PRO 11-03-2012_Layout 1 3/11/2012 12:49 AM Page 1
Car sales up 16pc in 8MFY12 Page 03
profit.com.pk
Sunday, 11 March, 2012
President signs bill to strengthen State Bank ISLAMABAD INP
P
REsIDENt on saturday gave assent to the state Bank of Pakistan Amendment Bill, 2012 to strengthen power of the central board of the state Bank to formulate and implement monitory policy and control the government borrowing. the Bill was passed by the National Assembly on 4th November, 2010 and subsequently introduced in the senate. It was passed by the senate in May last year with amendments and was again passed by the National Assembly last month with the amendment
made by senate. spokesperson Farhatullah Babar said under the Amendment Bill, sBP may require banks or financial institutions to hold minimum reserves on deposit accounts with the bank in pursuance of its monetary policy objectives. Powers of the federal government to supersede the central board have also been withdrawn, he said. A new sub-section in the Bill says, “the bank, members of the central board or the staff of the bank shall not take instructions from any other person or entity, including government or quasi-government entities. the autonomy of the bank shall be respected at all times and no person or entity shall seek to influence members of the central board and monetary
India to lift ban on cotton exports LAHORE
J
IMRAN ADNAN
ust after one week of imposing ban on export of cotton, the Indian Commerce Ministry is considering to take a u-turn by lifting the ban. According to the reports in Indian press, Indian Agriculture Minister sharad Pawar and Gujarat Chief Minister Narendra Modi have slammed on the central government for putting a ban on cotton exports. News reports revealed the change in position on the ban on cotton exports, followed by a meeting of group of ministers headed by Indian Finance Minister Pranab Mukherjee. Indian Commerce secretary Rahul Khullar indicated that Indian government was contemplating lifting of ban on cotton exports. the meeting itself was the result of some tough talk by Pawar who on tuesday complained to Prime Minister Manmohan singh, saying he was “kept in dark” on the “highly objectionable” move. He said the decision needed ratification by ministers, though the Directorate General of Foreign trade (DGFt) had already issued an order for banning exports. Indian press believes that it is the sec-
ond major setback for Commerce and Industry Minister Anand sharma, who also handles textiles ministry as a stop-gap arrangement. In December, the government was forced to put the decision on allowing foreign retailers to set up multi-brand store on hold, following opposition from within the congress, as well as coalition partners. Even then, it was the Department of Industrial Policy and Promotion, under sharma’s charge that had piloted the FDI proposal. On Friday evening, sharma said the meeting remained “inconclusive”, but a few minutes later, the commerce secretary let out the fact that the commerce department was reviewing the ban. signs of softening of stance were visible through the day although the commerce department took a combative position, saying cotton exports were at a new record. But minutes before the meeting, DGFt issued a policy circular clarifying that consignments, for which “Let Export Orders” had been issued till today, will be permitted. this was meant to address criticism of policy flip-flop as traders were complaining that even they had registered for exports with the government and contracts to supply cotton were left stranded.
QUICK EDIT
Clinging onto remittances R
ELyING predominantly on remittances to check deficits is not good policy. It’s not even good prescription. yet here we stand. there’s been no value addition in exports, no materialisation of tax expansion boasts, growth is chronically low, unemployment remains high, inflation is still a problem, but remittances remain healthy enough to offset serious damage to deficits (read serious by government standards). It’s one of those situations; it doesn’t matter much where relief comes from, or why, or for how long, as long as it comes. sadly though, the very makeup, rather breakdown, of the remittance rush exposes problems of long term trend maintenance. Receipts from the Gulf have increased year-on-year, while our residents further across the Atlantic have been less forthcoming, which, of course, is no reflection on their patriotism. Could the subtlety owe prolonged
slowdown in the Middle East, with the Arab spring, strained credit markets and below par growth ruling out most alternate investment avenues? the numbers from the west are equally revealing; stagnant remittances from some parts and visibly decreased from others. If the stagnant part is from Europe, where the sovereign debt debacle has seriously upset investment opportunities, and the declining trend is from America, where the economy is picking up, this particular thesis will be confirmed. such currents matter, and while the finance ministry breathes a welcome sigh of relief, it must prepare contingencies for situations when expats will have better areas to park their monies than shuffling them (through proper banking channels of course) back to the homeland. there must be more exports and tax collection, something which the government has not been terribly good at.
policy committee or the staff of the bank in the performances of their functions or interfere in the activities of the bank.” Power of the central board to formulate and implement monetary policy has been strengthened by adding two eminent monetary economists with sufficient research and teaching experience. For the purpose of regulating monetary and credit system, sBP may issue certificates of deposit and new instruments, including those that are shariah compliant. under the amendment, government borrowing shall be brought to zero at the end of each quarter, barring ways and means limit should be determined by the central board from time to time.
the debt of the federal government owed to the bank as on 30th April, 2011, shall be retired not later than eight years from that date. If any of the provisions about government borrowing are not observed by the federal government, the finance minister shall place before the parliament a statement giving detailed jurisdiction for the said failure. the amendment empowers state Bank to purchase, hold and sell currencies and instruments, including indices and derivatives, issued by governments, agencies, local authorities, corporate and supranational, in countries whose currency has been declared as approved foreign exchange.
PRO 11-03-2012_Layout 1 3/11/2012 12:49 AM Page 2
02
Sunday, 11 March, 2012
news
Remittances up over 23pc in eight months of FY12
‘Pakistan needs to develop non-traditional products for exports’ KARACHI STAFF REPORT
g
Almost all remittances came through banking channels, SBP jubilates g PRI credited for facilitating remitters, their families back home KARACHI
P
ISMAIL DILAWAR
AKIstANIs working overseas remitted $8.592 billion in the first eight months of the current fiscal year, ranging from july 2011 to February 2012. this, the central bank reported Friday, shows an impressive growth of 23.40 per cent or over $1.629 billion, when compared with $6.963 billion the country received during the corresponding period, julyFebruary Fy2011. the central bank attributes this impressive growth in the inflow of remittances to the Pakistan Remittance Initiative (PRI) and other stakeholders which was facilitating the overseas Pakistanis as well as their families back home. “the continued impressive growth in worker remittances is the result of the efforts made by PRI in collaboration with other stakeholders to facilitate both overseas Pakistanis and their families back home,” the bank said. It said the remittances received from all countries of the world showed growth during the review period. During the months under review, the bank said, the inflow of remittances from saudi Arabia, uAE, usA, uK, countries from Gulf Cooperation Council (including Bahrain, Kuwait, Qatar and Oman) and Eu amounted to $2.325 billion, $1.903 billion, $1.525 billion; $991.20, $968.91 and $244.91 million, respectively.
Last year, the Pakistani compatriots had remitted from these destinations $1.563, $1.627, $1.298 billion; $770.91, $820.02 and $220.24 million, respectively. the remittances received from Norway, switzerland, Australia, Canada, japan and other countries were counted at $632.45 million compared to $663.73 million received during last year. A monthly average breakup of remittances for the review months comes out to $1.074 billion as against $870.41 million of the corresponding period last year. this depicts a growth of 23.40 per cent, the sBP said. Last month in February, the bank said, $1.156 billion were sent back home by the Pakistani workers abroad, which showed an increase of 36.86 per cent over the same month when $845.28 million were remitted. “Almost all of this growth in remittances during February, 2012 over the corresponding period of the last fiscal year was through banking channels,” observed the state Bank. In February, it said, the inflow of remittances from saudi Arabia, uAE, usA, uK, GCC and Eu countries, respectively, aggregated to $317.51, $259.55, $197.14, $137.73, $123.50 and $29.27 million, respectively. While in Fy11’s February, the remittances were recorded at $209.60, $190.04, $152.55, $101.21, $98.55 and $24.58 million, respectively. the dollar receipts from Norway, switzerland, Australia, Canada, japan and other countries during the month in review amounted to $92.11 million as against $68.75 million of the same month in Fy2011.
PLDDB trains second batch of Artificial Insemination Assistants LAHORE
P
STAFF REPORT
uNjAB Livestock and Dairy Development Board (PLDDB) has launched the training of a second batch of 200 Artificial Insemination Assistants (AIAs) under its project entitled ‘strengthening of Artificial Insemination (AI) services through skill development of rural youth’. two hundred young boys having minimum qualification of matriculation have been selected from four districts, including Bhakkar, Mianwali, Narowal and
sialkot for the second batch. While, the Board had already conducted training of 105 boys (as AIAs) and 105 girls as Women Livestock Extension Workers (WLEWs), hailing from Layyah, Muzaffargarh, Dera Ghazi Khan and Rajanpur districts. the aim of this project is to improve the productivity of animals in rural areas by providing AI skills for making youth self-employed, said PLDDB General Manager (Fields services and Capacity Building) Dr Naveed Niazi, while talking to a group of journalists. He said the skill development of rural youth
LAHORE
T
STAFF REPORT
HE first ever international construction materials, property, furniture, stone and technology exhibition titled, ‘Build Pakistan 2012’, commenced yesterday at Lahore Expo Centre, Pakistan. the event is open for trade/corporate visitors only till tomorrow i.e. March 12, 2012. Federal Minister for Information Dr Firdous Ashiq Awan inaugurated the event. Fakt Exhibitions CEO saleem Khan tanoli and others were also present at the ribbon cutting ceremony. Dr Firdous said such events are helpful to revive the construction industry in Pakistan, which is mother of allied industry and plays a vital role in economic revival. she congratulated the organisers of Build Pakistan 2012 and underlined the
in livestock sector is a need of the hour for poverty alleviation and sustainable development. He disclosed there is a requirement of 16,000 AIAs in the livestock sector of the province, while shortfall is estimated at over 11,000. to fill this gap, the Board had planned to train 2,000 AIAs in the first phase. training of the first batch was completed from October to December last year, taking manpower from southern Punjab and now the second batch has started getting training from the last month. Dr Niazi said training of the next batch of 200
Women Livestock Extension Workers (WLEWs) would also be launched by next month. Giving rationale for women livestock workers, he said 95 per cent of women in rural area manage livestock, thus can contribute a great deal in enhancing the production through better management skills. He said AIAs are getting trained for three months and they will also be provided with AI Kit, mobile phone charges, plus Rs7,000 per month and motorbike (on interest-free instalments) with one litre of free petrol per day to serve the livestock sector.
Pakistan other than focusing on traditional items and foreign markets should also develop non-traditional products in order to enhance exports and business activities. the country has never focused on other important sectors apart from textile and rice, which is keeping the country out from many valued markets, said saifuddin N Zoomkawala, Chairman EFu General Insurance Limited and President Pakistan German Business Forum (PGBF), while addressing an awards distribution ceremony here at Federation House on saturday. the country should now concentrate on value addition in agriculture produce, minerals, stones, plastic, chemicals and others. He appreciated the performance of the exporters of fruit and vegetable sector for making good contribution in the country’s revenue. He said to bring changes in the normal lives of the people, media especially electronic, should shift their focus on trade and business activities rather than giving more time to talk shows. shujaat Ali Baig, another speaker said until and unless the education standards are improved with introducing a unified system in the country, positive changes would remain a distant dream. the event was also attended by leading business representatives, including sardar shoukat A K Popalzai, Balochistan Economic Forum, Faroq Afzal, exporter, Waheed Ahmed fruit exporter, Arshad Khan from Allied Bank, Anita Zahid from an NGO and others. the best performance corporate awards were also distributed to the nominees.
House Building Finance Company Ltd holds Annual Zonal Conference 2012 KARACHI STAFF REPORT
House Building Finance Company Limited (HBFCL) recently held Annual Zonal Conference for the year 2012. the objectives of the conference were to review the business performance of 2011, outline the strategy for 2012, set targets and design action plans. the conference was attended by senior executives from the head office in Karachi and field executives from branches across the country. While inaugurating the conference, CEO HBFCL Azhar A jaffri informed the participants that the business performance of the branch and zonal offices have been assessed on the basis of quality lending. He also conveyed to the participants the credit officers have been instructed to follow guidelines of state Bank of Pakistan (sBP), while booking loan cases. He also confirmed that despite the challenges faced by the financial sector, HBFCL’s performance of loans has been satisfactory and NPLs of the loans booked during the last three years are historically low. the CEO also distributed cash rewards and certificates to the best performing employees for their outstanding performance in their respective regions, zones and branch offices. speaking at the occasion, the CEO said, “this is the first time in the history of HBFCL that such an initiative has been taken to motivate the employees and it is in line with our transformation strategy to bring about a positive change across all areas. In future, the performance of branch offices would be assessed on the basis of profitability of each branch, individually.” While speaking to the participants at the conference, the CEO stated, “I, very much appreciate the improvement in the lending policy of 2011 and would like to see better results in 2012 with consistent lending practices and improvement in the area of customer services.
Build Pakistan 2012 Expo dire need of such events to promote investment and softer image of the country. she said foreign investors were not willing to invest in Pakistan due to security concerns, but such events could help the country in attracting foreign investment. Ms Awan said by establishing expo centre in Lahore, the federal government had met the demand of the business community in Punjab, now it is the responsibility of the business community to utilise the facility and attract foreign investors to visit Pakistan. Giving the message of president and prime minister, federal minister said the government recognise the role of private sector in the national economy.
Federal minister announced the government was considering various proposals to give incentives to Pakistani exporters in the forthcoming federal budget. she urged the business community and chambers of commerce to team up for setting up new export strategies for the country. she assured federal government’s full support to the private sector. Ms Awan also urged the media to play its positive role for promoting Pakistan’s soft image and avenues of investment in the country. Earlier, Planning Commission Deputy Chairman Dr Nadeem ul Haque also visited the exhibition. He went to different stalls and met domestic and in-
ternational exhibitors. He said construction industry played vital role in the economic revival of any economy, so the Planning Commission had laid focus on this in its growth strategy. talking to the reporters, he said Planning Commission also recommended revitalisation of the construction in its growth strategy which was adopted by the government as well. Dr Nadeem suggested changing in living style of Pakistanis for the promotion of residential flats. He said there was a need of policy change to run the construction industry and kick start construction activities in every town and cities. to a question about the growth
rate, Dr Nadeem said at present the growth rate is 4.5 per cent, but Pakistan needs to grow at 9 to 10 per cent annually, just like its neighboring countries, like India and China. the first Build Pakistan 2012 exhibition is featuring over 100 exhibitors, ranging from major global suppliers to regional agents and distributors of building and construction sector. As the largest event of its kind in Pakistan, Build Pakistan provides an unrivalled platform for architects, consultants, interior designers, builders, landscapers, developers, contractors, machinery and equipment manufacturers and suppliers from the public and private sectors to network, source and specify the latest building and construction products and services. the event provides the most comprehensive product offering for the building and construction industry.
PRO 11-03-2012_Layout 1 3/11/2012 12:49 AM Page 3
Sunday, 11 March, 2012
news
Pakistan100 breaks records for growth, transparency and competitiveness LAHORE
t
STAFF REPORT
HE solution to Pakistan’s economic challenges lies in the entrepreneurial talent of its own citizens and the dynamic entrepreneurs represent a new bright future for Pakistan. Pakistan has immense potential and offers best returns on investment hence, Pakistan would soon be a destination of investors from around the world. these views were expressed by speakers who addressed two-day AllWorld Pakistan 100 summit in Lahore. us Chargé d’ Affaires Ambassador Richard Hoagland, us Consul General in Lahore Nina Maria Fite, Chairman sECP, Muhammad Ali, Mian Mansha, Chairman Nishat Group and MCB Bank, Hussain Dawood, Chairman Dawood Hercules Corporation and Asad umar, Chairman Pakistan Business Council and CEO Engro Corporation attended the two-day event. talking to entrepreneurs in Pakistan, Richard Hoagland expressed his appreciation for fastest growing entrepreneurial compa-
nies who achieved exponential growth in last few years. He advised the Pakistani business community to lobby with its government to have strong legislation for investor- protection to ensure better environment for doing business. He said Central Asian states offer immense opportunities, which Pakistani businessmen and investors should explore and exploit. Chairman sECP Muhammad Ali said sECP is working on detailed guidelines for the function of corporate social responsibility in the country in order to help the corporate sector helping the society back in a better manner. He said success of Pakistani entrepreneurs is a testimony of the great potential this country possesses and how talented its human resources are. He appreciated the idea of having Pakistan 100 summit that seeks to highlight the success and achievements of resilient Pakistani entrepreneurs. Hussain Dawood, Chairman Dawood Hercules Corporation emphasised the need of having solid values for the successful business. He said that a business based on solid ethical values is bound to
PBIT to hold conference on free trade with India
grow faster and is beneficial for the society at large. Mian Mansha, Chairman Mansha Group, said Pakistani businesses need to venture out of Pakistan and invest in potential markets like Africa too. He said in the next two decades the world would be at our doorstep to eagerly invest in Pakistan. samad Dawood, CEO of Cyan Limited, said Pakistan100 is a testament to the zeal and passion of the Pakistani private sector. their accomplishment is even more impressive given the challenges that they have had to endure in the recent years. AllWorld Network also announced the winners of the Pakistan Fast Growth 100 (Pakistan100), a ranking of the fastest growing non-listed companies in Pakistan. Leading the Pakistan100 is number-1 company e2e supply Chain Management, which grew 1,918 percent between 2008 and 2010, with 2010 revenues above $50 million and 297 employees. Launched in 2005, e2e has risen to become one of the most successful end-to-end logistics companies covering Pakistan and
Car sales up 16pc in 8MFY12
LAHORE
KARACHI
STAFF REPORT
STAFF REPORT
ItH a view to comprehend implications of trade between India and Pakistan, to study its overall impact on our economy and to provide a road map to protect interests of Pakistani consumers and industry, Punjab Board of Investment and trade (PBIt) is organising a conference in the first week of April 2012 in Lahore. the conference is to be chaired by Chief Minister Punjab Muhammad shahbaz sharif. Vice Chairman Punjab Board of Investment and trade Dr Muftah Ismail, while giving details in this regard, informed that the particular theme of the conference will be overland trade between India and Pakistan, especially from the Wahga and possibly Ganda singh check posts. Dr Muftah Ismail expressed hope that the conference will help provide a practical road map for improving trade with India, while protecting both the interests of Pakistani consumers and industry in line with the aspirations of Chief Minister Muhammad shahbaz sharif. Ministers, senior officials from federal and provincial governments, leading industrialists, businessmen, economists and trade experts, NGOs representing consumer interests, editorial writers, academia and other intellectuals are expected to participate in the conference.
AR sales in the country during 8MFy12 rose by 16 per cent to 111,898 units compared to 96,142 units in the same period last year. the volumetric growth primarily stems from june to july deferred sales to avail the benefit of reduced tax structure announced in federal budget Fy12 and yellow cab scheme announced by the Punjab Government, said a report issued by topline Research. the growth, it said, primarily resides in below 1000cc segment with 1000cc segment depicting a growth of 35 and 30 per cent in 8001000cc segment. sales in 1300cc and higher segments have remained muted, depicting a growth of 1 per cent in the period under-review. In the month of February, car sales stood at 14,962 units up by 12 per cent as compared to 13,375 units in the same month last year, which are on the same levels as that of last month. On company wise basis, PsMC, which is a major player in the lower cc segment, continued to depict strong growth of 35 per cent in 8MFy12 to 70,162 units, versus 52,067 units seen in the same period last year. Mehran and Bolan, prime beneficiaries of announced yellow cab scheme, are showing a robust sales growth of 47 per cent. Moreover, sales of comparatively new models of swift have reached 4,500 units in 8MFy12, up 86 per cent as compared to 2,420 units sold in the same period last year. Overall, company’s market share has improved to 63 per cent in
W
Afghanistan. taking the second spot for Pakistan was Exceed Private Limited, with a growth rate of 1,320 per cent and 90 employees. Founded by the youngest entrepreneur on the Pakistan100, Exceed rose to prominence for its historic restoration of saidpur Model Village, redeveloped as an 18th Century city-museum with 5,000 residents. Commenting on the success of Pakistan100 at the Awards Ceremony, AllWorld co-founders Deirdre Coyle and Anne Habiby urged Pakistan100 to go further. “When no one expected much, the Pakistan100 broke records for growth, transparency and competitiveness. In the midst of challenging political and economic circumstances, the Pakistan100 broke many AllWorld records in relation to 15 other country rankings in the region, coming in only second to turkey in terms of entrepreneurial growth and transparency. Many of the companies have been founded in the last ten years, and have already grown to be industry leaders. An average of only 42 years old, most Pakistan 100 entrepreneurs plan to establish another company in the next two years.
C
03
CORPORATE CORNER Samsung expands its network of Concept Shops LAHORE: samsung Electronicsis expanding its network of ‘samsung Concept shops’ in numerous cities across Pakistan. A special inauguration ceremony will be held on 12th March, 2012, at the new Concept shop, established on the Gt road-Gujranwala. samsung’s Managing Director, Mr john Park, will attend the ceremony as the Chief Guest and address the gathering. Mr john Park said; “the samsung Concept shop is a model of the samsung Retail Brand, from where all retailers can learn and emulate for a consistent branding approach. samsung is committed to provide the Pakistani consumers with the best retail consumer experience.” samsung Concept shop is a One-stop solution for exploring and purchasing all samsung products with genuine samsung warranties. It displays; samsung 3D smart tVs, LED and LCD tVs, Monitors, Plasma Display Panels, It products, Cameras, Mobile phones, and Home Appliances. For the first two weeks, product installation services will be provided free-of-charge to the purchasers. During the current expansion programme beginning 12th March, new Concept shops would also be inaugurated in Lahore, Karachi, Hyderabad, Faisalabad, sargodha, jehlum, Multan and sialkot. PRESS RELEASE
Qatar Airways announces five new international routes BERLIN: Qatar Airways today announced further expansion of its rapidly-growing international network with five new passenger routes, more cargo services and capacity increases to a number of destinations served direct from the airline’s Doha hub. Iraq, tanzania, serbia and Myanmar are featured in the passenger route expansion programme over a six-month period starting in May. New freighter services will be introduced to Korea, Pakistan, south Africa and Oman, while frequency of passenger flights will be stepped up to destinations in Europe, Middle East, Africa and Asia Pacific. Qatar Airways Chief Executive Officer Akbar Al Baker unveiled the expansion programme on the opening day of ItB Berlin, the world’s largest travel show taking place in the German capital this week. two destinations in Iraq – the northern city of Erbil and capital Baghdad – will be introduced to the carrier’s Middle East network in May and june respectively. Qatar Airways will induct a second tanzanian point to its African map with the launch of flights to Kilimanjaro. PRESS RELEASE
RSPs share their experiences
8MFy12 as against 54 per cent in the same period last year. Indus Motors sales growth remained subdued. Company was able to sale 34,366 units compared to 32,991 units in the same period last year, up by a mere 4 per cent. Company’s flag ship product, Corolla, depicted a growth of only 5 per cent. though the company added new variants of Corolla in 1600cc segment and CNG vehicles (Eco), sales have been adversely affected by reduced farmer income this year on account of higher input cost (fertiliser and others) and reduced product prices, particularly cotton. Company’s market share declined by 4pps to 31 per cent in the period under review.
BHURBAN: the Rural support Programmes (RsPs), collectively the largest development network in Pakistan, gathered to share their experiences and discuss ways forward at their annual strategy retreat, held on the 6th and 7th of March at Bhurban. As the apex body of the RsPs, the Rural support Programmes Network (RsPN) organised the two-day event. In addition to over 100 representatives from the RsPs, the retreat also featured representatives from international and national development organisations, namely uNICEF, WHO, OXFAM, BRAC, PPAF and the Imran Khan Foundation (IKF). Amongst the core issues discussed, the debate centred on incorporating right-based approaches to the RsP’s existing institution building activities, strengthening the capacity of grassroots organisations and linking them to the public sector, and the way forward on eradicating polio from Pakistan. since 2011, RsPN has been working with uNICEF on a polio awareness building project titled, “Awareness Raising Amongst Communities of sindh for Polio Vaccination of Children” – as of january 2012, three phases of the project have been successfully implemented. In phase 3 alone, over 3 million people were reached by the campaign and a total of 2,120 campaigners were hired, out of which 1,272 were women. Discussions on the theme of gender received particular focus, with representatives from the RsPs and RsP-fostered community organisations emphasising gender mainstreaming and the role of gender in enabling community-driven rural development. the retreat featured the distribution of certificates to the successful graduates of the Gender training of trainers (Gtot) programme run by RsPN. PRESS RELEASE
KSE REVIEW
Bulls propel volume towards 6-year high as investors tilt towards low-tier scrips KARACHI
K
STAFF REPORT
ARACHI stock market continued positive momentum during the week as index closed at 13,353 points week-on-week (WoW) gaining 263 points during the week. Meanwhile, the intraday volumes shot to 553 million shares on the last trading session. However, the KsE 100-share index heavyweights remained silent where most of the activity was seen in low tier scrips as average traded value of the
market declined by 11.3 per cent WoW to $79.2 million. “the ongoing rally in the market was further supported by s&P stance for maintaining the current rating of Pakistan to B-/stable,” viewed analyst Hasan Raza at InvestCap. It though stood cautious over the ongoing political rift in the country, he added. Meanwhile, the government plan to re-initiate the privatization program, which is envisaged to fetch it around Rs30 to Rs35 billion, was duly welcomed. the increase in cement dispatches
by 3.48 per cent to 20.45 million tonnes during 8MFy12, increase in export prices to Afghanistan and prospects of cement exports to saudi Arabia kept the cement scrips in limelight during the week in review. In addition to that, bumper wheat production during current season and expectations of four per cent of GDP growth this year by the Finance Ministry also kept the market upbeat. Auto sector performance by the end of the week also provided some support. the auto sales, including car, LCV, and pickup, in the 8MFy12 improved by 16 per cent yoy to 111.9k
units. On the negative side, postponement of the 3G license auction by further two months due to failure of getting clearance from the Federal Cabinet came as a dent. As far as portfolio investment is concerned, the market witnessed an inflow of $7.5 million during the week compared to inflow of $5.6 million in the previous week. the market open interest position, during the week, increased by Rs 111 million or 4.8 per cent WoW to stand at Rs2.42 billion. However, futures spreads went down by 21 basis points WoW to 7.45
per cent owing to rise in regular market. Future volumes increased by 15.70 per cent to 14.7 million shares. the top-5 scrips at the futures counter holding 65 per cent of the total open interest were ENGRO, NBP, FFC, DGKC and POL. “the positive momentum in the market continues to prevail on the back of respite in the CGt issue,” Raza said. An increased activity in the KsE-100 index, he said, seems to reinforce this positivity. However, there is an increasing tilt towards low-tier scrips as far as activity is concerned, as depicted by decline in traded value at the bourse.