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Kim shifts IMF unveils

gear to new plan
economy to fight graft

Monday, April 23, 2018 TOP FINANCIAL RESULTS: Page 18

Sha’baan 7, 1439 AH
Effects of blockade
GULF TIMES fade on resilience
of Qatar economy,
strong leadership:

BUSINESS Aamal Company

Hedge fund
investors
pour into oil
as firms see
surge to $80
Bloomberg
London

H
edge funds investing in oil are
luring capital at the fastest
Sheikh Abdul Rehman, Sheikh Fahad and Seetharaman: Continuing to perform consistently. pace in more than a year.
With crude climbing to levels not
seen since 2014, commodity funds
have recovered the client outflows they
suffered last year. And if firms such as

Doha Bank posts 5% rise

Westbeck Capital Management and
Commodities World Capital are cor-
rect about prices soon exceeding $80
a barrel from about $68 currently, then
the jump in allocations may just the
beginning.
Until Friday everything seemed to
point to oil extending its gains, with

in Q1 profit to QR381mn
confidence in the global economy
building and geopolitical tensions and
production shortages showing no signs
of going away. Then US President Don-
ald Trump slammed Opec on Twitter,
saying prices are artificially high and
will not be accepted. Prices slipped

D
oha Bank has reported about 5% year-on-
year growth in net profit to QR381mn in
the first three months of this year.
“This is another outstanding result and is
clear demonstration that Doha Bank contin-
ues to perform consistently,” said its chair-
man Sheikh Fahad bin Mohamad bin Jabor
al-Thani.
The bank’s net interest income grew about 8%
to QR560mn. Total assets witnessed more than
3% expansion to QR93.6bn with net loans and
advances increasing about 1% to QR59.9bn.
The lender’s customer deposits showed a
yearly growth of 10% to QR59.3bn, indicating
its strong liquidity. “The bank has become ex-
tremely strong over the years with total equity,
as on March 31, 2018, at QR12.4bn,” Doha Bank
managing director Sheikh Abdul Rehman bin
Mohamad bin Jabor al-Thani said.
Through the strategic utilisation of the share-
holders’ funds by way of increasing the perform-
ance levels, the bank’s return on average share-
holders’ equity stood at 16.3%, which is one of
the best in the industry, he said.
The bank, given the scale of its operations, has
achieved a very high return on average assets at
1.63% at the end of March 31, 2018, which, ac-
cording to Sheikh Abdul Rehman, is a clear dem-
onstration of the effective utilisation of share-
holders’ funds and optimum asset allocation
strategies.
During the quarter, the annual general as-
sembly meeting had agreed to issue debt notes
‘bonds’ through the euro medium term note
programme and reduce the minimum amount
per issuance under the commercial papers pro-
gramme to $1mn from $50mn.
“Despite the challenging market conditions,
Doha Bank’s strong performance throws light
UDC, QNB sign letter
on its superior products and services, ongoing
customer demand, capitalising on market syner-
gies,” its group chief executive Dr R Seetharaman
said.
On the recently introduced exchange traded
fund (QETF), he said, “We believe it hold im-
mense promise and open a gateway to the Qatari
market for global investors. We expect this to the
first of many future products focused on Qatar.”
In line with its international expansion, Doha
Bank launched its third Indian branch in Chen-
nai. The bank has also established a representa-
tive office in Sri Lanka.
19 cent a barrel. Still, these funds are
“desirable in times of expected market
volatility” and will probably continue
to see inflows in 2018, said Peter Lau-
relli, global head of research at data
provider eVestment.
Investors allocated $3bn to com-
modity-focused hedge funds from
January through March, the most since
the third quarter of 2016, according
to eVestment. Last year they pulled
$680mn from the strategy in the first
net outflows since 2014.
Westbeck’s energy fund recovered
earlier losses from this year — includ-
ing a double-digit decline in February
— and is now up 11% through April 19,
according to chief operating officer Jari
Habib. The fund lost 17% in 2017. The
firm sees WTI crude climbing to more

of intent to finance than $85 a barrel in the second half.

Commodities World Capital is about
flat this year through April 19 after re-
covering losses that saw it drop 4.4%

Gewan Island project in the first quarter. It predicts oil will

United Development Company (UDC), one
of Qatar’s leading shareholding companies
and master developer of The Pearl-Qatar, and
QNB have signed a letter of intent to work on
providing future financing required for the
development of Gewan Island project.
Ibrahim Jassim al-Othman, UDC president and
chief executive; and Ali Ahmed al-Kuwari, QNB
Group chief executive, cosigned the agreement
on the sidelines of UDC’s participation in
Cityscape Qatar 2018.
“This agreement with QNB lays the foundation
for UDC’s growth plans and the expansion of
its operations base through QR2.5bn worth
of investments in the development of Gewan
Island,” al-Othaman said.
Al-Othman and al-Kuwari shake hands after signing the deal. The project falls in line with UDC’s efforts to
provide leading real estate products in the
local market that meet the needs of investors
and residents, he added.
“We are confident that this agreement will
help to further UDC’s objectives in terms of
financing its expansion plans in Gewan Island,
which will positively impact its customers
and help the company achieve its objectives
of maintaining a leading position in the local
market,” according to al-Kuwari.
Gewan Island, UDC’s latest real estate project,
spans across 400,000sqm and is located
adjacently to The Pearl-Qatar. The island, which
will be completed in 2021, features residential
units, entertainment facilities, retail outlets,
restaurants and cafes within a vibrant, modern
and integrated community.
hit the mid-$80 area by the second
half, though chief investment officer
Luke Sadrian said it’s better to “trade
around the volatility whilst maintain-
ing a core bullish view” than to simply
buy and hold.
West Texas Intermediate crude
climbed in January, only to plunge 13%
in about two weeks – leading to par-
ticularly sharp losses by some bullish
hedge funds in February. Now it’s on
the rise again and is more than double
the price reached in early 2016 when
concerns about a world economic
slowdown were at their worst.
“As the direction of oil is very hard
to predict, it’s difficult for manag-
ers in this sector to deliver consistent
performance,’’ said Michael Gerber,
head of research at investment adviser
Fundana SA’s fund of funds.

QDB Investment Forum looks to support Qatar entrepreneurs, diversification

As part of its commitment to promote
innovative Qatari entrepreneurs
and diversify the economy, Qatar
Development Bank is launching the
“QDB Investment Forum”, on May 1 at
Hilton Doha.
During the forum, Qatari entrepreneurs,
both startups as well as established
ones, will meet with local and
international investors, including
international venture capital (VC) funds
and QDB.
The bank will reflect upon its
achievements in contributing towards
the development of an entrepreneurial
ecosystem in Qatar during the event.
QDB has been offering numerous
unique schemes aimed to further
supporting Qatar’s growth momentum.
With these efforts, QDB intends to
establish itself as the catalyst in the
economic development of the country.
The bank, through its Investment
Department, will be signing four
international funds, to further support
the local entrepreneur ecosystem.
The one-day event, will include a
demo day/pitching session for the
entrepreneurs who have raised
investments from QDB under the
Seed Funding programme and the
SME Equity Programme, as well as
interesting discussions around varied
entrepreneurial related topics, led by
subject matter experts. It is described
as a great opportunity to connect with
the other entrepreneurs as well as
international and local investors.
QDB CEO Abdul Aziz bin Nasser al-
Khalifa stated that the bank’s overall
strategy is to become an investing hub
in Qatar, by attracting global venture
capital firms to set up their base in
Qatar in order to facilitate the exchange
of knowledge, service, and expertise
for the Qatari SMEs in a fast way and at
desirable prices.
“QDB’s plan is to transform Qatar
as the preferred destination for
entrepreneurs, mentors, investors,
supporters and other important
constituents to meet and exchange
goods and services, in a fruitful
collaborative environment and liquid
markets. The purpose is to create a
successful entrepreneurial ecosystem,
as well as enable Qatari companies of
all sizes to become strong and capable
of competing globally,” according to a
statement.
With a view to extending hands of
partnership, QDB will be launching
two services, the “Fund of Fund
(FoF)”, which is the process of yellow
service investing into VC funds with
the purpose of getting exposure to
international companies, bring them
potentially to Qatar, set up their offices
here and ensure that they actively
contribute to the entrepreneurial
ecosystem, ensure sufficient liquidity
and help Qatar startups scale up
globally. Through this service, the
bank’s long-term goal is to create
a significantly large and diversified
investment portfolio in VC funds so that
it can list the shares of yellow services
as fund of funds.
In yet another initiative, through
“Access to International Capital”
service, the bank’s incubated or
financed Qatari star companies will
get access to present their ideas and
concepts to international funds and
seek additional follow on investments/
financing.
QDB also has a set of existing products
and services to empower SMEs.
Through its Qatar Exchange Venture
Market Programme (QVEM), QDB aims
to support potential SMEs wanting to
list their businesses on the Qatar Stock
Exchange venture market. Additionally,
the bank offers the SME Equity
programme to support economic
diversification by providing growth
capital to Qatari entrepreneurs and
deploying investments in innovative
small enterprises and high-potential
medium enterprises.
QDB provides ITHMAR (seed
funding), a Shariah-compliant equity
programme. An integrated and
comprehensive approach, it offers
entrepreneurs the required funds to
establish business in Qatar, thereby
building a new generation of Qatari
entrepreneurs.
All these special offerings and schemes
will equip global companies, local
stakeholders such as governmental
bodies, startups, SMEs, investors,
university students, etc., to expand
their network and grow their portfolio.
 Gulf Times
2 Monday, April 23, 2018
BUSINESS
Theme park owner’s scary Dubai
stock slump may be set to deepen
Bloomberg
Dubai
Theme-park owner DXB Entertainments,
whose stock has tumbled more than 30%
this year, could be poised for a deeper
slide starting next month.
The shares have slumped almost four
times further than the drop in Dubai’s
equity benchmark as the operator of
a Legoland and a Bollywood-inspired
attraction reorganises debt and visitor
numbers fall short of targets. That may
worsen if the decline in market value
prompts MSCI Inc to cut the stock from
its emerging-market index next month.
Potential outflows triggered by index
omission run to about $33mn, said
Mohamad al-Hajj, equities strategist at the
research arm of EFG-Hermes Holding.
The park operator, the second-worst
performing stock in Dubai this year, is
among 11 UAE companies included in the
MSCI Emerging Markets Index, a reference
for many money managers who track
stocks in developing nations. Its market
capitalisation is now about 33% below the
threshold required by the index compiler,
al-Hajj said.
“Given the price move year-to-date, it is
safe to assume that the news is largely in
the price,” he said. “But, depending on the
liquidity on the actual trading day of the
event, we could see some more weakness
before a recovery,” he said, referring to
any index change.
DXB Entertainments declined to comment
on a potential exclusion by MSCI. Its
shares have dropped almost 75% from
their 2016 peak, before the company
opened Dubai Parks & Resorts, its main
attraction.
While the number of park visitors fell
short of projections last year, it was 45%
higher in the first quarter than the same
period in 2017, the company said on April
12. It is keeping to a plan for a Six Flags-
branded theme park opening in Dubai in
2019, chief executive officer Mohamed
Almulla said last month.
MSCI is expected to announce its semi-
annual index review on May 14, with
changes effective from May 31.
Abraaj said to
delay hospital
IPO as firm
pursues
CIRA disposal
Bloomberg
London
A
braaj Group, roiled by allegations of misused
money, is delaying the initial public offering
or sale of its North African hospitals business
while it seeks to resolve issues with investors, accord-
ing to people with knowledge of the matter.
The Middle East’s largest buyout firm will delay
the sale, which was originally planned for the first
half, until October, the people said, asking not to be
identified because the matter is private. Separately,
the company is now in advanced talks to dispose of its
35% holding in Egyptian school operator CIRA, some
of the people said.
The Dubai-based firm plans to sell the school stake
back to CIRA’s family shareholder, though no final
decisions have been taken and a deal may not happen,
the people said. A spokeswoman for Abraaj declined
to comment, while CIRA officials weren’t immedi-
ately available to comment.
Abraaj is cutting jobs and halting fresh invest-
ments after allegations that it misused funds in a
$1bn healthcare fund. It’s also returning capital to
investors in a new global fund. The company, which
in February conducted an internal review and con-
cluded that money in its health fund had been prop-
erly accounted for, is reorganising its structure – with
founder Arif Naqvi ceding control of the fund man-
agement business.
Abraaj hired Citigroup Inc and EFG-Hermes Hold-
ing SAE to run the sale or IPO of its North African
hospitals business, people familiar with the matter
said in January. The business, which includes about a
dozen hospitals and clinics in Egypt, Tunisia and Mo-
rocco, is worth as much as $500mn, the people said
at the time.
CIRA is the largest K-12 education group in Egypt
with 24 majority-owned schools operating under the
“Futures” brand, according to Abraaj’s website. The
buyout firm invested in the business in 2014.
South African food and household products maker
Libstar Holdings Pty Ltd, in which Abraaj holds about
a 71% stake, this month said it plans to raise about
1.5bn rand ($126mn) to repay debt and fund expan-
sion by selling new shares on the Johannesburg Stock
Exchange.

Exxon faces setback in
Iraq as oil and water mix
Reuters
London/Basra
T
alks between ExxonMobil
and Iraq on a multi-billion-
dollar infrastructure con-
tract have reached an impasse, Iraqi
officials and two industry sources
said, in a potential setback to the oil
major’s ambitions to expand in the
country.
More than two years of nego-
tiations on awarding the US firm a
project to build a water treatment
facility and related pipelines needed
to boost Iraq’s oil production capac-
ity have hit difficulties because the
two sides differ on contract terms
and costs, the officials and sources
told Reuters.
Unless the differences can be re-
solved, the project could be awarded
to another company in a tender, the
officials said, without elaborating on
the points of dispute.
Losing the contract could deal a
blow to Exxon’s broader Iraqi plans,
as it would be handed rights to de-
velop at least two southern oilfields
— Nahr Bin Umar and Artawi — as
part of the deal.
Exxon declined to comment.
Further delays to the project
could also hold back the oil indus-
try in Iraq, Opec’s second-largest
producer; the country needs to in-
ject water into its wells or risk los-
ing pressure and face severe decline
rates, especially at its mature oil-
fields.
As freshwater is a scarce resource
in Iraq, using treated seawater is one
of the best alternatives.
The Common Seawater Supply
Project (CSSP), which would sup-
ply water to more than six southern
oilfields, including Exxon’s existing
West Qurna 1 field and BP’s Rumaila,
was initially planned to be complet-
Flames emerge from flare stacks at the oil fields in Basra, Iraq (file). Talks between ExxonMobil and Iraq on a multi-billion-dollar infrastructure contract have
reached an impasse, Iraqi officials and two industry sources said, in a potential setback to the oil major’s ambitions to expand in the country.
ed in 2013 but has now been delayed
until 2022.
“The CSSP would be expensive
and challenging but there’s op-
portunity here (for Exxon)...to get
access to resources on a very large
scale and to achieve something and
really make a difference to its own
business,” said Ian Thom, principal
analyst at consultancy Wood Mac-
kenzie.
Many of the world’s biggest oil
companies, like BP, Total, Royal
Dutch Shell and Eni, have operations
in Iraq, where a low-return environ-
ment and strict contract terms have
squeezed returns in recent years.
With total oil production at West
Qurna 1 at around 430,000 bpd,
Exxon’s presence in Iraq is small
compared with dominant player BP
whose Rumaila oilfield accounts for
around a third of the country’s total
production of around 4.4mn bpd.
While the Texas-based firm is
looking to grow in Iraq, its geograph-
ical focus remains on the Americas,
including US
shale fields and Brazil, in contrast
to rivals like France’s Total and Ita-
ly’s Eni who have been significantly
expanding their activities in the
Middle East in recent years.
The talks between Iraqi authori-
ties and Exxon are still ongoing, ac-
cording to the industry sources and
officials from the Iraqi oil ministry.
However the state-run Basra Oil
Company (BOC), which is oversee-
ing the project, said it could now
tender the project this month in
a parallel process with the aim of
completing a first phase by 2022.
“We have this one approach but
we can have another approach as
well,” Abdul Mahdi al-Ameedi, head
of the Iraqi oil ministry’s licensing
and contracts office, told Reuters.
BUSINESS
Iraq chose Exxon to coordinate the
initial studies of the CSSP in 2010.
At the time, Baghdad aimed to raise
its oil production capacity to 12mn
bpd by 2018, rivalling Saudi Arabia.
That target has been missed and
now been cut to 6.5mn bpd by 2022
from around 5mn bpd now.
“Iraq can probably get to 5.5mn
bpd production without a major
seawater supply project, but I think
they will struggle to get to 7mn bpd,”
said Thom.
Negotiations with Exxon fell
through in 2012 due to red tape and
cost disputes.
Gulf Times
Monday, April 23, 2018 3
‘Riyadh airport
privatisation
plans on hold’
Reuters
Dubai/Riyadh
Saudi Arabia has put on hold privatisation
plans for King Khaled International Airport
in Riyadh, the kingdom’s second biggest
airport, sources familiar with the matter
said.
The kingdom is launching a privatisation
drive as part of wider economic reforms
aimed at boosting efficiency, easing
pressure on state finances and diversifying
the oil dependent economy.
In July, sources told Reuters that Goldman
Sachs was hired by the government to
manage Saudi Civil Aviation Holding
Company’s (SAVC) plans to sell a minority
stake in Riyadh airport.
“Right now they are looking at the plan
again because it is starting to look more like
a concession rather than privatisation,” said
one source familiar with the matter, who
spoke on condition of anonymity because it
is not yet public.
Another source familiar with the deal
said the privatisation is on hold, without
elaborating.
Neither source gave a timeline.
Goldman Sachs declined to comment on
the issue when contacted by Reuters.
A Saudi aviation authority spokesman was
not immediately available for comment.
SAVC chairman Faisal Hamad al-Sugair
had said in December that the goal
was for airports in the kingdom to be
“corporatised”, or turned into private
companies, in 2018 and that privatisation
would follow later.
Officials have highlighted transport as a
priority sector for privatisation, however
the process has taken time to get underway.
The kingdom had said in November 2015 it
expected to begin privatising airports in the
first quarter of 2016.
The airport privatisation plan is expected to
move faster than those for more complex
sectors such as healthcare and electricity,
one of the sources said.
The Saudi government has said that it
planned to raise about $200bn through
its privatisation programme in coming
years, in addition to some $100bn through
the planned sale of a stake in national oil
company Saudi Aramco.
 Gulf Times
4 Monday, April 23, 2018

BUSINESS
India’s economy could grow at
7.4% in 2018-19: Central bank
Reuters
New Delhi
I mortgage market
ndia’s economy could grow at 7.4% in the fis-
cal year to March 2019 after a “resilient per-
formance” in the second half of the previous
year, central bank Governor Urjit Patel said.
India’s economy likely grew at 6.6% in the
2017/18 fiscal year against 7.1% a year earlier, but
higher investments led to a significant pick in the
second half, Patel said in his address to the Inter-
national Monetary and Financial Committee in
Washington.
Hong Kong’s currency
On the whole, real GDP (gross domestic prod-
uct) growth is expected to expand at 7.4% in
2018/19, with risks evenly balanced,” he said.
Since November 2016, consumer price inflation
defence kills fixed-rate
has generally remained below a medium-term
target of 4%, Patel said.
India’s annual retail inflation eased for a third
straight month in March to 4.28%, driven by
smaller rises in food prices.
“Several factors are likely to influence the in-
flation outlook, including a possible moderation Bloomberg
in food prices if the monsoon turns out to be Hong Kong
normal and is supported by effective food supply
management,” Patel said.

Higher government spending, manufactur-
ing and services helped India regain its status as
the world’s fastest growing major economy in the
October-December quarter, surpassing China for
the first time in a year.
Asia’s third-largest economy grew 7.2% in the
December quarter, its fastest in five quarters.
The strong performance is likely to continue.
Several factors are expected to accelerate the
pace of growth in 2018/19, a government state-
ment said, quoting Patel.
“There are now clearer signs that the revival in
investment activity will be sustained. Global de-
mand has been improving, which should encour-
age exports and boost fresh investments.
Kaisa Group to discuss dollar-bond sale with banks
Bloomberg
Hong Kong
Chinese property developer Kaisa Group Holdings is
in talks with banks in relation to a dollar-denominat-
ed bond issuance, according to people familiar with
the matter who are not authorised to speak publicly
and asked not to be identified.
The firm’s new funding plan comes amid a sharp
drop in junk bond yields that has propelled new
bond sales among high yield issuers in the region,
particularly Chinese property developers as they
look to refinance debt. Two phone calls to Kaisa’s
media department went unanswered.
A potential dollar bond sale by Kaisa would be
its second offshore issuance since it completed
a restructuring following a landmark dollar-bond
default in 2015. Kaisa sold $3.45bn of notes in June
last year to replace the securities it issued to repay
creditors in that restructuring to extend its debt
maturity profile.
Wholesale food prices in March fell 0.07%
year-on-year, compared with a 0.07% rise a
month earlier.
But higher oil prices could pose a risk, he
cautioned.
India was also “committed” to fiscal prudence,
Patel said.
With the help of higher tax revenue and a ra-
tionalisation of subsidies, the fiscal deficit had
steadily come down to 3.5% of GDP in 2017/18,
without compromising on public investments
and social sector spending, he said.
India has set its fiscal deficit target for the
2018/19 fiscal year at 3.3% of gross domestic
product.
Chinese builders have sold $16bn of dollar bonds
this year through April 17, a 45% jump from the year-
earlier period, according to Bloomberg-compiled
data. “Chinese property developers – including
Kaisa – are looking for opportunities to come to the
offshore bond market as they bought a lot of land
last year and some of the land premium hasn’t been
paid yet,” Yin Chin Cheong, an analyst at Credit-
Sights in Singapore. “Also they are trying to prefund
in the dollar bond market ahead of rate hikes later
this year.”
Kaisa’s existing notes dropped on the news of po-
tential new supply coming to the market. Its 9.375%
2024 notes fell 1.6 cents on the dollar to 91 cents in
Hong Kong last week, its biggest drop on record,
according to Bloomberg-compiled prices.
Kaisa Group became the first Chinese developer
to default on dollar bonds in 2015 after the firm was
involved in a regulatory probe its home city Shen-
zhen. Creditors led by Farallon Capital Management
and BFAM Partners supported its debt restructuring
in March 2016.
H
ong Kong’s banks, blindsided by ris-
ing funding costs due to the city’s
costly defence of its currency peg, are
clamping down on popular fixed-rate mort-
gages.
Bank of East Asia is no longer accepting
applications for these home loans “due to re-
cent movements in interest rates,” the lender
said in an e-mailed reply on Friday, more
than two months before it had originally
planned to end the programme.
Industrial & Commercial Bank of China
(Asia) will stop from May 1. Bigger rivals
HSBC Holdings Plc and BOC Hong Kong
(Holdings) stopped offering fixed-rate mort-
gages last month.
These loans were provided at 1.68% for
the first year of a new mortgage, lower than
the 2.15% rate that currently prevails in the
industry, according to data from Centaline
Mortgage Broker.
The discount became unsustainable as
Hong Kong’s interbank rates are rising, with
the three-month borrowing cost having hit
the highest since December 2008 and the The HSBC Holdings headquarters building in the central district of Hong Kong. The mortgage
monetary authority warning Thursday that market in Hong Kong is dominated by the city’s biggest banks, led by HSBC and BOC Hong
costs are expected to climb. Kong, with the top three having a combined market share of 63% in terms of the number of
“The banks will have to bear all the costs at loans extended for finished apartments this year, according to Centaline Mortgage.
least for the first year if they continue offer-
ing fixed-rate loans,” said Ivy Wong, manag- to-twelve months, according to Gary Yau, rates rose to about 28% in February from
ing director at Centaline Mortgage. “Some of emerging market strategist at Credit Agricole 1.9% a year earlier, according to data com-
them were probably losing money already.” CIB in Hong Kong. piled by Centaline Mortgage. Interbank rate-
Battlefield: The industry had turned into That’s because the Hong Kong Monetary based new mortgages dropped to 68% in
a battlefield since 2016 as house prices rose Authority will keep mopping up liquidity as February from 86% in January, according to
to records and fixed-rate mortgages were an the Hong Kong dollar should continue to test the HKMA.
effective weapon to lure customers in the the HK$7.85 per dollar level, given that the gap Hong Kong’s mortgage market is dominat-
world’s least affordable housing market. Now between the Hong Kong and US interest rates ed by the city’s biggest banks, led by HSBC
borrowers will have to price in the possibility is still around 1 percentage point, he said. and BOC Hong Kong, with the top three hav-
of higher mortgage rates as early as the sec- The one-month Hong Kong dollar Hibor ing a combined market share of 63% in terms
ond half of this year as the US tightens mon- – the benchmark for local mortgage rates – of the number of loans extended for finished
etary policy. rose 2 basis points on Friday to the highest apartments this year, according to Centaline
Hong Kong interbank offered rates are level since March 29. Mortgage. Bank of East Asia is the city’s fifth
likely to trend upward over the next six- The ratio of new mortgages linked to fixed biggest mortgage lender.

Japan’s March inflation decline

doesn’t signal reversal of trend
Bloomberg the months ahead, said Hiroaki Muto,
Tokyo chief economist at Tokai Tokyo Re-
search Centre, as the yen’s recent ap-
preciation starts taking hold from May
wrote in a report. The March result re-
flected fading effects of energy prices
and lower fresh food and import costs,
Masujima wrote. “If oil prices are sta-

W
hile Japan’s key price gauge
ticked down in March, the
inflation trend remains
intact as Bank of Japan Governor
Haruhiko Kuroda begins his second
term.
Consumer prices excluding fresh
food rose 0.9% in March from a year
earlier, versus a 1% rise in February.
The result was expected by econo-
mists surveyed by Bloomberg.
The latest reading heralds a soft
patch but not a reversal of the price
trend, economists say.
Although it’s far from the BoJ’s
2% target, inflation excluding fresh
food will be anchored above 1% over
the coming months, said Masamichi
Adachi, senior economist at JPMorgan
Chase & Co in Tokyo.
“When you look at the current la-
bour market and wages, the economy
isn’t that bad,” Adachi said.
Some further softness is likely in
or June, slowing the rise in food prices.
“Food and energy prices are sup-
porting CPI right now,” Muto said,
adding that the BoJ will have no choice
but to keep delaying its projected tim-
ing for reaching 2%. In fact, stabilising
core inflation above 1% will be a chal-
lenge, he said.
Making progress: The BoJ had
been making steady progress in gen-
erating inflation, raising expectations
that Kuroda could begin to normalise
policy as soon as later this year. Much
of the gains have been driven by higher
energy prices and a weaker currency,
so the yen’s rise this year has compli-
cated the outlook.
Yet domestic demand is picking up
as Japan’s economy continues grow-
ing. Upward pressure from the posi-
tive output gap and improving wage
growth are likely to sustain a broad
trajectory of moderate price increases,
Bloomberg Economics’ Yuki Masujima
ble, core inflation may clearly exceed
1% in 3Q, in our view,” he said.
External factors such as energy
prices, the yen’s exchange rate and
global trade tensions remain risks to
the BoJ’s outlook. But recent price
gains have relied less on external fac-
tors than previously. Stripping out
fresh food and energy, prices climbed
0.5% in March.
Nationwide energy prices rose 5.7%
from a year earlier in March, contrib-
uting 0.42 percentage point to price
gains.
“The underlying trend hasn’t
changed because inflation excluding
fresh food and energy remained the
same,” said Maiko Noguchi, a senior
economist at Daiwa Securities Co and
a former Bank of Japan official. “I think
that’s the measure the BoJ really cares
about because the bank can’t achieve
2% in a stable manner if it fails to rise
from the current 0.5%.”

Abe’s woes threaten to put

yen in BoJ’s inflation path
Bloomberg
Singapore

As Governor Haruhiko Kuroda heads into the Bank of Japan’s policy

meeting this week, he has an additional factor to watch out for:
politics. Scandals have cast doubts on Prime Minister Shinzo Abe’s
ability to stay as leader of the Liberal Democratic Party, raising
questions over the future of Abenomics. That may fuel yen gains,
which could derail the inflationary impact of the monetary easing
that Kuroda has pursued since being first appointed by Abe in 2013.
Despite sliding in the last three weeks, the yen continues to be
this year’s top performer against the dollar in Asia, with an almost
5% gain. It climbed on Monday, as thousands of anti- Abe protest-
ers rallied on the weekend and a Nippon TV survey showed that
approval rating for the prime minister fell to a record low of 26.7%.
The timing of the scandals – which range from doctored
land-sale documents to an alleged cover-up over the activity of
Japanese troops during the Iraq war – doesn’t help.
Fears over the future of Abenomics are mounting at a time
when the BoJ is finally beginning to see the results of five years
of its ultra-loose policy stance. Japan’s headline inflation measure
is expected to rise to 1.1% this year and in 2019, from 0.5% in 2017,
the IMF said in its World Economic Outlook earlier last week. The
yen also stands to gain as a haven asset from any escalation in
global trade tensions. Leveraged funds held a net long yen posi-
tion of 22,126 contracts as of the week ended April 10, according
Despite sliding in the last three weeks, the yen
continues to be this year’s top performer against
the dollar in Asia, with an almost 5% gain
to Commodity and Futures Trading Commission data. Technical
indicators also suggest that the dollar-yen could see more downside,
with resistance around the 108 level continuing to hold. Slow sto-
chastics, a momentum indicator, has ominously turned bearish with
a reading of 72 and falling as it retreats from overbought territory.
Abe faces a party leadership vote in September, though his
former mentor Junichiro Koizumi has predicted that he would
step down in June. That may fuel yen gains just as the BoJ’s
policy is under increased scrutiny. Kuroda said in March the
central bank may think about exiting its monetary stimulus in
fiscal 2019, without committing to any firm action.
 Gulf Times
Monday, April 23, 2018 5

BUSINESS

Kim shifting gear to Global carmakers gear up for

China autoshow as sector opens
economy as N Korea AFP
Beijing
ler, the parent company of Mercedes, said
it would “monitor developments in regu-
lations closely” while Volkswagen said it
would “carefully analyse” the changes.

G
lobal carmakers will show off their On the floor of the giant China Interna-

ditches nuclear tests

Bloomberg
Seoul
Kim Jong-un’s suspension of North
Korean nuclear tests has strings at-
tached.
The leader’s statement at a ruling par-
ty meeting on Friday includes a pledge
to seek a “favourable” international
environment for economic develop-
ment so that he can put the economy
“on an upward spiral track.”
That builds on his 2012 vow to ensure
no North Koreans would “have to
tighten their belts” any longer. It also
means he is seeking the help of other
countries for developing his economy,
including the lifting of trade, financial
and energy sanctions that hardened
every time North Korea detonated a
nuclear bomb.
Scepticism prevails on whether North
Korea could emulate the kind of
economic success that South Korea
has achieved. And history has shown
overseas investors can suffer with
no recourse if they fail in their risk
assessment. Yet North Korea is viewed
as a wildcard and frontier market that
could offer rewards for the business
community because of its central loca-
tion in a booming region encompass-
ing China, Japan and South Korea.
“Everything about North Korea spells
potential,” says Kim Young-hui, a
North Korean defector studying at
Seoul’s government-owned Korea
Development Bank. “North Korea can
be a bridge linking the peninsula to as
far as Europe via China. Imagine how
much cargo could flow on that Asian
highway.”
North Korea has struggled to revive
its economy since a famine in the mid-
1990s, while South Korea has taken off
as an economic powerhouse export-
ing everything from smartphones to
automobiles. The Songun, or military-
first policy, charted by Kim’s father,
Kim Jong-il, also dried up economic
resources that otherwise would have
benefited the economy.
China has been hoarding the rare
earths and other minerals in North
Korea. Estimated to be worth as much
as $6tn, North Korea’s reserves of
gold, copper, zinc, coal, magnesite and
molybdenite could attract buyers from
countries other than China, allowing
This undated picture released from North Korea’s official Korean Central News Agency (KCNA) on September 16,
2017 shows North Korean leader Kim Jong-un inspecting a launching drill of the medium-and-long range
strategic ballistic rocket Hwasong-12 at an undisclosed location. North Korea’s reserves of gold, copper, zinc,
coal, magnesite and molybdenite could attract buyers from countries other than China, allowing Kim to
diversify his sources of income if he opens up his country.
Kim to diversify his sources of income
if he opens up his country. (In 2013
Kim executed his uncle, Jang Song
Thaek, on charges that included sell-
ing “precious underground resources
for dirt-cheap prices.”)
The nation of 25mn also provides
a labour force that remains largely
untapped. South Korea has shown
that a business model combining its
capital and know-how with North
Korean labour can work when it ran
an industrial park in the North Korean
border city of Gaeseong.
That complex closed in 2016 amid
military tensions. The challenge of
educating North Koreans with western
business practices and technology re-
mains daunting for any investors who
may want to start similar projects.
North Korea’s isolation has essentially
rendered South Korea as an island in
the world of commerce. If it opens,
it could win transportation fees by
allowing South Korea to export its
goods to the rest of the world by land.
South Korean President Moon Jae-in,
set to meet with Kim on April 27, has
already suggested his country could
receive gas supplies from Russia
through North Korea while cargo flows
to Europe.
That means building roads and other
infrastructure in North Korea. Shares
of South Korean builders and cement
makers rose earlier last week on
hopes for business with North Korea,
sending Hyundai Engineering &
Construction Co Ltd as much as 9.5%
higher on April 18.
A thaw in relations could also reopen
the cross-border tours that stopped
in 2008 when a South Korean woman
was killed at a North Korean mountain
resort. That mountain sits close to the
Masikryong ski resort that Kim has
since built.
Still, much about North Korea’s eco-
nomic development is easier said than
done. Kim’s promise to halt nuclear
tests is a far cry from US and South
Korean demands that all nuclear pro-
grammes be rolled back. Kim has said
nuclear arms safeguard his regime.
It took China, a role model for North
Korea, more than two decades to
accelerate its growth after Deng
Xiaoping decided to open up the
country. And he didn’t have to worry
about the survival of his nation. Kim
on the other hand fears for the lack of
a nuclear deterrent – and for a flow of
information that could turn his people
against him.
“Whether Kim can be North Korea’s
Deng Xiaoping will depend on how
the international community can
guarantee its security for denuclearis-
ing and offer a chance for economic
development,” said Cheong Seong-
chang, a North Korea researcher at
South Korea’s Sejong Institute.
latest models at the Beijing Au-
toshow this week, days after China
unveiled plans to shift gears in the world’s
biggest car market by lifting foreign owner-
ship restrictions.
Industry giants such as Volkswagen,
Daimler, Toyota, Nissan and Ford will be
among the companies seeking the limelight
in a country where 28.9mn vehicles were
sold in 2017, a 3% increase from 2016.
Although sales lost steam compared to
the previous year, foreign automakers are
still eager to win bigger slices of a huge mar-
ket as they face increasing competition from
domestic companies that are investing in
electric and self-driving vehicles.
And the Beijing Autoshow is their chance
to display their new models to Chinese car
enthusiasts.
The event “is becoming the largest in the
industry...No one can ignore China,” said
Ferdinand Dudenhoeffer, director of the
Center for Automotive Research, based in
Germany. This year’s autoshow could be
dominated by “political” topics, he said.
The spectre of a trade war between Beijing
and Washington worries auto executives
as it could bring their plans for China to a
screeching halt.
But Beijing announced last Tuesday that
it will liberalise foreign ownership limits in
the sector, a move seen as a possible olive
branch to President Donald Trump, who
has complained about China’s rules for the
industry.
China currently restricts foreign auto
firms to a maximum 50% ownership of joint
ventures with local companies.
But the changes will end shareholding
limits for new energy vehicle firms as soon
as this year, followed by commercial vehicles
in 2020 and passenger cars in 2022.
So far the news has been greeted with
caution by the world’s automakers: Daim-
tional Exhibition Centre, auto executives
may offer a more detailed take.
“They have a decision to make: do they
want set up production facilities in which
they have a bigger share, or do they want
expand their current JV or try to purchase
shares back from their current partner,” said
Bill Russo, a managing director at Gao Feng
Advisory Group, noting most would find it
difficult to restructure their current joint
ventures.
Russo noted the policy could be a posi-
tive for companies like Tesla which has so
far resisted taking a Chinese joint venture
partner.
President Xi Jinping has also pledged a
“substantial” reduction in tariffs on import-
ed cars by the end of 2018 — a boon for high-
end brands, even if the volumes concerned
remain limited at the moment.
China charges a 25% import levy on ve-
hicles, with luxury cars being hit especially
hard by additional taxes.
The US’ 2.5% tariff rate is low in com-
parison, though it ticks up to 25% for pickup
trucks.
Trump has railed against China’s car tar-
iffs.
Foreign brands control more than half of
China’s car sales, many of which are made
in the country through their joint ventures,
thus not subject to import duties.
But their market dominance is being chal-
lenged in the growing SUV segment, where
Chinese brands take 60% of the market.
While China’s booming car market saw
some hiccups last year in certain categories,
SUV sales were hot, growing by more than
10%, according to Russo.
SUVs were once the gas-guzzling symbol
of America, but unfortunately for foreign
carmakers, many local brands have learned
how to produce the hulking cars on the
cheap.

Bloomberg QuickTake Q&A

Goodbye DMZ? What

an end to the Korean
War would mean
By David Tweed
Hong Kong
As neighbourly disputes go, this
one really has dragged on. Some
65 years since open hostilities
ended, North and South Korea are
still technically at war. But after a
sudden warming of relations this
year, the two sides are set to meet
at the end of this month for talks.
According to the South Korean
publication, Munhwa Ilbo, they’re
planning to announce the end of
military hostilities. Negotiations
may focus in part on one of the
most enduring symbols of the
conflict, the 4-km-wide (2.5-
mile) stretch of land separating
the countries known as the
demilitarised zone. Peace lovers
and bird lovers alike are watching
with interest.
1. What is the
demilitarised zone?
The DMZ, as it’s known, was
created at the end of the 1950-
53 Korean War, when the UN
(including the US), China and
North Korea signed an armistice,
signalling a temporary cessation
of fighting, rather than a full-
blown peace treaty. Under the
terms, the parties undertook to
pull troops back from a military
demarcation line by 2km each
way (hence the buffer of 4km).
South Korea refused to sign the
armistice. According to Munhwa
Ilbo, which cited an unidentified
South Korean official, a joint
statement from the coming
summit may state that the two
Koreas will seek to ease military
tension, which could involve
returning the DMZ to its “original
state.”
2. Where will the talks
take place?
Within the DMZ, in the so-called
Joint Security Area, which is also
known as Panmunjom, or Truce
Village. Several buildings stand
on either side of the military
demarcation line, including Peace
House, which lies on the southern
side of the zone and will host
the upcoming talks. (There is a
building built directly on the line
which houses a table that has a line
running down the centre to show
the demarcation line.) US President
Donald Trump had to cancel a trip
to the DMZ in November because
of bad weather, but as yet there’s no
suggestion his proposed meeting
with North Korean leader Kim Jong-
un would take place there.
3. What else is there in the
DMZ?
Wildlife. The snaking 250km swath
of land has remained untouched
by humans, leaving what National
Geographic magazine once
described as a haven for some of
the most endangered animals in
Asia, including black bears, musk
deer and rare birds and plants.
4. What is on either side of
the DMZ?
Lots of troops and artillery
weapons. US and South Korean
military personnel patrol the
south side of the DMZ and North
Korean soldiers guard the north.
North Korea has spent decades
concealing hundreds of artillery
batteries along the frontier that
could wreak havoc on South
South Korean and US soldiers stand guard next to the United Nations
Command Military Armistice Commission (UNCMAC) conference
buildings at the truce village of Panmunjom in the Demilitarised Zone
(DMZ) in Paju, South Korea on April 18. According to the South Korean
publication, Munhwa Ilbo, North and South Korea are planning to
announce the end of military hostilities.
Korea’s capital Seoul, home to half back, along with the artillery and
the country’s 51mn people. Seoul other weapons.
lies about 60km to the south. 7. When did the countries
South Korea has its own artillery last come this close to
primed. Both sides have mounted peace?
giant loud speakers to blast
propaganda – and the occasional At the 2007 summit between
K-Pop hit from South Korea – at President Roh Moo-hyun and Kim
each other. Jong-il in Pyongyang. The sides settled
5. Has the DMZ remained on dozens of agreements aimed at
skirmish-free? supporting North Korea’s economy
and recommitted to a declaration
Hardly. Outbreaks of violence over made at a summit in 2000 – the first
the years have killed hundreds of between leaders of North Korea and
troops from North Korea, South South Korea – that the two sides would
Korea and the US. More than seek peaceful reunification.
30,000 American soldiers are 8. Why did relations
deployed in South Korea as part deteriorate after 2007?
of the US-South Korean alliance.
One of the most gruesome Negotiations – known as the
incidents involved axe-wielding “six-party talks” – broke down in
North Korean soldiers attacking 2008 after North Korea refused
and killing two US Army soldiers to allow international inspectors
in 1976. In 2015, two South to visit nuclear facilities. Around
Korean soldiers were injured by the same time, South Korea
landmines allegedly placed on the elected a conservative president,
south side of the DMZ by North Lee Myung-bak, who favoured a
Korea. harder line and abandoned his
6. What would happen to predecessor’s so-called “Sunshine
the DMZ? Policy” toward North Korea.
The sinking of a South Korean
If returned to its “original state,” corvette, killing 46 sailors, by a
the zone would presumably suspected North Korean torpedo
cease to exist and the military prompted the newly elected
demarcation line would become president to cut off all ties with the
the border. Troops would be pulled North.
 Gulf Times
6 Monday, April 23, 2018

BUSINESS

Pakistan raises development funds to Rs1,030bn in next budget

Internews tional Economic Council (NEC) under With inclusion of Rs100bn as off- Hakeem sections of Lahore-Karachi grid. Water sector allocation is pro- To assist the private sector, the gov-
Islamabad the chairmanship of Prime Minis- budget items into overall national de- motorways are at fairly advanced stage posed to be enhanced from Rs36bn to ernment would finance the feasibil-
ter Shahid Khaqan Abbasi tomorrow velopment programme, the NEC is go- of implementation while Thakot-Hav- Rs65bn during 2018-19. ity studies for which Rs5bn allocations
will accord approval of the PSDP at ing to approve overall size of Rs2043bn alian, dualisation of Yarik-Mughalkot- The government has made special were proposed for the next budget.

W
ith the inclusion of Rs100bn
into development pro-
gramme as off-budget item
to finance projects in public, private
partnership (PPP) mode, the govern-
ment of Pakistan has increased overall
size of the Public Sector Development
Programme (PSDP) at federal level to
Rs1,030bn, including allocation of
over Rs190bn for China Pakistan Eco-
nomic Corridor (CPEC), in the next
budget 2018-19.
The total number of development
schemes during the fiscal year 2018-19
would be 1,235 into the fold of PSDP,
including 726 ongoing schemes and
509 new schemes.
According to a working paper for the
NEC sent out to ministries/divisions
reads out on Sunday that in fiscal year
2018-19 new projects costing Rs835bn
will be added in the CPEC and its sup-
porting projects. Alone 31 projects for
the development of Gwadar are part of
the proposed PSDP for 2018-19 with an
estimated cost of Rs137bn.
In an electioneering year, the Na-
Rs1,030bn, including Rs825bn al-
location for ministries/divisions
against the Ministry of Finance al-
located amount of Rs800bn, Rs105bn
for TDPs, special programmes and Rs-
100bn for financing on the PPP mode,
but this amount will remain outside
the budget.
The working paper for NEC states
that a major portion of the federal
PSDP to the tune of 63% was ear-
marked for ongoing projects for the
upcoming budget 2018-19.
The ministries/divisions and ex-
ecuting agencies would be required to
process PC-1 of unapproved projects
for approval of the competent forum
by August 31, 2018, for efficient utili-
sation of allocated funds.
It was first time in the country’s
history that the government made
Rs100bn as off-budget item in the PPP
mode as part of overall national devel-
opment programme and many termed
it as a bid to balloon the development
outlay to inflate development and
please voters in upcoming elections.
for the next budget including Rs-
1030bn as federal PSDP and Rs1,013bn
for provincial annual development
programmes (ADPs).
Out of total proposed size of Rs825bn
for ministries/divisions and executing
agencies, the allocation for infrastruc-
ture stands at Rs575bn or 62% by get-
ting major chunk of the PSDP amount
in the upcoming budget.
The transport and communication
sector obtained allocation of Rs400bn,
power sector Rs80bn (Rs157bn as self-
finance outside the budget), water sec-
tor Rs65bn or 7% of the total PSDP size
and Rs30bn for physical planning and
housing in the next fiscal year.
Highest priority has been accorded
to the transport and communication
sector with an allocation of Rs400bn,
including Rs310bn for national high-
ways, Rs39bn for Railways and Rs44bn
for other projects, including Aviation
schemes such as Gwadar International
Airport.
In the transport sector projects like
Multan-Sukkar and Lahore-Abdul
Zhob Section of N-50, Jagolkot-Skar-
du road Eastbay Expressway Gwadar
and Mirpur-Mangla-Muzzaffara-
bad-Manshera roads are new flagship
projects initiated by the government in
its tenure.
The allocation for Railways has been
increased from Rs16bn in 2013 to Rs-
43bn in 2018. In 2018-19 the govern-
ment, despite fiscal difficulties, has
financed railways mainline known as
ML-1 with modest allocation close to
Rs5bn.
To modernise railways infrastruc-
ture, new projects, namely establish-
ment of Dry-port near Havalian with
total cost of Rs380.8bn that was part of
the CPEC and would be completed till
2023, improvement of infrastructure
maintenance services Rs6bn and ac-
quisition of land for Gwadar connec-
tivity Rs10.7bn will be initiated during
2018-19.
From 2013-2018, the government
earmarked allocation of Rs1500bn
for energy sector that added up
10,000MW electricity to the national
allocation to start construction of Ba-
sha dam and Mohammand Dam with
funding of Rs23bn and Rs2bn respec-
tively.
Other water sector projects, include
7 new schemes worth of Rs849bn to be
started in FY 2018-19 to conserve and
augment the water resources.
These new schemes are National
Flood Protection Plan-IV, Diamer Ba-
sha dam, CRBC 1st lift cum gravity
project DI Khan, Mohammand Dam,
Lining of KB Feeder Upper Canal for
Water Supply to Karachi City, reha-
bilitation of Sukkar Barrage (90% cost
will be borne by the WB and 10% by the
federal government) and construction
of Feeding Canal to Manchar Lake to
eradicate contamination.
For fast track development of spe-
cial areas, the government allocated
Rs62bn out of which Rs22bn for AJK,
Rs15bn for GB and Rs25bn for Fata.
The National Highway Authority
(NHA) has been requested to under-
take projects of at least Rs100bn during
2018-19 on the PPP mode of financing.
In order to keep youth away from
undesirable activities, programme to
build 100 stadiums all over the coun-
try costing Rs2,500mn is proposed to
be initiated in consultation with prov-
inces on cost sharing basis of 50:50%.
The federal government also pro-
posed 400 vocational training insti-
tutes on cost sharing basis with the
provinces in order to bridge the gap
between demand and supply of man-
power required for the CPEC projects.
The government proposed size of
Rs135bn for social sector, including
Rs57bn for education including Higher
Education Commission (HEC), Rs37bn
for health and population welfare,
Rs5bn for Pak SDGs community de-
velopment programme and Rs36bn for
others.
The government has allocated Rs-
72bn for special areas, including AJK,
Gilgit-Baltistan and Fata for next fiscal
year, Rs12bn for Science and Informa-
tion Technology, Rs18bn for govern-
ance, Rs8bn for Erra and Rs5bn for
production.

India said to overhaul

IMF endorses Japan’s insolvency law to
ease bidding rules
preference of TPP over Bloomberg
New Delhi
first introduced in 2016. The
law, considered one of the
biggest reforms by the Modi
administration, helps banks

two-way trade deal I

ndia will overhaul its in-
solvency law to allow some
people connected with
founders of companies to bid
for the assets, a move that is
expected to allow lenders to
recover dues faster by ending
Multilateral framework more delays caused by litigation,
efficient than bilateral deals; trade according to people familiar
spat may hurt sentiment, Asian with the matter.
growth: Furusawa; China market The government will bring
liberalisation a move in right an executive order within one
direction; Japan should raise sales week for the overhaul, said
tax, ease pain with fiscal steps the people, who asked not to
be identified before a final an-
Reuters nouncement. That would in-
Washington clude suggestions by a panel
to relax bidding conditions
under insolvency law.
recover their dues in a time-
bound manner.
“We are examining the rec-
ommendations and would like
to implement almost all to
promote ease of doing busi-
ness and speed up the proc-
ess,” junior corporate affairs
minister PP Chaudhary said in
an interview in New Delhi on
Thursday. “We will bring an
ordinance as early as possible.”
India’s fledgling insolvency
process has come under in-
creased scrutiny after the cen-
tral bank last year ordered 12
of the largest debtors to go
through bankruptcy tribunals
and then, in February, whit-

A
multilateral framework like the
Trans-Pacific Partnership pact
works better in fixing trade imbal-
ances than a bilateral deal, IMF Deputy
Managing Director Mitsuhiro Furusawa
said in an endorsement of Japan’s calls for
Washington to rejoin TPP.
Japan and the United States are at log-
gerheads on how to frame trade talks, with
US President Donald Trump rebuffing To-
kyo’s calls to rejoin the pact, instead pre-
ferring a two-way trade deal.
Furusawa said multilateral frameworks
like TPP were more effective in solving
disagreements over trade and fixing im-
balances in a globalised world with in-
tertwined supply chains. “Bilateral talks
alone can’t solve imbalances.
It’s therefore more efficient to solve
them with a bigger framework,” Furusawa
told Reuters on Saturday on the sidelines
of the International Monetary Fund and
World Bank spring meetings.
“In general, a multilateral framework
is more efficient for the global economy,”
said Furusawa, a former top Japanese cur-
rency diplomat.
Japan wants Trump to reconsider his
decision to pull the United States out of
TPP, and is reluctant to meet Washing-
ton’s calls to open talks for a two-way
trade deal for fear of coming under pres-
sure to open up markets like agriculture.
The two countries agreed at a summit
earlier this week to create a new frame-
Furusawa: Bilateral talks alone can’t solve trade imbalances.
work focusing on trade talks to iron out
differences, though Japanese officials say
it will take time to reach a solution agree-
able for both.
The United States has also engaged in
a tit-for-tat trade spat with China, stok-
ing protectionism worries among IMF and
Group of 20 finance leaders.
Furusawa said such concerns could hurt
now-vibrant Asian economies through
various channels. “Trade negotiations
take time, and during that process the un-
certainty continues.
That would affect not just goods trade
but investment, consumption and sen-
timent,” he said. While responding to
Trump’s tariff threats with retaliation,
China recently announced market liber-
alisation plans such as scrapping a limit on
foreign ownership of automotive ventures.
“China has been pushing through mar-
ket reforms for quite some time, so I don’t
think it’s just in response to US pressure,”
Furusawa said.
“It’s a move in the right direction.
Pushing forward with reforms is good
not just for the Chinese economy but for
the global economy.”
Referring to Japan’s fiscal policy, Fu-
rusawa said it was “obvious” the country
must proceed with a scheduled sales tax
increase next year to rein in its huge pub-
lic debt. The government should also take
steps to ease the pain from the tax hike on
the economy, including through a tempo-
rary increase in fiscal spending, he said.
As the economy continues to strength-
en, Japan must push through reforms to
boost its potential growth, he said.
“We’ve seen some progress, such as
in areas like corporate governance and
trade,” Furusawa said. “The biggest
challenge is labour market reform, so
we’re hoping there will be progress on
that front.”
Rules may also be relaxed to
include home buyers – affected
by builders going into bank-
ruptcy proceedings – in the
creditors’ panel. Out-of-court
settlements and reducing the
share of lenders required to ap-
prove an insolvency resolution
plan are also part of the recom-
mendations by the Insolvency
Law Committee.
“If the government lets con-
nected persons bid, it would save
a lot of companies from going into
liquidation,” New Delhi-based
senior advocate UK Chaudhary,
who deals with insolvency-relat-
ed cases, said by phone. Reducing
the voting threshold from 75% to
66% would help maximise asset
value and ensure speedy resolu-
tions, he said.
The list of ineligible bid-
ders will be reduced to those
who directly contributed to
defaults of the company fac-
ing insolvency or are ineligible
due to certain other reasons,
the people said.
As Parliament is not in ses-
sion, Prime Minister Narendra
Modi and his ministerial panel
would approve an ordinance
making changes to the Insol-
vency and Bankruptcy Code
tled down bad-debt resolution
methods to one: if banks can’t
fix a sour loan in 180 days, it
will be referred to the court. The
nation is struggling to unwind
about $210bn of soured loans
that have weighed on lending
growth and investment.
Steel manufacturers, power
and construction companies
dominated the initial list of larg-
est borrowers. Lengthy court
battles on who gets to buy the
companies on the block have
come in the way of banks recov-
ering their dues and delayed the
turnaround of companies.
A court this week ordered
creditors of debt-laden Essar
Steel India to evaluate bids by
an ArcelorMittal-led consor-
tium and Numetal. The two
companies had challenged the
decision by the creditors of Es-
sar Steel to invalidate their bids
in the initial round of the sale
and also questioned the legiti-
macy of each others’ offers.
“The amendments pro-
posed by insolvency law panel
will not only speed up the
process, it will make the IBC
more meaningful and effective
than it is today,” said lawyer
Chaudhary.

US Treasury chief may visit China as trade tensions simmer

Reuters
Washington
US Treasury Secretary Steven Mnuchin
said on Saturday he may travel to China,
a move that could ease tensions between
the world’s two largest economies, as
international policymakers acknowledged
Beijing needs to change its trade practices.
The United States has threatened to
impose tariffs on up to $150bn of Chinese
imports to try to force changes in Beijing’s
industrial policies, which Washington says
are aimed at acquiring American intel-
lectual property.
Mnuchin told reporters he was continu-
ing to have discussions with his Chinese
counterparts to try to resolve the differ-
ences over trade, but said he may go to
Beijing. “A trip is under consideration,”
Mnuchin said at a news conference during
the International Monetary Fund and
World Bank spring meetings in Washing-
ton.
“I am not going to make any comment
on timing, nor do I have anything con-
firmed, but a trip is under consideration.”
Mnuchin also declined to say what he
wants from a trade deal with China, add-
ing, “If we have a deal, you’ll know what it
looks like when we have it.”
China has threatened retaliation against
US exports if Washington pushes ahead
with the tariffs.
The row, which comes as the world
economy records its strongest growth
in years, cast a pall over the semi-annual
gathering of the world’s finance officials.
IMF Managing Christine Lagarde
warned this week that a US-China trade
war threatened to damage confidence,
investment and growth.
On Saturday, she told a news confer-
ence there would be no winners from such
a conflict.
“It is important that as a global com-
munity we keep trade open, we ensure
that we work within the multilateral
system that we have to make sure if there
are disputes, these disputes are resolved,”
she said.
Mnuchin said he met China’s new
central bank governor, Yi Gang, during
the IMF and World Bank meetings and
discussed the potential for China to open
tee, Yi said China would “vigorously” push
forward the reform and opening of its
financial sector, significantly relax market
access restrictions, create a more attrac-
tive investment environment, strengthen
the protection of intellectual properties
and actively expand imports.
Yesterday, China’s commerce ministry
said it would welcome US officials to
discuss trade and economic issues.
“The Chinese side has received informa-
tion that the US side hopes to come to
Beijing to discuss economic and trade
issues.
China welcomes this,” the ministry said
in a statement on its website.
Beijing announced on Wednesday that
it would gradually eliminate ownership
caps on foreign manufacturers of autos,
aircraft and ships.
Regarding trade with Japan, Mnuchin
Mnuchin: Trying to resolve the differences over trade. said the Trump administration wants a
bilateral trade agreement and has had
its markets to more foreign competition. announced in terms of opening some discussions with Tokyo about such talks.
“I did meet with the Chinese here. The of their markets, which we very much Japan wants the United States to rejoin
discussions were really more around the encourage and appreciate.” the multilateral Trans-Pacific Partnership
governor’s actions at the PBoC (People’s In a statement on Saturday to the Inter- trade pact, as it fears opening talks for a
Bank of China) and certain actions they’ve national Monetary and Financial Commit- bilateral free trade agreement could put
it under pressure to open up politically
sensitive markets like agriculture.
A year after US President Donald Trump
first rankled multilateral finance meetings
with his “America First” trade agenda,
some officials are starting to acknowledge
he has changed the conversation on trade,
even if they disagree with his tariff plans.
“No one can be in any doubt that the
US has a valid point about intellectual
property theft” by China, British finance
minister Philip Hammond said on Friday.
“It’s been going on, on an industrial scale,
over many years and we’ve been targets
of it just as the US has.”
At the same time, Hammond said using
tariffs was the wrong way to settle trade
disputes, and he was urging China to do
more to open its markets to foreign com-
petitors, particularly in services.
A senior Japanese government official
drew a clear distinction between Japan’s
trade issues with the United States and the
US-China dispute.
“It’s a separate issue,” the official said on
condition of anonymity. “If Trump can help
change China’s behaviour, there is room
for Japan to benefit.”

Trade tensions set for brighter
US corporate results spotlight
Reuters
New York
T
he potential for an intensifying
trade dispute to undercut the
US stock market could become
clearer this week when a host of mul-
tinational companies reports quarterly
results that may provide a glimpse into
the impact of those global tensions.
A broad trade war scaled up a list of
worries for Corporate America and eq-
uity investors after US President Don-
ald Trump imposed tariffs last month
on imports of steel and aluminium.
His comments and posts on Twit-
ter about unfair behaviour by US trade
partners have rattled the market, which
has pulled back from record highs early
this year.
China has responded with tariffs of
its own, leading to fears about a full-
blown trade war and injecting fresh
volatility into a stock market that has
been more jittery over the past two
months.
Of 25 US companies seen by Credit
Suisse as most exposed to a trade war,
more than half will report their results
in the coming week.
They include Halliburton Co on
Monday, 3M Co and Texas Instruments
Inc on Tuesday, Boeing Co on Wednes-
day, Intel Corp on Thursday and Chev-
ron Corp on Friday.
Overall, more than 180 companies in
the benchmark S&P 500 index are due
to report results this week.
Some companies have already
weighed in on trade tensions in the ear-
ly stages of earnings season.
“Management has to walk a fine line
between flapping their arms and lob-
bying against tariffs, and presenting
themselves as vulnerable to tariffs,”
said Jack Ablin, chief investment officer
at Cresset Wealth Advisors in Chicago.
Of particular concern will be ex-
ecutives’ views about their exposure
to China, the world’s No 2 economy
and an important market for many US
companies. “I’d like to know if things
do deteriorate with China, how much
it would affect them,” said David Joy,
chief market strategist at Ameriprise
Another blow-up shows why it’s buyer beware for Nordic junk debt
Bloomberg
London
The least corrupt countries in Europe are
home to its most dangerous bond market.
Debt issued in Nordic nations requires no
credit rating or due diligence. Companies
can claim more or less what they like
when selling new debt, according to Nor-
way’s financial-market regulator.
Investors are re-learning the oldest
maxim in the book – buyer beware – with
the €350mn ($433mn) of junk bonds sold
in August by Lebara Group, a Netherlands-
based provider of international mobile-
phone cards.
“In Nordic high yield you can easily
think you’re buying a Ferrari and it turns
out it’s not,” said Evgeny Artemenkov,
a high-yield money manager at Saasto-
pankki in Helsinki, which bought some
of the notes. “The bond was issued using
different numbers from what should have
been used.”
The debt has since cratered more
than 30% as Palmarium, the little-known
private fund that used the bond proceeds
to finance its purchase of Lebara, restated
With world’s biggest FX trade shackled, investors get creative
Bloomberg
New York
T
he world’s most widely traded
currency pair is stuck in its
deepest rut since 2014. With few
signs it’s poised to shake the malaise
anytime soon, traders are being forced
to get creative.
The euro-dollar cross, which sees
about $1.25tn of turnover a day, or a
quarter of all global foreign-exchange
volume, has been confined to a 4-cent
range between $1.2155 and $1.2555 since
mid-January. That’s the narrowest
three-month band since 2014, accord-
ing to data compiled by Bloomberg.
With implied volatility approaching
the lowest in more than three years,
strategists see few catalysts for the pair
until the second half.
Well-telegraphed interest-rate ex-
pectations from the Federal Reserve
and a lack of policy guidance from the
European Central Bank are largely to
blame for stifling the pair, even in the
face of heightened trade and geopoliti-
cal tensions, market watchers say.
Pedestrians pass in front of the New York Stock Exchange (file). The potential for an intensifying trade dispute to undercut the US stock market could become clearer this
week when a host of multinational companies reports quarterly results that may provide a glimpse into the impact of those global tensions.
in Boston. Omar Aguilar, chief invest-
ment officer of equities at Charles
Schwab Investment Management in
San Francisco, said he expects compa-
nies to start discussing how they may
alter their budget for capital expendi-
ture “depending on the outlook of poli-
cies related to trade.”
Company comments about tariffs
and trade could blemish what is ex-
pected otherwise to be a stellar earn-
ings season, which includes the first
full quarter with the recently passed US
corporate tax cuts.
With 87 companies having reported
so far, S&P 500 profits in the first quar-
ter are expected to have increased a
whopping 20%, according to Thomson
its accounts four times in six weeks. They
called it a “genuine mistake.”
The absence of rules has attracted com-
panies the world over, making the Nordics
the Monaco of junk bonds. Norway alone,
which Transparency International ranks as
the cleanest country in Europe after Den-
mark and Finland, churns out up to eight
times more high-yield debt than European
Union nations, measured as a share of its
economy, according to financial-industry
association Finans Norge.
The Nordic model stems from the
1990s, when borrowers tapped local
syndicates for small sums, typically
eschewing formal terms and conditions.
Next came foreign issuers, attracted by
skipping the costly legal and due-diligence
checks required in London and New York.
Fitch Ratings’ junk-bond specialist Ed
Eyerman warned four years ago that the
expansion was “testing its limits.” Locals
are now waking up, said Per Fossan-
Waage, director at the Norwegian branch
of accountants PwC.
“When you take this market beyond
Nordic companies, that are not as trans-
parent or are bigger, taking at face value
what a company says may be a problem,”
For FX traders who traditionally de-
pend on volatility to make money, it
means looking further afield for ways
to profit. Here are some of the strate-
gies they’re turning to:
Strategy 1: Volatility plays: Inves-
tors anticipating that the euro-dollar
pair will continue to trade sideways can
capitalise on that view with a double-
no-touch strategy, according to Val-
entin Marinov, head of G-10 foreign-
exchange research at Credit Agricole.
The trade proves profitable if a curren-
cy pair stays within a predefined range
for a specified period.
Marinov recommends a wide range
between $1.2100 and $1.2550 (versus
around $1.2290 currently), where he
expects the pair will trade until the
ECB provides further clarity on when it
will taper its bond-buying programme.
ECB policy makers see scope to wait
until their July meeting to announce
how they’ll end the programme, ac-
cording to euro-area officials familiar
with the matter.
When the ECB does announce the
timing of its withdrawal from quanti-
tative easing, Marinov expects volatil-
Reuters data. With investors focused on
earnings, the S&P 500 was set to rise by
almost 1% for the week, but the bench-
mark index is little changed from where
it ended 2017.
Trade tensions cast a shadow on an
otherwise rosy report about US eco-
nomic growth from the US Federal Re-
serve last week.
In the latest “Beige Book,” the Fed’s
periodic summary of contacts with
businesses, the words “tariff ” or “tar-
iffs” were mentioned 36 times, com-
pared to zero mentions in the March 7
Beige Book.
“Contacts in various sectors in-
cluding manufacturing, agriculture,
and transportation expressed concern
Fossan-Waage said. “The Lebara case may
show the limits.”
The Lebara bond sale was arranged by
Oslo-based Pareto Securities, the biggest
high-yield arranger in the Nordics be-
tween 2010 and 2017, according to its own
analysis. Lebara was the fourth-largest
deal it led alone in that period, but not the
only money-loser for those who bought
it. Pareto’s biggest deals were a combined
$1.3bn of debt raised for oil industry
players Oro Negro Drilling PTE and Sea
Trucks Group, which both later defaulted.
In January the brokerage helped arrange
Norwegian Air Shuttle ASA’s €65mn tap of
existing 7.25% notes due in 2019, which fell
three weeks later when the company said
2017 had been “a mess.”
“We hope the issuer is able to regain
confidence,” Pareto executives Inge
Edvardsen and Christian Ramm said of
Lebara in response to Bloomberg ques-
tions, adding that losses for investors were
“highly unfortunate.”
Pareto encourages private companies
marketing bonds to disclose as much
information as more-scrutinised public
companies, they said. Oro Negro and
Sea Trucks were among many energy
ity to return to the stagnant pair. Given
the relatively flat slope of the euro-
dollar volatility curve, Credit Agricole
recommends purchasing a six-month
ratio call spread.
The strategy expresses both a long-
term bullish view that the euro will
about the newly imposed and/or pro-
posed tariffs,” according to the report,
which covered the period from March
to early April.
Martin Anstice, the chief execu-
tive of Lam Research, said this week
that the chip equipment maker had
yet to see an impact on its business
from tariffs, but was watching for any
dampening of consumer confidence or
changes to domestic equipment com-
pany agendas.
“If things got a little bit tit-for-
tat, then there are obviously risks at a
minimum that we need to be attentive
to,” Anstice told analysts on a confer-
ence call.
Honeywell chief financial officer
companies sunk by whipsawing energy
prices and there were no disclosure
failures regarding Norwegian Air’s bonds,
they said. The bonds recovered to face
value last week after the owner of British
Airways said it was considering a takeover
of the discount airline.
In an August investor presentation
marketing the Lebara notes, Palmarium
and Pareto highlighted debt of roughly 5
times earnings, an unremarkable ratio for
junk-bond issuers. The real number may
be as much as 160 times, according to
Credit Suisse analyst Lee Hope. Their pitch
“barely discussed” the details of the busi-
ness and excludes entities where many
group costs are booked, Hope said.
Credit Suisse and brokerage Stifel Nico-
laus & Co have both identified Palmarium’s
reluctance to specify its source of funds
or other investments as a reason to stay
away from the bonds. Palmarium has said
those details are private and defended its
marketing practices.
Unaudited fourth-quarter figures
show that Lebara’s “underlying business
performs according to or better than as
outlined in the marketing materials,” said
Matt Pollard, an external spokesman for
trade higher and that volatility will
recover. Credit Agricole recommends
strikes at $1.2550 and $1.2800.
Investors can cheapen the cost of
purchasing call spreads through the
use of window barriers - levels in an
option structure that will void the
BUSINESS
Tom Szlosek called the China tariffs “a
fluid situation”, and that the diversified
industrial manufacturer was assessing
its exposure “while also actively devel-
oping mitigation plans.”
Any trade war would erode economic
growth and affect its business, said Ha-
mid Moghadam, CEO of Prologis Inc,
a real estate company specializing in
warehouses, but he added that “I don’t
think we’re quite there yet.”
“All of our customers that I’m aware
of have basically had their head down
doing their business and not paying too
much attention to what comes out in
the tweets in the morning until there’s
something specific they can react to,”
Moghadam said on his company’s call.
Palmarium. “The intention is to discon-
tinue” the money-losing units that weren’t
included in the presentation, “either by
sale or winding down,” he said.
Lebara, led by Graeme Oxby, the former
head of Liberty Global’s European mobile
business, came under investors’ scrutiny
when analysts questioned the accuracy of
quarterly results it filed on Feb. 26. It apol-
ogised on March 2 for a “genuine mistake”
in its accounts, which had not provided a
cash-flow statement or included money-
losing units. The bonds resumed a selloff
in April when updated filings also had to
be corrected less than 24 hours later.
Regulators have already curbed how
Scandinavian banks market new debt. In
2016, the European Securities and Markets
Authority told the region’s banks that
they shouldn’t provide shadow corporate
bond ratings, designed to mimic rating
agencies. Some brokerages have ignored
the directive.
“At the end of the day, bond investors
need to do their homework,” said Sami
Miettinen, a partner at corporate-finance
consultants Sisu in Helsinki. US-style rules
“would kill the market as the cost and
complexity would become overbearing.”
trade if breached within a specified
time period.
Strategy 2: Look elsewhere:
Though euro-dollar transactions ac-
count for roughly a quarter of daily
foreign-exchange turnover, FX traders
shouldn’t feel chained to the popular
pair, said Societe Generale strategist
Kit Juckes.
Uninspired euro-dollar traders need
look no further than crude oil for new
ideas. Among the year’s best-perform-
ing currencies are the crude-linked
Colombian peso, Mexican peso and
Norwegian krone, which have followed
oil’s roughly 12.5% year-to-date climb.
The yen could also be poised to
excite. Flight-to-quality bids have
pushed the Japanese currency up about
5% against the dollar in 2018 amid
mounting global trade tensions. Juckes
predicts that the dollar-yen pair will
“go mental” once the prospect of pol-
icy tightening from the Bank of Japan
becomes realistic. Monetary-policy
normalisation from the ECB will even-
tually benefit the euro as well, accord-
ing to Juckes, who sees fair value for
euro-dollar near $1.3000. But he warns
Gulf Times
Monday, April 23, 2018 7
Bond traders’
respite from
flattening
curve may
prove fleeting
Bloomberg
New York
Bond traders agonising over
the flattening US yield curve got
a bit of a break last week. But
with a flood of Treasury supply
about to hit the market, they’ll
have little time to catch their
breath.
The US will issue a combined
$96bn of two-, five- and seven-
year notes this week, the largest
slate of fixed-rate coupon sales
since 2014, according to BMO
Capital Markets. After a stretch
dominated by Federal Reserve
speakers, the offerings are likely
to refocus traders on the pros-
pect of ever-larger auctions to
cover swelling budget gaps.
That outlook will be ham-
mered home next week, when
the Treasury releases its latest
financing estimates for the
current and upcoming quarters.
With trillion-dollar deficits just
around the corner, the depart-
ment’s forecasts could very well
be market-moving.
“This week is basically just
a dress rehearsal to what is
bound to be one of the more
interesting Treasury refunding
meetings we’ve had in recent
years,” said Gennadiy Goldberg,
senior US rates strategist at
TD Securities. “There’s a lot of
supply coming, which is prob-
ably the understatement of the
century.”
The elevated issuance may
renew flattening pressure on
the yield curve. Spreads be-
tween Treasury maturities nar-
rowed last week to the lowest in
more than a decade, and then
saw a rare bout of steepening
as the week drew to a close.
With Fed speakers leading
traders to firm up expectations
for more rate hikes, two-year
yields reached about 2.46% on
Friday, the highest since Sep-
tember 2008. (Recall that for
much of last year, 10-year yields
struggled to climb above 2.4%.)
“We fully anticipate that
the front-end of the curve will
remain under pressure on the
combination of supply and
monetary policy – this week
being an important test of the
former,” BMO strategists Ian
Lyngen and Aaron Kohli wrote
Friday in a note.
Longer-term interest rates
are getting interesting again,
too. The benchmark 10-year
yield rose to just above 2.96% on
Friday, breaching the previous
four-year high of 2.9537% set in
February. That puts the widely
watched 3% level back in focus.
Then again, as traders
learned earlier this year, US eq-
uities don’t like higher interest
rates very much. The S&P 500
fell the past two sessions as 10-
year yields climbed, raising the
spectre of another tug-of-war
between the assets that could
slow the ascent in yields.
A move above 3% “wouldn’t
surprise me,” said John Briggs,
head of strategy, Americas, at
NatWest Markets. “Then I see
3.05% as the really big level. So
a lot of yield resistance here.”
There isn’t as much of a
struggle when it comes to
shorter maturities. Two-year
yields have risen in all but two
of 16 weeks this year.
that similar to the start of 2018, euro-
dollar could easily “chew through” the
next six months without much move-
ment. “It’s like watching grass grow,”
Juckes said of the pair. “You have to be
patient or find something else to do.”
Strategy 3: Embrace the range:
Traders looking to profit from euro-
dollar cross should consider simply
embracing the range, according to Sha-
hab Jalinoos, global head of FX trad-
ing strategy at Credit Suisse Group. A
stagnant exchange rate usually lends
itself to selling volatility, but that’s a
tough call for him to recommend with
three-month implieds already so low.
Instead, investors would benefit
from heeding recent highs and lows.
“Rigidly” following a strategy of sell-
ing near $1.2500 and buying toward
the March low of $1.2155 will allow you
to profit from price swings within that
range, said Jalinoos.
“If you’re disciplined and you pick
your levels and set your stops and
the range persists, you should make
some money over time,” he said. “Just
playing the range at this mature point
is the way to go.”
 Gulf Times
8 Monday, April 23, 2018

BUSINESS
SAUDI ARABIA KUWAIT OMAN
Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume
Abdullah Al Othaim Markets 173.40 2.82 174,571 Boubyan Intl Industries Hold 27.00 -5.26 11,700 Construction Materials Ind 0.03 0.00 -
Hail Cement 9.26 0.22 306,594 Gulf Investment House Ksc 15.40 -2.53 108,486 Computer Stationery Inds 0.26 0.00 -
Saudi Re For Cooperative Rei 8.97 -0.22 1,053,684 Boubyan Bank K.S.C 474.00 0.42 928,811 Bankmuscat Saog 0.38 -0.52 1,653,061
Solidarity Saudi Takaful Co 22.62 1.03 379,430 Ahli United Bank B.S.C 182.00 0.00 1,280,999 Bank Sohar 0.15 2.67 118,051
Amana Cooperative Insurance 19.69 1.03 451,685 Osos Holding Group Co 89.00 0.00 100 Bank Nizwa 0.09 -1.15 458,695
Alabdullatif Industrial Inv 13.62 0.29 262,429 Al-Eid Food Ksc 54.00 0.00 7,000 Bank Dhofar Saog 0.19 0.00 -
Saudi Printing & Packaging C 19.87 -1.92 3,127,937 Qurain Petrochemical Industr 349.00 -0.29 110,145 Areej Vegetable Oils Saoc 0.00 0.00 -
Sanad Cooperative Insurance 0.00 0.00 - Advanced Technology Co 0.00 0.00 - Aloula Co 0.53 0.00 -
Saudi Paper Manufacturing Co 9.34 -0.85 1,193,203 Ekttitab Holding Co Sak 27.00 0.00 57,740 Al-Omaniya Financial Service 0.28 0.00 -
Alinma Bank 20.92 -0.81 19,786,053 Kout Food Group Ksc 0.00 0.00 - Al-Hassan Engineering Co 0.05 0.00 -
QATAR Almarai Co 59.31 0.95 892,729 Real Estate Trade Centers Co 25.40 2.83 100 Al-Fajar Al-Alamia Co 0.75 0.00 -
Falcom Saudi Equity Etf 32.20 0.63 159,039 Acico Industries Co Kscc 250.00 0.00 21,645 Al-Anwar Ceramic Tiles Co 0.12 0.00 -
Company Name Lt Price % Chg Volume United International Transpo 38.65 0.57 167,495 Kipco Asset Management Co 67.00 0.00 20,000 Al Suwadi Power 0.13 0.00 3,500
Hsbc Amanah Saudi 20 Etf 30.35 0.00 93 National Petroleum Services 720.00 -2.04 10,600 Al Shurooq Inv Ser 0.00 0.00 -
Qatar National Bank 153.00 -0.33 39,892 Saudi International Petroche 23.43 -0.55 1,050,286 Alimtiaz Investment Co Kscc 127.00 0.79 103,336 Al Sharqiya Invest Holding 0.12 0.00 -
Industries Qatar 111.00 -1.33 91,738 Falcom Petrochemical Etf 32.75 0.00 12 Ras Al Khaimah White Cement 82.00 0.00 25,000 Al Maha Petroleum Products M 0.84 0.00 -
Masraf Al Rayan 36.32 -0.44 105,833 Walaa Cooperative Insurance 34.47 0.64 368,668 Kuwait Reinsurance Co Ksc 192.00 0.00 122,040 Al Maha Ceramics Co Saoc 0.25 0.00 -
Ooredoo Qpsc 83.50 0.60 51,446 Bank Al-Jazira 13.05 -0.31 30,152,720 Kuwait & Gulf Link Transport 100.90 0.00 58,261 Al Madina Takaful Co Saoc 0.10 0.00 5,000
Ezdan Holding Group 11.61 -3.81 614,401 Al Rajhi Bank 84.32 0.14 2,365,287 Human Soft Holding Co Ksc 3,949.00 0.74 119,989 Al Madina Investment Co 0.05 0.00 -
Qatar Islamic Bank 108.00 -0.46 39,010 Samba Financial Group 28.53 -1.65 1,248,252 Automated Systems Co Kscc 165.00 0.00 1 Al Kamil Power Co 0.38 0.00 -
Qatar Electricity & Water Co 201.00 -0.49 8,686 United Electronics Co 83.46 1.27 205,863 Metal & Recycling Co 64.00 6.67 240 Al Jazerah Services -Pfd 0.55 0.00 -
Mesaieed Petrochemical Holdi 17.00 2.91 3,109,786 Allied Cooperative Insurance 21.05 -0.61 353,493 Gulf Franchising Holding Co 30.00 0.00 10,285 Al Jazeera Steel Products Co 0.33 0.00 -
Barwa Real Estate Co 35.80 -1.24 168,060 Malath Insurance 16.31 0.18 979,052 Al-Enma’a Real Estate Co 32.40 2.86 589,725 Al Jazeera Services 0.17 0.00 -
Qatar Insurance Co 37.50 -0.79 94,807 Alinma Tokio Marine 24.79 0.00 93,501 National Mobile Telecommuni 875.00 -4.37 46,462 Al Izz Islamic Bank 0.08 0.00 -
Qatar Fuel Qsc 127.50 3.07 198,564 Arabian Shield Cooperative 46.67 -0.15 160,846 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 -
Commercial Bank Pqsc 35.65 -0.70 174,120 Savola 41.79 -0.31 170,669 Housing Finance Co Sak 0.00 0.00 - Al Batinah Power 0.14 0.00 -
Doha Bank Qpsc 27.57 -0.65 388,436 Wafrah For Industry And Deve 16.52 0.98 153,069 Al Salam Group Holding Co 33.90 0.00 49,900 Al Batinah Hotels 1.13 0.00 -
Qatar Gas Transport(Nakilat) 14.63 -0.34 277,133 Fitaihi Holding Group 12.77 0.39 358,713 United Foodstuff Industries 0.00 0.00 - Al Batinah Dev & Inv 0.10 0.00 -
Qatar International Islamic 54.20 0.37 87,670 Tourism Enterprise Co/ Shams 35.24 0.09 179,404 Al Aman Investment Company 50.00 0.00 46,000 Al Anwar Holdings Saog 0.15 0.00 -
Qatar Navigation 52.00 0.00 9,470 Mashaer Holding Co Ksc 56.00 -1.75 1,650 Ahli Bank 0.16 0.00 118,237
Al Ahli Bank 31.15 0.00 13,300 Manazel Holding 37.70 0.27 6,537,427 Acwa Power Barka Saog 0.74 0.00 -
Vodafone Qatar 9.30 0.22 3,628,311 Mushrif Trading & Contractin 0.00 0.00 - Abrasives Manufacturing Co S 0.05 0.00 -
Aamal Co 11.05 -1.78 282,168 KUWAIT Tijara And Real Estate Inves 57.00 -3.23 13,020 A’saffa Foods Saog 0.59 0.00 -
United Development Co 14.20 0.21 270,665 Kuwait Building Materials 0.00 0.00 - 0Man Oil Marketing Co-Pref 0.25 0.00 -
Al Khalij Commercial Bank 11.29 0.98 64,024 Jazeera Airways Co Ksc 638.00 -0.31 92,600
Company Name Lt Price % Chg Volume
Qatar General Insurance & Re 46.75 0.00 87 Commercial Real Estate Co 78.50 1.95 15,000
Qatari Investors Group 33.00 -0.99 17,843 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 -
Qatar National Cement Co 54.78 0.00 - Sultan Center Food Products 38.90 2.91 148,042 National International Co 57.50 0.88 1,026
Gulf International Services 21.24 2.76 425,472 Kuwait Foundry Co Sak 249.00 0.81 10 Taameer Real Estate Invest C 29.50 8.86 200,400 UAE
Al Meera Consumer Goods Co 137.00 0.00 7,160 Kuwait Financial Centre Sak 110.00 0.00 12,100 Gulf Cement Co 84.00 -1.18 15,000
Mannai Corporation Qsc 48.00 -0.95 14,460 Ajial Real Estate Entmt 147.00 0.00 2,084 Heavy Engineering And Ship B 299.00 5.28 1,647,160 Company Name Lt Price % Chg Volume
Gulf Warehousing Company 40.50 -0.98 37,453 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 -
Medicare Group 67.40 -1.16 7,208 Kuwait Finance & Investment 44.50 -0.89 1,000 National Real Estate Co 116.00 -0.85 25,000 Waha Capital Pjsc 1.75 -2.23 152,074
Qatar Industrial Manufactur 39.50 -1.00 535 National Industries Co Ksc 160.00 0.00 17,870 Al Safat Energy Holding Comp 26.50 0.00 100 United Insurance Company 2.00 0.00 -
Qatar First Bank 6.09 0.16 409,227 Kuwait Real Estate Holding C 22.80 -0.87 61,020 Kuwait National Cinema Co 1,099.00 0.00 10,504 United Arab Bank Pjsc 1.05 0.00 -
Zad Holding Co 71.98 -1.40 24,893 Securities House/The 44.60 -3.04 381,000 Danah Alsafat Foodstuff Co 47.00 -6.00 561,641 Union National Bank/Abu Dhab 3.68 0.00 -
Widam Food Co 64.98 1.37 38,925 Boubyan Petrochemicals Co 820.00 -0.61 183,474 Independent Petroleum Group 400.00 0.00 2,210 Union Insurance Co 1.26 -9.35 7,368
Mazaya Qatar Real Estate Dev 7.30 1.53 713,929 Al Ahli Bank Of Kuwait 345.00 -4.17 58,060 Kuwait Real Estate Co Ksc 47.80 -0.21 1,746,598 Union Cement Co 1.85 0.00 -
Qatar Islamic Insurance 50.89 0.00 - Ahli United Bank (Almutahed) 292.00 0.00 30,345 Salhia Real Estate Co Ksc 336.00 0.00 4,950 Umm Al Qaiwain Cement Indust 1.00 0.00 -
Doha Insurance Co 12.30 0.00 2,455 National Bank Of Kuwait 727.00 0.55 1,286,306 Gulf Cable & Electrical Ind 395.00 0.00 20,000 Sharjah Islamic Bank 1.24 0.00 175,000
Salam International Investme 5.73 1.96 127,625 Commercial Bank Of Kuwait 383.00 0.00 1,000 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 -
Investment Holding Group 5.65 0.18 489,561 Kuwait International Bank 224.00 1.36 1,313,657 Kuwait Finance House 516.00 -0.19 1,337,991 Sharjah Group 1.15 0.00 -
National Leasing 10.06 -1.18 137,078 Gulf Bank 258.00 0.78 1,667,073 Gulf North Africa Holding Co 35.80 3.77 370,000 Sharjah Cement & Indus Devel 1.19 10.19 1,000
Dlala Holding 11.05 -0.90 44,316 Al-Massaleh Real Estate Co 34.00 -7.61 5,000 Hilal Cement Co 67.00 0.00 7,000 Ras Al-Khaimah National Insu 3.68 0.00 -
Al Khaleej Takaful Group 11.50 -0.09 12,917 Al Arabiya Real Estate Co 32.50 3.17 50,000 Osoul Investment Kscc 60.00 0.00 57,700 Ras Al Khaimah White Cement 0.97 0.00 -
Qatar & Oman Investment Co 7.38 2.50 7,840 Kuwait Remal Real Estate Co 31.50 0.00 324,940 Gulf Insurance Group Ksc 655.00 0.00 9,000 Ras Al Khaimah Ceramics 2.48 0.00 19,125
Islamic Holding Group 28.50 1.79 10,679 Alkout Industrial Projects C 0.00 0.00 - Kuwait Food Co (Americana) 1,261.00 0.00 250 Ras Al Khaimah Cement Co Psc 0.70 0.00 -
Qatar Cinema & Film Distrib 22.61 0.00 - A’ayan Real Estate Co Sak 57.00 0.00 200 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 2.70 0.00 -
Qatar Exchange Index Etf 95.02 -0.66 29,611 Investors Holding Group Co.K 14.00 0.00 1,377,000 Aayan Leasing & Investment 30.50 1.33 3,213,200 Rak Properties 0.67 1.52 1,078,448
Qatar German Co For Medical 5.71 -1.55 17,834 Al-Mazaya Holding Co 98.50 0.10 148,100 Alrai Media Group Co Ksc 129.00 0.78 33,500 Ooredoo Qpsc 90.00 0.00 -
Al-Madar Finance & Invt Co 26.60 0.76 100 National Investments Co 100.00 -0.89 30,035 Oman & Emirates Inv(Emir)50% 0.50 0.00 -
Gulf Petroleum Investment 25.80 -1.90 289,000 Commercial Facilities Co 162.00 1.89 25,000 Nbad Oneshare Msci Uae Ucits 6.20 0.00 -
Mabanee Co Sakc 670.00 -1.18 276,098 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - National Takaful Company 0.46 0.00 -
SAUDI ARABIA City Group 0.00 0.00 - Afaq Educational Services Co 0.00 0.00 - National Marine Dredging Co 3.40 3.03 535
Inovest Co Bsc 72.00 1.41 1 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.51 0.00 -
Company Name Lt Price % Chg Volume Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 132.00 10.00 1,000 National Corp Tourism & Hote 2.05 0.00 4,800
Al-Deera Holding Co 22.00 0.00 18,569 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.95 0.00 -
United Wire Factories Compan 16.51 0.36 950,852 Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.40 0.00 1,040,000
Etihad Etisalat Co 15.69 0.71 3,299,696 Mena Real Estate Co 30.00 0.00 11,132 National Bank Of Fujairah 2.97 0.00 -
Dar Al Arkan Real Estate Dev 13.77 0.58 15,669,853 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 -
Saudi Hollandi Bank 0.00 0.00 - Amar Finance & Leasing Co 40.00 0.00 2,150 OMAN Methaq Takaful Insurance 0.80 0.00 45,000
Rabigh Refining And Petroche 29.45 0.20 1,293,815 United Projects For Aviation 739.00 2.92 5,396 Manazel Real Estate Pjsc 0.54 -1.82 2,615,363
Banque Saudi Fransi 32.83 1.48 445,323 National Consumer Holding Co 95.00 0.00 100
Company Name Lt Price % Chg Volume Invest Bank 2.24 -4.27 165,000
Saudi Enaya Cooperative Insu 15.62 0.06 87,462 Amwal International Investme 48.00 -1.64 2,380 Voltamp Energy Saog 0.40 0.00 - Intl Fish Farming Co Pjsc 1.43 3.62 60,000
Mediterranean & Gulf Insuran 26.17 -0.08 104,810 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.85 0.00 -
Saudi British Bank 33.18 3.36 242,420 Equipment Holding Co K.S.C.C 29.90 3.82 718,298 United Power Co Saog 4.10 0.00 - Gulf Pharmaceutical Ind Psc 2.35 0.00 -
Mohammad Al Mojil Group Co 0.00 0.00 - Nafais Holding 0.00 0.00 - United Finance Co 0.11 0.00 - Gulf Medical Projects 1.90 0.00 -
Red Sea International Co 19.38 1.20 454,210 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.05 0.96 256,750
Takween Advanced Industries 9.73 0.31 399,700 Arkan Al Kuwait Real Estate 74.00 1.37 150,000 Takaful Oman 0.14 0.00 - Fujairah Cement Industries 1.20 0.00 -
Sabb Takaful 22.38 -0.27 157,917 Gfh Financial Group Bsc 100.60 -1.37 100,000 Taageer Finance 0.11 0.00 5,000 Fujairah Building Industries 1.56 0.00 -
Saudi Arabian Fertilizer Co 69.80 -2.10 349,034 Energy House Holding Co Kscp 27.80 5.30 500 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 4.77 0.00 -
National Gypsum 12.67 0.64 576,366 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.12 0.00 - First Gulf Bank 0.00 0.00 -
Saudi Ceramic Co 24.78 2.82 1,196,589 Kuwait Co For Process Plant 165.00 0.00 15,000 Sohar Poultry 0.21 0.00 - Finance House 1.70 0.00 -
National Gas & Industrializa 30.20 -0.07 55,146 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.60 0.00 - Eshraq Properties Co Pjsc 0.72 0.00 3,110,000
Saudi Pharmaceutical Industr 30.61 0.56 190,990 National Shooting Company 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.25 -0.86 156,408
Thimar 32.46 2.62 992,963 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 1.70 0.00 200 Emirates Insurance Co. (Psc) 6.25 -0.79 481,228
National Industrialization C 20.87 2.50 4,776,015 Al-Ahleia Insurance Co Sakp 438.00 0.00 119 Sharqiyah Desalination Co Sa 3.96 0.00 - Emirates Driving Company 8.60 0.00 -
Saudi Transport And Investme 0.00 0.00 - Wethaq Takaful Insurance Co 31.50 9.76 500 Sembcorp Salalah Power & Wat 0.22 0.00 - Dana Gas 0.94 -2.08 5,937,593
Saudi Electricity Co 21.74 1.30 1,939,140 Salbookh Trading Co Kscp 44.00 0.00 3,500 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 0.60 0.00 -
Saudi Arabia Refineries Co 44.15 0.25 477,944 Aqar Real Estate Investments 74.50 0.00 4,495 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.10 0.00 -
Arriyadh Development Company 19.11 -1.09 345,805 Hayat Communications 80.00 0.00 50 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.80 -6.98 220,000
Al-Baha Development & Invest 21.61 1.41 450,943 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.38 0.00 - Arkan Building Materials Co 0.61 -1.61 640,715
Saudi Research And Marketing 93.13 1.89 581,517 Soor Fuel Marketing Co Ksc 113.00 0.89 11,756 Renaissance Services Saog 0.39 -1.03 7,477 Alkhaleej Investment 2.15 0.00 -
Aldrees Petroleum And Transp 29.11 0.59 595,985 Alargan International Real 0.00 0.00 - Raysut Cement Co 0.72 0.00 - Aldar Properties Pjsc 2.08 -0.95 4,344,779
Saudi Vitrified Clay Pipe Co 51.37 -0.33 68,050 Burgan Co For Well Drilling 0.00 0.00 - Port Service Corporation 0.00 0.00 - Al Wathba National Insurance 12.75 0.00 -
Jarir Marketing Co 168.88 -1.27 90,984 Kuwait Resorts Co Kscc 59.00 -1.34 40,005 Phoenix Power Co Saoc 0.14 0.00 - Al Khazna Insurance Co 0.24 4.35 27,366
Arab National Bank 31.35 -1.97 291,525 Oula Fuel Marketing Co 113.00 0.00 17,371 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 -
Yanbu National Petrochemical 72.26 -2.11 287,527 Palms Agro Production Co 80.00 0.00 6,500 Ooredoo 0.50 0.00 500 Al Dhafra Insurance Co. P.S. 3.85 0.00 -
Arabian Cement 32.99 -0.24 163,886 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.37 1.10 314,247 Al Buhaira National Insuranc 2.20 0.00 -
Middle East Specialized Cabl 8.55 -0.12 775,434 Mubarrad Holding Co Ksc 69.00 0.00 74,500 Oman United Insurance Co 0.33 0.00 - Al Ain Ahlia Ins. Co. 38.00 0.00 -
Al Khaleej Training And Educ 19.82 0.56 160,684 Al Mowasat Health Care Co 0.00 0.00 - Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 4.30 -1.83 199,332
Al Sagr Co-Operative Insuran 25.49 2.33 565,031 Shuaiba Industrial Co 230.00 0.00 10 Oman Telecommunications Co 0.85 -0.93 488,250 Abu Dhabi Ship Building Co 2.07 -0.96 10,606
Trade Union Cooperative Insu 22.75 0.53 364,009 Aan Digital Services Co 0.00 0.00 - Oman Refreshment Co 1.80 0.00 - Abu Dhabi Natl Co For Buildi 0.54 0.00 -
Arabia Insurance Cooperative 18.48 5.54 1,064,083 First Takaful Insurance Co 49.00 0.00 700 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 5.00 0.00 -
Saudi Chemical Company 33.90 0.53 93,244 Kuwaiti Syrian Holding Co 31.00 -1.59 31,000 Oman Orix Leasing Co. 0.18 0.00 - Abu Dhabi National Insurance 3.60 0.00 -
Fawaz Abdulaziz Alhokair & C 27.99 0.54 633,229 National Cleaning Company 53.00 -1.67 166,924 Oman Oil Marketing Company 1.32 0.00 200 Abu Dhabi National Hotels 2.78 0.00 -
Bupa Arabia For Cooperative 109.45 -0.36 100,800 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.16 0.00 - Abu Dhabi National Energy Co 1.23 3.36 19,344,994
Wafa Insurance 15.84 0.06 218,904 United Real Estate Company 57.00 -5.00 5,000 Oman Investment & Finance 0.12 0.00 - Abu Dhabi Islamic Bank 3.88 0.00 576,384
Jabal Omar Development Co 47.00 -0.63 943,176 Agility 835.00 0.97 349,712 Oman Intl Marketing 0.52 0.00 -
Saudi Basic Industries Corp 121.95 -0.60 3,746,252 Kuwait & Middle East Fin Inv 23.00 5.50 500 Oman Hotels & Tourism Co 0.00 0.00 -
Saudi Kayan Petrochemical Co 14.49 -2.29 11,836,387 Fujairah Cement Industries 75.00 0.00 100,000 Oman Foods International 0.00 0.00 -
Etihad Atheeb Telecommunicat 5.88 0.86 1,517,052 Livestock Transport & Tradng 220.00 0.00 10,000 Oman Flour Mills 0.70 0.00 - BAHRAIN
Co For Cooperative Insurance 80.23 0.73 184,502 International Resorts Co 24.20 1.68 568,733 Oman Fisheries Co 0.12 -1.68 10,000
National Petrochemical Co 27.44 -0.04 393,260 National Industries Grp Hold 154.00 0.00 523,828 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume
Gulf Union Cooperative Insur 17.38 -0.29 167,691 Marine Services Co Ksc 0.00 0.00 - Oman Europe Foods Industries 1.00 0.00 -
Gulf General Cooperative Ins 17.08 0.65 292,865 Oman Education & Training In 0.18 0.00 - Zain Bahrain Bscc 0.09 0.00 260,000
Warba Insurance Co 64.00 3.23 3,500
Basic Chemical Industries 24.23 -0.82 148,368 Oman Chromite 3.64 0.00 - United Paper Industries Bsc 0.33 0.00 460,000
Kuwait United Poultry Co 0.00 0.00 -
Saudi Steel Pipe Co 21.78 0.00 225,475 Oman Chlorine 0.40 0.00 - United Gulf Investment Corp 0.00 0.00 -
First Dubai Real Estate Deve 41.00 -8.89 323,000
Buruj Cooperative Insurance 33.83 -0.50 100,435 Oman Ceramic Company 0.42 0.00 - United Gulf Bank 0.00 0.00 -
Al Arabi Group Holding Co 75.00 -2.60 42,313
Mouwasat Medical Services Co 196.07 0.60 16,583 Oman Cement Co 0.36 0.00 - Trafco Group Bsc 0.33 0.00 35,000
Kuwait Hotels Sak 0.00 0.00 -
Southern Province Cement Co 41.76 1.26 515,139 Oman Cables Industry 0.89 0.00 - Takaful International Co 0.09 0.00 1,112,500
Mobile Telecommunications Co 415.00 -0.95 467,446
Maadaniyah 19.49 0.57 149,271 Oman Agricultural Dev 0.00 0.00 - Taib Bank -$Us 0.00 0.00 -
Al Safat Real Estate Co 0.00 0.00 -
Yamama Cement Co 16.98 -0.29 561,853 Oman & Emirates Inv(Om)50% 0.12 0.00 - Seef Properties 0.22 0.93 108,000
Tamdeen Real Estate Co Ksc 350.00 0.00 890
Jazan Energy And Development 16.99 -0.06 118,717 Natl Aluminium Products 0.34 0.00 - Sico Bsc 0.00 0.00 -
Al Mudon Intl Real Estate Co 30.00 0.00 125,333
Zamil Industrial Investment 25.92 0.12 77,588 National Securities 0.04 0.00 - National Hotels Co 0.00 0.00 -
Kuwait Cement Co Ksc 435.00 -1.14 356,000
Alujain Corporation (Alco) 27.14 0.71 1,080,435 National Real Estate Develop 5.00 0.00 - National Bank Of Bahrain Bsc 0.61 0.00 3,400
Sharjah Cement & Indus Devel 79.90 -0.13 3,000
Tabuk Agricultural Developme 12.33 1.15 926,885 National Pharmaceutical 0.12 0.00 - Nass Corp Bsc 0.11 0.00 40,000
Kuwait Portland Cement Co 1,083.00 0.28 5,175
United Co-Operative Assuranc 12.64 0.24 96,590 National Mineral Water 0.10 0.00 - Khaleeji Commercial Bank 0.09 0.00 19,000
Educational Holding Group 315.00 0.00 320
Qassim Cement/The 41.07 -0.24 56,518 National Hospitality Institu 0.00 0.00 - Ithmaar Holding Bsc 0.11 0.00 96,741
Bahrain Kuwait Insurance 0.00 0.00 -
Saudi Advanced Industries 13.60 -0.37 301,672 National Gas Co 0.27 0.00 - Investcorp Bank -$Us 9.30 3.91 125,000
Asiya Capital Investments Co 38.00 0.00 14,098
Kingdom Holding Co 9.00 0.00 178,791 National Finance Co 0.13 0.00 - Inovest Co Bsc 0.00 0.00 -
Kuwait Investment Co 137.00 -0.72 113,000
Saudi Arabian Amiantit Co 7.89 -4.13 4,910,253 National Detergent Co Saog 0.65 0.00 - Gulf Monetary Group 0.00 0.00 -
Burgan Bank 258.00 0.00 124,285
Al Jouf Agriculture Developm 28.45 -0.11 283,961 National Biscuit Industries 3.75 0.00 - Gulf Hotel Group B.S.C 0.51 0.00 20,000
Kuwait Projects Co Holdings 275.00 0.00 3,645
Saudi Industrial Development 9.50 0.11 250,871 National Bank Of Oman Saog 0.19 0.00 - Gfh Financial Group Bsc 0.36 0.00 32,871,038
Al Madina For Finance And In 29.50 2.43 10
Bishah Agriculture 0.00 0.00 - Muscat Thread Mills Co 0.08 0.00 - Esterad Investment Co B.S.C. 0.11 0.00 34,500
Kuwait Insurance Co 251.00 0.00 94,123
Riyad Bank 14.81 -0.60 762,480 Muscat National Holding 0.00 0.00 - Delmon Poultry Co 0.00 0.00 -
Al Masaken Intl Real Estate 84.00 0.00 100
The National Agriculture Dev 38.51 0.84 193,288 Muscat Gases Company Saog 0.46 0.00 - Bmmi Bsc 0.71 0.00 31,260
Intl Financial Advisors 25.70 -2.65 1,053,000
Halwani Bros Co 56.24 -0.48 5,968 Muscat Finance 0.10 0.00 - Bmb Investment Bank 0.00 0.00 -
First Investment Co Kscc 36.00 -1.10 200,055
Arabian Pipes Co 12.81 0.31 599,963 Majan Glass Company 0.18 0.00 - Bbk Bsc 0.45 -0.44 20,110
Al Mal Investment Company 19.00 -1.55 117,633
Eastern Province Cement Co 26.85 0.19 62,103 Majan College 0.44 0.00 - Bankmuscat Saog 0.00 0.00 -
Bayan Investment Co Kscc 33.50 -3.18 130,000
Al Gassim Investment Holding 0.00 0.00 - Hsbc Bank Oman 0.11 0.00 - Banader Hotels Co 0.00 0.00 -
Egypt Kuwait Holding Co Sae 295.00 0.00 11,025
Filing & Packing Materials M 34.67 2.15 377,723 Hotels Management Co Interna 1.25 0.00 - Bahrain Tourism Co ` 0.00 -
Coast Investment Development 30.00 0.33 67,350
Saudi Cable Co 10.09 -0.20 545,859 Gulf Stone 0.12 0.00 - Bahrain Telecom Co 0.22 0.00 699,157
Privatization Holding Compan 58.00 -0.17 100,000
Tihama Advertising & Public 47.22 1.68 1,260,715 Gulf Plastic Industries Co 0.00 0.00 - Bahrain Ship Repair & Engin 0.00 0.00 -
Kuwait Medical Services Co 0.00 0.00 -
Saudi Investment Bank/The 16.98 1.43 576,788 Gulf Mushroom Company 0.31 0.00 - Bahrain National Holding 0.00 0.00 -
Injazzat Real State Company 92.00 0.00 63,714
Astra Industrial Group 20.59 7.13 2,628,462 Gulf Investments Services 0.11 0.00 - Bahrain Kuwait Insurance 0.34 0.00 10,004
Kuwait Cable Vision Sak 21.20 0.00 6,700
Saudi Public Transport Co 16.62 0.54 1,994,010 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - Bahrain Islamic Bank 0.13 1.56 20,000
Sanam Real Estate Co Kscc 32.00 0.00 24,799
Taiba Holding Co 31.50 0.54 129,839 Gulf International Chemicals 0.21 0.00 - Bahrain Flour Mills Co 0.36 0.00 4,620
Ithmaar Holding Bsc 31.20 0.32 199,534
Saudi Industrial Export Co 265.97 -0.29 31,487 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Family Leisure Co 0.00 0.00 -
Aviation Lease And Finance C 360.00 -2.17 1,520,180
Saudi Real Estate Co 22.82 -0.65 185,090 Global Fin Investment 0.11 0.00 - Bahrain Duty Free Complex 0.75 0.00 16,160
Arzan Financial Group For Fi 26.50 -1.12 415,000
Saudia Dairy & Foodstuff Co 118.00 -0.09 11,477 Galfar Engineering&Contract 0.10 0.00 23,620 Bahrain Commercial Facilitie 0.72 1.41 12,000
Ajwan Gulf Real Estate Co 21.30 0.00 18,500
National Shipping Co Of/The 30.86 -0.77 895,984 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Cinema Co 0.00 0.00 -
Kuwait Business Town Real Es 43.10 -4.22 650,000
Methanol Chemicals Co 10.19 0.00 1,578,841 Financial Services Co. 0.18 0.00 - Bahrain Car Park Co 0.00 0.00 -
Future Kid Entertainment And 119.00 9.17 1,000
Chubb Arabia Cooperative Ins 25.24 2.27 809,969 Financial Corp/The 0.10 0.00 - Arab Insurance Group(Bsc)-$ 0.00 0.00 -
Specialities Group Holding C 54.90 0.55 50,000
Mobile Telecommunications Co 8.03 5.38 18,493,656 Dhofar University 0.00 0.00 - Arab Banking Corp Bsc-$Us 0.31 0.00 1,000,000
Abyaar Real Eastate Developm 19.10 -1.04 190,800
Saudi Arabian Coop Ins Co 20.39 1.39 1,010,861 Dhofar Tourism 0.49 0.00 - Aluminium Bahrain Bsc 0.64 0.00 200,000
Dar Al Thuraya Real Estate C 0.00 0.00 -
Axa Cooperative Insurance 27.90 -2.48 392,941 Dhofar Poultry 0.18 0.00 - Albaraka Banking Group 0.30 0.00 89,500
Al-Dar National Real Estate 0.00 0.00 -
Alsorayai Group 16.16 -0.19 679,412 Dhofar Intl Development 0.31 0.00 - Al-Salam Bank 0.12 0.00 159,580
Kgl Logistics Company Kscc 46.80 1.52 1,574,489
Weqaya For Takaful Insurance 0.00 0.00 - Dhofar Insurance 0.09 8.97 5,100 Solidarity Bahrain Bsc 0.00 0.00 -
Combined Group Contracting 432.00 0.23 19,345
Bank Albilad 24.19 -1.06 780,518 Dhofar Fisheries & Food Indu 1.28 0.00 - Ahli United Bank B.S.C 0.62 -0.81 472,700
Jiyad Holding Co Ksc 0.00 0.00 -
Al-Hassan G.I. Shaker Co 10.68 0.09 1,251,584 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 -
Wataniya Insurance Co 28.88 -0.96 114,625 Dhofar Beverages Co 0.26 0.00 - LATEST MARKET CLOSING FIGURES

Nestle, Unilever forgo price
increases to move product
Reuters
Zurich/London
F
irst-quarter sales growth at Nes-
tle and Unilever was driven al-
most entirely by shifting more
goods, in a stark illustration of how
hard it is for consumer products mak-
ers to raise prices in a competitive retail
environment.
Multinational makers of everything
from soup to soap are under pressure
to boost revenues as consumers flock
to fresher products and newer brands.
The large retailers they sell through
face their own pressure to keep prices
down, as they battle new competition
from drug stores and Amazon.com.
The result has been mounting ten-
sion, which recently erupted in a clash
between Nestle and European retailers
that saw some of the Swiss company’s
goods briefly taken off store shelves.
That row was itself an echo of a 2016
standoff between Unilever and British
supermarket giant Tesco.
The results from both manufacturers
suggested those tensions remain high.
Nestle’s 2.8% underlying sales
growth only got a 0.2% boost from
higher prices, and Unilever’s 3.4%
growth just a 0.1% lift.
“We expect chronically weak pricing
from both Unilever and Nestle to play
to the market’s fears of weak pricing
power, fuelled by channel shift, in the
face of rising commodities (prices),”
Jefferies analyst Martin Deboo said.
The pricing pressure was even
tougher for US giant Procter & Gamble,
which has reported just a 1% rise in un-
derlying quarterly sales growth.
That included a 2% hit from lower
prices, offset by higher volumes and
other factors.
The maker of Gillette razors cut
some prices last year amid competition
from subscription-based rivals such as
Dollar Shave Club, owned by Unilever,
and Harry’s.
Unilever shares were down 2%,
while Nestle’s were up 0.3%, as inves-
tors looked past the pricing issue at the
Swiss food giant to the fact its overall
sales exceeded expectations after sev-
eral disappointing quarters.
That beat, and a pick-up in volume,
is welcome news for Nestle’s new CEO
Mark Schneider, who took the top job
at the maker of KitKat chocolate bars
and Maggi soups in 2017 with the mis-
sion to return it to solid growth after six
years of decline.
Schneider said underlying growth
would improve during 2018.
Consumer sentiment in Europe, as
measured by researchers GfK, declined
in March to a reading of 20.6 points
from 21.1 points in December.
“The mood of European consumers
is proving to be rather less optimistic in
the first quarter of 2018 than at the end
of last year,” the group said. “In France
A Swiss national flag flies above the headquarters of the Nestle headquarters in Vevey. Nestle’s 2.8% underlying sales growth only got a 0.2% boost from higher prices.
and Austria, in particular, the euphoria
appears to have diminished temporar-
ily in the wake of the elections.”
Consumer goods makers and retail-
ers are always in complex negotiations
around pricing and promotions to suit
their ambitions.
If a manufacturer wants to take mar-
ket share, it might discount, or seek
price increases to boost margins.
Russ Mould, investment director at
AJ Bell, said trends suggested Unilever
and some of its peers had “blinked a
little” on pricing due to growing com-
petition, even though they represent
powerful, established brands.
“Brands are still a vital part of any
company’s pricing power armoury
but... some companies are stronger in
the food chain than others, depending
on size, route to market and the avail-
ability of alternatives,” Mould said.
Nestle and Unilever are two of the
world’s biggest packaged goods com-
panies, with the Swiss giant home to
Gerber baby food and Perrier water,
and its Anglo-Dutch rival the company
behind Dove soap and Ben & Jerry’s ice
cream.
This is Unilever’s second quarter of
volume-led sales growth, after several
quarters fuelled by pricing.
Finance chief Graeme Pitkethly said
the earlier price rises, and correspond-
ing weak volume, were partly due to
currency-related inflationary pres-
sures in certain markets that have since
abated, giving consumers more confi-
dence to spend on everyday items.
As a result, sales volume in emerging
markets, where Unilever does the ma-
jority of its sales, was ahead of expec-
tations, according to Barclays analysts.
“The good news is when you have
more muted pricing, more consumers
buy more of your brands,” Pitkethly
said, adding that minimal commodity
price inflation had also inhibited the
ability to raise prices.
He said the main pricing trouble
spots were Brazil and Indonesia, which
both saw prices fall due to weak con-
sumer sentiment; India, due to a tax
change put through last year; and Brit-
ain, where retail competition is fierce.
These four countries make up 25% of
Unilever’s sales, Pitkethly said.
Other countries, such as Turkey and
Mexico, saw a good balance, he said.
The overall balance of price and vol-
ume would improve in the second half
of the year, Pitkethly said.
Both companies confirmed their
BUSINESS
sales guidance for the year, with Nes-
tle aiming for 2-4% underlying sales
growth and Unilever looking for 3-5%
growth.
Unilever said growth in the second
quarter would be near the lower end of
the range.
Nestle also said it was on track to
return to mid-single-digit underlying
sales growth by 2020.
Nestle highlighted a return to vol-
ume growth in the Americas, helped
by strong petcare and coffee creamers
sales, while growth in Asia benefited
from the timing of the Chinese New
Year.
Unilever also called out a strong start
in North America, helped by innova-
tions such as the new brand Love Beau-
ty and Planet and acquisitions such as
Dollar Shave Club.
Gulf Times
Monday, April 23, 2018 15
Takeda adds
more cash
in boosting
Shire bid
over $60bn
Bloomberg
London
Takeda Pharmaceutical Co
sweetened its offer for drug
maker Shire Plc to more than
$60bn after three prior bids
were rejected, wooing investors
in the US company with a higher
cash component.
The Japanese company boosted
its offer to £47 ($65.84) a share
from £46.50 a share, confirming
a Bloomberg News report that it
was considering a higher bid for
Lexington, Massachusetts-based
Shire. The new proposal includes
£21 a share in cash and 26
pounds a share in new stock.
Shire said in a statement that its
board of directors “is considering
its position with respect to the
fourth proposal and will issue a
further announcement in due
course.”
The new bid lifts the cash com-
ponent to about 45% from 38%,
in an effort to win over share-
holders who might be reluctant
to receive stock in Takeda, a
smaller company than Shire.
Takeda said it would enable cur-
rent Shire investors to continue
to hold shares in the combined
company via American deposi-
tary receipts on the New York
Stock Exchange.
“Takeda believes that the
improved proposal represents a
highly compelling opportunity
for Shire shareholders, which
reflects a further increase in
value and a material increase
in the cash component of the
consideration mix,” Takeda said
in a statement on Friday.
Shire on Thursday rejected
Takeda’s previous proposal,
saying the terms “significantly
undervalue the company and
Shire’s growth prospects and
pipeline,” but left the door
open for further negotiations.
A completed deal would be the
biggest by a Japanese company
of an overseas target, and the
combined revenue would place
Takeda among the top 10 global
pharmaceutical giants.
Overall, the new offer represents
a premium of 7% to an initial
bid made in March, worth £44 a
share, Takeda said. It’s also 53%
above Shire’s share price before
Takeda officially disclosed its
interest in a deal. Analysts had
said Takeda would need to raise
the cash element of its offer. On
Thursday, Shire disclosed that
Takeda had made three offers of
cash and stock for the company
in the past two weeks, each time
raising the cash portion. The new-
est offer represents an 18% bump
compared to the previous cash
amount, the highest increase yet.
 Gulf Times
16 Monday, April 23, 2018

BUSINESS

World Bank
shareholders
back $13bn
capital increase
Reuters sive borrowing.
Washington IBRD previously had charged
similar rates for all borrowers,
and US Treasury officials had

T
he World Bank’s share-
holders on Saturday en-
dorsed a $13bn paid-in
capital increase that will boost
China’s shareholding but bring
lending reforms that will raise
borrowing costs for higher-
middle-income countries, in-
cluding China.
The multilateral lender said
the plan would allow it to lift
the group’s overall lending to
nearly $80bn in fiscal 2019
from about $59bn last year and
IMF managing director Christine Lagarde (left) listens as Lesetja Kganyago, governor of South Africa’s reserve bank, speaks during a International Monetary Fund Committee to an average of about $100bn
(IMFC) news conference at the spring meetings of the IMF and World Bank in Washington, DC, on Saturday. “We know that corruption hurts the poor, hinders economic annually through 2030.
opportunity and social mobility, undermines trust in institutions and causes social cohesion to unravel,” Lagarde said in a statement yesterday. “We have more than dou-
bled the capacity of the World
Bank Group,” the institution’s
president, Jim Yong Kim, told
complained that it was lending
too much to China and other
bigger emerging markets.
US Treasury Secretary Ste-
ven Mnuchin said earlier on
Saturday that he supported the
capital hike due to the reforms
that it included.
The last World Bank capital
increase came in 2010.
The current hike comes with
cost controls and salary re-
strictions that will hold World
Bank compensation to “a little
below average” for the financial
sector, Kim said.
He added that there was
nothing specific in the agree-
ment that targeted a China
lending reduction, but he said

IMF unveils new policy

reporters during the Inter-
national Monetary Fund and
World Bank spring meetings in
Washington.
“It’s a huge vote of confi-
dence, but the expectations are
enormous.”
lending to China was expected
to gradually decline.
In 2015, China founded the
Asian Infrastructure Invest-
ment Bank, and lends heavily to
developing countries through
its government export banks.

to fight corruption in
The hard-fought capital
hike, initially resisted by the
Trump administration, will
add $7.5bn paid-in capital for
the World Bank’s main conces-
sional lending arm, the Inter-
national Bank for Reconstruc-
The agreement will lift Chi-
na’s shareholding in IBRD to
6.01% from 4.68%, while the
US share would dip slightly to
16.77% from 16.89%. Wash-
ington will still keep its veto
power over IBRD and IFC deci-

its member countries

AFP ic opportunity and social mobil-
Washington ity, undermines trust in institu-
tions and causes social cohesion
to unravel,” IMF managing di-
something it had not always
done. The new policy comes as
Ukrainian authorities work to
implement stringent new anti-
failed to apply the same stand-
ards evenly to all members.
Under the new guidelines
approved by the IMF board on
mies as a conduit for illicit fi-
nancial flows to and from poorer
countries.
However, the IMF will not in-
tion and Development.
Its commercial-terms lender,
the International Finance Corp,
will get $5.5bn paid-in capital,
and IBRD also will get a $52.6bn
increase in callable capital.
The bank agreed to change
IBRD’s lending rules to charge
higher rates for developing
countries with higher incomes,
to discourage them from exces-
sions.
Kim said the increase was
expected to become fully ef-
fective by the time the World
Bank’s new fiscal year starts on
July 1.
Countries will have up to
eight years to pay for the capital
increase.
The US contribution is sub-
ject to approval by Congress.

T
he International Mon- rector Christine Lagarde said in corruption reforms at the behest April 6, the fund will discuss vestigate specific instances of
etary Fund will sys- a statement. of the IMF, which has held up the good governance concerns in corruption.
tematically address “We have now adopted a latest instalment of a $17.5bn aid all annual economic reviews of Rather it will focus on the
corruption and its impact on framework for enhanced en- package. member countries. strength of key economic insti- Crescent Point strikes back at ISS
economic growth with all its gagement on governance and The revised good governance IMF officials however say they tutions: fiscal and central bank
member countries under new corruption that aims for a more guidelines, which take effect do not expect the policy will lead governance, market regulation, support for Cation nominees
guidelines launched yesterday. systematic, evenhanded, ef- on July 1, follows a recent re- to more stringent conditions on the rule of law and policies on
The new policy also tackles fective and candid engagement view of the IMF’s 20-year-old loans, which go to a minority money laundering and counter-
how rich countries contribute with member countries.” policy framework which con- of the fund’s 189 members and ing terrorism financing. Bloomberg Pinder sits on boards of
to corruption in the developing Corruption and poor gov- cluded the fund had some- which already include anti-cor- IMF analysis suggests falling Calgary/New York competitors, including a
world by failing to prevent brib- ernance sap economic growth times employed euphemisms ruption provisions. 25 notches on a corruption in- private company with land
ery and money laundering or by and exacerbate inequality, ac- when discussing corruption in The fund also will rely on the dex could shave as much as 0.5 adjacent to Crescent Point’s
allowing anonymous corporate cording to the IMF, and the new member states — leaving lo- findings of outside transparency percentage points off a country’s Crescent Point Energy core area, so his access to
ownership. policy framework ensures the cal officials unclear about IMF campaigners who have criticised annual growth — amounting to Corp struck back at proxy sensitive information could be
“We know that corruption institutions will hold all mem- concerns. the existence of tax and corpo- tremendous economic losses adviser Institutional damaging for the producer.
hurts the poor, hinders econom- bers to the same standards — And IMF analysis sometimes rate havens in advanced econo- over multiple years. Shareholder Services Inc’s ISS waded into the fight
recommendation to add two between Cation and Crescent
of activist investor Cation Point on Thursday with its
Door to US-China trade talks seem to open after IMF meeting Capital Inc’s nominees to its
board, saying the candidates
advice, which also included a
recommendation to withhold
have conflicts of interest. votes for Cation’s other two
AFP week’s gathering of finance ministers, the current recovery. “My key concern... about the issue. “The discussions were The oil driller also said Cation nominees, including Sandy
Washington given concerns a trade war would is to help in the process of resolving really around the governor’s actions at nominees Dallas Howe and Edmonstone, the former
undercut the global recovery. those issues before they escalate to a the PBoC and certain actions they’ve Herbert Pinder, which ISS Macquarie Capital Markets
President Donald Trump last month point where they would hamper growth announced in terms of opening their had advised shareholders Canada banker who recently
The gathering of world finance ministers approved steep tariffs on tens of billions and stability,” she told reporters at the markets which we very much encourage vote onto the board, are near launched the new activist
began with heightened anxiety about of dollars of Chinese imports, while conclusion of the meeting. and appreciate,” Mnuchin said. the board’s retirement age fund.
the potential damage a US-China trade Beijing has slapped duties on key US The IMF projects global growth of 3.9% In his statement to the International threshold. Crescent Point “The dissident has made
war could do to the economic recovery agricultural exports and has threatened this year and next but warns that the risks Monetary Fund, Yi also warned that “an added that its own nominees a reasonably compelling
but ended Saturday with a door open to to do likewise for the sensitive American are tilted to the downside. escalation of trade frictions caused by Rene Amirault and Mike case for some change to
negotiations. soybean industry. Mnuchin differed markedly from his unilateral actions” posed a risk to the Jackson, whom ISS suggested the incumbent board to
International Monetary Fund chief The heated trade rhetoric comes at a counterparts, saying the risk to global global economic outlook and called withholding votes for in facilitate improvements to
Christine Lagarde, who has been delicate moment, as Washington and growth was from unfair trade practices, on countries to use “rules-based” order to make room for the capital allocation decisions, to
urging countries to avoid damaging Beijing are both seeking to address North rather than the trade tensions. multilateral organisations to resolve dissident’s, are “extremely enhance profitability and to
protectionism, said this weekend’s spring Korea’s nuclear programme — which But his announcement of a possible China differences. valuable” members of the ensure appropriate alignment
meeting had “made progress towards Pyongyang said on Saturday it would trip could reduce the heat in the dispute. But he said China was committed to a board. of executive compensation,”
dialogue.” largely scale back. While the timing of his visit to Beijing is series of reforms similar to those called “The company fundamentally ISS said in its report.
And shortly after her comments, US The IMF’s governing committee in a unclear, and he did not provide details on for by the United States, including lower disagrees that a slate of Crescent Point has attacked
Treasury Secretary Steven Mnuchin statement at the conclusion of the the topics to be discussed, he said “a trip tariffs and protections for American directors, which does not Cation’s credibility, saying
announced he was considering a trip to ministerial meeting highlighted the is under consideration.” technology. have a plan nor add any the firm has no plan, no
Beijing to hold talks on the trade dispute, risks presented by “increasing trade and Among 18 bilateral meetings with his “China will vigorously push forward the incremental value, can be track record and no prior
a respite after weeks in which tensions geopolitical tensions.” counterparts this week, Mnuchin said he reform and opening-up of the financial nominated at the last minute engagement with the
had ratcheted ever higher. Lagarde in recent weeks has repeatedly had met with Yi Gang, governor of the sector, significantly relax market access onto and independent board company. The company said
China said yesterday it welcomed the urged member countries to steer People’s Bank of China. restrictions, create a more attractive of directors,” Calgary-based its own plan has helped it
suggestion of a visit. clear of protectionism and warned the The meeting with central bank chief investment environment, strengthen the Crescent Point said in a make “significant progress’
Tensions between the world’s two largest uncertainty around trade disputes could Yi did not focus on trade, but Mnuchin protection of intellectual properties and statement on Friday. despite the long-term decline
economies have cast a shadow over this choke off investment, a key drivers of said he remained “cautiously optimistic” actively expand imports,” Yi said. Crescent Point argued that in oil prices.

Wells Fargo’s big fine puts fresh focus on power of Trump tweets
Bloomberg mortgage businesses abused consum-
Washington ers. The enforcement actions add to pain
borne by the bank’s investors, who’ve
endured the worst stock performance
questioning whether the Consumer Fi- the millions of accounts its employees CFPB as too tough on financial firms. for assessing the Wells Fargo punish-
nancial Protection Bureau’s new lead- set up without customers’ approval. He’s pledged to ease the agency’s bite ment, said Bryan Hubbard, Otting’s
ership, picked by Trump, would drop And Friday’s punishment matches the since joining it as acting director in No- spokesman. The regulator has a com-
an investigation into Wells Fargo. OCC’s previous record, which cracked vember. Now, he’s responsible for the plex formula for determining how big

F
or years, Republican lawmak-
ers and regulators have groused
about big corporate fines, argu-
ing that they mostly punish blameless
shareholders, not the executives who
are responsible for misconduct.
Then President Donald Trump tweet-
ed his ire about Wells Fargo & Co and —
at least in the case of the embattled bank
— the GOP is singing a different tune.
Watchdogs appointed by Trump —
including a conservative former con-
gressman — announced on Friday that
Wells Fargo would pay $1bn to settle
allegations that its auto-lending and
among the 20 biggest US lenders since it
first ran afoul of regulators over its 2016
phony accounts scandal.
Frustration with Wells Fargo is bi-
partisan, as demonstrated by Trump’s
December tweet. The president fore-
shadowed that fines and penalties
against the bank could be “substan-
tially increased.” Trump also signalled a
warning to the broader financial indus-
try that there might be more to come:
he pledged to dial back regulations, but
made clear that punishments would
be severe for firms “caught cheating.”
The statement followed a news article
What transpired appears to break
from Republican doctrine, and could
remind Corps of the potential conse-
quences of being targeted in a presiden-
tial tweet. The CFPB and the Office of
the Comptroller of the Currency both
imposed $500mn fines on Wells Fargo
— record sanctions for each watchdog.
The regulators are independent agen-
cies, which is meant to insulate them
from White House influence.
To put the punishments in context:
The CFPB’s share is five times as large
as its previous record — a $100mn
penalty also against Wells Fargo over
down on HSBC Holdings Plc for doing
business with sanctioned countries and
laundering hundreds of millions of dol-
lars for drug cartels.
Wells Fargo, which didn’t admit
or deny the CFPB and OCC’s allega-
tions, is committed to working with the
regulators and trying to do right by its
customers, chief executive officer Tim
Sloan said in a statement.
The CFPB is run by Mick Mulvaney,
who does double duty as Trump’s budg-
et director. When Mulvaney represented
South Carolina in Congress, he routinely
joined other Republicans in bashing the
CFPB’s harshest penalty ever.
In a Bloomberg Television interview,
Mulvaney said he didn’t discuss the
planned Wells Fargo enforcement ac-
tion with Trump.
“I was aware of some of his public
statements several months back but did
not consult with the president on this
consent order,” he said. “We preserve
the independence of the bureau.”
The OCC is led by Joseph Otting, a
Washington outsider who previously
worked under Treasury Secretary Ste-
ven Mnuchin at a California bank. The
OCC relied on its established protocols
any given fine will be. To reach into the
hundreds of millions of dollars, an en-
forcement action has to pool together
several separate incidents of alleged
misconduct.
However, that same system was used
when the OCC fined Wells Fargo $35mn
in September 2016 for setting up mil-
lions of fake accounts. And none of the
agency’s rash of enforcement actions
stemming from the 2008 financial cri-
sis — including punishments against
banks over sales of mortgage-backed
securities and illegitimate foreclosures
— triggered a $500mn fine.
 Gulf Times
Monday, April 23, 2018 17

Shiny new button may help Visa, Mastercard and AmEx fight PayPal
Bloomberg
New York
The financial industry calls it “the Nascar
effect” — that mess of payment logos
spread across a retailer’s online checkout
page like the side of a race car. Often there
are buttons for every major credit card,
PayPal and a growing universe of services
from tech giants such as Google.
But what if several big players teamed up
and offered one button that would work
for the vast majority of consumers? Might
other icons start to peel away?
Earlier this week Visa Inc and Mastercard
Inc, the world’s largest card networks, told
an industry conference they will combine
their Visa Checkout and Masterpass
payment options into a single button.
Spokesmen for American Express Co and
Discover Financial Services said their firms
also will join the project.
The aim, according to the card networks,
is to make online shopping simple, letting
people finish with a few clicks — an experi-
ence pioneered by PayPal Holdings Inc.
Yet some analysts say the coordinated ef-
fort may ratchet up competition between
cards and PayPal, something long seen as
a potential risk to that company’s meteoric
growth. “This is always kind of a looming
threat to PayPal,” said Thomas McCrohan,
an analyst at Mizuho Americas after the
first announcements this week.
A spokesman for San Jose, California-
based PayPal declined to comment.
The button is still being developed. Master-
card and Visa won’t start moving consumers
enrolled in Visa Checkout and Masterpass to
the new program until later this year.
Since launching Masterpass and Visa
Checkout in 2012 and 2014, respectively,
the systems have struggled to match
PayPal’s popularity. The company is widely
considered the US leader in digital wallets.
About 58% of merchants surveyed last
year said they already accept PayPal with
more saying they plan to do so this year,
according to a study that was partially
funded by PayPal. Visa Checkout and Mas-
terpass were accepted by 26% and 16% of
the merchants, respectively.
“That one-button concept — people think
of PayPal and Amazon Pay,” said Raymond
Pucci, a payments analyst at Mercator
Advisory Group. “People don’t really say,
‘Oh yeah, Visa and Mastercard.”’
Visa and Mastercard haven’t yet had
pricing discussions with retailers. Nor is
BUSINESS
there currently a plan to shift liability to
encourage retailers to adopt the unified
button, according to senior payment
executives TS Anil at Visa and Jess Turner
at Mastercard. When the card networks
jointly rolled out chip cards in the US, they
coaxed retailers to participate by forcing
them to bear the cost of fraud until they
updated their terminals.
The networks also said they hope to work
with the World Wide Web Consortium, a
standard-setting body for Internet brows-
ers. Last year, the consortium called on all
browser makers to help merchants stream-
line checkout pages by letting customers re-
use previously stored payment information,
a move that could crimp PayPal’s business
offering merchants one-touch checkout.
The new system will rely on Visa and
Mastercard’s token technology, which
enhances online security by replacing
some cardholder information with a digital
ID. That may help retailers such as Netflix
Inc that keep credit cards on file for recur-
ring payments because it automatically
updates when customers replace cards.
The card companies are still picking a
name for their button. And “what that
button will look like has not been decided
yet,” Turner said.

EU and Mexico agree P&G ends its YouTube

advertising boycott,
but with a catch
new free trade pact Bloomberg
San Francisco
amount it is spending on the
video service.
Still, winning back P&G is a
coup for Google. The YouTube

P
rocter & Gamble Co,
For EU, Mexico adds to deal the biggest advertiser
already agreed with Japan; in the US, kept its ads
Mexico wants to cut reliance off YouTube for more than
on US and faces Nafta threat; a year because of concerns
deal adds farm products, about inappropriate content.
government tenders; Now it’s returning to the video
negotiators aim to finalise site, but a lot more selectively
text by end of the year than before.
The consumer-goods giant,
Reuters which spent $2.75bn on ads last
Brussels year, according to Kantar Media,
told its brands like Crest and Tide
this week they can buy spots on
ad boycott cast a shadow over
one of the Internet giant’s fast-
est-growing businesses. The
exact financial impact has been
unclear because Google doesn’t
report YouTube results, and the
company’s broader advertising
business has continued to grow.
On an earnings call in Febru-
ary, Google chief executive of-
ficer Sundar Pichai told investors
that the company was working to
“respond strongly” to advertiser
concerns over YouTube.

T
he European Union and
Mexico reached an agree-
ment on Saturday on a
new free trade deal, a coup for
both parties in the face of in-
creased protectionism from the
United States under President
Donald Trump.
Since its plans for a trade al-
liance with the United States
were frozen after Trump’s elec-
tion victory, the EU has focused
instead on trying to champion
open markets and seal accords
with other like-minded coun-
tries.
The agreement in princi-
ple with Mexico follows a deal
struck last year with Japan and
comes ahead of talks next week
with the Mercosur bloc of Ar-
gentina, Brazil, Paraguay and
Uruguay.
“With this agreement, Mexico
joins Canada, Japan and Singa-
pore in the growing list of part-
ners willing to work with the
EU in defending open, fair and
rules-based trade,” said Europe-
an Commission President Jean-
Claude Juncker.
For Mexico, a deal with the EU
is part of a strategy to reduce its
reliance on the United States,
the destination of 80% of its
exports. That has become more
urgent, given Trump’s push to
rewrite the North American Free
Trade Agreement.
The EU and Mexico wanted
to update a trade deal agreed 21
years ago that largely covers in-
dustrial goods.
The new deal adds farm prod-
ucts, more services, investment
and government procurement,
Jean-Claude Juncker, president of the European Commission, speaks during a news conference following a summit of European Union (EU)
leaders in Brussels. “With this agreement, Mexico joins Canada, Japan and Singapore in the growing list of partners willing to work with the
EU in defending open, fair and rules-based trade,” Juncker said.
and include provisions on labour
and environmental standards
and fighting corruption.
The European Commission
said that, under the deal struck
on Saturday, practically all trade
in goods with Mexico will be
duty-free, including for farm
products such as Mexican chick-
en and asparagus and European
dairy produce.
The deal will for example cut
Mexican tariffs of up to 20% on
cheeses such as gorgonzola and
increase EU pork exports, the
Commission said. It will also
allow Mexican companies to
bid for government contracts in
Europe and EU companies for
those in Mexico, including at
state level.
Mexican Economy Minister
Ildefonso Guajardo said both
sides had achieved a major up-
date of their original accord.
“It needed to be more ambi-
tious in the agricultural sector,
it needed to be more ambitious
in services, it needed to be more
ambitious in many of the ele-
ments that in the end we man-
aged to agree on after two years
of work,” he said.
Guajardo said the deal would
grant his country better access
for products including orange
juice, tuna, asparagus, honey, egg
white albumin, as well as “equi-
table access” for meat products.
It is also set to recognise
“geographical indications” for
certain food and drink, a key EU
demand.
Such indications protect agri-
cultural produce — for example,
dictating that the term “cham-
pagne” can only be used for spar-
kling wine from northern France.
It was not clear, however, how
the divisive issue of “manchego”
cheese had been settled.
The EU says the term should
only apply to sheep’s milk cheese
from central Spain, but Mexico
has its own “manchego” made
from cow’s milk.
Negotiators from both sides
will continue to work on techni-
cal details to produce a final text
by the end of the year.
YouTube. The Cincinnati-based
company stopped spending on
YouTube in March 2017 follow-
ing an outcry over extremist and
other disturbing videos. The
boycott spread to other mar-
quee marketers, prompting Al-
phabet Inc’s Google to overhaul
YouTube policies and hire more
human moderators to clean up
the service.
“We paused advertising, and
for the past year, we’ve worked
extensively with YouTube to
improve brand safety,” Tres-
sie Rose, a P&G spokeswoman,
said in a statement.
“We now feel the right meas-
ures are in place for P&G brands
to have the option to advertise
on YouTube.”
On Thursday, CNN reported
that more than 300 advertis-
ers unknowingly ran ads on
YouTube videos endorsing
white supremacy, paedophilia
and other extremist positions.
When asked if P&G was still
planning to return to the video
service after the news, the com-
pany confirmed the decision.
“We appreciate the partner-
ship with P&G and look forward
to continue working with them,”
YouTube said in a statement.
P&G is doing things dif-
ferently this time, though. It
plans to only advertise on vid-
eos the company has reviewed
and approved. Those clips will
come from fewer than 10,000
YouTube channels, accord-
ing to P&G. The company
used to market through about
3mn YouTube channels. P&G
declined to comment on the
The Proctor & Gamble
headquarters in Cincinnati,
Ohio. P&G is doing things
differently this time. It plans to
only advertise on videos the
company has reviewed and
approved.
Google gave marketers more
control over where and how
they run ads on YouTube. In
January, it introduced a sweep-
ing set of changes, including a
pledge to manually review every
ad in Google Preferred, a pricier
collection of more popular vid-
eos. P&G remained a holdout
after those changes, and is now
getting even more control.
Marc Pritchard, P&G’s chief
brand officer, has been one of
the most outspoken critics of
the increasing automation of
digital advertising, an industry
Google dominates. At a con-
ference in early 2017, Pritchard
denounced the sector for not
adequately curbing ad fraud and
measurement problems. “We
don’t want to waste time and
money on a crappy media sup-
ply chain,” he said at the time.

Trade wars, privacy and Trump: What to expect for tech earnings
Bloomberg
New York
It’s earnings season again, and for the tech
sector, it’s shaping up to be one of the
most interesting in a while.
Global technology giants, which fuelled
the bull market to its highest heights
earlier this year, are suddenly being as-
sailed from all sides. A brewing trade war
between the US and China is imperilling
mergers and threatening the global inter-
connectivity that has helped the industry
thrive. A crisis has been spreading over
how political-data firm Cambridge Ana-
lytica got access to millions of Facebook
users’ personal information, upending the
assumption that consumers will blithely
give up their private details as a fair trade-
off for using free services like Facebook,
Google and Twitter. And don’t forget US
President Donald Trump’s Twitter tirades
against Amazon and founding CEO Jeff
Bezos.
All this has made for a seriously volatile
few weeks for tech stocks, with some in-
vestors fearing a profit-draining regulatory
clampdown, and others jumping in to take
advantage of the discount on shares that
have been expensive for years. With most
of the biggest names about to report re-
sults for the March quarter, the market will
finally get a chance to figure out whether
the concerns plaguing big tech truly pose
a threat to the bottom line.
Some clues about how things could
go have already emerged. Wall Street
analysts have mostly held the line that a
divided US Congress won’t come down
hard on data-gathering business models
like Facebook or Google anytime soon.
Only one of the dozens of equity analysts
that cover Facebook has cut the social
network’s rating since the Cambridge
Analytica situation came to light. Most,
like Goldman Sachs’s Heather Bellini,
expect “little to no impact” on advertising
spending.
Still, investors will be intently focused
on any commentary from executives
about user engagement, writes UBS’s
Eric Sheridan. Even if revenue and profit
numbers are good, the question remains
whether positive results can outshine the
“wall of worry,” he said.
Also this week, Taiwan Semiconductor
Manufacturing Co, the leading smart-
phone chip manufacturer, sent shivers
across the semiconductor sector and
weighed on Apple stock when it issued
a disappointing growth forecast. That
rekindled concerns that the handset boom
is waning.
Amazon gave investors something to
get excited about. Bezos disclosed for
the first time on Wednesday that 100mn
people now pay up for an Amazon Prime
subscription. Netflix, which kicked off tech-
nology earnings earlier this week, proved
again that the world is rushing headlong
into online streaming. The stock rose 9.2%
to a record the day after the company
said it added 7.41mn users in the quarter
despite raising prices.
Here’s a rundown of what to look for
from each of the biggest tech companies
reporting in the coming weeks:
Alphabet
A growing concern for Alphabet investors
is the possibility that internet-search and
digital-ad behemoth Google will be a casu-
alty of public backlash against Facebook.
Regulation placing restrictions on data
collection and privacy in online advertis-
ing could handicap the $95.4bn business.
But for the first quarter, investors are more
focused on how quickly costs are rising.
Parent company Alphabet, which reports
on April 23, is projected to post a 21% jump
in revenue to $24.3bn, and net income
is seen rising to $9.29 a share. Analysts
will be watching Google’s traffic acquisi-
tion costs — the amount doled out to
partners to run search and ads — as well as
spending in other areas. Morgan Stanley
warned in a recent note that the market
was underestimating Google’s operating
expenses for units like hardware, cloud
and YouTube.
Facebook
Facebook might be costing investors the
most sleep, given its central role in the
ongoing debate over what social networks
do with consumers’ personal informa-
tion. New data-protection rules in Europe
requiring companies to make it easy for
people to opt out of such collection could
damage Facebook’s growth, especially
since Chief Executive Officer Mark Zuck-
erberg has promised to follow the spirit of
the rules globally. The stock, which soared
53% in 2017, is down 4.7% this year. In
Facebook’s report April 25, any weakness in
advertising revenue or negative executive
commentary would outweigh otherwise
positive results, Deutsche Bank’s Lloyd
Walmsley said in an April 18 note. On the
flip side, shares could rise if the tone from
executives is upbeat and the social network
talks down concerns about people opting
out of data collection, Walmsley said.
So far, Zuckerberg has said the company
isn’t sensing a material impact from user
account deletions, but chief operating
officer Sheryl Sandberg told Bloomberg
News that a small number of advertis-
ers have paused spending on the social
network.
Amazon
Trump’s attacks on Amazon haven’t had
much of an impact on the e-commerce
giant’s business, but with the backdrop
of heightened government scrutiny of
Facebook, the president’s bark actually
had some bite when it came to the stock
price. Investors are likely to probe Amazon
for any vulnerabilities to government ac-
tion — including postal rate hikes — on the
company’s earnings call after the release
on April 26. Otherwise, they’ll look for the
usual metrics to determine how quickly
Amazon continues to grow and how much
of the company’s revenue Bezos is plough-
ing back into its many businesses.
Sales for the first quarter are estimated
to reach $49.9bn, the average estimate of
analysts surveyed by Bloomberg. That’s up
40% from a year earlier, thanks in part to
a big boost from last year’s acquisition of
grocery chain Whole Foods. Analysts project
earnings of $1.26 per share, down from $1.48
a year earlier, as Amazon keeps investing in
international expansion, data centres for its
cloud-computing division, new devices and
original programming for video streaming.
Intel
The world’s second-largest chipmaker
continues to shrug off the market pres-
sures that surround it. Analysts expect
Intel to say sales grew for a 10th straight
quarter, even as the personal-computer
industry, the main market for its chips,
continues to shrink.
A bunch of would-be rivals, led by
Advanced Micro Devices Inc, haven’t yet
dented Intel’s more than 99% market share
in processors for servers — machines that
power networks and data centres — a
dominant position that helps keep the
company’s gross margin fatter than 60%.
To spread out its bets, Intel has ramped up
investments in memory chips and semi-
conductors for artificial intelligence and
self-driving cars. Any narrowing of margins
would validate the view of sceptics, who
say it’s just a matter of time before Intel’s
continued reliance on PC chips starts to
hurt results. Intel also reports on April 26.
Microsoft
That same day, Microsoft is projected
to say that sales climbed 9% to $25.8bn,
buoyed by rapid growth in its cloud
businesses. Those include Azure, which
lets corporate customers run and store ap-
plications in Microsoft’s data centres, and
increasingly popular online versions of
Office productivity applications like Word
and Excel. Much of Microsoft’s revenue
comes from multiyear software licences
and cloud-subscription payments, which
insulate it somewhat from the regulatory
threats that are casting shadows on com-
panies that get more of their revenue from
Internet advertising.
Apple
Apple sells phones and not advertising,
helping it avoid the brunt of the data-
privacy firestorm — though CEO Tim Cook
did weigh in on the crisis. In the company’s
report on May 1, investors will be paying
close attention to iPhone sales. In the holi-
day period, sales of the smartphone were
strong, but didn’t match investor expecta-
tions. This quarter, analysts at Goldman
Sachs are looking for iPhone sales of 53mn
units. There’s also the prospect of a higher
average selling price, which would indi-
cate people are buying the $999 iPhone X.
Analysts on average project fiscal second-
quarter sales rose 16% to $61.1bn. Investors
should also pay close heed to Apple’s serv-
ices business after the company issued
a bold projection of services becoming a
$50bn-a-year business by 2021. Another
thing to keep in mind: the possibility of a
sweetened share-buyback programme or
increased quarterly dividend after the US
tax overhaul, which gave companies an
incentive to bring back cash stashed over-
seas. Apple could also issue a one-time
special dividend.
 Gulf Times
18 Monday, April 23, 2018

BUSINESS
Crude oil futures continue their rally, gaining almost 2%
By Sofiane Ghezali Opec policy ahead of its ministerial Dominion’s Cove Point LNG facility in
www.abhafoundation.org meeting next June, but there is no the US was loaded one week ago. The
indication so far on such plans. LNG facility has an annual capacity of
5.3 mtpa and is the second US (lower
Oil Gas 48) LNG export plant after Cheniere’s
Benchmark crude oil futures Asian spot LNG prices continued Energy Sabine Pass terminal.
continued their rally last week by their partial recovery by gaining 2% In the US, Henry Hub natural gas
gaining almost 2% w-o-w, by reaching last week. A firm spot Asian demand futures rose very modestly and were
new highs not seen since November and rising oil prices supported the finally little changed over last week.
2014. Oil prices were boosted mainly LNG trend this week. Japanese A government report showed a
by new assessments confirming that and South Korean buyers were higher-than-expected draw in US
the global oil glut is virtually drained. active seeking deliveries for May natural gas stocks the week earlier,
Decline in US oil stocks, potential to early June. However, the upward while storage draws are usually rare
new sanctions on Iran and/or Russia trend was constrained by resumed in April. However, meteorologists
leading to possible supply reductions output from Papua New Guinea and were projecting temperatures to Flows through the pipeline carrying average temperatures triggered „ The author is senior energy
also supported prices. expected supplies from new US come back to near-normal levels in gas from Norway were reduced due low levels of consumption, but researcher at Abdullah Bin Hamad
Moreover, Reuters sources indicated projects in the second half of the the coming two weeks. In the UK, to an outage at a gas field, most temperatures are expected to fall Al-Attiyah International Foundation
that Saudi Arabia would be happy year. NBP gas futures continued their likely at Troll according to Reuters back to seasonal normal levels the for Energy and Sustainable
to see prices reach $80-$100 levels. The first contractual LNG cargo from rally and increased by 2% last week. analysts. On the other hand, above- current week. Development.
Whereas, the eased situation in the
Syrian conflict limited the gains.
The Opec Joint Technical Committee,
meeting in Jeddah last Thursday,
indicated that OECD oil inventories
in March stood only at 12mn barrels
above the five-year average. The
global supply-demand situation is
seen as fairly balanced by some
experts, suggesting that the oil price
might explore further highs due to
multiple supportive drivers.
The US president blamed Opec in a
tweet on the current oil price rise, but
the Opec secretary-general responded
that the organisation’s objective is only
seeking more stability to oil markets.
The US president’s tweet could be
only for communication purposes
to calm down a potential anger from
US motorists due to future higher
gasoline prices. Nonetheless, if it
is seriously motivated, this would
mean that the US administration
might consider releasing part of its
strategic reserves to counter the
Opec+ supply cut and to influence

QFCRA imposes penalty on

Guardian Wealth Management
The Qatar Financial Center
Regulatory Authority (QFCRA)
has imposed a total penalty
of more than QR3.5mn on
Guardian Wealth Management
Qatar (GWMQ) as part of
disciplinary action against the
firm.
The regulatory authority
imposed a financial penalty
of QR2.5mn in relation
to contraventions to the
Anti-Money Laundering and
Combating Terrorist Financing
(AML/CFT) Rules 2010, a
QFCRA spokesman confirmed.
The QFCRA also imposed a
financial penalty of QR1.09mn
in relation to general
regulatory contraventions
of the rules of the regulatory
authority.
It also ordered GWMQ to pay
the costs and expenses of
the investigation conducted
by the QFCRA in accordance
Aamal board addressing the shareholders in Doha yesterday. with Article 50(4) of the
Regulations.
In its investigation of GWMQ,
the QFCRA identified
“systemic failures” in GWMQ’s
(PPSC). Additionally, it was
also found out that GWMQ
made misrepresentations
to the regulatory authority
regarding its conduct and
implementation of PPSC
designed to prevent money
laundering and terrorist
financing.
The imposition of this
substantial financial penalty
by the QFCRA demonstrates
the significant failings in
GWMQ’s business operations,
conduct relating to its PPSC,
AML/CFT programme and
regulatory engagement and
the serious nature of the
contraventions by GWMQ of
the Rules of the QFC.
“The implementation of
effective AML/CFT controls
is essential to protecting the
reputation of the QFC and
the firms that operate in the
QFC. The regulatory authority
takes AML/CFT seriously
and the action taken reflects
the importance that the
Regulatory Authority places
on effective AML/CFT systems

Effects of blockade fade on implementation of its AML/

CFT policy, procedures,
systems and controls
and controls,” Michael Ryan,
chief executive of the QFCRA
said.

resilience of Qatar: Aamal Sierra Leone president urges Qatari

businessmen to invest in his country
QNA
Doha
of Sierra Leone said his country,
which has strong relations with

Q
atar has successfully
navigated through the
continuing blockade,
which “undoubtedly created
some challenging headwinds”,
according to a top official of
Aamal Company.
“I believe this is testimony
not only to the resilience of the
Qatari economy but also to the
strong and clear leadership that
our national government pro-
vides as we strive to achieve the
holistic goals set out in the Qatar
National Vision 2030, including
diversification of the economy,”
Aamal Company vice-chairman
Sheikh Mohamed bin Faisal al-
Thani told shareholders at the
general assembly meeting in
Doha yesterday, which approved
6% cash dividend.
Aamal Company chairman
HE Sheikh Faisal bin Qassim
al-Thani said the company wit-
nessed a number of progressive
developments and achievements
last year, which positively af-
fected the financial, operational
and internal controls of the com-
pany. “This resulted in achieving
excellent financial results despite
the current conditions Qatar is
facing as a result of the blockade
on Qatar,” he added.
Highlighting that Aamal has
rapidly moved to help establish
alternative supply chains in the
face of the continuing embargo
against Qatar; the vice-chair-
man attributed this resilience
to the diversity of its business
model and said: “If one sector
is experiencing a tightening in
general business conditions for
example, there will be others
that are able to more than com-
pensate.”
Aamal’s strong financial posi-
tion and cash generation meant
that it was able to act quickly
once it identifies a potential val-
ue creating opportunity, a strat-
egy that gave it a competitive
advantage over its peers.
“An excellent example of this
is the decision we announced
in early January to proceed with
three major new industrial
projects, which will be the first
of their kind in Qatar, having ap-
plied for the necessary approv-
als in 2017. Not surprisingly, we
are also the partner of choice for
those international blue chip
names looking to enter the Qatari
market for the first time,” he said.
The meeting also voted Faisal
al-Mahmoud, Yousef bin Rashid
al-Khater and Hamad al-Nuai-
mi as independent directors.
It also approved the appoint-
ment of PricewaterhouseCoop-
ers as the external auditor for
2018.
The President of the Republic of
Sierra Leone, Julius Maada Bio,
has called on Qatari business-
men to invest in his country
and benefit from the promising
opportunities in energy, tourism,
agriculture, natural resources
and banking sectors in the
country.
During his meeting with Qatari
businessmen at the Qatar Cham-
ber on Saturday, the President
Qatar, seeks to strengthen co-
operation with Doha in various
fields, especially in economic
fields.
Bio outlined advantages and
investment climate in his
country, pointing out that Sierra
Leone has many sectors that
attract investment, adding that
his country has a long coast
and green areas where they can
co-operate with Qatari investors
to set up hotels, establishments
and tourism facilities.

QSE declines on selling pressure, weak buying interests of funds

By Santhosh V Perumal Large, mid and microcap segments witnessed tors Group, Gulf Warehousing, Nakilat, Qa- to the extent of QR3.41mn against net sellers of trade volume to 3.68mn shares, 36% in value to
Business Reporter selling pressure on the bourse, whose capitali- tar Islamic Bank, QNB, Commercial Bank and QR7.32mn on April 19. QR38.2mn and 47% in deals to 337.
sation fell 0.44% to QR511.7bn. Qatari German Company for Medical Devices; The Gulf individuals turned net buyers to the The insurance sector’s trade volume tanked
Trade turnover and volumes were on the de- while Mesaieed Petrochemical Holding, Gulf tune of QR1.73mn compared with net sellers of 27% to 0.11mn equities, value by 22% to

T
he Qatar Stock Exchange yesterday
opened the week weak, after four con-
secutive days of bearish spell, mainly on
substantially weakened buying interests of for-
eign and Gulf funds.
Selling pressure – especially in real estate, in-
dustrials and insurance – led the 20-stock Qatar
Index decline 0.45% to 9,155.55 points.
Doha Bank and Masraf Al Rayan sponsored
exchange traded funds QETF and QATR wit-
nessed 0.66% and 0.55% declines respectively.
However, domestic funds as well as Gulf and
non-Qatari individuals turned net buyers on the
market, which is up 7.42% year-to-date.
cline on the market, where industrials and tel-
ecom sectors together accounted for more than
66% of the total volume.
The Total Return Index shed 0.45% to
16,131.07 points, All Share Index by 0.61% to
2,722.84 points and Al Rayan Islamic Index
(Price) by 0.62% to 2,279.74 points.
The realty index plummeted 2.64%, industri-
als (0.62%), insurance (0.54%), banks and fi-
nancial services (0.34%) and transport (0.32%);
whereas consumer goods gained 1.46% and tel-
ecom 0.46%.
Major decliners included Ezdan, Barwa, In-
dustries Qatar, Aamal Company, Qatari Inves-
International Services, Mazaya Qatar, Ooredoo,
Qatar Oman Investment, Salam International
Investment and Vodafone Qatar were among
the gainers.
Non-Qatari institutions’ net buying weak-
ened considerably to QR3.05mn compared to
QR87.44mn on April 19.
The Gulf institutions’ net buying also de-
clined considerably to QR1.44mn against
QR14.32mn the previous trading day.
However, domestic institutions turned net
buyers to the tune of QR6.58mn compared with
net sellers of QR40.2mn last Thursday.
Non-Qatari individuals were also net buyers
QR2.99mn the previous trading day.
Local individuals’ net profit booking weak-
ened significantly to QR16.21mn against
QR51.22mn last Thursday.
Total trade volume fell 24% to 12.27mn shares,
value by 50% to QR224.45mn and transactions
by 47% to 3,054.
The banks and financial services sector saw 58%
plunge in trade volume to 1.52mn equities, 81% in
value to QR41.66mn and 66% in deals to 696.
The transport sector’s trade volume plum-
meted 45% to 0.32mn stocks, value by 47% to
QR6.07mn and transactions by 40% to 202.
The telecom sector reported 35% shrinkage in
QR3.76mn and transactions by 43% to 71.
There was 25% decline in the real estate sec-
tor’s trade volume to 1.77mn stocks, 33% in val-
ue to QR22.24mn and 43% in deals to 520.
However, the industrials sector’s trade vol-
ume soared 38% to 4.43mn shares; while value
shrank 22% to QR80.3mn and transactions by
34% to 893.
The market witnessed 5% jump in the con-
sumer goods sector’s trade volume to 0.44mn
equities, 70% in value to QR32.22mn and 21% in
deals to 335.
In the debt market, there was no trading of
treasury bills and sovereign bonds.