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Wednesday, 3 October, 2012
Three pronged PakistanRussia understanding ISLAMABAD
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APP
akistan and Russia have signed three memorandums of understanding (MoUs) for expanding Pakistan Steel Mills (PSM), upgrading Pakistan Railways and cooperation in the water and power projects. Unveiling the details of the agreements at a press conference here on Tuesday, Minister of State and Chairman Board of Investment (BoI) Saleem H. Mandviwala said that the MoU regarding the PSM mainly dealt with cooperating in the project of its modernization, reconstruction and building production capacity up to 2.5 million ton. He said that the Russian Company Tyazhpromexport helped Pakistan to establish the PSM. Mandviwala said that Russia would provide both technical and financial assistance in all the projects. “In the PSM’s expansion project, Russia is likely to provide assistance of about USD $350 to $500 million, which is expected to be signed within 60 days”, he added. The BoI Chairman said that the Russian company would carry out the technical audit.
LCCI seeks reduction in mark up rate LAHORE APP
Lahore Chamber of Commerce and Industry Tuesday urged the State Bank of Pakistan to reduce markup rate to single digit and bring it at par with China, India, Sri Lanka and Bangladesh where it is 6.56, 8, 7.75 and 7.74 percent respectively. In a joint statement, LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh and Vice President Mian Abuzar Shad said single digit mark up was absolutely essential for Pakistan to compete with the regional economies in the world markets. They said inflation was a matter of controlling demand and supply and if the supply chain was up to the mark, the inflation would automatically remain at comfort level. They said the existing double digit markup had already caused undue damage to the economy which would take long time to recover. They said both local and foreign investments had already nosedived because of high cost of doing business in Pakistan, while the FDI situation in other regional economies was quite visible. They feared that if proactive, well-tailored and well consulted measures were not taken and the economy remained sliding downwards, the days were not very far when Pakistan would become a trading country instead of a manufacturing hub.
Talking about the second MoU, which pertained to upgrading the Pakistan Railways infrastructure, Mandviwala said that a delegation of Russian company, Transmashholding, during its recent visit to Pakistan, was informed about the upcoming tenders for supply of passenger carriages and exploring opportunities for joint ventures for the carriages’ production. The Russian company had also invited the Pakistan Railways officials to visit its facilities, he added. According to the third MoU for cooperation in the water and power sector, Russia has showed interest to invest in many projects, especially in Muzaffargarh and Jamshoro power plants, he added. Mandviwala hoped that the MoUs would become a milestone in the bilateral relations of the two countries. By inking the Bilateral Investment Treaty (BIT), Russia has complemented mutual efforts for enhancing cooperation in various development projects launched by Pakistan, he said. Speaking on the occasion, Yuri M. Kozlov, Chief Trade Representative of Russia in Pakistan, termed the Russian delegation’s visit successful.
Pakistan, Russia sign MoUs for steel, energy, railways projects
ADB, IFSB sign MoU to promote Islamic finance ISLAMABAD APP
The Asian Development Bank (ADB) and Islamic Financial Services Board (IFSB) signed a Memorandum of Understanding (MOU) to facilitate international cooperation between the two organizations in promoting the development of Islamic finance in common developing member countries. The MOU provides an effective basis for joint activities and general cooperation in areas of common interest. The MoU is aimed at enhancing cooperation in the form of joint technical assistance and/or policy-based work in Common Developing Member Countries. It would help promoting the development of Islamic finance, in particular strengthening the capacity of regulating and supervising Islamic financial services institutions, Islamic capital markets and Islamic liquidity management in Common Developing Member Countries. The other objective of the MoU is to stimulate joint research and exchange of information, which will be used as critical evidence to support policy areas of mutual interest, as well as to enhance knowledgesharing between both organizations. The agreement was signed by ADB Vice President for Knowledge Management and Sustainable Development, Bindu Lohani and IFSB Secretary-General Jaseem Ahmed on behalf of their institutions in Manila, said ADB press statement received here Tuesday. “The importance of Islamic Finance in the de-
velopment of Asia cannot be doubted, as can be seen by the significant increase in Shari’ah compliant financing in a number of ADB’s developing member countries in recent years,” said Bindu Lohani, ADB Vice President for Knowledge Management and Sustainable Development, said. “We look forward to working even more closely with IFSB under this MOU to address some of the key issues facing our member countries in the areas of financial inclusiveness and infrastructure financing,” Lohani added. On the occasion, Ahmed thanked ADB for its longstanding support for Islamic finance, and noted that the MOU formalizes a partnership between IFSB and ADB going back to the provision of the first Technical Assistance by the ADB for Islamic finance in 2005. He underlined that the MOU was designed to serve both institutions and their respective mandates. “In the context of Asia’s developmental needs, and the expanding potential for Islamic finance in the region, the MOU strengthens our ability to jointly support the policy, institutional and capacity requirements for a more resilient Islamic financial sector, Ahmed said. “I especially look forward to work with ADB in encouraging cross-border cooperation in the use of Islamic finance to address the challenges of widening financial and social inclusion in Asia, and in meeting Asia’s enormous need for innovative financial mechanisms for its infrastructure spending,” he added.
PTA posts lucrative mobile banking numbers Rs90m transactions made through mobile banking system last year: DG PTA RAWALPINDI APP
Information technology is a fast growing sector in the country, which is reflective from the fact that around Rs90 million transactions have been made through mobile banking system during the last year, Director General of Pakistan Telecommunication Authority (PTA) Dr Saleem said on Tuesday. He was addressing a seminar organized by the Punjab College of Information Technology here to highlight importance of E-Commerce in the contemporary world and formal launching of its M. Com. Programme. The DG PTA urged the young generation to equip themselves with latest techniques and modern education to meet the challenges of the present times and future. Concept of E-Commerce and Mobile Commerce is touching new heights and exploring new horizons with each passing day and the younger generation must excel in this sector, he added. The seminar, presided over by Director of Fiscal Policy Study Center of Muhammad Ali Jinnah University Dr Safdar Ali Butt, was attended by Director Punjab Group of Colleges Rawalpindi Chaudhry Muhammad Akram, former President of Rawalpindi Chamber of Commerce and Industry Syed Asad Mashahdi, Deputy Director of Higher Education Commission Hakim Ali Talpur, Senior Vice President of Islamabad Chamber of Commerce and Industry Tauseef Zaman and Director University of Central Punjab Professor Khaleel Muhammad.
EU advisers to urge structural reform for banks BRUSSELS AGENCIES
An EU advisory group will on Tuesday recommend reforms that could include splitting banks’ retail business from their investment operations to protect savers and host nations from the kind of risk-taking that triggered the financial crisis. Bank of Finland Governor Erkki Liikanen, who led the group of academics and experts set up by the European Commission, will announce their verdict on how best to reform bank structures in the wake of the crisis that began five years ago. Making a separation between retail banking and high-risk businesses such as trading could be among the proposals Liikanen will make to stop crises in investment banking dragging down high street banks and the savers and businesses who depend on them. Michel Barnier, the European Commissioner in charge of regulation, will give his initial response to journalists after Liikanen outlines the recommendations at a press conference at 1030 GMT. Legally separating or ring-fencing investment banking would make it easier for the part of the bank that holds savers’ deposits and lends to businesses to keep running even if other parts of the group collapsed, some banking experts say. It would affect European banks such as Britain’s Barclays, Germany’s Deutsche Bank and France’s BNP Paribas, which engage in high street banking alongside riskier trading in stocks, debt and other securities. One source familiar with the group’s work recently said separating retail banking from the high-risk business, dubbed “casino banking” by critics, would be part of the proposals, though this could change in the final report.
Asian markets boosted by US manufacturing data HONG KONG AFP
Asian markets rose Tuesday following betterthan-expected manufacturing data from the United States that lifted hopes for recovery in the world’s number one economy. The news, which followed minor improvements in Asian and European activity, also gave a boost to the dollar and euro against the yen, lifting Japanese stocks. Tokyo was 0.25 percent higher by the break, Sydney added 0.60 percent and Seoul was 0.27 percent higher, while Taipei added 0.26 percent. Hong Kong, Shanghai and Mumbai were closed for a public holiday. Traders took their lead from Wall Street, which ended broadly higher after the Institute for Supply Management said its Purchasing Managers Index (PMI) edged up to 51.5
last month, from 49.6 in August — representing the first expansion after three months of contraction. A reading above 50 indicates growth and anything below represents shrinkage. On Monday China said its own PMI was at 49.8 in September, which while still negative represents a modest improvement on 49.2 in August. And in Europe the reading came in at 46.1, up from 45.1. CLSA equity strategist Nicholas Smith said that the figures appeared to show “that the general picture is for a turnaround in global markets”. At the close of trade on Wall Street the Dow added 0.58 percent and the S&P 500 added 0.27 percent but the Nasdaq edged down 0.09 percent. On currency markets the dollar stood at 78.13 yen in Asian trade, from 77.98 yen in New York late Monday. The euro was at $1.2898 and 100.82 yen,
compared with $1.2887 and 100.51 yen in New York. Eyes are now on the Reserve Bank of Australia (RBA), which is due later in the day to announce a decision on interest rates, with opinion split on whether it will make a cut to boost the economy. “A rate cut today looks like a line ball decision for the RBA,” Ric Spooner, Chief Market Analyst at CMC Markets said in a note to clients. “With a division of opinion amongst analysts on whether the RBA will move, a rate cut today has the potential to move markets this afternoon,” he said, according to Dow Jones Newswires. Oil prices rose in early trade, with New York’s main contract, light sweet crude for delivery in November, adding three cents to $92.51 a barrel and Brent North Sea crude for November gaining 16 cents to $112.35. Gold was at $1,777.30 at 0300 GMT compared with $1,770.50 on Monday.
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Business 02 Crude up in Asia on upbeat US manufacturing data SINGAPORE AFP
Crude was higher in Asia Tuesday after data showed the US manufacturing sector bounced back in September following three months of contraction, analysts said. New York’s main contract, light sweet crude for delivery in November, added three cents to $92.51 a barrel and Brent North Sea crude for November delivery gained 16 cents to $112.35. “Oil advanced... as US manufacturing unexpectedly expanded,” Phillip Futures said in a report. Data released by the Institute for Supply Management late Monday showed US factory activity for September rising to 51.5, the first time since May that the index has risen above 50. Any reading above 50 indicates an expansion in the sector, while one below that figure indicates a contraction. The index had remained stubbornly below 50 for the past three months, contributing to the weak sentiment in energy markets as the US is the world’s largest oil consumer and its manufacturing sector is a key driver of demand.
Bulls on parade in the capital ISLAMABAD APP
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SLAMABAD Stock Exchange (ISE-10) here on Tuesday witnessed bullish trend as the index gained 32.26 points to close at 3201.34 as compared to the previous day’s trading. Talking to APP, Stock Analyst, Zaheer Ahmed said that the decline in Consumer Price Index (CPI), announced a day earlier, led the bullish rally in the local stock market. Besides, the reduction by 35 to 40 per cent on the rate of Treasury Bills (TBs) and Pakistan Investment Bonds (PIBs) which auctioned some days back has increased the confidence of the investors, he added. Moreover, Due to these both develop-
Unilever Pakistan, NRSP ink MoU to facilitate entrepreneurs ISLAMABAD ONLINE
Unilever Pakistan Limited (UPL) has signed a Memorandum of Understanding (MOU) with National Rural Support Programme (NRSP) for providing entrepreneurial support using micro-financing model to under-privileged individuals. The MOU was signed by Ehsan Malik, Chairman and CEO UPL and Dr. Rashid Bajwa, CEO, NRSP. Through this partnership, UPL and NRSP aim to establish a sustainable business model that will utilize mutual expertise to provide economic opportunities through self employment. The scope of the project includes a grant for enterprising but underprivileged individuals identified by NRSP to set up their shops. Working capital required maintaining minimum level of stock at the proposed shops will be through micro finance loans. The selected candidates would also benefit from entrepreneurial training covering fund management, basic sale techniques and record keeping. In the pilot phase, 50 entrepreneurs will benefit from this initiative.
Major Gainers COMPANy OPEN Bata (Pak) Limited 1015.00 Mithchells Fruit 342.63 Colgate PalmolivXDXB1184.72 Nestle Pakistan Ltd. 4410.00 Shezan Inter. 300.00
ments, the market was expecting the cut on the policy rate by 50 to 100 basis points (bps) to be announced on October, 5, he said, adding this would enhance the investment in the stock and other business in the country. “We are expecting in the boom in the business because of the availability of cheap loan in the country”, Another Business Analyst Jeewan said while talking to APP on Tuesday. In addition, the earning of exploration companies has been increased by 30 per cent and the earning of cement sector by 100 per cent when compared them with previous year’s earning, he added. Total volume of shares traded was 12,000, which was down by 45,600 as compared to a day earlier’s closing. Out of 135 companies’ shares traded, the price of 81 was increased while the price of 54 decreased. The price of top gainer Mitchell Fruit Farma was increased by Rs 16.37 while the price of top loser Siemens Pakistan Engineering decreased by Rs.37.95. Karachi Electric Supply, Dawood Hercules Cor. and PTCL remained volume leaders, with volume of 4,000, 3,000 and 2,000 shares respectively.
HIgH 1035.00 359.76 1201.00 4630.50 315.00
LOW 975.02 345.00 1150.02 4400.00 305.00
CLOsE CHANgE 1035.00 20.00 359.00 16.37 1200.33 15.61 4425.01 15.01 315.00 15.00
TUrNOvEr 450 10,400 750 660 4,700
3899.00 722.10 418.00 126.35 107.99
3899.00 722.05 418.00 126.35 103.25
3899.00 722.05 418.00 126.35 103.25
-69.30 -37.95 -21.99 -6.65 -5.43
20 100 400 500 23,500
20.25 6.05 39.30 9.41 72.81
19.51 5.85 37.90 8.60 70.99
19.56 5.96 39.17 8.95 72.50
-0.29 -0.05 1.66 -0.25 1.54
12,930,500 8,171,000 7,352,500 6,909,000 5,344,000
Major Losers Rafhan Maize Prod. Siemens Pakistan Indus Dyeing Ismail Industr Clover Pakistan
3968.30 760.00 439.99 133.00 108.68
Volume Leaders P.T.C.L.A Lafarge Pakistan Fauji Fert Bin Maple Leaf Cement Engro Foods Ltd.
19.85 6.01 37.51 9.20 70.96
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.9397 153.3941 1.2148 122.5577
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUy
sELL
94.50 121.78 152.15 1.2024 95.42 12.03 25.68 25.17 96.45
95.00 122.69 153.25 1.2110 96.62 12.18 25.84 25.29 98.60
Dollar, euro rangebound ahead of eurozone events TOKYO AFP
The dollar and the euro stayed within a tight range Tuesday, as investors waited for further developments in efforts to restore eurozone finances ahead of meetings of major central banks. The dollar stood at 78.04 yen, nearly flat from 77.98 yen in New York Monday afternoon. The euro was at $1.2892 and 100.61 yen, little changed from $1.2887 and 100.51 yen in New York. The markets were waiting for headlines from Greece and Spain, as well as the results of a Moody’s review that could see Spain downgraded to junk status, Kengo Suzuki, forex strategist at Mizuho Securities, told Dow Jones Newswires. After Spain unveiled an austerity
budget for 2013, some EU officials expressed their resolve to help the country if it seeks a bailout, as eurozone finance ministers gather for a meeting on October 8. Rising hopes for a Spanish bailout are also expected to be discussed at a European Union summit on October 18-19. The market will also be watching a policy decision later Tuesday by the Reserve Bank of Australia (RBA). Some analysts say the market has factored
in a rate cut, while others expected the bank to keep the rate steady. “While it is a close call, we believe that there will be no change, on balance,” said Emma Lawson, currency strategist at National Australia Bank. “However... no change is likely to lead to a bounce in the Australian dollar, something that is more likely to drive the RBA to further easing.” Suzuki, expecting the RBA to keep its current rate, said there will also be a focus on Australian central
bankers making “any comments regarding a slowdown in the Chinese economy”. The market will also be awaiting other upcoming central bank policy meetings. The Bank of Japan is expected to take no fresh action at its meeting scheduled for Thursday and Friday. But the risk has increased for rhetorical interventions to tame the strong yen under the new government of Prime Minister Yoshihiko Noda that was launched Monday, Lawson said. “The risks remain for more aggressive easing or direct forms of FX intervention.” New Finance Minister Koriki Jojima “appears less keen on direct foreign bond purchases than... new economy minister (Seiji) Maehara,” she said, adding that the market needs more time to digest their policy inclinations.
CORPORATE CORNER Nokia Lumia 610 debuts in Pakistan
of Pakistan.” The Nokia Lumia 610 is a great smartphone for younger audience who will appreciate the built-in Microsoft Office app. Word mobile, PowerPoint mobile, Excel mobile and OneNote mobile make working on the go easier. With Sky Drive, files and notes can be synchronized, opened and edited from the PC or the phone. PrESS rELEASE
NBP kicks off rescue operation in flood affected areas
KARACHI: Nokia Lumia 610, the most affordable Lumia series smartphone to date is now available in Pakistan. Powered by a Windows 7.5 OS, Nokia Lumia 610 offers the sleekness of the Windows smartphone coupled with the affordability and reliable warranty that is hallmark of every Nokia phone. “The Nokia Lumia 610 will introduce Windows Phone to a new generation of local smartphone users, offering them something different and valuable in terms of pricing and features,” said Arif Shafique, GM Operations, Nokia Pakistan. “With Nokia services, quality apps and a plethora of built-in features coupled with a fast and friendly interface, Nokia Lumia 610 has everything in the package to make it an instant hit among the aspiring youth
KARACHI: Being nation’s bank, NBP is always the first corporate entity to come forward and help the nation whenever a calamity hits its countrymen. To mitigate sufferings of the people affected by recent massive floods, National Bank of Pakistan has decided to reach out to flood affectees and has provided them relief goods (eatables) in bags. The bank has initially distributed around planned to distribute 1000 bags containing eatables across the afftected areas as Kamber/Shahdadkot, Jaccobabad, Kashmore, Shikarpur and Larkana. The Bank’s Regional Management Teams with the help of local administration will distribute the food items. PrESS rELEASE
Eventage to represent Pakistan in Dubai Int’l Jewelry Week KARACHI: Despite addition of an architectural monument Burj Khalifa in Dubai, the importance of Dubai World Trade Centre can in no way be under-rated as the region’s best events
and exhibitions venue. Of all the exhibition however, the Dubai International Jewellery Week stands out as the most attractive one in terms of visitors and shopping. This year’s glittering gala is estimated to record over 30,000 shoppers of gold and precious metals, diamonds, coloured stones and branded jewellery from over 300 exhibitors belonging to 30 countries including Pakistan. Having established itself as the Middle East’s best trade and retail sales platform, Dubai World Trade Centre, the event’s organizers have, with a view to facilitate Pakistani exhibitors, appointed Eventage as their authorized representatives in Pakistan for maximizing the country’s participation in this glamorous exhibition which besides counter sales, offers enormous business networking opportunities with international brands of gems and jewellery. PrESS rELEASE
MUFAP members elect chairman, vice chairman and directors KARACHI: The Members of the Mutual Funds Association of Pakistan (MUFAP) have elected new Directors on the Board of Directors against the vacancies arising from the rotational retirement of some of the Directors on the 20 th September, 2012. The new Board of Directors of MUFAP at its first meeting held on the 1 st October, 2012 has elected the new Chairman and Vice Chairman for the year 2012/ 2013 (1 st October, 2012 to 30 th September, 2013). The new Chairman is Mr. Rehan N. Shaikh and the Vice Chairman is Mr. Rashid Mansur. Chairman Mr. Rehan N. Shaikh is the
Chief Executive Officer of HBL Asset Management Limited with over 16 years of international experience in the Mutual Funds industry. Prior to joining HBL Asset Management Limited, Mr. Shaikh worked at State Street Corporation in Boston, USA where he managed several operational groups including fund accounting, custody, security pricing and financial reporting for multiple institutional clients. Mr. Shaikh lead several mergers and back office conversions and also helped in establishing an operational department servicing State Street’s largest client, migrating over 250 funds and over $111 billion in assets to State Street. PrESS rELEASE
UBL Funds launches new Online Portal KARACHI: UBL Fund Managers, one of Pakistan’s leading Asset Management Companies, has launched a new state of the art Online Portal for its clients. The new portal which was launched yesterday has a very sophisticated design and introduces functionality that gives clients more freedom to manage their investment account. According to Mr. Mir Muhammad Ali, Chief Executive of UBL Fund Managers, the new ‘UBL Funds Online’ is for investment savvy clients who want more control. He said “With the influx of new technology in thisdigital age, our clients will find the online experience to be the best the industry has to offer. We benchmarked its services with those offered internationally and wanted our clients to experience the same”. PrESS rELEASE
Wednesday, 3 October, 2012