Friday, 21 December, 2012

KARACHI

STAFF REPORT

KARAChI Stock Exchange(KSE) achieved hat-trick ofhitting fresh historic all-time highs on Thursday asthe main index ended

above the never-seen 16,900 levels withmarket participation improving consider-ably after investors took keen interest inthe TRG Pakistan and Byco Petroleum.

The benchmark KSE 100-Indexgained 0.23 percent or 38.19 points toclose at 16,908.02 levels on Thursday asagainst close of 16, 869.83 levels reportedon Wednesday as both the TRG Pakistanand Byco Petroleum finished the day attheir upper circuit-breakers.

The KSE 100-Index completed thehat-trick of striking an all- time high, afeat very rare in the global stock markets,as it hit 16,858.68 levels on Monday,16,869.83 levels on Wednesday, and 16,908.02 levels on Thursday.

The KSE All Share Index moved up by0.24 percent or 28.38 points to end at11,954.27 levels on Thursday as againstWednesday ‘ s 11,925.89 levels, the KSE30-Index swelled by 0.2 percent or 27.76points to conclude at 13,737.08 levels onThursday as against Wednesday’s13,709.32 levels, whereas the KMI 30-Index increased by 0.19 percent or 55.38points to finish trading activities at

29,032.28 levels on Thursday when com-pared with Wednesday’s closing levels of28,976.9.

The Karachi Stock Exchange beganthe day amid a strong bullish rally whichhelped it go past the psychological levelsof 16,900 level within first hour of tradeand soon it hit the intraday highest levelof 16,916.99.

however, just like the past few trad-ing sessions, the main index faced stiff re-sistance at its intraday highest levels andplunged down before choppy trade keptit swinging both ways during which it hitthe lowest levels of the day of 16,869.60.

A renewed buying interest then de-veloped at the lowest levels which gradu-ally propelled the main index back intothe green zone and it came close to crossits intraday highest level before last-minute selling clipped some of the gains.

Market volumes bolstered by 71.474million shares to 185.426 million shareson Thursday as against trading of 113.952million shares recorded on Wednesday asByco Petroleum and TRG Pakistan con-tributed over 46 million shares together.

Market capitalization improved by10.498 billion rupees (110. 515 millionU.S. dollars) to 4.238 trillion rupees

(44.612 billion U.S. dollars) on Thursdaywhen compared with market capitaliza-tion worth 4.227 trillion rupees (44.501billion U.S. dollars) reported the otherday.

The Karachi Stock Exchange’s tradingvalue reduced by 528.876 million rupees(5.567 million U.S. dollars) to 3.737 bil-lion rupees (39.345 million U.S. dollars)on Thursday as against Wednesday’strading value of 4.266 billion rupees(44.912 million U.S. dollars).

As per the figures released by the Na-tional Clearing Company of PakistanLimited (NCCPL), the foreign investors

came up with net buying worth 43.885million rupees (0.447 million U.S. dol-lars) on Wednesday.

In broader market, a total of 368companies changed hands during thecourse of trading on Thursday whereprices of 173 issues ended in red ink, 167finished in green terrain, whereas valuesof 28 other scrips stayed unchanged atprevious trading session’s levels.

TRG Pakistan Limited was the toptraded company on Thursday withtrading of 35.260 million shares in itsscrip, followed by Byco Petroleum,Maple Leaf Cement, Lotte PakistanPTA Limited, Fauji Cement, DesconOxychem, NIB Bank Limited, FaujiFertilizer XD, Nishat Chunian, andEngro Corporation with turnovers of21.014 million shares, 14.604 millionshares, 9.454 million shares, 4.377 mil-lion shares, 4.372 million shares, 4.342million shares, 4.253 million shares,4.194 million shares, and 4.015 millionshares, respectively.

Colgate Palmolive was the top pricegainer of the day with increment worth49.98 rupees (52.61 U.S. cents) in its pershare price that ended at 1,399.98 ru-pees (14.73 U.S. dollars) while on theother hand Siemens Pakistan led themajor price shedders of Thursday withdecrement of 8 rupees (8.42 U.S. cents)a share to finish the day at 764 rupees(8.04 U.S. dollars).

KSE hits 16,900 mark as TRG, Byco shine

ISLAMABAD

inP

Liquefied Petroleum Gas (LPG) mar-keting companies hiked prices byRs10 per kg on Thursday.

LPG distributors associationChairman Irfan Khokhar announcedthe decision on behalf of the Gas mar-keting companies consortium. Fol-lowing the hike, revised prices ofdomestic and commercial cylinderswould be inflated by Rs100 andRs400 respectively.

It shall be noted here that thefresh hike in LPG prices is the third ina month. The association’s decision isin violation of an OGRA notificationwhich had decreed the price ceiling atRs125 per kg on December 08.

LPG Price Goes uP by rs 10 Per KiLoGramme

ISLAMABAD

OnlinE

The National Accountability Bureau(NAB) decreed the process for hiringof 3G and 4G consultants a violationof Public Procurement RegulatoryAuthority (PPRA) rules.

The Bureau advised PakistanTelecommunication Authority (PTA)to ensure compliance with PPRARules and summoned a report on De-cember 26. NAB Chairman in a letterto Secretary Ministry of InformationTechnology (MoIT) summoned thesecretary to give detailed presenta-tions on tax evasion, SMS GST eva-sion, Universal Services Fund (USF)and E-Governance and Auction ofBroadband frequency.

The Bureau asked MoIT to ex-plain violation of the rules by thecellular companies for charging 19.5percent SMS GST. NAB under itsPrevention efforts is endeavouringfor transparency and fair play duringtender processes of the projects,auction and procurements in closecoordination with the regulators.The exercise is aimed at strengthen-ing the regulatory mechanism in thecountry at large.

Consultants for 3G/4G in violation of PPRA: NAB KESC confirms

$50m shareholding

investment

of IFC, ADB

KARACHI

STAFF REPORT

The Karachi Electric Supply Company(KESC) confirmed investment grantsof $ 25 million each from the Interna-tional Finance Corporation (IFC) andAsian Development Bank (ADB).The investments made the two multi-lateral agencies equity holders ofKESC. IFC, a member of the WorldBank Group, and ADB subscribed toadditional share capital by increasingtheir original $ 50 million offer to $275 million. As per the loan financingagreement signed by the IFC and ADBwith KESC in 2010, the two interna-tional institutions had the right toconvert up to $ 50 million of theirdebt into equity before Dec 31, 2012.This debt financing was provided bythe two institutions to partly financethe KESC’s state-of-the-art and one ofthe most efficient power plants, the560 MW BQPS-II. This 560 MW planthas successfully been installed andcommissioned ahead of its plannedschedule. The endorsement by IFCand ADB is being hailed by the KESCas a positive omen for internationalinvestor confidence not only in theutility but also in the Pakistani econ-omy. In a statement issued on Thursday,

the KESC said the development re-flected confidence of the two leadinginternational financial institutions inthe way KESC was being run.

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02

Friday, 21 December, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERMithchells Fruit 354.11 371.81 370.00 371.81 17.70 1,100UniLever Pak 10075.53 10100.00 10089.00 10100.00 24.47 6,240Bata (Pak) 1350.00 1415.00 1325.00 1365.00 15.00 30Colgate Palmolive 1350.00 1400.00 1399.00 1399.98 49.98 2,100Blessed Tex. 117.00 119.99 112.00 119.99 2.99 3,000

Major LosersMurree Brewery 139.95 134.00 132.96 132.96 -6.99 6,300AL-Ghazi Tractors 245.23 242.00 239.00 239.00 -6.23 3,000Siemens Pakistan 772.00 768.20 764.00 764.00 -8.00 1,450Pak.Int.Cont. SD 269.93 274.09 265.05 267.48 -2.45 8,30J.D.W.Sugar 126.70 125.10 120.37 124.15 -2.55 2,000

Volume Leaders

Byco Petroleum 11.34 12.34 11.90 12.34 1.00 21,014,500Descon Oxychem 5.88 6.73 5.85 6.53 0.65 4,372,500Lotte PakPTA 7.36 7.74 7.23 7.54 0.18 9,454,500Fauji Cement 6.41 6.50 6.34 6.44 0.03 4,377,500Maple Leaf Cement 14.86 15.35 14.96 15.29 0.43 14,604,000

Interbank RatesUS Dollar 97.7148UK Pound 159.1872Japanese Yen 1.1583Euro 129.6578

Dollar EastBUY SELL

US Dollar 98.10 98.80Euro 128.88 130.39Great Britain Pound 158.24 160.06Japanese Yen 1.1493 1.1626Canadian Dollar 98.24 99.88Hong Kong Dollar 12.43 12.63UAE Dirham 26.53 26.81Saudi Riyal 26.02 26.26Kuwaiti Dinar 344.46 347.59

Business

NSR launches its winter collection

KARACHI: The fashion brand NSR launched an exciting andrefreshing winter collection mainly comprising semi formals andformals, all intricately embellished and based on a modern andcutting edge design sensibility. NSR co-owner and co-designerNosheen Rana said that “the NSR brand speaks to women whoare searching for stylish and elegant outfits based on a bright andrefreshing palette”. her sister Shabnam works with her to createunique and truly eye catching pieces. Nosheen added that “thewinter collection is truly modern and somewhat eclectic andbased on palazzo and harem pants created from floral, animaland abstract prints.” The designer duo has played with the lengthof shirts using studded Swarovoski and diamond-inspired motifsand buttons. A capsule collection of jersey dressed and jump-suits, all delicately embellished with fine embroideries, has alsobeen included in their current collection.

Etihad Airways bags four consecutive Oscars

KARACHI: Etihad Airways, the national carrier of the UnitedArab Emirates (UAE) grabbed the World’s Leading Airline awardfor the fourth consecutive year. The awards were announced at ablack-tie gala event hosted by Oberoi Gurgaon in New Delhi. Eti-had Airways Diamond First Class was also praised as the worldpremier flight cabins. The World Travel Awards were statuatedin 1993 to seek out and reward the very best travel organisationsof the world. In 2012, approximately 650,000 votes were cast bytravel professionals from 191 countries. The World TravelAwards have secured a top industry status and been named bythe Wall Street Journal as the “Oscars of the Travel Industry”.

Lucky Cement’s Green Supply Chain aces it

KARACHI: Lucky Cement Limited’s Green Supply Chain opera-tions and logistics were officially awarded at the 2nd Intl Shipping,Logistics and Supply Chain conference held at a local hotel inKarachi. The conference and the award ceremony was organized bythe Publicity Channel to laud companies that were making sustain-ability a core part of their supply chain strategies. Lucky Cementwas lauded for its proactive role at the environmental sustainabilityfront as the company has initiated a number of sustainability proj-ects like alternate fuel, energy conservation and plantation drives.In addition, the company’s in-house power generation units havebeen revamped to ensure environmental efficiency.

PSO adopts PNSC as its carrier

KARACHI: Pakistan State Oil (PSO) on Thursday boasted tobe the first national company to import POL products throughthe Pakistan National Shipping Corporation (PNSC) PSO fol-lowing the directives of the Economic Coordination Committee(ECC) which clearly states that all government organisationsshould designate the national shipping line i.e. PNSC as theirshipping partner. The national energy giant had recently signeda Contract of affreightment (CoA) with PNSC to transport Fur-nace Oil from foreign ports to Pakistani shores. Expected annualsavings by PSO are estimated to be approximately USD 25 mil-lion which shall translate into savings of USD 125 million in 5years time. Furthermore, from March 2013, the company willstart importing motor gasoline through PNSC on FOB basis.This will save another USD 10 million on an annual basis and innext 5 years estimated savings due to this arrangement are ex-pected to be USD 50 million.

CORPORATE CORNER

KARACHI

iSMAil DilAWAR

FAILING to dodge the ECC’s decreeon used cars, the dealers have in-creased the prices of five-year-oldimported cars up to 14 percent. Asurvey of more than 10 used car

dealers, including the auction price at SohrabGoth during last two weeks, reveals that theused car dealers have increased the price ofMira/Suzuki Kei up to Rs 55,000.

The price of Vitz/Passo has also been in-creased up to Rs 80,000; Axio’s price increasedby Rs 110,000; and Premio’s price was in-creased by Rs 160,000. It is worth adding thatthese old used cars are already being sold athigher prices than locally made zero metercars.

Pakistan Automobile Manufacturer Assem-blers Dealers Association (PAMADA) VicePresident Iqbal hussain Shah talking to thescribe said that “the price increase of old usedcars reflect that the dealers don’t pay any heedon the concerns of the consumer and are com-pletely bent upon fleecing the consumers. In-terestingly All Pakistan Motor DealersAssociation (APMDA) always portray them-selves as one of the well wishers of Pak-istani nation, seems quite busy inmaking profit from their im-ported used cars stocks/in-vestment. This clarifieshow much theylove commonman ofPak-

istan.” Prices of locally manufactured cars arestagnant from last 6 months and only hondaCivic’d price was revised after launch of its2013 model packed with additional accessoriesand features.

Meanwhile the US$ is touching new, highsand local car assemblers are absorbing most ofthe cost impact. Iqbal said that the local autosector of the country urged the government toconsider the strengthening of Japan’s Yenagainst US dollar in the last few years. he said“today, the disparity between Japan’s Yen andUS dollar is much low. One US dollar was of120 Japanese Yen in 2005, but since then theYen has strengthened and now in November2012 its value is 79 against one US dollar. Thiscalls for a revision of used car duty slabs whichwere fixed in 2005, so that the consumer canknow how they are being fleeced by the usedcars dealer mafia”. based on today’s value ofthe Yen, the proposed duty slabs for vehicles upto 800c is $6650 against the current fixed dutyof $4400 on a used car which was fixed on thevalue of Yen in 2005. Similarly, for vehicles of8001-1000cc, thep r o -

posed duty is $8312 against the fixed currentduty of $5500; for 1001-1300cc the proposedduty is $16625 against current fixed $11000;for 1301-1500cc the proposed duty is $23275against fixed current duty of $15400; for 1500-1600cc proposed duty slab is $28262 againstfixed current duty $18700; and for 1601-1800cc the proposed slab is $26184 against thecurrent fixed duty of $23100.

Pakistan Customs did not revise the Im-port Trade Price (ITP) on the imported usedcars, thus allowing dealers to import hugenumber of cars at concessional rates. Conse-quently, the non-revised and reduced duty onimported used cars caused huge inflows of carsin the local market at the expense of heavylosses to national exchequer. Iqbal thoughtthat it was high time for the government andthe nation to realize what is in the national in-terest. he appreciated government’s recent de-cision to cut down used car age limit from 5 to3 years and concluded that “this decision willwork as a new lifeline for the local auto indus-

try and new investment will come infrom new and existing

players.”

Prices of imported usedcars hiked by 14 PC

KARACHI

STAFF REPORT

Senate Chairman Syed Nayyar hussainBokhari postponed discussion on the Tax Laws(Amendment) Bill 2012 on Thursday.

The bill, introduced in the National Assem-bly on Dec 17 grants amnesty to those whododged the tax net and did not maintain arecord of their assets with the state’s treasury.

On a point of order, Senator Raza Rabbaniobjected tabling of the bill in the Upper houseof the Parliament, alleging that this was in vi-

olation of Article 73 of the Constitution as thebill was not laid simultaneously in bothhouses of the parliament. Reading out article73, Rabbani said that the y bill had to be laidbefore members of both houses of the parlia-ment simultaneously and the Senate wouldhave to send its recommendations to the Na-tional Assembly within 14 days. Rabbaniadded that the bill was introduced in he Na-tional Assembly on Dec 17 while it was tabledin Senate on December 20. he said that theSenate had been deprived of four days to lookinto the bill.

Leader of the Opposition Senator IshaqDar agreed with Rabbani on the matter andsaid that the bill was a serious violation of theConstitution. he also said that the governmentcannot declare any bill a money bill withoutverification of the Speaker National Assembly.Ishaq added that under the bill FBR had beengranted powers of the parliament to introducetax amnesty schemes

Minister of State for Finance Saleem h.Mandviwala said that the bill may be deferredfor Friday and the Finance Minister would an-swer the queries of the legislators today.

amnesty bill set on agenda for today

KARACHI

APP

Federation of Pakistan Chambers of Commerceand Industry (FPCCI) President Fazal QadirSherani appreciated government policies forpromoting exports.

In an interview with Radio Pakistan, hesaid that economic situation of the countrycould be improved by the joint efforts of thepublic and the private sectors. he urged thegovernment to consult business communitiesof all four provinces.

Mirza Ishtiaq Baig on the occasion saidthat President Asif Ali Zardari had lauded theFederation for achieving its target despite sev-eral challenges faced by the businesses com-munity. Talking to Radio Pakistan, MirzaIshtiaq said that the president had assured thatall obstacles faced by the business communitywould be nullified. he said that the govern-ment was focusing on the energy sector andtold that good news regarding the energy sectorwould be shared with the country soon.

FPcci lauds govt policies for increasing exports

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