Wednesday, 16 January, 2013

Karachi

STAFF REPORT

WITH security con-cerns and circulardebt restrictingPakistan Oil & GasExploration compa-

nies to tap in new reservoir, the sectorcontinues to rely on maximizing theyield of existing reservoirs, said the an-alysts at Topline Research.

As a result, they said, the increase inoil and gas production in 2012 failed tofill the mounting demand thereby affect-ing the overall industrial growth besidesaffecting the transport and other seg-ments. During the outgoing calendaryear 2012, country’s gas production thatcontributes approx. 50% in Pakistan en-ergy mix grew by 4% to an average of4.2bcfd from 2011 average gas produc-tion of 4.1bcfd.

“Five years back in 2007 averageproduction was 3.9bcfd. This increase iswell below the organic growth in its con-sumption thereby creating huge deficitaffecting the overall economic growth,”said Topline analyst Nauman Khan.

Major news of the year was commis-sioning of KPD-TAY that added an aver-

age 104mmcfd in the system, he said.However, other gas fields like

Qadirpur, Zamazama, Mari had led theirdue hands. However, natural decline inmajor fields namely Sui and Sawan cou-pled with reduce production from Talblock diluted its impact.

On the oil front, average productionincrease by a decent 10% to 71.6k barrelsa day in 2012 from 64.9k in 2011. It was

70.4k in 2007. Improvement in 2012was largely attributed to Nashpa field.During 2012 Nashpa field of Nasphablock located in KPK region of the Pak-istan, was the star performer for the sec-tor.

“Thanks to favourable results of itsappraisal wells, fields production in-creased by a mammoth 109% to above11k bpd as against 5.5k bpd last year,”

said Khan.Other notable increase also came

from Adhi fields as its production roseby a decent 16%. The much talked about,Tal block production increased by amere 3%, despite commissioning ofMakori East towards the end of the year.Though, we continue to have convictionin the block’s potential but commission-ing of Makori CPF (Central ProcessingFacility) holds its key.

Going forward, near-term triggerwas expected to come from materialisa-tion production from Sinjhoro fields,Mamikhel-2 and Maramzai-2, while im-proved production from Naspha, Adhiand Mela fields wer also events to keepa track. Amongst the listed companies,OGDC’s average gas production in-creased by a decent 14% in 2012 largelyattributed to KPD-TAY effect, while itsoil production grew by 7%. PPL per-formed well in the oil depicting a growthof 12% however, its gas production de-clined by 4% due to subdued perform-ance of Sui and Sawan.

2012 was a disappointing year forPOL whose oil production declined by18% mainly on account capped produc-tion from Tal and decline in productionfrom its own operating fields.

Amidst crisis, Pakistan gasand oil outputs rise in 2012Gas output up by 4pc, oil by 10pc in 2012

PSM promotes deputy

chief engineers as

general managers

Karachi

STAFF REPORT

Chief Executive Officer of Pakistan SteelMills (PSM) Major General (Retd)Muhammad Javed said yesterday thathard work done with national spirit, hon-esty and sincerity never goes in waste.There is a need to work with such a zealfor the progress of Pakistan Steel.He stated this on the occasion of distribu-tion of promotion letters at the OperationsBuilding to 8 Deputy Chief Engineers ele-vated to the rank of General Managers.He said promotion meant that you have towork with even greater confidence and re-sponsibility, so that your experience andabilities can be harnessed for the betterrunning of Pakistan Steel.Due to the retirement of many senior offi-cers of Pakistan Steel, 9 vacancies hadbeen created for the post of general man-ager in 2012. While the post of generalmanager (security) was advertised in thepress and initial interviews have alreadytaken place in this behalf, for the other 8posts senior deputy chief Engineers werepromoted on the recommendation of theDepartmental Promotion Committee sothat these capable officers can performtheir duties with full dedication.The officers who have been promoted havemore than 30 years of experience in theirfield and their names are: Engineers,Athar Husain Zaidi, Naseer Ahmad, Im-tiaz Hassan Shamsi, Sohail Sana Qazi,Captain (Retd) Parvez Akhtar, Syed AliMujtaba, Qazi Anwar Hussain and IqbalAhmad Qureshi.

Banks to report

maturity gaps of

contractual assets,

liabilitiesKarachi

STAFF REPORT

The central bank yesterday asked thebanks and Development Finance Institu-tions (DFIs) to report the maturity gapsof all their assets and liabilities based on‘contractual maturities’ in addition to thereporting based on ‘expected maturities’as notified in its circular issued on Feb-ruary 22 last year.The regulator said, while reporting gapsbased on ‘expected maturities’ the banksand DFIs should disclose the methodol-ogy used to determine behavioural matu-rity of ‘non-contractual maturity’ assetsand liabilities.The move was aimed at further enhanc-ing disclosures on the liquidity risk, saidthe bank.In the BSD Circular Letter No. 03 issuedin February 2011, the State Bank had ad-vised the banks and DFIs to report matu-rity gaps between their ‘non-contractualmaturity’ assets and liabilities based on‘expected maturities’.The SBP, in a circular issued yesterday,said the banks should report both of theabove disclosures under Note 45.4.1 ofthe revised form of Annual FinancialStatements issued vide BSD Circular No.04 dated February 17, 2006.“The banks shall continue to report theirmaturity gaps only on ‘expected matu-rity’ basis in quarterly Data File Struc-ture under Reporting Chart of Accountsas envisaged in the above mentioned Cir-cular letter,” said the regulator. These in-structions shall become effective fromDecember 31, 2012, it added.

LHC orders removal

of PTA chairmanLahOrE

NNI

The Lahore High Court (LHC) yesterdayissued directives to remove the PakistanTelecommunication Authority (PTA)Chairman Farooq Awan from his postafter the court declared his appointmentto have been made on a political basis.Justice Syed Mansoor Ali Shah heard thecase at LHC on Tuesday.Barrister Sardar Muhammad Ali hadfiled a petition against the PTA chair-man’s appointment.During the hearing, the court declaredthat Awan’s appointment as the PTAchairman had been made on a politicalbasis – which was an ‘unconstitutionalprocess’ – therefore, Awan must be re-moved from his post.

Karachi

STAFF REPORT

Meezan Bank, the first and largest Is-lamic commercial bank, has entered intoan agreement with Mashreq Bank PSC,UAE, under which Meezan Bank wouldearn Shariah-compliant profit on its USDollar clearing account balance heldwith Mashreq Bank. The innovativearrangement utilises a Shariah-compli-ant principle of Wakala.

Aimed at facilitating the growingmarket of Islamic financial institutions,this innovative product was initially de-veloped to cater to Meezan Bank’s re-quirement of earningShariah-compliant profits on its USDollar clearing account. This productwas developed and launched byMashreq Bank in a record time and waslater commercialised and made avail-able to clients globally across Mashreq’snetwork. The product was approved bythe Shariah divisions of both Banks.

Speaking at the occasion MeezanBank Chief Operating Officer Mr. ArifulIslam commented: “The US Dollar Is-lamic arrangement with MashreqBank will prove to be a sig-nificant positive de-velopment in ourattempts toprovide thebest clear-i n ga r r a n g e -ments too u rc l i e n t s ’worldwidewhile ensur-ing that ourultimate objec-tive of Shariah-compliance isachieved at the same time.”

Mashreq Bank Head of Financial In-stitutions Division Mr. Faisal Lalanisaid: ‘I sincerely thank Mr. Ariful Islam

for enabling the development and final-isation of this product. Mashreq Bankhas benefited greatly by incorporating

this product into our list ofproduct offerings,

which we will nowpropose to our

other clientsas well”.“ M a s h r e qBank has al-ways beenone of ourvalued corre-s p o n d e n t

banks and itgives us im-

mense pleasure tobe the first bank to

sign up for this innova-tive product which is a one

of a kind sweep arrangement”, saidMeezan Bank SEVP & Group Head ofTreasury & Financial Institutions Ab-dullah Ahmed.

“We are thankful to Meezan Bankfor having faith in us and giving us anopportunity to service them. MashreqBank is one of the most innovative andleading provider of Islamic Treasury andCapital Markets solutions to Islamic In-stitutions. We look forward to do morefor Islamic banks in Pakistan.” said Di-rector Islamic Treasury and CapitalMarkets Fawad Taufique Mashreq Bank.

Meezan Bank provides a completerange of Islamic banking products andservices through a retail banking net-work of over 300 branches in 90 cities,supported by an extensive range of 24/7banking services. The Bank had beenconsistently recognized as the best Is-lamic Bank in Pakistan by various localand international institutions over thepast several years.

Mashreq Bank is one of UAE’s lead-ing and highest performing banks in theregion. The Bank operates with 12 over-seas offices in nine countries, includingEurope, US, Asia and Africa.

Meezan Bank inks deal with UAE’s Mashreq Bank on ‘Wakala’

Karachi

PPI

The ongoing crisis of energy partic-ularly load shedding of electricityand gas and frequent closures of gasstations in Pakistan has hit hard thesmall and medium sized enterprises,dealing a heavy to national economy.

Union of Small and Medium En-terprises (UNISAME) leaders toldChief Executive Officer (CEO) of theSmall and Medium Enterprises De-velopment Authority (SMEDA)Nawaz Ahmad Sukhera Provincialchief Muslim Raza, Deputy GeneralManager Mukesh Kumar and Man-ager Feroz Ahmad during a meeting.

UNISAME President ZulfikarThaver told the meeting that besidesthe law and order situation and en-ergy crisis the SMEs were unable to

function and were running in lossesdue to high cost of productioncaused by the increase in prices ofraw material and packing materialbecause of the dollar exchange rateand the increase in the prices of fuelwhich had made logistics costly.

He said that the SMEs need fi-nance at affordable mark up, land atconcession, uninterrupted supply ofraw material and energy. He addedthat there was a technological gapand the SMEs need to know aboutthe latest technology in their respec-tive fields. The SMEs need the facil-ities of leasing to buy commercialproperty, plant, machinery andequipment, raw material, incomegenerating vehicles to enable themrepay in the instalments under payas you earn scheme and urged theCEO to make strong recommenda-

tion to the government for promo-tion of soft leasing terms for SMEs.

The leasing companies werecharging high mark up because theythemselves were borrowing from thebanks and the SME Leasing a sub-sidiary of SME Bank was having in-sufficient funds to cater to theSMEs.

The participants stressed theneed for credit insurance to makethe banks comfortable in financingthe SMEs and issuance of SMEcredit card for the SMEs to enablethem purchase raw material andrepay on realisation of sale pro-ceeds.

Sukhera said he was planning towork for export promotion of Pak-istani goods on the one hand and theother for making SME units compet-itive in domestic market.

SMEs crash with crashing economy

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02

Wednesday, 16 January, 2013

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVER

Gillette Pak 118.49 124.41 118.49 124.41 5.92 1,500

Mithchells Fruit 377.00 386.00 370.25 375.13 -1.87 600

AL-Noor Suger 36.90 38.74 38.74 38.74 1.84 500

Quetta Textile 30.87 32.00 32.00 32.00 1.13 500

Kot Addu Power 50.27 52.78 48.02 51.39 1.12 4,930,500

Major Losers

Nestle Pakistan Ltd. 4775.00 4550.00 4550.00 4550.00 -225.00 20Rafhan Maize Prod. 3998.38 3798.46 3798.46 3798.46 -199.91 20Attock Petroleum Ltd 500.48 505.99 480.00 483.20 -17.28 19,100Millat Tractors Ltd. 609.03 610.00 585.00 593.79 -15.24 60,300Exide (PAK) 290.00 282.50 276.00 276.00 -14.00 500

Volume LeadersFauji Cement 7.04 7.15 6.54 6.66 -0.38 43,005,500Byco Petroleum 13.14 13.74 12.17 12.53 -0.61 20,127,000TRG Pakistan Ltd. 5.98 6.20 5.31 5.91 -0.07 18,454,500Jah.Sidd. Co. 15.11 14.99 14.11 14.13 -0.98 11,019,000Maple Leaf Cement 15.32 15.25 14.32 14.32 -1.00 6,567,500

Interbank RatesUS Dollar 97.4268UK Pound 156.7208Japanese Yen 1.0963Euro 130.3766

Forex RatesBUY SELL

US Dollar 98.70 99.40Euro 130.20 132.40Great Britain Pound 156.80 159.41Japanese Yen 1.0979 1.1155Canadian Dollar 98.69 100.98Hong Kong Dollar 12.43 12.75UAE Dirham 26.67 27.07Saudi Riyal 26.12 26.51

Australian Dollar 102.53 105.72

Business

Nokia Pakistan and

Talentidols present Nokia Asha

Big Idea Big App Competition

KARACHI: Nokia Pakistan collaborated withTalentidols.com, a competition portal & a productof KalSoft FZ LLC. to launch the Big Idea Big AppCompetition as part of its Nokia Ideas Projectcampaign.As a result of its partnership with Talentidols,Nokia Pakistan sought to generate original andcreative ideas for mobile phone applications in re-turn for some exciting prizes which include Nokiahandsets and sizeable cash prizes. PR

Samsung and TEVTA

courses attract great

response from students

KARACHI: Samsung Electronics Co. Ltd., aglobal market leader, has collaborated with Tech-nical Education & Vocational Training Authority(TEVTA) to offer specialised courses at the newtraining labs for; Mobile phones, Home appli-ances, Air conditioner/Refrigerators and WashingMachine/Microwaves in Lahore. These technologycourses were drawing an overwhelming response

from students.The institution had targeted to register 200 stu-dents for these courses, whereas the actual regis-tration figures exceeded 462 students byDecember 2012. More than 76 students have en-rolled in the Mobile phones division. The Televi-sions division comprised of over 75 students.Students registering for the Refrigerator and Air-conditioners course were more than 188. Whilethe Washing Machine & Microwave oven divisionhad attracted 123 students.PR

Pakistan-Korea cultural

exchange event

LAHORE: On the friendly invitation of The CitySchool, Allama Iqbal Town Branch, a delegationfrom the Hi Friends organization of South Koreavisited the school yesterday. The Korean delega-tion comprised of 10 teachers and 40 students.The program was a remarkable and marvellousopportunity for the children of the two nations tolearn about cultures of each other and to createstrong bonding between the two countries. PR

Ajman Free Zone unveils

Smart Warehouses

KARACHI: In a significant step to boost itsgrowing appeal and commitment towards in-creased inward investments in the Free Zone andthe UAE on the whole, Ajman Free Zone unveilsSmart Warehouses, offering investors’ option torent warehouses units as small as 100 square me-tres and clients that require larger spaces have anoption of securing multiple units. PR

PIAREA president demands due

rise in pension of employees

KARACHI: Pakistan International Airlines’ Re-tired Employees Association (PIAREA) PresidentTahir Hassan while reminding PIA Chairman Lt.

General (retd) Asif Yasin Malik of his promise de-manded the due raise in the pension for the re-tired employees of the national airlines.He said the pension of the retired employees ofthe national airline was very low as compared tothe pensions of the employees of other govern-ment departments, therefore this discriminationshould be ended and a due raise in the pensionsbe made. PR

Commercial attaché of Turkey

to improve business ties

KARACHI: Ms. H. Betül Akin, Commercial At-taché of Republic of Turkey called on TradingCorporation of Pakistan (TCP) Chairman Mr.Tahir Raza Naqvi and informed him about the ex-isting business relationships between the twobrotherly countries. She informed that she was re-cently appointed in Karachi consulate and shelook forward to strengthen the commercial tiesbetween Pakistan and Turkey. Naqvi informed her about the business operationsof TCP for maintaining the strategic reserves ofessential agro commodities and intervention ofTCP in price stabilisation of core commodities,like Sugar, Urea and Wheat. He expressed thatstrong institutional linkages were important topromote the business interests of both the coun-tries. TCP chairman assured his full support toTurkish commercial attaché in carrying out herassignment.PR

Ground breaking

ceremony of SSIPR

Federal Urdu University has announced the for-mation of Pakistan’s first Pharmaceutical Re-search Institute with the name of “Sheikh SaboorInstitute of Pharmaceutical Research (SSIPR).”Prof. Dr. Muhammad Qaiser, The vice chancellorof Federal Urdu University of Science & Technol-ogy had proudly announced the formation of

SSIPR in Pakistan and hopeful to recognise andaccredited it globally. SSIPR will provide the facil-ity of Global Standard Bio-Pharmaceutical re-search and testing to the Pharmaceutical industryand also invite Ph.D students to complete theirthesis and conduct research in Bio-Pharmaceuti-cals. The institute will start functioning withinthis year.The ceremony was also attended by Sheikh SaboorAhmed, Dr. Qamar ul Haq, Registrar of FederalUrdu University, Dr. Ali Akbar Sial, Dean Facultyof Pharmacy of Federal Urdu University and Dr.Muhammad Saleh and Dr. Mirza Tasawur Baig. PR

(R to L): Chevron Pakistan Limited Brand Marketing

Specialist Hussan-ul-Muaab, Chevron Pakistan Limited Sales

Manager Retail & C&I North Shahzad Rizvi, Chevron

Pakistan Limited Country Representative Nadeem N. Jafarey,

McDonald’s Pakistan Director Marketing & Development

Jamil Ahmed Mughal and McDonald’s Pakistan Senior

Manager Real Estate Development Emraan Razi.

NBP inaugurates help desk

at Tahweel Al Rajhi

KARACHI: Recently NBP inaugurated helpdeskat Tahweel Al Rajhi - Al-Khobar Centre, EasternRegion, Saudi Arabia for Home Remittance Cus-tomers. SEVP/Group chief and NBP ExchangeCompany Limited chairman Khalid Bin Shaheen,inaugurated the helpdesk along with senior offi-cial of Al-Rajhi Bank and Tahweel Al-Rajhi. PR

CORPORATE CORNER

Bank Alfalah to post

Rs1.16 earning per

share for 4QCY12 Karachi

STAFF REPORT

As the result season sets in, the banksare going to announce their full-yearearnings for the calendar year 12, said areport issued by the Arif Habib Re-search Tuesday.“Among our banking sector sample, weare presenting our expectations forBank Alfalah Limited (BAFL) where thebank is expected to post net profit ofPKR 1,568mn (EPS: Rs 1.16) for4QCY12, exhibiting a major improve-ment of 46% QoQ (3QCY12 EPS: PKR0.80),” it said.This will take the overall bottomline ofBAFL to PKR 4,969mn (EPS: PKR3.68) in CY12, a significant 42% jumpYoY, as compared to PKR 3,503mn(EPS: PKR 2.60) recorded last year.Lower provisioning and marked growthin non-interest income were expectedto be the main reasons behind thebank’s impressive results in CY12. Ex-pected improvement in net interest in-come (+6%) and non interest income(+30%) were among the positives dur-ing the quarter. However, these wereexpected to have partially offset byhigher operating expenses (+13%).The bank’s net revenue for CY12 wasexpected to have surged 6% YoY to PKR47,089mn (CY11: PKR 44,298mn).Consequently, the net interest incomewas expected to have improved margin-ally by 2% YoY to PKR 19,005mnagainst PKR 18,611mn in CY11. This in-crease can be attributed to 10% YoYgrowth in average earning assets inCY12. In 4Q alone, the net interest in-come was forecast to be ~PKR12,313mn, up 6% QoQ from PKR11,599mn in 3QCY12. With this rise,bank’s net interest margin was ex-pected to remain at 4.6%. However, ris-ing interest expense (9% YoY) subduesspreads of the bank due to 15% YoYhike in average paying liabilities thatwas more than the growth in averageearning assets. Non-interest revenuesof PKR 6,974mn was expected to havegrown 30% YoY from the prior year.

LahOrE

APP

BEARISH trend prevailed in La-hore Stock Exchange yesterday asit shed 159.71 points, followingthe LSE-25 index opened with3929.81 and closed at 3770.10

points. The market’s overall situation, however,corresponded to an upward trend as it re-mained at 5.758 million shares to close againstprevious turnover of 1.935 million shares,showing an upward move of 3.822 shares.While, out of the total 96 active scrips 0 movedup, 54 shed values and

42 remained equal.Attock Refinery Limited, Engro Corpora-

tion Limited and Adamjee Insurance Companylost their per share value by Rs 5.65, Rs 3.70and Rs 3.26 respectively.

The Volume Leader of the day includedFauji Cement Company Limited with 2.492 mil-lion share, Byco Petroleum Pakistan with757,000 shares and The Bank of Punjab Lim-ited with 743,000 shares.

Meanwhile, Islamabad Stock Exchange(ISE-10) yesterday witnessed bearish trend asthe index was down by 23.87 points to close at3043.1 as compared to the previous day’s trad-ing.

Stock Analyst of Aba Ali Habib SecuritiesPvt Ltd, Zaheer Ahmed told APP that the pres-sure was seen in the local stock market due toprevailing political situation after the decisionof Supreme Court and staging of long march byMinhaj ul Quran chief Tahir ul Qadri.

“Investors have off-loaded major positionsin the market which they held a day earlier”, hesaid adding that even some of them preferredto remain sideline rather than taking new posi-tions. Ahmed said that the existing situation inthe market was temporary and the recoverywould be soon due to the expected positiveearnings to be announced by corporate sectorin the near future. Besides, the banking sectorremained the most traded in the local boursewhich was the positive indication for the futureof capital market, Stock Analyst informed.AKBL, PTC and BOP remained volume leaderswith volume of 10,000, 4,000 and 2,000 sharesrespectively.

Mobile phone subscription surpasses 121.6m

ISLAMABAD: Mobile phone subscriptions in the country hastranscended 121.6 million with cellular tele-density reached 68.8percent. As per statistics, till October last year, all cellular com-panies operating in the country added over one million sub-scribers to take the total base to 121,602,339 subscription. Mobilink led the market with 36,388,770 subscribers afteradding 314,782 customers in October 2012. APP

Bearish trend prevails in LSC,ISEg LSE sheds 159.71 points g ISE-10 sheds 23 points

LONDON: Global oil prices fell yesterdayafter President Barack Obama warned Repub-licans over the debt ceiling, with traders brac-ing for more US partisan bickering in thecoming weeks. In midday London deals, BrentNorth Sea crude for delivery in February de-clined nine cents to $111.79 a barrel.NewYork’s main contract, light sweet crude forFebruary or West Texas Intermediate (WTI),reversed 16 cents to $93.98 a barrel.“Crude oil prices have been in a consolidationmode on Tuesday morning, as the lack of the

agreement over the US debt ceiling and fur-ther build in the US oil crude stocks weighedfurther on market sentiment,” said Sucden an-alyst Myrto Sokou.“Brent oil currently trades around $112 perbarrel, while WTI crude oil consolidatesaround $94 per barrel.”President Barack Obama on Monday warnedRepublicans against using the debt ceiling as a“bargaining chip,” saying a failure to raise itwould sow financial chaos and send marketsinto a tailspin.APP

Oil prices slip on concerns over US debt ceiling

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