game-changing concept : page 16 business

Wednesday, March 14, 2018Jumada II 26, 1439 AH

BUSINESSGULF TIMES

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GAME-CHANGING CONCEPT : Page 16

Intrapreneurship shapes Qatar employees into catalysts of innovation

IQ set to increase foreign ownership limit to 49%By Santhosh V PerumalBusiness Reporter

Market heavyweight Industries Qatar (IQ) has announced the in-crease of foreign ownership limit

(FOL) to 49% from 25%, a move that will enthuse foreign funds to enhance their ex-posure in the country’s capital market.

“This decision comes in line with the vision of the Qatar Stock Exchange to en-hance the Qatari stock market and develop its mechanisms to become a regional fi nan-cial centre and capital market that attracts local and regional issuers and investors,” said a spokesman of IQ, which is the hold-ing entity of Qatar Petrochemicals, Qatar Fertiliser and Qatar Steel.

The fact that FOL relaxation comes from a blue chip and an entity that has direct linkage with Qatar’s hydrocarbons signals the imminent expected changes in the for-eign direct investment scene in the country and is positive for the market, sources said.

At the roadshows held in several fi nancial hubs like New York and London during the previous years, fund managers had report-edly raised the issue of restrictive FOLs in certain selective underlying stocks.

QSE sources said they would not like to comment a specifi c company. However, they viewed that enhanced FOLs are ex-pected to attract more investors, especially considering that Qatar is the fastest grow-ing economy, despite the continuing illegal blockade, and holds promising potential for investors.

IQ’s decision comes a day after the coun-try’s largest lender QNB also announced a proposal to increase the FOL up to 49%. It also comes after Doha witnessed the ad-vent of QETF, sponsored by Doha Bank.

Many listed companies, it is learnt, are in the process of enhancing the FOL in view of the upgrade by MSCI, Standard & Poor’s-Dow Jones and FTSE Russell.

So far, Islamic Holding Group, Nakilat, Milaha, Ezdan Real Estate, Commercial Bank, Aamal Company, Qatar General In-surance and Reinsurance and Doha Bank

are among those received approval from the Qatar Central Securities Depository to enhance the FOL up to 49%.

An Emiri Decree in 2016 had allowed a higher foreign holding up to 49% of the capital in place of the previous limit of 25% after MSCI and Standard & Poor’s-

Dow Jones upgraded the Qatari bourse to ‘emerging’ market from ‘frontier’ status.

The enhancement in FOL would help increase the weightage of Qatar within the international indices, thereby helping at-tract more overseas funds, market experts said.

Given the robust macroeconomic funda-mentals, Qatar’s bourse has the potential for higher foreign funds infl ow, consid-ering that as much $200bn development expenditure is outlined in the short-to-medium term in the run up to 2022 FIFA World Cup.

Aramco international listing looks ‘increasingly diffi cult’ReutersDubai/London

Saudi Arabia is increasingly look-ing to just fl oat oil giant Saudi Aramco locally as plans for an in-

itial public off ering (IPO) on an inter-national exchange such as London or New York hang in the balance, sources close to the process said.

The kingdom is counting on being awarded emerging market status by index complier MSCI in June to help Saudi Aramco attract Western funds, in addition to cornerstone investors from China, Japan and South Korea, the sources said.

“I would guess it is about evens that there will be no international IPO,” said a high-level source familiar with the preparations, saying they were proving to be a disappointment.

Saudi Arabia is planning to list up to 5% of Saudi Aramco in an initial pub-lic off ering that could value it at up to $2tn and make it the world’s biggest oil company by market capitalisation.

Saudi Energy Minister Khalid al-Falih said last week that Aramco was too important to risk listing in the US because of litigation concerns, such as existing lawsuits against rival oil com-panies for their role in climate change.

British offi cials have been told by Saudi counterparts London has a

chance to secure the listing but only in 2019 at the earliest, according to the Financial Times, and sources told Reuters the kingdom was now focus-ing on a listing on the local exchange, or Tadawul.

“The only thing we know today is that Tadawul will be the key listing location as our national exchange,” al-Falih told CNN.

“We are waiting for the reforms to be in place and to join MSCI and Aramco listing in Tadawul will be catalytic for that capital market as we bring in-ternational capital to the kingdom,” he told the US channel last week.

The initial public of-fering is the centrepiece of Crown Prince Mo-hammed bin Salman’s plan to diversify the Sau-di economy beyond oil and it would also boost the kingdom’s budget which has been hit by low oil prices.

Initially planned for 2018, prepa-rations have been hit by rows over whether Aramco should list on major Western markets at all.

An advisory council to the govern-ment asked the securities regulator this year to study the impact of a local listing amid concern a huge IPO could harm the market.

MSCI has proposed giving its exist-ing Saudi Arabia stock index emerging market status rather than standalone status following a series of market re-forms by the kingdom such as raising caps on foreign ownership of compa-nies.

MSCI will give its decision in June and, if positive, the reclassifi cation would be in two steps in May and Au-gust 2019.

According to an update of the MSCI proposal published in February, Saudi Ara-bia would have a market capitalisation of $124bn in MSCI’s Emerging Markets Index, giving it an index weight of 2.3%, on a par with Thailand.

Based on the assump-tion that another $100bn would be added through an Aramco initial pub-

lic off ering, the kingdom’s weighting would rise to about 4%, which would be bigger than Russia’s weighting of 3.4%, for example.

If MSCI grants Saudi Arabia emerg-ing market status, it could be seen as a reason to push against an international listing, the sources close to the listing process said.

Passive investment funds that replicate MSCI indexes would need to put 4% of their funds allocated to

emerging market indexes into Saudi shares to match the country weight-ing.

According to MSCI, $1.7tn of as-sets were benchmarked against MSCI emerging market indexes at the end of June last year, of which about a fi fth was from passive investors.

That could mean $13.6bn could come into Saudi stocks from pas-sive investors and if active investors also increased their Saudi exposure to the weighting following an Ara-mco IPO the total inflows could be $68bn.

With the prospect of a listing in London and New York receding, sources familiar with the IPO told Reu-ters that Hong Kong was now emerging as an increasingly likely compromise because Riyadh wants to help Asian nations that are expected to become cornerstone investors.

While London is preferred over New York, the requirement by both for greater disclosure of sensitive infor-mation on Aramco than the Hong Kong exchange is viewed as a drawback by some Saudi offi cials and advisers, the sources said.

Saudi Aramco said on Monday it was still reviewing its options for the initial public off ering.

A fi nal decision will be made by Mo-hammed bin Salman, who oversees the kingdom’s economic and oil policies.

‘Sukuk a permanent fixture in Qatar regional finance services’

Shariah-compliant bonds have become a permanent fixture in Qatar’s regional finance services, Oxford Business Group has said in a report. With governments across the GCC feeling the pinch from low global oil prices, sukuk are witnessing a renewed trend of issuances, OBG said in its The Report: Qatar 2017.According to ratings agency Fitch, new issuances of sukuk in core markets rose by 26% in 2016, with the trend continuing into the first half of 2017. Moreover, Fitch expects the absolute market share of sukuk to pick up, as more sovereigns turn to Shariah-compliant bonds to finance their debt. Some $40bn of new sukuk with a maturity of over 18 months were issued in “core markets” in 2016 – understood as the GCC (Gulf Cooperation Council), Malaysia, Indonesia, Turkey and Pakistan – representing 28.5% of total bond issuances in these markets. Market share was in fact down marginally on 2015, principally because Saudi Arabia, Abu Dhabi and Qatar witnessed growth in conventional debt issuance to fund their budget deficits, OBG noted.Qatar raised $9bn in Eurobonds, which was one of the largest single issuances by any government in the Middle East, in order to fund its then projected 2016 deficit of $12.8bn, OBG said.By contrast, new sukuk issuances

by Qatar in 2016 were limited to private placements in the domestic market, and consisted largely of rollovers of existing debt. In August 2016, the Qatar Central Bank sold QR1.6bn of sukuk, followed by QR825mn in September and QR1.5bn in October, with both being coupled with conventional bonds of similar value.“Qatar has historically represented the largest single market for long-term sovereign sukuk issuance, accounting for more than 60% of total issuances since 2010,” OBG said. With the government anticipating a $7.8bn deficit for 2017, a substantial new issuance of sovereign sukuk may be in the off ing, despite Qatari banks avoiding debt markets due to the diplomatic blockade. In October 2017, QIIB finished creating a $2bn sukuk programme, with the first bond set for issuance when market conditions improve.Shariah-compliant fixed-income debt has become a permanent and lasting feature of regional finance and is subject to the same vagaries of the market as conventional debt, OBG said. In this respect, with yields beginning to rise across the board, new commercial and sovereign issuances will depend on market conditions in the short to medium term, the report added. Page 3

Al Rayan Qatar ETF caps total expense ratio at 0.5% of NAVBy Santhosh V PerumalBusiness Reporter

Al Rayan Qatar ETF (exchange traded fund), which tracks the

Islamic index of the Qatar Stock Exchange (QSE), has capped

the total expense ratio (TER) at 0.5% of net asset value (NAV).

The open-ended Shariah-principled Al Rayan Qatar ETF, which

is sponsored by Masraf Al Rayan Bank, has Al Rayan Invest-

ment as the fund manager and the Group Securities as liquidity

provider.

It tracks the Al Rayan Index that comprises large and medium-

sized Shariah-compliant listed Qatari companies.

“The listing (of Al Rayan Qatar ETF) is expected soon and before

this month end,” sources in the market said.

The fund’s unit price will be one-hundredth of the previous day’s

(of launch date) close, implying that if it were to list today, then

the unit price would be QR35.76 (one-hundredth of 3,576.57

points close on Tuesday).

The fund, which has a mid-to-high risk/return profile, will

distribute dividends at least once a year, net of expenses, said

its prospectus. The initial capital of fund, after the private place-

ment, is QR465.92mn.

“Post listing, annual charges paid will be capped at 0.5% of the

total net asset value,” it said, adding these charges include the

cost of managing the fund and those related to custody, admin-

istration, distribution and other miscellaneous expenses. The

custodian for the Al Rayan Qatar ETF is HSBC Bank Middle East.

On the TER, the prospectus said “0.5% per annum is one of the

lowest for a single-country ETF in emerging markets as the fund

manager seeks to ensure the product is highly eff icient and very

competitive” and is in contrast to some Qatari mutual funds that

charge 2% or more.

Qatar had last week witnessed the advent of Doha Bank-spon-

sored QETF that is expecting $2bn to $5bn funds inflow into the

instrument within the next one year.

One of the advantages with an ETF is relating to its fee, which

tends to be lower than for the mutual funds, sources said.

The move to launch ETFs comes in view of an analysis of 300

individual portfolios undertaken by the QSE in which it found

that the portfolios underperformed the index. Similarly, mutual

funds, which often have higher management fees, were also

seen underperforming the index.

Finding scope for ETFs in Qatar with international investors in-

terested in bringing money, a top off icial of a global investment

management firm said a lot of asset managers within domestic

banks are also looking for ETFs for enhancing liquidity and

diversifying their product portfolio.

“There has been a lot of investor attention focused on the Gulf

Cooperation Council but the problem is with the heterogeneous

nature of individual markets within the region,” he said.

Mohsin Mujtaba, director (Product and Market Development),

QSE, had said three more ETFs are in the pipeline.

ETFs were first introduced less than three decades ago but

have emerged as the fastest growing segment within the global

investment management industry. By end-2017, almost $4.5tn

had been invested in ETFs globally, Al Rayan said.

An aerial view of the facilities of IQ subsidiary Qapco in Mesaieed (file). IQ’s move will entice foreign funds to enhance their exposure in Qatar’s capital market, according to experts.

Saudi Arabia is planning to list up to 5% of Aramco in an IPO

BUSINESS

Gulf Times Wednesday, March 14, 20182

Algeria’s Sonatrachto invest $250mnto boost output atTinhert gas fieldReutersTinhert, Algeria

Algerian state energy firm Sonatrach will invest $250mn to boost output at the Tinhert gas field to 20mn cubic metres (mcm) per day by 2020 up from 5mn cubic metres, its CEO said on Monday.“This is an important project that will push our gas output up,” Sonatrach’s CEO Abdelmoumen Ould Kaddour told reporters on the site located in Algeria’s southeast not far from Libya’s borders.Algeria’s total gas output is around 100bn cubic metres per year, of which 55bn are exported.Several gas fields which were due to come onstream in 2016 and 2017 will come online this year, boosting Algeria’s gas output.The new fields include Touat, with 12.8mn cubic metres per day, Reggane North with 8mn cubic metres per day, and 148 barrels of condensate per

day and Timimoun with 5mn cubic metres per day. The Opec member has been hit hard by a slump in world oil prices and struggled to attract energy investment to help develop new fields and increase existing production.Algeria is a major gas supplier to Europe. Algeria remains dependent on oil and gas earnings, which provide 60% of the state budget, and Sonatrach’s performance is key to the health of the economy.The North African country has been working on a new energy law to provide better incentives for foreign firms, which had been deterred by current terms.But there are still divergent views within Algeria’s ruling classes over how hard to push for foreign investment and domestic economic reform to boost revenues and spur growth.Kaddour, a US-educated engineer, has sought to improve the performance of Sonatrach, a sprawling state empire, and attract foreign investment to boost its oil and gas production.

A general view of the headquarters building of Sonatrach in Algiers (file). The Algerian state energy firm will invest $250mn to boost output at the Tinhert gas field to 20mn cubic metres per day by 2020 up from 5mn cubic metres.

Saudi tycoon seeks last-ditch debt dealReutersDubai

Saudi Arabia’s collapsed Saad Group, led by businessman Maan al-Sanea, has called a

meeting with creditors in a last-ditch attempt to end a dispute over 16bn ri-yals ($4.3bn) of claims, sources close to the matter said.

Advisers to the group have asked creditors to meet in Dubai over the next few days, seeking a deal before Saudi authorities start auctioning, from March 18, billions of dollars of assets, including machinery, real es-tate, vehicles, belonging to Maan al-Sanea and his company, the sources added.

Maan al-Sanea, ranked in 2007 by Forbes as one of the world’s 100 rich-est people, was detained in Saudi Ara-bia’s Eastern Province last October for unpaid debt.

His case is separate from the dozens of Saudi businessmen and prominent fi gures who have been held in a cor-ruption crackdown.

Saad Group defaulted together with Ahmad Hamad al-Gosaibi and Broth-ers (AHAB) in 2009, in what was Saudi Arabia’s biggest fi nancial meltdown, leaving local and international banks with unpaid debt of about $22bn.

Advised by Reemas, a fi nancial con-sultancy, Maan al-Sanea has asked some of Saad’s creditors to meet in order to appoint a steering commit-tee to co-ordinate negotiations be-tween lenders and debtors — Saad Group and Maan al-Sanea himself — ahead of a potential debt settlement, sources who have seen the term sheet that sets the framework for a deal told Reuters.

The proposal, sent to creditors on March 7, concerns 42 eligible banks that have obtained fi nal non-ap-

pealable judgements against Maan al-Sanea, Saad Group, or both, from a court in Saudi Arabia’s Eastern Province, the sources said, speaking anonymously due to the sensitivity of the matter.

Local, regional and international banks eligible for a settlement have claims totalling 16bn riyals, with in-ternational banks such as BNP Parib-as and Citi, and regional lenders such as Mashreq, having claims of over 1bn riyals each, the sources said.

Some observers estimate Saad’s to-tal debt to be between 40bn and 60bn riyals.

The information sent to creditors does not include a settlement off er, but lists assets that could be discussed as part of a potential deal.

These include 12.3mn riyals in credit balances with Saudi banks and an additional 22.2mn riyals with other financial companies, the sources said.

They also include a total of 1.57bn riyals of shares in companies includ-ing National Commercial Bank, King-dom Holding, Samba Financial Group and Riyad Bank; 3.21bn riyals of real estate assets; stakes in four compa-nies; and so-called “top-up assets” to be contributed by relatives of Maan al-Sanea, the sources said.

They said Saad Group and Maan al-Sanea would provide a list of such “top up-assets” to the creditors shortly and that there was no indica-tion in the term sheet of their value.

A meeting between Saad Group

representatives and creditors was scheduled for March 14, but to ensure full attendance it has been resched-uled for next week, two sources famil-iar with the matter said.

Some creditors said the urgency to hold the meeting was to ensure the value of the assets at stake could be preserved better than under a liqui-dation process.

But one source familiar with the matter said the Saad assets to be sold on March 18 as part of the liquida-tion process included items such as machinery and were not the princi-pal assets used in Reemas’ proposal, which are real estate and equities, and that the outcome of the sale would not have any signifi cant impact on the proposed settlement talks.

Al-Sanea: Attempting to end a dispute over $4.3bn of claims.

3ISLAMIC FINANCEGULF TIMESWednesday, March 14, 2018

Australia Islamic fi nance blooms under the radarBy Arno MaierbruggerGulf Times Correspondent Bangkok

While Islamic fi nance cen-tres in Southeast Asia and the Middle East keep

dominating core developments in the sector, and news are cur-rently almost exclusively focused on upcoming Shariah-compliant fi nancial markets in Northern and Sub-Saharan Africa, Central Asia and Europe, activities elsewhere are quite out of the limelight, but un-justifi ably so.

An upcoming Islamic fi nance fo-rum, the IFN Australia Forum 2018, to be held on March 27 in Sydney, serves as a reminder that Shariah-compliant fi nance is a quite active segment of the fi nancial industry in Down Under, and also a sustain-ably growing one. Even though the country of 25mn people – of which 2.6% or around 650,000 identify themselves as Muslims as per the latest census in 2016 – does not have dedicated Islamic fi nance laws and regulations, the Shariah-com-pliant fi nance scene is blooming in line with Australia’s strong eco-nomic fundamentals.

The country in fact has a sub-stantial number of Islamic fi nance service providers which off er a broad scope of Shariah-compliant fi nance products ranging from house fi nancing, Islamic pensions, wealth management to halal super-annuation funds and takaful. Major industry players include Hejaz Fi-nancial Services in Thomastown, Victoria, one of the largest Islamic fi nance institutions in Australia; Melbourne-based MCCA Islamic Finance & Investments (formerly Muslim Community Cooperative of Australia); Islamic Co-Operative Finance Australia in Parramatta, Islamic home fi nancing provider Iskan Finance and Islamic invest-ment fi rm Crescent Wealth, both based in Sydney; Amanah Islamic Finance Australia based in Coburg, Victoria, as well as Islamic fi nance divisions of National Australia Bank and Westpac Banking Corp, which are mainly designing Muslim-friendly mortgage products to cater to the burgeoning real estate mar-

ket where one of the most popu-lar Shariah-compliant products is diminishing musharaka for home fi nancing.

In addition, there are institu-tions such as the Australian Center for Islamic Finance in Melbourne, which off ers Islamic fi nance skills training, the Islamic Financial Services Council of Australia, an industry body providing analysis, advice and advocacy for the Aus-tralian Islamic fi nancial services industry, also based in Melbourne, and the National Center of Excel-lence for Islamic Studies funded by the Australian government and op-erating in a collaboration between the University of Melbourne, Grif-fi th University and Western Sydney University.

The growth of Islamic fi nance in Australia is, fi rst of all, owing to a growing number of Muslim immi-grants over the past decade or two. Among the Muslim communities in Down Under, the largest are origi-nating from Bosnia, Bangladesh, Egypt, Iraq, Lebanon, Turkey and Somalia. There is also a Kurdish Muslim community, and more than 1,000 people identify themselves as Aboriginal Muslims, being de-scendants of Afghan cameleers who arrived in Melbourne in 1860, or have Indonesian ancestry.

Most of the growth in the number of Muslim Australians occurred in the recent past, with a 15%-growth between the 2011 and 2016 census alone and a 40% growth from 2006.

“The Australian Muslim commu-nity has experienced rapid growth since the 1990s, both in number and wealth,” explains Hakan Ozyon, CEO of Hejaz Financial Services and Chairman of the Islamic Finan-cial Services Council of Australia.

“I decided to establish Hejaz back in 2014 to provide complete Islamic fi nancial services solutions under one roof. Meanwhile, Hejaz is competi-tive with existing banks and is set to reach $1bn in assets by 2021,” he adds.

Apart from demand from do-mestic Muslims, as of late there is also strong interest from Shariah-compliant investors from Southeast Asia and the Middle East, particu-larly in Australia’s booming real es-tate sector.

For example, Malaysia’s Lem-baga Tabung Haji, a fund that fa-cilitates savings for the pilgrimage to Makkah through investments in Shariah-compliant vehicles, is one of the biggest Islamic investors into Australia. Institutional inves-tors from the UAE and Saudi Arabia are also on the outlook for Islamic property investment in the coun-try’s real estate hot spots Sydney, Melbourne, Brisbane, Adelaide, Perth, Darwin and Cairns.

The growing infl ow of Shariah-

compliant funds has propelled Australia among the non-Mus-lims jurisdictions with the larg-est amount of Islamic assets under management besides the UK and Luxembourg. Analysts forecast the Australian Islamic investment fund industry to grow up to $22bn in as-sets by 2020.

The sustained growth of Islamic fi nance in Australia is even more interesting to observe because the government did do much to support the industry. In September 2008, Canberra commissioned a report into how to position Australia as a fi nancial services hub in the Asia-Pacifi c region, and the analysts came up with a number of recom-mendations, including the develop-ment of Islamic fi nance. However,

the government, although encour-aging Muslim communities to set up their own fi nancial services eco-system, has been overall slow in re-sponding to the booming Shariah-compliant fi nance scene and is also hampered by weak institutional support from most large conven-tional banks and by the fact that most fi nancial regulation and legal issues are handled autonomously by Australia’s federal states. While this will not necessarily curb fur-ther growth of the industry for the Muslim clientele, it remains a chal-lenge for the expansion of Islamic fi nance into the non-Muslim fi nan-cial market in Australia, which, like elsewhere, requires clear invest-ment rules and regulations for legal reasons.

EDUCATION/FAQ on Employment

Is it permissible to provide investment consultancy services at a company that solicits interest-based loans for its clients from conventional banks and carries out feasibility studies for investments based on these interest-based loans?There are two considerations with respect to the permissibility of working in such a company; timing and level of involvement. Timing - If one assists in an impermissible transaction before the point of execution, one may fall into the impermissible. If one merely records an impermissible transaction that has already been executed (i.e. post-mortem auditing and accounting), one does not fall into an area of clear prohibition, though the scholars state that this is better to avoid. Level of involvement - If one is involved

in initiating, proposing, assisting, or executing an impermissible transaction, one is culpable. Since the company facilitates in obtaining of interest-based loans for its client and advises on them, providing investment consultancy services for such a company would be equivalent to assisting in prohibited transactions and, therefore, impermissible.

Is it permissible to record interest-based transactions?The unlawfulness of any form of employment depends on how direct one’s involvement is to the unlawful: direct involvement entails that one participates in the actual execution of an unlawful transaction; using interest-based transactions as an example, the one who buys, sells, trades, witnesses, records, calculates or in any way directly assists in an interest-based

transaction during its execution is culpable (e.g. car buyer who contracts an interest-based lease; homeowner who takes a mortgage; futures and options trader; insurance salesman; loan off icer); if an accountant, for instance, merely records a transaction that has already taken place, the involvement is not considered direct, and therefore remains permissible, though it is always superior to avoid the doubtful.

To what permissible extent may I claim worker’s compensation from my employer?Provided the employment contract entitles the employee to worker’s compensation, it is permissible to take worker’s compensation from one’s employer for injuries sustained on the job and, if necessary, to contest disputes over financial settlements

in court; worker’s compensation permissibly includes, but is not limited to, payment for medical expenses, lost wages and emotional distress; if there is no provision in the contract, the employer is recommended, but not obligated, to provide worker’s compensation unless injury is caused directly by the employer’s negligence (and not merely by the employee having injured himself due to his own negligence).

Are employees and temporary workers held accountable for loss, damage or theft resulting from their negligence?Employees and temporary workers do not count as individuals who rent out their services, and therefore may not be asked for compensation for loss, damage or theft, even due to their own negligence, unless the loss, damage

or theft is intentional, in which case compensation may be demanded.

Are non-compete clauses that restrict an employee’s ability to work in another company valid?Non-compete clauses that restrict an employee’s ability to work in another company are impermissible and corrupt the entire contract, though the contract itself remains valid and the clause would only have the eff ect of a non-binding promise.

An employee believes that a portion of his wages was taken for work not done altogether. What should he do?If an employee is certain that wages were taken for work not done altogether, those wages must be returned to the employer, unless the employer forgives the employee; if

the wages were taken for work done partially or poorly, those wages may be kept by the employee.

May one continue doing his job with an employer whose primary business is unlawful, given the job he does is not directly linked to the unlawful?If one is employed in lawful work (e.g. working as a security guard for an interest-based bank) or work that is not directly unlawful (e.g. working as a secretary for an interest-based bank) with an employer whose primary business is unlawful, it is permissible, though disliked, to continue with the work but superior to find work with an employer whose primary business is lawful.

Source: Ethica Institute of Islamic Finance via Bloomberg

BoE to off er Islamic liquidity tool more widelyReutersSydney

The Bank of England plans to off er a pro-posed Shariah-com-

pliant liquidity tool to a wider range of fi nancial institutions beyond Islamic banks to boost demand, a senior of-fi cial said last week. London has long sought to position itself as a global hub for Is-lamic fi nance, aiming to at-tract business from core cen-tres in the Middle East and Southeast Asia. The central bank has been working on a fund-based deposit model that would help Islamic lend-ers meet regulatory require-ments for liquid asset buff ers. But the tool will also be avail-able to institutions whose articles of association incor-porate Shariah compliance, Arshadur Rahman, manager

in the bank’s sterling mar-kets division, said during an industry conference at the London Stock Exchange, which was webcast. Such institutions may include Is-lamic mortgage fi rms, Islamic insurance fi rms and Islamic leasing fi rms, although the BoE did not specify whether these would be eligible for the new tool.

Off ering the product more widely would allow the Bank to “future proof” the facility by ensuring there is adequate demand, said Rahman, who is also the Bank’s Islamic fi nance specialist. While there is no fi xed date for the launch of the facility, the bank will work on its legal documentation and risk hedging aspects this year, he added.

The facility will be based on an agency contract known as wakala and would be backed by high quality liquid assets.

Nigeria’s own Fannie Mae sets out to double mortgage loans amid sukuk plans

BloombergAbuja

After suffering through an economic contrac-

tion that restrained demand for housing loans in

Africa’s most-populous country, Nigeria’s state-

backed mortgage guarantor is anticipating that

a return to growth will help double its nascent

asset base.

Set up four years ago to mimic the US’s Fannie

Mae, Nigeria Mortgage Refinance Co, or NMRC,

seeks to deepen the nation’s housing market by

financing lenders, which then use the money to

provide home loans. The need is extreme. The

country of more than 180mn people, has a short-

age of at least 17mn houses, with 780,000 units

needing to be built a year just to meet rising

demand, NMRC chief executive officer Charles

Inyangete said in an interview in Abuja last week.

For an economy of $405bn, Nigeria’s real estate

market is small, hobbled by a dearth of mort-

gages, poverty and interest rates at a record

high. It has also been beset by bad debts after

gross domestic product shrank 1.6% in 2016. At

least 55% of the mortgage industry’s 94bn naira

($261mn) of loans last year were classified as

non-performing, according to Nigeria’s Deposit

Insurance Corp.

Inyangete is betting on a turn around after three

straight quarters of GDP expansion, projecting

that NMRC’s 40bn naira of assets will double this

year. As a result, it will also mean the mortgage-

refinancier is tapping the bond market for the

first time in three years to raise its own funding,

the CEO said.

“As we come out of recession, we expect to see

a resurgence of activity in the housing market,”

he said. “We are cautiously optimistic that going

forward, we will see significant improvement in

demand in the housing market.”

NMRC plans to issue 11bn naira worth of 15-year

bonds through multiple sales as part of a five-

year 440bn-naira programme. As rates in the

Nigerian market trend lower, the company ex-

pects that it will get better yields than the 14.9%

it paid when it issued 8bn naira of notes in 2015,

Inyangete said.

The sales are “driven by the desire to refinance

more portfolios and we actually anticipate going

to the market more than once this year,” he said.

“There is greater interest in liquidity that we

provide and the long-term funding that comes

with that.”

It is also planning a debut Islamic debt sale, pos-

sibly by June, Inyangete said. Underwriting terms

for the 1bn-naira sukuk have been set and work

with regulators is progressing to “address the is-

sue of a non-interest mortgage,” Inyangete said.

“Part of the fundamental premise of our business

is inclusion,” he said. “The sukuk emanates from

that desire to create a non-interest product that

allows those who wish not to invest in interest-

bearing instruments to invest.”

Sharjah sells $1bn sukuk

The government of Sharjah, the third-largest of the UAE, has raised $1bn through a 10-year sukuk, the emirate’s biggest transaction in debt capital markets, a government off icial said last Thursday.The Islamic bond issue, the first under Sharjah’s newly established sukuk programme, was launched with initial price guidance of 150 basis points over the 10-year mid-swap rate and subsequently tightened to 135 bps.The deal priced last Wednesday.With such pricing “we avoided paying any new issuance premium despite the continuing fluctuations we have been seeing in global financial markets”, Tom Koczwara, debt-management adviser to the government, said in an emailed statement. “Our choice to pursue the maximum deal size and tenor from the options available to us was based on strong positive feedback from our marketing activities,” he said.Demand for the issue was more than $2.4bn, according to IFR News.The sukuk is Sharjah’s second bond issue this year, preceded by a 2bn renminbi ($316mn) three-year issuance in China’s Panda bond market in February.The sukuk was arranged by Dubai Islamic Bank, HSBC, Sharjah Islamic Bank and Standard Chartered.

The BoE plans to off er a proposed Shariah-compliant liquidity tool to a wider range of fi nancial institutions beyond Islamic banks to boost demand

The Australian flag flies outside the Reserve Bank of Australia headquarters in Sydney. Australia has a substantial number of Islamic finance service providers which off er a broad scope of Shariah-compliant finance products ranging from house financing, Islamic pensions, wealth management to halal superannuation funds and takaful.

Gulf TimesExclusive

BUSINESS


Sensex ends lower; rupee rises further to 64.90Bloomberg/ReutersMumbai

Indian shares had a mixed close as investors assessed inflation and factory output data after a rally in key indexes on Monday. Tata Consultancy Services dropped after its holding company was said to sell a stake.The Sensex index fell 0.18%, or 61.16 points, to 33,856.78. So far this year, Sensex has fallen 0.5%.The NSE Nifty 50 Index added 0.1% to 10,426.85 points. Seventeen of the 31 Sensex members climbed, while two Nifty members declined for every three that climbed.State refiners Bharat Petroleum Corp and Hindustan Petroleum Corp rose at least 4.4%, the most on the Nifty gauge. Tata Consultancy dropped 5.4% after its holding company Tata Sons was said to have sold 31.3mn shares to raise $1.38bn.India’s consumer prices last month rose at a slower-than-estimated pace, giving the nation’s central bank room to keep interest rates on hold for longer. Factory output for the month of January expanded more than expected, data released on Monday after markets closed showed. The numbers came after the main equity indexes climbed nearly 2% that day, following a rally in global counterparts.“Both the inflation and industrial production numbers were good and it’s some relief to the markets after a host of challenging news flow in the past fortnight,” said Jagannadham Thunuguntla, senior vice president and head of research for wealth at Centrum Broking in Mumbai. “We expect Nifty

to trade in the 10,100-10,500 range this month and take cues from earnings season and election sentiment from there on,” he said.Sixteen of the 19 sector gauges compiled by BSE advanced, paced by the S&P BSE Telecom Index’s 1.7% rally. The Nifty is still down 0.3% and the Sensex 1% lower in March after capping their worst month in two years in February. Meanwhile the rupee yesterday closed stronger against US dollar after better-than-estimated inflation data eased fears of near-term interest rate hikes by the Reserve Bank of India (RBI).The rupee closed at 64.90 a dollar, up 0.23% from its previous close of 65.05. The home currency opened at 64.93 a dollar and touched a high and a low of 64.84 and 65.01 respectively.Bond yield pared all the losses and closed marginally higher. Yields on 10-year government bonds ended at 7.656% compared to Monday’s close of 7.630%. Bond yields and prices move in opposite directions.Retail inflation surprisingly slowed for the second consecutive month to 4.4% in February from 5.1% in January and 5.2% in December. Factory output grew at a robust pace for the third straight month, at 7.5% in January.“The RBI faces less pressure to shift gears to a hawkish stance at the upcoming April review, with a similar tone to extend into June as well. For 2018, our expectations of a prolonged pause stays,” said Radhika Rao, economist of DBS Bank.According to CRISIL, it expects the repo rate to remain unchanged over the next six months unless significant upside risks to the monetary policy committee’s inflation forecast materialise.

EM equities holdat two-week highReutersLondon

Emerging stocks held at two-week highs yesterday but gains were limited as investors awaited US inflation data for hints on the pace of Fed rate rises, while the Turkish lira hit a near three-month low after a controversial voting law was passed.MSCI’s benchmark emerging equities index rose 0.3% in a fourth straight day of gains, but failed to match Monday’s stellar 1.2% rise as investors awaited a crucial US consumer inflation print. Inan Demir, senior emerging economist at Nomura International, said Friday’s US payrolls data had been strongly supportive of risk sentiment, thanks to its “Goldilocks” nature, showing rising employment but muted wage growth.“But now we have another test of that Goldilocks scenario coming up later. And I think it’s only natural for the emerging markets to pause for breath as well,” he said.A higher-than-expected inflation print could encourage the US Federal Reserve to raise interest rates more quickly than expected. Higher US rates reduce the attractiveness of riskier asset classes.The Turkish lira fell 0.7% against the dollar to its lowest since mid-December after parliament passed a controversial law revamping electoral regulations. The opposition said the law could open the door to fraud and jeopardise the fairness of 2019 polls.After the voting result was announced a brawl ensued.Demir said the law’s passage may have contributed to the negative sentiment around Turkey following the Moody’s ratings downgrade last week and the very weak current account numbers on Monday.Turkey also remains one of

the most vulnerable emerging markets to Fed rate rises.Turkish five-year credit default swaps also widened 2 basis points (bps) from Monday’s close to 171 bps.Turkey’s 10-year local government bond yield rose to 12.75%, its highest since November 2017.Regulatory changes also weighed on Chinese stocks, with mainland shares closing down 0.85%, snapping a three-day winning streak.China is merging its banking and insurance regulators, giving new powers to the central bank and creating new ministries in the biggest government shake-up in years.It will also form a new competition regulator to improve oversight of M&A and price-fixing.South African assets were also on the backfoot after a court blocked state power utility Eskom from signing $4.7bn of renewable energy deals.The energy minister said last week that delays in signing the projects over the years had aff ected investor confidence.Five-year credit default swaps for Eskom were up 1 bp from Monday’s close to 343 bps, according to IHS Markit data, its highest level since February 21.South African stocks fell 0.3% but the rand eked out gains of 0.2%. Russia’s rouble slipped 0.13% after British Prime Minister Theresa May said it was highly likely Moscow was behind the poisoning of a Russian former double agent in England using a military grade nerve agent.On the positive side, Indian bank shares jumped 2.4% to one-week highs after a report said Punjab National Bank (PNB) would compensate lenders who have lost money in an alleged fraud. Bank of India also leapt 8% on news it had recovered over $1bn from what had earlier been categorised as bad loans.

Asian bourses end mostly upAFPHong Kong

Asian markets mostly rose but investors moved cautiously yesterday as the recent global

rally lost steam, while trade tensions returned and markets look ahead to the release of crucial US infl ation data.

A strong jobs report on Friday and Donald Trump’s decision to meet Kim Jong-un helped fuel a surge in global equities at the end of last week, overshadowing US tariff s and fears of a trade war.

But concerns returned following comments from a European trade commissioner that the EU would “stand up to bullies” while Trump said he will look into cutting levies the bloc imposes on US goods.

The Dow and S&P 500 each fell, though the Nasdaq ticked up to an-other record high.

Attention is now on the infl ation release later in the day, which will be pored over for an idea about the Federal Reserve’s timetable for hik-ing interest rates.

A strong reading could hit mar-kets worried about the impact of higher borrowing costs on the in-vestment environment.

“Equity investors are fi nding it diffi cult to ignore the gnawing concerns about trade wars and are adopting a defence fi rst strategy despite the (positive) jobs number,” said Stephen Innes, head of Asia-Pacifi c trade at OANDA.

“Keep in mind the spotlight will be on US (consumer infl ation) to-

night, and it was only one month ago a surprise infl ation print sent the market into a tailspin, so likely some caution ahead of the critical US infl ation data.

Overall investors remain very cautious as sentiment recovers.”

Asian markets swung in and out of positive territory through the morning and by the end Tokyo was up 0.7%.

Hong Kong ended marginally higher while Shanghai fi nished 0.5% lower. Seoul added 0.4% and Singa-pore put on 0.3% but Sydney slipped 0.4%.

Wellington and Taipei were both

higher, while Manila, Bangkok and Jakarta fell.

“We need to brace ourselves for a possible impact in case that (infl a-tion) turns out to be higher than ex-pected,” forex strategists at Mizuho Securities said in a commentary.

The dollar edged up but was still struggling against the yen as trad-ers fret about the political future of Japanese Prime Minister Shinzo Abe and Finance Minister Taro Aso, who have both been sucked into a land deal scandal.

The controversy comes as dealers eye a wind-down of Japan’s crisis-era stimulus programme, which is

expected to put upward pressure on the yen, with some commenta-tors saying the greenback could fall below ¥100 for the fi rst time since 2016.

“The theme for 2018 is the risk of the dollar-yen breaking 100,” said Masashi Murata, a currency strate-gist at Brown Brothers Harriman in Tokyo. The yen above that level “wouldn’t look excessive from the perspective of its fundamentals”, he told Bloomberg News.

In Tokyo, the Nikkei 225 closed down 0.7% at 21,968.10 points and Hong Kong — Hang Seng ended fl at at 31,601.45 points yesterday.

People walk outside the Hong Kong Stock Exchange building. The Hang Seng closed flat at 31,601.45 points yesterday.

Bitcoin start-ups in Asia take aim atremittances marketStart-ups use bitcoin to cut cost of transfers; but their volumes for now are in millions rather than billions; low liquidity on exchanges, unclear regulations prevent scaling

ReutersHong Kong Seoul

Bitcoin, battered by warnings about volatility and bubble-like appre-ciation, may have found a way to

play a niche role in a big market: overseas money transfers.

Used as a transfer mechanism rather than a currency, bitcoin circumvents banks’ transaction fees.

Start-ups such as Bitspark in Hong Kong, and Bloom, Payphil, coins.ph and Satoshi Citadel Industries’ (SCI) remit-tance unit Rebit in Philippines, are trying to turn that into a business model.

Reduced liquidity on cryptocurrency exchanges and regulatory uncertainty are, for now, limiting monthly bitcoin-based remittances to millions of dol-lars in a multibillion-dollar market, the start-ups say.

But if cryptocurrencies mature, they say, traditional businesses will be in for some serious disruption.

“Bitcoin is so much better as a mecha-nism to send money around the world,” said George Harrap, chief executive of Bitspark, a company that performs transfers for dozens of remittance shops in Hong Kong, Philippines, Indonesia, Vietnam, Pakistan, Nigeria and Ghana. “There’s a lot less overhead that you need to do.”

Many of the start-ups, such as Bit-spark, do not deal directly with indi-vidual customers, but instead provide the “back end” transfer mechanism for remittance shops.

The businesses estimate how much money they will need for a day, buy bitcoin in advance and immediately sell it for the currency in the receiving country.

That means they do not hold crypto-currency for any meaningful length of time, and customers’ transactions are re-solved in minutes, rather than days. Kate Corporal, 28, a Filipina working at an in-ternational company in Incheon, South Korea, said she saved “huge” amounts sending money home using Rebit com-pared with traditional services.

“One thing I can guarantee is that the money I intended to send and the money that my family received was exactly the same,” Corporal said.”

Using bitcoin is really helpful for many Filipinos...as every single cent that we

send can be very signifi cant.” Reduced demand for cryptocurrencies in smaller economies often means bitcoin prices are lower, so sending $100 to Indonesia or the Philippines via bitcoin results in the equivalent of more than $100 at the other end.

Without the bank fees, the shops say they can charge their customers 25 to 75% less. But the model has lit-tle to no advantage in markets with larger Filipino communities such as Hong Kong and Singapore, where competition is high and fees are low — roughly 1-2%, compared with 10-15% in South Korea.

Rebit sends money to Philippines mainly from South Korea, Japan and Canada and is looking to expand to the Middle East.

The giants Western Union and Money-gram, which dominate the current mar-ket, are testing Ripple’s XRP, a crypto-currency smaller and more centralised than bitcoin.

But the industry’s transformation does not appear imminent. The value of all bitcoin held globally is about $160bn, roughly two-thirds of the Asian remit-tance market and a third of the global one, according to World Bank estimates.

That means local cryptocurrency ex-changes cannot cope with the cash fl ow needs of larger businesses.

“As soon as you’re doing $10-15mn a day, liquidity becomes an issue and you’re wondering, ‘how am I going to do this,’” said Prajit Nanu, chief executive and co-founder of InstaReM, which re-mits money to over 60 countries.

The start-ups avoid holding bitcoin for more than a few minutes because of its volatility.

Bitcoin now trades around $10,000, 10 times higher than a year ago, but half its December peak — a common swing for the emerging asset class.

“We started in 2014, when bitcoin crashed from $1,000 to $200-$300 and luckily our business model didn’t rely

on speculation,” said SCI co-founder Miguel Cuneta. “We are merely using it as a transfer mechanism,” he added.”We convert it as soon as possible.”

Cuneta says Rebit was only approved by Philippine’s central bank last year.

South Korea’s backing away from ban-ning cryptocurrency trading was en-couraging, he said, but more clarity was needed in Seoul and elsewhere.

In Singapore, start-up Toast gave up using bitcoin for remittances so it could get licensed. It is now transferring mon-ey the traditional way but plans to off er loans and insurance using blockchain technology and smart contracts — a product off ered by bitcoin’s main rival Ether and others.

“If you bought cryptocurrency as part of a money remittance mechanism it is very diffi cult to get your remittance li-cense in Singapore or anywhere else be-cause the regulators are still not sure how they are going to govern cryptocurrency,” said Aaron Siwoku, Toast’s founder.

Bitcoin, battered by warnings about volatility and bubble-like appreciation, may have found a way to play a niche role in a big market: overseas money transfers

BUSINESS5Gulf Times

Wednesday, March 14, 2018

Aluminium through the looking glass after Trump’s tariffsBy Andy HomeLondon

In a little more than a week’s time the

United States will impose a tariff of 10% on

all aluminium imports and 25% on all steel

imports. Except for those from Canada

and Mexico. For now.

Their exemptions have been folded

into separate negotiations on the North

American Free Trade Agreement.

Other countries may receive exemp-

tions as well, depending on who qualifies

as a “real” friend in the eyes of US Presi-

dent Donald Trump.

So far, only “our ally, the great nation of

Australia” has been given the Presidential

nod. What were announced as global tar-

iff s are already morphing into something

more complex, shaped by confusingly

elastic politics. The aluminium market,

however, hasn’t waited for the many nu-

ances to play out. It has quickly adjusted

to price in a post-tariff environment.

Not on the London Metal Exchange

(LME), where the aluminium price at

$2,100 a tonne is little changed since

Trump signed the executive orders for

tariff s last Thursday. Rather, the price

reaction has taken place in the physical

premium paid by US manufacturers for

their metal. The CME front-month Midwest

premium contract has nearly doubled

from 9.4 cents per lb at the start of Janu-

ary to its current 18.5 cents. Expressed

in dollar terms, the jump in premiums by

$200 a tonne equates to nearly 10% of the

cash LME aluminium price. The last time

US aluminium premiums were at this sort

of level was in 2014 and 2015. Back then

US aluminium users were in uproar.

This time they’re largely silent, even

though the impact could be worse.

Producers who were on the back foot four

years ago have since seized the political

initiative, helping to shape policy that links

national security to their survival.

Trump’s tariff s have sent the US alumin-

ium sector tumbling through the looking

glass into a world of inverted narratives.

At the height of the aluminium premi-

um bubble this decade a US manufacturer

was paying almost 24 cents per lb ($509 a

tonne) over the LME price to obtain physi-

cal metal.

What had previously been a stable,

minor component of the “all-in” price took

on a monstrous life of its own.

Manufacturers, who had neither the

tools nor the experience to handle the

premium blow-out, went on the warpath,

bringing down a storm of media and regu-

latory fire on the London Metal Exchange.

Long load-out queues at LME ware-

houses in Detroit, they claimed, were

directly inflating physical premiums.

Sitting at the centre of the storm was

a warehousing company called Metro

International Trade Services, acquired

by Goldman Sachs in 2010. The two

companies’ strategy of maximising queue

revenue was accompanied by rising

premiums, a virtuous circle for them but

a vicious circle for aluminium buyers. The

collective outrage, led by companies such

as MillerCoors dragged US lawmakers

and even the Commodity Futures Trading

Commission into the fray.

Producers, who were benefiting from

the windfall premium, were largely muted.

The whole sorry saga ended with the

LME introducing tough new load-out rules,

Goldman selling Metro in 2014 and the

warehousing company being fined $10mn

by the LME in 2016, still a record penalty

imposed by the exchange.

Fast forward to the present and it is

a former Goldman Sachs president and

erstwhile commodities trader, Gary Cohn,

who has been trying to sway President

Trump from imposing tariff s, albeit unsuc-

cessfully.

He has resigned from the Administra-

tion. US aluminium producers, meanwhile,

have found their voice.

Andy Home is a columnist for Reuters.

The views expressed are those of the author.

Sea change is underway in money markets for banks, investorsBloombergNew York

While many fi xed-income in-vestors may be focused on the spectre of higher long-

term Treasury yields, there’s a sea change afoot at the shorter end - in US money markets.

The London interbank off ered rate, or Libor, and rates on Treasury bills are around levels not seen since 2008. The Federal Reserve’s move to tighten policy forms the backdrop for the in-crease, but an added force behind the surge this year has come from a deluge of supply as US defi cits widen.

Higher short-term borrowing costs have implications for investors and also for banks, which fi nd themselves paying up to borrow through the com-mercial-paper market as they compete to lure cash.

“We are in a new paradigm,” said Jerome Schneider, head of the short-term and funding desk at Pacifi c In-vestment Management Co. “The clear focus for the market is where will in-cremental demand come from to meet this supply.”

The Treasury has been jacking up debt sales this quarter: Net issuance is slated to exceed $400bn, with the bulk coming in bills. The Treasury increased the 4-week bill sale to $65bn, from as low as $15bn earlier in the year.

The march higher in Libor has wide-spread consequences despite regula-tory eff orts to replace it following a price-fi xing scandal. About $350tn of fi nancial products and loans are linked to Libor, with a large chunk hinged to the dollar-based version of the bench-mark. Libor is among the main indexes, along with one-year T-bill rates, used to set US adjustable-rate mortgages.

Libor’s spread over the overnight

index swap rate, known as Libor-OIS, has widened as well, in another sign that banks face steeper funding costs. The gap has nearly doubled this year

to about 45 basis points. Meanwhile, the tax overhaul that the Republican-led Congress passed in December gave some companies less incentive to keep

cash abroad, curtailing demand for un-secured US dollar funding - Libor and commercial paper - and driving rates higher.

For investors, there may be a silver lining. After years of near-zero returns, the rise in rates is boosting demand for money-market funds. Assets in US government-only money funds, which include bills among key holdings, have risen to $2.26tn, from $2.07tn last year. As the Fed keeps hiking, with the next move likely this month, the infl ux may continue.

But for banks, the increasing appeal of T-bill rates is making them pay up to compete, through off ering better returns on the commercial paper they use for short-term borrowing.

“Banks still need funding and they need to entice investors,” Schneider said. And the once-dwindling com-mercial-paper market is reviving, with the amount outstanding on the rise.

At the same time, the surge in bill supply has boosted the amount of collateral available in the secured-funding market, pushing those rates higher. Steeper rates on repurchase agreements make it more expensive for dealers to fi nance debt holdings.

The leap in short-term rates also has implications for active stock inves-tors, according to Dennis Debusschere, head of portfolio strategy at Evercore ISI, citing a study dated last year. Some 58% of publicly traded stocks in the US from 1926 to 2015 failed to outperform one-month T-bills, according to the paper.

With T-bills becoming more attrac-tive relative to stocks, as the Fed moves away from the zero lower bound “and vol suppression policies become less of a focus, the inability to invest for the future will likely become a bigger headwind” for active managers, De-busschere wrote in a March 8 note.

ECB offi cial urges attention to the risk of euro’s swingsBloombergFrankfurt

The European Central Bank must keep its guard up against the risk of a sudden apprecia-

tion in the euro, according to Gov-erning Council member Philip Lane.

“There’s no concern about the current level,” Lane, who heads Ire-land’s central bank, said in an inter-view in Dublin. “But if it moves a lot within a short time interval then you have to think about the implications.”

The ECB has stepped up warn-ings against exchange-rate volatility in recent months as policy makers prepare the ground for ending their bond-buying programme. The euro has gained almost 16% versus the dollar over the past year and while that’s partly due to the region’s eco-nomic expansion, a stronger cur-rency also puts downward pressure on infl ation and potentially saps the competitiveness of exporters.

The euro briefl y spiked to the highest level since March 8 on Lane’s comments, before paring gains to trade little changed yesterday at $1.2328 in Frankfurt.

Three years since starting the as-set-purchase program, which is set to run until at least September and top €2.5tn ($3.1tn), the ECB remains well short of its infl ation goal of just under 2%.

Lane said progress on reaching that goal looks promising. The 48-year-old, who last month dropped out of the race for the ECB’s vice presidency and is among the favourites to be-come its next chief economist, said wage settlements are showing im-provement and companies are raising their markups.

“As these factors convert into higher infl ation readings, our confi -dence that infl ation will converge to the target over the medium term im-

proves,” he said. Refl ecting that con-fi dence, the ECB last week dropped its pledge to expand the monthly pace of bond purchases if needed. At the same time, President Mario Draghi stressed that buying will continue until infl ation is fi rmly back on track toward the target. Updated economic projections showed price growth still undershooting two years from now.

Meanwhile, traders are bracing for an appreciation of the single curren-cy. Based on a measure known as the implied volatility surface, the euro is more likely to trade above $1.27 than

below $1.20 in six months. Analysts predict the currency to end the year at $1.26.

The ECB’s policy statement last week also reiterated a pledge to keep interest rates unchanged until “well past” the end of net asset purchases. That commitment has become too vague for some policy makers in-cluding Bundesbank President Jens Weidmann, who argue the Govern-ing Council should be more explicit about when it plans to end purchases and tighten borrowing costs.

Offi cials are scheduled to hold

their next policy meeting on April 26, though economists don’t expect another signifi cant step toward un-winding stimulus until the following gathering in June.

For Lane, the current guidance on interest rates “makes clear” that there will be no immediate shift in policy, and the accumulated stock of pur-chases will be maintained by reinvest-ing proceeds from maturing bonds.

“Whenever net asset purchases come to an end, there will still remain considerable monetary accommoda-tion baked into the system,” he said.

The headquarters of the European Central Bank in Frankfurt. The ECB has stepped up warnings against exchange-rate volatility in recent months as policy makers prepare the ground for ending their bond-buying programme.

Steinhoff sells part of stake in S Africa’s KAP to cut debtReutersJohannesburg

Crisis-hit South African retail-er Steinhoff will sell part of its $800mn stake in KAP Industrial,

it said yesterday, another step in its ef-forts to shore up its fi nances and pay down debt.

Steinhoff , which has more than 40 retail brands that include Conforama, Poundland and Mattress Firm, faced a fi ght for survival after admitting “ac-counting irregularities” in December, wiping about 85% off its market value and throwing it into a liquidity crisis.

The company has said it plans to raise around €2bn ($2.47bn) from the sale of non-core assets and the proceeds of debt repayments from its African unit Stein-hoff Africa Retail to plug a hole in its bal-ance sheet.

Steinhoff has already raised around $729mn from the sale of stakes in South African investment fi rm PSG Group, French online retailer Showroomprive.com, as well a property in Austria.

The KAP deal could bring in another $300mn, one banker said.

The company said it would sell 450mn shares, or a 17% stake, in KAP via an ac-celerated bookbuild — reducing its hold-ing to 26% — to raise cash for repaying debt. Steinhoff plans to use the proceeds to help fund the early repayment of its

$1.3bn South African bond, which would release money for Mattress Firm in the United States.

Mattress Firm, the largest special-ity bedding retailer in the United States, needs a capital injection of around $200mn in the 2018 fi scal year, Steinhoff said in December.

Although the company has largely contained the short-term liquidity cri-sis in its European businesses, its work-ing capital remains tight after it agreed with lenders it would not access undrawn credit facilities in exchange for creditors waiving due payments.

Steinhoff has already raised 7.1bn rand from the sale of a stake in PSG Group.

It sold its 17% holding in online fashion retailer Showroomprive.com for €79mn ($97.4mn) and raised another €50mn from selling property in Austria.

Steinhoff said it would keep the 26% holding in KAP which it regards as a stra-tegic investment.

“Steinhoff continues to view KAP as a compelling investment case, especially in view of recent events in South Africa and the prospect of improving economic conditions,” Steinhoff said in a state-ment.

The election as president last month of Cyril Ramaphosa, who has promised to fi ght corruption and kickstart the econ-omy, has lifted confi dence among busi-ness leaders in Africa’s most advanced economy.

South Africa to tap ‘conducive’ bond markets shortly

South Africa plans to use optimism

generated by political changes in the

country to tap international bond mar-

kets for up to $3bn shortly, its Treasury

said yesterday.

Tshepiso Moahloli, chief director of

liability management at the Treasury, told

reporters it could potentially issue in cur-

rencies other than dollars and in segments

rather than $3bn all at once.

“We do take opportunity when the mar-

ket is conducive and currently the market

is conducive,” Moahloli said.

She was speaking in London along-

side new South African Finance Minister

Nhlanhla Nene.

The country’s final investment grade

credit rating, by Moody’s, is hanging by a

single notch, with the agency due to pub-

lish later this month the results of a review

for possible downgrade.

Nene said he believed South Africa was

telling a “credible” economic story.

But he acknowledged that it was unclear

if Moody’s would cut the rating to ‘junk’,

and that both the agency and private in-

vestors were asking many questions about

a government plan to transfer land from

white to black owners. New South African

President Cyril Ramaphosa is enjoying

something of a honeymoon period with

markets and investors after succeeding

Jacob Zuma, whose scandal-tainted admin-

istration oversaw an economic downturn.

Nene was reappointed to his former po-

sition by Ramaphosa two years after being

sacked from the same role by Zuma.

But Ramaphosa’s plan to change

the constitution to allow white-owned

property to be taken without payment for

redistribution to landless blacks is raising

concerns — notwithstanding the fact that

he told Moody’s last week that it would

be implemented so as not to harm the

economy or food security.

Nene said he too had met senior

Moody’s analysts on Monday in London

and gone through plans to cut spending

and increase revenues.

“We are looking at what needs to be

done to stimulate growth, among other

things building confidence... credibility.”

Qatar National BankIndustries QatarMasraf Al Rayan

Ooredoo QpscEzdan Holding Group

Qatar Islamic BankQatar Electricity & Water Co

Mesaieed Petrochemical HoldiBarwa Real Estate Co

Qatar Insurance CoQatar Fuel Qsc

Commercial Bank PqscDoha Bank Qpsc

Qatar Gas Transport(Nakilat)Qatar International Islamic

Qatar NavigationAl Ahli Bank

Vodafone QatarAamal Co

United Development CoAl Khalij Commercial Bank

Qatar General Insurance & ReQatari Investors Group

Qatar National Cement CoGulf International Services

Al Meera Consumer Goods CoMannai Corporation Qsc

Gulf Warehousing CompanyMedicare Group

Qatar Industrial ManufacturQatar First Bank

Zad Holding CoWidam Food Co

Mazaya Qatar Real Estate DevQatar Islamic Insurance

Doha Insurance CoSalam International Investme

Investment Holding GroupNational Leasing

Dlala HoldingAl Khaleej Takaful Group

Qatar & Oman Investment CoIslamic Holding Group

Qatar Cinema & Film DistribQatar Exchange Index Etf

Qatar German Co For Medical

138.80

106.99

36.65

83.89

9.22

96.60

190.94

13.34

33.75

38.20

116.50

28.10

27.50

16.85

57.37

64.00

34.00

7.80

9.20

15.65

12.00

47.40

32.28

59.00

17.13

148.00

61.38

39.58

76.50

40.93

6.66

107.00

58.50

7.80

56.77

14.25

5.90

6.31

10.00

11.85

11.55

7.77

29.06

22.66

90.61

6.01

6.93

4.58

-2.06

2.30

-2.43

0.73

2.66

2.62

-0.15

1.19

0.44

-0.35

1.40

-0.71

-2.12

-3.02

0.00

-1.27

-0.43

-0.57

0.33

4.87

-1.25

2.61

1.06

0.00

1.71

0.94

0.47

-0.17

0.76

9.17

0.88

-0.38

0.00

0.00

0.68

-6.38

-2.91

1.54

-3.75

0.26

-1.49

0.00

1.77

2.56

1,458,909

601,244

716,921

231,296

522,633

143,250

137,820

358,645

489,158

315,651

62,120

164,003

295,895

375,174

290,855

129,275

-

1,122,663

209,929

705,217

90,176

-

5,146

6,143

189,940

7,222

2,620

16,274

49,580

9,425

640,641

32,530

47,861

595,497

-

-

92,327

3,450,836

48,592

356,710

26,616

3,993

5,685

-

43,283

102,089

QATAR

Company Name Lt Price % Chg Volume

SAUDI ARABIA

United Wire Factories CompanEtihad Etisalat Co

Dar Al Arkan Real Estate DevSaudi Hollandi Bank

Rabigh Refining And PetrocheBanque Saudi Fransi

Saudi Enaya Cooperative InsuMediterranean & Gulf Insuran

Saudi British BankMohammad Al Mojil Group Co

Red Sea International CoTakween Advanced Industries

Sabb TakafulSaudi Arabian Fertilizer Co

National GypsumSaudi Ceramic Co

National Gas & IndustrializaSaudi Pharmaceutical Industr

ThimarNational Industrialization C

Saudi Transport And InvestmeSaudi Electricity Co

Saudi Arabia Refineries CoArriyadh Development Company

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

Saudi Vitrified Clay Pipe CoJarir Marketing Co

Arab National BankYanbu National Petrochemical

Arabian CementMiddle East Specialized Cabl

Al Khaleej Training And EducAl Sagr Co-Operative Insuran

Trade Union Cooperative InsuArabia Insurance Cooperative

Saudi Chemical CompanyFawaz Abdulaziz Alhokair & C

Bupa Arabia For CooperativeWafa Insurance

Jabal Omar Development CoSaudi Basic Industries Corp

Saudi Kayan Petrochemical CoEtihad Atheeb Telecommunicat

Co For Cooperative InsuranceNational Petrochemical Co

Gulf Union Cooperative InsurGulf General Cooperative Ins

Basic Chemical IndustriesSaudi Steel Pipe Co

Buruj Cooperative InsuranceMouwasat Medical Services Co

Southern Province Cement CoMaadaniyah

Yamama Cement CoJazan Energy And Development

Zamil Industrial InvestmentAlujain Corporation (Alco)

Tabuk Agricultural DevelopmeUnited Co-Operative Assuranc

Qassim Cement/TheSaudi Advanced Industries

Kingdom Holding CoSaudi Arabian Amiantit Co

Al Jouf Agriculture DevelopmSaudi Industrial Development

Bishah AgricultureRiyad Bank

The National Agriculture DevHalwani Bros Co

Arabian Pipes CoEastern Province Cement Co

Al Gassim Investment HoldingFiling & Packing Materials M

Saudi Cable CoTihama Advertising & Public

Saudi Investment Bank/TheAstra Industrial Group

Saudi Public Transport CoTaiba Holding Co

Saudi Industrial Export CoSaudi Real Estate Co

Saudia Dairy & Foodstuff CoNational Shipping Co Of/The

Methanol Chemicals CoChubb Arabia Cooperative Ins

Mobile Telecommunications CoSaudi Arabian Coop Ins Co

Axa Cooperative InsuranceAlsorayai Group

Weqaya For Takaful InsuranceBank Albilad

Al-Hassan G.I. Shaker CoWataniya Insurance Co

15.78

14.97

10.43

0.00

24.86

30.45

17.10

26.14

30.99

0.00

18.57

9.29

22.49

70.92

12.08

24.74

30.37

30.39

31.64

19.07

0.00

20.87

36.53

19.91

22.30

76.89

26.30

54.24

184.85

28.90

69.97

34.48

8.48

20.31

22.74

22.91

17.21

32.55

29.06

95.34

18.40

51.42

110.84

13.03

6.50

71.35

24.24

18.35

17.18

22.24

17.83

34.84

176.25

48.15

19.29

16.28

17.35

25.60

21.31

12.38

12.43

43.69

13.63

9.14

7.91

29.99

9.31

0.00

13.89

35.99

55.00

13.09

25.35

0.00

33.07

10.81

45.03

15.71

16.06

16.27

30.47

282.34

21.50

116.39

30.70

10.25

24.08

7.20

20.07

25.22

12.04

0.00

22.31

10.65

29.24

-0.25

1.91

0.10

0.00

-0.24

-1.68

-0.87

0.69

-0.42

0.00

-0.80

-0.21

-0.49

0.20

-0.33

-0.32

0.07

-0.36

2.13

-1.29

0.00

-0.24

1.93

-0.30

1.73

0.60

1.11

0.24

0.22

0.21

0.10

0.47

1.19

1.10

0.18

-0.09

-1.49

-0.55

0.03

-2.32

1.04

-1.31

0.09

0.23

-0.46

-4.50

-0.98

-0.05

-0.58

-0.76

0.34

-0.99

5.19

0.31

-0.87

-0.37

-0.74

0.16

-0.93

0.81

-0.56

-0.34

0.22

0.00

-0.50

-0.17

-0.21

0.00

-0.29

-1.21

0.00

-0.61

0.68

0.00

2.77

0.00

0.11

0.32

0.63

-1.03

-0.13

2.74

0.00

-0.85

1.29

-1.25

-0.29

0.56

2.55

0.48

0.25

0.00

0.68

0.38

1.81

142,237

3,971,271

34,695,186

-

1,480,269

542,838

89,059

151,211

127,079

-

89,416

265,893

109,238

483,434

90,398

80,094

40,004

90,824

1,645,692

3,759,372

-

1,933,397

1,175,583

448,518

706,243

172,240

504,613

19,993

26,301

419,861

193,962

80,840

765,516

83,880

248,471

114,527

131,034

97,486

339,287

285,366

473,809

623,815

6,333,581

8,660,868

552,021

1,324,305

1,211,419

78,354

96,704

282,603

437,068

250,387

149,264

22,206

104,991

118,198

215,570

29,501

374,033

707,816

103,772

73,154

488,158

34,803

598,727

79,403

164,881

-

978,533

228,012

15,170

321,104

13,704

-

448,375

-

472,020

140,716

332,886

527,457

222,321

288,196

78,579

57,530

1,170,488

1,366,318

91,920

3,415,127

1,010,468

343,400

204,459

-

818,219

446,985

226,554


Abdullah Al Othaim MarketsHail Cement

Saudi Re For Cooperative ReiSolidarity Saudi Takaful Co

Amana Cooperative InsuranceAlabdullatif Industrial Inv

Saudi Printing & Packaging CSanad Cooperative Insurance

Saudi Paper Manufacturing CoAlinma Bank

Almarai CoFalcom Saudi Equity Etf

United International TranspoHsbc Amanah Saudi 20 Etf

Saudi International PetrocheFalcom Petrochemical Etf

Walaa Cooperative InsuranceBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath InsuranceAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ Shams

162.58

9.51

9.32

23.62

20.64

13.02

19.54

0.00

8.14

20.12

54.78

30.00

32.55

31.20

20.49

28.40

34.57

13.04

76.56

26.50

62.93

17.40

18.20

23.30

48.44

40.94

19.48

12.11

35.17

1.64

0.11

-0.85

0.38

-0.43

0.31

-0.41

0.00

-0.97

-0.45

1.01

1.35

1.09

0.00

2.60

0.00

-1.73

-0.61

-1.12

-0.34

1.66

-0.11

-1.67

-0.13

-1.54

-1.44

-0.15

0.75

3.96

117,093

622,438

856,146

500,874

236,960

139,226

359,604

-

293,851

24,842,715

1,285,382

85,507

296,114

-

3,781,103

-

754,013

1,685,896

3,082,406

1,305,629

511,235

25,200

388,227

111,848

436,039

1,052,087

390,758

885,362

1,438,831

SAUDI ARABIA


Securities Group CoSultan Center Food Products

Kuwait Foundry Co SakKuwait Financial Centre Sak

Ajial Real Estate EntmtGulf Glass Manuf Co -Kscc

Kuwait Finance & InvestmentNational Industries Co Ksc

Kuwait Real Estate Holding CSecurities House/The

Boubyan Petrochemicals CoAl Ahli Bank Of Kuwait

Ahli United Bank (Almutahed)National Bank Of Kuwait

Commercial Bank Of KuwaitKuwait International Bank

Gulf BankAl-Massaleh Real Estate Co

Al Arabiya Real Estate CoKuwait Remal Real Estate Co

Alkout Industrial Projects CA’ayan Real Estate Co Sak

Investors Holding Group Co.KAl-Mazaya Holding Co

Al-Madar Finance & Invt CoGulf Petroleum Investment

Mabanee Co SakcCity Group

Inovest Co BscKuwait Gypsum Manufacturing

Al-Deera Holding CoAlshamel International Hold

Mena Real Estate CoNational Slaughter House

Amar Finance & Leasing CoUnited Projects For Aviation

National Consumer Holding CoAmwal International Investme

Jeeran HoldingsEquipment Holding Co K.S.C.C

Nafais HoldingSafwan Trading & Contracting

Arkan Al Kuwait Real EstateGfh Financial Group Bsc

Energy House Holding Co KscpKuwait Slaughter House Co

Kuwait Co For Process PlantAl Maidan Dental Clinic Co KNational Shooting Company

Al-Themar Real InternationalAl-Ahleia Insurance Co Sakp

Wethaq Takaful Insurance CoSalbookh Trading Co Kscp

Aqar Real Estate InvestmentsHayat Communications

Kuwait Packing Materials MfgSoor Fuel Marketing Co KscAlargan International RealBurgan Co For Well Drilling

Kuwait Resorts Co KsccOula Fuel Marketing Co

Palms Agro Production CoIkarus Petroleum Industries

Mubarrad Holding Co KscAl Mowasat Health Care Co

Shuaiba Industrial CoAan Digital Services Co

First Takaful Insurance CoKuwaiti Syrian Holding Co

National Cleaning CompanyEyas For High & Technical EdUnited Real Estate Company

AgilityKuwait & Middle East Fin Inv

Fujairah Cement IndustriesLivestock Transport & Tradng

International Resorts CoNational Industries Grp Hold

Marine Services Co KscWarba Insurance Co

Kuwait United Poultry CoFirst Dubai Real Estate Deve

Al Arabi Group Holding CoKuwait Hotels Sak

Mobile Telecommunications CoAl Safat Real Estate Co

Tamdeen Real Estate Co KscAl Mudon Intl Real Estate Co

Kuwait Cement Co KscSharjah Cement & Indus Devel

Kuwait Portland Cement CoEducational Holding Group

Bahrain Kuwait InsuranceAsiya Capital Investments Co

Kuwait Investment CoBurgan Bank

Kuwait Projects Co HoldingsAl Madina For Finance And In

Kuwait Insurance CoAl Masaken Intl Real Estate

Intl Financial AdvisorsFirst Investment Co Kscc

Al Mal Investment CompanyBayan Investment Co Kscc

Egypt Kuwait Holding Co SaeCoast Investment Development

Privatization Holding CompanKuwait Medical Services Co

Injazzat Real State CompanyKuwait Cable Vision Sak

Sanam Real Estate Co KsccIthmaar Holding Bsc

Aviation Lease And Finance CArzan Financial Group For Fi

Ajwan Gulf Real Estate CoKuwait Business Town Real Es

Future Kid Entertainment AndSpecialities Group Holding C

Abyaar Real Eastate DevelopmDar Al Thuraya Real Estate C

Al-Dar National Real EstateKgl Logistics Company Kscc

Combined Group ContractingJiyad Holding Co Ksc

Qurain Holding Co

0.00

0.00

0.00

0.00

1.25

0.00

0.00

-1.79

0.00

0.78

0.14

-1.15

-2.44

0.13

4.65

-0.43

1.17

-9.77

-0.59

-7.23

0.00

-7.31

-0.63

0.00

-15.77

-1.74

-0.14

0.00

-0.71

0.00

0.00

0.00

-0.33

0.00

0.00

0.00

0.00

2.00

0.00

0.56

0.00

0.00

0.11

0.00

-0.74

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.77

0.00

0.00

-0.75

0.00

0.00

0.00

0.00

0.29

-0.44

0.00

-5.88

-0.35

-4.17

1.32

0.00

0.00

0.00

0.00

0.00

0.00

1.08

0.00

0.00

0.67

0.00

0.00

6.11

0.00

0.00

-0.28

0.00

0.00

0.00

0.00

-0.35

0.00

-1.90

0.00

10.76

0.73

0.00

0.00

0.00

-0.34

1.27

4.61

0.00

6.85

0.00

0.00

0.00

-2.65

-1.67

-4.93

0.00

0.00

0.00

1.00

0.00

0.00

-2.28

-7.61

0.00

0.00

0.00

0.00

-2.99

-0.92

-0.62

0.00

0.00

0.60

-10.00

0.00

-1.43

2.35

-0.61

-0.13

0.70

0.43

2.39

0.00

-0.87

2.47

0.00

-2.90

0.63

0.00

0.00

2.13

-0.42

0.00

-2.64

0.00

0.00

0.00

0.34

0.00

0.00

-1.29

0.00

-7.06

0.00

0.00

0.00

0.00

-0.11

0.00

-1.09

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.20

0.00

0.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-2.47

0.00

0.00

0.00

0.00

0.30

-1.16

0.00

0.00

-0.82

-4.00

0.00

-10.71

0.00

-2.00

0.00

-9.84

0.00

2.65

0.00

0.00

-0.22

0.00

0.00

0.00

0.00

6.25

-1.55

3.65

0.00

3.49

0.00

-1.04

-0.33

-0.94

0.00

-9.71

-0.72

-1.52

-3.66

-0.24

0.68

-0.32

-1.99

0.00

-6.41

0.00

0.00

0.00

0.00

-1.64

-3.88

0.19

0.00

9.68

-2.43

0.00

0.00

-0.57

-2.95

0.00

0.00

-

-

17,936

10,000

5

-

32,729

22,213

4,000

727,900

1,506

2,428

242,250

1,647,801

48,398

487,751

3,978,650

13,200

27,000

227,040

-

235,396

876,143

25,000

400

569,600

316,129

-

40,360

-

1,314

-

96,513

-

2,550

1,961

100

7,510

-

188,061

-

-

42,000

343,128

4,000

-

10,000

533,478

-

-

100

2,500

6,500

25,530

10,000

-

77,387

30,000

5,000

150

25,642

-

-

341,117

-

10,000

-

610

2,297,291

286,311

-

20,000

150,914

100,000

40,118

1,500

50

365,817

-

10,407

-

300

500

165

1,449,047

-

2,319

30,030

7,263

627,000

79,150

70,050

-

12,869

140,629

1,128,480

14,000

60,100

1,877

35

285,700

60,100

68,500

111,470

92,000

160,010

1,764

-

100

4,785

14,692

223,500

443,000

15,000

7,200,373

76,500

87,300

600

626,003

-

-

1,371,923

7,950

-

-

KUWAIT


Voltamp Energy SaogUnited Power/Energy Co- Pref

United Power Co SaogUnited Finance Co

Ubar Hotels & ResortsTakaful Oman

Taageer FinanceSweets Of OmanSohar Power Co

Sohar PoultrySmn Power Holding Saog

Shell Oman Marketing - PrefShell Oman Marketing

Sharqiyah Desalination Co SaSembcorp Salalah Power & Wat

Salalah Port ServicesSalalah Mills Co

Salalah Beach Resort SaogSahara Hospitality

Renaissance Services SaogRaysut Cement Co

Port Service CorporationPhoenix Power Co Saoc

Packaging Co LtdOoredoo

OminvestOman United Insurance Co

Oman Textile Holding Co SaogOman Telecommunications Co

Oman Refreshment CoOman Packaging

Oman Orix Leasing Co.Oman Oil Marketing Company

Oman National Engineering AnOman Investment & Finance

Oman Intl MarketingOman Hotels & Tourism CoOman Foods International

Oman Flour MillsOman Fisheries CoOman Fiber Optics

Oman Europe Foods IndustriesOman Education & Training In

Oman ChromiteOman Chlorine

Oman Ceramic CompanyOman Cement Co

Oman Cables IndustryOman Agricultural Dev

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

National SecuritiesNational Real Estate Develop

National PharmaceuticalNational Mineral Water

National Hospitality InstituNational Gas Co

National Finance CoNational Detergent Co Saog

National Biscuit IndustriesNational Bank Of Oman Saog

Muscat Thread Mills CoMuscat National Holding

Muscat Gases Company SaogMuscat Finance

Majan Glass CompanyMajan College

Hsbc Bank OmanHotels Management Co Interna

Gulf StoneGulf Plastic Industries Co

Gulf Mushroom CompanyGulf Investments Services

Gulf Invest. Serv. Pref-SharGulf International Chemicals

Gulf Hotels (Oman) Co LtdGlobal Fin Investment

Galfar Engineering&ContractGalfar Engineering -Prefer

Financial Services Co.Financial Corp/The

Dhofar UniversityDhofar Tourism

Dhofar PoultryDhofar Intl Development

Dhofar InsuranceDhofar Fisheries & Food Indu

Dhofar CattlefeedDhofar Beverages Co

0.49

1.00

4.10

0.13

0.13

0.16

0.12

1.34

0.12

0.21

0.66

1.05

1.74

3.96

0.22

0.60

1.33

1.38

2.38

0.32

0.80

0.00

0.14

2.21

0.48

0.40

0.38

0.00

0.96

1.90

0.28

0.18

1.46

0.19

0.13

0.52

0.00

0.00

0.73

0.13

0.00

1.00

0.16

3.64

0.44

0.42

0.40

1.13

0.00

0.11

0.30

0.04

5.00

0.11

0.05

0.00

0.30

0.14

0.65

3.74

0.21

0.09

0.00

0.56

0.11

0.18

0.44

0.11

1.25

0.12

0.00

0.31

0.09

0.11

0.23

10.50

0.14

0.09

0.39

0.18

0.10

0.00

0.49

0.18

0.31

0.20

1.28

0.19

0.26

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.58

2.04

0.00

0.00

-2.44

0.00

0.00

0.00

0.00

-1.58

-1.49

0.00

0.00

0.00

0.00

0.75

0.00

0.00

0.00

0.00

0.00

0.00

2.58

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.41

0.00

0.48

0.00

0.00

0.36

-0.91

0.00

0.00

0.00

400.00

0.00

0.00

0.00

0.00

0.00

-1.68

0.00

0.00

1.19

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-

-

-

-

-

-

42,446

-

-

-

-

-

-

-

-

-

-

-

-

4,000

-

-

903,211

252

225,558

500,000

-

-

2,611,030

-

-

-

-

705,370

828,987

-

-

-

197,250

171,890

-

-

-

-

-

-

763,000

-

-

-

272,325

-

-

-

-

-

-

-

-

-

700,000

-

-

14,716

58,039

-

2,188

163,366

-

-

-

-

340,776

-

9,000

-

-

476,020

-

-

-

-

-

-

-

-

-

-

-

OMAN


Construction Materials IndComputer Stationery Inds

Bankmuscat SaogBank SoharBank Nizwa

Bank Dhofar SaogAreej Vegetable Oils Saoc

Aloula CoAl-Omaniya Financial Service

Al-Hassan Engineering CoAl-Fajar Al-Alamia Co

Al-Anwar Ceramic Tiles CoAl Suwadi Power

Al Shurooq Inv SerAl Sharqiya Invest Holding

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

Al Madina Investment CoAl Kamil Power Co

Al Jazerah Services -PfdAl Jazeera Steel Products Co

Al Jazeera ServicesAl Izz Islamic Bank

Al Buraimi HotelAl Batinah PowerAl Batinah Hotels

Al Batinah Dev & InvAl Anwar Holdings Saog

Ahli BankAcwa Power Barka Saog

Abrasives Manufacturing Co SA’saff a Foods Saog

0Man Oil Marketing Co-Pref

0.02

0.26

0.41

0.16

0.09

0.21

0.00

0.53

0.28

0.03

0.75

0.12

0.14

0.00

0.11

0.97

0.29

0.09

0.06

0.31

0.55

0.31

0.17

0.08

0.88

0.14

1.13

0.09

0.15

0.17

0.76

0.05

0.60

0.25

0.00

0.00

-0.49

0.65

-1.14

1.90

0.00

0.00

0.00

0.00

0.00

-0.80

0.00

0.00

0.00

0.00

-2.40

0.00

-1.79

0.00

0.00

-1.26

0.00

1.33

0.00

0.00

0.00

0.00

1.99

2.47

0.00

0.00

0.00

0.00

3,200

-

16,224,644

100,000

19,240

95,526

-

-

-

118,621

-

376,242

-

-

76,739

-

99,165

286,869

13,690

350,000

-

253,663

377,094

280,796

-

-

-

21,769

1,436,736

2,599,876

-

-

-

-

OMAN


Waha Capital PjscUnited Insurance Company

United Arab Bank PjscUnion National Bank/Abu Dhab

Union Insurance CoUnion Cement Co

Umm Al Qaiwain Cement IndustSharjah Islamic Bank

Sharjah Insurance CompanySharjah Group

Sharjah Cement & Indus DevelRas Al-Khaimah National Insu

Ras Al Khaimah White CementRas Al Khaimah Ceramics

Ras Al Khaimah Cement Co PscRas Al Khaima Poultry

Rak PropertiesOoredoo Qpsc

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

National Takaful CompanyNational Marine Dredging Co

National Investor Co/TheNational Corp Tourism & Hote

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

National Bank Of FujairahFirst Abu Dhabi Bank Pjsc

Methaq Takaful InsuranceManazel Real Estate Pjsc

Invest BankIntl Fish Farming Co Pjsc

Insurance HouseGulf Pharmaceutical Ind Psc

Gulf Medical ProjectsGulf Cement Co

Fujairah Cement IndustriesFujairah Building Industries

Foodco Holding PjscFirst Gulf BankFinance House

Eshraq Properties Co PjscEmirates Telecom Group Co

Emirates Insurance Co. (Psc)Emirates Driving Company

Dana GasCommercial Bank Internationa

Bank Of SharjahAxa Green Crescent Insurance

Arkan Building Materials CoAlkhaleej InvestmentAldar Properties Pjsc

Al Wathba National InsuranceAl Khazna Insurance Co

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

Al Buhaira National InsurancAl Ain Ahlia Ins. Co.

Agthia Group PjscAbu Dhabi Ship Building Co

Abu Dhabi Natl Co For BuildiAbu Dhabi National Takaful C

Abu Dhabi National InsuranceAbu Dhabi National Hotels

Abu Dhabi National Energy CoAbu Dhabi Islamic Bank

2.13

2.00

1.60

3.90

1.20

1.69

1.00

1.25

3.49

1.15

1.10

3.68

1.03

2.57

0.79

3.00

0.83

99.00

0.50

6.20

0.48

2.98

0.51

2.08

2.99

4.75

3.00

0.00

0.83

0.56

2.40

1.43

0.89

2.30

2.09

1.03

0.95

1.56

5.50

0.00

1.72

0.72

17.95

7.20

8.60

0.76

0.76

1.17

0.95

0.76

2.00

2.15

12.75

0.25

300.00

3.85

2.20

38.00

4.40

2.20

0.53

4.64

3.75

2.80

0.67

4.05

0.00

0.00

0.00

0.00

-9.09

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.77

5.33

0.00

2.47

0.00

0.00

0.00

-2.04

7.97

0.00

0.00

0.00

1.50

0.00

0.00

0.00

0.00

0.00

-2.05

0.00

0.00

0.00

-1.90

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.50

-1.30

-8.43

-1.68

0.00

0.00

0.00

0.94

0.00

-3.85

0.00

0.00

0.00

0.00

5.01

0.00

0.00

0.00

0.00

0.00

-6.94

-0.49

519,459

-

-

835,780

32,700

185,888

-

-

-

-

-

-

-

90,725

74,312

-

10,460,400

-

-

-

64,000

1,419

-

-

-

6,824

350,000

-

10,100

627,000

-

167,870

-

-

-

14,678

-

-

-

-

-

1,603,220

669,587

-

-

4,009,641

100

477,923

-

64,835

-

5,186,481

-

156,500

-

-

-

-

679,276

-

-

-

-

-

2,427,645

692,484

UAE


Zain Bahrain BsccUnited Paper Industries Bsc

United Gulf Investment CorpUnited Gulf BankTrafco Group Bsc

Takaful International CoTaib Bank -$Us

Seef PropertiesSecurities & Investment Co

National Hotels CoNational Bank Of Bahrain Bsc

Nass Corp BscKhaleeji Commercial Bank

Ithmaar Holding BscInvestcorp Bank -$Us

Inovest Co BscGulf Monetary Group

Gulf Hotel Group B.S.CGfh Financial Group Bsc

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

Bmmi BscBmb Investment Bank

Bbk BscBankmuscat Saog

Banader Hotels CoBahrain Tourism CoBahrain Telecom Co

Bahrain Ship Repair & EnginBahrain National Holding

Bahrain Kuwait InsuranceBahrain Islamic Bank

Bahrain Flour Mills CoBahrain Family Leisure Co

Bahrain Duty Free ComplexBahrain Commercial Facilitie

Bahrain Cinema CoBahrain Car Park Co

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

Aluminium Bahrain BscAlbaraka Banking Group

Al-Salam BankSolidarity Bahrain BscAhli United Bank B.S.C

0.09

0.00

0.00

0.00

0.33

0.00

0.00

0.22

0.00

0.00

0.63

0.12

0.09

0.12

9.40

0.00

0.00

0.53

0.39

0.11

0.00

0.77

0.00

0.46

0.00

0.00

`

0.22

1.52

0.43

0.00

0.13

0.00

0.00

0.77

0.76

0.00

0.00

0.42

0.33

0.61

0.37

0.14

0.00

0.71

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.90

0.00

0.00

6.78

0.00

0.00

4.35

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-1.52

-0.82

0.00

0.00

0.00

0.00

549,840

-

-

-

20,000

-

-

58,000

-

-

2,600

15,000

100,000

100,000

107,800

-

-

328,783

276,846

21,297

-

50,000

-

15,000

-

-

-

102,273

1,345

7,359

-

13,740

-

-

150,792

27,000

-

-

100,000

50,000

33,427

28,274

50,000

-

642,000

BAHRAIN


Boubyan Intl Industries HoldGulf Investment House Ksc

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

Osos Holding Group CoAl-Eid Food Ksc

Qurain Petrochemical IndustrAdvanced Technology Co

Ekttitab Holding Co SakKout Food Group Ksc

Real Estate Trade Centers CoAcico Industries Co Kscc

Kipco Asset Management CoNational Petroleum ServicesAlimtiaz Investment Co Kscc

Ras Al Khaimah White CementKuwait Reinsurance Co Ksc

Kuwait & Gulf Link TransportHuman Soft Holding Co Ksc

Automated Systems Co KsccMetal & Recycling Co

Gulf Franchising Holding CoAl-Enma’a Real Estate Co

National Mobile TelecommuniAl Bareeq Holding Co Kscc

Housing Finance Co SakAl Salam Group Holding Co

United Foodstuff IndustriesAl Aman Investment Company

Mashaer Holding Co KscManazel Holding

Mushrif Trading & ContractinTijara And Real Estate Inves

Kuwait Building MaterialsJazeera Airways Co Ksc

Commercial Real Estate CoFuture Communications Co

National International CoTaameer Real Estate Invest C

Gulf Cement CoHeavy Engineering And Ship B

Refrigeration Industries & SNational Real Estate Co

Al Safat Energy Holding CompKuwait National Cinema CoDanah Alsafat Foodstuff Co

Independent Petroleum GroupKuwait Real Estate Co Ksc

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

Kuwait Finance HouseGulf North Africa Holding Co

Hilal Cement CoOsoul Investment Kscc

Gulf Insurance Group KscKuwait Food Co (Americana)

Umm Al Qaiwain Cement IndustAayan Leasing & Investment

Alrai Media Group Co KscNational Investments CoCommercial Facilities Co

Taiba Kuwaiti Holding Co KscAfaq Educational Services Co

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

Dulaqan Real Estate Co

7.62

0.00

0.00

-0.93

0.92

0.00

1.17

0.00

-5.08

0.00

3.45

0.00

0.00

0.12

-0.72

0.00

0.00

-4.81

2.34

6.80

0.00

0.00

4.29

0.00

0.00

0.00

-0.27

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.83

0.00

0.00

-3.28

-13.95

0.00

-0.94

0.00

-1.72

0.00

0.00

0.00

0.00

0.19

-0.29

0.00

0.00

-0.17

0.53

-6.59

8.63

0.00

0.00

0.00

-0.29

12.50

-1.96

0.56

0.00

0.00

0.00

4.00

0.00

-1.56

-0.56

0.42

0.47

-1.31

0.00

0.29

0.00

0.00

0.00

14.17

0.00

0.00

1.23

1.46

0.00

0.00

-3.70

-1.26

0.00

0.00

0.00

-4.12

-0.39

0.00

0.00

0.00

0.00

0.00

0.00

-0.74

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.50

-1.84

0.00

-0.85

0.00

-0.09

0.00

-8.52

-0.57

-0.87

0.00

0.00

-0.17

-0.53

-5.21

0.00

0.00

0.00

0.00

0.00

0.84

0.00

0.00

0.00

0.00

0.00

0.00

0.00

233,203

623,281

180,742

1,859,787

30,000

5,000

105,947

-

72,356

-

5,100

7,000

14,099

43,600

385,510

102,281

-

1,265,554

68,005

20,300

45,000

-

21,000

1,249

-

-

81,196

-

16

15,000

247,000

-

4,126

-

397,146

1,064,810

-

5,000

91,002

245,397

240,000

-

329,819

500

750

391,513

1,790

902,400

91,597

36,298

-

2,615,323

1,202,250

12,000

30,000

1,100

323

-

565,291

1,722,832

509,000

163,900

-

-

-

1,000

-

KUWAIT


LATEST MARKET CLOSING FIGURES


BUSINESS6

CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

European stock marketstumble; euro strengthensAFPLondon

The US dollar dipped yesterday against European currencies after US infl ation data pointed

to a moderate pace of coming interest rate rises, with fresh White House tur-moil adding pressure on the greenback, dealers said.

Wall Street stocks initially pushed higher after the US consumer price in-dex (CPI) rose 0.25% in February, just as analysts had predicted, cooling from January’s jump of 0.5% which had sent markets around the world into a tail-spin.

The infl ation report “exactly matched expectations, and partially reverses some of the infl ation concerns caused by last month’s employment and CPI report,” said Marvin Loh, a markets strategist at BNY Mellon mar-kets.

The Federal Reserve is expected to raise its benchmark interest rates next week in the fi rst of at least three hikes expected this year – and market watchers had been looking for data that could justify the central bank act-ing more aggressively.

But the infl ation data “paints a pic-ture of slightly softer demand in the US”, said market analyst David Madden at CMC markets, which would reduce the need to raise interest rates sharply.

The US infl ation data came after a strong jobs report on Friday and US President Donald Trump’s decision to meet North Korean leader Kim Jong-un, both of which had helped fuel a surge in global equities at the end of last week.

The dollar was also hit by Trump’s announcement that he was replacing his top diplomat Rex Tillerson ahead of announced talks with North Korea.

“Both the dollar and the Dow Jones seemed a tad shaken by the fi ring of

Tillerson, the latest in a string of high profi le departures from the White House,” said analyst Connor Campbell at Spreadex.

Early gains by Wall Street stocks faded away in morning trading, with the Dow down 0.2% in midday trading.

The shakeup also did little to reas-sure European investors who have been watching anxiously as Trump and EU offi cials wage a rapidly escalating war of words over tariff s.

In European economic powerhouse Germany, the DAX stock market tum-bled 1.6% at 12,221.03 as the euro strengthened, weighing on export-ers who are also in the crosshairs of Trump’s trade barbs.

The London stock market also fell back, closing the day down 1.1% at 7,138.78 as the pound strengthened even as fi nance minister Philip Ham-mond said the British economy would grow slightly more than expected this year.

A trader is seen at the London Stock Exchange. The FTSE 100 lost 1.1% to 7,138.78 points yesterday.

BUSINESS7Gulf Times


Apple IncMicrosoft Corp

Exxon Mobil CorpJohnson & JohnsonGeneral Electric Co

Jpmorgan Chase & CoProcter & Gamble Co/The

Walmart IncVerizon Communications Inc

Pfizer IncVisa Inc-Class A Shares

Chevron CorpCoca-Cola Co/The

Intel CorpMerck & Co. Inc.

Cisco Systems IncHome Depot Inc

Intl Business Machines CorpWalt Disney Co/The

Unitedhealth Group Inc3M Co

Mcdonald’s CorpNike Inc -Cl B

United Technologies CorpBoeing Co/The

Goldman Sachs Group IncAmerican Express Co

Caterpillar IncTravelers Cos Inc/The

182.29

95.30

74.65

134.93

14.48

116.66

79.50

88.02

48.96

36.61

123.05

117.18

44.44

52.52

55.13

45.35

178.68

159.55

104.01

226.11

238.96

158.70

66.72

130.88

340.87

269.49

95.49

154.29

140.71

0.31

-1.52

-0.78

1.73

-4.11

-0.85

-0.45

-0.06

0.33

0.00

-0.96

0.33

-0.20

1.94

-0.42

-0.44

-0.57

-0.44

-1.10

1.50

-0.35

0.61

-0.15

-0.47

-0.96

-1.42

-2.23

-0.14

-0.55

13,449,068

12,431,117

5,394,794

3,990,040

55,752,512

4,214,274

3,238,372

2,980,478

4,331,275

8,521,735

2,356,890

2,122,966

3,677,010

23,239,874

4,167,068

8,755,090

2,083,242

1,977,994

2,662,990

1,283,879

634,241

1,522,693

1,785,052

1,040,337

2,377,651

850,678

2,209,453

1,930,625

354,571

DJIA


Wpp PlcWorldpay Group Plc

Wolseley PlcWm Morrison Supermarkets

Whitbread PlcVodafone Group Plc

United Utilities Group PlcUnilever Plc

Tui Ag-DiTravis Perkins Plc

Tesco PlcTaylor Wimpey Plc

Standard Life PlcStandard Chartered Plc

St James’s Place PlcSse Plc

Smith & Nephew PlcSky Plc

Shire PlcSevern Trent Plc

Schroders PlcSainsbury (J) Plc

Sage Group Plc/TheAbi Sab Group Holding Ltd

Rsa Insurance Group PlcRoyal Mail Plc

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

Royal Bank Of Scotland GroupRolls-Royce Holdings Plc

Rio Tinto PlcRexam Ltd

Relx PlcReckitt Benckiser Group Plc

Randgold Resources LtdPrudential Plc

Provident Financial PlcPersimmon Plc

Pearson PlcPaddy Power Betfair Plc

Old Mutual PlcNext Plc

National Grid PlcMondi Plc

Merlin EntertainmentMediclinic International Plc

Marks & Spencer Group PlcLondon Stock Exchange Group

Lloyds Banking Group PlcLegal & General Group PlcLand Securities Group Plc

Kingfisher PlcJohnson Matthey Plc

Itv PlcIntu Properties Plc

Intl Consolidated Airline-DiIntertek Group Plc

Intercontinental Hotels GrouInmarsat Plc

Informa PlcImperial Brands Plc

Hsbc Holdings PlcHargreaves Lansdown Plc

Hammerson PlcGlencore Plc

Glaxosmithkline PlcGkn Plc

Fresnillo PlcExperian Plc

Easyjet PlcDixons Carphone Plc

Direct Line Insurance GroupDiageo Plc

Dcc PlcCrh Plc

Compass Group PlcCoca-Cola Hbc Ag-Di

Centrica PlcCarnival Plc

Capita PlcBurberry Group Plc

Bunzl PlcBt Group Plc

British Land Co PlcBritish American Tobacco Plc

Bp PlcBhp Billiton Plc

Berkeley Group Holdings/TheBarratt Developments Plc

Barclays PlcBae Systems Plc

Babcock Intl Group PlcAviva Plc

Astrazeneca PlcAssociated British Foods Plc

Ashtead Group PlcArm Holdings Plc

Antofagasta PlcAnglo American Plc

Admiral Group Plc3I Group Plc

#N/A

1,164.50

0.00

0.00

226.10

3,884.00

202.30

694.80

3,793.00

1,525.50

1,306.00

210.30

185.25

0.00

776.10

1,117.00

1,225.00

1,325.50

1,321.00

3,159.00

1,802.50

3,424.00

241.50

691.40

0.00

629.40

561.60

2,267.50

2,241.50

259.70

902.20

3,729.00

0.00

1,492.00

5,667.00

6,060.00

1,826.50

944.00

2,549.00

759.80

7,700.00

256.20

4,793.00

776.60

1,955.50

363.80

609.00

278.10

3,913.00

67.01

258.00

913.00

353.40

3,169.00

149.20

212.80

629.80

4,948.00

4,568.00

393.30

713.40

2,499.50

698.10

1,710.50

457.90

379.15

1,314.80

429.60

1,223.50

1,588.00

1,627.00

185.10

383.00

2,414.50

6,820.00

2,438.00

1,540.50

2,521.00

139.50

4,763.00

159.70

1,645.50

2,064.00

227.95

638.60

4,170.50

474.45

1,441.20

3,835.00

540.20

210.50

582.00

666.00

514.40

4,788.00

2,569.00

2,005.00

0.00

915.00

1,726.60

1,892.50

906.20

0.00

-2.55

0.00

0.00

-0.13

-1.62

-2.36

-0.97

-2.28

-0.81

-1.10

-0.71

-0.99

0.00

-0.75

-2.87

-0.69

-0.30

-0.41

-0.63

-0.88

-0.61

-1.47

-1.23

0.00

-0.88

-1.06

-0.46

-0.51

-1.10

-0.97

0.42

0.00

-1.94

-0.53

1.24

-1.14

1.79

-1.35

-0.94

-1.79

-0.35

-0.56

-0.92

-1.44

-0.87

-1.20

-0.50

-0.81

-0.73

-2.05

-0.91

0.66

-2.49

-1.87

0.19

0.29

-1.83

-0.39

-4.00

0.11

-2.10

-1.06

-1.13

0.86

2.74

-1.73

1.30

-0.45

-0.50

1.21

-0.78

-2.59

-1.99

0.52

-0.25

-0.87

-0.87

-0.92

0.00

-6.47

-0.87

0.93

-3.00

-0.62

-1.99

-0.73

-0.01

-0.42

-1.60

-0.47

-2.45

-0.95

-1.34

-0.25

-1.27

0.38

0.00

3.06

-0.70

-2.72

-1.82

0.00

5,513,216

-

-

4,159,738

169,439

31,300,986

988,223

1,501,627

450,510

606,261

19,259,890

7,476,223

-

3,471,512

1,341,266

3,871,411

1,784,687

2,513,534

959,499

524,759

673,378

3,236,394

1,552,579

-

1,319,926

2,572,600

3,034,559

3,602,492

6,750,562

2,289,339

2,387,630

-

1,839,853

1,036,409

333,846

2,081,896

528,864

691,607

1,226,584

55,848

6,405,192

316,342

4,483,937

826,324

1,725,314

729,017

11,138,487

332,592

53,934,253

8,950,036

711,248

5,793,334

277,220

6,845,249

1,949,913

2,770,816

146,636

157,854

3,450,379

2,183,354

1,758,454

14,914,484

399,547

4,289,340

29,950,527

4,938,566

10,191,481

605,039

1,247,779

1,378,939

1,670,034

3,631,336

1,603,835

109,916

690,074

1,336,535

404,675

7,482,646

415,084

2,990,032

947,171

1,270,829

16,324,308

1,949,534

1,956,237

16,673,585

5,260,894

456,129

2,190,212

23,562,067

3,346,765

1,323,774

5,724,129

871,042

414,029

1,156,635

-

2,070,772

3,060,767

482,418

1,999,497

-

FTSE 100


East Japan Railway CoItochu Corp

Fujifilm Holdings CorpYamato Holdings Co Ltd

Chubu Electric Power Co IncMitsubishi Estate Co Ltd

Mitsubishi Heavy IndustriesToshiba Corp

Shiseido Co LtdShionogi & Co Ltd

Tokyo Gas Co LtdTokyo Electron Ltd

Panasonic CorpFujitsu Ltd

Central Japan Railway CoT&D Holdings Inc

Toyota Motor CorpKddi Corp

Nitto Denko Corp

9,867.00

2,012.50

4,384.00

2,704.50

1,469.00

1,827.50

4,102.00

320.00

6,423.00

5,572.00

2,697.00

22,710.00

1,692.00

650.90

19,980.00

1,703.50

6,969.00

2,720.00

8,820.00

0.17

-0.57

0.83

0.06

2.84

-0.16

0.47

0.95

0.71

0.52

2.53

2.27

0.74

0.37

0.55

-0.67

0.16

0.72

1.34

851,400

3,395,700

1,110,900

1,483,900

2,108,600

2,785,700

948,500

17,355,000

1,587,600

804,400

1,605,200

1,733,900

8,771,700

12,162,000

255,400

2,066,500

4,562,600

6,699,600

1,007,100

TOKYO


Rakuten IncKyocera Corp

Nissan Motor Co LtdHitachi Ltd

Takeda Pharmaceutical Co LtdJfe Holdings Inc

Ana Holdings IncMitsubishi Electric Corp

Sumitomo Mitsui Financial GrHonda Motor Co Ltd

Fast Retailing Co LtdMs&Ad Insurance Group Holdin

Kubota CorpSeven & I Holdings Co Ltd

Inpex CorpResona Holdings Inc

Asahi Kasei CorpKirin Holdings Co Ltd

Marubeni CorpMitsubishi Ufj Financial Gro

Mitsubishi Chemical HoldingsFanuc Corp

Daito Trust Construct Co LtdOtsuka Holdings Co Ltd

Oriental Land Co LtdSekisui House Ltd

Secom Co LtdTokio Marine Holdings Inc

Aeon Co LtdMitsui & Co Ltd

Kao CorpDai-Ichi Life Holdings Inc

Mazda Motor CorpKomatsu Ltd

West Japan Railway CoMurata Manufacturing Co Ltd

Kansai Electric Power Co IncDenso Corp

Sompo Holdings IncDaiwa House Industry Co Ltd

Jxtg Holdings IncNippon Steel & Sumitomo Meta

Suzuki Motor CorpNippon Telegraph & Telephone

Ajinomoto Co IncMitsui Fudosan Co Ltd

Ono Pharmaceutical Co LtdDaikin Industries Ltd

Bank Of Yokohama Ltd/TheToray Industries IncAstellas Pharma Inc

Bridgestone CorpSony CorpHoya Corp

Sumitomo Mitsui Trust HoldinJapan Tobacco Inc

Osaka Gas Co LtdSumitomo Electric Industries

Daiwa Securities Group IncSoftbank Group Corp

Mizuho Financial Group IncNomura Holdings Inc

Daiichi Sankyo Co LtdSubaru Corp

Ntt Docomo IncSumitomo Realty & Developmen

Sumitomo Metal Mining Co LtdOrix Corp

Asahi Group Holdings LtdKeyence Corp

Nidec CorpIsuzu Motors Ltd

Unicharm CorpShin-Etsu Chemical Co Ltd

Smc CorpMitsubishi CorpNintendo Co Ltd

Eisai Co LtdSumitomo Corp

Canon IncJapan Airlines Co Ltd

946.40

6,212.00

1,130.00

820.30

5,696.00

2,250.50

4,241.00

1,795.50

4,616.00

3,708.00

43,170.00

3,347.00

1,883.50

4,481.00

1,281.00

594.90

1,410.00

2,937.50

784.70

737.70

1,063.50

27,490.00

18,125.00

5,393.00

10,450.00

1,895.50

7,839.00

5,001.00

1,834.00

1,889.50

7,690.00

2,035.00

1,399.00

3,698.00

7,477.00

15,430.00

1,290.00

6,061.00

4,173.00

4,041.00

634.30

2,393.00

5,731.00

5,010.00

1,991.00

2,479.00

3,300.00

12,125.00

0.00

1,061.50

1,561.00

4,695.00

5,356.00

5,711.00

4,454.00

3,058.00

2,062.00

1,658.50

703.90

8,697.00

196.80

644.60

3,866.00

3,663.00

2,746.50

3,901.00

4,487.00

1,896.00

5,657.00

65,690.00

17,240.00

1,654.50

2,943.00

11,510.00

46,500.00

2,998.00

48,780.00

6,929.00

1,806.00

3,970.00

4,298.00

1.47

-0.21

-0.04

1.37

0.18

-0.68

0.40

1.15

-0.26

-0.83

0.37

0.66

-1.18

0.47

-1.69

0.32

0.53

1.21

-0.30

2.30

-0.09

0.86

0.17

1.35

0.58

1.45

0.82

0.46

0.44

-0.92

0.27

-0.73

0.11

0.46

1.12

0.59

3.82

-0.15

0.63

2.33

-3.19

-0.68

-1.07

-0.10

1.35

-0.48

2.07

0.83

0.00

0.19

0.81

-0.19

1.08

2.79

0.93

1.19

1.98

0.42

1.16

0.71

-0.51

0.14

0.70

-0.05

-0.18

0.03

-1.60

0.85

0.82

1.23

0.26

-0.75

-0.10

2.45

1.91

0.82

0.79

2.11

-1.31

0.28

1.30

TOKYO

Company Name Lt Price % Chg

Aluminum Corp Of China Ltd-HBank Of East Asia Ltd

Bank Of China Ltd-HBank Of Communications Co-H

Belle International HoldingsBoc Hong Kong Holdings Ltd

Cathay Pacific AirwaysCk Hutchison Holdings Ltd

China Coal Energy Co-HChina Construction Bank-H

China Life Insurance Co-HChina Merchants Port Holding

China Mobile LtdChina Overseas Land & Invest

China Petroleum & Chemical-HChina Resources Beer Holdin

China Resources Land LtdChina Resources Power Holdin

China Shenhua Energy Co-HChina Unicom Hong Kong Ltd

Citic LtdClp Holdings Ltd

Cnooc LtdCosco Shipping Ports Ltd

Esprit Holdings LtdFih Mobile Ltd

Hang Lung Properties LtdHang Seng Bank Ltd

Henderson Land Development

4.62

34.15

4.44

6.43

0.00

40.00

13.78

98.50

3.56

8.59

23.50

18.56

71.70

27.75

6.41

34.00

28.10

14.06

22.20

9.64

11.72

78.70

11.36

7.27

3.02

2.05

19.00

191.20

52.00

0.00

1.04

1.83

0.78

0.00

0.38

-1.01

-1.01

-1.66

1.06

0.43

-0.32

-1.17

-1.77

-0.77

0.15

-1.40

0.14

-0.22

-1.73

1.38

0.25

-1.90

-0.27

0.00

-1.91

0.42

0.84

0.00

14,922,059

1,987,045

466,472,736

31,036,643

-

7,946,332

3,543,032

7,269,423

15,580,961

523,052,696

25,896,751

2,833,134

17,801,661

13,061,320

91,716,497

8,078,047

6,876,508

4,694,925

11,324,672

65,285,995

6,802,085

3,246,946

60,729,816

1,950,994

1,628,427

11,070,680

2,528,125

2,564,635

1,436,249

HONG KONG


Hong Kong & China GasHong Kong Exchanges & Clear

Hsbc Holdings PlcHutchison Whampoa Ltd

Ind & Comm Bk Of China-HLi & Fung Ltd

Mtr CorpNew World Development

Petrochina Co Ltd-HPing An Insurance Group Co-H

Power Assets Holdings LtdSino Land Co

Sun Hung Kai PropertiesSwire Pacific Ltd - Cl ATencent Holdings Ltd

Wharf Holdings Ltd

15.90

291.00

77.10

0.00

7.13

4.20

43.85

12.18

5.41

86.40

68.60

14.18

129.90

80.00

462.80

28.85

1.79

-0.41

-0.39

0.00

1.13

0.00

1.50

0.50

-0.37

-0.46

-0.29

-0.70

-0.38

-0.62

0.61

-0.17

18,517,264

5,379,331

18,004,006

-

435,297,508

14,399,481

7,877,697

12,286,034

60,170,394

34,139,019

3,074,194

6,118,910

2,902,622

1,321,282

18,501,646

9,871,263

HONG KONG


Zee Entertainment EnterpriseYes Bank Ltd

Wipro LtdVedanta Ltd

Ultratech Cement LtdTech Mahindra Ltd

Tata Steel LtdTata Power Co Ltd

Tata Motors LtdTata Consultancy Svcs Ltd

Sun Pharmaceutical IndusState Bank Of India

Reliance Industries LtdPunjab National Bank

Power Grid Corp Of India LtdOil & Natural Gas Corp Ltd

Ntpc LtdMaruti Suzuki India Ltd

Mahindra & Mahindra LtdLupin Ltd

Larsen & Toubro LtdKotak Mahindra Bank Ltd

Itc LtdInfosys Ltd

Indusind Bank LtdIdea Cellular Ltd

Icici Bank LtdHousing Development Finance

Hindustan Unilever LtdHindalco Industries Ltd

Hero Motocorp LtdHdfc Bank Limited

Hcl Technologies LtdGrasim Industries Ltd

Gail India LtdDr. Reddy’s Laboratories

Coal India LtdCipla Ltd

Cairn India LtdBosch Ltd

Bharti Airtel LtdBharat Petroleum Corp Ltd

Bharat Heavy ElectricalsBank Of Baroda

Bajaj Auto LtdAxis Bank Ltd

Asian Paints LtdAmbuja Cements Ltd

Adani Ports And Special EconAcc Ltd

579.15

312.80

296.60

321.05

4,170.00

619.15

628.85

81.35

353.15

2,886.80

523.30

254.70

931.85

97.95

195.05

183.60

169.40

8,756.05

733.00

780.60

1,302.75

1,083.90

269.45

1,183.80

1,729.50

80.65

304.35

1,868.50

1,320.55

226.15

3,701.20

1,860.25

957.00

1,109.20

455.95

2,181.50

294.85

578.75

0.00

18,487.90

426.30

466.65

86.90

141.55

2,971.75

531.50

1,140.30

238.80

385.20

1,575.35

0.50

0.53

2.03

1.15

-0.14

-0.06

0.96

0.62

0.16

-5.42

2.08

0.73

0.17

3.54

0.03

1.10

-1.02

-0.62

-0.56

1.40

-0.56

-1.52

-0.24

-0.16

-0.33

2.74

1.23

0.56

-0.28

-0.66

0.18

-0.37

-1.10

0.29

2.13

1.54

-0.94

-0.33

0.00

1.32

1.13

4.45

-0.06

7.15

0.47

2.37

0.78

-0.85

-0.36

0.99

SENSEX

Company Name Lt Price % Chg

WORLD INDICESIndices Lt Price Change

GCC INDICESIndices Lt Price Change

Dow Jones Indus. AvgS&P 500 Index

Nasdaq Composite IndexS&P/Tsx Composite Index

Mexico Bolsa IndexBrazil Bovespa Stock Idx

Ftse 100 IndexCac 40 Index

Dax IndexIbex 35 Tr

Nikkei 225Japan Topix

Hang Seng IndexAll Ordinaries Indx

Nzx All IndexBse Sensex 30 Index

Nse S&P Cnx Nifty IndexStraits Times Index

Karachi All Share IndexJakarta Composite Index

25,080.95

2,782.31

7,523.51

15,674.19

48,738.13

86,609.78

7,148.21

5,240.61

12,230.35

9,697.70

21,968.10

1,751.03

31,601.45

6,077.15

1,518.32

33,856.78

10,426.85

3,553.73

31,576.56

6,412.85

-97.66

-0.71

-64.81

+69.40

+66.84

-290.65

-66.55

-36.10

-188.04

-29.80

+144.07

+9.73

+7.12

-24.22

+1.55

-61.16

+5.45

+13.54

+166.00

-87.84

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

8,801.75

7,778.05

6,728.29

1,361.10

4,899.79

4,537.65

3,166.43

+138.71

-2.78

+2.65

+7.82

+24.37

+3.48

+0.92

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

7,581,500

1,301,500

14,685,000

11,523,000

1,959,000

3,502,200

794,500

6,967,700

5,358,200

3,605,000

523,200

1,904,900

4,027,700

1,527,100

5,537,000

11,040,500

4,891,300

2,920,900

6,124,200

52,691,900

5,443,700

999,700

218,200

640,200

358,600

2,669,600

546,800

1,430,100

2,365,600

7,876,700

1,055,500

6,152,400

3,932,400

3,061,300

569,400

679,400

2,201,700

1,226,000

1,443,200

1,654,100

15,496,200

2,914,600

1,846,800

4,277,500

1,222,300

2,431,500

2,416,000

489,500

-

3,002,100

8,388,700

1,578,400

7,574,000

1,096,900

1,235,700

4,029,800

1,070,100

2,610,700

8,651,000

3,224,400

110,007,200

12,723,600

1,198,100

2,203,200

3,844,300

878,000

1,917,900

3,947,200

801,800

293,300

655,400

1,468,100

718,100

1,525,600

243,300

4,189,000

1,920,500

1,875,700

3,695,200

2,814,200

1,211,000

1,301,562

12,541,635

3,394,039

19,541,019

142,915

2,373,991

12,065,509

5,528,920

6,575,848

46,231,496

5,227,935

39,817,236

5,293,766

95,003,301

6,652,509

2,895,418

3,232,480

540,582

1,871,984

942,853

2,076,957

1,432,217

10,315,493

4,379,724

818,333

16,313,133

16,604,034

3,342,403

1,142,443

10,315,589

242,962

1,334,614

1,289,043

876,780

2,857,461

549,788

6,951,189

832,145

-

8,692

5,873,074

4,296,575

8,623,123

33,794,566

301,452

8,131,718

779,295

2,952,481

2,339,458

454,800

Volume

Volume

BUSINESS13Gulf Times


China to merge banking, insurance regulators; to create seven new ministries including natural resources; China restructures state institutions to make them more eff icient

ReutersBeijing

China is merging its banking and insurance regulators, giving new powers to policymaking

bodies such as the central bank and creating new ministries in the biggest government shake-up in years.

The revamp is a cornerstone of Pres-ident Xi Jinping’s agenda to put the leadership of the ruling Communist Party squarely at the heart of policy with Xi himself at the core of the party.

The economy and the party have become ever more intertwined since a party congress in October when Xi consolidated his grip on power, with party control deemed necessary to help push through reforms. On Sunday, presidential term limits were removed from the state constitution.

“Deepening the reform of the party and state institutions is an inevita-ble requirement for strengthening the long-term governance of the party,” Liu He, Xi’s top economic adviser and confi dante, wrote in a commentary in the offi cial People’s Daily.

“Strengthening the party’s overall leadership is the core issue,” he said.

The commentary suggested the par-ty will have greater infl uence and say in the government, or the State Council, which is headed by Premier Li Keqiang, some analysts say.

The long-awaited move to tighten oversight of China’s $42tn banking and insurance sectors comes as authorities seek more clout to crack down on risk-ier lending practices and reduce high corporate debt levels.

“The biggest news is still about the merger of the fi nancial regulators. The central bank will be in charge of the macro supervision side, while the merged regulators will be responsible for the more concrete part of things,” said Zhou Hao, senior emerging mar-kets economist at Commerzbank.

China will also form a national mar-kets supervision management bureau, according to a parliament document released yesterday.

The bureau will take on the pric-ing supervision and anti-monopoly law enforcement role from the state economic planner the National De-velopment and Reform Commission (NDRC), Ministry of Commerce and State Council.

The heads of the new merged regu-lator, ministries and departments will be announced before the close of the annual session of parliament on March 20. Many Xi allies are expected to get top appointments including the chair

of the National People’s Congress, or parliament, and National Supervisory Commission.

China is among the global economies seen as most vulnerable to a banking crisis, the bank for International Set-tlements (BIS) said at the weekend, though Beijing has maintained that debt risks are under control. Specu-lation that Beijing was considering creating a super fi nancial regulator had been rife since the Chinese stock market crash of 2015, blamed in part on poor inter-agency co-ordination.

The merger of the China banking Regulatory Commission (CBRC) and China Insurance Regulatory Com-mission (CIRC) is aimed at resolving existing problems such as unclear re-sponsibilities and cross-regulation, according to the parliament document.

CBRC, currently headed by Guo Shuqing, was carved out of the central bank in 2003, while CIRC was created in 1998.

The new merged entity will report directly to the State Council. The

function of making important laws and regulations of the CBRC and CIRC will be transferred to the People’s Bank of China (PBoC) as the central bank takes on a bigger role.

China’s fi nancial system has become increasingly tough to regulate as it grows rapidly in size and complexity, emerging as one of the world’s largest with fi nancial assets at nearly 470% of gross domestic product, according to the International Monetary Fund.

Companies registered as banks or insurers have started dabbling in other areas of fi nance with many off ering complex hybrid products and making non-traditional investments.

Many brokerages also structure wealth management products as a channel for hidden bank lending, in addition to the more traditional busi-ness of facilitating share trades and in-vestment banking services.

The securities regulator – the China Securities Regulatory Commission (CSRC) – will remain a separate entity.

“There is a valid argument to sepa-

rate regulation of equity markets from that of the banking system. You don’t want your monetary author-ity obsessed with supporting equity markets, because that can lead to bad macro policy,” said Andrew Polk, co-founding partner at research fi rm Triv-ium/China.

The government will create seven new ministries: natural resources; ecological environment; emergency management; agriculture and rural aff airs; culture and tourism; veterans aff airs; and the national health com-mission.

Within the departments being re-structured, some offi cials are con-cerned about the loss of some functions while others welcome the opportunity to gain new powers, people familiar with the situation said.

“Everyone seems to regard these de-partments as their own interests - giv-ing up a piece of yourself is very heart-wrenching but it’s a pleasure to take a piece of someone else,” said an offi cial at a ministry, declining to be named

due to the sensitivity of the matter.“Reforms are diffi cult.” The National

Council for Social Security fund led by former fi nance minister Lou Jiwei will be managed by the fi nance ministry, instead of the State Council.

The agriculture ministry, which will undergo its fi rst major change in its role and oversight since 2013, will come under a new ministry that will also be in charge of rural development.

“Amidst the reshuffl e, the NDRC appears to have many of its powers stripped away. This is potentially a nod towards the Party wrestling power away from the government,” said Jonas Short, an analyst with Everbright Sun Hung Kai.

Aside from losing its anti-trust in-vestigation and punishment powers, NDRC will also forfeit its rural plan-ning authority and oversight of China’s carbon emissions.

The proposed changes were dis-cussed in parliament yesterday, and are expected to be formally approved on Saturday.

China to merge regulators, create new ministries in major overhaul

Japan’s embattled fi nance minister preparing to skip G20 meetingReutersTokyo

Japanese Finance Minister Taro Aso was pre-paring to skip a Group of 20 fi nance leaders’ gathering in Buenos Aires next week, offi cials

said yesterday, with the minister fi ghting to sur-vive a cronyism scandal that has paralysed parlia-ment.

Premier Shinzo Abe and Aso, his close ally, are under pressure over the fi nance ministry’s ad-mission that it had altered records of a discounted sale of state-owned land to a school operator with ties to Abe’s wife.

The suspicion of a cover-up has rocked the ruling Liberal Democratic Party and could dash Abe’s hopes of winning a third term as party lead-er at a vote in September.

Losing the party leadership would ruin Abe’s chances of becoming Japan’s longest-serving premier.

Opposition lawmakers are calling for Aso to step down to take responsibility, and some ana-lysts believe his resignation could be inevitable.

When asked whether he may skip the G20 on March 19-20, Aso told reporters yesterday the de-cision will depend on the “present parliamentary situation”.

“It is important to fully cooperate with the on-going investigation.

To prevent a recurrence, we’ll continue to look into the matter and do the utmost to regain (pub-lic) confi dence,” Aso said, signalling his intention to ride out the storm.

The scandal has already caused a stalemate in parliament, with opposition parties threatening to boycott a debate on next fi scal year’s budget, potentially delaying reforms to boost long-term economic growth.

“It will probably be diffi cult for the fi nance minister to travel overseas at this time,” an LDP lawmaker said on condition of anonymity.

Other government and ruling party offi cials also said Aso was likely to stay home, and let Masatsugu Asakawa, Japan’s top fi nancial diplo-mat, attend the G20 meeting in his place.

The logjam in parliament could also leave two Bank of Japan deputy governor posts vacant when the incumbents’ terms end on March 19, as the appointments need lawmakers’ approval.

“The fi restorm surrounding the cover-up and the land sale will continue to inhibit the admin-istration’s ability to move its agenda through the Diet,” said Tobias Harris, vice president at Teneo Intelligence, a global advisory fi rm.

With global fears of a potential trade war set to be discussed at the G20 in Buenos Aires, Aso’s

absence would be further evidence of the hin-drance the scandal has become for Abe’s govern-ment.

On Monday, Aso blamed bureaucrats for the suspected cover-up.

But in a rare move, several ruling party heav-yweights have openly criticised Abe over the scandal and warned that politicians – not just bureaucrats – need to take responsibility.

A survey by the Sankei daily showed 71% of respondents said Aso should resign, while sup-port for Abe’s administration slid 6.0 points from February to 45%.

“Aso said he would not... resign to take re-sponsibility for the cover-up.

But this approach is unlikely to work for long,” said Harris of Teneo Intelligence.

Aso leads a powerful faction within the LDP, and if he is forced to resign and feels betrayed it could erode Abe’s chances of winning another term, analysts say.

While few analysts at this point are predicting the scandal could lead to Abe’s downfall, some say it could impair the prime minister’s focus on the pro-growth, refl ationist economic policies that have become a hallmark of his government.

Japan’s economy is enjoying its longest run of growth in 28 years, thanks to robust global de-mand and capital expenditure.

The scandal has weighed on markets, though the Nikkei share average managed to rise 0.66% yesterday. The yen held fi rm against the dollar, as the scandal raised doubt about Abe’s ability to pursue economic policies that have kept the yen weak.

“If Aso resigns, that would give Aso’s political faction a freehand, making the LDP leadership race in September extremely fl uid.

In the worst case, Abe may not make it for the third term,” said Hidenori Suezawa, analyst at SMBC Nikko Securities.

“If Abe goes, Abenomics will go back to square one.”

Chinese President Xi Jinping (left) talks with Premier Li Keqiang at the fourth plenary session of the National People’s Congress at the Great Hall of the People in Beijing yesterday. China is merging its banking and insurance regulators, giving new powers to policymaking bodies such as the central bank and creating new ministries in the biggest government shake-up in years.

Iran invites Pakistan to participate in Chahbahar project

InternewsIslamabad

Iranian Foreign Minister Javad

Zarif yesterday invited Pakistan

to participate in Chahbahar

seaport project and develop-

ment of its link with Gwadar

Port as he sought to allay con-

cerns here over Indian involve-

ment in the Iranian port.

We off ered to participate in

the China-Pakistan Economic

Corridor (CPEC). We have also

off ered Pakistan and China to

participate in Chahbahar,” Dr

Zarif, who is on a three-day visit

to Pakistan, said while deliver-

ing a lecture at the Institute of

Strategic Studies Islamabad

(ISSI) that had been held to

commemorate 70th anniversa-

ry of establishment of Pak-Iran

diplomatic relations.

Dr Zarif had earlier held

bilateral talks with his Pakistani

counterpart Khawaja Asif at the

Foreign Off ice and addressed

a trade conference. The visit-

ing foreign minister is being

accompanied by a large trade

delegation from Iran.

Pakistan had always been

concerned about Indian in-

volvement in Chahbahar port.

These concerns got amplified

after Iran last month signed

a lease agreement with India,

which would give operational

control of the port to the latter.

Emphasising that both

Gwadar and Chahbahar were

important projects for develop-

ment of deprived Eastern and

South-eastern Iran and South

Western Pakistan, he said

that both needed to be linked

through sea and land routes

for eff ecting their complemen-

tarities.

“We are taking measures to

do that and there is an open

invitation to Pakistan to partici-

pate in that,” the foreign min-

ister said. Zarif further clarified

that Chahbahar port project

was not meant to “encircle

Pakistan strangulate anybody”.

He twice said Iran would not

allow anybody to hurt Pakistan

from its territory much like

Pakistan would not allow its

soil to be used against Iran.

He likened Iran’s rela-

tions with India to Pakistan’s

ties with Saudi Arabia. “Our

relations with India, just like

Pakistan’s relations with Saudi

Arabia, are not against Pakistan

as we understand Pakistan’s

relations with Saudi Arabia are

not against Iran,” the crafty

and skilful diplomat said trying

to remind about his country’s

concerns.

Aso: Tough times ahead.

NAB under fire as Australia banking inquiry opensReutersSydney

The first day of a powerful judicial inquiry

into Australia’s scandal-ridden banking sector

yesterday heard National Australia Bank Ltd

issued almost $19bn in home loans under a

scheme involving falsified documents.

It was the first bombshell of what promises

to be an explosive year-long inquiry into the

financial sector and especially the “Big Four”

banks, which dominate the country’s A$1.7tn

($1.36tn) mortgage market.

Rowena Orr, a barrister assisting the Royal

Commission inquiry in Melbourne, said NAB

had derived more than A$24bn ($18.9bn) in

home loans from the scheme between 2013

and 2016, when the misconduct took place.

“The introducer programme was extremely

profitable for NAB during the period where

misconduct occurred,” Orr said, adding that

it had involved about 60 bankers and branch

managers, falsified loan documents, dishon-

est use of customers’ signatures and unsuit-

able loans to over 2,300 customers.

“The breadth of the misconduct, both in

number of bankers and loans and the number

of years over which the misconduct occurred,

warranted further explanation in these hear-

ings,” Orr said.

Orr said the misconduct at NAB went be-

yond the introducer programme and involved

instances of collusion, fraud and bribes which

were not reported to the regulator in a timely

manner. By November 2015, she said NAB

knew of “significant failings in its risk manage-

ment systems... across multiple branches and

people within very senior positions in those

branches”.

Even so, neither the bank’s board nor the

Australian Securities and Investment Com-

mission (ASIC), the corporate watchdog, had

been informed as required by law.

The first report to the board about the

incidents was in December 2015, while ASIC

was first notified in February 2016, senior NAB

executive Anthony John Waldron confirmed

under questioning. NAB has previously

admitted errors in the introducer programme,

under which the bank rewarded people who

referred customers for home loans.

It fired 20 employees in connection with

the scheme late last year, but it has not previ-

ously commented on the extent or specific

nature of the wrongdoing.

NAB chief executive Andrew Thorburn said

in a statement yesterday morning, released

shortly before the Royal Commission opened,

that the problems were “regrettable and

unacceptable”.

“They should not have happened in the

first place, and they show that we haven’t al-

ways done right by our customers or treated

the community with respect,” he said.

The inquiry follows years of scandals in

Australia’s financial sector including poor

financial advice, interest-rate rigging, and

accusations of money-laundering.

The centre-right government initially op-

posed the inquiry as a waste of money, but

eventually agreed to establish it amid intense

public pressure and a steady drip of new

disclosures of wrongdoing.

Selling tactics on mortgages, car loans and

credit cards are the first focus of the inquiry,

whose final recommendations could lead

to criminal or civil prosecutions as well as

greater regulation on the financial sector.

The commission also will examine the

wealth management and financial advice

industries. Commonwealth Bank of Australia

executives will be probed later this week

about fraudulent broker arrangements and

loan applications.

Orr criticised CBA, Australia’s biggest

company, for flooding the commission with

reams of “meaningless” spreadsheets instead

of specific documentation of misconduct, as

requested.

German energy giants place opposing bets in $27bn dealBloombergLondon

Germany’s largest energy compa-nies set out opposing views on how to profi t from selling elec-

tricity in their €22bn ($27bn) reshuf-fl ing of the industry.

In the second major restructuring of the utility business in as many years, EON SE and RWE AG are struggling to cope with Chancellor Angela Merkel’s drive to slash fossil fuel pollution and spur clean power generation that cost them billions in writedowns.

By carving up the assets of the re-newables developer Innogy SE, RWE will focus on generating and trading power while EON will build up its grid and its business to supply 50mn cus-tomers across Europe.

The moves detailed yesterday in Es-sen where the three companies are based give investors clear choices in negotiating an upheaval in the industry brought on by the green revolution and the rapid advance of energy technolo-gies.

“They have two diff erent profi les,” said Juan Camilo Rodriguez, equities analyst at AlphaValue SAS in Paris. “EON will attract more conservative investors looking for yield and stable earnings like pension funds.

RWE is a more volatile option that depends on power price expectations, security of supply, and capacity con-straints.”

Investors embraced all the compa-nies involved in the deal, driving up the shares of each since word of the agree-ment was fi rst reported by Bloomberg News on March 10.

EON surged more than 6% in Frank-furt trading yesterday, continuing the biggest two-day increase in more than a year.

RWE was up almost 3% after a 14% gain on Monday, and Innogy was little changed just below the €40-a-share off er price.

The breakneck speed of change across the utility industry stems from a plunge in the cost of wind turbines and solar panels.

That emboldened Merkel’s govern-ment to work towards closing all of Germany’s coal and nuclear plants – the majority of RWE’s current power generation fl eet.

With cheap renewables fl ooding the grid, wholesale power prices plunged and forced the early closure of more power plants.

RWE’s bet is that enough of those power plants will shut in the coming years to stabilise the cost of electricity – and that even if prices remain volatile

RWE is well placed to negotiate the tur-moil through its trading operation.

“EON seems to expect Europe’s fundamental oversupply in power will continue,” said Meredith Annex, sen-ior associate at Bloomberg New En-ergy Finance. “In this case, getting out of upstream areas like renewables, and increasing retail exposure makes sense.

Yet RWE expects generation markets will tighten.

Investors can now choose their expo-sure to each energy future.”

EON chief executive offi cer Johannes Teyssen will focus solely on the down-stream aspect of the business – grid networks and selling power directly to consumers.

It will own and operate networks and retail businesses.

It joins companies such as Centrica

Plc in the UK in forsaking renewable generation.

“If we focus on the smart grids and the customers we can off er better prod-uct,” Teyssen said in a Bloomberg Tel-evision interview. “We don’t build big power stations.

We only do things that directly mat-ter for the customers. We enable the smart industrial sites of tomorrow. We are the enabler of the true energy fu-ture.”

EON believes it will profi t from “en-ergy mega trends” such as adding dig-ital technology to power networks, the rise of electric cars and eff orts by com-panies to reduce their own emissions.

It already spun off its traditional power generation business into Uniper SE two years ago.

Teyssen said the Innogy deal takes

EON “a step further.” At RWE, CEO Rolf Martin Schmitz is building up his power- generation capacity, which at 40 gigawatts makes the company Ger-many’s biggest producer.

To date, RWE is most reliant on nu-clear and coal plants, with lignite, which is the the most polluting form of fossil fuel, making the biggest chunk.

The Innogy deal brings RWE 8 giga-watts of renewable power plants and another 1.5 gigawatts of clean energy under construction, exposing it to the quickest growing forms of generation.

“In a nutshell, we will turn RWE into one of Europe’s leading power produc-ers,” Schmitz said at a joint press con-ference with EON. “Renewables pro-vide huge opportunities for growth.

Many countries opt for the expan-sion of renewable energy in order to

achieve climate protection goals.” The mix will allow RWE’s fl eet of fossil fuel generation to provide back-up when the wind isn’t blowing and the sun isn’t shining.

“RWE will continue to be the safety net of the energy transition,” Schmitz said. “Our fl exible generation fl eet provides stability for an energy system that has to digest an increasing amount of volatile feed-ins of wind and solar power.”

In an interview with Bloomberg TV, RWE’s chief fi nancial offi cer Markus Krebber said the moves are “creating here two new leading European energy companies which will in future focus on their core activities – EON on networks and distribution business, and RWE on power generation, trading and security of supply.”

VW secures $25bn battery supplies in electric car pushBloombergBerlin

Volkswagen AG secured €20bn ($25bn) in battery supplies to underpin an ag-gressive push into electric cars in the

coming years, putting pressure on Tesla Inc as it struggles with production issues for the mainstream Model 3.

The world’s largest carmaker will equip 16 factories to produce electric vehicles by the end of 2022, compared with three currently, Volkswagen said yesterday in Berlin. The German manufacturer’s plans to produce as many as 3mn electric cars a year by 2025 is backstopped by deals with suppliers includ-ing Samsung SDI Co, LG Chem Ltd and Con-temporary Amperex Technology Ltd for bat-teries in Europe and China.

With the powerpack deliveries secured for its two biggest markets, a deal for North America will follow shortly, Volkswagen said. In total, the Wolfsburg-based automaker has said it plans to purchase about €50bn in bat-teries as part of its electric-car push, which includes three new models in 2018 with doz-ens more following.

As of next year, the 12-brand group will roll out a new battery-powered model “virtually every month,” chief executive offi cer Mat-thias Mueller said at the company’s annual press conference. “This is how we intend to off er the largest fl eet of electric vehicles in the world.”

Volkswagen shares were trading up 0.4% to €159.14 as of 12:50pm in Frankfurt, nar-rowing the stock’s drop this year to 4.4%.

Pressure has intensifi ed on Volkswagen to overhaul its lineup. Its diesel-cheating scandal, which erupted in September 2015, sparked a backlash over the technology, in-cluding potential urban driving bans. Diesel is key to eff orts to meet tighter environmen-tal targets because of its fuel effi ciency, even though it emits smog-causing nitrogen ox-

ides. Volkswagen reaffi rmed its backing for the technology with Mueller calling it “part of the solution,” even as Toyota Motor Corp pulls diesel cars from its lineup in Europe, the main market for the vehicles.

As part of Volkswagen’s €20bn push into electric cars, it’s setting up a standalone sub-brand for battery-powered vehicles. The fi rst model with the I.D. nameplate will be the Neo hatchback that goes on sale in 2020. The Audi luxury marque is set to begin deliveries later this year of the all-electric E-Tron SUV.

Even with the battery-supply deals, one of the largest purchasing tenders in the auto industry, Volkswagen’s power-supply issues are still far from over. The company, which has struggled to secure sources of cobalt, a critical component for modern batteries, said that it’s working on ways to reduce the

amount of the element needed for its electric cars. Producing the powerpacks itself is not in the cards.

“This is not one of our core competencies,” said Mueller, who has faced pressure from employee representatives to invest in bat-tery-cell production. “Others can do it better than we can.”

Chinese manufacturer CATL, which Mu-eller confi rmed today as one of Volkswagen’s future battery providers, is considering a site in Europe for its fi rst overseas plant, chair-man Zeng Yuqun said a week ago.

Even with its push to ramp up electric-car production and avoid penalties from tighter environmental regulations, Volkswagen plans to rein in expenditures. Development spending declined 3.9% to €13.1bn in 2017, equivalent to 6.7% of sales.

Finland boostsinfl uence on Nokia with $1bn investmentReutersHelsinki

Finland’s state invest-ment arm has spent about €844mn ($1.04bn) on

building a 3.3% stake in Nokia, strengthening national infl u-ence over the telecom network gear maker.

Nokia ruled the global mobile phone market a decade ago and the collapse of that business was a major cause of a decade of eco-nomic stagnation from which Finland is only just recovering.

Nokia and Microsoft, which bought the Finnish company’s phone business in 2014, have cut thousands of jobs in the Nordic country. Now focused on the tel-ecom network industry, Nokia employs 6,300 people in Finland in a global workforce of around 102,800. “We believe that this will be a good investment. One must remember that Nokia is Finland’s largest company and its Finnish ownership has been rather thin,” Solidium CEO Antti Makinen told Reuters.

Solidium, the government in-vestment arm, built the stake by buying shares on the market over the early months of 2018.

It trimmed its stake in Swedish telecoms company Telia, steel fi rm SSAB and holding company Sampo in the past weeks to fi -nance the investment in Nokia.

Makinen said Solidium would not seek a seat on Nokia’s board at a shareholder meeting sched-uled for May but that was an op-tion it could look at in the future.

Economy minister Mika Lintila said the Nokia investment plan was purely down to the board of Solidium. “For Finland, Nokia is of course an interesting company, and its ownership has been ex-tremely dispersed,” Lintila said.

“Solidium is now a signifi cant owner and it will be heard in the future when board seats are be-ing discussed,” he added. The company declined to comment on the news. Asked if Solidium was looking to increase its stake in Nokia, Makinen said that he was happy with the current stake and would not speculate on fu-ture investments.

BUSINESS


Johannes Teyssen, chief executive off icer of EON (left) and Rolf Martin Schmitz, chief executive off icer of RWE, exchange pens with their respective company logosfollowing a news conference after unveiling plans for an asset swap deal between the two German utilities in Essen, Germany yesterday.

Mueller: Facing pressure from employee representatives to invest in battery-cell production.

Greek regulator probes Piraeusex-head for laundering breachesBloombergAthens

Piraeus Bank SA property deals involving manag-

ers including former chairman Michalis Sallas may

have cost the bank €6.4mn ($7.9mn), according to a

report by Greece’s Anti Money-laundering Authority.

In the report, a copy of which was reviewed by

Bloomberg, the regulator said it looked at the bank’s

sale of five properties to a Cypriot firm in 2016 and

found that “there are strong indications that Sallas

and other members of Piraeus management who

participated in the deals are guilty of malfeasance.”

Sallas, who led the firm for a quarter of a century

until he stepped down in July 2016, disputes the

report’s findings and denies any wrongdoing.

The properties – which had been sold in 2003

to companies “linked to Sallas or members of his

family” and then repurchased in 2006 by Piraeus

– were off loaded to the Cypriot company in 2016

using loans from the bank, the report said. The

transactions, with funds going through a series of

intermediate companies, showed the lender was

“breaching prudent banking methods,” resulting in a

financial hit for the bank, the regulator said.

As Greek banks struggle to cut bad loans and

work to avoid having to raise more capital, some

practices of the past that brought them to the brink

are being scrutinised by various government watch-

dogs. At the end of September 2017, Greek banks

had more than €99bn ($121bn) of non-performance

exposures, or more than 50% of the total – the high-

est in the euro area. They need to improve govern-

ance, Daniele Nouy, chair of the European Central

Bank’s supervisory arm, said on March 1.

The anti-money-laundering body’s Piraeus report

dated November 2 is the third such study into the

bank’s property transactions. It follows an October

2016 report by the financial crimes authority that

raised questions about the sale and repurchase of

the properties in 2006. That report was used by a

Greek prosecutor to file charges against Sallas and

six other executives in April.

The property sales also featured in a Bank of

Greece audit report. The central bank in September

confirmed it was investigating suspected irregulari-

ties at Piraeus Bank relating to writedowns of bad

loans and breaches of capital controls, without

providing details. The anti-money-laundering body’s

report, which focuses on the sale of the properties in

2016 to the Cypriot firm Copiouso Holdings Ltd, has

been sent to anti-corruption prosecutors, who are still

investigating the deals. They couldn’t be reached for

comment on the current status of the probe.

Sallas denies any wrongdoing. In response to

questions from Bloomberg, Sallas’s lawyer said in a

letter that the allegations “repeat wrong assump-

tions made by the Bank of Greece’s audit report

and contain inaccuracies and mistakes.” He didn’t

provide details on these inaccuracies.

In April, in response to the prosecutor’s charges,

Sallas said in a statement: “I see this as an eff ort to

target me, which I am certain will not bear fruits

as there has been no damage to the bank. That’s

because the bank sold back those properties in 2016

at the same price it had bought them in 2006.”

Data compiled by the Bank of Greece show that

prices of commercial properties fell by 30% during

that period. The anti-money-laundering authority

says it traced the money Copiouso used to finance

the purchase of the properties.

According to the authority, in August 2016,

Piraeus Bank disbursed to “Eolikee Hellas,” a wind-

farm company, €6mn as part of a €16mn loan. Later

that month, Eolikee transferred the €6mn to another

company called “Helios,” a sub-contractor for the

wind-farm project, the report said.

On September 2, 2016, Helios transferred

€2.48mn to a Cypriot company called “Deomax.”

Three days later, Deomax transferred the sum as a

convertible loan to Copiouso, which used it to pay to

Piraeus Bank the first tranche of the deal for the five

properties, according to the report. Through a chain

of transactions, a loan, initially meant for a wind-

park investment, ended up financing the acquisition

of these properties, the report said.

“A sequence of unusual accounting transactions

was recorded, carrying over from one company to

another and after a chain of consecutive account-

ing transfers was returned to its fund without the

purchaser of the real estate disbursing the money

owed, ” it said.

According to the regulator’s report, “there are

serious indications” of money laundering by the real

beneficiaries of Copiouso Holdings, Deomax, Eolikee

Hellas and Helios, and by Sallas and George Logo-

thetis, the chief executive off icer of Libra Group, a

family-owned group based in New York that owns

shares in Piraeus.

BUSINESS15Gulf Times


Trump halts Broadcom takeover of QualcommReutersWashington

US President Donald Trump on Monday blocked microchip maker Broadcom Ltd’s proposed takeo-

ver of Qualcomm Inc on national security grounds, ending what would have been the technology industry’s biggest deal ever amid concerns that it would give China the upper hand in mobile commu-nications.

The presidential order refl ected a cal-culation that the United States’ lead in creating technology and setting stand-ards for the next generation of mobile cell phone communications would be lost to China if Singapore-based Broadcom took over San Diego-based Qualcomm, ac-cording to a White House offi cial.

Qualcomm has emerged as one of the biggest competitors to China’s Huawei Technologies Co in the sector, making Qualcomm a prized asset.

Qualcomm had earlier rebuff ed Broad-com’s $117bn bid, which was under inves-tigation by the US Committee on Foreign Investment in the United States (CFIUS), a multi-agency panel led by the Treasury Department that reviews the national se-curity implications of acquisitions of US corporations by foreign companies.

In a letter on March 5, CFIUS said it was investigating whether Broadcom would starve Qualcomm of research dollars that would allow it to compete and also cited the risk of Broadcom’s relationship with “third party foreign entities.”

While it did not identify those entities, the letter repeatedly described Qualcomm as the leading company in so-called 5G technology development and standard setting. “A shift to Chinese dominance in 5G would have substantial negative national security consequences for the United States,” CFIUS said. “While the United States remains dominant in the standards-setting space currently, China would likely compete robustly to fi ll any void left by Qualcomm as a result of this hostile takeover.”

A White House offi cial on Monday con-fi rmed that the national security concerns related to the risks of Broadcom’s rela-tionship with third party foreign entities.

A source familiar with CFIUS’ thinking had said that, if the deal was completed, the US military was concerned that with-in 10 years, “there would essentially be a

dominant player in all of these technolo-gies and that’s essentially Huawei, and then the American carriers would have no choice. They would just have to buy Hua-wei (equipment).”

Huawei has been forging closer com-mercial ties with big telecom operators across Europe and Asia, putting it in prime position to lead the global race for 5G networks despite US concerns.

Huawei has a dominant position in China, which is set to become the world’s biggest 5G market by far, and has also made inroads in the rest of world to com-pete with rivals such as Ericsson and No-kia in several lucrative markets, including countries that are longstanding US allies.

Qualcomm is also a major player in 5G, estimated to have 15% of 5G-essential patents in the world, compared with 11% for Nokia and 10% for all of China, ac-cording to a Jeff eries report citing LexIn-nova research.

Many smartphone makers are count-ing on Qualcomm to deliver its 5G chipset on time in late 2018 to roll out their 5G phones in 2019.

Shares of Broadcom rose less than 1.0% to $264.10 in after-hours trade while

Qualcomm fell 4.3% to $60.14. Broad-com said it was reviewing the presidential order.”Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns,” it said in a statement in response to the de-cision.

Qualcomm, which had delayed its annu-al shareholder meeting during the CFIUS review, set the new date for March 23.

The move by Trump to kill the deal comes only months after the US president himself stood next to Broadcom chief ex-ecutive Hock Tan at the White House, an-nouncing the company’s decision to move its headquarters to the United States and calling it “one of the really great, great companies.”

This is the fi fth time a US president has blocked a deal based on CFIUS ob-jections and the second deal Trump has stopped since assuming offi ce slightly over a year ago. “The proposed takeover of Qualcomm by the Purchaser (Broad-com) is prohibited, and any substantially equivalent merger, acquisition, or takeo-ver, whether eff ected directly or indi-rectly, is also prohibited,” the presidential order released on Monday said. The order

cited “credible evidence” that led Trump to believe that Broadcom’s taking con-trol of Qualcomm “might take action that threatens to impair the national security of the United States.”

Broadcom had struggled to complete its proposed deal to buy Qualcomm, which had cited several concerns including the price off ered and potential antitrust hurdles.

The presidential decision to block the deal cannot be appealed.

However, it is not clear what rules Broadcom would have to follow if it goes ahead with announced plans to move its headquarters to the United States.

Companies may challenge CFIUS’s ju-risdiction in court but may not challenge the inter-agency panel’s national security fi ndings, a CFIUS expert said.

If Broadcom decides to press on with its eff ort to buy Qualcomm, it would be wise to drop the matter for now while the compa-ny quietly wraps up its move to the United States, a second CFIUS expert said.

Once the move is done, Broadcom could argue that CFIUS does not have ju-risdiction, the second expert said.

Both spoke privately to protect busi-ness relationships.

Bloomberg QuickTake Q&A

BloombergSingapore

US President Donald Trump’s unprecedented move to block

Broadcom Ltd’s hostile takeover bid for Qualcomm Inc reflects

growing concern about China’s rising economic prowess.

At the heart of that decision to scupper what would’ve been the

largest technology acquisition in history is Huawei Technolo-

gies Co, the world’s third-largest maker of smartphones and, by

some reckonings, the biggest producer of telecommunications

equipment.

Trump was acting on the recommendations of the Committee

on Foreign Investment in the US, which vets deals for national

security risks. The agency suggested that the deal could cur-

tail US investments in chip and wireless technologies, handing

leadership to a relatively opaque Chinese company that’s

funnelling billions into developing next-generation wireless

systems.

1. What is Huawei?The Chinese company has in three decades grown from an

electronics reseller into one of the world’s most important com-

munications companies, with leading positions in telecoms gear,

smartphones, cloud computing and cybersecurity. With 2017

sales of about 600bn yuan ($95bn), Huawei generates more

revenue than Home Depot or Boeing — and twice as much as

Broadcom and Qualcomm combined.

2. What role did Huawei have in the Broadcom/Qualcomm deal?

None. Huawei — never an aggressive acquirer — had no direct

role in the deal negotiations. But it loomed over the talks because

of its growing influence.

3. So why the worry about Huawei?CFIUS is concerned that Broadcom would cut back on R&D

funding at Qualcomm, strengthening Huawei at a time when

rivals from Ericsson to Nokia are grappling with weak telecoms

spending. That theoretically gives Chinese companies such as

Huawei and closest rival ZTE Corp the upper hand in steering the

direction of wireless communications development, thereby — so

the argument goes — jeopardising US national security. CFIUS’s

concerns over the deal are said also to stem from Broadcom’s ties

to Huawei, which was blacklisted in 2012 along with ZTE when

the US House Intelligence Committee cited security risks posed

by the companies.

4. What’s the link between Broadcom and Huawei?Huawei uses Broadcom’s chips in networking products such as

switches that direct data traff ic between connected computers.

Qualcomm also works with Huawei. The two said on February

21 they completed testing on technology that advances faster

5G mobile services. Under one envisioned scenario, wireless

carriers may be forced to turn to Huawei or other Chinese

companies for cutting-edge telecoms gear. That’s unaccept-

able for a US government that, concerned about the security

of Huawei’s gear, has already blocked the sale of the Chinese

company’s smartphones on American carriers’ networks.

5. Are there broader implications for Chinese companies?The president’s order is the latest sign of Trump’s tough stance on

foreign takeovers of US technology, and dovetails with a broader

move to contain China on trade and deal-making. Government

off icials and industry executives have long harboured suspicions

that the closely held Huawei works primarily for Chinese govern-

ment interests, especially as it sells increasing amounts of critical

telecoms infrastructure to Europe, Africa and the Middle East.

6. What exactly is Huawei’s connection with Beijing?Founded in 1987 by Ren Zhengfei, a former People’s Liberation

Army engineer, Huawei has always enjoyed favourable treatment

from a government that — like the US — remains wary of employ-

ing too much foreign technology for vital communications. In a

report released by the US Permanent Select Committee on Intel-

ligence report in 2012, Huawei and ZTE were tagged as potential

threats to security interests. The report questioned Huawei’s ties

with the Communist Party and — after multiple interviews includ-

ing a sit-down with Ren himself — it concluded that Huawei failed

to properly explain that relationship. Huawei has repeatedly

denied those accusations and says it’s owned by Ren and its own

employees. Chinese government policies enacted in the past

year seen as favouring local providers have only intensified sus-

picion. It remains unclear what support — financial or political —

Huawei gets from Beijing, if any. In recent years, the company has

begun releasing results, spent more on marketing and engaged

foreign media in an eff ort to boost transparency.

7. Will Trump’s move give the US a lead in 5G?Nothing’s for certain. Along with ZTE, Huawei began ploughing

billions of dollars into the field from 2009 and is now among

China’s top filers of patents both internationally and domestically,

covering everything from data transmission to network security.

Huawei, which may own a 10th of essential patents on 5G, is

angling for full-scale commercialisation of 5G networks by 2020.

Its rise coincided with the decline of competitors like Ericsson

and Nokia, often undercut by Huawei and ZTE even as global

telecoms rollouts slowed. Huawei is now not just the leading

provider in the world’s largest telecommunications equipment,

but also a dominant player across the planet. In a direct threat to

Qualcomm, Huawei’s now designing its own chips. The Chinese

company’s Kirin series mobile processors, made via subsidi-

ary HiSilicon, compete with the Qualcomm Snapdragon chip

employed extensive by Samsung Electronics Co and other global

smartphone names.

8. What about the longer term?China aims to lead the world in 5G — a next-generation standard

that will enable richer and faster video and open a whole new

playground for mobile apps. In an interview with China Central

Television last week, the country’s minister for information

technology said China is already preparing for the development

of 6G technologies.

How China’s Huawei killed $117bn Broadcom deal

The Broadcom logo is displayed outside the company’s headquarters in Singapore. “Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns,” it said in a statement in response to Trump’s decision.

Trump tariffs not such a big deal for US growth, poll showsBloombergAtlanta

Trade wars are bad but President Donald

Trump’s steel and aluminium tariff s

won’t have much direct impact on the US

economy unless the situation escalates,

according to a new survey conducted by

Bloomberg News.

Roughly two-thirds of the 35 economists

polled by Bloomberg expect the tariff s

that Trump signed last week would cause

a small decrease in jobs and a small drop

in US economic growth, which is enjoying

its third-longest expansion on record. One

economist predicted a small gain in jobs.

No one thought there would be a large

impact in either direction.

“By themselves, the tariff s on steel and

aluminium will likely have a modest

impact on growth and inflation,” said

Scott Brown, chief economist at Raymond

James Financial in St Petersburg, Florida.

“The bigger concerns are retaliatory

tariff s against US exports, the possibility

of a broader trade war, higher costs, and

greater uncertainty for global business

investment.”

Trump on March 8 slapped tariff s of 25%

on imported steel and 10% on aluminium,

but immediately excluded Canada and

Mexico — so long as they reach a new

North American Free Trade agreement

that passes muster — and said other

nations could petition for an exclusion.

That’s set off a race for US allies to plead

for special treatment, while China has

warned of “strong” measures to protect

its interests.

Morgan Stanley estimated the impact of

the tariff s as no more than 0.3 percentage

point of US gross domestic product, writ-

ing in a report that they were “unlikely to

derail the global macro outlook.” Barclays

Plc has estimated as much as a 0.2 per-

centage point impact.

Trump has also tweeted a trade war is eas-

ily winnable. Most economists see losses

to all sides.

“These tariff s are a really bad idea,” said

James Smith, chief economist at Parsec

Financial Management Inc in Asheville,

North Carolina. “It will cost consumers mil-

lions of dollars for each job saved in alu-

minium or steel production — a genuinely

stupid and counterproductive policy.”

When President George W Bush raised

steel tariff s in 2002, US gross domestic

product declined by $30.4mn, according

to the US International Trade Commission.

The US lost about 200,000 jobs, about

13,000 of which were in raw steel-making,

by one estimate. Eighty percent of the

economists predicted a small increase in

inflation from the trade policy, while the

remainder saw no eff ect.

While there will be initially “higher import

prices and substitution toward higher

domestic prices,” that will be followed by

disinflationary eff ects when tariff s dimin-

ish demand, said Derek Holt, an economist

at Scotiabank in Toronto.

More problematic than the US tariff s is

the likelihood that other countries will

respond in kind. The European Union has

threatened targeted retaliation on iconic

US brands, including Harley-Davidson Inc

motorcycles, Levi Strauss & Co jeans and

bourbon whiskey, if the bloc fails to win an

exemption.

“We expect the impact on US growth and

inflation to be fairly limited,” said Mikael

Olai Milhoj, a senior analyst at Danske

Bank in Copenhagen. “There is a risk that

we are too optimistic and that there will be

a bigger trade war, which would be nega-

tive for the global economy.”

A full-blown trade war could cost the

global economy $470bn, an analysis by

Bloomberg Economics found. The profes-

sion generally views trade as helpful to

both partners and the history or tit-for-tat

trade tariff s as a good reason to avoid

making the same mistake again.

“What happens to global growth if there’s

a trade war? Based on Bloomberg Eco-

nomics’ estimates, if the US raises import

costs by 10% and the rest of the world

retaliates, raising tariff s on US exports, the

cost by 2020 would be 0.5% of global GDP.

To put that into perspective, that’s about

$470bn — roughly the size of Thailand’s

output,” said Jamie Murray and Tom Orlik,

Bloomberg Economics.

The Smoot-Hawley Act, which raised US

tariffs on thousands of imported goods

when it was passed by Congress in 1930,

is often blamed for deepening the Great

Depression. Yet most trade spats end up

without that kind of damage, and most

in the survey were hopeful.

The US economy, boosted by a $1.5tn tax

cut that Trump signed last year, is on a

solid footing and the unemployment rate

of 4.1% is the lowest since 2000.

“The negative impact of the tariffs —

which are a tax hike on consumers

and users of steel and aluminium — is

more than offset by the benefits of

the more sweeping tax reform,” said

Brian Wesbury at First Trust Advisors in

Wheaton, Illinois. “So, the economy is set

to accelerate and no one will be able to

tell how much more it could have grown

without the tariffs.”

IMF’s Lagarde saysco-operationneeded to keepcrypto-assets safeReutersWashington

Governments and cen-tral banks need to col-laborate on developing

regulations for crypto-assets to prevent them from becoming a new vehicle for money laun-dering and terrorist fi nancing, International Monetary Fund managing director Christine Lagarde said yesterday.

In a blog posting ahead of a meeting of Group of 20 fi nance leaders next week, Lagarde said the technology behind crypto-currencies, including blockchain, off er exciting ad-vancements that could power fi nancial inclusion.

New, low-cost payment methods could empower mil-lions of people in low-income countries who lack traditional bank accounts.

“Before we get there, how-ever, we should take a step back and understand the peril that comes along with the promise,” Lagarde said, adding that their appeal also makes them dan-gerous.

“These digital off erings are typically built in a decentral-ised way and without the need for a central bank.

This gives crypto-asset transactions an element of an-onymity, much like cash trans-actions,” she said. “The result is a potentially major new vehicle for money laundering and the fi nancing of terrorism.”

Before the July 2017 shut-down of dark web marketplace AlphaBay, some $1bn worth of illegal drugs, hacking tools, fi rearms and toxic chemicals were sold through crypto-as-sets on the exchange, she said.

Some early eff orts are en-couraging, including those led by the Financial Stability Board to study fi ntech advancements and by the Financial Action Task Force to provide guidance on electronic money launder-ing.

She said the IMF was focused on encouraging countries to develop policies that ensure fi nancial integrity and protect consumers in crypto-assets in much the same manner as it has done for the traditional fi -nancial sector.

She also said technology be-hind crypto assets can be used to “fi ght fi re with fi re,” includ-ing distributed ledger technol-ogy that speed up information sharing between market par-ticipants and regulators.

This can be used to create registries of standard, verifi ed customer information and help fi ght cross-border tax evasion, she said.

Regulators can also use bio-metrics, artifi cial intelligence and cryptography to enhance digital security and identify suspicious transactions “in close to real time”, Lagarde added.

Applying the same securities rules to crypto assets as stand-ard securities also can help in-crease transparency and alert buyers to potential risks.

“To be truly eff ective, all these eff orts require close in-ternational cooperation.

Since crypto-assets know no borders, the framework to regulate them must be global as well,” Lagarde said.

The G20 major economies will explore regulation of cryp-to-assets this year, including at a meeting next week in Buenos Aires for G20 fi nance ministers and central bank governors.

Lagarde: Take a step back.

BUSINESSWednesday, March 14, 2018

GULF TIMES

Ooredoo, one of the region’s ICT pro-viders, announced yesterday that “‘in-trapreneurship’ is a game-changing

concept” to transform Qatar’s employees into creative problem-solvers that will enable new levels of business competitiveness and innova-tion.

During its fourth and fi nal master class, ‘Intrapreneurship and Driving Corporate In-novation’, Ooredoo and the Qatar Business In-cubation Centre (QBIC) explained the business benefi ts of intrapreneurship.

‘Intrapreneurship’, a relatively new term in the business world, sees organisations foster-ing an entrepreneurial spirit among their own employees to fi nd new, creative, and innova-tive solutions to business challenges.

Ooredoo COO Yousuf Abdulla al-Kubaisi said: “In the emerging digital economy, Qa-tar’s organisations need to break down inter-nal silos to foster collaboration and activate diff erent skill sets to succeed and drive cor-porate innovation. Ooredoo is one of Qatar’s pioneering organisations in the fi eld of intra-preneurship, with our senior leadership teams cultivating teams that are risk-takers and problem-solvers.”

The master class was part of the Digital and Beyond joint venture between Ooredoo and QBIC. These master classes were designed to support Qatar’s community of innovators and entrepreneurs.

QBIC CEO Aysha al-Mudahka said: “In-trapreneurs can enhance productivity, dis-cover new revenue streams, and become the next generation of leaders and innovators. Qatar’s organisations that want to foster in-trapreneurship should allow their employees to spend a portion of their time on innovative projects. Intrapreneurship is a virtuous cycle, in which intrapreneurs attract fellow like-minded digital disruptors.”

Intrapreneurship transforms Qatar employees into catalysts of business innovation: Ooredoo

An expert discussing ‘intrapreneurship’ to participants of the master class.

Qatar first country to hold int’l arbitration conference to mark NYConvention

Qatar Chamber’s Qatar Inter-

national Centre for Concilia-

tion and Arbitration (Qicca)

will organise the ‘3rd Interna-

tional Arbitration Conference’

on March 20 under the theme

‘Arbitration between Qatari

Law & International Conven-

tions’.

Qicca board member Dr

Sheikh Thani bin Ali bin Saud

al-Thani said Qatar “is the first

country” to host an extensive

conference that marks the

60th anniversary of the issu-

ance of the Convention on the

Recognition and Enforcement

of Foreign Arbitral Awards

(New York, 1958) — the centre-

piece of treaties on arbitration

in the world.

Sheikh Thani said the con-

vention enables arbitration

awards issued in any country

to be executed in another

country. He noted that the

conference comes after a year

of issuing the Qatar Arbitra-

tion Law.

He said the event will gather

30 prominent speakers, senior

world arbitration figures, di-

rectors of arbitration centres,

consultants, and lawyers.

The discussions will highlight

many topics, including the

Qatari Arbitration Law and its

impact of business environ-

ment, as well as the new trends

in rules of national and inter-

national arbitration centres

and mechanisms of disputes

settlement in mega projects’

contracts.

It also will discuss arbitration

in maritime disputes and the

role of expertise in arbitration.

The conference sessions will

review key arbitration issues,

said Sheikh Thani, adding that

he hopes that the recom-

mendations announced at the

conclusion of the event would

uphold arbitration worldwide.

“It places Qatar in the vanguard

of countries encouraging arbitra-

tion through establishing flexible

rules, which meet the needs of all

arbitration parties and manage

the arbitration process in eff ec-

tive and neutral manner.

“These rules give equal oppor-

tunities for all arbitration par-

ties to submit supporting docu-

ments and enable reaching

swift settlement for disputes in

a short period of less than a few

months,” he said.

Sheikh Thani said arbitra-

tion is a primary alternative

to the ordinary judiciary. He

stressed that the conference

provides a special platform

for attendees to be familiar

with the latest developments

in the world of arbitration and

its applications in the fields

of investment, trade, real

estate, construction, energy,

finance, industry, and marine

transport, among others.

QSE continues to remain bullish for second straight sessionBy Santhosh V PerumalBusiness Reporter

The Qatar Stock Exchange con-tinued to remain bullish for the second straight session and its

key index inched near 8,900 levels, mainly on the back of strong buying in the industrials, banking and insurance counters.

Foreign institutions were increas-ingly bullish as the 20-stock Qatar In-dex shot up another 1.6% to 8,801.75 points. The country’s fi rst exchange traded fund, QETF, saw 1.77% gains.

Domestic funds’ substantially weak-ened net selling also helped sustain the bullish momentum on the market,

which is up 3.27% year-to-date.Islamic stocks gained much slower

than the main index on the bourse, which, however, saw local retail in-vestors turn bearish and there was in-creased net selling by non-Qatari indi-viduals.

Large cap equities witnessed faster gains in the market, whose capitali-sation expanded 2.47% or QR12bn to QR480.46bn.

Trade turnover and volumes were on the decline on the bourse, where indus-trials and banking sectors together ac-counted for more than 65% of the total volume.

The Total Return Index grew 1.6% to 15,331.99 points, All Share Index by 1.71% to 2,539.55 points and Al Rayan

Islamic Index by 0.19% to 3,576.57 points.

The industrials index grew 2.88%, banks and fi nancial services (2.8%), insurance (1.8%), consumer goods (1.15%) and telecom (1.07%); whereas realty and transport declined 1.49% and 1.37% respectively.

As much as 55% of the stocks extend-ed gains with other major movers being QNB, Industries Qatar, Zad Holding, Qatar Electricity and Water, Qatar Na-tional Cement, Qatar Insurance, Oore-doo, Mesaieed Petrochemical Holding, Doha Bank and Qatari German Com-pany for Medical Devices.

Nevertheless, Qatar Islamic Bank, Masraf Al Rayan, Vodafone Qatar, Mi-laha, Ezdan and Alijarah Holding were

among the losers. Non-Qatari in-stitutions’ net buying strengthened impressively to QR90.28mn against QR41.32mn on March 12.

Domestic funds’ net profi t booking weakened considerably to QR9.42mn compared to QR87.41mn the previous day.

However, local retail investors turned net sellers to the tune of QR79.77mn against net buyers of QR36.41mn on Monday.

Non-Qatari individuals’ net profi t booking increased to QR11.08mn com-pared to QR5.76mn on March 12.

The Gulf individuals’ net buying declined perceptibly to QR0.42mn against QR3mn the previous day.

The Gulf institutions’ net buying

weakened marginally to QR9.63mn compared to QR12.44mn on Monday.

Total trade volume fell 21% to 14.11mn shares, value by 15% to QR520.32mn and transactions by 6% to 5,852.

The transport sector reported 82% plunge in trade volume to 0.52mn eq-uities, 90% in value to QR15.25mn and 44% in deals to 355.

The telecom sector’s trade volume plummeted 57% to 1.35mn stocks, value by 24% to QR28.18mn and transactions by 36% to 495.

The insurance sector saw 6% shrink-age in trade volume to 0.34mn shares and 7% in value to QR12.42mn but on 81% increase in deals to 287.

However, the industrials sec-tor’s trade volume expanded 7% to

4.97mn equities, while value fell 8% to QR123.94mn despite fl at transactions at 1,224.

There was 6% rise in the real estate sector’s trade volume to 2.31mn stocks but on 6% slump in value to QR37.29mn and 79% in deals to 211.

Although the consumer goods sec-tor’s trade volume was fl at at 0.4mn shares, the market witnessed 37% de-cline in value to QR19.66mn and 11% in transactions to 385.

The banks and fi nancial services sector’s trade volume was also fl at at 4.2mn equities but value shot up 39% to QR283.57mn and deals by 9% to 2,195.

In the debt market, there was no trad-ing of treasury bills and sovereign bonds.

QSE index rejig to take effect from AprilBy Santhosh V PerumalBusiness Reporter

The newly listed entity Investment Holding Group (IGRD) will replace Mazaya Qatar in the Qatar Stock Exchange’s (QSE’s) 20-stock Qatar Index, eff ective from April this year.In its semi-annual review of the indices, the bourse also announced that Qatar Electricity and Water Company (QEWC) will join the Al Rayan Islamic Index. IGRD has also joined All Share Index.Under the new index practices, a review is carried out twice a year to ensure that the selection and weighting of the constituents continues to reflect the purpose of the index.The main 20-stock barometer Qatar Index will continue to have QNB, Industries Qatar (IQ), Masraf Al Rayan, Qatar Islamic Bank (QIB), Ooredoo, Qatar Electricity and Water, Barwa, Nakilat, Commercial Bank, QIIB, Milaha, Qatari Investors Group (QIG), United Development Company (UDC), Doha Bank, Gulf International Services, Vodafone Qatar, Medicare Group (MCG), Al Meera Consumer Goods Company and Qatar First Bank.Apart from QEWC, the other constituents of Al Rayan

Islamic Index are Qatar Islamic Insurance, Masraf Al Rayan, IQ, QIB, Barwa, Gulf Warehousing, UDC, Vodafone Qatar, QIG, MCG, Aamal Company, Al Meera, QIIB, Qatar First Bank, Qatar National Cement, Qatar Industrial Manufacturing Company, Widam Food (formerly Mawashi) and Mazaya Qatar.The bourse has seven sectors — banks and financial services (with 13 constituents), insurance (five), industrials (nine), real estate (four), telecom (two), transportation (three) and consumer goods and services (nine) in the ‘All Share Index’, which comprises listed stocks with annual share velocity greater than 1%.The QSE had revised its key benchmark methodology, and stipulated at least 80% of the trading days and a minimum of 5% annualised velocity during the final quarter of the 12-month review period.The changes to the index methodology of QE Index follow a decision by the QSE Index Committee and the approval of the Qatar Financial Markets Authority.The decision by the index committee is designed to enhance the tradability of the index and ensure that consistent liquidity is a determinant of index inclusion.

Sheikh Thani: Flexible rules.

73 aircraft delivered globally in January, says IATA reportBy Pratap JohnChief Business Reporter

As many as 73 aircraft were delivered across the globe in January, IATA’s newest data show.

But this was six fewer than that were made in January 2017, the International Air Transport Association said.

The pronounced drop-off in aircraft de-liveries in January followed the usual year-end spike seen in December, IATA said in its latest fi nancial monitor.

Net storage activity made another mod-est negative contribution to the size of the fl eet, with 127 aircraft being put into stor-age, and 103 returning into service, the re-port showed.

The number of available seats in the glo-bal airline fl eet increased by 0.3% month-on-month in January, and by 5.4% com-pared to the same month in 2017.

Industry-wide free cash fl ows (FCF) in IATA sample of airlines increased to -3.3% of revenues in Q4, 2017, up from -5.9% in Q4, 2016. IATA noted that seasonal eff ects meant that free cash fl ow tend to be nega-tive during the fi nal quarter of each year.

This, it said, was driven largely by an in-crease in net cash fl ow from operations (to 11.3% of revenues, from 9.5%), but helped by a modest decline in capex too.

“As always, there was a range in perform-ance at a regional level. Airlines in Asia Pa-cifi c saw a particularly large increase in net cash fl ows and also to invest the most of all regions,” IATA said.

Europe was the only region to see a year-on-year decline in FCF, refl ecting a fall in net cash fl ow. IATA said a pick-up in eco-nomic and trade conditions supported pre-mium-class demand in 2017.

The share of international origin–desti-nation (O-D) passengers fl ying in the pre-mium-class cabin increased to 5.3% in 2017 as a whole, up slightly from 5.2% in 2016.

However, with premium-class fares generally holding up better than those in economy, the premium cabin’s share of to-tal international revenues increased to 27.2 %, up from 25.9%. Premium-class demand in 2017 was supported by the broad-based pick-up in economic and trade conditions, particularly on key markets to, from and within Asia.

That said, premium demand has lagged behind in a number of cases, notably between Europe and the Middle East, where impacts from travel bans and tighter government

budgets in the Gulf region have taken a toll.Year-on-year growth in industry-wide

revenue passenger kilometres (RPKs) slowed to a 46-month low of 4.6% in Janu-ary, although this was distorted by tempo-rary factors including the later timing of Lunar New Year this year.

“The bigger picture is that global passen-ger traffi c is carrying solid momentum into 2018, helped by buoyant global economic conditions,” IATA said.

Meanwhile, although the upward trend in seasonally adjusted freight tonne kilo-metres (FTKs) has slowed over the past six months or so, carryover eff ects helped year-on-year FTK growth to make a robust start to 2018 (8%), the report added.

“Global passenger traff ic is carrying solid momentum into 2018, helped by buoyant global economic conditions,” says IATA.

game-changing concept : page 16 business

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