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Wednesday, 6 June 2012



Karachi Stocks Up 25.30 Points:
KARACHI, June 07: The KSE-100 index was at 13771.03, up 25.30 points.(today 11.31 am)
June 6, 2012

Nestle Pak
Rs 67.60
Wyeth Pak
Rs (27.71)
Colgate Palmolive
Rs 23.17
Siemens Pak
Rs (24.51)
Mithchells Fruit
Rs 15.52
Shezan Int’l
Rs (7.59)
National Foods
Rs 9.81
Indus Motor Co
Rs (5.56)
Island Textile
Rs 6.59
Ismail Ind
Rs (5.23)

Karachi Stocks gain 37 points in cautious trade
KARACHI, June 6: After a two-day tight hug, the bears loosened their grip on the stock market on Wednesday and the bulls moved in to toss the KSE-100 index up by 37.50 points, to 13,745.73 points.
Dealers, however, contended that investors were taking a cautious stance and the day’s gains represented only a modest recovery from the earlier two days’ loss that had sent index reeling by 169 points.
The major reason for the slight recovery was an improved global stock and commodity markets. The tone in Pakistan markets, as elsewhere, was generally uncertain. Long-term investors and institutions snapped up beaten down high dividend-yield stocks that were now trading at deep discounts. Individual investors, who account for bulk of trading, however, stood on the sidelines.
Market strategists said that stocks on the Wall Street bounced back after steep decline on the hope that new efforts to overcome the eurozone’s debt crisis would bear fruit, Europe’s shares showed mild recovery. And close to home the Indian main index rose 2 per cent on Wednesday, which stood out the biggest percentage gain in six months.
Most analysts following regional and global markets, however, thought that the troubles were far from over.
While the fund managers were assessing if the new efforts to pull the troubled economies out of eurozone’s crisis was enough, a stock broker at the KSE, who asked not to be named said that things could still get worse before they get better.
Another broker disagreed saying that the regional markets generally looked towards foreign fund managers, rather than specific problems in the developed economies.
And on that score, investors were comforted by the knowledge that the flight of foreign investment portfolio, which showed a huge $12m offloading at the KSE in the past two days, came to a screeching half on Wednesday as the foreign investors’ net sale stood out at just around $0.38m worth equity.
Samar Iqbal, equity dealer at Topline Securities said that the market volume remained low as investors looked confused over how the foreign fund managers were likely to react on recovery of regional markets. Hasnain Asghar Ali at Invisor Securities commented that the recovery at the local bourse mainly driven on technical support was correlated with that in regional and international commodity and equity markets. He pointed out that the absence of follow-up support, however disallowed the earlier attained gains to sustain.
The turnover has been low for a fortnight which could be attributable partly to June-end closing. Several market strategists concurred that the declining trend in volumes had forced the sidelined accumulators to stay out and wait in order to get a good bargain, in low volume price erosion that usually follows prolonged stagnation. Market capitalisation crept higher by Rs8b to Rs3.517 trillion on Wednesday. Volumes edged a bit higher to 78 million shares, from 68m shares on Tuesday with traded value up to Rs3.397b, up from Rs2.478 billion. Gaining stocks at 117 were fewer than the falling stocks at 157 indicating that the penny stocks had been pushed aside. Nestle Pakistan recorded the biggest gain of Rs67.60 to Rs4,067.75 while Wyeth Pakistan suffered the heaviest loss of Rs27.71 to Rs801.01.
Among the 10 top volume leaders, Jah Sidd Co with turnover of 9m shares, fell 74 paisa to Rs13.90. D.G. Khan Cement closed weaker by 23 paisa to Rs41.08 on 8m shares. Engro Corporation jumped by a sizeable Rs4.15 to Rs111.34 on 8m shares as investors’ opinion over a negative impact on the company began to recede.  Engro Foods gained Rs1.12 to Rs68.30 on 4m shares, Bank Alfalah slid 15 paisa to Rs16.57 on 3m shares, Fatima Fertiliser slipped 7 paisa to Rs24.48 on 2m shares, Lucky Cement gained 71 paisa to Rs125.53 on 2m shares and NBP added 10 paisa to Rs43.99 on 2m shares.

SECP registers 470 firms
ISLAMABAD: The SECP registered 470 companies during May as compared to 422 and 370 in April and March respectively.
The private companies have the highest share in new incorporations at 450, followed by 13 single-member companies, two public unlisted companies, three non-profit associations and two foreign companies.
Two foreign companies, belonging to Oman and South Korea, were registered in Karachi and Islamabad.
Foreign investment by nationals from the US, China and Panama has been witnessed in three local companies each registered in Lahore, Islamabad and Karachi, in mining, trading and communications sectors respectively.
The Hajj and Umrah services sector has the highest new incorporations of 157 companies, followed by services 45 companies, trading 42, tourism 22, communications 20, IT 19, textile 15, construction 12 and pharmaceutical 10.
The Lahore Company Registration Office registered 149 companies while 116 were registered in Islamabad and 94 in Karachi.
Peshawar, Quetta, Multan, Faisalabad and Sukkur offices registered 42, 41, 16, 10 and 2 companies, respectively.

Authorized capital and paid-up capital of 470 companies is Rs3.19 billion and Rs1.42 billion respectively.
During the month, 720 companies increased their authorized capital with the aggregate authorised capital increment of Rs4.76 billion and 179 companies raised their paid-up capital with the total paid-up capital increment amounting to Rs4.36 billion.
No question of source on investment in industry
KARACHI, June 6: The government would not ask questions about the source against investments made in industry from July 2012 to June 30, 2015 provided the investor pays two per cent tax against funds declared so before the close of the current fiscal year.
This was stated by Federal Board of Revenue chairman Syed Mumtaz Hayder Rizvi in a meeting with business leaders specially convened to sort out irritants in budget 2012-13, sources privy to the meeting told Dawn.
The meeting, which was held at Customs House on Wednesday, discussed a number of irritants which required immediate attention.
It was felt that there was an urgent need of giving incentive for industrialisation, therefore, a similar incentive scheme, as given to stock market for not asking source if shares are held for a period of four months, was demanded by business leaders.
The other irritant which was sorted out by the FBR chief was with regard to Rule 58E under which commercial importers under special procedure on making 3 per cent over 16 per cent of sales tax as advance payment towards value-addition was exempted from audit.
However, the budget 2012-13 has withdrawn exemption from audit even after making 3 per cent advance sale tax towards value- addition by commercial importer.
But the FBR chief agreed to revert back to previous setup wherein exemption from audit will be allowed.
It was also decided to rescind SRO-191 (2012) which lays down condition of giving CNIC number in case goods are sold to unregistered buyers and payment be made through crossed cheque.
The chairman FBR committed to withdraw the SRO-191 from Thursday.
In the past in case of less payment made erroneously towards sales tax detected within three years, the taxpayer was allowed to make payment. However, in case less payment was made fraudulently and detected within five years, they taxpayer was allowed to make payment.
But in the budget 2012-13 both categories of taxpayers were of five-year period which was agitated by the business leaders.
The chairman agreed to revert back to previous arrangement, a participant of the meeting told Dawn.
However, the FBR chairman constituted a committee to sort out the issue with regard to payments to traders and distributors under Section 153A (1) which makes manufacturer to become withholding agent by deducting one per cent income tax and issue a challenge.
However, this also needed CNIC number which was not possible for trade and industry to fulfill.
Consequently, the FBR chairman formed a committee, comprising Sheikh Shakil Dinghrah, Shaukat Ahmed, Mian Zahid Hussain and Etheshamuddin and Khawaja Tanveer (FBR) to suggest modalities for making Section 153A(1) workable.

1)Pakistan State Oil:  KARACHI, June 6: Pakistan State Oil (PSO) signed a Memorandum of Understanding with Balochistan Forest and Wildlife Department for establishment of 5,000 acre bio-diesel agricultural estate located at Uthal, Balochistan.
PSO plans to introduce Jathropa cultivation on a commercial level to set up a pilot project at Uthal as first step towards mass-cultivation and produce a renewable fuel source.
MD/CEO PSO Naeem Yayha Mir and Balochistan Secretary Forest & Wildlife Department Ahmed Ali signed the MoU.
1)Meezan Bank Ltd.,: 
KARACHI, June 6: Meezan Bank has been awarded Pakistan’s ‘Best Islamic Bank’, ‘Best Islamic Retail Bank’ and ‘Best Islamic Trade Finance Bank’ by Asset Triple A Awards, Hong Kong.
A press release stated that bank has also been awarded, ‘Best Islamic Deal – Pakistan’ as a joint arranger for Pakistan Mobile Communications syndicated Islamic finance facility, and ‘Highly Commended Deal – Pakistan’ as the lead adviser and arranger for the Kot Addu Power Company short-term sukuk.

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