profitepaper pakistantoday 21st December, 2012

PRO 21-12-2012_Layout 1 12/21/2012 1:03 AM Page 1

KSE hits 16,900 mark as TRG, Byco shine KARACHI

K

STAFF REPORT

ARAChI Stock Exchange( KSE) achieved hat-trick of hitting fresh historic alltime highs on Thursday as the main index ended above the never-seen 16,900 levels with market participation improving considerably after investors took keen interest in the TRG Pakistan and Byco Petroleum.

The benchmark KSE 100-Index gained 0.23 percent or 38.19 points to close at 16,908.02 levels on Thursday as against close of 16, 869.83 levels reported on Wednesday as both the TRG Pakistan and Byco Petroleum finished the day at their upper circuit-breakers.

The KSE 100-Index completed the hat-trick of striking an all- time high, a feat very rare in the global stock markets, as it hit 16,858.68 levels on Monday, 16,869.83 levels on Wednesday, and 16, 908.02 levels on Thursday.

The KSE All Share Index moved up by 0.24 percent or 28.38 points to end at 11,954.27 levels on Thursday as against Wednesday ‘ s 11,925.89 levels, the KSE 30-Index swelled by 0.2 percent or 27.76 points to conclude at 13,737.08 levels on Thursday as against Wednesday’s 13,709.32 levels, whereas the KMI 30Index increased by 0.19 percent or 55.38 points to finish trading activities at

KESC confirms $50m shareholding investment of IFC, ADB

29,032.28 levels on Thursday when compared with Wednesday’s closing levels of 28,976.9.

The Karachi Stock Exchange began the day amid a strong bullish rally which helped it go past the psychological levels of 16,900 level within first hour of trade and soon it hit the intraday highest level of 16,916.99. however, just like the past few trading sessions, the main index faced stiff resistance at its intraday highest levels and plunged down before choppy trade kept it swinging both ways during which it hit the lowest levels of the day of 16,869.60.

(44.612 billion U.S. dollars) on Thursday when compared with market capitalization worth 4.227 trillion rupees (44.501 billion U.S. dollars) reported the other day.

The Karachi Stock Exchange’s trading value reduced by 528.876 million rupees (5.567 million U.S. dollars) to 3.737 billion rupees (39.345 million U.S. dollars) on Thursday as against Wednesday’s trading value of 4.266 billion rupees (44.912 million U.S. dollars).

As per the figures released by the National Clearing Company of Pakistan Limited (NCCPL), the foreign investors

Consultants for 3G/4G in violation of PPRA: NAB ISLAMABAD OnlinE

The National Accountability Bureau (NAB) decreed the process for hiring of 3G and 4G consultants a violation of Public Procurement Regulatory Authority (PPRA) rules.

The Bureau advised Pakistan Telecommunication Authority (PTA) to ensure compliance with PPRA Rules and summoned a report on December 26. NAB Chairman in a letter to Secretary Ministry of Information Technology (MoIT) summoned the secretary to give detailed presentations on tax evasion, SMS GST evasion, Universal Services Fund (USF) and E-Governance and Auction of Broadband frequency.

The Bureau asked MoIT to explain violation of the rules by the cellular companies for charging 19.5 percent SMS GST. NAB under its Prevention efforts is endeavouring for transparency and fair play during tender processes of the projects, auction and procurements in close coordination with the regulators.

The exercise is aimed at strengthening the regulatory mechanism in the country at large.

KARACHI STAFF REPORT

The Karachi Electric Supply Company (KESC) confirmed investment grants of $ 25 million each from the International Finance Corporation (IFC) and Asian Development Bank (ADB).

The investments made the two multilateral agencies equity holders of KESC. IFC, a member of the World Bank Group, and ADB subscribed to additional share capital by increasing their original $ 50 million offer to $ 275 million. As per the loan financing agreement signed by the IFC and ADB with KESC in 2010, the two international institutions had the right to convert up to $ 50 million of their debt into equity before Dec 31, 2012.

This debt financing was provided by the two institutions to partly finance the KESC’s state-of-the-art and one of the most efficient power plants, the 560 MW BQPS-II. This 560 MW plant has successfully been installed and commissioned ahead of its planned schedule. The endorsement by IFC and ADB is being hailed by the KESC as a positive omen for international investor confidence not only in the utility but also in the Pakistani economy.

In a statement issued on Thursday, the KESC said the development reflected confidence of the two leading international financial institutions in the way KESC was being run.

A renewed buying interest then developed at the lowest levels which gradually propelled the main index back into the green zone and it came close to cross its intraday highest level before lastminute selling clipped some of the gains.

Market volumes bolstered by 71.474 million shares to 185.426 million shares on Thursday as against trading of 113.952 million shares recorded on Wednesday as Byco Petroleum and TRG Pakistan contributed over 46 million shares together.

Market capitalization improved by 10.498 billion rupees (110. 515 million U.S. dollars) to 4.238 trillion rupees

came up with net buying worth 43.885 million rupees (0.447 million U.S. dollars) on Wednesday.

In broader market, a total of 368 companies changed hands during the course of trading on Thursday where prices of 173 issues ended in red ink, 167 finished in green terrain, whereas values of 28 other scrips stayed unchanged at previous trading session’s levels.

TRG Pakistan Limited was the top traded company on Thursday with trading of 35.260 million shares in its scrip, followed by Byco Petroleum, Maple Leaf Cement, Lotte Pakistan PTA Limited, Fauji Cement, Descon Oxychem, NIB Bank Limited, Fauji Fertilizer XD, Nishat Chunian, and Engro Corporation with turnovers of 21.014 million shares, 14.604 million shares, 9.454 million shares, 4.377 million shares, 4.372 million shares, 4.342 million shares, 4.253 million shares, 4.194 million shares, and 4.015 million shares, respectively.

Colgate Palmolive was the top price gainer of the day with increment worth 49.98 rupees (52.61 U.S. cents) in its per share price that ended at 1,399.98 rupees (14.73 U.S. dollars) while on the other hand Siemens Pakistan led the major price shedders of Thursday with decrement of 8 rupees (8.42 U.S. cents) a share to finish the day at 764 rupees (8.04 U.S. dollars).

LPG Price Goes uP by rs 10 Per KiLoGramme ISLAMABAD inP

Liquefied Petroleum Gas (LPG) marketing companies hiked prices by Rs10 per kg on Thursday.

LPG distributors association Chairman Irfan Khokhar announced the decision on behalf of the Gas marketing companies consortium. Following the hike, revised prices of domestic and commercial cylinders would be inflated by Rs100 and Rs400 respectively.

It shall be noted here that the fresh hike in LPG prices is the third in a month. The association’s decision is in violation of an OGRA notification which had decreed the price ceiling at Rs125 per kg on December 08.

Friday, 21 December, 2012

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Prices of imported used cars hiked by 14 PC KARACHI

F

iSMAil DilAWAR

AILING to dodge the ECC’s decree on used cars, the dealers have increased the prices of five-year-old imported cars up to 14 percent. A survey of more than 10 used car dealers, including the auction price at Sohrab Goth during last two weeks, reveals that the used car dealers have increased the price of Mira/Suzuki Kei up to Rs 55,000.

The price of Vitz/Passo has also been increased up to Rs 80,000; Axio’s price increased

by Rs 110,000; and Premio’s price was increased by Rs 160,000. It is worth adding that these old used cars are already being sold at higher prices than locally made zero meter cars.

Pakistan Automobile Manufacturer Assemblers Dealers Association (PAMADA) Vice President Iqbal hussain Shah talking to the scribe said that “the price increase of old used cars reflect that the dealers don’t pay any heed on the concerns of the consumer and are completely bent upon fleecing the consumers. Interestingly All Pakistan Motor Dealers Association (APMDA) always portray themselves as one of the well wishers of Pakistani nation, seems quite busy in making profit from their imported used cars stocks/investment. This clarifies how much they love common man of Pak-

istan.” Prices of locally manufactured cars are stagnant from last 6 months and only honda Civic’d price was revised after launch of its 2013 model packed with additional accessories and features.

Meanwhile the US$ is touching new, highs and local car assemblers are absorbing most of the cost impact. Iqbal said that the local auto sector of the country urged the government to consider the strengthening of Japan’s Yen against US dollar in the last few years. he said “today, the disparity between Japan’s Yen and US dollar is much low. One US dollar was of 120 Japanese Yen in 2005, but since then the Yen has strengthened and now in November 2012 its value is 79 against one US dollar. This calls for a revision of used car duty slabs which were fixed in 2005, so that the consumer can know how they are being fleeced by the used cars dealer mafia”. based on today’s value of the Yen, the proposed duty slabs for vehicles up to 800c is $6650 against the current fixed duty of $4400 on a used car which was fixed on the value of Yen in 2005. Similarly, for vehicles of 8001-1000cc, the p r o -

posed duty is $8312 against the fixed current duty of $5500; for 1001-1300cc the proposed duty is $16625 against current fixed $11000; for 1301-1500cc the proposed duty is $23275 against fixed current duty of $15400; for 15001600cc proposed duty slab is $28262 against fixed current duty $18700; and for 16011800cc the proposed slab is $26184 against the current fixed duty of $23100.

Pakistan Customs did not revise the Import Trade Price (ITP) on the imported used cars, thus allowing dealers to import huge number of cars at concessional rates. Consequently, the non-revised and reduced duty on imported used cars caused huge inflows of cars in the local market at the expense of heavy losses to national exchequer. Iqbal thought that it was high time for the government and the nation to realize what is in the national interest. he appreciated government’s recent decision to cut down used car age limit from 5 to 3 years and concluded that “this decision will work as a new lifeline for the local auto industry and new investment will come in from new and existing players.”

Business 02 Major Gainers COMPANY Mithchells Fruit UniLever Pak Bata (Pak) Colgate Palmolive Blessed Tex.

OPEN 354.11 10075.53 1350.00 1350.00 117.00

HIGH 371.81 10100.00 1415.00 1400.00 119.99

LOW 370.00 10089.00 1325.00 1399.00 112.00

CLOSE 371.81 10100.00 1365.00 1399.98 119.99

CHANGE 17.70 24.47 15.00 49.98 2.99

TURNOVER 1,100 6,240 30 2,100 3,000

134.00 242.00 768.20 274.09 125.10

132.96 239.00 764.00 265.05 120.37

132.96 239.00 764.00 267.48 124.15

-6.99 -6.23 -8.00 -2.45 -2.55

6,300 3,000 1,450 8,30 2,000

12.34 6.73 7.74 6.50 15.35

11.90 5.85 7.23 6.34 14.96

12.34 6.53 7.54 6.44 15.29

1.00 0.65 0.18 0.03 0.43

21,014,500 4,372,500 9,454,500 4,377,500 14,604,000

Major Losers Murree Brewery AL-Ghazi Tractors Siemens Pakistan Pak.Int.Cont. SD J.D.W.Sugar

139.95 245.23 772.00 269.93 126.70

Volume Leaders Byco Petroleum Descon Oxychem Lotte PakPTA Fauji Cement Maple Leaf Cement

11.34 5.88 7.36 6.41 14.86

Interbank Rates US Dollar UK Pound Japanese Yen Euro

97.7148 159.1872 1.1583 129.6578

Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Kuwaiti Dinar

SELL

98.10 128.88 158.24 1.1493 98.24 12.43 26.53 26.02 344.46

98.80 130.39 160.06 1.1626 99.88 12.63 26.81 26.26 347.59

CORPORATE CORNER NSR launches its winter collection KARACHI: The fashion brand NSR launched an exciting and refreshing winter collection mainly comprising semi formals and formals, all intricately embellished and based on a modern and cutting edge design sensibility. NSR co-owner and co-designer Nosheen Rana said that “the NSR brand speaks to women who are searching for stylish and elegant outfits based on a bright and refreshing palette”. her sister Shabnam works with her to create unique and truly eye catching pieces. Nosheen added that “the winter collection is truly modern and somewhat eclectic and based on palazzo and harem pants created from floral, animal and abstract prints.” The designer duo has played with the length of shirts using studded Swarovoski and diamond-inspired motifs and buttons. A capsule collection of jersey dressed and jumpsuits, all delicately embellished with fine embroideries, has also been included in their current collection.

amnesty bill set on agenda for today KARACHI STAFF REPORT

Senate Chairman Syed Nayyar hussain Bokhari postponed discussion on the Tax Laws (Amendment) Bill 2012 on Thursday.

The bill, introduced in the National Assembly on Dec 17 grants amnesty to those who dodged the tax net and did not maintain a record of their assets with the state’s treasury.

On a point of order, Senator Raza Rabbani objected tabling of the bill in the Upper house of the Parliament, alleging that this was in vi-

olation of Article 73 of the Constitution as the bill was not laid simultaneously in both houses of the parliament. Reading out article 73, Rabbani said that the y bill had to be laid before members of both houses of the parliament simultaneously and the Senate would have to send its recommendations to the National Assembly within 14 days. Rabbani added that the bill was introduced in he National Assembly on Dec 17 while it was tabled in Senate on December 20. he said that the Senate had been deprived of four days to look into the bill.

Leader of the Opposition Senator Ishaq Dar agreed with Rabbani on the matter and said that the bill was a serious violation of the Constitution. he also said that the government cannot declare any bill a money bill without verification of the Speaker National Assembly.

Ishaq added that under the bill FBR had been granted powers of the parliament to introduce tax amnesty schemes Minister of State for Finance Saleem h.

Mandviwala said that the bill may be deferred for Friday and the Finance Minister would answer the queries of the legislators today.

FPcci lauds govt policies for increasing exports KARACHI APP

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Fazal Qadir Sherani appreciated government policies for promoting exports.

In an interview with Radio Pakistan, he said that economic situation of the country could be improved by the joint efforts of the public and the private sectors. he urged the government to consult business communities of all four provinces.

Mirza Ishtiaq Baig on the occasion said that President Asif Ali Zardari had lauded the Federation for achieving its target despite several challenges faced by the businesses community. Talking to Radio Pakistan, Mirza Ishtiaq said that the president had assured that all obstacles faced by the business community would be nullified. he said that the government was focusing on the energy sector and told that good news regarding the energy sector would be shared with the country soon.

Etihad Airways bags four consecutive Oscars KARACHI: Etihad Airways, the national carrier of the United Arab Emirates (UAE) grabbed the World’s Leading Airline award for the fourth consecutive year. The awards were announced at a black-tie gala event hosted by Oberoi Gurgaon in New Delhi. Etihad Airways Diamond First Class was also praised as the world premier flight cabins. The World Travel Awards were statuated in 1993 to seek out and reward the very best travel organisations of the world. In 2012, approximately 650,000 votes were cast by travel professionals from 191 countries. The World Travel Awards have secured a top industry status and been named by the Wall Street Journal as the “Oscars of the Travel Industry”.

Lucky Cement’s Green Supply Chain aces it KARACHI: Lucky Cement Limited’s Green Supply Chain operations and logistics were officially awarded at the 2nd Intl Shipping, Logistics and Supply Chain conference held at a local hotel in Karachi. The conference and the award ceremony was organized by the Publicity Channel to laud companies that were making sustainability a core part of their supply chain strategies. Lucky Cement was lauded for its proactive role at the environmental sustainability front as the company has initiated a number of sustainability projects like alternate fuel, energy conservation and plantation drives.

In addition, the company’s in-house power generation units have been revamped to ensure environmental efficiency.

PSO adopts PNSC as its carrier KARACHI: Pakistan State Oil (PSO) on Thursday boasted to be the first national company to import POL products through the Pakistan National Shipping Corporation (PNSC) PSO following the directives of the Economic Coordination Committee (ECC) which clearly states that all government organisations should designate the national shipping line i.e. PNSC as their shipping partner. The national energy giant had recently signed a Contract of affreightment (CoA) with PNSC to transport Furnace Oil from foreign ports to Pakistani shores. Expected annual savings by PSO are estimated to be approximately USD 25 million which shall translate into savings of USD 125 million in 5 years time. Furthermore, from March 2013, the company will start importing motor gasoline through PNSC on FOB basis.

This will save another USD 10 million on an annual basis and in next 5 years estimated savings due to this arrangement are expected to be USD 50 million.

Friday, 21 December, 2012