01 buSinESS B Saturday, 2 February, 2013 Banks should help unleash SMEs potential to lift economy. – APNA Bank Chairman Mian Shahid ISLAMABAD AGENCIES P RIME Minister Raja Pervez Ashraf has said that political con- sensus exists in Pak- istan on pursuing liberal economic poli- cies. He was addressing a delegation of Korean investors at Prime Minister House. He said all capital goods‚ machinery and equipment enjoy one-time exemption from customs duties under Special Eco- nomic Zone Act. Besides‚ the investors will be exempted from Income Tax for 10 years. The prime minister expressed satis- faction that bilateral trade between Pak- istan and Korea has steadily increased. However‚ he said trade between the two countries does not commensurate with the potential. He said Pakistan can provide low-cost and skilled labour to the Korean industry. He hoped that Pakistani businessmen would benefit from their Korean counter- parts and learn business management‚ techniques and processes to put Pakistan on the trajectory of sustainable economic development. Speaking on the occasion, Kim Chang Gyou, Sr. MD Lotte Chemical Corporation who was leading the delegation thanked the Prime Minister for inviting them to Prime Minister’s House. Optimum power generation: Meanwhile, Prime Minister Ashraf has di- rected officials con- cerned to ensure optimum generation of electricity. He was presid- ing over a high-level meeting at Prime Minister House to review t h e en- ergy situation in the country. The meeting was informed that the cost of electricity has increased due to its dependence on generation from oil. The meeting was told that the government has injected a sum of Rs. 1.4 Trillion in the energy sector in the last five years to sub- sidize electricity and ensure that that the common man is not burdened by rising electricity prices. The prime minister directed the Min- istry of water and Power to ensure opti- mum generation so that power supply to consumer remains unaffected. The PM also directed the Ministry of Water and Power to constantly monitor the fuel availability and stocks situa- tion in thermal power plants so that they remain operative. In this con- nection, he directed Ministry of Water and Power to closely co- ordinate with Ministry of Petro- leum and Natural Resources and Ministry of Finance. The meeting was also in- formed that an interim report on the reasons behind the power break-down of February 25 will be submitted to the Prime Min- ister on Monday. KARACHI ISMAIL DILAWAR To lure the TRECH holding members to- wards market making the Karachi Stock Exchange (KSE) has announced a cash reward ranging from Rs 10,000 to Rs 100,000 to be paid by the end of every month to the best performing market makers. “The Exchange is now offering a fi- nancial attractive incentive scheme for a limited time,” said the front regulators at KSE in a notice while inviting the all TRECH holding members to apply for becoming KSE’s designated market makers. The KSE invited applications from the market participants and TREC hold- ing members for becoming market mak- ers in any of the eligible instruments in Stock Index or Cash Settled Single Stock Futures. Under the Exchange’s incentive scheme cash rewards would be paid to the KSE-approved market makers on the basis of their Trade Execution Commit- ment (TEC) implying the number of open contracts at the end of every day during the month. The least number of unique clients or UINs set ranges from 10 to 100 for a month. The market makers executing 90 to 99 trade commitments with 10 clients or UINs would get Rs 10,000 while those ensuring 900 and above TECs would be rewarded with Rs 100,000. “This incentive scheme is limited and is offered on a first come first serve basis for each of Single Stock Cash Set- tled Futures Scrip or the Index Futures,” the KSE notice said. Adding during the tenure the scheme, the counter already chosen and activated by a KSE approved market maker would not be available to any other TREC holder under the scheme in question for the duration of scheme. Enticing the members to apply for the market making job, the KSE under- lined a number of benefits the members would be getting out of becoming the market makers. “This presents a great opportunity to TREC holders to broaden their product range and client base to generate addi- tional brokerage income beyond tradi- tional business,” it said. It said one of the basic benefits for market maker was that the Exchange would forgo its trans- action fee (LAGA) for it besides passing on the transaction fee obtained from the counterpart to the market maker for an initial period of time, e.g. 1 year. “Besides the direct monetary benefit from the above, the market maker also enables his clients to hedge or take po- sitions (long + short) in the Single Stock Cash Settled and Stock Index Future Contracts,” it added. Dwelling on why the KSE needed market makers, the Exchange said the activation of market makers would gen- erate liquidity and depth for the bourse thereby facilitating smooth entry and exit while optimizing impact cost. Setting March 20 as a deadline for submission of the Expressions of Inter- est, the KSE also attached with the no- tice a list of the eligible scrips for market making in the Cash Settled Fu- tures that includes Fauji Fertilizer, OGCL, Pakistan Oilfield Limited, Pak Petroleum, MCB Bank, Engro, Lucky Cement, DG Khan Cement, PSO, NBP, Engro Foods, Hub Power, Attock Refin- ery, Nishat Mills, UBL, FFBL, FA- TIMA, PTC, Bank Al-Habib, Bank Al-Falah, Adamjee Insurance, Arif Habib Corp, KAPCO, Askari Bank, Da- wood Hercules, FCCL, LOTPTA, CHCC, PAKRI, NCL, NCPL, NPL and NETSOL. The eligible indices listed include KSE-30, BKTI and OGTI. KSE offers monthly cash rewards for best performing market makers increased raw material supply boosts Psm output to 38pc KARACHI: The uninterrupted arrival of raw material has increased the pro- duction of Pakistan Steel Mills (PSM) to 38 percent, said a spokesman of PSM. He said the coal and iron ore ships created an improved stock posi- tion of PSM raw materials. “This re- sulted in a good increase in production activity of PSM as it crossed 30 per- cent production and all praise to Allah (SWT) yesterday (Feb 28) the PSM achieved production at 37.7%,” he said. The PSM management is trying to reach at 60% production level in next few months if the required facili- ties were provided on timely. “The PSM ensures to become a profitable entity by the grace of Allah (SWT) within a few months,” the spokesman said. STAFF REPORT Pol removed from DFc, csF contract trading list KARACHI: The front regulators at Karachi Stock Exchange (KSE) have re- moved the Pakistan Oilfiled Limited (POL) from the list of eligible securities for contract trading under Deliverable Fu- tures Contract (DFC) and Cash-Settled Futures (CSF) markets. The oil giant has attracted the ire of regu- lators for its failure to meet the uniform criteria under which the firms listed on DFC and CSF markets must maintain on average 0.25 percent of the total average volume on the ready market of 100 se- lected scrips. “Please note that (the) above security would be excluded from list of eligible se- curities for trading in DFC and CSF mar- kets,” said a KSE notice issued here Friday. The POL’s removal would take effect from the opening of DFC of June 2013 (Dec-June 2013) and CSF of July 2013 (CSF July 2013) contract, the notice said. STAFF REPORT Ptcl launches smart tV app for eVo customers ISLAMABAD: Pakistan Telecommunica- tion Company Limited (PTCL) has launched a standalone application enabling its EVO customers to access digital televi- sion service on their PCs, laptops and smartphones. The unique service of PTCL Smart TV PC application has brought Pak- istan in the list of a few countries across the globe, where digital TV services are acces- sible on laptops, PCs and Smartphones. With this PTCL offer, Smart TVPC applica- tion allows customers to be more interactive and more in control with their TV service as compared to conventional TV broadcast or cable TV. The PTCL Smart TV application enables its viewers to watch content of last 7 Days of the available 12 TV channels. It also allows the viewers to record the TV programs on their local storage. Omar Khalid, PTCL Executive Vice President (EVP) Wireless Business, said “PTCL Smart TV application will enable its EVO customers to experience multi-screen view- ing and uninterruptable rich live content on their PC screens.” “Customers can access 12 TV channels through EVO Wingle, EVO Dongle, EVO Nitro, EVO Cloud and EVO Tab” Omar added. NNI KARACHI STAFF REPORT Ever since hitting rock bottom in FY11, the country’s cement sector has witnessed a reversal in fortunes, said market analysts. “Improved margin scenario backed by higher retention prices and lower coal cost coupled with reduced interest rate environment reflected positively on sector’s profitability,” said the ana- lyst at Tolpine Research. During 1HFY13, they said, the sector posted profit growth of 209% to Rs16.4bn as against Rs5.3bn dur- ing the same period last year. Our sample includes 15 companies that represents 95% of listed cement companies’ market cap. During the period under review, cement sector posted topline of Rs82.6bn as against Rs68.0bn in the same period last year, depicting growth of 21%. The prime growth driver re- mained 17% escalation in price of the commodity as estimated net retention prices rose to Rs310 per bag verses Rs266 in 1HFY12. In addition, 4% volumetric variance also played its due role with high margin domestic dispatches rising by 10%. Exports on the other hand declined by 7%. Support to profitability also came from 24% decline in coal prices that account 40% for sector’s production cost. Subsequently, gross margins improved by significant 9pps to 36% in 1HFY13 as against 27% in same period last year. Lastly, reduced interest rate also boded well for sector’s profitability. As 450bps reduction in the policy rate by central bank from June 2011 culminated into 32% reduction in the financial charges of the sector to Rs4.2bn. Reduction in financial charges coupled with follow through impact of topline growth has strengthened sector’s interest cover- age ratio to 6x. Among all participants, big players like DGKC, BWCL and LUCK stood out, having cumulative share of 57% of sector’s bottom- line. Profitably of DGKC grew by 128% or Rs1.6bn, while BWCL post bottom-line growth of 202% or Rs1.4bn and LUCK’s profits were up by 42% or Rs1.2bn. However, MLCF and FCCL remained the prime performers successfully turned their respective losses of Rs223mn and Rs50mn during same previous year into profits of Rs1.4bn and Rs0.9bn respectively during 1HFY13. Cement profits tripled in first half of FY13 Political consensus on Pursuing liberal economic Policies: Pm AShRAf diRecTS MiniSTRY of WATeR And PoWeR To conSTAnTlY MoniToR fUel AVAilAbiliTY And STockS SiTUATion in TheRMAl PoWeR PlAnTS So ThAT TheY ReMAin oPeRATiVe PRO 02-03-2013_Layout 1 3/2/2013 12:54 AM Page 1