Wednesday, December 14, 2016Rabia I 15, 1438 AH

BUSINESSGULF TIMES

Problem areas pinpointed in Islamic fi nance

Bull run continues on QSE

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Trump picks Exxon Mobil CEO Tillerson for secretary of state

QP to cut oil output from January after Opec deal

By Santhosh V PerumalBusiness Reporter

Qatar will cut its oil produc-tion from January 1, in line with the global oil produc-

ers’ decision to collectively reduce output by 1.2mn bpd in order to re-balance an already over-supplied global market.

“We have started advising our customers of the expected reduc-tions in oil deliveries to ensure the state’s compliance with Opec’s allocations,” Qatar Petroleum president and chief executive Saad Sherida al-Kaabi said in a state-ment here yesterday.

He said the decision comes in line with Qatar’s commitment to the recently agreed production levels by the members of the Or-ganisation of the Petroleum Ex-porting Countries (Opec) during its ministerial meeting held on November 30.

However, the statement did not disclose on the quantum of cut that Qatar would undertake.

While Opec members have agreed to reduce output by 1.2mn bpd, non-Opec countries agreed to cut by 558,000 bpd.

After weeks of hectic parleys, Opec members had inked a pact on a cut in oil production to 32.5mn bpd in early 2017, from an estimat-ed 33.6mn bpd in October 2016.

“This agreement comes from a sense of responsibility from Opec member countries and non-Opec member countries for the general well-being and health of the world economy,” HE the Minister of En-ergy and Industry Dr Mohamed bin Salah al-Sada had said after the meeting.

Ever since the deal was arrived at, global oil prices have rebound-ed. The price of Opec basket of 14 crudes stood at $53.24 a barrel on Monday against $50.95 the previ-

ous Friday, according to Opec cal-culations.

In view of the simmering diff er-ences earlier among its members on output cut, Opec secretary gen-eral Mohamed Barkindo had ear-lier cautioned that anything short of implementation of the accord could lead to the elongation of the rebalancing process, with further deterioration of fi nancial condi-tions and setbacks in investments extending into a third year, which would be unprecedented.

“We should be calling for maxi-mum commitment from all Opec and non-Opec countries” he said earlier.

The country allocations and an independent production moni-toring committee are also part of the deal, according to which Saudi Arabia is expected to cut produc-tion by 486,000 bpd and Iraq by

210,000; while Iran would increase it by 90,000 bpd.

In line with recommendations from the high-level committee of the ‘Algiers Accord’, the November 30 meet also agreed to institution-alise a framework for cooperation between Opec and non-Opec pro-ducing countries on a regular and sustainable basis. According to Opec’s November oil report, world oil demand is expected to increase by 1.23mn bpd in 2016 to average 94.4mn bpd; while supply is ex-pected to contract by 0.78mn bpd.

Expecting annual global oil demand to grow (by an average of 1.2mn barrels a day), Bank of America Merrill Lynch had said “we still see downside risks to our forecast”, keeping its 2017 fore-casts for Brent and WTI crude oil unchanged at $61 and $59 per bar-rel respectively.

QDB awards 5 entrepreneurial ideas at Al-Fikra contestAt the fi nal awards ceremony of Al-Fikra

National Business Competition 2016, Qatar Development Bank (QDB) an-

nounced the list of fi ve successful entrepre-neurial ideas that were developed during the course of the contest.

The fi fth edition of Al-Fikra National Busi-ness Competition was held under the patronage of HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani, who was present along with QDB chief executive offi cer Abdulaziz bin Nasser al-Kha-lifa, and other high-ranking offi cials of part-nered organisations.

The value of the awards amounted to more than QR8mn and prizes ranged from access to fi nance, incubation time and advisory services to help the successful entrepreneurs translate their business ideas into reality and commence operations on ground.

Al-Khalifa said, “We at QDB aspire to in-culcate a culture of creativity, entrepreneurial spirit and innovativeness across the nation through providing a supportive environment for entrepreneurs. An integral part of our de-velopment strategy for small and medium-sized enterprises (SMEs) has been to provide the requisite impetus for the national economy to achieve diversity and sustainable develop-ment, as envisioned in the Qatar National Vi-sion 2030. Our national business competition is a case-in-point.”

“Our primary focus during our evaluation phase was the quality and innovativeness of the submissions with respect to the commercial needs of the market - the fi nalists were selected by the jury on criteria that includes the quality of the ideas submitted and the feasibility of their business plans. Through the support of QDB, the

fi nalists are empowered to translate their busi-ness models into a reality. Here, I would like to thank all the pioneers of Al-Fikra, who partici-pated in the contest in the past editions, and I would like to sincerely congratulate the winners of the current fi fth edition,” he added.

QNB assistant general manager (SME Bank-ing) Khaled al-Nuaimi said, “QNB Group is pleased to sponsor this competition, which witnesses the presentation of many creative ideas from budding entrepreneurs. QNB Group

always aims to be at the forefront of the organi-sations supporting the eff orts of this upcoming generation of business men and women and nurturing their creative energies for the benefi t of our national economy and to build a brighter future for our State of Qatar.”

President of GTL Ventures at Sasol, Phinda Vilakazi, said, “Entrepreneurship is in our DNA. It is for this reason that Sasol continues to sup-port Al-Fikra and the talented youth of Qatar to develop their ideas into successful businesses, so

that they may make a diff erence in people’s lives. I would like to thank Qatar Development Bank for continuing to develop and support entrepre-neurship in Qatar.” ExxonMobil Qatar president and general manager Alistair Routledge said, “ExxonMobil Qatar is proud to support the 2017 edition of the Al-Fikra National Business Com-petition, hosted by Qatar Development Bank. It is a tremendous platform for future business leaders to build on their ingenuity and develop their unique competencies.”

In an eff ort to assist candidates in develop-ing their ideas and transforming them into op-erational projects, QDB has collaborated with a group of preeminent supporters and strate-gic partners to organise Al-Fikra this year. The competition is sponsored by QNB, Sasol and ExxonMobil as offi cial sponsors.

Moreover, QDB is collaborating with its two subsidiaries, Qatar Business Incubation Centre and Bedaya Center for Entrepreneurship and Career Development.

Oil may hit $70 in 2017, says BAMLBy Pratap JohnChief Business Reporter

Brent crude may hit $70 a barrel at the peak of the US

driving season and average $61/b in 2017, according to

Bank of America Merrill Lynch (BAML).

In its view, the Opec’s November 30 decision to cut

crude production with key non-Opec producers, a first

since 1998, “marks a clear turning point” with individual

country quotas being allocated to all members, an inde-

pendent production monitoring committee established.

And it appears the world’s largest crude oil producer

Russia has committed to join the cut, BAML said in its

‘2017 commodity outlook’ released yesterday.

As a result, Bank of America Merrill Lynch said the global

oil market should enter into a deficit as soon as first

quarter of next year it projects total global oil demand

roughly 560,000 barrels per day (bpd) above supply on

average over the course of next year.

Most importantly, BAML believes the “historic Opec and

non-Opec agreement marks a clear turning point” for

the global oil market.

In the past two and a half years, the supply glut has led

to a large inventory overhang, with total commercial

petroleum stocks across the Organisation for Eco-

nomic Co-operation and Development (OECD) sitting at

3,060mn barrels, about 350mn barrels above average

historical levels.

Given its outlook for a “gradual recovery” in Brent prices

to $61/b on average next year, BAML believes shale oil

production will reverse its current trend as early as next

year.

“After all, some shale basins have current breakeven

prices in the mid-30/b,” BAML points out.

The ‘Austin Chalk’ or the South Central Oklahoma Oil

Province (SCOOP) basins in the US, both rich in oil and

gas resources, have the lowest breakeven among all

basins.

Yet, production is “not significant enough” to make a

diff erence to the overall shale outlook for now.

As for the big three basins, breakeven prices are cur-

rently standing in the $40-50/b range on average for a

given play.

“As a result, our US oil service Equity Research col-

leagues expect a gradual increase in oil rigs from Q2,

2016 to Q4,2017, which could eventually lead to sequen-

tial growth in shale output,” BAML said.

In this base case scenario, BAML sees shale productiv-

ity at the same level as in 2016. This, it said implies that

productivity gains continue to level off as prices recover,

driven by off setting factors of eff iciency gains and pro-

ducers gradually moving out of the core areas.

In the Permian Basin in North America, drilling days con-

tinue to shorten and well estimated ultimate recovery

continues to improve, with many companies quoting

large gains in their third quarter earnings.

The Permian Basin, which is a sedimentary basin largely

contained in the western part of Texas and the south-

eastern part of New Mexico, is a large oil and natural gas

producing area.

Al-Kaabi: Reductions in oil deliveries to customers.

Opec pact to create supply defi cit next half: IEA

Adnoc to cut supplies; Kuwait, Oman to follow

Global oil markets will swing from surplus to deficit in the first half of 2017 as Opec and other producers follow through on an agreement to cut supply, according to the International Energy Agency.Oil stockpiles will decline by about 600,000 bpd in the next six months as curbs by Opec and its partners take eff ect, said the agency, which had previously assumed inventories wouldn’t drop until the end of 2017. Russia, the biggest producer outside Opec to join the deal, will gradually implement the full reduction it promised, according to the IEA, Bloomberg reported. Oil has gained about 17% since the Organization of Petroleum Exporting Countries agreed on

November 30 to trim output for the first time in eight years, an accord expanded on December 10 with the participation of 11 non-members including Russia and Kazakhstan.“Before the agreement among producers, our demand and supply numbers suggested that the market would re-balance by the end of 2017,” the Paris-based agency said in its monthly market report. “If Opec promptly and fully sticks to its production target” and other producers cut as agreed, “the market is likely to move into deficit in the first half of 2017.”The stockpile declines will only occur if Opec reduces supply enough to meet and maintain a target of about 32.7mn bpd, the agency said.

Abu Dhabi National Oil Company (Adnoc) yesterday said it would cut crude supplies by 3%-5% across its three export grades to meet commitments under an Opec deal to curb output.The move is one of the first visible indicators that oil markets could be physically tighter in 2017 as the Organization of the Petroleum Exporting Countries (Opec) and other producers cut production to ease a supply glut and prop up prices.In a notice to term lifters, Adnoc said it would reduce Murban and Upper Zakum crude supplies by 5% and cut Das crude exports by 3%.“In line with Opec’s latest decision to cut production, we regret to advise you that crude oil allocation for the month of

January 2017 will be reduced,” Adnoc said.Kuwait Petroleum Corp (KPC) has also notified at least two customers in Asia it “will implement its share of the reduction, which shall take eff ect January 2017”, refining off icials said. Non-Opec Oman was set to will tell customers yesterday that it plans to cut output by 45,000 bpd and will provide details on the reduction to each customer later, a source said.Adnoc’s supply cuts will mostly hit Asia although they remain within tolerance limits of 5%, as allowed by a contract clause that lets seller or buyer adjust loading volumes based on logistics.Adnoc’s production hit a record 3.1mn bpd in November, according to a Reuters survey.

HE Sheikh Ahmed; HE the QCB Governor Sheikh Abdulla bin Saoud al-Thani and al-Khalifa among other dignitaries at the Al-Fikra Competition awards ceremony. Right: Winners of the competition.

BUSINESS

Gulf Times Wednesday, December 14, 20162

Saudi seen taming huge defi cit with 2017 budget2016 deficit to be much smaller than originally projected; may create room for more spending in 2017; higher oil prices, non-oil revenues steps will help

ReutersRiyadh/Dubai

Saudi Arabia’s 2017 state budg-et is likely to show Riyadh has shrunk a huge defi cit caused

by cheap oil faster than expected, which may let it spend more to bol-ster a shaky economy

This year was one of the most painful for the Saudi economy in decades.

Growth slowed sharply and spec-ulators bet against the Saudi cur-rency as the government fought to curb a defi cit that totalled a record 367bn riyals ($98bn) in 2015.

But when Riyadh reveals next year’s budget in about two weeks, it will claim more progress in control-ling its fi nances than many thought possible 12 months ago, bankers and analysts in touch with Saudi eco-nomic offi cials said.

That may allow it to focus on another key reform plank: Diver-sifying the economy beyond crude exports and fostering private sector growth.

“Next year there will be a much more balanced budget and in-creased focus on creating jobs and development projects that directly help the economy,” a senior Saudi banker told Reuters.

Economist Ihsan Bu Hulaiga forecast the budget would be de-signed to “move out from low eco-nomic growth to higher growth”.

Drastic spending cuts over-seen by King Salman’s son, Deputy Crown Prince Mohammed bin Sal-man, appear to have cut the defi -

cit signifi cantly beyond the 326bn riyals originally planned in the 2016 budget.

Several top Saudi economists predicted on average an actual 2016 defi cit of 240bn riyals.

That would be about 10% of gross domestic product – still unsustain-able in the long term, but down from 15% last year.

Spending cuts in 2016 included emergency orders to ministries to cut the value of contracts, months-long delays in the state’s payment of debts to private sector companies,

and unpopular cuts to state em-ployees’ allowances.

Meanwhile, government depart-ments had been asked to propose cuts to projects aimed at revamp-ing infrastructure and diversify-ing the economy before they even launched, an offi cial source said.

Because the spending cuts have already been so drastic, further falls in the defi cit may have to be slower.

But the government may have created room for itself to loosen the purse strings slightly next year.

The rally in oil prices in response

to last month’s Opec agreement to cut output, with Brent crude now at $55 a barrel compared to an average of $45 this year, should help.

Also, steps introduced this year to boost non-oil revenues, although small compared to the overall budg-et, will be in place for the entire year in 2017.

These include higher municipal and visa fees, and a tax on undevel-oped urban land.

Meanwhile, savings may come from further anticipated cuts to do-mestic energy subsidies.

Saudi Fransi Capital predicted a 20% hike in electricity tariff s and a 40% rise in gasoline prices.

Riyadh, however, might not raise the cost of natural gas feedstock for fi rms, as it did in the 2016 budget, to support the petrochemical indus-try, some analysts said.

Some economists think next year’s budget may be modestly ex-pansionary in nominal terms.

The 2016 budget plan projected spending of 840bn riyals, down from actual spending of 975bn riy-als in 2015.

IranAir hopes to finalise Airbus deal in two weeksReutersBeirut

European planemaker Airbus and IranAir will finalise a deal to buy aircraft in two weeks, the head of Iran’s flag carrier said yesterday, adding Airbus has agreed to arrange financing for the first 17 planes.Uncertainty over financing of the deal and political opposition in the US against Iran have slowed down Tehran’s eff orts to import aircraft following the lifting of nuclear-related sanctions this year.Iran signed a $16.6bn deal for 80 Boeing passenger jets on Sunday and was said to be close to a deal with Airbus, in the biggest package of firm contracts with Western companies since Iran’s 1979 revolution.IranAir chief executive Farhad Parvaresh said he hoped to finalise the deal with Airbus in two weeks.“There are only a few small remaining issues like financing. Airbus has agreed to provide financing for 17 planes,” he was quoted as saying by Tasnim news agency.The first contract is expected to involve some 50-60 jets out of 118 provisionally ordered during a visit to France by Iranian President Hassan Rouhani in January.An Iranian off icial told Reuters in November that IranAir had reached a deal with a foreign leasing company to finance the first 17 jets from Airbus, boosting the prospects of finalising a deal to buy European aircraft.Dubai’s DAE Capital has been closely involved in the talks in coordination with Airbus, according to industry sources, but the leasing company has declined to comment.Parvaresh said IranAir was trying to get first five Airbus planes before March 2017, the end of the financial year.Such a timetable would mean the first new passenger jets reaching Iran ahead of presidential elections in May, widely considered a key objective for pragmatist president Rouhani who has faced hardline opposition to the aircraft deals.Further details meanwhile emerged of Iran’s deal with Boeing, which depends partly on further financing agreements.Parvaresh was quoted by Fars news agency as saying Boeing had agreed to finance the first six planes it sells to Iran.He also said Iran would pay for 15% of the value of the jets from its development fund, with the rest to be financed externally.

3ISLAMIC FINANCEGULF TIMESWednesday, December 14, 2016

New report names standardisation, CSR, corporate governance problem areas of Islamic fi nanceBy Arno MaierbruggerGulf Times Correspondent Bangkok

A new report on the global development of Islamic fi nance released on De-

cember 7 at the World Islamic Banking Conference 2016 held in Bahrain found that overall performance indicators in the industry declined in 2016 com-pared to 2015 due to the slump in oil prices that put a break on the performance of Islamic fi nan-cial institutions, but also ow-ing to self-made problems such as continued lack of regulatory standardisation and subpar cor-porate governance and corpo-rate social responsibility (CSR) levels, particularly in developing nations.

The report, entitled Islamic Finance Development Report 2016 and jointly released by Thomson Reuters’ Islamic fi -nance research team and the Is-lamic Corp for the Development of the Private Sector, a unit of Saudi Arabia-based Islamic De-velopment Bank, examined key statistics, industry performers and trends across fi ve indica-tors that are signifi cant for the development of the $2tn Is-lamic fi nance industry across

124 countries. From the specifi c outcome for each country, the report derived a global devel-opment indicator which it says dropped to 8.8 in 2016 from 9.9 in 2015.

One of the main reasons for the slowing development in the Islamic fi nance industry was the “unprecedented oil price storm,” as Nadim Najjar, man-aging director for Middle East and North Africa at Thomson Reuters, puts it.

According to him, the sharp drop in oil prices lowered the fi nancial performance of banks in countries that have a larger Islamic fi nance sector such as the Gulf Cooperation Council nations and Malaysia, whereby the latter also had to deal with the drastic drop of the value of its currency, the ringgit. While the low oil prices did not nega-tively aff ect the growth of Is-lamic fi nance assets as such, they caused a decline in returns and also resulted in negative eq-uity performances of a variety of listed Islamic fi nancial insti-tutions, and also of Shariah-compliant equities and takaful. Sukuk was the least vulnerable of the asset classes, the report found, but also notes that there were lower issuance volumes in 2015.

Particularly, the reports men-tion corporate governance, ab-sence of standardisation and corporate social responsibility as problem areas for the devel-opment of Islamic fi nance. In many countries opening up to Islamic fi nance, namely in Af-rica, South and Central Asia, there is a lack of a clear and obligatory fi nancial reporting framework for Islamic banks and other fi nancial institutions which results in incomplete or inconclusive fi nancial report-ing. Overall performance keeps being weakened by a lack of standardisation of Islamic fi -

nance regulations. The report points out that there are just 35 countries with at least one type of Islamic fi nance regulation in practice. Lacking international standardisation thus often leads to confusion what kind of Is-lamic fi nance products or trans-actions are Shariah-compliant in which jurisdiction and which are not.

With regards to CSR, the re-

port found that there is a sig-nifi cant lack of CSR transpar-ency at certain Islamic fi nancial institutions which is another reason for a slower sector devel-opment. Too few Islamic banks are actually disclosing their CSR activities, and the total amount of CSR funds disbursed by these institutions remains low and its utilisation opaque.

However, the report also states that other areas are im-proving. Some key jurisdiction in Islamic fi nance, namely Ma-laysia and Pakistan, worked on fi ne-tuning their Shariah gov-ernance framework during 2015, while Nigeria and Morocco keep seeking to centralise their re-spective Shariah board regu-lations. Education in Islamic fi nance, a key enablers for the sector’s development, has made particularly great strides: The number of Islamic fi nance edu-cation institutions grew further and can meanwhile be found in abundance in Malaysia, Indone-sia and Pakistan, whereby in the West, skills training providers and other learning institutions, namely in Luxembourg, Bel-gium and the UK, realised the potential of Islamic fi nance ed-ucation and keep opening more and more training centres and university courses.

For Thomson Reuters’ Najjar, the momentum of the global Is-lamic fi nance industry remains strong.

“We maintain a positive out-look for the industry, projecting Islamic fi nance assets to reach $3.5tn by 2021,“ he says, adding that “Islamic banking remains strong in many countries and its growth is also supported by the continued development and in-troduction of banking and other Islamic fi nance sectors in new countries.”

With regards to particular markets, Malaysia, Bahrain and the UAE continue to dominate the Islamic fi nance develop-ment ranking this year, although Malaysia posted a slight de-cline in its overall performance. Noteworthy emerging countries in Islamic fi nance that have moved up were South Africa, Morocco, Tanzania, Japan and Russia. High potential is seen by the report in established mar-kets in Southeast Asia, as well as in Africa where Islamic fi nance has been discovered by a couple of governments as a new way of fi nancing large infrastruc-ture projects and an alternative source for government revenues that were dwindling in the past in the fallout of dropping global commodity prices.

EDUCATION/FAQ on Interest

May I make interest-based transactions with non-Muslims?The impermissibility of dealing in interest remains even when transacting with non-Muslims or in non-Muslim lands.

Doesn’t the prohibition of riba apply only to lending to the poor who are forced to borrow at high rates?Besides the fact that the prohibition refers to everyone, at a practical level it is impossible to apply a quantitative standard (interest rates) to a qualitative circumstance (poverty). Who determines who is poor? Does one set a poverty line based on zakat eligibility? Will banks be forced to lend to these poor? Will the ‘risky’ poor be charged higher rates than the regular poor? Before long the standards by which money is allocated become identical to conventional interest-based standards. Because there

necessarily can be no quantifiable cut-off between what is an ‘interest rate’ and what is a ‘usurious rate’ further supports the Islamic view that the term riba does not distinguish between interest and usury in the Qur’an.

What is wrong with charging a moderate excess over the principal, as with commercial interest rates, if participants mutually agree that a dollar is worth more today than it is tomorrow?The argument is that because any unit of capital is worth more today than it is tomorrow, providers of capital should be compensated for foregoing the opportunity to use their capital for that time. But the problem with this arrangement is that the borrower of capital is compelled to guarantee (often at a considerable price) the return of this capital, in addition to a fixed premium, while

the lender incurs no risk (in so far as the loan collateral compensates his risk). There is no mutual participation of risk: the lender’s motivation is not the mobility of capital for the sake of investment; the lender’s motivation is the commitment of capital for the sake of preservation. In a risk-oriented investment, the principal (lender) is rewarded for his business acumen; in an interest-based transaction, the lender is rewarded simply for the ownership of capital.May I deal in interest with the intention of giving it away in charity?It is impermissible to deal in interest with the intention of giving the benefit away in charity (the forbidden always takes precedence over the recommended).

What constitutes a direct involvement in interest-based transactions?Unlawfulness depends on how

direct one’s involvement is to the interest dealings. Direct involvement entails that one participates in the actual execution of an unlawful transaction; the one who buys, sells, trades, witnesses, records, calculates, recommends, instructs or in any way directly assists in an interest-based transaction during its execution is culpable (e.g. car buyer who contracts an interest-based lease; homeowner who takes a mortgage; futures and options trader; insurance salesman; loan off icer); if an accountant, for instance, merely records a transaction that has already taken place, the involvement is not considered ‘direct,’ and therefore remains permissible, though it is always superior to avoid the doubtful.

May I sell or assist another in buying a credit card that charges interest?It impermissible to assist in the

purchase of a credit card that charges an interest rate, and off ensive to assist in the purchase of a credit card that only charges an interest rate after a reasonable grace period. In the former case one directly assists in the sin because the interest rate is a direct consequence of owning the credit card, whereas in the latter case one indirectly assists in the sin because the onus of prompt repayment is on the credit card owner.

How can I convert a conventional interest-based sale into one acceptable in Shariah?When a good or service (not cash, gold, silver, securities or similar tradable instruments) is off ered for sale through an interest-based transaction (e.g. car loan, property mortgage, education loan, etc.), it is permissible for the buyer to propose to the vendor the following: That the vendor combine all future principal

and interest payments into one lump-sum amount and divide this new amount into instalments, provided any late payment charges go to a designated charity rather than to the vendor (e.g. a house sells for $150,000 with a 7% interest payment payable in monthly instalments over a 20 year period; the buyer proposes that the bank negotiating the transaction add the $150,000 principal to all future interest payments, and divide the new amount into monthly instalments); it would be permissible to vary the instalments (i.e. flat, increasing or decreasing instalment sizes) provided all the amounts are pre-agreed; such a transaction avoids the riba created by interest payments and penalty charges, allows the seller to sell at any price he chooses, and permits the buyer to pay in instalments.

Source: Ethica Institute of Islamic Finance via Bloomberg

Islamic banks slowly embrace green fi nanceBy Bernardo VizcainoReuters

Islamic banks are gradually embracing socially respon-sible fi nance, from renewable

energy to microfi nance eff orts, helping unlock new funding sources for environmentally-friendly projects, an industry survey shows.

The two sectors have devel-oped separately from each other, but green projects could benefi t from tapping Islamic banks in countries like the UAE and Ma-laysia, where they now hold a quarter of total banking assets.

Around two-thirds of fi nanc-ing in Saudi Arabia follows Is-lamic principles, which forbid investing in gambling, tobacco and alcohol. This resembles the screening methodology used by ethical funds in Western mar-kets.

Commonalities could help converge two fast-growing bond markets: Moody’s Inves-tors Service estimates issuance of Islamic bonds, or sukuk, will reach $70bn this year, compared to over $80bn for green bonds.

Green fi nance is increasingly important for Islamic banks seeking to diff erentiate them-selves from their conventional peers, the Bahrain-based Gener-al Council for Islamic Banks and Financial Institutions (CIBAFI) said in a report. Islamic banks want to improve their contri-

bution to local economies with job creation, infrastructure and SME fi nancing as top priorities, a survey conducted by CIBAFI between May and August shows.

The survey drew input from 86 Islamic fi nance institutions across 29 countries mainly from the Middle East and Southeast Asia, as well as Africa.

Around a third of small Islamic banks cited a moderate exposure to the green and renewable en-ergy sectors, compared to 15.5% for large Islamic banks.

In Malaysia a local lender has introduced green mortgages to facilitate installation of solar systems, while an Islamic bank in Jordan is developing alterna-tives to medium-term loans to fund energy effi cient and renew-able energy projects.

Gulf TimesExclusive

An Emarati stands on a balcony overlooking the Shams 1, Concentrated Solar power (CSP) plant, in Al-Gharibiyah district on the outskirts of Abu Dhabi. Green projects could benefit from tapping Islamic banks in countries like the UAE and Malaysia, where they now hold a quarter of total banking assets.

Gold standard nod seen opening new markets for Islamic finance business

BloombergDubai

Gold is acceptable for the first

time as an investment in Islamic

finance after the group that sets

standards for the industry

adopted Shariah-compliant rules

for trading the metal.

The rules approved last month

allow gold to be used in the

$1.88tn Islamic finance business,

the Accounting and Auditing

Organization for Islamic Financial

Institutions said early this month.

The AAOIFI developed the stand-

ards with help from the producer-

funded World Gold Council, which

has said the new rules could spur

demand for “hundreds of tons”

of gold.

“This is a ground-breaking initia-

tive for Islamic investors and for

the gold industry at large,” Aram

Shishmanian, chief executive

off icer of the World Gold Council,

said in the joint statement. “We

are delighted that there is now

definitive Shariah guidance on the

permissibility of investing in gold.”

Gold joins equities, real estate,

Islamic bonds (sukuk) and takaful

(insurance) as vehicles approved

for Islamic finance, according to

the Bahrain-based AAOIFI. Sukuk

volume slipped 1.4% in 2015

after the Malaysian central bank

terminated its short-term sukuk

issuance programme, the AAOIFI

said.

“The time has come for gold

instruments in Islamic finance,”

Mark Mobius, executive chairman

of Templeton Emerging Markets

Group, said in a December 5 World

Gold Council report accompany-

ing the statement. The report

didn’t say if Templeton plans to

invest in the product.

A customer buys gold at a jewellery shop in Bangkok. Gold joins equities, real estate, Islamic bonds (sukuk) and takaful as vehicles approved for Islamic finance, according to the Bahrain-based AAOIFI.

BUSINESS

Gulf Times Wednesday, December 14, 20164

Emerging market debt default risks in 2017ReutersLondon

From tiny frontier markets to the

world’s No 2 economy, a range of

developing countries could experience

serious stress next year if a strength-

ening dollar and sluggish domestic

economies make it harder to meet

debt repayments.

Emerging governments and com-

panies must repay more than $300bn

next year in hard currency debt,

roughly a third more than 2016 — the

result of a borrowing spree after 2008

when Western interest rates collapsed.

“One consequence of the very loose

global monetary policy we’ve had for

the past decade is that financing was

easily available and went in some cases

to corners of the market that didn’t

really deserve it,” said Graham Stock,

head of EM sovereign research at asset

manager BlueBay.

Meanwhile, the dollar’s five-year

rally, renewed by Donald Trump’s US

election victory, will extend into 2017,

Reuters polls show. Following is a list of

potential pressure points in emerging

markets for 2017, in order of the size of

their economy:

CHINA — Chinese companies owe

some $18tn (about 170% of gross do-

mestic product), with close to $800bn)

maturing in 2017.

Since 2014 Beijing has allowed 85

defaults and domestic ratings firm

Chengxin predicts more in 2017.

Beijing may allow the yuan, already

near 8-1/2-year lows, to fall further to

stop burning through central bank

reserves, which are at the lowest since

2010.

That may prove a problem for com-

panies with hard currency borrowings.

Non-financial firms face $530bn in

external debt repayments in the next

12 months, the Institute for Interna-

tional Finance (IIF) estimates.

“If I had to make a bet for 2017 I

would be much more concerned about

China.(Financial sector deterioration)

is speeding up,” said Francois Savary,

chief investment off icer of Prime Part-

ners in Geneva.”China could be a major

risk for 2017.”

TURKEY: The lira’s slump to record

lows raises fears that companies may

struggle to repay external debt, with

non-financial firms owing $79 bn in the

next 12 months, according to the IIF.

The economy’s first quarterly

contraction since 2009 also pos-

sibly heralds a rise in bad bank loans;

other weaknesses are low reserves

compared with short-term debt and a

current account gap around 5%.

JPMorgan noted that while Turkish

companies had always successfully

rolled over debts, the “dangerously

high” current account deficit meant

“investors will remain alert to the risk

of a sudden stop in capital flows”.

VENEZUELA: The government and

state oil firm PDVSA have resolutely

serviced debt, though PDVSA recently

swapped $2.8bn in bonds and resorted

to a grace period for a coupon on 2035

bonds.

Brokerage Exotix calculates that

about $10bn is due next year in bonds,

loans and interest but expects the

country to muddle through 2017.

However, with food shortages and

triple-digit inflation it is unclear how

long the government can cling to

power. BlueBay’s Stock said he had

cut his overweight position: “We think

we are getting closer to the end of the

road for these payments.”

MOZAMBIQUE: Set to miss a

$60mn coupon due in January on its

$727mn “tuna bond” which it wants

to restructure so it can get a loan deal

with the IMF.

Creditors refuse to negotiate until an

audit reveals how much Mozambique

owes and to whom.

Around $1bn in state-guaranteed

loans is also owed by two state firms,

borrowings that had not been previ-

ously disclosed to bondholders.

REPUBLIC OF CONGO: Delayed

paying coupons on its 2029 dollar

bond in June and last December and

Fitch noted “repeated arrears on other

bilateral commitments”. Republic of

Congo blamed technical problems but

investors want to see if an end-Decem-

ber coupon is on time.

Moody’s has highlighted “liquid-

ity risk” and said raising financing in

future would be “challenging”. Exotix

said the fiscal deficit was approaching

20% of GDP and advised selling the

bond.

MONGOLIA: The resource-rich

country’s economic boom is over,

but $1bn in bonds mature between

March 2017 and January 2018. Hong

Kong-listed Mongolian Mining Corp is

already in default.

Investors hope the cash-strapped

country can win a Chinese bailout; if an

IMF deal is reached, bondholders may

face write-downs.

SURINAME: The economy will con-

tract 9% in 2016, says the IMF, which in

a recent statement criticised the South

American country for backtracking on

reforms required for a $500mn loan.

The IMF noted Suriname had limited

finances to cover essential spending,

including wages and pensions.

That may become a concern for

holders of a $550mn bond, with first

coupons due April 2017.

BELIZE: The central American

country said last month it wanted to

“amend” $530mn in 2038 bonds for its

third restructuring in a decade.

The bonds carry a step-up coupon

that climbs from 5% to 6.767% in 2017.

Glencore to buya bankruptsugar-cane mill to double capacity in Brazil

BloombergSao Paulo

Glencore agreed to buy a bank-rupt sugar-cane mill in Bra-zil’s Sao Paulo state six years

after entering the country’s sugar industry, a move that will double its production capacity.

Creditors and a local court ap-proved Glencore’s 348mn-reais ($104mn) bid for Unialco on Decem-ber 9, said Jose Carlos Alcantara, a consultant employed by the Brazil-ian sugar producer to work on its bankruptcy proceedings.

A spokesman for Baar, Switzer-land-based Glencore declined to comment on the deal, which now just needs regulatory approvals to proceed.

Glencore is one of the world’s largest commodity traders, and the Unialco deal is relatively small, being dwarfed, for example, by the Swiss company’s agreement along with Qatar’s sovereign wealth fund last week to buy a stake in Russian energy company Rosneft PJSC.

However, Unialco will give Glen-core an additional 2.5mn metric tonnes of annual cane-processing capacity at a time when raw-sugar prices are trading close to four-year highs.

And while Glencore will still be a smaller producer in Brazil than Louis Dreyfus Co’s Biosev unit or Bunge, the trader nevertheless outbid rivals such as Raizen, the Brazil’s largest sugar-cane company.

Unialco, which went bankrupt last year with bank debt estimated at 700mn reais, is among scores of Brazilian millers that suff ered from an earlier slump in sugar prices due to an oversupply and lower ethanol demand.

Since 2008, about 120 of the na-tion’s mills, or 30% of the total, have experienced severe fi nancial prob-lems, according to industry group Unica.

Glencore entered Brazil’s sugar-cane industry in Brazil in 2010 when it acquired a tiny mill in Sao Paulo state.

Buying another mill in a court auction is a simpler way to acquire that kind of asset, Alexandre Figli-olino, a partner at consulting fi rm MBAgro, said on Monday by phone interview from Sao Paulo.

“It is a guarantee for investors that they won’t inherit debts, only assets,” he said. “Glencore must in-vest more to recovery Unialco’s cane fi elds, which suff ered with the crisis. But it is a good asset.”

This year, drought in Asia curbed cane production and prices for the raw material jumped as much as 56% in New York.

Peter Grauer, the chairman of Bloomberg, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.

Venezuela’s mysterious stock infl ows leaving traders perplexedBloombergNew York

Foreign investors are putting money into Venezuelan stocks. Let that sink in a moment.

Yes, we’re talking about the same Venezuela with triple-digit infl ation, food shortages and a lack of basic medicines.

Where politics are so divisive that the Vatican is brokering mediation talks while opposition leaders remain in jail.

The country that traders view as

the most likely sovereign to default over the next year. But that didn’t stop someone - the data doesn’t show who - from putting about $50,000 into the Caracas Stock Ex-change between the US presidential election and November 30, according to EPFR Global and the International Institute of Finance.

While that’s a tiny blip during a pe-riod that saw $34bn in equity funds zip around the world, it’s the largest in-fl ow Venezuela has seen in 16 months.

Most traders in Venezuelan stocks are locals desperate to hedge against the bolivar’s record collapse in the

black market, and one of the abiding mysteries of the foreign infl ows is what exchange rate the buyer got.

Offi cially, the bolivar is fi xed at about 10 per dollar, the rate an inves-tor would probably pay to bring money into the market.

But tight foreign-exchange controls mean it’s nearly impossible to pull money out of the country at the same rate, leaving the investor stuck in the black market, where $1 costs 3,981 bo-livars, according to dolartoday.com, a widely-watched website that monitors prices.

It’s hard to imagine how anyone out-

side Venezuela could get profi ts out of the country. “How bizarre,” Anthony Simond, a London-based money man-ager at Aberdeen Asset Management who has followed Venezuela since 2010, said of the infl ows. “Honestly, it’s not something I’ve ever looked at until today. I didn’t even know it was an investable market for foreigners.”

To be sure, Venezuelan stocks are on a tear - at least at the government’s of-fi cial exchange rate.

The devaluation in the black market caused the Caracas Stock Exchange to more than double last month, and it’s up 149% this year to a record. That’s

the best performance among more than 90 equity gauges tracked by Bloomberg worldwide.

Leading those gains is Corimon CA, which bought the local operations of Bridgestone Corp in May. The Cara-cas-based paint company’s stock has surged 2,814% this year while never exceeding 100 trades in a day.

“A few years ago, one would al-ways pay a visit to the stock ex-change during research trips,” said Jan Dehn, the London-based head of research at Ashmore Group, who has covered Venezuela for two decades. “Not anymore.”

China energy major sells 50% stake in its pipeline unitBloombergBeijing

China Petroleum & Chemical Corp is selling a 50% stake in a pipeline unit to investors in-

cluding China Life Insurance Co for 22.8bn yuan ($3.3bn) as it seeks funds to expand its natural gas business.

China Life will pay 20bn yuan for a 43.86% stake in the pipeline, while a division of State Development & In-vestment Corp will get the remaining 6.14% for 2.8bn yuan, the state en-ergy giant, known as Sinopec, said in a statement to the Hong Kong Stock Exchange.

Sinopec, the world’s biggest refi ner and one of China’s big three energy companies, will use the funds to ex-pand the capacity of the unit, Sinopec Sichuan-to-East China Gas Pipeline Co, build gas-storage facilities and push forward its natural gas business, it said in the statement.

“There is a shortage of pipeline capacity and gas storage facilities in China, so the government is encour-aging more investment in those sec-tors,” Tian Miao, a Beijing-based ana-lyst at North Square Blue Oak, said by phone. “This is part of broader eff orts by authorities to diversify investment into cash-intensive infrastructure projects.”

Sinopec shares in Hong Kong closed up 0.9% to HK$5.62 yesterday, com-pared with a 0.1% advance in Hong Kong’s benchmark Hang Seng Index.

President Xi Jinping’s government is seeking to boost the use of natural gas in China’s energy mix and revamp the country’s massive state-owned enter-prises.

The country’s gas demand may rise to as high as 350bn cubic metres by 2020, according to the National En-ergy Administration, up from 193.2bn last year.

Sinopec, along with China’s biggest producer, PetroChina Co, have sold

parts of its extensive pipeline assets since last year to raise capital, cut costs and meet government-set growth tar-gets as lower oil prices have punished earnings.

“This transaction is a positive ex-ample of reform as the industry seeks to improve returns by shedding low returning assets,” Neil Beveridge, a senior analyst at Sanford C Bernstein in Hong Kong, said by e-mail. “With stable cash fl ows and a regulated re-

turn on asset at 8%, pipelines make better assets for insurance companies than oil majors.”

The implied valuation for the Si-nopec pipeline asset represents a price-to-earnings ratio of 20 times, better than the valuation multiples for the spinoff of PetroChina’s three West to East pipelines at a price-to-earnings ratio of 17 times, according to Beveridge.

It may push PetroChina, the coun-

try’s biggest gas producer and import-er, to continue to sell down its pipeline network in China that carries a book value of $56bn, he said.

Sinopec approved the plan to sell as much as half of the pipeline unit in Au-gust. The whole division was estimat-ed to be valued at $6bn, an analyst at China International Capital Corp said at the time.

The Beijing-based company started operating the gas pipeline, which links

eastern China to the Puguang gas fi eld in Sichuan province, in 2010. It can transport as much as 12bn cubic me-ters of the fuel annually.

The 2,229-kilometre (1,385 miles) line, which transmitted 8.3bn cubic metres of natural gas in 2015, links six provinces and two municipalities, in-cluding Shanghai.

The company invested 63bn yuan to build the pipeline, according to the state-controlled daily.

China Petroleum & Chemical Corp storage tanks are seen in Hong Kong. The state energy giant, known as Sinopec, is selling a 50% stake in a pipeline unit to investors including China Life Insurance Co for $3.3bn as it seeks funds to expand its natural gas business.

BUSINESS5Gulf Times

Wednesday, December 14, 2016

Top Indian gas utility pushes Gazprom for LNG price cutBloombergMumbai

India’s biggest gas utility is seeking a price cut and other changes to a 20-year liquefied natural gas supply contract from Gazprom PJSC, the latest in a series of concessions sought by buyers amid a global gas glut.GAIL India is pushing to overhaul the 2.5mn tonne a year contract with the Russian gas giant that starts in 2018, BC Tripathi, chairman of the Indian state-run company, said in an interview in New Delhi.

The company also plans to charter four to five LNG vessels on short-term contract as it prepares to receive US LNG supplies.“It’s not only duration, it’s the price, source of supply, the terms and conditions,” Tripathi said of the supply contract December 6. “There are a host of contractual issues – all these are being re-looked into.”While there are talks on “adapting the contract terms,” the deal signed in 2012 is in place and legally binding, the press service for Gazprom’s export arm said in response to a request seeking comment.

No other details were provided. Its deputy head Alexander Medvedev said in July that Gazprom was in talks on the contract with GAIL and was positive over the result without elaborating.India is seeking to take advantage of the glut that has pushed prices down almost 60% the past three years, by renegotiating long-term contracts. Last year the country’s biggest gas importer, Petronet LNG, reworked a 25-year contract with Qatar’s RasGas Co that resulted in prices dropping by almost half.GAIL is currently buying about 2mn

tonnes a year of LNG on a spot basis, comprising about a fifth of its overall purchases, Tripathi said. The supply contract with Gazprom was signed in 2012.“We are seeing a change in LNG contracting mechanism, with short-term contracts growing and replacing long-term contracts,” India’s Oil Minister Dharmendra Pradhan said December 6.GAIL, which was the first Asian importer of US shale gas, has bought four cargoes in the spot market from Cheniere Energy’s Sabine Pass plant. The company has an agreement to buy

3.5mn tonnes a year for two decades from the Louisiana terminal, with the supplies expected to start in March 2018. It has also booked 2.3mn tonnes a year from the Cove Point LNG liquefaction terminal in Maryland, which is set to commence deliveries in December 2017.Spot LNG in Singapore increased about 16% from a week earlier to $8.55 per million British thermal units on Monday.While US LNG exports are still relatively small, they are having an impact because the contracts are tied to US natural gas prices instead of crude oil

that much of the LNG coming to Asia is linked to. They also allow for switching of cargo destinations - a key concern for importers seeking greater flexibility.GAIL plans to issue a tender for a short-term charter to ferry US shale gas after it scrapped an earlier tender to lease nine carriers, including three to be built in India, on a long-term basis.India wants to turn the global glut of LNG to its favour as it seeks to boost the amount of natural gas in its energy mix to 15% by 2020 from about 6.5% now.“Buyers will continue to have options,” Pradhan said.

Goldman Sachs flips from copper super-bear to super-bullBy Andy HomeLondon

Wall Street heavyweight Goldman Sachs has been banging the bear drum on the copper price since the middle of last year.Its July 2015 research note was titled “Copper — lower for longer”, which pretty much said it all.Copper, which was then trading in London around the $5,500-per tonne level, would fall to $4,500 by the end of 2016 and then stay there for 2017 and 2018 as “the market adjusts to a seven-year bear cycle” running from 2011 to 2018, the bank argued.Things have not worked out that way.“The rally in copper prices over the past two months was in sharp contrast to our more bearish expectations”, it now concedes. With copper currently trading around $5,770 per tonne, Goldman is now calling for prices to rise to $6,200 over the next six months, a major revision from its previous six-month call of $4,800. It may be a little

unfair to single out Goldman Sachs.The entire market has been wrong-footed by copper’s dramatic change in fortune.At the time of the January 2016 Reuters poll of analysts, the median price expectation for 2017 was $5,182 with only one participant, Standard Chartered, positing a more bullish outcome ($6,500) than Goldman’s latest forecast.Then again Goldman is Goldman.And it has a habit of making aggressive market calls, which makes its flip from super-bear to super-bull something of a stand-out.But its reasoning is also a neat summation of the broader flip in consensus among metals analysts.Underlying Goldman analyst Max Layton’s change of mind about copper’s prospects next year is a reassessment of the market’s supply-demand dynamics.Layton is now forecasting a small supply deficit of around 180,000 tonnes in 2017, compared with a previous expectation that the market

would be in a moderate surplus of around 360,000 tonnes. The major part of that more bullish view derives from a recalculation of expected mine supply.Goldman is now expecting mine supply to decline by 0.4% next year compared with a previous forecast for 1.0% growth.It is not alone in rethinking the timing and nature of the much-feared “wall of copper” supply surge.The International Copper Study Group (ICSG) made some major revisions to its forecasts back in October.Compared with its previous forecast in March, the ICSG lifted its assessment of mine supply growth this year to 4.0% from 1.5% but downgraded its 2017 forecast from 2.3% to zero.The “wall of copper”, it seems, arrived earlier than expected, in part due to eff icient ramp-up of new mines and in part due to a low level of disruption in the first half of this year.Next year, by contrast, there are fewer new mines due to come onstream, while, as Goldman notes, the list of potential disruptions from expiring

labour contracts, Zambian power and tax issues and Indonesian export permit problems looks set to grow. On the demand side, meanwhile, Goldman has lifted its usage growth expectation from 1.7% to 2.2%.“Over a very short period of six weeks we have seen data releases pointing to a surge in global industrial activity, most notably in China where the manufacturing (purchasing managers index) jumped to its equal highest level in four years.”The election of Donald Trump brings with it the promise of infrastructure spend and reflation in the United States, but the real driver of stronger-than-expected demand for copper and other industrial metals this year has been China.The metal markets started the year fearing a hard landing for metals-intensive sectors of the Chinese economy but underestimated Beijing’s willingness to pump up its flagging growth rate using the tried-and-tested channel of infrastructure spending.Fixed asset investment has rebounded,

the residential property sector is once again bubbling, in the major Chinese cities at least, and so too are the prices of just about every industrial commodity from steel to copper to zinc.The tail winds of China’s own flip-flop on economic policy are still blowing and can be expected to continue doing so through the early part of 2017.At which stage we get to see in more detail what exactly the Trump administration’s own version of fiscal stimulus looks like.The gorilla in the metals room right now is the elevated level of speculative interest roiling Chinese commodity markets.Make no mistake.Western investors too were starting to reassess metals pricing in light of shifting supply-demand drivers.But the scale and speed of the recent price increases has largely reflected massive allocations of money by Chinese players.To be fair to Goldman, its new copper forecasts are predicated on a reevaluation of fundamental drivers

rather than the “tempting” option of blaming “this surge in speculative interest”. But it is surely right to highlight the risks to any current forecast from “the timing and scale of shifts in net speculative positioning and Chinese asset allocation”. The sheer potential scale of Chinese investment appetite “dwarfs the size of the copper market.”The bank estimates that as much as $600bn of funds may be seeking a new home after being chased out of property and stock markets by the Chinese authorities.“Were just 2.5% of these funds to shift into copper, net speculative length would double from its current level of around $15bn.”And if it did, even Goldman’s above-consensus bull copper call might turn out to be super-conservative.Layton is not the only analyst trying to factor in this new metallic gorilla.

Andy Home is a columnist for Reuters. The views expressed are those of the author.

Malaysia and Singapore to call joint tender on high-speed rail link in 2017ReutersKuala Lumpur

Malaysia and Singapore will call a joint tender to build a high-speed rail sys-tem linking the neighbours in the fi nal

quarter of next year, their prime ministers said yesterday.

Firms from China, Japan, South Korea and Europe are among those to have expressed in-terest in the project, planned to cut travel time between Singapore and the Malaysian capital of Kuala Lumpur to 90 minutes by 2026, versus four hours by road now.

No cost estimates were given, but Malaysian Prime Minister Najib Razak said he did not fore-see problems with fi nancing.

“This is a commercially viable project,” Najib told a news conference, after he and Singapore counterpart Lee Hsien Loong witnessed the signing of a deal to build the rail link.

“In fact, those who want to participate in the project can make available certain fi nancial ar-rangements for us to consider, as part of their package.”

The rail link, announced in February 2013, was initially expected to be operational by 2020, but the neighbours have cited complexities for the delay.

Singapore was briefl y part of Malaysia follow-ing British colonial rule, but separated acrimo-niously in 1965, clouding diplomatic and eco-nomic dealings for decades.

Ties have improved in recent years, despite investigations by Singapore’s fi nancial authori-ties into a multi-billion dollar scandal at Malay-sian state fund 1Malaysia Development Berhad (1MDB).

Tuesday’s deal will see the appointment of a privately-fi nanced asset management compa-ny to provide, and maintain, the trains and rail systems, while two other companies will handle service operations.

Construction of the 350-km rail link is ex-pected to start in 2018, a year after the tender is called. Malaysia and Singapore will build the infrastructure and operate the stations within their own territories.

China is expected to have an advantage among prospective bidders, after Beijing invested heavily in several large Malaysian government projects, including a 55bn ringgit ($12bn) East Coast Rail Line.

Ties between Malaysia and China reached an all-time high after a Chinese state-owned fi rm put in a generous bid to take over 1MDB’s power assets in 2015, helping to ease mounting debts.

But the speculation that China holds an ad-vantage over other bidders in the competition for the rail line project was dismissed by Moha-mad Azharuddin Mat Sah, the chief executive of Malaysia’s Land Public Transport Commission.

“Together with Singapore, we’re looking at various parameters, not just costing but also re-liability, sustainability, safety and value,” he told a news briefi ng last week.

China posts its strongest retail sales growth in NovReutersBeijing

China posted its strongest re-tail sales growth of the year in November, while surging

steel production lifted factory out-put, but private investment began to slow again, leaving the economy more reliant on state spending and mounting debt.

After a rocky start to the year, China’s economy has performed better than expected and looks set to hit Beijing’s 6.5 to 7% growth tar-get as higher government spending and a sizzling housing market fuel a construction boom.

The pickup in China’s manufac-turing sector has helped spur a re-bound in global prices of industrial commodities and other goods, add-ing a welcome refl ationary pulse that is slowly being felt around the world.

But one of the Chinese economy’s key growth drivers this year — hous-ing — is showing increasing signs of fatigue.

Growth in home sales slowed to the lowest rate in a year in November as more cities tried to cool red-hot prices, while the pace of new prop-erty investment also fell from recent highs.

New construction starts rose just 3.3% on-year after climbing 20% in October.

“(The housing market) will con-tinue to cool, and fall to negative growth next year,” said Zhao Yang, chief China economist at Nomura in Hong Kong.

“If the government doesn’t ramp up infrastructure spending, the ex-pected decline in property will cer-tainly drag on growth.”

Property sales growth slid in No-vember to 7.9% from a year ago, its lowest since November 2015, and well short of October’s 26.4% in-crease.

While overall growth in fi xed-as-set investment held steady at 8.3% in the fi rst 11 months of the year, the gap between state and private spending highlighted persistent im-balances in the economy.

Investment by private fi rms slowed in November, reversing a re-cent recovery from record lows.

That is putting more pressure on state fi rms to pick up the slack and raising fears that this year’s eco-nomic momentum will not be sus-tainable.

Growth of private investment fell to 4.93% on-year in November from

5.9% in October, according to a Reu-ters calculation, suggesting private fi rms continue to struggle even as the broader economy gets back on steadier footing.

Indeed, state fi rms maintained strong spending, boosting invest-ment by 20.2% in Jan-Nov, though the pace slowed slightly from Jan-October.

Government spending picked up 12.2% in November after falling in October, China’s Ministry of Fi-nance said yesterday.

In order to meet growth targets, China may increase its budget defi -cit ratio to 3.5% next year, from a 3% target this year, a senior offi cial at a government think tank said yester-day, to accommodate a further rise in government spending.

Top leaders are due to map out

their economic and reform agenda for 2017 during an annual Central Economic Work Conference later this month.

Growing debt and property risks have touched off an inter-nal debate about whether China should tolerate slower growth in 2017 to allow more room for pain-ful reforms aimed at reducing in-dustrial overcapacity and indebt-edness.

China’s factory output grew slightly faster than expected in No-vember, with steel output rising the fastest in two years and carmakers cranking up production.

Retail sales climbed 10.8%, the fastest pace since December 2015 and beating expectations for a 10.1% rise, buoyed by gains in auto sales, home appliances and cosmetics.

Auto sales in China surged for a sixth consecutive month in No-vember, an industry association said on Monday, as consumers rushed to buy cars amid uncer-tainty over whether a tax incentive will be extended beyond the end of the year.

Big luxury brands also reported an improvement in China sales this year after a three-year down-turn as Chinese shoppers are spending on luxury goods at home again.

Burberry, Gucci-owner Kering, and Tiff any have all reported an up-tick in their China earnings,

Part of that is due to the falling value of the yuan, which diminish-es the appeal of spending abroad and encourages more domestic spending, said Wang Jianhui, an

economist with Capital Securities in Beijing. The yuan has slid to more than 8-year lows against the dollar so far this year.

Other November data showed China’s imports grew at the fastest pace in more than two years in No-vember, led by commodities from coal to iron ore and copper, while exports also rose unexpectedly, re-fl ecting a pick-up in both domestic and global demand.

However, China’s trade outlook is being clouded by increasing fears of protectionism as US President-elect Donald Trump prepares to take offi ce.

Trump has threatened to label China a currency manipulator on his fi rst day in offi ce in January, and has threatened to impose huge tariff s on imports of Chinese goods.

A textile worker at a factory in Huaxian County, in China’s northern Henan Province. China’s industrial output and retail sales growth both accelerated in November, government data showed yesterday, in a sign of stabilisation for the world’s second-largest economy.

BUSINESS

Gulf Times Wednesday, December 14, 20166

China data and pausein US yields lift EMsReutersLondon

A pause in the rally in US bond

yields ahead of December’s

Federal Reserve meeting and

stronger-than-expected Chinese

data lifted emerging market equi-

ties yesterday, although Russian

assets eased off the highs hit

earlier this week.

US Treasury yields hit a two-

year high on Monday, spiking on

expectations that president-elect

Donald Trump will pursue expan-

sionary fiscal policies that will

drive growth and inflation.

This steepening of the US yield

curve has created headwinds

for emerging market assets, but

selloff has paused before the Fed

starts its two-day meeting that

will almost certainly raise interest

rates by 0.25% — its first increase

in 2016

This allowed the benchmark

emerging stocks index to rise

0.3%, with strong gains in emerg-

ing Europe and selective Asian

markets.

Some of the equity outperform-

ers included Poland, up around

1%, Turkey, up 0.7% to one-month

highs and South Korea, up 0.4% to

one-and-half-month highs.

“Emerging market stocks

are taking some comfort in the

fact that the selloff in US bond

markets that caused yields to rise

quite significantly — normally a

negative for emerging markets

— is showing signs of stabilisa-

tion ahead of the Fed meeting,”

said Jakob Christensen, head of

emerging markets research at

Danske Bank.

But Christensen said markets

wanted to see what the Fed makes

of Trump’s planned stimulus

and higher commodity prices,

especially after oil’s surge to

18-month highs following Opec’s

deal with some other producers to

cut output.

“It’s very important to see

what the Fed communicates, and

whether they are more hawkish

in that light,” he said, noting that

the market had priced in two hikes

next year. The yield premium paid

by emerging sovereign dollar

debt over US Treasuries on the

JPMorgan EMBI Global Diversified

index was one basis point wider at

346 basis points (bps), but close

to one-month lows of 343 bps hit

on Friday.

Investor sentiment towards

emerging markets was also

boosted by better-than-expected

Chinese factory output and retail

sales data for November.

Chinese mainland shares ended

up a touch, struggling off a one-

month low hit on Monday.

The yuan also firmed against

the dollar after the central bank

set the midpoint rate firmer than

the previous fix.

But other currencies failed to

make headway with the Russian

rouble slipping slightly against

the dollar after leaping 2.4% on

Monday to its strongest in over

a year.

The rouble has been supported

by the oil rebound, which has also

helped Moscow shares to record

highs.

Russian stocks were down 0.4%

on Monday.

The rouble has now over-

taken the Brazilian real as the best

emerging currency performer of

2016 and is widely expected to

appreciate further.

“The rouble remains an at-

tractive currency...due to the

prospect of relatively stable oil

prices, a high interest rate dif-

ferential, improvement in eco-

nomic activity and stability in

domestic politics at a time when

Europe faces major political risk

events in 2017,” Rabobank told

clients.

The Kazakhstan tenge was also

down 0.4% and the South African

rand slipped 0.2%.

The Romanian leu weakened

0.3% against the euro but Bucha-

rest stocks rose 0.4%, following a

victory for the leftist Social Demo-

crats in a parliamentary election.

The Azerbaijan manat was 0.1%

weaker, not far off record lows,

after the central bank unveiled

plans on Monday to fully float the

currency in 2017.

Asia bourses mostly fallAFPHong Kong

Asian markets mostly fell yesterday as attention turns to this week’s much-anticipated Federal Reserve meeting, while analysts said the recent Trump-fuelled rally may have been overblown.Global stocks have surged since Donald Trump was elected US president as investors bet his plans for huge infrastructure spending and tax cuts will kick start the world’s top economy.However, with the Fed meeting looming trading floors have quietened, waiting to see if the central bank provides any forward guidance on its plans for 2017 after an expected interest rate hike.“With a rate hike at this week’s (meeting) fully priced and given the strong rally in the dollar, we are likely seeing some paring of positions heading into the rate decision,” Khoon Goh, head of regional research at Australia & New Zealand Banking Group in Singapore, told Bloomberg News.“Market participants are also reassessing whether the Trump rally has gotten a bit ahead of itself.”Hong Kong edged up 0.1% and Shanghai also ended 0.1% higher, with gains limited despite a better-than-expected read on Chinese factory output and retail sales.“The figures are good but the market sentiment remains cautious after a big drop yesterday,” Linus Yip, a Hong Kong-based strategist at First Shanghai Securities, said.Shanghai sank 2.5% on Monday.Seoul put on 0.4% but Sydney lost 0.3% while Singapore, Wellington and

Manila were also all down. The anaemic performance came despite a record close for the Dow on Wall Street.However, Tokyo chalked up another gain, adding 0.5% to close at its highest level since mid-December 2015.On foreign exchanges the dollar edged back against most high-yielding currencies having tapped multi-month highs against most over the past few weeks.The Australian dollar, South Korea’s won and Indonesia’s rupiah were up around 0.2%.The oil-dependent Malaysian ringgit was flat after surging more than two % in early trade following Monday’s jump in crude prices after the weekend agreement by non-Opec members to slash output.Crude prices edged down in Asian trade on Tuesday and Jeff rey Halley, senior market analyst at OANDA, said it would likely struggle to break further up after Monday’s more than 2% gains.“Oil speculators will need a continual stream of good news to maintain oil’s rally at these levels, as they run into a solid wall of producer hedging (selling) in the futures market,” he said.“With US shale dusting off more rigs by the day, at these levels, expect this producer hedging to increase as oil grinds higher.”In early European trade London edged up 0.2% and Frankfurt gained 0.1% but Paris dipped 0.2%.In Tokyo, the Nikkei 225 up 0.5% to 19,250.52 points; Hong Kong — Hang Seng up 0.1% to 22,446.70 points and Shanghai — Composite up 0.1% tot 3,155.04 points at the close yesterday.

Sensex climbs; rupee weakens to 67.54AgenciesMumbai

Indian market yesterday shrugged off a widely expected US inter-est rate hike as the benchmark

Sensex bounced 183 points to close at 26,698, with auto, IT, oil and gas shares keeping up the momentum. At the close, Nifty retook the key 8,200-mark, driven by gains in RIL and ONGC stocks. Consumer price index-based retail infl ation is sched-uled for release yesterday.

Buying picked up after Asian stocks recovered from early bouts of weakness to end higher ahead of the start of a two-day US Federal Reserve meeting.

After a positive start, the Sensex hit a low of 26,494.23 as inves-tors locked in gains. It surged to a high of 26,724.97 before settling at 26,697.82, up 182.58 points or 0.69%. The gauge had lost 231.94 points in the previous session. The 50-share NSE Nifty closed higher by 51 points, or 0.62%, at 8,221.80.

Intra-day, it hovered between 8,228.85 and 8,155.80. From Sensex and Nifty constituents, Tata Motors emerged as the top gainer by rising as much as 3.48% to close at Rs470.35 on the BSE on talks of block deals in the counter at an up to 10% premium to Monday’s close.

Other prominent gainers included Adani Ports, Axis Bank, Wipro, RIL, L&T and Sun Pharma. In line with the broader trend, shares of state-run oil

marketing companies such as BPCL, HPCL and IOC staged a comeback to close higher by up to 2.53% after Monday’s steep fall due to a jump in global crude.

Sector wise, BSE auto index climbed the most by rising 0.98%, followed by IT (0.85 %) and oil and gas (0.81%).

The broader markets, however, suffered as investors booked profit by liquidating their bets. The BSE mid-cap index fell 0.43% while

mid-cap shed 0.07 %. Back home, of the 30-share Sensex, 21 scrips ended higher. However, GAIL fell by 1.34% followed by Tata Steel 0.79%, Lupin 0.71% and Hindustan Unilev-er 0.41%.

Meanwhile the rupee closed weak-er against the US dollar ahead of the two-day US Federal Reserve meeting. Traders are also cautious ahead of key domestic macroeconomic data.

The rupee closed at 67.54 per US dollar — down 0.18% from its Fri-

day’s close of 67.42. The home cur-rency opened at 67.48 against the US dollar. So far this year, it has fallen 2%.

The benchmark 10-year govern-ment bond yield closed at 6.419%, compared to Friday’s close of 6.441%. Bond yields and prices move in oppo-site directions.

So far this year, foreign insti-tutional investors have bought $4.23bn in equities and sold $6.3bn in debt.

Asian currencies closed mixed as traders are focused on the impact of People’s Bank of China monetary tightening and a widely expected fed rate hike and also its outlook for the 2017 rate hike path which will end today.

Taiwan dollar was down 0.22%, Philippines peso 0.18%, South Ko-rean won 0.12%, China renminbi 0.06%, Indonesian rupiah 0.05%. However, Japanese yen was down 0.36%, Malaysian ringgit 0.27%, Singapore dollar 0.25%, China Off -shore 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.12 — up 0.09% from its previous close of 101.03.

Crude oil prices shot to their high-est levels since mid-2015 on Monday after Organisation of the Petroleum Exporting Countries (Opec) and oth-er producers reached their fi rst deal since 2001 to jointly reduce output in order to curb the supply glut and drive the market higher.

The Bombay Stock Exchange building is seen in Mumbai. The Sensex closed up 182.58 points to 26,697.82 yesterday.

Hong Kong’s money market squeeze sends sell signal on stocksBloombergHong Kong

As pressure in Hong Kong’s money market builds, the risks to the city’s equities and currency are

mounting.Funding costs surged for an 11th day

yesterday to a 2009 high as the Federal Reserve prepares to tighten monetary policy, making it more expensive to bor-row to buy stocks.

With the squeeze starting to spill over into other markets, Australia & New Zea-land Banking Group’s Raymond Yeung says it’s signalling concern about a cash exodus.

“Higher US bond yields will cause outflows from emerging markets and Hong Kong,” said Yeung, chief great-er China economist at ANZ in Hong Kong. “The influx of investment flows from the mainland into Hong Kong motivated by currency hedging can offset some pressure. Yet, the inter-bank market has started to price in po-tential outflows.”

Investors still seem relatively sanguine about the situation. Implied volatility

in stocks is near a 20-month low, home prices are once again headed toward record highs, and the exchange rate is holding near the strong end of its band against the greenback.

While higher borrowing costs are, in isolation, a support for Hong Kong’s dol-lar, previous bouts of outfl ows have led to currency depreciation along with a jump in rates.

In January, the Hong Kong dollar plunged to an eight-year low as fears of yuan devaluation roiled global markets. Goldman Sachs Group predicted in a note yesterday that Hong Kong’s ex-change rate will fall to the weak end of its 7.75 to 7.85 band while local rates will catch up with US levels after the next rate hike by Fed, which is widely expected to occur this week.

Hong Kong’s dollar fell as much as 0.06% on Friday, the most since July, to 7.7599 per US dollar after the greenback jumped.

The city’s government bonds slid yesterday, with the 10-year yield jump-ing 17 basis points to 1.74%, the highest for benchmark notes of that tenor since January. Points on Hong Kong dollar forwards turned positive on Monday as

they surged to 10-month high, signaling expectations for local rates to exceed US dollar levels.

Hong Kong’s three-month interbank rate, or Hibor, rose four basis points to 0.87% yesterday. The move nar-rowed Hibor’s gap with Libor, the US equivalent, to nine basis points; just two months ago, the spread was thrice that and the widest since 2010.

Higher Hong Kong rates will help to discourage outfl ows and thus stabi-lise the local dollar, said Marvin Chen, an analyst at JPMorgan Chase & Co in Hong Kong.

“Even with two expected US rate hikes next year, the rate gap with Hong Kong won’t be wide enough to spur sig-nifi cant outfl ows,” said Thomas Shik, acting chief economist at Hang Seng Bank. Investors also like Hong Kong be-cause of its currency peg with the strong greenback and Asia’s higher growth po-tential, he added.

There are money-market concerns on both sides of the Hong Kong-mainland border.

The Shanghai Composite Index re-treated the most in six months on Mon-day as concern about dwindling liquidity

was exacerbated by a regulatory crack-down to insurers’ stock investments and Donald Trump’s remarks about the US-China trade relationship. Hong Kong’s Hang Seng Index eked out a slight gain yesterday, after closing at a three-week low on Monday.

Hong Kong’s fi nancial secretary John Tsang resigned from his position on Monday, spurring speculation he’d run for the city’s top leadership post next year. Chief Executive Leung Chun-ying said last week he wouldn’t seek a second term.

Currency weakness, along with con-cern mainland assets are overpriced, has driven Chinese investors to put their cash in Hong Kong equities and homes. China is now stepping up restrictions on outfl ows to defend the yuan, includ-ing tightening curbs on its citizens buy-ing insurance in Hong Kong. The city has also raised its stamp duty to rein in its world- topping home prices.

“Infl ows from China may slow because of recent measures,” said Steven Leung, Hong Kong-based executive director at UOB Kay Hian. “Hong Kong hasn’t seen outfl ow pressure, but next year it will be more obvious.”

People walk outside the Hong Kong Stock Exchange building. The Hang Seng Index eked out a slight gain yesterday, after closing at a three-week low on Monday.

Zad Holding CoWidam Food CoVodafone Qatar

United Development CoSalam International Investme

Qatar & Oman Investment CoQatar Navigation

Qatar National Cement CoQatar National Bank

Qatar Islamic InsuranceQatar Industrial Manufactur

Qatar International IslamicQatari Investors Group

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

Qatar Fuel QscQatar First Bank

Qatar Electricity & Water CoQatar Cinema & Film Distrib

Qatar Insurance CoOoredoo Qsc

National LeasingMazaya Qatar Real Estate Dev

Mesaieed Petrochemical HoldiAl Meera Consumer Goods Co

Medicare GroupMannai Corporation Qsc

Masraf Al RayanAl Khalij Commercial Bank

Industries QatarIslamic Holding Group

Gulf Warehousing CompanyGulf International Services

Ezdan Holding GroupDoha Insurance Co

Doha Bank QscDlala Holding

Commercial Bank QscBarwa Real Estate Co

Al Khaleej Takaful GroupAamal Co

80.50

65.00

9.62

19.88

11.05

10.01

89.50

84.00

159.80

50.10

44.00

61.80

55.20

102.90

23.55

47.25

10.19

143.50

10.04

230.00

25.15

87.50

99.00

15.40

14.24

16.16

174.20

65.80

76.80

35.65

17.20

114.80

61.60

53.90

31.65

16.13

18.70

35.10

20.61

33.45

32.25

20.49

13.99

0.00

0.00

-0.41

-0.35

0.45

-0.40

0.67

0.60

2.44

0.20

1.38

0.16

-1.25

-0.77

0.30

0.00

2.21

-0.28

2.55

1.32

0.00

1.04

1.96

0.06

-1.79

-2.06

0.00

-0.90

-1.16

-1.11

0.00

0.70

-1.44

-0.19

-1.71

0.69

0.00

1.01

-1.81

1.83

-0.15

1.19

0.79

200

17,999

1,158,184

529,193

84,791

12,001

47,601

35,800

190,257

5,235

38,949

142,992

380,980

465,364

201,274

-

53,768

4,953

1,742,085

72,881

-

26,189

44,779

126,617

2,082,455

260,057

5,821

9,216

50,370

591,578

39,720

169,157

55,008

28,778

371,552

674,480

3,260

261,750

28,965

462,874

340,334

75,367

197,496

QATAR

Company Name Lt Price % Chg Volume

United Wire Factories CompanEtihad Etisalat Co

Dar Al Arkan Real Estate DevSaudi Hollandi Bank

Rabigh Refining And PetrocheBanque Saudi Fransi

Saudi Enaya Cooperative InsuMediterranean & Gulf Insuran

Saudi British BankMohammad Al Mojil Group Co

Red Sea Housing Services CoTakween Advanced Industries

Sabb TakafulSaudi Arabian Fertilizer Co

National GypsumSaudi Ceramic Co

National Gas & IndustrializaSaudi Pharmaceutical Industr

ThimarNational Industrialization C

Saudi Transport And InvestmeSaudi Electricity Co

Saudi Arabia Refineries CoArriyadh Development Company

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

Saudi Vitrified Clay Pipe CoJarir Marketing Co

Arab National BankYanbu National Petrochemical

Arabian CementMiddle East Specialized Cabl

Al Khaleej Training And EducAl Sagr Co-Operative Insuran

Trade Union Cooperative InsuArabia Insurance Cooperative

Saudi Chemical CompanyFawaz Abdulaziz Alhokair & C

Bupa Arabia For CooperativeWafa Insurance

Jabal Omar Development CoSaudi Basic Industries Corp

Saudi Kayan Petrochemical CoEtihad Atheeb Telecommunicat

Co For Cooperative InsuranceNational Petrochemical Co

Gulf Union Cooperative InsurGulf General Cooperative Ins

Basic Chemical IndustriesSaudi Steel Pipe Co

Buruj Cooperative InsuranceMouwasat Medical Services Co

Southern Province Cement CoMaadaniyah

Yamama Cement CoJazan Development Co

Zamil Industrial InvestmentAlujain Corporation (Alco)

Tabuk Agricultural DevelopmeUnited Co-Operative Assuranc

Qassim Cement/TheSaudi Advanced Industries

Kingdom Holding CoSaudi Arabian Amiantit Co

Al Jouf Agriculture DevelopmSaudi Industrial Development

Bishah AgricultureRiyad Bank

The National Agriculture DevHalwani Bros Co

Arabian Pipes CoEastern Province Cement Co

Al Qassim Agricultural CoFiling & Packing Materials M

Saudi Cable CoTihama Advertising & Public

Saudi Investment Bank/TheAstra Industrial Group

Saudi Public Transport CoTaiba Holding Co

Saudi Industrial Export CoSaudi Real Estate Co

Saudia Dairy & Foodstuff CoNational Shipping Co Of/The

Methanol Chemicals CoAce Arabia Cooperative Insur

Mobile Telecommunications CoSaudi Arabian Coop Ins Co

Axa Cooperative InsuranceAlsorayai Group

Weqaya For Takaful InsuranceBank Albilad

Al-Hassan G.I. Shaker CoWataniya Insurance Co

Abdullah Al Othaim MarketsHail Cement

24.32

24.65

6.00

0.00

12.02

26.62

15.28

25.00

24.35

12.55

29.26

13.38

26.79

75.75

12.75

33.31

31.47

36.57

33.87

17.24

52.56

19.61

39.01

21.78

13.50

31.64

40.70

70.00

117.66

21.53

50.07

47.60

8.02

19.13

35.30

14.66

10.78

39.84

36.06

129.76

15.54

74.99

94.64

8.95

3.20

111.89

19.45

10.74

14.67

25.56

17.35

20.57

148.00

79.50

23.62

22.09

10.55

28.40

19.90

11.49

12.45

67.25

12.08

12.31

7.92

34.52

10.45

69.75

11.30

24.00

61.50

17.14

33.50

9.59

34.84

6.00

25.67

14.74

16.46

14.25

38.40

34.89

24.56

124.50

41.59

7.25

41.93

8.22

16.90

14.80

10.01

19.39

19.99

16.13

24.39

92.55

12.00

-2.64

0.00

-1.15

0.00

-1.48

-0.67

-3.05

-2.65

0.41

0.00

-4.13

-2.90

2.10

-1.76

-1.85

-2.17

0.16

-0.19

0.53

-0.06

-1.63

0.31

-3.51

-1.49

0.00

-3.92

0.10

-1.19

-2.11

-0.83

-1.96

-2.64

-1.35

-3.29

-0.79

-1.28

-1.10

-2.88

-4.53

-3.82

-1.65

-0.04

-0.91

-1.43

0.00

-1.42

-1.67

-2.63

-2.00

-1.69

-2.03

-0.63

0.00

-2.00

-2.88

-2.30

-1.95

-1.39

-5.24

-1.71

-1.11

0.73

1.60

-3.15

-2.46

-2.21

-1.79

0.00

-0.35

-0.04

-0.69

-1.49

0.30

-0.10

-2.13

-3.07

0.00

-0.34

-3.29

-1.72

-1.54

-1.77

-1.41

-1.14

-1.33

-1.23

0.91

-1.44

-2.03

-1.92

-2.05

0.00

-0.89

-3.12

-1.01

-1.76

-1.64

137,612

719,215

79,668,411

-

3,414,886

547,304

614,956

1,589,068

298,639

-

869,581

3,161,711

2,301,264

128,462

554,711

219,139

386,865

140,525

2,851,778

720,914

783,089

1,481,885

803,170

513,492

-

783,550

429,174

37,752

140,643

758,155

306,396

157,739

2,394,670

413,929

505,121

815,479

1,049,379

378,065

883,084

89,834

2,183,120

5,805,346

2,432,953

10,004,080

1,171,549

166,576

168,242

1,083,887

656,794

747,146

152,006

439,513

174,727

146,967

799,870

829,588

2,332,410

161,256

2,569,016

2,363,264

820,290

171,997

6,511,234

349,437

727,452

163,125

1,565,261

-

730,986

474,670

40,799

474,516

241,771

5,199,065

363,188

1,735,850

-

136,457

464,771

2,474,819

28,362

569,755

309,002

76,250

1,058,231

2,818,975

221,804

2,328,354

873,606

742,509

860,381

-

623,949

1,430,385

466,684

58,472

535,517

SAUDI ARABIA

Company Name Lt Price % Chg Volume

Saudi Re For Cooperative ReiSolidarity Saudi Takaful Co

Amana Cooperative InsuranceAlabdullatif Industrial Inv

Saudi Printing & Packaging CSanad Cooperative Insurance

Saudi Paper Manufacturing CoAlinma Bank

Almarai CoFalcom Saudi Equity Etf

United International TranspoHsbc Amanah Saudi 20 Etf

Saudi International PetrocheFalcom Petrochemical Etf

Saudi United Cooperative InsBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath Cooperative & ReinsurAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ ShamsSahara Petrochemical Co

Herfy Food Services Co

6.04

8.38

8.51

14.72

18.18

15.23

10.04

14.62

67.00

27.70

34.80

26.60

16.31

26.20

19.73

13.90

63.47

23.15

24.86

14.18

8.74

17.41

29.63

38.45

22.75

13.03

32.04

13.71

84.94

-2.74

-1.06

3.40

-3.60

-1.99

0.00

-1.76

0.07

-0.07

-1.77

-0.06

0.00

-3.89

0.00

-0.45

0.94

0.73

-0.04

-2.55

-1.32

6.20

-1.86

1.40

-0.65

-3.44

-1.06

-0.87

-1.30

-1.60

1,755,307

2,316,834

6,752,227

627,037

1,186,383

-

3,323,568

12,809,771

272,793

189,138

234,209

4

1,091,234

100

568,408

3,491,249

2,390,437

891,161

370,821

419,971

9,179,614

1,296,535

431,831

651,770

784,812

988,478

926,187

3,176,549

30,375

SAUDI ARABIA

Company Name Lt Price % Chg Volume

Securities Group CoSultan Center Food Products

Kuwait Foundry Co SakKuwait Financial Centre Sak

Ajial Real Estate EntmtGulf Glass Manuf Co -Kscc

Kuwait Finance & InvestmentNational Industries Co Ksc

Kuwait Real Estate Holding CSecurities House/The

Boubyan Petrochemicals CoAl Ahli Bank Of Kuwait

Ahli United Bank (Almutahed)National Bank Of Kuwait

Commercial Bank Of KuwaitKuwait International Bank

Gulf BankAl-Massaleh Real Estate Co

Al Arabiya Real Estate CoKuwait Remal Real Estate Co

Alkout Industrial Projects CA’ayan Real Estate Co Sak

Investors Holding Group Co.KAl-Mazaya Holding Co

Al-Madar Finance & Invt CoGulf Petroleum Investment

Mabanee Co SakcCity Group

Inovest Co BscKuwait Gypsum Manufacturing

Al-Deera Holding CoAlshamel International Hold

Mena Real Estate CoNational Slaughter House

Amar Finance & Leasing CoUnited Projects For Aviation

National Consumer Holding CoAmwal International Investme

Jeeran HoldingsEquipment Holding Co K.S.C.C

Nafais HoldingSafwan Trading & Contracting

Arkan Al Kuwait Real EstateGfh Financial Group Bsc

Energy House Holding Co KscpKuwait Slaughter House Co

Kuwait Co For Process PlantAl Maidan Dental Clinic Co K

National Ranges CompanyAl-Themar Real International

Al-Ahleia Insurance Co SakpWethaq Takaful Insurance Co

Salbookh Trading Co KscpAqar Real Estate Investments

Hayat CommunicationsKuwait Packing Materials Mfg

Soor Fuel Marketing Co KscAlargan International RealBurgan Co For Well Drilling

Kuwait Resorts Co KsccOula Fuel Marketing Co

Palms Agro Production CoIkarus Petroleum Industries

Mubarrad Transport CoAl Mowasat Health Care Co

Shuaiba Industrial CoHits Telecom Holding

First Takaful Insurance CoKuwaiti Syrian Holding Co

National Cleaning CompanyEyas For High & Technical EdUnited Real Estate Company

AgilityKuwait & Middle East Fin Inv

Fujairah Cement IndustriesLivestock Transport & Tradng

International Resorts CoNational Industries Grp Hold

Marine Services Co KscWarba Insurance Co

Kuwait United Poultry CoFirst Dubai Real Estate Deve

Al Arabi Group Holding CoKuwait Hotels Sak

Mobile Telecommunications CoAl Safat Real Estate Co

Tamdeen Real Estate Co KscAl Mudon Intl Real Estate Co

Kuwait Cement Co KscSharjah Cement & Indus Devel

Kuwait Portland Cement CoEducational Holding Group

Bahrain Kuwait InsuranceAsiya Capital Investments Co

Kuwait Investment CoBurgan Bank

Kuwait Projects Co HoldingsAl Madina For Finance And In

Kuwait Insurance CoAl Masaken Intl Real Estate

Intl Financial AdvisorsFirst Investment Co Kscc

Al Mal Investment CompanyBayan Investment Co Kscc

Egypt Kuwait Holding Co SaeCoast Investment Development

Privatization Holding CompanKuwait Medical Services Co

Injazzat Real State CompanyKuwait Cable Vision Sak

Sanam Real Estate Co KsccIthmaar Bank Bsc

Aviation Lease And Finance CArzan Financial Group For Fi

Ajwan Gulf Real Estate CoKuwait Business Town Real Es

Future Kid Entertainment AndSpecialities Group Holding C

Abyaar Real Eastate DevelopmDar Al Thuraya Real Estate C

Al-Dar National Real EstateKgl Logistics Company Kscc

Combined Group ContractingZima Holding Co Ksc

Qurain Holding Co

85.00

60.00

178.00

83.00

200.00

305.00

34.50

206.00

25.00

42.00

480.00

300.00

400.00

660.00

415.00

206.00

236.00

39.50

28.50

54.00

640.00

64.00

24.50

114.00

0.00

40.00

840.00

0.00

75.00

95.00

32.00

0.00

21.50

0.00

54.00

660.00

0.00

21.50

53.00

45.00

206.00

385.00

86.00

160.00

44.50

136.00

168.00

0.00

28.50

0.00

430.00

31.00

58.00

69.00

47.50

0.00

114.00

170.00

102.00

76.00

114.00

95.00

38.50

57.00

230.00

290.00

42.00

49.50

28.00

43.50

0.00

98.00

630.00

23.50

80.00

236.00

28.00

126.00

65.00

100.00

192.00

60.00

58.00

265.00

435.00

0.00

470.00

36.50

420.00

80.00

920.00

202.00

0.00

32.00

81.00

300.00

510.00

41.50

246.00

59.00

32.50

45.50

20.50

34.00

170.00

38.50

45.00

0.00

75.00

0.00

31.50

38.50

220.00

32.00

40.00

41.50

106.00

81.00

22.50

0.00

0.00

72.00

620.00

41.00

0.00

0.00

0.00

1.14

0.00

0.00

-3.17

-5.48

0.00

0.00

-1.18

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-1.72

9.09

0.00

-1.54

-2.00

1.79

0.00

0.00

1.20

0.00

4.17

0.00

0.00

0.00

2.38

0.00

0.00

0.00

0.00

7.50

3.92

5.88

-2.83

0.00

4.88

2.56

4.71

0.00

-2.33

0.00

-1.72

0.00

0.00

0.00

0.00

0.00

1.06

0.00

0.00

4.94

0.00

0.00

-1.72

0.00

0.00

0.00

0.00

0.00

1.20

0.00

0.00

0.00

0.00

0.00

-1.56

0.00

0.00

0.00

0.00

-1.56

-7.14

0.00

0.00

5.26

0.00

0.00

1.16

0.00

0.00

1.39

0.00

0.00

0.00

0.00

0.00

3.23

0.00

0.00

0.00

0.00

2.50

-1.67

-1.52

1.11

0.00

-1.45

0.00

0.00

0.00

0.00

2.74

0.00

0.00

0.00

-0.90

0.00

0.00

-1.19

0.00

0.00

0.00

0.00

0.00

2.86

0.00

-1.20

0.00

68

232,800

50,000

6,660

25,000

82,844

2,148

2,000

612,500

1,278,532

444,686

190,893

37,647

1,075,194

1,901

215,000

255,000

1,500

512,942

4,230,187

600

102,710

33,944,751

76,360

-

7,360,794

124,181

-

234

6,645

488,120

-

2,680,400

-

20,000

237

-

1,272,015

63,000

4,272,485

2,039,323

50,000

171,147

2,765,763

113,100

5,500

62,150

-

2,081,840

-

3,833

908,100

30,020

1,000

49,000

-

15,158

299,900

500

106,600

28,627

500

181,250

550,500

14,000

90,519

1,378,363

1,500

2,945,525

293,784

-

189,287

1,459,004

1,000

749,528

2,961

243,542

3,005,020

81,376

5,862

200

5,713,889

270,500

1,000

1,065,961

-

128,607

8,275,561

199

412,343

31,000

400

-

54,182

42,000

2,516,098

2,047,309

687,045

41,550

1,772,520

4,141,300

939,550

4,757,385

1,252,204

10,000

1,615,100

429,686

-

1,972,008

-

35,293

3,151,444

160,000

94,000

100

1,798,550

381

5,000

5,039,201

-

-

2,535,148

500

447,000

-

KUWAIT

Company Name Lt Price % Chg Volume

Voltamp Energy SaogUnited Power/Energy Co- Pref

United Power Co SaogUnited Finance Co

Ubar Hotels & ResortsTakaful Oman

Taageer FinanceSweets Of OmanSohar Power Co

Sohar PoultrySmn Power Holding Saog

Shell Oman Marketing - PrefShell Oman Marketing

Sharqiyah Desalination Co SaSembcorp Salalah Power & Wat

Salalah Port ServicesSalalah Mills Co

Salalah Beach Resort SaogSahara Hospitality

Renaissance Services SaogRaysut Cement Co

Port Service CorporationPhoenix Power Co Saoc

Packaging Co LtdOoredoo

OminvestOman United Insurance Co

Oman Textile Holding Co SaogOman Telecommunications Co

Oman Refreshment CoOman Packaging

Oman Orix Leasing Co.Oman Oil Marketing Company

Oman National Engineering AnOman Investment & Finance

Oman Intl MarketingOman Hotels & Tourism CoOman Foods International

Oman Flour MillsOman Fisheries CoOman Fiber Optics

Oman Europe Foods IndustriesOman Education & Training In

Oman ChromiteOman Chlorine

Oman Ceramic ComOman Cement Co

Oman Cables IndustryOman Agricultural Dev

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

National SecuritiesNational Real Estate Develop

National PharmaceuticalNational Mineral Water

National Hospitality InstituNational Gas Co

National Finance CoNational Detergent Co Saog

National Biscuit IndustriesNational Bank Of Oman Saog

Muscat Thread Mills CoMuscat National Holding

Muscat Gases Company SaogMuscat Finance

Majan Glass CompanyMajan College

Hsbc Bank OmanHotels Management Co Interna

Gulf StoneGulf Plastic Industries Co

Gulf Mushroom CompanyGulf Investments Services

Gulf Invest. Serv. Pref-SharGulf International Chemicals

Gulf Hotels (Oman) Co LtdGlobal Fin Investment

Galfar Engineering&ContractGalfar Engineering -Prefer

Financial Services Co.Financial Corp/The

Dhofar UniversityDhofar Tourism

Dhofar PoultryDhofar Intl Development

Dhofar InsuranceDhofar Fisheries & Food Indu

Dhofar Cattlefeed

0.49

1.00

3.25

0.16

0.13

0.18

0.12

1.34

0.24

0.21

0.71

1.05

1.96

4.50

0.23

0.63

1.48

1.38

2.50

0.25

1.50

0.25

0.15

2.21

0.66

0.49

0.33

0.31

1.53

2.15

0.30

0.13

1.86

0.16

0.21

0.52

0.40

0.00

0.70

0.06

4.57

1.00

0.15

3.64

0.49

0.42

0.47

1.51

0.00

0.14

0.19

0.17

5.00

0.11

0.05

0.00

0.59

0.13

0.70

3.75

0.24

0.11

1.79

0.62

0.12

0.19

0.52

0.12

1.25

0.11

0.00

0.34

0.12

0.11

0.27

10.50

0.17

0.10

0.39

0.17

0.10

1.49

0.49

0.18

0.37

0.21

1.28

0.22

0.00

0.00

0.00

0.00

0.00

0.00

0.85

0.00

-0.83

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.82

0.00

-0.80

-0.67

0.00

2.50

0.00

0.00

0.00

0.33

0.00

0.00

-3.10

0.00

0.00

0.48

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.00

0.00

0.67

0.00

0.75

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.85

0.00

0.00

0.00

0.00

0.00

0.00

1.75

0.00

0.00

0.00

0.00

-0.85

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

47,741

-

-

-

-

-

193,778

-

12,946

-

-

-

-

-

-

-

-

-

-

5,511

17,465

126,000

49,843

-

1,226,527

26,972

4,500

-

290,728

-

-

6,010

-

-

377,420

-

-

-

-

141,063

-

-

-

-

-

898

29,546

44,400

-

503,827

40,000

-

-

-

62,000

-

5,000

-

-

-

833,719

-

-

-

5,513

-

-

566,000

-

-

-

-

617,730

-

63,565

-

-

553,754

-

-

-

-

-

-

-

-

-

-

OMAN

Company Name Lt Price % Chg Volume

Dhofar Beverages CoConstruction Materials Ind

Computer Stationery IndsBankmuscat Saog

Bank SoharBank Nizwa

Bank Dhofar SaogAreej Vegetable Oils

Aloula CoAl-Omaniya Financial Service

Al-Hassan Engineering CoAl-Fajar Al-Alamia Co

Al-Anwar Ceramic Tiles CoAl Suwadi Power

Al Shurooq Inv SerAl Sharqiya Invest Holding

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

Al Madina Investment CoAl Kamil Power Co

Al Jazerah Services -PfdAl Jazeera Steel Products Co

Al Jazeera ServicesAl Izz Islamic Bank

Al Buraimi HotelAl Batinah PowerAl Batinah Hotels

Al Batinah Dev & InvAl Anwar Holdings Saog

Ahli BankAcwa Power Barka Saog

Abrasives Manufacturing Co SA’saff a Foods Saog

0Man Oil Marketing Co-Pref

0.26

0.03

0.26

0.44

0.17

0.08

0.23

4.05

0.53

0.28

0.06

0.75

0.17

0.19

1.04

0.14

1.44

0.47

0.07

0.05

0.31

0.55

0.25

0.20

0.07

0.88

0.19

1.13

0.10

0.19

0.19

0.70

0.05

0.82

0.25

0.00

0.00

0.00

0.91

1.23

0.00

1.31

0.00

0.00

0.00

0.00

0.00

0.58

0.00

0.00

0.00

0.00

0.00

-1.39

0.00

0.00

0.00

0.00

1.52

0.00

0.00

0.00

0.00

-1.02

1.06

0.00

0.00

0.00

0.00

0.00

-

-

-

4,755,561

2,275,886

2,223,444

184,846

-

-

-

-

-

578,160

661

-

130,941

-

-

105,449

1,000

-

-

113,356

20,000

269,648

-

-

-

12,390

787,536

36,166

-

-

-

-

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 Cement IndustSharjah Islamic Bank

Sharjah Insurance CompanySharjah Group

Sharjah Cement & Indus DevelRas Al-Khaimah National Insu

Ras Al Khaimah White CementRas Al Khaimah Ceramics

Ras Al Khaimah Cement Co PscRas Al Khaima Poultry

Rak PropertiesOoredoo Qsc

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

National Takaful CompanyNational Marine Dredging Co

National Investor Co/TheNational Corp Tourism & Hote

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

National Bank Of FujairahNational Bank Of Abu Dhabi

Methaq Takaful InsuranceManazel Real Estate Pjsc

Invest BankIntl Fish Farming Co Pjsc

Insurance HouseGulf Pharmaceutical Ind Psc

Gulf Medical ProjectsGulf Cement Co

Fujairah Cement IndustriesFujairah Building Industries

Foodco Holding PjscFirst Gulf BankFinance House

Eshraq Properties Co PjscEmirates Telecom Group Co

Emirates Insurance Co. (Psc)Emirates Driving Company

Dana GasCommercial Bank Internationa

Bank Of SharjahAxa Green Crescent Insurance

Arkan Building Materials CoAlkhaleej InvestmentAldar Properties Pjsc

Al Wathba National InsuranceAl Khazna Insurance Co

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

Al Buhaira National InsurancAl Ain Ahlia Ins. Co.

Agthia Group PjscAbu Dhabi Ship Building Co

Abu Dhabi Natl Co For BuildiAbu Dhabi National Takaful C

Abu Dhabi National InsuranceAbu Dhabi National Hotels

Abu Dhabi National Energy CoAbu Dhabi Islamic Bank

1.81

2.00

1.70

4.47

1.86

1.10

0.90

1.48

3.85

1.50

0.95

4.10

1.11

2.35

0.74

2.27

0.69

91.50

1.18

6.26

0.90

4.30

0.52

2.80

3.00

4.99

4.78

10.00

0.90

0.59

2.26

1.75

0.73

2.17

2.50

0.97

1.11

1.56

4.60

12.90

1.80

1.07

18.70

5.75

7.00

0.57

1.99

1.35

0.55

0.94

1.15

2.74

4.40

0.34

300.00

5.00

2.35

55.00

7.00

2.56

0.54

4.25

2.58

3.05

0.55

3.63

0.00

0.00

0.00

-1.11

0.00

1.85

0.00

-0.67

0.00

0.00

0.00

0.00

0.91

0.43

-1.33

0.00

-1.43

0.00

0.00

0.00

-10.00

-5.49

0.00

0.00

0.00

-0.20

0.00

-0.50

1.12

9.26

0.00

-1.13

0.00

-5.65

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.94

-0.53

0.00

0.00

1.79

0.00

0.00

1.85

0.00

0.00

-0.36

0.00

0.00

0.00

0.00

0.00

0.00

3.55

2.81

0.00

0.00

0.00

7.02

-1.79

-0.55

1,400,588

-

-

517,790

-

469

-

552,522

-

-

58,098

-

5,569

275,392

8,029

-

9,950,414

-

-

-

18,000

3,199

-

-

340,450

21,771

-

633,434

3,564,833

122,982,373

-

96,000

-

240,126

-

-

-

-

-

558,119

-

23,461,492

577,906

-

-

3,140,865

-

-

84,982

561,035

-

4,931,546

-

-

-

-

-

-

956,579

3,630

-

-

-

55,020

619,707

1,016,850

UAE

Company Name Lt Price % Chg Volume

Zain Bahrain BsccUnited Paper Industries Bsc

United Gulf Investment CorpUnited Gulf BankTrafco Group Bsc

Takaful International CoTaib Bank -$Us

Seef PropertiesSecurities & Investment Co

National Hotels CoNational Bank Of Bahrain Bsc

Nass Corp BscKhaleeji Commercial Bank

Ithmaar Bank BscInvestcorp Bank -$Us

Inovest Co BscGulf Monetary Group

Gulf Hotel Group B.S.CGfh Financial Group Bsc

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

Bmmi BscBmb Investment Bank

Bbk BscBankmuscat Saog

Banader Hotels CoBahrain Tourism CoBahrain Telecom Co

Bahrain Ship Repair & EnginBahrain National Holding

Bahrain Kuwait InsuranceBahrain Islamic Bank

Bahrain Flour Mills CoBahrain Family Leisure Co

Bahrain Duty Free ComplexBahrain Commercial Facilitie

Bahrain Cinema CoBahrain Car Park Co

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

Aluminium Bahrain BscAlbaraka Banking Group

Al-Salam BankAl-Ahlia Insurance Co

Ahli United Bank B.S.C

0.11

0.00

0.00

0.00

0.24

0.00

0.00

0.21

0.00

0.00

0.72

0.11

0.07

0.13

8.10

0.21

0.00

0.64

0.51

0.17

0.00

0.82

0.00

0.36

0.00

0.07

`

0.28

0.00

0.00

0.00

0.12

0.00

0.00

0.75

0.65

1.29

0.00

0.33

0.34

0.30

0.44

0.10

0.00

0.64

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-1.32

-1.14

-2.91

0.00

0.00

1,000,000

-

-

-

65,197

-

-

30,000

-

-

5,000

289,000

190,000

159,000

25,000

19,586

-

10,000

25,000

42,043

-

33,000

-

4,640

-

33,386

-

31,318

-

-

-

15,000

-

-

9,730

20,000

2,000

-

60,000

20,000

57,000

29,570

100,000

-

314,500

BAHRAIN

Company Name Lt Price % Chg Volume

Boubyan Intl Industries HoldGulf Investment House Ksc

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

Osos Holding Group CoAl-Eid Food Ksc

Qurain Petrochemical IndustrAdvanced Technology Co

Ekttitab Holding Co SakKout Food Group Ksc

Real Estate Trade Centers CoAcico Industries Co Kscc

Kipco Asset Management CoNational Petroleum ServicesAlimtiaz Investment Co Kscc

Ras Al Khaimah White CementKuwait Reinsurance Co Ksc

Kuwait & Gulf Link TransportHuman Soft Holding Co Ksc

Automated Systems Co KsccMetal & Recycling Co

Gulf Franchising Holding CoAl-Enma’a Real Estate Co

National Mobile TelecommuniAl Bareeq Holding Co Kscc

Housing Finance Co SakAl Salam Group Holding Co

United Foodstuff IndustriesAl Aman Investment Company

Mashaer Holdings Co KscManazel Holding

Mushrif Trading & ContractinTijara And Real Estate Inves

Kuwait Building MaterialsJazeera Airways Co Ksc

Commercial Real Estate CoFuture Communications Co

National International CoTaameer Real Estate Invest C

Gulf Cement CoHeavy Engineering And Ship B

Refrigeration Industries & SNational Real Estate Co

Al Safat Energy Holding CompKuwait National Cinema CoDanah Alsafat Foodstuff Co

Independent Petroleum GroupKuwait Real Estate Co Ksc

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

Kuwait Finance HouseGulf North Africa Holding Co

Hilal Cement CoOsoul Investment Kscc

Gulf Insurance Group KscKuwait Food Co (Americana)

Umm Al Qaiwain Cement IndustAayan Leasing & Investment

Alrai Media Group Co KscNational Investments CoCommercial Facilities Co

Taiba Kuwaiti Holding Co KscAfaq Educational Services Co

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

24.00

29.50

400.00

196.00

130.00

0.00

228.00

0.00

37.00

0.00

36.00

270.00

118.00

810.00

96.00

87.00

182.00

53.00

2,260.00

244.00

63.00

30.50

40.50

1,140.00

0.00

0.00

44.50

0.00

48.50

0.00

29.00

56.00

42.00

190.00

780.00

81.00

90.00

62.00

22.50

75.00

168.00

325.00

106.00

35.00

960.00

91.00

365.00

62.00

360.00

385.00

0.00

540.00

34.00

0.00

62.00

620.00

2,620.00

0.00

31.00

152.00

99.00

156.00

0.00

0.00

0.00

435.00

2.13

3.51

0.00

1.03

0.00

0.00

0.00

0.00

1.37

0.00

0.00

0.00

3.51

0.00

2.13

-2.25

0.00

-1.85

4.63

0.83

0.00

0.00

0.00

-1.72

0.00

0.00

0.00

0.00

-2.02

0.00

-1.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.14

0.00

-1.18

0.00

1.92

0.00

-1.03

1.11

0.00

1.64

-1.37

0.00

0.00

1.89

0.00

0.00

5.08

0.00

0.00

0.00

1.64

1.33

1.02

0.00

0.00

0.00

0.00

0.00

23,791,720

5,843,217

1,137,812

660,396

1,000

-

79,592

-

9,932

-

1

35,852

1,990

5,000

2,597,383

262

50,000

264,800

25,750

36,900

10,000

219,851

653,600

7,619

-

-

637,000

-

1,746,026

-

747,228

257,489

160,020

393,000

157,940

573,410

16,300

98,319

21,251

2,000

41,353

6,811

3,593,318

854,450

805

241

10,000

1,499,482

10

339,000

-

972,249

1,029,303

-

500

2,736

19,700

-

3,211,586

177

515,874

30,309

-

-

-

30,500

KUWAIT

Company Name Lt Price % Chg Volume

LATEST MARKET CLOSING FIGURES

BUSINESS7Gulf Times

Wednesday, December 14, 2016

CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

Europe markets climb on Italy bank actionAFPLondon

European stock markets rose sol-idly yesterday, led by Milan’s main index and Italian banking

shares, after ailing UniCredit said it would axe thousands of jobs and raise billions of euros.

In London, the FTSE 100 up 1.1% to 6,968.57 points; Frankfurt — DAX 30 up 0.8% to 11,284.65 points; Paris — CAC 40 up 0.9% to 4,803.87 points and Milan — FTSE Mib up 2.5% to 18,827.61 points at the close yesterday.

Wall Street also posted gains as at-tention was focused on a much-an-ticipated Federal Reserve rate meeting, while analysts said a Trump-fuelled rally that saw the Dow reach another record close Tuesday may have been overdone.

Leading Asian stock markets ended higher, with Tokyo closing at a one-year high.

Oil prices advanced as the Interna-tional Energy Agency hiked its forecast for global crude demand growth, but then ran into profi t-taking.

Outside the eurozone, London gained 1.1% as traders assessed a big-ger-than-expected jump to British infl ation, partly the result of a weaker pound following the Brexit referen-dum.

Separate data showed that despite uncertainty over Italy’s troubled banks and upcoming elections in Europe, in-vestor confi dence in Europe’s econom-ic powerhouse Germany held steady this month.

Mike van Dulken, head of research at Accendo Markets, said stock mar-ket sentiment was buoyed yesterday “by suggestions of progress in recapi-talising Italy’s troubled banks as well as expectations that the Fed will...still signal a cautious path for further rate hikes” following an expected raise to-day.

Italy’s biggest bank, UniCredit, announced plans yesterday to slash 14,000 jobs as the country gets to grips with political instability and a banking crisis.

The bank, one of the worst per-formers in European bank stress tests, confi rmed it would also need €13bn ($13.8bn) in fresh capital from inves-

tors despite political complications in Italy and the nation’s third-largest bank scrambling to avoid a govern-ment-led rescue.

UniCredit shares surged by 15% fol-lowing the announcement, helping lift banking shares everywhere in Europe.

There is meanwhile little doubt that the US Federal Reserve will raise its benchmark interest rate today for only the second time in a decade.

Any rate move would come against the backdrop of US unemployment at a nine-year low, with jobs being created at an average of 180,000 per month.

The world’s biggest economy also grew at better than 3% in the most re-cent quarter amid some signs of a pick-up in infl ation.

Investors are already looking past this week’s Fed decision for guidance on next year’s rate moves, but Craig Erlam, at Oanda, said that rising oil prices and the Trump administration’s spending plans are clouding the out-look.

“The Fed may be forced to raise in-terest rates at a faster pace that it had planned and the markets have current-ly priced in,” he said.

A worker shelters from the rain as he passes the London Stock Exchange building. The FTSE 100 closed up 1.1% to 6,968.57 points yesterday.

Apple IncMicrosoft Corp

Exxon Mobil CorpJohnson & JohnsonGeneral Electric Co

Jpmorgan Chase & CoProcter & Gamble Co/The

Wal-Mart Stores IncVerizon Communications Inc

Pfizer IncVisa Inc-Class A Shares

Chevron CorpCoca-Cola Co/The

Intel CorpMerck & Co. Inc.

Cisco Systems IncHome Depot Inc

Intl Business Machines CorpWalt Disney Co/The

Unitedhealth Group Inc3M Co

Mcdonald’s CorpNike Inc -Cl B

United Technologies CorpBoeing Co/The

Goldman Sachs Group IncAmerican Express Co

Du Pont (E.I.) De NemoursCaterpillar Inc

Travelers Cos Inc/The

115.00

63.03

92.09

115.20

31.66

84.10

85.17

72.02

52.29

32.60

79.13

116.73

41.76

36.44

61.29

30.50

136.23

168.81

104.01

160.88

178.35

122.39

53.03

110.51

155.45

237.02

73.47

74.77

95.46

121.61

1.50

1.38

1.22

-0.14

-0.63

-0.74

0.05

0.49

1.02

0.60

0.80

-0.36

-0.33

1.31

-0.70

1.09

1.23

2.00

-0.05

0.87

-0.72

0.53

2.89

0.11

-1.09

-0.06

-0.15

-0.43

0.40

0.58

13,649,909

9,228,051

6,336,336

1,821,609

9,391,928

5,967,868

4,221,126

2,570,511

3,284,226

6,795,438

3,483,469

2,927,859

5,638,769

5,854,516

2,083,623

6,514,192

1,723,931

1,769,069

1,886,567

1,223,816

950,365

926,463

4,179,979

1,082,990

2,062,071

1,774,452

691,118

512,988

911,673

658,599

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/TheSabmiller Plc

Rsa Insurance Group PlcRoyal Mail Plc

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

Royal Bank Of Scotland GroupRolls-Royce Holdings Plc

Rio Tinto PlcRexam Plc

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

1,760.00

267.80

4,963.00

226.50

3,466.00

199.95

898.00

3,193.50

1,074.00

1,421.00

205.30

153.10

358.30

670.20

989.50

1,517.00

1,169.00

990.00

4,433.00

2,193.00

2,935.00

245.30

635.50

0.00

558.50

452.10

2,228.00

2,126.50

218.70

679.50

3,150.50

0.00

1,386.00

6,665.00

5,755.00

1,575.50

2,677.00

1,690.00

803.00

8,535.00

193.90

4,903.00

922.00

1,575.00

433.80

740.00

349.10

2,748.00

62.60

239.50

1,015.00

345.00

3,067.00

192.20

271.10

449.00

3,360.00

3,444.00

737.00

661.50

3,501.50

660.70

1,216.00

556.00

283.55

1,495.00

318.90

1,129.00

1,502.00

989.00

364.40

348.60

2,086.50

5,895.00

2,678.00

1,397.00

1,637.00

220.60

4,021.00

454.90

1,478.00

2,052.00

358.35

622.00

4,427.50

479.85

1,357.00

2,805.00

459.80

229.60

594.00

934.00

474.80

4,294.00

2,700.00

1,620.00

0.00

731.50

1,174.00

1,801.00

689.00

0.00

0.57

3.00

0.18

0.67

1.46

0.98

0.56

2.62

2.19

1.00

-3.55

2.34

-0.61

2.63

1.02

1.13

1.04

1.85

2.73

1.29

1.56

1.36

1.76

0.00

0.45

0.40

0.43

0.38

2.24

4.38

-2.91

0.00

1.61

2.32

-0.43

0.70

0.60

1.38

1.58

2.09

1.62

2.25

0.04

1.09

1.85

1.51

1.69

1.74

1.99

0.04

1.81

0.82

1.66

3.78

1.96

3.82

1.33

2.23

3.08

1.38

2.31

1.37

-0.41

1.55

-2.31

1.63

2.18

-1.40

0.87

1.96

2.19

0.35

2.38

0.26

0.00

3.25

-1.50

1.52

0.27

0.04

2.28

1.48

3.36

2.22

1.41

-0.73

-3.11

1.12

1.64

0.90

1.37

1.85

0.17

2.09

2.04

-1.46

0.00

-5.55

-2.98

0.50

2.00

0.00

2,053,590

4,289,869

362,000

12,903,682

405,368

38,027,798

880,275

1,915,015

688,611

417,092

21,050,851

10,546,892

3,175,956

5,004,121

508,595

852,943

1,242,636

15,214,691

1,218,961

461,194

158,992

5,575,596

2,882,388

-

848,707

1,810,856

3,826,544

3,221,403

9,497,328

9,171,363

2,546,199

-

2,828,861

890,912

474,899

2,282,248

347,567

625,749

1,085,047

55,331

5,859,844

225,071

4,961,970

951,838

591,338

912,846

4,336,642

158,585

126,490,783

10,156,235

1,429,060

4,172,928

358,826

21,904,016

1,164,621

4,858,748

150,246

392,867

1,092,170

899,923

1,183,278

18,926,795

250,934

879,222

32,267,985

4,094,823

2,090,945

955,533

1,554,554

1,235,695

1,931,818

1,680,041

3,577,002

71,471

644,329

2,526,201

327,016

9,003,891

282,643

3,093,428

1,456,262

321,152

9,926,007

1,967,161

2,273,944

20,898,898

4,940,805

438,586

2,428,526

25,781,039

5,716,459

871,310

2,450,855

1,315,245

358,185

1,580,098

-

2,659,829

4,611,957

319,279

1,189,623

-

FTSE 100

Company Name Lt Price % Chg Volume

East Japan Railway CoItochu Corp

Fujifilm Holdings CorpYamato Holdings Co Ltd

Chubu Electric Power Co IncMitsubishi Estate Co Ltd

Mitsubishi Heavy IndustriesToshiba Corp

Shiseido Co LtdShionogi & Co Ltd

Tokyo Gas Co LtdTokyo Electron Ltd

Panasonic CorpFujitsu Ltd

Central Japan Railway CoT&D Holdings Inc

Toyota Motor CorpKddi Corp

Nitto Denko Corp

10,035.00

1,654.00

4,393.00

2,375.00

1,742.50

2,394.00

550.90

454.40

2,960.50

5,174.00

535.90

10,175.00

1,282.50

700.20

19,035.00

1,551.00

7,050.00

3,054.00

8,811.00

0.40

0.30

0.05

0.57

2.02

-0.83

-1.25

0.13

2.05

3.40

1.65

1.14

0.87

-0.84

0.87

-0.42

0.70

2.57

0.11

1,047,200

7,018,100

1,193,100

1,075,900

3,217,600

6,080,000

21,579,000

40,305,000

1,990,100

1,626,700

14,882,000

745,500

13,342,300

10,386,000

479,000

4,557,900

8,512,800

7,962,900

891,500

TOKYO

Company Name Lt Price % Chg Volume

Rakuten IncKyocera Corp

Nissan Motor Co LtdHitachi Ltd

Takeda Pharmaceutical Co LtdJfe Holdings Inc

Ana Holdings IncMitsubishi Electric Corp

Sumitomo Mitsui Financial GrHonda Motor Co Ltd

Fast Retailing Co LtdMs&Ad Insurance Group Holdin

Kubota CorpSeven & I Holdings Co Ltd

Inpex CorpResona Holdings Inc

Asahi Kasei CorpKirin Holdings Co Ltd

Marubeni CorpMitsubishi Ufj Financial Gro

Mitsubishi Chemical HoldingsFanuc Corp

Daito Trust Construct Co LtdOtsuka Holdings Co Ltd

Oriental Land Co LtdSekisui House Ltd

Secom Co LtdTokio Marine Holdings Inc

Aeon Co LtdMitsui & Co Ltd

Kao CorpDai-Ichi Life Holdings Inc

Mazda Motor CorpKomatsu Ltd

West Japan Railway CoMurata Manufacturing Co Ltd

Kansai Electric Power Co IncDenso Corp

Sompo Holdings IncDaiwa House Industry Co Ltd

Jx Holdings IncNippon Steel & Sumitomo Meta

Suzuki Motor CorpNippon Telegraph & Telephone

Ajinomoto Co IncMitsui Fudosan Co Ltd

Ono Pharmaceutical Co LtdDaikin Industries Ltd

Bank Of Yokohama Ltd/TheToray Industries IncAstellas Pharma Inc

Bridgestone CorpSony CorpHoya Corp

Sumitomo Mitsui Trust HoldinJapan Tobacco Inc

Osaka Gas Co LtdSumitomo Electric Industries

Daiwa Securities Group IncSoftbank Group Corp

Mizuho Financial Group IncNomura Holdings Inc

Daiichi Sankyo Co LtdFuji Heavy Industries Ltd

Ntt Docomo IncSumitomo Realty & Developmen

Sumitomo Metal Mining Co LtdOrix Corp

Asahi Group Holdings LtdKeyence Corp

Nidec CorpIsuzu Motors Ltd

Unicharm CorpShin-Etsu Chemical Co Ltd

Smc CorpMitsubishi CorpNintendo Co Ltd

Eisai Co LtdSumitomo Corp

Canon IncJapan Airlines Co Ltd

1,162.00

5,746.00

1,135.00

634.30

4,853.00

1,897.00

318.40

1,640.00

4,656.00

3,458.00

43,210.00

3,795.00

1,704.50

4,521.00

1,252.50

615.60

1,062.00

1,970.00

683.90

747.70

785.00

20,545.00

17,495.00

4,854.00

6,630.00

1,948.50

8,529.00

5,314.00

1,675.00

1,690.00

5,527.00

2,013.00

1,954.50

2,702.50

7,125.00

15,445.00

1,312.50

5,107.00

4,155.00

3,307.00

521.20

2,723.00

4,030.00

4,875.00

2,364.50

2,790.50

2,518.00

10,830.00

0.00

946.50

1,602.00

4,306.00

3,378.00

4,503.00

4,449.00

3,905.00

445.80

1,683.00

759.60

7,772.00

220.00

743.30

2,500.00

4,809.00

2,691.50

3,238.00

1,627.50

1,883.00

3,497.00

76,360.00

9,880.00

1,502.00

2,506.00

9,112.00

28,460.00

2,592.50

28,275.00

6,840.00

1,421.00

3,400.00

3,490.00

-0.94

-0.24

0.35

-1.44

2.21

-1.07

0.54

-0.85

-0.58

-0.23

0.19

-0.18

-3.92

0.83

-0.40

0.36

0.33

0.54

0.37

-0.65

0.33

0.39

3.15

5.18

2.30

1.78

0.91

-1.25

0.96

-0.12

3.25

-0.10

-1.56

-0.15

-0.08

-1.09

1.78

1.07

0.05

0.98

1.40

0.11

0.83

3.61

1.26

-0.98

3.92

-0.09

0.00

0.69

2.59

0.54

0.36

0.36

0.11

0.18

-0.40

-0.24

0.21

-0.13

-0.32

-1.06

3.48

-1.19

2.03

-0.18

0.74

-0.63

-4.61

4.43

-0.08

-0.23

1.31

0.18

-3.51

1.67

-3.83

0.53

0.25

-0.50

0.06

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

0.58

-2.01

-0.56

-0.84

1.58

-0.17

0.00

-0.87

1.04

-0.69

0.47

0.83

-0.12

-0.91

0.90

1.17

-0.97

0.32

1.03

2.04

0.00

-0.41

1.57

2.34

2.24

0.00

-0.69

-0.34

0.48

0.58

-2.01

-0.56

-0.84

1.58

-0.17

0.00

-0.87

1.04

-0.69

0.47

0.83

-0.12

-0.91

0.90

1.17

-0.97

0.32

1.03

2.04

0.00

-0.41

1.57

2.34

2.24

0.00

-0.69

-0.34

0.48

19,730,544

2,692,145

242,085,259

27,125,332

13,818,656

12,567,789

5,239,898

9,773,685

14,058,938

258,505,039

44,014,448

5,140,910

20,948,546

20,087,466

103,688,826

3,591,993

9,322,291

5,990,216

24,568,084

41,526,510

9,663,486

2,773,981

63,287,538

4,631,004

2,590,252

2,968,210

3,692,565

1,506,868

4,698,306

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

0.00

0.00

-1.08

0.00

-0.63

-1.41

1.57

-0.81

5.30

1.08

-0.07

-1.16

-0.10

-0.99

0.65

-0.18

0.00

0.00

-1.08

0.00

-0.63

-1.41

1.57

-0.81

5.30

1.08

-0.07

-1.16

-0.10

-0.99

0.65

-0.18

8,673,330

3,349,351

26,855,024

-

235,879,202

50,645,950

3,661,329

22,376,810

293,252,437

21,240,497

1,908,041

5,012,606

3,573,099

1,144,464

16,390,467

6,228,256

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

441.80

1,206.65

463.75

239.95

3,366.75

484.55

421.10

77.60

470.65

2,200.30

684.35

266.15

1,039.80

129.40

185.25

312.00

164.80

5,163.15

1,167.40

1,494.30

1,375.70

730.95

235.65

990.20

1,089.80

77.05

264.40

1,278.55

831.15

176.95

3,210.70

1,186.25

800.95

850.55

424.90

3,166.85

305.95

578.85

262.45

20,916.60

330.00

628.65

125.45

160.40

2,659.15

452.95

906.75

206.40

286.00

1,339.75

-2.32

1.17

2.25

-2.78

-2.76

3.23

-0.73

1.24

3.58

-0.36

1.18

0.95

1.23

-1.11

0.27

0.18

-0.39

0.36

0.15

-0.61

0.79

0.15

1.44

1.31

0.41

1.92

-0.17

1.11

-0.17

-2.75

-0.05

0.15

0.14

-1.30

-0.98

0.60

0.21

0.70

-1.46

0.73

0.26

2.75

-1.61

0.94

0.15

1.76

-0.38

-0.94

1.65

-0.46

SENSEX

Company Name Lt Price % Chg

WORLD INDICESIndices Lt Price Change

GCC INDICESIndices Lt Price Change

Dow Jones Indus. AvgS&P 500 Index

Nasdaq Composite IndexS&P/Tsx Composite Index

Mexico Bolsa IndexBrazil Bovespa Stock Idx

Ftse 100 IndexCac 40 Index

Dax IndexIbex 35 Tr

Nikkei 225Japan Topix

Hang Seng IndexAll Ordinaries Indx

Nzx All IndexBse Sensex 30 Index

Nse S&P Cnx Nifty IndexStraits Times Index

Karachi All Share IndexJakarta Composite Index

19,866.29

2,266.34

5,467.63

15,328.28

46,703.20

59,293.74

6,956.15

4,796.78

11,278.70

9,306.00

19,250.52

1,540.25

22,446.70

5,600.71

1,275.29

26,697.82

8,221.80

2,955.23

31,418.26

5,293.62

+69.86

+9.38

+55.09

+40.58

-210.27

+115.12

+65.73

+36.01

+88.49

+119.60

+95.49

+8.82

+13.68

-18.41

-4.40

+182.58

+51.00

+3.04

+298.86

-14.51

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

10,397.58

7,108.44

5,671.62

1,188.12

5,732.37

4,539.91

3,625.23

+68.82

-53.94

+34.63

-2.40

+36.05

-9.14

-31.88

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

7,921,700

1,051,400

13,669,200

31,122,000

3,002,800

4,552,800

10,293,000

6,921,900

8,903,000

5,341,800

434,500

1,675,900

7,619,100

2,704,000

5,256,100

20,571,800

4,622,000

3,115,500

9,906,100

118,336,800

5,595,900

810,700

505,200

2,701,500

1,245,600

3,309,700

513,500

3,925,500

2,416,200

7,199,400

4,548,000

6,564,000

7,445,500

10,315,400

626,400

939,000

3,571,200

2,050,600

1,571,300

1,371,300

14,515,000

4,077,500

2,295,400

7,974,200

3,592,500

4,602,000

4,148,600

1,137,300

-

6,675,000

9,394,900

2,463,600

6,183,700

984,200

1,854,400

5,800,600

11,367,000

3,001,800

9,889,000

6,696,800

194,814,200

49,687,600

2,505,800

4,622,700

7,391,500

2,395,000

4,308,000

6,767,000

5,542,700

362,800

5,451,800

3,174,600

2,266,100

1,140,700

2,133,700

6,644,600

3,044,500

1,060,200

4,287,300

5,002,500

3,907,000

2,901,614

2,318,026

1,233,393

16,713,466

377,803

2,043,211

3,721,472

3,607,981

65,301,987

1,114,515

4,922,051

10,072,209

2,467,196

10,230,871

2,629,318

8,588,308

3,122,821

512,874

892,739

754,125

1,508,695

767,243

7,942,041

2,544,983

819,923

5,851,547

9,811,052

1,685,645

746,697

10,460,229

294,759

719,142

963,272

446,183

1,554,288

85,293

4,276,402

591,372

1,441,728

12,245

993,207

1,626,806

3,799,206

6,074,031

253,867

8,892,673

1,669,834

1,134,196

2,855,033

173,562

Gulf Times Wednesday, December 14, 2016

BUSINESS8

BUSINESS

Gulf Times Wednesday, December 14, 201614

SNB to savour Christmas quiet before year of Europe suspenseBloombergZurich

Thomas Jordan may want to take advan-

tage of any time he gets to put his feet up

this holiday season.

While an interest rate increase by the

Federal Reserve this week is likely to

take pressure off the franc after a year of

seismic political shifts, that respite may be

short lived. Elections in France, Germany

and the Netherlands, plus Britain’s trigger-

ing of Brexit, mean 2017 is shaping up to

be a year of heightened uncertainty that is

set to keep Swiss National Bank President

Jordan and his fellow rate setters busy.

“The eurozone will continue to encoun-

ter significant problems, keeping the euro

low,” said Janwillem Acket, chief econo-

mist at Julius Baer. “Erratic US policies, as

well as heightened geopolitical tension

levels, could be prone to send fearful in-

vestors out of the US dollar, as safe haven,

into the Swiss franc again.”

The SNB’s policy decision at 9:30 a.m.

in Bern on Thursday comes just hours

after the Fed is expected to announce

its first rate hike in a year on the back of

an improving labour market. That could

further support the dollar, already lifted

along with equity markets by the election

of Donald Trump. Policy in the euro area,

however, remains expansive, with off icials

announcing an extension of its bond buy-

ing program last week.

“From a Swiss perspective, we have an

interest in policy globally moving toward

normalization, especially in light of an

improvement in the global economy”

SNB President Jordan told Tages-Anzeiger

newspaper in an interview published on

November 24. Economists surveyed by

Bloomberg expect the SNB, which has

sought to re-kindle inflation via a two-pillar

strategy of a deposit rate of minus 0.75%

and a pledge to intervene in currency

markets, to stick with its current stance. Its

announcement will be followed by a press

conference featuring Jordan, vice-president

Fritz Zurbruegg and Board Member Andrea

Maechler at 10 a.m. local time.

The SNB will also publish an updated in-

flation forecast and a first take on growth

for next year. In September, it predicted

that prices would rise just 0.2% in 2017

and 0.6% in 2018.

The wave of populism stemming

from exasperation with the political and

business establishment over a raft of

grievances from inequality to immigration

that began with Brexit in June and shaped

Austria’s presidential election and Italy’s

referendum is likely to play a key role in

the upcoming European votes and risks

destabilising the euro area.

The Netherlands, something of a

laboratory for European politics, with

unstable, multi-party coalitions the norm,

kicks off Europe’s 2017 voting season with

parliamentary elections on March 15. The

same month, the UK government plans

to trigger the start of Brexit via Article 50.

The two rounds of the presidential elec-

tion in France are due in April and May.

Even Germany, whose constitutional

checks and balances to prevent dictatorial

bents mean it’s considered more resistant

to populism, may see the anti-immigration

Alternative for Germany party gain

ground in federal elections in fall.

A reemergence of doubts about the

euro’s viability could cause a run on the

franc, just as Greece’s debt crisis did in

2015 and Britain’s Brexit vote in June. The

SNB admitted interventions after both

those incidents, and its foreign-exchange

holdings having increased another 39bn

francs ($38.4bn) in the last five months,

indicating there may have been further

market activity.

The International Monetary Fund

has recommended the SNB reserve its

interventions only to counter big inflows

and cut its deposit rate still further to

combat the strong franc and stoke infla-

tion. According to the median estimate by

economists in another Bloomberg survey,

the rate can go as low as minus 1.25%

before investors begin hoarding cash. The

SNB can also increase its balance sheet

to 150% of gross domestic product from

roughly 110% currently, without risking its

credibility, the survey found.

Yet even with the SNB’s ultra-expansive

policy, the franc has appreciated more

than 1% against the euro this year and

price pressures are feeble. Last week,

Switzerland’s statistics off ice cut its 2017

consumer price forecast to zero from

0.3%, and said it expects inflation to

average 0.2% in 2018. The franc was up

0.3% at 1.0743 per euro at 1:44pm in Zurich

yesterday.

According to Markus Schmieder, an

economist at Wellershoff and Partners in

Zurich, the SNB will be hesitant to deploy

a further rate cut, shrugging off the IMF’s

advice. “To lower negative interest rates

does not seem to be a valid option for

the SNB” as bank profits would suff er

even more and the risk of cash hoarding

would rise, said Schmieder, adding that an

improving inflation outlook might allow

the SNB to permit the franc to appreciate

“in a controlled manner.”

UK infl ation at highest in over 2 years in November

ReutersLondon

British infl ation hit its high-est rate in more than two years last month, pushed

up by more expensive clothing and the impact of June’s Brexit vote on the prices consumers paid for technology goods.

Consumer prices were 1.2% higher than a year earlier in No-vember, up from 0.9% in Oc-tober and the biggest increase since October 2014, the Offi ce for National Statistics said yes-terday.

Economists polled by Reuters had expected a 1.1% annual rise in a Reuters poll. In a separate re-lease, the ONS said prices paid by British factories for materials and energy fell more than 1% on the month but were up by nearly 13% compared with November 2015 — the biggest annual increase since October 2011.

The Bank of England forecast last month that infl ation would surge to about 2.8% by mid-2018, as sterling’s plunge after Britain’s vote to leave the EU pushes up the cost of imports and squeezes living standards and household spending.

Sterling is currently down about 15% against the US dollar and 8% against the euro, making suppliers and retailers battle for profi ts as imported goods be-come more expensive.

There was some respite for sterling in November, which eased the pressure on factories paying for materials and energy during the month.

Annual rates of producer price infl ation rose at the fastest pace in more than four years, how-ever, underscoring how British infl ation more broadly looks set to rise sharply next year.

“We expect infl ation could hit 3% next year against a backdrop of rising unemployment and weaker wage growth,” said Rich-ard Lim, chief executive of con-sultancy Retail Economics.

Sterling touched a day’s high above $1.27 after the data.

British infl ation has been be-low the Bank of England’s 2% target for nearly three years and last year it was zero, the lowest level since comparable records began in 1950.

Bank of England policymakers look set to keep interest rates on hold this Thursday after drop-ping their signals of another cut and adopting a neutral stance last month.

Clothing prices provided the biggest boost to the annual in-fl ation rate in November, in part because retailers off ered fewer discounts.

Prices for recreation and cul-ture rose by 0.5% from October to November, fuelled by higher costs for technology goods.

Manufacturers such as Apple have increased prices in Britain to refl ect the fall in the value of sterling since the Brexit vote.

And the ONS said consumers had to pay 7.4% more for fuel compared with a year ago — a trend that looks likely to con-tinue.

On Monday oil prices rose by as much as 6.5% to an 18-month high after Opec members and some of their rivals reached a fi rst deal since 2001 to jointly re-duce output to try to tackle glo-bal oversupply and boost prices.

Unicredit plans $13.8bn stock sale, job cuts to boost profi tBloombergMilan

Unicredit plans to raise €13bn ($13.8bn) in a rights off er, bet-ting that a balance-sheet

cleanup and cost cuts will persuade investors that Italy’s biggest bank can restore profi tability even without much revenue growth.

The bank is targeting €4.7bn of net profi t in 2019 with a return on tan-gible equity above 9%, Milan-based Unicredit said in a presentation of its strategic plan yesterday. As part of the three-year strategy, the bank plans to shed an additional 6,500 jobs, bringing the total to 14,000, as it aims for €1.7bn of annual cost savings.

Unicredit chief executive offi cer Jean Pierre Mustier, a 55-year-old French-man, in July took the helm of a lender burdened by a mounting pile of bad loans, record-low interest rates and It-aly’s longest recession since World War II. The bank had the slimmest capital buff er among those deemed important to the fi nancial system in the latest Eu-ropean stress tests.

While the bank expects annual costs to drop, it sees revenue rising by just 0.6% per year through 2019. Unicredit sees falling net interest income, with growth coming from fees and commis-sions, it said in a presentation in Lon-don.

“With almost no revenue growth in the foreseeable future, the plan is fo-cused on cutting costs and improving the asset quality and capital levels,” Luigi Tramontana, an analyst at Banca Akros, said in a note to clients. “The rights issue stands at the top of the ex-pectations, given the stronger-than-expected eff ort” to boost loan-loss re-serves.

Unicredit has struggled to build up capital, a task compounded by the bank’s complex structure after $60bn of acquisitions it made in the past decade under previous management. To simplify the bank and boost buff-ers, Mustier is disposing of assets in-cluding the Pioneer Investments fund management business and its Polish unit, Bank Pekao. It expects to raise about €8bn from those deals as well as the sale of its 30% stake in online lender FinecoBank.

“We are taking decisive actions to deal with our non-performing-ex-posure legacy issues to improve and support recurring future profi tability,” Mustier said in the statement.

Unicredit will focus on organic growth and doesn’t plan further ac-quisitions, the CEO said at a press con-ference, ruling out acquisitions. The company’s German unit, formerly Hy-povereinsbank, is a strategic asset in a country that is core to the bank, Musti-

er said, adding that he also isn’t looking to sell the company’s shipping business or other major operations.

The stock rose as much as 9.3% and was up 6.9% at €2.69 as of 11:37 a.m. in Milan. Unicredit has lost about half its value this year, valuing the bank at €15bn.

The capital increase will take place in the fi rst quarter of next year, Mustier said on a conference call with journal-ists. The CEO said he’s confi dent Banca Monte dei Paschi di Siena’s eff orts to raise capital will be resolved this month and will have “no impact” on his own bank’s fundraising.

The revamp will help Unicredit to in-crease its common equity Tier 1 ratio to more than 12.5% by 2019 from 10.8% at the end of September. The bank won’t pay a dividend for 2016 and targets a

20% to 50% payout ratio in subsequent years.

Part of the funds the bank is raising will cover losses from disposals of bad loans. Unicredit said it will set aside €8.1bn for non-performing loans as it plans to move €17.7bn of soured debt off its books for securitisation and a subsequent sale.

The bank said one-off s this quarter will total €12.2bn.

Fortress Investment Group and Pim-co will take majority stakes in the two units that will take on the non-per-forming loans, Unicredit said.

“We welcome the focus on cleaning up the balance sheet, although some may have hoped the extent of provi-sions could have delivered a larger up-front non-performing loan reduction,” Jeff eries Group LLC analysts including

Benjie Creelan-Sandford said in a note, repeating their buy rating. “Given lack of control over the external environ-ment, we think the focus on capital and costs is important.”

Banks across Italy are contending with expectations of low economic growth, pressure from European regu-lators to meet stricter capital standards and political instability following the fall of Matteo Renzi’s government. The prospect that Monte Paschi may need a state rescue if its capital plan fails has also aff ected confi dence in Italian lend-ers across the board.

The €4.7bn profi t target compares with a consensus of €3.9bn for 2019, according to the Jeff eries analysts. On a comparable basis the bank made €1.5bn in 2015.

The bank’s €1bn of 6.75% additional

Tier 1 bonds, the fi rst notes to take losses in a crisis, rose 2.5 cents to about 92 cents, near a 2016 high, according to data compiled by Bloomberg. They fell to as low as 70 cents in February.

Regulators are pushing Italian lend-ers to clean up their balance sheets, strengthen capital buff ers and cut an estimated €360bn in non-performing loans. Unicredit has sold more than €10bn of bad loans in the past three years and has set aside almost €25bn for loan-loss provisions since 2013.

Total net costs will drop to €10.6bn from €12.2bn in 2015, the bank said. The bank employed about 123,000 people at the end of September. Ex-cluding businesses the bank is sell-ing, headcount was 99,500 at the end of the third quarter, and will fall to 87,000 by 2019.

A logo is seen on the exterior of the Unicredit headquarters in Milan. The bank is targeting €4.7bn of net profit in 2019 with a return on tangible equity above 9%, it said in a presentation of its strategic plan yesterday.

Economists polled by Reuters had expected a 1.1% annual rise

CEO stakes future on strategy with zero severance payBloombergMilan

Unicredit chief executive off icer Jean Pierre Mustier said he’s staking his future on the bank’s new plan to revive profitability. He means it literally.The Frenchman who took over in July will receive no bonus this year and won’t get a severance payment if he leaves the bank, Unicredit said in a presentation of the plan in London yesterday. Mustier will also see his fixed salary cut by 40% to €1.2mn ($1.27mn) and will invest €2mn in the bank’s shares.“Some of you might know that once upon a time I was a French paratrooper,” Mustier told investors yesterday. “So I’m kind of hot on execution and discipline and I am staking my and my team’s future on making sure this plan is well executed and successful.”Mustier’s zero-severance contrasts with bonus packages received by other ex-chiefs of the bank. Predecessor Federico Ghizzoni, who was replaced

by Mustier following a slide in the share price and profitability, received a severance payment of about €5mn, according to the company. Alessandro Profumo, who had the job before Ghizzoni, received about €38mn, the most it ever paid to a single person, according to a company document.“Rest assured the management team of the bank will have strongly aligned interests with shareholders over a long-term incentive plan dovetailing the plan targets,” Mustier said.“We have developed a plan based on conservative assumptions that is pragmatic with tangible and achievable targets and which depends mostly on cost and risk management, levers which are firmly under our control.”Mustier, 55, worked for 22 years at Societe Generale before coming to Unicredit and running its corporate and investment bank from 2011 to 2015. The first non-Italian in the top job at the bank, he rejoined Unicredit from Tikehau Capital, an investment management company.Mustier: Hot on execution.

BUSINESS15Gulf Times

Wednesday, December 14, 2016

Trump picks Exxon Mobil CEO Tillerson for secretary of stateBloombergWashington

Exxon Mobil Corp chief executive offi cer Rex Tillerson will be nom-inated as president-elect Donald

Trump’s secretary of state, setting up a potential confi rmation battle with US lawmakers who have questioned the oilman’s relationship with Russian President Vladimir Putin.

“Rex knows how to manage a global enterprise, which is crucial to running a successful State Department, and his relationships with leaders all over the world are second to none,” Trump said in a statement yesterday.

Tillerson said that he will focus on restoring America’s credibility on the international stage.

“We must focus on strengthening our alliances, pursuing shared national interests and enhancing the strength, security and sovereignty of the US,” Tillerson said in the statement.

The oil executive beat out several high-profi le candidates for the job, including Trump loyalist and former New York City Mayor Rudy Giuliani, who took his name out of the running, and former Massachusetts governor Mitt Romney, who had been a Trump critic during the campaign. Romney announced on Monday that he was no longer in the running to be America’s chief diplomat.

Tillerson, an Exxon lifer and Univer-sity of Texas-trained engineer who hits Exxon’s mandatory retirement age of 65 in March, has accepted Trump’s of-fer. He would be the fi rst oil executive and only the second Texan to lead the State Department.

Tillerson would add to a cabinet in-creasingly full of millionaires and bil-lionaires, including Commerce Sec-retary nominee Wilbur Ross, whose fortune is estimated at about $2.9bn. Tillerson was paid $27.3mn in salary, bonus, stock awards and other com-pensation in 2015; his 2.6mn shares of Exxon common stock had a value of about $228mn as of early December.

Word of Tillerson’s possible nomi-nation was circulated even before his December 5 visit to meet the president-elect at Trump Tower partly to see how

the markets would react, according to a person familiar with the transition who requested anonymity because the information hasn’t been made public.

The prospect of a Tillerson nomina-tion has already drawn some objections from lawmakers in both parties, who expressed concern about his two dec-ades of dealings with Putin at a time when possible Russian interference in the US election is under scrutiny. That suggests that the Exxon executive could face a messy Senate confi rma-tion fi ght. Republican Senators John McCain of Arizona and Marco Rubio of Florida were among those who said they had questions about Tillerson’s dealings with Putin.

Confi rmation hearings may also be-

come a proxy fi ght over Trump’s posi-tion that Putin is an eff ective leader with whom he can reach agreements, a stance widely unpopular among law-makers in both parties.

Senator Bob Corker, the chairman of the Senate Foreign Relations Com-mittee, said yesterday in a statement that he congratulated Tillerson and looked “forward to meeting with him and chairing his confi rmation hearing.” Corker said in the statement that the committee will hold a hearing on Till-erson’s nomination in early January.

“Mr Tillerson is a very impressive individual and has an extraordinary working knowledge of the world,” said the Tennessee Republican, who had also been in the running for the post.

Added to the mix is a looming inquiry into Russian meddling in the election. The Washington Post reported on Fri-day that the CIA has told senators that Putin’s government was actively seek-ing to help Trump win the election — a step beyond an earlier fi nding that the goal was to undermine the credibility of the US political process.

President Barack Obama has ordered a full review of the evidence of Rus-sian hacking. Trump has rejected the idea that Russia has been pinpointed as the source of the hacks of Democratic Party servers.

David Mortlock, a former director of international economic aff airs on Obama’s National Security Council, said a Tillerson nomination would ex-

tend a trend of the US pursuing “eco-nomic statecraft” that began under Hillary Clinton, who Trump defeated in the presidential contest, when she was secretary of state.

“It ironically continues something that really started in the Clinton State Department which is economic state-craft and the fact that US CEOs, US companies have been some of our best diplomats overseas and the US brand is an important part of US diplomacy and US representation,” Mortlock said.

Kellyanne Conway, a top Trump ad-viser, said on Friday on Fox News that those who were considered by Trump also included Alan Mulally, the former CEO of Ford Motor Co, former CIA di-rector David Petraeus, Senate Foreign Relations Committee Chairman Bob Corker, former US Ambassador to the UN John Bolton, and Representative Dana Rohrabacher, a California Repub-lican.

“It was an honor to have been con-sidered for Secretary of State of our great country,” Romney said in a Fa-cebook post on Monday acknowledg-ing he would not be named to the job. “My discussions with President-elect Trump have been both enjoyable and enlightening. I have very high hopes that the new administration will lead the nation to greater strength, prosper-ity and peace.”

Reince Priebus, who has been named Trump’s chief of staff , said on Fox News yesterday that Trump chose Tillerson because of his interpersonal skills, his track record in business and a shared vision on international issues.

“At the end of the day, it’s putting America fi rst, and Donald Trump and Rex Tillerson had a connection on that issue,” said Priebus, who is currently chairman of the Republican National Committee. “We’re excited about to-day and what Rex Tillerson is going to bring to the table.”

Priebus also said Tillerson’s history with Putin demonstrated toughness.

“The truth is having relationships with people is not a bad thing,” he said. “We have a lot of problems in this world and we’re not going to solve those problems by pretending that people don’t exist.”

Tillerson says he will focus on restoring America’s credibility on the international stage.

IMF demands more Spain reforms to sustain ‘impressive’ recoveryBloombergMadrid

Spain must make further eff orts to reduce long-term unemploy-ment and continue its budgetary

adjustment process, the International Monetary Fund said, while noting that the nation’s economic recovery re-mains robust.

In its concluding statement after its assessment of the country’s economic performance, the Washington-based

institution said Spain witnessed an “impressive recovery” helped by re-forms, fi scal loosening and the Euro-pean Central Bank’s unprecedented monetary stimulus. Despite the opti-mistic tone, it warned that vulnerabili-ties stemming from long-term unem-ployment, elevated public debt and low productivity remain.

“It is critical to reduce the remaining vulnerabilities and structural weak-nesses,” the IMF said in a statement published yesterday. “Preserving the reform achievements is therefore of

utmost importance but Spain needs to go further if it is to sustain the dynamic economic performance.”

The report comes as the government of Prime Minister Mariano Rajoy moves to approve a budget for next year that can reduce the nation’s defi cit while opposition groups reject further cuts in a highly fragmented parliament that would require a cross-party agreement. The IMF noted that carefully designed adjustment could be both growth- and job-friendly, while pointing out that there is scope to increase environmen-

tal duties and reduce loopholes in the tax system that can prop up revenue. On the expenditure side, the IMF sees room for more effi cient reviews of how funds are spent in areas such as health-care and education.

Serial defi cit off ender Rajoy is seek-ing to meet his budget reduction goal for the fi rst time since arriving in of-fi ce in 2011 after narrowly escaping a fi ne from the European Commission last year. The government is plan-ning on raising close to €5bn ($5.3bn) from companies and by hiking taxes

on items including alcohol and tobacco While the government insists that will be enough to meet its defi cit reduction goal for 2016, further adjustments may be needed next year.

Adding to its recommendations, the IMF said both long-term and youth unemployment continue to be a drag on growth and productivity, noting that almost 60% of those Spaniards with-out a job have been out of work for more than a year. Though unemployment has fallen rapidly over the past years, it re-mains the second highest in the EU.

To tackle the problem, the IMF called for “urgent improvement” in the co-ordination of labour active policies between the central government and regions, while noting that the duality of the labour market — which segre-gates workers by contract type often discriminating temporary workers in favour of permanent staff — could be improved by making permanent hiring more attractive. That could be achieved by providing more legal fl exibility for fi rms over work terms and removing administrative hurdles over dismissals.

Trump says no deals while in office; sons will run companyBloombergWashington

President-elect Donald Trump gave his first clues as to how he’ll step away from his businesses, saying he would put his two sons Don and Eric in charge by Inauguration Day January 20 but off ering no information about his own role.In a series of tweets late Monday night, Trump said he would make no new business deals during his time in the White House. The tweets came on the same day Bloomberg first reported he was postponing a December 15 news conference to announce his business plan. He will instead make an announcement sometime next month before his inauguration, according to transition off icials familiar with the deliberations.He also promised he would hold a press conference “in the near future to discuss the business, Cabinet picks and all other topics of interest. Busy times!”Trump had planned to make the announcement this week but wants more time because he’s been occupied with filling out his cabinet and top administration posts, according to the off icials, who spoke on condition of anonymity to discuss internal deliberations.The president-elect has consulted various legal specialists as well as Don McGahn, his pick for White House counsel, about how to deal with his organization, the off icials said. A new date for the announcement hasn’t been set, but it will be before his inauguration on January 20, they said.“Even though I am not mandated by law to do so, I will be leaving my busineses before January 20th so that I can focus full time on the Presidency,” Trump said on Twitter on Monday night. “Two of my children, Don and Eric, plus executives, will manage them. No new deals will be done during my term(s) in off ice.”

Trump’s latest tweets did not mention what role his daughter Ivanka and her husband Jared Kushner might play in either his administration or his businesses. Kushner is one of Trump’s most trusted advisers; and accompanied Trump on his post-election visit to the White House and spoke with President Barack Obama’s aides. The couple has been house hunting in Washington, CNN reported December 5.Trump has about $3.6bn of assets and $630mn of debt held in more than 500 companies, according to a July analysis by Bloomberg. His golf developments, tenant rosters, loans and licensing arrangements tie him to businesses and governments in 20 countries. Those ties risk hobbling his presidency with questions about motives for his policy and may raise constitutional issues.His businesses have been the subject of bipartisan concern since winning the election, and on November 30 he said via Twitter that he would have a news conference December 15 to announce his plans for dealing with potential conflicts of interest. The president-elect tweeted that he would be leaving his business “in total” to focus on the White House. He added that “legal documents are being crafted which take me completely out of business operations,” suggesting he might not be participating in day-to-day to decisions but also didn’t necessarily suggest he was planning a sale.Among those who’ve called on him to sell his companies to avoid conflicts are the ethics lawyers for the George W Bush and Barack Obama administrations. Trump’s refusal to release his tax return has also added to concerns about his commitment to transparency. His next personal financial disclosure, a less detailed document, isn’t due until after he takes off ice.Trump said in an interview with the New York Times last month that sitting presidents “can’t

have a conflict of interest” because the laws don’t apply. While they are exempt from many government ethics laws, some do apply, as does a constitutional prohibition on income and gifts from foreign governments.Even transferring ownership to his adult children is unlikely to quiet Trump’s critics. Norman Ornstein, a political scientist at the American Enterprise Institute, a conservative policy group in Washington, has said that Trump has a self-interest in enriching his children. Brad Malt, a partner at Ropes & Gray LLP in Boston, who managed Mitt Romney’s blind trusts during his time as Massachusetts governor, has said that Trump must sell.Already, Trump’s daughter Ivanka, an executive in his organisation, sat in on her father’s meeting with Japanese Prime Minister Shinzo Abe and participated in a phone call with Argentine President Mauricio Macri. Two other children, Don Jr and Eric, also are Trump Organization executives who also have acted as informal advisers to their father throughout his run and the transition.Trump has also met with Indian business partners since Election Day, and his partner in the Philippines was in Trump Tower while he was talking with potential appointees. The lease for his hotel in Washington appears to bar elected off icials from profiting from the arrangement.Trump’s transition team said December 6 that the president-elect had sold all his stock holdings in June, though it gave no details. Trump said the stock ownership was “a conflict of interest.”Trump has a variety of business interests beyond the real estate and licensing deals for which he’s best known. For example, he’ll remain an executive producer on the upcoming season of “The New Celebrity Apprentice,” the reality show in which he once starred. The show is broadcast on Comcast Corp’s NBC, which is regulated by

the Federal Communications Commission, whose leaders are political appointees. Trump has said he won’t spend any time working on the show, though he’ll be paid and get credited.Estate planners say there are several structures Trump could use to create formal distance between himself and his companies while keeping them in the family. The president-elect could put his businesses into a limited-liability company and sell it to a trust for his children in exchange for a promissory note that would ensure him regular interest payments, said David Scott Sloan, co-chairman of Holland & Knight LLP’s national private-wealth practice. Alternatively, a bank could finance the deal by paying Trump cash and receiving the payments in his stead.That wouldn’t solve concerns that Trump would work to benefit his children, or concerns that he’d talk to them about the business. For that latter problem, the family could appoint an independent trustee charged with enforcing strict confidentiality rules, said John Olivieri, a partner at White & Case LLP in New York.Previous US presidents and vice presidents have also grappled with how to deal with potential conflicts. Dick Cheney sold his shares in Halliburton Co, where he’d served as chairman and chief executive off icer, prior to taking off ice. Jimmy Carter sold his family peanut farm in Georgia. Nelson Rockefeller subjected himself to congressional hearings and to investigation by 400 agents from agencies including the Federal Bureau of Investigation and the Internal Revenue Service.A Bloomberg National Poll conducted December 2-5 found that two-thirds of US adults think Trump needs to choose between being president or a businessman. But slightly more — 69% — believe it goes too far to force him and his family to sell their business empire to avoid conflicts of interest.

SAS to cut 1,000 jobs as fuel prices, competition to hamper earnings

BloombergFrankfurt

SAS plans to cut 1,000 adminis-

trative jobs and double its cost-

savings target as the Nordic

airline prepares for rising fuel

prices and intensifying competi-

tion that’s lowering fares and

hampering earnings growth.

Profit in the fiscal first quarter,

which started November 1,

will decline from a year earlier

following “more demanding”

trading conditions in the

autumn autumn, Stockholm-

based SAS said yesterday in a

statement. The airline will try to

reduce spending on operations

by 1.5bn kronor ($164mn) from

2017 to 2019, versus an earlier

target of 800mn kronor, with

the job cuts amounting to about

9.3% of its workforce. It’s also

considering establishing airline

operations outside of its home

markets of Sweden, Norway and

Denmark.

The current fiscal year will be “a

year of many challenges,” chief

executive Rickard Gustafson

said in the company’s annual

report. “While our 70-year his-

tory has contributed to our

strong position, it also means

that structures have been built

that are no longer competitive.

Improving SAS’s eff iciency is a

crucial and existential issue for

the company.”

SAS is focusing on business

travellers seeking a dense

route network and high-quality

services, and is expanding its

long-distance fleet as rivals

including Norwegian Air Shuttle

ASA tap demand for cheaper

tickets in Europe and abroad

for leisure flying. Norwegian is

recruiting crews in places as

remote as Thailand, and earlier

this month received clearance

to operate US routes via one

of its subsidiaries, which will

accelerate its expansion.

Britain sells further 1% of Lloyds shares

ReutersLondon

Britain cut its stake in Lloyds Banking Group to below 7% yesterday in a

fresh attempt to return the lend-er to full private ownership over the next year.

UK Financial Investments Lim-ited (UKFI), which manages the government’s stake in the bailed-out bank, resumed share sales in October, having halted them al-most a year ago because of market turbulence.

Lloyds said in a statement the government has reduced its stake in the bank by about 1 per-centage point to 6.93%. Lloyds was rescued with a £20.5bn tax-payer-funded bailout during the 2007-09 fi nancial crisis, leaving the state holding 43%.

Britain’s fi nance ministry said it has now recovered over £17.5bn ($22.2bn) of the £20.3bn taxpayer injected into the bank during the fi nancial crisis, once share sales and dividends re-ceived are accounted for.

Finance Minister Philip Ham-mond is under pressure to recoup cash from its stake in Lloyds and fellow bailed-out bank Royal Bank of Scotland to relieve a likely shortfall in the nation’s fi nances.

BUSINESSWednesday, December 14, 2016

GULF TIMES

Bull run continues on QSE on oil; index nears 10,400By Santhosh V PerumalBusiness Reporter

There was a sustained bullish mo-mentum on the Qatar Stock Ex-change for the sixth straight ses-

sion yesterday and its key index inched near the 10,400 levels as Brent crude was on a stronger footing on the back of oil production cut from January 1, 2017.

Buying was pronounced, especially in telecom, banking and insurance counters, which lifted the 20-stock Qatar Index 0.67% to 10,397.58 points.

The bullish outlook of foreign in-stitutions helped instil confi dence in the bourse, whose year-to-date losses were contained at mere 0.3%, having widened to about 7% in the recent past.

Trade turnover and volumes were on the decline in the market, where bank-ing, realty and industrials sectors to-gether accounted for about 84% of the total volume.

Large cap equities saw higher de-mand to outperform the bourse, where Gulf institutions turned bearish and local and non-Qatari retail investors became increasingly profi t takers.

Islamic stocks were, however, seen declining vis-à-vis gains in the other indices in the market, where domestic institutions’ net buying weakened.

Market capitalisation gained more than QR4bn or 0.79% to QR559.28bn as large, micro and small cap equities added 0.99%, 0.17% and 0.05% re-spectively, while midcaps fell 0.28%. The Total Return Index rose 0.67% to 16,822.6 points and All Share Index by 0.61% to 2,854.5 points, while Al Rayan Islamic Index fell 0.18% to 3,824.64 points.

Telecom sector saw its index gain 1.53%, banks and fi nancial services (0.91%), insurance (0.83%), transport (0.38%), real estate (0.34%) and in-dustrials (0.33%); whereas consumer goods shrank 0.36%. About 49% of the traded stocks extended gains with major movers being QNB, Commercial Bank, Ooredoo, Qatar Insurance, Doha Bank, Ezdan, Qatar First Bank, Indus-tries Qatar, Aamal Company, Qatar Electricity and Water and Nakilat.

Nevertheless, Mesaieed Petrochem-ical Holding, Gulf International Serv-ices, Vodafone Qatar, Mazaya Qatar, Qatar Islamic Bank, Masraf Al Rayan, United Development Company, Dlala, Islamic Holding Group and Qatari In-vestors Group were among the losers.

Non-Qatari institutions turned net

buyers to the tune of QR57.18mn com-pared with net sellers of QR10.39mn on December 12.

The GCC (Gulf Cooperation Coun-cil) individual investors were also net buyers to extent of QR0.3mn against net sellers of QR0.04mn on Monday.

However, the GCC institutions turned net sellers to the extent of QR11.21mn compared with net buyers of QR40.8mn the previous day.

Domestic institutions’ net buying weakened perceptibly to QR16.25mn against QR23.12mn on December 12.

Local retail investors’ net profi t booking strengthened to QR53.49mn compared to QR47.36mn on Monday.

Non-Qatari individual investors’ net selling increased to QR9.01mn against QR6.12mn the previous day.

Total trade volume fell 26% to 11.09mn shares, value by 25% to QR338.54mn and deals by 24% to 4,507.

There was a 63% plunge in the insur-ance sector’s trade volume to 0.11mn equities, 68% in value to QR4.16mn and 68% in transactions to 82.

The telecom sector’s trade volume

plummeted 53% to 1.2mn stocks, value by 66% to QR15.59mn and deals by 49% to 307.

The industrials sector reported 53% shrinkage in trade volume to 1.53mn shares, 43% in value to QR80.47mn and 32% in transactions to 971.

The real estate sector’s trade volume tanked 27% to 3.63mn equities, value by 25% to QR62.28mn and deals by 32% to 784.

The market witnessed 26% decline in the transport sector’s trade volume to 0.28mn stocks and 10% in value to

QR10.43mn but on less than 1% rise in transactions to 220.

The consumer goods sector’s trade volume was down 8% to 0.23mn shares, value by 37% to QR8.88mn and deals by 20% to 264.

However, the banks and fi nancial services sector saw 26% surge in trade volume to 4.12mn equities and 12% in value to QR156.73mn but on 3% fall in transactions to 1,879.

In the debt market, there was no trading of treasury bills and govern-ment bonds.

The QSE’s market capitalisation gained more than QR4bn or 0.79% to QR559.28bn yesterday as large, micro and small cap equities added 0.99%, 0.17% and 0.05% respectively, while midcaps fell 0.28%.

Qatar cost of living rises 0.1% m-o-m in NovemberBy Santhosh V PerumalBusiness Reporter

Increased expenses towards transport, recreation and clothing led Qatar’s cost of

living, based on consumer price index (CPI), rise 0.1% this No-vember compared to that in the previous month, according to offi cial estimates.

The annual CPI infl ation has however risen 2% year-on-year (y-o-y), mainly on costlier transport, recreation, and hous-ing and utilities, said the fi gures released by the Ministry of De-velopment Planning and Statis-tics.

Transport, which has 14.59% weightage, saw its group index expand 0.8% in November this year compared to the previ-ous month’s level; while it also showed the highest 5.8% in-crease y-o-y. The sector has seen the dismantling of the ad-ministered prices in petrol and diesel.

Recreation and Culture, which have 12.68% weightage in the CPI basket, saw its index gain 0.7% in November 2016 against the previous month’s level and the index had expanded 5.7% y-o-y.

Clothing and footwear, which carry 5.11% weight, saw its group index rise 0.3% month-on-month and it was up 0.6% against November 2015 level.

Restaurants and hotels, which have 6.08% weight, saw a mar-ginal 0.1% increase month-on-month in group index; whereas it reported a fall of 1.7% y-o-y.

However, Food and beverage, which has a weight of 12.58%, saw its group index decline 1.1% month-on-month in Novem-ber 2016 and it had reported a sharper fall of 3.4% y-o-y.

The index of Miscellaneous Goods and Services, which have 5.69% weightage, shrank 0.4% in November this year compared to the previous month, but over-all it shot up 3.7% y-o-y.

Although Furniture and household equipment, which have 7.7% weightage, witnessed a fl at path month-on-month in November 2016, it registered a faster 1.8% gains y-o-y.

Similarly, Housing, water, electricity and other fuels – with a weight of 21.89% — also saw its index remain unchanged in Oc-tober this year against the previ-ous month’s level. The index is however up 1.8% y-o-y.

The CPI of September 2016, excluding “housing, water, electricity, gas and other fuels” showed an increase of 2% y-o-y and it was up 0.1% month-on-month.

Health, which carries 1.79% weightage, witnessed fl at path month-on-month in November 2016, while the index had fallen 0.8% y-o-y.

Education, with 5.75% weightage, also treaded a fl at course in November this year month-on-month but reported 3% expansion y-o-y.

Communication, which car-ries 5.87% weight, saw its group index also stay unchanged in November 2016 compared to the previous month’s level; but overall it was up 0.1% y-o-y.

Tobacco, which has 0.27% weight, was unchanged both y-o-y and month-on-month in November this year.

Smart grids’ deployment may help Qatari economic diversification, says Booz Allen Hamilton reportDeploying smart grids can help Qatari economy diversify away from oil and gas, a new report has shown.According to Booz Allen Hamilton, smart grids can help lay the foundations for energy and cost-saving applications and renewable energy development in the Middle East and North Africa (Mena) region.As Qatar looks towards attaining its National Vision 2030, developing smart cities and harnessing alternative sources of energy production, the Solar Smart-Grid Project launched by the Qatar Foundation (QF) is paving the way for the adoption of solar power as a key energy source for the country, it said.In its latest report ‘Switched on - how Mena can build smart grid success’ Booz Allen states that customising smart grid strategies to suit an organisation’s objectives and mitigate challenges, while focusing on business transformation will determine the successful adoption of smart grids in Qatar.Smart grids are a convergence of the electric

power, communications and IT industries, built on the foundations of advanced metering infrastructure, or AMI — an integrated system that enables two-way communication between utilities and their customers.Using a blend of classic electric grid with information, communication and control technologies, smart grids help utilities companies overcome many of the operating and customer service obstacles that stand in their way, thus delivering results for both companies and consumers.The result is greater control over the production, transmission, distribution and retail of electricity, as well as increased eff iciency along with the reduced consumption and cost of energy.Dr Walid Fayad, executive vice president at Booz Allen Hamilton Mena, said, “Utilities have traditionally been slow to adopt digital technologies, focusing instead on the operations technologies that enable their core business of generating, transmitting and distributing power. In doing so, they have

typically taken a reluctant approach to IT, viewing it as a necessary evil for customer management and revenue collection.“Increasingly, however, we are seeing that Mena utility companies are becoming open to employing smart grid technologies to manage their operations more eff iciently. Smart grids provide an opportunity for the region to modernise its infrastructure and lay the foundations for renewable energy development which can help economic diversification.”The benefits of a smart grid are manifold, including opening up new opportunities for renewable energy production and storage. They also help cost-cutting, system upgrading and maintenance, and improve customer service to end-consumers. Furthermore, smart grids introduce new metering, billing and payment methods, as well as greater access to, and accuracy of, data and information for customers and utilities alike.Several developed countries are already leveraging the smart grid to fulfil a number of

key priorities, which relate primarily to energy eff iciency and reliability. Utilities in North America, for example, have focused on distribution automation and transmission modernisation to fulfil their goals.But alongside any digital innovation come challenges and it is imperative that utilities companies fully understand these before they develop their smart grid strategies.Dr Adham Sleiman, vice-president, Booz Allen Hamilton (Mena) said, “Utility companies must remember that smart grid is not a one-size-fits-all solution. To optimise the investment that utilities make, the smart grid must be tailored to address the specific goals and challenges faced by each organisation.” “For the region’s utilities to be successful in their smart grid strategies, they must take a more eff ective approach to technology selection, proofing and piloting, and focus eff orts on developing solid strategies that take smart grid ambitions beyond the pilot, making tangible and lasting impact on the ground,” Dr Sleiman added.

GCC projects market expected to record $120bn contract awards in 2016: MeedThe Gulf Cooperation Council (GCC) projects market is expected to record at best $120bn worth contract awards in 2016, which will be down at least a third over that in the previous year, and the outlook for 2017 appears to be “bleak”, according to Meed.With the year nearly done, the GCC countries have recorded just $96bn worth of awarded contracts compared with $177bn in 2015, said ‘The 2017 GCC Projects Forecast and Review’ research report, published by MEED Insight.“The sharp slowdown, which is set to make 2016 the worst year for project activity since 2004, has come as governments have reacted to lower revenues by severely reducing project expenditure,” it said.Between the first and third quarter of this year, the value of contracts awarded in Qatar was estimated at $10bn compared to $30bn in the UAE, $20bn in Saudi Arabia,

more than $10bn in Kuwait and $5bn each in Oman and Bahrain.Qatar and Saudi Arabia have been worse hit, posting less than half the contract awards they awarded last year, as project activity levels were low in the two countries; while Dubai and Bahrain, the two markets with the lowest oil reserves, saw their activity levels either been maintained or even increased.“With more than $18bn and $6bn worth of contract awards in 2016 to date respectively, Dubai and Bahrain have been able to prosper this year because they are not as dependent on the oil price,” said Ed James, Meed Projects Director of Content and Analysis.The report, which draws on key macroeconomic data, and the latest updates from 8,000 live projects on the region’s leading projects tracking service, Meed Projects, also highlights that those looking for a pick-up

in activity in 2017 may well be disappointed. “Based on the current project pipeline, at best we see up to $152bn worth of contract awards in the GCC next year or at worst just $112bn,” said James, who is also the author of the report.In Dubai, key project clients such as Emaar and Nakheel have developed their own income streams independent of government expenditure and have therefore not been as impacted by reductions in state spending, while Bahrain has been boosted by financial assistance from its neighbours, according to him.He said how the market performs would ultimately depend not just on the oil price but also governments’ desire to improve activity levels and streamline procurement processes. “If they do not, 2017 will continue to be a struggle for many project firms,” he added.

Saudi, UAE retreat ahead of likely US rate hike

ReutersDubai

Stock markets in the Gulf pulled back yesterday as investors turned their attention to an expected US interest rate hike today and the upcoming Saudi Arabian state budget for 2017.In Riyadh, the index declined for a second straight session, falling 0.8%. Trading volume shrank by roughly half from Monday’s very large amount. Dubai’s main index, which rose on Monday to its highest level this year and above technical resistance on its August peak of

3,624 points, pulled back 0.9% to 3,625 points. Trading volume shrunk by roughly a fifth from the previous session but held well above this year’s average, suggesting foreign investors remain interested in the market.Abu Dhabi’s index closed down 0.2% but well above its session low. Trading volume shrank by roughly two-thirds from Monday. The main drag came from blue chips with Union National Bank closing 1.1% lower. Elsewhere in the Gulf, the Kuwait’s index rose 0.6% to 5,672 points, the Bahrain index slipped 0.2% to 1,188 points and the Oman index added 0.6% to 5,732 points.