Weekly Business Newsletter_1_ 2013.ai

Weekly Business Newsletter
11th - 18th Feb 2013
Business News
Up-Coming Events Pakistan
International Congress of Psg & Gi Endoscopy
Date: 21-Feb-2013 to 24-Feb-2013
Venue: Pearl Continental Hotel, Lahore
International Conference on Business Management
Date: 27-Feb-2013 to 28-Feb-2013
Venue: University of Management and Technology, Lahore
Safe Secure Pakistan
Date: 26-Feb-2013 to 28-Feb-2013
Venue:Pak-China Friendship Centre, Islamabad
6th Power Gen Conference & Exhibition
Date: 26-Feb-2013
Venue: Marriot Hotel, Karachi
China given contract to operate Gwadar
port
Index gains 70 points on foreign buying
The government on 18th Feb formally awarded a multibillion dollars contract for construction and operation of
Gwadar Port to China with the hope that the port's
development would open up new vistas of progress in
Pakistan, particularly Balochistan.
Under the contract, the port which will remain the
property of Pakistan will be operated by the state-run
Chinese firm - China Overseas Port Holding Company
(COPHC). Earlier, the contract was given to the Port of
Singapore Authority (PSA).
Heavy inflow of foreign investment amounting to $4.09
million in the equity market on 14th Feb and investor
enthusiasm over the Pakistan Telecommunication
Company Ltd results combined to lift the KSE-100 index
up by another 69.37 points to close at yet another alltime high at 17,765.82 points.
PGJDC launches first e-commerce web
portal
Pakistan Gems and Jewellery Development Company
(PGJDC) has launched first e-commerce web portal to
facilitate the gems and jewellery industry of the country.
Development of the e-commerce portal is in
continuation of various effective marketing and branding
initiatives, which the company has taken to promote
gems of the country.
CSR guidelines approved
The Securities and Exchange Commission of Pakistan
(SECP) approved the 'Corporate Social Responsibility
Voluntary Guidelines' for 2013, aimed at encouraging
corporate entities to align their business strategies with
their social responsibilities.
Pakistan seeks to renegotiate Iran gas
price
The government has asked Iran to reduce gas price for
Iran-Pakistan pipeline under price renegotiation clause
of the bilateral sales and purchase agreement (GSPA)
to bring it at par with the rates finalised with
Turkmenistan.
Plan for world's tallest tower in Karachi:
$45bn real estate deal signed
Reserves fall
The country's foreign exchange reserves fell $154
million to $13.395 billion in the week ending Feb 8, from
$13.549bn in the previous week, the State Bank of
Pakistan said in a statement on 14th Feb.
Rs13.7bn allocated for Diamer Basha
dam in financial year 2012-13
The 4500 MW-Diamer Basha Dam Project is being
implemented on priority basis and the government has
allocated about Rs.13.78 billion for the project during
the fiscal year 2012-13.
EFU earns Profit
Rs 1.6b is the profit earned by EFU General insurance
in 2012against a profit of Rs 0.56 million in 2011.
Jubilee Insurance earns profit
Rs 877m is the profit posted by jubilee general
insurance for the full-year 2012 period against a profit of
Rs 875 million in 2011. The insurer also announced a
final cash dividend of Rs 3per share.
Record non-basmati export earns $141m
Pakistan has exported a record quantity of 72,623 tons
non-basmati rice to China last month fetching around
$30 million.
Trade deficit falls by 12pc
Two real estate tycoons - chief of Abu Dhabi Group of
the UAE and Pakistan's Malik Riaz - have joined hands
in a bid to construct the world's tallest building in
Karachi.
Pakistan's trade deficit in merchandise fell by over 12
per cent in the first seven months of the current fiscal
year from a year ago as imports dropped while exports
witnessed a paltry growth.
$62m C/A surplus in July-Jan
Apparel makers investing in energy
The State Bank reported on 15th Feb that country's
current account was in surplus despite remaining in
deficit in January. The deficit in January stood at $126
million which substantially reduced the six-month
surplus.
Tired of growing electricity and gas shortages, the
apparel industry in Punjab has started investing in the
alternate, cost-effective generation projects with a view
to taking full advantage of greater market access
offered by the European Union to textile exports from
Pakistan.
Euro II petrol from March 1
Up-Coming Events UAE
GCC Government Organisations Ministers,
Under Secretaries and Senior Directors Modern
Management Implementation Conference
Date : 18-Feb-2013 to 20-Feb-2013
Venue: Dubai
ME-TECH 2013
Date : 18-Feb-2013 to 20-Feb-2013
Venue: Madinat Jumeirah
UAE Companies 2020 Vision and Strategy
Conference
Date : 20-Feb-2013
Venue: Dubai World Trade Centre
3rd Annual CIS MENA Investment Summit
Date : 20-Feb-2013 to 22-Feb-2013
Venue: Abu-Dhabi, Yas Islandi
The government decided on 15th Feb to graduate to
Euro-II international standards for motor gasoline
(petrol) use in vehicles to reduce sulphur, benzene and
tar content with effect from March 1, but postponed
implementation of similar standards for high speed
diesel for two years until December 2014.
Engro profit tumbles
Engro Corporation announced profit after tax (PAT) at
Rs1.3 billion for the year 2012, representing earning per
share (eps) at Rs2.61. The earnings were 83 per cent
lower than earlier year's PAT at Rs8.1billion and eps at
Rs15.77.
FDI declines further
The poor state of economy has failed to attract foreign
investors for the last five years and is more visible
through the data provided by the State Bank about
foreign direct investment during the first seven months
of the current fiscal.
Flight of direct capital ruled out
Minister of State for Finance and Chairman Board of
Investment Saleem H. Mandviwalla
rebuffed
speculations that local businessmen were leaving
Pakistan and moving their businesses to Bangladesh
but instead were expanding their businesses in the
neighbouring country.
UBL and IMC join hands
United Bank Limited (UBL), Indus Motor Company
(IMC) and UBL Insurers recently entered into an
alliance offering an exclusive financing deal on all
Toyota cars. This alliance provides an exciting offer to
customers and dealers and includes attractive terms
such as low mark up and processing fees, quicker turnaround time, lower insurance rates and immediate
delivery on the sale of Toyota cars.
Export of services up 60.84pc
Pakistan's export of services sector recorded an
impressive growth of 60.84 per cent during the first half
year of the current fiscal year from the same period a
year ago.
94pc banks' branches linked online
Ninety-four per cent of banks' branches in Pakistan are
now offering Real-Time Online Branches (RTOB)
services as 484 more branches were added to the
RTOB network during the second quarter of the current
fiscal year (FY13), says the State Bank of Pakistan's
Payment Systems Review for the second quarter of
FY13 released on 13th Feb.
PSO, PNSC stopped from executing
contract
The Sindh High Court on 13th Feb restrained the
managing director of the Pakistan State Oil and
chairman of the Pakistan National Shipping Company
(PNSC) from executing the Contract of Affreightment till
further orders.
Disclosure guidelines
The Securities and Exchange of Pakistan (SECP) has
issued a notification to specify the manner and form for
the disclosure of inside information by the listed
companies and by the persons discharging managerial
responsibilities in listed companies.
Foreigners hold 30pc market float
Foreign investment in the country's capital market is
generally dismissed as of little consequence. Yet the
influence of off-shore equity investment in the local
bourses is growing, as almost 30 per cent of the freefloat (shares available in the market for trading) is
currently owned by the foreign investors.
LSM posts 2.13pc growth
The large-scale manufacturing (LSM) posted a growth
of 2.13 per cent in the first half year of the current fiscal
year from a year ago.
HBL earns Rs22bn profit
The Habib Bank on 12th Feb reported a net profit of
over Rs22 billion for 2012 led by lower provisioning and
higher net interest income.
KESC appoints new CEO
The Karachi Electric Supply Company on 12th Feb
announced that its CEO Tabish Gauhar is taking over
as the chairman of KESC's board of directors with
immediate effect. Nayyer Hussain, who is serving as an
executive director and chief distribution officer since
2010, will assume the role of chief executive officer.
Cont. on page 02
Source : News Paper & Website | Department : Corporate Communication
1
Weekly Business Newsletter
11th - 18th Feb 2013
Business News
KARACHI STOCK EXCHANGE
As on 16th February, 2013
Company Name
Closing Value
Volume
Adamjee Insurance
Century Insurance
EFU General Insurance
Jubilee Insurance
TPL Direct Insurance
70.63
13.93
84.20
66.47
10.30
2,07,000
64,500
1,72,000
13,000
500
ZTBL Treasury division
President Zarai Taraqiati Bank Ltd (ZTBL) Ihsan-ul-Haq
Khan has inaugurated treasury division of his bank
here.
DGK Cement profit jumps 127pc
DG Khan reported a mammoth growth of 127 per cent
in profit after tax (PAT) to Rs2.913 billion, represented
earning per share (eps) at Rs6.65, from Rs1.279 billion
and eps at Rs2.92 in the previous year's comparable
half.
Promoting Islamic banking
CURRENCY EXCHANGE RATES
The State Bank said on 11th Feb that a comprehensive
media campaign for promoting inherent strengths of
Islamic finance and clearing common apprehensions,
confusions and misconceptions about Islamic banking
and finance is being launched shortly.
th
As on 18 February, 2013
Currency
Current Week
U.S.Dollar
UAE Dirham
UK Pound Sterling
Ghauri inaugurates infrastructure phase1 in Port Qasim estate
First phase of infrastructure development over a vast
area of Eastern Zone of the industrial estate of Port
Qasim has been completed and was inaugurated by
Federal Minister for Ports and Shipping Senator Babar
Khan Ghauri on 11th Feb.
Production of buses, tractors go up
The production of buses increased by 39.67 percent
during the first five months of the current fiscal year as
compared to the same period of last year, Pakistan
Bureau of Statistics (PBS) reported.
E-banking transactions cross
Rs7 trillion: State Bank
The overall value and volume of e-banking transactions
throughout the country increased during the second
quarter (October to December 2012) to Rs 7.6 trillion
(18.02 per cent)and Rs 79.45 (11.31 per cent) million
respectively, the State Bank of Pakistan reported.
Last Week
97.7000
26.6000
151.6200
97.6000
26.5700
153.4500
WEATHER FORECAST
As on 19 th February, 2013
Karachi
28/15 oC
Sunny
Islamabad
o
22/07 C
Partly Cloudy
Lahore
22/08 oC
Partly Cloudy
International News
Kabul bank draws just one bidder
AIG buys out AIG Israel partner
An Afghan consortium has bid to buy New Kabul Bank,
the remnants of Afghanistan's largest private bank
which collapsed in a fraud scandal, after four others
withdrew, officials said on 16th Feb.
American International Group (AIG) has bought out its
AIG Israel joint venture partner Aurec Gold, making its
Israeli insurance business a wholly owned subsidiary.
AIG has bought Aurec Gold Investments' 49.9% share
in AIG Israel, giving the US insurer 100% control of the
Israeli insurance business.
Britain mulls RBS share give-away
Britain's finance ministry insisted on 16th Feb that it
would dispose of its majority stake in the Royal Bank of
Scotland "at the appropriate moment" amid reports
ministers were considering a share giveaway.
UAE working on new labour law
The United Arab Emirates is considering changes to its
labour law to attract more citizens into the private
sector, local media reported on 16th Feb, to lessen the
burden of a bloated public sector in case of a fall in oil
prices.
Geopolitics weigh on Dubai banking
When global banking giant HSBC said last week that it
was closing the accounts of some Middle Eastern
customers with links to nations targeted by sanctions, it
underlined the growing weight of geopolitics on
consumer banking in Dubai.
EU-US trade deal to boost growth
The EU and the United States are to negotiate the
biggest free trade agreement ever, a global "gamechanger," boosting growth and providing much-needed
jobs, European Commission head Jose Manuel Barroso
said on 13th Feb.
Peugeot posts record loss
French automaker Peugeot Citroen reported a record
loss of 5.0 billion euros on 13th Feb but said it was on
the road to recovery from crisis, and the government
insisted that nationalisation is not on the agenda.
India IT exports picking up
Exports by India's flagship IT outsourcing industry are
set to grow by 12 to 14 per cent in the next financial
year, an industry group said on 12th Feb, suggesting
signs of recovery.
Marsh centralises risk management arm
Marsh is reorganising its multinational risk management
practice with G5, its largest accounting platform, along
with a reshuffle within its risk advisory arm.
Willis deputy chairman steps down
Martin Sullivan's resignation as the broker's deputy
chairman comes days after Willis announced an $804m
loss for the fourth quarter and a $446m loss for 2012 as
a whole.
Zurich's
$983m
expectations
Q4
profit
beats
Zurich has posted strong growth in net profits for both
the full year 2012 and the fourth quarter 2012. The
result was aided by Latin America and Malaysian
acquired businesses which offset the struggling German
arm of the business.
Swiss Re to open Colombia office
The Swiss reinsurer is set to announce it will open a
new reinsurance office in Bogota, Colombia's capital.
Munich Re introduces first performance
guarantee insurance for LED modules
Munich Re has introduced ground-breaking insurance
coverage with the US lighting company Xicato. Xicato
provides its customers with a 5-year performance
guarantee on its LED modules for colour consistency
and lumen maintenance. Munich Re will now assume a
portion of the financial risk the guarantee entails.
Xchanging Launches 'X-presso' - Mobile
App for Claims Files
China overtakes US in world trade
China has become the world's biggest trading nation in
goods, ending the post-war dominance of the United
States, according to official figures.
2 Philippine banks merge
The near-century-old Philippine National Bank (PNB)
and Allied Bank, both controlled by tycoon Lucio Tan,
announced their merger, with PNB eventually to
become the surviving entity.
Arab Spring fund flows to UAE exceed
$8bn
About 30 billion dirhams ($8.2bn) of funds have flowed
into the United Arab Emirates over the past two years
from countries hit by the Arab Spring uprisings, the
UAE's prime minister said on 11th Feb.
Reliance
Ericsson
awards
$1bn
contract
to
Indian mobile phone firm Reliance Communications
(RCom) on Monday announced it has awarded a $1
billion, eight-year contract to Swedish telecom
equipment-maker Ericsson to run some of its networks.
London-based Xchanging, the business process,
procurement and technology services provider and
integrator, announced the launch of its mobile
application for the insurance market. Called X-presso,
the new app "allows claims handlers and insurers to
view and use claims files on the move using their
iPads," creating a "platform for further mobile
applications, and new functions and services are
already in the pipeline."
Insurance House plans share buyback
Insurance House, a unit of Abu Dhabi-based Finance
House, registered a net profit of Dh7.54 million during
the first financial reporting period since date of
commencement of operations, compared to a projected
loss of Dh7.46 million at the end of the first full year of
operations as per the IPO Prospectus.
Health insurance mandatory to enter
UAE - Residency department
Health insurance is mandatory for visitors to enter UAE,
said a senior official from the General Directorate of
Residency and Foreigners Affairs (GDRFA)
LG Display to spend $655mn on OLED
panels
South Korean flat-screen maker LG Display said on
Monday it would invest 706 billion won ($654.8 million)
to manufacture next-generation displays used in
televisions.
Source : News Paper & Website | Department : Corporate Communication
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