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Saturday, 1 September, 2012
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NEWS DESK
AKISTAN is planning to transfer operational control of its strategically important Gwadar deep water port from Singapore’s PSA International to a Chinese company, according to a Pakistani minister. “We have reached an agreement with PSA where they have decided to leave the port at Gwadar. They are in discussions with a possible Chinese investor,” Babar Ghauri, Pakistan’s minister of ports and shipping, told the Financial Times in an interview. MoRe: Although the transfer of management control is likely to be portrayed in both Pakistan and Singapore as a commercial decision, any step that increases Chi-
nese influence over its ally Pakistan will be watched closely by the US and by India, Pakistan’s neighbour and regional rival. Gwadar, built with the help of a loan from China, is close to the Pakistan-Iran border and the Strait of Hormuz, through which much of the Gulf’s oil exports are carried by ship to international markets. PSA began running the port five years ago under a contract valid for up to 40 years but is now preparing to leave. PSA declined to comment but Mr Ghauri and Singaporean sources confirmed that PSA’s imminent handover of control was triggered in part by Pakistan’s failure to fulfil its commitments, one being the building of a motorway link to service the port. Other differences included the government’s failure to transfer land for the port’s expan-
sion. “There is a decision for PSA to leave and we have given our consent,” said Mr Ghauri, who declined to name the potential Chinese replacement. However, Pakistani officials said strategic as well as commercial interests played a part in the change. China’s assumption of the port contract “will be a landmark development, both for Pakistan and China”, said a senior government official. “This has great value for China,” he said. “We believe the Chinese may use their presence at Gwadar to lay down a pipeline in future for transporting Middle Eastern oil to western China.” Another Pakistani official said the port contract would be “the second most vital Chinese investment in Pakistan after the Karakoram highway”, the road linking Pakistan to western China. Any Chinese
kSe drops bomb, 22 firms gone, 9 survive Decides to de-list 22 defaulting firms from stock exchange, gives a chance to nine others g
KARACHI ISMAIL DILAWAR
The front regulators at the recently-demutualised Karachi Stock Exchange (KSE) have decided to delist almost two dozen listed companies for their failure to comply with the listing regulations, it emerged Friday. Also, the KSE management has accepted the request for extension in time of some nine firms which either have shown their intention to rectify the defaults or are in process of rectification of the default. Friday saw the front regulator notifying the names of at least 22 companies facing delisting from the stock exchange for not complying with the Listing Regulation No.30 that provides for the payment of Annual Listing Fee. The firms under fire have also failed to induct the ordinary shares of the companies into Central Depositary System (CDS) of Central Depository Company (CDC). The 22 firms are: (Colony) Thal Textile Mills Limited, Adil Textile Mills Limited, Dadabhoy Sack Limited, Data Textiles Limited, Genertech Pakistan Limited, Hajra Textile Mills Limited, Kohinoor Industries Limited, Kohinoor Power Company Limited, Mukhtar Textile Mills Limited, (Colony) Sarhad Textile Mills Limited, Annoor Textile Mills Limited, Asim Textile Mills Limited, Central Forest Products Limited, Dadabhoy Construction Technology Limited, Karim Cotton Mills Limited, Khurshid Spinning Mills Limited, Mehr Dastgir Textile Mills Limited, S.S. Oil Mills Limited, Saleem Denim Industries Limited, Service Fabrics Limited, Service Industries Textiles Limited and Taj Textile Mills Limited. The above companies have neither rectified the defaults nor complied with the compulsory direction of the KSE of buy-back of shares from minority shareholders by the sponsors or majority shareholders under the Listing Regulation No.30-A within the stipulated time. These defaulting firms are therefore liable for
action under the said Regulation, said the regulator. Therefore, it said, the Exchange in the interest of investors’ protection and in accordance with Listing Regulation No.30(2)(c) intends to now delist these companies. The concerned companies or their managements have been asked on Friday to inform the Exchange in writing on or before October 1 if they had any objection to the proposed delisting. “Otherwise the Exchange in compliance with the above referred Regulation will proceed further and take action of delisting of the companies,” the notice issued said. The KSE further said trading in the shares of the said companies shall remain suspended under the Sub-section (7) of Section 9 of the Securities and Exchange Ordinance, 1969 and the Listing Regulations of the KSE. On a positive note, the KSE management extended time for the rectification of defaults to some nine listed firms which were put on defaulters’ counter for the non-payment of Annual Listing Fee and/or non-induction of their ordinary shares into the CDS of the CDC. The Dadabhoy Cement Industries Limited, Nazir Cotton Mills Limited, Saritow Spinning Mills Limited, Sind Fine Textile Mills Limited, Bela Automotives Limited, Hamid Textile Mills Limited, Morafco Industries Limited, Redco Textiles Limited and Globe Textile Mills Limited are the firms that got an extension in time up to October 1 (2012) to rectify their defaults. “The Exchange in consideration of the reasons given by the companies and in the public interest have decided to allow an extension in time,” the KSE said. It advised the companies to ensure to rectify the defaults within the stipulated time, failing which the Exchange would initiate further action including delisting of the companies from the Exchange. Despite extension the relieved firms would, however, see trading in their shares suspended under Sub-Section (7) of Section 9 of the Securities and Exchange Ordinance, 1969 and the Listing Regulations of the Exchange.
expansion of its interests in south Asian ports is likely to reinforce concerns in India about “encirclement” by China. Liang Guanglie, China’s defence minister, is visiting Sri Lanka and is expected in India early next week. Last year, Chaudhry Ahmed Mukhtar, then Pakistan’s defence minister, told the FT that it had asked China to build a naval base at Gwadar and expected the Chinese navy to maintain a regular presence there, although Mr Liang said the Chinese government had not discussed the proposal. Chinese military experts have been debating how the People’s Liberation Army Navy can transform itself into a deep water force and support missions far from home, where ships need access to foreign ports to refuel, change staff or replenish food supplies. The PLAN has used its
Urea sales in August to touch 200k ton mark g
anti-piracy missions in the Gulf of Aden to use some ports along the way on a case-bycase basis but Beijing has been careful not to commit to plans for fixed foreign bases. Beijing agreed to lend Sri Lanka more than $800m for the second phase of development at Hambantota port on the island’s south coast, Reuters reported from Colombo last week. The first phase was financed with a US$400m Chinese loan. The port is being built by China Communications Construction, a state contractor. Gwadar port, which had a total investment of $248m, received $198m in funding from China, according to the commerce ministry in Beijing. The port was built by China Harbour Engineering Company, a subsidiary of China Communications Construction. COuRTESy: FINANCIAL TIMES
200,000 tons!
KARACHI STAFF REPORT
The sale of urea during the month of August is anticipated to reach 200k tons, as the total sales till August 29 stood at around 190k tons, according to the market sources. This will be approx 49 percent lower than the July 2012 sales of 389k tons as dealers were anticipating decline in urea prices as there were rumors that government may supply imported urea at a higher discount than local branded urea. Thus for first eight months of 2012, urea sales to reach at 3.3mn tons versus 3.7mn tons compared to last year. However, local manufacturers sales during 8M2012 is anticipated to be lower by 31 percent to 2.3mn tons. The company-wise data shows that out of 200k tons urea sales in August, it is estimated that Fauji group has sold around 55 percent followed by NFML (solely involved in marketing of imported urea) which contributed 16 percent of the industry sales so far. Similarly Engro’s share is around 16 percent while others contribute the rest.
“We believe that more than 140k tons of imported urea out of 300k tons of import will still be available with the government during next
Further rate cut likely KARACHI: The inflation numbers in the country continue to remain in single digit during the month of August to 32-months low at 9.05 percent as against 9.6 percent the country braved in July (2012). On month-on-month basis, the price hike stood at 0.9 percent as against 0.22 percent of the preceding month, while the average inflation in 2MFY13 stood at 9.3 percent. “The number break-up reveal that soft numbers is due to subdued numbers from food and housing that cumulatively contribute 64 percent,” viewed the analysts at Topline Reserach. The food inflation rose by 8.1 percent in August compared to last year while housing head rose by 4.4 percent. “These soft numbers attach a lower side bias to our average FY13 inflation forecast range of 10-11 percent,” the analysts said. They maintained the view that these soft inflation numbers could allow the room for the central bank to continue the process of monetary easing. The State Bank in its latest moitary policy decision revised downward, by 1.5 percent, to 10.5 percent the discount rate from the previous 12 percent. STAFF REPORT
1month while 300k tons of fresh import is expected to come by middle of October 2012,” said Topline analyst Farhan Mahmood.
Pakistani stocks hit four-year high Pakistani stocks closed at a four-year high on Friday after investors were encouraged by a slowdown in inflation, dealers said
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KARACHI AGENCIES
The Karachi Stock Exchange (KSE) benchmark 100-share index closed 0.90 percent, or 137.87 points, higher at 15,391.58, on volume of 13.12 million shares. Pakistan’s Consumer Price Index (CPI) rose 9.1 percent in August from a year earlier, the Pakistan Bureau of Statistics said on Friday. The yearon-year rate was 9.60 percent in July. “A further slowdown in inflation numbers enticed investors to take fresh positions,” said Samar Iqbal, a trader at Topline Securities. In the currency market, the Pakistani rupee ended slightly weaker at 94.56/94.61 to the dollar, compared to Thursday’s close of 94.48/94.54. Overnight rates in the money market ended at 10.40 percent compared with 7.50 on Thursday.
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Business 02 CORPORATE CORNER KCCI, CPLC to attend 6th Pakistan SME Conference 2012 on 5th KARACHI: August 31, 2012 – The 6 TH Pakistan SME Conference 2012, with the theme “Engaging SMEs to stabilize the Economy” organized annually by SHAMROCK Conferences International (www.shamrockconferences.net ) will be held on September 5, 2012 at the Marriott Hotel, Karachi. Delegates from Karachi and across the country have confirmed their participation. The heads of Karachi Chamber of Commerce & Industry (KCC & I) and the Citizens’ Police Liaison Committee (CPLC) will also be attending the conference. A number of commercial banks including UBL Ameen, Dubai Islamic Bank and Bank Al-Falah will be speaking on the occasion, and engaging SME stakeholders. PR
Atlas, DENSO ink deal to launch $7.2mn joint venture KARACHI: The Atlas Group and DENSO Corporation (DENSO) Friday singed an agreement to establish a new Joint Venture (JV) in the country to launch a project Atlas Hitec (Pvt.) with an initial combined equity investment of $7.2 million. The agreement will strengthen the already close co-operation between Atlas Group and DENSO with the goal to manufacture quality competitive motorcycle parts in the country. The new company, Atlas Hitec (Private) Limited will be established in September 2012 while Commercial production is projected to start from October 2013. PR
CAA to formulate European regulations on airworthiness KARACHI: A Meeting under the patronage of South Asia Regional Initiative (SARI) was organised at Jinnah I’nal Airport from 28 to 30 August, 2012. The purpose of the Meeting was to formulate Aircraft Airworthiness regulations in line with EASA (European Aviation Safety Agency). The regulations encompassing various facets of airworthiness would not only bring a positive improvement in the aviation safety but would also give acceptance to our aviation maintenance in South Asia. PR
House of Ensemble set to launch their first international store
DUBAI: Following the success of theEnsemble family’s initiatives in Pakistan through their multi brand stores, salon and in house labels,entrepreneurs Zeba, Shezray and Shehrnaz Husainare set to launch their first ever international Ensemble multi brand outlet in Dubai on 06September 2012 at Villa No 259, Al Wasl Road at 6.30 PM. Ensemble Dubai endeavours to include collections from over 50 South Asian designers and to this end will launch with fashion collections and accessories from brands such asBody Focus, Deepak Perwani, Delphi, Fahad Hussayn, Faiza Samee, Gulabo, Honey Waqar, HSY, Krizmah, Lorelai, Maheen Karim, Maheen Khan, Maria Khan, Muse, NasreenShaikh, Nida Azwer, Nikasha, Nilofer Shahid, Nomi Ansari, One by Ensemble, The PinkTree Company, Rabani &Raakha, Rana Noman Haq, Sabyasachi, Sadaf Malaterre, Sana Safinaz, Sania Maskatiya, SanyaMuneer, Shamaeel, ShehlaChatoor, Shehrnaz, Slate by Faiza Samee, Sozankaar, The House of Kamiar Rokni, Umar Sayeed, Wardah Saleem, Zahra Habib and ZarminaMasud Khan. Ensemble Dubai will also retail Ritu Kumar; indeed the first time the designer will be formally present and retailed in Dubai. PR
InDex gAIns 138 PoInts AmID oPtImIsm regArDIng PolIcy rAte cUt KARACHI
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STAFF REPORT
HE bulls stamped their authority on the Karachi stocks market on last working day of the week Friday with benchmark, KSE 100share index gained 137.87 points. The day saw the index closing up by 0.90 percent at 15,391.58 points against 15,253.71 points of Thursday. Pakistan Stocks closed bullish after CPI Inflation for Aug'12 come at 9.05% amid hopes for cut in policy rates. This was stated by Ahsan Mehanti,
Director at Arif Habib Investments Limited. On Friday, the trading volumes at the ready-counter were recorded higher at 242.063 million shares against 223.722 million shares of the previous day. The trading value too increased to Rs 7.845 billion compared to Rs 6.879 billion of the previous session. The intraday high and low, respectively, stood at 15,420.05 and 15,253.71 points. He added that the blue chip stocks in telecom, oil sector led the rally amid interest in third tier stocks on strong valuations leading the index to close near session high. The
oil down in Asia as Fed stimulus hopes dim SINGAPORE AFP
Oil was down in Asia on Friday as hopes that US Federal Reserve chief Ben Bernanke will announce a new economic stimulus package faded, analysts said. New York's main contract, light sweet crude for delivery in October retreated seven cents to $94.55 a barrel and Brent North Sea crude for October delivery fell 21 cents to $112.44. Traders were not holding much hope that Bernanke, due to speak Friday evening at Jackson Hole, Wyoming, would announce fresh stimulus measures, IG Markets said in a market com-
million, 17.212 million, 12.335 million and 10.055 million shares respectively. Mehanti said that the renewed foreign interest, higher global commodities affected the sentiments despite concerns for security issues in the city. On the future market, the turnover increased by over seven million shares to 24.728 million against 17.514 million shares of Thursday. The Colgate Palmolive and Bata Pakistan Limited, up Rs 55.00 and Rs 52.89, led highest price gainers while, Nestle Pakistan Limited and Mithchells Fruit, down Rs 50.00 and Rs 13.75 respectively, led the losers.
market capitalization increased to Rs 3.919 trillion from Rs 3.885 trillion a day earlier. Of the total 319 traded scrips, 174 gained, 126 lost and 19 finished as unchanged. The free-float KSE-30 index added 159.51 points to close at 13,229.93 points against the previous 13,070.42 points. WorldCall Telecom was the day’s volume leader counting its traded shares at 30.562 million with the opening and closing rates standing at Rs 2.89 and Rs 3.29, followed by P.T.C.L.A, Telecard Limited, Engro Corporation and Jahangir Siddiqui Company with turnover of 18.423
mentary. "On the eve of the long-waited, highly-anticipated and much-hyped Jackson Hole symposium the watchword was defence as traders reduced their risks," it said. "High hopes of QE3 have been edging down this week as US economic data continues to show mild strengthening and less need for central bank intervention," it added. US economic data Thursday showed consumer spending rebounding in July while initial jobless claims held steady, indicating the economy is stabilising and strengthening the argument that a fresh stimulus is not needed for now.
SBP injectS RS 379.850 Billion KARACHI APP
State Bank of Pakistan (SBP) in its reverse repo open market operation in treasury bills and Pakistan Investment Bonds has injected Rs 379.850 billion in the banking system. According to SBP here Friday, the offered amount was Rs 411.850 billion while the rate of return for 7-day declined to 9.89 percent per annum.
MAJOR GAINERS COMPANY Colgate Palmolive Bata (Pak) Limited Rafhan MaizeXD Exide (PAK) National Foods
OPEN 1300.00 1058.11 3977.99 309.38 224.00
HIGH 1365.00 1111.01 4174.00 324.84 235.20
LOW 1300.00 1057.00 3800.00 320.00 225.00
CLOSE CHANGE 1355.00 55.00 1111.00 52.89 4008.80 30.81 324.84 15.46 234.16 10.16
TURNOVER 1,500 2,050 100 20,800 16,200
4140.00 350.00 138.70 283.99 225.79
4000.00 346.00 138.70 273.15 218.00
4000.00 346.25 138.70 274.50 221.67
-50.00 -13.75 -7.30 -7.10 -4.12
1,100 500 500 37,800 700
2.93 17.50 2.75 100.60 14.40
3.29 18.04 2.91 105.16 14.58
0.40 1.00 0.16 4.04 -0.17
30,562,000 18,423,000 17,212,000 12,335,900 10,055,500
MAJOR LOSERS
NOT-SO-PROMISING BEGINNINGS KARACHI STAFF REPORT
The escalation of 6 percent month-onmonth (MoM) in the price crude oil (Arab light) coupled with amplification of 12 percent MoM in volumetric terms under the head of petroleum group imports during July, have propelled the import payments under the said head by 6 percent. In addition to that, import payments of foods group have also propped up by 5 percent as compared to Jun-12, primarily due to massive 73 percent or by $34mn in monetary terms, additional payments under the sub head of other foods items. Despite the above mentioned rise in import payments, cumulative import payments of the country has gone southwards by 5 percent MoM. This an InvestCap Research report said was mainly due to decrease in the import payments made under the head of metal group, in which prime decline was experience under the sub group of Iron and Steel (payments slashed by 24 percent MoM, while the quantity imported of the commodity fal-
tering by 44 percent MoM during Jul12). Moreover, the report said, this cause was further supported by decline of 15 percent MoM felt by the Machinery group import payments. Impressive growth witnessed in export receipts of other manufactured items played massive part in limiting the fall in cumulative export receipts of the country to a single percent in comparison to the month of Jun-12. Some help in the said cause was provided by the textile group as well, as the receipts under the mentioned head grew by meager 2 percentMoM. However, decline in export of petroleum products (due to political tensions with the US) did put some pressure on the export receipts. The government is aiming to import additional 200k tons of urea while 300k tons has already been imported. The import payments of Soyabean oil that was imported during Jul12 is still to be made. In addition to that, oil prices have escalated by alarming 9 percent MoM during Aug-11 and the growth is expected to be witnessed in the demand of the commodity on the back of additional demand coming in from power producers.
Nestle Pakistan Ltd. 4050.00 Mithchells Fruit 360.00 Ismail Industr 146.00 Indus Motor Company 281.60 Sanofi-Aventis Pak 225.79
VOLUME LEADERS WorldCall Telecom P.T.C.L.A Telecard Limited Engro Corporation Jah.Sidd. Co.
2.89 17.04 2.75 101.12 14.75
3.47 18.04 3.15 106.00 14.99
INTERBANK RATES US Dollar UK Pound Japanese Yen Euro
94.4934 149.3847 1.2031 118.5987
DOLLAR EAST BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
94.50 118.13 148.79 1.1929 94.71 11.98 25.58 25.04 96.56
95.00 119.34 150.28 1.2048 96.16 12.17 25.81 25.26 98.98
Pakistani businessman honored KARACHI: Renowned Businessman Mr. Irshad R Adamjee has been nominated for the prestigious “THAILAND’S BEST FRIEND AWARD” and will be presented the Award by the Prime Minister of Thailand during a colorful two day ceremony in Bangkok in September. Irshad R Adamjee will be the only Second Pakistani to receive this special award from the Thai Government after Mr. Arif Suleman who was the first Pakistani ever to be awarded this in 2004. PR
Etihad Airways, the national airline of United Arab Emirates in collaboration with Abacus distribution system pvt. Ltd., has recently announced the winner of their joint promotion – where they gave out a fully paid vacation to UAE to the highest selling travel agency for Europe & Africa. naveed Ahmed, sales Manager south Pakistan Etihad Airways, Maria Khan, Etihad Airways and sam Wong. General Manager, Abacus distribution are giving away the prize to Adnan Zainuddin Darbar from AEG travels and Mr. Muhammad Zuhaib from Bukhari travel. PR
the group of Edward Birgells Deputy Mission & Director UsAID, sharmaine Hidayatullah and shaheen Zamir, and others on the occasion of Certificate Distribution Ceremony of First Women Bank Ltd —Gender Equity Program supported by UsAID. PR
saturday, 1 september, 2012