot of attention of banks,” said Reinhold Leichtfuss, senior partner and managing director at The Boston Consulting Group’s Middle East office.”Saudi Arabia is also the

biggest market in the Gulf in terms of population and corporates so it makes sense for banks to be there.”There are 13 licensed foreign bank branches in the kingdom, including Deutsche Bank, BNP Paribas, JPMorgan Chase and Industrial and Commercial Bank of China, according to the central bank’s website.Citi chief executive Michael Corbat met with Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman earlier this month on a visit to the kingdom, in addition to Saudi billionaire Prince Alwaleed bin Talal al-Saud, a shareholder in the bank.

Desert ski slopes lay path for Egypt’s consumer-led revivalBloombergCairo

Weaving through the packed parking lot towards the Mall of Egypt, a new $700mn re-

tail palace complete with a Dubai-style indoor ski slope, it’s easy to think that the country’s economy is well and truly on the mend after years of crisis.

In fact, Egypt’s biggest shopping centre is opening its doors after house-hold spending power was hit by a 50% drop in the pound’s value following a decision to lift currency controls to ease a crippling dollar shortage.

Instead of sounding the retreat, companies like the mall’s developer, Majid Al Futaim, are doubling down on their commitments to the Arab world’s most populous nation as they bet on its most resilient asset: consumers.

“I’m not worried about falling dis-

posable income because for a number of years Egypt has had an offi cial econ-omy that was sustained by a gray one,” the Dubai-based developer’s chief ex-ecutive, Alain Bejjani, said in an inter-view in Cairo. “The current situation is beginning to look positive compared to where things were.”

Majid Al Futaim, whose Mall of the Emirates in Dubai also features indoor skiing, will invest $600mn to build another mega-mall in Cairo and make another shopping centre fi ve times bigger, the CEO said.

And he’s not alone: retailers and producers including Nestle, Mars and Turkey’s BIM are expanding their business. Saudi developer Fawaz Al-hokair Group, whose Mall of Arabia stands just a few kilometres away from the Mall of Egypt, plans to spend 8bn Egyptian pounds ($441mn) to build three shopping centres over the next three years.

“As far as I can see, Egypt will con-

tinue to be considered a high growth engine for multinationals and local companies,” said Yasser Abdul Malak, CEO of Nestle’s Northeast Africa unit. Nestle plans to invest 1bn Egyptian pounds in expansion as the country’s large but under-served population creates the opportunity for companies to achieve “exponential growth,” he said.

There’s still plenty of risk. More than four months after Egypt fl oated the currency to clinch a $12bn IMF loan, infl ation is at its highest level in three decades, fuelling concerns that further economic reforms could trigger social unrest in a country where two presi-dents have been toppled since 2011. For companies, the pound’s slump will erode revenue for foreign companies that book their earnings in other cur-rencies.

“The biggest risk for the country over the past few years was the poten-tial fl otation of the currency and that is

no longer a risk,” Mohamed Zein, Mena analyst at Renaissance Capital, said in a phone interview from Dubai. “This should bring foreign investments back.”

In an early sign of recovery, the con-traction in non-oil business activity slowed for a third consecutive month in February, according to the Emir-ates NBD Purchasing Managers’ Index. Some producers expect sales to recover as early as 2018, while the government sees infl ation peaking at the end of the fi rst quarter.

As the country moves on its up-hill climb to revival, the government is mindful of easing the population’s pain.

Even during the years of political instability following the 2011 uprising that toppled President Hosni Mubarak, high consumer demand made Egypt profi table for both foreign and domes-tic investors and companies.

The country’s unofficial economy

accounts for at least 37% of total output and employs at least 48% of the country’s non-agricultural workers in the private sector, ac-cording to an African Development Bank study.

“The official numbers about Egypt sometimes don’t match the reality,” Bejjani said. “The Egyptian market is deep. We have seen a lot of conversion into the official economy and this has helped the market to sustain itself.”

Demand is also supported by the ap-proximately 8mn Egyptians who live abroad, many of them in oil-rich Gulf countries.

The expatriates transferred about $4.6bn to their families at home from July to December last year, according to central bank data.

“The increasing purchasing power of Egyptians abroad, whose incomes have doubled in value since the pound fl oat, off set the plunge in local pur-

chasing power,” said Ahmed El Hitamy, chief executive offi cer of real estate developer Medinet Nasr Housing. His company targets a 46% increase in sales this year.

The sprawling Mall of Egypt, with Africa’s fi rst indoor ski slope and more than 400 stores, off ers the latest test of consumer confi dence and it doesn’t come cheap.

A family of four visiting its Ski Egypt can easily spend more than 1,000 pounds, compared with a monthly minimum wage of 1,200 pounds for government and public sector workers.

“The first two months sales fig-ures of our retailers are better than last year; this is positive because you could potentially expect sales to fall to the ground,” said Ahmed Badrawi, CEO of Fawaz Alhokair’s Egyptian unit, Marakez.

“This is a period of adjustment and people are adapting.”

Libya’s oil output drops after biggest fi eld said to closeBloombergDubai

Libya’s biggest oil fi eld was said to stop producing, leading to a 20% decline in

crude output from the country with Africa’s largest reserves.

The Opec nation is pumping 560,000 barrels a day, accord-ing to a person familiar with the matter who isn’t authorised to speak to the media and asked not to be identifi ed.

The North African country was pumping 700,000 barrels a day, Mustafa Sanalla, chairman of state-run National Oil Corp, said on March 22.

The pipeline carrying crude from Sharara, Libya’s biggest fi eld, to the Zawiya refi nery stopped operating, the person said.

It wasn’t clear why the pipe-line was shut. The NOC didn’t respond to calls seeking com-ment. Clashes among rival armed groups in early March led to the closing of two of the na-tion’s biggest oil export termi-nals, forcing a number of other

fi elds to halt production. The ports have since reopened. Libya pumped as much as 1.6mn bar-rels a day before a 2011 uprising led to the ouster of former leader Moammar Qaddafi and a break-down in central authority that stunted oil production. Libya is one of the smallest members of the Organisation of Petroleum Exporting Countries.

“The important question for the market will be whether this turns into a lengthy disrup-tion or not,” Richard Mallinson, an analyst at Energy Aspects in London, said by email.

“The political and secu-rity situation remains deeply unstable and so I am not sur-prised to see Libyan output continue to fluctuate on these kinds of issues.”

Sharara, in western Libya, had been producing 221,000 barrels a day, the NOC said March 21. Spain’s Repsol SA is an operator of Sharara. The Eni SpA-devel-oped Wafa oil fi eld, farther to the west near the Algerian border, is also shut, the person said. Wafa has capacity to produce about 35,000 barrels a day.

NBAD opens sale of Middle East’s fi rst green bonds

BloombergDubai

National Bank of Abu Dhabi is

selling the Middle East’s first

green bond, where proceeds

must be used to fund environ-

mental projects, as govern-

ments in the region look to curb

dependence on oil for their

energy needs.

The state-owned lender is

giving price guidance on the

five-year securities of 105 basis

points over the mid-swap rate

with a final price, according to

two people with knowledge of

the plan who asked not to be

named because the information

is private.

The sale of dollar-denominated

notes will be benchmark-sized, or

at least $500mn, they said.

While Abu Dhabi holds 6%

of the world’s oil reserves, it’s

seeking to diversify its energy

sources, prompting a series of

sustainable projects such as

development of a 1,177-megawatt

solar plant by Marubeni Corp,

China’s JinkoSolar Holding Co

and the Abu Dhabi Water and

Electricity Authority. The deal

also comes amid a surge in the

size of the global market for

green bonds which doubled to

$95bn last year, according to

Bloomberg New Energy Finance.

Moody’s Corp is projecting that it

will double again this year.

NBAD is also poised to

complete a $175bn merger with

rival First Bank, creating the

second-biggest bank in the

Gulf after Qatar National Bank,

as a halving of oil prices since

2014 spurs consolidation and

efficiency drives across the

energy-exporting region.

NBAD, rated the fourth-highest

investment grade at Moody’s

Investors Service, is a regular

issuer of bonds and raised

$885mn from the sale of 30-year

bonds listed in Taipei in January.

HSBC Holdings and NBAD are

the joint structuring advisers for

the green bonds, while Bank of

America Merrill Lynch, Citigroup,

Credit Agricole CIB, Mitsubishi

UFJ Financial Group along with

HSBC and NBAD are the joint

lead arrangers of the issue.

Amazon clinches deal to buy Mideast online retailer Souq.comAmazon deal confirmed after last-minute Emaar bid; Goldman says biggest M&A tech transaction in Arab world; executives see scope to lure Middle East shoppers online

ReutersDubai

Souq.com will expand its work-force and operations after Amazon clinched a deal to buy 100% of the

Middle East online retailer, executives from both fi rms said.

Amazon and Souq.com said earlier yesterday they had agreed on the takeo-ver, despite an eleventh-hour bid by Dubai billionaire Mohamed Alabbar’s Emaar Malls to cut in with an off er it said was worth $800mn.

Executives have not disclosed the value of the Amazon deal, which adviser Goldman Sachs called “the biggest-ever technology M&A transaction in the Arab world”. Sources with knowledge of the takeover said Amazon was paying less than Emaar’s off er, making it lower than Souq.com’s $1bn valuation when it sought funding last year.

One source said Souq.com would have broken an exclusivity agreement with Amazon if it accepted Emaar’s bid at this stage. “Amazon is a great fi t with us.

We have a lot of common values and it is all about innovation, technology and the type of customer experience and thinking that Amazon has,” Souq.com Co-Founder and Chief Executive Ron-aldo Mouchawar told Reuters.

Souq.com, founded in 2005, stocks 8.5mn items on its website and generates about 50mn monthly visits, Moucha-war said. It delivers to the six Gulf Arab states and Egypt.Mouchawar said there was scope to expand the business with Amazon and to increase the 3,000-strong workforce to boost Souq.com’s reach, without saying by how many it would rise.

“We will continue to invest in our seg-ment and grow our markets,” he said at Souq.com’s Dubai headquarters.

Despite its young, tech-savvy popu-lation, shoppers in the Middle East still prefer to shop in stores.

Online retail accounts for less than 1 per cent of total sales in the Middle East, according to market researcher Eurom-onitor International. “We want to fi gure out how to grow the team here. If we’re going to grow the business we have to grow logistics, we have to grow techni-cal development,” Amazon senior vice-

president Russ Grandinetti said. In a deal document seen by Reuters, Goldman said the acquisition would accelerate Amazon’s entry into “attractive Middle East countries with signifi cant growth potential.”

After the Amazon takeover, Middle East consumers will be able to buy prod-ucts available on Amazon.com through Souq.com, and Middle East merchants will have access to a wider market via Amazon’s network. The acquisition is

expected to close later this year. Souq.com’s current shareholders include South Africa’s Naspers and Tiger Global Management.

The Amazon deal was welcomed by the Dubai government, which is increasingly focusing on technology, as the emirate expands its retail footprint in the region.

Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid al-Maktoum said in a statement it showed the city state’s position “as a regional and global

hub for the world’s biggest and leading organisations.”

Amazon’s acquisition of Souq.com is seen as signifi cant for the Middle East’s nascent tech sector. “This is eff ectively a vote of confi dence in the region.

You have a major American compa-ny going into a digital company in the region,” said Fadi Ghandour, founder Dubai-listed logistics firm Aramex and a prominent venture capitalist in the Middle East.

Souq.com will expand its workforce and operations aft er Amazon clinched a deal to buy 100% of the Middle East online retailer, executives from both fi rms said.

BUSINESS

Gulf Times Wednesday, March 29, 20174

Sensex advances most in a weekBloombergMumbai

Indian stocks advanced as financial companies

gained and mortgage lender Housing Development

Finance Corp climbed to a record.

The S&P BSE Sensex increased 0.6%, the most in

more than a week, led by private lender Axis Bank,

which gained the most in a month. Housing Devel-

opment Finance was the second-best performer on

the gauge. It has 28 buy recommendations, nine

holds and three sells, data compiled by Bloomberg

show.

Oil & Natural Gas Corp Ltd fell 1.1% to a four-

month low and was the worst performer on the

index.

“Private banks continue to gain strength as

they corner a share of the business from state-run

lenders that are laden with bad loans,” said Paras

Bothra, president of equity research at Ashika Stock

Broking. “State-run lenders will need a longer time

to get over bad loans and be recapitalised.”

Dishman Pharmaceuticals & Chemical rises 20%

to record high on report company is API supplier

for Zejula. Bharti Infratel +2%; Bharti Airtel sold over

190mn shares in unit to group of funds advised by

KKR & Co, Canada Pension Plan Investment Board

for about $952mn. Aurobindo Pharma +1.3% after

it informs exchanges it got US FDA approval for

Meropenem injection.

Asia markets bounce back after hefty sell-off AFPHong Kong

Asian markets mostly bounced back yesterday from the pre-vious day’s hefty sell-off ,

on hopes Donald Trump can push through his economy-boosting agenda despite last week’s health-care debacle.

However, with expectations about the rate of future US interest rate ris-es receding, the dollar is struggling to break back against its major peers.

Markets across the world tum-bled after the tycoon’s repeal of Obamacare fell at the fi rst hurdle on Friday as he failed to garner enough votes from his own Republican par-ty, which controls both houses of Congress.

The failure fuelled worries Trump would not be able to drive his much-vaunted tax-cutting, infrastructure spending, deregulation plans, with analysts pointing out it would leave the administration with less cash to pay for such measures.

Hopes for his stimulus plan helped fuel a surge in global markets

and in the dollar since the November election.

While New York and European markets ended on a low, they were

well off their early losses and pro-vided Asian traders with something to play with as the dust settles after Trump’s bruising defeat.

“What seems to be going on in US stocks is that President Trump is being given the benefi t of the doubt that he will be able to deliver on tax and infrastructure,” said Greg McK-enna, chief market strategist at Axi-Trader.

Tokyo ended 1.1% higher, having slumped 1.4% on Monday.

Hong Kong added 0.6% and Sydney rallied 1.3%, while Seoul put on 0.4%, Singapore 0.8% and Manila 1.2%. However, Shanghai fell 0.4%.

“On balance the underpinnings are strong enough that we want to stay long” on stocks, Ted Weisberg, president at New York brokerage Seaport Securities, told Bloomberg TV.”We are viewing any kind of sell-off as a buying opportunity.”

However, while equities picked up, the dollar remained subdued, sitting at four-month lows against the yen.

The euro has been buoyed by up-beat data out of the eurozone.

Weighing on the greenback were comments from the head of the Chicago branch of the Federal Re-serve Charles Evans that it might

only need to raise borrowing costs twice this year considering an un-certain outlook for infl ation and Trump’s big-spending and tax-cutting agenda.

The yen has climbed more than 7% against the dollar since the start of the year while the single curren-cy is up about 5%. Even the pound, which was battered last year by Britain’s vote to leave the European Union, has risen 5% from its Janu-ary lows.

The US unit had already been under pressure after Fed boss Janet Yellen said this month that the pace of rate rises would be slower than initially expected.

“The market will be...interested — or hoping (vainly) for new insights from Fed Chair Yellen’s address” later, said David de Garis, director of fi xed income, currencies and com-modities at National Australia Bank, in a commentary.

In Tokyo, the Nikkei 225 closed up 1.1% to 19,202.87 points; Hong Kong — Hang Seng rose 0.6% to 24,345.87 points and Shanghai — Composite closed down 0.4% to 3,252.95 points at the close yesterday.

A woman passes before a share prices board in Tokyo. The Nikkei 225 closed up 1.1% to 19,202.87 points yesterday.

Investors pull money from hedge fund-type ETFs in quarterBloombergHong Kong

Exchange-traded funds (ETFs) that attempt to replicate hedge fund

strategies are losing assets as the tactics have underper-formed benchmark equity and bond indexes.

Investors have pulled about $95mn, or 4.5% of assets, so far this year from US-listed ETFs classifi ed as “alternative,” the biggest quarterly outfl ows since early 2014, according to data compiled by Bloomberg. The fund strategies include equity hedge, macro and managed fu-tures. The median return of the 29 ETFs is 0.99% this year, com-pared to a 4.7% gain in the S&P 500 index and a 1.16% rise in the Bloomberg US dollar investment grade corporate bond index.

“Some hedge fund replica-tion strategies are unproven and use correlation to try to emu-late a certain sector in the hedge funds realm,” according to Ar-ian Neiron, managing direc-tor at VanEck Australia. “When you create an index that’s overly complex and too opaque and doesn’t behave as expected based on the return profi le then your appetite would be muted and revert to mainstream asset classes where investors under-stand how they work.”

The outfl ows are another in-dication of the hedge fund in-dustry’s declining popularity af-ter years of under-performance. A global gauge of hedge fund performance showed average annual returns of about 4% in the fi ve years through Febru-ary, less than half of the MSCI World Index’s gain, according to Hedge Fund Research. Investors withdrew a net $70bn from the $3tn industry last year, ending a six-year streak of net deposits, according to the Chicago-based data provider.

The biggest alternative strat-egy in Bloomberg’s database is IndexIQ Advisors’ IQ Hedge Multi-Strategy Tracker ETF with more than $1bn in assets af-ter a net decline of $87mn so far this year, according to data com-piled by Bloomberg. The swap-based fund uses derivatives to replicate hedge fund returns. It is up 1.15% this year. The with-drawals are due to changing risk perception from investors, ac-cording to Salvatore Bruno, chief investment offi cer at the New York-based fi rm.

“With the post-election bounce in the equity markets, investors have become more risk on,” Bruno said in an e-mail. “They have been funding the equity allocated shift partially from their liquid alternative positions including hedge fund ETFs.” As volatility returns to the markets, “we expect that in-vestors will seek out hedge fund ETFs to help cushion their port-folios,” he said.

Emerging equities edge up

ReutersLondon

South Africa’s rand took

another tumble yesterday

with investors reeling from

President Jacob Zuma’s

sudden decision to recall his

finance minister from a trip

abroad in a sign of escalat-

ing tensions.

The rand lost more than

2% to 13.0968 against the

dollar during morning

trade, having dropped 2.4%

on Monday in its steepest

daily loss since the sell-off

sparked by the US election

in November.

Yields in dollar-denom-

inated sovereign debt

and local government

benchmark bonds jumped,

while the cost of insuring

government debt against

default also rose.

The losses came after

Zuma ordered Pravin Gord-

han, trusted as a steady

hand by investors, to return

back to South Africa from an

investor roadshow in Lon-

don, triggering speculation

he could lose his job in an

imminent cabinet reshuff le.

“The ongoing dispute

between President Zuma

and Finance Minister

Gordhan over the control of

public finances and state-

owned companies may have

reached its final stage,” Piotr

Maty, emerging market

FX strategist at Rabobank

wrote in a note to clients.

Currencies and emerging

market assets elsewhere fared

mixed thanks to rising com-

modity prices but also faced

by a steadier dollar as anxiety

over Donald Trump’s setback

on healthcare reforms that

had rattled global markets in

recent days waned.

China’s yuan weakened

0.2% and mainland stocks

fell 0.4% on further signs

of tightening liquidity after

the Chinese central bank re-

frained from injecting short

term funds into the banking

system for the third straight

session.

LSE may not sell French clearing unitBloombergLondon

London Stock Exchange Group probably won’t fol-low through on the sale of

its French clearinghouse even though the buyer, Euronext, still wants to acquire it, accord-ing to people familiar with the discussions.

LSE agreed to sell the Paris-based clearing unit as part of an eff ort to convince European reg-ulators to approve its merger with Deutsche Boerse.

But the German fi rm’s planned takeover has since all but col-lapsed, likely nixing plans for the €510mn ($553mn) sale of LCH.Clearnet, said the people, who asked not to be named because the conversations were private. An offi cial regulator veto of the bigger deal is due as soon as this week.

Euronext has been looking to transform itself with deals including Clearnet, though it

would have faced a much bigger rival – Deutsche Boerse’s takeo-ver of LSE would have created the region’s biggest exchange com-pany had their deal succeeded.

“They need something big and bold,” Peter Lenardos, an analyst at RBC Capital Markets in Lon-don, said of Euronext. “They need to fi nd a compelling clearing strategy.”

A spokesman for LSE declined

to comment. A spokeswoman for Euronext confi rmed Tuesday that the company is still a willing buyer of Clearnet.

Euronext runs markets in France, the Netherlands, Bel-gium and Portugal, but it lacks a derivatives clearinghouse, which holds collateral and monitors risks to prevent a default from spinning out of control. The ex-change company accounts for

about 50% of Clearnet’s revenue as its biggest customer.

Euronext’s hopes to buy Clear-net are “clearly diminishing,” but there’s a chance Clearnet’s man-agement and minority share-holders could put pressure on LSE to complete the deal, Rosine Van Velzen, an analyst at ING Bank, said in a March 8 report. LSE is majority owner of LCH.

Even though Clearnet’s sale currently depends on the com-pletion of the LSE and Deutsche Boerse deal, Euronext Chief Ex-ecutive Offi cer Stephane Boujnah has said he wants to buy the unit regardless.

Boujnah has also said he’s prepared in any event to use the company’s wallet to reshape the fi rm – Euronext bought a stake in equity clearinghouse EuroCCP for €13.4mn late last year.

If Euronext moves its equity clearing to EuroCCP, Clearnet would miss out on revenue that accounted for about 33% of its 2016 sales, according to analysts at UBS Group.

LME hit by regulatory delaysto proposal to slash marginsReutersLondon

Regulatory delays to a proposal to slash initial clearing margins by the London Metal Exchange

(LME) has dealt another blow to the ex-change’s ability to fend off competition from US rival CME Group, whose mar-gins are sharply lower.

The LME, fi ghting declining vol-umes and complaints from its mem-bers about higher trading fees, has seen steep losses to the CME in the copper market early this year.

In January alone the average daily volume (ADV) for CME copper futures contracts surged by 22% while the ADV for LME copper lots slid by 12%. The LME is the world’s oldest market for industrial metals and still hosts the majority of trading but has seen its dominance eroded in recent years.

There are a host of reasons why speculators have gravitated to the CME in copper, including a more complex futures market structure at the LME, but initial margins is a major one, bro-kers and industry sources said.

Customers trading on fi nancial ex-changes have to put down an initial margin, in cash as a guarantee that they will fulfi l their contract obligations.

“Everyone is fi xated on costs these days, so that (a cut in margins) would be a material change to the market,” said the head of metals at a top LME broker, who declined to be named.

“For the LME, when you are compet-ing with CME in copper that could be signifi cant.”

It was unclear for the reason for de-lays in regulators approving the LME’s plans to cut margins, which the ex-change had hoped to introduce last autumn. Both the Bank of England and the European Securities and Markets Authority (ESMA), which regulate the exchange’s clearing house, LME Clear, declined to comment.

But two industry sources said

progress on the proposal had stalled with European Union regulators.”With the current uncertainty about Brexit, the UK doesn’t seem to be at the top of their shopping list,” one source said, referring to European regulators.

The LME said last August it had hoped to make “signifi cant”, cuts to initial margins, without giving exact fi gures.

Those costs could be lowered by be-tween 20 and 30%, industry sources said, which would be most important

for top metals copper and aluminium.“It’s frustrating to us on this side of

the fence,” said Michael Overlander, chief executive at broker Sucden Fi-nancial, one of nine top-tier LME members allowed to trade in the open outcry ring.

Initial margins for one lot of cop-per at the LME are $12,800 while for an equivalent amount of copper on the CME they are $6,834, according to the exchanges.

A key reason why LME margins are

high is it has to make calculations based on a two-day liquidation period while for the CME it is only one-day.

But LME brokers have a partial ad-vantage in that they can off set short and long positions when fi guring how much cash they have to provide the clearing house.

The LME, owned by Hong Kong Ex-changes and Clearing, said in a state-ment that the changes were still subject to “fi nal regulatory approval” but did not give details. The LME announced

its plans to reduce initial margins at the same time last August when it said it would cut fees for short-dated trades, which market sources said was an at-tempt to halt a slide in trading volumes.

Volumes on the 140-year-old LME have come under pressure since trading fees jumped an average of 31% in Janu-ary 2015.

LME trading volumes dropped an overall 7.7% in 2016 to 156.5mn lots while they are up 0.2% in the fi rst two months of 2017.

Traders stand outside the open outcry pit following a trading session at the London Metal Exchange. Regulatory delays to a proposal to slash initial clearing margins by the LME has dealt another blow to the exchange’s ability to fend off competition from US rival CME Group, whose margins are sharply lower.

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

89.60

66.20

9.57

19.68

10.45

9.76

76.20

79.00

147.00

68.30

44.50

67.50

61.90

102.40

21.40

39.00

9.77

135.90

8.60

221.00

30.00

71.00

99.50

18.96

14.30

15.10

167.70

98.90

80.60

43.10

14.65

110.70

68.20

52.50

27.70

15.90

17.20

31.00

23.39

34.50

35.45

21.00

14.50

35.00

4.19

1.69

4.36

0.00

-0.48

-2.11

-0.26

0.00

0.68

0.44

2.18

0.00

-2.37

-0.19

-0.05

-4.88

2.52

-0.07

0.12

0.50

0.00

0.00

-0.10

-0.73

0.70

0.80

1.02

-1.10

-0.74

-1.03

0.34

1.56

4.92

0.38

0.54

0.00

1.78

0.16

1.26

1.47

2.16

3.45

0.83

0.00

417

12,610

5,793,247

123,821

100,053

2,312

101,747

8,268

369,995

57,959

4,819

100,592

81,135

104,683

125,182

3,600

65,726

49,988

1,155,400

9,861

-

117,963

93,018

460,953

1,985,921

333,123

17,806

114,299

1,094

458,103

28,364

122,305

401,116

114,194

205,651

1,132,308

1,300

294,482

371,831

481,280

550,269

28,608

111,793

-

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

22.69

21.86

5.90

0.00

12.49

23.90

16.50

23.08

21.23

12.55

25.09

12.40

28.16

68.25

13.45

28.50

32.46

35.59

37.29

16.40

55.25

22.64

33.58

21.30

13.50

28.01

27.49

55.65

129.35

19.30

55.73

38.00

7.74

19.17

37.52

17.71

12.83

33.15

31.32

115.29

18.19

67.99

96.40

7.68

4.04

93.95

19.61

12.05

18.01

24.22

16.50

30.96

140.00

61.73

23.23

18.35

13.44

29.15

20.41

12.17

14.12

50.09

13.35

10.60

6.75

31.52

11.91

69.75

10.35

29.79

51.59

16.16

29.21

0.00

35.16

5.75

22.07

13.30

15.89

14.50

40.62

31.62

20.39

129.17

35.30

6.79

45.31

8.74

20.43

20.70

10.55

19.39

18.03

15.89

27.94

106.56

11.09

1.11

1.39

-0.51

0.00

0.73

0.00

-0.12

-3.35

1.87

0.00

0.36

0.40

-1.47

2.59

0.37

1.50

-0.12

0.54

0.21

1.80

0.45

-0.26

0.84

0.71

0.00

0.65

0.33

1.63

-0.93

1.31

0.87

-0.26

0.65

0.84

1.24

0.17

-0.23

0.45

1.66

-0.17

-0.60

-0.95

0.07

1.72

4.94

-1.91

-0.36

0.00

1.12

0.83

0.30

0.98

0.23

-0.36

1.84

0.00

1.13

0.55

2.05

1.59

-0.21

0.08

1.14

0.19

0.75

2.44

1.97

0.00

-2.36

6.77

0.17

1.06

0.59

0.00

0.66

0.00

-0.36

0.38

0.57

-2.82

1.70

-0.44

1.19

2.69

0.54

0.74

0.11

0.11

0.15

-0.67

1.15

0.00

0.45

0.70

0.72

1.24

0.18

76,618

1,161,353

3,682,026

-

1,309,778

127,541

225,456

999,551

153,078

-

125,444

1,156,616

230,738

289,492

346,801

379,767

171,207

24,964

230,920

745,430

74,885

843,177

195,250

306,388

-

161,978

125,505

51,993

32,237

60,311

206,836

65,873

438,239

458,381

472,657

124,776

265,475

63,149

398,879

37,252

708,627

272,154

4,090,978

3,538,630

973,610

273,194

120,908

176,332

502,545

350,354

697,107

541,639

12,431

6,226

489,147

36,867

153,574

72,930

1,180,286

3,136,220

389,959

68,627

362,971

38,569

135,605

1,445,332

939,958

-

737,023

3,621,414

65,877

186,957

7,266

-

303,968

-

307,138

40,921

86,221

1,243,288

81,005

237,285

508,611

58,792

245,314

763,629

49,397

1,030,768

119,868

551,382

236,275

-

239,144

676,733

187,504

11,069

114,577

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

Saudi United Cooperative InsBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath Cooperative & ReinsurAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ ShamsSahara Petrochemical Co

Herfy Food Services Co

8.00

18.15

18.37

14.54

16.95

15.23

9.70

14.88

69.25

27.50

28.57

27.70

16.21

26.70

26.07

15.00

63.08

20.74

34.14

15.78

8.68

17.09

59.94

40.85

23.35

12.60

31.27

14.48

79.93

2.70

-0.27

-0.81

0.69

0.59

0.00

0.62

0.34

0.80

0.36

4.04

0.00

-0.12

0.00

0.19

0.27

0.30

0.10

0.06

2.73

-1.03

0.35

0.67

1.74

2.10

1.29

-0.32

0.28

-0.08

3,499,602

395,772

270,519

84,902

369,781

-

521,451

29,442,924

140,632

253,808

1,599,586

-

596,021

36

66,573

811,569

2,097,501

219,371

1,165,843

1,095,555

762,881

173,335

87,327

305,008

1,848,715

186,207

375,983

743,722

12,720

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

99.00

67.00

315.00

106.00

176.00

325.00

44.50

216.00

40.00

49.50

570.00

305.00

460.00

670.00

450.00

242.00

250.00

50.00

41.50

82.00

700.00

94.00

28.50

130.00

0.00

48.50

830.00

600.00

110.00

0.00

36.00

385.00

32.00

55.00

51.00

790.00

110.00

88.00

53.00

59.00

240.00

0.00

83.00

210.00

37.00

188.00

164.00

1,220.00

29.50

90.00

495.00

55.00

72.00

80.00

95.00

0.00

130.00

182.00

88.00

86.00

132.00

97.00

0.00

80.00

370.00

390.00

50.00

60.00

41.00

51.00

400.00

97.00

640.00

32.00

90.00

216.00

38.00

134.00

64.00

100.00

0.00

60.00

104.00

250.00

455.00

0.00

445.00

46.00

510.00

89.00

1,080.00

280.00

0.00

40.00

100.00

335.00

495.00

52.00

265.00

77.00

45.50

51.00

21.00

46.50

200.00

49.00

52.00

0.00

96.00

22.50

58.00

51.00

240.00

40.00

65.00

57.00

124.00

91.00

28.50

154.00

0.00

74.00

520.00

56.00

0.00

0.00

3.08

-1.56

0.00

3.53

0.00

0.00

0.00

5.26

-2.94

0.00

0.00

-1.08

-1.47

-1.10

0.00

0.00

1.01

-1.19

1.23

0.00

1.08

-1.72

-1.52

0.00

-2.02

0.00

0.00

1.85

0.00

1.41

0.00

0.00

0.00

0.00

0.00

10.00

6.02

0.00

0.00

0.00

0.00

1.22

-4.55

-5.13

0.00

0.00

0.00

-1.67

0.00

0.00

0.00

-5.26

0.00

5.56

0.00

1.56

-5.21

-1.12

0.00

0.00

0.00

0.00

1.27

0.00

-4.88

0.00

-1.64

1.23

-8.93

0.00

1.04

-1.54

1.59

-1.10

2.86

0.00

1.52

0.00

0.00

0.00

-1.64

1.96

0.00

1.11

0.00

0.00

-2.13

2.00

-4.30

0.00

-1.75

0.00

0.00

-1.96

1.52

0.00

-1.89

-3.64

-1.28

2.25

-1.92

0.00

-2.11

0.00

3.16

0.00

0.00

2.13

0.00

0.00

0.00

0.00

1.27

-5.80

0.00

8.77

2.25

-3.39

2.67

0.00

-1.33

1.96

0.00

0.00

50

379,176

149,000

55,234

1,450

25,302

55,000

1,000

672,542

2,642,944

297,723

5

49,108

3,211,428

3,854

2,142,189

1,915,405

30,000

2,048,321

1,352,892

2,481

210,157

5,853,315

2,473,415

-

2,534,050

188,342

-

634,760

-

510,817

10

2,090,693

400

1,500

3,980

21,923

3,736,550

21,375

849,184

40,480

-

497,459

926,704

82,200

24,450

15,000

10

639,010

343,477

153

65,520

1,739,350

20,000

287,132

-

68,647

67,000

79,266

138,000

592,640

12,716

-

1,426,250

3,785

6,772

11,794,849

102,901

2,340,449

4,209,890

100,000

36,000

354,976

231,801

150,500

29,500

1,774,411

346,321

95,002

20,000

-

868,000

2,684,675

14,205

2,342,277

-

11,961

1,439,476

8,500

535,481

132,286

6,010

-

267,269

200,342

1,208,830

161,459

1,341,000

26,594

2,147

7,848,394

901,750

3,427,641

880,850

2,000

11,159,030

513,500

-

1,822,414

101,176

10,010

1,111,100

152,000

270,030

7,000

1,772,050

2,000

293,350

4,553,945

10

-

1,868,500

762,849

994,500

-

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

0.55

1.00

3.40

0.15

0.13

0.17

0.13

1.34

0.19

0.21

0.70

1.05

1.89

4.38

0.25

0.63

1.40

1.38

2.50

0.22

1.38

0.29

0.14

2.21

0.53

0.53

0.42

0.76

1.42

2.16

0.30

0.13

1.85

0.15

0.23

0.52

0.40

0.00

0.85

0.18

4.57

1.00

0.14

3.64

0.49

0.42

0.50

1.70

0.00

0.13

0.18

0.05

5.00

0.11

0.05

0.00

0.47

0.16

0.70

3.75

0.22

0.08

0.86

0.56

0.13

0.19

0.51

0.13

1.25

0.12

0.00

0.31

0.11

0.11

0.26

10.50

0.17

0.08

0.39

0.17

0.10

1.49

0.49

0.18

0.34

0.21

1.28

0.22

-1.44

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-5.28

0.00

0.00

0.00

0.00

0.00

0.00

-0.45

0.00

0.00

0.00

0.00

-1.48

0.00

-0.95

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.44

0.00

0.00

0.00

0.00

-1.65

0.00

0.00

0.72

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

0.00

0.00

0.00

-2.22

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

-5.56

0.00

0.00

0.00

11,091

-

-

10,600

-

2,000

-

-

-

-

-

-

50,000

-

-

-

-

-

-

498,406

-

2,000

181,354

-

92,033

-

203,000

-

283,288

-

-

-

-

-

50,000

-

-

-

-

632,700

-

-

7,118

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

243,750

-

-

-

112,800

-

-

1,600

-

-

-

-

17,848

-

-

-

-

738,929

-

-

-

-

-

-

150,000

-

-

-

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

0.38

0.15

0.09

0.23

0.00

0.53

0.28

0.06

0.75

0.15

0.19

1.04

0.12

1.46

0.44

0.09

0.07

0.31

0.55

0.21

0.18

0.07

0.88

0.18

1.13

0.09

0.20

0.19

0.78

0.05

0.66

0.25

0.00

0.00

0.00

-0.52

0.00

1.11

-5.46

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-5.49

1.47

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.18

1.00

-6.03

0.00

0.00

0.00

0.00

-

-

-

3,993,232

608,082

2,253,132

404,642

-

-

-

-

-

-

-

-

-

-

-

1,022,328

2,543,169

-

-

1,116,240

-

-

-

125

-

14,967

1,867,418

128,280

-

-

1,793

-

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 FujairahNational Bank Of Abu Dhabi

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

2.16

2.00

1.73

4.38

1.86

1.21

0.95

1.37

3.85

1.50

1.07

4.10

1.20

2.20

0.85

3.70

0.63

91.00

0.95

6.26

0.66

4.50

0.52

2.90

3.10

4.80

3.26

10.50

0.82

0.53

2.30

1.94

0.75

2.27

2.62

1.00

1.13

1.56

6.00

13.00

1.58

1.03

17.90

5.98

9.25

0.43

1.72

1.40

0.72

0.70

1.32

2.41

12.75

0.42

300.00

3.85

2.39

55.00

6.33

2.72

0.50

5.15

3.21

2.93

0.45

3.83

-0.46

0.00

0.00

1.86

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.77

-5.56

0.00

-1.56

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-9.94

0.48

0.00

-3.64

0.00

-5.37

0.00

0.44

1.55

-4.76

0.00

0.00

-6.25

0.39

0.00

-4.63

0.00

0.00

0.00

-2.27

0.00

0.00

0.00

1.45

0.00

-0.41

0.00

0.00

0.00

0.00

0.00

0.00

-1.09

0.00

-1.96

0.00

-0.31

-0.34

0.00

-1.79

2,327,015

-

-

510,372

-

-

-

3,698,722

-

-

2,787

-

-

58,858

31,311

-

4,248,598

-

-

-

-

-

-

202,500

-

-

30,000

962,672

-

2,234,116

-

1,403,778

-

5,602

329,393

6,744

-

-

1,500

2,324,124

-

25,938,357

1,676,853

-

100,000

4,561,768

-

14,359

-

932,849

-

15,164,343

-

-

-

-

-

-

76,164

-

200,000

-

4,349

74,500

111,121

144,702

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

0.09

0.00

0.00

0.36

0.23

0.00

0.00

0.21

0.00

0.00

0.68

0.12

0.12

0.17

8.60

0.28

0.00

0.59

0.71

0.14

0.00

0.78

0.00

0.40

0.00

0.00

`

0.28

0.00

0.42

0.55

0.14

0.00

0.08

0.84

0.73

1.30

0.15

0.44

0.36

0.38

0.45

0.10

0.00

0.84

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-3.94

0.85

0.00

0.00

0.00

0.00

0.00

-2.76

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-2.68

0.00

0.00

2.69

0.00

-0.98

0.00

-1.18

236,983

-

-

10,000

8,000

-

-

249,912

-

-

12,685

180,000

360,000

6,341,020

7,900

24,000

-

3,400

10,000

33,961

-

50,000

-

117,515

-

-

-

100,867

-

5,000

2,844

22,000

-

50,000

65,000

10,000

22,000

100,000

15,500

14,000

332,297

30,000

41,900

-

226,644

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

23.00

45.00

405.00

260.00

158.00

86.00

345.00

0.00

42.50

0.00

44.00

305.00

88.00

1,220.00

188.00

100.00

192.00

67.00

3,100.00

305.00

76.00

65.00

43.50

1,120.00

0.00

0.00

53.00

0.00

52.00

0.00

57.00

0.00

62.00

112.00

590.00

80.00

0.00

70.00

38.00

88.00

212.00

0.00

106.00

47.50

1,380.00

102.00

400.00

69.00

370.00

485.00

0.00

590.00

41.00

216.00

67.00

550.00

2,400.00

0.00

50.00

180.00

114.00

186.00

0.00

0.00

0.00

275.00

0.00

0.00

-1.22

-1.89

0.00

0.00

-2.82

0.00

0.00

0.00

0.00

1.67

0.00

0.00

0.00

0.00

0.00

-1.47

0.00

0.00

0.00

-1.52

0.00

1.82

0.00

0.00

-1.85

0.00

0.00

0.00

5.56

0.00

-1.59

9.80

1.72

0.00

0.00

0.00

-2.56

-1.12

0.95

0.00

-1.85

-1.04

0.00

0.00

0.00

-1.43

-1.33

0.00

0.00

-3.28

0.00

0.00

0.00

0.00

0.00

0.00

-1.96

1.12

-1.72

1.09

0.00

0.00

0.00

0.00

511,000

1,394,295

792,090

10,442,258

219,999

20

2,161,459

-

230,902

-

1,000

265,450

8,000

9,799

3,255,516

6,430

2,000

310,100

298,594

21,410

4,000

790,200

880,920

1,562

-

-

2,210,532

-

2,500

-

15,370,006

-

27,930

8,950

91,409

100,000

-

945,948

12,938,281

1,353,800

20,030

-

795,100

490,990

500

7,294,882

25,592

27,249,854

22,500

49,182

-

4,680,513

1,976,100

6,500

16,622

17

1,350

-

23,611,769

292,098

381,300

1,288,350

-

-

-

68

KUWAIT


LATEST MARKET CLOSING FIGURES

BUSINESS5Gulf Times


CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

European markets advance asUK prepares to trigger BrexitAFPLondon

European stock markets and Wall Street advanced yesterday as Britain prepared to trigger

Brexit and investor concern eased over whether Donald Trump will be able to push through his economy-boosting agenda after last week’s healthcare de-bacle.

But the dollar struggled to bounce back against major rivals with uncer-tainty surrounding the pace of future US interest rate rises.

“Nothing much happened this af-ternoon, the market caught between Monday’s Trump-dive and tomorrow’s Article 50-triggering,” said Spreadex analyst Connor Campbell.

Equities across the world mostly slid on Monday after Trump’s repeal of Obamacare fell at the fi rst hurdle as he failed to garner enough votes from his own Republican party, which controls both houses of Congress.

The failure fuelled worries Trump would not be able to drive his much-vaunted tax-cutting, infrastructure

spending, deregulation plans, with analysts pointing out it would leave the administration with less cash to pay for such measures.

Hopes for his stimulus plan helped fuel a surge in global markets and in the dollar since the November election.

European markets meanwhile also worry about the fallout from London launching Britain’s exit from the Euro-pean Union.

London’s FTSE 100 gained 0.7% at 7,343.42, Frankfurt’s DAX 30 was up 1.3% at 12,149.42 and in Paris, CAC 40 rose 0.6% at 5,046.20 at the close yes-terday.

“Whether the momentum can be maintained remains to be seen howev-er as investors remain cautious ahead of the UK government’s likely trigger-ing of Article 50 tomorrow,” said Andy McLevey, head of dealing at stockbro-ker Interactive Investor.

Prime Minister Theresa May today is set to formally notify the European Union of Britain’s intention to leave the bloc in a process that has caused a steep plunge in the value of the pound against the euro and dollar.

The dollar hit at four-month lows

against the yen yesterday, while the euro has been buoyed by upbeat data out of the eurozone.

Weighing on the greenback were comments from the head of the Chi-cago branch of the Federal Reserve Charles Evans that it might only need to raise borrowing costs twice this year considering an uncertain outlook for infl ation and Trump’s big-spending and tax-cutting agenda.

The yen has climbed more than 7% against the dollar since the start of the year while the single currency is up about 5%. Even the pound, which was battered last year by Britain’s vote to leave the European Union, has risen 5% from its January lows.

The US unit had already been under pressure after Fed boss Janet Yellen said this month that the pace of rate rises would be slower than initially ex-pected.

“The market will be interested – or hoping (vainly) for new insights from Fed chair Yellen’s address” later yesterday, said David de Garis, director of fixed income, currencies and commodities at National Aus-tralia bank.

Pedestrians walk past the London Stock Exchange. The FTSE 100 rose 0.7% to 7,343.42 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

142.60

64.92

81.94

125.19

29.55

88.65

90.54

70.05

49.21

34.15

89.30

107.65

42.43

35.55

63.18

34.01

146.79

174.22

112.76

164.26

190.87

129.30

56.37

112.58

177.12

228.82

78.27

81.62

92.63

121.21

1.22

-0.28

0.84

-0.48

0.36

1.61

0.06

0.56

0.14

-0.10

0.39

1.29

0.26

0.45

-0.02

0.04

-0.06

0.26

0.34

-0.21

0.23

-0.15

0.79

0.67

0.58

1.48

0.86

1.29

1.22

0.17

12,313,933

6,543,151

4,365,783

1,973,349

10,611,245

7,157,011

2,512,964

2,560,937

5,982,353

7,333,094

1,906,985

2,287,465

5,497,406

5,532,416

5,296,685

5,699,762

1,502,967

1,335,697

1,518,402

2,370,941

575,502

984,436

2,805,726

1,047,260

645,556

1,891,171

1,639,406

1,085,499

1,304,369

369,189

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

1,703.00

293.50

5,130.00

235.40

3,933.00

210.25

1,000.00

4,006.00

1,135.00

1,518.00

191.20

193.00

360.20

752.40

1,056.00

1,496.00

1,240.00

976.50

4,734.50

2,402.00

3,081.00

264.90

635.50

0.00

593.00

420.50

2,209.50

2,111.00

242.20

753.50

3,220.00

0.00

1,564.00

7,320.00

7,170.00

1,722.50

2,932.00

2,097.00

656.00

8,675.00

218.20

4,289.00

1,013.50

1,936.00

475.40

772.00

332.30

3,024.00

66.79

247.50

1,037.00

325.20

3,008.00

210.00

271.80

535.00

3,928.00

3,843.00

820.50

642.00

3,827.00

655.30

1,293.00

562.00

311.60

1,677.00

369.50

1,562.00

1,624.00

998.50

315.40

338.60

2,306.00

7,065.00

2,801.00

1,507.00

2,025.00

218.30

4,568.00

553.00

1,735.00

2,331.00

324.25

599.00

5,219.00

453.45

1,227.00

3,225.00

546.00

228.10

650.50

874.50

533.00

4,960.00

2,612.00

1,604.00

0.00

798.50

1,218.50

1,995.00

700.50

0.00

0.59

1.10

5.06

-0.59

-0.13

-0.17

-0.60

-0.29

1.25

0.00

0.66

0.16

1.75

4.07

-0.09

-0.60

-0.24

-0.05

0.28

-0.54

0.62

-1.08

0.16

0.00

0.08

-0.12

1.68

1.59

1.42

1.41

2.81

0.00

0.19

-0.42

-0.07

1.26

-0.10

0.43

3.63

0.35

0.09

1.35

-0.15

0.62

0.59

0.92

-0.69

0.33

-0.24

0.04

-0.67

-0.31

2.24

0.24

-1.09

0.28

0.08

0.50

3.47

-0.23

0.18

1.38

0.15

-1.23

1.91

0.00

0.79

0.77

-0.49

-1.33

0.41

0.53

0.37

0.71

1.38

-0.07

0.40

-0.55

1.47

-2.98

-0.17

0.00

-0.22

-0.58

-0.17

1.24

2.51

-0.19

0.37

1.74

1.48

-0.29

1.91

-0.29

-1.43

0.94

0.00

0.88

1.25

0.81

-0.14

0.00

6,183,480

9,202,122

1,241,794

7,738,079

358,435

47,398,613

1,762,276

1,670,307

853,900

708,980

29,613,689

13,622,104

6,256,042

11,628,627

1,034,192

2,439,062

2,020,927

1,963,049

2,548,531

577,411

395,977

4,911,513

2,858,153

-

3,846,692

2,783,193

3,715,787

4,409,200

11,760,133

3,667,905

4,505,133

-

2,626,856

973,269

517,149

4,115,286

229,029

1,748,031

4,568,570

264,455

10,855,503

1,333,863

7,707,969

1,392,731

1,370,713

1,691,164

9,380,726

392,157

230,556,818

11,541,906

2,013,804

10,966,702

914,685

9,541,234

3,441,101

7,452,541

399,292

464,628

4,099,284

3,353,307

2,057,378

16,695,265

443,897

2,654,967

36,319,329

7,356,662

13,752,631

865,470

1,169,021

1,547,081

3,776,972

5,258,188

2,467,286

211,106

1,128,394

2,764,930

1,403,242

17,799,578

1,375,362

2,490,030

1,489,673

493,805

15,124,431

4,002,252

2,376,946

26,666,863

9,802,296

438,918

4,637,552

35,975,714

9,740,353

2,843,128

10,473,907

2,057,602

733,949

1,748,534

-

4,568,748

6,031,980

919,589

1,089,074

-

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

9,866.00

1,614.50

4,446.00

2,414.00

1,511.00

2,093.50

465.10

217.20

2,974.00

5,846.00

520.20

11,990.00

1,232.00

687.20

18,745.00

1,673.00

6,218.00

3,016.00

8,677.00

1.04

0.81

0.79

0.63

2.30

1.23

0.89

-0.55

0.92

0.97

2.02

2.92

3.05

3.43

1.13

1.46

-1.75

1.48

1.32

Volume

1,033,100

6,835,900

1,418,000

1,369,300

2,194,800

4,293,000

17,003,000

115,139,000

1,353,400

1,460,100

6,527,000

1,472,000

19,632,000

17,577,000

443,300

3,423,700

6,873,800

6,934,800

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

Jx 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 LtdFuji Heavy Industries Ltd

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

1,089.50

6,289.00

1,134.00

621.40

5,267.00

1,935.50

350.20

1,622.50

4,203.00

3,403.00

34,750.00

3,700.00

1,714.50

4,390.00

1,095.50

612.40

1,103.00

2,114.50

702.20

713.90

868.00

22,955.00

16,195.00

5,177.00

6,366.00

1,896.50

8,139.00

4,841.00

1,649.50

1,652.00

6,198.00

2,062.50

1,588.00

2,950.00

7,500.00

15,860.00

1,283.00

5,069.00

4,228.00

3,247.00

523.00

2,580.50

4,697.00

4,980.00

2,270.00

2,428.50

2,408.00

11,315.00

0.00

1,006.50

1,513.00

4,554.00

3,605.00

5,463.00

3,937.00

3,726.00

439.70

1,860.50

706.00

7,932.00

210.90

709.80

2,593.50

4,205.00

2,704.50

2,941.50

1,572.00

1,703.00

4,272.00

44,880.00

10,530.00

1,514.50

2,680.50

9,779.00

33,730.00

2,465.00

26,635.00

5,974.00

1,524.50

3,492.00

3,687.00

1.54

1.99

0.89

2.42

1.39

1.12

0.37

0.59

1.20

0.38

-0.11

1.31

2.21

0.71

1.81

1.37

3.18

1.88

1.39

1.32

2.30

0.95

0.34

1.33

0.58

1.93

1.78

1.23

1.92

1.54

1.21

1.93

1.89

0.25

0.67

1.73

0.27

0.82

1.83

1.50

-0.76

1.06

1.25

1.01

0.71

1.48

2.16

1.85

0.00

1.28

0.87

1.74

0.78

1.15

1.44

0.03

0.39

2.00

1.44

0.89

1.35

1.92

1.61

2.21

1.08

0.74

-0.29

1.31

0.78

2.12

3.08

1.20

2.08

2.30

3.06

1.75

-0.93

0.78

2.08

0.90

1.60

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

3.78

32.35

3.91

6.09

5.09

32.05

11.20

96.90

3.98

6.38

24.05

22.15

86.80

22.65

6.28

17.80

21.90

14.14

18.50

10.48

11.10

81.30

9.31

8.33

6.69

3.08

20.60

158.40

48.20

5.00

0.62

1.03

0.66

1.39

-0.16

0.18

0.05

1.27

0.79

1.05

-0.67

0.70

-0.22

1.13

-0.22

0.23

0.14

1.20

-0.38

1.09

0.49

0.76

-3.03

1.67

0.00

0.00

0.70

0.00

29,873,773

872,631

219,425,017

17,266,327

9,594,012

7,005,995

4,956,283

4,428,997

11,023,720

210,272,874

25,732,878

3,242,163

11,181,247

35,253,407

88,104,374

5,912,667

11,421,405

5,223,224

23,919,178

27,723,836

5,420,000

3,442,607

77,658,082

5,298,384

1,925,289

7,402,059

2,549,029

618,522

3,575,104

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

15.50

195.40

63.30

0.00

5.15

3.76

43.35

9.66

5.77

43.80

67.20

13.82

114.40

78.45

226.00

67.25

0.26

0.21

0.88

0.00

0.59

1.08

0.93

0.21

0.35

0.69

0.30

0.00

0.00

0.84

0.53

-1.03

9,657,703

2,145,042

13,833,890

-

173,418,267

16,274,096

3,743,268

8,603,250

79,066,383

31,597,563

2,816,735

3,782,840

4,154,546

1,272,777

14,412,946

3,874,819

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

530.35

1,534.85

507.55

265.10

3,987.30

455.70

480.20

88.80

472.40

2,429.95

698.60

282.10

1,245.75

148.80

196.70

186.90

164.90

5,974.25

1,277.00

1,455.70

1,544.25

859.45

280.50

1,035.15

1,404.25

88.50

277.00

1,504.10

903.10

189.60

3,326.90

1,420.20

859.90

1,065.70

374.80

2,637.75

290.35

594.15

293.80

22,986.30

340.75

645.95

168.55

173.90

2,824.85

502.80

1,057.85

228.35

320.85

1,417.20

2.68

0.45

0.70

1.49

0.91

-2.79

0.78

1.72

1.65

0.74

1.07

0.95

-0.43

1.05

0.95

-1.06

0.95

-0.19

0.89

-0.14

0.02

-1.34

-0.39

0.61

0.15

1.03

1.41

1.99

0.48

0.48

-0.49

0.73

0.91

0.31

-0.24

0.22

-0.39

0.35

0.51

0.75

0.61

0.44

0.33

0.93

0.59

3.21

1.43

0.33

0.49

1.46

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

20,655.28

2,353.70

5,863.01

15,591.63

49,458.88

64,505.25

7,343.42

5,046.20

12,149.42

10,389.00

19,202.87

1,544.83

24,345.87

5,860.41

1,301.60

29,409.52

9,100.80

3,157.82

32,966.11

5,541.20

+104.30

+12.11

+22.63

+85.41

+145.89

+196.86

+49.92

+28.77

+153.35

+86.10

+217.28

+20.44

+152.17

+71.18

+0.03

+172.37

+55.60

+30.94

-16.66

-25.93

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

10,461.81

6,872.77

7,051.84

1,377.56

5,543.09

4,469.66

3,446.97

+33.28

+20.64

+19.58

-5.15

-60.71

+4.38

-7.42

“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.”

940,600

6,660,600

1,459,000

19,075,600

21,301,000

2,520,200

3,282,400

36,415,000

7,546,200

8,033,900

4,881,700

661,300

1,333,400

3,408,400

2,117,500

5,903,000

10,470,100

4,389,000

3,399,200

7,789,100

65,068,200

6,256,400

897,400

559,100

1,054,300

1,691,600

3,469,800

895,400

2,464,300

2,273,800

7,541,700

2,269,800

5,299,200

4,826,300

4,814,400

1,814,100

659,700

3,286,800

1,707,800

1,075,800

2,775,100

32,440,400

3,250,300

1,651,600

3,896,900

1,645,400

3,919,000

2,582,800

1,096,500

-

5,334,000

7,024,500

3,153,400

5,905,300

1,250,700

1,767,200

5,118,600

6,373,000

2,464,500

14,044,000

5,724,700

154,953,300

19,416,200

1,738,100

4,524,000

3,793,200

2,060,000

3,928,000

6,125,900

1,723,700

305,900

1,234,500

2,403,400

1,297,600

1,501,100

320,500

4,572,200

2,155,300

834,300

5,437,500

3,413,500

1,736,692

2,559,323

2,213,793

7,993,264

104,473

10,598,587

4,772,630

6,839,197

3,177,824

607,599

2,866,889

23,276,689

5,398,611

11,215,801

3,475,744

10,223,118

1,494,601

887,097

896,215

698,769

2,011,582

4,785,067

7,572,904

2,469,586

1,189,304

20,022,779

22,926,382

3,956,593

603,541

10,490,114

354,544

3,017,933

954,126

654,040

3,492,011

169,528

5,808,426

803,862

5,770,753

13,390

2,189,546

1,220,326

3,696,948

29,388,283

109,898

20,160,541

498,608

1,476,110

2,136,511

323,091


BUSINESS6

BUSINESS


Huishan misses payments; key executive goes missingReutersShanghai/Hong Kong

China Huishan Dairy Holdings Co, which saw $4bn wiped off its shares in a single day last week,

said yesterday it had missed loan repay-ments and lost contact with a key exec-utive in charge of its fi nances and cash.

The country’s largest integrated dairy fi rm denied reports of fraudulent in-voices and stolen cash, but laid out the depth of its unfolding crisis in a lengthy statement, including that almost all of the shares owned by its controlling shareholder had been pledged as col-lateral.

Huishan, founded in 2009, grabbed headlines last year when it sold and leased back part of its herd, but its most recent troubles have laid bare risks of excess leverage and fi nancial engineer-ing in unexpected quarters of corporate China.

Huishan has been on the backfoot since a December attack by US-based short-seller Muddy Waters.

But it was months after that, on Fri-day, that its shares crumbled 85%, and rumours swirled.

After fi nding it had been “late in some bank payments”, Huishan’s chairman Yang Kai asked the regional Liaoning government for support and met with 23 creditor banks last week to ask for loans to be rolled over.

While creditors had shown support then, the sudden share drop had raised concerns they may no longer back Hu-ishan.

“Given the signifi cant decrease in share price of the company and the recent media reports, there is no as-surance that such banks’ (supportive) views would remain unchanged,” it said.

Huishan’s controlling shareholder Champ Harvest, which owns 70.8% of its stock and is majority held by Yang, has pledged nearly all of the shares to secure loans.

These include a HK$2.14bn ($275mn) loan with Ping An Bank last year backed by 3.4bn Huishan Dairy shares while a further 6bn shares were used to secure loans and margin fi nancing for Champ Harvest and other fi rms controlled by Yang. Ping An declined to immediately comment. “Anybody holding those shares as collateral will be concerned given the drop in share price because it

has a direct impact on the loan recover-ability if the underlying business is not sound,” said Ted Osborn, a Hong Kong-based partner at PwC who specialises in debt recovery.

Its current woes are a long way from the fanfare of its $1.3bn IPO in 2013 when Huishan sold itself as China’s largest ‘grass-to-glass’ dairy fi rm, pro-ducing the alfafa that the cows eat all the way to the milk – a structure touted to off er better control over quality.

The company operates 82 farms in

Liaoning province but is much small-er than rivals such as China Mengniu Dairy, generating less than a tenth of the revenue.

Huishan said the Liaoning govern-ment had proposed an action plan to solve any overdue interest payments within two weeks and to help bolster the group’s liquidity within a month amid an increasingly challenging envi-ronment.

The company also said it had not been able to reach one of its executive

directors in charge of the fi rm’s fi nances and cash since March 21, when she in-dicated work stress and said she would take a leave of absence and did not wish to be contacted.

The executive, Ge Kun, had overseen the group’s treasury and cash opera-tions and had managed its relationships with the company’s main bankers.

The fi rm refuted media reports that Bank of China had conducted an audit of the fi rm and found a large number of forged invoices and that the fi rm’s con-

trolling shareholder had misappropri-ated up to 3bn yuan.

A Shanghai-based spokesman for Bank of China said he was unable to im-mediately comment on the matter.

In December, short-seller Muddy Waters questioned Huishan’s profi ts and said it had infl ated spending on its cattle farms to artifi cially raise capital expend-iture fi gures. Huishan’s shares, halted since March 24, will continue to be sus-pended until the board can get more clarity on the fi rm’s fi nancial position.

Products of Huishan Dairy are seen at a supermarket in Shenyang, Liaoning province. China’s largest integrated dairy firm denied reports of fraudulent invoices and stolen cash, but laid out the depth of its unfolding crisis in a lengthy statement, including that almost all of the shares owned by its controlling shareholder had been pledged as collateral.

S Korea raises 2016 growth fi gure to 2.8%AFPSeoul

Asia’s fourth-largest economy grew slightly more than previously thought in each of the past two years, South

Korean authorities said yesterday.The central Bank of Korea raised its fi g-

ure for the 2016 economic growth rate by 0.1 percentage points to 2.8%, saying the manu-facturing sector performed better than ear-lier estimated.

It also raised the 2015 fi gure from 2.6% to 2.8%, so that last year’s rise in gross domes-tic product (GDP) was unchanged from the previous year.

Decades of rapid growth saw the South rise from the ashes of the Korean War to be-come a member of the OECD group of lead-

ing economies, but expansion has slowed more recently.

Economic frustrations were among the factors underlying the giant anti-corruption protests that saw president Park Geun-hye impeached.

Per capita gross national income (GNI) came to $27,561 in 2016, up 1.4% from the previous year, the Bank of Korea said.

The manufacturing sector expanded 2.3% last year, it said, rather than the 1.7% fi gure it gave in January and the 1.8% in 2015.

Exports grew 2.1% in 2016, a reverse from a 0.1% contraction the previous year, while imports increased 4.5%, up from 2.1%.

South Korea issues its fi rst fi gure for the previous year’s growth in January.

It then revises it in March, and the fi nal statistic is given in the same month the fol-lowing year.

Credit Suisse to decide on capital raising soonReutersHong Kong

Credit Suisse Group will make a decision on its capital raising plans “as soon as pos-sible,” its chief executive said yesterday,

without giving specifi c details on the timing or the type of fund-raising.

The bank upped its net loss for last year to 2.71bn Swiss francs ($2.75bn) from 2.44bn.

This cut its common equity tier 1 ratio, a meas-ure of balance-sheet strength, heightening its need to raise capital.

Switzerland’s second-biggest bank has said previously that its current plan is to raise up to 4bn francs via an initial public off ering (IPO) of a minority stake in its Swiss banking division.

However, the bank is also considering a quick-fi re share sale at group level and its board of direc-tors is set to decide in April how to proceed, Reu-ters has reported, citing sources.

“The answer is as soon as possible,” said Tidjane Thiam at the bank’s annual investment conference in Hong Kong, in response to a question on when the bank would take a decision on capital raising and what options were under consideration.

“We understand that the market needs clarity on that and we are very keen to give it,” he said. “We are working diligently but as you can imag-

ine it’s a complex decision, we also wanted to take our time to make sure that we give a considered answer.”

Since taking over at Credit Suisse from Brit-ish insurer Prudential in mid-2015, Thiam has been on a cost-cutting drive while shifting the bank’s business towards wealth management and putting less emphasis on investment banking.

Asia has become the centre-piece of Thiam’s strategy to turn the bank around.

It has been one of the most aggressive foreign banks to expand its footprint in China, the world’s second-largest economy.

“We are bullish on China, always have been, al-ways will be, medium to long term.

That doesn’t mean that China is immune to cycles to the world economy or commodity cy-cles, but we think the fundamentals are extremely positive,” he said yesterday.

But in the near-term, Credit Suisse would con-tinue with its restructuring in the Asian equities business, which has weighed on the earnings of foreign banks due to tough market conditions, which will result in some reduction in headcount.

“The (equities) platform has to be of the size that’s commensurate with the demand today not with the demand in fi ve years or 10 years,” Thiam said. “We have done some restructuring in Q1 more in Q2. Hopefully after that most of it will be done.”

Evergrande vows to de-leverage in 2017 after borrowings jump 80%ReutersHong Kong

China Evergrande Group, sitting on corporate Chi-na’s second-biggest debt

pile, yesterday vowed to enhance debt control from 2017 by re-paying most of its high-interest loans, and said it was confi dent its leverage ratio will fall af-ter strong sales and an A-share backdoor listing this year.

The country’s largest home-builder said it has started a sec-ond round of strategic invest-ment fundraising, worth up to 20bn yuan ($2.91bn) and ex-pected to be complete in May, as part of a backdoor listing valued at 198bn yuan.

Evergrande in October said it would inject almost all of its property assets, held by a sub-sidiary, into ShenZhen Special Economic Zone Real Estate & Properties Group Co Ltd (Shen-Zhen Real Estate).

It later raised 30bn yuan as part of a fi rst round of fundrais-ing by selling 13.2% of shares in the subsidiary.

The buyers will eventually be entitled to ShenZhen Real Estate stock when the assets are trans-ferred.

But it is the size of Ever-grande’s debt, at $78bn as at the end of 2016, racked up during corporate and land acquisitions, that has captured investor at-tention.

Last week, Evergrande added to its debt with a $1bn seven-year bond that sold briskly due to its high yield of 9.5%.

That followed a $1.5bn dual tranche issued in the same week.

“Large debt comes with a large land bank... Evergrande has the largest land bank in China,” chief executive offi cer Xia Haijun said at an earnings briefi ng. “As our land bank appreciates, the high debt ratio is without risk.”

Xia said Evergrande will re-pay half of its perpetual capi-tal instrument – high-interest debt “disguised” as equity – in the fi rst half of 2016, and a total of two-thirds by the end of the year.

The instrument rose 49% last year to 112.9bn yuan.

It was not the fi rst time Ever-grande said it would reduce its perpetual capital instrument.

The developer said in 2015 it would repay over 10bn yuan that year yet the instrument grew larger.

Evergrande yesterday re-ported an 89% jump in 2016 core profi t to 20.81bn yuan due to a real estate market that saw a strong increase in sales prices and volumes.

Total borrowings rose 80% to 535.1bn yuan.

Total cash rose a similar de-gree to 304.3bn yuan, providing comfort to shareholders con-cerned about the debt.

Evergrande shares ended yesterday 2.9% higher, versus a 0.6% gain in Hong Kong’s benchmark stock index.

South Korea’s top refiner SK Energy’s main factory in Ulsan, about 410km southeast of Seoul. South Korea’s exports grew 2.1% in 2016, a reverse from a 0.1% contraction the previous year, while imports increased 4.5%, up from 2.1%.

Tencent takes 5% stake in Tesla: SEC fi ling

China’s giant Tencent Holdings

has taken a 5% stake in the Tesla

electric car company as it moves

to ramp up production, accord-

ing to an off icial filing yesterday.

Tencent paid about $1.8bn

for the small share of Elon

Musk’s company, according to

the document filed with the US

Securities and Exchange Com-

mission (SEC).

The Chinese technology

company runs WeChat, the

world’s most popular messag-

ing service, as well as many

mobile game platforms.

In a statement last week on

2016 earnings it mentioned

plans to expand its smartphone

games, and move into other

emerging technologies, includ-

ing cloud services.

Tesla, meanwhile, is planning

to launch a mid-priced version

of it’s all-electric car this year to

tap into a broader market.

The company forecast in

February that demand for its

cars would show strong growth

in the first half of this year, as

orders for some models hit a

record high, even while posting

a loss at the end of last year.Credit Suisse upped its net loss for last year to 2.71bn Swiss francs from 2.44bn francs. This cut its common equity tier 1 ratio, a measure of balance-sheet strength, heightening its need to raise capital.

BUSINESS13Gulf Times


BloombergNew Delhi

India is likely to give Bangladesh a credit line of at least $3.5bn for in-frastructure projects during Prime

Minister Sheikh Hasina’s state visit in April, as Beijing and New Delhi jostle for geopolitical infl uence in South Asia.

The credit line, which would be In-dia’s third to its neighbour, would go to-ward a variety of projects ranging from nuclear and liquefi ed natural gas power plants to ports, railways and the estab-lishment of special economic zones, according to a Bangladesh government document seen by Bloomberg. New Delhi and Dhaka will also sign a defence cooperation agreement and various memorandums of understanding relat-ing to hydro projects in Bhutan, ship-building and upgrading border posts, according to a separate document.

India is trying to strengthen relation-ships with neighbouring states such as Bangladesh and Sri Lanka as China con-tinues to court South Asian nations by pledging large sums of money for port and infrastructure projects that New Delhi views with suspicion. In a sign of its deepening ties with Beijing, Bang-ladesh bought two submarines from China last year.

The government of Indian Prime Minister Narendra Modi, who an-nounced a second $2bn line of credit when he visited Bangladesh in 2015 af-ter an earlier $800mn credit line, has tried to integrate the region’s econo-mies with road, rail and shipping routes.

But even as India seeks to unite its neighbours against its arch-rival Paki-stan, New Delhi’s fi nancial fi re power still pales in comparison to the funds available to Chinese President Xi Jin-ping, who last year pledged $20bn in low-cost loans for infrastructure projects, in addition to existing large investments in Pakistan and Sri Lanka.

“Ideally, they would like to coun-ter that, but the Chinese off er is such a huge amount, they can’t possibly match that,” said Harsh Pant, an international relations professor at King’s College London.

Hasina’s visit, starting on April 7, is her fi rst in seven years, according to India’s foreign ministry, and comes against the backdrop of a fresh surge in Islamic State-linked attacks across

the country. Bangladesh’s growth is expected to increase to 7.2% this fi scal year from 7.1% last fi scal year according to government estimates.

“India will give Bangladesh as much as $5bn, which is a new development,” Mashiur Rahman, economic aff airs ad-viser to Hasina, said by phone. “There are many areas to look at, but economic cooperation is the most substantive. Joint investments and joint entrepre-neurship will open up the new direc-tions of cooperation.”

A spokesman for India’s Ministry for External Aff airs, Gopal Baglay, said he could not comment on the issue. Oil

minister Dharmendra Pradhan said he expects some agreements to be signed after the meeting between the two lead-ers. “We are discussing several energy projects with Bangladesh, such as LNG and supply of petroleum products.”

The credit line would include $940mn for the development of a com-ponent of the Rooppur nuclear power plant, $350mn for a multipurpose ter-minal at Bangladesh’s Payra port and $177mn for a power transmission line between India’s Jharkhand and Bang-ladesh’s Bogra. It would also include $500mn for a new railway line from Bogra to Sirajganj and $157mn for a solar

power project. It would also see India provide $550mn for special economic zones, including at Bangladesh’s Mir-sorai and Payra.

The two countries would agree to upgrade some customs posts, as well as establish border markets for vendors, along their 4,096-kilometre boundary, and will sign memorandums of under-standing relating to shipping routes and the operation of satellites, according to the documents. The $3.57bn fi gure list-ed in the documents does not include funds related to upgrading the border posts.

India and Bangladesh were also ex-

pected to sign MoUs relating to ship-building and a joint investment in a hy-dro power project in Bhutan.

Seeking to make India a global power, Modi has made progress in boosting ties with Sri Lanka and Bangladesh, said Pant, the professor. Both coun-tries joined India in boycotting a meet-ing of the South Asian Association for Regional Cooperation last year, which was set to be held in Pakistan. And on March 23, Bangladesh signed a deal to join a South Asian satellite project be-ing launched by India – a project that includes all South Asian nations except Pakistan.

As China looms, India set to off er billions to Bangladesh

India’s Prime Minister Narendra Modi at a press conference in New Delhi. India is likely to give Bangladesh a credit line of at least $3.5bn for infrastructure projects during Prime Minister Sheikh Hasina’s state visit in April, as Beijing and New Delhi jostle for geopolitical influence in South Asia.

Aviva eyes sale of Friends Provident for up to $700mnReutersHong Kong

Aviva Plc is exploring a sale of its Friends Provident International unit, which

off ers life assurance and invest-ment products, in a deal that could raise between $500mn and $700mn, a source with direct knowledge of the matter said.

The British insurer has re-ceived preliminary interest from about half a dozen Chinese fi rms and European funds for the busi-ness, said the source, declining to be named as the process was not public.

An Aviva spokeswoman de-clined to comment.

The news was earlier reported by the Wall Street Journal.

Friends Provident provides life assurance and investment products to global expatriate and affl uent domestic customers in Hong Kong, Singapore, United Arab Emirates and other selected markets, according to informa-tion available on its website.

The company, domiciled in the Isle of Man, serves over 160,000 customers and employs more than 500 people worldwide.

Aviva, which off ers life and general insurance such as motor and home cover, took control of Friends Provident as part of its $8.8bn all-share takeover of rival Friends Life in 2015.

The insurer earlier this month generated a forecast-beating annual profi t, boosted by growth in general insurance and asset management, and said more of its growing cash pile would be handed back to shareholders in 2017.

Chief executive Mark Wilson said at the time that the Friends Provident business was under review.

According to the Wall Street Journal report, which cited peo-ple familiar with the situation, Chinese conglomerates Fosun Group and HNA Group were among those evaluating the Avi-va unit.

Both companies declined to comment to the newspaper.

The Reuters source said Chi-nese fi rms and some European private equity funds would be the likely bidders for the asset, though some of the prospective Chinese buyers may be deterred by Beijing’s capital outfl ow curbs aimed at propping up the yuan.

Chinese insurers have snapped up both domestic and overseas assets worth billions of dollars over the past two years to counter falling investment yields, a sharp drop in the yuan currency and sluggish stock markets at home.

The sale of Aviva’s Friends Provident unit, if closed, will add to the growing list of insur-ance M&As in Asia.

Market share or higher prices? The Saudi, Russia oil dilemmaBy Clyde RussellSingapore

Saudi Arabia and Russia are likely to dis-

cover that when pursuing two incompatible

goals, the one deemed less important will

ultimately be sacrificed.

The world’s top two oil exporters appear

to be chasing both higher crude prices

through their curbs to production and

market share by increasing exports, at least

in Asia, the world’s biggest crude importing

region and the fastest growing.

The question is which of these two goals

will ultimately be abandoned in favour of

the other, and how long will it take for Saudi

Arabia and Russia to realise the incompat-

ibility of their dual ambitions?

The crude import data from Asia’s big-

gest buyers show the scale of the challenge

facing Saudi Arabia and Russia, the two

countries that are the lynchpins of the No-

vember agreement between the Organisa-

tion of the Petroleum Exporting Countries

(Opec) and its allies to cut output by 1.8mn

barrels per day (bpd) in the first six months

of 2017.

That agreement, which provided an ini-

tial boost to crude prices, may be extended

for another six months after ministers from

Opec and non-Opec producers agreed on

March 26 to conduct a review.

While Opec and its allies have had suc-

cess in ensuring high compliance with the

deal, which has started the process of draw-

ing down high global oil inventories, they

have also opened the door to producers

outside the agreement to raise output.

Chinese customs data for the month of

February highlight how at risk Opec and

its allies are from cutting their own output

while their rivals are free to pump as much

as they want.

China imported 4.77mn tonnes, or about

1.24mn bpd, from top supplier Saudi Arabia

in February, down almost 13% from the

same month a year earlier.

While February’s imports were down

from the same month in 2016, they were

actually up from the 1.18mn bpd China im-

ported from the kingdom in January, which

shows that the Saudis seem reluctant to

restrict sales to their top customer.

That’s strike one against boosting prices

in favour of preserving market share.

China imported 1.19mn bpd from Russia

in February, up 4.5% on the same month

last year and also above the 1.08mn bpd

recorded in January.

So far, that looks like strike two against

cutting supplies to increase prices over

preserving market share.

To be sure, there were countries that

agreed to the cuts that did reduce their

exports to China in February, such as the

United Arab Emirates, but this was more the

exception than the rule.

China’s imports from Saudi Arabia are 1%

higher in the first two months of 2017 from

the same period last year, while those from

Russia are up 18.9% higher, from Angola

5.1%, Iraq 26.2%, Iran 9.4% and Venezuela

39.6%.

These figures don’t really speak of a con-

certed eff ort to restrict supplies to China,

which has overtaken the United States to be

the world’s largest importer of crude.

It will also be disturbing for Opec and its

allies to look at the 64.8% surge in China’s

imports from Brazil in the first two months

of this year to 392,000 bpd, and even from

Britain, with a 380% leap to 126,000 bpd.

Sure, these are small numbers in the

context of China’s imports of 8.14mn bpd in

the first two months, but it does show the

Chinese are willing and able to tap other

suppliers if they feel any pinch from Opec

and its allies cutting production.

It’s a somewhat similar story in India,

Asia’s number two oil importer.

India’s imports of crude oil from Brazil

jumped 176.2% in the first two months

of the year to 139,300 bpd, according to

vessel-tracking and port data compiled by

Thomson Reuters Supply Chain and Com-

modity Forecasts.

It was more of a mixed picture from ex-

porters party to the November agreement,

with India’s imports from Saudi Arabia

down by 15.2% to 789,900 bpd in the first

two months, while Iraq saw a drop of 37.5%

and Kuwait 27.3%.

But India’s purchases from Iran were up

211%, from the UAE by 19.7% and Azerbaijan

by 220%. What the crude import numbers

from China and India for the first two

months show is that by and large the top

producers seem reluctant to cut supplies

to major Asian buyers, and that even if they

do, other producers seem willing to step

into the breach.

It’s the ability of producers outside the

agreement to fill any supply gap that’s the

potential strike three against cutting output

to boost prices.

The United States exported around

950,000 to 1mn bpd in February, according

to participants in the industry who spoke

at an Argus crude oil forum in Singapore

yesterday.

The participants, some of whom repre-

sented US oil producers, expect that this

level of exports can be sustained, and will

increase in coming years as shale produc-

ers, particularly those in the Permian basin

ramp up output, given they can be profit-

able at prices as low as $40 a barrel.

The US shale industry is still the Sword of

Damocles hanging over the head of Opec and

its allies. While their agreement to curb output

may have some impact insofar as drawing

down excess inventories, perhaps it would be

better for Saudi Arabia, Russia and the others

to hope for stronger world economic growth

to spark a demand-led rebalancing.

Clyde Russell is a columnist for Reuters.

The opinions expressed here are those of

the author.

ReutersSingapore

Citigroup Inc will seek bids from global insurers keen to sell gen-eral insurance products across

the US bank’s Asia-Pacifi c markets, in a deal that could be worth at least $500mn, a source with knowledge of the matter told Reuters.

Citi’s move underscores how banks are leveraging their network of branches and customer base to generate assured revenue over many years, as demand for insurance grows in the region, the source said.

The multi-year, bancassurance deal for products such as motor, property and travel insurance, will be one of the largest of its kind in the region, and give insurers access to 15mn customers of Citibank in 12 markets including Sin-gapore, Hong Kong, China, India and Australia.

Citi will kick off the process for the 15-year deal in a few days, and expects to choose a partner in a few months, said the person who declined to be identifi ed as the information was not public.

The deal is expected to be pitched to a number of insurers including AIG and Allianz, two sources said.

The exact value of the non-life in-

surance deal will depend on various is-sues including how bidders structure upfront payments and calculate net present value of future commissions and deferred payments, the fi rst source said.

A spokesman at Citi declined to com-ment.

AIG and Allianz also declined to comment.

Citi’s plan to seek partners follows the bank’s move to allow insurer AIA in 2013 to sell life insurance through its Asia network in a multi-year deal.

“The bank has invested a lot to grow its technology platform and digital en-gagement over several years. The idea

now is to complement the life insurance partnership with another one for gen-eral insurance,” said the source.

Global insurers are increasingly rely-ing on bank distribution tie-ups to help generate billions of dollars in revenue in Asia, where rising personal incomes are enabling individuals and families to af-ford insurance.

“You are bound to see participation across-the-board, from Japanese in-surers to Europeans and others for this kind of a deal,” said the second person, who has dealt with bank distribution transactions, referring to the Citi deal.

“More and more banks are monetis-ing their distribution networks as this

doesn’t cost them much and the fees goes straight to the bottom line,” he said.

The fi rst source said Citi has an initial preference for one partner for all mar-kets but is open to considering more than one, given the range and scale of the bank’s retail platform.

Asia has seen a spate of bank distri-bution deals for life insurance in the last fi ve years and transactions for non-life insurance are also heating up.

In January, Standard Chartered and Allianz announced a 15-year deal that enabled the German insurer to sell its general insurance products to Stan-Chart’s customers in fi ve Asia markets.

Citi to seek bids for Asia insurance distribution deal

‘Malaysia infl ation toexceed 8-year high’BloombergKuala Lumpur

Higher fuel costs probably pushed up Malaysia’s infl ation rate this month

to above the 4.5% rate posted in February, though there’s no evidence that price pressures are spreading more broadly in the economy, an offi cial from the central bank said.

Last month’s infl ation rate – which was the highest in more than eight years and exceeded the median estimate of 3.9% in a Bloomberg survey – wasn’t a sur-prise to the central bank, Fraziali Ismail, director of the econom-ics department at Bank Negara Malaysia, said in an interview in Kuala Lumpur. If oil prices stay where they are, it’s a “question of arithmetic” that infl ation would accelerate, he said.

“Typically in the past, there could be second-round eff ects if the economy is above potential” and there are demand pressures, he said on March 24. “Yes, the

economy is on the up, but we don’t see those pressures ema-nating at the moment.”

Bank Negara Malaysia said in its annual report released last week that infl ation will probably average 3% to 4% this year, up from 2.1% in 2016.

The spike in infl ation is com-plicating Bank Negara’s job as it seeks to keep interest rates low enough to support the economy. The bank has left its benchmark rate unchanged at 3% since a surprise cut in July, and econo-mists surveyed by Bloomberg are divided in their views on wheth-er it will raise, reduce or keep rates unchanged this year.

While economic growth has picked up speed, it’s not exceed-ing the pace of potential output yet, which is estimated to be about 4.7% this year, Fraziali said. The economy grew 4.2% last year and is forecast by the central bank to expand 4.3% to 4.8% in 2017.

“We are operating close to po-tential, but we don’t see signs that we are exceeding,” he said.

BUSINESS


Credit Suisse progress buys Thiam breathing room on capitalBloombergZurich

Credit Suisse Group said its capital

buff ers are strong enough to con-

sider alternatives to an initial public

off ering of the Swiss bank unit,

signalling it may be open to selling

stock to retain full ownership of its

most-profitable business.

Advances that Switzerland’s

second-largest lender has made

over the past year include $1.9bn of

cost cuts, a higher capital ratio and

a settlement with the US Justice

Department over its sales of toxic

mortgage debt, CEO Tidjane Thiam

said in an interview with Bloomberg

Television yesterday. That progress

is allowing the bank to weigh a

range of options, he said.

Eighteen months into its restruc-

turing, Credit Suisse is seeking ways

to plug a hole of as much as 4bn

francs ($4bn) amid surprise trad-

ing losses, legacy issues, market

turmoil and tougher capital require-

ments. The bank is considering

selling stock valued at more than

3bn Swiss francs as an alternative to

the IPO, people with knowledge of

the matter said last week.

“The IPO was a capital backstop

and we were clear about that

in February” when the bank an-

nounced its full-year results, Thiam

told Bloomberg Television’s Yvonne

Man. “Now we’ve made so much

progress that we can consider other

options,” he said.

Thiam, 54, declined to elaborate

on specific proposals his board is

considering. Credit Suisse isn’t talk-

ing to investment banks, he said.

Like other big European lend-

ers, Credit Suisse is reining in

spending under pressure from low

interest rates and rules requir-

ing banks to hold more reserves.

When Thiam began overhauling

the bank in late 2015, Credit Suisse

had a capital gap of between 9bn

francs and 11bn francs. The firm

has since tapped shareholders for

6bn francs and had said it would

seek to address further capital

needs through listing its Swiss

universal bank.

Speculation that the firm would

look at alternative capital-raising

plans has been building in recent

months as its shares rallied almost

50% since July. The climb makes

a stock sale an attractive alterna-

tive, analysts at UBS Group said in

February. At the same time, analysts

such as Peter Casanova at Kepler

Cheuvreux have said it should back

away from the IPO plans, saying it’s

not in shareholders’ interests “to

sell the bank’s crown jewel.”

The Swiss universal bank deliv-

ered the biggest contribution to

pretax profit in the fourth quarter,

with 382mn francs.

David Herro, chief investment

off icer of Harris Associates, one of

Credit Suisse’s top three sharehold-

ers, said this month he doesn’t think

the company requires either a stock

sale or the Swiss IPO.

“There’s a range of views which

shows you that it’s a complex

decision, which is why were taking

our time to make it,” Thiam said.

“I’m pleased we’ve made so much

progress that there are serious

investors who think we don’t need

to raise capital.”

In an interview with Swiss

newspaper Finanz und Wirtschaft

last week, Thiam said he hopes to

make a decision on capital options

as soon as possible. Credit Suisse’s

annual meeting with shareholders

is scheduled for April 28.

“We know the market wants an

answer, we know the market needs

an answer, we’re working diligently

and we will give a very clear answer

in due course,” Thiam said in the

Bloomberg TV interview, on the

sidelines of his firm’s annual Asian

Investment Conference in Hong

Kong.

Thiam signalled a slowing of cost

cuts: After about 2bn francs last

year, the bank will probably shed

another billion this year and “a bit

less than” 1bn next year, he said.

Credit Suisse has a target of 4.3bn

francs in gross cost savings by the

end of 2018 and said in February

that it plans to cut between 5,500

and 6,500 jobs this year.

Credit Suisse rose as much as

1.1% to 14.83 francs in Zurich trading

yesterday and traded at 14.72 francs

as of 11:15am.

“2016 we hope was the tough-

est year in terms of cuts,” Thiam

said. “There are more cuts this

year, a few more next year, but

we’re starting to come out of that

period.”

In Asian equities, the bank shed

some jobs in the first quarter, with

plans for more reductions in the

second quarter, Thiam said at a

press conference after the inter-

view. “Hopefully after that, most of

it will be done.”

Brexit a risk as BoE stress-tests UK banks against deep slumpBloombergLondon

The Bank of England will subject the UK’s biggest lenders to a stress test fea-

turing a deep economic slump and a sharp depreciation of the pound as the country prepares for the impact of withdrawal from the European Union.

While the BoE didn’t tar-get Brexit by name in its 2017 health-check scenarios pub-lished yesterday, it said risks to fi nancial stability will be infl u-enced by the “orderliness” of that process. Separately, banks must submit their contingency plans to the BoE’s Financial Pol-icy Committee for approval and oversight, as the regulator seeks to ensure the supply of credit won’t be disrupted even if fi rms lose untrammelled access to the single market.

UK output plunges 4.7% in the fi rst year of the stress test’s adverse scenario that cov-ers seven UK banks, including HSBC Holdings and Barclays. The regulator fl agged “rapidly” rising household debt as a con-cern, and began an investigation into the quality of new consum-er lending. It also asked banks to explain how they’ll have to alter their business plans if profi tabil-ity doesn’t improve.

The other lenders covered by this year’s test are Lloyds Bank-ing Group, Nationwide Building Society, Royal Bank of Scot-land Group, Santander UK and Standard Chartered. The seven fi rms account for about 80% of the outstanding stock of lending by banks supervised by the BoE’s Prudential Regulation Author-ity.

RBS, still owned by taxpay-ers after a bailout in 2008, failed last year’s test and was forced to take steps to bolster its capital buff ers. Barclays and Standard Chartered also fell short of some criteria in last year’s exercise, but weren’t required to change their strategy.

This year’s macroeconomic stress test spans the fi ve years

to 2021. It refl ects the BoE’s judgement that global risks are “elevated and have increased somewhat over the last year,” while “underlying domestic vulnerabilities” are “broadly unchanged” from last year’s ex-ercise.

This means the peak-to-trough decline in global gross domestic product is minus 2.4% in the 2017 test. While the UK contraction is slightly more se-vere than last year’s test, the impact on unemployment is the same — a rise to 9.5%. The sce-nario also foresees a 5% infl ation rate by the end of 2018 and banks paying billions more in miscon-duct fi nes and settlements.

Prime Minister Theresa May plans to trigger departure talks in a letter to other EU leaders, which will start a two-year ne-gotiation period before the UK formally departs.

The BoE said the resilience of the UK fi nancial system de-pends in part on standards ap-plied elsewhere. The BoE said standards in other jurisdictions should “at a minimum” be “con-sistent with agreed common in-ternational baseline standards.” This could become an issue after the UK quits the EU.

The 2017 stress test is the fi rst to feature an “exploratory” sce-nario in addition to the annual cyclical scenario. The new ele-

ment is designed to assess the resilience of the system to risks that may not be “neatly linked” to the fi nancial cycle, according to the BoE.

The separate seven-year test will ask banks to detail how they’ll change their business models if their returns remain stagnant below the minimum investors expect from the sector, which is known as the cost of equity and is about 12%, offi cials said. BoE Governor Mark Carney has said shrinking profi tability is a “concern for fi nancial stabili-ty” because it may reduce banks’ ability to recover from shocks by generating capital or selling stock.

The scenario “will consider how the resilience of the UK banking system might evolve if recent headwinds to bank prof-itability persist and intensify” due to low growth, low rates and persistently high costs, the BoE said.

At the same time, competi-tion heats up in the retail deposit market from non-bank entrants driven by technology, putting “signifi cant pressure” on banks’ profi ts. The BoE will not publish fi rms’ responses because they will contain sensitive informa-tion, such as potential country exits or business closures.

Results of the annual test will be published in the fourth quarter.

Ericsson sees up to $1.7bn in costs as revamp beginsBloombergHelsinki

Ericsson will book as much as 15bn kronor ($1.7bn) in extra costs in the fi rst quarter as new chief

executive offi cer Borje Ekholm pares operations at the wireless network supplier after four straight quarters of falling revenue.

Ekholm, in his fi rst major operational moves since taking over in January, is whittling down Ericsson’s structure to cope with a prolonged industry slow-down. He’s considering a sale of the media business that was a favourite of his predecessor, along with a unit that sells hardware for cloud computing, while eliminating a management layer and halving the number of regional di-visions to fi ve.

“We have been spreading ourselves

too thinly, which has led to our market and technology position being chal-lenged,” Ekholm said on a conference call yesterday. “Today is the fi rst step in a strategic repositioning of the com-pany.”

Brought in 10 weeks ago by the Wallenberg family whose Investor AB is Ericsson’s largest shareholder, Ekholm is embarking on a mission to right the ailing network-equipment maker amid fierce competition and a spending slowdown by wireless car-riers. Yesterday’s moves effectively void a setup conceived by former CEO Hans Vestberg and fully implemented as reporting structure this quarter. Ekholm has already slashed Erics-son’s dividend for the first time in eight years.

The Stockholm-based company said in a statement yesterday its earnings this quarter will be cut by 7bn kronor to

9bn kronor because of cost overruns in a few large projects. Ekholm described the problems as isolated and said they don’t aff ect the company’s outlook.

“These projects are an important part of our strategy, but we have taken provisions for the extra costs,” the CEO said. “Things like that happen when you deliver new technology.”

Restructuring charges will be about 2bn kronor in the quarter as Ekholm strives to reduce inefficiency and avoid duplication across the com-pany. He said he plans no big job-elimination announcements, and wasn’t specific about the cost-cut-ting moves. Asset write-downs of the media, IT and cloud businesses will hurt operating income by 3bn kronor to 4bn kronor.

Beyond 2018, Ekholm aims to double Ericsson’s adjusted operating margin, helped by increasing sales of its recent-

ly introduced Ericsson Radio System as well as restructuring.

Shares of Ericsson fell as much as 4.6% before reversing course. They were up 0.3% to 59.35 kronor at 11:50am in Stockholm. They had added 11% this year through Monday after dropping 35% in 2016.

Ericsson’s media business, which counts the BBC among clients and pro-vides equipment for video streaming and processing, was touted by Vestberg as an important new revenue generator, reaching beyond the traditional cus-tomer base of telecom operators. Erics-son sold a minority stake in its Iconec-tiv business in the US earlier this year.

Restructuring charges for this year will be 6bn kronor to 8bn kronor, up from a previous estimate of 3bn kronor, Ericsson said.

Huawei Technologies Co dethroned Ericsson to become the world’s biggest

supplier of mobile infrastructure in the third quarter, according to IHS Markit. This month, wireless carrier Vimpel-Com said it terminated a contract with Ericsson early, picking Huawei as a partner to manage its phone networks in Russia. Ericsson also recently lost a contract to manage the Italian network of VimpelCom’s joint venture with CK Hutchison Holdings.

Ekholm said he sees “signifi cant im-provements” in the company’s busi-ness next year, assuming stable market conditions. Long-term, Ericsson can at least double its 2016 adjusted operating profi t margin of 6% “on a sustainable basis,” he said. Such an increase is al-ready baked into analysts’ average mar-gin estimates for 2019, Natixis analyst Stuart Jeff rey said in a note.

A former McKinsey consultant, Ekholm was appointed to right Erics-son after a troubled 2016, in which the

company ousted Vestberg and blind-sided investors with a massive profi t warning. His main message since tak-ing over from interim CEO Jan Fryk-hammar has been that the company needs to focus on profi tability and cash fl ow to be able to invest in technologies that will be crucial for growth in the fu-ture.

Progress could be made faster, ac-cording to Janardan Menon, an analyst with Liberum Capital. The new strat-egy doesn’t go far enough, and any sale of Ericsson’s media business could be drawn out, Menon said in a research note.

“The strategy appears to be mainly incremental rather than radical, and the currently low levels of profi tability needed bigger actions from manage-ment,” Menon said. “There is no real change in the main Networks and Serv-ices business.”

Lufthansa warns Brexit to hit UK airlines as EU gets toughReutersLondon

Britain’s biggest retailer Tesco has agreed to pay £214mn ($269mn) in

fi nes and compensation for in-vestors to settle a probe over a 2014 accounting fraud that sparked the biggest crisis in its near 100-year history.

The 85mn pounds in com-pensation earmarked for in-vestors is the fi rst time that Britain’s Financial Conduct Authority (FCA) has enforced such a payout for market abuse.

Tesco will also pay a £129mn fi ne after an agreement with Britain’s Serious Fraud Offi ce (SFO).

“What happened is a huge source of regret to all of us at Tesco but we are a diff erent business now,” chief executive Dave Lewis, who had to deal with the scandal after taking charge in September 2014, told reporters yesterday.

Tesco, which has been re-building since the crisis and a price war that hammered the supermarket sector as a whole, said it would take a one-off charge of 235mn pounds in its 2016-17 results, due on April 12.

Shares in Tesco were down 0.1% at 190.2 pence at 0950 GMT, also infl uenced by news on Monday that two big share-holders oppose its proposed £3.7bn takeover of wholesaler Booker.

“The overall exceptional charge of £235mn is worth 2.9 pence to the share price,” said Bernstein analyst Bruno Mon-teyne, who rates Tesco “out-perform”.

The deferred prosecution agreement (DPA) between the SFO and Tesco’s UK subsidiary Tesco Stores Limited enables the fi rm to avoid a criminal con-viction provided it meets certain conditions and pays the fi ne.

The DPA relates to false ac-counting by Tesco’s UK busi-ness between February 2014 and September 2014.

In a parallel deal with the FCA, Tesco agreed to a fi nding of market abuse in relation to a trading update published on August 29, 2014, which over-stated expected fi rst half profi ts by £250mn, mainly because it

booked commercial deals with suppliers too early.

No penalty is being levied by the FCA directly on Tesco.

The DPA does not address whether liability of any sort attaches to Tesco Plc or any employee of Tesco Plc or Tesco Stores Limited.

The profi t overstatement, identifi ed three weeks after Lewis took over as CEO, was later raised to £263mn.

Lewis has since worked to simplify Tesco’s business and has transformed its relationship with suppliers to ensure there is no repeat of the scandal.

The DPA with Tesco is the second struck by the SFO in three months.

In January aero engines maker Rolls-Royce agreed to pay £497mn to settle a lengthy bribery investigation.

Tesco’s compensation scheme for investors will cover those who bought shares or bonds for cash between Au-gust 29, 2014, and September 19, 2014, giving 24.5 pence per share plus varying rates of in-terest depending on whether the investor was institutional or retail.

The DPA was the subject of a preliminary court ruling on Monday.

The SFO and Tesco will seek fi nal judicial approval for the DPA from the court on April 10.

Lewis told reporters Tesco would contest outstanding civil claims relating to the scandal.

The company is facing a more a claim of more than 100mn pounds from a group of 125 institutional investors fi led last October.

A source familiar with the lawsuit said claimants were closely examining Tesco’s com-pensation scheme.

The retailer is also facing a claim fi led by Manning & Na-pier, the US fund manager.

“The short period of time covered by both the SFO rul-ing and the FCA ruling seems to imply very limited opportunity for these cases to extract large compensation,” said Bern-stein’s Monteyne.

For 2016-17 Tesco is fore-casting group operating profi t before exceptional items of “at least” £1.2bn, up from £944mn in 2015-16.

While the BoE didn’t target Brexit by name in its 2017 health-check scenarios published yesterday, it said risks to financial stability will be influenced by the “orderliness” of that process.

BUSINESS15Gulf Times


Qatar’s budget defi cit may fall to 5% of the country’s GDP this year, says SambaSamba sees further shrinkage in the country’s deficit up to 2019

By Pratap JohnChief Business Reporter

Qatar’s budget defi cit may fall to 5% of the country’s GDP this year, or $8.7bn,

and then “shrinking further” through to 2019, mainly due to “increasing hydrocarbon re-ceipts and the ongoing consoli-dation” of current spending, a new report has shown.

Although full-year data for 2016 is not yet available, ac-cording to Qatar Central Bank (QCB) data, the defi cit for the fi rst three quarters of 2016 came in at $9.2bn, or 8.2% of the GDP, according to Samba Financial Group.

From the same period a year earlier, revenue has fallen by 41.3%, while expenditure has declined by 20.7%.

“We estimate a full-year defi -cit of $12.3bn (8% of GDP) very close to the budget target,” Sam-ba said in its latest economic monitor.

Despite the defi cits, it said Qatar is “clearly headed on a more sustainable fi scal path”, which is due in part to the mul-titude of subsidy cuts.

It should also be noted that a 65% cut in capital spending would see fi scal surpluses for each of the forecast years — so it can be seen as an inter-temporal issue rather than a structural one, Samba said.

The 2017 budget targets a re-duced defi cit of $7.8bn, down from $12.8bn in the 2016 budg-

et. Revenues are expected to increase by 9%, based on an assumed oil price of $45/b — ($12/b below Samba estimates).

Total spending is budg-eted to decline by 2%, driven by a 6.6% drop in recurrent spending as the government continues to seek efficiencies. In contrast, capital spend-ing is expected to increase by 3.2%, bringing its share of total

spending to 49.1% from 46.7% last year. The bulk of capital spending will be focused on transportation and infrastruc-ture (21.2%), health (12.3%) and education (10.4%).

The Ministry of Finance also signalled that they would agree $12.7bn worth of new contracts in 2017, adding to a stock of $102.7bn non-hydrocarbon sector projects already initi-

ated by the public sector. The budget makes clear the intent to reduce the deficit while still prioritising capital spending which will continue to help the country prepare for the 2022 World Cup and to diversify the economy.

“Similar to last year, the au-thorities intend to fi nance the defi cit through debt issuance and not draw down on external sav-

ings,” Samba said. Qatar’s current account defi cit for the fi rst three quarters of 2016 was $6.2bn or 5.6% of GDP. The trade balance remained in surplus ($17.9bn), though down 67.1% from the same period of 2015.

“We foresee a current account surplus in 2017 of 2.1% of GDP, with surpluses increasing in size through to 2019 in line with higher oil prices,” Samba said.

Qatar Airways wins ‘Airline of the year’ awardQatar Airways received the ‘Airline of the year’ award at the 2017 Air Transport Awards recently as the airline was recognised for its “innovation, service, hospitality and leading product design”. The awards ceremony, held at an “exclusive and prestigious” ceremony at the Latrou Residence in Ekali, Greece, recognised Qatar Airways as the world’s leading airline, bestowing it with the highest honour of the evening, at an event attended by the world’s leading airline executives.Qatar Airways Group chief executive Akbar al-Baker said, “We are deeply honoured to have been recognised by the readers of Air Transport News as the 2017 Airline of the Year. We take immense pride in driving our airline to be the best in the industry and to deliver our passengers an unprecedented on-board experience. To receive acknowledgement from the loyal passengers who choose to fly with Qatar Airways is the highest honour for us to achieve and pushes us to work even harder to provide them with the level of commitment, service and attention to detail that they deserve every time they travel.”The award was bestowed upon Qatar Airways for its continued ambition to ensure the airline’s passenger experience is the absolute best in the industry with regards both product and service, an ambition witnessed just earlier this month at an exclusive reveal ceremony at the ITB exhibition in Berlin, at

which the airline launched its new Qsuite for business class.QSuite features the industry’s first-ever double bed available in business class, with privacy panels that stow away, allowing passengers in adjoining seats to create their own private room.

Adjustable panels and movable TV monitors on the centre four seats allow colleagues, friends or families travelling together to transform their space into a private suite, allowing them to work, dine and socialise together.These new features provide the ultimate customisable travel experience that enables passengers to create an environment that suits their own unique needs and ensures that Qatar Airways continues to lead the airline industry in terms of passenger experience in the skies.

‘Qatari bank deposits at QCB ‘remain healthy’ at $3.3bn’By Pratap JohnChief Business Reporter

Commercial bank deposits at the Qatar Central Bank “remain healthy” at $3.3bn, despite the “still elevated” interbank rates, Samba Financial Group has said in a report. Interbank rates in Qatar continue to trend up, hitting 1.9 in February 2017, up from 1.4, some 12 months earlier. The loan to deposit ratio ticked down from 118 in November to 115 in January. Commercial bank deposits at the QCB have fallen from $4.9bn in June, the report said. The QCB continues to issue T-bills as well as domestic bonds and sukuks. Credit growth (12%) continues apace

whilst deposit growth (14.8%) is being held up by rising non-resident deposits, it said. The IMF has recently advised that the authorities need to carefully manage liquidity pressures. Increasing transparency of T-bill auctions and improving communication with respect to the QCB’s liquidity operations would allow banks to better anticipate liquidity conditions in the interbank market and strengthen its management. However, the fund notes that despite the tightening liquidity, Qatari banks remain sound and well capitalised, with a non-performing loan ratio of just 1.2%, the lowest in the GCC region. “There are, however, credit risks from the growing loan to deposit ratio, and the IMF has flagged the risks associated

with some banks expanding into riskier foreign jurisdictions,” Samba said.According to Samba, Qatar’s foreign exchange reserves fell 10% in December to $30.2bn, their lowest level since August 2012. Despite this decline, Samba expects reserves to increase this year as the current account benefits from higher oil prices, while the capital account improves thanks to new debt inflows and healthy returns from QIA investments abroad. The IMF has reserves increasing from 2017 back to the $40bn level by 2020, despite relatively bearish oil price assumptions.The Samba report shows Qatar’s economy expanded by 3.7% in the third quarter on a year-on-year basis, bringing the average for the first three quarters

of 2016 to 2.3 percent. The hydrocarbon sector expanded by 2.7%, recovering from the contraction in the previous two quarters, while the non-hydrocarbon sector continued its robust growth (4.7%). Samba expects this “positive” contribution from the hydrocarbon sector to continue in 2017 with incremental additional output from the Barzan gas development.Construction was the standout performer in the non-hydrocarbon sector, benefiting from the authorities commitment to capital spending and expanding by 12.4%. Transport and financial services are also growing robustly, at a rate of 7.9% and 6.9% respectively, thanks in-part to steady population growth, Samba said.

QSE gains for second day on foreign institutions supportBy Santhosh V PerumalBusiness Reporter

The Qatar Stock Exchange yesterday wit-nessed gains for the second day, mainly on foreign institutions’ increased buying sup-

port, but failed to break the 10,500 levels.Industrials, telecom and realty sectors mainly

lifted the 20-stock Qatar Index up 0.32% or 33 points to 10,461.81 points, rebounding from an intra-day low of less than 10,400 points.

The Gulf individual investors’ bullish out-look also helped the market, which was back in positive trajectory year-to-date with gains of 0.24%.

The maximum buying was in micro and large cap equities on the bourse, which however saw increased net selling by domestic institutions and local retail investors.

Islamic stocks were seen gaining faster than the main index as well as other indices in the market, where non-Qatari individuals turned net sellers and there was weakened net buying support from Gulf institutions.

Trade turnover and volumes expanded in the bourse, where telecom, banking and real estate sectors together accounted for about 89% of the total volumes.

Market capitalisation expanded more than QR2bn or 0.45% to QR560.48bn as micro, large and midcap equities gained 0.99%, 0.36% and 0.03% respectively; while small caps fell 0.18%.

The Total Return Index rose 0.32% to 17,338.95 points, All Share Index by 0.29% to 2,944.72 points and Al Rayan Islamic Index by 0.37% to 4,148.1 points.

The industrials sector saw its index add 0.72%, telecom (0.65%), realty (0.47%), banks and fi -nancial services (0.18%) and consumer goods

(0.08%); whereas insurance and transport de-clined 0.53% and 0.06% respectively.

More than 57% of the stocks saw gains with ma-jor movers being Industries Qatar, Vodafone Qa-tar, Commercial Bank, Qatari German Company for Medical Devices, Al Khaleej Takaful, Aamal Company, Mesaieed Petrochemical Holding, Gulf International Services, QNB, Barwa, Mazaya Qa-tar, Dlala, Islamic Holding Group, Widam Food and Gulf Warehousing.

Nevertheless, Ooredoo, Milaha, Masraf Al Ray-an, Alijarah Holding, Qatari Investors Group and Qatar General Insurance and Reinsurance were among the losers.

Non-Qatari institutions’ net buying strength-ened substantially to QR69.4mn compared to QR23.8mn the previous day.

The GCC (Gulf Cooperation Council) retail in-vestors turned net buyers to the tune of QR2.74mn against net sellers of QR0.53mn on Monday.

However, domestic institutions’ net selling in-

creased considerably to QR44.91mn compared to QR13.08mn on March 27.

Local retail investors’ net profi t booking in-creased to QR20.07mn against QR17.06mn the previous day.

Non-Qatari individual investors turned net sellers to the extent of QR10.92mn compared with net buyers of QR0.6mn on Monday.

The GCC institutions’ net buying weakened perceptibly to QR3.76mn against QR6.31mn on March 27.

Total trade volumes rose 18% to 15.7mn shares, value by 17% to QR391.22mn and deals by 7% to 5,043.

The insurance sector’s trade volume almost tri-pled to 0.21mn equities and value more than tri-pled to QR13.03mn on more than doubled trans-actions to 174.

There was 70% surge in the real estate sector’s trade volume to 3.79mn stocks, 62% in value to QR68.34mn and 46% in deals to 930.

The consumer goods sector’s trade volume soared 64% to 0.36mm shares, value by 89% to QR23.68mn and transactions by 55% to 393.

The industrials sector reported 35% expansion in trade volume to 0.88mn equities but on 18% decline in value to QR33.88mn. Deals were up 1% to 643.

The telecom sector’s trade volume increased 17% to 5.89mn stocks, value by 1% to QR64.23mn and transactions by 1% to 1,060.

However, the banks and fi nancial services sec-tor saw 9% decline in trade volume to 4.23mn shares but on 9% jump in value to QR171.65mn despite 7% fall in deals to 1,680.

The transport sector’s trade volume was down 8% to 0.34mn equities; while value rose 24% to QR16.41mn. Transactions shrank 38% to 163.

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

Most Mideast markets edge up; Emaar Malls jumps as Amazon seals Souq.com dealRegional trading volume generally low; Emaar Malls had dropped after news of its bid; Amazon now appears to have won the contest; Saudi Automotive surges in unusually large volume

ReutersDubai

Most Gulf stock markets edged up yesterday although trading volumes were generally low, while Emaar Malls jumped in Dubai after the company appeared to lose a contest with Amazon.com to acquire Middle Eastern online retailer Souq.com.Emaar Malls added 3.6%, outperforming Dubai’s stock index, which dropped 0.2% to 3,447 points.The company’s shares had dropped 2.8% in the previous two days on news it was making an $800mn bid to acquire e-commerce operator Souq.com, which could have put it in a bidding war with Amazon.com. The US company had agreed in principle to buy Souq.com.In a report, investment bank Exotix listed possible concerns for minority

shareholders in Emaar Malls’ bid, including whether the online retail industry had synergies with retail mall management, and whether buying Souq.com would be an optimal allocation of capital.yesterday, Amazon.com and Souq.com said jointly that Amazon had agreed to acquire the Middle Eastern firm, apparently ending the battle.Seven of Dubai’s most heavily traded stocks fell and two were flat; Emaar Malls was the only gainer among them.Abu Dhabi’s index edged up 0.1% to 4,470 points.The Saudi Arabian index rose 0.3% to 6,873 points. Saudi Automotive, which off ers services to motorists, saw unusually heavy trading and was the most active stock; it surged 4.1%.Riyad Bank lost 1.9% and Saudi Public Transport fell 3.0% as the two stocks went ex-dividend.In Kuwait, Kuwait Insurance Co sank 3.6% as it went ex-dividend but the market index gained 0.3% to 7,052 points.Elsewhere in the Gulf, the Oman index fell 1.1% to 5,543 points and the Bahrain index dropped 0.4% to 1,378 points. In Egypt, the index edged up 0.1% to 12,983 points.

The QSE’s market capitalisation expanded more than QR2bn or 0.45% to QR560.48bn yesterday as micro, large and midcap equities gained 0.99%, 0.36% and 0.03% respectively; while small caps fell 0.18%.

Qatar to sell up to $900mn shares in Santander Brazil

BloombergDubai

Qatar Holding is selling as much as $900mn in shares of Banco Santander’s Brazilian unit, according to a prospectus to be filed today.Qatar is off ering 80mn units that are composed of one common share and one preferred share in Banco Santander (Brasil) and will be sold in an international sale being underwritten by banks including Credit Suisse Group and Bank of

America’s Merrill Lynch unit, according to the prospectus. Units are being off ered in the form of American depositary shares, which closed at $9.77 yesterday on the New York Stock Exchange. Qatar also agreed an overallotment option of 12mn shares.Qatar, the world’s biggest exporter of liquefied natural gas, is a major investor on both sides of the Atlantic. It owns London landmarks such as the Harrods, The Savoy hotel and the Shard skyscraper. It also owns stakes in Credit Suisse and Deutsche Bank.

BUSINESSWednesday, March 29, 2017

GULF TIMES

Commercial Bank director Omar Hussain Alfardan and CEO Joseph Abraham among other top bank off icials at the Qatar-UK Business and Investment Forum in London.

Commercial Bank CEO speaks on partnership opportunities for private sector at Qatar-UK Business and Investment ForumCommercial Bank partici-

pated at the Qatar-UK Business and Investment

Forum held at the Grosvenor House Hotel in London, with CEO Joseph Abraham delivering a speech on potential partner-ship opportunities for the pri-vate sector.

Abraham spoke about the “tremendous opportunities” for the private sector against a backdrop of healthy econom-ic growth, under the vision-

ary leadership of HH the Emir, Sheikh Tamim bin Hamad al-Thani, and government policies creating a business-friendly en-vironment.

He stated that the scale of the government’s ambition and the scope of the Qatar National Vi-sion 2030 meant that partner-ship opportunities went far be-yond constructing World Cup stadiums and related infrastruc-ture, to also include sectors such as tourism, health, education

and communications. He said Commercial Bank’s strong do-mestic network and franchises in all areas of banking has sup-ported numerous multi-nation-al and joint venture companies in Qatar to support a healthy and diversifi ed Qatari private sector, in line with the Qatar National Vision 2030.

Held under the patronage of HE the Prime Minister and Min-ister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani,

the forum was organised by the Permanent Committee for Or-ganising Conferences at the Ministry of Foreign Aff airs and the Qatari Businessmen Asso-ciation, in cooperation with the Qatar Chamber and the Arab British Chamber of Commerce.

Attended by HE Sheikh Ab-dullah bin Nasser, among other dignitaries from Qatar and the UK, the forum was organised to connect the Qatari business and government community with

their counterparts in the UK. The business and investment forum is the premier economic promotion event organised by Qatar abroad.

The UK was selected as the forum venue this year as the country is one of Qatar’s largest commercial partners.

Qatar holds substantial for-eign investments in the UK to-talling over £30bn including Ca-nary Wharf, The Shard, HSBC Bank Tower and Harrods.

Yusuffali attends Qatar-UK Business and Investment Forum

LuLu Group chairman Yusuff ali M.A., with Qatar Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa al-Thani, during the Qatar-UK Business and Investment Forum, held in London. The event included a round-table meeting with UK Prime Minister Theresa May, attended by senior Qatar and UK political representatives besides Qatar’s Minister of Transport and Communication, HE Jassim Seif Ahmed al-Sulaiti; Minister of Finance, HE Ali Sherif al-Emadi; and the UK’s Secretary of State for International Trade, Dr Liam Fox.

CEO of Qatar Financial Centre Yousef Mohamed al-Jaida speaking at the Qatar-UK Business and Investment Forum in London.

CEO of Qatar Development Bank Abdel Aziz al-Nasser al-Khalifa speaking at the Qatar-UK Business and Investment Forum in London.

Qatar leaders give their vote of confidence in investing in the UKBy Denise MarrayGulf Times CorrespondentLondon

HE the Prime Minister and Minister of Interior of Qatar, Sheikh Abdullah bin Nasser bin Khalifa al-Thani, in his address to the Qatar-UK Business & Investment Forum in London, gave a vote of confidence to the UK.“We have great confidence in the UK, which will be seen in our investments over the next decade, he said.Britain’s Secretary of State for International Trade Liam Fox said the UK was committed to trading with Qatar.“We will be doubling the finance available from the UK export finance to support trade with Qatar to £4.5bn. That will be an additional £2.25bn in support for UK companies exporting to Qatar and for the Qatari buyers in both the public and private sectors. In addition, UK export finance will now be available in Qatari Riyal, allowing buyers in Qatar to access finance in their own currency.“We want to increase our exports to Qatar. Only 11% of British businesses sell either goods or services outside of the UK. Only 27% of our GDP is accounted for by exporting, which apart from Greece, is the lowest among EU countries. We need to get a better export performance.” He advised investors to look beyond London. “Looking ahead, the greatest investment opportunities in the UK will lie outside of the capital.”HE the Finance Minister of Qatar, Ali Sherif al-Emadi, noted: “We have over £30bn invested here in the UK. It’s a leading destination for our students, for healthcare and for Qatar Airways. We appreciate the companies from the UK into Qatar, especially those companies who have been operating for over five decades.”“The UK is in the top ten of our trading partners. I don’t see why you can’t be in the top five or even the top three. The willingness is there from a political and investment standpoint.”Sheikh Abdullah bin Mohamed bin Saud al-Thani, CEO of Qatar Investment Authority, said: “Our investment focus now is on infrastructure, healthcare and IT. Soon we will also be opening an off ice in the Silicon Valley, San Francisco.”Yousef Mohamed al-Jaida, CEO, Qatar Financial Centre, said both 100% ownership and JVs were available to foreign companies operating in Qatar.“For companies setting up in Qatar, a 100% foreign ownership is in itself an incentive. A best-in-class legal and judicial environment facilitates businesses to set up easily. At QFC, we have also improved our incorporation process, allowing companies to set up within 48 hours, depending on the nature of their activity. “Regarding tax, if a company is established within the financial centre and the activities are mostly regional or global, then you are pretty much exempt from taxes, which has not been formally announced yet.”

Xavier Rolet, chief executive, London Stock Exchange Group, paid tribute to Qatar. “The QIA has been our most loyal and exemplary shareholder over the decades. “The UK is home to 5.4mn SMEs, out of a total of 23mn in the entire EU. If we can match Qatar’s ability to bridge the fastest-growing economies in Asia and Africa with the UK’s expertise in nurturing and scaling up SMEs, that could be a basis for an even greater win for both the countries.”Ali Ahmed al-Kuwari, CEO, Qatar National Bank, observed: “Despite the slowdown in commodity prices, Qatar is still spending strongly both internally and externally. Qatar’s banking sector has been doing very well in terms of profitability and growth. Assets have been growing by 12.7% per annum over the past five years.”“Over the past five years most international banks have retreated more into their domestic markets because of the financial crisis and because of regulatory issues. In contrast, the Qatari banks have invested between $6-7bn in new acquisitions, expanding our footprint outside of Qatar.”

Abdullah Ahmad al-Shaibei, CEO and board member of QIIB, spoke about the Islamic finance sector. “Islamic finance is a huge market; it cannot be provided from one centre. We can have a hub in London and Qatar and elsewhere. London has contributed a lot towards the Islamic finance industry, especially with the government sukuk. I expect to see more from London in the field of Islamic insurance.”HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani, said: “There are 80 wholly-owned UK subsidiaries working in Qatar and there are more than 670 joint venture companies across many sectors. These numbers could be improved substantially with support from both the government and business organisations.”Akbar al-Baker, Group Chief Executive, Qatar Airways, observed: “I received a message from Rolls-Royce saying we at Qatar Airways had played a leading role in making them provide the product in a more perfect manner. So, I think we are making waves and I am sure both Airbus and Boeing will supply our orders on time for us to cater for our expansion, in preparation for the World Cup 2022.”Hassan Abdullah al-Thawadi, secretary-general, Supreme Committee for Delivery and Legacy, highlighted the special nature of the Qatar 2022 World Cup. “2022 will be the first-ever ‘compact’ World Cup; Players won’t have the hassle of travelling from one city to another, the event will be easier to manage. This will all be made possible through our eff icient infrastructure.”

Britain’s Prime Minister Theresa May attending the Qatar-UK Business and Investment Forum in Birmingham, yesterday.

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