Morning Briefing for February 24, 2014 – Standard Capital

Karachi, February 24, 2014 (PPI-OT): Cement prices increased by Rs 15/bag Positive for north zone sector

Boom in the construction industry urged cement makers to increase the cement prices by Rs 15/ bag this month anticipating higher local demand ahead as reported by Dawn newspaper the other day.

According to Standard Capital, they see that local cement demand to boost before monsoon season due to expected mega construction projects including 100 housing projects mainly high-rise apartments this year.

Market statistics

As per the market analysis new price hike pushed LUCK prices which could be around Rs540/bag and ACPL Falcon brand retail price is now at Rs 560/bag.

During FY14 Standard Capital has observe a continuously raising of cement prices by Rs 5 to Rs 15 per 50kg bag which was made by the cement dealers. As per market statistics a cement bag of well known brand was priced at Rs 460 in June 2013 which currently priced at around Rs 530 – 540.

During 7MFY14 local cement sales rose to 14.14mn tonnes as compared to 13.85mn tonnes in same period last fiscal year. And this construction boom in this quarter will add addition volumetric sales generated from local demand in both South and North regions.

Margins to bloat:

With rising selling price of 50kg cement bag Standard Capital expects that gross margins for cement players to expand during this reporting year which is already observed in half yearly results of few manufacturers. Standard Capital expects that earning to spur for cement companies.

Exports to neighbouring countries to increase:

Recent dialogue with the neighbouring country to improve bilateral trade can provide a hassle free platform for the cement countries to raise their export volume beyond 1mn tons, making it the main tradable item. This expected boom in export sales would also enable the companies especially DGKC to attain increased profitability.

AKD Quotidian about — OGDC: 1HFY14 Result Preview

Karachi, February 24, 2014 (PPI-OT): The Board of Oil and Gas Development Company Limited (OGDC) is scheduled to meet tomorrow to finalize the company’s IHFYI4 result.

According to AKD Securities, they expect the company to post earnings of PkRBS2bn (EPS: PkRIS15) Compared to earnings of PkR4O.2bn (EPS; PkRII.45) during the corresponding period last year – a growth of 32.4%YoY.

In 2QFY14 alone , AKD Securities expects the company to post earnings of PkR3ISbn EPS: PkR734) premised on i) average 20FY14 Arab Light oil price of US$l1Ol6lbbJ and consequent realized oil price of US$87l4Ibbl, ii) total oil production at 40,l45bpd (including non-operated fields), iii) average gas price of PkR3I5.76!mmbtu (pre heating value adjustment) iv) Gas production at 1O57mmcfd (including non-operated fields, v) Other Income of PkR7.lbn (IHFYI4: PkRI4.5bn) and vi) higher Exploration and Prospecting Expenditure at PkR2.7bn (up 37%QoQ) due to 2-D seismic data acquisition from 3 blocks and 3-D seismic.

Acquisition from 2 blocks during 2QFYI4 as well as spudding of I new exploratory well and 2 new appraisal development wells during the quarter (excluding 3 carryover appraisal wells from 10FY14). Alongside the result, AKD Securities expects 000C to pay a dividend of PkR2/share in 2QFYI4 bringing cumulative IHFVI4 payout to PkR4/share.

Weaker QoQ earnings: 20EY14 earnings are projected to stand at PkR3I.Gbn (EPS: PkR7.34), up 74.6%VoY but down 6.O%QoQ due to slightly over oil and gas production at 40l4Sbpd (1 Q: 40,2O5bpd) and 1 O57mmcfd 10: 1,181 mmcfd), respectively. ii) higher exploration and prospecting expenditure at PkR2.7bn in 2QFV14 compared to PkRI.9bn in IQFYI4 and iii) slightly lower Other Income’ at PkR7lbn compared to PkR74bn in 1Q.

Continuing to explore during 20FY14. Exploration expenditure is expected to increase by 37%QOQ to PkR2Thn (cumulative I -1FY14: PkR4.6bn) due to spudding of 1 new exploratory well (Maru East-I) and 2 new appraisal / development wells (Chak-5 Dini-2 and Qadirpur H-52) in addition to carryover of drilling on 3 appraisal wells from 10.

Total Exploratory and .Appraisal / development wells spud during IH stood at 2 and 6. respectively, while OGOG’s full year well target stands at] Exploratory wells and 12 Appraisal I Development wells. During the quarter, OGDC also acquired 377.3 L.kms cumulative 1 H: 864.3 L.kms) of 2D seismic data and 1 94.7sq.kms of 3D seismic data (cumulative 1 H: 431 .7sq.kms).

Investment Perspective: OGDC has underperformed be broader market by 8.1% over be past 3 months on the back of weakness in international oil price. despite a fantastic 1QFY14 result. Going forward.

AKD Securities believes strong earnings growth expected over the next 3 years on the back of strong volume GAc3R well likely lead to price discovery in the stock- The company’s acquisition Df29 new blocks in the last Petroleum Rights bidding lends credence to the aggressive agenda being pursued byte management- Alongside the result, AKD Securities expects OGDC to declare a dividend of PkR2/share, taking cumulative 1 HFY14 dividend to PkR4lshare. At current levels, AKD Securities has an Accumulate’ stance on OGDG with target price of PkR3O21/share

Karachi Cotton Association Official Spot Rate for Local Dealings in Pak Rupees of 24-02-2014

Karachi, Febuary 24, 2014 (PPI-OT):


CROP 2013-2014
PART – I
SPOT RATES
KCA Official Spot Rate for Local Dealings in Pak Rupees
FOR BASE GRADE 3 (THREE) STAPLE LENGTH 1-1/16″
MICRONAIRE VALUE BETWEEN 3.8 To 4.9 NCL

Rate Ex-Gin Price Up-country Spot Rate Spot Rate Difference
for Expenses Ex-Karachi Ex. KHI. As on In Rs.
22.02.2014 Ex.Karachi
37.324 kg 6,900 155 7,055 7,105 -50
Equivalent 40 kgs 7,395 155 7,550 7,603 -53

Valid for the day established by the Rates Committee at 12:00 Noon.
Grade and Staple Margins are notified below :

Grade and Staple Margins
For the period from Febuary 16,2014 to Febuary 28,2014

S T A P L E
GRADE
31/32″ 1″ 1-1/32″ 1-1/16″ 1-3/32″ 1-1/8″
37.32kg 40 kg 37.32kg 40 kg 37.32kg 40 kg 37.32kg 40 kg 37.32kg 40 kg 37.32kg 40 kg
Super – 500 – 536 – 425 – 455 – 350 – 375 + 150 + 161 + 350 + 375 + 475 + 509
1 – 575 – 616 – 500 – 536 – 400 – 429 + 100 + 107 + 275 + 295 + 400 + 429
2 – 650 – 697 – 550 – 589 – 450 – 482 + 50 + 54 + 200 + 214 + 325 + 348
3 – 725 – 777 – 625 – 670 – 525 – 563 BASE + 150 + 161 + 250 + 268
4 – 875 – 938 – 775 – 831 – 675 – 723 – 150 – 161 + 50 + 54 + 150 + 161
5 – 975 – 1045 – 875 – 938 – 775 – 831 – 200 – 214 – 50 ‘- 54 + 50 + 54

All above margins are based on Micronaire value between 3.8 to 4.9 NCL for Grades Super, 1, 2, and 3 and Micronaire value between 3.5 to 4.9 NCL for Grades 4 and 5.

Approval of Government for Grade Super and Micronaire value 3.8 to 4.9 NCL is awaited.

The discount on the basis of low or high Micronaire is stated below which is applicable in addition to the above mentioned margins:

Micronaire below 3.8 in Percentage Micronaire in Percentage
Grades Super,1, 2 and 3 Allowance Excess of 4.9 Allowance
and Micronaire below 3.5
in Grades 4 and 5
0.1 0.5 0.1 0.5
0.2 1.0 0.2 1.0
0.3 2.0 0.3 2.0
0.4 3.0 0.4 3.0
0.5 4.0 0.5 4.0

PART – II
(DOMESTIC TRANSACTION)
Dated: Fabuary 24, 2014
2013 – 2014 CROP
Bales Station Rate Bales Station Rate
200 Bahawal Nagar 6875 1500 Haroonabad 6900
400 Bahawal Nagar 6900 1500 Faqir Wali 6900

PART – III
(EXPORTS)
Registration:- Shipments:-
PERIOD – (MY 2013-14) CROP BALES PERIOD- (MY 2013-14) CROP Bales
01-08-13 to 23-10-13 2011 – 2012 500
01-08-13 to 23-10-13 2012 – 2013 49,920 01-08-13 to 23-10-13 2012-13 55,852
01-08-13 to 23-10-13 2013 – 2014 186,970 01-08-13 to 23-10-13 2013-14 89,202
Total:- 237,390 Total:- 145,054
Source: Trade Development Authority of Pakistan Source: Trade Development Authority of Pakistan

PART -IV PART – V
(IMPORTS) (Mills Consumption of Raw Cotton)

Cotton Season 2013-2014
PERIOD – (MY 2013-14) Qty. in MT Month Bales
Aug.,to Nov.,2013 61,054 Aug,to Nov.,2013 3,945,882
January,2014 62,639
123,693 December,2013 1,000,000
Total:- 4,945,882
Source: Pakistan Bureau of Statistics Source: Textile Commissioner’s Organization

(ARRIVAL CROP 2013-14) (COMPOSITE EXCHANGE RATES)
As on Fabuary 15, 2014 Date; Fabuary 24, 2014
In Bales
Punjab Sindh Pakistan Country Selling Buying Sight
Total Arrivals 9,493,662 3,748,495 13,242,157
Sales to TCP – – –
“to Exporters 98,842 254,527 353,369 USA 104.85 104.65 104 .43
“to Mills 8,644,456 3,118,037 11,762,493
Unsold Stocks as on 15-02-2014 1,126,295 Source: National Bank of Pakistan
Source: PCGA

SUMMARY OF COTTON ARRIVAL IN 2013-14 AND 2012-13 AS ON 15.02.2014
2013-14
PUNJAB SINDH TOTAL PUNJAB SINDH TOTAL
Total Arrival: 9,493,662 3,748,495 13,242,157 9,257,340 3,375,989 12,633,329
Difference in bales
% +2.55 +11. 03 +4.82
Flow during this fortnight 131,477 10,268 141,745
Sales to TCP – – –
Sales to Exporters 98,842 254,527 353,369 133,040 142,978 276,018
Sales to Mills 8,644,456 3,118,037 11,762,493 8,177,312 2,893,375 11,070,687
Unsold stocks 1,126,295 1,286,624

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: +(92)242-5007, +(92)241-2570, +(92)241-6497
Fax: +(92)241-3035, +(92)241-2580
Email: contact@kcapak.org

Islamabad Chamber of Commerce and Industry to work with Capital Development Authority for resolving local traders problems

Islamabad, February 24, 2014 (PPI-OT): A 30 member delegation of Traders Welfare Association, G-10 Markaz, Islamabad led by its President Rana Abdul Qadeer visited Islamabad Chamber of Commerce and Industry and highlighted various CDA related issues for redress.

Congratulating the newly elected Office Bearers of G-10 Markaz, Shaban Khalid, President, Islamabad Chamber of Commerce and Industry said that the new Management of CDA has come with a positive approach and hopefully the civic body in collaboration with ICCI will take necessary measures to address important issues of the local traders to enable a favorable business environment in the city.

He said recently, Member Environment CDA Mr. Sanaullah Aman during visit to G-10 Markaz, Islamabad had announced to resolve many problems of local traders for which the process has been started. He said with such positive mindset of CDA officers, all problems of traders and citizens could be resolved soon.

He said due to the prevailing state of affairs in the country, it is high time that business community should get united at a single platform to promote their business interests. He said ICCI fully understands the problems being faced by the local traders and the same will be taken up with relevant authorities for redress.

Khalid Chaudhry, Senior Vice President ICCI and Secretary Information, Traders Action Committee, Islamabad said that traders played key role in the development of Islamabad, but are themselves facing residential problems as many of them are compelled to live in their shops. He reaffirmed that with the cooperation of Traders Associations, all efforts would be made to resolve the residential issues, especially of small traders.

Speaking at the occasion, Rana Abdul Qadeer, President, Traders Welfare Association, G-10 Markaz, Islamabad highlighted various issues being faced by the local traders. He said CDA has been paying no attention to developmental works in G-10 Markaz, Islamabad since long due to which the condition of basic infrastructures including footpaths, street lights, parking lots etc. have deteriorated.

He said if this trend continued, traders would face more problems in running businesses. He said ICCI is the premier representative body of businessmen in this region and they need its cooperation for resolution of their problems. He said our Association would like to work closely with ICCI and Traders Action Committee, Islamabad for serving the cause of local traders.

For more information, contact:
Khalid Chaudhry
Islamabad Chamber of Commerce and Industry
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526 and 225 3145
Fax: +9251 225 2950
Email: kchicci@gmail.com
Website: www.icci.com.pk

Samsung offers unmatched Freedom and Style with Next Generation of Gear devices

Karachi, February 24, 2014 (PPI-OT): The stylish Gear 2 and Gear 2 Neo offer consumers increased connectivity, customization, and control Lahore – February 24, 2014 – Samsung Electronics Co., Ltd. today introduced the Samsung Gear 2 and Gear 2 Neo designed to take the freedom, convenience and style of wearable technology to the next level. The Samsung Gear 2 and Gear 2 Neo offer consumers enhanced connectivity and a completely integrated approach for the most personal wearable experience.

“Samsung continues to lead innovation in the wearable market by creating devices that are completely integrated into the lives of consumers through extended connectivity features, stylish customization options and a robust application ecosystem,” Said JK Shin, CEO and President of IT and Mobile Division, Samsung Electronics. “With the Samsung Gear 2 and Gear 2 Neo, we have enhanced everything consumers love about the Gear to offer unparalleled smart freedom in their everyday life.”

The next generation of mobile freedom

Samsung achieved a significant improvement as a leading smart wearable provider with Samsung Gear 2 and Gear 2 Neo. Both devices offer a lightweight design with premium finishes that reflect modern trends.

A Camera is equipped to a main body instead to strap, making the Samsung Gear 2 a sleek and sharp smart companion. Consumers are now available to express their mood or coordinate with their outfit with modern and sophisticated strap color options including Charcoal Black, Gold Brown and Wild Orange for Gear2 and Charcoal Black, Mocha Grey and Wild Orange for Gear2 Neo. The home screen background, clock face and font are also customizable to reflect their personal taste.

The Gear 2 and Gear 2 Neo are essential companion devices, allow users to accept or ignore incoming calls and messages, and providing instant notification options based on a user’s activity and habits.

Both devices act as an extension of a consumer’s daily life, offering users more control of their lives with standalone features, such as controlling electronic products such as TV, settop box through WatchON Remote application in their own home with an embedded IrLED sensor. The addition of a standalone music player with Bluetooth headset means people can leave their smartphone at home and still enjoy their music on the go.

Both devices also offer personal fitness coaching in real time, allowing users to develop a customizable fitness routine and monitor their heart rate in order to improve their overall well-being.

Finally, the Samsung Gear 2 and Gear 2 Neo let users connect to a wide variety of Samsung devices and access an enriched application ecosystem as the first wearable powered by Tizen based wearable platform. Samsung Gear 2 and Gear 2 Neo are compatible with more than dozens of Samsung Galaxy smartphones at launch.

Samsung Gear 2 and Gear 2 Neo will be available around the world starting from April. Full details and product images are available at www.samsungmobilepress.com or m.samsungmobilepress.com.

For more information, Contact:
Samsung Electronics
Technology Park,
2nd Floor Tower A,
Shahrah-e-Faisal
Karachi, Pakistan
Tel: 2790281, 2790283, 2790282
Fax: 2790284
Web: http://www.samsung.com

Zulfiqar brand parboiled rice launched

Karachi, February 24, 2014 (PPI-OT): Unisame Export House (UEH) launched Zulfiqar brand parboiled super basmati rice for exports to overseas markets in 5 and 10 kilograms packing in cloth bags at a local club in Karachi.

UEH chief executive officer (CEO) said Zulfiqar brand parboiled rice of super basmati is extra long, aromatic, tasty and elongates on cooking. It is top of the line rice for banquets and very important guest. It is ideal rice for 5 star restaurants, VIP clubs, parties and functions.and best for biryani, pulao and sweet dishes.

He said UEH is planning an introduction for chefs from all over gulf and middle east countries to introduce its brand in Oman, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia for the benefit of the parboiled rice loving countries who are conscious of best selected extra long grains with excellent cooking results.

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