Tuesday, 2 October, 2012

ISLAMABAD

ONLINE

PAKISTAN on Mondaypaid off the fifth in-stallment worth $105million to the Interna-tional Monetary Fund

(IMF) which took the total repaidamount to $1.395 billion, an officialof State Bank has said.

On August 24 last month Pak-istan had paid the fourth tranche ofthe loan that totalled $ 397.2 mil-lion to the IMF while it had paid $392 million in May and in Februarythis year the country repaid the firstinstallment of $ 401 million.

The official said $1.18 billionamount received in Coalition Sup-port Fund (CSF) from the US hadgiven some space to the country’seconomic trouble shooter to repay

installments to the IMF on monthlybases. The official said the country’sforeign exchange reserves will con-tinue to face pressure due to re-pay-ment of IMF loans in the next morethan three years as Pakistan is likelyto go to the International MonetaryFund (IMF) in fresh loan in currentfiscal year 2012-13 to seek loan forthe retirement of IMF’s Stand-byArrangement (SBA) facility.

Despite depressive economic sit-uation of the country, the governmenthad paid back total amount of $1.2billion to International MonetaryFund during last fiscal year 2011-12from foreign currency reserves heldby the State Bank of Pakistan (SBP).

According to the repaymentschedule agreed between Pakistanand IMF, Pakistan will repay its ob-tain $7.6 billion to the IMF till theend of fiscal year 2014-15. The $11.3

billion SBA program had expired onSeptember 30, 2011 and the lasttwo trenches of $3.7 billioncould not pay to Pak-istan by IMF fol-l o w i n gIslamabad’s failureto pursue key reformsas well as the emer-gence of the revenue fig-ures fiasco.

Pakistan had enter into a$11.3 billion programme in2008 with IMF and got dis-bursements of about $7.6 billion,but failed to get the remaining $3.7billion due to slippages in perform-ance criteria, leading to suspension ofthe programme in May 2010 andwas ended unsuccess-fully on Sep-t e m b e r30,2011.

Afghanistan to issue 6-month multiple entryvisas to businessmen

ISLAMABAD

ONLINE

The Afghan Government has agreed to issue multipleentry visas for six month to Pakistani Businessmen whointend to visit Afghanistan thus accepting a long awaiteddemand of Pakistani business community. Businessmenfrom Pakistan were issued only single entry visa whichwas causing great hardship. During recent visit to Kabulin July, 2012, in his meeting with Afghan President, thePrime Minister of Pakistan had raised this issue and theAfghan President had agreed and issued directives. Inpursuance to the discussion between the leaders of bothcountries, and on the basis of Afghan President,directives, the Afghan Embassy has communicated theirdecision to issue multiple entry visas for six months toPakistani businessmen. The step would greatly facilitatethe trading community of Pakistan in doing business withAfghanistan. It would further strengthen existingbrotherly relations enjoyed by the two countriesespecially in the trade and economic spheres.

SECP extends CRS, CEESdeadlines

ISLAMABAD

APP

The Securities and Exchange Commission of Pakistan(SECP) has extended the validity period of the CompaniesRegularization Scheme (CRS) and Company Easy ExitScheme (CEES), up to October 31, 2012. It may be notedthat this is the last and final extension and any request forfurther extension shall not be entertained, says astatement issued by the Commission here today. The feestructure will remain the same as was applicable in themonth of September for the schemes. Defaulter/defunctcompanies are advised to benefit from the schemes withinthe extended time, by either regularizing through filing oftheir overdue returns under the CRS or strike theircompanies off the register under the CEES.

ISLAMABAD

NNI

Prime Minister Raja Pervez Ashraf hassaid that Pakistan attaches great

importance to its relations withRussian Federation and is

keen to intensify economicrelations between the twocountries.

In a meeting withRussian Delegation inIslamabad on Monday‚

the Prime Ministersaid the growing

economic cooperation between the twocountries in various fields has given newimpetus to the bilateral relations.

The Prime Minister noted with sat-isfaction that MOU for the expansion ofPakistan Steel Mills has been approvedby the Cabinet and ready for signatureby both the sides. The Prime Ministeralso appreciated the cooperation beingextended by Russian Federation for theconversion of Jamshoro and Muzafar-garh Thermal power plants from furnaceoil to coal.

The Prime Minister urged on theneed to facilitate visas to Pakistani Busi-

ness Community with a view to enhanceBusiness to Business Contacts‚ whichwill have a positive impact on the vol-ume of trade between the two sides. ThePrime Minister was informed that textof the MOU regarding Cooperation inRailways has been approved by Ministryof Railways of Pakistan and Transmash-holdings Russia.

The Prime Minister was further in-formed that besides Energy‚ transporta-tion and Steel Sectors‚ the StateCorporation of Russian Technologiesare also keen to explore more opportu-nities of investment in Pakistan.

Karachi Stock Exchange all set to free-float to the top

KARACHI

ISMAIL DILAWAR

In the wake of demutualization regime at the coun-try’s bourses the front regulators at Karachi StockExchange (KSE) have decided to recompose thebenchmark KSE-100 index on the basis of free-floatmarket capitalization method.

The move is being carried out on the basis of rec-ommendations extended by the KSE’s Index ExpertCommittee. According to the Exchange, the Board ofDirectors of the KSE took the decision in its meetingheld on the 24th of April this year and had notifiedthe same through a notice, KSE/N-2968, on June 15.

The Board had also decided that the rules forcomposition and re-composition of the index basedon free-float methodology shall remain unchangedother than selection of the companies on the basis offree-float market capitalization as against total mar-ket capitalization.

The decision was notified vide Notice No.KSE/N-2968 dated June 15, 2012. In line with theabove, the exercise of composition of companies inthe KSE-100 index on the basis of free-float marketcapitalization has been carried out as per the closingprices of shares as on August 31 (2012).

As a result, 32 firms have been included in theindex on the basis of sector rule, means the largestfree-float market capitalization companies of thesector while the remaining 68 companies have beenselected on the basis of capitalization rule: largestfree-float market capitalization companies in de-scending order. In aggregate 16 companies would beaffected due to the said migration of KSE-100 indexfrom total market capitalization to free-float marketcapitalization. The incoming firms are: InternationalIndustries, Cherat Cement Company, Lafarge Pak-istan Cement, Agriauto Industries, National Foods,

Azgard Nine, Nishat (Chunian), Hum Network,Kohinoor Energy, Bank of Khyber, Bank of Punjab,Bankislami Pakistan, JS Bank, Allied RentalModaraba, JS Growth Fund and TPL Trakker.

The outgoing companies are: Byco Petroleum,

Agritech, Engro Polymer & Chemicals, Bestway Ce-ment, Al-Ghazi Tractors, Atlas Honda, TandlianwalaSugar Mills, Unilever Pakistan Foods, Ibrahim Fi-bres, Indus Dyeing & Manufacturing Co., PhilipMorris (Pakistan), Media Times, Dreamworld, P. I.A. C. “A” Silkbank and East West Insurance Com-pany. According to Haroon Askari, deputy managingdirector KSE, the new index would take effect fromthe 15th of this month.

The paid up capital of the 100 companies in-cluded in the new index stands at Rs 717,351.736while the number of free-float shares total at18,593,062,201. The fresh changes would see thetotal free-float market capital amount to Rs885,813,471, 657. Meanwhile, the KSE notified thatits Board of Directors had, in its September 27thmeeting, decided to discontinue contribution to theClearing House Protection Fund (CHPF) by the Ex-change’s members from this month, October 1st.

Also, the KSE Board decided to slash the

“LAGA”, the charges the brokers and TREC holderspay to the Exchange, to Rs 2.46 and Rs 3.44 pertransaction of Rs 100,000 in the ready andfutures/off lots markets, respectively.

Previously, the KSE used to charge the brokers

and TREC holders with Rs 2.68 for transactionsunder ready market and Rs 3.75 for futures and offlots markets transactions. Under the new changes,the 0.22 paisa and 0.31 paisa that used to go to theCHPF has been abolished.

PM still hopeful of some Russian love

KARACHI: After having witnessed a handsome growth of 6 percent during themonth of August the market took a breather in Sep-12 and went up by mere 1.3percentMoM to reach at 15,444 levels. During the month, the market touched thehighest level of 15,588pts, which happens to be 54 months high, said the analystsat InvestCap Research. However, the index failed to cross the all time high of15,676pts and was down by 144pts from the above mentioned high of the month.Amongst the historical monthly average returns for the month of Sep, the KSE-100 remained low against its decade-average return of 2.5 percent for the month.The average daily volumes of the market also remained subdued during themonth and reached at 146mn shares, down by 6.4 percentMoM as against 156mnshares recorded in the previous month. “The reason for stagnant behavior of themarket during the said month was the conclusion of corporate results season forthe period ended June coupled with uncertainty on relationship between theGov’t and the judiciary which forced investors to adopt to a cautious stance andas a result market behavior remained sluggish during Sep-12,” viewed Mazhar A.Sabir, an analayst at InvestCap Reserach. On the other hand, he said, the marketsurged by 11.9 percent during 1QFY13, while on cumulative basis the marketyielded superb 36 percent gain on year to date basis. The average return of the

regional peer group stood at 5 percentMoM as against the benchmark KSE-100index, as the latter inched up by mere 0.36 percentMoM (based on market Cap inUSD) in Sep-12, whereas India yielded highest return of 13 percentMoM. Onforeign inflow front, the FIPI in Asia pacific region stood at USD9.8bn with Indiaachieving highest inflow of USD3.6bn during the month, followed by SouthKorea and Taiwan as they realized inflows of USD3.0bn and 2.05bn respectively.Pakistan on the other hand, received relatively low inflow of USD12mn duringthe month. However, the benchmark KSE-100 managed to secure positionamongst top-5 regional indices on the basis of YTD growth (29 percent in USDterms), while beating MSCI World Index coupled with Emerging markets i.e.China, Taiwan, and Frontier Markets i.e. Vietnam and Sri Lanka. In 1QFY13, theKSE-100 sustained amongst the top-ten regional equities. Going forward, withthe expectation of another rate cut in discount rate along with recently convertedindices into free float based from market capitalization based seem positive stepsfor strengthen for the market. On the flipside, imbalances of macroeconomicindicators of the country coupled with uncertainty on political front, as the nextelections are on the card which is expected to remain a hurdle for better marketperformance. STAFF REPORT

Benchmark KSE 100 index recomposed on free-float methodology

KSE-100 yields 12pc during 1QFY13

Pak repays $105m worth fifth

installment to IMF

5 down, quite a few more to go

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02

Tuesday, 2 October, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUniLever Pak 9700.00 10000.00 10000.00 10000.00 300.00 200Nestle Pakistan Ltd. 4200.00 4410.00 4400.00 4410.00 210.00 160Colgate PalmolivXDXB1150.00 1200.00 1125.00 1184.72 34.72 1,800Shezan Inter. 286.62 300.95 295.00 300.00 13.38 104,100Wyeth Pak Limited 850.00 860.00 850.00 860.00 10.00 1,050

Major LosersRafhan Maize Prod. 4177.15 3968.30 3968.30 3968.30 -208.85 40Siemens Pakistan 800.00 760.00 760.00 760.00 -40.00 50Mithchells Fruit 360.00 360.00 342.00 342.63 -17.37 1,000Pak Gum & Chemical 204.86 200.10 195.00 195.71 -9.15 1,200Pak Services 163.62 165.00 155.44 155.44 -8.18 300

Volume Leaders

Lafarge Pakistan 5.85 6.05 5.76 6.01 0.16 17,256,500P.T.C.L.A 19.39 20.04 19.43 19.85 0.46 10,640,000Dewan Cement 4.90 5.50 5.18 5.38 0.48 10,637,500D.G.K.Cement 50.30 51.25 50.45 51.02 0.72 9,719,000Engro Corporation 106.77 108.85 106.52 108.31 1.54 4,215,100

Interbank RatesUS Dollar 94.9210UK Pound 153.2309Japanese Yen 1.2169Euro 122.4006

Dollar EastBUY SELL

US Dollar 94.50 95.00Euro 121.45 122.36Great Britain Pound 152.00 153.10Japanese Yen 1.2016 1.2102Canadian Dollar 95.68 96.87Hong Kong Dollar 12.03 12.18UAE Dirham 25.68 25.84Saudi Riyal 25.17 25.29Australian Dollar 97.34 99.50

Business

Wateen gets Cisco’s ‘CustomerService Excellence’ award

LAHORE: Wateen Telecom Pakistan’s leadingconverged communications service provider, in itsefforts to reshape its consumer brand and becom-ing the consumer’s digital life partner through in-novative services, has been recognized with CiscoCustomer Satisfaction Excellence award. Wateenwon this award for the second time because of itsexceptional level of customer service level duringthe last two quarters. Customer Satisfaction Excel-lence is the highest distinction a partner canachieve within the Cisco Channel Partner Pro-gram. Mr. Naeem Zamindar, CEO Wateen Tele-com, in a message to the employees stated, “Thisachievement further confirms Wateen’s focus oncustomer centricity and keeping our customers atthe center of our thought process while dealingwith all environmental and economic challenges.As a Cisco Gold Partner, we are committed to thesuccess of our customers and value our relation-ship with Cisco in continuing to deliver the highestquality solutions, products, and services.” PRESS RE-

LEASE

THI celebrates World HeartDay 2012KARACHI: Like every year, THI on commemo-ration of World Heart Day, again took initiative tocontribute in spreading awareness about preven-tion of Heart Diseases. Celebrating World HeartDay 2012, themed “One World, One Home, OneHeart”, Tabba Heart Institute (THI) organized aseries of Heart Health Awareness activities fromSunday, September 23, to Saturday, September29, 2012. The activities included AssessmentCamp at Metro Cash and Carry, Lectures, and aAwareness Session for THI staff and general pub-lic at different places like Schools, CommunityCentre and THI Auditorium. PRESS RELEASE

Telenor selects ROZEE.PK as ‘TopEmployer Recruiting Solution’ LAHORE: ROZEE.PK today announced that Te-lenor Shared Services Pakistan (TSS Pakistan), adivision of Telenor Pakistan, has selected the

ROZEE.PK Top EmployerTM Recruiting Solutionto facilitate its talent acquisition. Telenor is one ofPakistan’s most aspired workplaces according tovarious industry studies. As one of Pakistan’sleading brands, Telenor places tremendous im-portance on hiring the best talent in the market.Through its partnership with ROZEE.PK, Telenorhas augmented its search for talent to ROZEE.PKdatabase of 3 Million registered professionals and10 Million annual visitors looking for top jobs inPakistan. Telenor Pakistan chose ROZEE.PK be-cause of its strong leadership position in Pak-istan’s talent acquisition market, large talentdatabase and powerful filtering technology. “Ourorganization is a rapidly growing employer ofyoung, talented Pakistanis”, said Imran Ashraf,Head of TSS Pakistan. PRESS RELEASE

Mobilink supports PinkRibbon for ‘Pinktober 2012’LAHORE: Mobilink has partnered with PinkRibbon to mark October as ‘Pinktober - the BreastCancer Awareness Month’. Pink Ribbon will belaunching a nationwide awareness drive in Octo-ber with the support of Mobilink and the HigherEducation Commission (HEC), aiming to reachout to 100,000 young girls. During ‘Pinktober2012’, Mobilink will support Pink Ribbon by col-lecting donations through a SMS campaign as wellas by educating customers using information ma-terial distributed through bill inserts, customercare centers and advertising. PRESS RELEASE

More than 50 CSR expertshead to Bangkok for AFCSRLAHORE: In celebration of its second decade, theAsian Forum on Corporate Social Responsibility(AFCSR) will be held at the Shangri-La Hotel inBangkok on October 25 and 26, 2012. The programopens with H.E. Anand Panyarachun, the well-re-spected former Prime Minister of Thailand and found-ing chairman of the Kenan Institute Asia, a non-profitorganization that works toward sustainable develop-ment in Thailand. Like previous years, CSR expertsfrom various industries and backgrounds have beeninvited to share their insights on the creation and exe-cution of coherent CSR strategies. PRESS RELEASE

TiE complains about deadlock LAHORE: The Indus Entrepreneur (TiE) LahorePresident Salim Ghauri has said a deadlock in thecapacity building of the government departments’workforce has blocked the smooth sailing of the in-vestment and trade policies in the country. This dis-mal situation has given birth to a negativeimpression that the incentives for growth of invest-ment and trade are a sheer wastage of the public

money, he added. As a matter of fact, the TiE Presi-dent said, it is the lack of timely improvement in thegovernment machinery and the functionaries lead-ing to doubts of the policymakers against the poli-cies of each other. He said the press reports havesuggested that the Ministry of Finance and thePlanning Commission have challenged the StrategicTrade Policy Framework (STPF) 21012-15 of theMinistry of Commerce and Trade, saying that offer-ing Rs30 billion subsidies for promotion of tradeare a sheer wastage of public funds. PRESS RELEASE

Lake City Holdings adds ajewel to its crown

LAHORE: The Lake City Holdings which is one of thelargest real estate projects of Pakistan and a premier se-cured fated community is proud to announce that theyhave added a jewel to their crown by finalizing a dealwith Technogym for their Lake City Golg and CountryClub’s Health Club. A contract signing ceremony washeld between the management of Lake City Holdingsand Technogym at the Lake City Golf and Country Clubon Monday, 1st October 2012. PRESS RELEASE

PTCL makes employees’ Hajjdream come true

ISLAMABAD: Pakistan TelecommunicationsCompany Limited (PTCL) held a farewell receptionin honor of the forty departing hajjis who have beensponsored by PTCL under the employee welfarescheme. Held at a local hotel in Islamabad, the re-ception was attended by PTCL employees. As partof its organizational commitment to provide incen-tives and encouragement for the employees, PTCLsponsors the Hajj of 40 employees each year ac-cording to a pre-defined process. PRESS RELEASE

CORPORATE CORNER

ISLAMABAD

APP

THE monthly inflation based on Con-sumer Price Index (CPI) duringmonth of September 2012 has regis-tered an increase of 0.79 per centover August, 2012.

According to the data revealed by Pakistan Bu-reau of Statistics (PBS), the CPI inflation, wit-nessed an increase of 8.79 percent on year-on-yearbasis in September 2012 as compared to 9.1 per-cent in the previous month and 10.5 percent inSeptember 2011.

The PBS collects the retail and wholesale priceand computes the consumer price index on monthlybasis and sensitive price index on weekly basis. InJuly 2012, the Wholesale Price Index (WPI) infla-tion on YoY basis increased to 7.8 percent in Sep-tember 2012 as compared with 7.7 percent a monthearlier and 17 percent in September 2011.

The WPI inflation on month on month basis in-creased by 0.3 percent in September 2012 as com-pared to an increase of 1 percent a month earlier and0.2 percent in September 2011. During the monthof September 2012 over September 2011, thetrimmed or core inflation increased by 10.4 percent.

Core Trimmed inflation has increased by 0.5percent on MoM basis in September 2012 as com-pared to 0.4 percent in August 2012. The Core in-

flation measured by non-food non-energy CPI (CoreNFNE) increased by 10.4 percent in September 2012as compared to 10.8 percent in August 2012 (YoY)and by 10.6 percent in September 2011. Core NFNEinflation on MoM basis increased by 0.4 percent inSeptember 2012 as compared to 0.3 percent amonth earlier and 0.7 percent in September 2011.

The items, which witnessed decrease in theirprices during the month include chicken (15.46%),tomatoes (14.33%), fresh fruits (13.02%), pulsemoong (2.34%), sugar (1.12%), dry fruits (1.1%) gramwhole (0.55%). The items, which recorded increasein their prices during the month of September in-cluded fresh vegetables (23.23%), onions (13.77%),eggs (12.08%), wheat flour (5.72%),wheat (4.98%), wheatp r o d u c t(3.85%), pota-toes (2.24%),nimco (1.55%),rice (1.22%) cere-als (1.15%) andmeat (1.04%).

And it’s back

on the rise…CPI-based inflation up 0.79% in September

SCCI stamped!SIALKOT

APP

Pakistan Post authorities haveissued a stamp of Rs 8 to mark 30-year services of the Sialkot Chamberof Commerce and Industry (SCCI)for enhancing the trade volume andface-lifting of Sialkot.This was revealed by PresidentSialkot Chamber of Commerce andIndustry (SCCI) Naeem AnwarQureshi while addressing a newsconference on Monday. About500,000 stamps have been issuedby Pakistan Post authorities, headded. The SCCI president said thatthe stamp was an acknowledgmentof services of the Sialkot Chamber ofCommerce and Industry and anhonour for the business communityand people of Sialkot. He thankedthe government and Pakistan Postauthorities for bringing out thecommemorating stamp.

Bulls lift ISE up

33 points ISLAMABAD

APP

Islamabad Stock Exchange (ISE-10) here onMonday witnessed bullish trend as the index wasup by 33.70 points to close at 3169.08 points ascompared to the previous day’s trading. Talking toAPP, Stock Analyst, M.M Hassan said that thebuying in the low-priced stocks led the bullish rallyin the local stock markets. Besides, the investorspreferred to off-load the positions in the marketswhenever the index got the strength resulting in adecrease in the volume of the market, he added.Moreover, the punters have taken position in thelow-priced shares specially banking and cementsectors, he said. Total volume of shares traded was57,600, which was down by 400 as compared to aday earlier’s closing. Out of 138 companies’ sharestraded, the price of 82 was increased while theprice of 56 decreased. The price of top gainerUnilever Pakistan was increased by Rs. 300 whilethe price of top loser decreased by Rs.40. Silk BankLtd, NIB Bank and Fauji Cement Limited remainedvolume leaders, with volume of 25,000, 15,000 and10,000 shares respectively.

Crude down in Asia

SINGAPORE

AFP

Crude oil prices fell in Asia Monday after officialdata showed China’s manufacturing activitycontracting for the second straight month inSeptember, analysts said. New York’s maincontract, light sweet crude for delivery inNovember, shed 56 cents to $91.63 a barrel andBrent North Sea crude for November retreated 40cents to $111.99. Crude prices headed south afterofficial data released by China showedmanufacturing activity in the world’s largestenergy consumer shrinking yet again, analystssaid. China’s manufacturing purchasingmanagers’ index (PMI) was at 49.8 in September,up 0.6 from its August level but still below 50,indicating a contraction. “This morning we haveofficial Chinese PMI data following HSBC’ssurvey at the weekend which supported its flashnumber revealing further contraction,” IGMarkets said in a report.

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