01

BUSINESS

BSaturday, 30 March, 2013

Pak-China leadership focusing

on strengthening economic

ties. – Masood Khalid

KARACHI

STAFF REPORT

HOPES for change inthe political setupalong with strong for-eign inflows were themajor drivers of thecountry’s equity mar-

ket during the first quarter of calendar year2013 (1Q2013).

The market observers believe thatwhile the May 11 election are around thecorner, the equity investors were cau-tiously looking at the fast-changing politi-cal developments in the country. “Weanticipate market activity to hinge on po-litical temperature of the country,” viewedTopline analyst Nauman Khan.

The heightened investors’ confidencewas also attributed to significant reductionin the policy rate that had facilitated thefunds flows towards equity market, saidthe analysts.

The benchmark KSE 100-share indexposted a gain of 6 percent, 5 percent in dol-lar terms, during the quarter to close at

18,043 and overall market capitalizationreached Rs4.4 trillion or $45.2 billion.

“Though the index made a new high of18,185, on March 01, 2013, the marketcapitalization was still seven percent, 40percent in dollar terms, down from itsrecord high of Rs 4.8 trillion ($74.9 bil-lion) achieved on April 18, 2008,” saidKhan.

With index achieving our midyear tar-get of 18,000, we re-iterate that index canmake a new high by crossing 19,500 in cal-endar year 2013 as mentioned in our strat-egy note date December 12, 2012. AbruptPKR deprecation due to weakness in exter-nal account remains the major risk to ourassessment.

The positive momentum was accom-panied by higher traded volumes. During1Q2013, average daily traded volumesstood at Rs5.7 billion (US$58.4 million)which compares favorably with Rs4.5 bil-lion (US$46.6 million) recorded in the pre-vious quarter. The average traded volumesare the highest in last 12-quarters.

In terms of shares, average volumestood at 210.6 million which is up 25 per-

cent from preceding quarter, while arehighest since 1Q2008 (19-quarters high).

In addition to higher foreign buying,we believe increased participation by indi-vidual investors have also contributed toimproved depth of the market. Individualparticipation on an average improved to 50percent in 1Q2013 as against 48 percent inthe preceding quarter.

The foreigners, that hold $3.3 billionworth of Pakistan shares that is 31 percentof free-float and 8 percent of market capi-tal, remained net buyers in 1Q2013.

The offshore investors in the quarterbought shares worth $228 million and sold$158 million resulting in net buying of $70million as of March 28.

The numbers compare favorably with$65 million net inflow registered in previ-ous quarter.

Giving their future outlook, the ana-lysts reiterated that the market partici-pants were likely to cheer signs of changein the political setup. “Mid caps with highleverage and consumer related businesscan perform better than large caps in2013,” said Khan.

Equity market rallies 6% in1Q2013 as election nears

Though the index made

a new high of 18,185, on

March 01, the market

capitalization was still

seven percent, 40

percent in dollar terms,

down from its record

high of Rs 4.8 trillion

($74.9 billion) achieved

on April 18, 2008

ISLAMABAD

APP

Prime Minister Justice (R) Mir HazarKhan Khoso on Friday emphasized theneed to reduce reliance on external finan-cial assistance and mobilize internal re-sources to ensure sustainable economicdevelopment in the country.

The Prime Minister made these ob-

servations while reviewing the currentrevenue situation during a briefing givento him by the Federal Board of Revenue(FBR) at the Prime Minister’s Secretariat.

The Prime Minister was informedthat the revenue target that was set atRs.2381 billion for the current financialyear had been revised to Rs.2126 billion.The Chairman FBR informed the PrimeMinister that due to narrow tax base, fallin imports and the overall situation in thecountry, the FBR was experiencing diffi-culties in attaining the tax targets set bythe government.

Prime Minister Khoso was informedthat Rs 1,210 billion had so far been col-lected and efforts were being made toachieve the set targets. He said that theneed for finances cannot be overempha-sized and directed the FBR to make allout efforts to attain the revised target.

Mir Hazar Khan Khoso observed thatthe revenue collected by FBR so far warrantsimmediate attention and necessary measureneeded to be taken to meet the targets.

The Prime Minister sought proposalsand recommendations to augment rev-enue collection for the approval of thegovernment within the next three to four

days. The meeting was attended by thesenior officials of the Prime Minister’sSecretariat, the Federal Board of Revenueand the Ministry of Finance.

PM for mobilizing resources to ensuresustainable economic development

Due to narrow tax base,

fall in imports and the

overall situation in the

country, the FBR is

experiencing difficulties

in attaining the tax

targets set by

the government.

– FBR chairman

Sensitive Price Indicatorincrease by 0.49 percent ISLAMABAD: The Sensitive Price Indicator(SPI), for the week ended march 28 has regis-tered an increase of 0.49% over the previousweek for the lowest income group. The SPIfor the week under review for the above men-tioned group was recorded at 187.94 pointsagainst 187.02 points registered in the previ-ous week, according provisional figures fromthe Pakistan Bureau of Statistics. The SPI forcombined groups was up 0.49%; up from191.97 points in the previous week to 192.91points this week. The PBS data stated that theweekly inflation for the income group earningbetween Rs 8,001 and Rs 12,000 per monthwitnessed an increase of 0.50 percent, whilethe SPI for the mid-level income group earn-ing Rs 12,001 to Rs 18,000 per month wit-nessed a surge of 0.50 percent as compared tothe previous week. The SPI for the groupearning between Rs 18,001 to Rs 35,000 wit-nessed increase of 0.50% while for the seg-ment earning above Rs 35,000 showed surgeof 0.47%. PBS statistical data further re-vealed that average price of 17 items regis-tered increased. These items includes, onion,chicken live, sugar, bananas, cooked dal plate,garlic, motton, rice basmati broken, beef,cooked beef plate, moong pulsed washed, andcooking oil. 13 items that registered decreasedwere tomatoes, egg, potatoes, wheat, redchillies, veg ghee loose, gur, LPG (11 kgcylinder), wheat flour bag, masoor pulsewashed, and mustard oil. ONLINE

ISLAMABAD

STAFF REPORT

Nigeria would enhance two-way tradewith Pakistan to $1 billion by the end of2013by enhancing interaction between thebusiness communities of both the coun-tries.

This was stated by High Commis-sioner of Nigeria to Pakistan Dauda Dan-ladi Mni while addressing businesscommunity at Islamabad Chamber ofCommerce & Industry (ICCI). He at-tached great importance to boost eco-nomic interaction with the Governmentof Pakistan, particularly the businesscommunity.

High Commissioner said that Niger-ian economy largely dependent on oilwhich accounts 40% of country’s GDP,90% of its export revenue and 80% ofgovernment’s budget. He said that Nigeriais amongst the Africa’s 10th largesteconomies that contribute 77% of Africa’sGDP. He said that in order to boost foreigninvestment, Nigerian government created

free zone in its territories to favour foreigninvestments as no custom duty applicablewithin the free zone.

Dauda said that trade withNigeria is also quite bene-ficial for Pakistan asNigeria canserve as awindowo f

business opportunity to the whole of WestAfrica. He said that great opportunities are

being explored by the NigerianHigh Commission in the area

of Agricultural machin-ery like tractors,

Pharmaceuti-cals and

export

of garments including electro-medical ap-paratus to Nigeria from Pakistan.

He further said that Nigeria offersgreat investment opportunities to Pakistanin a number of areas including oil and gas,minerals and mining, agriculture and live-stock, poultry and fisheries.

Speaking on the occasion, ZafarBakhtawari, President ICCI said that Pak-istan and Nigeria are very important coun-

tries of Asia andAfrica with verystrong potential to rise and lead their

respective regions but unfortu-nately both countries have beenfacing issues which could besolved by devising a common strat-egy.

Bakhtawari said that Pakistanwant to enhance its trade and eco-nomic relation with Nigeria, thereforeboth the countries must practice lib-eral visa policy and grant multiple visaof at least 5years to businessmen of

Nigeria and Pakistan so that they couldvisit each other’s country freely and en-hance their mutual relations.

Nigeria to enhance trade with Pakistan to $1b by 2013 end

ABL earns Rs8.3bnfor conventional,Shariah-compliantbanking in CY12KARACHI: The Bank Alfalah Limited

(ABL) posted a cumulative profit before

tax of Rs 8.3 billion for its conventional

and Shariah-compliant banking in the

calendar year 2012. This was observed

during the bank’s 21st Annual General

Meeting (AGM) held here Friday.

Chaired by Abdullah Khalil Al Mutawa,

the meeting was attended by other

board members including Khalid Mana

Saeed Al Otaiba, Ikram Ul Majeed

Sehgal, Nadeem Iqbal Sheikh and Atif

Bajwa, CEO ABL, as well as the bank’s

shareholders. The shareholders were

informed that the bank earned a profit

before taxation of Rs 6.783 billion for

the year 2012, as compared to Rs 5.434

billion in 2011, registering a significant

rise of 24.8 percent. The bank’s

deposits grew from last year by 14

percent to Rs 457.119 billion. Total

gross advances increased from Rs

211.397 billion to Rs 248.346 billion

reflecting a year-on-year growth of 18

percent. The net investments increased

by 13.8 percent during the period under

review. The overall balance sheet

growth has been 14.6 percent in 2012.

The current Capital Adequacy Ratio is

12.67 percent for the year 2012. The

bank’s Islamic banking group has made

strides right from inception and in 2012

generated a profit before tax of Rs

1.517 billion for the year. “I am pleased

that our key performance indicators for

2012 indicate promising results and

growth in an increasingly difficult

environment,” CEO ABL Atif Bajwa told

the AGM. STAFF REPORT

Urea off-take down19% in FebruaryKARACHI: The urea off-take during Febru-ary registered a massive decline of 19 percentstanding at 419k tons during the month in re-view, said the market observers Friday. Theurea availability on the other hand declinedby 23 percent on MoM basis to 590k tonsduring last month, said InvestCap analystAbdul Azeem. Overall, he said, urea produc-tion declined by 10 percent MoM to 306ktons while the imports were at 27.6k toneslevels. The FFC’s off-take declined by 15percent to 179k tones (+51 percent YoY in2MCY13) similarly the Engro’s off-take de-clined by 31 percent to 84k tones (+210 per-cent YoY). However, FATIMA’s off-takestepped up by a massive 106 percent to 30ktones. During Jan-Feb13 total urea off-takestood at 936k tons compared to 770k tonsduring the same period last year, showing anincrease of 22 percent. Of the total, the off-take of imported urea stood at 282k tonesduring 2MCY13 contributing 30 percent.During Feb-13, off-take of DAP posted a de-cline of 57 percent to 76.5k tons while during2MCY13 the product’s off-take stood at76.5k tones, showing a huge increase of 88percent. Similarly, the production of DAPjumped by a gigantic 133 percent to 89.8ktons. However, as far as overall DAP avail-ability is concerned, the latter declined by 11percent to 230k tones during Feb-13.During Feb-13, Abdul Azeem said, the retailprices of urea stood at Rs 1,745 per bagshowing an increase of 1.3 percent, while theretail prices of DAP declined by 0.8 percentto Rs 3,925 per bag.While the DAP prices mostly move in linewith international prices, the price of urea isexpected to remain stable in the near future.As the gas available from the explorationcompanies would be on higher rate as com-pared to gas available from SNGPL networktherefore leaving no room to reduce pricesin the present high cost of production sce-nario. STAFF REPORT

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PESHAWAR: Mir JavedHashmat, Acting

Managing Director Bank of Khyber (BOK),

addresses the 22nd Annual General Meeting

(AGM) of Shareholders at BOK Head Office. PR

SSGC inks MoUs for CSRKARACHI: SSGC inked Memorandums of

Understanding (MoUs) related to the Company’s

Corporate Social Responsibility initiatives for FY

2012-13, with eleven partner organizations in an

exclusive ceremony held at the Head Office on

March 27. Picture shows Zuhair Siddiqui, MD,

SSGC (6th from left), Sr. General Manager

(Corporate and Legal Affairs ) (7th from left) and

Nasreen Hussain, DGM (Corporate

Communications) and head of CSR Unit (far right)

with the senior officials of the educational

institutions and NGOs collaborating with SSGC,

after the exchange of MoU documents. PR

Allied Bank approves 65%

cash dividend, 10% bonus

LAHORE: The 67th Annual General Meeting (AGM)

of Allied Bank Limited was held on Wednesday,

March 27, 2013. The meeting was chaired by

Mohammad NaeemMukhtar, Chairman Board of

Directors and was attended by the Directors, SBP

representatives, various institutional investors and

number of individual shareholders. The external

auditors and Bank’s Share Registrar were also

present in the meeting. The Shareholders adopted

the annual accounts of the Bank for the year 2012

and accorded approval for the payment of final

cash dividend @ 20 percent, i.e., Rs. 2.00 per

share. This would be in addition to the interim cash

dividends already paid aggregating Rs. 4.50 per

share, i.e. 45 percent, thereby increasing the total

cash dividend for the year 2012 to 65 percent. The

shareholders also approved issuance of 10 percent

bonus shares. PR

65th AGM of MCB Bank

approves 30% cash dividend

and 10% Bonus Issue

KARACHI: The 65th Annual General Meeting of the

shareholders of MCB Bank Limited under the

chairmanship of Aftab Ahmad Khan has approved

the recommendation of Board of Directors for final

cash dividend @ 30% and 10% bonus issue.

The chairman informed the members that MCB

completed yet another remarkable year in terms of

financial performance and growth. The Bank

reported profit before tax of Rs. 32.054 billion and

profit after tax of Rs. 20.941 billion with an

increase of 2% and 8%, respectively. Net markup

income of the Bank was reported at Rs. 40.856

billion whereas non-markup income came to Rs.

9.153 billion. Non-markup income registered an

increase of Rs. 1 billion (13%) owing to 16%

increase in fee, commission and brokerage income

and 19% increase in dividend income during the

year. Earnings per share (EPS) for the year came to

Rs. 22.77 compared to Rs. 21.12 for December 31,

2011. Return on assets came to 2.95%, return on

equity was recorded at 25.07% and book value per

share improved to 95.84.

Total assets of MCB Bank Limited grew by 17% to

Rs. 765.899 billion. The analysis of the asset mix

highlights 27% increase in investments to Rs.

402.069 billion and 5% increase in gross advances

to Rs. 262.392 billion. The quality of asset saw

considerable improvement as the non-performing

loans of the Bank reduced by 4% to Rs. 25.562

billion reflecting improvement in infection ratio as

at December 31, 2012.

The deposit base of the Bank grew by 11% closing

at Rs. 545.061 billion with 18% increase in saving

deposits, 13% increase in current deposits and

12% decrease in fixed deposits. CASA base, as a

result has further strengthened to 85% compared

to 81% last year.

The administrative block of the Bank registered an

increase of 10% over 2011, which considering the

inflationary pattern followed during the year, falls

within the acceptable levels. The provision charge

of the Bank decreased significantly by Rs. 3.176B,

primarily on the back of strengthened risk

management framework. PR

NFEH organizes Fifth Int’l Summit on CSR

KARACHI: Former federal information minister

Javed Jabbar has said that corporate organizations

have started contribution in social development

which is a good omen but they need to do more in

this regard. This he said while addressing at the

5th international summit on CSR 2013 organized by

National Forum for Environment (NFEH) with the

support of United Nations Environment Program,

Karachi Chamber of Commerce & Institute of Cost

and Management Accountants of Pakistan, at a

local hotel. Javed Jabbar said that corporate sector

gives lot of jobs and also spending on education,

health and training of people. CSR should be linked

to corporate fiscal responsibility and organizations

should file their tax returns, he said. FPCCI and

other big organizations should make a statement

that how much money corporate sector is

contributing in social development. A low amount

of money is being spent on social science research,

which should be raised, he stressed. Jabbar said

that Zulfikarabad project has been launched

without conducting basic environment assessment.

We pointed out authorities but they did not respond

positively, he added. “FBR has declared that 300

textile mills are not paying tax returns in due

manner. Organizations must pay tax returns so as

to ensure their contribution in social sector

development, Javed Jabbar concluded. Muhammad

Haroon Agar, President KCCI, said several

organizations are providing food and other social

services to people in Karachi. He said that Pakistan

bureaucracy do not want our economy to grow. He

said CSR can be simply defined as achieving

commercial success in ways that honor ethical

values and respect people, communities, and the

natural environment. PR

MAN Diesel & TurboPakistan expands servicefacilities in Lahore

LAHORE: With a launch event, MAN Diesel & Turbo

Pakistan announced the expansion of its premises in

Lahore. At the same time the company joins hands

with its sister company MAN Truck & Bus for the

launch of the commercial vehicles division in

Pakistan and its latest product, the TGS WW. The

MAN location in Lahore will be the first where the

two sister companies reside under one

roof. The event was attended by the

President LCCI (Lahore Chamber of

Commerce and Industries), Mr. Farooq

Iftikhar and many high esteemed VIP

guests from the local trade business.

H.E. Mr. Axel Wech, Ambassador of

Austria represented together with the

Hon. Counsel of the German Embassy,

Mr. Anees Ur Rehman, the two home

bases of MAN. MAN Diesel & Turbo

Pakistan’s exceptional performance

and impeccable credentials were key

factors when MAN Truck & Bus decided

to choose its representative in

Pakistan. We see Pakistan as an

important market with a lot of

potential”, says David van Graan, Head

of MAN Center Middle East and Vice

President Sales and Marketing. “I am

confident that we can deliver a world

class value proposition through MAN

Diesel & Turbo Pakistan backed by a

MAN trained service team, customer

oriented mind-set, and our innovative

brand heritage to emerge as the

leading player in Pakistan’s commercial

vehicle industry.” MAN Diesel & Turbo

Pakistan started in Lahore in 2008 and

currently offers its customers after

sales services for large bore diesel

engines and turbomachinery, including

workshops and field service activities.

Pakistan is a significant market for

both marine and power applications of

MAN Diesel & Turbo. The 225 MW Atlas

Power Plant in Lahore with eleven MAN

18V48/60 engines and a ten-year

Operation & Maintenance contract

along with 225MW HUBCO Power Plant

in Narowal with same number of

engines and a six-year long term

service agreement are important

reference for the power generation business, for

instance. PR

PMEX and Tameer

Microfinance Bank sign MoU

KARACHI: Pakistan Mercantile Exchange Limited

and Tameer Microfinance Bank Limited (TMFB)

signed a MoU on introducing a gold-based

investment product. The MoU was signed by Mr.

Amjad Khan, CEO PMEX and Mr.Tariq Mohar, Deputy

CEO, Tameer Bank in the presence of Mr. Shazad

Dada, Chairman PMEX & CEO Barclays Bank PLC,

Pakistan and representatives from both

organizations at the PMEX Office in Karachi. A press

release issued after the event stated that the PMEX

and TMFB have developed an understanding that

TMFB shall introduce and provide an E-Gold

products through the trading platform of PMEX to its

customers. The investors shall be able to buy/sell

gold through TMFB branches/agents and Branchless

banking Channels using their Mobile Accounts (M-

Wallet) through the trading platform of PMEX. The

proposed product offered by PMEX and TMFB will

give an opportunity to the common man to invest in

Gold with trust, security and convenience. PR

P&G Pakistan launches its SocialCommitment Report 2013KARACHI: P&G Pakistan recently announced the

launch of its Social Commitment Report - 2013 at

its Annual Stakeholders’ Dinner reception hosted by

Mr. Faisal Sabzwari, Country Manager P&G

Pakistan. The report encompasses P&G’s efforts to

touch and improve lives of Pakistani children in

need through its Live, Learn and Thrive (LLT)

corporate cause. P&G’s LLT program focuses on 3

aspects of a child’s development. It aims to provide

children with: i) opportunities that can help ensure

a healthy start to life through safe drinking water,

nutrition and hygiene programs, ii) access to

educational facilities, tools and programs that

enhance the ability to learn by building schools and

providing supplies and iii) programs that build self-

esteem, life skills, inter-personal skills and

independent-living skills for disabled children. PR

Soneri Bank declares aftertax profit of Rs1104.19mKARACHI: The annual financial statements of

Soneri Bank Limited for the year ended 31

December 2012 were approved by the shareholders

of the Bank in its 21st AGM held on Thursday, 28

March 2013. The meeting was chaired by Mr.

Alauddin Feerasta, Chairman of the Bank. Bank

declared Rs.1, 104.19 million after tax profit for the

year ended 31 December 2012 which is up from

Rs.783.53 million for the year 2011. This was

mainly driven by growth in net mark-up / interest

income which registered a growth of 23.81 percent.

During the year bank declared 11 percent bonus

shares amounting to Rs.993.21million increasing

the paid up capital to Rs.9, 021.03 million, thus

complying with the Minimum Capital Requirement

of State Bank of Pakistan. PR

Profitable year for world’sfirst equity allianceKARACHI: Etihad Airways heralded a successful

first year of its equity alliance strategy, after a

financial reporting season which saw each of the five

airlines within the alliance – airberlin, Air Seychelles,

Virgin Australia, Aer Lingus and Etihad Airways –

announce profitable performance. The airlines’

individual and collective results were boosted by a

number of measures, including growing codeshare

traffic between their networks, successful joint sales

and marketing efforts, and a range of increasing

business and cost synergies. James Hogan, Etihad

Airways’ President and Chief Executive Officer,

welcomed the success of the airlines. PR

UMT hosts 4th Conference

on Textile and Clothing

LAHORE: The School of Textile and Design at

University of Management and Technology (UMT),

Lahore, hosted the 4th International Conference on

Textile and Clothing (ICTC) 2013 today, at Lahore

Expo Center. This conference has brought together

renowned conglomerates and experts from UK,

Germany, China, and Italy at a single platform to

discuss a diverse range of topics such as nano-

science in textiles, non-wovens, geo-textiles,

conductive textiles, recyclable textiles. PR

BUSINESSSaturday, 30 March, 2013

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERNestle Pakistan Ltd. 5499.00 5773.95 5500.00 5773.95 274.95 40Colgate Palmolive 1741.11 1828.16 1825.00 1828.16 87.05 1,150Island Textile 902.50 945.00 945.00 945.00 42.50 100Wyeth Pak Ltd XD 850.00 892.50 849.00 892.50 42.50 20,100Rafhan Maize XD 3750.00 3790.00 3562.50 3790.00 40.00 2,140

Major LosersUnilever Food 4400.00 4250.00 4250.00 4250.00 -150.00 20Sitara Chemical 193.00 190.25 187.00 187.97 -5.03 54,500Sapphire Fiber 185.00 180.00 180.00 180.00 -5.00 200J.D.W.Sugar 88.75 85.00 85.00 85.00 -3.75 1,200Service Industries 170.00 169.00 165.00 167.70 -2.30 1,900

Volume Leaders

Wateen Telecom Ltd 3.84 4.42 4.05 4.20 0.36 28,348,500P.I.A.C.(A) 7.23 7.79 7.26 7.76 0.53 22,035,000Maple Leaf Cement 16.76 17.76 16.89 17.76 1.00 14,721,500TRG Pakistan Ltd. 7.46 8.15 7.45 7.86 0.40 14,482,000P.T.C.L.A 19.90 20.58 19.87 20.30 0.40 11,860,000

Interbank RatesUSD PKR 98.4290GBP PKR 149.5431JPY PKR 1.0461EURO PKR 126.1662

ForexBUY SELL

US Dollar 98.85 99.10 Euro 125.08 125.34 Great Britain Pound 148.04 148.32 Japanese Yen 1.0309 1.0417 Canadian Dollar 95.32 97.02 Hong Kong Dollar 12.39 12.65 UAE Dirham 26.60 26.85 Saudi Riyal 26.10 26.35

CORPORATE CORNER

02

B

The revenue collected by FBR so far warrants immediate

attention and necessary measures are needed to meet the

targets. – Prime Minister Mir Hazar Khan Khoso

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