profitepaper pakistantoday 02nd october, 2012

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Tuesday, 2 October, 2012

5 down, quite a few more to go ISLAMABAD

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ONLINE

AKISTAN on Monday paid off the fifth installment worth $105 million to the International Monetary Fund (IMF) which took the total repaid amount to $1.395 billion, an official of State Bank has said.

On August 24 last month Pakistan had paid the fourth tranche of the loan that totalled $ 397.2 million to the IMF while it had paid $ 392 million in May and in February this year the country repaid the first installment of $ 401 million.

The official said $1.18 billion amount received in Coalition Support Fund (CSF) from the US had given some space to the country’s economic trouble shooter to repay

installments to the IMF on monthly bases. The official said the country’s foreign exchange reserves will continue to face pressure due to re-payment of IMF loans in the next more than three years as Pakistan is likely to go to the International Monetary Fund (IMF) in fresh loan in current fiscal year 2012-13 to seek loan for the retirement of IMF’s Stand-by Arrangement (SBA) facility.

Despite depressive economic situation of the country, the government had paid back total amount of $1.2 billion to International Monetary Fund during last fiscal year 2011-12 from foreign currency reserves held by the State Bank of Pakistan (SBP).

According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3

billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7 billion could not pay to Pakistan by IMF foll o w i n g Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco.

Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on Sept e m b e r 30,2011.

Pak repays $105m worth fifth installment to IMF

NNI

Prime Minister Raja Pervez Ashraf has said that Pakistan attaches great importance to its relations with Russian Federation and is keen to intensify economic relations between the two countries.

In a meeting with Russian Delegation in Islamabad on Monday‚ the Prime Minister said the growing

economic cooperation between the two countries in various fields has given new impetus to the bilateral relations.

The Prime Minister noted with satisfaction that MOU for the expansion of Pakistan Steel Mills has been approved by the Cabinet and ready for signature by both the sides. The Prime Minister also appreciated the cooperation being extended by Russian Federation for the conversion of Jamshoro and Muzafargarh Thermal power plants from furnace oil to coal.

The Prime Minister urged on the need to facilitate visas to Pakistani Busi-

ISLAMABAD ONLINE

The Afghan Government has agreed to issue multiple entry visas for six month to Pakistani Businessmen who intend to visit Afghanistan thus accepting a long awaited demand of Pakistani business community. Businessmen from Pakistan were issued only single entry visa which was causing great hardship. During recent visit to Kabul in July, 2012, in his meeting with Afghan President, the Prime Minister of Pakistan had raised this issue and the Afghan President had agreed and issued directives. In pursuance to the discussion between the leaders of both countries, and on the basis of Afghan President, directives, the Afghan Embassy has communicated their decision to issue multiple entry visas for six months to Pakistani businessmen. The step would greatly facilitate the trading community of Pakistan in doing business with Afghanistan. It would further strengthen existing brotherly relations enjoyed by the two countries especially in the trade and economic spheres.

PM still hopeful of some Russian love ISLAMABAD

Afghanistan to issue 6-month multiple entry visas to businessmen

SECP extends CRS, CEES deadlines ness Community with a view to enhance Business to Business Contacts‚ which will have a positive impact on the volume of trade between the two sides. The Prime Minister was informed that text of the MOU regarding Cooperation in Railways has been approved by Ministry of Railways of Pakistan and Transmashholdings Russia.

The Prime Minister was further informed that besides Energy‚ transportation and Steel Sectors‚ the State Corporation of Russian Technologies are also keen to explore more opportunities of investment in Pakistan.

ISLAMABAD APP

The Securities and Exchange Commission of Pakistan (SECP) has extended the validity period of the Companies Regularization Scheme (CRS) and Company Easy Exit Scheme (CEES), up to October 31, 2012. It may be noted that this is the last and final extension and any request for further extension shall not be entertained, says a statement issued by the Commission here today. The fee structure will remain the same as was applicable in the month of September for the schemes. Defaulter/defunct companies are advised to benefit from the schemes within the extended time, by either regularizing through filing of their overdue returns under the CRS or strike their companies off the register under the CEES.

Karachi Stock Exchange all set to free-float to the top Benchmark KSE 100 index recomposed on free-float methodology KARACHI ISMAIL DILAWAR

In the wake of demutualization regime at the country’s bourses the front regulators at Karachi Stock Exchange (KSE) have decided to recompose the benchmark KSE-100 index on the basis of free-float market capitalization method.

The move is being carried out on the basis of recommendations extended by the KSE’s Index Expert Committee. According to the Exchange, the Board of Directors of the KSE took the decision in its meeting held on the 24th of April this year and had notified the same through a notice, KSE/N-2968, on June 15.

The Board had also decided that the rules for composition and re-composition of the index based on free-float methodology shall remain unchanged other than selection of the companies on the basis of free-float market capitalization as against total market capitalization.

The decision was notified vide Notice No. KSE/N-2968 dated June 15, 2012. In line with the above, the exercise of composition of companies in the KSE-100 index on the basis of free-float market capitalization has been carried out as per the closing prices of shares as on August 31 (2012).

As a result, 32 firms have been included in the index on the basis of sector rule, means the largest free-float market capitalization companies of the sector while the remaining 68 companies have been selected on the basis of capitalization rule: largest free-float market capitalization companies in descending order. In aggregate 16 companies would be affected due to the said migration of KSE-100 index from total market capitalization to free-float market capitalization. The incoming firms are: International Industries, Cherat Cement Company, Lafarge Pakistan Cement, Agriauto Industries, National Foods, Azgard Nine, Nishat (Chunian), Hum Network, Kohinoor Energy, Bank of Khyber, Bank of Punjab, Bankislami Pakistan, JS Bank, Allied Rental Modaraba, JS Growth Fund and TPL Trakker.

The outgoing companies are: Byco Petroleum,

Agritech, Engro Polymer & Chemicals, Bestway Cement, Al-Ghazi Tractors, Atlas Honda, Tandlianwala Sugar Mills, Unilever Pakistan Foods, Ibrahim Fibres, Indus Dyeing & Manufacturing Co., Philip Morris (Pakistan), Media Times, Dreamworld, P. I. A. C. “A” Silkbank and East West Insurance Company. According to Haroon Askari, deputy managing director KSE, the new index would take effect from the 15th of this month.

The paid up capital of the 100 companies included in the new index stands at Rs 717,351.736 while the number of free-float shares total at 18,593,062,201. The fresh changes would see the total free-float market capital amount to Rs 885,813,471, 657. Meanwhile, the KSE notified that its Board of Directors had, in its September 27th meeting, decided to discontinue contribution to the Clearing House Protection Fund (CHPF) by the Exchange’s members from this month, October 1st.

Also, the KSE Board decided to slash the

“LAGA”, the charges the brokers and TREC holders pay to the Exchange, to Rs 2.46 and Rs 3.44 per transaction of Rs 100,000 in the ready and futures/off lots markets, respectively.

Previously, the KSE used to charge the brokers

and TREC holders with Rs 2.68 for transactions under ready market and Rs 3.75 for futures and off lots markets transactions. Under the new changes, the 0.22 paisa and 0.31 paisa that used to go to the CHPF has been abolished.

KSE-100 yields 12pc during 1QFY13 KARACHI: After having witnessed a handsome growth of 6 percent during the month of August the market took a breather in Sep-12 and went up by mere 1.3 percentMoM to reach at 15,444 levels. During the month, the market touched the highest level of 15,588pts, which happens to be 54 months high, said the analysts at InvestCap Research. However, the index failed to cross the all time high of 15,676pts and was down by 144pts from the above mentioned high of the month.

Amongst the historical monthly average returns for the month of Sep, the KSE100 remained low against its decade-average return of 2.5 percent for the month.

The average daily volumes of the market also remained subdued during the month and reached at 146mn shares, down by 6.4 percentMoM as against 156mn shares recorded in the previous month. “The reason for stagnant behavior of the market during the said month was the conclusion of corporate results season for the period ended June coupled with uncertainty on relationship between the Gov’t and the judiciary which forced investors to adopt to a cautious stance and as a result market behavior remained sluggish during Sep-12,” viewed Mazhar A. Sabir, an analayst at InvestCap Reserach. On the other hand, he said, the market surged by 11.9 percent during 1QFY13, while on cumulative basis the market yielded superb 36 percent gain on year to date basis. The average return of the

regional peer group stood at 5 percentMoM as against the benchmark KSE-100 index, as the latter inched up by mere 0.36 percentMoM (based on market Cap in USD) in Sep-12, whereas India yielded highest return of 13 percentMoM. On foreign inflow front, the FIPI in Asia pacific region stood at USD9.8bn with India achieving highest inflow of USD3.6bn during the month, followed by South Korea and Taiwan as they realized inflows of USD3.0bn and 2.05bn respectively.

Pakistan on the other hand, received relatively low inflow of USD12mn during the month. However, the benchmark KSE-100 managed to secure position amongst top-5 regional indices on the basis of YTD growth (29 percent in USD terms), while beating MSCI World Index coupled with Emerging markets i.e.

China, Taiwan, and Frontier Markets i.e. Vietnam and Sri Lanka. In 1QFY13, the KSE-100 sustained amongst the top-ten regional equities. Going forward, with the expectation of another rate cut in discount rate along with recently converted indices into free float based from market capitalization based seem positive steps for strengthen for the market. On the flipside, imbalances of macroeconomic indicators of the country coupled with uncertainty on political front, as the next elections are on the card which is expected to remain a hurdle for better market performance. STAFF REPORT

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And it’s back on the rise…

Business 02

CPI-based inflation up 0.79% in September ISLAMABAD

SCCI stamped!

SIALKOT APP

Pakistan Post authorities have issued a stamp of Rs 8 to mark 30year services of the Sialkot Chamber of Commerce and Industry (SCCI) for enhancing the trade volume and face-lifting of Sialkot.

This was revealed by President Sialkot Chamber of Commerce and Industry (SCCI) Naeem Anwar Qureshi while addressing a news conference on Monday. About 500,000 stamps have been issued

by Pakistan Post authorities, he added. The SCCI president said that the stamp was an acknowledgment of services of the Sialkot Chamber of Commerce and Industry and an honour for the business community and people of Sialkot. He thanked the government and Pakistan Post authorities for bringing out the commemorating stamp.

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APP

HE monthly inflation based on Consumer Price Index (CPI) during month of September 2012 has registered an increase of 0.79 per cent over August, 2012.

According to the data revealed by Pakistan Bureau of Statistics (PBS), the CPI inflation, witnessed an increase of 8.79 percent on year-on-year basis in September 2012 as compared to 9.1 percent in the previous month and 10.5 percent in September 2011.

The PBS collects the retail and wholesale price and computes the consumer price index on monthly basis and sensitive price index on weekly basis. In July 2012, the Wholesale Price Index (WPI) inflation on YoY basis increased to 7.8 percent in September 2012 as compared with 7.7 percent a month earlier and 17 percent in September 2011.

The WPI inflation on month on month basis increased by 0.3 percent in September 2012 as compared to an increase of 1 percent a month earlier and 0.2 percent in September 2011. During the month of September 2012 over September 2011, the trimmed or core inflation increased by 10.4 percent.

Core Trimmed inflation has increased by 0.5 percent on MoM basis in September 2012 as compared to 0.4 percent in August 2012. The Core in-

flation measured by non-food non-energy CPI (Core NFNE) increased by 10.4 percent in September 2012 as compared to 10.8 percent in August 2012 (YoY) and by 10.6 percent in September 2011. Core NFNE inflation on MoM basis increased by 0.4 percent in September 2012 as compared to 0.3 percent a month earlier and 0.7 percent in September 2011.

The items, which witnessed decrease in their prices during the month include chicken (15.46%), tomatoes (14.33%), fresh fruits (13.02%), pulse moong (2.34%), sugar (1.12%), dry fruits (1.1%) gram whole (0.55%). The items, which recorded increase in their prices during the month of September included fresh vegetables (23.23%), onions (13.77%), eggs (12.08%), wheat flour (5.72%), wheat (4.98%), wheat p r o d u c t (3.85%), potatoes (2.24%), nimco (1.55%), rice (1.22%) cereals (1.15%) and meat (1.04%).

Major Gainers OPEN COMPANY UniLever Pak 9700.00 Nestle Pakistan Ltd. 4200.00 Colgate PalmolivXDXB1150.00 Shezan Inter.

286.62 Wyeth Pak Limited 850.00

LAHORE: Wateen Telecom Pakistan’s leading converged communications service provider, in its efforts to reshape its consumer brand and becoming the consumer’s digital life partner through innovative services, has been recognized with Cisco Customer Satisfaction Excellence award. Wateen won this award for the second time because of its exceptional level of customer service level during the last two quarters. Customer Satisfaction Excellence is the highest distinction a partner can achieve within the Cisco Channel Partner Program. Mr. Naeem Zamindar, CEO Wateen Telecom, in a message to the employees stated, “This achievement further confirms Wateen’s focus on customer centricity and keeping our customers at the center of our thought process while dealing with all environmental and economic challenges.

As a Cisco Gold Partner, we are committed to the success of our customers and value our relationship with Cisco in continuing to deliver the highest quality solutions, products, and services.” PRESS RELEASE

THI celebrates World Heart Day 2012 KARACHI: Like every year, THI on commemoration of World Heart Day, again took initiative to contribute in spreading awareness about prevention of Heart Diseases. Celebrating World Heart Day 2012, themed “One World, One Home, One Heart”, Tabba Heart Institute (THI) organized a series of Heart Health Awareness activities from Sunday, September 23, to Saturday, September 29, 2012. The activities included Assessment Camp at Metro Cash and Carry, Lectures, and a Awareness Session for THI staff and general public at different places like Schools, Community Centre and THI Auditorium. PRESS RELEASE

Telenor selects ROZEE.PK as ‘Top Employer Recruiting Solution’ LAHORE: ROZEE.PK today announced that Telenor Shared Services Pakistan (TSS Pakistan), a division of Telenor Pakistan, has selected the

ROZEE.PK Top EmployerTM Recruiting Solution to facilitate its talent acquisition. Telenor is one of Pakistan’s most aspired workplaces according to various industry studies. As one of Pakistan’s leading brands, Telenor places tremendous importance on hiring the best talent in the market.

Through its partnership with ROZEE.PK, Telenor has augmented its search for talent to ROZEE.PK database of 3 Million registered professionals and 10 Million annual visitors looking for top jobs in Pakistan. Telenor Pakistan chose ROZEE.PK because of its strong leadership position in Pakistan’s talent acquisition market, large talent database and powerful filtering technology. “Our organization is a rapidly growing employer of young, talented Pakistanis”, said Imran Ashraf, Head of TSS Pakistan. PRESS RELEASE

Rafhan Maize Prod.

Siemens Pakistan Mithchells Fruit Pak Gum & Chemical Pak Services

More than 50 CSR experts head to Bangkok for AFCSR LAHORE: In celebration of its second decade, the Asian Forum on Corporate Social Responsibility (AFCSR) will be held at the Shangri-La Hotel in Bangkok on October 25 and 26, 2012. The program opens with H.E. Anand Panyarachun, the well-respected former Prime Minister of Thailand and founding chairman of the Kenan Institute Asia, a non-profit organization that works toward sustainable development in Thailand. Like previous years, CSR experts from various industries and backgrounds have been invited to share their insights on the creation and execution of coherent CSR strategies. PRESS RELEASE

TiE complains about deadlock LAHORE: The Indus Entrepreneur (TiE) Lahore President Salim Ghauri has said a deadlock in the capacity building of the government departments’ workforce has blocked the smooth sailing of the investment and trade policies in the country. This dismal situation has given birth to a negative impression that the incentives for growth of investment and trade are a sheer wastage of the public

CLOSE 10000.00 4410.00 1184.72 300.00 860.00

CHANGE 300.00 210.00 34.72 13.38 10.00

TURNOVER 200 160 1,800 104,100 1,050

4177.15 800.00 360.00 204.86 163.62

3968.30 760.00 360.00 200.10 165.00

3968.30 760.00 342.00 195.00 155.44

3968.30 760.00 342.63 195.71 155.44

-208.85 -40.00 -17.37 -9.15 -8.18

40 50 1,000 1,200 300

6.05 20.04 5.50 51.25 108.85

5.76 19.43 5.18 50.45 106.52

6.01 19.85 5.38 51.02 108.31

0.16 0.46 0.48 0.72 1.54

17,256,500 10,640,000 10,637,500 9,719,000 4,215,100

Volume Leaders Lafarge Pakistan P.T.C.L.A Dewan Cement D.G.K.Cement Engro Corporation

5.85 19.39 4.90 50.30 106.77

Interbank Rates US Dollar UK Pound Japanese Yen Euro

94.9210 153.2309 1.2169 122.4006

Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar

money, he added. As a matter of fact, the TiE President said, it is the lack of timely improvement in the government machinery and the functionaries leading to doubts of the policymakers against the policies of each other. He said the press reports have suggested that the Ministry of Finance and the Planning Commission have challenged the Strategic Trade Policy Framework (STPF) 21012-15 of the Ministry of Commerce and Trade, saying that offering Rs30 billion subsidies for promotion of trade are a sheer wastage of public funds. PRESS RELEASE

Lake City Holdings adds a jewel to its crown

Mobilink supports Pink Ribbon for ‘Pinktober 2012’ LAHORE: Mobilink has partnered with Pink Ribbon to mark October as ‘Pinktober - the Breast Cancer Awareness Month’. Pink Ribbon will be launching a nationwide awareness drive in October with the support of Mobilink and the Higher Education Commission (HEC), aiming to reach out to 100,000 young girls. During ‘Pinktober 2012’, Mobilink will support Pink Ribbon by collecting donations through a SMS campaign as well as by educating customers using information material distributed through bill inserts, customer care centers and advertising. PRESS RELEASE

LOW 10000.00 4400.00 1125.00 295.00 850.00

Major Losers

CORPORATE CORNER Wateen gets Cisco’s ‘Customer Service Excellence’ award

HIGH 10000.00 4410.00 1200.00 300.95 860.00

LAHORE: The Lake City Holdings which is one of the largest real estate projects of Pakistan and a premier secured fated community is proud to announce that they have added a jewel to their crown by finalizing a deal with Technogym for their Lake City Golg and Country Club’s Health Club. A contract signing ceremony was held between the management of Lake City Holdings and Technogym at the Lake City Golf and Country Club on Monday, 1st October 2012. PRESS RELEASE

BUY

SELL

94.50 121.45 152.00 1.2016 95.68 12.03 25.68 25.17 97.34

95.00 122.36 153.10 1.2102 96.87 12.18 25.84 25.29 99.50

Bulls lift ISE up 33 points ISLAMABAD APP

Islamabad Stock Exchange (ISE-10) here on Monday witnessed bullish trend as the index was up by 33.70 points to close at 3169.08 points as compared to the previous day’s trading. Talking to APP, Stock Analyst, M.M Hassan said that the buying in the low-priced stocks led the bullish rally in the local stock markets. Besides, the investors preferred to off-load the positions in the markets whenever the index got the strength resulting in a decrease in the volume of the market, he added.

Moreover, the punters have taken position in the low-priced shares specially banking and cement sectors, he said. Total volume of shares traded was 57,600, which was down by 400 as compared to a day earlier’s closing. Out of 138 companies’ shares traded, the price of 82 was increased while the price of 56 decreased. The price of top gainer Unilever Pakistan was increased by Rs. 300 while the price of top loser decreased by Rs.40. Silk Bank Ltd, NIB Bank and Fauji Cement Limited remained volume leaders, with volume of 25,000, 15,000 and 10,000 shares respectively.

Crude down in Asia

PTCL makes employees’ Hajj dream come true SINGAPORE AFP

ISLAMABAD: Pakistan Telecommunications Company Limited (PTCL) held a farewell reception in honor of the forty departing hajjis who have been sponsored by PTCL under the employee welfare scheme. Held at a local hotel in Islamabad, the reception was attended by PTCL employees. As part of its organizational commitment to provide incentives and encouragement for the employees, PTCL sponsors the Hajj of 40 employees each year according to a pre-defined process. PRESS RELEASE

Crude oil prices fell in Asia Monday after official data showed China’s manufacturing activity contracting for the second straight month in September, analysts said. New York’s main contract, light sweet crude for delivery in November, shed 56 cents to $91.63 a barrel and Brent North Sea crude for November retreated 40 cents to $111.99. Crude prices headed south after official data released by China showed manufacturing activity in the world’s largest energy consumer shrinking yet again, analysts said. China’s manufacturing purchasing managers’ index (PMI) was at 49.8 in September, up 0.6 from its August level but still below 50, indicating a contraction. “This morning we have official Chinese PMI data following HSBC’s survey at the weekend which supported its flash number revealing further contraction,” IG Markets said in a report.

Tuesday, 2 October, 2012