PRO 06-07-2012_Layout 1 7/6/2012 4:13 AM Page 1
Friday, 6 July, 2012
Govt sets meaty export target Vies to produce 3.3m tonne meat in 2012-13 g
ISLAMABAD APP
The government has set target of producing about 3.3 million tons of meat during the current financial year to fulfill the domestic demand as well as for export purposes. An official in the Ministry of National Food Security and Research told APP here on Thursday that meat production in the country was increased by 5.76 percent during last financial year. As many as 3.2 million ton meat was produced during the year 2011-12 as against the set target of 3.0 million tons posting 5.76 percent increase in its production, he added. He said that beef production target has been set at 1.8 million ton and mutton production at 0.643 million as against the last year's achievements of 1.76 million tons and 0.629 million tons respectively. He said that beef and mutton production during the year 2011-12 had registered a growth of 4.7 percent and 3.4 percent respectively.
Ministry ignores OGRA safety guidelines ISLAMABAD ONLINE
Ministry of Petroleum and Natural Resources has ignored the safety guidelines of Oil and Gas Regularity Authority (OGRA) as it allowed launching 2.7 tones LPG mobile filling stations in the country. Well informed sources in the ministry of petroleum and natural resources has told online that to promote LPG in the country ministry of petroleum is utilizing all available resources on immediate basis and mobile LPG station is part of these efforts. In this regard, Advisor to Prime Minister for petroleum and Natural resources Dr Asim Hussain inaugurated first LPG mobile filling station on April 28. However, sources said that Oil and Gas Regulatory Authority (OGRA) has showed its concerns over installation of mobile filling station as this mobile filling station is of 2.7 tones instead of 3.0 tones. Source told this LPG mobile plant should be of three tones while LPG association has fully ignored this element and introducing LPG mobile filling stations in the country which are not ideal and may result into loss of innocent human lives. Sources told that OGRA has showed its concerns that required standards pertaining to the mobile LPG filling stations have not been adopted and authority has also informed LPG association that mobile filling below 3 tones would be dangerous for human lives.
KSE volumes trace the apex of aridity g
Apex regulators due at KSE to ascertain why trading volumes are still dry KARACHI ISMAIL DILAWAR
T
HE apex regulators from Securities and Exchange Commission of Pakistan (SECP) are due here at Karachi Stock Exchange (KSE) Thursday next week to discuss, among other long pending issues, why volumes on the country’s largest bourse are still dry. Thursday saw trading volumes at the KSE nose-diving to 38.844 million against 100.826 million of the previous day. This shows a huge dip of 62 million shares or 61.4 percent. The stocks analysts believe that as the listed corporate entities were all set to announce their annual results the risk-averse equity investors were looking at the situation cautiously. “(The) stocks closed lower amid thin trade as investors remained cautious ahead of corporate earning announcements,” viewed ashen Mehanti, senior analyst and director at Arif Habib Securities. The analyst said the benchmark, 100share index, traded in a narrow range despite improved Pak-US relations and expectations for early release of $1.5 billion US’s Coalition Support Fund. Other factors that supported the index to close above
days low, Mehanti said, were the record cement dispatch data and positive sentiments in fertilizer sector on constant GIDC on feedstock. According to KSE, a team of SECP, led by Chairman Muhammad Ali, would arrive at Karachi bourse on Thursday, July 12, to hold meetings with the KSE’s Governing Board of Directors. Visiting on the invitation of the KSE, the SECP has notified agenda of the meetings that includes long-pending issues ranging from reasons for low volumes to the provision of internet software to KSE members. As per SECP agenda, the meetings would discuss
as to why the market volumes are still dry, how to revive the MIS, how to ensure a successful SLB product, the functioning of NCCPL as a Central Counter Party (Establishment of Settlement Guarantee Fund and Shifting of RMS), the development of derivative segment, debt market, establishment of Bond Pricing Agency, Revised Regulatory Regime for Credit Rating Agency, enhancement of per default contribution from IPF, SIVIE Counter/Exchange, Inter Exchange Trades, establishment of Securities Investor Protection Corporation, investor protection (trade confirmations by
Implementing planned projects, for a chance, would indeed help industry g
Projects' implementation to help industry grow 4.1pc ISLAMABAD APP
With the implementation of various projects, the overall Industrial sector is projected to grow at 4.1 percent during the ongoing fiscal year (2012-13) with major contribution of manufacturing sector, which will expand by 4.4 percent. The manufacturing sector would grow by 4.4%, while 3.0% and 7.5% growth rates have been fixed for large scale Manufacturing and Small Scale manufacturing respectively, official sources said. The main growing industries in 2012-13 would be chemicals, automobile, pharmaceuticals, electronics, leather products, paper & boards, cement and non-metallic minerals. Similarly Textile sector is expected to grow at a higher pace in 2012-13 as it
is expected that its products would be exported in huge quantity to European Union after approval of concessions by WTO to Pakistani textile products in February 2012. The exporters are expected to comply with different international obligations, like ISO Certifications, produce and export quality product and ensure timely exports. The sources said that for promoting the industrial sector during the ongoing year, Rs 2,049 million have been allocated to manufacturing sectorn including Rs 775 million for Ministry of Industries, Rs 612 million for Ministry of Production and Rs 227 million for Ministry of Textile. Major manufacturing projects to be carried out are include, Establishment of Chromite Beneficiation Plant at Muslim Bagh, District Killa Saifullah, Balochistan (Rs 104 million); Woman Business Development
Centre, Karachi (Rs 59 million); Red Chilies Processing Centre, Sindh (Rs 256 million) and Water Supply Scheme for Hub Industrial Estate phase-II (Rs 247 million). In addition the funds would also be utilized for the projects like Meat Processing and Butchers Training Centre, Multan (Rs 265 million) and establishment of Castor Oil Extraction Plant at Uthal District Lasbela (Rs 300 million). Similarly, the major projects of textile to be executed during the year include Pak-Korean Garments Technology Training Institute, Karachi (Rs. 300 million); Lahore Garment City Company, Lahore (Rs 587 million); Faisalabad Garment City Company, Faisalabad (R. 499 million) and Providing & Laying Dedicated 48 inch Diameter Mild Steel Water Pipeline for the Pakistan Textile City Karachi (Rs 637m).
stock exchanges), activation of ETFs and options, introduction of Islamic products and Shariah-compliant investment alternatives, utilization of CIIPF for intra-day margins, strengthening of surveillance capacity of the stock exchanges and introduction of SPAN margins, implementation of the Investor Education Plan, image building, integration and demutualization of stock exchanges, implementation of effective inspection plan, broker-to-broker trading on the same Exchange, Back Office Software, and the provision of internet software to the stock members. “The Chairman SECP has agreed that he along with his team shall meet the officials of the Exchange and Members of the Governing Board of Directors… to discuss and deliberate all matters of mutual interest for the development of capital market and some market related pending issues that need discussion for their resolution,” Haroon Askari, deputy managing director KSE, told the stock members. The KSE has asked the members for their views and feedback on any other issue or areas of concern that they feel should be discussed with the SECP in the said meeting. The members are to give the feedback latest by Monday, July 9.
PM ups the ante on Diamir-Bhasha Dam work ISLAMABAD APP
Prime Minister Raja Pervez Ashraf on Thursday directed that work on the multibillion dollar Diamir-Bhasha Dam be expedited as it was a project of national importance. Talking to Minister for Kashmir Affairs and Gilgit-Baltistan Mian Manzoor Ahmad Wattoo here at the PM House, Raja Pervez Ashraf said that the government had approved Rs. 41 billion as compensation for the people affected due to the project. Manzoor Wattoo appreciated the Prime Minister for keen interest in taking measures to solve the energy crisis, reduction in oil prices, issue of missing persons and resumption of NATO supply lines. The minister apprised the Prime Minister about the unanimous passage of the budget in AJ&K Assembly. He also apprised him about the progress on mega hydel projects, including Mangla Dam Raising Project.
Another two years for NIT g
‘Well-performing’ NIT gets another 2-year government guarantee extension KARACHI STAFF REPORT
The federal government has extended its sovereign guarantee for another two years for the National Investment Trust Limited (NITL) which during FY12 repaid Rs 5.0 billion to one of the lenders of NIT State Enterprise Fund (NIT-SEF) from its internally-generated cash. The official extension came after the partial repayment of financing which has reduced the Government Guarantee from Rs 20 billion to Rs 12.2 billion. “Government of Pakistan has approved to extend its guarantee for another 2 years,” COO NIT Manzorr Ahmed told a briefing here while unveiling the Trust’s results for FY12. Flanked by NIT Chairman and Managing Director Wazir Ali Khoja, the COO said the country’s largest asset management company posted a dividend of Rs 3.50 per unit for the unit holders of NI(U)T for the said year compared to Rs 4.0 per unit for last year. In a detailed presentation, Ahmed said the review period saw outstanding results along with remarkable
payouts for all Funds under NIT’s management. He said the payment of dividend at Rs. 3.50 per unit would involve a huge cash payout of Rs 4,798 million among its unit holders. Ahmed said the Fund had registered a healthy growth of 69.6% in realized capital gains which increased to Rs 1.439 billion from Rs 848 million of previous year. The dividend income earned, he said, also increased by 25% to Rs 2.421 billion in FY12 against Rs 1.931 billion in FY11. During FY12, NI(U)T Fund has earned a net income (excluding unrealized figures) of Rs 5.664 billion translating into an earnings per unit of Rs 4.13. The NAV per unit of NI(U)T increased from Rs. 28.14 (Ex Dividend) to Rs 30.27, thus generating a total return of around 7.6% against the benchmark (KSE100) return of 10.45%. NIT STaTe eNTerprISe FuNd: About the results of NIT-SEF, the COO said NITL had declared a bonus of 9.30% on the face value of Rs 50/- for the unit holders of NIT-SEF. He said in FY12 the Fund realized capital gains of Rs 1.658 billion compared to Rs 1.252 billion last year
showing a growth of 32%, whereas, the dividend income earned by the Fund stood at Rs 1.259 billion against Rs 1.342 billion earned during the previous year. NIT–equITy MarkeT OppOrTuNITy FuNd: The NIT Board has declared a bonus of Rs 6.75 per unit for its unit holders for the year in review. During the period under review, the Fund’s net profit (without impairment) grew by 42.2% YoY to Rs 831 million against Rs 584 million in the corresponding period of last year, translating into an earning per unit of Rs 17.50 and Rs 12.44, respectively. The Fund has realized a capital gains of Rs 433 million in FY12 as compared to the capital gains of Rs 226 million realized in FY11, thus depicting a YoY growth of 91.6%. Similarly, the dividend income earned by the Fund increased by 14.8% to Rs. 357 million in FY12 against Rs. 311 million in FY11. NIT-EMOF has outperformed its benchmark by a sizeable margin of 7.59% during FY12 where the NAV of the Fund increased by 18.04% against the benchmark KSE-100 increase of 10.45%. The COO said another 10% redemption of unit hold-
ing was offered and a redemption amount of Rs 551 million was paid to unit holders. Thus, so far unit holders had been offered 50% redemptions of their respective unit holding since inception of the Fund. NIT GOverNMeNT BONd FuNd: NIT declared a per unit distribution of Rs 1.1094 for unit holders of NITGBF compared to the per unit distribution of Rs 1.0201 for last year. During FY12, the Fund earned a net income of Rs 315 million compared to Rs. 305 million in FY11. Net income translates into per unit earning of Rs. 1.21 as compared to Rs. 1.03 per unit last year. NIT INcOMe FuNd: For NIT-IF, the NIT declared a per unit distribution of Rs 1.1065 compared to FY11’s per unit distribution of Rs 1.0581. The Fund earned a net income of Rs. 283 million as compared to Rs. 207 million earned in the previous year. Earlier, MD NIT Wazir Ali Khoja said the results were being announced after the Trust’s Board of Directors approved the annual accounts of all Funds. Khoja said as of 30th June (2012) NIT was managing five Funds with net assets under management of around Rs 74.152 billion.
PRO 06-07-2012_Layout 1 7/6/2012 4:13 AM Page 2
Friday, 6 July, 2012
Moody’s upgrades Nissan credit rating TOKYO AGENCIES
Moody's on Thursday upgraded its rating on Nissan Motor, citing its profitability and global market position after the automaker bucked a trend of falling profits among Japanese car giants. The global ratings agency said it upped its credit rating on the firm, part-owned by France's Renault, by one notch to A3 with a stable outlook, its seventhbest ranking on scale of 19. "The upgrade reflects Moody's expectation that Nissan's new product cadence, its continuing focus on cost controls, and its commitment to building global brand value will enable (Nissan) to sustain the strong performance," in its latest fiscal year, Moody's said in statement.
ECB cuts key rate quarter point to record low 0.75% FRANKFURT
Corporate earning bears, diplomatic bulls settle on a 7-pt plunge KARACHI STAFF REPORT
p
AKISTAN Stocks closed lower amid thin trade as investors remained cautious ahead of corporate earning announcements. Index traded in narrow range despite improved Pak-US relations and expectations for early release of $1.5bn US coalition support funds, said, Ahsan Mehanti, Director at Arif Habib Investments Limited. The Karachi Stock Exchange (KSE) 100share index declined 7.19 points or 0.05 percent to close at 14, 170.91 points as compared to 14, 178.10 points of the previous session. The KSE 30-share index shed 6.67 points to close at 12, 310.44 points as compared with 12, 303.77 points. The market turnover remains negative and traded 38.844 million shares after opening at 100.826 million shares. The overall market capitalization declined 0.01 percent and traded Rs 3.608 trillion as against Rs 3.610 trillion. Losers outnumbered gainers 114 to 129, while 84 stocks were unchanged. Mehanti added “Record cement dispatch data and positive sentiments in fertilizer sector
on constant GIDC on feedstock supported the index to close above days low.” The KMI 30share was up by 54.69 points to close at 24, 503.33 points from its opening at 24, 448.64 points. The KSE all-share index closed with a loss of 3.56 points to 9, 958.25 points as against 9, 961.81 points. The D.K.G Cement was the volume leader in the share market with 6.723 million shares as it closed at Rs 41.72 after opening at Rs 41.06. Lafarge Pakistan traded 2.446 million shares as it closed at Rs 4.50 after opening Rs 4.56. Jahangir Siddiqui Company traded 2.058 million shares as it closed at Rs 13.10 from its opening at Rs 13.33. Fatima Fertilizer Company traded 1.759 million shares and closed at Rs 25.26 as against its opening at Rs 25.05. Bank Al-Habib traded 1.756 million shares as it closed at Rs 28.55 as compared to its opening at Rs 28.69. On the future market, the turnover decreased by over five million shares 5.206 million against 10.010 million shares of Wednesday. The Unilever Food and Unilever Pakistan XD, up Rs 122.49 and Rs 95.00, led highest price gainers while, Siemens Pakistan and Bata Pakistan Limited down Rs 31.49 and Rs 26.60 respectively, led the losers.
AGENCIES
The European Central Bank cut its key interest rates to all-time lows Thursday in a bid to keep up the positive momentum after EU leaders made some progress in solving the debt crisis at a summit last week. The ECB's policy-setting governing council voted to lower the rate for its main refinancing operations by a quarter of a percentage point to 0.75 percent at the regular monthly meeting here.
European stock index futures signal flat start LONDON AGENCIES
European stock index futures pointed to a flat open on Thursday as investors consolidated recent gains ahead of widely anticipated moves from the European Central Bank and the Bank of England to stimulate the economy. At 0601 GMT, futures for the Euro STOXX 50 were flat, while contracts for Germany's DAX were up 0.1 percent and France's CAC futures were down 0.1 percent.
Shares ease from rally, euro stressed before ECB decision TOKYO AGENCIES
A rally in Asian shares fizzled out on Thursday as markets marked time before the European Central Bank's policy decision later in the day, with the euro staying pressured by widespread expectations of a rate cut to support fragile euro zone growth. Safe-haven U.S. dollar outperformed with its index measured against key currencies gaining 0.5 percent. "Until markets see how the ECB intends to respond to the debt problem through means other than interest rate cuts, it would be difficult to take positions on the euro," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent after hitting a sevenweek high on Wednesday. U.S. markets were closed on Wednesday for the Independence Day holiday. Japan's Nikkei average eased 0.1 percent, after closing at a two-month high on Wednesday. A Reuters poll of economists showed a majority expect the ECB to cut its main interest rate by 25 basis points to 0.75 percent on Thursday, while money market traders are evenly split on whether the central bank will cut the deposit rate, a separate survey showed. There is also speculation the ECB could restart its purchases
Business 02 Major Gainers COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE TURNOVER
Unilever Food UniLever Pak Colgate Palmolive Sanofi-Aventis Pak Pak Gum & Chemical
2564.69 7150.00 970.00 176.52 124.06
2690.99 7247.99 1018.00 185.34 130.26
2650.00 7115.00 990.00 183.99 124.50
2687.18 7245.00 1018.00 185.34 130.26
122.49 95.00 48.00 8.82 6.20
48 10 889 1,129 1,537
Major Losers Siemens Pakistan Bata (Pak) Limited Philip Morris Pak. National Refinery Exide (PAK)
711.49 660.00 150.48 243.61 175.00
680.00 662.00 154.00 244.00 177.73
680.00 631.00 143.00 241.00 172.14
680.00 633.40 145.44 241.15 172.84
-31.49 -26.60 -5.04 -2.46 -2.16
73 113 8,294 23,344 6,586
Volume Leaders D.G.K.Cement Lafarge Pakistan Jah.Sidd. Co. Fatima Fertilizer Co Bank AL-Habib
41.06 4.56 13.33 25.05 28.69
41.85 4.64 13.45 25.45 28.80
41.21 4.43 13.06 24.90 28.50
41.72 4.50 13.10 25.26 28.55
0.66 -0.06 -0.23 0.21 -0.14
6,723,928 2,446,880 2,058,711 1,759,519 1,756,769
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.3775 147.0212 1.1845 118.0002
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
of troubled euro zone bonds under its securities markets programme (SMP) to push down euro zone borrowing costs or take another round of long-term refinancing operation (LTRO) to inject additional funds into the financial system. "The focus for today's ECB meeting is whether it will take steps other than cutting interest rates, namely restarting SMP or LTRO," added Brown Brothers Harriman's Murata. The euro steadied around $1.2525, stuck in a recent $1.24-$1.27 range against the U.S. dollar. Against riskier currencies, the euro held near record lows, standing at A$1.2214 against the Aussie, close to its all-time trough of A$1.2124 hit in early February, and at NZ$1.5609 against the kiwi, just above its lifetime low of NZ$1.5541 hit on Wednesday. "We suggest that selling the EUR and buying a relatively 'high beta' currency, such as the AUD, would perform well in light of a more aggressive ECB response to the problems" in Europe, Barclays Capital analysts said in research note. Also on Thursday, the Bank of England is expected to launch a third round of monetary stimulus at its policy meeting. Surveys on Wednesday suggested all of Europe's biggest economies were in recession or heading there and there was little sign things will improve soon, backing views for easing by Europe's major central banks this week
BUY
SELL
94.30 115.76 145.14 1.1658 92.04 11.98 25.52 25.02 95.88
95.50 117.59 147.39 1.1838 93.98 12.20 25.89 25.36 98.83
Apple preparing to launch smaller tablet: report NEW YORK AGENCIES
Apple is preparing to launch a smaller tablet computer in the coming months in a bid to maintain its edge in an increasingly crowded market, the Wall Street Journal reported Thursday. The Journal cited unnamed sources as saying that component parts manufacturers had been ordered to gear up for mass production of the tablets in September, indicating the launch may be drawing near. It said the new tablet's screen would likely be smaller than eight inches (20 centimeters), compared to the 9.7-inch (25-centimeter) screen on Apple's marketleading iPad, launched in 2010. The newspaper cited one source as saying that Apple was working with screen-makers LG Display of South Korea and Taiwan's AU Optronics. Apple has dominated the market for tablet computers since the release of the iPad but faces increasing competition as Samsung, Amazon, Microsoft and Google roll out competing devices.
CORPORATE CORNER The Corporate Make-up introduced by Nina Lotia
MCB best, most stable bank of 2011: CFA karacHI: The CFA Association Pakistan has declared the MCB Bank as the best large bank for second consecutive year and most stable bank of the year for third time in a row. Ninth Annual Excellence Awards by the CFA Association for the year 2011 recognized the MCB Bank as the top performer in large banks category and also awarded the bank for its stability.
karacHI: Nina Lotia- a pioneer in shaping the beauty and imaging industry of Pakistan, launched “The Corporate Make-up” today in collaboration with Anila Weldon at the event “Tech-Know Mom”. This was an exclusive corporate training session for the working woman who wants to take her business idea to the next level.
Greenvalley introduces special UK imported items
ZONG extends its support to Shandur Polo Festival 2012 karacHI: the fastest growing network of Pakistan, has once again proved itself to be a true friend of the nation by supporting the Shandur Polo Festival which will be held from July 7 to 9. The telecom giant has stepped up to provide support for this one of its kind sports event held on Shandur Pass, the highest polo ground in the world at 3,700 meters.
Triple dynamite with Qubee in July
Wasim replaces Peracha as wi-tribe CEO karacHI: Qtel Group Thursday announced the appointment of Wasim Ahmad as the new CEO for wi-tribe Pakistan. Ahmad takes over from the outgoing CEO Mustafa Peracha who has led wi-tribe from a startup operation to a solid number two broadband provider in Pakistan and the largest WiMax operator.
variety of products scattered amongst the high demand frozen categories of Ice Cream, Desserts, Delicatessen, Vegetables and Exotic Fruits, Seafood and Snacks. Most of the products have been introduced for the first time in Pakistan.
raWaLpINdI: Greenvalley premium supermarket located at the high street shopping destination ‘The Mall of Lahore’ has introduced new lines of fresh imports from UK. The imported items include a wide
karacHI: One of Pakistan’s leading broadband service providers’, Qubee has launch yet another explosive promotion in July 2012, named as the Triple Dynamite offer. The campaign provides all new & existing customers with three times the volume of their chosen package. It should be noted here, the broadband service providers traditionally offer double volumes to their customers, however, this is the first time that a service provider has
changed the practice and offered triple volume. On the occasion, the Chief Executive Officer of Qubee, Mr. Jamal Nasir Khan said “Qubee is a customer-centric organization with a focus on rewarding users for their loyalty. Therefore, this summer, we have offered all new sign-ups to Qubee with triple volume in July & August, whereas for our loyal customer base we have already given them triple volume on their current package free-of-cost”
‘The Smart School’ launched LaHOre: “The City School” today announced the launch of “The Smart School” - a School Franchise Project based on e-learning and holistic educational development for tomorrow’s generation bringing, not only, progressive entrepreneurs but also futuristic educationists on board. Speaking on the occasion, Mr. JehangirFiroz, COO, The City School said, “We take great pride in introducing our new school franchise - The Smart School - in Pakistan. With the launch of this new project, we aim to promote e-learning educational model in Pakistan at a macro level. The City School has built a positive name for itself over the years in the sphere of education by imparting quality education that equips students to meet the challenges of the modern world. We want the same level of competency and commitment to become the hallmark of our new project, “The Smart School.”