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increased raw material supply boosts Psm output to 38pc KARACHI: The uninterrupted arrival of raw material has increased the production of Pakistan Steel Mills (PSM) to 38 percent, said a spokesman of PSM. He said the coal and iron ore ships created an improved stock position of PSM raw materials. “This resulted in a good increase in production activity of PSM as it crossed 30 percent production and all praise to Allah (SWT) yesterday (Feb 28) the PSM achieved production at 37.7%,” he said. The PSM management is trying to reach at 60% production level in next few months if the required facilities were provided on timely. “The PSM ensures to become a profitable entity by the grace of Allah (SWT) within a few months,” the spokesman said. STAFF REPORT
Pol removed from DFc, csF contract trading list
Banks should help unleash SMEs potential to lift economy. – APNA Bank Chairman Mian Shahid
Political consensus on Pursuing liberal economic Policies: Pm AshrAf directs Ministry of WAter And PoWer to constAntly Monitor fuel AvAilAbility And stocks situAtion in therMAl PoWer PlAnts so thAt they reMAin oPerAtive ISLAMABAD
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RIME Minister Raja Pervez Ashraf has said that political consensus exists in Pakistan on pursuing liberal economic policies. He was addressing a delegation of Korean investors at Prime Minister House. He said all capital goods‚ machinery and equipment enjoy one-time exemption from customs duties under Special Economic Zone Act. Besides‚ the investors
Cement profits tripled in first half of FY13 KARACHI STAFF REPORT
KARACHI: The front regulators at Karachi Stock Exchange (KSE) have removed the Pakistan Oilfiled Limited (POL) from the list of eligible securities for contract trading under Deliverable Futures Contract (DFC) and Cash-Settled Futures (CSF) markets. The oil giant has attracted the ire of regulators for its failure to meet the uniform criteria under which the firms listed on DFC and CSF markets must maintain on average 0.25 percent of the total average volume on the ready market of 100 selected scrips. “Please note that (the) above security would be excluded from list of eligible securities for trading in DFC and CSF markets,” said a KSE notice issued here Friday. The POL’s removal would take effect from the opening of DFC of June 2013 (Dec-June 2013) and CSF of July 2013 (CSF July 2013) contract, the notice said. STAFF REPORT
will be exempted from Income Tax for 10 years. The prime minister expressed satisfaction that bilateral trade between Pakistan and Korea has steadily increased. However‚ he said trade between the two countries does not commensurate with the potential. He said Pakistan can provide low-cost and skilled labour to the Korean industry. He hoped that Pakistani businessmen would benefit from their Korean counterparts and learn business management‚ techniques and processes to put Pakistan on the trajectory of sustainable economic development. Speaking on the occasion, Kim Chang
Gyou, Sr. MD Lotte Chemical Corporation who was leading the delegation thanked the Prime Minister for inviting them to Prime Minister’s House. Optimum power generation: Meanwhile, Prime Minister Ashraf has directed officials concerned to ensure optimum generation of electricity. He was presiding over a high-level meeting at P r i m e Minister House to review t h e en-
Ever since hitting rock bottom in FY11, the country’s cement sector has witnessed a reversal in fortunes, said market analysts. “Improved margin scenario backed by higher retention prices and lower coal cost coupled with reduced interest rate environment reflected positively on sector’s profitability,” said the analyst at Tolpine Research. During 1HFY13, they said, the sector posted profit growth of 209% to Rs16.4bn as against Rs5.3bn during the same period last year. Our sample includes 15 companies that represents 95% of listed cement companies’ market cap. During the period under review, cement sector posted topline of Rs82.6bn as against Rs68.0bn in the same period last year, depicting growth of 21%. The prime growth driver remained 17% escalation in price of the commodity as estimated net retention prices rose to Rs310 per bag verses Rs266 in 1HFY12. In addition, 4% volumetric variance also played its due role with high margin domestic dispatches rising by 10%. Exports on the other hand declined by 7%.
Support to profitability also came from 24% decline in coal prices that account 40% for sector’s production cost. Subsequently, gross margins improved by significant 9pps to 36% in 1HFY13 as against 27% in same period last year. Lastly, reduced interest rate also boded well for sector’s profitability. As 450bps reduction in the policy rate by central bank from June 2011 culminated into 32% reduction in the financial charges of the sector to Rs4.2bn. Reduction in financial charges coupled with follow through impact of topline growth has strengthened sector’s interest coverage ratio to 6x. Among all participants, big players like DGKC, BWCL and LUCK stood out, having cumulative share of 57% of sector’s bottomline. Profitably of DGKC grew by 128% or Rs1.6bn, while BWCL post bottom-line growth of 202% or Rs1.4bn and LUCK’s profits were up by 42% or Rs1.2bn. However, MLCF and FCCL remained the prime performers successfully turned their respective losses of Rs223mn and Rs50mn during same previous year into profits of Rs1.4bn and Rs0.9bn respectively during 1HFY13.
ergy situation in the country. The meeting was informed that the cost of electricity has increased due to its dependence on generation from oil. The meeting was told that the government has injected a sum of Rs. 1.4 Trillion in the energy sector in the last five years to subsidize electricity and ensure that that the common man is not burdened by rising electricity prices. The prime minister directed the Ministry of water and Power to ensure optimum generation so that power supply to consumer remains unaffected. The PM also directed the Ministry of Water and Power to constantly monitor the fuel availability and stocks situation in thermal power plants so that they remain operative. In this connection, he directed Ministry of Water and Power to closely coordinate with Ministry of Petroleum and Natural Resources and Ministry of Finance. The meeting was also informed that an interim report on the reasons behind the power break-down of February 25 will be submitted to the Prime Minister on Monday.
Ptcl launches smart tV app for eVo customers
ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has launched a standalone application enabling its EVO customers to access digital television service on their PCs, laptops and smartphones. The unique service of PTCL Smart TV PC application has brought Pakistan in the list of a few countries across the globe, where digital TV services are accessible on laptops, PCs and Smartphones. With this PTCL offer, Smart TVPC application allows customers to be more interactive and more in control with their TV service as compared to conventional TV broadcast or cable TV. The PTCL Smart TV application enables its viewers to watch content of last 7 Days of the available 12 TV channels. It also allows the viewers to record the TV programs on their local storage. Omar Khalid, PTCL Executive Vice President (EVP) Wireless Business, said “PTCL Smart TV application will enable its EVO customers to experience multi-screen viewing and uninterruptable rich live content on their PC screens.” “Customers can access 12 TV channels through EVO Wingle, EVO Dongle, EVO Nitro, EVO Cloud and EVO Tab” Omar added. NNI
KSE offers monthly cash rewards for best performing market makers KARACHI ISMAIL DILAWAR
To lure the TRECH holding members towards market making the Karachi Stock Exchange (KSE) has announced a cash reward ranging from Rs 10,000 to Rs 100,000 to be paid by the end of every month to the best performing market makers. “The Exchange is now offering a financial attractive incentive scheme for a limited time,” said the front regulators at KSE in a notice while inviting the all TRECH holding members to apply for becoming KSE’s designated market makers. The KSE invited applications from the market participants and TREC hold-
ing members for becoming market makers in any of the eligible instruments in Stock Index or Cash Settled Single Stock Futures. Under the Exchange’s incentive scheme cash rewards would be paid to the KSE-approved market makers on the basis of their Trade Execution Commitment (TEC) implying the number of open contracts at the end of every day during the month. The least number of unique clients or UINs set ranges from 10 to 100 for a month. The market makers executing 90 to 99 trade commitments with 10 clients or UINs would get Rs 10,000 while those ensuring 900 and above TECs would be rewarded with Rs 100,000. “This incentive scheme is limited
and is offered on a first come first serve basis for each of Single Stock Cash Settled Futures Scrip or the Index Futures,” the KSE notice said. Adding during the tenure the scheme, the counter already chosen and activated by a KSE approved market maker would not be available to any other TREC holder under the scheme in question for the duration of scheme. Enticing the members to apply for the market making job, the KSE underlined a number of benefits the members would be getting out of becoming the market makers. “This presents a great opportunity to TREC holders to broaden their product range and client base to generate additional brokerage income beyond tradi-
tional business,” it said. It said one of the basic benefits for market maker was that the Exchange would forgo its transaction fee (LAGA) for it besides passing on the transaction fee obtained from the counterpart to the market maker for an initial period of time, e.g. 1 year. “Besides the direct monetary benefit from the above, the market maker also enables his clients to hedge or take positions (long + short) in the Single Stock Cash Settled and Stock Index Future Contracts,” it added. Dwelling on why the KSE needed market makers, the Exchange said the activation of market makers would generate liquidity and depth for the bourse thereby facilitating smooth entry and exit while optimizing impact cost.
Setting March 20 as a deadline for submission of the Expressions of Interest, the KSE also attached with the notice a list of the eligible scrips for market making in the Cash Settled Futures that includes Fauji Fertilizer, OGCL, Pakistan Oilfield Limited, Pak Petroleum, MCB Bank, Engro, Lucky Cement, DG Khan Cement, PSO, NBP, Engro Foods, Hub Power, Attock Refinery, Nishat Mills, UBL, FFBL, FATIMA, PTC, Bank Al-Habib, Bank Al-Falah, Adamjee Insurance, Arif Habib Corp, KAPCO, Askari Bank, Dawood Hercules, FCCL, LOTPTA, CHCC, PAKRI, NCL, NCPL, NPL and NETSOL. The eligible indices listed include KSE-30, BKTI and OGTI.
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POL price hike will halt industrial growth, destroy economy. – RCCI President Manzar Khurshid Sheikh Higher fuel prices to increase cost of production: FPcci LAHORE: Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has stated that increased prices of petroleum products would push cost of production and eventually lead to cuts in export orders. President FPCCI,Fazal Qadir Sherani said that higher prices of petroleum products have affected the industrial sector, especially the manufacturers, already hit by high input costs. He said that in addition to this, gas/power load shedding as well as weak Pak rupee against dollar is also affecting the work. “All this would hamper industrial production in the country,” he said. Vice President SAARC Chamber of Commerce and Industry and veteran trade leader Iftikhar Ali Malik said that the industry is already facing energy crisis, and higher electricity tariffs and prices of petroleum at this critical juncture would squeeze the liquidity. He said that high tariff of power, gas and petroleum have created another liquidity crunch for the importers of industrial raw material. He suggested that keeping in view the business scenario of the world, the mark up rate by banks be reduced to provide solace to hard hit industry. He called for immediate measures in the interest of national industry. APP industries Are AlreAdy fAcing energy crisis And higher electricity tAriffs And Prices of PetroleuM At this criticAl juncture Would squeeze the liquidity. iftikhAr Ali MAlik
icci demands new industrial estate for Potohar region ISLAMABAD
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UE to saturation of current industrial estates and nonavailability of a new industrial estate in Islamabad, many investors of Potohar region were shifting to other places. Therefore, Punjab Industrial Estate should provide its support for setting up of a new industrial estate in this region. This was observed by Zafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry while exchanging views with Maj. Gen. (Retd) Javed Iqbal, CEO of Punjab Industrial Estates Development and Management Company during his visit to ICCI. He suggested Nila Dulla Interchange near Chakri on motorway in District Chakwal as the best place for setting up new industrial estate as this area offered land at a very affordable cost. He said the industrial estate would bring prosperity, reduce poverty and create plenty of job opportunities for the people of this backward area. He said ICCI was already working for industrial estate in this area and Punjab Industrial Estates should collaborate with us for early execution of this project. Bakhtawari said that Potohar Region had neither agriculture nor any other natural resources
buSinESS B Saturday, 2 February, 2013
Major Gainers COMPANY unilever Pak indus dyeing sd colgate Palmolive sanofi-Aventis Pak indus Motor co
OPEN 10450.00 440.00 1600.00 357.00 295.00
HIGH 10800.00 461.99 1620.00 374.84 309.75
LOW 10750.00 459.00 1600.00 374.84 294.00
CLOSE 10750.00 460.50 1620.00 374.84 307.32
CHANGE 300.00 20.50 20.00 17.84 12.32
TURNOVER 80 200 150 200 57,700
912.00 325.00 526.66 220.00 160.50
912.00 314.00 515.00 209.00 153.90
912.00 314.00 515.00 209.60 154.63
-48.00 -12.90 -10.27 -9.34 -7.37
300 300 114,300 36,300 34,500
8.79 9.40 23.72 7.45 7.32
7.85 8.30 22.93 6.81 6.35
8.54 8.36 23.32 6.97 7.09
0.62 -0.40 -0.12 -0.44 0.77
113,685,500 26,788,000 23,160,500 20,368,000 19,789,500
Major Losers Wyeth Pak limited Mithchellsfruit XdXb Millat tractors XdXb Abbott lab. Murree brewery
960.00 326.90 525.27 218.94 162.00
Volume Leaders fauji cement Azgard nine P.t.c.l.A telecard limited P.i.A.c.(A) while the population of twin cities was growing fast. Thus encouraging industrialization in this area was the best option to create jobs and promote economic activities. He said Potohar Region also offered easy access to Afghanistan, China and Central Asian States and industrial estate in this area would promote exports of Pakistan to these countries. Maj Gen (r) Javed Iqbal, CEO, Punjab Industrial Estates (PIE) briefed business community about the PIE role. He said PIE was focused on developing a chain of industrial estates by capitalizing on proposed & existing industrial and agricultural strengths of Punjab and Pakistan. He said industrialization was the future of Pakistan and government should give top priority to addressing energy problems for promotion of industry in the country.
7.92 8.76 23.44 7.41 6.32
interbank Rates usd gbP jPy euro
Pkr 98.2393 Pkr 147.7127 Pkr 1.0572 Pkr 128.1238
Forex BUY us dollar euro great britain Pound japanese yen canadian dollar hong kong dollar uAe dirham saudi riyal
99.10 128.29 148.18 1.0572 95.06 12.53 26.90 26.38
SELL 99.35 128.49 148.38 1.0684 96.75 12.79 27.15 26.60
CORPORATE CORNER that the bank does not require any additional software or technology and the solution is compatible across all wireless carriers. PR
Hbl approves interim dividend
RAWALPINDI: Ole E Moesb, Danish Ambassador in Pakistan, being received by Sheharyar Mirza, General Manager Pearl Continental Hotel Rawalpindi, upon his arrival. PR
KARACHI: HBL Asset Management Limited approves 6th Interim dividend for HBL Money Market Fund and HBL Islamic Money Market Fund for the year ending June 30, 2013. We are pleased to announce that the Chief Executive, under the authority of the Board of Directors of HBL Asset Management Limited, has approved a dividend payout of Rs 0.59 per unit from HBL Money Market Fund and Rs 0.52 per unit from HBL Islamic Money Market Fund for the year ending June 30, 2013. Unit Holders who have opted for cash payout will receive cash dividend while those who have opted for bonus will be allocated bonus units in accordance with their entitlement. PR
mysolutions to launch next generation shared mobile payments network lucky cement wins national csr award
KARACHI: My Solutions, a technology firm servicing financial institutions has signed an agreement with Activa Financial Ltd., a leading mobile banking and payments service provider. The agreement will allow My Solutions to offer Activa’s mobile banking platform “Nexus360” to ALL domestic and foreign banks and financial institutions throughout Pakistan. Nexus360 is a robust, cost efficient, secure, resilient, and scalable mobile banking solution. The solution utilizes existing industry platforms and mobile carrier infrastructures to create a collaborative “network” that brings together financial institutions, mobile carriers, payments networks and billers into one mutually beneficial environment. Therefore time-tomarket and cost involved in launching a mobile banking service is minimized. A key advantage is
KARACHI: Lucky Cement won the 7th CSR National Award in the category of “Supporting and improving the education” in Pakistan. The CSR Association publicly announced the award at a ceremony held at Indus Valley School, Karachi. The ceremony was attended by representatives from different organizations including philanthropists, senior executives, CEOs of participating companies, as well as officials from United Nations Organization. Setting itself apart from other programs in the region, the Pakistan National CSR Awards targeted the core of CSR practice rather than individual projects. 19 companies were shortlisted for evaluation from the 104 entries by an elite panel of experts which this year included
Amir Adnan andDr. Abdul Bari Khan among the 12strong international panel. Lucky Cement Limited was lauded for its efforts in rendering support to a large number of educational institutes in the country including Institute of Business Management (IoBM), Institute of Business Administration (IBA), Lahore University of Management Sciences (LUMS), Gomal University, Indus Valley School (IVS) and Hub School. The company has also partnered with NGOs working in the under-privileged areas like Concern for Children, Deaf Reach School and LABARD. PR
rory mcilroy signs with bose corporation KARACHI: Bose Corporation announced at The Honda Classic in Palm Beach Gardens, Florida that Rory McIlroy will be a Global Brand Ambassador for the company’s headphones, portable speakers, home and automotive systems. McIlroy joins Bose in a multi-year agreement as he begins 2013 as the number one golfer in the world. A lifelong music lover, McIlroy has been a Bose customer for years. “I’ve always chosen Bose because I’ve always wanted the best sound quality I could get,” said
McIlroy. “Bose products are different. And Bose is different. They work hard at their innovations, they aren’t conventional, and they’re committed to doing things that haven’t been done before, just like I am.” PR
german solar company investing in Pakistan ISLAMABAD: Representatives of the German solar company DEQ-SYS GmbH, a subsidiary of Energiequelle GmbH, which is based in the state ofBrandenburg, visited Lahore and Islamabad from 23 February to 1 March 2013. The company designs, plans and installs turnkey wind turbines, biogas systems, solar power plants and substations for grid feeding ecofriendly power. After visiting Lahore, meeting with stakeholders of the Punjab Government and signing a MOU over 400 MW solar energy, the delegation visited the Embassy, exchanged views with PPIB (Public Power and Infrastructure Board), Germany’s Development Agency GIZ and KfW Development Bank as well as with other German companies being active in the renewable energy sector. PR
samsung inaugurates brand shop at thokar niaz baig LAHORE: Samsung Electronics, a market leader and award-winning innovator in consumer electronics, and telecommunications, is consistently expanding its network of ‘Brand Shops’ in numerous cities across Pakistan. A special inauguration ceremony was held on 1st March, 2013, at a new Brand Shop, established recently at the Metro Cash & Carry Market in Thokar Niaz Baig area of Lahore. Managing Director of Samsung EC Pakistan Pvt. Ltd. - Mr. John Park inaugurated the shop and remarked; “The Samsung Brand Shop is a revolutionary business model for the Samsung Retail Brand, from where all retailers can learn and emulate to build a consistent branding approach. The new brand shop will provide world-class retail experiences to the consumers.” PR