PRO 26-06-2012_Layout 1 6/26/2012 2:35 AM Page 1
Tuesday, 26 June, 2012
Samsung vies to expand its Galaxy Page 02
ICCI wants the Raja to flaunt his kingship g
‘PM needs to take measures for economic uplift’ ISLAMABAD ONLINE
Country’s economy is facing serious challenges which are needed to be addressed for attaining macroeconomic sustainability and maintaining fiscal balance. The factors that need immediate attention of the new Prime Minister and his team includes energy crisis, decline in the rupee value, rampant corruption, high inflation, high interest rates and falling exports, Asad Farid, Acting President, Islamabad Chamber of Commerce and Industry (ICCI) made these remarks while commenting upon the current change in the political setup. ICCI Acting President said that for the past few years, among other problems, energy crisis has put severe dent on the economy but unfortunately no serious attempt was made for generation of electricity to meet current and future demands, as a result, along with industries, general masses are suffering a great deal.
Hell bent for leather g
Tanners concerned about proposed ban on crust leather export LAHORE APP
The Pakistan Tanners Association (Northern Zone) has expressed concern over the proposed restriction on export of crust leather, terming it an initiative detremental to the export sector. PTA Chairman Khawaja Muhammad Mehr Ali said here Monday the leather industry was among major contributers to the national economy, citing that all over the world leather was recognized as a high value-added industry. The proposed restriction on crust leather export would cause a huge loss of $500 million annual to country's foreign exchange, while more than 300,000 workers would lose job.
500 million dollars!!! g
The sum invested by telecom sector to expand services ISLAMABAD APP
The telecom sector has invested more than US $ 500 million during last one year which helped improved infrastructure and other projects to ensure expanded services in every nook and corner of the country. In addition, Universal Service Fund (USF) also invested Rs 3.5 billion during the period. Cellular mobile area contributed in major way in the investment. According to data released by Ministry of Information and Technology, as in the investment scenario explained, telecom companies have reduced Foreign Direct Investment (FDI) as compared to previous years because they have already laid down the required infrastructure. The investment included cellular with US $ 359 million, Long Distance International (LDI) with US $ 109 million, Local Loop (LL) US $ 19 million and Wireless Local Loop (WLL) with US $ 11million investment.
ANOTHER TRADE CHAPTER
Unfulfilled Promises, Volume 3, Chapter 12 Lo and behold, Indonesia-Pakistan Preferential Trade Agreement would be enforced by July 2012 as presidents of KCCI and PIBF scratch each other’s backs. KCCI chief also reiterated Pakistan’s desire to join ASEAN, a task which would be aided by Indonesian cooperation. This is precisely why he left no stone unturned in peddling puffed up numbers amid the relentless buttering up, reserved specially for the Indonesian contingent. KARACHI ZAIN ALI
ARACHI Chamber of Commerce & Industry’s President Mian Abrar Ahmad stated that Pakistan was interested in joining Association of South East Asian Nations (ASEAN) and in turn sought Indonesian support in this regard since both Muslim countries had deep-rooted brotherhood and relationship encompassed over decades. In a meeting with the Consul General of Indonesia Rossalis Rusman Adenan at KCCI, he voiced that signing of PTA on the occasion of 62nd anniversary of Pak-Indonesia Friendship was a hallmark to open new chapter of economic and commercial cooperation. KCCI believes that the Preferential Trade Agreement (PTA) would bring closure the business communities of both countries and would boost the bilateral trade ties. He hoped that the PTA would lead to Free Trade Agreement (FTA) sooner. As a result of PTA, Pak Indonesia bilateral trade could escalate up to $2 billion in the coming years from the current figure of around $800 million. Indonesia would be able to increase its export of crude palm oil to Pakistan whereas Pakistan could in turn export its value added textiles, carpets, fabrics, leather and export goods, chemicals, surgical, etc, he iterated. He urged for Indonesia-Pakistan joint ventures in crude palm oil and agricultural value added prod-
ucts. He also asserted upon the need of building trading blocks of Pakistan with Asian countries, ECO, Central Asian Republics and SAARC countries. He asserted Pakistan is located in between these three blocks and due to its geo-strategic position, Indonesia and the countries worldwide may be able to explore these blocks through Pakistan. To uplift the Pakistan economy he voiced to enhance regional trade. President of Pakistan-Indonesia Business Forum (PIBF) & former President KCCI Abdul Majid Haji Muhammad, while speaking on the occasion, reminisced that the diplomatic relations between two countries had been established in 1949 and both brother countries were indeed massive markets since tog e t h e r Indonesia and Pakistan formed over 400 million of Muslim population – which is over 1/3 of the entire Muslim population of the world. A number of Pakistani soldiers fought along-
side Indonesians in their struggle for independence. Indonesia was among the first countries to recognise Pakistan and soon after the partition of India its president, Sukarno also paid an official visit to Pakistan in 1950. He anticipated that Pakistan-Indonesia Business Forum would play a vital role in further enhancing and strengthening of the mutually beneficial trade ties between the business communities of two brother Muslim Countries. Consul General of Indonesia Rossalis Rusman Adenan recognised the vibrant role of the Karachi chamber with regards to promoting trade and industry, Indonesia-Pakistan bilateral trade and formation of Pakistan-Indonesia Business Forum (PIBF). He informed that the Indonesia-Pakistan Preferential Trade Agreement would be enforced by July 2012 and that the Indonesian Commerce Minister would be visiting Pakistan next month to meet his counterpart and discuss the implementation of PTA. He stated that Pakistan and Indonesia signed PTA on 4th February, 2012 whereby Indonesia agreed to offer market access to Pakistan on 216 tariff lines on preferential rate while Pakistan has offered 287 tariff lines.
Asians raise the European question g g
Asian shares ease as growth fears persist Eurozone crisis continues to gulp optimism on the Asian front SINGAPORE AGENCIES
Asian shares fell on Monday and the safe-haven dollar rose as concerns about faltering global growth and Europe's intractable debt crisis continued to sap investor confidence, but commodities steadied after a pummelling last week. The euro also fell, despite moves late last week to ease funding strains on the euro zone banking system, as markets remained unconvinced that a European Union summit on June 28-29 will make substantial progress towards resolving the crisis. "On the European side, you have concerns about the summit. It's not as if they have not had the repeated chances to get together to talk about this," said Nicholas Smith, Japan strategist at CLSA. MSCI's broadest index of Asia Pacific shares outside Japan fell 0.8 percent, with South Korean shares losing more than 1.5 percent as index heavyweight Samsung Electronics tumbled as much as 4 percent after brokers cut their second quarter profit outlook for the firm. Growth-sensitive sectors were hardest hit, with the MSCI index's tech, energy and material subindex all shedding more than 1 percent, while only the defensive telecoms and utilitiessectors gained ground. Tokyo's Nikkei share average held up better than most regional markets, as a weaker yen supported Japan's exporters, but was still down 0.1 percent after starting the day in positive territory. U.S. stocks had rebounded more than 0.5 percent on Friday, but Wall Street index futures were trading down around 0.5 percent in Asia, suggesting the gains may be short-lived.
Investors worry that Europe's debt crisis is adding to the slowdown in global economic growth, especially after a flurry of data last Thursday showing weakness in global manufacturing.
SUMMIT TO TALK ABOUT The euro slipped around 0.2 percent to about $1.2535, while the dollar rose around 0.1 percent against a basket of major currencies. Analysts at Barclays Capital expect the summit will yield more strong rhetoric in support of a roadmap towards tighter fiscal integration, rather than a definitive solution. "This may disappoint markets to some extent. We prefer remaining long USD over the week especially against European currencies," they wrote in a note. The European Central Bank is to start accepting a wider range of collateral in its lending operations and assets of a lower quality, it said on Friday, its second such move in six months to neutralise growing funding pressures on struggling banks. But investors remain fearful that the crisis is spreading to the euro zone's bigger "peripheral" economies. Both Spain and Italy are finding it increasingly hard to finance themselves in bond markets and still have a lot of money to raise to meet their funding requirements. Italy's 10-year government bond yields are currently around at 5.8 percent with equivalent Spanish debt at 6.55 percent. Their Treasuries will both be hoping that European leaders do enough to encourage buyers. "The success of the summit can probably best be measured by whether it achieves a meaningful and lasting decline in Spain's bond yields," Ric Spooner, chief market analyst at CMC Markets in Sydney, said in a note.
TRADERS REJECT FG DECISION: Karachi Chamber of Commerce & Industry’s President Mian Abrar Ahmad understood that the Federal Government is closing Karachi for two days in week which according to him was not acceptable and he iterated that KCCI rejected the proposal of the federal government in totality. He asserted that the proposal would not only ruin the trade and industry of Karachi, which generates 68 percent revenue for the national exchequer and handles 98 percent ports activities for the country. Therefore, he continued, any proposal to withdraw gas supply to trade and industry of Karachi would be rejected and would force the business and industrial community in general to act against the Sui Southern Gas Company (SSGC) and the Federal Government as Article 158 of the Constitution of Pakistan supported their contention. Likewise, any attempt to withdraw 300 megawatts from Jamshoro supply out of 650 megawatts be resented and would not be acceptable under any circumstances, he categorically stated. President KCCI said, “We also believe this is a deliberate and unconstitutional act not only to ruin the Karachi’s trade and industry but also to bring the industry at halt resulting in discontinuation of production and unemployment which will ultimately create unrest on the streets of Karachi further aggravating already fragile law and order situation in the city.”
There’s no stoppin’ the neighboutly love-in g
Indo-Pak trade to continue despite clashes at LoC: experts ISLAMABAD APP
Chairman Karachi Chamber of Commerce Mian Abrar Ahmed said trade between India and Pakistan cannot be stopped despite clashes at Line of Control (LoC). Talking to VOA, he said that international community is gripping energy crisis in near future and both India and Pakistan jointly face the problem. He said exchange of trades is in beneficial for Pakistan and India and both countries will contribute trade cooperation with Central Asian states. To a question, he said exchange of fire at both sides of LoC is a local issue as such incidents take place since independence and international community is pressurizing to reopen a hot border for Pakistan. Pakistan is in a position to combat such incidents and Pakistan is a nuclear country and both countries cannot afford any war in future, he added. Director General Cross LoC Trade and Travel Authority Muhammad Ismail also said normal traffic and trade is underway at two points but Rawalakot-Poonch point has been suspended for trade and traffic. He said there is no exchange of fire for the last two days and negotiations of army officials are underway and minor incidents will take place because troops of both countries are on border.
PRO 26-06-2012_Layout 1 6/26/2012 2:36 AM Page 2
Tuesday, 26 June, 2012
Exide Pak’s 60% dividend KARACHI APP
Exide Pakistan has posted a record profit after tax of Rs 320.145 million for the year ending March 31, 2012 and declared a final cash dividend of Rs 6 per share. According to financial results of the company despatched to Karachi Stock Exchange here Monday, the pre-tax profit also surged to Rs 500.926 million for the period under review against Rs 429.726 million last year.
Equities, euro spooked LONDON AGENCIES
European shares and the euro fell on Monday as persistent fears about Europe's debt crisis and fresh concerns about global economic growth soured investors' appetite for risk. Investors were sceptical that a June 28-29 European Union summit would make any substantial progress towards tackling the debt crisis, now in its third year and buffeting Spain, the region's fourth largest economy.
20pc plunge for mango exports? MULTAN APP
The Mango Growers Association feared a 20 per cent reduction in mango export this year due to loadshedding and political issues. Mango Growers Association President Maj (R) Tariq told APP here on Monday that mango export remained 1,25,000 tonnes in 2011which was likely to reduce to one lakh tonne during the current year year.
Euro falls in Asia TOKYO AGENCIES
The euro weakened in Asia on Monday as traders looked for safer assets amid concern ahead of a European Union summit this week in which leaders will try to agree a plan to address the continent's debt woes.
HONEY JARS LEFT, RIGHT AND CENTRE
Bears give a tutorial on euro debt crisis As global stocks fell, so did the morale and optimism of our investors, Bears, ever-ready to highlight the ramifications of the eurozone debt crisis, did the rest, as the KSE-100 index took an 89-point plunge… g
HE day saw the benchmark 100-share index decreasing by 88.62 points to 13,642.20 points as compared to the 13,730.82 after the previous session. Ahsan Mehanti, Director at Arif Habib Investments Limited., said that the stocks closed bearish courtesy concerns for fall in global stocks and commodities on euro-zone debt crisis. Shares of 324 companies were traded on Monday and at the end of the day a total of 74 stocks closed higher, 178 declined and 72 remained flat. The overall value of shares traded during the day was Rs 1.863 billion. The trading volumes at the ready-counter were recorded higher at 56.825 million shares against 84.863 million shares of the previous session. The trading value increasing to Rs 1.863 billion compared to Rs 2.972 billion of the previous session. The intraday high and low, respectively, stood at 13,776.76 and 13, 628.77 points. Market capitalisation declined to
3.482 trillion from 3.504 trillion. Limited foreign interest, uncertain Pak-US relations, power shortfall for industrial units and gas shutdown for fertiliser plants played the catalyst’s role in the bearish activity at KSE despite hopes for early settlement of security issues in the city, viewed Mehanti. KSE All shareindex ended the day at 9,608.94 points, down 61.18 points or 0.63 percent, KSE 30-index stopped the day at 11,774.81 points, down 91.73 points or 0.77 percent while the KMI 30-index slumped by 168.73 points or 0.71 percent to end the day at 23,596.37. Karachi Electricity Supply Company (KESC) was volume leader of the day, 8.303 million shares, followed by Engro Foods Limited, D.G.K Cement, Bank Al-Falah, Jahangir Siddiqi and Byco Petroleum with turnover of Rs 6.626 million, Rs 6.053 million, Rs 3.170 million, Rs 2.446 million and Rs 2.107 million shares respectively. The Colgate Palmolive and Philip Morris Pakistan, up Rs 45.08 and Rs 8.45, led highest price gainers while, Nestle Pakistan Limited and Exide Pakistan, down Rs 66.67 and Rs 9.90 respectively, led the losers.
Samsung vies to expand its Galaxy g
Eyes 10m mark for Galaxy S3 by end of July SEOUL AGENCIES
South Korea's Samsung Electronics, the world's largest smartphone maker, said Monday it expects to have sold 10 million of its newest Galaxy S3 model by the end of July, two months after its launch. J.K. Shin, head of the mobile communications division, said robust sales of the model would help Samsung's mobile business post a secondquarter profit bigger than the first three months. "We're getting more positive reviews for Galaxy S3 than the previous Galaxy S1 and S2 since the release in Europe, the Middle East and Southeast Asia beginning May 29," Shin said at an event to mark the phone's domestic release on Monday. He estimated that global sales of the new phone currently available in 147 countries -- would surpass 10 million next month, including about a million to be sold at home. "We're doing fairly well in emerging-economy markets... I think our second-quarter earnings will be
better than the first quarter's, despite the difficult economic situation in Europe," Shin said. The company, the world's biggest technology firm by revenue, posted a record net profit for all its divisions of 5.05 trillion won ($4.44 billion) in the first quarter, thanks largely to strong smartphone sales. The third version of the Galaxy S series offers face-recognition technology and improved voice-activated controls as well as a more powerful processor that lets users watch video and write emails simultaneously. It also has a 4.8inch (12.2-centimetre) screen that is 22 percent larger than the S2, while it can detect eye movements and override the automatic shutdown if the user is looking at the screen. Samsung shipped 44.5 million smartphones in the first quarter, exceeding the 35.1 million of US arch-rival Apple, according to market researcher Strategy Analytics in April. Samsung, embroiled in patent lawsuits in 10 nations with Apple, is pinning its hopes on the S3 to further erode its rivals' market share before the expected new version of Apple's iPhone 5 this year.
CORPORATE CORNER PACRA maintains the ratings of Bank Al Habib Limited KARACHI: The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Bank AL Habib Limited at rrAA+rf (Double A Plus) and rrAl+" (A One Plus), respectively. The ratings of two listed, unsecured subordinated TFCs issues of PKR l,350mln and PKR l,500mln and two privately placed, unsecured subordordinated TFCs issues of PKR 2,000m1n and PKR 3,000m1n have also been maintained at rrAA" (Double A). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
NTDCL starts internship training programme LAHORE: National Transmission and Despatch Company Limited (NTDCL) started one month Internship Training Programme, here today, more than 115 students of Public and Private Universities of the country joined with a view to enhance their technical and managerial skills. A ceremony
was held at WAPDA house to welcome the fresh internees and new inductees as Assistant Manager Human Resource in NTDCL. In his welcome addresses, Managing Director NTDCL Mr Rasul Khan Mahsud said that this training programme will play a vital role to enrich the academic career and provide them off hand opportunities and on job exposure, where knowledge from normal course work is applied in real terms.
The Designers multi-brand store opens its doors in Dubai LAHORE: The Designers Multi-brand store is Pakistan’s foremost multi-designer outlet carrying some of the country’s top designers including Karma, Kamiar Rokni, Rizwan Beyg, Umar Sayeed and Sonya Batla. In a short span of time, The Designers Multi-brand store, located on 26th commercial street, Karachi, has gained a reputation for being the premier shopping destination for all women looking for a prêt, formal or semi formal outfit. The Dubai store which will be opening up shortly is the first multidesigner store of its kind to launch in the UAE, and aims to be a one-stop shop for women in the Gulf region looking for top-ofthe-line Pakistani designer wear. The store
which is spread out over 3,500 square feet is located in an up market area of Dubai, situated right next to Emirates Hill. Even in Pakistan, The Designers multi-brand store has created a niche for itself due to its stellar line-up of designers and high quality of product. “The new store will focus on Pakistani designers and we will be taking stock from here. There isn’t a proper Pakistani platform for designers in Dubai and this is part of our expansion plan to open a multi brand store solely dedicated to Pakistani designers,” said Asad Tareen, CEO of The Designers. “We are taking top name designers with us for the opening of the store, and we are very confident of this line-up.”
Business 02 Major Gainers COMPANY
Colgate Palmolive Philip Morris Pak. Clariant Pak Linde Pakistan Ltd ZIL Limited
903.00 169.03 175.95 120.29 92.88
948.15 177.48 184.74 126.28 97.52
939.99 165.00 179.79 122.00 97.00
948.08 177.48 181.70 125.87 97.52
45.08 8.45 5.75 5.58 4.64
188 29,509 13,275 4,779 1,31
-66.67 -9.90 -6.99 -4.84 -4.06
123 4,987 31 1 29,083
Major Losers Nestle Pakistan Ltd. Exide (PAK) Siemens Pakistan Bata (Pak) Limited Packages Ltd.
4061.68 198.17 733.56 654.84 100.70
4099.00 188.27 726.57 650.00 99.90
3890.00 188.27 710.00 649.99 96.15
3995.01 188.27 726.57 650.00 96.64
Volume Leaders K.E.S.C. 2.83 Engro Foods Ltd. 68.09 D.G.K.Cement 40.16 Bank Al-Falah 16.94 Jah.Sidd. Co. 13.17
3.40 69.25 40.58 17.30 13.40
2.89 64.70 39.10 16.83 12.94
3.18 65.11 39.18 17.01 12.98
0.35 -2.98 -0.98 0.07 -0.19
8,303,460 6,626,374 6,053,099 3,170,034 2,446,538
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.4715 146.9315 1.1827 117.9949
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
94.50 116.82 145.67 1.1723 90.59 11.98 25.55 25.05 93.10
95.50 119.12 148.51 1.1950 92.86 12.26 26.02 25.48 96.36
Japan, Russia agree to support huge gas project TOKYO AGENCIES
Japan and Russia have agreed to throw their support behind a private-sector project to build a liquefied natural gas plant in Russia's Far East, a Japanese official said Monday. Japanese trade and industry minister Yukio Edano and Russian energy minister Alexander Novak signed a memorandum of understanding on the sidelines of an Asia-Pacific Economic Cooperation forum in St. Petersburg at the weekend, trade ministry official Tsutomu Kato said. The agreement concerns a plant in Vladivostok that is expected to produce 10 million tonnes of LNG annually -- or about 13 percent of Japan's annual imports -- from later this decade, Kato said.
LSE sheds 33.80 points LAHORE APP
Bearish trend prevailed in the Lahore Stock Exchange on Monday as it shed 33.80 points, following the LSE-25 index opened with 3478.42 and closed at 3444.62 points. The market's overall situation also did not correspond to an upward trend as it remained at 719,209 shares to close against previous turnover of 1.137 million shares, showing a downward slide of 418,066 shares. While out of the total 81 active scrips only 8 moved up, 50 remained equal and 23 shed values. Karachi Electric Supply Company, Byco Petroleum Pakistan and Pervez Ahmed Securities were major gainers of the day by recording increase in their per share value by Re 0.38, Re 0.22 nd Re 0.09 respectively.
Spain formally requests aid MADRID AGENCIES
Spain formally requested a rescue loan of up to 100 billion euros ($125 billion) from its eurozone partners in a letter released on Monday. No new figures were included in the request, after reports by independent consultants last week said Spanish banks could need up to 62 billion euros to survive a severe, three-year financial slump.
European stocks fall at open LONDON AGENCIES
LAHoRE: Hae Duck Lee- Head of Consumer Electronics division Samsung Electronics with Samsung CE team and Hyperstar team at first lucky draw for KHUL JA SAMSUNG held at Lahore.
Europe's main stock markets dropped at the start of trading on Monday, with London's benchmark FTSE 100 index down 0.27 percent to 5,498.92 points. Frankfurt's DAX 30 slid 0.54 percent to 6,229.43 points and in Paris the CAC 40 shed 0.57 percent to 3,073.26.