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Wednesday, 4 July, 2012
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Defaulters are known by the company they keep
Cell phones can improve agriculture apparently ISLAMABAD ONLINE
KSE bans listing for defaulted companies’ associates, de-lists 18 g Defaulting firms pose ‘serious threat’ to capital market g Deprive minority shareholders of any return on investment g Trading suspended in shares of two defaulting companies g
KARACHI
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ISMAIL DILAWAR
AvING decided to de-list over a dozen defaulting firms, the Karachi Stock Exchange (KSE) has decided not to allow listing to a company which is an associate of a defaulted company. Tuesday saw the front regulators at KSE deciding to de-list some 18 companies from the Exchange for their continuous failure to rectify the defaults or opt for voluntary delisting through buy-back of shares from the minority shareholders. The de-listed firms are: Accord Textiles, Amin Spinning Mills, AMZ ventures, Dadabhoy Insurance Company, Fawad Textile Mills, First Islamic Modaraba, Harum Textile Mills, Indus Fruit Products, Ittefaq Textile Mills, Kashmir Polytex, Macdonald Layton and Co, Mian Muahhamd Sugar Mills, Mubarik Dairies, Sahrish Textile Mills, Shahpur Textile Mills, Ittefaq General Insurance Company, Union Insurance Company and Zahur Textile Mills. These firms, the KSE said, were not only posing a “serious threat” to the development of capital market, but also inhibiting the investor confidence through lack of transparency. Such companies had also deprived the minority investors of any return on investment, warned the regulator. “The Exchange considering the interest of the stakeholders has decided to de-list these companies from the Exchange,” the KSE said. One of the major defaults these firms committed is the non-payment of the listing fee of the Exchange that, accumulatively, amounts to over Rs 7.766 million. The KSE Tuesday said the Exchange initiated action against the non-compliant
Chairman Pakistan Telecommunication Authority (PTA) Dr Muhammad Yaseen has said that farmers’ access to relevant information and adoption of ICT and telecom value added services by rural community can bring revolution in the agriculture production. Chairman PTA stated while addressing the participants of a workshop on “What Can Telecommunications Do for Agriculture” which was organized in collaboration with LIRNEasia, a regional ICT Policy Think Tank, based in Sri Lanka. The main theme of this joint initiative of PTA and LIRNEasia was to share international experiences and research with Pakistan, and to learn from successful telecom-agriculture models and improving agriculture productivity through increased usage of ICT. Chairman PTA, Dr. Mohammed Yaseen said that Agriculture is the backbone of Pakistan’s economy as it accounts for 21% of national income, employs 45% of the country’s total workforce and provides livelihood to 60% of our rural community. Similarly, Pakistan telecom sector is considered as an exemplary growth model around the globe and our agriculture sector can also be a model by adopting telecom and getting its benefits.
SBP changes rules KARACHI STAFF REPORT
companies, which have been in default of various provisions of the listing regulations particularly non-holding of Annual General Meeting for more than two years and nonpayment of the dues of the Exchange. The Exchange, it said, had advised these companies vide notices issued on February 10 and 15 (2012) to rectify these defaults within 90 days in accordance with the listing regulations and/or opt for the option of voluntary delisting through buy-back of shares of the minority shareholders by the sponsors/majority shareholders in accordance with the regulation. The Exchange also forwarded the copies of the notices to the companies concerned on their addressed available with the Exchange. On failure of the companies to rectify the defaults within the stipulated time, the KSE again issued notice on May 15 to such companies, allowing further 30 days to rectify the defaults. The companies were also notified the action of delisting of companies from the Exchange under the regulations.
The notice was also served through the newspapers on May 17 providing the companies, the opportunity of being heard and/or submitting the objection, if any, to the delisting in writing to the Exchange by June 14. “It is regretted that the companies failed to respond/rectify the defaults and/or opt for voluntary delisting through buy-back of shares from the minority shareholders,” the regulator said. The cases of the companies have been forwarded to the Securities and Exchange Commission of Pakistan (SECP) for initiating necessary action against them under provisions of the Companies Ordinance, 1984. The KSE has also decided that in future no company associated with defaulted firm would be allowed listing. Further, the regulator also suspended trading the shares of two firms, National Asset Leasing Corporation and Adil Textile Mills, for their failure to rectify the cause of suspension of trading in their trading.
No more raking over the coals g
Banks celebrate a decade of nonpayment
Thar Coal project important to meet energy demands: PM
ISLAMABAD: Prime Minister Raja Pervez Ashraf on Tuesday said that investment in the energy sector was crucial and termed the Thar Coal project important to meet energy shortage. He was talking to Governor State Bank of Pakistan Yaseen Anwar, who called on him at the Prime Minister House here. The State Bank Governor briefed the Prime Minister on the state of economy in the country and the measures taken by the State Bank to bring in financial stability on sustainable basis. He said that currency swap with China and Turkey would boost bilateral trade. He mentioned that opening of two bank branches of Chinese bank ICBC in Islamabad and Karachi would greatly encourage the Chinese investors. The State Bank Governor said the Bank of China was planning to open a branch in Pakistan. Likewise, Bankazi, the Turkey’s largest private bank, was also planning to open its branches here. The Prime Minister expressed satisfaction over the country’s financial stability despite crisis in Europe and around the world. APP
The State Bank of Pakistan (SBP) has amended certain rules governing the primary dealer system to streamline and further strengthen this system. The purpose of these amendments is to create a balance between privileges and obligations of Primary Dealers (PDs) to achieve the objective of development of debt market in the country. As per changes, all the banks and DFIs interested in primary dealer (PD) status, would have to ensure that their charges on Investor Portfolio Securities (IPS) accounts are reasonable and in line with SBP’s objective to broader the investor base of government securities. The PDs have been instructed to provide efficient IPS account related services to customers. PDs will be eligible to claim commission at 10 paisa per Rs 100 for all accepted Non Competitive Bids (NCBs) of individuals, employee provident/pension funds and corporate except Asset Management Companies (AMCs), Mutual Funds, Insurance/Mudarba/Leasing companies in Market Treasury Bill (MTB) and Pakistan Investment Bond (PIB) auctions.
Six Point Six Zero g
Producers cut LPG price by Rs 6.60 per kg KARACHI APP
Local producers of liquefied petroleum gas (LPG) have decreased prices by Rs 6,600 to Rs 65,993 per ton after a decline in its international prices (Saudi Armaco Contract Price). This was stated by the pattern in chief of All Pakistan LPG Distributors Association Abdul Hadi Khan here Tuesday. New prices are effective from July 3, 2012. He pointed out that price of locally produced LPG has been lowered by Rs 13,507 compared to imported LPG. He said per kilogram price of LPG has been reduced by Rs 6.60, 11.8 kg cylinder has been declined by Rs 78 and price of 45.4 kg cylinder dropped by Rs 303. Hadi said that in Karachi, LPG will be sold at Rs 99.40 per kilo, 11.8 kg cylinder at Rs 1002 and 45.4 kg cylinder at Rs 3,857. In Lahore, the price of LPG will be Rs 104.40 per kg, 11.8 kg cylinder at Rs 1102 and 45.4 kg cylinder at Rs 4,237. Similarly, in Khyber Pukhtunkhwa, LPG will be available at Rs 109.40 per kg, 11.8 kg cylinder at Rs 1224 and 45.5 kg cylinder at Rs 4,651. In norther areas, Mansehra, FATA, Batgram and AJK, price of LPG will be Rs 113.40 per kilo, 11.8 kg cylinder at Rs 1,306 and 45.4 kg cylinder at Rs 5,014. Hadi demanded producers to immediately double their production, stagnant at 800 tons per day for the last one and a half year. This will restore the concept of LPG as economical fuel in the local market so that common consumer should get LPG at cheaper rates, he added. He opined that domestic sale of LPG will be further go up by 5 to 8 percent with this decline. But this will be possible with the increase in local production of LPG, he noted.
New WB chief is a bit of a daredevil WASHINGTON AGENCIES
The new head of the World Bank said on Monday he was willing to let the global development lender advise troubled developed nations like Greece, a major shift for an institution that has focused on the world’s poorest. While Jim Yong Kim emphasised that his top priority would be to protect developing nations at a “pivotal moment” for a world economy that is losing steam rapidly, he said the bank could also deploy its technical know-
how to help richer nations with structural problems. “We only go into countries when asked, but I feel the kind of expertise we have could be relevant in many, many countries in the world, including high-income countries,” the Korean-born American told reporters on his first day on the job. “My staff feel they have the relevant experience that could add value ... if that is the case and we are asked, I could be open to the possibility” of helping Greece, he added. Former World Bank chief Robert Zoellick had pushed back at the idea
of the bank getting involved in Greece. He said on June 14 that if the bank had gone in “as a reform taskmaster for the Greek government ... it might not be as productive for Greece as it would be harmful to the bank.” Still, many development experts argue the bank’s decades of experience working with governments to improve their ability to improve tax collection, social programs, combat corruption and attract investment could help countries like Greece or Portugal that struggle with these issues. An international bailout for debt-
burdened Greece has kept the country in the euro zone but has come at the price of deep spending cuts, increased poverty and unemployment. One idea bank officials have discussed is for the European Commission to fund World Bank technical advice in Greece. By charging for its advice, the World Bank would boost its own revenues at a time lending returns are set to decline as more borrowers gain access to capital markets. Big bank shareholders, like the United States, are also cutting budgets and would be hard pressed to persuade their legislatures to pony up more
money for the World Bank. “We are not talking about the World Bank investing massive amounts of finances in high-income countries,” Kim said. “Where we feel we can add value is in the technical support around some of the structural issues that some countries are facing.” The idea already has been informally debated among the bank’s shareholders. “I would encourage the bank to do it as long as it does not involve resources that are meant to go to developing countries,” said one World Bank board official from a large developing country.
PRO 04-07-2012_Layout 1 7/4/2012 2:00 AM Page 2
Wednesday, 4 July, 2012
THAT’S NEARLY 400 IN TWO DAYS
Major Gainers
Bulls, investors await earning announcement KSE gains 57.87 points as both species take keen interest in blue chip stocks KARACHI
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STAFF REPORT
HE bulls kept dominating Karachi stocks market on Tuesday with benchmark, KSE 100-share index gained 57.87 points. The day saw the index closing up by 0.41 percent at 14, 200.79 points against 14, 142.92 points of Monday. Pakistan stocks higher amid profit taking with thin trade as investor interest held in blue chip stocks ahead of earning announcements due next week, said by Ahsan Mehanti, Director at Arif Habib Investments Limited. On Tuesday, the trading volumes at the ready-counter were recorded higher at 119.364 million shares against 106.453 mil-
lion shares of the previous day. The trading value too decreased to Rs 4.566 billion compared to Rs 4.943 billion of the previous session. The intraday high and low, respectively, stood at 14, 247.92 and 14, 117.49 points. He added that the Expected Pak-US resolution on Nato supply routes as defence committee meets to discuss ties, recovery in global stocks and commodities and expectations for flow-in of foreign portfolio investment on improvement in Pak-US ties played a catalyst role in bullish sentiments. The market capitalization grew modestly and increased to Rs 3.616 trillion from Rs 3.600 trillion a day earlier. Of the total 347 traded scrips, 147 gained, 114 lost and 86 finished as unchanged. The free-float KSE-30 index also gained
55.69 points to close at 12, 302.60 points against the previous 12, 246.91 points. D.G.K Cement was the day’s volume leader counting its traded shares at 11.529 million with the opening and closing rates standing at Rs 41.28 and Rs 41.08, followed by Pakistan Telecom (P.T.C.L.A), Jahangir Siddiqui Company Limited, Fauji Cement and Fauji Fertilizer with turnover of 10.965 million, 9.530 million, 7.737 million and 7.442 million shares respectively. On the future market, the turnover increased by over one million shares to 11.244 million against 10.413 million shares of Monday. The Colgate Palmolive and Clariant Pakistan, up Rs 20.09 and Rs 5.83, led highest price gainers while, UniLever Food and Siemens Pakistan, down Rs 133.31 and Rs 34.10 respectively, led the losers.
Oil down in Asia on weak manufacturing data
‘Oil pipeline sabotage cost Yemen $4 billion’
Barclays boss under pressure as bank inquiry launched
SINGAPORE: Crude prices slipped in Asian trade Tuesday as slumping manufacturing output in the world’s major economies weighed on markets, analysts said. New York’s main contract, light sweet crude for August delivery, retreated 17 cents to $83.58 a barrel and Brent North Sea crude for delivery in August shed six cents to $97.28. Weak manufacturing data from key global economies led to concerns among traders of a corresponding erosion in energy demand, IG Markets said in a report. “Faltering manufacturing output across the world’s biggest economies spooked some investors,” it said. “The US, China, Japan and Europe are all seeing their lowest levels for up to three years.” AGENCIES
SANAA: Repeated attacks on pipelines since the start of the uprising that ousted president Ali Abdullah Saleh have cost Yemen more than $4 billion in lost revenues since February last year, the oil minister said in remarks published late Monday. Yemen is incurring “economic losses estimated at more than $4 billion due to a halt in pumping from the Ras Issa pipeline,” Petroleum and Minerals Minister Hisham Abdullah told the state Saba news agency. Abdullah said Yemen’s main oil export pipeline to the Ras Issa terminal on the Red Sea has been out of operation since February last year due to “repeated attacks.” Some 125,000 barrels per day normally flow through the pipeline, accounting for the bulk of Yemen’s oil exports. AGENCIES
LONDON: Pressure grew on Barclays Plc Chief Executive Bob Diamond to quit as Britain launched an inquiry on Monday into a market-rigging scandal, saying a “culture that flourished in the age of irresponsibility” among bankers had to end. Barclays Chairman Marcus Agius resigned on Monday, saying “the buck stops with me” as the scandal over manipulating Libor interest rates claimed its first major scalp. But his departure did not take the heat off Diamond, who ran Barclays’ investment banking arm when the rate rigging took place, drawing a record fine for the lender last week in a scandal likely to involve many more banks. “The buck in Barclays stops with Bob Diamond, and it is Bob Diamond who must accept responsibility,” said John Mann, an opposition Labour member of a parliamentary committee that later this week will question Agius and Diamond.AGENCIES
CORPORATE CORNER 3G EVO “Nitro Cloud” comes with bonus ISLAMABAD: Country’s leading integrated telecommunications services provider, Pakistan Telecommunication Company Limited (PTCL) has proudly introduced 3G EvO “Nitro Cloud”, Pakistan’s first mobile Wi-Fi hotspot offering EvDO Rev B speeds on the go driven by Pakistan’s fastest 3G EvO Wireless Broadband. The pocket-sized 3G EvO Nitro Cloud is an easy-to-manage portable 3G Wi-Fi router that creates a powerful WiFi hotspot for its customers virtually anywhere, creating a true mobile experience. The “ Nitro Cloud” thematic campaign features internationally renowned guitar maestro, Faraz Anwar, creatively depicting the hyper fast speeds capacity of PTCL’s newest EvO wireless product.
this second shop ensures the brand is more accessible to their audiences and caters to a range of men, from teenage boys to mature adults. Indeed the Arsalan & Yahseer – Ready to Wear signature style is sophisticated yet flamboyant with formal, casual and evening wear outfits all under one roof. In keeping with the brands commitment to provide accessibility of price, Shalwar Kameez’s by the label start retailing from PKR 2,700 and Shirts from PKR 1,400.
Arsalan & Yahseer open doors to their second stand-alone store
ISLAMABAD: Federal Minister for Communications Dr. Arbab Alamgir Khan Khalil called on the Prime Minister Raja Pervez Ashraf and, congratulated him on assuming charge as the Prime Minister, assured him of his full support. Sardar Mushtaq MNA from Haripur was also present at the occasion.
KARACHI: Young Menswear designer duo Arsalan & Yahseer open their second prêt a porter store, Arsalan & Yahseer – Ready to Wear, at Tariq Road in Karachi. Catering to the contemporary man, Arsalan & Yahseer aim to provide a complete range of off the rack fashion choices for men through their brand new ready to wear store. Based on Tariq Road, a central hub for fashion retail,
KARACHI: The UK government today announced housing, seeds, and animal fodder to help up to one million people in Sindh, Pakistan, affected by last year’s devastating floods. Some 1.8 million people in Sindh are still living without adequate shelter, exposed to the elements and vulnerable to disease, with the 2012 monsoon fast approaching. The new support from the UK’s Department for International Development is helping more families to prepare for possible future floods by providing. 18,000 families (126,000 people) with materials and advice to build permanent robust houses on raised platforms, which will resist future floods;· Seeds, fertiliser, trees, and animal fodder for around 100,000 families (700,000 people) so that they can grow food and generate income.
Business 02
Karachi’s latest hot spot “Club Genova” opened
KARACHI: A classy new addition to Karachi’s latest hot spots has opened its doors to general public here on Saturday June 30th. Club Genova is the only place in Karachi where one can find three different themes under one roof, a cigar lounge, restaurant, and café! It is a place where everyone will have a good time.
Mahvash, Jahangir Siddiqui Foundation and Sajjad UKAID: help for 1 million people Foundation sponsor students KARACHI: The Mahvash and Jahangir Siddiqui Foundation representatives met with the students prior to their NUS Summer Program on Economic and Enterprise Development. These eighteen students were selected after extensive interview sessions from 58 universities nationwide. This is a two weeks summer program being held at the National University of Singapore (NUS).This program hosts undergraduate students from universities in various parts of the world and is an excellent opportunity for participants to learn about Singapore: how the smallest nation in Southeast Asia has progressed into a modern city-state and has grown into a thriving centre of commerce and industry.
COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE TURNOVER
Colgate Palmolive Clariant Pak Attock PetroleumXD Indus Motor Company Ismail Industr
980.00 175.25 485.09 250.00 98.79
1010.95 184.01 494.75 255.00 103.00
980.00 175.25 486.00 250.00 99.90
1000.09 181.08 489.99 254.86 102.81
20.09 5.83 4.90 4.86 4.02
199 45,572 67,351 2,972 2,030
-133.31 -34.10 -18.00 -17.77 -8.30
172 234 1,851 80 6,796
Major Losers Unilever Food 2698.00 Siemens Pakistan 747.10 Nestle Pakistan Ltd. 4076.14 Bata (Pak) Limited 701.07 Philip Morris Pak. 166.69
2700.00 725.00 4100.00 686.00 169.00
2563.10 713.00 4010.98 670.00 158.36
2564.69 713.00 4058.14 683.30 158.39
Volume Leaders D.G.K.Cement P.T.C.L.A Jah.Sidd. Co. Fauji Cement Fauji Fertilizer
41.28 14.34 13.41 5.74 113.94
42.10 15.15 13.85 6.09 115.25
40.90 14.26 13.26 5.74 112.01
41.08 14.60 13.55 5.90 114.28
-0.20 0.26 0.14 0.16 0.34
11,529,072 10,965,720 9,530,975 7,737,845 7,442,142
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.6474 148.4166 1.1856 119.1705
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
94.60 118.05 147.32 1.1702 92.33 12.03 25.62 25.12 96.02
95.80 120.14 149.88 1.1905 94.45 12.27 26.04 25.50 99.15
Banks celebrate a decade of nonpayment KARACHI STAFF REPORT
The commercial banks for over a decade have not surrendered to the State Bank any amounts pertaining to the federal and provincial governments and their affiliated institutions. “No payment has been made in respect thereof for a period of ten years from the date of issue,” said an SBP circular. The central bank, therefore, has asked the banks to immediately surrender the amounts they have been retaining with themselves from more than a decade. The banks hold these amounts by way of financial instrument like cheques, draft, Bill of Exchange, Pay Slips, Pay Orders, D.Ds, T.Ts and M.Ts, payable in any currency. “It has been observed that the banks are retaining with themselves, even after elapse of more than ten years period, the amounts pertaining/favoring to the federal government, the provincial governments, or any agency/department/corporation of the federal/provincial governments, by way of any financial instrument… payable in any currency,” the circular said. The State Bank has advised the banks to, henceforth, surrender an amount equal to the amount of the aforesaid instruments as of 29th June 2012 to it at the earliest after the completion of legal formalities. -
Microsoft takes $6.2b charge, slows Internet hopes SEATTLE AGENCIES
Microsoft Corp admitted its largest acquisition in the Internet sector was effectively worthless and wiped out any profit for the last quarter, as it announced a $6.2 billion charge to write down the value of an online advertising agency it bought five years ago. The announcement came as a surprise, but did not shock investors, who had largely forgotten Microsoft’s purchase of aQuantive in 2007, which was initially expected to boost Microsoft’s online advertising revenue and counter rival Google Inc’s purchase of digital ad firm DoubleClick. Microsoft’s shares dipped slightly to $30.28 in after-hours trading, after closing at $30.56 in regular Nasdaq trading. The world’s largest software company said in a statement that “the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down.”
Euro weak in Asia TOKYO AGENCIES
The euro was weak in Asian trade on Tuesday, after the common currency rallied sharply late last week with traders now focusing on a European Central Bank (ECB) rate-setting meeting. The common currency was quoted at $1.2585 and 100.09 yen in Tokyo morning trade, little changed from $1.2582 and 100.05 yen in New York late Monday. The dollar was also little changed at 79.53 yen, from 79.50 yen in the previous day’s trade, ahead of key US jobs data later in the week as markets remain cautious about the health of the world’s biggest economy. Weak manufacturing reports out of the United States and China have stoked worries about the world economy.