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Saturday, 11 August, 2012
Oil down in Asia after weak China trade data SINGAPORE AGENCIES
Crude was lower in Asia Friday as weak Chinese trade data provided a further indication that economic growth in the world’s largest energy consumer is slowing, analysts said. New York’s main contract, light sweet crude for delivery in September, retreated 36 cents to $93.00 a barrel
while Brent North Sea crude for September delivery fell 36 cents to $112.86. China’s General Administration of Customs said exports grew just one percent in July year-on-year to $176.9 billion, while imports rose 4.7 percent to $151.8 billion, cutting the trade surplus to $25.1 billion from $31.7 billion in June. The data follow results on Thursday showing retail sales,
industrial output and inflation eased in July, showing that the exportdriven economy was feeling the effects of Europe’s debt crisis was lowering demand in the key market. “The economic data out of China certainly has been bearish... it’s not good news and has prompted equities and oil futures to move down,” said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.
Raja Pervaiz has nerves of steel
Prime minister announces Rs 2 billion bailout package for Steel Mills
KARACHI ONLINE
P
RImE minister Raja Pervaiz Ashraf on Friday underlined that Pakistan Steel mills would not be privatised rather it would be made a profitable entity. Addressing a ceremony at Pakistan Steel mills, Prime minister Raja Pervaiz Ashraf said that the present government was paying special affection for the organization and did not want to privatise it. He announced a bailout package of about three billion rupees for Steel mills and vowed to become it a profitable entity. Announcing immediate release of two billion rupees to Pakistan Steel mills‚ he assured that releases of
the bailout package would be made on timely basis. The prime minister said Zulfikar Ali Bhutto, who had laid the foundation of this important institution at a difficult time, had declared it as a backbone of the economy. He said besides Pakistan Steel mills‚ there are several other institutions which were also running into losses and have become a burden on the national exchequer. He, however, assured that despite all financial crisis‚ resources will be provided for revival of Pakistan Steel mills. Paying rich tributes to Zulfikar Ali Bhutto‚ he said the credit of setting up basic infrastructure of these industries including heavy mechanical complex‚ electrical complex and Kamra complex goes to the vision of Shaheed leader.
China says July exports rise 1% to $176.9 billion
Weekly inflation witnesses nominal increase ISLAMABAD
BEIJING
APP
AGENCIES
The Sensitive Price Indicator (SPI) for the week ended on August 9, for the lowest income group up to Rs.8,000, registered increase of 0.34 per cent as compared to the previous week. The SPI for the week under review in the above mentioned group was recorded at 178.81 points against 178.21 points registered in the previous week, according to provisional figures of Pakistan Bureau of Statistics (FBS). The weekly SPI has been computed with base 2007-2008=100, covering 17 urban centers and 53 essential items for all income groups and combined. The SPI for the combined group increased by 0.21 per cent as it went up from 184.79 points in the previous week to 185.17 points
China’s exports grew one percent in July year-on-year to $176.9 billion, official data showed Friday, in a fresh sign of weakness in the world’s second-largest economy. Imports rose 4.7 percent to $151.8 billion, the General Administration of Customs said in a statement on its website, while the trade surplus for the month narrowed to $25.1 billion from $31.7 billion in June. The July trade data, combined with figures released Thursday, provide further evidence that the economy remains sluggish despite government efforts to prop up growth and investment. Industrial production, which measures output at the country’s factories, workshops and mines, and retail sales, the main gauge of consumer spending, both slowed in July, figures released Thursday showed. A slowdown in consumer price inflation in July for the fourth straight month, however, is seen as giving authorities more room to loosen monetary policy further in a bid to boost the slumping economy.
ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) has declared the profit of Rs 96.90 for financial year ended on June 30, 2012, witnessing an increase of 34.44 percent when compared with the profit of Rs 63.52 billion in the same period of last year. The company has also announced Rs. 22.53 earning per share (EPS) for current year against Rs 14.77 EPS in the same period last year, according to a data available here. In addition, the company has declared the cash dividend of Rs.2.75 per
nflation
share or 27.5 per cent. The profit of the company has registered a rise owing to a decrease in the expenditure of exploration and prospecting, an increase of other income of company and net sales. The net sales of company was increased to Rs 197.83 billion in current year from Rs 155.63 billion and the other income of company also stood at Rs 9.66 billion in 2012 against Rs 3.30 billion in the last year. Besides, the exploration and prospecting expenditure of company has registered as decrease from Rs 6.62 billion in the current
year to Rs.4.04 billion in the same period last year. Meanwhile, Pakistan State Oil (PSO) has posted the profit of Rs.9.05 billion for financial year ended on June 30, 2012 against Rs.14.77 billion in the same period of last year. The PSO has announced Rs.52.80 EPS for the current year against Rs 86.17 EPS of the last year and in addition the corporation has also declared the cash dividend of Rs 2.5 per share or equivalent to 25 percent cent, said a statement issued by the PSO here. The corporation has recommended to issue bonus
in the week under review. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 7.05 percent. As compared to the last week, the SPI for the income groups from Rs.8001- 12,000, 12,001-18,000, 18001-35,000 and above Rs.35,000 increased by 0.29, 0.26, 0.21 and 0.14 respectively. During the week under review average prices of 06 items registered decrease, while that of 15 items increase with the remaining 32 items’ prices unchanged. The items which recorded decrease in their average prices during the week under review included chicken live (farm), bananas, gram pulse (washed), egg hen (farm), vegetable ghee (loose) and sugar. The items which registered increase in their
shares in proportion of 1 share for every 5 shares held or 20 per cent. Despite increase of the net sales, the profit has witnessed a decrease because of an increase in the operating expenses which went up from Rs.9.54 billion to Rs 18.16 billion in the current year. Talking to APP, Stock Analyst said that the results of PSO has caused positive sentiments in the stock market on Thursday because of the cash dividend along with Bonus shares of 20 per cent announced by the corporation which led the positive activity here. APP
prices included onions, tomatoes, LPG (11 kg cylender), potatoes, wheat, garlic, mash pulse (washed), gur, wheat flour (bag), masoor pulse (washed), red chillies (powder), rice basmati (broken), moong pulse (washed), shirting and beef. The items with no change in their average prices during the week under review included rice (irri-6), bread (plain), mutton, milk (fresh), curd, milk (powdered), mustard oil, cooking oil (tin), vegetable ghee (tin), salt (powdered), tea (packet), cooked beef, cooked dal, tea (prepared), cigarettes, long cloth, lawn, georgette, sandal (gents), chappal (gents), sandal (ladies), electric charges, gas charges (upto 100m3), kerosene oil, firewood, energy, savor 14 wats, washing soap, match box, petrol, diesel, telephone local call and bath soap.
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02 Business MAJOR GAINERS CoMPany oPEn Nestle Pakistan Ltd. 4090.00 Exide (PAK) XD 234.37 Clariant Pak 213.33 Shell Pakistan Ltd. 122.01 Philip Morris Pak. 140.00
HiGH 4199.99 246.08 223.99 128.00 147.00
loW 4090.00 227.00 215.00 122.99 140.00
CloSE CHanGE 4199.99 09.99 246.08 11.71 223.97 10.64 127.72 5.71 145.39 5.39
tuRnovER 120 51,200 11,800 36,700 32,600
1370.00 771.75 549.00 238.01 189.75
1271.00 702.00 520.00 238.01 184.80
1313.43 716.00 526.39 238.01 185.20
350 5,100 60,800 400 34,600
MAJOR LOSERS Colgate Palmolive Bata (Pak) Limited Millat Tractors Shezan Inter. Abbott Laboratories
1337.50 735.00 540.75 247.75 189.78
-24.07 -19.00 -14.36 -9.74 -4.58
VOLUME LEADERS Quice Food(R) Maple Leaf Cement K.E.S.C. Quice Food Jah.Sidd. Co.
3.93 7.38 4.27 12.17 15.11
3.90 7.65 4.49 13.17 15.32
2.93 7.15 4.16 11.61 14.90
3.01 7.54 4.27 12.98 14.99
-0.92 0.16 0.00 0.81 -0.12
3,430,000 3,160,500 2,735,500 2,319,000 1,576,000
INTERBANK RATES US Dollar UK Pound Japanese Yen Euro
94.2045 146.9118 1.1999 115.6736
DOLLAR EAST US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy 93.50 114.51 145.95 1.1857 93.58 11.89 25.38 24.88 97.85
SEll 94.30 116.11 147.94 1.2018 95.36 12.11 25.70 25.15 100.64
CORPORATE CORNER
Khushhalibank announces branchless banking initiative ISlAMABAD: Khushhalibank (KB) announced today that it is extending its partnership with ShoreBank International Ltd (SBI), to develop and roll-out KB branchless banking services in partnership with a national payment platform provider. SBI has received a $1.19million funding extension from the Bill & melinda Gates Foundation to support this partnership initiative with Khushhalibank. This initiative is an extension of the South Asia micro Savings Initiative (SAmI) which was implemented by SBI with partners across South Asia, with support from the Bill & melinda Gates Foundation. Since the initiation of SAmI in 2009, KB has been able to develop and offer deposit accounts to approximately 350,000 un-served and low-income clients in Pakistan.
KaRaCHi: Chairman oBS Group and President PSBf, tarek M.Khan, hosted an iftar dinner at Merritt hotel Karachi . Picture shows C.G of Srilanka, D.W.Jinadasa,with other guests.
KaRaCHi: Sohail Wajahat Siddiqui, Chairman Board of Management, Pakistan State oil, presiding over the BoM meeting at Company Head office PSo House. the board reviewed the performance of the national energy company for the fiscal year 2012, ended June 30, 2012. this year PSo has become Pakistan’s first company with revenues exceeding the trillion rupees mark.
laHoRE: Zia Haider Rizvi, Bilal ahmed and Mr Sam at a welcome party organized by thai airways lahore and Samsung Pakistan.
index ends flat as PSo and SBP keep bulls, bears and investors, guessing KARACHI/ISLAMABAD
P
STAFF REPORT
AKISTAN Stocks closed higher on strong earnings outlook announcement by PSO amid cautious activity ahead of SBP policy announcement. This was said by Ahsan mehanti, Director at Arif Habib Investments Limited. The Karachi Stock Exchange benchmark 100-share index gained 1.90 points, or 0.01 percent, to close at 14, 761.49 points on volume of 37.629 million shares. The trading volumes at the readycounter were recorded lower at 37.629 million shares against 75.362 million shares of the previous day. The trading value down to Rs 1.524 billion compared to Rs 3.052 billion of the last day session. The intraday high and low, respectively, stood at 14, 790.36 and 14, 718.96 points. He added that the concerns for Supreme Court notice to Pm on NRO verdict, uncertainty in global stocks and commodities affected the sentiments despite strong earnings outlook for banking and oil sector. The market capitalization grew modestly and increased to Rs 3.767 trillion from Rs 3.766 trillion a day earlier. Of the total 241 traded scrips, 118 gained, 106 lost and 17 finished as unchanged. The free-float KSE-30 index shed to 26.36 points to close at 12, 686.52 points against the previous 12, 712.88 points. The KSE all-share index closed with a gained of 1.60 points to 10, 383.18 points as against 10, 381.58 points. Quice Food ® was the day’s volume leader counting its traded shares at 3.430 million with the opening and closing rates standing at Rs 3.93 and Rs 3.01, followed by maple Leaf Cement, Karachi Electricity
Supply Corporation K.E.S.C, Quice Food and Jahangir Siddiqui Company with the turnover of 3.160 million, 2.735 million, 2.319 million and 1.576 million shares respectively. mehanti said that the approval of Petroleum Policy 2012 by CCI, higher exploration targets set for PPL and hopes for rate cut in key policy rate played a catalyst role in bullish sentiments in the earning announcement session at KSE. On the future market, the turnover remained negative to 3.401 million against 9.351 million shares of second last working day of the week Thursday.
Dollar range-bound in Asia after US jobs data TOKYO: The dollar was trading in a narrow range against the euro and the yen Friday afternoon following a rise in New York on positive US jobs and trade data. The greenback was quoted at 78.57 yen in early trade, little changed from 78.55 yen in New York late Thursday. The euro stood at $1.2290 and 96.57 yen, slightly down from $1.2301 and 96.62 yen. The Australian dollar fell to $1.051 from $1.061 after weaker-than-expected Chinese trade data raised concerns about the world’s number two economy. “Although the yen briefly rose on Thursday as investors were disappointed at the Bank of Japan’s lack of action, the dollar-yen could near the 79 yen level thanks to positive US data” and the trend of rising yields on US Treasury bonds, said masafumi Yamamoto, chief currency strategist at Bar-
clays Capital. US weekly new jobless claims fell to 361,000, the Labor Department said Thursday, in another sign that the employment market has some moderate strength despite a second quarter lull in hiring. The US trade deficit narrowed in June for the third straight month, figures showed Thursday, a trend seen as positive by analysts. The market is likely to take Japan’s vote in the upper house on a consumption tax hike bill due later Friday in its stride, mizuho Corporate Bank analysts said in a note to clients. The passage of the bill through parliament looked to be back on track after Prime minister Yoshihiko Noda survived a no-confidence motion Thursday, having clinched an 11th-hour deal with a major opposition party. AGENCIES
The Nestle Pakistan Limited and Exide Pakistan XD, up Rs 109.99 and Rs 11.71, led highest price gainers while, Colgate Palmolive and Bata Pakistan Limited, down Rs 24.07 and Rs 19.00 respectively, led the losers. ISE-10 flAT AS WEll: Islamabad Stock Exchange (ISE-10) here on Friday witnessed bearish trend as the index was down by 5.91 points to close at 2931.22 as compared to the previous day’s trading. Talking to APP, Stock Analyst m.m Hassan said that the technical correction was seemed in the local stock market because the investors had booked the profit when the index got the strength. Despite profit taking in the market, the Pakistan State Oil (PSO) remained most traded scrip due to announcement of the bonus shares a day earlier by the PSO, he added. Besides oil sector, the major positions were taken in the cement and fertilizer sector when the index went down and it was positive aspect for the capital market, Hassan said. Total volume of shares traded was 13,700, which was down by 131,900 when compared it with a day earlier’s closing.
Manchester United slashes price for US share offer WASHINGTON Britain’s world-renowned soccer club manchester United has slashed the price of its US share offer, cutting the proceeds from Friday’s listing to $233 million from a hoped-for $300 million. The fabled team, mired in debt since 2005 after a heavily leveraged takeover by the Glazer family of miami-based investors, cut the price for the 16.7 million shares on offer to $14 late Thursday from the planned $16-20 range. The company gave no reason for the decision but it comes amid doubts about the club’s ability to boost profits as long as it carries such a hefty debt burden — morningstar analysts estimated a fair price at just $10. Investors have also become wary about aggressively priced initial public offerings after the muchpromoted Facebook launch soured. AGENCIES
ASIAN MARKETS FALL ON WEAK CHINA TRADE DATA HONG KONG: Asian markets slipped Friday as weak Chinese trade data reinforced concerns over a slowdown in the world’s number two economy, while profit-taking after a week-long rally added to selling pressure. Wall Street provided a weak lead despite upbeat US jobs and trade data that indicated a positive outlook for the world’s number one economy. Tokyo eased 0.84 percent, Hong Kong fell 0.71 percent by the break, Sydney was
0.62 percent lower and Shanghai shed 0.12 percent while Seoul was flat. China’s General Administration of Customs said exports grew just one percent in July year-on-year to $176.9 billion, while imports rose 4.7 percent to $151.8 billion, cutting the trade surplus to $25.1 billion from $31.7 billion in June. The data follow results on Thursday showing Chinese retail sales, industrial output and inflation eased in July, showing that the export-driven
economy was feeling the effects of Europe’s debt crisis lowering demand in the key market. The figures will also add to calls for China’s leaders to further loosen monetary policy to kick start growth, which in the April-June quarter grew at its slowest pace since the height of the global crisis in 2008-2009. China has already this year taken the rare step of slashing interest rates twice in quick succession, while also lowering requirements for how
much money banks must keep in reserve as it looks to spur lending. Profit-taking added to Friday’s losses after global markets rallied this week following European Central Bank comments that gave investors confidence it will restart its sovereign bond-buying programme soon to help countries such as Spain and Italy. There are also expectations the Federal Reserve will return to its assetpurchasing programme to spur the US economy. AGENCIES
Saturday, 11 August, 2012