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BusiNess Friday, 8 February, 2013
Profit-booking brings all-time high KSe down KARACHI: The apex bourse closed lower on Thursday with investors cashing in shares after the market hit an all time high the previous day. The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.14 percent, or 25.20 points, lower at 17,383.32. There was a higher volume of trading of shares in the Pakistan Telecommunication Corporation, with some investors booking profits after it rallied in the last few sessions. Small telecom-related shares like Telecard Ltd and World Call Telecom remained popular. Telecard Ltd rose 2.85 percent to 4.69 rupees. Pakistan Telecommunication Corporation fell 4.48 percent to 19.40 rupees. In the currency market, the rupee ended weaker at 97.85/97.92 against the dollar, compared to Wednesday’s close of 97.82/97.87. Overnight rates in the money market remained flat at nine percent. STAFF RePORT
SBP to announce monetary policy today
We expect each bank to develop and continuously improve its risk management and control framework depending on nature, location, size, sophistication, complexity of business operations and approved risk appetite. — SBP Governor Yasin Anwar
CheaP eleCtriCity Ahmed Mukhtar approves Draft National Policy ISLAMABAD
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N order to generate cheaper electricity from alternate resources, Federal Minister for Water and Power Chaudhry Ahmed Mukhtar has approved the Draft National Policy for co-generation by utilising bagasse and biomass. Presiding over a meeting on fast track development of bagasse-based power generation projects that was held on Thursday, the minister asked the ministry to submit the draft to the relevant forum for formal approval. During the meeting it was recommended that upfront tariff will be given for fast track power generation projects and power producers shall have the option to offer energy to the respective DISCOs or to the CPPA.
KARACHI
MFN status: Pakistan, india talks on 21st ISLAMABAD: Pakistan-India talks on improving bilateral trade and giving Most Favorite Nation (MFN) status to India would be held on Feb 21 in New Delhi. In this regard Commerce Minister Amin Fahim has sent a summary to Prime Minister Raja Pervez Ashraf for approval of his four day visit to India. Earlier the commerce minister had cancelled his scheduled visit to India from January 27 to 29, on the invitation of his Indian counterpart, Anand Sharma, to participate in the 19th Partnership Summit being organised by the Indian government due to tensions along the Line of Control between the two countries. Online
Earlier, the meeting was briefed by AEDB and PSMA that Pakistan is the 5th largest producer of sugarcane, produces 50 million tonnes of sugarcane annually, yielding over 10 million tons of bagasse. Power generation from bagasse would not only reduce the furnace oil import but also save Rs 33 billion worth foreign exchange per annum. The country has 87 sugar mills with a capacity to generate around 3,000 MW of electricity from bagasse in winters.
MCB announces financial results, assets grew by 17%, NPL reduced by 4% STAFF RePORT
ISLAMABAD: Pakistan’s central bank will announce its monetary policy for the next two months on February 8 (today). Analysts are expecting that the State Bank of Pakistan (SBP) may opt to keep policy rate unchanged in the upcoming monetary policy. SBP Governor Yaseen Anwar will announce the monetary policy statement for the months of February and March at a press conference to be held at the central bank’s premises. SBP had cut the policy rate by cumulative 2.5 percentage points since August 2012. Analysts ruled out any sharp pullback in inflation in the next 4 to 5 months provided that oil and other commodity prices stay within a manageable range. Thus, expected CPI inflation is expected to stay around 9 percent for FY13. inP
The meeting also proposed simplified procedure and reduction in the time line of production. It shall be mandatory for the power purchaser to buy all the energy offered by the power producer. All general, financial and fiscal incentives available to renewable energy projects of RE policy 2006 will be applicable to the bagasse-based projects. The minister said the government is utilising all resources to end the energy crisis and power generation from bagasse would be another step to produce electricity from indigenous resources. He appreciated the PSMA for taking interest in bagasse based power projects and assured to provide full cooperation. “It is also the desire of the President of Pakistan Asif Zardari that sugarcane bagasse be utilised for cheaper power generation,” he said. Initially 1,000 MW would be completed on fast track basis, he added.
The Board of Directors of Muslim Commercial Bank (MCB) Ltd declared final cash dividend of Rs 3 and 10% bonus shares, in addition to interim cash dividends of Rs 10 already paid for the year ended December 31, 2012, a statement of the bank said on Thursday. Earnings per share (EPS) for the year came to Rs 22.77 compared to Rs 21.12 for December 31, 2011. Return on assets came to 2.95%, return on equity was recorded at 25.07% and book value per share improved to 95.84. Total assets of MCB grew by 17% to Rs 765.899 billion. The analysis of the asset mix highlights 27% increase in investments to Rs 402.069 billion and 5% increase in gross advances to Rs 262.392 billion. The quality of asset saw considerable improvement as the non-performing loans
of the bank reduced by 4% to Rs. 25.562 billion reflecting improvement in infection ratio as at December 31, 2012. The deposit base of the bank grew by 11% closing at Rs 545.061 billion with an 18% increase in saving deposits, 13% increase in current deposits and 12% decrease in fixed deposits. CASA base, as a result has further strengthened to 85% compared to 81% last year. Given the Bank's strong financial footing and market base, MCB Bank Limited long term rating has been upgraded to AAA from AA+ previously in a notification by The Pakistan Credit Rating Agency on February 4, 2013. The Bank is already on the highest slot for its short term rating of A1+ on PACRA's entity rating scale. The Board of Directors met under the chairmanship of Mr. Mian Mohammad Mansha, on February 7, 2013 to review the performance of the Bank and approve the financial statements for the year ended December 31,
2012. For the year 2012, the Bank reported profit before tax of Rs. 32.054 billion and profit after tax of Rs. 20.941 billion with an increase of 2% and 8%, respectively. Net markup income of the Bank was reported at Rs. 40.856 billion whereas nonmarkup income came to Rs. 9.153 billion. Non-markup income registered an increase of Rs. 1 billion (13%) owing to 16% increase in fee, commission and brokerage income and 19% increase in dividend income during the year. The administrative block of the Bank registered an increase of 10% over 2011, which considering the inflationary pattern followed during the year, falls within the acceptable levels. The management has been successful in implementing central authorization levels and posting, ensuring control over expense growth. The provision charge of the Bank decreased significantly by Rs. 3.176 billion, primarily on the back of strengthened risk management framework.
Afghan traders struggling to pay Karachi port demurrage KABUL nni
Afghan traders said on Thursday that they are not able to pay the high demurrage demanded by Pakistan transport companies for their containers stuck at the Karachi port. Demurrage in this case refers to fees that the transporters can demand for the extra time the containers have been left in their charge. A letter sent from Pakistani transport companies to the Afghan traders has asked each Afghan company to pay over $185,000 demurrage to Pakistan. "The [Afghan] government should be responsible to talk to Pakistan and stand against this cruelty," Afghan trader Ahmad Shah said. "This is not acceptable for us. We are not able to pay. The government should take a decision," a trader and member of the Egg and Meat Association said. The Afghan Commerce and Industries Minister said he will discuss this matter on Sunday with Pakistani officials on his official visit to the country. "I will share this issue in the session of commerce ministers which will be held in Pakistan on Sunday," Anwarul-Haq Ahady
said. Ministry officials added that the economic committee has decided that all Afghan containers stopped in Karachi port will be exempt from customs tax. About 3,700 containers have been stopped at the Karachi port for three months. The Afghan Chamber of Commerce and Industry recently claimed that Afghan traders were being fined for each day the containers remained at the port, amounting to $50 million in three months.
Senate body concerned over decline in PSM performance ISLAMABAD Online
Severely concerned about the declining status of Pakistan Steel Mill (PSM), the legislative body of the Senate has recommended running the affairs of PSM through public-private partnership to make it profitable.The meeting that was held on Thursday under the chair of Senator Zafarul Haq, showed concerns regarding the continuous decline in the performance of PSM and said that people are using the Mill’s resources for their own vested interests. Senator Fateh Muhammad Hasni said that Balochistan has rich resources of iron that can fulfil the requirement of our industry but unfortunately they have not been utilised and raw material is imported from abroad. This not only increase extra burden on the national kitty, but also causes an increase in prices of products.He said after utilising raw material from within the country, the government can save billions of rupees and support the PSM. He said the government is not facilitating the mining sector of iron as FBR collects twice the amount of tax from this sector.Senator Haji Ghulam Ali said PSM is causing billions of rupees of losses to the national kitty and its debt is increasing therefore the government should focus on small industries. He proposed to bring out the PSM under the umbrella of the government, adding that privatisation is the only solution of the present status.Senator Ilyas Bilour said the steel business is flourishing in the country while PSM is declining with each passing day. He also was of the view that fair privatisation was the only solution.Senator Mushahidullah Khan said the government is not serious to run institutes efficiently.During the meeting, Pakistan Steel Mill Chief Executive Officer Shamshad Qureshi briefed the legislative body about functions and issues of the company. He said imbalance in the financial affairs existed from last fifteen to twenty years.He said in 2008-9 PSM received losses of Rs 25 billion and no relief was given after repeated requests. He said the government paid Rs 36 billion in the last four years and this amount was paid in installments therefore desired results were not achieved. The CEO further said PSM has signed an MoU with the Russian government and it is hoped that after a $500 million investment, the situation would improve.
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Britain will not accept an EU budget deal unless further cuts are made in negotiations in Brussels —David Cameron
Dell selected by KP govt for free laptops to students LAHORE: Dell has been selected to provide the provincial government of KhyberPakhtunkhwa (KPK) 25,000 Inspiron3420 computers which will be distributed to students in the province. The initiative is the largest of its kind ever in the province and is designed to help enable students and people of KPK to become productive and contributing members of society and to give back to the province. The first round of distribution will be conducted on Feb 10 at Peshawar University. Speaking about the initiative, Project Director KPK, Adeel Khan, said “This project is agreat leap in terms of equipping our youth to meet the challenges of the modern world and to keep Pakistan a competitor in the global knowledge economy. Dell’s involvement goes a long way in guaranteeing the success of this initiative.” Shahzad Aslam Khan, Country Manager Dell Pakistan & Afghanistan, said “We look forward to working with KPK as they increase technology access and the learning potential for students. Mobile computing devices have become essential to daily life — at work, at home and increasingly, in academic institutions. Students are leveraging devices of all kinds to access information, collaborate with their peers and teachers, and produce dynamic content inside and outside of the classroom. At Dell, we believe these devices can help support teaching and learning – and have the potential to personalize the learning experience for each student. Dell is delighted to work with KPK in this important program and is committed to providing these devices by meeting aggressive time lines and ensuring highest product quality.” PReSS ReleASe
MD NeSPaK posting not contrary to PeC rules: Prof Jameel LAHORE: Pakistan Engineering Council (PEC), which is the right forum for regulating consulting services in Pakistan, has not invoked any law against the appointment of present Managing Director of NESPAK, this was stated by Prof. Jameel Ahmad Khan, former Chairman PEC, former Vice-Chancellor of NED University of Engineering and Technology, Karachi and a former Director of NESPAK Board, in a press release issued here on Wednesday. He said that he had been the Chairman of PEC and certainly knew that there was a provision under Clause 3 of the Conduct and Practice of Consulting Engineers Bye-laws of PEC (1986) that an engineering consulting firm should be owned by professional engineers. However, the equity of the multi-disciplinary consultancy firm NESPAK is wholly owned by the State and as such it is exempted from the application of this law. PReSS ReleASe
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BusiNess B Friday, 8 February, 2013
Major Gainers COMPANY OPEN UniLever Pak 10075.00 Nestle Pakistan Ltd. 4701.00 Bata (Pak) 1445.00 Colgate Palmolive 1500.00 MithchellsFruit XDXB 349.80
HIGH 10578.75 4905.00 1490.00 1525.00 364.00
LOW 10200.00 4800.00 1445.00 1525.00 346.00
CLOSE 10543.75 4905.00 1490.00 1525.00 360.00
CHANGE 468.75 204.00 45.00 25.00 10.20
TURNOVER 840 120 150 50 3,400
542.00 225.00 199.81 76.10 135.00
542.00 213.75 190.00 71.25 129.00
542.00 213.75 191.26 71.25 131.20
-25.63 -11.25 -4.18 -3.75 -3.70
100 700 24,800 7,000 2,700
9.15 4.95 3.69 17.27 14.83
7.48 4.35 3.28 16.78 14.20
7.82 4.69 3.55 17.04 14.26
-0.46 0.13 0.06 0.38 0.18
55,673,500 26,590,000 25,400,500 18,703,000 18,513,000
Major Losers
eurozone interest rates kept on hold at 0.75% LONDON
T
Indus Dyeing Sapphire Textile Sitara Chemical Premier Suger Mills Murree Brewery
567.63 225.00 195.44 75.00 134.90
Volume Leaders TRG Pakistan Ltd. Telecard Limited WorldCall Telecom Jah.Sidd. Co. Byco Petroleum
8.28 4.56 3.49 16.66 14.08
AGenCieS
HE European Central Bank (ECB) has left eurozone interest rates unchanged at 0.75%, as had been widely expected. Many analysts do not expect the ECB to alter rates from their current record low until next year at the earliest. ECB president Mario Draghi told a news conference that business confidence was returning, but the situation "remains fragile". The last time the ECB made a change to its main interest rate was in July, when it was cut from 1%. Recent surveys have suggested that the pace of decline in the eurozone's manufacturing and service sectors has slowed. Mr Draghi said that there were signs that business and financial confidence in the eurozone was returning, although there "continues to be downside risks". The increasing amount of loans that European banks are repaying to the ECB was a sign of that confidence, he said. "It means they (banks) are less uncertain than they were a year ago."
interbank Rates USD GBP JPY EURO
PKR 97.9478 PKR 153.4940 PKR 1.0432 PKR 132.8368
Forex US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
BUY
SELL
99.10 131.28 154.00 1.0492 97.96 12.53 26.80 26.30
99.80 133.19 156.20 1.0636 100.01 12.79 27.14 26.58
CORPORATE CORNER
havas pushes its integration and digital strategy into media KARACHI: Havas announced another step forward with its integration strategy to underscore its simple and agile structure. The newly created ‘Havas Media Group’ will include all of Havas’s media agencies, consisting of Havas Media (operating in 126 markets), within which its media brand MPG and its digital brand Media Contacts will be fully incorporated and rebranded, and Arena Media (operating in 13 markets). The rebrand is supported by a new simplified structure that places its digital expertise and content marketing at the core of its operations. This move brings the media side of the business in line with the structure of Havas’s creative division, Havas Creative Group (composed of the Havas Worldwide global network and Arnold Worldwide micro-network). Vishnu Mohan, CEO, Havas Media, Asia Pacific, added: “This rebranding couldn’t have been initiated at a better time from the Asia Pacific perspective. Clients in the region are looking for simplicity in agency structures and an integrated offering. The objective of our current rebranding is aligned to that expectation. The simplification of brands within our group furthers our aspiration of being the most agile and integrated agency group with digital at its core.” PReSS ReleASe
Pakistan Japan Business Forum leads a pharma delegation to Japan KARACHI: Pakistan Japan Business Forum (PJBF) in collaboration with their counter parts in Japan have arranged for a delegation from Pakistan to visit Japan and interact with the Pharmaceutical Companies in Japan for possible business collaboration. The 13 member delegation is led by the Senior Vice Chairman of the Forum, Satoshi Nakagawa who is also the Country General Manager of Marubeni Corporation in
Pakistan, Director PJBF, Feroz Shah and the Executive Officer PJBF, Shaheena Anjum are also accompanying the delegation for coordination and networking support. Other individuals in the group are from Hilton, Neutro, Global, TG, Pharmevo,Vision, Drug, Glitz and Wilshire Lab who are to explore the opportunities available with the Japanese Pharmaceutical Companies for business in Pakistan as also the possibilities for Joint Ventures with them. During their stay in Tokyo, they will be exploring for prospective business partners, attend a seminar on SME's arranged by the Bank of Tokyo Mitsubishi UFJ, Karachi and also attend a dinner in their honour by the Pakistan Ambassador to Tokyo, Farukh Amil PReSS ReleASe
habib ahmed appointed honorary consul of russia
LAHORE: In a graceful event in the Embassy of Russian Federation, held to install Mr Habib Ahmed, as honorary consul, the Russian Ambassador, Mr Andry Budnik said that Habib Ahmed has played a vital role in promoting relations between the two countries and contributing in strengthening of economy of Pakistan. Earlier on reaching the Embassy, Habib Ahmed was warmly welcomed by the Ambassador Mr Budnik, Trade Commissioner Mr Yuri Kozlov and other senior diplomats of the embassy. PReSS ReleASe
LAHORE: Russian Ambassador Andry Budmik, Trade Commissioner Yury Kozlov, Habib Ahmed, Dr Shahid Hassan and Mr Mujeeb at Russian Embassy on the appointment ceremony of Habib Ahmed as honorary consul of Russian Federation in Lahore. PR
NaFa–Summit Bank atM Card launched KARACHI: NBP Fullerton Asset Management Limited (NAFA), a subsidiary of National Bank of Pakistan, joins hands with Summit Bank Limited to introduce a co-branded ATM Card for NAFA investors. The NAFA-Summit Bank ATM Card launching ceremony took place in Karachi on 6th February 2013 where Mr. Husain Lawai, President &
CEO of Summit Bank Limited and Dr. Amjad Waheed, CEO of NAFA, signed the co-branded ATM Card agreement. This ATM card will enable NAFA investors to withdraw cash against instant redemption of their investment in NAFA Funds, round the clock at over 6,000 1Link/MNET ATMs across the country. NAFA is managing 12 open-end mutual funds with a total asset base of over Rs. 50 billion. NAFA is rated ‘AM2’, which denotes very high investment management standards by PACRA and is amongst the four top rated asset management companies in Pakistan. Sharing his vision for Pakistan’s mutual fund industry, Dr. Amjad Waheed said, “This initiative is part of NAFA’s continuous effort to offer innovative investment solutions that add value and convenience to the experience of mutual fund investors in Pakistan.” PReSS ReleASe
NBP aggressively marketing home remittance business in Saudi arabia
easy Breezy Chic completes another successful event
KARACHI: Saudi Arabia is the leading remitting country for Pakistan in terms of Home Remittances. Fully understanding the business dynamics, NBP is aggressively conducting business development activities in the Kingdom. In this regard, Mr. Khalid Bin Shaheen SEVP/Group Chief-NBP and Chairman NBP Exchange Company Limited recently held a series of meetings with senior banking counterparts at Saudi Arabia to promote home remittances through formal channels. NBP has made remittance arrangements with all leading banks in the Kingdom to provide fast, convenient, reliable and absolutely free of charge remittance services to expat Pakistanis while creating awareness in the community about the availability of theses efficient services through various marketing campaigns while simultaneously discouraging the use of illegal Hawala/Hundi channels. The Pakistani community living in Saudi Arabia is also very responsive to the efforts and has overwhelmingly adopted the formal remittance channels in support of the national cause. PReSS ReleASe
KARACHI: The famous fashion exhibition Easy Breezy Chic completed another successful event, this time in the city of lights, Karachi. The exhibition highlighted designers like Monica Piracha, Kausar Humayun, Alina and Fareena, and Khanz. The exhibition also featured brands like Aisha Alam, Studio 9, Madiha Ibrar and Adil Sartaj’s Object store. The easy breezy chic event made a successful run earlier last year. The event kicked off from Lahore at the SukhChayn health and wellness club and rocked the town. Many established brands took part in the event along with newcomers who are trying to make a mark for themselves in this very competitive industry. The event provided at great platform to designer to showcase their talent to the people. “The turnout was just amazing and the people enjoyed themselves to the fullest”, said Irene Johnson, the event organizer. “The collection displayed in the exhibition were just fabulous and outstanding to say the least”, she further added when asked about the outfits that were displayed. The colourful event was well covered by channels and print media. The people who came to visit the exhibition were much delighted as they were treated to some the best collection and scintillating outfits by the designers. The exhibition was held on the 2nd of February 2013 at Price Jewellers near The Mall. The fun filled event started at 1p.m and ended at 6p.m. The hall was full for the most part of the day with people coming in large numbers at the end part of the event. PReSS ReleASe
LAHORE: Hassan Frid, Adam Nelson and Hussain Farid at the launch of Nelson Chocolate Bar on Thursday. STAFF PHOTO