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KSE sheds 0.22 pct after hitting record 17,000-mark KARACHI
E
ISMAIL DILAWAR
qUITIES at Karachi Stock Exchange (KSE) achieved an all-time intraday high above the historic 17,000 levels on Monday but profit-taking clipped wings of the high-flying bulls towards the end of the session as investors’ participation depicted better numbers. The benchmark KSE 100-Index shed 0.22 percent or 37.86 points but managed to keep the psychological 16,900 levels as it ended trading at 16,905.33 levels on Monday as against close of 16,943. 19 levels recorded on Friday as Pakistan International Airlines, TRG Pakistan Limited, Jahangir Siddiqui Company Limited, and Azgard Nine Limited empowered bears to make their way back into contention. The KSE All Share Index dipped by 0.34 percent or 41.05 points to end at 11,964.24 levels as against Friday’s levels of 12,005.29, the KSE 30-Index dropped 0.23 percent or 31.56 points to conclude at 13,764 levels on Monday as against Friday’s 13,795.56 levels, whereas the KMI 30-Index fell by 0.36 percent or 105.47 points to finish the inaugural day of the week at 29,125.55 levels on Monday when compared with 29,213.02 levels recorded in final trading session of the previous week. The Karachi Stock Exchange showed promise in the early hours of trading which helped the main index to storm past the historic 17, 000 levels at round halfway stage and soon it hit the highest-ever intraday levels of 17,031.84. The last time the key index had smacked an all-time intraday high was on Dec. 21, 2012 when it touched 16,967.82 levels during intraday trade. However, some profit-taking took the strength out of the bulls above 17,000 levels and it came
below the historic levels and entered the red terrain in the second half where minutes before the closing bells the key index was recorded languishing at the lowest level of the day of 16,889.96 before managing to close the session above 16,900 levels. Market analysts are of the view that most of the stocks ended in red territory on first trading day of the fresh week as some scrips performed well owing to some specific news in their respective sectors. They stated that despite of the fact that Byco Petroleum (53 paisas), Bank of Punjab (1 rupees), NIB Bank Limited (11 paisas), Maple Leaf Cement (3 paisas), and Pakistan Telecommunication Company Limited (24 paisas) ended in green zone, profit-selling in Fauji Cement (-5 paisas), Lotte Pakistan PTA Limited (-8 paisas), Karachi Electric Supply Company (-18 paisas), and Engro Foods Limited (-76 paisas) hurt the market sentiments. According to Mohammad Sohail, a senior equity analyst and Chief Executive Officer of Topline Research, the index crossed the historic 17,000 points mark due to a “strong rupee”. “In-spite of economic woes, heightened security environment and power crisis, Pakistan’s total return KSE -100 Index has been one of the best performing markets in the world,” he said. To Sohail, a rate-cut of 4.5 percent by the central bank during last 18 months was the major stimulus for the equity market’s boom. The monetary easing, the analyst said, not only boosted earnings, but also encouraged the flow of funds from government securities to equities. “Resolution of Capital Gain Tax issues, improved relationship with US, better foreign flows and serenity on the political canvas were amongst other factors that created positive sentiments in the market,” he said. Asked if he also deemed the transfer of $688 million by Washington under the Coalition Support Fund (CSF) as one of the major attributable factors
for Monday’s skyrocketing of the index, the analyst replied in negative. “The CSF news came Friday morning… Pak rupee gained this morning,” he said. Other market observers like Ashen Mehanti also put forth various reasons for keeping the investors’ sentiments positive on Monday. “Pakistan stocks closed lower on institutional profit-taking after the index crossed historical high of 17,000 level,” said Mehanti, a director at Arif Habib Securities.
He said higher global commodities led the investors’ sentiment positive in the trading session amid concerns for rising political uncertainty after political leaders call on long-march on Jan 14. “Expectations of lower CPI Inflation for Dec’12 and release of $ 688m Coalition Support Fund and positive fertilizer off-take data for FFC and FFBL affected the sentiments,” Mehanti added. He said the falling banking spreads and global uncertainty over America’s fiscal cliff approval also affected the foreign inflow at the Karachi bourse.
Fruit, vegetable exports post 4.40, MFN to India delayed due to reservations by industry: Fahim 34.11% growth in five months KARACHI AGENCIES
Pakistan has delayed the grant of Most Favoured Nation-status to India along with abolition of a negative trade list regime “for a short time” because of reservations expressed by several industries, Commerce Minister Makhdoom Amin Fahim has said. “The process of (phasing out) the negative list and granting MFN-status has been delayed for a short time. The reason for the delay was reservations of various industries about protecting the interest of local manufacturers,” Fahim said. Fahim said the decision to delay the phasing out of the negative list and the grant of MFN-status was made after he had discussed the issue with his Indian counterpart. “I talked to Indian Commerce Minister Anand Sharma on the issue and he understands the issue and agreed to the delay for a short time,” he said. The Pakistan government is taking steps to address the reservations expressed by some domestic industries over the grant of MFN-status to India, Fahim told reporters on the sidelines of a meeting at the Karachi Chamber of Commerce and Industry over the weekend. Fahim said he could not give a fresh date for granting MFN-status to India. A final decision would be made by the cabinet, he said. Pakistan had earlier said it would phase out the negative list regime by December 31, paving the way for MFN-status to be granted by the New Year. The negative list allows commerce in all but 1209 items. Islamabad had earlier missed another deadline for removing restrictions on trade through the land route before end of October, 2012. During talks held in Islamabad in September, the two sides had agreed that Pakistan would re-
Tuesday, 1 January, 2013
move all restrictions on trade by the Wagah-Attari land route before the end of October. Following this, the Indian side would have brought down its SAFTA sensitive list by 30 percent before December while keeping in view Pakistan’s export interests. The Pakistan government has reportedly delayed the grant of MFN-status to India due to intense lobbying by the agricultural, pharmaceutical and automobile sectors. Right wing and extremist groups like the Jamaatud Dawa and Difa-e-Pakistan Council too have opposed the trade liberalisation measures. However, Fahim contended that the government was not acting under pressure. “(MFN) is a WTO obligation and Pakistan has to grant the status for enhancing trade. It has nothing to do with (upcoming) elections,” he said. The Indian side has expressed concern over Pakistan missing deadlines for trade liberalisation measures. Earlier this month, Indian High Commissioner Sharat Sabharwal had stressed the need for Pakistan to deliver on commitments mentioned in the joint statement issued after talks between the Commerce Secretaries in September. Trade between India and Pakistan is currently worth about USD 2 billion annually and the two sides have said they want to increase this figure to six billion dollars by 2014.
ISLAMABAD APP
Fruit and vegetable exports from Pakistan during the first five months of current financial year recorded 4.50 percent and 34.11 percent growth, respectively as compared to the same period of last year. During the period from July-November 2012 fruit export from the country increased by 4.30 percent as compared to the exports of same period last year where as about 150,624 metric tons fruit worth US$ 102.724 million exported. According the data of Pakistan Bureau of Statistics, the export of fruit was recorded at 175,123 metric tons worth US$ 98.300 million during the same period of last year. During the period under review, country earned US$ 46.687
million by exporting of 97,928 million tons of vegetables as against the exports of $34.813 million of same period last year. However, during the period from July-November 2012, the export of leguminous vegetables (pulses) decreased by 47.21 percent as its export came down from US$ 1.885 million to 0.995 million to, the data revealed. Meanwhile, sugar export from the country during the period under-review recorded 100 percent increase as about 180,653 metric tons of sugar worth US$ 98.54 million exported as compared to the same period of last year. The other commodities which posted growth in their exports during the first five months of current financial year included oil seeds, nuts and kernals by 33.15 percent, meat, meat preparations by 42.08 percent and all other food commodities posted growth of 13.09 percent.
PM constitutes oversight committee for Neelum-Jhelum Project ISLAMABAD APP
Prime Minister Raja Pervez Ashraf on Monday stressed on the need to devote all energies for early completion of the Neelum-Jhelum Hydel Project. The Prime Minister made these observations during a high level meeting held at the PM House to review the progress on the project. The meeting was attended by Minister for Finance Dr Abdul Hafeez Shaikh, Minister for Water and Power Chaudhry Ahmed Mukhtar, Deputy Chairman Planning Commission Dr. Nadeem ul Haq and other senior officials. Chairman of the Water and Power Development Authority (WAPDA) Syed Raghib Abbas informed the meeting that 42% of the work on the tunnel had been completed so far and the project was expected to be completed by 2016. The Prime Minister said that the Neelum-Jhelum Hydro Electric Project was a strategic project of immense im-
portance and`the government would ensure that the project was completed at all costs. He constituted an Oversight Committee comprising secretaries Finance, Planning and Economic Affair Division,
Special Secretary Water and Power, WAPDA Chairman and Member Finance WAPDA to give suggestions to remove bottlenecks, if any, so that the work on the project continues without any interruption.
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Dollar down against euro, yen on fiscal cliff fears SINGAPORE AGENCIES
The dollar weakened against the euro in Asia Monday with traders fleeing the US currency as hopes faded that a deal could be reached to avert the fiscal cliff in the United States, analysts said. The euro advanced to $1.3227 in early Asian trade from $1.3217 in late US trade Friday. The dollar also lost ground against the yen, slipping to 85.88 yen from 85.98 yen. The euro bought 113.57 yen from 113.62 yen. Traders were pessimistic a deal could be reached to avoid the fiscal cliff of tax hikes and spending cuts before a January 1 deadline, with negotiations appearing deadlocked, said Yang Weiming, premium client manager for IG Markets Singapore. “Previously there was greater optimism on the fiscal cliff, now their expectations have been lowered,” he told AFP. Analysts fear that if a deal is not reached to prevent the US going over the fiscal cliff, the American economy could be tipped into recession. Despite overnight negotiations, US Democrats and Republicans said little progress appeared to have been made. Senate Republican minority leader Mitch McConnell warned that negotiators were still a long way from success, with Democrats not responding to a “good faith offer” his party had made.
Asian markets weighed by US fiscal cliff gridlock HONG KONG
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AGENCIES
SIAN markets mostly fell in New Year’s Eve-shortened trade on Monday as hopes that US lawmakers will reach a deal to avert the fiscal cliff faded just a day before deadline. However there was some bright news out of China, where a survey by HSBC showed manufacturing activity hit a 19-month high in December. Hong Kong closed flat, edging down 9.67 points to 22,656.92, but it closed out the year 22.91 percent higher. Sydney closed 0.48 percent lower, shedding 22.4 points to 4,648.9, although the index is up 14.60 percent over the past 12 months. Wellington was 0.35 percent lower, shedding 14.39 points to 4,066.51, but adding 24.51 percent for 2012. Singapore closed down 0.77 percent, or 24.72 points to 3,167.08, while it is up 19.68 percent for the year. Shanghai closed up 1.61 percent, or 35.88 points, at 2,269.13, its highest close since June 20. Kuala Lumpur added 0.45 percent, or 7.62 points, to close at 1,688.95, while Mumbai was flat, edging down 18.13 points to 19,426.71. Tokyo, Seoul, Taipei, Jakarta, Bangkok and Manila were all closed for public holidays. Despite the losses on Monday all the region’s stock markets ended the year higher, with Bangkok the standout performer, surging almost 36 percent, while Shanghai was the weakest, adding a little more than three percent over the 12 months. Republicans and Democrats on Capitol Hill ended Sunday without reaching a compromise over a deficit-cutting budget that would be less painful than the deep spending cuts and tax hikes due to take effect on Tuesday. Leaders remained locked in talks that appeared to be making little headway, with each side blaming the other as analysts warned the measures could tip the economy into recession. Senate Republican Minority Leader Mitch McConnell warned that despite through-the-night
talks, negotiators were still a long way from success, with Democrats not responding to a “good faith offer” from his party. Senate Democratic Majority Leader Harry Reid agreed talks were at a standstill, adding: “There is still significant distance between the two sides, but negotiations continue.” If talks fail on Monday President Barack Obama has demanded a vote on his fallback plan that would preserve lower tax rates for families on less than $250,000 a year and extend unemployment insurance for two million people. But Stan Shamu, a market strategist at IG in Sydney, said he expected some sort of plan to come out. “No one knows how this will play out, but the most likely scenario is a patch-up deal to avoid a fiscal catastrophe in the New Year,” he told Dow Jones Newswires. Despite the US fears the euro eased to $1.3191 from $1.3217 in late US trade Friday, but the dollar rose to 86.03 yen from 85.98 yen. The Japanese unit continued to be weighed by expectations the country’s central bank will unveil fresh monetary easing measures next month. The euro bought 113.50 yen from 113.62 yen. News out of Beijing was better, however, with banking giant HSBC saying its final purchasing managers’ index (PMI) of the year hit 51.5, up from 50.5 in November and a fourth straight month of improvement. A reading above 50 indicates expansion in the key sector, while one below signals shrinkage. The figures reinforce recent indications that the world’s second-largest economy is finally emerging from its slumber. “Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise,” qu Hongbin, HSBC’s chief economist for China, said in the release. On oil markets New York’s main contract, light sweet crude for delivery in February, shed 48 cents to $90.65 a barrel and Brent North Sea crude for February slipped 59 cents to $110.03. Gold was at $1,664.64 at 1055 GMT compared with $1,658.90 late Friday.
Business 02 Major Gainers COMPANY
OPEN
UPFL
HIGH
LOW
CLOSE
CHANGE
TURNOVER
4,300.00 100.00
10.70
1.00
3.25
44.44%
COLG
1,500.00 30.55
14.45
0.53
2.25
25.00%
SIEM
774.68
17.44
151.54
1.74
1.87
16.88%
KHTC
141.20
16.37
92.04
0.96
1.75
16.67%
MFFL
385.12
10.12
17.35
0.24
7.20
16.13%
-400.00 -166.67 -12.99 -11.00 -7.00
437.54 4.03 16.14 98.14 35.04
-5.28 -0.40 -0.38 -0.76 -1.00
6.42 3.91 3.06 5.75 4.70
-13.48% -12.72% -12.57% -11.54% -11.15%
0.53 1.00 0.24 0.03 0.11
16,316,500 14.45 12,534,500 10.70 11,980,500 17.35 10,951,500 14.57 10,806,500 2.63
0.53 1.00 0.24 0.03 0.11
16,316,500 12,534,500 11,980,500 10,951,500 10,806,500
Major Losers ULEVER NESTLE BHAT PICT INDU
10,100.00 4,733.33 257.01 209.03 270.00
Volume Leaders BYCO BOP PTC MLCF NIB
14.45 10.70 17.35 14.57 2.63
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.2098 156.4105 1.1302 128.1614
Dollar East Australian Dollar1 Canadian Dollar China Yuan Euro Japanese Yen Saudi Riyal UAE Dirham UK Pound Sterling US Dollar
BUY
SELL
00.51 97.4 13 128.3 1.15 26 26.5 157.3 97.3
01.5 99 13.5 129.7 1.175 26.3 26.85 158.6 97.9
CORPORATE CORNER Teen<space><number1><space><number2> to 2129. PR
PTCL introduces standalone Smart TV package LG products receive carbon-free certification
Pakistan Telecommunications Company Limited (PTCL) has launched a standalone package for its Smart TV customers. PTCL is the first and only telecom service provider in Pakistan that is offering this state-of-the-art digital interactive television service. Equipped with unique features like rewinding live programs and news through time shift technology, parental lock and digital quality Video on Demand (VOD), PTCL Smart TV allows customers to be more interactive and in complete control of their television experience. The new package has been specially designed to bring added convenience for PTCL customers, enabling them to experience Smart TV without the requirement of Broadband internet. With this package, customers can now experience interactive TV at just Rs 450 per month. The package has an added advantage of unlimited calls on Sunday from PTCL Landline to Landline & Vfone for just 199/month extra. Besides offering the highest digital quality TV picture, Smart TV also gives customers the option to choose high quality videos from a large pool of video library. “Access and control of content in a personalized way is here to stay, and at PTCL we shall continue to offer our customers a dynamic, personal and digitally interactive television experience. PR
Glow by Warid brings the ‘Teen ka tarka’ offer for youth Warid Telecom brings an exciting new offer ‘Teen ka Tarka’ that will allow 3 Glow customers to subscribe and form a group to enjoy the lowest ever on-net calls. The calls will be charged at only 35 paisas per 30 secs with a daily rental charge of Rs 1.99. This offer is yet another industry first by Glow that has always strived for cost-effective communication solutions and this new offer ‘Teen ka Tarka’ will enable, encourage and facilitate groups of 3 friends to stay in touch with each other at the lowest call charges in the industry. Warid Telecom’s Director Marketing Communication Sadaf Zarrar stated, “This offer is another step towards establishing Glow as the premiere youth telecom brand in the industry. Our research tells us that offers such as these have a lot of relevance with today’s budget-conscious youth who have a need to communicate with one another in order to connect for all their needs.” To add your onnet desired numbers in the Teen Ka Tarka offer, SMS
LG Electronics (LG) has announced that it has been awarded Carbon Free® certification for six of its products, validating the consumer electronics and home appliance company’s strategy of reducing its carbon footprint. Following on from LG’s activities in the low-carbon appliances sector, a number of products have been certified as Carbon Free® by Carbonfund.org Foundation, a leading organisation in the fight against global warming and an authority on evaluating the impact individuals and businesses having on the environment. The products certified CarbonFree® include Optimus G smartphone, OLED TV, washing machine, refrigerator, vacuum cleaner and computer monitor. The products were subjected to a comprehensive lifecycle analysis as part of its certification process to determine the carbon footprint throughout the whole manufacturing process, spanning from manufacturing and shipment to usage and final disposal. PR
Sindh Bank issues performance report Subsequent to the grant of Banking license by State Bank of Pakistan on Dec 2, 2010 the bank commenced its operations with the inauguration of its first branch at Naudero on Dec 26, 2010 by President Asif Ali Zardari. However the bank was granted full fledged license for operations in April 2011. It has now an overall network of 160 branches across 80
cities in all provinces of the country including Azad Jammu Kashmir (AJK), with specific preference in Sindh province where the branch network is 100. SBL is the only bank in the country to have established 160 branches in less than two years of its operations. The Bank’s performance has been excellent in terms of its profitability and deposit mobilization. In its first year of operation’s ended December 31, 2011, the bank posted a pre-tax profit of Rs 1,140 million and deposit base of Rs 23,517 million. This has further improved to around Rs 1.3 billion as operating profit and Rs 31 billion in terms of deposits by end December 2012. PR
ucts for financing, liability, treasury, trade finance as well as other Shariah-compliant products, it said. Meezan Bank’s representatives, Ahmed Ali Siddiqui - Head of Product Development and Shariah Compliance and Asim Hameed Khan- Islamic Advisory, conducted the trainings which were attended by the senior management, middle management and nationwide branch staff of Amana Bank. Addressing the audience, Mohamed Azmeer - COO, Amana Bank appreciated Meezan Bank’s trainings and highlighted them as a vital tool in their plans to launch the new Islamic banking products. PR
Extension of SSGC’s gas Etihad Airways flies record bills payment date 10.29m passengers in 2012
Etihad Airways has surpassed its target of carrying 10 million passengers in 2012 and is set to achieve a 22 percent increase on the total of 8.41 million passengers for 2011, said the airline on Monday. The increase in passenger numbers - up to a total of 10.29 million represents an extra 1.88 million passengers traveling on the carrier’s global network that now covers 87 of its own passenger and cargo destinations, and 245 code-share destinations. The passenger growth for Etihad Airways is mirrored by its equity partners. By the end of 2012, airberlin is expected to have carried 33.4 million passengers, Virgin Australia 19.5 million passengers, Aer Lingus nearly 11 million passengers, and Air Seychelles 241,000 passengers. “Etihad Airways has achieved significant expansion in 2012 and therefore it’s very satisfying to pass our target of flying more than 10 million passengers during a year for the first time,” said James Hogan, Etihad Airways’ President and Chief Executive Officer. PR
Due to the ‘Bank holiday’ on January 1, the due date for the payment of gas bills for SSGC’s customers falling on Jan 1 has been extended to Jan 2. This has been done as a special case to facilitate its valued customers, a SSGC’s press release said. PR
Bank Holiday The State Bank of Pakistan and all offices of SBP Banking Services Corporation, inclusive of Public Debt Offices, will remain closed for public dealing on Tuesday (January 1), which has been declared as bank holiday. All Banks/DFIs shall, therefore, remain closed for public dealing on the above mentioned date. However, all officers/staff of SBP, SBP-BSC, Banks/DFIs will attend the office as usual. PR
Meezan Bank trains Islamic bankers in Sri Lanka Meezan Bank held a three-day training on Islamic banking products for the management team of Amana Bank, Sri Lanka, the bank said on Monday. The training session held at the Amana Bank head office in Colombo, covered 24 prod-
Hasan Jamil, head of sales Dawlance, addresses the launch ceremony of new range of microwave ovens on Monday. PR
Tuesday, 1 January, 2013