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Pressure rises on JP Morgan over risk, clawbacks Page 2
profit.com.pk
Wednesday, 16 May, 2012
uSAID AT LCCI
Uncle Sam apprehensive about his favourite nephew LAHORE
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SWEET!
POur SOmE
SugAr ON mE ISLAMABAD REUTERS
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akistan on tuesday allowed the export of 200,000 tonnes of white sugar and directed the state trading corporation to buy 200,000 tonnes from local mills for domestic stocks, the chairman of the Pakistan sugar Mills association (PsMa) said. “the export will be handled by the mills themselves,” Javed kayani told Reuters. Pakistan’s sugar production in the ongoing season is close to 4.7 million tonnes, according to the PsMa. “We had earlier approached the government and proposed that they purchase 400,000 tonnes of sugar from us,” kayani said. “it would help us with
POW!
Pakistan aPProves exPort of 200,000t white sugar
liquidity and facilitate payments of between 25 and 30 billion rupees ($275 million to $330 million) to growers.” kayani added that the Pakistani millers were looking at tajikistan, iraq and indonesia as possible markets for export. Officials from Pakistan’s commerce and finance ministries were not immediately available for comment. in February, Pakistan approved the export of sugar for the first time in nearly three years, spurred by an expected surplus of more than 1 million tonnes. Last year, Pakistani millers sought permission from the government to export up to 500,000 tonnes of refined sugar because of expectations of a bumper crop, which could exceed 5 million tonnes.
STAFF REPORT
akistan’s economy requires immediate reforms to overcome the challenges because any more delay in initiating much-needed sectorspecific reforms would further aggravate the situation. this was the upshot of the presentation given by the Chief economist UsaiD thomas Morris on the state of Pakistan’s economy here at the Lahore Chamber of Commerce and industry on tuesday. the LCCi President irfan Qaiser sheikh, senior Vice President kashif Younis Meher, Vice President saeeda nazar, former Presidents iftikhar ali Malik and Mian Muzaffar ali also spoke on the occasion and threw light on various sectors of economy where Pakistan and the Us could work jointly. the UsaiD Chief economist indicated that the country’s fiscal position was fast deteriorating as numbers suggest the gap was widening with every passing day. he highlighted that a major chunk of taxpayers money was being eaten away in defense expenditures, subsidies and interest payments. after spending huge sums of money on non-development expenditure, the
government had left with no money to spend on hard pressing energy shortage and social development. he pointed out that in 2008-09 Pakistan was paying around Rs99,000 million on account of subsidies, but this figure jumped up to Rs284,827 million in 2010-11. he was of the view there was dire need to correct the energy mix of the country as any change in petroleum products prices adversely affect the government’s budgetary estimates. thomas Morris pointed out that in 2008-09, the government allocated Rs77,000 million for electricity subsidies, but it had to spend Rs 99,000 millions when oil prices in the international market were below $80. On the other hand, in 2010-11 budget, the government earmarked Rs32,000 million for electricity subsidy, but it had to spend Rs284,827 million as oil prices had crossed $100 per barrel barrier. he said that the GDP growth would remain 3 per cent contrary to government’s claim of four percent. he said that during the global recession Pakistan’s economy remained positive which shows its strength. therefore, he said that the government should focus on curtailing expenditure by cutting non-development expenses. he said
that Pakistan should further strengthen its economic relations with the United states by signing new trade agreements. talking about agriculture sector, the UsaiD Chief economist said that agriculture sector in Pakistan is constrained by insufficient investment over many years as its share in the GDP in 1960 was 46.2 percent and in 2010 it was only 20.8 percent. speaking on the occasion, the LCCi President said that the Lahore Chamber of Commerce and industry was ready to collaborate with UsaiD in carrying out projects in energy sector for the sake of economy and in the best interest of Pakistan and its nationals. about the condition applied by Us Congress Committee to link economic and military aid to natO supply resumption, the LCCi President said that it is not justified considering the present situation of Pakistan which has already suffered losses of well over $ 65 billion due to its frontline role in war against terror. irfan Qaiser sheikh said that the role of UsaiD in various sectors ranging from energy, education, health, humanitarian assistance and etc., needs to be expanded to more areas and with wider scope.
SBP’s double whammy!
SBP decides to enforce International Bank Account Number standard ‘SBP plays major role in spreading market of Islamic Banking’ KARACHI
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STAFF REPORT
he state Bank of Pakistan (sBP) has decided to implement international Bank account number (iBan) standard in the country to bringing about account code standardization and efficiency in processing of payments for domestic as well as cross border transactions. to this effect, the central bank Wednesday issued iBan guidelines that contain details for the number’s generation, validation and implementation timelines. according to the guidelines, the iBan, an international standard (isO 13616) for identifying bank accounts across borders, would be implemented in two phases. in the first phase, all banks shall generate and notify iBan to all their customers by December this year while the second phase would mark the operational usage, including capturing, recognition, processing, validation and transfer, of the number both for domestic and international financial transactions by June next year. it may be pointed out that iBan is made up of two components. While
the first component is comprised of a country code and check digit, the 2nd one is called Basic Bank account number (BBan). the check digit mechanism in an iBan compliant account number would validate the accuracy of account number at the point of transactions entry at the remitting institutions, domestic or international. about benefits of the iBan, the state Bank said a bank account standard across Pakistan would bring more efficiency in payment processing by enabling the payments and clearing systems to electronically validate account numbers and to decide the route a payment should take without manual intervention. the elimination of delays in credit transfers originating from iBan compliant countries to Pakistan as same are delayed, sometimes for several days due to manual intervention required for sending credit transfers to non iBan compliant account numbers. iBan implementation would help in bringing more efficiency in remittance related transactions as a significant percentage of these transactions are rejected due to inaccurate account numbers information.
account validation at remitting institution due to iBan’s check digit mechanism would significantly reduce errors related to account numbers. the state Bank has asked the banks to generate and issue iBan to its account holders. the banks should encourage customers to use or/and quote their iBan number in all financial transactions during the transitionary period. the banks have also been advised to develop online utilities for converting their account numbers to iBan to facilitate their account holders besides quoting iBan number in account statements issued to each account holder. Moreover, the beneficiary customer should notify ordering customer of their iBan. Under the sBP guidelines the financial institutions should validate the iBans at the time of entry of the transaction in their system both for sending and receiving customers. the central bank said the guidelines had been developed in consultation with Pakistan Banks’ association (PBa) nominated committee on iBan. all participants have been advised by the sBP to ensure implementation of iBan as per given timelines.
KARACHI
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NNI
he state Bank of Pakistan is playing a major in role in spreading the market of islamic Banking in Pakistan and we salute their efforts. the conventional banks are also exploring the avenues in the islamic sector due to the promotion of parallel banking by the state Bank in 2002. so unlike the concept which was introduced in 1970s when the customers were forcefully being pushed towards islamic Banking, now the concept is effectively evolving when the customers have a free choice because more industry players are becoming visible. it was stated by Vice President – Product Development & shariah Compliance Mezan Bank Ltd Fayyaz-ur-Rehman khan at a seminar on “islamic Banking” organized by COMMeCs institute of Business and emerging sciences (CiBes) recently. the Management of CiBes along with the faculty, staff and students participated in this seminar. a large number of guests from industry were also present in this seminar. Fayyaz-urRehman khan started his speech with the concept and prohibition of interest/markup in islam and its culture as opposed to conventional banking, with the reference of Verses from holy Quran and ahadees. he also cleared several misconceptions about islamic Banking in the minds of people focusing on the difference between the conventional banking and islamic Banking. he specially targeted
those people who think that both are the same. During the question and answer session he thoroughly the audience by explaining the efficacy and benefits of islamic banking to citizens as well as the government. it was predicted that islamic Banking will become the future pillar of the country’s economy. he also said that ‘Pakistan being an islamic Republic with Muslim population of 98 % has indeed a general notion that the people should adhere to islamic principles. so when a customer knows that he/she can avail products, services and benefits of banking, in an islamic way, the person will definitely move towards it’. highlighting the benefits of islamic Banking for students Fayaaz-urRehman announced Qarzehasna of Rs. 1.00 Million per annum to CiBes students, repayable in easy monthly installments. at the end Director CiBes, Mohammad arif Dossal thanked the respected speaker and all the participants for their interest in such nation building events conducted by CiBes. he said that the main objective of the seminar was to create awareness of issues regarding islamic Banking. the audience expressed satisfaction that they had acquired greater knowledge and that the discourse had corrected many concepts about islamic Banking. the Commecs Management reiterated that such informal but directed efforts would be continued to create “out-of-the-box” learning for its students enabling them to get the professional edge needed to take them successfully towards their careers.
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Wednesday, 16 May, 2012
news WrITINg ON THE WALL
Consumer shares lift Wall Street, but Greece drags NEW YORK REUTERS
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UaRteRLY results helped boost the s&P consumer discretionary sector index, with tJX (tJX.n) up 7.4 percent at $42.65 and Dick’s sporting Goods (Dks.n) up 9.2 percent at $51.59. the s&P retail sector index .RLX rose 1.5 percent. U.s. retail sales rose 0.1 percent in april, slightly below expectations. however, details in the Commerce Department’s report indicating underlying strength in demand and a rebound in manufacturing activity in new York state calmed concerns that the economy was stalling. “earnings have been pretty good and supporting the market to a certain degree,” said John Manley, chief equity strategist at Wells Fargo Funds Management in new York. “People are still worried about things, but earnings surprises are more positive than not, and that is encouraging them to stay in stocks - if not move into stocks.” Data showing an index of home builders’ sentiment at a five-year high in May helped lift the sector’s shares. the PhLX housing index .hGX rose 1.8 percent. amazon (aMZn.O) shares also lifted retailers and gave a boost to the nasdaq after Credit suisse upgraded the stock to “outperform” and raised its price target to $270 from $190. the stock jumped 2.6 percent to
Pressure rises on JP morgan over risk, clawbacks TAMPA
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REUTERS
P MORGan Chase & Co’s shareholders backed their embattled Chief executive Jamie Dimon at the bank’s annual shareholders meeting on tuesday, voting against a proposal to split the CeO and chairman roles just days after the company revealed a massive trading loss. While shareholders at the meeting, in tampa, Florida, gave Dimon a pass for the most part on the loss, pressure mounted on the bank to reclaim some of the millions of dollars it paid to the executives who oversaw the wrong-way trades. Dimon, speaking so fast he swallowed some of his words, opened the meeting with another statement that the trading losses — $2 billion and perhaps greater — were “self-inflicted.” “there are many lessons here and many changes in policies and procedures that are being implemented here,” said Dimon, addressing a few hundred people in a converted cafeteria at one of the company’s back-office operations. But as a shareholder question-and-answer session opened, hardly any of the queries or comments made reference to the losses. instead, most people seemed more concerned with the bank’s mortgage servicing practices and with the proposal to split the roles of chairman and CeO. that nonbinding proposal received 40.1 percent of the votes cast in favor. By way of comparison, 44 percent of at&t inc shareholders and 46 percent of honeywell international
inc shareholders voted to separate the roles at their companies in meetings held last month. after two trading days of heavy losses, JPMorgan shares rose 1.9 percent to $36.48 in morning trade. even so, the stock is down more than 10 percent since the trading losses were disclosed, wiping out $16.2 billion of market capitalization. “it affects my opinion of the entire financial industry,” said Dennis hong, principal with altimeter Capital, a hedge fund that manages about $250 million. “it’s really shocking because JPMorgan has been known as the most conservative in terms of managing their business risk. they may be losing their way,” hong said at an event in Boston. AFFIRMS ‘CASE FOR ... REFORM’: in Washington, U.s. treasury secretary timothy Geithner said JPMorgan’s losses strengthened the case for reform. “i think this failure of risk management is just a very powerful case for ... financial reform,” Geithner told an event sponsored by the Peterson Foundation. “the test of reform is not whether you can prevent banks from making mistakes ... the test of reform should be: ‘Do those mistakes put at risk the broader economy, the financial system or the taxpayer?’” Protests outside the annual meeting were relatively limited. half a dozen Occupy tampa protesters did media interviews and occasionally chanted, “hey hey ho ho, big banks have got to go.” nonetheless, retail shareholders expressed incredulity at the size of the
losses. “i am amazed that they think $2 billion is a bump in the road,” said a. Reihl, an 85-year-old shareholder who said she has owned the stock for more than a decade. “this is not the time to be taking risk.” CLAWBACKS: new York City Comptroller John Liu, who oversees the city’s $400 million stake in JPMorgan, on tuesday joined those calling for a “clawback” of compensation from executives responsible for the trading losses, including ina Drew, chief of the hedging unit that racked up the losses. she announced her retirement on Monday. Reuters was unable to reach Drew at her new Jersey home on Monday evening. in its 2011 annual report, JPMorgan said its stock-based compensation awards were subject to clawback provisions. it said in its proxy filing that it could conduct a clawback review “as a result of a material restatement of earnings or by acts or omissions of employees.” JPMorgan can cancel unvested awards or require that the value of distributed shares be repaid when “the employee engages in conduct that causes material financial or reputational harm to the firm or its business activities,” according to the proxy. “We don’t know the facts and culpability, but it appears she (Drew) did have a responsibility here along with a number of others,” sheila Bair, former chairman of the Federal Deposit insurance Corp, said in an interview with Reuters insider. “Clearly, the whole purpose of clawbacks is if you make a bad bet that results in losses, compensation should be clawed back.”
COmmITTEE CONSIDErATIONS
ECC mulls gas, petroleum solutions ECC decides to allocate gas at wellhead from OgDCL’s dormant fields g Fortnightly price adjustment of petroleum products approved g
ISLAMABAD
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Cement prices tumble, sales decline in the country KARACCHI
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STAFF REPORT
ith commencement of the harvest season and other developments including load-shedding, heavy rains and shortage of labour, construction activities in northern part of the country have sharply declined, resulting in huge fall in both sales and prices of cement. industry sources while describing the situation said that the immediate impact is evident by the fact that daily dispatches have reduced to a mere 60,000 tons from about 80,000 tons. sharp fall in demand and resultant over supply has resulted in price decline of Rs. 20 to Rs. 25 per bag for different brands. the current trend of decline is also fueled by excessive load shedding which hampers construction activities in Punjab particularly, which is the major market for cement consumption and has been witnessing massive load shedding which has dampened industrial and construction activities. ‘the units of the north zone have been facing losses on coal import as they are not given freight subsidies by the government,’ sources said, adding that opening of Wahga border is a good option as it will help the units of the north to gain some benefits through exports. since the government has not yet paid the outstanding claims of Rs 287.686 million it owes to the cement sector in terms of inland freight subsidy it announced to give from March to July in the year 2010, the cement
sector is finding it difficult to sustain in this time of sever inflation. in order to encourage exports, the government had decided to allow inland freight subsidy to the cement sector for the period from March 2010 to June 2010, but no payment has yet been made and to date there are outstanding claims of Rs. 287.686 million. there are some benefits that are natural to the companies situated in the south Zone as they have easy and good accessibility to raw material being close to sea ports in karachi. the cement units of the north zone are mostly in loss as they are denied inland freight subsidies by the government. another issue is the declining trend of exports to afghanistan which is no more a lucrative market. total cement exported to afghanistan amounts to 3.3 million tons in the 9 months of the current fiscal against 3.2 million tons in the same period last fiscal, while exports to india stood at 0.48 million tons this fiscal against 0.3 million tons in the same period last fiscal. Clinker exports in the 9 months of last fiscal were 0.19 million tons. historically, cement exports to afghanistan increased since 2001-02 from 0.1 million tons to 4.7 million tons in the year 2010-11, but exports to india remained stagnant for last 4 to 5 years at around 0.6 million tons. this shows that only afghanistan is the immediately available option for the sector. total capacity utilisation of the cement industry is on decline at 71.25% this year against last year’s 76.20 percent. the highest capacity utilisation the industry had was 93.62% in the year 1992-93.
NNI
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he economic Coordination Committee (eCC) of the Cabinet in its meeting held here on tuesday considered the certain summaries of the Ministry of Petroleum & natural Resources and decided to allocate Gas at wellhead from OGDCL’s dormant fields. it approved in principle subject to consent of the Government of sindh in whose favour eCC had approved the earlier proposal in Jan-2011 to allocate gas. Proposal to refund on General sales tax on Gas infrastructure Development Cess was not approved as the applicable law does not permit the same. Fortnightly Price adjustment of Petroleum Products proposal has been approved. the meeting approved the enhancement of
ENErgY CrISIS, CLImATE CHANgE AND OTHEr ISSuES
Cement disintegrates
$228.72. the Dow Jones industrial average .DJi gained 32.88 points, or 0.26 percent, to 12,728.23. the s&P 500 index .sPX added 3.63 points, or 0.27 percent, to 1,341.98. the nasdaq Composite .iXiC rose 21.83 points, or 0.75 percent, to 2,924.41. attempts to form a government in Greece collapsed, sending european equities lower on the prospect that those opposed to the terms of an eU/iMF bailout and a German-led push for austerity could sweep to victory in new elections. “the Greeks and Germans seem to be playing an enormous game of chicken. it is unsettling to the market that those who would rather renegotiate the existing agreement seem to be gaining strength after the election,” said Wells Fargo’s Manley. On Monday, the s&P 500 index closed at its lowest level since February. Concerns about Greece have been a primary reason for the s&P 500’s weakness. Groupon inc (GRPn.O) reported its first quarterly profit after the closing bell on Monday. its stock climbed on tuesday, rising 12 percent to $13.14. JPMorgan Chase & Co (JPM.n) rose 3.2 percent to $36.92, mostly unchanged this week after falling more than 11 percent last week after disclosing a trading loss of at least $2 billion. Pressure mounted on the bank to reclaim some of the millions of dollars it paid to the executives who oversaw the wrong-way trades.
exploration expenditures limit of Us$ 20 Million to Us$ 40 Million for Mari Gas Company Limited subject to appropriate amendment in Gas Price agreement of Mari Gas Company Ltd. approval for acquisition of MnD exploration & Production Limited assets in Pakistan and Yemen through Purchase of shares was given. eCC approved, with the direction to PPL to evaluate the assets and consider bidding on purely commercial considerations to the benefit of the company. the meeting approved the revised proposal on overall Financial Limit to Pursue international exploration Opportunities. it approved to allow PPL to bid for exploration and Production Blocks in iraq up to $ 100 million. Regarding import of Liquefied natural Gas (LnG) the eCC agreed in principle to allow import of LnG. a committee has been formed to workout the modalities in this connection.
uNDP, CLImATE CHANgE mINISTrY COLLABOrATE
Exploring greener pastures g
Seminar on ‘National Consultation on green Economy’ on 18th ISLAMABAD NNI
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Minent international experts and high level Pakistani officials and business representatives are expected to take part in ‘national Consultation on Green economy’ jointly organized by the Federal Ministry of Climate Change, the United nations Development Programme and other Un organizations, the sustainable Development Policy institute (sDPi ) and Lead Pakistan on 1819 May at islamabad. in the Consultation the delegates will discuss the serious economic, environmental and social crises facing the world and Pakistan ahead of a major global meeting on sustainable development in the Brazilian city of Rio de Janeiro next month. the main objective of the conference is to review the preparations for the United nations Conference on sustainable Development hosted
by Brazil in Rio on 20-22 June, likely to be attended by more than 130 heads of state and government and thousands of delegates representing the Un, private business, non-governmental organizations and the media, said a press release issued by sDPi here on tuesday. the national Consultation will be inaugurated by Federal Climate Change Minister, Rana Farooq saeed. During the two-day event, renowned experts and officials like Dr tariq Banuri, former head of sustainable Development Division in the Un hQ in new York, Dr adil najam, Vice Chancellor of the Lahore University of Management sciences (LUMs), sheng Fulai and stefanos Fotiou, senior officials of the Un environment Programme, Dr hussein abaza, former UneP’s official on environment and economics for twenty years, Malik amin aslam, former Minister of state for environment, Farrukh iqbal khan, Counselor at Pakistan’s Un Mission, shakeel
Durrani, Chairman WaPDa, arif alaud Din, head of Renewable energy Development Board (aeDB), Managing Director energy Conservation Centre (eneRCOn) of the Ministry of Water and Power, Dr khalid Mohtadullah and arshad abbasi will make presentations. high ranking Un officials and representatives of the private sector will also contribute to the discussions. the consultation will review various aspects of Green economy and identify the key elements of a possible Green economy framework for Pakistan. it will also make recommendations on the outcome of the June 2012 Conference for consideration by the Pakistan delegation.Prime Minister syed Yousuf Raza Gilani is expected to lead Pakistani delegation at the Rio Conference which would include the Federal Minster for Climate Change, Rana Farooq saeed and Foreign Minister hina Rabbani khar and senior officials of several federal ministries.the objective of the June 2012 Conference is to secure renewed political commitment for sustainable development, assess the progress to date and the remaining gaps in implementation of the outcomes of the major summits on sustainable development and address new and emerging challenges.
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Wednesday, 16 May, 2012
03
news FOOD DEPT DIArIES
Major Gainers
A BEAr-AND-BuLL STOrY
Everything’s evaluated LAHORE: a spokesperson of the Food Department has said that further to invitation the prequalification applications for the Punjab Multi Grain storage PPP Project issued on March 5, a total of 12 parties submitted their prequalification applications by april 19, 2012 deadline. he said that the Project evaluation Committee headed by secretary Food Punjab, has evaluated all the applications received and prequalified seven parties namely Matco Rice (Pvt) Ltd., khawaja Bashir Group Consortium, Pak-turk Consortium, sadiq Feeds (Pvt) Ltd., Fauji akbar Portia & China harbour engineering Company Consortium, Chawalwallas Consortium and Multi-Grain Consortium. these parties will now be invited to participate in the bidding phase of the Punjab Multi-Grain storage PPP Project, details of which will be communicated to the prequalify bidders by the Food department over the coming days, he added. he further said that parties which submitted prequalification applications, but were found not to meet the prequalification requirements, and hence were not prequalified include anC Consortium, Guarantee engineers, kinetics engineering, agrow Consortium and Mn Construction Company. STAFF REPORT
STONE AgE CONTINuES
PASDEC not losing their marbles ISLAMABAD: Pakistan stone Development Company (PasDeC) will establish another marble quarry up-gradation project in Fata to develop the marble and granite sector of Pakistan. in this connection an agreement was signed between PasDeC and Badal Mining Company at PasDeC head Office islamabad on tuesday. CeO, PasDeC, Mr. ihsanullah khan and senator Mr. hadyatullah khan of Badal Mining Company have signed the agreement. the quarry up-gradation project will establish at nawagai in Bajaur agency of Fata. at the time of agreement Mr. shahid-ur-Rehman, director Board of Director PasDeC and Mr. Farooq azam, Manager Project PasDeC, were also present. Recently a MoU had been signed between PasDeC and Badal Mining Company in this regard. CeO, PasDeC, Mr. ihsanullah khan expressed hope that the project will be a mile stone for development of Fata marble sector. it will also generate employment oppportunities for locals. NNI
Bulls rescue index from bear intimacy g
KSE overcomes bear hug to post 88-point gain KARACHI
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STAFF REPORT
n tuesday, the bulls kept dominating karachi stocks market with the benchmark, kse 100-share index skyrocket 84.90 points. ahsan Mehanti, Director at arif habib investments Limited, said that the Pakistan stocks closed higher amid trading in narrow range as progress towards reopening of natO supplies triggers institutional support and investors speculate on favorable federal budget announcements for corporate sector. the day saw the index closing up by 0.60 percent at 14,313.67 points against 14,228.77 points of first working day of the week. the trading volumes at the ready-counter were recorded higher at 152.800 million shares against 101.423 million shares of the previous day. the trading value was up to Rs 6.303 billion compared to Rs 3.796 billion of the last day session. the intraday high and low, respectively, stood at 14,373.12 and 14,228.77 points. he added that the investor interest in blue-chip stocks in oversold fertiliser, cement, telecom sectors witnessed despite uncertain global stocks and commodities on euro zone debt crises. the market capitalisation grew modestly and increased to Rs 3.655 tril-
lion from Rs 3.635 trillion a day earlier. Of the total 371 traded scrips, 170 gained, 134 lost and 67 finished as unchanged. the free-float kse-30 index also gained 90.79 points to close at 12,501.20 points against the previous 12,410.41 points. the kse all-share index closed with a gained of 56.20 points to 10,041.67 points as against 9,985.47 points. Mehanti stated that strong earnings outlook for oil sector, expected double digit rise in PsDP allocations in federal budget and hopes for early resolution of circular debt issues played a catalyst role in bullish sentiments at kse. P.t.C.L.a was the day’s volume leader counting its traded shares at 23.319 million with the opening and closing rates standing at Rs 16.36 and Rs 16.98, followed by engro Food Limited, D.G.k. Cement, Jahangir siddiqui Company and Bank islami Pakistan with turnover of 21.386 million, 14.663 million, 9.871 million and 6.278 million shares respectively. On the future market, the turnover recovered by over one million shares to 13.996 million against 12.647 million shares of Monday. the nestle Pakistan Limited and Rafhan Maize XD, up Rs 133.32 and Rs 100.00, led highest price gainers while, Unilever Food sPOt and Wyeth Pakistan Limited, down Rs 33.40 and Rs 21.81 respectively, led the losers.
CORPORATE CORNER Qatar Airways, Flexjet announce alliance
KARACHI: new Premium service Offered in north america By airline’s Corporate Jet Division Qatar executive Convenient Premium Connections to Over 5,000 airports across north america Via Qatar airways’ Gateways Of houston, new York, Washington and Montreal Qatar executive tailors seamless Premium travel Via Flexjet Connect Programme, Operated By U.s. air Carrier Jet solutions 14 May 2012. Geneva, sWitZeRLanD – Qatar airways today announced a strategic alliance with fractional jet programme provider Flexjet to offer customers access to over 5,000 destinations beyond the Doha-based airline’s four north american gateways. Flexjet is aircraft manufacturer Bombardier’s fractional ownership business, providing access to more than 80 modern executive aircraft. aircraft available as part of the Flexjet Connect programme, are operated by U.s. air carrier Jet solutions. the new agreement, effective today, May 14, enables customers travelling on Qatar airways’ scheduled flights to and from new York, Washington, houston and Montreal, to book a private premium jet service in a single transaction to cover over 5,000 airports across the region. the exclusive partnership, managed by the airline’s private jet division Qatar executive as part of Qatar airways’ premium product portfolio, will ensure passengers have seamless and hassle-free onward connections in america, Canada, as well as parts of Mexico and the tropical islands of the Bahamas and turks & Caicos. speaking at a press conference at eBaCe, europe’s premier business aviation show, in Geneva today, Qatar airways Chief executive Officer akbar al Baker said that the new service was yet another enhanced product offering by Qatar’s national carrier. “We are extremely pleased to be launching this new programme and are confident that it is an attractive product offering for individuals and large multi-national companies alike,” said al Baker. “today’s customers want flexibility, extensive reach, confidentiality and convenience
all from a single source. “this new alliance gives customers from Qatar and the rest of the airline’s international network the ability to book their travel on Qatar airways’ commercial service and on-demand private jets to their onward destination within north america with a single phone call. Vice versa we look forward to providing the travelling public from north america a premium door-to-door service when heading to the Middle east and beyond.” Flexjet President Fred Reid said: “With a growing focus on the international business market, we have seen an increase in demand for travel to the Middle east and the surrounding regions. today’s alliance with Qatar airways – an award-winning airline that shares Flexjet’s passion for high levels of customer service – is an ideal way for us to provide a global aviation solution to our owners. it’s a win-win situation for all.” While Qatar airways’ customers can obtain guaranteed access to a wide range of top-of-the-range Bombardier business jet aircraft, operated by U.s. air carrier Jet solutions, and access to over 5,000 airports in north america with as little as 24-hours advance notice, Flexjet fractional owners gain premium travel benefits beyond their north american service area, including access to Qatar executive’s ultra-modern fleet of Bombardier private jets. PRESS RELEASE
P&g Pakistan announces gift to moms of Olympians on mother’s Day KARACHI: Procter & Gamble, a Worldwide Olympic Partner and the Company behind brands like Pampers®, ariel®, safeguard ®, head and shoulders ® and Pantene®, today launched the next phase of its “thank You Maa” campaign. P&G Pakistan has announced a special gift to moms of all Olympians who will represent Pakistan at the London 2012 Olympic Games in appreciation of their efforts in raising Olympians and making Pakistanis proud. “Our goal through this campaign is to thank every mother in Pakistan and around the world,” said Faisal sabzwari, Country Manager P&G Pakistan. “through this campaign we want to recognize every mother for the unconditional love, support and sacrifice she offers. We hope everyone will join us this Mother’s Day in saying a huge ‘thank you Maa’ to all mothers across the country.” “Mothers play a very important role in helping their children achieve their dreams and ambitions” said syeda tehseen akhtar, mother of sohail abbas, Pakistan’s hockey star and world record holder of the highest number of penalty goals. “i have watched sohail work very hard for this moment since he was a child. to be able to support him as he aspires for the gold in the
Olympic Games means so much to my family and me. “i am thrilled to be a part of the P&G Proud sponsor of Moms campaign which is paying tribute to all the Pakistani moms out there who are doing the very same thing for their children day in and day out.” P&G’s gift to moms exemplifies how the Company is bringing its “thank You, Maa” campaign to life, honoring moms for all they do to help their kids achieve their dreams. this announcement follows the recent launch of the “Best Job” film which serves as the inspiration behind the entire campaign. there have been more than 5 million views of the film globally, helping to raise awareness of the Company’s goal to thank every mom in the world through its Olympic Games program. “We believe that behind every athlete is an even more amazing mom – who has been supporting her child every step of the way,” said Marc Prichard, Global Marketing and Brand Building Officer. “Because P&G is in the business of helping moms and families, we are proud to support moms of Olympians during the Olympic Games.” PRESS RELEASE
Omnicom media group moves to new office KARACHI: Omnicom Media Group (OMG), which started operating in Pakistan in 2010, has now moved to Razi towers (5th Floor), Main Clifton Commercial area above Gul ahmed ideas showroom. the new, modern office houses OMD and PhD and has the right ambiance for a dynamic, expansion oriented Media Group like OMD. OMG has been named as the most creative media agency in the world for the past five years by the Gunn Report, and recognized as the most awarded agency by prestigious advertising publications like adage, Campaign and ad Week in 2008, 2009 and 2011. PRESS RELEASE
KARACHI: PSO Chairman Sohail Wajahat Siddiqui receiving a memento during an award ceremony organised at the Institution of Engineer’s Pakistan (IEP). Dr Farooq Sattar was chief guest on the occasion. PRESS RELEASE
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3758.00 2895.00 930.00 370.67 190.00
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133.32 8,030 100.00 146 25.00 301 10.92 345 8.29 3,470
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Facebook hikes IPO range to raise $12.1 billion Facebook Inc has increased the price range in Silicon Valley’s biggest-ever initial public offering to raise more than $12 billion, giving the No.1 social network a valuation potentially exceeding $100 billion g
NEW YORK REUTERS
t
he company founded in a harvard dorm room by Mark Zuckerberg raised the price target range to between $34 and $38 per share in response to strong demand, from $28 to $35, the company said in a filing with the U.s. securities and exchange Commission on tuesday. that would value Facebook at roughly $93 billion to $104 billion, rivaling the market capitalization of internet powerhouses like amazon.com inc and exceeding that of hewlettPackard Co and Dell inc combined. at the mid-point of $36, Facebook would raise $12.1 billion, eclipsing Google inc’s debut in 2004. Wall street had expected the company to increase the price range, with investors keen to get a slice of a strong consumer brand. the iPO roadshow began last week and has drawn crowds of investors from coast to coast. Facebook plans to close the books on its iPO later on tuesday, two days ahead of schedule, and in a signal that the landmark initial share sale is drumming up strong demand, a source familiar with the deal told Reuters on Monday. the social network is
scheduled to price its shares on thursday and begin trading on Friday. the iPO is already “well oversubscribed,” which is why the company is closing its books earlier than anticipated, the source said. What neXt? Facebook plans to sell 337.4 million shares, or 12.3 percent of the company. the capitalraising target far outstrips other big internet iPOs. Google raised just shy of $2 billion in 2004, while last year Groupon inc tapped investors for $700 million and Zynga inc raked in $1 billion. the higher price range marks an increase of 21 percent on the lower end. the iPO comes amid concerns from some investors that Facebook hasn’t yet figured out a way to make money from an increasing number of users who access the social network on mobile devices such as smartphones. Company executives met with prospective investors in Chicago on Monday and are slated to travel to kansas City and Denver, before returning to Menlo Park, California, where Facebook is headquartered. a host of Wall street banks are underwriting Facebook’s offering, with Morgan stanley, JPMorgan and Goldman sachs serving as leads. Facebook will trade on under the symbol FB.