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Wall Street unfastens itself from Spanish manacles Page 02
profit.com.pk
TAPI STANDSTILL
50 cent’s worth of deadlock No progress on TAPI transit fee between India and Afghanistan g Afghans want 54 cents per MMBTU, India wouldn’t go higher than 45 g Both parties might end up settling for 50 cents g
ISLAMABAD AMER SIAL
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crucial meeting of the three participating nations to finalize the transit fee for the $ 7.6 billion Turkmenistan Afghanistan Pakistan and India (TAPI) gas pipeline project failed to make head way on Tuesday Kabul and New Delhi failed to finalise the fee. An official source said that Afghanistan side had sought price of 54 cents per MMBTU for the transit of gas through its territory from India which was deemed high by the Indian officials who were ready to pay upto 45 cents per MMBTU. The two days talks between the three participating nations were held here to finalise the transit fee before the signing of the gas sale purchase agreement between the seller and the buyers later this month in Ashgabat. The source said that Afghanistan said mentioned that they were ready to reduce the price to 50 cents per MMBTU which the Indian side considered still too high and after much deliberation they showed intention to take their offer to 47 cents per MMBTU. But they said they still had to consult their higher authorities to make final decision. Pakistan also participated in the talks but it did not take aggressive part in the debate, as the source said that it has already told the two countries that it would be charging same transit fee from India as finalised with Afghanistan. He said that they would be sending the final transit fee to the ECC for approval.
Wednesday, 18 April, 2012
Inflation is here to stay Inflation to linger as money supply peaks to 9pc, thanks to soaring government budgetary loans g Govt borrowed Rs959b from banks during July-April FY12 g Growth–oriented private sector could secure only Rs 223b g Over 8.6pc hike in board money not in synchrony with 2.4pc GDP growth g Backbreaking CPI inflation stood at 10.79 percent in March g
KARACHI
T
ISMAIL DILAWAR
HE economic observers foresee big distortions in long-term inflationary outlook as monetary expansion in the poverty-stricken country grows beyond 8 percent, far higher than the current pace of GDP growth. The central bank reported Tuesday that monetary expansion in the country grew to 8.6 percent during July-April 6 (FY12) compared to 8.92 percent of corresponding period in FY11. In monetary terms the Broad Money, also called as M2, swelled to Rs 580.769 billion as against Rs 515.080 billion of same period last year. On the other hand, growth in the country’s Gross Domestic Product (GDP) is staggering between two and three percent. “For last four years all averages in the monetary sector are distracted,” recalled the economist Asfar Bin Shahid. Fiscal indiscipline the analysts cite as a sole reason for this disproportionate and therefore negative growth in the monetary expansion or, in other words, the supply of money. During the period under review,
the central bank said currency worth Rs 201.59 billion was in circulation, slightly less than last year’s Rs 257.29 billion. “This is because of government’s excessive budgetary borrowing (from banks) that is adding greatly to supply of money,” viewed A.B Shahid. According to State Bank figures, the cash-strapped government’s borrowing from the risk-averse banks had peaked to almost Rs 1 trillion, accumulating to over Rs 959 billion during first 10 months of FY12 against last year’s Rs 417.520 billion. The funds-starved government in the center and provinces, respectively, borrowed Rs 296.895 billion and Rs 662.280 billion from the state and commercial banks during JulyApril period. The review period last year had seen government’s budgetary credit from the banks standing at Rs 106.69 billion and Rs 310.826 billion. “This (government borrowing) has a huge multiplier affect that translates the Rs 300 billion government bank loans at least into Rs 1 trillion,” economist A.B Shahid said. The currency notes, he said, were circulating in the economy for non-productive
purpose. “The money is just traveling into the economy without any goods being produced.” Nauman Khan, an analyst at Topline Research, opines that above 8 percent growth in broad money would have been a positive indicator had it attributed by the private credit off-take. This, however, is not the case here as the banks’ advances to the growth-oriented private sector could hardly touch the Rs 223 billion mark during the months in review. “The long-term inflationary outlook would be on the higher side,” said Khan. Ideally, the analysts said the monetary expansion should grow in accordance with the GDP growth in the country. “The supply of money should increase at a pace slightly higher from the GDP growth as this would help the economic managers contain profits,” A.B Shahid suggested. The backbreaking inflation in the poverty-stricken country is staggering beyond 10 percent, the Consumer Price Index stood at 10.79 percent in March. The State Bank predicts that the price hike would continue to remain in double digits even during the next financial year, FY13.
COMMENT
Europe’s example
T
HERE are important lessons for Asia in Europe’s repeated breakdown, especially now as many years of all sorts of efforts have apparently failed to stem the tide, and a breakup of the single currency union seems imminent. With Greece expecting a hole-in-the-dyke scenario any moment, and austerity failing to sooth strained Italian and Spanish economies (Europe’s 3rd and 4th largest), there just isn’t money with European monetary authorities – while harsh austerity has left little further to milk out of the people – to keep the union together any longer. Defaults are going to follow, with cataclysmic spillover in commodity and currency markets. Unfortunately, contraction across Europe will bite into Asia’s most profitable business – exports. Recovery on the other side of the Atlantic too is shaky at best, though far, far better than Europe. little surprise, then, that even the growth engines of India and China have begun slowing down. And that will unsettle the other end of the emerging market supply chain. Commodity plays like Australia, New Zealand, etc, that provided the raw material for the furious expansion, will also decelerate, causing Asia-Pacific to slow in general. Even though Pakistan has remained largely decoupled from mainstream globalization, Islamabad has increased its trade and investment outreach of late, betraying a special liking for the emerging market phenomenon. Therefore, it must factor in from the European example that employing austerity at a time of low indigenous growth tends to strain international linkages. Any growth drive must now be prompted by wide mobilisation of capital and unclogging of capital markets. The exercise will require both increased public spending in the form of fiscal expansion, and stimulated private sector growth, easing the job market.
The calm before the storm World economy fragile, faces ‘uneasy calm:’ IMF WASHINGTON
G
REutERS
lOBAl growth is slowly improving as the U.S. recovery gains traction and dangers from Europe recede, but risks remain elevated and the situation is very fragile, the International Monetary Fund said on Tuesday. Another flare-up of the euro-zone sovereign debt crisis or sharp escalation in oil prices on geopolitical uncertainty could disrupt the world economy finding its feet now tensions in the have subsided, the IMF said. “An uneasy calm remains. One has the feeling that at any moment things could well get very bad again,” IMF chief economist Olivier Blanchard told reporters as he detailed the Fund’s World Economic Outlook. “Our baseline forecast is for low growth in advanced countries, especially in Europe, but with downside risks being extremely present,” he said. The global economy is on track to expand this year by 3.5 percent and by 4.1 percent in 2013, up slightly from 3.3 percent and 3.9 percent GDP output respectively that the IMF had forecast in January, when market concern was rampant that could default and Italy and Spain were facing budget crises. Since then, Greece has restructured its debt, and Spain are adopting tough fiscal measures and eurozone leaders have agreed to enlarge their bailout fund, causing financial market tensions to ease. The United States, meanwhile, is gradually gaining momentum while and other emerging economies appear on track for gradual slowdowns without crashing, the IMF said. But the gains are precarious. Should the euro zone crisis erupt once more, it could trigger a widespread dumping of risky assets and rob 2 percent from
global growth over two years and 3.5 percent from the euro zone, the Fund warned. Additionally, a 50 percent increase in the price of oil would lower global output by 1.25 percent, it said. To secure the global recovery, the IMF urged central banks in the United States, euro zone and to stand ready to deliver further monetary easing; governments to exercise caution over the pace of budget cutbacks wherever feasible; and Europe to consider using public funds to recapitalize banks. EURO ZONE SHAKY, U.S. IMPROVES: While European leaders have made “major progress” in building firewalls against financial contagion, the region faces a tricky balance of cutting government debt and restoring competitiveness without excessively stifling growth, it warned. European banks also are deleveraging, which will reduce their balance sheets by $2.6 trillion over the next two years and slice about 1 percentage point from growth this year alone. “Bad news on the macroeconomic or political front still carries the risk of triggering the type of dynamics we saw last fall,” the IMF said. The euro zone is likely to endure a mild recession this year, shrinking by 0.3 percent and then posting 0.9 percent growth in 2013, the IMF said. That is a minor improvement from the 0.5 percent 2011 contraction followed by 0.8 percent growth that it forecast in January. The United States, meanwhile, is “pulling itself up by its bootstraps” as domestic conditions improve, the IMF said, though the pace of growth remains constrained by an indebted consumer, high unemployment and a weak housing market. The IMF lifted its forecast for the U.S. to 2.1 percent this year, up from 1.8 percent in January. For 2013, it nudged up the forecast to 2.4 percent from 2.2 percent. It sees unemployment this year holding at
its current level of 8.2 percent and inching down in 2013 to 7.9 percent. Despite the improvement, the fate of the United States remains deeply intertwined with that of the euro zone, where renewed problems could rob 1.5 percentage point from the outlook. “A flare-up in the euro area from increased sovereign and bank stress could easily undermine confidence in the U.S. corporate sector and thereby squeeze investment and demand, undermining growth,” the IMF said. The United States faces its own fiscal challenges, made worse by political fights that have delayed work on crafting a medium-term plan to reduce its budget deficit. If tax cuts expire at the end of this year and planned budget cuts kick in, the United States will face an abrupt fiscal tightening. “Such massive adjustment could significantly undermine the economic recovery,” the IMF said. EMERGING ECONOMIES RESILIENT: The IMF is sanguine on the outlook for China, leaving its growth forecasts unchanged at 8.2 percent this
year and 8.8 percent in 2013. Strong domestic investment and growing consumption as the middle class expands are supporting growth offsetting a slowing exports. IMF’s deputy director of research Joerg Decressin, speaking at a news conference, welcomed Beijing’s decision last weekend to allow China’s currency to fluctuate within a narrow band and said more flexibility would help in rebalancing its economy toward internal consumption. He said it was unclear whether the Chinese yuan was fairly valued, since the IMF is reviewing its methodology for evaluating . Emerging and developing economies overall are seen growing by 5.7 percent this year and by 6 percent next year, upwardly revised from 5.4 percent and 5.9 percent from January. Their challenge is to prevent overheating while retaining room for fiscal and monetary stimulus should dangers from the euro zone or high oil prices spill over, the IMF said.
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Wednesday, 18 April, 2012
news
JAILBREAK
OF FUNDS AND FINANCE
Wall Street unfastens itself from Spanish manacles
Islamic banking is the next big thing Development of Islamic banking luring financial institutions g International conference on Islamic fund and investment to be held in Avari Tower g 15 asset management companies have 29 Islamic funds working in Pakistan g
LAHORE
Stocks breathe a sigh of relief, as corporate results and a plunge in Spain’s borrowing cost ease the investors’ blood pressure g
StAFF REPORt
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UE to mounting development of Islamic Banking and Finance in the country, International Financial Institutions have become more interested to invest in the field of Islamic Banking and Finance in Pakistan. Keeping this interest in view, in order to provide in-depth understanding and awareness to investors about Islamic Financial industry in Pakistan, an international conference on Islamic fund and investment is going to start from 23rd April, 2012 at local hotel(Avari Tower), in the Commercial and financial centre of Pakistan, Karachi, in which delegates from different countries like USA, UAE, Canada, UK, Bahrain, Malaysia etc. are participating. In the first day of conference, topics like Investment opportunities in Islamic Fund, Shari’ah Status of Islamic Fund, Islamic Brokerages, Stock Exchanges based on Shari’ah principles, Standards of Islamic
NEW WORK
C
REutERS
OCA-COlA Co (), Goldman Sachs Group Inc () and Johnson & Johnson () all posted profits that beat analyst forecasts and lifted expectation for in general. Of the 39 S&P 500 companies reporting earnings so far, 74.4 percent have beat analyst expectations, according to Thomson Reuters data. “Expectations were fairly low coming into first-quarter earnings season, and so far, the news has been surprisingly good,” said Mark luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. “We are accumulating some evidence that one, earnings are matching or exceeding expectations, and two, even in light of what’s going on in Europe and the trepidation with regard to global growth, companies are able to continue to respond positively in terms of profitability.” Although not all the shares of reporting companies rose, the results helped ease fears that earnings could start to tail off this quarter. Better-than-expected results from Spanish 12-month and 18 month bill sales pushed yields on Spain’s 10-year bond below 6 percent, but a longerterm debt auction later in the week could be a more telling test. Spanish debt yields have jumped recently on concerns about the nation’s fiscal stability. The Dow Jones industrial average gained 147.59 points, or 1.14 percent, to 13,069.00. The Standard & Poor’s 500 Index added 15.17 points, or 1.11 percent, to 1,384.74. The Nasdaq Composite Index rose 40.61 points, or 1.36 percent, to 3,029.01. The S&P 500 continues to trade around its 50-day moving average after sinking below that level for the first
time in more than 3 months last week. The level, currently at 1,377.35, is closely watched by traders. Coca-Cola climbed 2.7 percent to $74.35 as one of the top boost’s to the industrials after the world’s largest soft drink maker reported a higher quarterly profit. Goldman Sachs edged up 0.1 percent to $117.89 after first-quarter earnings fell from a year earlier but were better than many analysts had anticipated. “Earnings are coming in well enough to support the market and stabilize any significant downdraft. Spain specifically with the 10-year yield topping 6 percent, that is a headline that really instills fear into the market.” said Peter Kenny, managing director at Knight Capital In Jersey City, New Jersey. Johnson & Johnson shares slipped 0.2 percent to $63.85 after posting a higher-than-expected quarterly profit as revenue fell slightly. This week, 86 S&P 500 companies are scheduled to report results. Economic data in the United States was mixed as groundbreaking on homes fell unexpectedly in March, but permits for future construction rose to their highest level in 3 1/2 years. The PHlX housing index .HGX gained 1.6 per-
cent. A Federal Reserve report showed industrial output was flat for a second straight month in March, held back by a drop in manufacturing, and capacity utilization, a measure of how fully firms are using their resources, fell to 78.6 percent from 78.7 percent in February. International Business Machines Corp () reports earnings after the bell on Tuesday, and investors are hoping strong software demand will make for a repeat of last year’s first-quarter performance, when the company raised its full year forecast. A unit of Toshiba Corp () is in talks to buy IBM Corp’s point-of-sale terminal business, which includes cash registers, a source familiar with the deal said on Tuesday. IBM shares gained 1.2 percent to $205.18 to lead the Dow. Yahoo Inc () is also due to unveil earnings after the close, but the report may be overshadowed by comments from its new chief executive, Scott Thompson, who is expected to lay out his vision for the struggling web pioneer. Shares gained 2.1 percent to $15.09. Apple Inc () shares gained 2.4 percent to $594.21, putting shares of the maker on track to snap a 5-day losing streak, which sent shares down 8.8 percent.
HARDLY A SURPRISE
Fund, Islamic indices etc. would be discussed whereas a special workshop is being organized for the next two days in which the topics like Shari’ah standards of Islamic fund, international principles and marketing etc. would be discussed. International speakers like Kavilash Chawla, Managing Director, Nur Global Strategies, Chicago, U.S.A, Omar Farooq Kalair, President and CEO, Um Financial Group, Canada, Majid Siddique Dawood, Chief Executive Officer, Yasaar ltd, United Kingdom, Dr. Zubair Usmani, Shariah Advisor, MCB Bank limited, Karachi-Pakistan, Mir Muhammad Ali, Chief Executive Office, UBl Fund Managers limited, Karachi-Pakistan, Qazi Abdul Samad, Shariah Advisor, The Bank of Khyber, Peshawar-Pakistan, Mohammad Shoaib, CFA – Chief Executive, Al Meezan Investment Management ltd, Mr. Azeem Iqbal Pirani, Regional Manager, FWU Group, Mr. Nadeem Naqvi, Managing Director/Chief Executive Officer, Karachi Stock Exchange and many more distinguish speakers are participating in this conference.
Pakistan plans LNG imports from Algeria ALGIERS REutERS
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AKISTAN is seeking to start liquefied natural gas (lNG) imports from Algeria and a plan to build a regasification terminal in Karachi was discussed on Tuesday with the North African country, officials said. Algeria exports most of its lNG to Europe, where demand is expected to fall with the new Medgaz pipeline from Algeria is scheduled to start pumping to top Europe’s lNG importer Spain. Another Algeria’s customer, the United States, has lost interest in the imported gas because of booming North American shale gas production. “Pakistan is interested in Algerian lNG through the construction of a gas terminal in Pakistan,” the official APS news agency quoted Algerian Trade Minister Mustapha Benbada as saying. Benbada was speaking on the sidelines of a meeting of a joint commission on bilateral trade ties, which he co-chaired with Pakistani Petroleum and Natural Resources Minister Hussain Asim. Benbada said Pakistan had held talks
on the project with Algerian counterparts at the energy and mines ministry. The head of the oil department at Pakistan’s Petroleum and Natural Resources Ministry, Hamid Khan, said his country wants to buy lNG and is seeking Algerian expertise to construct the regasification terminal. “It’s a very important project for us. We will send a written proposal with a feasibility study of the project to the Algerian government to study it,” APS quoted him as saying. He said Pakistan would start importing lNG after building the terminal, which is expected to cost around $1.5 billion. Algerian Energy and Mines Minister Youcef Yousfi has said his OPEC member nation was considering looking for buyers in Asia, where Qatar holds a dominant market share. Algeria supplies about 20 percent of Europe’s natural gas needs. Its lNG output has dwindled over the last few years, but state-owned energy group Sonatrach said a new unit with a capacity of 5.4 million tonnes per year would come onstream in July. A second with a capacity of 7.4 million tonnes per year is due to start operations in 2013.
5/7
LCCI is not a big fan of power tariff hikes either Punjab follows suit Says further increases would kill govt’s reputation g Reminds everyone that electricity is a basic raw material, and compares tariffs with neighbouring counties g Reserves special dig for water, power ministry g
LAHORE StAFF REPORt
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HE lahore Chamber of Commerce and Industry Tuesday took strong exception to another increase of Rs.1.67 per unit in power tariff and termed it a plan to turn the country into a marketplace instead of a manufacturing hub. In a statement issued here, the lCCI President Irfan Qaiser Sheikh urged the government to refrain from any further increase in power tariff that is bound to give a death blow to its reputation. He said that despite making over 100 per cent increase in the electricity tariff in the last three years the genie of circular debt could not be bottled while the power crisis are deepening with every passing day. The lCCI president said that the ongoing electricity outages have not only curtailed the industrial production by 50 percent while it has also eroded the competitiveness that is a key to have a place in the international market. The lCCI President said that how the industry would
remain competitive at such a high price of electricity which is one of the basic industrial raw materials. We already have the highest tariff in our region as in India, the electricity tariff for industry is 10.5 cents, in Bangladesh 10.75 cents and in Sri lanka it is again 10.75 cent whereas in Pakistan tariff is already 15 cents meaning that 45 percent higher as compared to the region. With the recent increase, we will have double the tariff of electricity what the regional countries are offering to their trade and industries leaving Pakistan totally uncompetitive and unviable in the international market place. “The country had already lost a number of international markets to China, Bangladesh and India due to high cost of doing business and the decision to increase power tariff would make the Pakistani goods more uncompetitive.” The lCCI President said that the Ministry of Water and Power proposal was putting extra burden on the consumers who are paying their dues regularly and there are minimum line losses in their
respective Discos. Irfan qaiser Sheikh stressed the need to impose higher tariff on those distribution companies which have registered higher losses and less recovery. The lCCI President opined that the decision is bound to increase the incidence of electricity pilferage that already is 25 per cent of the 22 per cent line losses and eating up Rs 50-75 billion. He said that the business community was unable to understand that instead of taking measures to control line losses and enhance cheap power generation up to capacity, the policies are being evolved to add to the miseries of the business doing people. Irfan Qaiser Sheikh said that negative growth witnessed by the large Scale Manufacturing sector was indeed an eye opener and a wake up call to the government. He said that the industry needs cheaper electricity to keep the units operational and to complete the export orders well within the given timeframe but only because of the shortage of electricity the exports are not up to the mark.
Punjab follows Sindh’s footsteps on five days a week market closure g Commercial centers to close at 8pm g Provincial officials discuss power outages and their solution g
ISLAMABAD AMER SIAL
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INISTER for Water and Power Syed Naveed Qamar faced a tough time on Tuesday while explaining measures for implementing uniform load management plan throughout the country to the Punjab government, which said that it would be implementing closure of commercial centers at 8 pm and observing of five working days a week only after notification by the Sindh government. An official source said that a delegation of Punjab government held talks with the Ministry of Water and Power to review the progress of implementation on the energy conference. He said the representatives of the Punjab province expressed concerns over the non implementation of the uniform load shedding which was affecting economic activity in the province. After listening to their complaints, the minister directed
the concerned officials to ensure uniform load management in the country, particularly for industrial sector. He assured that the load shedding would be carried out as per schedule and if there was necessity for forced outages it would be only in the residential areas. Punjab government demanded limiting the electricity supply to Karachi Electricity Supply Company to the bare minimum to meet the requirements of the province. They were informed that under agreement with KESC it was being supplied 650 MW. However it was pointed out that the utility was getting more supply than the agreement which the officials said was necessitated sometimes due to system problems. The minister directed the officials to ensure to retain it to the agreement level. The minister asked the provincial government to implement the recommendations of the energy conference like early closure of markets and five days working week, which the provincial
government representatives said would be implemented only after Sindh notifies them. The source said that last time Sindh government did not implement the decision which put a pressure on the Punjab government from the business community. A statement issued by the ministry said that as per decision, maximum relief is being passed on to the industrial dedicated feeders which are being provided with un-interrupted supply. He directed there should be no forced load shedding for industrial sector and the schedule should be announced in consultation with chambers and traders organizations. He said that all the efforts are being made to enhance the power generation from the existing power plants. He informed that 400 MW has been added in the system after getting on additional gas of 76 MMCFD. The meeting was briefed on the current demand supply situation, reasons for dropping power generation in the last couple of days and measures to increase the generation within the next few days. The representatives of Punjab government gave a briefing on the current load shedding in the province and expressed their point of view. The meeting also discussed implementation on other decisions of energy conference like closure of commercial centers at 8 pm, observing of five working days in the office and new office timings in winter and summer.
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Wednesday, 18 April, 2012
03
news POWER PROBLEMS PREVAIL
Major Gainers
HONOURS EVEN
NEPRA increases Profit-taking bear, power tariff investment seeking bulls ISLAMABAD ONLINE
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HE NEPRA on Tuesday has issued notification of increase in power tariff by Rs 1.67 per unit. New tariff will go into effect next month. The increase has been announced as per monthly fuel adjustment for September 2011. last year, NEPRA had approved increase in power tariff by RS 1.76 per unit in September. After the Supreme Court decision against the rental power plants, Rs 0.8 had been reduced from the per unit cost of production while Rs 0.2 being charged in the head of power theft will not be charged anymore. Meanwhile, the Ministry of Water and Power has announced that power outages will continue for the next six months. The National Assembly’s Standing Committee on Water and Power has been told that India’s private sector has shown interest in providing electricity to Pakistan. Officials at Water and Power Ministry told the committee that electricity shortfall would remain at 4, 200 MW from April to September. Officials said that power demand would remain at 19, 300 MW against the supply of 15, 000 MW. Imtiaz Qazi, Secretary, Water and Power, told the committee that India’s private sector is interested to provide electricity to Pakistan. A summary, he said, has been forwarded to the cabinet in this regard. He said that daily closure of markets at 8am could save 1200 MW of electricity. Punjab Chief Minister Shahbaz Sharif has stopped implementation of most of the decisions taken at Energy Conference.
fail to settle dispute KARACHI
P
StAFF REPORt
AKISTAN Stocks closed lower amid lower trades after institutional profittaking in fertilizer stocks post lower than expected earning announcement for FFBl. Viewed by Ahsan Mehanti, Director at Arif Habib Investments limited. The Karachi Stock Exchange (KSE) 100-share index declined 6.49 points or 0.05 percent to close at 13,764.22 points as compared to 13,770.71 points of the previous session. The KSE 30-share index shed 57.10 points to close at 12,028.50 points as compared with 12,085.60 points. The market turnover remains positive and traded 268.727 million shares after opening at 261.021 million shares. The overall market capitalization declined 0.05 percent and traded Rs 3.529 trillion as
against Rs 3.531 trillion. losers outnumbered gainers 153 to 133, while 80 stocks were unchanged. Mehanti added “Improving Pak-US ties, Investor interest in bluechip oil and cement stocks on higher prices and strong valuations in the quarter end earnings announcement session at KSE supported the market.” The KMI 30-share was down by 128.17 points to close at 23,789.20 points from its opening at 23,917.91 points. The KSE all-share index closed with a loss of 4.28 points to 9,675.63 points as against 9,679.91 points. Fauji Cement was the volume leader in the share market with 43.042 million shares as it closed at Rs 7.11 after opening at Rs 6.76, gaining 35 paisas. Jahangir Siddiqui Company limited traded 33.227 million shares as it closed at Rs 16.84 after opening Rs 17.79 gaining 95 paisas. lafarge Pakistan traded 32.482 million shares as it closed at Rs 5.11 from its
opening at Rs 5.24, losing Rs 13 paisas. P.T.C.l.A traded 14.605 million shares and closed at Rs 13.28 as against its opening at Rs 12.96, rising 32 paisas. Dewan Cement traded 10.864 million shares as it closed at Rs 6.05 as compared to its opening at Rs 6.27, decreasing Rs 22 paisas.
Company
Open
High
Low
Close
Change
Nestle PakXD Bata (Pak) XD Island Textile National Foods Hinopak Motor
4281.97 620.42 235.00 108.73 80.66
4375.00 650.00 244.00 114.16 84.69
4281.97 591.00 223.25 108.00 76.65
4326.06 649.17 242.11 114.16 84.69
44.09 23 28.75 345 7.11 131 5.43 5,385 4.03 2,779
Major Losers UniLever Pak LtdXD 5873.33 Sanofi-AventisXD 174.22 Millat Tractors 505.38 Jubilee Life InsXD 71.00 AL-Abbas Sugur Mills82.95
Fauji Cement Jah.Sidd. Co. Lafarge Pakistan P.T.C.L.A Dewan Cement
6.76 17.79 5.2 4 12.96 6.27
Meezan Bank profit up by 54pc to Rs903mn in 1QFY12 KARACHI: Meezan Bank limited has recorded 54 percent growth in its profit-after-tax which increased to Rs 903 million for the quarter ended March 31, 2012 as compared to Rs. 585 million earned in first quarter of 2011. The Board of Directors’ of Meezan Bank limited in its meeting held in Dubai on April 16, 2012 approved the quarterly financial statements of the Bank for the quarter ended March 31, 2012. The meeting was presided by Sheikh Ebrahim Bin
5738.45 167.25 500.05 67.50 79.73
7.42 18.18 5.73 13.74 6.67
7.00 16.79 5.04 12.80 6.00
7.11 16.84 5.11 13.28 6.05
-134.88 20 -6.97 504 -5.33 4,295 -3.50 3,984 -3.22 5,898
0.35 43,042,332 -0.95 33,227,789 -0.13 32,482,767 0.32 14,605,256 -0.22 10,864,974
Interbank Rates US Dollar UK Pound Japanese Yen Euro
90.7100 144.7278 1.1243 119.2927
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Khalifa Al-Khalifa, Chairman of the Board. The Vice Chairman of the Board Abdullateef A. Al-Asfour also attended the meeting. Meezan Bank has achieved growth in all business segments and consolidated its position as the leading Islamic Bank in Pakistan. The bank’s total assets crossed landmark figure of Rs. 205 billion and the Deposits increased to Rs. 175 billion as at March 31, 2012. StAFF REPORt
KARACHI: OGDCl strongly refutes the contents of the news items appeared in the press under caption “OGDC chooses not to punish errant supplier”. It is unfortunate that on the basis of incorrect information, an attempt has been made to create a false impression about an important project which was successfully completed by the company and is now significantly contributing in mitigating the efforts of energy shortfall. It may be mentioned that as a result of installation of compressors at Qadirpur, the production of gas from the field has been enhanced by around 100 MMCFD and the production has now surged to 550 MMCFD. The production enhancement clearly indicates that the compressors are upto the mark. PRESS RELEASE
sistently impressive and we hope to achieve even greater success in future,” said Ali Mandviwalla, Chief Operating Officer, Synergy Group. There were various entries submitted for the year 2011 from all over the country by different ad agencies but the Shangrila’s Yahan Hai campaign was judged as the best in its entry category by a panel of renowned professionals. Awards were presented by the APNS, a premier body of newspapers publishers in Pakistan that aim to honour creative brilliance and best practices in advertising industry. The APNS Awards has grown into the country’s most respected and prestigious advertising competition, tailored for the manufacturing and service industry. PRESS RELEASE
Rana Assad Amin as Advisor Finance Division ISLAMABAD: Special Secretary Finance Rana Assad Amin has been appointed as Advisor Finance Division with immediate effect. According to a notification issued by government says Rana Assad Amin has been appointed “Advisor to Finance Division” with immediate effect. He will also continue to work as Spokesperson to the Ministry of Finance. StAFF REPORt
Food department posts coordinators on ‘PAJCCI to augment Pak-Afghan trade to wheat procurement centres $6bn in 3 years’
LAHORE: Provincial Food Department has announced that it has posted coordinators and in-charge centers on all wheat procurement centers of the province. In a press statement Food Department spokesman said that gunny bags have also been provided in abundant quantity on wheat procurement centers but due to seasonal changes wheat harvesting did not start in Punjab and as a result of rain in different districts, moisture content has increased in the wheat. He further informed that process of procurement will be started with the beginning of wheat harvesting. The spokesman said that a complaint cell has been set up in the office of Secretary Food for ensuring transparency in wheat procurement process. PRESS RELEASE
5651.00 167.25 500.02 67.50 79.60
Buy
Sell
90.80 118.04 143.34 1.1185 89.84 11.55 24.65 24.15 93.03
91.30 119.10 144.59 1.1282 91.13 11.71 24.84 24.33 95.30
AN IDEA AND A HALF
OGDCL production from Qadirpur gas filed enhanced 550 mmcfd KARACHI: Pakistan-Japan relations have grown to the mutual benefit of both nations, but Pakistanneeds to do much more if it is to join the list of developed countries. This was said by Mr Masahiru Sato, the Consul General of Japan in Karachi at a reception hosted at Jaffer House to celebrate Pakistan Japan 60 Years of Friendship & Diplomatic Relations. Mr Sato said Pakistan can make steady economic progress if it pays attention to ensure there is consistent economic policy, law and order, and an egalitarian society that embraces education and peaceful coexistence. The Japanese envoy also said that the Japan Fest held in Karachi earlier this year had attracted many visitors and would be held next year as well. PRESS RELEASE
5998.00 176.19 508.00 67.50 82.49
Volume Leaders
CORPORATE CORNER Japan, Pakistan ties have grown for mutual benefit: Envoy
Turnover
KARACHI: The formation of Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) is a breath of fresh air for both the countries, said President PAJCCI Muhammad Zubair Motiwala in a meeting held at his office. He said despite existing political upheavals and sensitive socio-cultural issues, the push for economic collaboration from business community across the border has always been explicit. Motiwala expressed said the existing trade volume of $ 3 billion can be enhanced to $ 6 billion in next three years with the active role of PAJCCI members. He also emphasized that the major benefit of this Chamber will be the saving of losses to national exchequer being caused by smuggling under the garb of Afghan Transit Trade (ATT). StAFF REPORt
LAHORE: Saad Asfar, Product Manager DI&It, Samsung E ze for “Scratch a Surprise” to the winner Mr. Mohammad Ashfaq. PRESS RELEASE
SYNERGY wins 22nd APNS Award KARACHI: Synergy Advertising was recently presented with the Best Magazine AD Category Award for the Year 2011 at the 22nd Annual APNS Awards ceremony held in Islamabad. “This is certainly an honour and a great tribute to the collective efforts of everyone at our agency. Other than the obvious and outstanding creative achievements; our performance, our capabilities and our overall output for all our clients is con-
KARACHI: tariq Durrani , Regional Director Sales Mobilink, Lahore presenting the key of 800cc car to a Jazz Inami Hungama winner, Mr Muhammad Javaid. PRESS RELEASE
375 > 243 WAPDA proposes construction of 375-MW hydropower station at Warsak LAHORE StAFF REPORt
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HE consultants of Pakistan Water and Power Development Authority (WAPDA) have suggested to construct a new underground hydropower station of 375 mega watt (MW) at Warsak as replacement for the existing power house of 243 MW. Till commissioning of the new power station, the existing power house will also continue to operate, wherein only the mostrequired rehabilitation works will be carried out. The consultants, comprising a Canadian and a Pakistan firm, have been tasked to the review of the dam, spillway and detailed engineering design of the new Warsak Power Station by the end of 2012, which will be followed by initiation of construction work on the project. The proposed 375-MW Warsak Hydropower Project is a component of the two-pronged strategy being implemented by WAPDA on priority for optimal utilisation of the water resource to inject low-cost electricity to the National Grid. Under the strategy, WAPDA is, on one hand, constructing new hydropower projects, and on the other hand, rehabilitating and upgrading its old hydel power stations. Currently, up-gradation of Jabban and Tarbela is underway, while feasibility study for rehabilitation / up-gradation of Mangla Power Station has also been completed, which recommends that generation capacity of Mangla could be increased to 1310 MW from the existing 1000 MW. It is pertinent to mention that the existing Warsak Hydel Power Station is located on the River Kabul at 30 kilometers from Peshawar. The project was completed in two phases. In the first phase four units having cumulative generation capacity of 160 MW were installed in 1960, while in the second phase, two more units of 83 MW were added in 1981, raising the capacity of the power station to 243 MW. After completing about 50 years, the generating units of the power house have deteriorated despite extensive repair and maintenance due to heavy sediments in the water of River Kabul.