Pakistan 247

Saudi Arabia spread Wahhabism

noreply@blogger.com (Mohammad Osama) — Fri, 30 Mar 2018 07:17:00 +0000

WASHINGTON: Saudi Crown Prince Mohammad bin Salman has said that the kingdom, after being asked by its allies during the Cold War, invested in mosques for the spread of Wahhabism to counter Soviet influence, the Washington Post reported.

The statement was made during the Saudi crown prince's 75-minute meeting with the Washington Post editors and reporters on the last day of his four-day stay in Washington.

Mohammad bin Salman, 32, met with President Trump on Tuesday in the Oval Office and over lunch. On Thursday, he visited Defense Secretary Jim Mattis at the Pentagon. The crown prince also serves as Saudi Arabia’s defense minister.

Discussing his reform efforts in Saudi Arabia, including giving women the right to drive and have more rights outside the home, Salman said he has worked hard to convince religious leaders that such restrictions are not part of the Islamic doctrine.

"I believe Islam is sensible, Islam is simple, and people are trying to hijack it," the newspaper quoted him as saying. He said that lengthy discussions with clerics have been positive and are "why we have more allies in the religious establishment, day by day."

Asked about the Saudi-funded spread of Wahhabism, the crown prince said that investments in mosques and madrassas overseas were rooted in the Cold War, when allies asked Saudi Arabia to use its resources to prevent inroads in Muslim countries by the Soviet Union.

Successive Saudi governments lost track of the effort, he said, and now "we have to get it all back."

He said that funding now comes largely from Saudi-based "foundations" rather than from the government.

The Saudi crown prince said that it would be "really insane" for him to trade classified information with presidential son-in-law and White House adviser Jared Kushner, or to try to use Kushner to promote Saudi aims within the Trump administration.

That kind of relationship "will not help us" and does not exist, he said.

Salman denied US media reports that he had claimed Kushner was "in his pocket," or that he had sought or received a green light from Kushner, when the two met in Riyadh in October, for massive arrests of allegedly corrupt members of the royal family and Saudi businessmen that took place in the kingdom shortly afterward.

The detentions were solely a domestic issue and had been in the works for years, he said.

While "we work together as friends, more than partners", the crown prince said, his relationship with Kushner was within the normal context of government-to-government contacts.

He noted that he also had good relations with Vice President Pence and others in the White House.

Source: https://www.geo.tv/latest/188599-saudi-arabia-spread-wahhabism-to-counter-soviet-influence-says-crown-prince

Apr'15: Banking Sector Review & Outlook

noreply@blogger.com (Mohammad Osama) — Tue, 26 May 2015 19:26:00 +0000

SBP has recently updated the banking spreads for the month of Apr'15. The banking spreads ticked at 5.57% for month of Apr'15. In today's Value Seeker we discuss the banking spreads and the possible impact of falling interest rates on banking sector.

Banking spreads plunge by 35bps MoM

Banking spreads during Apr'15 declined by 35bps MoM to 5.57% as compared to 5.92% in Mar'15 mainly on account of decline in discount rates. The deposit rate of banking industry fell by 17bps to 4.38% while the lending rates dropped by a higher percent to 9.95% and witnessed a dive of 52bps thus squeezed spreads. Similarly, asset yields of private banks descended by 46bps MoM while spreads also reduced by 24bps MoM during Apr'15. Furthermore spreads on gross disbursements and fresh deposits depicted a drop of 39bps MoM to 3.70% in Apr'15.

A YoY analysis revealed the similar picture during Apr'15 and spreads observed a plunge of 49bps YoY as against 13bps YoY drop in Mar'15. Likewise asset yields of banking also observed a notable decline of 114bps YoY in Apr'15 and 66bps YoY drop in deposit costs which led to a decrease in spread YOY. Average spread for 10MFY15 of the sector stood at 5.84% whereas the same was 6.15% in 10MFY14 revealing a decline of 31bps YoY.

Possible implications of recent MPS for banking sector

Banks have heavily invested in govt instruments and DR cut of 100bps is likely to result in significant unrealized gain in 2QCY15 which will raise the book value of equity as most part of banking sector investments are parked under Available for Sale category. In addition to this, there is also positive outlook for growth in private sector lending by small and middle sized banks as financing at cheaper rate is likely to fascinate quality borrowers. ADR and IDR also plunged on MoM basis during Apr'15 with more decline in IDR that could be continued in future.

Outlook

Funds already parked in government securities by banks are yielding the adequate returns despite declining interest rate term structure. Banks have to put more efforts to attract fresh deposits and maintain current deposits as depositors are likely to shift to the other options for better yields. Furthermore, Private sector credit off-take growth remained flat during 4MCY15 as banks are currently more inclined towards investments. So, keeping in view of the current scenario it is likely that banks will tilt towards private credit off-take and consumer financing.

Complete Report

Ahsan Arshad

ahsan.arshad@investcapital.com

+92-21-35205520-22 (Ext 8633)

Pakistan Textiles: Decline in non-value dragging overall exports

noreply@blogger.com (Mohammad Osama) — Tue, 26 May 2015 19:19:00 +0000

Pakistan Textiles: Decline in non-value dragging overall exports

Textile exports continued their downtrend in the month of Apr’15 as 10MFY15 exports declined by 1.4%YoY to clock in at USD11.3bn from USD11.5bn in similar period last year. While on MOM basis, the total exports reported a growth of 4.6% to USD1.1bn from USD1.03bn clocked in the last month. Going forward, we expect the country’s total textile exports to remain flattish at ~USD14bn during the outgoing FY15. While on the budgetary front, the recommended hike on duty of textile exports (from 2%-5%)
bodes negative for the sector and will likely hamper the competitiveness of Pakistani exports in the international market. The recently approved Gas Infrastructure Development CESS Ordinance, 2015 (with few amendments) is likely to have mixed impact on the bottom-line of the companies in BMA textile universe (GATM the most affected). We highlight NML as our top pick from textile sector with a TP of PKR149/sh, offering 45% returns on last closing.

Complete Report

Report by:

Jehanzaib Zafar

BMA Capital Management Ltd.

(9221) 111 262 111

This report produced by BMA Capital Management Ltd. contains information from sources believed reliable; we do not guarantee that the matter is accurate or complete. Our Research Analysts compile this memorandum based on opinions and judgments, which may vary and be revised at any time without notice. This report is for information only and is not an offer to buy or sell, or solicitation of any offer to buy or sell the securities mentioned. It is published for the use of our clients may not be reproduced, distributed or published by any person for any purpose whatsoever. Action will be taken for unauthorized reproduction, distribution or publication. The views expressed in this document are those of the BMA Research Department and do not necessarily reflect those of BMA or its directors.

Saif power IPO

noreply@blogger.com (Mohammad Osama) — Tue, 04 Nov 2014 08:35:00 +0000

Saif Power IPO, Saif power IPO Application form, Saif power IPO prospectus

Engro Powergen Qadirpur Limited IPO

noreply@blogger.com (Mohammad Osama) — Tue, 16 Sep 2014 18:34:00 +0000

OFFER FOR SALE DOCUMENT

For Offer of 40,475,000 Ordinary Shares (12.5% of the Total Paid Up Capital) at an Offer Price of PKR 30.02/- (including premium of PKR 20.02/- per share)

THIS IS NOT A PROSPECTUS BY ENGRO POWERGEN QADIRPUR LIMITED (THE COMPANY) BUT AN OFFER FOR SALE DOCUMENT BY ENGRO CORPORATION LIMITED AND ENGRO POWERGEN LIMITED, FOR OFFER FOR SALE OF SHARES OUT OF THEIR SHAREHOLDING IN THE COMPANY.

DATE OF PUBLIC SUBSCRIPTION:

From September 22th to 24th, 2014 (BOTH DAYS INCLUSIVE)

Click Here For Engro Powergen Prospectus

Click Here For Engro Powergen Subscription Form

Engro Powergen Qadirpur Ltd (EPQL)

noreply@blogger.com (Mohammad Osama) — Tue, 16 Sep 2014 18:04:00 +0000

IPO @ Rs30.02/sh |Buy |Commendable

Engro Powergen Qadirpur Limited was incorporated in Pakistan on February 28, 2006. The company completed construction and testing of its 217.2 MW(net) combined cycle power plant and commenced commercial operations on March 27, 2010.

Plant details

The company has set up a 217.2 MW (net) gas based thermal power project near Qadirpur, District Gothki, Sindh.

Company is using permeate gas as its primary fuel source and HSD as the startup and backup fuel. Permeate gas is a by-product of gas purification process earlier this gas was flared but EPQL makes it worthy and that allow EPQL to obtain an edge among other thermal based power plants.

The plant is a combine cycle plant with one gas turbine, one heat recovery steam generator and one steam turbine.

Gas Supply ~ 75MMCFD |SNGPL

Company will be receiving 75MMCFD permeate gas from Qadirpur gas field while gas supply contract is with Sui Northern Gas Pipeline Limited (SNGPL).

Exemption ~ Entity to enjoy

Income of the company derived from the electric power generation project is exempted from Income Tax while same goes for deferred taxation hence no provisioning could be taken for deferred taxation.

Key Points ~ EPQL

Use permeate gas for operations while HSD will be used for start up and backup purpose

Exemption from Income tax under clause 132 of Part-1 of the Second Schedule to the Income tax ordinance, 2001.

Total Paid up capital 323.8 mn
Free Float 12.5% (40.475 mn)
Total Project cost USD 194 mn
Project life 25 years (21 remaining)Engro Powergen ~ Sindh Engro Coal mining company is working to mine coal from Thar (Block ll) and is developing 660 MW coal based power project.
Gas Supply ~ 75MMCFD with SNGPL

Why Offer for Sale?

To pay off conventional liabilities
To finance new project such as LNG terminal

Valuation | IPO @ Rs30.02/sh | HY14 EPS Rs3.36 | Interim DPS 1.54 |

We show positive stance on Engro Powergen Qadirpur Limited (EPQL).

Currently entity is in a good position and healthy margins alongwith distribution make the company more viable. Annualized expected PE @ Rs30.02 is 4.46x.

We expect company to perform better in future as this is the only plant which is generating power from permeate gas and that allow the company to generate electricity at lower cost among other thermal based plants.

Click Here For Complete Report

Engro Powergen: Public offerings on the way! ‘Subscribe’

noreply@blogger.com (Mohammad Osama) — Tue, 16 Sep 2014 17:59:00 +0000

Engro Powergen Qadirpur Limited (EPQL) is up for listing at Karachi Stock Exchange (KSE) and provisional trading of the scrip will start from 17Sep'14 and will end on 24Oct'14. The company has already divested 12.5% (40.475mn shares) of its paid up capital through private placement at the rate of Rs30.02/share and its present offer is to divest further 12.5% of its paid up capital to general public at the same price i.e. Rs30.02/share. The date of public subscription will start from September 22nd to 24th, 2014 (both days inclusive). In today's Value Seeker we discuss different aspects of the transaction along with our recommendation for the same.

Strong financials to support overwhelming response

The profitability of Engro Powergen is continuously on rising trajectory since its COD back in 2010 except for CY13 where the generation and resultantly the profitability halted due to plant shutdown in 2HCY13 on technical issues. Those plant issues are now completely resolved and the plant is fully operational therefore financial performance has significantly improved in 1HCY14 as evident from the results in the table below. Furthermore, being a power generation company it holds a strong payout history and we expect same healthy dividends going forward.

Principal utilization of offering amount

Under the present offer, Engro Corp will divest its total holding of Engro Powergen Ltd. which is 32mn shares while the other 8.475mn shares will be divested by Engro Powergen Ltd. from its own holding. The company would be able to collect Rs1.45bn from total divestment (Pre IPO 40.475mn+ IPO 8.475mn shares) and the same would be utilized to 1) pay-off its liabilities 2) finance new projects e.g. LNG terminal. The above utilization expected to save company's finance cost and will generate other income in case of investment in LNG terminal which will augment its bottom-line going forward.

Low cost generation from permeate gas - key attraction

Engro Powergen utilize permeate gas from Qadirpur field as major input. The permeate gas holds a low BTU value and was previously flared due to its limited use. So the input supply is expected to remain uninterrupted as the same has no industrial usage. Furthermore, due to lower cost and higher dispatch factor the company ranks higher in NEPRA's dispatch merit order list.

Internal O&M service provider- key risk

The company operates the plant through internal Operation and Maintenance (O&M) service providers while the other IPPs outsourced the same service. The risk associated with internal management is that the company can't pass on liquidated damages to third party in case the company fails to make sure the availability of the committed capacity.

Peer comparison and recommendation

The company is uniquely positioned when compared with existing listed IPPs as the same utilize low BTU gas (incase of unavailability of gas it can convert on HSD) as its primary raw material while the other IPPs used FO to generate electricity. However the company is comparable on the basis of guaranteed returns, similar tariff components and similar type of indexation factors. We took average leading P/E of 4 comparable IPPs and derive justified value of Rs36.84/share for the scrip. The stock entails 23% potential for price appreciation from its offer price. Furthermore a healthy 13% DY is also expected at subscription price of Rs30.02/share in CY14. Keeping in view the significant total return with limited downside, we recommend 'subscribe' for the scrip.

Click Here For Complete Report

Written by: Invest Capital

lrfan Saeed

irfan.saeed@investcapital.com

+92-21-35205520-22 (Ext 8635)

Allied bank Career as Managment trainee Office (MTO)

noreply@blogger.com (Mohammad Osama) — Sun, 24 Aug 2014 16:24:00 +0000

Free EVO USB for all DSL Broadband customers

noreply@blogger.com (Mohammad Osama) — Sat, 08 Feb 2014 08:33:00 +0000

Now All Broadband Customers get an EVO USB Absolutely Free

The Offer:

“Now all PTCL Broadband customers can get an EVO 3.1Mbps USB Absolutely Free by paying additional just Rs.500/month!”

Offer Details

Adding more value to our PTCL family experience; a joint promotion has been planned for all our PTCL BB subscribers offering an on-the-go internet back-up for all those times when DSL goes offline. With this promotion all existing & new PTCL DSL subscribers shall be given an option to get a Free EVO 3.1Mbps USB and pay just Rs.500/month for EVO internet usage. Incentives provided to the consumer are as listed below:

First incentive is the Free Evo 3.1 USB.
Second Incentive in the form of an economical Rs. 500 monthly EVO package

Under this promotion EVO Rev.A (3.1 Mbps) USB with PSTN/PTCL landline package will be offered to broadband customers at attractive rates as a backup connection. The promotion will create value for the customer by providing flexibility of use at multiple locations, with a special 10 GB discounted package charging only Rs. 500 per month.

EVO Package Being Offered:

Package Name	Device Price	Monthly Line-Rent	Volume	Validity	Billing Mode
EVO DSL Bundle (Rev.A 3.1 USB)	Free of Cost	Rs. 500	10 GB	1 Month	Postpaid (PSTN)

Key Highlights:

Freedom to stay connected 24/7 for DSL subscribers at nominal monthly charges
EVO 3.1Mbps USB device Absolutely free.
Monthly EVO service charges of Rs.500 payable with PSTN bill.
Package can be availed with any DSL package as per customer requirement.
All new DSL modems now available with an in-built EVO port
Pakistan’s fastest growing coverage network covering 90% of the country’s population.
Mobile broadband internet that keeps you connected wherever you go
Seamless EVDO roaming inside the 250+ EVO coverage areas with auto switch over to lower speeds in the non-EVDO coverage areas.

Business Rules:

The promotion can be availed by any existing or new PTCL Broadband Customer.
Offer is valid for DSL subscribers only.
Package can be availed with any DSL package as per customer requirement.
Billing Mode will be Postpaid (PSTN Billing Only), to be billed alongside DSL in customer’s landline bill.
Rs 1,000 will be charged in case of disconnection of Evo Package on customer request before lapse of 12 months since purchase.
Disconnection of Package after a period of 12 months at the request of the customer will not be charged.
EVO connection will be disconnected if the PSTN connection is terminated.
EVO Service can be availed through any PTCL OSS. For DSL, orders can be booked through PTCL order line i.e 0800-8-0800

Service Availability:

Walk-in at any PTCL One Stop Shop

PPL: Sleeping giant waking up; 2nd discovery in 2 months

noreply@blogger.com (Mohammad Osama) — Thu, 20 Jun 2013 15:04:00 +0000

PPL has announced a discovery in Gambat South block (65% owned by PPL), having initial flow of 16.8mmcfd of gas and 144bpd of condensate. Our calculations suggest annualized EPS impact of PRs0.58.

Despite a 19% performance in 2-mths, we believe valuations are still attractive at 7.1x FY14E P/E given the presence of positive volume catalysts.

Update on Makori East-III drilling, exploration in Tal Kot-1 & Gambat, reserve upgrade for Nashpa, Adhi & Tal would be the triggers to watch out for.

Any progress on resolution of circular debt via direct cash injection or cash-based PPL/OGDC bond, should also keep PPL in the lime-light.

We expect PPL to announce FY13 EPS of PRs27.5 (+10% YoY) with a final cash payout of PRs7/sh, where late resolution of circular debt resolution may impact payout and near term capex plans.

Research Report

By: KASB Securities and Economics Research

Nishat mills limited Still going strong

noreply@blogger.com (Mohammad Osama) — Thu, 20 Jun 2013 15:00:00 +0000

We reiterate our ‘Buy’ call on Nishat Mills Limited (NML) with a target price of Rs115. The stock is currently trading at FY13E and FY14F P/E of 6.4x and 6.0x, respectively.

We believe NML will close FY13E with earnings of Rs15.92/share, backed by higher margins (up 2ppts YoY) and healthy dividend income from its group companies.

Potential future triggers include (1) listing of Lalpir Power Ltd via offer for sale (likely to result in a gain of Rs0.17/share on NML bottom line) and (2) approval of GSP plus status for exports to EU.

Although the recent implementation of GST on retail textile made-up items and garments might result in initial dip in volumes at the domestic level, we believe the impact of GST will easily be passed on to end consumers.

Research Report

By: JS Research

Clariant Pakistan: Selling few businesses

noreply@blogger.com (Mohammad Osama) — Thu, 20 Jun 2013 14:54:00 +0000

On Wednesday, Clariant Pakistan (CPL) has announced its intention to divest its few segments, which caused 10% surge in the stock price in last two trading days. According to the notice to KSE, CPL will spin-off all business segments except textile chemicals, paper specialties and emulsions to an unlisted firm Clariant Chemicals (Pvt.) Ltd.

The announcement was anticipated as SK Capital Partners announced in December last year that it has signed asset and share purchase agreements to acquire the textile chemicals, paper specialties, and emulsions businesses of Clariant International. To seal the deal, Clariant International is divesting all other businesses so that SK Capital could acquire Clariant International.

About CPL, Clariant International & SK Capital

With the paid up capital of Rs341mn and market cap of Rs10.7bn, Clariant Pakistan (CPL) is involved in textile chemicals, paper specialties, emulsions, masterbatches, leather services, pigments, additives, industrial & consumer specialties, oil & mining, detergents & intermediates and catalyst businesses. At present, Clariant International owns 75% of company's outstanding shares.

During last 5 years, company reported sales and profitability CAGR of 11.4% and 20.4%, respectively. In 2012, company earned Rs1.18bn (EPS Rs34.5) compared to Rs0.78bn (EPS Rs22.8) in 2011.

Clariant International is involved in specialty chemical products and provides dyes and chemicals for the textile, leather and paper industries, pigments, printing inks, decorative paints, plastics, cosmetics, additives and packaging.

SK Capital is a private investment firm focusing specialty materials, chemicals and healthcare sectors and seeks buyouts, recapitalizations and growth equity investments.

Selling business segments and land

Globally, Clariant International is in the process of divesting its textile chemicals, paper specialties, and emulsions businesses to SK Capital. For the smooth sailing of the transaction, CPL intends to sell its master batches, leather pigments, additives and other businesses along with the land property in Lahore and Karachi to Clariant Chemicals (Pvt.) Ltd. In 2012, these assets contributed about 23% to the profits.

As part of the proposed deal, CPL shall lease back the land from Clariant Chemicals (Pvt.) Ltd. which is required for textile chemicals, paper specialties and emulsions businesses. The transaction is somewhat similar to the last year ICI demerger. To get approval from the shareholders, CPL has scheduled an EOGM on July 11, 2013.

One time huge gain

As per company estimates, deal may settle at Rs3.3bn, plus premium. Rs3.3bn is the approximate fair value of manufacturing facilities (Rs2.5bn), Karachi plot (Rs0.5bn) and Lahore plot (Rs0.3bn).

Post-demerger, CPL will be managing textile chemicals, paper specialties and emulsion businesses. Our rough working suggests that in 2012 company derived 77% of the profits, Rs910mn, through these segments.

CPL is likely to record onetime pre-tax gain of Rs1.8bn (Rs53 per share). Further, with Rs3.3bn cash inflow, we expect company to repay Rs1.6bn debt while Rs1.7bn could be re-invested. We estimate finance cost savings of Rs160mn (EPS impact Rs2.8) and other income of Rs150mn (Rs4.4 per share).

However, company may have to pay approx. Rs52mn (EPS impact Rs1.5) as rental charge against leased back land while one time dividend payout can not ruled out.

Research Report

By:Topline Securities

Lalpir Power: Market depth to digest OFS looks strong

noreply@blogger.com (Mohammad Osama) — Wed, 19 Jun 2013 16:21:00 +0000

We expect favorable investor appetite for upcoming listing of Lalpir Power where a high payout policy translating into prospective D/Y of 18-20% (at the floor price) barring a dip in 2014E, should be the key selling point.

From a total offer of 37.9mn shares, 28.5mn shares are targeted to HNWI’s via book building process and the remainder (9.5mn shares) for public subscription.

Key investment considerations show fuel losses (10-12gms/kWh) as the prime irritant, even as the company aims to mitigate these through efficiency upgrade projects. Cumulatively these measures are expected to allow Lalpir to save ~4.7gms/kWh and push thermal efficiency to ~37.5% by 2015E.

Sensitivities suggest 4-6% EPS upside from incremental 1% deval in PkR/US$ parity while exposure to inter-corporate debt is nominally negative for earnings.

For Complete Research Report: Click Here

Via: KASB Securities and Economics Research

Why interest rates should decline in Pakistan?

noreply@blogger.com (Mohammad Osama) — Tue, 18 Jun 2013 15:28:00 +0000

With June monetary policy announcement due in few days, markets in Pakistan are still confused about the SBP expected stance on policy rate. Much of the prevailing ambiguity is due to low inflation but no clarity on foreign inflows coupled with high budgetary borrowings target set by the new government in FY14. We still believe it is not the question of whether the interest rate will come down but when and by how much the rate will come down.

Current year average inflation now estimated at 7.5% which is much lower than government's target of 9.5% and SBP's initial target of 9.1% (SBP 1Q review). Further, with Topline forecast of 8-9% inflation in FY14, the central bank is providing an arbitrage like investment opportunity to those who believe that foreign funding through IMF, KSA or US will materialize soon. Contingent upon these factors, we expect discount rate to decline by 50-100bps by Dec 2014. Whether central bank will adopt wait and see strategy in June 21, 2013 meeting and provide more time to investors to make short term gains at the cost of government will be a subjective judgment of the SBP board.

Record high real interest rate

Pakistan monthly CPI has dipped to 5.1% YoY in May 2013 which is a 9-year low. In last 3 months, average inflation is 5.8% while cumulative CPI has eased to 7.5% in 11MFY13.

On monthly basis, real interest rate has spiked to 4.4%, which has occurred after a gap of 3.5 years. Very few countries in the world would be providing such a high real interest rate. Though in FY14, we will see slight increase in inflation due to recent taxation measures in federal budget, expected hike in energy prices and excessive government borrowings but it may not be a restraining factor in monetary easing as we expect CPI to range between 8-9% against government target of 8%.

All eyes on materialization of foreign inflow

As pressures on current account have been eased off due to CSF (Coalition Support Fund) payment, we expect CA deficit to remain at US$2.2bn (1% of GDP) against FY12 deficit of US$4.7bn (2% of GDP). However, financing of the deficit coupled with foreign debt repayments has been the issue in FY13. Resultantly, foreign currency reserve declined to US$11.4bn as of June 7, 2013 from US$15.3bn in June 2012. However, Pak rupee has remained stable during the period and depreciated by 4.2% in FY13TD (1.5% in 2013TD) vs. 10% depreciation in FY12 and 6.2% average annual decline in last 20 years.

In FY14, we think, support to balance of payments and declining forex reserves could emerge from CSF money, Saudi facility or IMF. Though government is also expecting inflow from Etisalat US$800bn and privatization but we feel this may not happen in FY14.

Bankers/investors buying long duration papers

With an arbitrage like opportunity being provided by the SBP, bankers/investors have participated heavily in longer maturity in last T-bill auction. This coupled with declining secondary market yields are highlighting the expectation of reduced interest rates by the market participants.

Since last MPS 1-year T-bill yield in secondary market has declined by 25bps to 9.2% while cut-off yields of 1-year T-bill in last T-bill auction has also declined to 9.28% with about 84% participation in 1-year. However, yields in secondary market have spiked up marginally by 5bps after the announcement of inflationary budget with no concrete sings of foreign inflows yet.

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Source: Topline Securities

Lalpir Power Book Building And Innitial Public Offer For Sales Of Shares

noreply@blogger.com (Mohammad Osama) — Mon, 17 Jun 2013 15:56:00 +0000

ADVICE FOR INVESTORS

INVESTORS ARE STRONGLY ADVISED IN THEIR OWN INTEREST TO CAREFULLY READ THE CONTENTS OF THIS OFFER FOR SALE DOCUMENT, ESPECIALLY THE RISK FACTORS GIVEN AT PARA 5.7 BEFORE MAKING ANY INVESTMENT DECISION.

SUBMISSION OF FICTITIOUS AND MULTIPLE APPLICATIONS (MORE THAN ONE APPLICATIONS BY SAME PERSON) IS PROHIBITED AND SUCH APPLICATION MONEY IS LIABLE TO CONFISCATION UNDER SECTION 18A OF THE SECURITIES AND EXCHANGE ORDINANCE, 1969.

ADVICE FOR INSTITUTIONAL INVESTORS AND HIGH NETWORTH INDIVIDUAL INVESTORS

A SINGLE INVESTOR CANNOT SUBMIT MORE THAN ONE BIDDING APPLICATION EXCEPT IN THE CASE OF REVISION OF BID. IF AN INVESTOR SUBMITS MORE THAN ONE BIDDING APPLICATION THEN ALL SUCH APPLICATIONS SHALL BE SUBJECT TO REJECTION.

PRELIMINARY OFFER FOR SALE DOCUMENT

Lalpir Power Limited

Offer for Sale of Shares

THIS OFFER CONSISTS OF 37,984,000 ORDINARY SHARES (10% OF THE TOTAL PAID UP SHARE CAPITAL OF LALPIR POWER LIMITED) AT AN OFFER PRICE OF PKR 15 PER SHARE (INCLUSIVE OF A PREMIUM OF PKR 5 PER SHARE) WITH A GREEN SHOE OPTION OF UP TO AN ADDITIONAL 18,992,000 ORDINARY SHARES (5% OF THE TOTAL PAID UP SHARE CAPITAL OF LALPIR POWER LIMITED) TO GENERAL PUBLIC IN CASE OF OVER SUBSCRIPTION OF THE GENERAL PUBLIC PORTION AT AN OFFER PRICE OF PKR __ PER SHARE

Book Building Portion of the Offer comprises of 28,488,000 Ordinary Shares (75% of the Total Offer) at a floor price of PKR 15 per share (inclusive of a premium of PkR5 per share)

General Public Portion of the Offer comprises of 9,496,000 Ordinary Shares (25% of the Total Offer) at an offer price of PKR[*] per share

THIS IS NOT A PROSPECTUS BY LALPIR POWER LIMITED, BUT AN OFFER FOR SALE BY MIAN HASSAN MANSHA, NISHAT MILLS LTD, ADAMJEE INSURANCE CO LTD, SECURITY GENERAL INSURANCE CO LTD, STANHOPE INVESTMENTS & ENGEN (PVT) LTD, …..,THE SPONSORS OF LALPIR POWER LIMITED, OUT OF THEIR EXISTING SHAREHOLDINGS IN LALPIR POWER LIMITED

BIDDING PERIOD DATES: From June 18, 2013 to June 19, 2013

(Both days inclusive) From 9:00 a.m. to 5:00 p.m.

DATE OF PUBLIC SUBSCRIPTION: From DD/MM, 2013 to DD/MM, 2013

(Both days inclusive) During Banking Hours

JOINT LEAD MANAGERS, ARRANGERS & JOINT BOOK RUNNERS:

AKD SECURITIES LIMITED - NEXT CAPITAL LIMITED

Application Forms and Prospectus

· Lalpir Offer For Sale

· Bid Revision Form

· Duplicate Bidders

· Instructions For Bidding

· Bid Form

PKR/USD - Speculation or demand?

noreply@blogger.com (Mohammad Osama) — Tue, 18 Dec 2012 17:34:00 +0000

Highlights

PKR/USD parity - the major factors influencing PKR
Interbank & open Market gaps providing speculating opportunities
Is IMF program the only way out?

We have talked to several forex traders and got their feeler on the recent movement of Pak Rupee against US Dollar, where the former experienced a freefall against the later. In today's Value Seeker, we discuss the influencing factors behind the aforesaid downward velocity of PKR against USD.

PKR/USD parity - the major factors influencing PKR

PKR has been continuously heading downwards because of numerous economic and speculative reasons. The prime reason behind the massive fall in PKR is identified as the payments of IMF loans. These payments started from Jun-12 and PKR since the same period has shed its worth by alarming 4.7% till now. Moreover, poor law & order situation in the country coupled with energy crises can be classified as the reasons that are forcing foreign flows to diminish by hurting the country of its export front. Conversely, it has led to outflow that resultantly have impacted the PKR value in the negative way. This has inflated the transfer of money through grey channels. Furthermore, short term gain opportunities for individuals amid limited investment avenues in the country also played its due role and speculators grasped this opportunity with warm welcome.

Interbank & open Market gaps providing speculating opportunities

Looking through the historical trend, not only has PKR touched its all-time low against the greenback (over Rs99.75) in the open market, but also discount to interbank market has widened further to ~1%. The same situation was observed back in Jun-12 when open market-interbank discount stood at an average of 2.3%. SBP is expected to curb off speculation in the open market. With our discussions with different forex traders it came to our knowledge that the current upward trend is encouraging the investors to book their gains before they take new positions in the currency market. Therefore, Rs98.50/USD remains the resistance level for short term, while investors are said to take the new positions at Rs97.20/USD.

Is IMF program the only way out?

Although workers' remittances and Collation Support Funds (CSF) are supporting the USD inflows in the country, these avenues are not enough to support the government reserves. The reserves fell to their 40 month lowest level of USD13.4bn. The previous minimum level was realized at USD12.86bn during end of August, 2009 which was due to IMF payments coupled with financing of the oil import bill. In the short run CSF and energy support funds of USD700-800mn is likely to support the reserves, however, going forward the door of IMF looms at large as it seems to be the only way to support the reserves and in effect limiting the downward spiral that PKR has been stuck in against the greenback.

ValueSeeker 18-December-12

Kfc HotWings Deal

noreply@blogger.com (Mohammad Osama) — Mon, 17 Dec 2012 05:34:00 +0000

KFC Hot Wings only for Rs.300

Includes

10PCS Hot Wingd and 1Regular Drink

Wi-Tribe New Unlimited Packages

noreply@blogger.com (Mohammad Osama) — Sat, 15 Dec 2012 18:25:00 +0000

High-speed, quality broadband packages that match your lifestyle

Surf, stream, socialize and more with our diverse packages. Whatever you requirements are, there’s an offer to go with them.

Our unlimited internet packages are now available at lower rates and a new 1Mbps bucket. Select from our tariff below and enjoy what you do online.

Things to know:

Upon purchase of any device, you will be required to make an advance payment of refundable security deposit equal to your monthly charge, along with activation charges
Rs.50 monthly service charges applicable on all packages.
Excess usage will be charged at Rs. 0.10 per MB
For returned Desktop and Wi-Fi modems, Rs. 250 will be charged for missing adapters

Pizza Hut Fun 4 All Big Time Treat Inside The Box

noreply@blogger.com (Mohammad Osama) — Sat, 15 Dec 2012 17:23:00 +0000

Pizza Hut Fun 4 All Big Time Treat Inside The Box

Pizza Hut presents the new fun 4 all box with a medley of deliciousness! Savour Flavors of fun with your favorite Panormous Pizzas, Golden Bread Sticks, Chessy Pops and Chicken Wings, all with a 1.5 Liter Pepsi.

Rs.1199*

(Serves 4 People)

1 Panormous Pizzas
2 Golden Bread Sticks
12 Chessy Pops
6 Chicken Wings
3 Dips And 1.5 Liter Pepsi

Rs.1999*

(Serves 8 People)

2 Panormous Pizzas
4 Golden Bread Sticks
24 Chessy Pops
12 Chicken Wings
3 Dips And 1.5 Liter Pepsi

Pakistan, Iran to expedite gas, power projects

noreply@blogger.com (Mohammad Osama) — Tue, 13 Sep 2011 17:21:00 +0000

Iranian President Mahmoud Ahmadinejad, right, talks to Pakistani Prime Minister Yousuf Raza Gilani, left, in their meeting at the Iranian presidency office, in Tehran, Iran on Monday. – Photo by AP

TEHRAN: Prime Minister Yousuf Raza Gilani has agreed with Iranian President Mehmoud Ahmadinejad on Monday that the gas pipeline project and the import of 1000MW electricity from Iran should be expedited because Pakistan was facing an acute shortage of energy which was hampering its economic growth.

During a meeting at the President House, the two leaders also agreed to enhance cooperation in trade and economy and security and intelligence sharing. They agreed to allow private sectors to play a role in developing their economies and to set up a mechanism to remove bottlenecks, if any.

President Ahmadinejad said Pakistan would get priority in meeting the requirements of Iran and goods and services available in Pakistan would get preferential treatment. He said his country was interested in importing wheat, vegetables, fruits and other items from Pakistan. The two countries agreed to increase bilateral trade to $10 billion from the current $1.2 billion. Mr Gilani called for upgrading rail, road and air links to realise the immense potential of trade.

Mr Ahmadinejad said Iran, Afghanistan and Pakistan should make coordinated efforts to resolve the issue of security in the region.

Mr Gilani said two committees, one headed by foreign ministers and the other by interior ministers, would meet on a regular basis to make their borders safe and work out ways of boosting economic activities and trade.

He said there was a paradigm shift in Pakistan’s foreign policy and it wanted to forge close relations with its neighbours. Iran, he added, was one of the countries with which it would like to develop ‘very close relations’.

He said Pakistan wanted a sovereign, independent, prosperous and stable Afghanistan and supported an Afghan-led and Afghan-owned reconciliation process.

He said Pakistan had lost 5,000 soldiers and 35,000 civilians in the war against terrorism, adding that his government had made it clear to the US government that unilateral actions were not acceptable and if they had any credible information they must pass it on to Pakistan and its security forces would act on it. He said drone attacks were counter-productive and should be stopped.

The Iranian president said that outside powers kept them underdeveloped because they derived strength from their weaknesses. “They keep the countries poor and unstable.”
He called for a new world order based on humanitarian values and justice. “The world is going through transition at a very fast speed and it is imperative that innovative strategy should be evolved and implemented to offset its negative fallout on our people.”

The Iranian president agreed to consider Pakistan’s request for opening a consulate in Bandar Abbas and a cultural centre in Tehran.

He also agreed to declare Multan and Rasht (Gilan) as sister cities. He said he was looking forward to visiting Pakistan to meet his Pakistani brothers and sisters.

Prime Minister Gilani also met First Vice-President Mohammad Reza Rahimi and discussed with him the gas pipeline and electricity projects. They agreed to increase people-to-people contacts. Mr Gilani praised the Iranian government for providing $100 million for people affected by floods in Pakistan.—APP

From the Newspaper

Pakistan, Romania to boost trade

noreply@blogger.com (Mohammad Osama) — Tue, 13 Sep 2011 17:19:00 +0000

The commission will hold its meeting once in a year alternately in Islamabad and Bucharest. - File photo

ISLAMABAD, Sept 12: Pakistan and Romania have decided to set up a joint commission to explore new avenues of bilateral economic cooperation and develop proposals for cooperation between government institutions of the two countries.

Secretary Economic Affairs Division Abdul Wajid Rana and Romanian Ambassador in Pakistan Emilian Ion signed an agreement here on Monday to formally institutionalise the joint economic commission.

The commission will hold its meeting once in a year alternately in Islamabad and Bucharest.
The agreement on economic, scientific and technical cooperation also aims to promote cooperation between the two countries in the fields of industry, agriculture, forestry, energy sector, research and development, telecommunication, computing and informatics, transport, logistics, environment protection, tourism, investment promotion, cooperation in small and medium enterprises, education, healthcare and science and technology.

Emilian Ion later told ‘Dawn’ that the agreement replaced the agreement signed years ago, and this is the fresh agreement signed by Romania with Pakistan after his country became the full-fledged member of the European Union.

He said that the agreement had laid the legal foundation for encouraging private sectors of the two countries to establish joint ventures and promote bilateral trade.

The joint commission will work for identification of new development opportunities as well as establish ad hoc or permanent expert working groups and committee of both countries, he said.

From the Newspaper

Posco to invest $15m in TSML

noreply@blogger.com (Mohammad Osama) — Tue, 13 Sep 2011 17:16:00 +0000

Dr Hilal Hussain Al-Tuwairqi said that the agreement would not only further strengthen the bond among the companies but also the countries these organizations are representing. - File photo

KARACHI: Posco will invest $15 million equity in Tuwairqi Steel Mills Limited (TSML) under a joint venture accord signed on Sunday at the Sindh Chief Minister’s House for the mills project.

The agreement was signed by Dr Hilal Hussain Al-Tuwairqi, chairman, Al-Tuwairqi Holding, and Joon-Yang Chung, chairman and CEO of Posco.

The JV agreement is the result of chief minister’s visit to Korea earlier this year where he visited headquarters of major Korean business houses which included Posco, Kospo, Lotte and others.

Senior Minister Pir Mazharul Haq was of the view that the agreement would not only create new job opportunities in Pakistan but also enable transfer of technology in the industrial sector.

He expressed his satisfaction on ongoing progress of Al-Tuwairqi project in Pakistan and termed this joint venture as catalyst for industrial development in the country.

Minister of State Saleem H. Mandviwalla said collaboration of two foreign investors puts synergy into the project and would greatly help augment efforts towards forward and backward integration of the project.

POSCO in Pakistan would be a great success not only in monetary terms but its position as a technology leader in the steel sector from which Pakistan can benefit to a larger extent.

The gap between demand and supply is met through imports and it is expected that the demand for steel products would be around 18.00 million tons against the supply of around 10 million tons in the year 2015.

SBI chairman Zubair Motiwala informed that interest has been shown by leading Korean companies to invest in Thar Coal, wind energy, tourism and other infra structure projects being offered by the government on guaranteed return on investment basis.

He briefed that the steel sector offers a host of opportunities for investors, both local and foreign, as current indigenous production capacity caters to only 40pc of domestic market needs.

Dr Hilal Hussain Al-Tuwairqi said that the agreement would not only further strengthen the bond among the companies but also the countries these organizations are representing to.

Joon-Yang Chung, chairman and CEO of Posco said: “We have ambitious plans for Pakistan as part of our long term vision for the country.

From the Newspaper

Record $1.3bn remitted in August

noreply@blogger.com (Mohammad Osama) — Tue, 13 Sep 2011 17:14:00 +0000

Overseas Pakistani workers remitted $2,406.78 million in first two months (July-August) of 2011-12, showing impressive growth of 39.58 per cent. - File photo

KARACHI: Overseas Pakistanis remitted record $1.31 billion in August 2011 as against $933.06 million in same month of last year, showing a tremendous jump of 40.45 per cent, State Bank of Pakistan said on Monday.

The previous highest amount remitted in a single month by overseas Pakistani workers was recorded in June 2011 when they sent home $1.10 billion. This was sixth consecutive month when overseas Pakistani remitted over $1 billion. They had remitted $1.05 billion, $1.03 billion, $1.04 billion, $1.10 billion and 1.09 billion in March, April, May, June and July 2011 respectively.

Remittances received from all countries showed impressive growth. In August 2011, inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $309.79 million, $294.46 million, $263.58 million, $163.90 million, $134.31 million and $42.38 million respectively as compared with inflow of $205.56 million, $212.56 million, $186.82 million, $108.29 million, $108.54 million & $29.14 million respectively in August 2010. Remittances from Norway, Switzerland, Australia, Canada, Japan, other countries in the month under review amounted to $102.05 million as against $82.15 million received in August 2010.

Overseas Pakistani workers remitted $2,406.78 million in first two months (July-August) of 2011-12, showing impressive growth of 39.58 per cent or $682.54 million when compared with $1.724 billion received in same period of last fiscal year.

Inflow of remittances in July-August 2011 from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU states amounted to $601.62 million, $552.11 million, $458.45 million, $282.45 million, $250.76 million and $74.97 million respectively as compared with $400.50 million, $389.59 million, $330.68 million, $193.86 million, $209.79 million and $52.99 million respectively in July-August 2010.

Remittances from Norway, Switzerland, Australia, Canada, Japan and other countries in first two months of current fiscal year amounted to $186.42 million as against $146.83 million received in the period last fiscal year.

SBP, Ministries of Finance and Overseas Pakistanis had undertaken joint Pakistan Remittance Initiative (PRI) to facilitate flow of remittances through formal channels. It has shown remarkable progress as remittances through formal channels have beaten all previous records.
—PPI

From the Newspaper

Seven OMCs challenge suspension of licences

noreply@blogger.com (Mohammad Osama) — Tue, 13 Sep 2011 17:08:00 +0000

Ogra is expected to hold a meeting on the arrival of its acting chairman, Sabar Hussain, from abroad. - File photo

ISLAMABAD: The seven Oil-Marketing Companies (OMCs) whose licences have recently been suspended by the Oil and Gas Regulatory Authority (Ogra), have filed appeals with the regulator, describing the action inappropriate and unwarranted.

Ogra is scheduled to hold hearing of appeals next week.

Hascol has obtained a stay from Sindh High court and resumed marketing operations, almost all companies have challenged Ogra move.

On the directives of the petroleum ministry, Ogra on Sept 6 had suspended marketing licences of Askar, Hascol, Admore, OOTCL, Bakri, Byco and Total Parco.

Ogra had also imposed penalty of Rs3.0 million each for not maintaining mandatory oil storage stocks of 20 days.

In a letter to Ogra, Byco stated that the action was illegal and not sustainable in law or in fact.

The Byco letter signed by CEO of the company Amir Abbasseiy, has given references and proof of region–wise stocks and sales position of diesel and petrol and it was prepared by the Oil Companies Advisory Council on July 22.

“We have the highest storage volume for motor gasoline (petrol) and second highest storage volume of high speed diesel (diesel),” Mr Abbasseiy said.

“It is our right to claim such damages and loss as we suffer due to the implementation of your notice of Sept 6, 2011,” he added.

Ogra decided to suspend marketing activities of these companies in Punjab and Khyber-Pakhtunkhwa on the advice of Petroleum Ministry as it was the responsibility of the ministry to ensure that the OMCs have sufficient number of oil storage depots and stock of around 20 days of their average daily sales.

The Petroleum Ministry issued an advisory to Ogra after an inquiry relating to petrol and diesel shortages for several days in late June and early July 2011 across the country.

However, in response to the letters filed by the OMCs, an official of Ogra said that many oil companies were trying to hide facts as they have huge stocks based in Karachi or Southern Punjab, but that has to be spread across the country.

There is a need to ensure smooth supply of fuel in case communication links are disturbed, like in floods,” the official stated.

On the other hand, an official of an OMC said that they have been communicating with the DG Oil, and the Ministry of Petroleum over storage matter as it is their function, and the ministry should have given some warnings in this regard.

“When Ogra is not authorised to interfere in supply and storage side, how can they impose fine on OMCs for not maintaining 20 days stocks,” said another senior executive of an OMC.

Ogra is expected to hold a meeting on the arrival of its acting chairman, Sabar Hussain, from abroad.

Meanwhile, supplies would suffer as long as operations remain suspended and stake-holders stated that both the ministry and Ogra have to put their house in order by streamlining functions relating to oil and gas sector.

By Kalbe Ali | From the Newspaper

G-20 close in on imbalance indicators

noreply@blogger.com (Mohammad Osama) — Mon, 21 Feb 2011 15:50:00 +0000

French President Nicolas Sarkozy, right, meets with, from left, People's Bank of China Governor Zhou Xiaochuan, US Federal Reserve Chairman Ben Bernanke, European Central Bank President Jean-Claude Trichet and Bank of Japan Governor Masaaki Shirakawa during the opening of the G20 Finance summit at the Elysee Palace in Paris, Friday, Feb. 18, 2011. Finance chiefs of the world's dominant economies were close to agreeing on how to track dangerous imbalances in the global economy, part of the Group of 20 rich and developing nations' efforts to prevent another financial crisis. - Photo by AP.

PARIS: Finance chiefs of the world’s dominant economies are close to agreeing on how to track dangerous imbalances in the global economy, part of the Group of 20 rich and developing nations’ efforts to prevent another financial crisis.

European Union Monetary Affairs chief Olli Rehn said he was confident that there would be agreement ”to identify and address global imbalances,” but that discussions on the precise indicators were still continuing.

The talks Friday focused on coming up with a list of indicators to measure imbalances: current accounts, real effective exchange rates, currency reserves, as well as public and private debt levels, Rehn said. The current account measures trade and capital flows into and out of a country.

Germany’s Deputy Finance Minister Joerg Asmussen said a majority of countries supported sticking to those five indicators. China in particular has so far opposed targeting exchange rates as it has resisted letting its own currency, the yuan, appreciate more quickly against the dollar.

French Finance Minister Christina Lagarde warned that a failure to address imbalances ”leads us straight into the wall of another debt crisis,” while President Nicolas Sarkozy said that countries must not get complacent as big parts of the world are starting to recover from the crisis that had championed the G-20 as the new platform for global decision making.

”That would be the death of the G-20,” Sarkozy warned.

France has set an ambitious agenda for its G-20 presidency in an attempt to revive the grouping, after a meeting of heads of state in Seoul last year failed to come up with specific yardsticks for measuring imbalances. But the year’s first gathering in Paris left many of the more difficult questions to be decided at later meetings.

In their working groups Friday and Saturday, officials will not even attempt to set firm limits for when imbalances actually become dangerous. The still more difficult question of how to enforce any thresholds that leaders eventually sign up to is yet further off the agenda.

”Name and shame” policies like those used in the fight against international tax havens would be one, albeit toothless, possibility.

While there is widespread agreement that smoothing out imbalances is key to getting the global economy back in track, how that should be done is more divisive.

The mere existence of the imbalances points to vastly different growth models among the world’s biggest economies, with each arguing that changing its strategy _ whether based on exports, exchange rate controls, or the free flow of money _ would hurt its recovery.

What is clear to most economists is that sticking to the status quo could be fatal.

In the years before the financial meltdown of 2008, countries with trade surpluses plowed money into mortgage and other investments in the United States, helping escalate their value, US Federal Reserve Chairman Ben Bernanke told his G-20 colleagues. But the US failed to safely absorb money flooding in from emerging nations like China, Middle Eastern oil countries and industrialized countries in Europe, Bernanke said.

The Fed Chairman called on surplus countries like China to let their exchange rates float freely, and urged nations like the United States to narrow their budget shortfalls and save more.

”If there is no stabilizing system, then you can have situation where like today, you have a two-speed recovery and demand is not optimally allocated around the world,” Bernanke said.

Emerging markets like China and Brazil have come out of the financial crisis much stronger than some of the more traditional powers such as the U.S, Europe and Japan.

Lagarde said the talks should help G-20 members ”move from understanding to cooperating and collaborating.” Finance ministers will meet several more times this year before France’s G-20 presidency culminates with a heads of state summit in Cannes in November.

”It’s going to be quite a task, but that’s where we need to go,” Lagarde said US Treasury Secretary Timothy Geithner painted a more optimistic picture of the world economy. ”The global economy _ by almost every measure _ is in the best shape it’s been in at any time in the last two or three years,” he told the conference. ”I think there is justifiable, growing confidence.”

However, Geithner said that tighter financial regulation _ ”in a way that gives us a better balance between stability and the types of efficiency and innovation that we need from our financial markets” _ was central to sustaining that recovery.

He urged all countries to evenly implement the Basel III rules on bigger capital buffers for banks, taking forward one of the key achievements of previous G-20 meetings.