AKD Quotidian about — Cements: Concrete basis for bottom fishing.

Karachi, August 30, 2013 (PPI-OT): Cement sector stocks came under heavy selling pressure yesterday (3.9% decline on average) as investors reacted sharply to rumors of a possible derailment in industry pricing.

According to AKD Securities By way of background, cement producers without CPPs are at a relative disadvantage resulting in their push for an increase in cement prices so as to pass on the recent increase in electricity tariffs. In this regard, while LUCK has tendered its resignation from the APCMA in opposition to any immediate price hike, AKD Securities discussions with industry experts suggests that the current pricing consensus as well as production quotas will prevail which should allow cement sector stocks to register a swift rebound. Furthermore, price increases may occur beyond the next month or so, dovetailing with anticipated improved demand dynamics.

The larger, more efficient players, particularly those with CPPs will likely be clear winners. While AKD Securities investments case for LUCK is under review, DGKC (PYI4F PIE: 5.3x) offers an upside of 39% to AKD Securities TP of PkR1O8/share. Buy! Pricing concerns lead Cements lower: The listed cement sector shed 3.9% yesterday as investors reacted sharply to rumors of a possible derailment in industry pricing.

By way of background, recall that the GoP has recently raised electricity tariffs for industrial consumers by up to 55% while the increase in gas prices for captive power plants (CPPs) has been limited at 175%. This has put cement producers without CPPs at a relative disadvantage resulting in their push for an increase in cement prices so as to pass on the increase in electricity tariffs.

Concerns may be overblown: Channel checks suggest that LUCK was strictly opposed to the aforementioned move due to the recent PkR3S/bag hike in cement prices following the Federal FY14 Budget which imposed higher GST (at 17% versus 16% previously) and increase in transport costs within the backdrop of subdued demand due to Ramadan and monsoon rains.

In this regard, LUCK has tendered its resignation from the All Pakistan Cement Manufacturers Association (APCMA). That said, AKD Securities understands this may be more symbolic and largely intended to place pressure on smaller cement manufacturers. In this regard, channel checks suggest that current industry pricing should prevail, thereby enabling cement stock to register a rebound.

Outlook and Investment Perspective: Provided there is no untoward disruption in the pricing environment, AKD Securities expects cement sector stocks to swiftly shed the negative sentiment surrounding them (the listed cement sector has shed 136%MoM).

Within this backdrop, channel checks suggest that cement prices may actually be in for an increase beyond the next month or so, dovetailing with anticipated improved demand dynamics. In this regard, currently cement demand s passing through its seasonally slow period (August and September have historically been weakest for domestic demand).

However, demand should start recovering from Oct’13 onwards which should support price hikes. As such, AKD Securities flags the larger, more efficient players, particularly those with CPPs as clear winners. While cur investment case for LUCK is under review, DGKC (FY14F PIE: 5.3x) offers an upside of 39% to AKD Securities TP of PkR1 08/share. Buy!

Price quotes of Pakistan Mercantile August 30, 2013

Karachi, August 30, 2013 (PPI-OT):

Total Volume (Lots):                               17,135

Traded Value (Rs):                          4,808,669,192

Commodity              Price Quotation            Open              Close

CRUDE OIL              $ Per Barrel             109.30             107.82

SILVER                 $ Per Ounce              24.150             23.650

GOLD                   $ Per Ounce            1,411.80           1,394.90

GOLD                   Rs Per 10 gms            47,268             46,968

GOLD                   Rs Per Tola              56,601             55,920

RICEIRRI6              Rs Per 100 kg             3,766              3,766

PALMOLEIN              Rs Per Maund              4,495              4,458

SUGAR                  Rs Per kg                 45.69              45.67

ICOTTON                US Cents per pound        84.14              83.86

WHEAT                  Rs Per 100 kg             3,517              3,516

Price quotes reflects the trades from 04:00 pm previous trading day to 04:00 pm current trading day

For more information, contact:
Sarang Abbasi
Asst. Manager, Risk and Analytics
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
Karachi, Pakistan.
Cell: +92-03215148905
Fax: +92-35611263
UAN: +92-21-111-623-623, 99210650-61
Web: www.pmex.com.pk

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State Bank of Pakistan’s Open Market Operations (Injection) result dated August 30, 2013

Karachi, August 30, 2013 (PPI-OT): State Bank of Pakistan conducted its Open Market Operations (Mop up) in following contracts on Aug 30, 2013. Bids received & accepted are given below:

A: OMO BIDS
NO     OMO Tenor             Bids Range           Number of Bids Offered

1      06-Days (Repo)        8.45 - 8.55%                  08

B: OMO RESULT
                                                      (Rs. In Millions)
OMO Tenor    Amount            Amount       Rate of Return     Number of Bids
             Offered           Accepted      Accepted           Accepted
                                             (% p.a.)
06-Days      50,950.00         50,950.00      8.55                08

Total        50,950.00         50,950.00

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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State Bank of Pakistan announce rates for conversion of Foreign Currency Deposits, Dollar Bearer Certificates, Foreign Currency Bearer Certificates, Special United States Dollar Bonds and profit thereon August 30, 2013

Karachi, August 30, 2013 (PPI-OT): The following rates will be applicable for conversion into rupees of Foreign Currency Deposits, Dollar Bearer Certificates, Foreign Currency Bearer Certificates, Special U.S Dollar Bonds and profit thereon by all banks and for providing Forward Cover on Foreign Currency Deposits (excluding F.E-25 deposits) by the State Bank on September 2, 2013.

Currency        Rate in Pak Rupee

U.S. Dollar          104.5074

Japanese Yen           1.0640

Pound Sterling       161.7879

Euro                 138.3468

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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The post State Bank of Pakistan announce rates for conversion of Foreign Currency Deposits, Dollar Bearer Certificates, Foreign Currency Bearer Certificates, Special United States Dollar Bonds and profit thereon August 30, 2013 appeared first on AsiaNet-Pakistan.

The post State Bank of Pakistan announce rates for conversion of Foreign Currency Deposits, Dollar Bearer Certificates, Foreign Currency Bearer Certificates, Special United States Dollar Bonds and profit thereon August 30, 2013 appeared first on AsiaNet-Pakistan.

Small Medium Industrial Leasing Estates announce mortgage facilities for Small and Medium Enterprises desirous of buying immovable property under Islamic banking

Karachi, August 30, 2013 (PPI-OT): The Small Medium Industrial Leasing Estates Pvt Ltd (SMILE) announced mortgage facilities for SMEs desirous of buying immovable property under Islamic banking based on 20 years repayment plan.

Chief executive officer (CEO) SMILE said those SMEs who wish to purchase immovable property and need simultaneous mortgage with bank would be facilitated and advised the SMEs to buy immovable property as day by day the price of land is increasing and also the cost of construction.

He said SMILE would arrange a loan with any Islamic bank to finance the purchase of real estate, usually with specified payment periods and mark up rates based on Kibor plus a determined percentage. The borrower would give the bank lending the amount a lien on the property as collateral for the loan.

The CEO SMILE advised the SMEs desirous of purchasing the immovable property to ensure that the property to be purchased is leased property and the title documents are in order. The SME borrower would be required to pay equity amount depending upon the agreement with the mortgagee Islamic bank.

The other requirements are of safe location, good condition of the property and the age of the SME borrower which should not exceed 65 years inclusive of 20 years repayment plan and ability to repay back with mark up within 20 years under any circumstances.

For more information, Contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Phones: + 92 35884225 and 6
Cell: + 92 300 8245307 and + 92 321 8245307
Fax: + 92 35380642
Email: unisame@gmail.com

Karachi should not be handed over to Army as it will not resolve the problem but add to it: President Federation of Pakistan Chambers of Commerce and Industry

Islamabad, August 30, 2013 (PPI-OT): President FPCCI Zubair Ahmed Malik on Friday said Karachi shouldn’t be handed over to Army as it will not resolve the problem but add to it.

Capacity of civilian law enforcing and intelligence departments should be enhanced to contain dwindling law and order situation in Karachi which has been casting a negative shadow on the investment climate, he said.

Speaking to the business community, he expressed reservations over their prolonged stay of the Civilian Armed Forces (CAF) in cities for police duties which is not their job.

Zubair Ahmed Malik said that the role of CAF should be gradually reduced so that they can discharge their primary responsibility of guarding the international borders during peace.

Engagement of CAF in cities has left borders vulnerable which has emerged as a golden opportunity to the smugglers, anti-state elements and terrorists, he observed.

The FPCCI chief said that resolution of problem lies in zero tolerance for those who have been playing with the lives and property of innocent masses and the business community which indicates failure of the civil administration.

Malik said that failure of civil administration in restoring law and order is unfortunate but it cannot be used as a justification to call the Army which is already engaged on various important fronts.

He lauded the personal interest of the Chief Justice Pakistan Iftikhar Muhammad Chaudhry in restoring peace in Karachi which will have a very positive impact on the overall situation and morale of the police.

Time has come for the Sindh government to take decisions keeping itself above the political considerations and give a free hand to the police and other law enforcers to eliminate the criminals from all parts of Karachi, he said.

He said that masses and business community of Karachi who are living in perpetual fear for decades deserve a better life. Pakistan will have to pay a very heavy price of inaction to improve situation in Karachi on the part of federal and provincial governments and opposition, warned Zubair Ahmed Malik.

For more information, contact:
M.A.Lodhi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Shahra-e-Firdousi,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk

Shamim Ahmed Firpo to be Acting President Karachi Chamber of Commerce and Industry

Karachi, August 30, 2013 (PPI-OT): In the absence of Mr. Muhammad Haroon Agar, President, Karachi Chamber of Commerce and Industry has left for Dubai.

Mr. Shamim Ahmed Firpo, Senior Vice President of the Karachi Chamber of Commerce and Industry will hold office of Acting President – KCCI.

For more information, contact:
M. Shafiq Baig
Public Relations Officer
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road,
Shahrah-e-Liaquat, Karachi-74000
Tel: +9221 9921 8001 -09
Fax: +9221 9921 8010
Email: pro@kcci.com.pk, pro2@kcci.com.pk
Website: http://www.kcci.com.pk/

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