Wednesday, May 30, 2018Ramadan 14, 1439 AH

BUSINESSGULF TIMES

Islamic fi nance should focus on ‘petro yuan’

India probes AirAsia chief Fernandes

GT EXCLUSIVE | Page 2 GRAFT CHARGE | Page 13

GLOBAL REACH: Page 16

Ooredoo extends managed services to support Qatar’s competitiveness

Qatar manufacturing on solid footing: MDPSQatar’s manufacturing sector ap-

pears to be in a solid footing as higher prices for hydrocarbons,

basic metals, refi ned petroleum products, dairy products and paper products helped the industrial producers’ earnings soar in double digits year-on-year, offi cial fi gures suggest.

Qatar’s producer price index (PPI) – a measure of the average selling prices re-ceived by the domestic producers for their output – surged 24.3% on a yearly basis and 2.6% month-on-month during the review period, according to fi gures released by the Ministry of Development Planning and Statistics (MDPS).

MDPS had released a new PPI series

in late 2015. With a base of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dated from 2006, when the Qatari econ-omy was much smaller than today and the range of products made domestically much narrower.

The PPI for mining, which carries the maximum weight of 72.7%, saw a 31.1% surge year-on-year in April 2018 on ac-count of a 31.1% increase in the price of crude petroleum and natural gas and 4.6% in stone, sand and clay.

The mining PPI had seen a 3.9% expan-sion on a monthly basis as crude petroleum and natural gas prices grew 3.9% but that of stone, sand and clay fell 0.2%.

The manufacturing sector, which has a weight of 26.8% in the PPI basket, wit-nessed a 12% yearly increase this April owing to a 20.1% expansion in the price of basic metals, 15.6% in refi ned petroleum products, 14.9% in other chemical products and fi bres, 13.7% in dairy products, 11.9% in paper and paper products, 2.9% in basic chemicals, 1.5% in juices and 1.1% in rubber and plastics products. However, there was a 5.7% decline in the price of cement and other non-metallic mineral products and 1.6% in beverages.

The manufacturing sector PPI, however, had seen a 0.5% decline month-on-month in April as the price of basic chemicals slumped 3.5%, basic metals 1.6% and dairy

products, beverages and cement and other non-metallic mineral products (0.1% each). Nevertheless, rubber and plastics products grew 3.1%, paper and paper products and juices (1% each), refi ned petroleum prod-ucts (0.7%), other chemical products and fi bres (0.6%) and grain mill and other prod-ucts (0.1%).

The utilities group, which has a 0.5% weight in the PPI basket, saw its index grow 6.1% in April 2018 on a yearly basis as elec-tricity and water prices soared 6.7% and 5.2% respectively.

The index, however, fell 0.9% month-on-month in April this year mainly on a 6.8% decline in the price of electricity; while water prices soared 9.2%.

Qatar Executive unveils its new exhibition stand on opening day of ‘EBACE’ in Geneva

Qatar Executive, Qatar Airways’ private jet charter division, un-veiled a brand new stand at Eu-

rope’s leading business aviation show EBACE, which takes place at Palexpo, Geneva from May 29 to 31 in order to welcome the hundreds of guests ex-pected to visit and hear about its latest developments.

The division, the largest operator of Gulfstream G650ER aircraft in the world, has witnessed a dramatic surge in growth over the last year as it caters to a growing private, corporate and celeb-rity client base around the world with its wholly-owned fl eet of luxurious busi-ness jets, featuring some of most tech-nologically advanced aircraft in the sky.

Qatar Airways Group chief executive Akbar al-Baker said, “We are delighted to once again take part in EBACE, Eu-rope’s leading business aviation show, this year with a brand new stand at which to welcome our guests and high-light our rapid expansion plans. Over the last year, our private jet charter di-vision, has witnessed signifi cant growth in response to increased demand from

clients who demand the very best, sup-ported by the world’s most modern and effi cient aircraft, and complemented by luxurious interior fi ttings and a world-leading service, both on the ground and in the air.”

The private jet division will also pro-mote its growing fl eet of G650ER air-craft, the world’s fastest ultra-long range business jet and the technologi-cally most advanced aircraft in its cat-egory, which Qatar Executive fi rst re-ceived in 2015 as global launch customer.

Qatar Executive is set to receive an-other two G650ER aircraft before end-2019, in addition to a further seven G500 jets. This will bring the Gulfstream fl eet to a total of 13 aircraft, out of a complete fl eet of 21 state-of-the art jets.

Qatar Executive will also highlight its growing product off ering across air charter services, aircraft management, maintenance and fi xed-based opera-tion services, as it opens two dedicated offi ces this year in both Shanghai and Moscow.

In addition, the division will speak of its growing markets around the world,

specifi cally Asia, Russia and Europe, supported by a “seamless” and “pas-senger focused” service, and the reas-surance the world over of a dedicated maintenance support unit.

The G650ER and G500 cabins are not only comfortable, but contain the most advanced technology including satellite communications, high-speed Internet, the Oryx One entertainment system, wireless local area network and Gulf-stream’s Cabin Management System, which allows passengers to use their own personal electronic devices to con-trol audio, video, lighting, temperature, window shades and other cabin func-tions.

Qatar Executive’s G650ER aircraft, which can travel further and faster than any other jet of its kind, features a two-cabin confi guration, which seats up to 13 passengers.

Seats convert into fully-fl at beds, so that seven guests can easily sleep on board, while the cabin interior features a classic-contemporary style, combin-ing understated luxury and timeless el-egance.

QIMC signs deal for buying foreign partner’s 33.33% stake in QPPCQatar Industrial Manufacturing Company (QIMC)

chairman Sheikh Abdulrahman bin Mohamed bin

Jabor al-Thani has signed a contract for the purchase

of the foreign partner’s share (33.33%) in the Qatar

Plastic Products Company (QPPC)’s capital.

Thus the QIMC share in the Mesaieed-based QPPC

has gone up to 66.66%.

QIMC chief executive off icer Abdulrahman al-Ansari

said, “We are confident that this acquisition will

strengthen our investment portfolio in the industry

and that this transaction will have a positive impact

on our profits.

QPPC was established in 2000 with a capital of

QR27mn among Qatar Petrochemical Company

(Qapco), a foreign partner, and QIMC for the manu-

facture and marketing of plastic products such as,

pipes, plastic hoses and special plastic bags and

multipurpose wood-plastic composite. QPPC also has

stakes in Qatar Wooden Products Company, which

produces wooden pallets.

Qapco managing director and CEO Dr Mohamed

Yousef al-Mulla said, “This acquisition will play a piv-

otal role on Qatar’s economy. This step will contrib-

ute positively toward the commitment in supporting

the Qatar National vision 2030. We believe that this

acquisition will play a strategic role that will pave the

way towards sustainability and prosperity.”

Qatar non-oil exports jump to reach QR2.2bn in April

Qatar has recorded a 68%

month-on-month jump in

non-oil exports to reach

QR2.2bn in April 2018, and

a 71% increase year-on-year,

according to Qatar Cham-

ber’s latest report.

The Chamber’s Research

and Studies Department

and Member Aff airs

Department reported that

a total of 3,068 certificates

of origin were issued in

April 2018, including 2,812

general form certificates,

99 unified GCC certificates (industrial), 129 unified Arab certifi-

cates of origin, and 28 certificates of origin for preference.

Qatar Chamber director general Saleh bin Hamad al-Sharqi

(pictured) said the 71% y-o-y surge in non-oil exports indicates

development in the sector, “which has been growing at an ac-

celerated pace” since the beginning of 2018 due to the eff orts

and facilities provided to the industrial sector.

Al-Shaqi said growth in non-oil exports was the result of the in-

creasing demand for Qatari products, “which is characterised

by quality and conformity” to all international specifications,

thus strengthening confidence in Qatari products in the global

markets.

He noted that the volume of exports in April “is a real indicator

that confirms the eff orts of the state” in the development of

the industry sector and increasing the capacity and eff iciency

of its productive institutions “despite the surrounding circum-

stances.”

Al-Sharqi said the recorded increase in April shows that Qatar’s

non-oil exports were not aff ected by the unjust siege. “The

coming period will witness a further boom in this activity after

industrial facilities, currently under construction, enter the

production stage,” al-Sharqi said.

According to the report, Qatar exported goods and services to

59 countries in April compared to 56 countries in March.

The importers included 11 Arab countries and the GCC; 14 from

Europe, including Turkey; 16 from Asia, excluding Arab coun-

tries; 15 from Africa; excluding Arab countries; two countries

from North and South Americas, and Australia. The number of

importers in April increased by three countries compared to

March 2018.

The report said the Netherlands was Qatar’s top non-oil ex-

ports destination in April, accounting for QR531.6mn, or 23.4%

of the total exports. It was followed by Oman with QR452mn,

or 19.9%, and Hong Kong with QR251mn, or 11.1%.

This was followed by India with QR129mn, or 5.7%; the US with

QR123mn, or 5.4%; Bangladesh; Germany; Turkey; Singapore,

and China.

As an economic bloc, European countries were top destina-

tions for Qatari exports, amounting to 32.6% of the total

exports with QR740mn. Asian countries, excluding Arab coun-

tries, recorded 32.3% of the total value or QR732mn.

Oman and Kuwait imported QR506.6mn worth of goods or

22.31% of the total non-oil exports. North American countries

received QR143mn, or 6.3% of the total value, while Arab

countries imported QR 83.11mn worth of goods, or 3.7%. Afri-

can countries received QR37.17mn followed by Australia with

QR27.74mn.

The file photo taken on February 1, 2006 shows an oil refinery on the outskirts of Doha. Higher prices for hydrocarbons, basic metals, refined petroleum products, dairy products and paper products helped the industrial producers’ earnings soar in double digits in April, according to MDPS figures.

Qatar Executive is the largest operator of Gulfstream G650ER aircraft in the world

2 ISLAMIC FINANCE GULF TIMESWednesday, May 30, 2018

Islamic fi nance should keep an eye on the ‘petro yuan’By Arno MaierbruggerGulf Times Correspondent Bangkok

China’s recent introduction of yuan-denominated oil futures and the country’s

planned move to pay for imported oil in its own currency, yuan, or renminbi, instead of US dollars – replacing the so-called petro dollar with the ‘petro yuan’ – could have potentially huge implications for the world economy, including the Islamic fi nance world.

Attempts to break the dominance of the US dollar as obligatory cur-rency in the global oil trade are not new. Libya’s late Muammar Gaddafi had tried it and failed, so did Ven-ezuelan and Iranian leaders, but this time, odds are in favour of China, which can fairly easily exploit the current US sanctions on Iran and the erratic trade policy of the cur-rent administration in Washington to reach a new dimension for its currency.

According to a Reuters report, a pilot programme for yuan pay-ment for oil could be launched as early as the second half of this year, and the long-term impact could be significant given the fact that China is the biggest importer of crude oil and the second larg-est consumer in the world, which makes it a key determinant of glo-bal oil prices.

The impact of the petro yuan on Islamic fi nance lies primarily on the changes in trade it would have on China’s Islamic trading part-ners in Southeast Asia, most of all Malaysia, and the Muslim coun-tries in Central and West Asia and the Middle East and North Africa, which are in the process of being connected by China’s One Belt, One Road initiative, also known as New Silk Road. Adding to that, a key oil exporter in the region, Iraq, has already accepted the yuan as payment for crude oil shipments

and Pakistan’s is accepting it for bilateral trade and investment, which increases the yuan money supply in those jurisdictions where Islamic fi nance is central.

Since a considerable part of infra-structure along the New Silk Road is going to be funded through Islamic fi nance structures such as sukuk and similar instruments, and the China-backed Asian Infrastruc-ture Investment Bank, in which all six Gulf nations are members and investors, plays a leading role in funding the initiative, it will not be

a question of whether, but when the fi rst yuan-backed Islamic fi nance transactions will emerge. This will include a growing number of inter-national yuan-denominated sukuk and other instruments, including tawarruq, or commodity murabaha – which is basically an Islamic fu-tures contract –, for yuan-backed energy deals.

And the impact will be consid-erable, given the fact that the One Belt, One Road schedule includes investments more than $1tn in in-frastructure along the way in roads

and railroads, ports, energy plants, grids, manufacturing sites and free trade zones, through 60 countries spanning over Europe, Africa and Asia.

The expected rising infl uence of the petro yuan on the global econ-omy is also a key factor as to how oil exporting Gulf nations will have to adapt their oil trade with China and other nations that potentially start shifting away from the US dollar for political or pragmatic reasons. This would also impact the Islamic fi nance and banking system in each

country and, of course, cross-bor-der and international trade fi nance and the GCC’s debt market in the future.

Analysts even expect the petro yuan could trigger a global disrup-tion of the fi nancial system, includ-ing Islamic fi nance, over the com-ing fi ve years in case China succeed with its plans of making the yuan a new globally accepted reserve cur-rency. In fact, all it needs is the sup-port of the world’s largest oil pro-ducers Russia and Saudi Arabia to go ahead.

EDUCATION/General FAQ

What are the rules regarding the transfer of debt?Where one person (the lender) lends money to another person (the borrower) who is already owed money by a third person, the borrower may choose to transfer the debt (owed by the third person) so that the third person becomes obligated to pay the original lender. However, the two debts (the one the borrower owes the lender and the one the third person owes the borrower) must be equal in type and amount to avoid riba; where two debts are of unequal amounts (e.g. if the borrower owes the lender $100 and a third person owes the borrower $200, then $100 of the amount the third person owes the borrower is transferable to the original lender, while $100 remains to be owed to the borrower). Transfer of debt requires the original lender’s consent and his

knowledge of the contents of the original debt transaction, though the transference does not require the third person’s consent.

Is it permissible for the bank to off er prizes through a drawing as an incentive to lease?It is permissible for the bank to off er prizes through a drawing as an incentive to lease.

What is the hierarchy or order of precedence in supporting one’s parents?The right of one’s mother comes before the right of one’s father (respectively for grandparents, great grandparents, and their direct ascendants); and the right of one’s parent comes before the right of one’s child; though this precedence is only relevant in the absence

of sufficient funds to support everyone.

Is it obligatory to perform the pilgrimage if one is in debt?Debtors may perform the pilgrimage if the creditor grants permission to delay repayment until after the pilgrimage. Generally, when a debt (whose amount exceeds the cost of pilgrimage and its related obligations, such as providing for one’s family during one’s pilgrimage) is outstanding, the pilgrimage is no longer obligatory, though its performance is still valid if performed with the creditors consent.

What should the bank do with outdated, unclaimed cheques issued in favour of clients whose accounts are now dormant?It is permissible to give these funds away in charity after the bank has

made every attempt to contact the client. If the owner returns after the funds have already been given away, he must be informed of what was done and if he still demands payment he must be reimbursed from the general shareholder’s account.

Is it obligatory to support one’s parents even when they are not needy?It is not obligatory to provide one’s parent with financial support when they are not needy, though it is still recommended to give if they ask.

What does the Shariah say regarding the obligation of supporting one’s children?Both men and women are equally obligated to support their children until the child reaches adulthood, including those of their Muslim or

non-Muslim children (grandchildren, great grandchildren, and their direct descendants) stricken by poverty (obligatory only when there is poverty), even if these children grow to adulthood while they are still impoverished. The obligation of support rests on parents who have the means to do so once they have paid the typical maintenance for themselves (and one’s wife, if a husband) necessary for one day before spending it on one’s children. In order to satisfy the obligation to support one’s child, which includes repaying any debts the child incurs in order to cover the child’s living expenses, one is even obligated to sell one’s own property in excess of one’s needs. The right of the younger child comes before the right of the older one (respectively for grandchildren, great grandchildren, and their direct descendants).

Is it permissible to accept an investment that may have been stolen?It is impermissible to give or take investment when one is certain the investment itself is stolen; if there is doubt then it is permissible to give or take the investment, though it is always superior to avoid the doubtful.

What is gharar?Gharar refers to uncertainty or ambiguity that may lead to dispute between contracting parties. For instance, executing a contract before the price, subject matter, or transacting parties are definitively known.

Source: Ethica Institute of Islamic Finance via Bloomberg

Gulf TimesExclusive

IMF to add Islamic fi nance to market surveillance in ’19 to boost regulation

Reuters

The International Monetary Fund will incorporate Islamic fi nance into its fi nancial sector assess-

ments of select countries starting next year, aiming to improve regulation in the growing sector.

The IMF has traditionally focused on conventional banking, but it has been increasingly engaging with regulators in countries where Islamic fi nance is now deemed to be systemically important.

Under a proposal by the IMF’s ex-ecutive board, guidance issued by the Malaysia-based Islamic Financial Services Board (IFSB) would be incor-porated into IMF assessments to ad-dress the regulation and supervision of Islamic banks.

Islamic fi nance, which bans interest

payments and pure monetary specula-tion, is estimated to have over $2tn of assets globally and is off ered in over 60 countries, according to the IMF.

Business practices, however, can vary across markets spanning the Middle East, Africa and Southeast Asia.

The IMF wants to encourage more consistency in applying Islamic fi nance rules, having previously warned over the complexity of some Shariah-com-pliant products that could stifl e growth and add to fi nancial instability.

The industry is important for fi nan-cial systems in more than a dozen coun-tries, accounting for over 15% of total fi -nancial assets in countries such as Saudi Arabia, Kuwait, Qatar and Malaysia.

The IMF said it views the growth of Islamic fi nance as an opportunity to strengthen fi nancial inclusion eff orts, deepen fi nancial markets and develop new funding sources.

Omani lenders seek to join merger wave in Mideast banking

BloombergDubai

The wave of consolidation among banks in the Gulf

is spreading to Oman from Saudi Arabia, the UAE

and Qatar.

Oman Arab Bank said on May 24 it’s seeking a

merger with Alizz Islamic Bank, in a move that may

create a lender with assets of about $7bn. The bank

approached Alizz to explore the possibility of a

“strategic collaboration” that may lead to a merger.

The move comes amid consolidation among banks

in the six-nation Gulf Co-operation Council to

better compete in a crowded market. Abu Dhabi’s

largest banks combined last year to create a $175bn

powerhouse, the Saudi lenders backed by HSBC

Holdings and Royal Bank of Scotland are in the

process of merging, while three Qatari banks are

considering a combination to create the nation’s

biggest Islamic lender.

KPMG said in a report in April that the potential

merger in Qatar would trigger further consolida-

tion initiatives in the country. Combinations in

Bahrain are also “inevitable” and there are expecta-

tions of further consolidation in the medium term

in the UAE, it said.

If the Omani merger is completed, it would be the

first since HSBC in 2012 combined its operations

in Oman with Oman International Bank. Talks

between Bank Dhofar and Bank Sohar collapsed in

2016. The country’s largest lender is BankMuscat,

with assets of about $30bn.

Oman Arab Bank, owned 51% by Oman Internation-

al Development & Investment Co and 49% by Jor-

dan’s Arab Bank, had assets of 2.14bn rials ($5.6bn)

at the end of last year, according to information on

its website. Alizz had assets of 663mn rials at the

end of March.

Alizz, which is traded in Muscat, has a market value

of about $200mn. The shares climbed 5.2% on May

24, bringing the gain this year to 21%.

Oman Arab Bank is seeking a merger with Alizz Islamic Bank, a move that may create a lender with assets of $7bn

An employee arranges genuine bundles of US one-hundred dollar banknotes and Chinese one-hundred yuan in an arranged photograph at the Counterfeit Notes Response Center of KEB Hana Bank in Seoul (file). The impact of the petro yuan on Islamic finance lies primarily on the changes in trade it would have on China’s Islamic trading partners in Southeast Asia, most of all Malaysia, and the Muslim countries in Central and West Asia and the Middle East and North Africa.

‘Islamic banks eyeing green fi nance but adoption limited’

Islamic banks are keen to develop sustain-

able practices into their businesses, but a

lack of clarity on implementation means

adoption of green finance remains limited,

according to a report released last month.

The findings by the Responsible Finance &

Investment (RFI) Foundation, a non-profit

industry body, highlight an important

challenge for Islamic finance as it looks to

widen its appeal beyond its core markets

in the Gulf and Southeast Asia, Reuters

reported.

Stronger links to socially responsible

finance could help unlock new business

opportunities and attract a wider pool of

ethically minded investors from predomi-

nantly Western countries.

A survey of Islamic finance institutions

conducted by the RFI over the past year

found that three-quarters of respondents

said they had considered implementing

sustainable finance practices.

However, less than a third reported having

in place policies on environmental sustain-

ability and only a quarter had developed

evaluation tools to measure their impact.

Some of the obstacles cited included

a lack of clarity on how to implement

such practices and uncertainty on

whether these would be financially

viable.

The IMF has traditionally focused on conventional banking, but it has been increasingly engaging with regulators in countries where Islamic fi nance is now deemed to be systemically important

BUSINESS3Gulf Times

Wednesday, May 30, 2018

World’s biggest EV battery maker curbs its IPO ambitionsBloombergTokyo

The world’s biggest maker of elec-tric-vehicle (EV) batteries is rein-ing in its initial public off ering

after its profi tability weakened, pricing the sale to raise less than half of what it originally planned.

Contemporary Amperex Technology said late Monday it plans to sell a 10% stake at 25.14 yuan a share. That would value it at about $8.5bn, down from a goal of about $20bn the company had late last year.

The reduced target is result of a decline in the company’s margins, and a cap im-posed by Chinese authorities on price-earnings ratios in IPOs.

CATL’s expectations for IPO proceeds are also cut by more than half to 5.46bn yuan ($853mn), leaving the company seeking other sources to fully fund its ag-gressive expansion in China and beyond, including in Europe.

The growth plans and China’s reduced subsidies for the electric-vehicle indus-try are weighing on profi tability, leaving

investors awaiting a recovery in the com-pany’s margins when EV demand accel-erates down the road.

“They are probably able to fi nd other sources for the rest of the funding if they need so it won’t be a big concern,” said Robin Zhu, an analyst at Sanford C Bern-stein in Hong Kong. “The key question is its declining profi t margin.”

CATL, which counts carmakers Volkswagen AG, Nissan Motor Co, Hy-undai Motor Co and BMW AG as cus-tomers, last year overtook Panasonic Corp as the world’s largest supplier of EV batteries by sales, thanks to increasing domestic demand.

Tesla plans to announce the location of a new gigafactory in China as early as in the third quarter as it seeks to produce batteries and cars in the world’s biggest electric vehicle market.

Still, CATL’s gross margin shrank 9.5 percentage points last year to 35%. The company lowered battery prices to gain market share after the government reduced electric-vehicle subsidies, weighing on profi tability, founder Zeng Yuqun said in an online meeting with investors yesterday. The gross margin

will probably continue to decline, Bern-stein’s Zhu said.

A CATL representative said Chinese regulators’ cap on the price-earnings ratio was a reason for the reduced IPO target. The authorities have imposed an unwritten rule of keeping IPO valuations at no higher than 23 times earnings, ac-cording to Bernstein’s Zhu.

CATL plans to use several fi nancing channels, including its own funds or bank loans, to make sure its expansion projects will be implemented “smooth-ly,” Zeng said.

In the next three years, CATL “will grasp the opportunities of the fast growth in the global lithium-ion bat-tery market, and maintain our leading position in technologies, manufac-turing, capacity and talents,” said the founder, who is also the company’s largest shareholder.

CATL has said it will use the proceeds to help fi nance a new 24 gigawatt-hour factory at its home base of Ningde, Fu-jian Province, and to develop next-gen-eration battery technologies.

The company starts accepting sub-scriptions from investors today. Once the

IPO is completed, the stock is set to start trading on the ChiNext board of Shen-zhen Stock Exchange, also known as the Chinese version of Nasdaq because it features innovative, small and mid-sized companies.

CATL is supplying its cells to a slew of new cars being introduced by glo-bal auto majors in China. They include Toyota Motor Corp’s ix4, a rebadged pure EV developed by its Chinese part-ner Guangzhou Automobile Group, Hy-undai’s plug-in version of the Sonata, as well as the BMW’s 530Le sedan.

In the latest step in its global expan-sion, CATL opened an offi ce in Yoko-hama, Japan. The battery maker is also exploring sites in Germany, Hungary and Poland for its fi rst overseas plant and has said a decision on the location could be announced in June.

While CATL is the biggest manufac-turer of batteries when including all electric-vehicle types, Panasonic is the largest maker of batteries for the nar-rower category of regular-sized electric cars, also known as highway capable passenger electric vehicles, according to Bloomberg New Energy Finance.

EM equities hit 5-month low asItaly fright sparks safety flightReutersLondon

Emerging equities fell to a five-month

low yesterday as investors ditched

riskier assets on the back of renewed

Italian political turmoil, while Turkish

markets steadied after Monday’s cen-

tral bank move.

A strong dollar hammered curren-

cies with South Africa’s rand the hard-

est hit, down 1.5%.

MSCI’s benchmark emerging stocks

index slid over 1% to its lowest level

since mid-December in a broad-based

risk-off move as early elections loomed

in Italy.

The country’s anti-establishment

5-Star and League parties abandoned

plans to form a government at the

weekend, but markets feared it may

turn out to be the opening salvo in a

war over Europe’s single currency.

“The biggest contributor is fear of

a eurozone crisis, and the spillover

from that into demand for safe haven

currencies,” said Koon Chow, an FX

strategist at UBP.

He added investors were concerned

the crisis would manifest as an eco-

nomic slowdown in the euro-area, with

implications for demand for emerging

market goods and services.

Investors dumped stocks across

emerging Europe and Asia, and emerg-

ing currencies took a pounding as the

dollar index firmed 0.7% to its highest

since November.

Amongst the biggest fallers in

emerging Europe were Budapest

shares, which tumbled over 2% to a

one-year low, Warsaw stocks, down

1.5% to March 2017 lows and Istanbul,

also down 1.5%.

This followed earlier losses in Asia,

where the South Korean bourse fell

0.9%, even as US off icials sought to

revive a US-North Korea summit.

Chinese mainland and Hong Kong

stocks slipped 0.8-1% after Chinese and

US envoys sparred over “technology

transfer” at the World Trade Organisa-

tion on Monday.

On the currencies side other big fall-

ers included India’s rupee and Russia’s

rouble, which both slipped 0.8%.

China’s yuan also eased 0.3% to its

lowest level since mid-January.

The rand had firmed on Monday

in the wake of S&P Global’s decision

to leave the country’s credit rating

unchanged with a stable outlook.

Meanwhile Turkey’s lira held up

better in choppy trading, treading

water following Monday’s 2.7% gain

as investors in London were gearing

up to meet senior policy makers from

Ankara.

The currency has been supported

by the central bank’s decision on Mon-

day to return to using the one-week

repo as its benchmark rate with inves-

tors welcoming the move to simplify

monetary policy after years of relying

on multiple rates. Chow said the move,

which will be implemented from June

1, was surprisingly positive.

“The late liquidity window is now at

19.5%, which means if we were to get

another period of capital outflows and

weakness that’s where money market

rates could go to.

That’s not only simplification, that’s

carrying a bigger stick as well.”

Turkish sovereign dollar bonds also

rallied across the curve, with the big-

gest gains at the longer end.

The February 2045 issue rose over 2

cents to 93.5 cents in the dollar, a 2-1/2

week high.

The average yield spread of Turkish

sovereign bonds over US Treasuries on

the JPMorgan EMBI Global Diversified

index also narrowed by 14 basis points

(bps) to 384 bps, a two-week low.

Hungary’s forint continued to

underperform its regional peers,

down 0.35%. Hungary’s central bank is

considered one of the most dovish in

emerging markets.

Investors were also eyeing develop-

ments in Latin America where Brazilian

stocks plunged to their lowest level

this year in Monday’s session as an on-

going truckers’ strike hit all sectors and

state oil company Petroleo Brasileiro

SA had to adopt a number of policies

unpopular with traders.

Meanwhile Colombia is heading

for a divisive presidential race after

right-wing Ivan Duque won Sunday’s

first round, triggering a run off with

leftist Gustavo Petro that could upset a

historic peace deal or see a reversal in

business-friendly policies.

The headquarters of Contemporary Amperex Technology in China. The world’s biggest maker of electric-vehicle batteries is reining in its initial public off ering after itsprofitability weakened, pricing the sale to raise less than half of what it originally planned.

Alibaba, Tencent join big names betting on Hon Hai arm’s IPO

BloombergBeijing

China’s largest initial public

off ering since 2015 has gotten

the attention of the nation’s top

Internet companies.

Aff iliates of Baidu Inc, Alibaba

Group Holding and Tencent Hold-

ings, known collectively as BAT,

are becoming strategic investors

in Foxconn Industrial Internet Co.

The companies are buying 21.8mn

shares each in FII’s listing at 13.77

yuan apiece, the firm said in a

statement to the Shanghai stock

exchange Sunday.

China’s largest tech Corps

joined a plethora of major names

that are buying into the smart

factory unit of Hon Hai Precision

Industry Co, Apple Inc’s most

important assembler.

FII plans to raise 27.1bn yuan

($4.3bn) in a Shanghai listing to

bankroll projects in areas from

smart manufacturing to fifth-

generation wireless technolo-

gies. Hon Hai’s shares rose as

much as 2.5% in early trading in

Taipei.

Other strategic investors

named in the FII statement were

Central Huijin Investment’s asset

management unit, which agreed

to buy 58.1mn shares.

A unit of China Railway Corp is

buying 43.6mn shares, and China

Life Insurance Co is taking 34.1mn

shares. The lockup period was set

at three years.

China’s drugmaker shares are red hot, but so are valuationsBloombergShanghai

A company that makes medicine out of snake gall bladders has seen its

shares surge this year as health-care companies became China’s most popular stocks.

In a market buff eted by the fallout from the US trade dis-putes, mainland investors have been seeking shelter in fi rms, like traditional medicine maker Zhangzhou Pientzehuang Phar-maceutical Co, that make almost all their sales at home. It also doesn’t hurt that China’s health-care industry is expected to post above average profi t growth of more than 20% for the next three to fi ve years, Bloomberg estimates show, as China’s massive popula-tion ages and gets wealthier.

That’s all added up to scorch-ing gains: drug makers and other health stocks are by far the best-performing corner of the Chi-nese market in 2018, up nearly 30% through Monday before a slump on Tuesday dented their performance. Valuations – at levels unseen in a decade – are shaping up as the biggest threat to a rally that’s managed to over-come equity losses in almost every other industry.

“The sector may touch a valu-ation ceiling soon if it rallies fur-ther,” said Sun Jianbo, president of Beijing-based China Vision Capi-tal Management. “However fast the future growth might be, it takes time for companies to realise that.”

The CSI 300 gauge of health-care shares plunged in late trad-ing yesterday, falling 5.1% in its biggest loss in more than two years, with analysts attributing

the rout to concern about exces-sive valuations.

Bulls have been optimistic medical reforms, such as faster approvals for new drugs, will help established companies ac-celerate earnings growth even more quickly.

Market leaders like Jiangsu Hengrui Medicine Co stand to benefi t from nationwide eff orts to promote the use of generic drugs in treatment, according to Dai Ming, Shanghai-based fund manager with Hengsheng Asset Management Co Companies with solid distribution networks will be lifted by another reform to lower the price of drugs dispensed by hospitals and cut intermediaries in drug sales, he said.

“Many healthcare fi rms are entering an innovation cycle – they are able to develop new drugs which, if successful, will contribute big to future earn-ings,” said Dai. “Valuations have expanded, but they are not yet at outrageous levels.”

Keeping faith has proved re-warding. Hong Kong-listed CSPC Pharmaceutical Group Ltd surged to a fresh record on Mon-day after better-than-expected earnings prompted brokerages from Goldman Sachs Group to Credit Suisse Group AG to lift their price targets. Other drug-makers including 3SBio Inc soared, before falling today.

Yet the risks of a reversal were already rising before to-day’s slump, given the priciest levels relative to global peers in a decade. Valuations on the CSI 300 Health Care gauge on Monday hit more than 36 times forward 12-month earn-ings, compared with an all-time average of 23 times.

BUSINESS

Gulf Times Wednesday, May 30, 20184

Why some emerging markets are suddenly melting downBy Netty IsmailDubai

Investors had been enamoured with emerging markets for more than two years. These days, they’re not so besotted. For several weeks, money has poured out of developing nations and into the US, causing the dollar to rise in value and the currencies of emerging markets to hit new lows. Turkey has been at the centre of the rout, but many other countries, including Argentina, Hungary and Indonesia, have been hit as investors dump riskier stocks and bonds for the safety of US assets. For some economists, it raises the spectre of the late 1990s-era Asian economic crisis. What’s going on?

1. Why are emerging marketssuff ering?

The easy answer is that money is fickle and opportunistic – it goes where it can get the highest return, flowing out of countries as fast as it flows in. This latest upheaval started when the US, Japan and Europe kept interest rates close to, or below, zero to help their stagnant economies recover from the 2008 financial crisis. That made returns on stocks and bonds

unattractive, and drove investors to developing nations, where the risks were higher but the payoff s more inviting.Emerging markets, as a result, have enjoyed a rally in stocks, bonds and currencies. But the reverse is now happening as investors react to several signals from the US – faster growth, rising interest rates and a stronger dollar. All three indicate potentially higher returns on US investments and thus act as a magnet for money. They also undermine the attraction of riskier emerging markets. The turmoil in Turkey has especially rattled investors.

2. How scary can this get?

Some say this is just a market hiccup as speculative investors betting on a weaker dollar were caught off guard by the US currency’s new strength. Others say the developing world is in worse shape than many investors think. Harvard professor Carmen Reinhart, for example, has said mounting debt loads, trade battles, rising interest rates and stalled growth have made emerging markets more vulnerable than on the eve of the 2008 financial crisis. Paul Krugman, the Nobel Prize-winning economist, has said the current episode somewhat resembles the Asian financial crisis of the late 1990s, when the MSCI

Emerging Markets Index for developing-nation stocks slid as much as 59%.

3. What caused the Asia crisis?

It started when a real-estate bubble burst in Thailand, which undermined confidence in the economy, causing foreign investors to sell the currency and withdraw from the stock market. The crisis spread to the banks, and then across much of East Asia. Many of the aff licted economies had strong growth records that masked weaknesses like nonperforming bank loans, heavy foreign borrowing and rising trade deficits. Because their currencies were pegged to the dollar, South Korea and other nations were forced to spend billions trying to fend off speculators who were selling their currencies. They soon ran out of dollars and had to give up the peg and devalue their currencies. The contagion spread when foreign investors pulled back from other countries in the region seen as having similar problems. Several ended up seeking bailouts from the International Monetary Fund.

4. So is this another Asian-like crisis?

No, at least not yet. One reason: Investors are selectively punishing markets where

policy makers haven’t done enough to stem deteriorating trade balances and ballooning inflation. These include Turkey and Argentina, which have the worst combination of weak governance and high dollar debt among 18 major emerging-market economies. Brazil and Indonesia aren’t far behind.

5. Who else looks vulnerable?

Economies dependent on dollars and other foreign currencies to finance their trade deficits – the Philippines, India and Indonesia stand out – have the worst-performing currencies in Asia this year. Those with the highest rates of foreign ownership of government bonds could be the most vulnerable to capital outflows, including South Africa, Indonesia and Russia.

6. Why is Turkey in so much trouble?

It’s been one of the hardest-hit emerging-market currencies, shedding more than 17% of its value against the dollar this year. Turkey has a large budget shortfall and one of the biggest trade deficits in the G-20 group of nations. And though Turkey’s inflation rate is more than 10%, its central bank was prevented from raising interest rates by President Recep Tayyip Erdogan, who is seeking re-election in

June and says he prefers low interest rates, based on his own ideas about monetary policy. He has also said he plans to take more control over monetary policy if he wins. Last week, the central bank took emergency steps to arrest the slide with an interest-rate hike to prop up the lira, and followed this week with a simplification of its interest-rate regime.

7. Why did so many countries borrow in dollars?

Encouraged by near-zero interest rates after the global financial crisis, developing nations loaded up on what was then cheap debt. Selling bonds denominated in dollars rather than the local currency also attracted investors who favoured the more stable greenback. Turkey’s corporate sector, for example, has foreign currency debt in dollars, equivalent to 40% of gross domestic output. Global investors, though, sometimes ignored danger signs, such as rising trade deficits and government spending sprees. They also brushed aside, until now, the fact that a stronger dollar would make it harder for emerging markets to repay their debt. That’s because once they borrowed in dollars, they needed to buy dollars to repay the debt. As the dollar rises in value against the local currency, it costs more to obtain those dollars.

Bloomberg QuickTake Q&A

China’s yuan slips to weakest in 4 monthsReutersShanghai

China’s yuan stumbled to its

weakest in more than four

months yesterday, falling past a

psychologically important level

after the central bank’s softer

fixing and broad dollar strength.

“The authorities are send-

ing a message that they are

comfortable with the current

trading range, albeit the spot

rate breached the 6.4 per dollar

level,” said Ken Cheung, senior

Asian FX strategist at Mizuho

Bank in Hong Kong.

Cheung believes that Beijing

is “happy to see the yuan turn

weaker” as the currency has

strengthened against its trade-

weighted basket which raises

concerns about the country’s

export competitiveness.

The Chinese currency hit a

peak in late March this year at

6.2418, when it was up 4.2%

against the greenback since the

start of the year.

It is now up 1.5% year-to-date.

Prior to market opening, the

People’s Bank of China lowered

its off icial yuan midpoint to

6.4021 per dollar, 59 pips or 0.1%

weaker than the previous fix at

6.3962.

Yesterday’s off icial fixing was

the weakest since January 22.

In the spot market, the onshore

yuan opened at 6.4050 per

dollar, and fell to a low of 6.4177

per dollar at one point in morn-

ing trade, the weakest since

January 18.

The dollar firmed against

a basket of major currencies

amid weakness in the euro as

investors took a grim view over

the prospect of fresh elections

in Italy. The global dollar index,

a gauge that measures the

unit’s strength against six other

currencies, stood at 94.346,

around a 6-1/2-month peak hit

on Monday night.

Some analysts also pointed

to domestic factors for the

yuan’s weakness.

Weaker-than-expected invest-

ment and retail sales in April,

persistently weaker central bank

yuan guidance and a recent

spate of corporate bond defaults

all suggest further downside for

the Chinese currency.

As of midday, the onshore

spot rate was changing hands

at 6.4124, 155 pips weaker

than the previous late session

close and 0.16% softer than the

midpoint. The market remained

largely stable in morning trade

despite the losses, traders said,

adding they did not see major

state-owned banks stepping in

to prop up the yuan.

In late 2015 and 2016, big

banks were seen selling dollars

as part of off icial eff orts to

support the renminbi when the

local currency faced depre-

ciation pressure. Some market

participants noted that the off -

shore spot rate had fallen below

the key level ahead of onshore

trade, and led its onshore coun-

terpart lower yesterday.

A trader at a Chinese bank

said continuous corporate

dollar selling in recent weeks

had helped steady the yuan, but

such sales eased off after the

yuan breached 6.4.

Sensex snaps winning streak; rupee weakensBloomberg, ReutersMumbai

India’s benchmark equity index

fell, snapping three sessions of

gains, as bank stocks declined.

The S&P BSE Sensex fell 0.6% to

34,949.24 in Mumbai after swing-

ing between gains and losses

at least six times. Eleven of 19

sectoral sub-indexes compiled by

BSE Ltd declined, led by a gauge of

lenders. ICICI Bank Ltd and State

Bank of India Ltd were the worst

performers on the Sensex.

“With earnings nearing an

end, the market is consolidating,”

said Jitendra Panda, managing

director at Peerless Securities Ltd

“Investors will now be closely fol-

lowing the progress of monsoon

rainfall to take fresh positions.”

Indian companies are due to com-

plete reporting earnings for the

most recent quarter on Thursday.

The southwest monsoon,

which waters more than half of

the country’s farmland, arrived

over the southern state of Kerala

ahead of its normal schedule,

according to a statement on the

India Meteorological Depart-

ment’s website. The department

had accurately predicted an onset

date of May 29 for the June-

September rainy season, which

typically starts on June 1.

Meanwhile the rupee yesterday

weakened against the US dollar,

tracking losses in Asian curren-

cies. Month-end dollar demand

from importers also impacted the

currency, Bloomberg reported.

The home currency ended at

67.87 against the US dollar, down

0.66% from its previous close of

67.43. The currency opened at

67.62 a dollar and touched a low of

68 a dollar. The 10-year bond yield

closed at 7.756% from its Monday’s

close of 7.738%. Bond yields and

prices move in opposite directions.

So far this year, the rupee has

weakened 5.8%, while foreign

investors have sold $139.40mn

and $4.40bn in equity and debt

markets, respectively.

Asian currencies fell in holiday-

hit trading as investors eyed rising

political risks in Europe. Philip-

pines peso was down 0.35%, Thai

baht 0.35%, South Korean won

0.3%, China renminbi 0.25%, China

off shore 0.25%, Taiwan dollar

0.14%, and Singapore dollar 0.07%.

Most Asia bourses turn bearish againAFPHong Kong

Asian markets were mostly lower yesterday, with traders keeping an eye on oil prices, which have tanked

since Saudi Arabia and Russia indicated they could raise output after abiding by a self-imposed cap for two years.

While Brent was slightly higher yester-day, WTI lost a further 1.6%, extending a slump since the Saudi-Russia comments.

The comments come as supply worries increase, with major producer Venezuela hit by economic uncertainty, Iran facing painful export sanctions and demand seen picking up.

Tokyo ended 0.6% lower, while Hong Kong slipped 1% and Shanghai closed down 0.5%.

Seoul dropped 0.9% while Wellington, Taipei and Manila were also off . However, Sydney added 0.2%.

Attention is turning to the release on Friday of US jobs data, which will be scoured for clues about the Federal Re-serve’s interest rate plans ahead of next month’s policy meeting.

“While a 25 basis points hike is largely a done deal, the next focus is on whether the (policy board) will start to indicate the peak of policy rates as policy ap-proaches neutral,” Tai Hui, JP Morgan

Asset Management chief strategist for Asia-Pacific, said.

Meanwhile the euro extended losses in Asian trade yesterday as political uncer-tainty in Italy stoked fresh fears about the eurozone.

Italy, one of the European Union’s big-gest economies, has been plunged into crisis after President Sergio Mattarella at the weekend vetoed the new govern-ment’s nomination of a fi erce eurosceptic as economy minister.

The move led the country’s prime minister-elect to step down, meaning the collapse of a bid by the populist Five Star Movement and the far-right League to form a government.

Mattarella then named Carlo Cottarelli, a pro-austerity economist formerly with the International Monetary Fund, to lead a technocrat government, with another election likely in the autumn.

The chaotic developments have spooked investors, who fear another election could see a better result for the essentially anti-EU parties.

National Australia Bank said in a com-mentary: “Fears of a euro existential crisis are gathering momentum amid simmering political turmoil in Italy.”

And Alessio de Longis, a New York-based portfolio manager at Oppenheimer Funds, told Bloomberg Television: “These developments are concerning.

The markets will be really unable to move forward into a diff erent narrative” until the Italian outlook is clearer.

Yields on Italy’s key 10-year bonds surged to 235 points above those of bench-mark German bunds, its highest level in more than four years, in a sign of falling confi dence among investors.

Stock markets in Milan, Paris and Frankfurt tumbled, while the euro sank against the dollar as the eurozone faced its biggest upheaval since the Greek debt crisis.

In Asian trade the single currency con-tinued to suff er, and was in danger of fall-ing below the $1.16 level last breached in early November.

Adding to selling pressure on the unit is a brewing crisis in Spain, where Prime Minister Mariano Rajoy faces a no-confi -dence vote after his party was found guilty of benefi ting from illegal funds in a mas-sive graft trial.

“We may now be in for an extended period of heightened uncertainty ahead of fresh elections” in Italy, Ray Attrill, head of foreign exchange strategy at National Australia Bank in Sydney, said in a note.

In Tokyo, the Nikkei 225 closed down 0.6% to 22,358.43 points; Hong Kong — Hang Seng ended down 1.0% to 30,484.58 points and Shanghai — Composite fell 0.5% to 3,120.46 points yesterday.

Singapore bourse delays new India futures after lawsuitBloombergSingapore

The Singapore Exchange said it will delay the start of its new Indian stock futures contracts,

as a court dispute in Mumbai heads to arbitration.

The SGX, which is battling with the National Stock Exchange of India over Indian derivatives in the city-state, had been due to launch the SGX India Fu-tures on June 4.

The products were designed as a re-placement for the popular Nifty 50 In-dex contracts, which are due to end in August after NSE cancelled its licens-ing and data deal with its Singapore counterpart.

The dispute between two of Asia’s biggest bourses has been simmering for months and threatens to leave interna-tional investors without an easy way to hedge their exposure to India’s $2.2tn stock market. Indian offi cials are trying to make onshore trading more accessi-ble, and the country’s markets regula-tor last week said foreigners would be allowed to trade without registering on exchanges in the Gujarat tax-free zone known as Gift City.

“The Monetary Authority of Sin-gapore urges all parties concerned to work together to fi nd an amicable so-lution that will continue to encourage investments in the Indian market,” an MAS spokeswoman said in an e-mailed statement. “A speedy resolution to the dispute will be in the best interest of all parties concerned.”

The NSE declined to immediately comment. The SGX said in a statement yesterday that it reserves all rights in respect of damages caused by the NSE’s suit. Both parties will have a meeting with the arbitrator, who will attempt to decide the case by June 16, accord-

ing to a Mumbai High Court order on Tuesday. The parties can raise issues including jurisdiction and whether the dispute is subject to arbitration, the judge said. The court last week issued an interim injunction against the SGX.

Tensions between the companies erupted in January, when the NSE asked its counterpart to delay plans to intro-

duce single-stock futures that would track some of India’s largest compa-nies. The SGX rebuff ed the request, and on February 9 India’s three national ex-changes said they’d cancel their agree-ments with overseas bourses.

The NSE sued the SGX last week, claiming the derivatives planned for the June 4 start were “unlicensed prod-

ucts” and “identical” to the Nifty-branded futures.

“The range of available fi nancial in-struments for investors to hedge ex-posures and manage risks in Indian equities will be reduced,” because of the fi ght between the exchanges, MAS said. “A prolonged dispute will impact the accessibility of the Indian equities

market to international investors.”The dispute has scuppered talks

between the SGX and the NSE about creating a cross-border trading link, according to people familiar with the matter. The SGX said in its yesterday’s statement that it “remains open to a collaborative long-term solution that will benefi t Indian markets.”

A frontal view of the Singapore Exchange building. The SGX said it will delay the start of its new Indian stock futures contracts, as a court dispute in Mumbai heads to arbitration.

BUSINESS5Gulf Times

Wednesday, May 30, 2018

Hedge fund managers reduce bullish positions in petroleumBy John KempLondon

Hedge fund managers were busy reducing bullish positions in petroleum well before Opec and its allies indicated in the middle of last week that they would consider relaxing output curbs.Hedge funds and other money managers reduced their net long position in the six major petroleum futures and options contracts in each of the five weeks to May 22 by a total of 108mn barrels. The reduction has been concentrated in crude, where net long positions in Brent and WTI were cut by 169mn barrels over those five weeks.Liquidation was heaviest in Brent (-131mn barrels over six weeks) rather than NYMEX and ICE WTI (-51mn barrels over four weeks).It was partly off set by increased net length in fuels, especially US gasoline (34mn barrels), with smaller increases

in US heating oil (+26mn barrels) and European gasoil (+2mn barrels).Liquidation hit near-term Brent futures prices particularly hard, since most hedge fund positions are held in contracts just a few months from expiry, which has helped push near-term contract prices into contango.Portfolio managers cut their net long position in Brent by almost 50mn barrels in the week to May 22, the largest one-week reduction since before the rally started in June 2017.Hedge funds have continued to add bullish positions in fuels, especially gasoline, in a bet consumption will remain relatively strong.But the decision to pare positions in crude points to deeper unease about the sustainability of the rally in oil prices over the last 10 months.Hedge funds started to reduce their net long position in petroleum around the time US President Donald Trump used Twitter on April 20 to blame Opec

for pushing up oil prices. For all the bullish commentary around oil prices in recent weeks, hedge fund managers have used rising prices to realise some profits rather than increase their positions.Hedge fund positioning in the petroleum complex had become exceptionally stretched, with long positions outnumbering short ones by a record ratio of 14:1 by April 17.Positioning was even more lopsided in Brent, where portfolio managers held more than 20 long positions for every short one, according to exchange and regulatory data.Since then, however, fund managers have cut long positions across the petroleum complex by 52mn barrels and boosted shorts by 57mn barrels.The number of shorts has risen from just 109mn barrels to 166mn barrels, the highest for five months since the middle of December.Positioning is still stretched, but much

less so than before, with long positions now outnumbering shorts by 9:1 in petroleum and 7:1 in Brent.Large concentrations of hedge fund positions have normally preceded a sharp reversal in the price trend over the last four years.Recent sharp falls in oil prices, especially Brent, are therefore not surprising, given that fund managers have been steadily liquidating long positions and adding shorts for more than a month.Comments from senior Opec and non-Opec off icials suggesting they would consider raising output to compensate for lost production from Venezuela and sanctions on Iran catalysed a sharp fall in oil prices. But the market had been primed for a sharp correction given steady hedge fund selling over the last five weeks.

John Kemp is a Reuters market analyst. The views expressed are his own.

Brazil farm exports hurt as strike holds up soybeans, sugarBloombergSao Paulo

An nine-day-old strike by Bra-zilian truck drivers is begin-ning to aff ect global com-

modity markets as soybean traders delay shipments and the country’s vast sugar industry shuts down more of its processing plants.

Chinese food giant Cofco Interna-tional temporarily suspended soybean shipments from Santos, Brazil’s largest port, because of a shortage of cargoes for export, according to people with direct knowledge of the matter, who asked not to be identifi ed because the information hasn’t been published.

All of Sao Paulo state’s sugar cane mills will suspend operations un-til May 29 amid a shortage of diesel, needed to power plants, according to industry group Unica.

While many blockades have been lifted and the government has signed decrees aimed at getting the truck-ers back to work, protests continued on Monday and many businesses and public schools remained shut.

Road blockades are easing on Tues-day, but protests remain in almost all the country.

The impact on sugar and soybeans will probably be “short-lived,” said Warren Patterson, a commodities strategist at ING Group. “The Brazil-ian government has already cut diesel prices, in a bid to end the strike.”

Petrobras is also coming under pres-sure as it’s still unclear if the state-run oil fi rm will partly foot the bill for fuel subsidies off ered by the government to end the strike.

Cofco doesn’t have enough soybeans to fi ll a vessel expected to dock on Monday, said one of the people. A Cof-co spokesman declined to comment on

the disruption. Other soy exporters at Santos used inventories over the week-end to keep shipments moving but the amount now remaining is very low, the people said.

Archer-Daniels-Midland Co, an-other major processor of soybeans, said May 25 it had halted or slowed some operations after running out of storage space.

Brazil is the world’s largest soybean exporter and its supplies have assumed an even greater importance in recent weeks after China, the biggest buyer, threatened to impose tariff s on sup-plies from the US, the second-largest shipper.

Delays to Brazilian exports may en-courage Chinese importers to take more US beans.

Brazil is home to the world’s largest sugar industry, and most of its mills have halted sugar-cane harvesting amid a lack of fuel. Copersucar, Brazil’s

top sugar shipper, said on Friday it may declare force majeure on some con-tracts because the strike has depleted inventories at its terminal at Santos.

Biosev, the Louis Dreyfus Co unit that’s Brazil’s second-biggest sugar producer, said it suspended operations at two cane mills, and others would run out of fuel in the next two days. Cane processing in the Centre-South re-gion may be cut by 10.9mn tonnes in the second half of May because of the strike, INTL FCStone said on Monday in a report.

Sugar futures traded in New York climbed 6.9% last week, this year’s biggest weekly gain, and were 0.6% higher yesterday.

“Brazil’s sugar production might ul-timately be little aff ected for the 2018 season,” said Tobin Gorey, a strategist at Commonwealth Bank of Australia. “But near-term, some of the chain of promises in the physical sugar market

will not be fulfi lled, and that generally creates a scramble to buy.”

The number of vessels waiting to dock in Santos increased to 18 on May 25 from 10 on May 21, when the strike began, according to data from shipping agency Williams. The fl ow of trucks to the port was still halted Monday and the delivery of goods to export termi-nals has been reduced as a result, ac-cording to the port authority.

In Paranagua Port, the second-larg-est in Brazil for grain shipments, fi ve vessels that were supposed to carry about 300,000 tonnes of soy meal haven’t been able to sail in the past seven days because there’s not enough of the commodity to load them, a press offi cial from the port authority said on Monday.

Another three vessels slated to transport pulp and sugar also failed to depart from the port because of a shortage of supplies. Soybean ship-

ments from Paranagua haven’t been aff ected so far as exporters have used inventories stored at the port’s termi-nals.

Coff ee shipments are halted at most Brazilian port terminals, Nelson Car-valhaes, president of exporters group CeCafe, told reporters. Plants that supply soybean oil, biodiesel and or-ange juice plants have also had their operations suspended, as their ware-houses are full.

JBS, the world’s largest meat compa-ny, has halted all domestic slaughter-ing of cattle, hogs and chicken because it can’t get product to customers nor receive deliveries of feed, according to a person familiar with the matter.

“Beef production levels in Brazil are now close to zero,” Hyberville Neto, an analyst at Scot consultancy, said in a telephone interview. “The cattle mar-ket has been completed frozen since Thursday.”

Currency derivative markets signal more weakness for euroReutersLondon

Currency derivatives tied to the outlook for the euro fell to their lowest level

in more than a year yesterday, pointing to further weakness for the single currency as a sharp selloff in Italian debt spilled into foreign exchange markets.

Risk reversals on the euro, a gauge of demand for options on a currency rising or falling, fell to their lowest levels since late April 2017, indicating that de-mand for euro puts has surged to protect downside risks.

Markets are concerned that snap elections that could take place in Italy as soon as August, might serve as a quasi-referen-dum on the country’s role in the European Union and eurozone and strengthen its eurosceptic parties even further.

Risk reversals for one-month and three-month tenors are now at levels last seen just after French presidential elections in 2017. The sharp drop in risk re-versals in recent weeks indicate that sentiment towards the euro has fl ipped considerably since the single currency’s rally in the opening weeks of 2018.

Weakness in the single cur-

rency since February has wrong-footed market participants who had bought derivative structures betting on further currency strength through purchasing euro calls and funding them by selling euro puts.

But that left them exposed to big losses if the currency weak-ened sharply. The euro has fallen more than 7% since hitting $1.2556 in mid-February with most of its losses coming in the last two weeks. JP Morgan strategists said hedge funds are short the euro.

“A decent euro short base by hedge funds is consistent with what our FX trading desks are seeing,” Nikolaos Panigirt-zoglou, a strategist at JP Morgan said in a note.

“Rather than taking any di-rectional calls on the euro, mar-kets are gearing up for more volatility in the currency,” said a derivatives trader at a US bank.

The euro dropped below $1.16 for the fi rst time in 6-1/2 months yesterday, down 0.3% on the day.

Against the Swiss franc, it fell by a similar margin to 1.1528 francs. Despite the selloff in the single currency in recent days, down more than 3% in the last two weeks, fund managers said that longer term institutional funds were still holding on to their euro positions.

US yields tumble in line with European bonds

US Treasury yields fell to multi-

week lows yesterday, pressured by

declines in the European govern-

ment bond market after a deepen-

ing political crisis in Italy fuelled a

flight to safe-haven assets.

US 10-year note and 30-

year bond yields, which move

inversely to prices, dropped to

seven-week lows, while those on

two-year notes slid to six-week

troughs. The fall in yields came

after Italy’s president appointed

a former International Monetary

Fund off icial as interim prime

minister, who has to plan for fresh

elections and pass a budget.

Investors believe the election

will further underpin a man-

date for anti-establishment,

euro-skeptic politicians, stoking

worries about Italy’s future in the

eurozone. “We had a lot of pres-

sured buying in the high-grade

European sovereign bond market

that immediately spilled over to

Treasuries,” said Jim Vogel, inter-

est rates strategist, at FTN Finan-

cial in Memphis, Tennessee.”The

European bond market is not just

large enough to meet immediate

demand.

To manage the global risk

that’s focused on the European

Union, investors have to come

over and buy Treasuries,” he

added. Analysts believed though

that the Italian situation is con-

tained for now.

The spreads of other peripheral

government bond yields over

German Bunds have increased,

but not by a substantial level.

“This suggests that investors are

for now fairly confident that the

eurozone as a whole will be able

to withstand the current political

uncertainty in Italy,” said Stephen

Brown, European economist at

Capital Economics in London.

Posco may examine more lithium deals after Galaxy pactBloombergMelbourne

Posco, South Korea’s largest steel-maker, could examine further deals with a key Australian lithium

producer after agreeing to acquire a de-velopment project as part of its drive to tap growth in the electric vehicle supply chain.

An agreement with Galaxy Resources will see Posco pay $280mn to add ten-ements north of the Australian com-pany’s Sal de Vida development project in northwest Argentina and they’ll co-operate on their respective development plans, infrastructure and logistics, the Perth-based company said Tuesday.

“Once we’ve established a relationship with them, if it makes sense to partner up on other opportunities, then I’m sure that both parties will be open to having that conversation,” Galaxy’s Manag-ing Director Anthony Tse said yesterday in a phone interview. “We bring a lot of lithium knowhow, and they are just get-ting started – they have a reasonable amount of project execution expertise, and bring that credibility as well as fi -nancial strength.”

Posco is looking to the electric vehicle boom for new sources of growth, devel-oping battery operations and introduc-ing South Korea’s fi rst commercial lithi-um production. It struck a lithium supply deal in February with Pilbara Minerals Ltd and has entered separate partner-ships this year for the output of battery raw materials with Samsung SDI Co and Zhejiang Huayou Cobalt Co.

Securing sources of lithium raw mate-rials is key for Posco as it seeks to expand production of lithium-ion batteries. Once a deal for the Argentina tenements is completed, “it is possible for us to look into various ways to cooperate with Gal-axy Resources,” Posco spokesman Kang Min Suk said by phone.

Galaxy’s shares surged as much as 18% in Sydney trading yesterday, the most since November 2016. Posco declined as much as 1.4%.

The price of the deal with Posco im-plies the neighbouring Sal de Vida project

has a value of about $725mn, Tse said in the interview. Galaxy’s adviser JPMorgan Chase & Co is receiving a “very, very en-couraging” level of interest in a process to examine a potential sale of a minority stake in the project, while discussions are continuing with carmakers and other parties over supply deals, he said.

Sal de Vida is forecast to produce an annual 25,000 tonnes of battery-grade material for about 40 years. Proceeds from the sale to Posco will be used toward the project’s estimated $474mn develop-ment cost, Tse said.

Posco isn’t the only industrial heavy-weight in Asia positioning for the surge in rechargeable battery demand. South Korea’s SK Innovation Co, seeking raw materials for an electric vehicle battery plant in Hungary, agreed a cobalt and nickel supply deal with Australian Mines, while Japan’s Marubeni Corp plans to work with Northvolt AB on manufactur-ing lithium-ion batteries.

South Korean companies are rac-ing to match China’s investments in the battery supply chain and moving faster than rivals in Europe and North Amer-

ica to strike deals, according to Perth-based Pilbara Minerals. Posco is said to be among parties that have approached Australia’s Mineral Resources Ltd about buying a stake in one of its lithium mines, people with knowledge of the matter said this month.

Posco’s consortium with Samsung SDI is among parties picked to invest a total of $754mn to produce raw materials for the battery supply chain in Chile and will seek to begin output within the next two years, the country’s state development agency Corfo said in March.

Pedestrians cross a road in front of the Posco Centre in Seoul. South Korea’s largest steelmaker could examine further deals with a key Australian lithium producer after agreeing to acquire a development project as part of its drive to tap growth in the electric vehicle supply chain.

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 Exchange Index Etf

Qatar Cinema & Film DistribAl Rayan Qatar Etf

Qatar Insurance CoOoredoo Qpsc

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

Investment Holding GroupGulf Warehousing Company

Gulf International ServicesEzdan Holding Group

Doha Insurance CoDoha Bank Qpsc

Dlala HoldingCommercial Bank Pqsc

Barwa Real Estate CoAl Khaleej Takaful Group

Aamal Co

77.00

62.20

8.29

14.31

5.33

6.11

61.96

54.92

162.75

49.26

40.20

52.80

31.21

121.49

15.01

50.00

5.30

136.33

5.40

195.99

91.11

22.00

22.00

34.28

71.00

9.50

6.55

16.05

148.01

58.90

45.50

34.00

10.98

108.30

28.48

5.53

41.97

17.25

9.00

13.00

27.10

13.00

37.80

33.85

11.30

9.66

-1.03

0.81

-0.72

0.14

-0.74

-0.65

-0.03

-0.15

0.47

0.00

0.02

-0.09

0.91

-0.01

-1.25

0.00

-1.85

-1.17

0.00

-0.25

0.12

0.00

0.55

0.94

0.00

-0.63

0.00

-1.35

1.87

1.55

0.60

0.24

-0.18

-0.64

0.67

-0.36

-0.02

-0.29

0.67

0.00

-0.37

0.00

1.45

-0.44

4.44

-2.82

500

6,142

485,223

64,139

14,225

13,588

76,923

9,440

2,785,387

-

9,096

67,156

14,496

674,979

1,901,308

-

29,353

74,737

239,943

241,484

12,750

-

53,079

77,578

243,169

44,505

311,079

1,032,602

20,038

71,898

5,515

520,950

11,503

517,675

6,403

514,787

25,474

86,036

194,295

-

312,061

6,244

219,043

86,973

749

2,100

QATAR

Company Name Lt Price % Chg Volume

SAUDI ARABIA

United Wire Factories CompanEtihad Etisalat Co

Dar Al Arkan Real Estate DevAlawwal Bank

Rabigh Refining And PetrocheBanque Saudi Fransi

Saudi Enaya Cooperative InsuMediterranean & Gulf Insuran

Saudi British BankRed Sea International Co

Takween Advanced IndustriesSabb Takaful

Saudi Arabian Fertilizer CoNational GypsumSaudi Ceramic Co

National Gas & IndustrializaSaudi Pharmaceutical Industr

ThimarNational Industrialization C

Batic Investments And LogistSaudi 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 Energy And Development

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

Riyad BankThe National Agriculture Dev

Halwani Bros CoArabian Pipes Co

Eastern Province Cement CoAl Gassim Investment Holding

Filing & Packing Materials MSaudi Cable Co

Tihama Advertising & PublicSaudi Investment Bank/The

Astra Industrial GroupSaudi Public Transport Co

Taiba Holding CoSaudi Industrial Export Co

Saudi Real Estate CoSaudia Dairy & Foodstuff Co

National Shipping Co Of/TheMethanol Chemicals Co

Chubb Arabia Cooperative InsMobile Telecommunications Co

Saudi Arabian Coop Ins CoAxa Cooperative Insurance

Alsorayai GroupBank Albilad

Al-Hassan G.I. Shaker CoWataniya Insurance Co

Abdullah Al Othaim MarketsHail Cement

Saudi Re For Cooperative Rei

17.80

20.12

10.14

13.80

25.40

31.25

8.90

19.42

29.60

18.04

11.42

20.94

62.10

13.20

19.94

30.10

30.65

30.55

20.36

39.70

21.06

41.35

18.18

20.46

90.50

28.10

49.80

174.00

31.00

72.70

28.25

8.22

16.58

26.80

22.78

18.30

33.85

27.80

96.20

10.14

37.00

123.00

13.98

5.01

63.80

27.60

15.22

15.52

24.50

20.00

29.00

180.00

41.75

19.00

16.30

15.00

24.18

29.95

11.14

10.18

38.90

13.44

8.68

6.88

25.65

9.10

14.70

33.95

50.30

12.64

24.90

12.06

34.55

8.32

47.50

17.18

18.80

15.26

30.60

224.00

31.50

89.90

28.50

9.22

21.86

6.46

17.50

24.00

20.96

23.52

10.80

25.15

73.20

9.07

8.15

1.25

-5.27

-3.80

0.00

0.00

2.29

-3.26

0.00

0.00

-1.74

1.42

-0.95

0.00

-0.60

1.22

0.33

0.99

-0.97

0.30

-1.73

-0.09

0.24

0.00

-2.11

-0.55

0.54

1.94

-0.46

-2.21

1.82

-0.35

-0.72

1.47

1.90

0.62

-2.03

1.96

0.36

-0.82

2.94

0.68

1.65

0.58

-0.79

-1.39

0.73

-1.42

0.13

-0.16

-1.48

-1.86

1.47

2.20

0.53

0.12

-0.53

0.33

1.35

-0.54

1.80

-0.26

-0.44

-1.36

-1.01

0.20

-1.09

-0.68

-0.73

0.00

-1.25

0.00

0.00

0.00

-2.46

-1.76

-0.12

0.64

0.66

0.00

1.36

-0.47

-1.53

-0.18

-0.22

-0.64

0.31

1.16

-4.19

0.38

1.03

0.75

0.20

0.00

0.00

0.12

137,036

4,716,021

32,072,481

387,537

1,218,174

320,313

885,127

53,778

619,465

39,873

1,849,830

206,275

245,486

236,556

61,465

41,737

92,871

107,281

887,734

91,351

725,665

105,653

103,786

70,639

41,791

162,592

13,326

57,429

90,033

430,708

106,550

592,759

332,123

54,238

71,735

127,247

26,295

210,352

59,173

1,013,748

2,931,817

5,988,763

5,389,675

335,501

141,670

83,401

44,100

55,812

143,137

86,968

61,167

56,929

461,603

36,578

78,347

80,777

41,505

507,974

179,319

99,548

93,582

105,338

211,865

763,474

84,404

241,893

683,456

64,070

1,375

472,676

20,997

176,242

58,232

237,433

254,117

112,969

107,079

141,828

40,762

75,327

364,261

66,207

111,888

345,464

54,416

1,143,431

41,797

128,965

438,596

386,132

672,244

14,840

70,143

331,427

328,890

Company Name Lt Price % Chg Volume

Solidarity Saudi Takaful CoAmana Cooperative Insurance

Alabdullatif Industrial InvSaudi Printing & Packaging C

Saudi Paper Manufacturing CoAlinma Bank

Almarai CoFalcom Saudi Equity Etf

United International TranspoHsbc Amanah Saudi 20 Etf

Saudi International PetrocheFalcom Petrochemical Etf

Walaa Cooperative InsuranceBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath InsuranceAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ ShamsSahara Petrochemical Co

Herfy Food Services CoSaudi Ind Investment Group

Salama Cooperative InsuranceEmaar Economic City

Alahli Takaful CoAnaam International Holding

Saudi Telecom CoAl Alamiya Cooperative Insur

Saudi Industrial Services CoAl-Ahsa Development Co.

National Co For Glass In/TheDur Hospitality Co

Tabuk Cement CoSasco

Saudi CementAseer Trading Tourism & Manu

Nama Chemicals CoSaudi Arabian Mining Co

Yanbu Cement CoSaudi Fisheries

Ash-Sharqiyah Development CoMakkah Construction & Devepl

Al Jouf CementAbdullah A.M. Al-Khodari Son

Knowledge Economic CityAl-Ahlia Cooperative Insuran

Al Rajhi Co For Co-OperativeAlkhodar Ab Equity

Kec Ab EquityAlahlia Ab Equity

Arcci Ab EquityAppc Ab Equity

Albabtai Ab Equity

0.50

-0.71

-0.78

0.00

-1.49

0.39

-1.50

0.32

0.31

0.00

0.20

0.00

0.48

1.38

1.08

1.61

-1.99

0.59

0.28

-2.40

-0.98

3.38

-3.07

0.51

-1.79

0.57

0.00

2.08

0.27

1.05

0.53

-2.42

0.34

1.75

-0.27

2.28

0.84

-1.04

0.47

-0.53

-0.39

-1.18

0.35

0.53

-0.19

-0.75

-0.55

-0.65

-0.11

-4.58

-0.67

3.27

-2.42

0.59

-0.97

-0.34

1.58

-1.17

0.77

108,008

158,953

107,014

161,052

399,328

28,772,163

225,452

317,244

215,563

-

271,818

-

47,831

6,824,240

2,451,952

825,321

58,117

18,922

193,520

172,305

76,352

645,933

135,030

105,975

37,660

953,484

28,804

1,099,924

36,027

894,527

44,189

269,498

201,989

131,450

170,171

276,335

31,104

76,787

160,442

302,264

149,828

116,989

511,826

354,628

237,786

44,752

43,284

17,223

231,460

3,212,799

446,805

228,304

64,986

86,334

233,650

38,253

4,603,248

694,404

681,693

SAUDI ARABIA

Company Name Lt Price % Chg Volume

Sultan Center Food ProductsKuwait Foundry Co Sak

Kuwait Financial Centre SakAjial Real Estate Entmt

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

A’ayan Real Estate Co SakInvestors Holding Group Co.K

Al-Mazaya Holding CoAl-Madar Finance & Invt CoGulf Petroleum Investment

Mabanee Co SakcInovest Co Bsc

Al-Deera Holding CoMena Real Estate Co

Amar Finance & Leasing CoUnited Projects For Aviation

National Consumer Holding CoAmwal International InvestmeEquipment Holding Co K.S.C.C

Arkan Al Kuwait Real EstateGfh Financial Group Bsc

Energy House Holding Co KscpKuwait Co For Process PlantAl Maidan Dental Clinic Co KNational Shooting CompanyAl-Ahleia Insurance Co Sakp

Wethaq Takaful Insurance CoSalbookh Trading Co Kscp

Aqar Real Estate InvestmentsHayat Communications

Soor Fuel Marketing Co KscTamkeen Holding Co

Burgan Co For Well DrillingKuwait Resorts Co KsccOula Fuel Marketing Co

Palms Agro Production CoMubarrad Holding Co Ksc

Shuaiba Industrial CoAan Digital Services Co

First Takaful Insurance CoKuwaiti Syrian Holding Co

National Cleaning CompanyUnited Real Estate Company

AgilityKuwait & Middle East Fin Inv

Fujairah Cement IndustriesLivestock Transport & Tradng

International Resorts CoNational Industries Grp Hold

Warba Insurance CoFirst Dubai Real Estate Deve

Al Arabi Group Holding CoMobile Telecommunications Co

Eff ect Real Estate CoTamdeen Real Estate Co KscAl Mudon Intl Real Estate Co

Kuwait Cement Co KscSharjah Cement & Indus Devel

Kuwait Portland Cement CoEducational Holding Group

Asiya Capital Investments CoKuwait Investment Co

Burgan BankKuwait Projects Co Holdings

Al Madina For Finance And InKuwait Insurance Co

Al Masaken Intl Real EstateIntl Financial Advisors

First Investment Co KsccAl Mal Investment Company

Bayan Investment Co KsccEgypt Kuwait Holding Co Sae

Coast Investment DevelopmentPrivatization Holding Compan

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 And

67.50

195.00

101.00

135.00

44.50

170.00

28.90

47.70

843.00

312.00

265.00

727.00

486.00

219.00

259.00

35.80

29.40

0.00

45.50

12.80

91.00

74.50

25.80

639.00

71.00

20.20

25.50

0.00

690.00

0.00

56.00

27.50

74.90

103.00

30.90

171.00

0.00

17.00

425.00

26.10

44.80

74.00

80.00

119.00

16.90

80.00

61.00

126.00

80.00

57.00

225.00

20.70

44.00

32.80

51.00

59.00

753.00

21.50

75.00

186.00

21.00

150.00

62.00

40.00

72.10

379.00

18.00

383.00

29.50

419.00

88.00

1,006.00

309.00

41.00

107.00

244.00

243.00

28.40

280.00

77.90

26.00

39.00

20.90

38.90

342.00

33.50

59.50

89.90

7.00

30.00

32.60

348.00

28.00

21.40

39.90

105.00

0.75

0.52

0.00

2.27

0.00

0.00

0.00

3.70

0.24

-0.32

0.00

0.28

0.00

0.46

0.39

-5.54

-2.00

0.00

1.34

0.79

0.55

-3.12

2.79

0.16

0.00

0.00

-5.56

0.00

0.00

0.00

-3.45

-2.48

-0.79

-1.90

-3.13

0.00

0.00

0.00

0.00

0.00

-0.44

0.00

0.00

-1.65

0.00

0.00

1.67

2.44

0.00

-1.72

0.00

2.99

0.00

-0.30

0.00

0.00

-0.26

-6.93

0.00

0.00

0.00

0.67

0.00

-2.44

0.00

-0.26

-17.81

0.00

-1.67

0.00

0.00

0.00

0.00

-2.38

-2.73

-0.41

0.00

0.00

0.00

0.00

0.00

0.00

-0.48

-0.26

0.00

2.76

0.00

0.00

0.00

0.00

-2.69

-1.97

-3.45

0.00

0.00

0.00

60,437

35,621

1,000

9,000

11,500

9,105

85,000

917,833

233,769

350

1,339,960

1,859,948

1,841

2,722,826

889,754

1,000

80,311

-

36,000

206,501

217,621

1,547,500

249,790

70,405

72,011

7,495

103,946

-

500

-

100,755

150,430

4,441

1,185,229

500

6,415

-

105,001

11,633

43,979

500

100

100

121,107

2,000

17,557

75,090

842,872

8,200

195,200

10,000

50

49,728

463,421

51,647

68,000

416,200

5,000

50,000

9

373,277

381,828

9,372

50,000

85,000

687,551

203,900

100

450

2,752

2,000

28,787

7,000

62,815

54,281

585,478

557,396

6,500

8,366

95

197,159

24,710

150,370

93,090

53,674

718,937

10,000

20,200

73

11,606

676,000

497,252

30,545

533,970

283,429

25,000

KUWAIT

Company Name Lt Price % Chg Volume

Voltamp Energy SaogVision Insurance Saoc

United Power/Energy Co- PrefUnited Power Co Saog

United Finance CoUbar Hotels & Resorts

Takaful OmanTaageer 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

Phoenix Power Co SaocPackaging Co Ltd

OoredooOminvest

Oman United Insurance CoOman Telecommunications Co

Oman Refreshment CoOman Qatar Insurance Co

Oman PackagingOman Oil Marketing Company

Oman National Engineering AnOman Investment & Finance

Oman Intl MarketingOman Flour Mills

Oman Fisheries CoOman Europe Foods Industries

Oman Education & Training InOman Chromite

Oman ChlorineOman Ceramic Company

Oman Cement CoOman Cables Industry

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

National SecuritiesNational Real Estate Develop

National PharmaceuticalNational Mineral Water

National Life & General InsuNational Gas Co

National Finance CoNational Detergent Co Saog

National Biscuit IndustriesNational Bank Of Oman Saog

Muscat Thread Mills CoMuscat Insurance Co Saog

Muscat Gases Company SaogMuscat Finance

Muscat City Desalination CoMajan Glass Company

Majan CollegeHsbc Bank Oman

Hotels Management Co InternaGulf Stone

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 TourismDhofar Poultry

Dhofar Intl DevelopmentDhofar Insurance

Dhofar Fisheries & Food InduDhofar Cattlefeed

Dhofar Beverages CoConstruction Materials Ind

Computer Stationery IndsBankmuscat Saog

Bank SoharBank Nizwa

Bank Dhofar Saog

0.31

0.15

1.00

3.28

0.11

0.13

0.13

0.11

1.34

0.11

0.21

0.60

1.05

1.65

3.96

0.22

0.60

1.08

1.38

2.38

0.39

0.60

0.13

2.21

0.51

0.37

0.32

0.77

1.75

0.12

0.28

1.15

0.16

0.12

0.52

0.76

0.12

1.00

0.18

3.64

0.40

0.42

0.37

0.89

0.12

0.32

0.04

5.00

0.12

0.10

0.32

0.35

0.13

0.65

3.75

0.18

0.08

0.80

0.38

0.09

0.15

0.18

0.45

0.10

1.25

0.12

0.31

0.11

0.11

0.20

10.49

0.10

0.12

0.39

0.18

0.10

0.49

0.18

0.31

0.16

1.28

0.19

0.26

0.03

0.26

0.38

0.14

0.09

0.18

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.93

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

-2.04

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.75

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

-1.11

0.69

0.00

0.00

1.98

0.00

0.00

0.00

1.92

0.00

0.00

0.00

0.00

2.68

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.52

1.48

0.00

0.00

-

100,000

-

-

-

-

-

55,000

-

260

-

-

-

-

-

-

-

-

-

-

-

4,002

-

-

46,044

-

-

50,680

-

-

-

-

-

109,644

-

-

36,000

-

-

-

-

-

-

-

-

-

-

-

-

-

15,000

63,000

-

-

-

1,150

-

-

-

8,370

65,314

-

-

405,107

-

-

-

1,700,079

-

-

-

-

8,627,915

-

-

-

-

-

-

-

-

-

-

20,000

-

692,176

243,926

293,496

193,610

OMAN

Company Name Lt Price % Chg Volume

Aloula CoAl-Omaniya Financial Service

Al-Hassan Engineering CoAl-Fajar Al-Alamia Co

Al-Anwar Ceramic Tiles CoAl Suwadi Power

Al Sharqiya Invest HoldingAl Maha Petroleum Products M

Al 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

Al Ahlia Insurance Co SaocAhli Bank

Acwa Power Barka SaogAbrasives Manufacturing Co S

A’saff a Foods Saog0Man Oil Marketing Co-Pref

#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security

0.53

0.28

0.04

0.75

0.11

0.12

0.12

0.80

0.24

0.11

0.05

0.39

0.55

0.31

0.16

0.08

0.88

0.12

1.13

0.10

0.15

0.37

0.16

0.74

0.05

0.59

0.25

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.84

0.00

0.00

0.00

0.93

1.92

0.00

0.00

0.00

0.00

0.00

0.00

-0.83

0.00

0.00

1.32

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

-

-

-

-

205,492

34,675

-

-

-

525,220

118,745

-

-

-

12,166

402,000

-

10,765

-

-

733,446

-

-

-

-

-

-

-

-

-

-

-

-

-

OMAN

Company Name Lt Price % Chg Volume

Waha Capital PjscUnited Insurance Company

United Arab Bank PjscUnion National Bank/Abu Dhab

Union Insurance CoUnion Cement Co

Umm Al Qaiwain General InvesSudan Telecommunications Gro

Sharjah Islamic BankSharjah Insurance Company

Sharjah GroupSharjah 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 Qpsc

Oman & Emirates Inv(Emir)50%National Takaful Company

National Marine Dredging CoNational Investor Co/The

National Corp Tourism & HoteNational Bank Of Umm Al Qaiw

National Bank Of Ras Al-KhaiNational Bank Of Fujairah

Methaq Takaful InsuranceManazel Real Estate Pjsc

Invest BankIntl Holdings Co Pjsc

Insurance HouseGulf Pharmaceutical Ind Psc

Gulf Medical ProjectsGulf Cement Co

Fujairah Cement IndustriesFujairah Building Industries

Foodco Holding PjscFirst Abu Dhabi Bank Pjsc

Finance HouseEshraq Properties Co Pjsc

Emirates Telecom Group CoEmirates Insurance Co. (Psc)

Emirates Driving CompanyDana Gas

Commercial Bank InternationaBank Of Sharjah

Axa Green Crescent InsuranceArkan Building Materials Co

Alkhaleej InvestmentAldar Properties Pjsc

Al Wathba National InsuranceAl Qudra Holding Pjsc

Al Khazna Insurance CoAl Fujairah National Insuran

Al Dhafra Insurance Co. P.S.Al Buhaira National Insuranc

Al Ain Ahlia Ins. Co.Agthia Group Pjsc

Abu Dhabi Ship Building CoAbu Dhabi Natl Co For Buildi

Abu Dhabi National Takaful CAbu Dhabi National Oil Co Fo

Abu Dhabi National InsuranceAbu Dhabi National Hotels

Abu Dhabi National Energy Co

1.72

2.00

1.37

3.63

1.89

1.85

1.00

0.50

1.22

3.15

1.30

1.00

3.68

1.02

2.40

0.69

1.83

0.65

72.90

0.50

0.54

3.28

0.51

2.13

2.90

4.40

2.65

0.76

0.49

2.40

1.31

0.85

2.10

1.80

0.99

1.20

1.56

3.98

12.20

1.70

0.72

15.95

6.50

7.00

1.09

0.79

1.13

0.54

0.60

2.15

2.09

12.75

1.10

0.25

300.00

3.85

2.20

38.00

4.70

2.03

0.59

4.60

2.46

3.60

2.79

1.24

-1.71

0.00

0.00

-1.36

0.00

0.00

0.00

-3.85

-0.81

0.00

13.04

0.00

0.00

0.00

0.00

-1.43

0.00

-1.52

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-6.17

0.00

0.00

-3.68

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.24

0.00

0.00

0.63

0.00

0.00

0.00

0.00

0.00

0.00

-1.64

0.00

-0.48

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.21

0.00

0.00

0.00

-0.81

0.00

5.28

1.64

3,103,044

-

-

84,300

-

-

-

20,469

1,623,773

-

30,000

-

-

-

429,000

101,000

-

2,212,623

-

-

-

60,000

-

-

-

24,310

-

228,232

1,514,280

800,000

909,017

-

-

-

-

-

-

-

1,053,031

-

192,900

686,764

-

-

1,168,979

-

-

-

258,510

-

4,017,246

-

-

-

-

-

-

-

206,190

-

30,038

-

78,905

-

1,900

89,068

UAE

Company Name Lt Price % Chg Volume

Zain Bahrain BsccUnited Paper Industries Bsc

United Gulf Holding BscTrafco Group Bsc

Takaful International CoSeef Properties

National Bank Of Bahrain BscNass Corp Bsc

Khaleeji Commercial BankIthmaar Holding Bsc

Investcorp Bank -$UsInovest Co Bsc

Gulf Hotel Group B.S.CGfh Financial Group Bsc

Esterad Investment Co B.S.C.Eskan Bank Realty Income Tr

Delmon Poultry CoBmmi Bsc

Bbk BscBahrain Telecom Co

Bahrain National HoldingBahrain Kuwait Insurance

Bahrain Islamic BankBahrain Flour Mills Co

Bahrain Duty Free ComplexBahrain Commercial Facilitie

Bahrain Cinema CoArab Banking Corp Bsc-$Us

Aluminium Bahrain BscAlbaraka Banking Group

Al-Salam BankAhli United Bank B.S.C

#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security

0.09

0.00

0.70

0.00

0.00

0.23

0.61

0.11

0.08

0.11

0.00

0.27

0.52

0.38

0.11

0.10

0.00

0.72

0.44

0.24

0.44

0.35

0.13

0.00

0.74

0.75

`

0.32

0.61

0.31

0.11

0.59

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

0.88

0.83

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

0.68

0.00

1.59

0.00

1.64

-0.89

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

800,000

-

2,500

-

-

57,000

2,700

15,000

50,000

208,000

-

50,000

14,445

616,071

87,500

90,000

-

9,791

20,000

265,530

4,500

57,586

12,073

-

10,640

10,000

5,000

35,460

85,000

3,163,182

19,000

512,636

-

-

-

-

-

-

-

-

-

-

-

-

-

BAHRAIN

Company Name Lt Price % Chg Volume

Specialities Group Holding CAbyaar Real Eastate Developm

Kgl Logistics Company KsccCombined Group Contracting

Jiyad Holding Co KscBoubyan Intl Industries Hold

Gulf Investment House KscBoubyan Bank K.S.C

Ahli United Bank B.S.COsos Holding Group Co

Al-Eid Food KscQurain Petrochemical Industr

Ekttitab Holding Co SakReal Estate Trade Centers Co

Acico Industries Co KsccKipco 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 TelecommuniUnicap Investment And Financ

Al Salam Group Holding CoAl Aman Investment Company

Mashaer Holding Co KscManazel Holding

Tijara And Real Estate InvesJazeera Airways Co Ksc

Commercial Real Estate CoNational International Co

Taameer Real Estate Invest CGulf Cement Co

Heavy Engineering And Ship BNational 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 Ind

Kuwait Finance HouseGulf North Africa Holding Co

Hilal Cement CoOsoul Investment Kscc

Gulf Insurance Group KscUmm Al Qaiwain General Inves

Aayan Leasing & InvestmentAlrai Media Group Co KscNational Investments CoCommercial Facilities CoYiaco Medical Co. K.S.C.C

Munshaat Real Estate ProjectNoor Financial Investment Co

Al Tamdeen Investment CoCredit Rating & Collection

Ifa Hotels & Resorts Co. K.SSokouk Holding Co Sak

Warba Bank KscpViva Kuwait Telecom Co

Mezzan Holding Co Kscc

63.50

18.70

42.10

450.00

97.00

30.50

20.50

488.00

173.00

83.00

0.00

331.00

27.00

21.40

210.00

64.50

769.00

130.00

78.00

0.00

108.00

3,400.00

132.00

50.00

24.00

32.00

854.00

57.90

33.00

53.90

46.90

30.50

57.00

725.00

74.00

63.00

29.10

87.00

325.00

110.00

26.10

1,050.00

43.80

415.00

45.60

337.00

360.00

0.00

46.50

71.40

60.00

650.00

70.50

30.30

103.00

89.30

164.00

141.00

85.00

48.70

0.00

22.50

101.00

40.30

239.00

700.00

713.00

8.55

0.54

0.00

0.00

-1.02

0.00

-1.91

1.67

0.58

0.00

0.00

-0.30

1.89

-0.47

-6.67

0.00

0.00

0.00

0.00

0.00

-1.82

-1.45

10.00

0.00

0.00

0.00

0.35

5.27

-0.30

0.00

5.39

4.45

0.00

0.00

2.49

2.44

0.00

0.00

-6.07

0.00

-1.51

0.00

0.00

0.00

0.00

0.00

-2.70

0.00

-16.96

0.00

0.00

8.33

0.00

1.00

0.00

0.68

0.61

0.00

-1.16

-1.42

0.00

0.00

0.00

-0.25

-0.42

-0.14

0.00

642,009

305,300

597,780

89,410

2,972

213,890

453,090

2,051,371

2,121,681

2,500

-

533,510

500

29,650

20,000

10,000

1

199,984

793,060

-

856,900

53,485

144

500

984

50,000

210

5,000

165,000

213,459

1

1,807,600

25

92,285

10,825,785

1,500

12,064

582

74,610

73,464

183,880

64

446,000

151,482

283,299

8,000

2,833

-

1,531,026

60,136

126,825

100

1,600

450,889

10,100

915

18,280

57,542

155,590

102,096

-

3,015

250

222,850

111,528

25,340

99,252

KUWAIT

Company Name Lt Price % Chg Volume

LATEST MARKET CLOSING FIGURES

Gulf Times Wednesday, May 30, 2018

BUSINESS6

20.00

14.00

12.70

18.90

7.94

20.60

59.10

31.30

32.60

32.40

20.50

31.90

31.20

14.70

83.90

28.45

68.80

20.62

14.40

21.16

25.15

38.20

14.50

11.86

33.00

17.50

47.50

27.00

22.46

13.44

28.45

12.12

87.90

29.05

14.70

11.66

19.30

19.00

12.92

14.98

50.80

11.76

28.85

56.60

26.25

26.50

54.50

76.40

9.40

7.70

11.82

10.74

64.50

51.10

25.45

29.00

9.64

25.40

46.05

CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

European stocks, euro rocked by Italy turmoilAFP London

European stock markets and the euro plunged again yesterday as political uncertainty in Italy

stoked fears about the country poten-tially crashing out of the eurozone.

Asset prices came off the day’s worst levels briefl y as Italian top bankers called for calm, saying that the econo-my is in decent shape despite political jitters, but then slid again towards the close.

Worries that Spain is also entering political crisis sparked further nerv-ousness about the fi nances of the eu-rozone’s southern fl ank.

Across the Europe, Milan’s FTSE MIB fell 2.7% to close at 21,350 points; Madrid’s IBEX 35 plunged 2.5% at 9,521.30; London’s FTSE 100 was down 1.3% at 7,632.64; Paris’ CAC 40 dropped 1.3% at 5,438.06, while Frank-furt’s DAX 30 lost 1.5% at 12,666.51.

The Milan and Madrid stock ex-changes closed the day sharply lower, as did all the main European equity markets.

“The fear of another election and political uncertainty in Italy is driving signifi cant losses throughout Europe,” said Joshua Mahony, market analyst at IG traders.

Italy’s 10-year bond yields surged to more than 300 basis points above Ger-many’s, refl ecting investor worry over the prospect of a fresh eurozone crisis.

Bankers tried but failed to stop the haemorrhage.

“There can be only emotional rea-sons for what we are seeing on the markets today,” said Bank of Italy gov-ernor Ignazio Visco.

Carlo Messina, the CEO of the In-tesa Sanpaolo bank, said that “frankly, the fundamentals of the country a very solid” and that market movements were “completely disconnected” from the fundamentals.

The euro meanwhile struck the low-est level against the dollar since last July.

Italy, the eurozone’s third-biggest economy after Germany and France, has been plunged into crisis with Pres-ident Sergio Mattarella at the weekend vetoing the nomination of a fi erce eu-rosceptic as economy minister.

The move led the prime minister-designate to step down, scuppering the bid by the anti-establishment Five Star Movement and the far-right League to form a government.

Mattarella then named Carlo Cot-tarelli, a pro-austerity economist for-merly with the International Monetary Fund, to lead a technocrat government, with another election likely in the au-tumn.

The chaotic developments have spooked investors, who fear another election could see a better result for the essentially anti-EU parties.

“We may now be in for an extend-ed period of heightened uncertainty ahead of fresh elections,” Ray Attrill, head of foreign exchange strategy at National Australia Bank in Sydney, said in a note to clients.

Adding to the selling pressure was a brewing crisis in Spain, where Prime Minister Mariano Rajoy faces a no-confi dence vote after his party was found guilty of benefi ting from illegal funds in a massive graft trial.

Wall Street extended opening losses to match the extent of Europe’s down-turn approaching midday in New York.

Army off icers march inside the Quirinal Palace in Rome yesterday. Asset prices came off the day’s worst levels briefly as Italian top bankers called for calm, saying that the economy is in decent shape despite political jitters, but then slid again towards the close.

BUSINESS7Gulf Times

Wednesday, May 30, 2018

Apple IncMicrosoft Corp

Exxon Mobil CorpJohnson & JohnsonGeneral Electric Co

Jpmorgan Chase & CoProcter & Gamble Co/The

Walmart 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

Caterpillar IncTravelers Cos Inc/The

187.37

97.68

77.60

119.15

14.05

106.16

74.08

81.90

48.02

35.39

129.29

120.58

42.63

54.99

58.14

42.67

185.19

140.52

99.64

240.93

195.54

160.81

70.98

125.32

355.14

227.27

97.56

153.20

127.87

-0.64

-0.69

-1.42

-1.91

-3.96

-4.07

-0.31

-0.69

-1.03

-0.83

-1.51

-1.32

0.53

-0.81

-1.61

-1.36

-0.89

-2.17

-2.50

-1.64

-1.75

-1.47

-1.76

-1.35

-1.37

-3.29

-3.50

-1.70

-2.41

8,937,360

10,206,088

4,725,258

2,839,850

31,922,965

9,359,628

3,296,823

3,284,639

3,487,409

7,283,292

2,765,801

2,056,892

5,487,146

10,207,534

2,722,563

7,693,989

1,172,182

1,709,319

4,027,521

737,589

798,947

1,232,765

2,154,076

795,279

1,435,298

1,916,453

1,276,903

1,273,908

379,259

DJIA

Company Name Lt Price % Chg Volume

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/TheAbi Sab Group Holding Ltd

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

1,235.00

0.00

0.00

244.60

4,200.00

192.80

787.40

4,170.50

1,713.00

1,357.00

245.50

201.20

0.00

739.70

1,170.00

1,375.00

1,355.50

1,339.00

4,091.00

1,999.00

3,269.00

315.40

663.40

0.00

647.40

516.80

2,627.00

2,552.00

280.00

827.00

4,215.00

0.00

1,633.50

5,965.00

5,830.00

1,817.50

655.00

2,815.00

898.40

9,100.00

241.00

5,762.00

879.60

2,060.00

368.30

617.40

298.00

4,480.00

64.29

270.10

935.00

303.50

3,379.00

162.55

196.25

691.60

5,476.00

4,811.00

356.60

760.60

2,686.00

723.20

1,919.50

551.00

370.85

1,497.60

482.40

1,338.00

1,821.50

1,720.00

185.00

356.70

2,748.50

7,095.00

2,650.00

1,604.50

2,618.00

143.60

4,842.00

139.40

1,994.50

2,291.00

206.25

674.40

3,789.00

559.20

1,675.60

4,225.00

548.80

198.76

634.80

820.20

511.80

5,402.00

2,685.00

2,300.00

0.00

1,042.50

1,751.80

1,924.00

956.00

0.00

-3.33

0.00

0.00

-0.65

-1.32

-1.15

-3.43

-0.29

-0.93

-0.62

-0.12

-0.79

0.00

-1.52

-3.15

-3.27

-0.26

-0.52

-1.03

-4.26

-3.00

-0.79

-2.53

0.00

-2.47

-2.56

-0.47

-0.27

-3.35

-1.94

-1.14

0.00

-0.70

-1.05

1.25

-3.86

-1.68

-0.92

-0.93

0.22

-2.27

-1.71

-0.05

-1.06

-1.66

-2.50

-4.09

-1.41

-2.10

-2.70

-1.79

-1.17

-1.20

-3.22

-2.85

-1.37

0.77

-1.56

-1.27

-2.74

-2.50

-1.31

-2.54

-1.64

-1.76

-0.16

0.00

3.12

-2.07

-0.64

-20.74

-4.27

-0.51

-1.94

-3.18

-1.56

-2.06

-0.73

-1.88

-5.11

-0.52

-0.35

-1.76

-1.66

-2.07

0.74

-1.16

-1.03

-2.14

-3.61

-1.31

-0.65

-3.21

-1.39

-2.22

-1.46

0.00

-1.14

-1.54

-2.71

-2.63

0.00

5,198,393

-

-

8,975,664

852,593

84,743,219

2,766,737

3,777,920

1,047,710

1,259,649

22,947,004

16,379,773

-

8,919,272

1,473,855

4,998,527

3,142,897

3,898,261

2,216,329

1,561,461

292,722

6,637,698

2,681,878

-

5,171,893

5,179,460

6,411,154

4,989,648

31,135,495

5,105,500

3,837,154

-

3,493,246

1,007,321

856,987

5,888,583

733,320

796,856

3,044,084

204,381

23,494,007

697,659

8,376,963

1,404,563

1,869,683

1,737,491

11,161,799

612,591

455,355,977

25,353,321

2,355,762

11,271,875

694,679

23,326,508

2,537,759

5,018,457

347,979

357,369

1,770,826

4,928,965

2,283,891

35,899,092

809,119

3,141,061

44,187,952

12,295,948

857,601

1,770,714

2,951,780

1,324,908

19,361,174

5,968,513

4,737,690

358,612

2,435,451

4,170,532

645,313

19,788,052

434,257

12,812,235

1,766,905

1,170,715

35,328,543

3,363,152

4,330,100

50,566,544

10,596,426

411,122

2,746,190

71,238,730

8,151,625

3,375,570

15,245,396

2,411,532

1,014,358

1,837,415

-

2,640,724

5,417,415

538,035

2,242,959

-

FTSE 100

Company Name Lt Price % Chg Volume

Hitachi LtdTakeda Pharmaceutical Co Ltd

Jfe Holdings IncSumitomo Corp

Canon IncNintendo Co Ltd

Eisai Co LtdIsuzu Motors Ltd

Unicharm CorpShin-Etsu Chemical Co Ltd

Smc CorpMitsubishi Corp

Asahi Group Holdings LtdKeyence Corp

Nidec CorpNomura Holdings Inc

Daiichi Sankyo Co LtdSubaru Corp

Ntt Docomo Inc

814.20

4,473.00

2,310.00

1,853.50

3,759.00

42,400.00

7,778.00

1,504.50

3,407.00

11,050.00

42,890.00

3,031.00

5,691.00

66,390.00

17,130.00

577.10

3,592.00

3,451.00

2,814.00

-1.39

0.56

-1.49

-0.51

0.00

1.92

0.28

-2.08

1.82

-2.21

-1.24

-0.39

-1.20

-0.55

-0.98

-1.08

-1.05

0.06

0.48

10,883,000

2,996,400

2,187,500

2,231,900

3,274,200

1,504,800

782,100

2,659,800

1,479,600

1,291,300

104,000

3,192,200

1,132,200

187,700

469,600

12,006,500

1,834,700

2,186,000

2,357,100

TOKYO

Company Name Lt Price % Chg Volume

Sumitomo Realty & DevelopmenSumitomo Metal Mining Co Ltd

Orix CorpDaiwa Securities Group Inc

Softbank Group CorpMizuho Financial Group Inc

Central Japan Railway CoNitori Holdings Co Ltd

T&D Holdings IncToyota Motor Corp

Hoya CorpSumitomo Mitsui Trust Holdin

Japan Tobacco IncOsaka Gas Co Ltd

Sumitomo Electric IndustriesOno Pharmaceutical Co Ltd

Ajinomoto Co IncMitsui Fudosan Co Ltd

Daikin Industries LtdToray Industries Inc

Bridgestone CorpSony Corp

Astellas Pharma IncJxtg Holdings Inc

Nippon Steel & Sumitomo MetaSuzuki Motor Corp

Nippon Telegraph & TelephoneSompo Holdings Inc

Daiwa House Industry Co LtdKomatsu Ltd

West Japan Railway CoMurata Manufacturing Co Ltd

Kansai Electric Power Co IncDenso Corp

Dai-Ichi Life Holdings IncMazda Motor Corp

Mitsui & Co LtdKao Corp

Sekisui House LtdOriental Land Co Ltd

Secom Co LtdTokio Marine Holdings Inc

Aeon Co LtdFanuc Corp

Daito Trust Construct Co LtdOtsuka Holdings Co Ltd

Resona Holdings IncAsahi Kasei Corp

Kirin Holdings Co LtdMitsubishi Ufj Financial Gro

Marubeni CorpMitsubishi Chemical Holdings

Fast Retailing Co LtdMs&Ad Insurance Group Holdin

Kubota CorpSeven & I Holdings Co Ltd

Inpex CorpSumitomo Mitsui Financial Gr

Ana Holdings IncMitsubishi Electric Corp

Honda Motor Co LtdTokyo Gas Co Ltd

Tokyo Electron LtdPanasonic Corp

Fujitsu LtdEast Japan Railway Co

Itochu CorpFujifilm Holdings Corp

Yamato Holdings Co LtdChubu Electric Power Co Inc

Mitsubishi Estate Co LtdMitsubishi Heavy Industries

Shiseido Co LtdShionogi & Co Ltd

Recruit Holdings Co LtdJapan Airlines Co Ltd

Nitto Denko CorpKddi Corp

Rakuten IncKyocera Corp

Nissan Motor Co Ltd

4,170.00

4,221.00

1,854.50

645.50

7,697.00

193.40

22,575.00

18,985.00

1,782.50

6,976.00

6,413.00

4,603.00

2,934.00

2,400.00

1,704.50

2,711.50

2,072.50

2,779.00

12,675.00

908.00

4,439.00

5,160.00

1,676.50

685.60

2,338.50

6,325.00

5,127.00

4,753.00

4,017.00

3,625.00

7,913.00

16,130.00

1,587.00

5,382.00

2,085.50

1,400.00

1,900.50

8,436.00

1,982.00

11,180.00

8,206.00

5,274.00

2,182.00

23,735.00

18,095.00

5,459.00

614.70

1,470.00

3,115.00

684.30

848.60

1,007.00

47,920.00

3,540.00

1,868.00

4,894.00

1,211.00

4,553.00

4,467.00

1,582.00

3,535.00

2,998.50

21,175.00

1,513.00

673.50

10,750.00

2,060.00

4,185.00

3,108.00

1,673.50

1,972.00

4,160.00

8,332.00

5,650.00

2,978.00

4,332.00

8,767.00

2,943.00

727.80

6,667.00

1,108.50

-0.31

-2.58

-1.59

-1.04

-2.43

-0.46

0.51

1.36

-0.97

-1.08

-0.39

-0.82

-0.07

-0.33

-0.93

0.71

1.12

-0.07

0.24

-1.09

-0.65

-0.44

0.45

-0.13

-0.93

0.64

-0.10

0.08

-0.47

-0.08

0.11

-0.31

1.28

-1.07

-0.83

-0.71

-0.42

1.42

0.15

-0.40

0.76

-0.40

0.51

-0.61

-0.33

0.96

-0.79

-0.71

0.71

-1.26

0.30

-1.13

-0.85

-0.03

-0.77

0.47

-0.37

-0.74

0.22

-0.35

-0.06

-0.35

-1.07

-0.30

-2.22

0.09

-0.63

-1.16

0.03

-0.18

-0.53

-0.31

0.01

0.25

-1.36

-0.78

-1.13

0.51

0.73

0.06

0.05

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

4.12

32.20

4.13

6.23

0.00

39.75

13.20

88.40

3.42

7.98

22.00

17.98

70.90

26.20

7.25

36.55

28.65

16.14

20.15

10.88

11.50

81.80

12.78

7.29

2.70

1.46

17.96

194.90

51.70

-0.72

-1.23

-0.96

-1.27

0.00

-1.00

-0.60

-1.17

-0.58

-1.36

-0.45

-1.21

-1.25

-1.50

-1.23

-2.53

-1.38

1.38

1.26

-2.68

-0.69

-0.79

-1.69

-1.09

0.75

-4.58

-1.54

-0.51

-1.05

11,029,141

637,217

290,472,233

18,111,503

-

4,745,396

1,564,000

5,694,617

12,340,000

303,054,788

31,114,154

5,898,527

9,970,304

9,618,008

105,666,647

5,634,919

9,400,065

13,045,225

30,841,789

19,404,111

5,594,363

1,070,455

54,705,539

1,754,105

1,499,072

13,431,065

5,182,659

1,167,794

3,900,038

HONG KONG

Company Name Lt Price % Chg Volume

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

17.04

257.60

75.90

0.00

6.54

3.02

44.10

11.98

6.39

77.40

54.60

13.38

125.80

79.85

402.00

25.50

-0.35

-1.00

-1.24

0.00

-1.36

1.68

-0.45

-0.66

-0.78

-0.96

-0.73

-1.33

0.24

0.31

-0.79

-1.16

8,439,701

4,033,673

19,560,619

-

234,880,421

33,522,982

2,861,354

9,161,454

231,618,824

27,689,471

2,577,742

2,829,323

2,711,212

981,878

12,131,694

3,516,175

HONG KONG

Company Name Lt Price % Chg Volume

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

557.30

338.05

263.00

253.25

3,716.05

677.85

575.35

83.50

294.65

3,523.50

499.50

264.30

917.45

85.65

207.00

175.55

165.95

8,714.90

870.25

781.05

1,380.60

1,284.25

274.05

1,216.70

1,877.30

62.30

289.90

1,809.75

1,572.70

242.50

3,610.40

2,032.60

905.10

1,057.80

342.95

1,980.70

282.35

530.60

0.00

18,556.75

379.15

405.35

83.45

140.40

2,796.05

547.75

1,299.50

208.30

377.85

1,310.00

-2.77

-2.07

-0.11

-0.16

-0.38

0.39

-0.23

1.46

-0.56

0.61

-0.04

-2.85

-0.32

-3.44

0.02

-0.03

-1.04

0.06

2.39

-0.19

0.30

-0.99

-0.45

0.19

-1.94

1.55

-3.12

-1.08

-0.64

0.35

0.29

-0.47

1.19

-0.24

1.95

-0.69

-0.86

-1.65

0.00

2.56

1.07

0.83

5.30

-3.44

0.21

0.29

-1.69

-1.79

-0.28

-0.95

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

24,327.81

2,689.27

7,368.12

15,954.47

44,893.25

76,421.58

7,632.64

5,438.06

12,666.51

9,521.30

22,358.43

1,761.85

30,484.58

6,121.74

1,534.73

34,949.24

10,633.30

3,518.48

31,181.44

6,068.33

-425.28

-32.06

-65.74

-61.67

+42.20

+1,065.74

-97.64

-70.87

-196.95

-243.10

-122.66

-8.57

-307.68

+8.12

-2.05

-216.24

-55.35

+5.25

+348.33

+92.58

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

9,126.40

7,999.59

#N/A N/A

1,262.89

4,598.13

4,575.16

2,924.94

+1.16

+36.82

#N/A N/A

+2.42

+6.99

+27.82

-5.03

“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.”

1,076,000

2,474,300

2,868,600

4,185,000

6,267,900

78,139,000

200,000

458,100

2,500,200

5,250,600

672,200

1,150,200

3,989,900

617,200

2,227,400

1,289,800

2,163,400

2,606,900

527,500

5,444,900

1,717,500

3,946,300

4,453,500

8,209,200

2,634,100

1,442,700

1,562,900

1,452,800

718,100

3,003,800

370,500

612,200

1,842,200

1,729,800

2,850,400

4,079,800

2,924,100

1,863,900

1,874,500

466,900

496,600

1,411,600

1,512,800

542,400

340,200

673,600

5,890,100

2,734,700

2,002,000

49,340,200

5,647,700

6,412,600

421,300

1,214,100

2,131,900

1,473,300

5,604,100

4,947,800

1,284,000

3,702,300

2,888,700

1,086,000

1,519,200

4,867,400

12,465,000

674,600

3,288,900

999,100

1,054,100

1,545,400

3,507,800

706,800

1,530,500

759,600

4,485,600

1,224,200

1,053,100

4,183,200

7,846,700

875,100

8,438,700

1,042,272

8,265,436

1,840,192

34,701,488

380,378

2,795,202

6,949,645

10,254,384

10,391,579

1,865,537

8,875,378

16,929,000

8,400,775

30,105,660

10,206,768

11,335,211

6,364,543

735,876

4,942,450

2,713,821

7,152,244

1,670,058

9,189,317

1,753,176

876,028

17,991,589

13,548,201

1,185,278

972,866

7,049,698

318,612

868,580

1,034,625

729,561

4,668,501

519,761

6,372,573

2,711,749

-

11,782

3,596,038

5,095,227

69,097,041

13,587,651

278,309

8,151,429

807,980

1,564,276

3,496,942

921,331

Volume

Volume

BUSINESS11Gulf Times

Wednesday, May 30, 2018

ReutersTokyo

Tariff s on steel, threats of car im-port levies and intense pressure for a two-way economic deal:

despite warm personal ties, US Presi-dent Donald Trump is giving Japanese Prime Minister Shinzo Abe a decidedly tough time on trade.

Trump has also withdrawn from a multilateral Trans-Pacifi c Partnership (TPP) promoted by Abe as a counter-weight to China, abandoned a climate change accord backed by Tokyo and is pursuing talks with North Korean lead-er Kim Jong-un notwithstanding Abe’s warnings about past mistakes.

Since Trump was elected, the two leaders have met nine times, shared burgers, played golf three times and spo-ken nearly two-dozen times by phone. In their latest telephone chat overnight, Abe and Trump agreed to meet again before a US-North Korea summit that could take place next month.

“I think he has penetrated Trump’s mind to a certain degree, but that is dif-ferent from his pet agenda on trade,” said Keio University professor Toshihiro Nakayama.

“Prime Minister Abe and his team ex-pected a bit more because of the person-al chemistry. That was a bit of wishful thinking – look at Macron,” Nakayama added. Like Abe, French President Em-manuel Macron has developed a strong personal relationship with Trump yet has clashed with him over issues in-cluding Iran, climate change and trade.

Trump’s administration decided last week to begin a national security in-vestigation into auto imports that could lead to new US tariff s similar to those already imposed on imported steel and aluminium.

Motor vehicles make up about 30% of Japanese exports to the United States.

The auto probe follows an April agreement by Trump and Abe to set up a new framework to discuss “free, fair and reciprocal” trade that will be led by US Trade Representative Robert Light-hizer and Japanese Economy Minister Toshimitsu Motegi.

Trump has made clear he prefers a bilateral deal to cut a US trade defi cit with Japan that hit ¥615.7bn ($5.64bn) last month. However, Abe’s adminis-tration insists multilateral pacts are still the best bet. “FFR is not a negotiation or scoping exercise for a bilateral FTA (Free

Trade Agreement),” a Japanese offi cial, speaking on condition of anonym-ity, told Reuters. “We see it in a broader context.” Behind Japan’s resistance to a bilateral FTA is in part the fear of pres-sure to open up its agriculture sector.

The farm lobby is an important base for Abe’s ruling party.

For now, Japan is working from a fa-miliar playbook with a strategy com-bining highlighting past and planned purchases of US goods and invest-ments, possible moves sanctioned by the World Trade Organisation (WTO) and expanding a web of trade pacts that Tokyo hopes will eventually lure Wash-

ington back to the multilateral order.Japan has notifi ed the WTO it re-

serves the right to take counter-meas-ures against the US tariff s on steel and aluminium totalling $440mn, the amount of added duties the US tariff s would impose on its exports of those products.

“We have the right but not the ob-ligation to do it,” the Japanese offi cial said, adding any steps against future tariff s on Japanese car exports would also be WTO-consistent.

As they’ve done since Trump was elected, Japanese offi cials are highlight-ing how much Japanese carmakers and

other fi rms contribute to the US econ-omy. As of 2016, Japan says its compa-nies have invested a cumulative $421bn in the United State, creating more than 850,000 jobs.

A rise in energy imports is also ex-pected to help trim the bilateral trade imbalance. Japan received its fi rst ship-ment of liquefi ed natural gas (LNG) last week from Dominion Energy Inc’s newly completed Cove Point, Maryland export plant, the beginning of a jump in imports from the United States.

“The balance will tilt toward the United States. Whether it is big enough is open to question but at least things

will be happening in the eyes of the president,” the Japanese offi cial said.

Japanese offi cials deny they are foot-dragging on trade negotiations, but some experts said playing for time could be useful. “It’s not Japan that needs a bilateral FTA. It’s the United States,” said former Japanese trade negotiator Yorizumi Watanabe. “Japan can take the approach of wait-and-see.”

That tactic, however, risks backfi ring.“The president is, as you know, a man

of action and expects us to get results quickly,” US ambassador to Japan Wil-liam Hagerty said earlier this month. “I think Abe understands that.”

Trump giving Abe a hard time on trade despite close relations

‘Japan price pain has taught world lessons’BloombergTokyo

Japan’s long-term struggle with defl ation continues to provide lessons for the rest of the world, Federal Reserve Bank of St Louis

president James Bullard said yesterday in Tokyo.“It’s been frustrating in Japan, but it’s also

been instructive for the rest of the world to un-derstand what kinds of things can happen if in-fl ation expectations get rooted at a low level,” Bullard said.

People in Tokyo often talk to him about how deeply the so-called defl ationary mindset took hold here and how hard it is to change it, he said.

“The whole idea of a steady state is once you are in it, it’s not easy to leave it, and that seems to be the issue in Japan much more than it is in

other countries around the world,” Bullard said.He said there have been “some advantages” to

the Bank of Japan’s current policy, and that Ja-pan should stick with its 2% infl ation target, an international standard.

“If you name some other infl ation target, you are committing to a permanent appreciation or depreciation of a currency and that brings its own complications,” he said. “It’s better to stick with the international standard on infl ation tar-geting.”

While he sees the BoJ’s current policy as sus-tainable, recent weak infl ation data have sur-prised him.

“Whether that will heat up a little bit going forward is going to be one of the key questions facing the BoJ,” he said. “We will just have to wait and see at this point, but infl ation has cer-tainly been lower than would’ve been expected.”

Japanese Prime Minister Shinzo Abe (left) with US President Donald Trump in Washington (file). Trump has made clear he prefers a bilateral deal to cut a US trade deficit with Japan that hit ¥615.7bn ($5.64bn) last month. However, Abe’s administration insists multilateral pacts are still the best bet.

How world’s biggest private equity oil and gas industry bid collapsedReutersMelbourne

Blame it on Trump, Iran or Venezuela.

Rising oil prices combined with a heavy

debt load killed the world’s biggest private

equity oil and gas industry deal last week.

Harbour Energy left Australia

empty-handed after a year of chasing

gas producer Santos Ltd, missing out on

Santos’ stakes in three liquefied natural

gas projects in Australia and Papua New

Guinea as it sought to become a major

LNG player.

The US firm, backed by EIG Global

Energy Partners, was forced to bid against

itself five times, including twice over one

weekend, until it made a final off er of

$10.8bn, up more than 50% from its first

approach last August.

“The grievance runs deep and it’s heart-

felt,” said a person in the Harbour camp.

Harbour chief executive Linda Cook, a

former senior executive at Royal Dutch

Shell, was on a plane last Tuesday when

she heard Santos had rejected its sixth

off er, worth about A$6.95 a share.

She declined to comment for this story.

Harbour’s disappointed chairman, Blair

Thomas, was already back in Washington,

DC, and didn’t mince words.

“There was insuff icient engagement

with Santos on valuation, no meaningful

attempt by Santos to discuss a realistic

price which could supported by any

reasonable set of technical and commer-

cial assumptions, and an unwillingness by

their Board to explore means of closing

the gap between the off er and their expec-

tations,” he said in a two-page statement.

Thomas believed by the end of a

weekend of back and forth between advis-

ers on both sides that he had a deal with

Santos chairman Keith Spence, a person in

the Harbour camp said.

Harbour’s team were parked in Sydney,

where Harbour’s backer EIG has an off ice

and advisers at JPMorgan, Morgan Stanley

and Highbury are based, according to

people involved. “A couple of hundred”

people were involved in analysing data

and conducting due diligence, they said.

Cook and Thomas met Kevin Gallagher

and Keith Spence, their counterparts at

Adelaide-based Santos, on May 18.

They felt encouraged the board would

facilitate an off er going to shareholders,

people in the Harbour camp said.

People on both sides said talks were

cordial the whole time, but the Santos

board was firm on value, and Harbour

failed to off er enough of a premium as oil

prices marched higher.

Crude prices climbed from around

$52 a barrel when Harbour made its first

approach in August to $80 last week, their

highest since late 2014, as US President

Donald Trump imposed sanctions on

Venezuela and pulled out of a nuclear

arms control deal with Iran, both key oil

producers.

What hurt Harbour was the $7.75bn in

debt they had lined up from JPMorgan

and Morgan Stanley, which required oil

price hedging against 30% of Santos’

oil-linked LNG sales, making the deal com-

plex, Santos, investors and bankers said.

“The problem is when you get high-

leverage deals there are a lot of terms and

conditions you have to meet and it makes

it inflexible,” said a veteran Australian

investment banker not involved in the bid.

Santos balked when Harbour tried to

force the company to lock in the hedges,

in order to cut costs for the banks and

allow Harbour to raise its off er.

Santos said it was “resilient” to the oil

price fall, as it has slashed costs to be cash

flow breakeven at $36 a barrel.

The value of the Harbour bid was “sim-

ply not compelling enough” compared

with Santos’ own growth plan, the risks as-

sociated with the hedging and the reliance

on Santos’ balance sheet to help fund the

deal, a Santos spokeswoman said.

Not only was Harbour jilted at the altar,

but the biggest shareholders in Santos,

Chinese gas distributor ENN Ecological

and private equity firm Hony Capital

missed out on more than doubling their

combined stake to up to 40% in a priva-

tised Santos.

Sources said ENN and Hony were as

furious as Harbour.

“They’re deeply disappointed and an-

gry and frustrated,” a person close to ENN

said. “They feel that the outcome didn’t

reflect some of the conversations with

senior Santos people.”

However in a statement to the Shang-

hai Stock Exchange last week, ENN, which

has a director on the board of Santos, said:

“The company’s future co-operation with

Santos is not aff ected.”

A Santos spokeswoman said ENN is

part of a united Santos board, and the

company’s strategic relationship with ENN

and Hony remains in place.

Hony said it “will closely follow the

further development”.

Swiss energy and commodities trader

Mercuria, which was set to contribute 10%

of the bid, was thwarted in its ambition to

use Santos to get into LNG trading, where

its rivals Glencore, Gunvor, Trafigura and

Vitol are already active.

“A lot of time and money went into

this...so it is annoying,” said a person

familiar with Mercuria’s thinking.

Mecuria declined to comment.

Harbour’s first approach last August

was swiftly rejected by the board under

then-chairman Peter Coates, who had also

rebuff ed a $5.1bn takeover off er two years

earlier when Santos was wallowing in debt

as oil prices collapsed.

The August approach was only

disclosed by Santos in November after a

newspaper outed Harbour.

India delays plan to roll out 10,000 electric cars to next year

BloombergNew Delhi

India has pushed back a dead-line to put thousands of bat-tery-driven cars on the road

by nearly a year, in a setback to its ambitions of having electric vehicles comprise about a third of its fl eet by 2030.

State-owned Energy Effi cien-cy Services Ltd, which is respon-sible for procuring electric cars to replace the petrol and diesel vehicles used by government offi cials, will roll out the fi rst 10,000 vehicles by March 2019, Saurabh Kumar, the agency’s managing director said.

EESL issued its fi rst tender for 10,000 cars in September. It planned to roll out 500 cars by November and the rest by June.

“The need for building more charging points for 10,000 elec-tric cars and states being slow in taking deliveries are the reasons for the delay,” Kumar said in a phone interview.

There are about 150 cars in the capital New Delhi and about 100 in southern Andhra Pradesh state and other provinces as of now, Kumar said.

Of the about 200 charging stations built for these cars, over 100 are in Delhi.

Prime Minister Narendra Modi’s administration is aiming to have more than 30% of vehi-cles run on electricity by 2030 in a bid to lower air pollution and curb reliance on fossil fuels.

Cheap fossil fuel-driven cars and an absence of state subsidies for electric vehicles make pur-chases by the government and companies critical for EV sales, according to BNEF, which ex-pects EVs to comprise about 7% of sales in India by 2030.

“These tenders are the largest drivers for EV demand” during the next three to fi ve years, ac-cording to Allen Tom Abraham, a BNEF analyst in New Delhi. “If these large procurement pro-grammes falter, auto-makers would prolong any plans they have to introduce mass market EVs in India.”

Bullard: Japan should stick with its 2% inflation target.

NDB to expand private sector lending

The New Development Bank (NDB), set up by the Brics group of ma-

jor emerging economies, wants loans to the private sector to eventually take up a 30% share of its project portfolio, a senior executive at the bank said yes-terday.

Zhu Xian, the NDB’s chief op-erating offi cer, told Reuters that the bank was targeting an overall 70-30 split between sovereign and non-sovereign loans in its project portfolio, and was seeing strong demand for private sector loans especially in Brazil, South Africa and Russia.

The Shanghai-based bank on Monday approved six new projects which brought its loan portfolio up to over $5.1bn across 21 projects. Two of these were non-sovereign loans, which are issued to companies without a government guarantee.

“In India and China, there’s very strong demand for sover-eign... But on the other hand, some other countries for diff er-ent reasons they probably prefer more non-sovereign lending,” he said. “Some countries they still have some sort of fi scal diffi cul-ties. Secondly, the debt sustain-ability is a concern.

They don’t want to borrow too much in sovereign terms. So they prefer you do more market transactions.” The bank’s fi rst non-sovereign project was a $200mn loan to Brazil’s Petro-bras for an environmental pro-tection scheme and the second a $200mn loan to South Africa’s Transnet to reconstruct a port in Durban.

China’s Ant Financial raises $10bn at $150bn valuationReutersHong Kong

Ant Financial Services Group, operator of China’s biggest on-line payment platform by mar-

ket share, Alipay, has closed its latest funding round having raised $10bn from a clutch of global and local inves-tors, fi ve people with direct knowledge of the matter told Reuters.

Ant’s fi rst fundraising targeting glo-bal money values the fi rm at $150bn, the people said, compared with about $60bn after its previous fundraising in April 2016.

A number of global sovereign wealth funds and private equity fi rms joined the fundraising as main investors.

They include Singapore’s sovereign fund GIC Pte Ltd and state investor Temasek Holdings (Private) Ltd, as well as US private equity fi rm Warburg Pincus LLC, the people said.

Malaysian sovereign fund Khazanah Nasional Bhd has also joined as a major investor, one of the people said.

The funding round also brought in private equity fi rm Carlyle Group LP and venture capital fi rm Sequoia Capi-tal, which typically invests in early-stage start-ups, three of the people said.

The amount and investor line-up are fi nalised and the transfer of funds is underway, the people said.

The funding round includes a sep-arate tranche of around 7bn yuan ($1.1bn) in new shares which has not been fi nalised, two of the people said.

The people spoke to Reuters on con-dition they not be identifi ed as the deal details are not yet public.

Ant, controlled by Alibaba Group Holding Ltd founder Jack Ma, declined to comment.

Carlyle, Temasek and Warburg de-clined to comment.

Khanazah, GIC and Sequoia Capital did not immediately respond to a re-quest for comment.

The capital-raising comes ahead of a widely expected initial public off er-ing (IPO), though Ant has neither pub-licly set a timetable nor chosen a likely

stock exchange. A $150bn valuation would make Ant’s IPO one of the big-gest ever – comparing to the $104bn of Facebook Inc six years ago and Ali-baba’s $168bn in 2014.

A fundraising document seen by Re-uters showed Ant planned to list both in China and Hong Kong in 2019, and its investors joining the latest fund-raising could expect to exit within one

to three years. Ant declined to com-ment on the document.

Strong demand from investors look-ing to position themselves ahead of Ant’s potential IPO has resulted in a much higher amount than an initial target of up to $5bn, which Reuters earlier reported.

Four-year-old Ant, which was spun off from Alibaba when the group went

public in New York, has diversifi ed over the years into credit services, as-set management and online banking, besides owning the Alipay payment platform.

After becoming a dominant in pay-ments in China, the company has also invested in a number of internet-based startups including Chinese bike-shar-ing company Ofo, food delivery app

operator Ele.me and Indian payment company PayTM.

The firm counts China’s sover-eign wealth fund, China Investment Corp, state lender China Construc-tion Bank Corp, the country’s Na-tional Social Security Fund and big state insurers, among others, as investors from previous funding rounds.

Chinese fi rm in talks to buyGermany’s Grammer

ReutersShanghai/Munich

Auto supplier Ningbo Jifeng Auto Parts has made an approach to buy

German rival Grammer at a time when Chinese takeovers face in-creased scrutiny from German and European authorities eager to protect domestic know-how.

Ningbo’s indicative off er, dis-closed early yesterday, values Grammer at around €772mn ($893mn), including dividends, and sent Grammer shares up 20.4% to €61.75, above the Ningbo off er price of €61.25 per share. The off er may result in a voluntary public takeover off er, and will test Germany’s willing-ness to tolerate Chinese takeo-vers, following an unsolicited approach by Geely chairman Li Shufu to secure a $9bn stake in Daimler.

Ningbo’s off er comes as Eu-ropean lawmakers fi nalise a European proposal for greater scrutiny of investments made with state infl uence or aimed at transferring key technologies to a third country, a clear refer-ence to some Chinese state-led fi rms that have bought European rivals. It also comes less than a week after German Chancel-lor Angela Merkel, during a trip to China, called on the world’s No 2 economy to open up key industries to outside markets, demanding greater reciprocity between both regions when it comes to takeovers and market access to technologies.

Grammer yesterday said that Ningbo Jifeng, already a major shareholder, was in “advanced negotiations” with the fi rm, adding it was uncertain whether negotiations would be concluded successfully and a takeover off er would be launched. The German company added it was “assess-ing strategic options in the best interest of the company”.

Sources familiar with the mat-ter said that Ningbo Jifeng is of-fering to guarantee jobs at Gram-mer for 7-1/2 years as part of the proposed transaction, adding the Chinese group was current-ly not aiming for a domination agreement. Ningbo Jifeng raised its stake in Grammer in October last year to 25.51%. Sources told Reuters around that time the Chinese fi rm wanted to increase its stake amid a power struggle with a rival shareholder, Bosnia’s Hastor family.

Grammer’s management has generally welcomed the atten-tion of Ningbo Jifeng, another supplier of vehicle interior com-ponents, as a potential “white knight” in its confl ict with Has-tor. “We would view such a bid as positive as it off ers the Has-tor group a good opportunity to exit,” DZ Bank analyst Michael Punzet wrote in a note, keeping a “hold” rating on the stock.

BUSINESS

Gulf Times Wednesday, May 30, 201812

A fundraising document seen by Reuters showed Ant Financial planned to list both in China and Hong Kong in 2019, and its investors joining the latest fundraising could expect to exit within one to three years

Toshiba investor Argyle urging buyback, seeks restraint on M&ABloombergTokyo

Toshiba Corp investor Argyle Street Management Ltd is urging the Japanese manufacturer to buy

back $10bn of its shares and refrain from pursuing acquisitions after regulators approved the sale of its memory busi-ness.

In a letter to chief executive offi cer Nobuaki Kurumatani, the Hong Kong-based activist investor said Toshiba’s board should set a ¥1.1tn ($10bn) buy-back programme before its annual shareholders’ meeting next month.

The amount represents the net cash

left after the chip unit sale, Argyle’s Kin Chan wrote in the May 28 letter ob-tained by Bloomberg.

Toshiba has been raising capital and selling assets to restore its fi nances and profi tability following an accounting scandal and losses tied to its nuclear power business.

Argyle earlier criticized the Tokyo-based company over the ¥2tn sale of the memory unit to a group led by Bain Capital, saying it was undervalued.

The deal will be a “necessary step for Toshiba to fi nally close the chapter on its most recent troubles” and revive its remaining businesses, Argyle said in the four-page letter.

Toshiba should refrain from spend-

ing its excess cash on mergers, Ar-gyle said, describing the fi rm’s track record as “value destructive” and hav-ing “brought the company to the brink of collapse.” The manufacturer should implement a “transparent policy of dis-tributing 100% of free cash fl ow after appropriate capital expenditure,” it said.

Argyle declined to comment on the size of its holding.

Toshiba may face pressure from other investors.

Yesterday, hedge fund King Street Capital Management amended a regu-latory fi ling to add that it can make “important proposals” as needed, in addition to holding its 5.23% stake for investment purposes.

Fortis launches new bidding process

ReutersBengaluru

India’s cash-strapped Fortis Health-

care Ltd laid out plans yesterday

for a fresh bidding process, after

it became the subject of a bidding

war by suitors seeking to cash in on

an expected boom in India’s private

healthcare market.

Five local and overseas suitors be-

came engaged in a race to either take

over or buy a stake in Fortis Health-

care, forcing them to revise their

initial off ers. Yesterday, Fortis invited

three of those suitors to participate

in a new bidding process – the Hero-

Burman group, a consortium of TPG

and Manipal Health Enterprises, and

Malaysia’s IHH Healthcare Bhd – as

well as any other parties interested

in bidding. Fortis’s board earlier this

month approved an investment off er

for Rs18bn ($265mn) from the Hero

Enterprise Investment Off ice and the

Burman Family Off ice consortium,

but shareholders were lukewarm to

the plan which waived due diligence.

The planned stake size was not

disclosed. Bidders in the new round

should submit their off ers by June 14,

with a minimum investment of Rs15bn

by way of preferential allotment. They

were given 10 days to conduct finan-

cial and legal due diligence.

The bids should also provide a plan

for funding Fortis’s acquisition of RHT

Health Trust’s Indian assets, agreed

in November, and options to private

equity investors to exit Fortis’s unit

SRL Ltd. Spokespersons for IHH, Hero-

Burman and Manipal all declined to

comment. Standard Chartered Bank

and Arpwood Capital are acting as

financial advisers to Fortis, while Cyril

Amarchand Mangaldas and Vaish

Associates are legal advisers.

In China’s booming tech scene, women battle conservative valuesReutersBeijing/Shanghai

Ms Li has a day job in the marketing depart-

ment of one of China’s biggest tech firms.

At night, she has a second career, lives-

treaming herself eating noodles or telling

jokes in return for small donations from

thousands of online viewers.

Li, 28, says she is one of at least five

women in her off ice who moonlight to bol-

ster their incomes. She says this is because

she and her female peers are paid less than

male colleagues and are often overlooked

for promotion.

The late nights livestreaming on the

YY.com social media platform are worth it, Li

says, even though she has been reprimand-

ed twice by her firm for moonlighting.

“The first time I was punished I was

scared for my job, but I don’t worry too

much now,” Li said.

She asked that her first name and the

name of her employer not be used.

“It’s not such a risk to work on the side if

you know you’re not going anywhere.”

In recent years, China’s tech industry

has boomed, with champions like the

e-commerce titan Alibaba and Tencent,

the social media-to-gaming leader, making

waves on the global stage.

But Li’s account of unequal pay at her

company, which Reuters was unable to

verify independently, underscores how

women are often sidelined in that boom.

Reuters spoke to more than a dozen

women – and some men – in the sector,

from entry-level employees to execu-

tives, who described an industry where

female engineers and coders battle against

ingrained biases favouring men.

“The traditional view is simply to think

that women aren’t suitable to be program-

mers,” said Chen Bin, a former Microsoft

engineer and the Beijing-based founder of

Teach Girls Coding, a campaign to get more

women into the sector.

“Things are better now than ten years

ago, but overall the number of women get-

ting into tech is really small,” he said.

China is not the only country where the

tech industry has faced heat over a lack of

diversity in the workplace.

But unlike US peers that have faced

legal action over discrimination, including

Uber, Alphabet Inc’s Google and Microsoft

Corp, Chinese technology companies are

relatively opaque about gender issues.

Most give little data on hiring and none of

the industry leaders share the diversity re-

ports that are now customary in the United

States, shedding doubt on whether women

in Chinese firms hold a comparable number

of technical or leadership roles.

Penny Chen, a 29-year-old software

engineer, has worked with the Chinese

e-commerce firm JD.com Inc and Jinri

Toutiao, a popular news app.

For her, the gender divide has long been

knitted into the culture.

At university, teachers would pair boys

with good grades with attractive girls for

class activities as a reward, she said.

The same didn’t happen for high-achiev-

ing girls. In the workplace, she says female

colleagues are often left out of social events

dominated by men.

She described one incident in which em-

ployees were scheduled to go out for drinks

together. “Our boss told the women to meet

outside,” she said. “But it was a practical

joke; the men had already left before with

the bus to the restaurant.”

Examples of sexism at major Chinese

companies often wind up on social media,

sometimes sparking online outcries.

Last year, video surfaced of a Tencent

staff event that included a game in which

female employees on their hands and knees

had to unscrew bottle caps held between

the legs of male counterparts. Tencent

apologised for the incident. The Chinese

ride-hailing firm Didi Chuxing was criticised

this month for allowing users on its carpool-

ing app to rate female passengers’ physical

traits after a 21-year-old air hostess was

killed by her driver.

The company has since apologised and

made substantial changes to the service.

Many other incidents slip under the radar.

The owner of the news aggregator Jinri

Toutiao, a tech darling valued at over $20bn,

this month co-hosted a beauty pageant for

female business reporters that attracted

little attention.

The company did not respond to a

request for comment. China’s gender gap is

not confined to tech. The country’s gender

parity ranking fell in 2017 for the ninth

straight year, leaving China placed 100 out

of 144 countries surveyed in a report by the

World Economic Forum.

The country ranked 60th in terms of

female labour force participation and 70th

in terms of wage equality for similar work.

Men on average had an estimated in-

come of around $19,000, over $7,000 more

than women.

Many top tech firms say they are taking

steps to change their male-oriented cul-

tures by doing things like changing hiring

practices to promote gender diversity.

However, many female employees and

women in the industry say that many of

the most sexist practices have simply been

hidden from view.

Samantha Kwok, the Australian-Chinese

founder of the Beijing-based recruitment

firm JingJobs, said clients often gave her

two job descriptions: one to be published

publicly and a second internal one that de-

tailed requirements based on age or gender.

“They already have in mind a very set

candidate profile,” she said.

Human Rights Watch released a report

last month showing that “men only” ads

were pervasive in China.

It also called out large technology firms

for objectifying women in order to attract

new male personnel, sharing a video

produced by Alibaba in 2014 that featured

pole-dancing female employees.

Alibaba, Tencent and Baidu apologised

for the ads mentioned in the report, adding

that actual incidents were isolated.

According to experts, legal redress for

gender discrimination is undermined by

vague laws in China.

While the country prohibits workplace

bias, actual enforcement is rare and there

are virtually no high-profile cases on record.

“China’s law is very good in that it

prohibits all discrimination against women,”

said Feng Yuan, co-founder of Equality,

a women’s rights advocacy group. “But

there is no definition whatsoever of what

discrimination is.”

Some women feel pressured to play up

perceived “male” behaviour to succeed,

including eschewing family life, giving rise

to a group called the “nü hanzi” – loosely

meaning tomboys. Some job adverts even

specify a preference for male candidates or

“manly women”.

People check their phones during the third annual World Internet Conference in Wuzhen town of Jiaxing, Zhejiang province. In recent years, China’s tech industry has boomed, with champions like the e-commerce titan Alibaba and Tencent, the social media-to-gaming leader, making waves on the global stage.

BUSINESS13Gulf Times

Wednesday, May 30, 2018

BloombergNew Delhi

Tony Fernandes, the chief of AirAsia Group Bhd, is being in-vestigated by the Indian federal

police for allegedly paying bribes to influence local policy, an Indian offi-cial told reporters.

India’s Central Bureau of Investiga-tion has named Fernandes and other officials from AirAsia Bhd and its In-dian unit in its investigation, the of-ficial told reporters yesterday in New Delhi, asking not to be identified cit-ing rules.

Fernandes and an AirAsia India spokeswoman didn’t respond to re-quests for comments.

The probe is a setback to AirAsia’s expansion, with its India unit plan-ning more domestic flights and a Jan-uary start to international operations.

Fernandes has identified India as one of the main pillars of his pan-Asian dream as he seeks to capture a share of a market dominated by Gulf-based carriers and the national carrier Air India.

The charges laid out by the CBI al-lege Fernandes and others bribed In-dian officials through middlemen to influence policies, including obtain-ing a flying permit and approvals to fly internationally, the official said.

After more than a decade of delib-eration, India in 2016 scrapped a re-strictive rule that only granted inter-national licenses to carriers with five years of domestic operations and a minimum of 20 aircraft in their fleet.

The new rules allow airlines to fly abroad if they deploy 20 planes or 20% of capacity, whichever is higher, on local routes.

The easing opened up room for the local affiliates of AirAsia and Sin-gapore Airlines Ltd to start overseas flights sooner.

AirAsia India, in which conglom-erate Tata Sons Ltd and local direc-tors control a 51% stake, has fl oated a tender to lease as many as 40 Airbus

SE A320 jets. The airline has vowed to eliminate its annual losses this year.

Fernandes has established affiliates over the years in Indonesia, Thailand, India, Japan and Vietnam, trying to take advantage of world-beating traf-fic growth in the region.

AirAsia has ordered hundreds of

planes worth billions of dollars from Airbus SE to meet its expansion plans and is in the process of selling a plane-leasing unit to raise more cash.

India, the world’s fastest-growing major aviation market, has been a prime focus for AirAsia, as an emerg-

ing middle class with enough dispos-able income flies for the first time.

Fernandes has talked about a po-tential IPO for the unit, which could boost the value of the parent company by $200mn, Crucial Perspective, a specialist in Asian transportation eq-uities, said in January.

India probes AirAsia CEO for alleged corruption

Indian economy likely motored ahead in Q1ReutersNew Delhi

India’s economy probably gained a little momentum in the fi rst three months of 2018 which should ensure that it remains

the world’s fastest growing major economy, a Reuters poll found.

Gross domestic product expanded an an-nual 7.3% in the fi rst three months of 2018, the May 24-29 poll of 55 economists pre-dicted, a touch faster than the 7.2% achieved in the last three months of 2017 – and well above China’s pace of 6.8% for the quarter ending in March.

Forecasts ranged from 6.9% to 7.7%. If the poll is right, January-March would have the fastest expansion since before the govern-ment’s surprise decision in November 2016 to scrap high-value currency notes and a botched implementation of a goods and serv-ices tax (GST) in July last year stalled growth.

“Domestic dynamics are very strong and external volatility won’t derail the current economic recovery,” noted Hugo Erken at Ra-bobank, one of the most accurate forecasters on India GDP, and whose view is that growth reached 7.5%.

GDP data will be released tomorrow at 1200 GMT. Economic Aff airs Secretary Sub-hash Chandra Garg said on Monday it was ex-pected that annual growth was between 7.3% and 7.5% in the March quarter.

Monsoon rains hit the southern Indian state of Kerala yesterday, a few days earlier than normal, the country’s weather offi ce said, a development that potentially bright-

ens the outlook for agricultural output and the economy.

After growth slowed sharply for much of 2017, India regained its status as the world’s fastest-growing major economy for the Oc-tober-December quarter.

Around two-thirds of economists in the poll who answered an extra question said growth would continue at roughly the same pace through the fi scal year that began on April 1. The remaining one-third said it would pick up. That overall steady – but strong – view was supported by expectations for manufacturing activity to have slowed only slightly in May.

The poll predicted the Nikkei Manufactur-ing Purchasing Managers’ Index, compiled by IHS Markit, would be 51.5, a tad weaker than April’s 51.6 but still comfortably above the 50-mark that separates growth from con-traction.

With growth proving robust and prices on the rise, the Reserve Bank of India may change its policy stance next week.

Annual retail and wholesale infl ation ac-celerated in April, mainly due to higher fuel and food prices.

In response, some economists changed their views to expect a more hawkish central bank at its June policy meeting.

“The RBI will hold steady next month – the Bank will likely want to wait for further clar-ity on the monsoon outturn and the increase in minimum support prices (MSP) for sum-mer crops,” noted Charu Chanana at Con-tinuum Economics. “A change in stance from neutral to ‘withdrawal of accommodation’ remains likely at the June 4-6 meeting.”

Tony Fernandes, CEO of AirAsia, holds a media event in Bangkok. India’s Central Bureau of Investigation has named Fernandes and other off icials from AirAsia and its Indian unit in its investigation for allegedly paying bribes to influence local policy, an Indian off icial said.

Australia’s $1.96tn pension industryfaces overhaul

ReutersSydney

Fund managers who perform

poorly face being locked out

of Australia’s A$2.6tn ($1.96tn)

pension industry if recommen-

dations from the government’s

top economic advisory body

are implemented.

The Productivity Commission

said in a report yesterday that

a shortlist of up to 10 strong-

performing pension products,

chosen by an independent

panel, should be presented to

workers from which to choose

when they enter the workforce.

If adopted, the Commission’s

model would replace a system

whereby the employer chooses

a fund for any worker who does

not nominate a preference,

regardless of the product’s

performance, fee structure or

insurance arrangements.

“Most (fund) members are in

funds that deliver good invest-

ment returns, but millions of

members are in funds that per-

sistently underperform – over

one in four funds,” said Karen

Chester, the Commission’s

deputy chair.

“Over an average member’s

working life, being stuck in a

poor performing default fund

can leave them with almost

40% less to spend in retirement.

“The Commission is also

reviewing insurance arrange-

ments within pension products,

after it found many Austral-

ians were paying for “zombie”

policies on which they weren’t

eligible to claim, especially

if they had multiple pension

accounts or were not currently

employed.

“The chief and costly culprit

for such‘zombie policies’ is

income protection, which can

typically be claimed against

only one policy and only when

members are working,” the

Commission said in its report.

Becoming an employer’s

nominated fund, known as a

default fund, is big business.

Australia boasts the third-

largest pool of retirement

savings in the world, according

to OECD data.

The industry enjoys billions

of dollars of guaranteed inflows

a year, underpinned by a man-

datory system where almost

one-tenth of a worker’s wage is

deposited into a pension fund,

known locally as a superan-

nuation or “super” fund to be

accessed at retirement.

About 60% of those inflows

go to default funds, according

to Jeff Bresnahan, chairman at

research house SuperRatings,

because most workers don’t

actively research and choose

their own fund.

“There will be some funds

that have underperformed for

some time and are still getting

strong flows,” Bresnahan said.

He noted, however, that the

Commission’s proposal might

not be workable, given it would

be diff icult to choose the “best

10” products when performance

can be cyclical, and funds must

also be measured on their fee

structures and life insurance

arrangements.

Indian men work at a garment factory in Ludhiana. India’s gross domestic product expanded an annual 7.3% in the first three months of 2018, the May 24-29 poll of 55 economists predicted, a touch faster than the 7.2% achieved in the last three months of 2017 – and well above China’s pace of 6.8% for the quarter ending in March.

In Portugal, trust in China is the art of the dealReutersLisbon

Utility company EDP may balk at the mea-

gre 5% premium off ered for its shares by

China Three Gorges (CTG) but the battle

for Portugal’s biggest business has largely

played out already.

To some it looks like a lowball bid, but

Portugal has welcomed the off er because

it considers the Chinese firm’s pledge to

keep EDP-Energias de Portugal intact

more important than the price and it

wants closer ties with a country that has

ploughed billions into its economy.

That openness to investment from

China, including in strategic sectors like

energy, stands out amid suspicions else-

where in Europe about Chinese acquisi-

tions. The Chinese state-owned hydropow-

er giant became EDP’s biggest shareholder

in 2011. So when reports of merger talks

between EDP and Spanish rival Gas Natural

emerged in July 2017, it beat a path to the

Lisbon government’s door.

A Gas Natural takeover would have

threatened CTG’s ambition to use EDP to

diversify beyond China, while Portugal’s

Socialist government feared a European

rival could break up the business, an

industry source familiar with the talks and

a political source with knowledge of the

government’s position said.

“Nearly a year ago, Gas Natural ap-

proached EDP and that was the time

when CTG started to think about this

move,” said one industry source with

knowledge of CTG’s takeover bid.

“If CTG has been a partner for more

than six years, has invested in the compa-

ny, in a strategic sector for Portugal, and

has good relations with the government,

it is natural that they talk,” the source said.

EDP and Gas Natural denied being in

talks last year.

But just over a month after the reports,

Portugal added a clause to its takeover

laws allowing shareholders with the same

ultimate owner to combine all their voting

rights. Previously, the votes would have

been capped at 25%, whatever the size of

their combined holdings. That could be

crucial as CTG’s bid for EDP progresses.

While it owns 23.3%, another Chinese state-

owned company, CNIC, holds 5%, most

recently buying 2% at the end of 2017.

CTG in China and a spokesman for the

Portuguese government did not respond

to requests for comment.

CTG first bought 21.4% of EDP in De-

cember 2011 for €2.7bn ($3.2bn), stepping

in when Portugal privatised the company

to raise funds after an international bail-

out to stabilise government finances.

The Chinese company has since in-

vested some €2bn in power ventures with

EDP, which has a portfolio of renewable

energy assets such as wind, hydro and so-

lar power in countries such as Brazil, the

United States, France, Italy and Poland.

In April this year, there were reports of

interest in EDP from another European

utility, this time Engie.

The French company declined to com-

ment while EDP said at the time that no

contacts had been established.

A few weeks later, CTG launched its

takeover bid. It off ered €9.07bn ($10.7bn)

for the rest of EDP on May 11, a premium

of just 5% above the utility company’s

share price before the off er became pub-

lic. EDP described the off er as too low, but

left the door open to negotiations.

Some analysts expect EDP to ask for a

20% to 30% premium but no other bidder

has yet emerged and EDP shares are trad-

ing less than 5% above the off er price.

“It was predictable and there have

already been conversations with the gov-

ernment for a long time,” said an industry

source close to EDP who has knowledge

of the talks.

“This is purely political,” the source

said.”CTG knew that there were many

European companies looking at EDP,

which is medium-sized and has interest-

ing assets.”

In its bid announcement, CTG made

clear it saw EDP’s long-term future as a

Portuguese company strengthened by

CTG’s assets, with a large free float of

shares that could potentially be used as a

springboard for European expansion.

That will please the government, which

wants to protect EDP’s 6,000 jobs in

Portugal and keep its headquarters in the

country.

“What matters to the government is the

strategic importance of EDP to the coun-

try,” said Filipe Garcia, head of Informacao

de Mercados Financeiros consultancy,

adding that the takeover price was a sec-

ondary consideration for the government.

Links between Portugal and China

stretch back centuries to when the Euro-

pean nation controlled the port of Macau.

In recent years, Lisbon has embraced

Beijing’s belt and road initiative to invest

in infrastructure linking Asia to Europe.

Chinese firms now own 25% of Portu-

gal’s national grid, 27% of its largest listed

bank, and all of its largest insurer and

biggest private hospitals operator.

Prime Minister Antonio Costa also told

parliament last week that the change to

Portuguese takeover law last year was

made with Chinese investors in mind.

“It was my initiative and aimed to

ensure that Portugal would off er the same

conditions to foreigners, namely Chinese,

as Europeans,” Costa said.

The clause added on July 29, 2017, was

designed to favour the “capture of foreign

direct investment from, namely, foreign

state entities...”, according to the text.

The combined shareholding of CTG and

CNIC, a Chinese state-owned investment

company, now comes to 28.5%, close

to the 33% needed to assure eff ective

control of EDP.

Under Portuguese law, company stat-

utes can only be changed if two-thirds of

shareholders vote in favour. Costa denied

in parliament the change was made with

CTG in mind: “This was approved a year

ago, when there was no takeover, nor any

prediction of a takeover bid.”

When CTG launched its off er, it was

conditional on getting 50% plus one

share, in line with Portuguese rules.

However, market regulator CMVM said

on May 23 it was waiving this require-

ment, eff ectively allowing CTG to raise

its stake in EDP, even if it doesn’t reach a

simple majority.

BUSINESS

Gulf Times Wednesday, May 30, 201814

Italy could lose irreplaceable asset of trust, says ViscoBloombergMilan

Italy is always just a few steps away from the “very

serious risk of losing the irreplaceable asset of

trust,” Bank of Italy Governor Ignazio Visco said

as a political crisis in the euro area’s third-largest

economy sent debt yields soaring and bank shares

tumbling.

While European rules can be debated, criticised and

improved, Italy cannot disregard constitutional con-

straints that protect savings, balance accounts and

ensure the respect of international treaties, Visco

said at the central bank’s annual meeting in Rome

yesterday. “Italy’s destiny is that of Europe.”

The governor, who is also a member of the Euro-

pean Central Bank Governing Council, stepped into

the politically sensitive debate on Italy’s future role

in the euro region, as the country heads toward

another election that will likely only strengthen the

anti-establishment parties. The country sank fur-

ther into political chaos on Sunday after President

Sergio Mattarella rejected a euro-skeptic finance

minister put forward by populist leaders Matteo

Salvini and Luigi Di Maio in their bid to form a gov-

ernment together.

“Italy’s populist parties are putting the country’s

finances on an unsustainable track before even hav-

ing spent a single euro. If government bond yields

were to rise another 100 basis points — after having

climbed by that amount over the last two and a half

weeks alone — the country’s mound of debt would

over time become too expensive to finance,” said

David Powell, Bloomberg Economics.

The populist leaders attacked Mattarella for the

collapse of their planned coalition and, suggesting

an international conspiracy directed against Italy,

made clear the coming campaign will focus on

Europe and the euro.

“While it is to be hoped that the goals and the

projects of the various political groups will be set

with clarity and foresight, together with the plans

to achieve them, it would not be wise to ignore

financial compatibility,” Visco said.

“Our actions and our plans send out the signals that

guide the allocation of resources at the national

and global level.”

Italy’s stock market extended a five-day losing

streak in Milan trading, and the spread between

Italian and German bond yields — an indicator

of Italy’s prospects — rose to the highest in just

over five years. “There are no justifications, if not

emotional ones, for what’s happening on the mar-

kets today,” Visco said. That comment that wasn’t

included in the text of his speech released by the

central bank.

“International investors are concerned about the

political uncertainty, but Italy’s economic funda-

mentals remain strong,” Intesa Sanpaolo CEO Carlo

Messina said on the sidelines of the Bank of Italy

event.

“It’s the uncertainty related to the outlook of new

elections that investors are already pricing in.”

Perceptions of a debtor can change for the worse

quickly, as happened in 2012 when financial mar-

kets attacked Italy, outgoing ECB vice-president Vi-

tor Constancio said in an interview with Germany’s

Der Spiegel published on Tuesday. “Italy knows the

rules. They might want to read them again care-

fully,” the newspaper quoted him as saying.

Visco also pointed out that growth momentum

remained solid and that Italy’s debt burden — which

stands at more than 130% of gross domestic prod-

uct — could rise when the ECB starts cutting back

its expansionary policies.

The Italian economy “is gaining strength, employ-

ment continues to recover, and some of the sources

of systemic risk in the banking system have been

eliminated,” he said. Debt servicing costs will fall “if

the tensions of the last few days subside.”

At a time of growth and with monetary policy still

highly accommodative, increasing the deficit is

not the answer, according to the governor, even if

tweaks can be made to pensions and a guaranteed

income scheme for the poor that populist parties

have vowed to expand.

“The reforms introduced in the past have made

spending on pensions manageable; they have also

placed Italy in a favourable position by interna-

tional standards,” Visco said. “Any turning back

would be risky.”

Spain nominates De Cosas head of central bankBloombergMadrid

Spain’s government nomi-nated Pablo Hernandez de Cos to head the country’s

central bank, backing an internal candidate with years of experi-ence at the institution.

Hernandez de Cos, 47, has spent the past decade at the Bank of Spain, where he was most recently director general for economics. He worked as an economist there from 1997 to 2004 and was also at one point an adviser to the Executive Board of the European Central Bank.

The government described Madrid-born Hernandez de Cos as an “excellent candidate,” cit-

ing his “technical capacities in the areas of banking and mon-etary policy.” Speaking to a par-liamentary committee yester-day, Economy Minister Roman Escolano referenced his exper-tise and impartiality.

“This is an ideal candidate, who is independent from any government affi liation,” Escol-ano said. “Spain wants to lead and infl uence decision making in this new phase of European integration, that’s why we need to have the most qualifi ed rep-resentatives in key institutions.”

Hernandez de Cos will suc-ceed Luis Maria Linde, who is retiring on June 11, and he takes over with the economy in far better shape: Growth is fore-cast to be about 2.7% this year

— faster than the euro-area av-erage — which is a far cry from where it was when Linde took over in 2012. Back then, the economy was shrinking and the government was forced to seek a bailout for its banks.

“He will be joining the insti-tution at a very diff erent time and the challenges are obviously diff erent but equally relevant,” said Robert Tornabell, professor of banking and fi nance at ES-ADE. “He will have to guide the country as the ECB prepares to unwind its stimulus programme and normalise policy.”

While the economic backdrop is favourable, Spain is facing a political crisis after the So-cialists, the biggest opposition group in the parliament, fi led a

no-confi dence motion against Prime Minister Mariano Rajoy.

With the vote due on Friday, centrist Albert Rivera — who’s propped up Rajoy’s minor-ity government — has said he’ll work to force Rajoy out unless he calls a snap election later this year. Yields on Spanish 10-year debt jumped, touching the high-est since October. The two-year yield is at the highest in almost two years.

Escolano said it’s important the appointment of Hernandez de Cos isn’t delayed, arguing he must be present at the ECB pol-icy meeting set for June. Rajoy will confi rm the nomination to King Felipe and the appointment should be completed before June 8, Escolano said.

As head of the central bank’s research department, Hernandez de Cos has often advocated for further reforms to boost Spain’s competitiveness and insisted on budgetary discipline with a focus on reducing the defi cit.

While his credentials and technical background make him a consensus candidate, the ap-pointment may renew criticism about the lack of gender parity in central banking. Just last week, ECB Executive Board member Benoit Coeure called on govern-ments to do more for diversity and appoint more women to top jobs.

The position of Bank of Spain governor — which carries a seat on the ECB’s policy-setting council — has a term of six years and isn’t renewable.

Pablo Hernandez de Cos, 47, has spent the past decade at the Bank of Spain, where he was most recently director general for economics. He worked as an economist there from 1997 to 2004 and was also at one point an adviser to the Executive Board of the European Central Bank.

Pret A Manger sold for $2bn to Germany’s Reimann familyJAB sale values Pret at about 15 times EBITDA; Bridgepoint had examined New York listing for chain; JAB is challenging Nestle in coff ee industry; Pret staff to each get £1,000 bonus

ReutersLondon

British sandwich and cof-fee shop chain Pret A Manger was sold for $2bn

yesterday to an investment fund of Germany’s billionaire Reimann family, as part of a global acquisition spree aimed at challenging Nestle in the coff ee sector.

The sale values Pret at more than £1.5bn ($2bn) including debt and gives Pret founders Julian Metcalfe and Sinclair Beecham a fi nal exit from their remaining investment in the chain they founded 32 years ago.

It also gives a windfall to Pret’s 12,000 staff as chief ex-ecutive Clive Schlee said via Twitter they would each get a £1,000 bonus once the deal completes.

Pret, whose organic coff ee and upmarket sandwiches such as crayfi sh and rocket proved popular enough to propel its growth from a single shop in London to a 530-strong glo-bal chain, generated revenue of £879mn last year.

For Luxembourg-based pur-chaser JAB Holdings, the ac-quisition of a majority stake in Pret from private equity fi rm Bridgepoint and other minor-ity investors is the latest in a multi-billion dollar series of takeovers designed to expand its coff ee and beverage empire.

JAB has already bought Keurig Green Mountain and Peet’s Coff ee & Tea, and Keurig subsequently struck a deal

worth more than $21bn to com-bine with soda maker Dr Pepper Snapple Group.

JAB, whose owners the publicity-shy Reimann fam-ily are descended from Lud-wig Reimann, a chemist who in the 19th century joined the chemicals business founded by Johann Adam Benckiser and married into Benckiser’s family, has also made a string of deals including for bakery chains Au Bon Pain and Panera Bread, as well as Krispy Kreme.

Nestle meanwhile recently boosted its position as the world’s biggest coff ee company with a $7.15bn licensing deal with Starbucks Corp Bridge-point bought a majority stake in Pret a decade ago for about £345mn and had been examin-ing an exit via a New York stock market listing before opting to sell to JAB.

The sale price represents a multiple of 15 times Pret’s 2017 earnings before interest, taxes, depreciation and amortisation of more than £100mn, accord-ing to a person with knowledge of the matter.

“Management’s proven track record and commitment to customer service, investment in innovation and approach to freshly prepared food position Pret well as it capitalises on evolving consumer taste and lifestyle preferences,” said JAB chief executive Olivier Goudet.

The sale to the Reimann fam-ily’s fi rm was fi rst reported by the Financial Times.

The Pret sale comes a month after Whitbread said it would demerge its Costa coff ee chain within two years, a lengthy timeframe that stoked specula-tion Costa may attract a bidder which some bankers speculated could be JAB.

JP Morgan advised Bridge-point on the Pret deal, while JAB worked with HSBC.

While European rules can be debated, criticised and improved, Italy cannot disregard constitutional constraints that protect savings, balance accounts and ensure the respect of international treaties, Visco said.

KKR bets on corporate software with BMC buyReutersNew York

Investment fi rm KKR confi rmed yesterday it would buy BMC Soft-ware from owners including Bain

Capital and Golden Gate Capital, adding to a series of bets it has made on companies which provide software and IT systems for corporations.

Houston-based BMC, which pro-vides software that helps companies organise their tech support functions, was taken private for $6.9bn in 2013 by a group led by Bain and Golden

Gate, after pressure from activist hedge fund Elliott Management Corp.

The New York Post reported last week that BMC could be worth around $10bn, citing a single source familiar with the deal.

The statement yesterday gave no indication of the deal value.

The acquisition comes at a time when software companies are reori-enting themselves to focus on high-er-margin businesses such as cloud-computing, cyber-security and data analytics to counter a slowdown in their legacy businesses.

The S&P 500 software index of

16 large US software vendors has climbed some 75% over the past two years.

In 2018 alone, it has gained 15.8%, eclipsing the benchmark S&P 500’s 1.8% advance.

KKR has invested about $26bn in the technology sector over the past decade, and BMC will join a portfo-lio that includes Mitchell, Epicor and Calabrio — all fi rms that make soft-ware used by businesses.

The deal comes after BMC explored both an initial public off ering that would have valued the company at more than $10bn as well as a merger

with fellow software maker CA Inc, Reuters has reported.

The merger talks fell through in July last year after BMC struggled to ar-range fi nancing for the deal, sources told Reuters.

KKR’s acquisition is expected to close in the third quarter of 2018.

Credit Suisse, Goldman Sachs, Jef-feries, Macquarie and Mizuho Bank provided fi nancing for the acquisi-tion.

Goldman Sachs, Credit Suisse and Morgan Stanley were BMC’s fi nancial advisers, while Macquarie Capital ad-vised KKR.

A pedestrian passes a Pret A Manger sandwich store in London. The sale yesterday values Pret at more than £1.5bn ($2bn) including debt and gives Pret founders Julian Metcalfe and Sinclair Beecham a final exit from their remaining investment in the chain they founded 32 years ago.

The KKR deal comes after BMC explored both an initial public off ering that would have valued the company at more than $10bn as well as a merger with fellow software maker CA Inc, according to a Reuters report.

BUSINESS15Gulf Times

Wednesday, May 30, 2018

Facebook allegedly used by more firms to block older job seekersBloombergPalo Alto

A proposed class action lawsuit alleging Facebook’s

ad placement tools facilitate discrimination against

older job-seekers has been expanded to identify

additional companies, further widening the latest

front in claims that candidates are being filtered out

by gender, geography, race and age.

“When Facebook’s own algorithm disproportionate-

ly directs ads to younger workers at the exclusion

of older workers, Facebook and the advertisers who

are using Facebook as an agent to send their ad-

vertisements are engaging in disparate treatment,”

a communications union alleged in the amended

complaint — citing a legal test for employment

discrimination — filed yesterday in San Francisco

federal court. The union added claims under

California’s fair employment and unfair competition

statutes to the lawsuit, which was initially filed in

December.

The Communications Workers of America is suing

on behalf of union members and other job seekers

who allegedly missed out on employment opportu-

nities because companies used Facebook’s ad tools

to target people of other ages.

The original filing named defendants are Amazon.

com Inc, Cox Media Group, Cox Communications

Inc and T-Mobile, as well as what the union esti-

mates to be hundreds of employers and employ-

ment agencies who used Facebook’s tools to filter

out older job hunters when seeking to fill positions.

The amended filing adds Ikea, Enterprise Rent-A-Car,

and the University of Maryland Medical System to

its list of companies who allegedly used Facebook’s

tools to filter by age. Those three entities, as well as

Facebook, aren’t named defendants in the lawsuit.

Facebook and the companies added to the amended

complaint didn’t immediately responded to requests

for comment made before regular business hours.

The union alleged in its amended complaint that

Facebook also uses age-filtering in ads intended to

find its own employees. In January, the union filed

an Equal Employment Opportunity Commission

complaint about the alleged practice, according

to a copy obtained by Bloomberg News. An EEOC

spokeswoman declined to confirm or deny the

complaint.

“It’s important that the EEOC engages in a rigorous

and comprehensive investigation of Facebook,

since Facebook is the largest employment agency

in the history of the world,” Peter Romer-Friedman,

a lawyer for the union, said in an interview.

In a December statement, Facebook vice-president

of Advertisements Rob Goldman said “Facebook

tailors our employment ads by audience” and “we

completely reject the allegation that these adver-

tisements are discriminatory.”

Regarding other companies, he said the company

helps educate advertisers about their legal re-

sponsibilities and requires them to certify they are

complying with the law. Comparing age-targeted

employment ads to ads placed in magazines or

on TV shows favoured by people of certain ages,

Goldman wrote that, “Used responsibly, age-based

targeting for employment purposes is an accepted

industry practice and for good reason: it helps em-

ployers recruit and people of all ages find work.”

The debate over targeted online advertising has

drawn the attention of the US Senate Special Com-

mittee on Aging, whose Republican and Democratic

leaders jointly requested Facebook hand over

information, including how many jobs have been

advertised on Facebook over the past five years

using age- specific ads, and what age criteria were

used.

The CWA litigation may be a sign of things to come

as hiring increasingly migrates onto Internet plat-

forms, said Ifeoma Ajunwa, a lawyer and sociologist

who teaches at Cornell University’s Industrial and

Labor Relations School.

“The same types of discrimination issues that you

would see in traditional hiring are now just being

transferred over to the platforms,” she said.

“You could even argue that the new way, using

platforms, is worse, because it’s more solidified

— there’s no wiggle room, there’s no accidental

meetings.”

In the amended complaint, CWA alleged that Face-

book encourages advertisers to exclude some job-

seekers by providing both age filters and regularly

updated data on how ads perform among diff erent

age groups. The union also claims Facebook targets

employment ads to “lookalike audiences” chosen

for their demographic similarity to the people who

already have a job at the same company, a practice

which further marginalises older job-seekers.

The union also alleged that, “in addition to encour-

aging and allowing employers and employment

agencies to restrict which Facebook users will

receive job ads based on their age,” Facebook’s

algorithm further factors in age when determining

which users among the population chosen by the

advertiser will actually see the ad.

Federal law off ers immunity for Internet platforms

acting as “passive conduits” of information.

In a Q&A posted in its online Help Center, Facebook

tells users that, to “decide which ads to show you,”

it uses factors including information from user ac-

counts such as location, gender and age.

How much discretion Facebook uses in serving up

ads based on user age could be a crucial question

in the EEOC complaint and the CWA lawsuit. The

1996 Communications Decency Act off ers Internet

companies a shield from being held liable “as the

publisher or speaker” of content placed on their site

by other parties, such as comments left in public

forums.

That law could be a potential defence against the

union’s EEOC allegations, or in resisting eff orts to

force disclosures about how advertisements were

targeted, and what role Facebook played, if any.

The US Court of Appeals in San Francisco has previ-

ously ruled that, while the law off ers immunity for

platforms acting as “passive conduits,” it doesn’t

shield a company which “contributes materially to

the alleged illegality of the conduct.”

The circuit, which subsumes the CWA lawsuit’s

venue, ruled in a 2008 case that the Communica-

tions Decency Act wouldn’t prevent liability for

a company that specifically off ered prospective

roommates drop-down menus from which to

declare preferences based on race.

Still, courts have generally interpreted the CDA’s

protections very broadly, said University of Miami

law professor Mary Anne Franks, including in a

series of rulings siding with the website Backpage.

com when it was sued for allegedly facilitating sex

traff icking.

Those rulings spurred congressional passage of a

law meant to quash Backpage’s defence against the

CDA. While that move to carve out an exception to

the law’s protections of Internet companies was tai-

lored to punish alleged sex traff icking, Franks says it

could contribute to a climate of greater scepticism

about the breadth of the law’s protections, which

could also influence judicial rulings.

Romer-Friedman said the plaintiff s’ new allegations

would make it that much harder for Facebook to

use the CDA as a shield.

“To the extent that Facebook’s algorithm is using

age to determine who will get what ads, and that

results in order workers being excluded,” he said,

“those decisions are Facebook’s decisions.”

Trump ploughs ahead on China tariff threats, investment curbsBloombergWashington

President Donald Trump signalled his

intention to impose tariff s on $50bn in Chi-

nese imports and curbs on investments in

sensitive technology, sending a hawkish

message to Beijing days before the latest

round of trade talks between the world’s

two largest economies.

In a statement yesterday, the White House

said a final list of covered imports will be

released by June 15 and the tariff s will be

imposed “shortly thereafter.”

It’s the most specific the administration

has been about when the duties will take

eff ect.

The White House also said new restric-

tions on Chinese investment and en-

hanced export controls will be announced

by June 30, with implementation soon

after.

“The US will continue eff orts to protect

domestic technology and intellectual

property, stop non-economic transfers

of industrially significant technology

and intellectual property to China, and

enhance access to the Chinese market,”

the statement said.

“The US will request that China remove

all of its many trade barriers, including

non-monetary trade barriers, which make

it both diff icult and unfair to do business

there.”

It’s the latest twist in a trade dispute

between the US and China that has roiled

financial markets and prompted the

International Monetary Fund to warn of

a trade war that could undermine the

broadest global upswing in years. The

announcement raises the stakes for the

third round of talks between the two

economies.

Commerce Secretary Wilbur Ross is sched-

uled to meet with off icials in Beijing on

June 2-4 to continue negotiations.

Trump has vacillated in recent weeks on

how hard to push Beijing over issues such

as tariff s and intellectual property. The

dispute began in March, when his admin-

istration threatened to slap tariff s on up

to $50bn in Chinese shipments to punish

Beijing for violating American IP rights.

After Beijing promised to retaliate in kind

to any duties, the president raised the ante

to slap tariff s on an additional $100bn in

Chinese goods. However, the US has yet

to publish a list of target products for the

$100bn, and the White House statement

makes no reference to the second poten-

tial tranche of duties.

Trump is under pressure from Congress

to stay tough on China, especially Chinese

telecoms-equipment maker ZTE Corp

Last week, the president said he would

allow ZTE to stay in business after it

pays a $1.3bn fine, shakes up its manage-

ment, and provides “high-level security

guarantees.”

China pressed the US to give ZTE a break

after the Commerce Department cut off

the company from US suppliers to punish

it for allegedly lying to American off icials

in a sanctions case. Republican Sena-

tor Marco Rubio and other lawmakers

from both parties have criticised Trump’s

leniency towards ZTE, arguing that doing

business with the company presents a risk

to national security.

When he announced the initial plan to im-

pose tariff s, the president also instructed

the Treasury Department to draw up

new curbs on investments in the US by

Chinese companies. The Treasury has

presented its findings to the president,

but its conclusions haven’t been made

public.

The latest signal from the White House

sounds like the more hawkish wing of

Trump’s trade team is trying to amplify

its hard line, after Treasury Secretary

Steven Mnuchin said this month that

any talk of a trade war was suspended

for now.

“Mnuchin’s ‘trade war on hold’ com-

ments look to have been repudiated this

morning, and possibly his investment

stance, too,” said Derek Scissors, a China

analyst at American Enterprise Institute in

Washington.

“It may be the administration has shifted

somewhat to appease the Congress on the

lifting of the ZTE sanctions.”

The White House statement also said the

US plans to continue litigation at the World

Trade Organisation for China’s intellectual-

property practices.

Canada to buy Kinder’s Trans Mountain pipelineBloombergOttawa

Canada will buy Kinder Morgan Canada Ltd’s Trans Mountain oil pipe-

line and its controversial expan-sion project for C$4.5bn ($3.5bn) in a bid to ensure it gets built amid fi erce opposition.

Finance Minister Bill Morneau and Natural Resources Minister Jim Carr announced the plan yesterday in Ottawa. “It must be built and it will be built,” Morneau said. The deal, which includes the expansion, related pipeline and terminal assets, is expected to close in August.

Construction will continue through the 2018 season, and the federal government will transfer it to one or more new owners when “appropriate.”

Buying the pipeline outright had become increasingly likely after Prime Minister Justin Tru-deau fi rst pledged only to back-stop it.

“We are going to get that pipeline built,” Trudeau said yesterday morning as he headed into a meeting with his cabinet.

The purchase marks a stun-ning development for Tru-deau’s government — eff ectively nationalising the country’s highest-profi le infrastructure project until an operator can be

found. The project has been be-set by legal uncertainty and ris-ing protests from environmental groups and the province of Brit-ish Columbia. It will be a key test of Trudeau’s bid to balance the environment and the economy by backing the C$7.4bn pipe-line expansion while pushing a national carbon price to reduce greenhouse gas emissions.

Canada fi rst off ered earlier this month to indemnify the expansion project before mak-ing yesterday’s announcement. The plan includes the existing pipeline that’s been in operation since 1953.

The plan announced Tuesday has several stages — construc-

tion will continue this year with a Federal loan guarantee as the deal is fi nalised; the government will look for a new owner or owners to transfer the project to; and then “indemnify” the owner against certain costs.

Calgary-based Kinder Mor-gan Canada, a unit of the Hou-ston-based parent, was little changed at C$16.59 in Toronto trading on Monday, for a market value of C$5.76bn. Shares were halted yesterday pending the announcement, and the com-pany was due to hold a call after Morneau announcement.

The two sides had been in talks since the company set a May 31 deadline for the govern-

ment to give certainty in the face of opposition from British Columbia, which is concerned about increased tanker traffi c and possible oil spills along the Pacifi c coast. Trudeau pledges regularly that the pipeline will be built.

The Trans Mountain expan-sion would almost triple ca-pacity to 890,000 barrels of oil on a line running from Alberta to a terminal near Vancouver. The 980km (600-mile) expan-sion is seen by the oil indus-try as a crucial link to Asian markets, allowing producers to diversify away from the US, which takes the vast majority of Canadian oil exports.

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alta. Canada’s purchase of the facility marks a stunning development for Prime Minister Justin Trudeau government — eff ectively nationalising the country’s highest-profile infrastructure project until an operator can be found.

Push for Nafta deal forges on as Congress, tariff deadlines loomBloombergOttawa

Canada’s foreign minister is headed to Washington as the clock ticks down

to reach a deal on updating the North American Free Trade Agreement that could pass Congress this year and skirt metals tariff s.

Chrystia Freeland will hold Nafta meetings in the US capi-tal today and tomorrow, ac-cording to a statement from her offi ce. She didn’t release a detailed itinerary, but is scheduled to meet with US Trade Representative Robert Lighthizer, according to a gov-ernment offi cial familiar with talks, speaking on condition of anonymity.

Time is running out. The US has exempted Canada and Mexico so far from tariffs on steel and aluminium, but tied that to Nafta talks. Those ex-emptions are set to expire on Friday morning, at the end of what the White House has called a “final” extension.

US House Speaker Paul Ryan has also suggested a Nafta deal is needed around then to pass the current Congress. Adding to pressure is a Mexican elec-tion on July 1 that could usher in populist Andres Manuel Lopez Obrador as president, and the new threat of auto tar-iff s, which would hurt Canada and Mexico.

The trio of Nafta ministers doesn’t look set to meet. Mex-ican Economy Minister Ilde-fonso Guajardo, leading Nafta talks for his country, is in Paris yesterday and today for Or-

ganisation for Economic Co-operation and Development meetings. Lighthizer attended those meetings last year and is expected to this year, but hasn’t formally confi rmed a trip.

Nafta talks have lately fo-cused largely on the automo-tive sector, though other key barriers remain, such as over US demands for an automatic termination clause. Mexico is said to have off ered a major concession on autos — agree-ing to require 20% of a car is built at high wages — in ex-change for the US dropping other controversial provisions. The US hasn’t publicly re-sponded.

Speaking on Monday in Ot-tawa, Freeland said the gov-ernment is standing “fi rmly behind” her country’s autow-orkers, and chastised US of-fi cials for the premise of auto tariff s — that Canada’s vehi-cle-manufacturing industry threatened US national secu-rity.

“The idea that Canada and Canadian cars could pose any kind of security threat to the US is frankly absurd, and I have made that clear to the US ad-ministration,” Freeland told lawmakers in Ottawa on Mon-day.

Guajardo said last week he sees a 40% chance of reaching a Nafta deal before July 1, Mexi-co’s election day.

Unifor President Jerry Dias, whose union represents Cana-dian autoworkers and others, said there are many barriers to a deal.

“They have a lot of foolish-ness on the table that nobody’s going to agree to,” Dias said in an interview aired on Sunday on Global News, referring to US proposals. He frequently downplays the likelihood of reaching a deal, and did so again.

“The talks will continue, but there is no way that we can get this thing done in the short term.”

Time is running out. The US has exempted Canada and Mexico so far from tariffs on steel and aluminium, but tied that to Nafta talks. Those exemptions are set to expire on Friday morning

BUSINESSWednesday, May 30, 2018

GULF TIMES

Surge in Gulf sovereign bond issuances, oil price can ease region’s fiscal strains

BANKING ON KNOWLEDGE

By Dr R Seetharaman

Major global bond issuances came from the Federal Republic of Germany, the European Investment Bank and CVS Health Corp. Global bond issu-ances were above $1.9tn in 2018 and above $4.3tn in 2017. Global sukuk issuances in 2018 were above $21bn. The major sukuk issuances came from the Republic of Indonesia — $3.18bn and Dan Infra Nasional Bhd — $1.2bn. In 2017, global sukuk issuances were above $55bn. US government debt yields fell last Friday and notched weekly losses after the Federal Reserve signalled it could allow inflation to run above its target. The yield on two-year yield was 2.47%; the benchmark 10-year Treasury Note was at 2.93% and the yield on the 30-year Treasury Bond was lower at 3.09% by end of last week.

The spread between 2- and 10-year Treasury Note yields was less than half a percent. But the curve is expected to move up as the Fed continues to raise short-term policy rates and we need to

see the Fed action in June 2018.The yield on the 10-year benchmark US Treasury Note fell this week below 2.9%, in response to the Italian uncertainty and a drop-in oil prices. Earlier this month, the 10-year Treasury yields reached as high as 3.11% — the highest level since July 2011. The spike in yields was largely caused by strong economic data, leading to increasing expectations of firming inflation and further Fed rate hikes. Markets during this time were also digesting Trump’s move to withdraw the US from the Iran nuclear deal.The bond issuances in the Gulf exceeded $54.8bn in 2018. The conventional bond issuances in the Gulf exceeded $47bn in 2018 and sukuk exceeded $7.4bn in 2018.The major conventional sovereign issuances in 2018 came from the State of Qatar — $12bn, Qatar Investment Authority — $6.18bn and Sultanate of

Oman — $6.5bn. Qatar raised $12bn in a bond issue in April 2018, the largest placement by an emerging market sovereign this year, marking a successful comeback to the international debt markets.The guidance to final spreads was 135 bps over US Treasuries for $3bn in five-year notes, 170 bps over the benchmark for $3bn in 10-year notes and to 205 bps over for $6bn in 30-year paper.Gulf bond sales reached a new record of $85bn in 2017 following a bumper 2016, bolstered by governments seeking to raise funds amid falling revenues from oil; and the year 2018

has so far been a happening year for gulf bond market, mainly from Gulf Sovereigns.According to Climate bond analysis for 2017, the Climate bonds issued were worth $155.5bn. The US, China and France led the issuances between them. The US bond issuances were $43.1bn, China at $22.5bn & India at $4.3bn. The largest single green bond placement originated from the Republic of France, which ended 2017 at $10.7bn.In 2018, Belgium sovereign came with a $4.5bn green bond issuance. Indonesia also came with a bond issuance of $1.25bn. The Gulf market has not witnessed significant green

bond issues and last year one of the Gulf-based banks had done a Green bond issue.The Qatar Central Bank (QCB) seeks to facilitate the issuances of green bonds, enhance cooperation with the Qatar Development Bank to foster economic diversification through green financing and promote sustainable investment and devise incentives for the financial and manufacturing firms to promote such financing.Oil prices have touched new highs this year with Brent almost reaching $80 a barrel and were recently falling due to possible action from major oil producers.The surge in Gulf sovereign bond issuances, along with rise in oil prices, can ease the fiscal strain on gulf sovereigns.

The author is Group CEO of Doha Bank.

Ooredoo extends managedservices to support Qatar’sbusiness competitivenessOoredoo has ex-

tended its managed services that aim to

support Qatar’s business competitiveness for the country’s public and pri-vate sector organisations with international pres-ence.

As part of the new ca-pabilities, Ooredoo and its partners are off ering its business customers with the most advanced Global Customer Premise Equip-ment (CPE) and Managed Router services for global connectivity requirements.

Using the new services, Qatar’s organisations can rely on Ooredoo to manage their networking, inside and outside Qatar end-to-end. As a result, business customers can increase their revenue and boost their productivity, as well as business competitive-ness.

Ooredoo COO Yousuf Abdulla al-Kubaisi said, “Ooredoo’s cost-eff ective, reliable, and secure con-nectivity solutions support real-time dashboards for organisations to monitor and optimise their network traffi c. High bandwidth connectivity is vital for

mission-critical business applications and next-generation technologies, and will enhance Qatar’s standing as a global digital hub.”

Ooredoo’s new and ex-panded global connectivity solutions provide versatile, secure, and reliable con-nections, across three main layers of network infra-structure: Private Leased Circuit, Global Ethernet, and Global IP Virtual Pri-vate Network (VPN) serv-ices.

Al-Kubaisi added: “Ooredoo off ers cost-ef-fective and reliable designs for complex connectiv-ity needs of bandwidth-intensive new generation technologies. All industry verticals can subscribe to services running on our fully-resilient network, both in-country and out-side of the country.”

Business customers can leverage the Ooredoo Ad-vantage, making Ooredoo “Best for Business,” thanks to its breadth and depth of talent, best fi xed and mo-bile networks, broadest portfolio of ICT services and solutions, a trusted partner for 60 years.

Gulf stocks see limited gains; property shares weigh on DubaiTrading volumes stay low because of Ramadan; Drake & Scull drops in Dubai; Dubai Islamic Bank rights trading to end this week; banking shares up in Saudi and Abu Dhabi

ReutersDubai

Dubai shares were slug-gish yesterday, dragged down by property

stocks, while other Gulf mar-kets closed in positive territory.

Gains were modest amid very thin trading volumes during the holy month of Ramadan, a risk-off sentiment in foreign mar-kets as well as slightly lower oil prices over the past few days.

In Dubai where the index slipped 0.2% to 2,925 points, property stocks such as Un-ion Properties and blue-chip Emaar Properties lost 1.1% and 0.6%, respectively.

Building contractor Drake & Scull International shed 1.7%, after gains this month follow-ing positive fi rst-quarter re-sults.

The company reported a net profi t of 7.3mn dirhams ($1.99mn) for the fi rst quarter of this year, against an 838.8mn loss in the fi rst quarter of 2017.

However, in a note earlier this week, research fi rm AlphaMena

said a sustainable recovery for the stock was unlikely “since the contractor is still facing li-quidity issues and needs to im-prove its business effi ciency.”

Heavyweight Dubai Islamic Bank rose 1.2% to 4.79 dirhams, recovering after falling early yesterday.

The bank’s shares have been sliding since it launched a rights issue in mid-May with an issue price of 3.11 dirhams per new share.

The rights trading period ends on May 30.

In Saudi Arabia, the index rose 0.5% to 8,000 points, lift-ed by gains in banking and pet-rochemical shares.

Alinma Bank and Bank Al-jazira rose 0.4% and 1.4%, re-spectively.

Blue-chip Saudi Basic In-dustries Corp climbed 1.7%.

In Abu Dhabi, banking shares such as First Abu Dhabi Bank and Abu Dhabi Commercial Bank gained 1.2% and 0.6%, respectively. The Abu Dhabi index increased 0.6% to 4,575 points.

The index rose 0.6%.Elsewhere in the Gulf, the

Kuwait index gained 0.4% to 4,712 points, the Bahrain index edged up 0.2% to 1,263 points and the Oman index climbed 0.2% to 4,598 points.

In Egypt, the index went up 1.3% to 17,006 points.

As part of the new capabilities, Ooredoo and its partners are off ering its business customers with the most advanced Global Customer Premise Equipment (CPE) and Managed Router services for global connectivity requirements.

QSE remains flat despiteforeign institutions’robust buying supportBy Santhosh V PerumalBusiness Reporter

Strong selling, especially in the industrials and transport counters, notwithstanding, the Qatar Stock Exchange yesterday remained flat, a day after it made a huge leap.Foreign institutions’ robust buying was to a great extend contained by severe selling of their domestic counterparts that the 20-stock Qatar Index was up mere 0.01% to 9,126.4 points.Doha Bank and Masraf Al Rayan sponsored exchange traded funds QATR and QETF reported 0.55% and 0.12% gains respectively.There was weakened net selling by local retail investors and Gulf institutions in the market, which is however up 7.07% year-to-date. Although micro, small and large cap stocks witnessed gains, the market capitalisation was largely flat at QR506bn.Trade turnover expanded amidst lower volumes in the market, where banking, industrials and transport sectors together accounted for about 85% of the total volume.The Total Return Index was up 0.01% to 16,079.71 points and All Share Index by 0.02% to 2,671.27 points, while Al Rayan Islamic Index (Price) was down 0.08% to 2,210.79 points.

The insurance index gained 0.68%, banks and financial services (0.36%) and realty (0.25%); whereas industrials declined 0.68%, transport (0.62%), consumer goods (0.3%) and telecom (0.28%).Major gainers included Commercial Bank, Medicare Group, Qatar Insurance, Ezdan, United Development Company, Qatari Investors Group and QNB; while Doha bank, Alijarah Holding, Qatari German Company for Medical Devices, Industries Qatar, Aamal Company, Mesaieed Petrochemical Holding, Nakilat and Vodafone Qatar were among the losers.Non-Qatari institutions’ net buying grew substantially to QR280.24mn compared to QR219.26mn on May 28.Local individual investors’ net selling declined significantly to QR41.59mn against QR129.63mn the previous day.The Gulf funds’ net selling also weakened considerably to QR39.5mn compared to QR60.59mn on Monday.However, domestic institutions’ net profit booking expanded influentially to QR191.62mn against QR28.13mn on May 28.The Gulf individuals turned net sellers to the tune of QR4.34mn compared with net buyers of QR2mn the previous day.Non-Qatari individual investors’ net profit booking increased perceptibly to QR3.08mn against QR2.9mn on Monday.

Total trade volume fell 8% to 11.02mn shares, while value rose 22% to QR789.2mn despite 5% lower transactions at 6,415.The telecom sector’s trade volume plummeted 69% to 0.73mn equities, value by 29% to QR21.47mn and deals by 16% to 358.The insurance sector reported 38% plunge in trade volume to 0.08mn stocks, 40% in value to QR2.66mn and 49% in transactions to 57.The consumer goods sector’s trade volume tanked 24% to 0.22mn shares, while value soared 54% to QR18.3mn and deals by 13% to 295.The market witnessed 7% decline in the industrials sector’s trade volume to 2.43mn equities but on 17% growth in value to QR126.85mn despite 11% fall in transactions to 1,372.However, the real estate sector’s trade volume soared 35% to 0.66mn stocks, value by 9% to QR7.66mn and deals by 17% to 245.There was 23% surge in the transport sector’s trade volume to 2mn shares and 23% in value to QR34.85mn but on 27% decline in transactions to 1,108.The banks and financial services sector’s trade volume expanded 8% to 4.9mn equities, value by 27% to QR577.42mn and deals by 10% to 2,980.In the debt market, there was no trading of treasury bills and sovereign bonds.

Qatar infl ation 0.6% up y-o-yin fi rst quarter on health, food, clothing and transportationBy Santhosh V PerumalBusiness Reporter

Higher expenses towards transportation, health, food and clothing pushed up Qa-

tar’s cost of living, based on con-sumer price index, by 0.6% year-on-year (y-o-y) in the fi rst quarter of this year, according to the offi cial fi gures.

The CPI infl ation was up 0.2% compared to the fourth quar-ter (Q4) of 2017 (q-o-q), owing to costlier transportation, health, restaurants and clothing, said the Ministry of Development Planning and Statistics.

Transport index, which has 14.59% weightage in the CPI bas-ket, surged 8% and 3.5% y-o-y and q-o-q respectively in Q1, 2018. The operation of personal trans-port became costlier by more than 14% and transport services by 9% y-o-y.

Health index, which carries a 1.79% weightage in the CPI basket, expanded 5.3% and 2.2% y-o-y and q-o-q in Q1 2018. The hospital and outpatient services increased 9% and 5% respectively on a yearly ba-sis.

Restaurants and hotels index, which has 6.08% weight in the CPI

basket, gained 2.9% y-o-y and 2.1% q-o-q in Q1 2018.

Clothing and footwear index, which carries 5.11% weight in the CPI basket, saw 3% rise y-o-y in Q1 2018 and 1.6% against the previous quarter. Clothing particularly be-came costlier 3.75% y-o-y.

Furniture and household equip-ment index, which carries 7.7% weightage in the CPI basket, gained 1.1% both y-o-y and q-o-q in Q1, 2018. Within this group, glassware, tableware and house-hold utensils became costlier by 14% and tools and equipment for house and garden by 10% on a yearly basis.

Miscellaneous Goods and Services index, which has 5.69% weightage in the CPI basket, gained 1.5% y-o-y and 0.8% in q-o-q in Q1, 2018.

Education index, which carries 5.75% weight in the CPI basket, in-creased 0.9% y-o-y in Q1 2018 and

0.1% q-o-q. The cost of non-terti-ary education soared 12% and that towards preparatory and secondary education by 2% y-o-y.

Food and non-alcoholic beverage index, which has a weight of 12.58% in the CPI basket, grew 4.3% y-o-y in Q1, 2018 even as it fell 2.2% on a quarterly basis. Food and beverages became costlier by 5% and 2% re-spectively y-o-y.

Housing, water, electricity and gas group — with a weight of 21.89% in the CPI basket — saw its index plunge 5.7% y-o-y in Q1, 2018, and 0.9% compared to Q4, 2017. The maintenance and repair of dwelling became costlier by more than 9% on a yearly basis.

Recreation and Culture index, which has 12.68% weightage in the CPI basket, plummeted 1.9% and 1% y-o-y and q-o-q respec-tively in Q1, 2018. Audio visual and photographic equipment became cheaper by 12%, package holidays by 3% and newspapers, books and stationary by 2% on a yearly basis.

Communication index, which carries 5.87% weight in the CPI basket, saw a 1.1% fall y-o-y but re-mained unchanged q-o-q.

Tobacco group, which has 0.27% weight in the CPI basket, was un-changed both on yearly and quar-terly basis.

Transport index, which has 14.59% weightage in the CPI basket, surged 8% and 3.5% y-o-y and q-o-q respectively in Q1, 2018. The operation of personal transport became costlier by more than 14% and transport services by 9% y-o-y