PRO 03-08-2012_Layout 1 8/4/2012 4:57 AM Page 1
Saturday, 4 August, 2012
Asian markets hit by ECB disappointment HONG KONG APP/AFP
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SIAN markets retreated and the euro came back under pressure on Friday after the European Central Bank dashed traders' hopes for strong policy actions to support troubled eurozone economies. Downbeat earnings reports from two of Japan's biggest electronics firms also weighed on the Nikkei, with Sharp losing more than a quarter of its value in the morning session. Tokyo was 1.62 percent lower by the break, Hong Kong shed 1.17 percent, Sydney fell 0.97 percent and Seoul eased 0.82 percent while Shanghai was flat. Markets were deflated by the ECB's decision to hold off any concrete moves to support the euro such as bond buying, which many had hoped for after bank chief Mario Draghi said last week it would do whatever was needed to save the euro. On Thursday he reiterated that the ECB was ready to step into the bond markets -- but not just yet. In face of growing pressure, the ECB "may undertake outright open market operations of a size adequate to reach its objective," he said, but added that the details would be worked out "in the coming weeks". Whatever the circumstances, Draghi said it was "pointless" to bet against the euro. "It stays. It stays. It stays," he insisted. However investors, who had sent global markets surging over the past week as they factored in some sort of action, were unimpressed and Spanish borrowing costs bounced back above the
Not another LPG price hike! Producers raise price by Rs 19 per kg g
KARACHI APP
Local producers of liquefied petroleum gas (LPG) have increased prices by Rs 19,000 per ton in accordance to a rise 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 Friday. New prices are effective from August 3, 2012. He said per kilogram price of LPG has been raised by Rs 19 while 11.8 kg cylinder has been increased by Rs 224 and price of 45.4 kg cylinder went up by Rs 863. Hadi said that in Karachi, LPG will be sold at Rs 118 per kilo, 11.8 kg cylinder at Rs 126 and 45.4 kg cylinder at Rs 4,720. In Lahore, the price of LPG will be Rs 123 per kg, 11.8 kg cylinder at Rs 1326 and 45.4 kg cylinder at Rs 5,100. Similarly, in Khyber Pukhtoonkhwa, LPG will be available at Rs 128 per kg, 11.8 kg cylinder at Rs 1448 and 45.5 kg cylinder at Rs 5,514. In norther areas, Mansehra, FATA, Batgram and AJK, price of LPG will be Rs 132 per kilo, 11.8 kg cylinder at Rs 1530 and 45.4 kg cylinder at Rs 5,877. Hadi alleged that demand for LPG has surged to 1700 tons per day, but producers have kept their production at 800 tons per day for the last one and a half year. There is a need to increase LPG production in the country on the one hand and reduce its prices on the other. He feared that LPG sale will decline by 15 percent in the country due to this rise and affect the growth of this industry. This is also discouraging the investment of billions of rupees in LPG sector, he added.
seven percent danger level. "The delay in actions may last until the next ECB meeting (September 6)," said Anthony Lam, strategist at Credit Agricole. "In the meantime, a downbeat mood will continue hanging over the market." The let-down came after the US Federal Reserve had said on Wednesday that it would take a wait-and-see approach before unveiling any stimulus for the world's number one economy. The news rippled around global markets, with London losing 0.88 percent, Frankfurt 2.20 percent off and Paris 2.68 percent lower while Madrid shares plunged 5.16 percent and Milan was 4.64 percent off. On Wall Street the Dow fell 0.71 percent, the Nasdaq lost 0.36 percent and the S&P 500 dropped 0.74 percent. In foreign exchange trade the euro, which tumbled after the ECB announcement, remained under pressure in Tokyo as investors moved out of riskier assets and into safer bets such as the yen and dollar. The common unit bought $1.2176 and 95.27 yen in early trade, compared with $1.2178 and 95.26 yen in New York late Thursday. It was significantly down from the $1.2250 and 96.12 earlier in Asia before the ECB meeting. The dollar was at at 78.15 yen from 78.22 yen. In Tokyo Sharp shed 30 percent a day after it said losses in the first quarter to June almost trebled from last year as it struggles with the strong yen and weak demand in the key European market. Sony also lost around eight percent after reporting its quarterly loss had
widened while also cutting its full-year profit forecast. However, oil prices were higher. New York's main contract, light
sweet crude for September delivery advanced 35 cents to $87.48 a barrel and Brent North Sea crude for September
Bring on the chainsaw! SBP asked to slash key Policy Rate ISLAMABAD APP
The Islamabad Chamber of Commerce and Industry (ICCI) Friday urged the State Bank of Pakistan (SBP) to reduce markup rate by 150 to 200 basis points in the monetary policy scheduled to be announced on August 10. "The decision to cut markup rate to single digit is essential for reviving the business activities, overcome lowgrowth scenario, encourage new investments which would ultimately improve the economic growth of the country," ICCI President, Yassar Sakhi Butt said in a statement. He was of the view that maintaining mark-up at 12 percent by State Bank of Pakistan would further fuel the non-performing loans and unemployment in private sector. He said that the availability of cheaper money to the business doing people is
must to bring down the cost of business in Pakistan as the trade and industry were already facing huge losses on present level due to high cost of energy and its crisis in the country. He said reduction in bank mark-up rate could encourage fresh investment in the industry which had declined to 13.4 percent in FY11, thus reduction in markup rate would increase employment and exports of the country in long-term. He was citing the example of China, where mark-up rate was 6.56 percent, India 8 percent, Sri Lanka 7.75 percent and in Bangladesh 7.75 percent against 12 percent in Pakistan. ICCI President said that the economic meltdown in recent years had already proved that high policy rate had caused a great harm to economy and would continue to widen the fiscal deficit.
delivery was 32 cents higher at $106.22. Gold was at $1,590.80 at 0300 GMT, from $1,602.40 on Thursday.
We need gas! Textile exporters urge govt to import gas g
FAISALABAD AGENCIES
Pakistan Textile Exporters Association (PTEA) and the Pakistan Hosiery Manufacturers Association (PHMA) urged the government here on Friday to import gas to bridge the expected supply gap. This was demanded in a joint meeting of PTEA and PHMA held under the chairmanship of Rana Arif Touseef, President PTEA. They said that a regular and efficient supply of gas was vital for the textile industry as processing, printing and finishing of the fabric depended on gas heating. Gas is also an alternative energy source for the industry in the shortage of electricity and vital base of production, they said. Former Federal Minister and former chairman PTEA, Ch Mushtaq Cheema, Vice chairman Pakistan Hosiery Manufacturers Association Qamar Aftab, Former Chairman PHMA Dr Khurram Tariq and a large number of textile exporters were also present on the occasion.
Takaful rules 2012, an opportunity for insurance under Shariah LAHORE AGENCIES
Conventional insurance companies can open window operations of Takaful by taking benefit from Takaful rules 2012, announced by Securities and Exchange Commission of Pakistan (SECP). The Takaful industry will progress rapidly at national level under thee rules, said Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics, while talking to APP on Friday. He declared the Takaful Rules 2012 a good step for the industry which would promote the industry rapidly at
national level and the masses would have an opportunity to fulfill their insurance needs under Shariah. "In Pakistan, due to elements of interest and gambling in insurance, people avoid insurance. The Pakistan Takaful industry entered into a new era and the insurance industry will grow rapidly by SECP Takaful Rules 2012," Zubair said. "The Takaful industry is growing rapidly around the world with 230 companies and 13 re-Takaful companies with a total volume of $11 billion," he added. Takaful was started in 2005 in Pakistan when SECP introduced Takaful
Rules 2005 according to which only fullfledged Takaful companies had the permission to operate in this regard, five Takaful companies came into being due to efforts of investors of Malaysia, Qatar, Kuwait, UAE, Saudi Arabia and Pakistan. Among the five companies, three are general whereas two are providing services of Shariah compliance life insurance. Analyzing the insurance industry, he said that there were 37 general insurance companies, seven life insurance companies; five Takaful and re-Takaful companies are operating in Pakistan and now in accordance with the Takaful
Rules 2012, more than 40 insurance companies can start a window operation by fulfilling SECP laws and conventional insurance companies can be transformed into Takaful companies. He said that there were three types of business opportunities for the industry: 1 people, who do not use insurance due to interest factor; 2 people who use insurance by compulsion but they can come to Islamic insurance when this alternative is introduced; and 3 people who do not fall under the category of insurance as in Pakistan, the penetration of insurance is less than 1 percent. These rules are a milestone in the Pakistan insurance industry, he added.