Saturday, 25 August, 2012

KSE down 41ptsKARACHI

STAFF REPORT

Pakistan Stocks closed lower amid highvolumes on institutional profit takingafter fall in global commodities and capi-tal markets on global growth fears, Thiswas opined by Ahsan Mehanti, Directorat Arif Habib Investments Limited. TheKarachi Stock Exchange (KSE) 100-share index declined 41.37 points or 0.27percent to close at 15,039.18 points ascompared to 15,080.55 points of the pre-vious session. The KSE 30-share indexshed 42.83points to close at 12,860.05points as compared with 12,902.88points. The market turnover remainspositive at 315.106 million shares afteropening at 222.195 million shares. Theoverall market capitalization declined0.02 percent and traded Rs 3.838 trillionas against Rs 3.844 trillion. Losers out-numbered gainers 172 to 125, while 19stocks were unchanged. Mehanti added“Stocks showed technical correction de-spite strong valuations in fertilizer, tele-com and third tier cement sector scrips.”The KMI 30-share was plunged by170.02 points to close at 26,458.11 pointsfrom its opening at 26,628.13 points.The KSE all-share index closed with aloss of 18.80 points to 10,596.99 pointsas against 10,615.79 points. He said thatfall in rupee dollar parity, rise in currentaccount deficit and limited foreign inter-est played a catalyst role in bearish activ-ity in the earning announcement sessionat KSE. Lafarge Pakistan was the volumeleader in the share market with 38.910million shares as it closed at Rs 5.70after opening at Rs 5.70. Flying Cementtraded 26.450 million shares as it open-ing at 3.89 and close at 4.87. Fauji Ce-ment traded 24.747 million shares as itclosed at Rs 6.80 after opening Rs 6.85.Jahangir Siddiqi Company traded20.479 million shares as it closed at Rs15.90 from its opening at Rs 15.20. PacePakistan Limited traded 18.018 millionshares and closed at Rs 3.05 as againstits opening at Rs 2.88. Karachi Electric-ity Supply Corporation traded 15.088million shares as it closed at Rs 6.47 ascompared to its opening at Rs 6.67. Onthe future market, the turnover de-creased to 8.664 million against14.082 million shares of Thursday.The UniLever Food and Bata PakistanLimited, up Rs 148.00 and Rs 41.45,led highest price gainers while,Unilever Pak SPOT and Rafhan MaizeXD down Rs 300.05 and Rs 195.00 re-spectively, led the losers.

SBP injects Rs 261.650b

KARACHI

APP

State Bank of Pakistan (SBP) in its re-verse repo open market operation intreasury bills and Pakistan Invest-ment Bonds has injected Rs 261.650billion in the banking system. Accord-ing to SBP here Friday, the offeredamount was Rs 261.650 billion whilethe rate of return for 7-day declinedto 9.91 percent per annum.

KARACHI

AFTAB CHANNA

Federal Board of Revenue (FBR) is mov-ing ahead to resolve the ongoing disputebetween Sindh and Punjab over collec-tion of general sales tax (GST) on serv-ices under the Section 4 of the PunjabSales Tax on Services Act 2012, it islearnt. In this regard, the FBR has alsofinalized the Terms of References(TORs) to resolve the matter amicably sothat both the provinces i.e. Sindh andPunjab could collect the sales tax onservices in a smooth manner, sources

privy to the development told PakistanToday. Besides, the Punjab governmenthas also assured it would look into thesection-IV of the Act i.e. “Application ofprinciples of origin and reverse charge incertain situations".

The Sindh Revenue Board (SRB) of-ficials have approached the FBR with arequest to intervene and resolve thematter as earlier as possible.

Section-4 "Application of principlesof origin and reverse charge in certainsituations" of Punjab Sales tax on serv-ices act 2012, is illegal and unconstitu-tional. With implementation of this act,

the service providers, rendering servicesin Sindh would feel uncertainty, thesources added. If you (PRA) would lookin to the matter and would see our(Sindh’s) reservations the issue would beresolved soon other vice hi-ups of Sindhgovernment would knock the doors ofFederal government resulting this wouldbecome a national controversial issue,they added.

On that, the official of PRA has as-sured the official of SRB that PRA itselfwould look in to the matter and wouldsee the reservations of Sindh govern-ment and the matter would be resolved

according to constitution, they said.It may be noted here that Punjab As-

sembly had approved Punjab sales taxon services act 2012, in which it wasstated in Section 4-Application of prin-ciples of origin and reverse charge incertain situations: that (1) Where a per-son is providing taxable services in aprovince other than the Punjab but therecipient of such services is resident ofthe Punjab or is otherwise availing suchservices in the Punjab and has chargedtax accordingly, the person providingsuch services shall pay the amount of taxso charged to the government.

The same section further stated that(2) where the recipient of a taxable serv-ice is a person registered under the Act,he shall deduct the whole amount of taxin respect of the service received and paythe same with the government.

(3) Where a person is providing tax-able services in more than one provinceor territory in Pakistan including thePunjab, such person shall be liable topay tax to the government to the extentthe tax is charged from a person residentin the Punjab or from a person who isotherwise availing such services in thePunjab.

super FbR!

ISLAMABAD

ONLINE

DESPITE depressive eco-nomic situation of the coun-try, the aid-dependentPakistan on Friday re-paid

the fourth installment of $397.2 millionto the International Monetary Fund(IMF),a State Bank official said.

The official said with the paying offforth installment, Pakistan paid backthe total amount of $1.29 billion of loanto the International Monetary Fund sofar from foreign currency reserves heldby the State Bank of Pakistan (SBP).

The official was of the view that therecently received amount of $1.18 bil-lion in Coalition Support Fund (CSF)from the US had given some space tothe country’s economic trouble shooterto repay installments to the IMF onmonthly bases.

The official said from recently endedfinancial year 2011-12 to end fiscal year

2014-15, Pakistan was expected to face a3-5 percent increase in value of IMFloans repayment because of Pakistanirupee constant depression in the recentdays and fear in the future as well.

The official said the country’s for-eign exchange reserves will continue toface pressure due to re-payment of IMFloans in the next more than three yearsas Pakistan is likely to go to the Inter-national Monetary Fund in fresh loanin current fiscal year 2012-13 to seekloan for the retirement of IMF’s Stand-by Arrangement (SBA) facility.

Analysts, however, remained cau-tious, especially for current fiscal year,saying the government may have to ne-gotiate another loan programme withthe Fund to ensure smooth repaymentof the remaining installments to theIMF. The government had repaid $1.2billion to IMF in last financial year2011-12, out of the total loan of around$7.6 billion. Pakistan has to payaround $2.9 billion during on going fi-

nancial year 2012-13, $3.43 bil-lion in 2013-14 and $1.35billion in 2014-15 to re-tire IMF outstand-ing loans. The$11.3 billionSBA program hadexpired on Sep-tember 30, 2011 andthe last two trenchesof $3.7 billion could notpay to Pakistan by IMFfollowing Islamabad’s fail-ure to pursue key reforms aswell as the emergence of therevenue figures fiasco. Pak-istan had enter into a $11.3 bil-lion programme in 2008 with IMFand got disbursements of about $7.6billion, but failed to get the remaining$3.7 billion due to slippages inperformance crite-ria, lead-ing tosuspen-

sion of the pro-gramme in May 2010

and was ended unsuc-cessfully on Sep-

t e m b e r30,2011.

4TH INSTALLMENT PAID

Branching out onlineATMs share in e-banking ups to61pc as most banks offer RTOB

KARACHI

STAFF REPORT

About 93 percent of the country’s bank branchesare now offering real-time online banking services,observed the central bank in a quarterly review re-leased Friday.The State Bank, in its Payment Systems QuarterlyReview for the 4th Quarter of FY12, said the statusof 192 more bank branches was upgraded to Real-Time Online Branches (RTOB) during the re-viewed quarter that ended on June 30 2012.Currently, the Review said, 9,291 bank’s branchesor 92.8% are offering RTOB services out of a totalof 10,017 bank branches across country.The payment systems infrastructure in the countryshowed continuous upward growth trend as a totalof 197 Automated Teller Machines (ATMs) wereadded during the 4th quarter raising the tally ofATMs in the country to 5,745, it added.

KAPCO may see its FY12

profits down by 6pcKARACHI

STAFF REPORT

The market observers expect the Kot Addu Power Com-pany Limited (KAPCO) to post profit after tax (PAT) ofRs 6.1bn, translating into EPS of Rs6.95 in FY12, show-casing a decline of 6% YoY. Similarly, in 4QFY12 thecompany is expected to post a profit of Rs1.76bn (EPSRs2.0) up by nominal 6%QoQ as compared to the pre-vious quarter, said the analysts at InvestCap Research.They aid despite 10%QoQ increase in power genera-tion, 30%QoQ leap in the financial charges kept theprofitability of the company under check during4QFY12. “We expect company to announce final cashdividend of Rs2.75/share as well, taking the total pay-out for the year to Rs6.50/share,” viewed Abdul Azeem,an analyst at InvestCap. The company's financialcharges are expected to bump up by 23%YoY toRs10.7bn during FY12, as the company's receivablesfrom WAPDA are forcing the company to rely heavilyon borrowing from the financial institutions.

Rupee sinks to recordlow against dollar

KARACHI

AFP

The Pakistani rupee sank to an all-time low againstthe dollar Friday on high oil prices and forex re-serve fears as the country repaid nearly $400 mil-lion to the International Monetary Fund. Therupee fell to 94.75 to the greenback in trading inKarachi on Friday, down from 94.70 on Thursday,and has now lost 33 percent of its value against theUS currency since March 2008. "The increase inthe international oil price... has affected Pakistan'sforeign exchange reserves and they could sufferfurther with the repayment of IMF's installmentdue today," said analyst Mohammad Sohail ofTopline Securities. "These factors have con-tributed to the panic in the currency market." InAsian oil markets on Friday, Brent North Seacrude for October delivery stood at $114.54 a bar-rel, while New York's main contract, light sweetcrude for delivery in October was at $95.68.

MUMBAI

INP

In a move that will strengthen commer-cial ties between India and Pakistan, Re-serve Bank of India has permittedforeign direct investment from Pakistaninto India which had been banned hith-erto.

In a notification, the central banksaid "a person who is a citizen of Pak-istan or an entity incorporated in Pak-istan may, with the prior approval of theForeign Investment Promotion Board ofthe Government of India, purchaseshares and convertible debentures of an

Indian company under Foreign DirectInvestment Scheme". The central bankadded that this notification overridesthe earlier regulation under the foreignexchange management act which barscitizens of Pakistan or any entity incor-porated outside India in Pakistan frompurchasing shares or bonds of an Indiancompany under the foreign direct in-

vestment scheme. The ban will howevercontinue in sensitive industries such asthose engage in sectors / activities per-taining to defence, space and atomic en-ergy and sectors prohibited for foreigninvestment under the regulations.

The decision to allow investmentsfrom Pakistan was announced by com-merce minister Anand Sharma in June

who said that a in-principle decision hadbeen taken to open up FDI doors toallow businesses from the neighbouringcountry to set up shop here. The an-nouncement took place following ameeting between Sharma and his Pak-istani counterpart Makhdoom AminFahim in Delhi. RBI's notification fol-lows the clearance by the Department ofIndustrial Policy and Promotion (DIPP)which cleared the proposal a couple ofmonths back. Following this the financeministry has approved the proposal andmade changes to the respective regula-tions under the foreign exchange man-agement act.

RubbeRstamped!India allows FDI from Pakistan

FBR peeps in to resolve Sindh-Punjab row over sales tax collection!

Pakistan returns $397.2m to IMF

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BANKING MOBILITY

19

Saturday, 25 August, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUnilever Food 3000.00 3148.00 3147.99 3148.00 148.00 40Bata (Pak) Limited 829.08 870.53 870.53 870.53 41.45 100Colgate Palmolive 1440.00 1475.00 1475.00 1475.00 35.00 250Indus Dyeing 411.99 431.50 431.50 431.50 19.51 100Mithchells Fruit 346.00 360.00 360.00 360.00 14.00 100

Major LosersUniLever PakSPOT 8850.05 8850.00 8550.00 8550.00 -300.05 260Rafhan MaizeXD 3980.00 3785.00 3785.00 3785.00 -195.00 40Nestle Pakistan Ltd. 4200.00 4100.00 4050.00 4050.00 -150.00 240Clariant Pak 229.75 227.00 220.00 220.25 -9.50 1,800Javedan Corporation 92.00 88.50 88.10 88.10 -3.90 1,500

Volume Leaders

Lafarge Pakistan 5.70 5.90 5.50 5.70 0.00 38,910,500Flying Cement 3.89 4.89 3.89 4.87 0.98 26,450,500Fauji Cement 6.85 7.12 6.74 6.80 -0.05 24,747,500Jah.Sidd. Co. 15.20 16.20 15.13 15.90 0.70 20,479,500Pace (Pak) Ltd. 2.88 3.18 2.85 3.05 0.17 18,016,000

Interbank RatesUS Dollar 94.8290UK Pound 150.2565Japanese Yen 1.2079Euro 118.7259

Dollar EastBUY SELL

US Dollar 94.30 95.10Euro 117.42 118.39Great Britain Pound 148.61 149.80Japanese Yen 1.1916 1.2011Canadian Dollar 94.25 95.51Hong Kong Dollar 12.00 12.17UAE Dirham 25.63 25.81Saudi Riyal 25.04 25.26Australian Dollar 97.12 99.38

Business

Soneri Bank announces

half-yearly results for 2012

KARACHI: Soneri Bank Limited posted a pre-taxprofit of Rs. 1,137.55 million for the first half yearended 30 June, 2012. The Board, in its 123rd meet-ing, approved the Bank’s half yearly financial state-ments. On this occasion, the Chairman, Mr. AlauddinFeerasta, appreciated Bank’s continued positive per-formance during second quarter and expressed sat-isfaction on the overall scale of growth.

Etihad Airways announced

direct Rome-Abu Dhabi flights

KARACHI: Etihad Airways, the national airlineof the United Arab Emirates, and Alitalia, Italy’sflag carrier, recently announced that direct Rome-Abu Dhabi flights will commence from December01, 2012.

NADRA to launch IBMS at Allama

Iqbal International Airport

ISLAMABAD: National Database & RegistrationAuthority (NADRA) has been assigned to developand commission Integrated Border ManagementSystem (IBMS) on behalf of FIA as a key technologypartner to replace PISCES at 26 entry/exit pointsacross the county including all international air-ports, land routes, railway stations and seaports forimmigration processing, NADRA spokespersonstated this in a statement issued here today.

PAC sub-committee

proceedings

KARACHI: Indus Motor Company (IMC)spokesperson has strongly refuted the baseless re-ports in media about bashing of the local auto in-dustry representatives in the meeting of Public

Accounts Committee (PAC) on 23 rd August, 2012by PAC members and other stakeholders for mal-practices in the auto industry. The spokesman saidthat the meeting was in fact held in a very cordialenvironment and all the stakeholders in the indus-try vowed to work jointly to formulate a long termpolicy for achieving volumetric growth for the eco-nomic benefit of the country.

Profit rates revised

ISLAMABAD: In response to considerable slash indiscount rate by State Bank of Pakistan, the FederalGovernment has downward revised the profit rateson National Savings Schemes for the investmentmade on or after 27-08-2012. The instant revision ismade in the backdrop of current market scenario andin accordance with the government’s policy to pro-vide market based competitive rate of return to theinvestors of National Savings. As per Notification is-sued by Federal Government the new rates for Spe-cial Savings Certificates(R)/Account, Regular Income

Certificate, Defence Savings Certificates and SavingsAccounts has been fixed at 10.80%, 11.04%, 11.50%and 7.40% respectively. The profit rate of return forspecialized Savings Schemes i.e. Bahbood SavingsCertificates and Pensioners’ Benefit Account has alsobeen revised and fixed at 13.50% in order to providesafety net to specialized segment of society.

CORPORATE CORNER

NEW YORK

AGENCIES

THE S&P 500 could test support at1,400 again, after hitting a sessionlow of 1,400.5 on Thursday on its wayto posting its largest decline in a

month. The index hasn't closed below 1,400since the first Monday of August and is on trackfor only its first weekly decline in seven.

Futures held on to losses after data showednew orders for long-lasting U.S. manufacturedgoods surged in July, even as declines in agauge of planned business spending pointed toa slowing growth trend in manufacturing.

The mixed data added to the market uncer-tainty on whether the Federal Reserve will soonact in support of the economy.

Uncertainty over how euro zone policy-makers will attempt to make Spain's borrowingcosts affordable and renewed worries overGreece, kept traders away from risky assets.Germany's Merkel said talks with Greek PrimeMinister Antonis Samaras were a good startbut there was still much to do.

"If you are a bull and want central banks toabsorb debt issues you want to hear (Merkel)sound acquiescing," said Kim Forrest, seniorequity research analyst at Fort Pitt CapitalGroup in Pittsburgh. "That's not where she was

starting the conversation from."Forrest said Europe is flaring up again and

the time is now to see if the euro zone willstand behind European Central Bank PresidentMario Draghi's commitment to do whatever ittakes to save the euro.

S&P 500 futures fell 4.1 points and werebelow fair value, a formula that evaluates pric-ing by taking into account interest rates, divi-dends and time to expiration of the contract.Dow Jones industrial average futures were off14 points and Nasdaq 100 futures dropped 5points.

Autodesk (ADSK.O) shares were down-

graded by various brokerages a day after thedesign software maker's quarterly results fellshort of expectations for the first time in nearlytwo years. Shares tumbled 22.3 percent in pre-market trading.

Salesforce.com (CRM.N) shares fell 4.6percent premarket a day after third-quarterearnings outlook missed analysts' estimates.

Supervalu (SVU.N) shares jumped 7.1 per-cent in light premarket trading as its adviserssought potential buyers to bid for the entirebusiness, even as several suitors have inquiredabout individual parts of the U.S. grocery com-pany, according to a Bloomberg report.

Wall Street set to dip atopen, euro zone eyedStocks were set to dip at the open on Friday after Chancellor AngelaMerkel said Germany, as well as France, want Greece to stay in the eurozone but that Athens must meet its commitments

US trade gapwith China cost 2.7million jobs: study

WASHINGTON

AGENCIES

The institute estimated that nearly 77percent, or more than 2.1 million, of thelost jobs were in manufacturing.The think tank receives about 30 percentof its funding from union groups, whichhave pressed both the administrationand Congress for tougher steps to rein inthe growing trade deficit with China,which hit a record $295 billion in 2011.China, known as the world's factory be-cause of its huge manufacturing sector, isthe world's second-largest economy, hav-ing raced past Japan in recent years.Robert Scott, the institute's director oftrade and manufacturing policy research,said Chinese government intervention incurrency markets to keep its yuan at alow value against the U.S. dollar was amajor cause of the trade deficit. China'sundervalued currency effectively subsi-dizes its exports and taxes its imports, hesaid. Scott told Reuters he believed theyuan was still undervalued by at least 33percent against the dollar, even though ithas risen in value in recent years.

ISLAMABAD

APP

Benazir Income Support Programme (BISP) hasdisbursed an amount of Rs 1.13 billion throughMobile Phone Banking, ensuring faster and morereliable cash transfer to its beneficiaries.

The purpose of introducing mobile phonebanking was aimed at eliminating human in-volvement in disbursement of cash to the deserv-ing families, taking along the underprivilegedsegment of the society to the new era by offeringtechnology based systems.

Mobile Phone Banking introduced for thefirst time in the history of the country was ini-tially launched in the districts including Larkana,Battagram, Layyah, Rawalpindi and Islamabad.

An official of BISP told APP that free mobile-phones have been distributed among 120,000beneficiaries so far, however, the projectwill beshortly launched in districts Barkhan, Poonchand Ghanche. BISP is playing pivotal role ineradicating poverty as well as socio-economic up-lift of the beneficiary families through its initia-tives. The programme has gained great successin social sector by making its outreach to almostseven million poor families to provide them withfinancial assistance and making them self-reliant.

The door to door poverty survey to identify

the poor segment of society has been completedin most parts of the country while it is underprocess in FATA, Bajour and Kurram Agencies,he added. The BISP will hopefully reduce 20 percent poverty in the next five to ten years throughvarious schemes.

Under `Waseela-e-Haq' initiative, the BISPis providing an amount of Rs 300,000 to the reg-istered beneficiaries through a transparent man-ner. The amount is given as soft loan to thebeneficiaries to run small businesses. Over 22Waseela-e-Haq draws have taken place so far and10,974 beneficiary families have been declared el-igible to receive this returnable financial assis-tance. Under `Waseela-e-Rozgar', the BISP isplanning to impart vocational and technicaltraining to the female beneficiary or her nomineeunder this initiative and training has been con-ducted for master trainers in 50 traits in collabo-ration with China.

As many as 150,000 beneficiaries will begiven technical training to produce skilled man-power for the country every year which will en-able these families to become self-reliant.

Under Waseela-e-Sehat, the beneficiary fam-ilies are entitled to receive Rs. 100,000 in case ofdeath of their bread earner, under the `Life In-surance' scheme and around 3.1 million familieshave already been insured in this process.

BISP disburses Rs 1.13 bn through Mobile Phone banking

LAHORE: Usman Ishaq, Executive Director Commercial,

ZONG addressing a press conference held at Pakistan

Cricket Board, at the announcement of Pakistan vs Australia

cricket series in UAE. Zong is the co-sponsor of the series.

Apple share of Chinasmartphone mkt almosthalved in Q2: IDC

BEIJING

AGENCIES

China, Apple's second-largest market, is set to overtake theUnited States as the world's biggest smartphone market this year,with demand driven by generous handset subsidies offered by thethree main carriers, increasingly tech-savvy consumers and morefeature-packed and affordable products. For the first time, smart-phone shipments in China overtook feature phones in the secondquarter, with local brands Lenovo Group Ltd and ZTE Corp push-ing Apple to fourth place from second, the IDC data showed.Total April-June smartphone shipments rose to 44 million, ac-counting for 51 percent of China's total mobile shipments of 87million, IDC said. "There are two things in play," said IDC analystTZ Wong, referring to Apple's drop in ranking and market share."One is seasonal, people know the new phone is coming. And thesecond is that the alternatives are becoming much more attractivethan a year ago. The iPhone didn't change much over the year."South Korea's Samsung Electronics Co Ltd retained its lead in theChinese smartphone market with a share of 19 percent, thoughthis was down from 21 percent in the previous quarter, accordingto the IDC data. Lenovo, the world's No.2 vendor of personalcomputers which makes the LePhone, climbed to second placeand increased its China market share to 11 percent from a single-digit percentage in the first quarter when it was ranked 7th, thedata showed. Local rival Huawei Technologies Co Ltd rankedfifth. Data from Gartner, another research firm, showed Apple'smarket share fell to 12 percent in the second quarter from 17 per-cent in the previous three months, though it kept its No.2 rank-ing, according to a report by Nomura Securities.

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