KHARIF 2012

Tuesday, 4 September, 2012

Dr Salman Shah electedLSE Board chairman

LAHORE

NNI

The Board of Directors of the lahore Stock Exchange limited(lSE) today elected Dr. Salman shah new Chairman of theBoard. Dr. Shah is a lahore based prominent Economist andholds a PhD in Finance and Economics from IndianaUniversity, Bloomington’s Kelley School of Business. Dr.Salman Shah is the CEO of Bridge Asia Financial Services.Earlier, he was the Finance Minister and Advisor to PrimeMinister on Finance and Revenue at Ministry of Finance,Government of Pakistan. He has also been on the Board ofDirectors of Pakistan International Airlines and AssociateDean at lahore University of Management Sciences. He hasalso served in various task forces of Government of Pakistan.After election a press conference was conducted where newlyelected chairman advised small investors to invest theirsavings into those companies that give handsome return. Healso briefed about the development of the country and saidthat Kashmir issue and increased poverty are the mainhurdles between the development of the country. Answeringa question regarding Pak-India cross border investments, hesaid that this will be profitable for both the countries. He saidthat targets of Demutualization won’t be achieved withoutbrokers’ involvement, therefore, he requested to the brokersof the Exchange to actively participate in this process.Managing Director of the lahore Stock Exchangecongratulated the new elected chairman of the lahore StockExchange and expressed his hope that under the guidance ofMr. Salman Shah, the Exchange will achieve the targets ofdevelopment rapidly using the vast financial experience ofthe chairman.

FRANKFURT

AFP

When the history books come to be written about theeuro, September 12, 2012 could well prove one of the

most significant dates in the life ofthe embattled single

currency.At 10:00 am

(0800 GMT)on that day,

the eight scar-let-robed judges

of Germany’s Ver-fassungsgericht or

Consti tut ional

Court will file into the courtroom in the southwest cityof Karlsruhe to decide whether German PresidentJoachim Gauck can sign into law the eurozone’s keycrisis-fighting tools.

German parliament already voted in favour of theEuropean Stability Mechanism (ESM) and the Euro-pean fiscal pact with a two-thirds majority at the endof June. But Gauck held off from completing the ratifi-cation process in face of a number of legal challengesfiled by the far-left Die linke party, a citizens’ initiativegroup called “more democracy” and a well-known eu-rosceptic from Chancellor Angela Merkel’s CSU Bavar-ian sister party, Peter Gauweiler.

They argued that the ESM — the EU’s permanent500-billion-euro ($627-billion) rescue fund — and thefiscal pact were incompatible with Germany’s“Grundgesetz” or Basic law because they are effec-tively forcing Germany to surrender its budgetary sov-ereignty without the necessary democratic backing.

By committing Europe’s biggest economy — and al-ready its effective paymaster — to the ESM, parliamentwas essentially exposing Germany’s public finances tounlimited risks should one eurozone country after an-

other topple under the debt crisis, they argued.And that meant German voters’ basic democratic

rights were being infringed upon. In addition, the crit-ics argued the ESM breaches the “no bailout clause” ofthe EU’s Maastricht Treaty, under which Germanyagreed to relinquish its revered Deutschmark on con-dition there would be no direct or indirect sharing ofeurozone members’ debt.

The ESM, which will replace the temporary Euro-pean Financial Stability Facility, should have been upand running by July 1. But it needs Germany’s share ofthe rescue money to function and has thus been heldup pending the Constitutional Court’s ruling.

On September 12 the court will not yet rule on theconstitutionality of either the ESM or the fiscal pact.

It will simply decide whether to grant temporaryinjunctions sought by the plaintiffs that will preventPresident Gauck from signing the legislation into lawuntil a final ruling can be made next year.

If the court dismisses the plaintiffs’ case, every-thing will be hunky dory: Gauck can sign the legislationand the ESM can at long last become operational,much to the relief of the financial markets.

ISLAMABAD

APP

NATIONAl Fertilizer DevelopmentCentre (NFDC) has announcedthat about 3.377 million tons ofurea including 0.425 million tonsof imported supplies would be

available against 3.214 million tons estimated de-mand, leaving an inventory of 0.159 million tonsduring on-going Kharif season.

The availability would also include 0.8 mil-lion tons of inventory and 2.152 million tons oflocal production.

Issuing details about the situation duringKharif-2012, the Centre in its latest summarysaid about 0.726 million tons of DAP would alsobe available in the market. The demand esti-mates are around 0.552 million tons, leaving aclosing balance of 0.173 million tons. Thus supplydemand situation in respect of both urea andDAP will remain satisfactory during Kharif 2012.

Regarding fertilizer off take during June-2012, it said total nutrients off take during themonth was about 0.592 million tons which in-creased by 96.9 per cent over June last year.

Nitrogen and phosphate off take increased by107.2 and 37.7 per cent respectively whereaspotash off take decreased by 16.9 per cent.

The summary further revealed that Urea offtake during June-2012 was 1.029 million tons,showing an increase of 109.1 per cent over June2011. The increase in urea off take was mainlydue to reduction in its company price by local fer-tilizer industry from Rs. 1,790 to 1,650 per 50 kg

bag of urea. The DAP off takewas 96,000 tons whichincreased by 40.6 percent over correspon-ding month of2011.

The sum-mary said pro-duction of allf e r t i l i z e rproducts dur-ing June 2012was about0.514 milliontons. Dis-patches of im-ported fertilizersfrom port were0.195 million tons,comprising of 0.132million tons of urea and63,000 tons of DAP.

During June 2012, pricesof all the fertilizers except TSP de-creased. During June 2012 prices of Urea Sonaand Urea tara decreased by 1.9 and 2.5 per centover May 2012 respectively.

Prices of DAP decreased slightly (1.3 %) whileprices of CAN, SSP (P) and SSP (G) decreased by1.0, 4.4 and 3.1 per cent respectively. However,price of TSP increased by 2.6 per cent over May,2012. The summary said the cumulative nutrientsoff take for first three months of Kharif 2012(April to June 2012) was 1.02 million tons, wit-nessing an increase of 17.4 per cent over the same

timeframe of last Kharif 2011. It also revealed that Urea off

take was 1.715 million tons(1.451 million tons last

year), with an increase of18.2 per cent.

The DAP off takewas 0.182 milliontons (0.153 milliontons last year),showing upwardtrend of 19.2 percent over Kharif2011.

About fertilizeroff take year on year

basis (July 2011 –June 2012), the sum-

mary indicates that totalnutrients off take during

2011-12 was 3.697 milliontons, showing a decrease of 6.0

per cent over previous year 2010-11.Nitrogen off take was 3.055 million tons

against 3.133 million tons during 2010-11 withdecrease of 2.5 percent. Similarly, phosphate offtake was 0.621 million tons against 0.768 milliontons last year, showing a decrease of 19.1 per cent.Potash off take also decreased by 33.2 per centcompared to previous year. In product terms,urea off take decreased by 0.8 per cent from5.765 million tons in 2010-11 to 5.722 milliontons in 2011-12. Off take of DAP also decreasedby 20.7 per cent from 1.325 million tons in 2010-11 to 1.051 million tons in 2011-12, it added.

Rest assured!Local industry to be protectedafter phasing out negative list

ISLAMABAD

APP

The local industry of the country would beprotected even after phasing out of thenegative list with India that is expected inDecember of the current year. Afterphasing out negative list, “we will shift tosensitive list under South Asian Free TradeAgreement (SAFTA) and this agreementwas made in provision of World TradeOrganization (WTO)”, said an official inthe ministry of commerce while talking toAPP. Of 1200 items in negative list, thesensitive list includes 700 items whichwere finalized after developing consensuswith India, he added. Moreover, thesensitive list also covers major sectorincluding automobile, pharmaceutical,agriculture and textiles. These itemscarried import duty from 25 per cent to 80per cent whenever any of these items isimported from India. Quoting example ofvehicle, he said that if any car wasimported from India, its cost would beequal to almost local manufactured unitafter paying duties. Besides, the localindustries were under progress of makingmore competitive before phasing outnegative list. Automobile sector is trying totransfer from Euro-I to Euro-II to competethe Indian market. European Countrieshas started to offer discount on the price ofmachinery after Pakistan took tradeinitiatives with India.

ISLAMABAD

APP

As much as Rs 60 billion have been proposed in theupcoming three-year Strategic Trade Policy Frame-work (STPF 2012 2015) for the Export Develop-ment Initiative.

“The fund has been proposed keeping in view thefinancial constraints of the government,” a top offi-cial told APP adding that the aim is to facilitate theexporters for boosting their exports and make themcompetitive with regional competitors like India andBangladesh. The official said that this fund was low-est as compared to the other regional countries.

He was of the view that if the government didnot provide this fund, it would be unjust for the ex-port industry adding that at a time when the tradedeficit had already reached to $21 billion, this sup-port is needed to help exports grow. Commentingon the previous trade policy, the official main-tained that the trade policy 2009-12 could not beproperly implemented due to paucity of funds.

He said that the Textile Ministry had de-manded the government funds of Rs 188 billion forthe implementation of the trade policy (2009 12)

for five years, but the ministry provided just Rs 23billion for three years.

Similarly, the Ministry of Commerce had de-manded Rs 27 billion for the proper implementa-tion but it was provided Rs.3 billion.

“The scarcity of funds was the main reason thatthe previous three year trade policy could not beimplemented,” they added

However, the new trade policy is focused onaddressing the new challenges and has been devel-oped while keeping in view the financial limitationsof the government.

D-day ahead

Trade policy envisages Rs 60b forExport Development Initiative

Urea supply > urea demand3.377m ton urea available against 3.214m ton estimated demand

Judgment day looms for euro

Oil down in AsiaSINGAPORE

AFP

Crude prices fell in Asia Monday with traders disappointedafter US Federal Reserve chief Ben Bernanke did notconfirm stimulus measures during a closely-watchedspeech, analysts said. New York’s main contract, lightsweet crude for delivery in October, shed 24 cents to$96.23 a barrel and Brent North Sea crude for Octoberdelivery fell 17 cents to $114.40. Crude markets weredigesting Bernanke’s speech at a central bankers’ summitin Jackson Hole, Wyoming on Friday, where he did notannounce a firm timetable for stimulus measures, IGMarkets said in a report. “Bernanke disappointed with noconfirmation of QE3 or details about its timing,” the reportstated. But the price fall was limited as Bernanke’s speech“was very monetary policy-heavy which many viewed aspaving the way for another round of asset purchasingsoon”. In his highly anticipated speech, Bernanke defendedthe Fed’s interventions of the past four years and signalledhe would be pushing for more when the Fed’s policy boardmeets in 12 days. “The economic situation is obviously farfrom satisfactory,” he said at the conference, adding thatthe central bank would provide additional policyaccommodation “as needed” for economic growth in theworld’s biggest oil-consuming country.

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Tuesday, 4 September, 2012

Major Gainers

COmpAny OpEn HIGH LOw CLOSE CHAnGE TuRnOvERWyeth Pak Limited 960.00 1008.00 995.00 1008.00 48.00 250Indus Motor Company274.50 288.22 278.00 288.22 13.72 72,300Bata (Pak) Limited 1111.00 1125.00 1060.00 1124.70 13.70 450Exide (PAK) 324.84 341.08 333.00 338.27 13.43 78,100Mithchells Fruit 346.25 359.00 354.99 359.00 12.75 300

Major LosersIndus Dyeing 400.19 380.20 380.20 380.20 -19.99 100Abbott Lab.XD 213.82 210.07 204.00 204.07 -9.75 27,000Colgate Palmolive 1355.00 1355.00 1340.00 1350.00 -5.00 500Javedan Corporation 90.20 86.10 86.10 86.10 -4.10 500Philip Morris Pak. 153.50 157.95 148.25 150.41 -3.09 46,300

Volume Leaders

P.T.C.L.A 18.04 19.04 18.75 19.04 1.00 21,193,500WorldCall Telecom 3.29 3.47 3.00 3.05 -0.24 13,738,500Telecard Limited 2.91 3.20 2.97 3.02 0.11 11,509,000Engro Foods Ltd. 71.75 74.99 70.90 73.05 1.30 9,567,500Maple Leaf Cement 7.27 8.27 7.25 8.26 0.99 9,231,500

Interbank RatesUS Dollar 94.6885UK Pound 150.3654Japanese Yen 1.2084Euro 118.9856

Dollar EastBuy SELL

US Dollar 94.50 95.00Euro 117.58 119.16Great Britain Pound 148.64 150.60Japanese Yen 1.1905 1.2060Canadian Dollar 94.57 96.32Hong Kong Dollar 11.96 12.18UAE Dirham 25.53 25.84Saudi Riyal 24.99 25.29Australian Dollar 95.40 98.12

Business

HONG KONG

AFP

ASIAN markets mostly rose Mon-day after more weak Chinesemanufacturing data fuelledhopes for fresh monetary easing,following hints from the US Fed

chief about similar moves in the United States.Tokyo slipped 0.39 percent by the break

but Hong Kong added 0.12 percent, Sydneygained 0.23 percent, Shanghai was 0.22 per-cent higher and Seoul put on 0.30 percent.

Fears over growth in China were stokedagain on Saturday when the official purchasingmanagers’ index (PMI) of manufacturing activ-ity fell to a nine-month low of49.2 in August from 50.1 inJuly, owing to slumping demandin the key export markets of Eu-rope and the United States.

A reading above 50 indicatesexpansion, while one below 50points to contraction.

It adds to rising concernsover China’s economic growthand comes despite Beijing cut-

ting interest rates and lowering the amount ofcash banks must keep in reserve as it looks toboost activity. China’s economy grew just 7.6percent in the three months to June, the worstperformance in three years and the sixth straightslowdown, while figures for trade, industrial out-put and retail sales in July were also weak.

The latest results will boost expectations ofanother cut to banks’ reserve requirements oreven interest rates. Global markets postedgains at the start of last month as dealers betthat central banks in China, Europe and theUnited States would announce fresh stimulusand easing policies, but the lack of action has

led to selling pressure inthe past few weeks.

In the United States,Fed chief Ben Bernanke

on Friday toldc e n t r a l

bankers thatstagnation in the

labour marketwas “a grave con-

cern” and sig-nalled he

would be

pushing for more help for the economy. Hiscomments led to speculation that the Fedwould undertake a third round of bond-buying,or quantitative easing, lifting US shares.

The Dow added 0.69 percent, the S&P 500rose 0.51 percent and the Nasdaq climbed0.60 percent. However, Mizuho Securitiessenior technical analyst Yutaka Miura toldDow Jones Newswires: “Although Bernanke’scomments left hopes in markets, we still findit difficult to foresee when and whether theFed will really take action.

“The external environment looks uncer-tain, with the Chinese economy deteriorating.Any aggressive bids may be limited.”

On currency markets the euro bought$1.2575 in early Tokyo trade from 1.2576 inNew York late Friday. The European currencyalso lost ground against the yen, trading at98.43 yen compared with 98.51 late Friday.

The dollar fell to 78.25 yen from 78.31 yen.Oil eased, with New York’s main contract,

light sweet crude for delivery in October, shed-ding 38 cents to $96.09 a barrel and BrentNorth Sea crude for October down nine centsto $114.48. Gold was at $1,689.80 at 0315 GMTcompared with $1,658.80 on Friday.

Etihad Airways named theofficial airline of the sixthpakistan SmE conferenceKARAcHi: Etihad Airways, the national airline of theUnited Arab Emirates, has been named as the OfficialInternational Airline of the sixth SME Conference 2012to be held in Karachi on September 5. PRESS RElEASE

ADB lauds kESC performance iSLAMABAD: The Asian Development Bank (ADB)has lauded the performance of Karachi ElectricitySupply Company limited (KESC) for taking severalsuccessful measures to reduce transmission and dis-tribution losses. “The KESC is on right direction as Ihave visited the company and am impressed by theway it is working to reduce transmission and distri-bution losses,” ADB’s Director General Private SectorOperations Department (PSOD), Philip C. Erquiagasaid Erquiaga, who was talking to a group of journal-ists here about the ADB’s engagements in privatesector investments in the country, informed that theBank has about $150 million investment in theKESC. PRESS RElEASE

Qatar Airways launches latestglobal sale at midnight

KARAcHi: Qatar Airways is offering customersin Qatar and around the world with great savingsto more than 100 destinations during its latestthree-day global sale. The 72-hour marathon sale,which starts at 0000 hrs on September 4, andends at 2359 hrs on September 6 offers customersthe opportunity to travel to a variety of destina-tions across Europe, Middle East, Africa, Asia,Australia and the Americas at very attractivefares. PRESS RElEASE

Studio Empoli launches a newrange of accessoriesLAHORE: Studio Empoli, one of the most wellknow shoe brands in the country has recentlylaunched a complete range of accessories shoe

horns and genuine leather wallets. These productsare manufactured in Milan. PRESS RElEASE

Bank Islami wipes off all itsaccumulated lossesKARAcHi: BankIslami Pakistan limited an-nounced its half yearly results yesterday by re-porting a profit after tax of Rs. 229 million. TheBank continued its upward trajectory by register-ing a growth of 22.6% in deposits, 21.6% in assetsand 80.1% increase in earning per share.

FumC listed in InternationalDirectory of medical CollegesFoundation University Medical College (FUMC)has been included in the International Directoryof Medical Colleges.

Glow launches super dosti package

KARAcHi: Glow – The trendiest cellular youthbrand of Pakistan announces the launch of ‘SuperDosti Package’ which allows Warid subscribers to

have 11 F&F numbers including one Super DostiNumber which will be free forever.

ApmIA head office inaugural ceremony

ISlAMABAD: An inaugural ceremony of AllPakistan Marble Industries Association (APMIA)Head Office was held in Islamabad yesterday. Pak-istan Stone Development Company (PASDEC),CEO, Mr. Ihsanullah Khan was the chief guest of theceremony.

Burger Hub, hubs it all!!!!!*

LAHORE: Burger Hub, a cosy burger joint tuckedaway in Vogue Towers on M.M. Alam Road, recentlylaunched with two new exciting burgers: ChicoJalapeno & Carne Jalapeno. These two burgers arebased on a fiery and spicy recipe, and are guaran-teed to get your taste buds stinging. PRESS RElEASE

Second Skin LaunchedLAHORE: Second Skin, a clothing line based onsemi-formal and formal designs, recentlylaunched at Object’s flagship store at Park Towers.PRESS RElEASE

CORPORATE CORNER

ASIAn mARkETS mOSTLy up on stimulus hopes

Pakistan Japan Business Forum, Chairman, Abdul Kader Jafferhosted a dinner in honor of out going Consul General of JapanMasaharu Sato, at his residence. Picture shows Sindh Minister SyedSardar Ahmed, former Foreign Minister Sahebzada Yaqub Ali Khan,Ghanwa Bhutto, State Bank of Pakistan, Governor, Yaseen Anwar,Consul Generals of United States, France, Indonesia, formerGovernor of Sindh Moinuddin Haider, and other guests.

After 3 successful seasons of Fashion Pakistan Week, the FashionPakistan Council is back with season 4 which will be held inKarachi from October 17th to 20th, this year.

LG opens game world for convenientaccess to wide range of smart tv gamesLAHORE: lG Elec-tronics (lG) yester-day announced thelaunch of its newSmart TV game por-tal, Game World. An-ticipating a new era ofdownloadable casual3D games, lG devel-oped Game World ex-clusively for itsCINEMA 3D Smart TVlineup. PRESS RElEASE

KARACHI

STAFF REPORT

Pakistan Automotive Manufacturers Association(PAMA) urged Economic Coordination Com-mittee (ECC) to take industry’s point of viewinto consideration before taking any decisionwith regards to proposed changes in CBU im-port rates or extra concessions to new entrants.

In a letter to Minister of Finance and ECCChairman Dr Hafeez Shaikh, PAMA DirectorGeneral Abdul Waheed Khan said the differentstakeholders of the automobile industry in-cluding motorcycle manufacturers and ven-dors should not be ignored for setting up anyfuture strategy for the industry. He said that itwas quite unfortunate that despite binding or-ders from the Finance Minister the concernedcommittee has not so far invited representa-

tives of the PAMA in the committee consti-tuted by ECC.

DG said Pakistan’s local motorcycle hasflourished and qualified to be an integral partof the economy with thousands of skilled work-ers and laborers but their representatives havenot been taken on board so far.

ECC should involve the stakeholders of thebillion dollar industry to move further towardsthe consistent development instead of unilat-eral decision that will lead to nowhere but de-struction of the industry.

Pakistan is among the top 20 motorcyclemanufacturing countries in the world produc-ing quality two wheelers of international stan-dards ranging between 70cc to 150cc based onmodern technology.

local automobile industry’s total installedcapacity (2011-12) was 2,500,000 while the

sales volume in 2011-12 was 1,600,000. The ca-pacity utilization in 2011-12 was 64 percent.The two wheeler penetration in Pakistan is12/1000 persons.

DG pointed out that the government recentpolicy shift to offer hefty duty concessions onimport of CBU is a great concern for local in-dustry. Any move in this regard will com-pletely destroy the entire existing localindustry, he added.

The government should make all its ef-forts to attract foreign investment but itshould not ignore the fundamental concept ofa level playing field for all existing and newplayers, he said and added PAMA is notagainst any foreign investment but withoutendangering the existing industry, it requeststhe government not to offer any duty conces-sion to a single player.

ECC urged to consult with local industry

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