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Profit E-paper 8th September, 2012
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Saturday, 8 September, 2012
KARACHI
STAFF REPORT
The price of Brent Crude best known asblack gold has skyrocketed to a meager1% during CY12TD as compared to CY11average price of $111.8.However, phenomenal rise has beenwitnessed in the price of thecommodity during the month ofAugust-12, as both Brent Crude andWTI have soared by 10% and 7%,respectively. “This is mainly due to theUS inventory numbers that fell in theaftermath of hurricane Isaac,” viewed
the analysts at InvestCap Research.The said hurricane, they said, had leftmore dent on the US than first feared,and now the world is expected to feelthe heat in the shape of rise in the pricesof crude oil. The hurricane, whichoriginated from the Gulf of New Mexico,the hub of US refinery and oilproduction, caused inventory slippage of7.4 million barrels against forecast of 3-5 million barrels.Consequently, the Aug-12 endinginventory levels reached the lowestposition in the preceding two years.“Now as the natural phenomenon has
subsided, we expect additional buyingto come in from the US as the countryaims to up the level of its oil stocks,”the analysts said.In addition to upping the oil inventory,the analysts expect better US job datacoupled with ‘unlimited’ bonds purchaseby the European Central Bank (ECB) areexpected to positively influence thedemand of crude oil, thus prices areexpected to remain on the higher side.During the month in review, goldposted a significant growth of2.3%MoM rising to $1692/oz.Europeans are opting for Gold as a safe
haven for their precious investment.At the same time Silver is also followingthe trend as it surged by 5.5%MoM toreach at $29/oz in Aug-12.The reason behind the increase inprecious metal prices is predominantbuying on the back of seasonal jewelrydemand from India and China.The gold is attracting investors’interest as the uncertainty regardingthe recession in Europe is expected tosubside after the ECBs announcementthat the policymakers had agreed toan unlimited bond-purchase programto help stabilize the European region.
It has recently touched $1,709/oz. inthe int’l markets.On the other hand, silver also rose to itshighs of $32.62.89/oz.“We predict gold will rise further as thedemand from Europe (investing in thecommodity) coupled with buying fromChina, India and Russia to keep thedemand for gold high. Therefore, weforesee the gold to touch 1,750/oz in thenear future, while silver is also expectedto follow the same trend as it consideredthe alternate for gold in investment andin consumption for jewelrymanufacturing,” said the analysts.
asian BondmarkEt raisEs$4.7 trillionin a dEcadE
ISLAMABAD
ONLINE
The Asian Development Bank
(ADB) has said that the local
currency (LCY) bond market of
emerging East Asia (EEA) has
risen from approximately $1
trillion in 2001 to $5.7 trillion
as of end 2011.
In its latest Report issued on
Friday, ADB said the total LCY
bonds outstanding in EEA at the
end of September 2011 were
approximately 8.1 per cent of
the global bond market against
2.1 per cent in 1996.
It said the domestic corporate
bond market has been the
growth driver for the EEA LCY
bond market as a whole over
the past few years and
accounts for about a third of
total bonds outstanding in the
region. The largest LCY bond
market in EEA is the People’s
Republic of China with $3.4
trillion in bonds outstanding at
end 2011.
The Republic of Korea,
Malaysia, and Thailand had the
most liquid government bond
markets – as measured by
quarterly turnover ratios – at
the end of 2011.
The Bank further said to
mitigate against the risks
associated with the sudden
reversal of capital inflows, and
to minimize the currency and
maturity mismatches, ASEAN+3
governments launched the
ASEAN+3 Asian Bond Market
Initiative in 2002 to foster the
development of local currency
bond markets.ASEAN+3, with
an ADB contribution, has
established the Credit
Guarantee and Investment
Facility to provide credit
enhancement for investment
grade companies seeking to
issue local currency bonds.
ISLAMABAD
ONLINE
IN order to lure the
International Strategic
Investors to invest in the
local Stocks exchanges; the
Securities and Exchange
Commission of Pakistan (SECP) has
proposed the merger of all three
stock exchanges into one brokerage
center with merge trading. The
SECP Chairman while talking to
media on Friday at the SECP House
said that the proposal has been
given to the representatives of the
all three stock exchanges which will
be implemented with their consent.
He said that the capital gains tax
(CGT) will be implemented on the all
three stock exchanges from the next
week after the CGT rules would be
notified by the Federal Board of
Revenue (FBR) after which the
National Clearing Company of
Pakistan Limited (NCCPL) would
start deducing the tax. The SECP
Chairman said that the CGT law
has been in place. The Law and
Justice Division has vetted the
CGT rules and FBR will notify
the same in coming days. The
National Clearing Company of
Pakistan Limited (NCCPL) would
not be in a position to deduct the
CGT unless or until the CGT rules
are not being implemented. As
soon as the CGT rules would be
notified by the SECP, the NCCPL
would start deducing the tax on
stock market transactions. The FBR
will publish the draft CGT rules for
the information of all persons and
draft will be taken into consideration
after 15 days of its publication in the
official Gazette. The CGT rules would
be analyzed by all the stakeholders
and any suggestion, which may be
received from any person, in respect
of the said draft shall be considered
by the Federal Board of Revenue.
Responding to a query, Muhammad
Ali said that the CGT exemption is
not available on the stock market
transactions. This would be further
clarified in the CGT rules to be
notified by the Board. SECP
Chairman was confident that the
implementation of the CGT rules
would have a positive impact on
the market as these rules would
bring clarity in the procedure for
the collection of the CGT
transactions. A difference in
investment would be visible after
implementation of the CGT rules
and interest of the overall
investors would be increased in
view of a clear procedure on the
said issue. The stock market is
waiting for the CGT rules to have a
clear implementation procedure
on the stock market transactions,
he added.
oncE WE mErgE,thE World Will sPlurgEmErging stockExchangEs WouldattractintErnationalinvEstmEnt inlocal markEt: sEcP
ISLAMABAD
ONLINE
The Global Competitiveness Report (2012-2013) issued by
the World Economic Forum has appreciated the performance
of the Securities and Exchange Commission of Pakistan
(SECP). Consequently, the SECP has been ranked 55, as
compared to 70 last year. This acknowledgment by the World
Economic Forum gives us immense pleasure, the SECP
chairman, Muhammad Ali along with Amir Jahangir, CEO
MISHAL Pakistan told journalists on Friday. We have taken
many initiatives and we are really glad that our performance
has been internationally recognized and appreciated, he said.
Elaborating on the SECP’s recent initiatives, Ali said that the
demutualization of stock exchanges has been achieved. It
will lessen the conflicts, which were found in the mutualized
set-up where the brokers enjoyed rights of ownership,
decision-making and trading. It will support enhanced
governance and transparency at the stock exchanges and will
bring about greater balance between the interests of various
stakeholders. The capital market investor education and
awareness program was launched in July 2012. It is aimed at
making people aware of various financial products and
understanding their rights and responsibilities to enable
them to make informed investment decision. The revised
Code of Corporate Governance was launched in April 2012.
And a similar code for the state-owned enterprises is being
finalized. Since May 1, 2012, functional websites have been
made mandatory for the listed
companies. In May 2012, the SECP
was elected to the executive
board of the International
Organization of Securities
Commission (IOSCO), said Mr.
Ali. Set up in 1983, the IOSCO
is a Madrid-headquartered
organization with 182
members. The SECP
introduced and
implemented the concept
of e-IPO. New takaful
rules have also been
issued. New equity,
derivatives products
and commodity futures
contracts, i.e., exchange
traded fund, index options,
futures contract in sugar and crude
oil has been introduced.
World Economic ForumacknoWlEdgEs sEcP
Commodity prices surge in August
PRO 07-09-2012_Layout 1 9/8/2012 6:14 AM Page 1
02
Saturday, 8 September, 2012
Major Gainers
comPany oPEn high loW closE changE turnovErUniLever PakXD 8800.00 9240.00 9240.00 9240.00 440.00 120Unilever FoodXD 3123.00 3269.00 3269.00 3269.00 146.00 20Island Textile 295.70 310.47 290.00 305.00 9.30 1,400Service Industries 184.16 193.36 185.00 193.24 9.08 74,600Pak Gum & Chemical 237.44 247.99 235.00 245.95 8.51 5,300
Major LosersColgate Palmolive 1350.00 1350.00 1322.00 1325.00 -25.00 400National Foods 262.63 260.00 249.50 249.50 -13.13 4,100Shezan Inter. 242.60 233.00 231.00 231.67 -10.93 500Shield Corpor 161.76 153.68 153.68 153.68 -8.08 500Mithchells Fruit 357.00 349.00 349.00 349.00 -8.00 100
Volume Leaders
Telecard Limited 2.76 3.74 2.81 3.45 0.69 50,253,500WorldCall Telecom 3.04 3.50 3.10 3.24 0.20 31,045,000P.T.C.L.A 19.57 20.57 19.64 20.57 1.00 21,568,500Engro Corporation 105.46 110.50 105.51 109.90 4.44 8,940,300D.G.K.Cement 49.31 50.85 49.00 49.53 0.22 8,757,500
Interbank RatesUS Dollar 94.6342UK Pound 151.0740Japanese Yen 1.1987Euro 120.0245
Dollar EastBuy sEll
US Dollar 94.50 95.00Euro 118.68 119.66Great Britain Pound 149.58 150.79Japanese Yen 1.1852 1.1947Canadian Dollar 95.36 96.63Hong Kong Dollar 12.00 12.17UAE Dirham 25.63 25.81Saudi Riyal 25.10 25.26
Australian Dollar 96.19 98.42
Business
hEc’s sending off ceremony for students
ISLAMABAD: The contribution of Higher Education Com-mission Pakistan HEC is really commendable and govern-ment of Pakistan shall continue to support and back varioususeful initiatives of HEC. It was stated by Deputy ChairmanPlanning Commission Pakistan Dr. Nadeem-ul-Haq at thesend-off ceremony of Pakistan scholars proceeding for highereducation at Cambridge University UK. PRESS RELEASE
hEc’s 19th mt-FPdP commences ISLAMABAD: Under the auspices of Higher Education Com-mission (HEC) Learning Innovation Division the 19th MasterTrainers-Faculty Professional Development Program (MT-FPDP)commences here at HEC head office Islamabad. The course wouldbe completed on October 25, 2012 which is being attended by 28faculty members from 24 public sector universities across Pakistan.So far 524 Higher Education faculty members have been benefit-ted from Master Trainers-Faculty Professional Development Pro-gram (MT-FPDP) in 18 MT-FPDP batches. PRESS RELEASE
second skin launchedLAHORE: Second Skin, aclothing line based on semi-for-mal and formal designs, recentlylaunched at Object’s flagshipstore at Park Towers. While Ob-ject is essentially a store for homeaccessories and furniture, it hasrecently started branching outinto clothes but this is the firsttime the store has launched theirown fashion label. “Second Skincaters to evolution,” says AdilSartaj, CEO of Object who is alsothe head designer behind SecondSkin. “This line caters to modern,fashion forward women who are interested in making a simple butelegant statement through their wardrobes.” PRESS RELEASE
CORPORATE CORNER
KARACHI: Participants at the opening ceremony of the Association ofSchool Rowing in Asia (ASRA) Regatta 2012 held at Karachi Boat Club.
HONG KONG
AFP
ASIAN markets surgedFriday after EuropeanCentral Bank chief MarioDraghi unveiled a plan to
buy the bonds of troubled eurozonenations in a bid to tackle the re-gion’s long-running debt crisis.
The bullish sentiment fuelledby Draghi’s announcement was in-creased by US data showing manymore jobs than expected were cre-ated in the private sector lastmonth, lifting hopes for the world’snumber one economy.
Tokyo surged 1.75 percent bythe break, Hong Kong jumped 1.81percent, Shanghai rose 2.00 per-cent, Sydney gained 0.58 percentand Seoul rallied 2.10 percent.
Draghi said Thursday the ECBwould buy unlimited amounts ofdebt from troubled nations such as
Spain and Italy in order to lowertheir cost of borrowing and helpthem get back on their feet — ascheme named “Outright MonetaryTransactions”.
The OMTs “will enable us toaddress severe distortions in gov-ernment bond markets which orig-inate from, in particular,unfounded fears on the part of in-vestors of the reversibility of theeuro”, Draghi said.
“We will do whatever it takes” tokeep the eurozone together, headded. However, he said the pur-chases would depend on those coun-tries asking for bailout cash andagreeing to undertake economic re-forms. The announcement “ex-ceeded market expectations, whichhasn’t happened for a long time,”said Dariusz Kowalczyk, senioreconomist and strategist at CreditAgricole in Hong Kong. “It draws aline, for a while at least, under the
issue of peripheral European debt,”he told Dow Jones Newswires.
The euro rallied in New Yorkafter the news, surging to a two-month high of $1.2652 at one pointbefore ending Thursday at $1.2629.
In early Tokyo trade it bought$1.2631. It also rose to 99.64 yenin Tokyo, from 99.60 yen lateThursday. Before Draghi’s planthe common currency fetched$1.2629 and 99.05 yen. The dol-lar also rose Friday, to 78.89 yenfrom 78.85 yen late Thursday. Inthe United States figures frompayrolls company ADP Thursdayshowed private-sector employ-ment rising by 201,000 in Au-gust, after an upwardly revisedJuly gain of 173,000.
The jobs number was wellabove the average forecast of143,000, and showed a strong in-crease of 29,000 in the key servicesector from July, to 185,000.
Also lifting sentiment were fig-ures from the Institute for SupplyManagement Thursday showing itsmonthly purchasing managersindex for the services sector rose to53.7 from 52.6 in July, scotchingworries of a downturn. A readingabove 50 indicates growth.
On Wall Street the Dow climbed1.87 percent and the S&P 500 ad-vanced 2.04 percent — both to theirhighest levels since December 2007.The Nasdaq surged 2.17 percent.Eyes are now on non-farm payrollsdata to be released later Friday,which traders said were also “point-ing to quite a strong read as well”.
New York’s main contract, lightsweet crude for delivery in Octoberslipped 76 cents to $94.77 a barreland Brent North Sea crude for Oc-tober delivery shed 81 cents to$112.68. Gold was at $1,692.75at 0250 GMT compared with$1,708.24 on Thursday.
Asian markets sharplyhigher after ECB move
ISLAMABAD
ONLINE
Islamabad Chamber of Commerce and Indus-try (ICCI) and Association of Certified Char-tered Accountant (ACCA) signed aMemorandum of Understanding (MoU) on Fri-day. The MoU will equip both institutions towork together to achieve and promote thehighest professional, ethical and governancestandards, advance the public interest and tosupport the accounting profession and busi-ness community by building both capacity andcapability. The agreement was signed by YassarSakhi Butt, President ICCI and Shamez Mukhi,Head of Public Affairs ACCA Pakistan.
Speaking on the occasion, President ICCIsaid that the partnership between ICCI andACCA would serve to mutually benefit the busi-
ness community and the accountancy profes-sion at large. ACCA’s work on the Research andInsights front has been remarkable whichwould enable us to strengthen relationshipswith the business community further, he added.Yassar Sakhi Butt said that Government shouldensure development of a comprehensive Infor-mation Communication technology (ICT) infra-structure in the length and breadth of thecountry along with opening of training insti-tutes throughout Pakistan for providing train-ing to entrepreneurs on specially discountedpackages so that majority of businessmen couldbe well trained to utilize ICT for bringing im-provement in all functional areas of their enter-prises and promoting businesses.
Shamez Mukhi, Head of Public AffairsACCA Pakistan said that ACCA Pakistan eagerlyseeks to create synergies with regulators like
ICCI. He said that we seek value addition forbusiness enterprises and our members to en-able them achieve effective outputs and out-comes. This partnership between ICCI andACCA Pakistan is unique and may prove to becornerstone for other similar progressive initia-tives, he maintained.
Following the signing ceremony, ACCA Pak-istan and ICCI also organized a session on‘Transforming Finance Function to e-Profes-sional’. Muhammad Uzair, Director InternalAudit, Tourism Promotion Services (Ltd) spokeon e-learning and e-assessment practices, offer-ing solutions to create a better learning experi-ence, as well as developing more challenging andrealistic tests of skills and competences. KomailAbbas Badami, Partner Badami Law Associates,and Member, ACCA Pakistan Members NetworkPanel conducted a workshop on e-filing.
icci, acca sign mou for collaboration
TOKYO
AFP
The euro notched up further gains in Asia onFriday after jumping overnight on the EuropeanCentral Bank unveiling a bond-buyingprogramme to help debt-ridden members of the17-nation eurozone. The common currencybought $1.2631 and 99.64 yen in Tokyo morningtrade, from $1.2629 and 99.60 yen late Thursdayin New York. The euro had climbed to $1.2652, atwo-month high, earlier in the US session. It hadbeen trading around $1.2602 and 98.85 yenbefore the bank’s announcement. The dollar alsorose in Tokyo to 78.89 yen from 78.85 yen onThursday. The plan, mapped out by ECB chiefMario Draghi after the bank announced anunchanged interest rate policy, offeredhope that efforts to strengthen theeurozone were comingtogether. Traderswelcomed details ofthe programme. “TheECB meeting hashelped stabilise theeuro,” Daisaku Ueno,senior foreign exchangeand fixed incomestrategist at Mitsubishi UFJMorgan Stanley, told DowJones Newswires. But it was notimmediately clear if debt-hit nationsincluding Italy and Spain would takeadvantage of the ECB offer, whichamounts to a bailout. The move wasaimed at bringing down debt-hiteurozone members’ borrowing costs andprop up the embattled euro. But critics led by
Germany had warned that buying the debt oftroubled eurozone nations would let them avoidpainful austerity cuts that are crucial to repairingtheir fiscal health. Currency markets would nowshift their focus to US non-farm payrolls datalater in the day, a strong barometer of whetherthe US Federal Reserve decides to launch freshstimulus. The dollar’s gain on the yen washelped by figures on Thursday that showed USweekly jobless claims fell for the first time in amonth while a better-than-expected 201,000private-sector jobs were added to the world’sbiggest economy in August. On Friday, Japan’sgovernment said it would delay 5.0 trillion yenin spending ($63 billion) amid a politicaldeadlock over a bond-issuance bill necessary to
help pay for some ofTokyo’s public
spending thisyear.
crude down inasia overdemand concerns
SINGAPORE
AFP
Oil prices sank in Asia Friday, with de-mand concerns in the spotlight despite theEuropean Central Bank’s plan to supportweak eurozone economies, analysts said.
New York’s main contract, light sweetcrude for delivery in October slipped 76cents to $94.77 a barrel and Brent NorthSea crude for October delivery shed 81cents to $112.68.
Concerns over global energy demandfollowing a slew of manufacturing datashowing weakening activity in China, Eu-rope and the United States overshadowedthe ECB plan to buy sovereign bonds, saidJustin Harper, market strategist for IGMarkets Singapore.
“While ECB moves to solve the euro-zone crisis are welcome and saw equitiesrally... energy markets continue to beweighed down by weak economic data,”he told AFP.
“Manufacturing data has been weakand that shows the economy is still verysluggish and will keep a cap on oil prices,”Harper added.
Traders were also disappointed afterpositive US jobs data released lateThursday suggested the Federal Reservewould likely delay any moves to intro-duce another round of stimulus meas-ures, Harper said.
Traders are now looking ahead to therelease of non-farm payrolls data later Fri-day for more clues about the state of theworld’s leading oil consumer, he added.
Euro stronger in Asiaafter eurozone bond plan
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