PRO 29-06-2012_Layout 1 6/29/2012 3:34 AM Page 1
Friday, 29 June, 2012
Nein! Page 02
Urea sales to hit record KARACHI STAFF REPORT
The sales of urea have broken all records and by the end of June it may reach close to 900k tons, said the market observers. “This is evident by the fact that with few days remaining in June the urea sales have already reached 820k-830k tons, said Farhan Mahmood of Topline Research. Last time, he said, such a huge monthly sales was witnessed in december 2009 when 912k tons of urea sold in a single month. But december is usually a peak season for urea. Such a huge recovery in June sales is due to pre-buying amid expected increase in urea prices if gas-cess is imposed and recovery in overall demand after lower than average sales in first five months. Out of 900k tons likely sales in June, sales of local branded urea would be around 95 percent mainly led by record sales of FFC and Engro. So far in June, imported urea available with nFML is estimated to be around 130-140k tons which also include portion of 100k tons tender floated few weeks back. Further local manufacturers are estimated to hold around 400k tons compared to 800k tons at the beginning of June 2012.
SECP seeks Bahria Town accounts ISLAMABAD AMER SIAL
The corporate sector regulator, Securities and Exchange Commission of Pakistan (SECP) has sought detailed accounts from the Bahria Town for examination after concerns were raised about the non transparent operations of the company. an official source said that the commission plans to scrutinize accounts of all the real estate companies and process will be started with the Bahria Town, largest housing construction concern in the country. He said an examination letter seeking details of accounts is already sent to the Bahria Town. it was not furnishing its annual accounts to the regulator. Other than the listed companies, SECP is extending its monitoring and enforcement to the non listed companies having paid up capital of more than Rs 7.5 million. We want the non listed companies to also disclose more to enhance transparency in the corporate sector, he added.
We need gas! a ISLAMABAD ONLINE
dViSOR to Prime Minister on Petroleum & natural Resources dr. asim Hussain has said Pakistan’s approach towards meeting energy requirements is of urgent nature and completion of mega gas projects including TaPi & iP is top priority. He expressed these views while meeting the twelve member Russian delegation headed by deputy Minister of Energy of the Russian Federation Y.P. Sentyurin, who called on the advisor on Thursday at islamabad. Secretary Petroleum & natural Resources Ejaz Chaudhry and senior officers of the Ministry were also present on the occasion. dr. asim Hussain said the in-principle decision of Russian Federation regarding cooperation in TaPi and iP projects is highly appreciated. He expressed confidence over bilateral cooperation between Pakistan and Russia and welcomed interest shown by Russian Federation in TaPi and iP projects. Secretary Petroleum briefed the delegation on latest position of TaPi and iP pipeline projects and emphasized on expanding the bilateral treaty framework of cooperation in oil and gas sector. The delegation was informed that the Ministry had extensively worked on Shale and Tight Gas policies that would be of interest to the Russian Government. it was agreed between the two sides that details of the twomega gas projects would be shared immediately and financial modalities would remain negotiable. Representatives of Russian companies includ-
ing Gazprom EP and PJSC Stroytransgaz also briefed the advisor to the Prime Minister on possible expertise that could be provided for the TaPi & iP projects. it may be recalled that the twelve members’ Russian delegation is visiting Pakistan in connection with second meeting of the Russian Pakistani Joint Working Group on Energy Cooperation that is being held in Pakistan.
‘Gas shortfall may touch 6b bcfd by 2020’ ISLAMABAD: The natural gas shortfall is expected to reach six billion cubic feet per day (bcfd) by 2020 which at present is around three billion. Secretary Petroleum, Muhammad Ejaz Chaudhry informed Senate Standing Committee on Petroleum and natural Resources Thursday that the ministry was making all-out efforts to deal with the looming gas shortage, but the country has limited resources. The meeting was further informed that this is the shortage which forced the government to curtail supply to industry and other sectors and added the planned import of gas would help decrease about two million bcfd of shortfall. He said the Ministry was adopting measures to enhance local production to meet the growing needs and added in spite of difficulties, it is tying to deliver in a better way. On the request of dr. asim Hussain, the Chairman postponed the meeting till July 9 to have briefing on Pakistan State Oil. APP
Unleash the beast inside you!
NEW DELHI AGENCIES
I
ndian Prime Minister Manmohan Singh has urged finance officials to revive the economy's "animal spirit" and reverse a climate of pessimism at a time of sharply decelerating growth. a day after taking over the finance ministry portfolio, Singh called in top ministry officials late Wednesday for a pep talk that focused on finding measures to boost flagging investor sentiment. "We need to work to get the economy going again and restart the india growth story," Singh told the officials, urging them to "reverse the climate of pessimism ... (and) revive the animal spirit in the country's economy." india's once-booming economy is suffering from slowing industrial growth, troublesome fiscal and current account deficits, stubbornly high
Global markets go nuts amid Industry in shambles EU summit apprehension KARACHI
STAFF REPORT
driving on the city roads these days, one would not miss an array of stylish exotic sedans and luxury cars of different makes and models in large numbers evoking one’s mind how these vehicles have so suddenly flocked into our market. This has happened because schemes for overseas Pakistanis are turned into a business opportunity whenever it is worthwhile, for that reason the crucial components of the policy that govern the scheme are always kept subject to change, any time. it is the “age limit” and the “depreciation” that essentially makes and unmakes the opportunity; and one would easily check out that when these were at higher level were indeed the periods of opportunity. in present times these are at the highest ever level so those in the field are making their best of the opportunity. Keeping the policy subject to change and maintaining an uncertainty with regard to possible change any time enables the beneficiaries to control the market and bring their opportunity close to perfection. Pakistan imported over 42000 used vehicles in the first 11 months of fiscal year 2011-12. These vehicles reduced the demand of locally manufactured cars, created environmental hazards and resulted in thousands of lost job opportunities. it has stopped all investment plans of the local car manufacturers.
ALL OVER THE MILKY WAY The euro traded in a narrow range in asia on Thursday as investors looked to a European Union summit starting later in the day, amid shrinking hopes for a breakthrough fix for the region's fiscal woes. The common currency bought $1.2491 and 99.20 yen in Tokyo trade, from $1.2467 and 99.38 yen in new York late Wednesday. The dollar was weaker at 79.44 yen from 79.71 yen in US trade.
across financial markets, as traders awaited the outcome of an EU summit on the eurozone debt crisis. Brent north Sea crude for delivery in august fell 80 cents to $92.70 a barrel approaching midday in London. new York's main contract, light sweet crude for august, lost 31 cents to $79.90 a barrel.EU leaders debate "a big leap forward" to strengthen their union and save the euro at a two-day summit starting Thursday, but divisions may scuttle efforts to shore up the single currency.
ASIAN MARKETS MIXED
Eu STOCKS, EuRO SLIDE
asian markets were mixed on Thursday with a positive lead from Wall Street offset by low expectations of a breakthrough at a key EU summit to resolve the spiralling eurozone debt crisis. The euro was little changed as investors waited anxiously to see if European Union leaders gathering for a two-day meeting starting later would offer any major support to the ailing single currency. Tokyo stocks were 0.91 percent higher by noon, while Sydney edged up 0.23 percent. But Hong Kong was flat, Seoul was down 0.27 percent, and Shanghai slipped 0.41 percent.
European stock markets and the euro slid on Thursday with traders waiting to see if an EU summit will deliver concrete steps to tackle the eurozone's spreading debt crisis. London's benchmark FTSE 100 index dropped 1.0 percent to 5,468.22 points, Frankfurt's daX 30 shed 1.80 percent to 6,116.43 points and in Paris the CaC 40 tumbled 1.20 percent to 3,026.44. Madrid's iBEX 35 slipped 0.70 percent to 6,619.00 points. in foreign exchange deals, the euro retreated to $1.2431 from $1.2467 late on Thursday in new York. "European politicians have done a fantastic job of lowering expectations for the EU summit that begins today, which means that even the smallest 'breakthrough' may cause a short-term relief
AGENCIES
OIL PRICES DROP World oil prices dropped on Thursday, mirroring the pattern
rally" across financial markets, said Kathleen Brooks, research director at Forex.com trading group. EU leaders debate a so-called "a big leap forward" for increased integration and save the euro at a two-day summit in Brussels, but splits might scuttle efforts to ring fence the single currency. European Union heads of state and government gather from 3:00pm.
ALL EYES ON TENSE SuMMIT EU leaders debate "a big leap forward" to strengthen their union and save the euro at a two-day summit starting Thursday, but divisions may scuttle efforts to shore up the single currency. European Union heads of state and government gather from 3:00 pm (1300 GMT) as the debt crisis, now in its third year, widens to Cyprus and Spain after contaminating Greece, Portugal and ireland. and with italy, the third largest eurozone economy italy too under threat, the EU is under pressure from world leaders to prevent a collapse of the single currency that would have unfathomable global repercussions. Europe's leaders are expected to agree a growth pact to revive the continent's flagging economies and propel the 27-nation bloc towards greater union, the first step being a banking union.
inflation and a stalled reform agenda. The economy grew just 5.3 percent in January to March, its slowest quarterly expansion in nine years. "On the external front, i am concerned about the way the exchange rate is going. investor sentiment is down and capital flows are drying up," he said. The indian rupee has lost more than a quarter of its value in the past 12 months and is currently asia's worst-performing currency. Singh took over the finance portfolio on Tuesday following the ministerial resignation of Pranab Mukherjee, who stepped down to contend india's presidential election in July. according to an official in the prime minister's office, Singh intends to retain control of the ministry for at least several months and will only appoint a permanent successor "when he thinks the time is right."
From Russia (and ADB) with love (and megawatts) ISLAMABAD STAFF REPORT
Russia and asian development Bank (adB) have shown interest to provide financial and technical assistance to Pakistan for importing electricity and constructing hydropower projects. a six-member Russian delegation led by deputy Minister of Energy Y.P Sentyurin and a delegation of adB, headed by director General, Central West asia department Klaus Gerhaeusser, separately called on Minister for Water and Power Chaudhry ahmed Mukhtar. Russia delegation expressed their interest to invest $ 500 million in the CaSa-1000 project for establishment of power transmission system from Kyrgyz Republic and Tajikistan to afghanistan and Pakistan. Both sides also expressed interest in modernization and rehabilitation of Muzafargarh and Guddu thermal power plants and conversion of them to cheaper fuel like coal. The minister welcomed the interest by Russia for cooperation in energy sector and offered them modernization of existing hydroelectric plants, participation for the construction of 500 KV transmission line for import of 1000 MW from iran to Pakistan and other projects like Tarbela 4th Extension, coal, renewable energy, and transmission line projects. The Russian delegation also showed their interest for mutually beneficial cooperation in the power energy sector and discussed various projects for investment. Pakistan and Russia agreed to sign a memorandum of understanding for cooperation in the energy sector and draft will be prepared from both sides in this regard for consideration.
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Friday, 29 June, 2012
Oil higher in Asia on US data SINGAPORE AGENCIES
Oil prices rose in asian trade Thursday, drawing support from largely positive US data and a strike by oil workers in norway, analysts said. new York's main contract, light sweet crude for august delivery, was 30 cents higher at $80.51 a barrel and Brent north Sea crude for august delivery was one cent up at $93.51. data released Wednesday by the US national association of Realtors showed pending home sales in the United States returned to March's two-year high in May, rebounding from an april plunge. Crude prices are heavily influenced by US data as the american economy is the world's largest oil consumer. The industry group said its index of pending home sales, or contracts signed but not closed, rose 5.9 percent to 101.1 in May. an index level of 100 generally indicates a healthy pace.
Nokia CEO admits failure HELSINKI AGENCIES
nokia chief executive Stephen Elop admitted on Thursday that his company had failed to foresee rapid changes in the mobile phone industry and this was partly behind the firm's problems. "We had moments in the past year and a half when we could have done some things differently had we known that the industry was changing so rapidly," Elop told Finnish national daily aamulehti.
‘JPMorgan losses could hit $9b’ NEW YORK AGENCIES
The losses from JPMorgan's botched derivatives trade may reach $9 billion, nearly five times the amount announced in May, the new York Times reported Thursday. The Times quoted an unnamed source as saying a report generated in april showed that in a worst-case scenario the losses from the trade could reach $8-9 billion, but said some regulators expect something closer to $6-7 billion.
JAR IN THE RAG
Bears stampede as bulls try and hug everything KSE-100 index gains a miserly 6 points as NRO implementation case hogs the spotlight KARACHI STAFF REPORT
T
HE bulls kept dominating Karachi stocks market on Thursday with benchmark, KSE 100-share index gained 6.30 points. The day saw the index closing up by 0.05 percent at 13, 805.42 points against 13, 799.12 points of Wednesday. The Pakistan stocks closed higher on institutional interest amid concerns for rising political uncertainty pending nRO implementation case. Viewed by ahsan Mehanti, director at arif Habib investments Limited. On Thursday, the trading volumes at the ready-counter were recorded lower at 63.362 million shares against 94.364 million shares of the previous day. The trading value decreased to Rs 2.304 billion compared to Rs 2.815 billion of the previous session. The intraday high and low, respectively, stood at 13, 880.58 and 13, 785.29 points. He added that the hopes for improvement in Pak-US ties after positive talks between army officials supported the sentiments. The market capitalization increased to Rs 3.520 trillion from Rs 3.518 trillion a day
earlier. Of the total 339 traded scrips, 127 gained, 113 lost and 99 finished as unchanged. The free-float KSE-30 index decreased 1.56 points to close at 11, 932.21 points against the previous 11, 933.77 points. Bankislami Pakistan was the day’s volume leader counting its traded shares at 5.677 million with the opening and closing rates standing at Rs 9.35 and Rs 10.30, followed by Soneri Bank Limited, Summit Bank Limited, Pakistan Telecommunication Company Limited (PTCLa) and d.G.K Cement with turnover of 5.158 million, 5.075 million, 3.658 million and 3.524 million shares respectively. according to analyst the uncertainty in global stocks and commodities on prevailing euro-zone debt crises kept foreign interest on lower end despite strong earnings outlook in blue chip stocks. On the future market, the turnover plunged by over 6 million shares to 12.411 million against 18.038 million shares of Thursday. The Rafhan Maize Prod and Siemens Pakistan, up Rs 94.34 and Rs 35.91, led highest price gainers while, Unilever Pakistan and Philip Morris Pakistan, down Rs 280.06 and Rs 9.25respectively, led the losers.
Nein! g
Germany says ‘no’ to bailout funds helping banks directly
Emirates to fly A380 twice a day KARACHI: Emirates, one of the world’s fastest-growing international airlines, is to further boost its fast-growing US network with the start of a second daily a380 service to new York JFK. From 1st January 2013, EK203 from
COMPANY
OPEN
HIGH
LOW
CLOSE
Rafhan Maize Prod. Siemens Pakistan Bata (Pak) Limited Nestle Pakistan Ltd. Colgate Palmolive
3050.00 727.95 681.15 4068.92 965.50
3148.80 764.34 715.15 4100.00 980.00
3100.00 3144.34 740.00 763.86 700.00 701.07 4036.00 4084.24 960.00 979.99
CHANGE TURNOVER 94.34 35.91 19.92 15.32 14.49
11 51 309 43 917
BERLIN
Major Losers UniLever Pak Philip Morris Pak. Indus Motor Com Clariant Pak Jubilee Life Ins.
7298.25 185.01 245.28 178.00 69.98
7284.00 189.00 246.00 175.02 71.49
7000.00 175.76 240.00 175.00 67.01
7018.19 175.76 241.69 175.00 67.01
-280.06 -9.25 -3.59 -3.00 -2.97
53 47,093 17,476 543 2,000
Volume Leaders Bankislami Pakistan Soneri Bank Ltd Summit Bank Ltd P.T.C.L.A D.G.K.Cement
9.35 7.56 3.22 13.98 39.93
10.35 7.75 3.30 14.31 40.60
9.60 7.25 3.12 13.85 39.90
10.30 7.49 3.20 13.92 40.11
0.95 -0.07 -0.02 -0.06 0.18
5,677,512 5,158,141 5,075,383 3,658,115 3,524,557
Interbank Rates US dollar UK Pound Japanese Yen Euro
94.5826 147.0003 1.1921 117.5473
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUY
SELL
95.30 117.50 146.65 1.1881 91.20 12.11 25.80 25.30 94.39
96.50 119.02 148.50 1.2030 92.86 12.30 26.10 25.56 97.04
AGENCIES
Germany is opposed to the eurozone's bailout funds helping banks directly as long as financial sector supervision is carried out at national level, a government source said on Thursday. "The current system, where member states are responsible for their banks, can function only if the responsibility for recapitalization also lies with the member states," the source said. "We can't start by having joint responsibility for recapitalisation. We mustn't start that way round and say: 'now we can recapitalise banks directly'," the source said. While some member states argue that banks themselves should be able to seek aid directly from the European Financial Stability Facility (EFSF) or its successor the European Stability Mechanism (ESM), Germany insists that applying for help is strictly a matter for governments. "Otherwise, the EFSF and ESM would hold a stake, say, in a Spanish bank but would have no right to intervene, which would continue to be held at a purely national level," the source argued. "Liability and responsibility must be at situated at the same level," the source said. With a view to the EU summit beginning in Brussels later on Thursday, the source said the bloc already had sufficient weapons at its disposal to fight the crisis and there was no need to draw up new additional measures. asked whether any decisions would be taken on
UK’s Osborne to make statement on Barclays LONDON AGENCIES
Greece, the source noted that the so-called "troika" of auditors from the European Union, the European Central Bank and the international Monetary Fund would only be travelling to Greece next week. Thus, leaders would have to await their report before any decisions could be taken about the state of the debt-wracked country. Turning to soaring borrowing costs facing Spain and italy, the source warned against "exaggerated scare-mongering." On Wednesday, Spanish Prime Minister Mariano Rajoy warned that his country cannot finance itself for long at the high rates it now pays on the markets. if Spain, the eurozone's fourth-biggest economy, is shut out of the markets it could lead to a full-blown bailout for the country with unfathomable consequences for the 17-nation eurozone.
British finance minister George Osborne will make a statement on Thursday about a regulatory probe that found Barclays bank had manipulated interbank lending rates over several years. a spokeswoman for the House of Commons said Osborne would address parliament shortly after 1100 GMT on a Financial Services authority investigation into the how Britain's key interbank lending rate, Libor, was fixed. Barclays will pay 290 million pounds ($453 million) to U.S. and British authorities to settle allegations that it manipulated interest rates. Libor underlies everything from derivatives trades to U.S. consumer credit card rates to loans as far afield as those financing Turkish phone networks.
‘Strings attached to Spain bank aid’ FRANKFURT AGENCIES
dubai to JFK, and its return sector EK204, will become a380 flights, offering an increased capacity of almost 1,000 additional seats in both directions every week. The service is currently operated by a Boeing 777-300ER.
RAK FTZ concludes road show ISLAMABAD: The Quality assurance agency (Qaa), Higher Education Commission (HEC) in collaboration with national Computing Education accreditation Council (nCEaC) organized a three-day training workshop for the Program Evaluators of nCEaC held here at HEC islamabad. Prof. dr. Shahrin Bin Sahib director, division of academics development Management Ministry of Higher Education, Malaysia was the resource person for the workshop. The inaugural session of the workshop was chaired by Prof dr. aftab ahmed, Chairman nCEaC.
Major Gainers
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CORPORATE CORNER HEC’s NCEAC workshop
Business 02
LAHoRe: Following the success of the Karachi road show, Ras al Khaimah Free Trade Zone (RaK FTZ) concluded a road show in Lahore on the 27th of June at the Pearl Continental Hotel. RaK FTZ is visiting Pakistan with an agenda to attract Pakistani businessmen to Ras al Khaimah. Pakistan is the third biggest market for RaK FTZ, and the free zone is looking to improve and succeed even more by demonstrating complete dedication to the region.
KARAChI: A Group Photo with the Chief Guest Commissioner Karachi Roshan Ali Shaikh, Consul General Republic of Korea In-Ki Lee, Kaukab Iqbal Chairman CAP, Chang il Kim Chief Executive Daewoo Pakistan, S.B Hassan, On the Occasion of inauguration ceremony Daewoo Express Bus Service from Karachi to up country.
BOP, ‘Rainmaker of the Year’ LAHoRe: The Bank of Punjab has achieved another landmark by handling remittances of PKR 49.9 billion for the year 2011 through Xpress Money UaE. To commend our performance the company arranged a ceremony in abu dhabi and presented BOP with the RainMaKER OF THE YEaR aWaRd. Mr. Mustafa Hamdani Group Head Payment Services received the award on behalf of the Bank of Punjab.
a bailout of Spain's banks comes with strings attached and Madrid's efforts to cut its deficit must be monitored closely, a top European Central Bank official said on Thursday. "Spain will receive the money from the bailout fund in tranches, with payment depending on whether Spain meets the conditions," the ECB's chief economist Peter Praet told the Financial Times deutschland. "Spain has no classical aid programme. But given the interconnectedness between the situation in the banking sector and state finances, we must also keep an eye on the development in the Spanish state budget," Praet said. Spain insists that a eurozone loan of up to 100 billion euros ($125 billion) agreed in mid-June imposes conditions only on the banks, with no new steps required on austerity or broader economic reforms.
Sony selling chemical unit for $730 million TOKYO AGENCIES
KARAChI: Picture shows President and CEO Silkbank Azmat Tarin (left) signing the contract with Director Symmetry Group, Syed Adil Ahmed (right). Head of Cards, Salman Hasan, Head of ITO, Javed Y Edhi and CTO of Creative Jin, Mohammad Sajid were also present at the ceremony,
Sony said Thursday it would sell its chemical products division for about $730 million as part of a giant overhaul of the struggling Japanese consumer electronics giant. Sony previously said the development Bank of Japan was buying the business, which makes films used in liquid-crystal display panels and other products.