profitepaper pakistantoday 24th february, 2012 by Profit Epaper

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Bear hug drains KSE of 88pts under profit-taking cloud Page 03

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Over 5,000 oil tankers to stop upcountry supply T

Friday, 24 February, 2012

KSE Dilemma

Countrywide protest if demands not met within 72 hours Karachi

GHULAM ABBAS

N acute shortage of oil in the country is looming as the supply from Karachi terminals is feared to be suspended amidst protest of oil tankers against cancellation of contracts by Pakistan Vanaspati Manufactures Association (PVMA). All Pakistan Oil Tankers Association (APOTA) has announced to stop all kinds of up country oil supplies if their demands are not met within next 72 hours. Bakhtawar Khan, Chairman of the Association, told Profit that they have stopped over 5,000 vehicles of theirs as a protest against cancellation of the contract of supplying oil and ghee across the country. 3,000 to 4,000 containers have also been stopped at Port Bin Qasim area against the association’s protest over illegal arrest of their fellows as well as cancellation of contracts. He said they were providing the service to the mills for the last 25 years, but their contract had ended suddenly while giving the facility to NICL. Though PVMA has also asked the government to provide security and ensure safe transportation of edible oil consignments from Karachi to other cities after the recent incident of burning oil tankers at Bin Qasim Area of the city, the row between the two parties may cause serious shortages of oil up country. It is worth mentioning here that owing to the present situation, the price of edible oil in the country has already jumped. Bakhtawar Khan, leading a protest on Na-

tional Highway, near Port Qasim on Thursday, said though the highway was opened for traffic after the protest, the sit in would be reorganised if the concerned authorities did not take notice of the grave situation within the next two days. “No official form the government has so far came here or contacted us to resolve the issue,” he said The tussle between the two parties was going on since PVMA started to supply through National Logistics Cell (NLC) from Karachi terminal to Punjab, Balochistan and Khyber Pakhtunkhwa. Edible Oil Tankers Owners Association (EOTOA) had suspended its operation first on January 10 against the decision of PVMA for supply of the oil through NLC while neglecting the agreement signed with private transporters. However, according to sources at PVMA, the association was free to decide how to supply edible oil to the country’s markets. The private transporters were not found reliable and up to the mark of the manufacturers. The repeated complaints of oil theft and other issues have forced the association to supply the commodity through NLC. Almost 2,500 oil tankers are engaged in transportation of edible oil. According to a report, the annual consumption of edible oil in Pakistan is around two million tonnes and its usage in Pakistan is 11-12 kg per person, annually and 7-8 kg per person annually, in India. Pakistan locally produces just half a million tonnes (450,000 tonnes from cotton seeds and 50,000 tonnes from sunflower and mustard. The country is importing edible oil worth Rs300 billion annually to meet the local demand.

KARACHI ISMAIL DILAWAR

HOUGH the market participants are pinning hope in the sECPbacked tax reforms recently approved by the Ministry of Finance, the years-old negatives continue to take a heavy toll on the market participants at the volumes-starved Karachi bourse. The fact that the current month, February, alone saw the front regulators at KsE; notifying the shareholders about the proposed or final delisting of at least 50 listed companies is indicative of this. It was just 13 days back when KsE management had conveyed to the stakeholders at KsE that some 29 companies, mostly from textile sector, were faced with delisting for their default on various listing regulations ranging from non-holding of the Annual General Meetings (AGMs) to non-payment of the listing fee. Almal securities and services Limited, Dominion stock Fund, Harum Textile Mills, Investec securities, Kashmir Polytex, Nina Industries, Pakistan Industrial and Commercial Leasing, sahrish Textile Mills, Usman Textile Mills, Union Insurance Company of Pakistan, Dadabhoy Insurance Company, First Islamic Modaraba, Ittefaq General Insurance Company, Ittefaq Textile Mills, Macdonald Layton and Co, Mian Muhammad sugar Mills and Zahur Textile Mills, were the 17 companies that received final KsE notices on

delisting. In addition, 12 other firms were given a 30-day deadline, which would end on the 12th of next month, to get their defaults rectified or brace for punitive action by the front and apex regulators. These include Accord Textile Limited, Al-Azhar Textile Mills, Al-Qaim Textile Mills, Amin spinning Mills, Fawad Textile Mills, Hashmi Can Company, Indus Fruit Products, Libaas Textile, Mubarak Dairies Limited, shahpur Textile Mills, Zahur Cotton Mills and Amz Ventures Limited. The market participants, including members, brokers, investors, listed companies, etc, can often be found complaining that the stocks market, plagued by ill-thought-out tax and regulatory regimes, was no more an attractive place for doing business in the absence of trading volumes that perhaps partly enable the listed firms to pay the Exchange related fees, including that of the listing. Thursday again witnessed KsE declaring that some 21 companies

Pakistan to export wheat to Iran KARACHI

STAFF REPORT

s agreed between the Presidents of Pakistan and Iran, the former will export wheat to Iran which will be value-added in Tehran. Trade will be maintained between the private sectors. This was informed by the visiting Deputy Minister Industry, Mines and Trade, Government of Iran and Chairman/Managing Director of Governmental Trading Corporation of Iran, Abbas Ghobadi, while addressing a meeting at Karachi Chamber of Commerce and Industry (KCCI) here on Wednesday. He said the indigenous wheat produced in Iran was fulfilling the demands and the factories of Iran had the capacity to process 25 million tonnes of wheat. Export of other commodities and products are also in consideration. Reciprocating the import of wheat, Iran and export energy to Pakistan, he said. Minister agreed to the proposals of President KCCI for joint ventures in agricultural sector and informed that efforts

were underway to establish banking channel and execute commercial activities between the ports of Iman Khomeni, Bunder Abbas and Karachi. Besides that Iran was maintaining barter trade with India and China trade and likewise, through barter system the bilateral relations between Iran-Pakistan will be enhanced. Iranian companies had good business relations with their Us counterparts and there was a negative propaganda by the media about Iran-Us

relations. He emphasised for vibrant

chamber-to-chamber interactions from both sides. Ghobadi, highlighted the historical relations of Iran and Pakistan and stated that the recent visit of President Ahmadinejad to meet his counterpart endorses the importance that the Iranian government attaches to Pakistan. He appreciated the role of IranPakistan embassies and consulate generals in respective countries to uplift the trade and strengthen the economic cooperation as the missions were committed to implement the bilateral agreements existing between two countries. He said Iran had relations with 160 countries particularly economic relations with EU, UK, Canada and Central Asian states. He was of the view that both countries had energetic relations, however, economic relations need to be more fostered. He said security issues need to be addressed to increase trade. Iran already maintaining trade with Us and EU was focusing on regional trade particularly with Pakistan and Central Asian republics. On the occasion, Mian Abrar Ahmad, President KCCI also asserted upon the dire need of establishing banking channels, port-to-port activities

and customs clearance mechanism between Iran and Pakistan. He urged to develop regional trading block of ECO countries, particularly between Pakistan, Iran and Turkey. He said the biased policies of UsA and West never allowed economic independence to Pakistan as allowed to other countries in the region. He articulated to build trading blocks with sAARC countries, Central Asian republics, particularly between Iran and Pakistan. He proposed trade between Pakistan and Iran should be permitted in local currencies instead of dollars and trade through railways should be regularised. He was of the view that Pakistan has been severely discriminated by West and as an energy-hungry country we should not accept any dictation on IranPakistan-India gas pipeline project which is the burning need for our country to overcome the energy crisis. He said, “Resolution passed in the Us has proved that Baluchistan had been facing engineered situation of unrest having its roots abroad. The West never liked Gwadar port ever since it was established.” He opined, “Iran and Pakistan should jointly address this issue because Western interference in Baluchistan may create territorial

either liquidating or liquidators had been appointed to get them liquidated. The trade in their shares had already been suspended. These firms, include Adil Polypropylene Products, Awan Textile Mills, Bahawalpur Textile Mills, Bela Engineers, Colony Woolen Mills, Crescent spinning Mills, First Tawakkal Modaraba, Harnai Woolen Mills, Junaid Cotton Mills, Karim silk Mills, Kausar Paints, Modern Textile Mills, Muslim Ghee Mills, Pak Fiber Industries, Pakistan Dairies Limited, Qayyum spinning Limited, saltex spinning Mills, sind Alkalls Limited, Tariq Cotton Mills, Tawakkal Limited and Tri-star shipping Lines. “The Exchange in the interest of investors’ protection and in pursuance of the Listing Regulations Number 30(1) (d) and Number 30(4) intend to now delist these companies,” said a notice issued by KsE Thursday. The regulator has, through notice number KsE/N762, asked the liquidators and the concerned firms to come with their objection, if any, in line with the proposed liquidation of these firms. Now while the federal government has consented to rationalise the controversial Capital Gains Tax and the market observers have started foreseeing encouraging increase in trading volumes, the market participants, on each and every level, would have to bear the burnt of the past mistakes made by the managements, as well as regulators of the local stocks.

security issues for both Muslim neighbouring countries.” He said the key solution for economic stability of Pakistan is regional trade with sAARC, ECO, AsEAN, GCC and Central Asian Countries. Pakistan was facing NonTariff Barriers to export in terms of restricted market access from UsA and West, he added. If market access is allowed, Pakistan can export worth $25 billion to UsA alone, he maintained. He highlighted the existing tremendous potential for bilateral trade and identified possibilities of joint ventures in value-added agricultural sector and engineering sector. To enhance bilateral economic and commercial cooperation, he voiced to establish banking channel as the business transactions between Iran and Pakistan was routed through Asian Clearing Union which was more time-consuming than a normal letter of credit (LC), while opening a LC through Iran’s sister companies in Dubai also adds to cost. He appreciated Pak-Iran trade during last half decade which increased from $389 million to $1.2 billion and also emphasised to deepen the existing Preferential Trade Agreement (PTA) to be followed by Free Trade Agreement (FTA). Chairman Businessmen Group siraj Kassam Teli said the meeting of President Ahmedinejad with President Zardari was an important move to strengthen ties. He appreciated the efforts of Iranian Consul General in Karachi to enhance trade.

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Friday, 24 February, 2012

news

Pak-Iran trade volume to go up by $10b KARACHI

STAFF REPORT

HE trade between Pakistan and Iran may go up in the near future as the two countries seem to be seriously moving forward to increase bilateral trade. The Iranian government has indicated that Iranian preference was Pakistani products like rice, wheat and others commodities and the problems faced by Pakistani exporters while exporting goods to Tehran would be resolved soon. These were expressed by Mr Ghobadi, Deputy Commerce Minister of Islamic Republic of Iran in a meeting with secretary Trade Development Authority of Pakistan, Javed Anwar Khan, along with leading exporters of rice and wheat here on the side line of the trilateral meetings of the heads of states

of Pakistan, Iran and Afghanistan, here on Thursday. safdar Mehkri, Vice Chairman REAP and Zahid W Khawaja, Member Executive Committee REAP highlighted the potential of Pakistan’s export surplus of rice and identified the hurdles faced by their exporters while doing business with their Iranian counterparts. secretary TDAP welcomed the honorable guest and introduced the officers of TDAP and exporters of rice and wheat. The exporters requested the Iranian Deputy Commerce Minister to give preferential treatment to Pakistan’s rice by extending a zero import duty regime for rice import from Pakistan under already signed PTA with any future change to it only after mutual agreement. The trade also suggested for allowing rice import from Pakistan as a

Financing of Margin Trading System balloons to Rs877m KARACHI

KARACHI

HE acceptance of sECP’s tax reform proposals by the Ministry of Finance has augured well for the local stocks market which, according to analysts, generated a small rally of five per cent during the last few trading sessions. With the open interest increasing to the tune of Rs877 million up to Wednesday in the Margin Trading system (MTs), Karachi stock Exchange (KsE), in line with regional markets, has so far rallied 11.1 per cent, 10.0 per cent in dollar terms, during the current calendar year. “The most interesting thing of the current run up in share prices is that it is accompanied by decent volumes,” said Mohammed sohail, senior Analyst and Chief Executive Officer of Topline securities. Compared to the last quarter average daily volumes of 59.7 million shares, Rs2.8 billion or $32.2 million, the average daily volumes at KsE in this quarter up till now was 119.0 million shares, which account for Rs3.7 billion or $41.0 million. “Though volumes have improved it is far lower than average daily of approximately 300 million, Rs24.8 billion or $417.5 million seen in 2003-07,” the analyst said. As a consequence of rising share prices with better volumes, he said, the leveraged positions in MTs and futures had also increased. Though not at alarming levels so far and far lower than what it used to be in the past, these MTs volumes might make the share price of actively-traded stocks slightly more volatile in the short run.

presence of good railway, road and sea link. He ensured the exporters that Iranian preference is Pakistani rice and the problems identified by REAP members will be resolved. Referring to the import of wheat, he highlighted Iranian market is quality conscious and import of wheat will depend upon acceptability by their consumers. He advised the wheat traders to nominate a focal person for follow up meeting on the import of wheat to be held on February 24, 2012. He indicated the volume of trade between Pakistan and Iran would increase up to $10 bn and the outcome of this meeting would help in formulating appropriate trade policy for ensuring sustainable trade between the countries. The meeting was followed by informal talks between exporters and Iranian delegates.

E-banking transactions jump to Rs6.454tn during July-Sept FY2012: SBP Report

ISMAIL DILAWAR

fellow ECO member country by issuing Import Permit to all interested rice importers in Iran without any restrictions. The representatives of REAP also requested for the removal of requirement of Mujawaz. The trade supported the idea of Pak–Iran currency swap for the better trade relation between the two countries. Abdul Kaleem Baakza of Wheat Traders Association of Pakistan appraised the Deputy Iranian Commerce Minister about the quality of Pakistan’s rice and the availability wheat surplus in the country. He requested the Iranian government to facilitate the wheat exporters of Pakistan by removing administrative hurdles confronted by the sectors. The Iranian Deputy Commerce Minister viewed the relationship between two brethren Islamic countries could go a long way in the

STAFF REPORT

HE payment systems infrastructure in Pakistan showed an upward growth trend during the second quarter of the current fiscal year, Oct-Dec FY12, shows the state Bank of Pakistan’s Payment systems Quarterly Review for the second quarter of FY12 released Thursday. According to the review, the volume of overall e-banking transactions in the country during review period registered an increase of 2.6 per cent to reach 66.96 million. The value of these transactions also depicted a growth of 4.85 per cent to reach Rs6,454 billion as compared to the preceding quarter, Julysept FY2011, it added. It said the number of Real Time Online Branches (RTOB) transactions increased by 3.4 per cent to 20.26 million, whereas, the value of these transactions in-

creased by 4.8 per cent to Rs5,968 billion in the quarter under review as compared to the previous quarter, which represented almost 30 per cent in volume and 93 per cent in value of the overall e-banking transactions, respectively. The review said 1,020 more bank branches were upgraded to RTOB in Oct-Dec, 2011 period mainly due to higher investments by a public sector bank. ‘Now 8,905 bank branches are offering RTOB services out of the total of 9,948 bank branches across country,’ it added. some 91 more Automated Teller Machines (ATMs) were added during Oct-Dec, 2011 quarter bringing the total number of ATMs in the country to 5,409, the review said, adding the number of ATM transactions showed an increase of 3.22 per cent to reach 40.05 million and the value of these transactions increased by 8.33 per cent to Rs383 billion, resulting in an average value of Rs9,558 per ATM transaction.

The share of ATM transactions in total e-banking transactions in terms of volume and value worked out to 59.8 per cent and 5.9 per cent, respectively, it added. The number of plastic cards also increased by 4.88 per cent during the quarter under review as compared to the preceding quarter, the review said, adding that by the end of quarter, there were 15.2 million plastic cards in circulation in the country. The volume and value of transactions through Point of sale (POs) terminals stood at 4.2 million and Rs19.6 billion, showing 1.4 and 8.6 per cent growth, respectively, as compared to the figures reported in the previous quarter, the review added. According to the review, the volume of largevalue payments through Real Time Gross settlement system (RTGs) increased by 2.8 per cent to 89,263, whereas, the value of these transactions increased by 21.4 per cent to Rs30.47 trillion.

Govt vying to expand traceable products’ supplier base LAHORE

STAFF REPORT

OVERNMENT has planned to expand suppliers base of the traceable products from the existing level of 20 to 250 in 2012 for which an incentive package of Rs2.024 billion has been allocated to introduce traceability in agricultural and livestock products. Projecting of Pakistan with 20 fully traceable agricultural and livestock products at Germany is historic achievement of Punjab government. This was stated by Minister for Agriculture, Punjab Malik Ahmed Ali Aulakh here at Agriculture House, Lahore. He was addressing a post IGW briefing about success stories, the lessons learnt and the way forward for prospects of exports of Agriculture and Livestock products. secretary Agriculture Punjab, Mr Muhammad Mushtaq Ahmed, CEO star Farm, Asia, Mr Hans Peter, high officials of Agriculture department, large number of exhibitors, farmers and representatives of print and electronic media were also present. Talking to media men, Ahmed Ali Aulakh said that and participation of Punjab in International Green Week (IGW) at Germany has not

only helped in improving soft image of Pakistan but has introduced it as an emerging country for supply of traceable products for the world to meet food supply demand of ever increasing global population. He said that Punjab government has diverted substantial resources to develop science-based, vibrant and internationally linked agriculture sector that can not only meet the food security challenges but also compete in domestic as well as in international markets. Punjab government has entered into certification regime to produce fully traceable agricultural and livestock products to reach high end markets of the developed world and to enhance export up to $2billion annually, he added. He said that Pakistan has the potential to become one of the largest economies of the world after Germany. He further apprised that Punjab government has allocated Rs2.024 billion for a mega project to improve supply chain of selected agricultural and livestock products for improving quality and introducing traceability as per international market standards and requirements. secretary Agriculture Punjab, Mr Muhammad Mushtaq Ahmed, said that participation of Punjab in

International Green Week (IGW), at Berlin Germany proved a milestone to showcase traceable agricultural and livestock products from Punjab and to project Pakistan. He further said that display of traceable agricultural and livestock products at IGW has opened the doors of high end markets of the world leading towards generation of tremendous business opportunities for Pakistan. He told that Punjab government provided space to the private sector/ exhibitors to showcase their products at the Punjab’s pavilion where thousands of visitors tasted and witnessed traceable products from Punjab. He told that rice dishes with traceable vegetables were also offered to the hundreds of the stall visitors every day. He further told that during the IGW, several dignitaries like Mrs Kopp, member German parliament, CEO Metro, DG Global Gap, and Directors of IFs and Bayer crop sciences also visited stall of Pakistan. All the visitors appreciated efforts of Pakistan to produce traceable products which will help enhance trade with the EU countries. Responding to a question he said that markets like Metro, having over 2,000 stores and Carrefour

having about 15,000 stores in EU countries showed special interest in Pakistani products. Metro has even offered free office space for the association of traceable suppliers. Responding to another question, secretary Agriculture said that two sales teams were constitute for marketing of traceable products from Pakistan, which no other country has in the world as of today. Each sales team comprised of a member from government, one member from star Farm and three to four members from the exhibitors. One team under the leadership of Mr Mohammad Ashraf, Commercial Councilor of Pakistan in Amsterdam visited several markets in Holland. The second team under the leader ship of Mr Hamed Yaqoob sheikh, secretary L&DD Department visited France and spain. Both the teams held very useful talks with high end markets who agreed to buy Pakistani products. Few of the exhibitors were able to struck deals on spot. He told that both the sales teams has developed contacts with the markets in these countries and obtained samples of traceable products for evaluation before procuring these from Pakistani suppliers.

PHMA perplexed by SRO 821(I) LAHORE: Pakistan Hardware Merchants Association (PHMA) Thursday urged the Federal Board of Revenue to give logic for implementation of much controversial sRO 821(I) 2011 as business community considers this sRO unjustified and illogical. speaking a video conference with Central Vice Chairman PHMA Tariq Rasheed, Zonal Chairman sheikh Ahmad Daud and other zonal offices, the Central Chairman of Pakistan Hardware Merchants Association sardar Usman Ghani said the sRO would not be doing any service to the Federal Board of Revenue (FBR) rather it would further tighten noose around the registered tax payers only. He said sRO 821(I) 2011 will have devastating effect on the businesses in Pakistan as the compulsory requirement of NTN or CNIC number of each and every purchaser or seller is practically almost impossible. STAFF REPORT

Dollar reserves shrink by $123m KARACHI: The country’s liquid foreign exchange reserves declined by 0.7 per cent or $123 million during the week that ended on February 17, the central bank reported Thursday. According to state Bank, during the week under review, the country’s dollar reserves stood at $16.645 billion compared to $16.768 billion of the previous week. The central bank’s dollar reserves, as usual, moved downward and slid by $74 million to $12.212 billion against the previous week’s $12.286 billion. The reserves of the commercial banks also remained downward at $4.433 billion from $4.482 billion a week earlier. The analysts and sBP attribute contraction in sBP’s exchange reserves to increased import payments and repayment of the country’s external debts that, according to central bank, have aggregated to over $60 billion. STAFF REPORT

LCCI asks govt to restructure OGRA LAHORE: Lahore Chamber of Commerce and Industry (LCCI) has demanded of the government to restructure the Oil and Gas Regulatory Authority (OGRA) and give at least 50 per cent representation to private sector. While coming hard on the OGRA who is all set to further jack-up petroleum prices, LCCI President Irfan Qaiser sheikh said that OGRA should protect the interests of the stakeholders but it is doing the other way round. LCCI President also urged the government to cut the number of taxes on petroleum products as the fuel is considered the engine of growth. STAFF REPORT

Pakistan to host Islamic funds conference LAHORE: The financial world is banking upon the Islamic Finance and shariah Compliant Investment Funds, in the backdrop of the current global financial crisis, which in turn is bringing a boost to the Islamic Funds and sukuks. Considering the healthy global growth in this sector, an International Conference is being organised on April 23, 2012 in Karachi in order to strengthen the Islamic finance sector in Pakistan. Research papers will be presented and productive discussions will be undertaken to highlight the role of Pakistan in the global Islamic finance market. Islamic finance is making healthy growth in Pakistan which now stands over 1,000 Islamic banking branches from five Islamic Banks and 13 Conventional Banks with Islamic finance operations. In addition, we have good support from 05 Takaful Companies, Mudarabah Companies, 20 Islamic Microfinance Institutions, over 30 sukuk issues and 15 fund managers have launched their Islamic funds, which have made prominent role of Pakistan in the global Islamic finance canvas. STAFF REPORT

CACCI hails govt’s firm stance on IP pipeline LAHORE: Pak-Iran Business Council Chairman and Vice President of the Confederation of Asia Pacific Chambers of Commerce and Industry (CACCI) Tariq sayeed has fervidly hailed Asif Ali Zardari, President of Pakistan for his bold statement that ties with Iran won’t be undermined by pressure of any kind, describing it as a right approach for building amicable and profound relationship with neighbouring countries. In a press statement, Tariq sayeed who is also the former President of FPCCI and the Founder and Former President of sAARC CCI said the business community of Pakistan strongly endorsed the view of President Zardari. He added this decision will not only give boost to the morale of the country but also help overcome shortage of energy through the faster implementation of Pak-Iran Gas Pipeline Project, which has become indispensable for sustainable economic growth. “Project like Pak-Iran gas pipeline are crucial for forging deep alliances between two countries” said sayeed and added that by taking such a bold initiative, President Zardari has given a clear-cut message to the World that as a sovereign nation the Government had the courage to take unbiased and realistic measures, which should also be respected by other nations. sayeed also appreciated the leadership of the both countries for setting the target of bilateral trade to the tune of $5 billion, stating it as a positive reflection of the policy of the government under the leadership of Mr Zardari, which an important step forward to further improve bilateral relations with neighboring countries. STAFF REPORT

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Friday, 24 February, 2012

news

UBL bids lowest to acquire 67.4pc KBL shares KARACHI ISMAIL DILAWAR

consortium of financial institutions led by United Bank Limited (UBL) is acquiring 67.4 per cent shares of Khushhali Bank Limited (KBL), it emerged Thursday. The consortium, which comprises of UBL, Rural Impulse Fund II sA sICAVFIs, shoreCap II Limited, AsN-NOVIB Microcredit funds and Credit suisse Microfinance Fund Management Company, has been declared as the highest bidder by the shareholding banks who would be selling 67.4 per cent of KBL stakes. Prominent among the banks selling, KLB shares are National Bank of Pakistan (NBP), MCB Bank

Limited, summit Bank Limited, Allied Bank Limited and KAsB Bank Limited. These banks, respectively, sold 23.5, 17.6, 0.6, 11.73 and 0.59 per cent of shares they held in KBL, a microfinance institution. After completion of the acquisition process, UBL’s direct shareholding in KBL would, approximately, become 29.7 per cent. The selling banks have accepted the consortium’s bid of Rs20.44 per share, approximately, and have issued a Letter of Acceptance to the acquiring consortium. The banker’s view this acquisition of KBL by UBL’s consortium as a move in the “right direction”. Khushhali Bank, the bankers said, was long suffering from lack of active and efficient management. “KBL is going into the right hands now,” commented an executive from one of the selling banks. The two sides, the sellers and acquirers, have

notified the development to the managements of country’s three stock exchanges in Karachi, Lahore and Islamabad. Also, UBL has notified the same to its custodian in the Citibank as well as the London stock Exchange. The consummation of the acquisition, however, would require the two sides seek regulatory approvals from the state Bank of Pakistan and Competition Commission of Pakistan. Also, a successful execution of the share Purchase Agreement would be required. In UBL’s consortium, the Rural Impulse Fund II sA sICAV-FIs is represented in Pakistan by Incofin Investment Management Comm VA, shoreCap II Ltd by Equator Capital Partners LLC), AsNNOVIB Microkredietfonds by Triple Jump BV and Credit suisse Microfinance Fund Management Company by Responsibility Global Microfinance Fund.

Bear hug drains KSE of 88pts under profit-taking cloud KARACHI

Company Unilever Pak Foods Colgate Palmolive Nestle PakistanXD Wyeth Pak Limited Millat Tractors Ltd.

Open 1700.00 750.00 3280.36 754.87 459.17

High 1777.95 786.00 3323.50 792.61 479.00

Low 1750.00 750.00 3300.00 756.00 463.50

Close 1776.23 784.80 3315.00 786.84 475.60

Change 76.23 34.80 34.64 31.97 16.43

Turnover 413 334 129 3,377 54,311

5690.00 118.00 178.10 166.80 458.00

5550.00 111.00 172.50 162.25 444.00

5555.00 111.52 173.26 162.69 449.70

-46.20 -4.86 -4.46 -3.53 -3.08

8 4,419 641,193 509,598 45,967

9.24 6.75 24.47 2.19 8.20

10.37 7.45 23.66 2.27 8.28

0.62 0.34 23.84 0.11 -0.12

Major Losers UniLever Pak Ltd. Shezan Inter. MCB Bank Ltd Oil & Gas Develop Attock Petroleum

5601.20 116.38 177.72 166.22 452.78

Volume Leaders Jah.Sidd. Co. Azgard Nine Fatima Fert.Co. Pace (Pak) Ltd. B.O.Punjab

9.75 10.73 7.11 7.70 24.00 2.16 2.46 8.40 8.80

41,019,558 18,159,348 -0.16 10,018,773 10,007,552 6,793,770

Interbank Rates

STAFF REPORT

ARACHI stocks market ended bearish on Thursday because of, what the market observers said, institutional profit-taking amid lower trading volumes. The day saw the benchmark 100share index finishing dipping by 87.75 points to 12,515.92 points against 12,603.67 points of Wednesday. “KsE 100 index corrects itself for short term,” viewed Abdul Azeem, an analyst at InvestCap. The analyst said the benchmark failed to attract further buying interest as it attracted selling pressure below pivot. “The index kept rolling down once it touched the resistance level of 12,624 points level, as expected,” reviewed Abdul Azeem. The trading volumes at the readycounter slid to 178.045 million shares

Major Gainers

US Dollar UK Pound Japanese Yen Euro

90.8021 142.6137 1.1335 121.0301

US Dollar from the previous day’s 272.371 million shares. The trading value also declined and finished at Rs3.549 billion against Rs5.384 billion of the last session. The index hit the intraday high and low of 12,623.88 and 12,499.81 points, respectively. The market capital also slid to Rs3.263 trillion from the previous

Rs3.286 trillion. Of the total 347 traded scrips, 112 gained, 160 lost and 75 remained unchanged. Jahangir siddiqui Company appeared as a volume leader with 41.019 million of its shares traded at Rs9.75 in the opening and Rs10.37 in closing of the market. The future market also came down in terms of turnover

that declined to 11.643 million shares from 13.94 million shares of last session. “(The) stocks closed bearish on institutional profit-taking with lower trades after OGDC announced half year earnings announcements aligned with expectations,” viewed Ashen Mehanti of Arif Habib securities.

Buy

Sell

90.50

91.00

Euro

119.85

121.18

Great Britain Pound

141.66

143.16

Japanese Yen

1.1213

1.1327

Canadian Dollar

90.04

91.58

Hong Kong Dollar

11.47

11.74

UAE Dirham

24.60

24.82

Saudi Riyal

24.10

24.29

Australian Dollar

96.03

98.59

CORPORATE CORNER Tourism Malaysia focuses on Pakistan

KARACHI: In 2001 Pakistan accounted for a mere 15768 arrivals into Malaysia. As a result, this market was not considered to be an important source market for tourists to Malaysia. However, over the past few years the arrival numbers have really picked up and were recorded at 65101 in 2010 (amounting to a growth of over 400 per cent) over the last decade. In 2011 this number stood at a very impressive growth over the year. Most of this growth has been a result of family travellers as the average tourist from Pakistan wants to explore the world. PRESS RELEASE

Ufone oﬀers SMS Backup service IsLAMABAD: Ufone, one of the leading telecom companies in the country has recently launched a phenomenal one of its kind offer which allows its subscribers to save their messages for an indefinite period. Ufone has been the market leader in introducing industry first offers which commit to the needs of its valued customers. Ufone sMs Backup is a simple and effective way to save messages. The subscribers simply have to create an sMs Backup account by sending sUB 3838 or forwarding the sMs they want to save to 3838 for Rs0.01+Tax/ sMs. After subscribing a password will be generated through which the user can login to their sMs Backup account on http://smsbackup. ufone.com. All the backed up sMs can be viewed on the subscribers

web account. PRESS RELEASE

LUMS faculty participates at Karachi Literature Festival KARACHI: Launched in 2010, the Karachi Literature Festival (KLF) is fast becoming an important congress for writers from all over the world. This year faculty members from LUMs actively participated at the KLF held from February 11-12, 2012. Rasul Baksh Rais, syed Nomanul Haq, Ayesha Jalal, Pervez Hoodbhoy, Bilal Tanweer, Mohammad Waseem and Adiah Afraz shared their work and spoke at the various session held at the festival. The keynote address, this year, was delivered by the acclaimed writer and historian, William Dalrymple. PRESS RELEASE

Nokia, Djuice mentor Pakistan’s future developers KARACHI: February 23, 2012: With a vision to cater to students with a knack for mobile app development at a university level, Nokia Pakistan and Djuice conducted a Developer Workshop at NED University which focused on imparting training to students on s40 devices. It was for the first time that Nokia Pakistan conducted a developer workshop solely for students at a university. The venue for the workshop was Computer and Information systems Engineering Department where the trainer syed Faraz Ahmed from Lakson Business solutions shared details of the development tools available to develop mobile apps for s40 devices and gave hands-on training to participants. PRESS RELEASE

MD-PSO unveils the future for PSO KARACHI: Having recently taken over the reins at Pakistan state Oil (PsO), the nation’s leading oil marketing company, the new MD and CEO, Mr Naeem Yahya Mir unveiled his vision for the state owned company in a meeting with the senior management. During this briefing, the MD and CEO, PsO resolved

to face all challenges and take the company to new heights in the coming years. He apprised the senior cadre of his plans to make PsO the best company in Pakistan within the next two years. He also outlined his dream to make PsO a regional player in the next four years and one of the Fortune 500 companies in not more than six years. PRESS RELEASE

Turks remember flood eﬀected LAHORE: A six member Turkish business delegation visited the flood affected of Basti Khojanianwala, a place 40 away from Muzaffar Garh. The delegation distributed food items flour, sugar and other relief items amongst the 1500 last year affected families. They also distributed the toys and gifts amongst the children. The delegation is in Pakistan on their four day long visit. On the last day, they met the Chief Minister Punjab, Mian Muhammad shahbaz sharif and discussed the ways to boost up the trade, business and development of both brotherly countries of Pakistan and Turkey. It is worth mentioning here that the people and the government of Turkey helped a lot to the earthquake and flood affected of Pakistan. Millions Dollars aid and relief items were distributed. Rehablitation works of last year flood affected is also being carried even nowadays. A lot of model villages are being constructed in these areas. PRESS RELEASE

disbursed in one year and this amount will be used to conduct research into the Pedagogical Practices of Teacher Educators in Bachelors of Education (B. Ed) Honours Elementary and Associate Degree in Education (ADE) Programs .The grant was awarded after a rigorous review process, conducted by the Research Evaluation and Advisory Committee (REAC), led by the Higher Education Commission (HEC). REAC comprises representatives of the Higher Education Commission and experienced education researchers working in Pakistan and overseas. PRESS RELEASE

KARACHI: Meezan Bank has been awarded ‘Best Islamic Bank in Pakistan’ for 2011 by Islamic Finance News of RED money Group, Malaysia. Picture shows Mr Shabbir Hamza Khandwala, Chief Financial Officer – Meezan Bank, receiving the award at the award distribution ceremony in Kuala Lumpur, Malaysia. PRESS RELEASE

USAID awards 20 grants for research in teacher education MANSEHRA: The UsAID Teacher Education Project (Pre-sTEP) organised a cheque distribution ceremony at the Hazara University Mansehra, KPK. The event was attended by representatives of the UsAID Teacher Education Project, Vice Chancellor Dr sakhawat shah and faculties of Education Hazara University. Mr Kamran Iftikhar Lone, representative of the UsAID Teacher Education Project, presented the Vice Chancellor Hazara University, Dr sakhawat shah with a cheque amounting to Rs208,159 as first installment. A total of Rs1 million will be

ISLAMABAD: Momin Imran (C) who won the prestigious “Cassini Scientist for a day” Essay Contest is receiving an award from Mr Khurram Noor (1st L) and Mr Haji Muhammad Rafiq Giga (2nd L) – Director Emaar Pakistan while Mrs Anna Faisal (2nd R) and Ms Aliya Asim (1st R), Branch Head – Roots Emaar Canyon Views are also present. PRESS RELEASE