HONG KONG

AFP

Asian markets were mixed in tentative tradeThursday, with bargain hunters moving inafter recent losses while fears over Spanishand Greek debt returned to the fore.

As violent anti-austerity protests brokeout on the streets of Madrid and Athens, in-vestor concerns mounted that the marketeuphoria from this month’s central bankstimulus announcements had evaporated.

Tokyo was flat by the break, HongKong added 0.62 percent, Sydney eased0.10 percent, Shanghai added 0.50 per-cent and Seoul was 0.15 percent higher.

After a month of calm that saw theEuropean, US and Japanese centralbanks unveil plans to boost economicgrowth, focus has returned to the euro-zone sovereign debt crisis, and in partic-ular Spain and Greece. In Madridthousands of protestors rallied near par-liament for a second straight night afteras the government prepares to pass its2013 austerity budget on Thursday, with39 billion euros ($50 billion) in savings.

The trouble came as the country’sborrowing costs broke back above sixpercent and towards the seven percentdanger level seen as unsustainable.

With the passage of the budget Spain

should be able to apply for much-neededbailout cash from the European Union,European Central Bank and InternationalMonetary Fund, which will open the doorfor the ECB to begin buying bonds.

However, Prime Minister MarianoRajoy has refused so far to ask for helpuntil he knows what the conditions are —

a situation that has left dealers in limbo.Meanwhile in Athens police and

masked youths clashed during a generalstrike in protest at a new round of auster-ity introduced as it tries to unlock thenext batch of cash from a rescue packagethat is needed to pay wages and bills.

“The main focus for investors globally

is once again Europe, with Greece andSpain remaining the main concerns,” saidJason Hughes, head of premium clientmanagement at IG Markets Singapore.

“Neither seems able to do enough toput its house and mountains of debt inorder, and most developments have notappeased markets for long,” he said in amarket commentary.

“Despite all that has been promisedso far by the ECB (European CentralBank) and the moves forward by politi-cians, we seem to be as far as ever fromthe end game for the eurozone crisis.”

Despite troubles the euro managed tohold up. In early trade it bought $1.2874 and100.02 yen, compared with $1.2870 and100.04 yen late Wednesday in New York.

The dollar changed hands at 77.69yen, against 77.70 yen.

New York’s main contract, light sweetcrude for delivery in November was up 39cents to $90.37 a barrel in morning tradeafter closing late Wednesday below $90 abarrel for the first time since August 2.

Brent North Sea crude for Novemberdelivery gained 29 cents to $110.33.

Gold was at $1,755.60 at 0200 GMTcompared with $1,763.60 on Wednesday.

KARACHI

ISMAIL DILAWAR

THE economic observers foreseeanother 50 basis pints rate-cutby the central bank on October5 on the back of easing inflationwhich is expected to remain in

single-digit during the first half of FY13.The State Bank on Wednesday reported

that it would be releasing its monetary policydecision for the next two months on the 5thof next month. The regulator had slashed thediscount rate by an unusual 1.5 percent to 10.5percent from 12 percent in its last monetarypolicy announcement on August 10. GovernorSBP Yasin Anwar had the told the reportersthat the move was aimed at giving a relativelyhigher weight to the state of private sectorcredit and investment in the economy.

“Inflation outlook has improved with aprojection of 10.5 percent for FY13 andloans to private sector businesses havesharply decreased,” noted the governor.

And that the central bank’s projection ofthe previously backbreaking price hike wasranging on average between 10 and 11 per-cent for whole of the current fiscal year.

The analysts, however, tend to partlydiffer with the central bank on the rate of in-flation which they say would remain in sin-gle digit during the first half. In the secondhalf, 2HFY13, it would jump back to thedouble digits. Perhaps basing their outlookon that of the SBP, the analysts predict theregulator further reducing the discount ratefor the next couple of months.

“A single digit inflation expectation dur-ing 1HFY13 coupled with above mentionedfalling yields are signaling towards anotherdiscount rate cut (50bps) in the upcomingMonetary Policy Statement,” viewed Invest-Cap analyst Abdul Azeem.

The policy rate, he said, would thenstand at 10 percent. The monetary easingwas also being expected by the secondarymarket participants as was evident from thecurrent declining trend of the secondary

market yield of different government secu-rities, said the analyst.

About a downward trend in inflation,Azeem said the Consumer Price Index (CPI)during the outgoing month of Septemberwas expected to remain in the single digitfor the third consecutive month. “DuringSep-12 we expect CPI to clock in at 9.02 per-cent,” said the analyst. However, he said,the prices of commodities like oil and wheatmay be the major dampeners as they werelikely to push the CPI up by 0.97 percent.

During the month in review, the localmotor fuel prices increased by 10.7 percentand kerosene oil prices went northwards by8.6 percent against the previous month’sprices. Increase in oil prices influence the overall CPI index, as most commodities’ pricereact to fluctuation in oil prices. In addition,sharp jump of 10.7 percent was witnessed inthe price of wheat floor, and is estimated topropel food group containing the highestweight in the CPI basket up by 1.03 percent.

Continuing with the motioned trend ofprice uptick, the prices of rice, eggs and veg-etables also increased by 16.5 percent, 12.57percent and 8.6 percent, respectively.

On the other hand, yearly moving aver-age basis CPI would remain in double digitstaying at 10.43 percent for Sep-12.

The analyst anticipated that low infla-tion would prevail during 1HFY13 as thehigh base impact of CPI was expected tocome to a halt by December 2012. “In2HFY13, however, we see inflation to comeyet again in double digit,” Azeem said.

Moreover, he said, the upcoming pay-ments of $ 2.3 billion to the IMF were ex-pected to exert pressure on Pak rupee againstthe greenback. And that any upward move-ment in international oil prices coupled withflat textile exports are foreseen as another trig-ger for the widening trade balance that mayalso negatively impact the stability of rupee.

Asian marketsmixed, eurozonefears return

Another lAte cut?Yet another rate cut likely on October 5 as inflation stays in single digit

Oil reboundsPrices rebound in Asia, Europewoes cap gains

SINGAPORE

AFP

Oil prices rebounded in Asian trade Thursday on bargain-hunting butescalating turmoil in debt-wracked Greece and Spain limited gains.New York’s main contract, light sweet crude for delivery in Novemberwas up 39 cents to $90.37 a barrel in morning trade after closingovernight below $90 a barrel for the first time since August 2. BrentNorth Sea crude for November delivery gained 29 cents to $110.33. Ageneral strike in Greece and violent demonstrations in Spain to protestagainst tough austerity measures in exchange for much-neededfinancial lifelines hammered sentiment. “The main focus for investorsglobally is once again Europe, with Greece and Spain remaining themain concerns,” said Jason Hughes, head of premium clientmanagement at IG Markets Singapore. “Neither seems able to doenough to put its house and mountains of debt in order, and mostdevelopments have not appeased markets for long,” he said in a marketcommentary. “Despite all that has been promised so far by the ECB(European Central Bank) and the moves forward by politicians, weseem to be as far as ever from the end game for the eurozone crisis.”Police in Athens on Wednesday clashed with masked demonstratorsduring a nationwide strike over a new round of austerity cutsintroduced in return for vital EU-IMF loans. Youths threw firebombs,smashed windows and set fire to rubbish on the sidelines of thedemonstration near luxury hotels on the capital’s central Syntagmasquare. Police responded by firing tear gas and stun grenades todisperse a group of around 200 protesters. In Spain, police beat andfired rubber bullets at demonstrators Tuesday as the governmentprepares to pass its 2013 austerity budget Thursday, with 39 billioneuros ($50 billion) in savings, including an anticipated third straightyear of salary freezes for civil servants. Adding to Spain’s troubles wasnews that its recession has deepened “significant pace” in the thirdquarter of the year.

OGDCL’s 15th annual generalmeeting on 4th OctoberISLAMABAD: The Annual General Meeting (AGM) of OGDCL share holders is scheduled to be held by Ch. Muhammad ShafiArshad Chairman of the Board of Directors and Masood Siddiqui MD/CEO OGDCL alongwith other directors at OGDCLHeadquarter, Islamabad on 4th October, 2012 to dispose off ordinary business of the company carried out during the last financialyear. The AGM will confirm the minutes of last AGM which was held on 28th September, 2011. This meeting will consider and adoptthe audited accounts of the company for the year ended on 30 June 2012 together with the Director’s and auditor’s reports thereon.In the meeting the final cash dividend @ 27.75 per share will be approved for the year ended 30 June 2012 as recommended by theBoard of Directors. This is in addition to other three interim cash dividends totaling to 45% i.e. Rs. 4.5 per share already paidduring the FY 2011-12. Approval for appointment of Auditors for the year 2012-13 and to fix their remuneration will be accordedand the present auditors M/s KPMG Taseer hadi & Co. Chartered Accountants and M/s M. Yousuf Adil Saleem & Co. CharteredAccountants will stand retired on the conclusion of this meeting. The share transfer books of the Company will remain closed andno transfer of shares will be accepted for registration from Thursday, 27 September 2012 to Thursday 04 October 2012 (both daysinclusive). Transfers received in order at the Shrae Registrars office by the close of business on Wednesday, 26th September 2012will be treated in time for the purpose of payment of final cash dividend, if approved by the Shareholders. STAFF REPORT

Friday, 28 September, 2012

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02

Friday, 28 September, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERNestle Pakistan Ltd. 4150.00 4200.00 4150.00 4200.00 50.00 40Bata (Pak) Limited 963.53 1011.50 970.01 1010.10 46.57 900Island Textile 295.10 309.85 309.85 309.85 14.75 200Mithchells Fruit 331.00 344.00 344.00 358.99 27.99 100Service Industries 183.48 191.10 184.00 187.92 4.44 18,900

Major LosersWyeth Pak Limited 960.71 985.00 913.00 871.00 -89.71 500Siemens Pakistan 862.00 850.00 850.00 807.50 -54.50 150Pak Gum & Chemical 215.95 211.00 205.16 195.11 -20.84 2,400National Foods 251.00 250.00 244.50 256.98 5.98 1,100Shield Corpor 119.13 125.00 113.19 114.70 -4.43 1,400

Volume Leaders

P.T.C.L.A 19.36 19.72 19.38 19.37 0.01 9,386,000Maple Leaf Cement 8.78 9.30 8.80 9.11 0.33 5,493,500D.G.K.Cement 47.86 48.60 47.61 49.16 1.30 4,248,000Fauji Cement 5.99 6.24 6.02 6.27 0.28 3,893,500Tariq Glass Ind. 18.99 19.99 19.00 19.57 0.58 2,888,000

Interbank RatesUS Dollar 94.8732UK Pound 153.6852Japanese Yen 1.2204Euro 121.9785

Dollar EastBUY SELL

US Dollar 94.50 95.00Euro 121.15 122.24Great Britain Pound 152.47 153.82Japanese Yen 1.2053 1.2158Canadian Dollar 95.57 96.92Hong Kong Dollar 12.00 12.17UAE Dirham 25.63 25.83Saudi Riyal 25.12 25.28Australian Dollar 97.76 100.08

Business

Brand Ambassador Shah RukhKhan launches the latest TAGHeuer Carrera 1887 Elegance series

KARACHI: On the occasion of the brand complet-ing a decade of operations in India, TAG Heuer at apress conference in Mumbai at Taj Lands End, on6th August 2012, announced the renewal of its asso-ciation with brand ambassador Shah Rukh Khan.Having completed nine years of his affiliation withTAG Heuer, this renewal marks a remarkable jour-ney of growth and evolution for both the brand aswell as the brand ambassador. Having only a hand-ful of point of sale in just two cities in 2003, TAGHeuer is now present in more than 92 point of saleacross 27 cities and 7 exclusive boutiques based inNew Delhi, Mumbai, Bangalore and Chennai. Be-sides being an integral part of the ad campaigns,Shah Rukh Khan made TAG Heuer a special part ofhis films as well while growing from strength tostrength as the King of Bollywood, the highlightbeing the SRK Monaco 69 Limited Edition launchedby TAG Heuer in the film Don. PRESS RELEASE

Bayer HealthCare Pakistan celebrates WorldContraception Day LAHORE: World Contraception Day (WCD) is aWorldwide Campaign that takes place on Septem-ber 26th every year, the annual worldwide cam-paign centers around a vision for “a world where

every pregnancy is wanted”. Launched in 2007,its mission is to improve awareness about contra-ception and its various methods to enable mar-ried people to make informed decisions aboutfamily planning. Now in its sixth year, WCD iscelebrated in about 70 countries worldwide andin 2011 alone, the campaign was able to reach 370million people. PRESS RELEASE

Japanese brands explore Pakistanimarket with Japan Pavilion KARACHI: Japanese brands and companieswill be further exploring the Pakistani Marketthrough participation and promotion at the 7thExpo Pakistan Exhibition in October 2012. Anexclusive pavilion is being set-up at the ExpoCenter in Karachi, inspired by the “Japan Exter-nal Trade Organization” (JETRO), which enjoysthe cooperation of numerous prominent Japan-ese companies operating across various indus-trial and commercial sectors of Pakistan.Prominent sectors that have attracted Japaneseinvestments and entrepreneurs include; Auto-mobiles, Engineering, Consumer Items, etc. Thekey participants from Japan this year will beToyota, Honda, Suzuki and Hino, displaying thelatest models of their most popular cars, coasterand truck in Pakistan. PRESS RELEASE

Soneri Bank Limited joinshands with MoneyGram

KARACHI: Soneri Bank will now facilitate thedelivery of MoneyGram payments to beneficiariesthrough its extensive branch network, which cov-ers most of the high home remittance volume re-ceiving areas in Pakistan. Recently Soneri Bankalso became a member of the PRI Initiative, andis preparing to launch full-fledged home remit-tance facilitation services to beneficiaries andbanks in Pakistan, as well as remitters and remit-tance companies abroad. Speaking at the Agree-ment Signing Ceremony held on xx xx xx, Mr.Aftab Manzoor, President & CEO, Soneri BankLtd. said: “On the Home remittance front, SoneriBank is committed to serving the community atlarge, and to making it convenient for beneficiar-ies of home remittances to receive paymentsquickly and efficiently.” PRESS RELEASE

Afsheen Mehboob exhibition in USAKARACHI: Afsheen Mehboob, also known asthe favorite designer to the stars such as ShaistaWahidi , Nida Yasir and many more , recentlyheld an extremely successful exhibition in Ra-mada Inn Chicago. The event was a huge successas the visitors were delighted to see a unique andexciting line of Afsheen Mehboob’s semi formalsand formals, all based on a sleek and chic silhou-ette. The excellent finishes and the reasonableprices kept the crowd buying her clothes withboth hands and they getting restless as her stallwas crowded. PRESS RELEASE

PTCL organizes heart diseaseprevention and awareness seminar

ISLAMABAD: In connection with World Heart Day2012, observed every year on 29th September, Pak-istan Telecommunications Company Limited (PTCL)held an awareness seminar on ‘Prevention of HeartDisease among Women & Children’. Dr. Inam ul Haq,Consultant Cardiologist, Federal Government ServicesHospital, Islamabad was specially invited by PTCL tospeak at the occasion. The seminar was held at S ASiddiqui auditorium in the PTCL Head Quarterspremises. Senior Executive Vice President (SEVP) HR,Syed Mazhar Hussain while speaking on the occasionsaid that PTCL believes in providing a healthy and safeworking environment for its employees, the main ob-jective of this seminar is to create awareness regard-ing heart diseases amongst our staff, with special focuson Women and Children.” “PTCL is the only telecom-munications services provider in the country whichhas dedicated medical centers all across the countryfor providing the health related facilities to its employ-ees.” He further added. PRESS RELEASE

CORPORATE CORNER

KARAchI: The consul General of Thailand Mr Wichai Sirisujin,and Mrs Suchada Sirisujin, inaugurating Thai Food Festival atPearl continental hotel. Picture shows hon Trade Advisor ofThai Govt Mr Arif Suleman, hotel GM, Mr Azeem Qureshi, andFederal Advisor on Textile Dr Mirza Ikhtiar Baig, also presenton the occasion.

KARAchI: The consul General of Malaysia and Mrs.hidia AbuBaker, hosted a reception to celebrate the 55th National day.Picture shows Speaker Sindh Assembly Nisar Khuro, Ministerhaji Muzzafar Shujra,IT Minister Raza haroon, with host.

KARACHI

ISMAIL DILAWAR

Having borrowed Rs 1.590 tril-lion during the first quarter,the cash-strapped govern-ment Wednesday made publicits intention to borrow an-

other trillion rupees from the primary dealersduring the second quarter of FY13, rangingfrom October to December.

The government set its new rounded offbudgetary borrowing target at Rs 1.215 trillion,marking a slump of Rs 375 billion compared toRs 1.590 trillion it had borrowedfrom banks during the outgoingfirst quarter, July-September.

Earlier, in the fourthand last quarter of FY12,April-June, the gov-ernment’s budget-ary loan from theprimary deal-ers wasrecordedat Rs

1.085 trillion. While the preceding third quar-ter, January-March FY12, had seen the StateBank auctioning the risk-free government se-curities to the tune of Rs 777 billion to cater theever–burgeoning budgetary needs of the gov-ernment.

Issued on Wednesday the central bank’spre-announced auction calendar shows thatduring the second quarter the governmentwould be raising from banks the targetedamount through the sale of Government ofPakistan Market Treasury Bills (MTBs) andPakistan Investment Bonds (PIBs).

The SBP calendar shows that the govern-ment would be raising Rs 1.125 trillion throughauctioning the t-bills while another Rs 90 bil-

lion would be borrowed through sell-ing PIBs of 3, 5, 10 and 20

years maturity. Maturityperiod for the auc-

tioned T-billswould be

3-, 6-and

12-months. Over Rs 65.04 billion and negativeRs 9.709 billion would be secured as an addi-tional requirement.

The economic observers call it a sort ofcyclical debt as the central bank, on one hand,is raising billions of rupees from banks for thegovernment and at the same time is injectinghuge sums into the rupee market on the other.

It was Monday last when the state bankpumped over Rs 562 billion into the bankingsystem with Governor Yasin Anwar believingthat many of the small banks would collapse ifthe regulator stopped injections.

The economic observers are concerned thatmuch of the banking liquidity being sucked upby the cash-strapped government is being usedfor non-productive purpose such as running ofthe government. This trend, they warn, wouldleave the private sector sans cash thus dealingfresh blow to the government’s growth targets.

During the period under review, the centralbank would be conducting seven auctions forselling the t-bills and three for PIBs.

The analysts said the cut-off yield on thegovernment papers was depleting as since last150bps rate-cut by the SBP the cut-off yield for

T-bills has been subdued declining by 18 to23bps. Also, in the latest PIB auction, the

cut-off yield of the government paperswas on the lower side, down by 45-

67bps, against the precding auction.The coupon rates announced

Wednesday for the PIBs were11.25 percent for 3-year, 11.50

percent for 5-year, 12 percentfor 10-year and 13 percent

for 20-year maturities.“Current declining

trend of the secondarymarket yield of differentgovernment papers sug-gest that the secondarymarket participantsare expecting furthermonetary easing inthe upcoming mone-tary policy,” viewedInvestCap analystAbdul Azeem.

It’s a bottomless pit…Over Rs 1.2tn targeted for 1QFY13 as parching govt bowl keeps gulping billions

Euro remains weak TOKYO: The euro remained weak in Asia on Thursday with investorsseeking refuge in the safe-haven yen as anti-austerity protests in Spainand Greece raised fresh concerns over the eurozone debt crisis. Theeuro bought $1.2877 and 100.00 in Tokyo morning trade, comparedwith $1.2870 and 100.04 yen late Wednesday in New York where thecommon currency lost ground amid risk aversion. The dollar changedhands at 77.66 yen against 77.70 yen in US trade. The euro was weakbut traders seemed reluctant to sell the currency aggressively againstthe yen amid lingering expectations that Spain will formally request abailout, said a senior dealer at a Japanese bank. AFP

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