Tuesday, 24 July, 2012

GrowinG mUtUally

KARACHI

STAFF REPORT

During FY12 the local mutual funds industry remained inupward trajectory as the asset Under management(aUm) posted a significant appreciation of 51%Year overYear this year. the growth momentum this year stoodalmost twice compared to the growth of 25% witnessedlast year, aUm said. major growth was witnessed in thesize of income, money market, islamic income andislamic money market funds, which surged by 124%YoY,95%YoY, 43%YoY and 22%YoY respectively. an aerialview reveals that, major growth was witnessed in theaUm of the aBL asset management and naFa Funds,which grew by solid 233%YoY and 102%YoY respectivelyduring FY12. “the main reason of such growth wasinduction of new funds under the umbrella of thecompany as well as appreciation in the size of income andmoney market funds of the respective fund managers,”viewed mazhar a. sabir, an analyst at investcap Research.On Quarter on Quarter basis, he said, the performanceduring the 1QFY12 stood relatively depressing posting thedecline of 1.2% during Jul-sept 2012, however later threequarters of FY12 witnessed robust growth of average 15%QoQ of FY12 in the size of mutual Fund industry.However on monthly basis, the industry posted thedecline of 3%mom to reach at Rs379bn, as compared withthe figure of Rs390bn, a month ago.Out of Rs11bnredemption witnessed during the month, 70% contributedby three funds, namely aBL-cash Fund (reduction:Rs5.3bn), UBL Liquidity Plus Fund (reduction: Rs1.4bn)and meezan cash Fund (reduction: Rs1.1bn).

Digging up a recordISLAMABAD

APP

the mining andquarrying sectorrecorded positivegrowth of 4.38percent duringyear 2011-12against thenegative growth of-1.28 percent lastyear. talking toaPP on monday anofficial of ministryof petroleum andnatural resourcestold that the contribution of this sector in GrossDomestic Product (GDP) has expanded remarkably andnow it accounts for 9.45 percent of the industrial valueaddition. He said the output of chromite, bauxite,gypsum, chalk and fluoride increased by 591.54percent, 82.15 percent, 24.43 percent, 82.18 percentand 111.28 percent respectively. this growth was alsomade possible due to increase in natural gasproduction. to a question, he said extraction ofminerals through efficient mining and quarryingprovides convenient and economical access to rawmaterials and a competitive edge to the country.

Damn you

thieves!ICCI calls forcontaining power theft

ISLAMABAD

APP

the islamabad chamber of commerceand industry (icci) urged thegovernment on monday to check powertheft in energy system of the country.icci President Yassar sakhi Buttstressed in a statement that it is timethe Government should have planed astrategy on war-footing basis to checkthe power theft and corruption in thesystem which cause loss of billion ofrupees yearly and as a result affectingdomestic customer as well as industrythus causing loss of billion of rupees tothe national exchequer. He said thatthe operational directors of alldistribution companies should havebeen directed to chalk out efficientplans in order to minimize poweroutages during holy month of Ramazanas prolonged electricity load sheddinghas increased the problems of thepeople. the icci President urged theGovernment to resolve the iPPs issuesto ensure uninterrupted power supplyto the public during Ramazan. He alsocalled for minimizing the electricityshortfall by bringing non-operationalpower plants into the system andutilizing them optimally according totheir capacity.

KARACHI

STAFF REPORT

Despite energy shortfall the consump-tion of oil in the country declined by 3percent during fiscal year 2011-12 to19.1 million as against 19.7 millionrecorded in FY11.

this is the second consecutive yearthat oil consumption has posted a de-cline. “the reduction primarily camefrom 7 percent decline in FO (furnaceoil) sales which account for approx. 45%of total oil consumption in Pakistan,”said topline Research analyst naumanKhan. Despite electricity shortage, cashproblems amid circular debt promptedpower units to consume lower furnaceoil for electricity generation which de-cline by 7% to 8.4mn tonnes. accordingto estimates, power sector consumed 5%lower FO as government increase gassupplies by 4% which is cheaper sourceof generation for power units as powersector has been given priority over oth-ers sectors in terms of gas allocation.moreover, liquidity constraints withOmcs also led to restricted FO supplies.

Gasoil (commonly known as HsD ordiesel) sales declined by 1 percent to6.8mn tons. However, in FY12 diesel con-sumption could have been much higheras local diesel market was also infiltratedby smuggled diesel from iran whoseshare in local market had increased inpast few months. the reason being therising price disparity between the twoproducts as Pakistani diesel is now morecostly that iranian diesel due to continu-ous rise in taxes on local product.

sales of gasoline (petrol) depicted arobust growth of 21% on the back ofgrowing auto market and rising gas cur-tailment to cnG sector prompting con-sumers to switch towards gasoline. itsshare of total oil consumption rose to

14% in FY12 against 12% last year,while it was 8% in FY08.

amongst the individual com-panies, PsO continue to remainthe major victim of circular debt thathas approx. 80% market share in FOsegment.

company’s sales de-clined by 3% in FY12 to12.4mn tons, but wasable to maintain itsmarket share. aPL onthe other handbenefited fromhigher petrolsales with com-pany’s sales increasing by13% in the year.

World stocks, euro slide on

rising Spain tensions

LONDON

APP/AFP

World stocks fell sharply, the euro hit a 12-year lowversus the yen and spanish borrowing costs struckrecord highs monday on speculation spain couldsoon require a full state bailout, traders said.

“there are fears that spain is edging closer tobeing forced to seek a full scale bailout, having se-cured 100 billion euros ($121 billion) to help recap-italise its banks,” said Joshua Raymond, chiefmarket strategist at city index traders.

all eyes were also on bailed-out Greece, with au-ditors from the european Union, international mon-etary Fund and the european central Bank due inathens this week for another inspection of the newgovernment’s economic programme. the report willdetermine whether Greece will receive fresh loans of31.5 billion euros by september due under its debt res-

cue programme. German Finance minister Wolfgangschaeuble warned Greece in a newspaper interviewmonday that it must redouble efforts to comply withbailout conditions imposed by international creditors.

“if there were delays, Greece must make up forthem,” he told the daily Bild. London’s Ftse 100benchmark index of leading shares dropped 1.61 per-cent at 5,560.69 points nearing midday. Frankfurt’sDaX 30 index shed 1.40 percent to 6,537.16 pointsand in Paris the cac 40 slid 1.69 percent to 3,139.74points. madrid’s iBeX 35 index plunged more than5.0 percent and athens dived over 6.0 percent.

“after a pretty week of inspiring corporate re-sults, investors are again looking at the marketsthrough the lenses of the euro crisis,” said anitaPaluch, a trader at Gekko Global markets.

Mutual Funds swell by51pc to Rs379bn inFiscal Year 12

Useth thy grease, Low FO

consumption

downs oil

sales by 3pc

in FY12

Mining, quarrying sectorrecorded positive growthof 4.38 percent

Workers remit history

Wilt thou please?

Adiós!

Remittancescross $13bnmark for thefirst time incountry’shistory

ISLAMABAD

APP

Remittances sent home by over-seas Pakistani workers crossed$13 billion mark for the first timein country’s history during the lastfiscal year (2011-12).

according to a latest report released by thestate Bank of Pakistan, overseas Pakistaniworkers remitted a record amount of$13,186.58 million during the last fiscal yearthat ended on June 30, 2012, showing an im-pressive growth of 17.73 percent when com-pared with $ 11,200.97 million received duringthe preceding fiscal year (2010-11).

except for the months of september($890.42 million) and november ($924.92 mil-lion), Pakistani workers remitted more than $1billion during ten months of the fiscal year.

Remittances received from all countries ofthe world showed substantial growth during thelast fiscal year and almost all of this growth was

through banking channels.the inflow of remittances in July-June, 2012

period from saudi arabia, Uae, Usa, UK, Gcccountries (including Bahrain, Kuwait, Qatar andOman) and eU countries amounted to$3,687.00, $2,848.86 million, $2,334.47 mil-lion, $1,521.10 million, $1,495.00 million and$364.79 million respectively as compared with$2,670.07 million, $2,597.74 million, $2,068.67million, $1,199.67 million, $1,306.18 millionand $354.76 million respectively in the July-June, 2011 period.

Remittances received from norway, switzer-land, australia, canada, Japan and other coun-tries during the last fiscal year (2011-12)amounted to $935.36 million as against$1,003.81 million received in the preceding fiscalyear (2010-11). the monthly average remittancesfor July-June 2012 period comes out to$1,098.88 million as compared with $933.41 mil-lion during the preceding fiscal year, registeringan increase of 17.73 percent.

Overseas Pakistanis also sent home an

amount of $1,117.48 million in June 2012 whencompared with $1,104.56 million received in thesame month of 2010-11.

During last month i.e. June 2012, remittancesfrom saudi arabia, Uae, Usa, UK, Gcc coun-tries (including Bahrain, Kuwait, Qatar andOman) and eU countries amounted to $333.68million, $219.14 million, $206.60 million,$128.12 million, $126.72 million and $29.24 mil-lion respectively as compared with $291.55 mil-lion, $270.04 million, $204.64 million, $121.35million, $106.20 million and $33.83 million inJune 2011. Remittances received from norway,switzerland, australia, canada, Japan and othercountries amounted to $73.98 million duringJune 2012 compared with $76.95 million re-ceived in the same month of 2010-11.

the continued impressive growth in work-ers’ remittances is the result of the efforts madeby Pakistan Remittance initiative (PRi) in col-laboration with other stakeholders to facilitateboth Overseas Pakistanis and their familiesback home.

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02Tuesday, 24 July, 2012

Major Gainers

ComPany oPEn HiGH low CloSE CHanGE tUrnovErRafhan Maize Prod. 3365.34 3533.60 3533.60 3533.60 168.26 20Unilever Food 2840.98 2900.00 2840.98 2900.00 59.02 40Philip Morris Pak. 144.83 148.30 147.99 148.15 3.32 200Shahtaj Sugar Mills 77.67 81.55 79.90 80.84 3.17 2,000Akzo Nobel Pak. 100.37 105.38 100.98 103.45 3.08 172,100

Major LosersNational Foods 214.08 214.08 203.38 204.03 -10.05 8,000ICI Pakistan 166.78 169.00 158.45 158.96 -7.82 154,600Clariant Pak 209.77 209.00 203.20 204.60 -5.17 600Gatron Ind. 93.45 88.79 88.79 88.79 -4.66 500Hinopak MotorXD 83.50 82.50 79.33 79.87 -3.63 5,000

Volume LeadersJah.Sidd. Co. 15.48 15.55 14.90 15.02 -0.46 4,755,000Fauji Fertilizer 117.05 118.70 117.00 118.16 1.11 1,726,400Descon Oxychem 3.96 4.55 3.75 4.34 0.38 1,488,500Nishat Mills Limited 52.55 52.79 51.90 52.22 -0.33 1,232,500D.G.K.Cement 44.98 45.10 44.60 44.78 -0.20 1,012,000

Interbank RatesUs Dollar 94.4521UK Pound 148.4031Japanese Yen 1.2014euro 115.7982

Dollar EastbUy SEll

US Dollar 94.10 94.70Euro 114.23 115.21Great Britain Pound 146.75 148.01Japanese Yen 1.1927 1.2030Canadian Dollar 92.68 94.60Hong Kong Dollar 11.97 12.13UAE Dirham 25.58 25.82Saudi Riyal 25.08 25.27Australian Dollar 97.33 98.48

Business

KARACHI

STAFF REPORT

On the first working day of the weekmonday bearish trend engulfedKarachi stock exchange (Kse) 100-share with the index declining 37.24points or 0.26 percent to close at 14,

527.25 points as compared to 14, 564.49 pointsof the previous session. the Kse 30-share indexshed 19.74 points to close at 12, 604.16 points ascompared to 12, 623.90 points of the previoussession.

the Pakistan stocks closed bearish amid in-stitutional profit taking in stocks across theboard on concerns for unrest in the city and fallin global stocks on eurozone debt crises. thiswas viewed by ahsan mehanti, Director at arifHabib investments Limited.

the market turnover was down to 27.548 mil-lion shares after opening at 96.121 million shares.the overall market capitalisation declined 0.04percent and traded Rs 3.706 trillion as against Rs3.717 trillion. Losers outnumbered gainers 70 to128, while 25 stocks were unchanged.

mehanti added that trade remained thin inthe short session at Kse ahead of major corpo-rate earning announcements due this week. the

Kmi 30-share was down by 46.36 points to closeat 24, 973.35 points from its opening at 25,019.71 points. the Kse all-share index closedwith a loss of 28.37 points to 10, 216.88 pointsas against 10, 245.25 points.

Jahangir siddiqui company was the volumeleader in the share market with 4.755 millionshares as it closed at Rs 15.02 after opening atRs 15.48. Fauji Fertilizer traded 1.726 millionshares as it closed at Rs 118.16 after opening Rs117.05. Descon Oxychem traded 1.488 millionshares as it closed at Rs 4.34 from its opening atRs 3.96. nishat mills Limited traded 1.232 mil-lion shares and closed at Rs 52.22 as against itsopening at Rs 52.55. D.G.K cement traded 1.012million shares as it closed at Rs 44.78 as com-pared to its opening at Rs 44.98. He said thatthe investors remained cautious ahead of sc re-action on contempt law to protect Pm amid con-cerns for macroeconomic instability.

On the future market, the turnover re-mained negative to 5.138 million against 5.771million shares of last working day of the weekFriday. the Rafhan maize Prod and UnileverFood, up Rs 168.26 and Rs 59.02, led highestprice gainers while, national Foods and ici Pak-istan down Rs 10.05 and Rs 7.82 respectively,led the losers

The universe conspired

against the index,

with city violence,

eurozone troubles

and institutional

profit taking all

playing their part in

taking it down 37 points

Pakistan’s first boPEt Polyesterfilm plant commences production

KARACHI: m/s novatex Limited has successfullycommissioned a 4,300 million project to produce Bi-axially Oriented Poly ethylene terephthalate(BOPet) film. this is a pioneer industry for Pak-istan, bringing in technology and machinery whichis so far non-existent in the country. Representativesof Habib Bank Ltd, United Bank, Faysal Bank, andstandard chartered who financed this project paidvisit to the plant this week after the plant com-menced operations on 28th June 2012. .

marriot hotel presentsramadan iftar buffet dinner

KARACHI: as the holy month of Ramadan ap-proaches, Karachi marriott Hotel prepares for thefinest iftar Buffet Dinner in town. During the entiremonth of Ramadan, Karachi marriott hotel is the fa-vorite place for families and corporate get together.the pool marquee sends out the aroma of freshlycooked food and live barbeque. the best ambiance andthe best food with an excellent service is the secret ofKarachi marriott’s success for all these years. the lav-ish menu with countless dishes is an irresistible addic-tion. at Karachi marriott every time you come to haveiftar dinner, it will be an occasion. Just like every year,there are countless lucky draws with exciting presents.When we say that “there is no other place for iftar din-ner like Karachi marriott”, we actually mean it!

Ufone receives the ‘best PracticingCSr Company’ award by UnGCP

ISLAMABAD: Ufone has been given the honor ofreceiving the ‘Best practicing csR company’awardby United nations Global compact Pakistan(UnGcP). Ufone is the only telecom recipient of thisprestigious award.

Sanofi and Pma sign moU toimpart skill-based training

KARACHI: sanofi announced today partnershipwith the Pakistan medical association (Pma) on aunique program through which eligible post-gradu-ate medical trainees of the country will receive com-prehensive training on core skills and competencies.

CORPORATE CORNER

KARAChI: Retail Manager Mr. Zil hasnain Bata Pakistan, inauguratedthe new Bata store on the 20th July 2012 on Tariq Road, Karachi.

PepsiCo Pakistan championing diversity and inclusion in PakistanPakistan Society for Training and Development hosts Ms. UmranBeba, Regional President PepsiCo Asia Pacific.

haji Bashir Ahmad Chairman Sitara Group, Mian Mohammad AdreesCEO Sitara Chemical Industries on the launching exhibition of “Rajah’sby Sitara” at Sitara Mall.

KARAChI: The Consul General of the Switzerland Mr.Didier Boschung, hosted a reception to celebrate 721st National day of Switzerland at a local hotel.photo shows (L to R) Mr.Waqar Ahmad Manager Public Affairs Nestlé Pakistan Ltd, Mr.Zahid Karani, Mr.Frances Campbell Director UK TradeInvestment,Mr.Jam Madad Ali, Mr.Magdi BATATO Managing Director Nestle Pakistan,Mr.Didier Boschung and others guest.

Saba Saleem receiving the key of a new Car from theChief Guest on attaining 1st position in LL.B Part – IIIPunjab University Annual Examination

Oh thehorror!German minister: ‘horror’ of aGreek euro exit has faded

BERLIN

AFP

German economy minister PhilippRoesler on sunday reiterated hisdoubts about whether debt-miredGreece would be able to stay in theeurozone, saying the “horror” of apotential exit had worn off. Roeslertold aRD public television that athens’partners would wait for the progressreport of the troika of Greek creditorsthe european Union, internationalmonetary Fund and the europeancentral Bank. “nevertheless i have tosay i am more than sceptical,” saidRoesler, who is also head of the pro-business Free Democrats (FDP), juniorpartners in merkel’s centre-rightcoalition government. “Unfortunatelyit is likely that Greece will not be ableto fulfil (the troika’s) requirements.

mCb bags growthand performanceaward

KARACHI

STAFF REPORT

mcB Bank, for the 9th time has beennamed “Best Bank in Pakistan” by thehighly respected UK based magazine,euromoney, for the bank’s impressiveperformance and growth in the year.Regarded as the flagship awards forfinancial services globally, euromoneyawards and recognises institutions andindividuals those who demonstrateleadership, innovation, and momentumin the markets in which they excel.22nd yearly euromoney awards attractedover 600 submissions from the world’sleading banks and brokerage houses. indeciding on the award winners,euromoney’s dedicated research teamand awards panel rated all thesubmissions on both quantitative andqualitative factors, such as KPis,financial ratios and innovation over thepast 12 months. commenting on whymcB Bank was selected for the award,euromoney editor, clive Horwood,explained, “the bank’s growth andsuccess story has continued in 2011.

KSE bEarSthe brunt of the creationof the universe

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