PRO 19-02-2013_Layout 1 2/19/2013 12:09 AM Page 1
01
B
BUSINESS Tuesday, 19 February, 2013
PM asks Fahim to strengthen exports’ institutional framework
ISLAMABAD: Makhdoom Amin Faheem, Federal Minister for Commerce called on Prime Minister Raja Pervez Ashraf at the Prime Minister’s House on Monday and held discussions on a host of issues including prevailing political situation in the country and matters pertaining to his ministry. During the meeting, the Prime Minister directed the Federal Minister to focus on strengthening of institutional framework for promotion of exports, says a press release issued by the Prime Minister House. The Prime Minister directed him to institute such policies and programmes which promote regional trade as it has a huge potential, which needs to be tapped. “The promotion of goods and handicrafts produced by those hailing from the less developed areas could be instrumental in their economic empowerment”, observed the Prime Minister. The Ministry of Commerce should facilitate channeling their exports, he added. The Prime Minister directed Amin Faheem to sensitize the public on the achievements of the democratic government. APP
Attock Cement to trade CERs at iCtE after UNFCCC registration
Gwadar agreement will give new impetus to Sino-Pak relations. —President Asif Zardari
Bulls rally on PositivE economic indictors KARACHI
I
ISMAIL DILAWAR
F investors’ sentiments on the stocks market are any criteria, the economics seems to have had a profound edge over politics in the country of uncertainties like Pakistan. The investors’ bullish mood at Karachi Stocks Exchange on Monday depicted as if the traders were completely unwary of what was happening on the city’s roads that remained deserted throughout the day, thanks to a wheel-jam and shutter-down strike called by the Shia Ulema Council and other stakeholders to mourn the deadly carnage in Quetta Sunday. Even the traditionally most effective political upsets like the fresh split between the ruling collation partners, the PPP and MQM, did not seem to have its impact on the country’s largest sentiments-driven bourse. Rather, the improving economic indicators seemed to be dictated the investors’ sentiments at the country’s largest bourse that, despite the most uncertain law and order situation, gained 68.39 points or increased by 0.38 percent on the day. The benchmark KSE 100-share index closed at 17,865.61 points against 17,797.22 points of Friday, last trading session of the previous week. The index was also recorded peaking to the intraday high of 17,914.43 points before plunging to the intraday low of 17,750.12 points. Of the total scrips traded, 147 saw their share price increasing, 162 contracting and 22 as unchanged. The free-float KSE-30 index also closed in green zone at 14,624.29 points, gaining 61.51 points compared to
14,562.78 points of the previous session. The shares traded were recorded at the ready-counter at 291.611 million, registering an increase of 28.865 million compared to Friday’s 262.746 million shares. The value of total traded shares also rose to Rs 7.177 billion from Rs 7.063 billion. The market capital also set in the green zone by inflating to Rs 4.469 trillion compared to Rs 4.461 trillion of last week. The second and tier shares remained on the forefront led by the PTCL which counted its traded shares at 29.23 million gaining 0.82 paisas. The Pace (Pak) Limited, NIB Bank, Fauji Cement, Telecard Limited, Jhangir Siddqui Company, Engro Corporation, Maple Leaf, DG Khan Cement and Aisha Steel were other volume leaders of the day. The trading on the future side also grew to 31.3 million shares from the previous 19.71 million. The earning announcement session was cited by the market analysts as a primary sentiments-booster on Monday.
The index was recorded peaking to the intraday high of 17,914.43 points before plunging to the intraday low of 17,750.12 points. Of the total scrips traded, 147 saw their share price increasing, 162 contracting and 22 as unchanged
PETROLEUM MINISTRY recommends gas sale price at $4.1 per mmbtu KARACHI STAFF REPORT
KARACHI: The Attock Cement Pakistan Limited (ACPL) would be trading the Carbon Emission Reductions (CERs) in the International Carbon Trade Exchange (ICTE). The ACPL, one of country’s leading cement manufacturing and exporting firms, would be able to trade thousands of CERs in the ICTE annually. According to company sources, the ACPL has got its Waste Heat Recovery System (WHRS) project registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the qualification of CERs. With this registration the cement giant is expecting from the the WHRS project CERs approximately 35,000 per annum. The company has also shared this material information with its shareholders at the Karachi Stocks Exchange Monday. “These CERs are tradable in the International Carbon Trade Exchange,” Company Secretary Irfan Amanullah told the front regulators at KSE. The listed firms are bound under Clause (xx) of the Listing Regulation No 35 under the Code of Corporate Governance to share any material information with its stakeholders on the country’s equity market that could impact, in a positive or negative way, the price of its shares. STAFF REPORT
“(The) stocks closed bullish amid higher trades in the earning announcement session at KSE on strong earnings outlook,” viewed Ahsan Mehanti, a senior equity analyst. Other leading attributable factor Mehanti saw at work to enhance confidence of the risk-averse investors on Monday was the small but significant surplus the country was able to achieve in its current account during the first seven months of current fiscal year. According to data released last week by the central bank, during July-JanuaryFY13 the country’s current account posted a surplus of $ 62 million compared to a huge deficit of $ 2.792 billion during the corresponding period of FY12. The surplus, according to chief spokesman of State Bank of Pakistan Syed Wasimuddin, was “due to the Coalition Support Fund (CSF) and reduced trade deficit”. While the review period saw the trade gap narrowing down to $ 8.774 billion from last year’s $
The industry sources are foreseeing the average gas sale price to be set at $ 4.1 per mmbtu as the Ministry of Petroleum is said to have submitted its recommendations on the fertilizer sector’s gas requirement. This price would be inclusive of the average sale price of $ 3.75/mmbtu along with $ 0.35/mmbtu that would be added as the average tolling charge by the gas utility company like the SNGP. Quoting the industry sources, the analysts at Arif Habib Research Monday said the Ministry of Petroleum had recommended that Engro Fertilizer, Pak-Arab Fertilizer, Dawood Herculus Fertilizer and Agritech Limited would need 205mmcfd gas during the interim period. The source-wise breakup shows that of this total 130mmcfd would be provided from Kunar Pasaki Deep (KPD), 22mmcfd from Mari, 25mmcfd from Makori and 28mmcfd from other gas fields.
2nd Pak-China business forum in March ISLAMABAD APP
COMSATS Institute of Information Technology (CIIT) will organize 2nd PakChina Business Forum in March, to promote University -Industry collaborations in business and economic sectors for the mutual benefit of both the countries. CIIT introduced an academia driven model of Business Cooperation by establishing Pak-China Business Forum to promote
“The minimum time period expected would be around eight months,” they said. About the impact of this development on Engro, the analyst said the current scenario placed Engro in between the devil and the deep blue sea, where Engro had been showing reluctance in finalizing the mentioned Gas Sale Agreement (GSA) due to agreement with the government for keeping the final feedstock price intact at $0.7/mmbtu. “By accepting the aforesaid GSA, the Engro’s urea production would be increased and, assuming 80 percent capacity utilization at current urea prices, it would be enough to pull EFERT’s bottom line out of the red zone, as we estimate an EPS of PKR 0.67 (at $ 4.1/mmbtu rate),” they said. Further salvation, the market observers said, might come for EFERT if it paid only tolling charge (at $ 0.35/mmbtu) and received gas at subsidies rates ($ 0.7/mmbtu) as per initial agreement. This scenario yields an earning per share of Rs 5.18 for EFERT (for ENGRO: Rs 10.86), the analysts said. academia-industry collaboration in business and economic sector for mutual benefit of both the countries. The seminar will comprise project exhibition, seminars, workshops and industrial academic expo. Major Chinese and Pakistani companies, small and medium enterprises, entrepreneurs, universities, and research & development organizations will attend the forum activities. According to an official, the forum will provide an opportunity for commercialization of products and processes of the participating organizations. CIIT started its journey in 1998, and established its first campus at Islamabad in April 1998. In August 2000, in recognition of CIIT’s achievements, the government granted it the status of a Degree Awarding Institute (DAI) through promulgation of its charter.
9.418 billion, the country received $ 688 million from its non-Nato allies in the United States in December last year as war reimbursements, popularly known as CSF. Washington’s reported willingness to continue the reimbursement of CSF to Islamabad despite opposition from some Congressmen also boosted the investors’ confidence at Karachi bourse. “(The) $62 million current account surplus for JulyJan 2013… speculations ahead of US CSF release” Mehanti said played as a catalyst. The receipts under the head of worker remittances, which amounted to $ 8.207 billion during July-JanuaryFY13 compared to $ 7.436 billion of last year, are also considered to be a persisting stimulus to this effect. Other factors that impacted the investors’ sentiments positively were the expected hike in KESC’s power tariff easing concerns for circular debt in the energy sector, hopes for the OGDC gas sales agreement with fertilizer companies and improved outlook for LDI segment revenue for telecom stocks, the analyst said who also is a director at Arif Habib Securities. This Mehanti said was “security concerns in the city and rising political uncertainty after key (the) coalition partner (MQM) exits government”.
UAE’s Ajman Free Zone’s road-show in Pakistan on 26th KARACHI: The Ajman Free Zone Authority (AFZA) is organizing a seminar to enhance business relations, promote trade and strengthen ties with Pakistan’s business community. The road show is aimed at Pakistani businessmen, entrepreneurs and investors that would like to spread their operations internationally, especially in the Middle Eastern region whereby the UAE serves as a springboard and a centre point to enter the regional markets. The road show will be held on 26th February here at a local hotel in which potential Pakistani investors will be briefed about diverse investment options at AFZA through which emerging and established Pakistani industrialists and entrepreneurs targeting emerging markets can set up operations in the Ajman Free Zone. A three-member high profile delegation from AFZA will arrive from UAE for the INVESTORS MEET on 26th February. During their visit, AFZA officials aim at meeting investors from various industries, trade and service sector and showcase multiple facilities and business investment opportunities available for the Pakistan business community. The convenient set-up solutions, diverse range of licensing options along with a tax free operation are some of the core subjects to be discussed with the prospective investors. Mahmood Al Hashemi, Director General of AFZA, in his statement said that “We have been able to attract significant investments from all over the world and are committed at facilitating services to these entities through cost-efficient, flexible and innovative platforms”. So far, AFZA has attracted over 7,000 companies with a significant chunk of SME investments in the portfolio. Ali Fahmi, Head of Customer Services Department said: “Pakistan is an important market for Ajman Free Zone and the investment from the country has been growing over the last few years. Ajman serves as an opportunistic destination for Pakistani business due to close proximity to Pakistan, a strong connectivity with ample of flights between the countries and robust infrastructure. We are confident of offering investors from Pakistan all assistance required in setting up and ensuring thriving operations as their success reflects our”. Situated at the foot of the Arabian Gulf, the Ajman Free Zone is widely regarded as the ideal depot for the supply of goods and services for both domestic and regional markets around UAE. STAFF REPORT
PRO 19-02-2013_Layout 1 2/19/2013 12:09 AM Page 2
India’s rise is going to be one of the great phenomena of this century and Britain wants to be its partner of choice. — British Prime Minister David Cameron
LsM grows 6.5% in December, 2.13% in first half of 2012-13 ISLAMABAD APP
The country’s Large Scale Manufacturing (LSM) has registered positive growth of 2.13 percent during the first six months of the current fiscal year over the corresponding period of the last financial year. On year basis, the LSM grew by 6.5 percent during the month of December 2013 when compared to the same month of last year, according to the data of Pakistan Bureau of Statistics (PBS). The Quantum Index Numbers (QIN) of LSM stood at 107.96 points during July-December (2012-13) against 105.71 points during July-December (2011-12). During the period under review, industries monitored by Oil Companies Advisor Committee (OCAS) registered increase of 0.63 percent while the indices of Ministry of Industries grew by 0.21 percent and that of Provincial Bureaus of Statistics by 1.29 percent. The industrial items that witnessed growth during the first six months over the same period of last year included food beverages and tobacco (2.69%), iron and steel products (19.3%), coke and petroleum products (10.45%), paper and board (34.84%), rubber products (28.44%), pharmaceuticals (6.5%), non metallic mineral products (2.89%) and Textile (0.24%). The items that witnessed decrease in production during the period included fertilizer (10.01%), electronics (12.7%), wood products (21.02%), leather products (4.81%), engineering products (12.47%) and automobiles (9.08%).
Karachi businessmen condemn politics of strikes and ‘dharnas’ KARACHI
T
STAFF REPORT
HE trade and industry in this financial capital of the country Monday shown serious concern over a new wave of terrorism and unrest across the country, particularly in Karachi for the last few days. In a joint statement issued here, Patron In-Chief Korangi Association of Trade and Industry (KATI) S.M. Muneer, Chairman Mohammad Zubair Chhaya, President All Karachi Industrial Alliance Mian Zahid Hussain and Vice Chairmen Najmul Arfeen and Niaz Ahmed showed an “extreme concern” over the continued targeted killing and the frequenting closures of businesses due to strikes and unrest. “It seems that some elements have decided to completely destroy the economy of Karachi and snatch peaceful atmosphere of Karachiites permanently,” they said. The traders and industrialist said there was no resilience being shown either by the political parties or religious factions and adamant toresort to
strikes and ‘dharans’ in the city not only disturbing the lives of the peaceful citizens but compelling the trade and industry and market to shut down. They further showed their dismay over the loss of precious time of the young generation due to frequent closure of schools and colleges in the city. They particularly mentioned the pathetic attitude by the provincial government and law enforcing agencies (LEAs) not to pay heed on continuing target killing and extortions. “For God’s sake all the political parties and religious factions should get united to face and fight the enemies who are taking toll of Karachi’s peaceful life and crippling its economy to paralyze the entire country economically,” said Chairman KATI Mohammad Zubair Chhaya. He said while the LEAs and the present government had miserably failed and was not interested in restoring peace and stability in the city anymore the civil society and patriotic elements along with all trade and industry stakeholders should get united and play their due role in exposing the enemies of Karachi and compel the rulers to wake from deep slumber and restore law and order in the city.
It seems that some elements have decided to completely destroy the economy of Karachi and snatch peaceful atmosphere of Karachiites permanently
02
BUSINESS B Tuesday, 19 February, 2013
Major Gainers COMPANY UniLever Pak Shield Corporation Pak Services Engro Corporation Mehmood Tex
OPEN 10300.00 137.00 182.09 94.44 92.70
HIGH 10400.00 143.85 189.95 99.16 97.33
LOW 10200.00 143.84 187.50 94.97 97.33
CLOSE 10400.00 137.00 187.50 99.16 97.33
CHANGE 100.00 0.00 5.41 4.72 4.63
TURNOVER 940 200 1,200 13,017,500 500
1440.00 494.00 176.00 135.85 337.98
1440.00 493.53 175.37 135.85 325.55
1440.00 493.53 175.59 135.85 326.37
-34.00 -25.97 -9.00 -7.15 -8.01
50 200 1,300 500 3,900
4.37 2.96 8.24 5.82 18.18
3.93 2.62 7.98 5.28 17.53
4.32 2.88 8.05 5.56 18.01
0.39 0.15 0.06 0.07 0.24
26,601,500 19,832,500 17,631,000 17,122,500 14,354,500
Major Losers Bata (Pak) Indus Dyeing SPOT Philip Morris Pak. Gillette Pak National Foods
1474.00 519.50 184.59 143.00 334.38
Volume Leaders Pace (Pak) Ltd. NIB Bank Limited Fauji Cement Telecard Limited Jah.Sidd. Co.
3.93 2.73 7.99 5.49 17.77
Interbank Rates USD GBP JPY EURO
PKR 98.1350 PKR 151.9032 PKR 1.0433 PKR 131.1084
Forex US Dollar Euro Australian Dollar Canadian Dollar Japanese Yen China Yuan UK Pound Sterling UAE Dirham Saudi Riyal
BUY
SELL
98.95 132.25 101.5 98.55 1.055 13.5 154.5 27 26.3
99.2 132.5 102.5 98.85 1.11 14 155.7 27.25 26.6
CORPORATE CORNER
KARACHI: The English Speaking Union of Pakistan held a reception in honour of Lars-Gunnar Wigemark, Ambassador and Head of Delegation of European Union in Pakistan at a local hotel. Picture shows President ESUP Aziz Memon, Senior Vice Chairman Abdul Kader Jaffer, Vice President Byram Avari, Francis Campbell, British Deputy High Commissioner, Secretary General Majyd Aziz, AR Sattar and Rebeka Naomi Wigemark. PR
EU is all about good governance: EU envoy KARACHI: “In essence, European Union is all about good governance, a word that is often used here in Pakistan and sometimes seen as the missing link between your market economy and a still fragile democracy. For the same reasons, the EU will not trade fully or at all with countries that do not respect human rights, violate democratic standards – or pose a threat to international peace and security.” This was stated by Lars-Gunnar Wigemark, Ambassador and Head of Delegation of European Union in Pakistan while addressing the English Speaking Union of Pakistan. In a very scholastic discourse, the EU Envoy added that “Today more than ever the EU’s foreign relations are not just about trade and aid. We are not a military alliance and are unlikely to become one for the foreseeable future. Nor are we a nation state – or even a federation with a common government and a single capital. The EU is not a flawless entity and we need to remind ourselves of our humble origins and how the Union was conceived as a peace and reconciliation project.” PRESS RELEASE
two italian writers at Karachi Litfest KARACHI: With the participation of two Italian authors, Italy co-sponsors for the first time the KLF. Mrs. Lorenza Raponi, in a conversation with Mrs Tehmina Durrani, and at the presence of Mr. Edhi, launched on Friday the English version of her book “Half of Two paisas”, which focuses on the story of Abdul Sattar Edhi, modern hero of solidarity. Mrs. Silvia Di Natale, multiple-prize winner in Italy, further enriched the programme of the KLF by presenting last Saturday her book “Kuraj”, that explores the difficulties of relocation to another country. The Italian
support to the Festival comes in the framework of a renewed effort to build ever-closer ties between Italy and Pakistan. Just weeks ago, Madame Minister Hina Rabbani Khar and her Italian counterpart signed in Rome a “Strategic Engagement Plan” to enhance the bilateral partnership also in the cultural field. In his address at the inaugural session, the Italian Ambassador, stressed that “literature has always played an important role in linking far-away countries and allowing different cultures to better understand each other”. In this respect Ambassador Chiodi Cianfarani praised the Karachi Literature Festival for its important role in promoting vibrant exchange of views and underlined, on the occasion, how crucial culture and education are for the future of all countries. PRESS RELEASE
LEsCo innovating through technology
oGDCL signs GsA with 4 fertilizer companies
LAHORE: Technology and business have been intertwined since the industrial revolution. It has caste significant effect on every aspect of market place, driving innovation, affecting partnerships, changing business-stockholder relationships, and prolific sales growth. Technology has revolutionized global and local markets. It expanded the attractiveness of investing additional capital as more and more people have gained access to financial markets, which have become more liquid and efficient with expanded opportunities. Most of the organizations have started incorporating latest technology for keeping pace with the contemporary high-tech environment.To meet the challenges of rapid technological advancements, Lahore Electric Supply Company has also incorporated latest technology in its operations to optimize the efficiency of its human resource and extend maximum facilities to its over 2.6 million valued consumers in Lahore, Okara, Sheikhupura and Kasur.To make the best use of technology for improved customer service, LESCO established a network of mobile customer service consisting of seven mobile vans fitted with state of the art computerized system of bill corrections and duplicate bills. It facilitated millions of consumers, particularly of remote areas to get all their billing complaints resolved at their doorsteps. Another step towards technological excellence is managing enterprise resource planning system in LESCO.Through these latest technological solutions, complete restructuring and reorganization of LESCO will be carried out and all departments and procedures will be streamlined by linking them through LAN and VAN (Computer Networking) for transparency, speedy operations and cutting down laborious task of unnecessary documentation.Another significant and very modern project introduced by LESCO is ”Remote Metering System”. As a pilot project of ten GSM operated, software installed meters are being fixed in various locations of Lahore. These remotely controlled meters are connected to LESCO’s main server through wireless communication and the reading for electricity consumption at any time. This remote metering system will not only facilitate the consumers to avoid manual meter reading problems but also will minimize the complaints of over billing.The billing will be sent through SMS to the mobile phones of the consumers from LESCO’s main mobile networking system. If the pilot project is evaluated as a successful and viable system then it will be installed in complete city of Lahore, initially, and then in all its surrounding areas. The most pragmatic and consumer friendly system introduced by LESCO is its online billing system. PRESS RELEASE
KARACHI: The Oil and Gas Development Company Ltd (OGDCL) has signed a gas sale agreement (GSA) with four fertilizer companies to directly sell 130 million cubic feet (mmcf) of gas per day at $ 2.6 per mmbtu from its Kunar Pashaki Deep gas (KPD) field. This field is expected to generate a total of 210-230 mmcfd of gas after completion of Phase 2 in August 2014. Out of this, 130 mmcfd will be provided to fertilizer producers and rest will be given to Sui Southern Gas Company (SSGC). PRESS RELEASE
sanofi Regional Head visits Pakistan KARACHI: The Senior Vice President heading Intercontinental Global Operations of Sanofi, Antoine Ortoli, visited Pakistan for a two-day visit from February 14th to 15th. He was accompanied by a 6 member delegation from the Sanofi Headquarters and joined by 4 members from the South-Asia zone. Stretching across 4 continents, the Intercontinental region of Sanofi serves over 80 countries from Africa, the Middle East, South Asia and Eurasia. The delegation held meetings with the management of Sanofi Pakistan and reviewed Sanofi local manufacturing strategy. Mr. Ortoli discussed Sanofi’s presence in Pakistan, the existing potential of the production capacity and increasing access to medicines for the local population. PRESS RELEASE
KARACHI: (From R-L) Tariq Wajid, GM & MD Sanofi Pakistan, Antoine Rene Jacques Ortoli, Senior Vice-President Intercontinental, Global Operations, Dr Asim Jamal, General Manager, Sanofi Bangladesh and Dr Shailesh Ayyangar General Manager, India and VP, South Asia Zonal Operations. PR