PRO 07-02-2012_Layout 1 8/1/2012 6:23 AM Page 1
Wednesday, 1 August, 2012
Au revoir! Association expresses dismay as govt is all set to phase out CNG sector ISLAMABAD: The all Pakistan Compressed Natural Gas (CNG) Association has expressed its dismay over government’s move to phase out CNG sector form Pakistan. In a statement issued here on Tuesday, Pakistan CNG Association Central Chairman Ghiyas Abdullah Paracha said the investment of billions, network, planning, effort of years and infrastructure was on stake of few persons benefit. He warned the load on health budget, foreign reserves, import bill will be lethal for country’s economy if CNG closed and if it is done then few industrialists will be accountable before the nation for their unjust. He went on to say that the world was giving top priority to CNG fuel for vehicles as it is safer fuel and environment friendly fuel as well as the most efficient use of natural gas. ONLINE
Off-takes MoM
Urea up173%, DAP 269% KARACHI: With Kharif season in full swing, total urea off-take of the country witnessed a massive jump of 173%MoM (109%YoY) to stand at 1.02mn tonnes during the month of June. “This huge offtake of urea is result of aggressive buying by the dealers in the wake of upward price reversion expected in coming months,” viewed InvestCap Analyst Hasan Raza. On cumulative basis, he said, urea off-take during 6MCY12 stood at 2.74mn tonnes compared to off-take of 2.67mn tonnes during same period last year, showing the appreciation of 3%YoY. In total urea offtakes , FFC s contributed 51% posting the sales volumes of 526 kilo tonnes compared to 204 kilo tonnes during last month, Engro off-takes contributed 22% in total off-take posting the volumes of 223 kilo tonnes compared to just 64 kilo tonnes, FATIMA urea off-takes contributed 12% in total off-takes posting the volumes of 128 kilo tonnes compared to just 1.4 kilo tonnes and FFBL urea off take contributed 6% in total.
The DOC sits atop 13-pronged revamp Raja reconstitutes ECC, ECNEC ISLAMABAD
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APP
RIME Minister Raja Pervez Asharaf has reconstituted a thirteen (13) member Economic Coordination Committee of the Cabinet (ECC) with Federal Minister for Finance Dr.Abdul Hafeez Shaikh as its Chairman. According to a Notification of the Cabinet Secretariat, Deputy Prime Minister/Senior Minister for Industries, Ministers for Commerce, Communications,Law and Justice,National Food Security of Research , Port and Shipping ,Privatization Production, Railways, Science and Techonolgy, Textile Industry and Water and Power would be the members of the newly constituted Committee. The Notification further said that Minister for Information and Broadcasting, Advisor to the Prime Minister on Petroleum and Natural Resources, Minister of State for Production, Deputy Chairman Planning Commission , Governor State Bank of Pakistan, Chairman Securities and Exchange Commission of Pakistan , Chairman Board of Investment, Special Assistant to Prime Minister on Water resources and Agriculture, Secretary, Commerce Division, Secretary Communication Division, and Secretary Economic Affairs Division would be invited by special invitation for all items of the agenda. Meanwhile in an another Notification issued by the Cabinet Secretariat/Cabinet Division, Prime Minister Raja Pervez Ashraf has also reconstituted the eight (8) members
Executive Committee of National Economic Council (ECNEC) with Federal Minister for Finance and Economic Affairs, Dr.Abdul Hafeez Shaikh as its Chairman. The other members of the ECNEC would be Dr.Arbab Alamgir Khan Minister for Communication, Mir Changez Khan Jamali ,Minister for Science and Technology, Ch.Ahmad Mukhtar ,Minister for Water and Power, Minister for finance Government of Balochista Representative of Balochistan on NEC, Senior Minister for Planning and Development and Power ,Government of KhyberPakhtunkhwa on NEC, Senator Muhammad Ishaq Dar Representative of Punjab on NEC, and Hussain Mirza Representative of Sindh on NEC. According to the notification, the Prime Minister has also directed that following officials on Federal Government and Provincial Governments would attend the meeting of the ECNEC by Special invitation ,for all items of the agenda. FeDeRAL GoveRnMent: 1 Mir Israrullah Zehri Minister for National Food Security and Research. 2 End.Shaukatullah Minister of State for Frontier Region. 3 Haji Ghulam Ahmed Bilou Minister for Railways. 4 Makhdoom Shahbuddin Minister for Textile Industry. 5 Mir Hazar Khan Bijarani,Minister for Inter Provincial Coordination. 6 Deputy Chairman Planning Commission.
7 8 9 10
Secretary Economic Affairs Division. Secretary Finance Division. Secretary Planning and Development Division. Secretary Statistics Division. PRovInCIAL GoveRnMentS:
11 Chairman Planning and development division Government of Punjab. 12 Additional Chief Secretary ,Planning and Development department Government of Sindh. 13 Additional Chief Secretary ,Planning and Development department Government of Khyber Pakhtunkhwa and 14 Additional Chief Secretary ,Planning and Development department Government of Balochistan. Other officers of the Federal and Provincial governments as well as the governments of AF&K,Gilgit Baltistan and FATA would be invited to the meetings of ECNEC on need basis, the notification said. One half of the total members of the ECNEC would be the quorum for its meetings as provided in article 156 (4) of the Constitution for the meetings of the National Economic Council (NEC). Secretariat assistance to the ECNEC would be provided by the Cabinet Division.
Red Devils set to score another late winner Manchester United eyes over $300m in Wall Street IPO NEW YORK AGENCIES
Popular British football (soccer) team Manchester United announced Monday that it hopes to earn over $300 million in its proposed IPO on Wall Street. The team will put $16.7 million on market, $8.3 million in public shares and $8.3 million belonging to the club owner, American businessman Malcolm Glazer. The shares will be sold at $16 and $20, raising a target amount of around $300.6 million. Taking into account the 2.5 million additional shares that may be offered through overallotment options and the maximum price per share, the team could stand to raise up to $383 million. The opening date for the public offering, initially announced in July, has not yet been set. The club had renounced its previous initial public offering, slated for the Singapore market, in a region where there is an abundance of liquidity and a strong fan base. Among the most popular teams in the world, Manchester United posted a profit of $19.7 million in 2011, with total revenues at $518.5 million.
INTERVIEW
‘Pakistan is an evolving market for int’l luxury brands’ Franck Christophe Dardenne, General Manager of LVMH Watch & Jewellery, India. KARACHI ISMAIL DILAWAR
TAG Heuer, a globally acclaimed Swiss brand producing high-end luxury watches since 1860 especially in the field of chronographs and ultimate precision, is fast expanding and therefore clinching new milestones in Pakistan which the company officials believe is a small but evolving market for its high quality products. Franck Christophe Dardenne, General Manager of LVMH Watch & Jewellery India, was in recent weeks invited to Pakistan to conduct the business review meetings and explore the growth opportunities for TAG Heuer in Pakistan, a developing economy and an emerging market for internationally recognized brands. Pakistan Today had had an exclusive interview with Franck who has been affiliated with Tag Heuer from over a decade having worked first in the company’s head quarter in Switzerland, then in Japan. Now he has been appointed in India as a regional head. To Franck, Pakistan is a country of great potential for Tag Heuer’s watches the current annual selling turnover of which stands at 1000 pieces. This turnover is remarkable if viewed in the backdrop of sky-high prices of Tag Heuer’s luxury watches the retail prices of which, according to Franck, range from Rs 120,000 to Rs 250,000. “The average price of Tag Heuer’s watches is Rs 200,000 plus,” Azam added.
Franck was impressed with the new shopping malls being coming into existence in Pakistan specially the Dolmen Mall. “You have new shopping malls to come in like go to the Dolmen Mall. So we see a gradual step-by-step development in our products sale.” “Yeah for sure” Franck replied when asked if his company had a plan to expand its business network in Pakistan. “We would at least double it in next three years, because we see that it would be a significant economy. So we are seeking now to take a position here,” the general manager said. “Besides this, the customers (here) like us,” he added. Urging the open-minded Pakistani customers to buy more and more of Tag Heuer products, Franck said his side was engaged in Pakistan in a transparent manner expecting greater returns. “We import everything cleanly and we are the only key luxury watches brand today. We just have chosen to work in such an open-minded, clean and efficient way. And doing so we really expect a great return on this because we treat Pakistani customers with highest respect,” he said. Franck places Pakistani market on second in the seven-country South Asian region after India which has one of the world’s largest consumer bases. He said Tag Heuer had 24 points of sales in Pakistan, five in Sri Lanka and two in Nepal. “The worth of Pakistan is much more higher that you can’t compare it with Bangladesh, Nepal or other regional coun-
tries,” he said. Pakistan, he said, is currently 10 percent of India in terms of Tag Heuer’s sell. “In next three years it should be about 15 to 20 percent.” Terming Pakistan a “small” but “evolving” market where Franck said all his side had to do was to find out new selling outlets for its watches. This part of the world Franck said was providing a unique chance for Tag Heuer because many Pakistanis who study and travel abroad may be the potential buyers of his quality products. Franck sees no security issue fro foreign businesses like his in Pakistan. He said some of the areas may be sensitive in terms of law and order, but taking a big picture of security situation in Pakistan “I never felt insecure here”. “Image of the country is the worst but I hope your country would be safer and safer,” he said.
To a question on what Tag Heuer is plugging into the local economy, he replied: “We put on sale what we have here through our partners (Speed (Pvt) Limited) and the international brand was behind”. A rough estimate, he said, may be $300,000 a year his company would, approximately, be investing in Pakistan. “This is for strengthening our presence and to make the Tag Heuer a successful brand in the local market”. On having a Pakistani celebrity as Tag Heuer’s brand ambassador, Franck said for the time being his side had no specific plans to go for an icon in Pakistan where his customers had an international mindset and were well acquainted with Tag Heuer’s Bollywood and Hollywood icons Shah Rukh Khan and Leonardo DiCaprio. Having partnered with WTA tennis champion Maria Sharapova and LPGA star Suzann Pettersen, Tag Heuer, in March this year, declared Cameron Diaz as its new ambassador for its new LINK LADY collection. “At the moment it’s not a priority as we are not in a state where we would want to localize this idea. Our current ambassadors are successful, so there is no specific plan to hire a new one,” Franck explained. Pertinent would be to mention here that Pakistani cricketer Shahid Afridi is presently working as a brand ambassador of Rado, another Swiss manufacturer of luxury watches. Asked if his company was facing any
regulatory challenges in the local market, Franck, being not directly engaged in the local market, referred the question to Yaser Azam, senior brand manager of Speed (Pvt.) Ltd, Tag Heuer’s distributors in Pakistan, who said the overall business conditions in Pakistan were quite favorable for Swiss watch industry. “It’s not a mass market. It’s a very nesh market, so technically speaking there are no any hindrances or problems. And that’s why we can see the growth also in the local market,” said Azam. About the impact of global recession on Tag Heuer’s business in Pakistan, Franck replied in negative. “Not at all, because the attention which was given to watches was so small that we are not feeling influenced by the macroeconomic meltdown. We are small and in countries like Pakistan we are educating the customers on quality watches.” “We have a mission to share that what is the quality of Swiss watches,” said the Swiss official. TAG Heuer, which Franck said stands the fourth luxury watches firm among its global competitors, wasfounded in SaintImier in 1860 by Edouard Heuer, since then it has set many major milestones of high-end watchmaking. Today, one of the largest and most desired brands in the luxury watch industry, the Swiss legend draws upon its active engagement in the world of sports to create the most accurate timing instruments and watches in the world.
PRO 07-02-2012_Layout 1 8/1/2012 6:23 AM Page 2
Business 02 $1.12bn woRTh of optimism
Bulls release themselves from shackles of insecurity to lift index up 65 points, as Pakistan, US put pen to NATO supply agreement KARACHI
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STAFF REPORT
AKISTAN’S main stock market closed northwards on Tuesday. The Pakistan Stocks closed higher amid institutional interest in oversold market. Investors took positions in stocks across the board as Pakistan, US sign NATO supply agreement amid hopes for release of $1.12bn payment from US against services to coalition forces, analysts said. The Karachi Stock Exchange benchmark 100-share index gained 65.46 points, or 0.45 percent, to close at 14, 577.00 points on volume of 77.797 million shares. The trading volumes at the ready-counter were recorded lower at 77.797 million shares against 81.835 million shares of the previous day. The trading value down to Rs 3.076 billion compared to Rs 3.152 billion of the last day session. The intraday high and low, respectively, stood at 14, 598.56 and 14,
511.54 points. He added that the strong earnings outlook, expected rise in local POL prices and renewed foreign interest in blue chip stocks played the catalyst’s role in bullish sentiments in stocks at KSE despite concerns for macroeconomic conditions and uncertain global markets. The market capitalisation grew modestly and increased to Rs 3.724 trillion from Rs 3.707 trillion a day earlier. Of the total 284 traded scrips, 158 gained, 100 lost and 26 finished as unchanged. The free-float KSE-30 index also gained 39.79 points to close at 12, 607.26 points against the previous 12, 567.47 points. The KSE allshare index closed with a gained of 46.71 points to 10, 264.58 points as against 10, 217.87 points. Arif Habib Corporation was the day’s volume leader counting its traded shares at 9.741 million with the opening and closing rates standing at Rs 33.70 and Rs 33.00, followed by Bank Al-Falah, D.G.K. Cement, National Bank of Pakistan and Fauji Cement with the turnover of 6.221 million, 5.731 million, 5.403 million and 4.928 million shares respectively. On the future market, the turnover remained negative to 7.058 million against 7.608 million shares of first working day of the week Monday. The UniLever Food and Colgate Palmolive, up Rs 141.25 and Rs 56.76, led highest price gainers while, Abbott Laboratories and J.D.W Sugar, down Rs 4.22 and Rs 4.05 respectively, led the losers.
Major Gainers oPen ComPAny Unilever Food 2825.00 Colgate Palmolive 1135.30 UniLever Pak 7728.00 Mithchells Fruit 330.94 Nestle Pakistan Ltd. 4085.42
Audi steps on the accelerator BERLIN AGENCIES
Audi, the top-of-the-range carmaker owned by German auto giant Volkswagen, said operating profit accelerated powerfully in the first half of the year and stuck to its full-year target. Operating profit rose 13.2 percent to 2.9 billion euros ($3.6 billion) compared to the same period in 2011, the firm said, registering sales of 25 billion euros, a gain of 16.2 percent. Audi said it delivered 733,237 cars in the first half of the year, 12.3 percent more than it had in the first six months of 2011. Chief financial officer Axel Strotbek said the firm was keeping to its goal of an operating profit at the same level as last year “as long as the economic environment does not darken further.” It said it aimed to deliver more than 1.4 million cars for the first time in the full year.
‘Light at the end of tunnel for Italy, eU’ MILAN AGENCIES
Italian Prime Minister Mario Monti said Tuesday that the end of the tunnel was in sight for Italy and the European Union, after the European Central Bank and eurozone leaders pledged to save the euro. “We and the rest of Europe are getting closer to the end of the tunnel. There’s light at the end of the tunnel,” he said in an interview with Radio Anch’io, ahead of a meeting in Paris with France’s President Francois Hollande.
exide Pak reports higher profit
LONDON AGENCIES
Oil prices were mixed Tuesday before a meeting of the Federal Reserve which could reveal more stimulus measures aimed at boosting the US economy, which is also the world’s biggest consumer of crude. Brent North Sea crude for September delivery dipped five cents to $106.15 a barrel in London midday deals. New York’s main contract, light sweet crude for September, gained 25 cents to $90.03 a barrel. Crude markets were expecting additional stimulus to be agreed during the twoday US Federal Reserve meeting which starts
Tuesday as well as at a gathering of the European Central Bank (ECB) on Thursday, analysts said. “Market players are holding back ahead of the central bank meetings later this week,” said Commerzbank commodities analyst Carsten Fritsch. The Fed gathering comes after the US government last week said that growth in the United States — the world’s biggest economy — slowed to 1.5 percent in the second quarter from 2.0 percent in the first three months of 2011. Markets were tempering their optimism about fresh action with “worries that expected stimulus from the United States and Europe may fail to lift their economies,” Phillip Futures stated in a commentary.
KARACHI: Exide Pakistan Ltd has posted a higher profit after tax of Rs 184.698 million for the first quarter ending June 30, 2012. According to financial results of the company despatched to Karachi Stock Exchange here Tuesday, the pre-tax profit also surged to Rs 281.929 million for the period under review against Rs 156.551 million last year. APP
KARACHI: Hussain Ali Talib, Mobilink PR Manager is presenting gift to lucky winner, Abbas Malik during Mobilink Media Iftar.
Too mAny DARn nUmbeRs! LAHORE APP
The Lahore Chamber of Commerce & Industry here Tuesday urged the State Bank of Pakistan to bring the mark-up rate down to a single digit in the upcoming monetary policy scheduled for August 10. LCCI President Irfan Qaiser Sheikh said that priority of the SBP should be the availability of cheaper money to the business community to strengthen the process of industrialization and arrest the fast widening graph of unemployment. In the last two years interest rates in Europe and the United States have been brought down close to zero to save the economies from collapse, he said, asserting, this is the time that interest rates should be brought down to single digit to spur growth. He said that a cut of 50 to 100 basis points would not be doing any service to the windling economy. The ongoing economic scenario shows
that there was hardly any time left for economic managers of the country and they all should understand gravity of situation that there would be no business community buyer if the interest rates are kept higher, he added. The LCCI President
SBP urged to reduce mark-up to single digit
said that private sector was the only hope for salvaging the country therefore a significant cut in cost of doing business is direly needed. During last few years, the private sector had suffered setback because of higher cost of doing business.
hIgh 2966.25 1192.06 7755.00 347.48 4100.00
Low 2849.00 1190.00 7750.00 315.00 4070.00
CLose ChAnge TURnoveR 2966.25 141.25 220 1192.06 56.76 750 7755.00 27.00 80 347.48 16.54 2,500 4100.00 14.58 1,800
171.01 104.00 521.80 245.00 56.50 260.01
164.70 101.00 514.05 223.00 56.50 256.50
165.95 102.00 515.87 230.01 56.50 257.12
-4.22 -4.05 -3.84 -3.68 -2.95 -2.88
65,000 2,300 12,500 6,600 500 15,700
33.70 19.12 46.40 46.80 6.18
32.25 18.58 45.80 45.81 5.94
33.00 18.81 46.21 46.61 6.15
-0.70 -0.08 -0.11 0.91 0.21
9,741,000 6,221,000 5,731,500 5,403,500 4,928,000
Major Losers Abbott Laboratories J.D.W.Sugar Millat Tractors National Foods Gillette Pak Indus Motor Company
170.17 106.05 519.71 233.69 59.45 260.00
Volume Leaders Arif Habib Corp. Bank Al-Falah D.G.K.Cement National Bank Pak Fauji Cement
33.70 18.89 46.32 45.70 5.94
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.6713 148.5299 1.2102 116.0860
Dollar East bUy US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
seLL
94.30 115.51 147.31 1.1976 93.34 12.00 25.63 25.13 98.39
95.10 116.52 148.55 1.2076 94.63 12.17 25.82 25.27 100.67
CORPORATE CORNER Fouzia hameed: The bags that brought fortune KARACHI: Pakistan is a country where a major portion of the population struggles below the poverty line although a considerable amount of those individuals do have brilliant entrepreneurial ideas which unfortunately cannot be realized due to lack of financing. Khushhalibank, through its various Micro Financing programmes in Pakistan has to a large extent catered to the needs of the low income groups who like the others have dreams and aspirations to be successful for themselves as well as those around them. One such example is of Fouzia Hameed who belongs to an underprivileged family. She is disabled from both her feet. Her father died sometime back and she is living with her brothers of whom only one is employed. It was very difficult for her brother to bear the family expenses within his meager income. PRESS RELEASE
etihad Airways wins Airline strategy Award KARACHI: Etihad Airways, the national airline of the United Arab Emirates, has won the finance category of the Airline Strategy Awards, one of the industry’s most coveted awards. The award, announced in front of the world’s leading airline figures at London’s The Honourable Society of Lincoln’s Inn, recognised the strategic contribution the finance team has made to the success of Etihad Airways. The award was accepted by James Rigney, Etihad Airways Chief Financial Officer, who said: Our expert team plays a key role in the business achieving its financial goals, most notably in beating Etihad Airways’ break even target in 2011 to record the airline’s first ever profit. PRESS RELEASE
samsung announces 2nd quarter results LAHORE: Samsung Electronics Co., Ltd. has announced revenues of $41.79 Billion on a consolidated basis for the second quarter ended June 30, 2012. This shows a 21-percent increase year-on-year in the revenue. For the quarter, the company’s consolidated operating profit reached a record US $ 5.90 Billion, representing a 79-percent year-on-year increase. Consolidated net profit for the April-June period was $4.55 Billion. Capital expenditure in the first six months was US $ 12.29 Billion. Samsung posted solid sales and maintained its profit in almost all business segments including Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, and Digital Imaging; Memory, System LSI and LED, etc. PRESS RELEASE
‘high street’ taking fashion to a higher level KARACHI: Designer Saima opens the doors of her multi brand store “ high street” for all the fasionistas of Karachi at 3rd Commercial Lane, Zamzama, D.H.A, offering a wide range of men’s women’s semi-formal, formal m bridal wear. The designer has proved to be creative in designs and has used colours which will suit all age groups. With her team of versatile designers she has styled beautiful outfits that instantly catch the eyes of buyers. Stand out amongst others wearing one of her creations by looking unique n elegant. She has definitely put in her best effort and has entered the fashion industry with a BANG!. PRESS RELEASE
Wednesday, 1 August, 2012