Morning Buzz for July 16, 2012 – MR Securities

Karachi, July 16, 2012 (PPI-OT): Iraq initials gas exploration deal with PPL
Iraq initialed a gas exploration deal with Pakistan Petroleum on Sunday, a senior official said, the first of three successive contracts aimed at increasing the country’s oil and gas reserves.

OGRA notifies increase in petroleum, CNG prices
Oil and Gas Regulatory Authority (OGRA) has issued a notification regarding increase in petroleum and CNG prices which will be effective after 12 am tonight.

Outlook negative: Moody’s downgrades bond ratings to Caa1
Moody’s Investors Service Friday downgraded Pakistan’s foreign-and local-currency bond ratings by one notch to Caa1 from B3. The short-term ratings remain unchanged at Not-Prime. The outlook is negative. The main driver of Moody’s downgrade is the increasing strain on the country’s external payments position as a result of a rising trade deficit and decline in capital inflows. Moreover, weak government finances, structural inflationary pressures and domestic political uncertainties are adding to Pakistan’s external vulnerabilities and debt sustainability, thereby compounding the pressure on sovereign creditworthiness.

Pakistan ranked No 4 by Banker Magazine UK
The Banker Magazine of UK which is a flagship Global Financial Intelligence magazine of Financial Times Group of UK has announced rankings of “Top 1000 World Banks 2012″. The UK based magazine has also disclosed the ranking of different countries.

SBP allows Oman Bank to change name
SBP is pleased to notify that the name of “Oman International Bank S.A.O.G.” has been changed to “HSBC Bank Oman S.A.O.G.” with effect from June 03, 2012.

Government plans to spend Rs38.7 billion for less-developed regions this year
As per data, an amount of Rs33.2 billion has been earmarked as block allocation for development activities in special areas while administrations of areas concerned have been authorized to allocate funds to respective projects according to their own priorities.

‘Pakistan-Iran can increase trade up to $10 billion; Trade talks begin today’
Iran trades with a large numbers of countries but Iran wants to improve its bilateral trade ties with Pakistan further, as Iran and Pakistan can increase trade up to 10 billion dollar.

Fauji Fertilizer’s profit after tax declines
The profit after tax of Fauji Fertilizer Bin Qasim Limited has declined to Rs643.860 million in the half year period ended June 30, 2012 as compared to Rs3,513.626 million earned in the corresponding period in 2011.

Combined Efficiency Index: Fesco emerges on top of all Discos
Fesco tops company-wise Combined Efficiency Index (CEI) because of its minimum losses and best recovery ratio for the year 2011-12, said Chairman of Fesco’s Board of Directors Nadeem Aftab Sindhu.

Additional 70mmcfd comes into SNGPL system
An additional 70 MMCFD gas has come into the system of Sui-Northern Gas Pipeline Limited (SNGPL) as gas supply from Manzalai gas field was restored after completion of the Annual Turn-Around (ATA) of field.

Move firmly towards fair election, PM: 72mw hydropower project inaugurated
Prime Minister Raja Pervez Ashraf on Saturday urged the opposition parties to shun differences and move towards holding free, fair and transparent election in the country.

CNG load management in violation of agreement
Gas load shedding for CNG has been increased by 8 hours in violation of an agreement between the All Pakistan CNG Association (APCNGA) and Ministry of Petroleum, sources reveled to this correspondent.

NTDC calls IPPs’ meeting to resolve issue: SC seeks report on outstanding dues
The National Transmission and Despatch Company (NTDC) on the directives of the Supreme Court has called a meeting of eight Independent Power Producers (IPPs) on Monday to resolve their issue of outstanding dues before July 25 so that the government and NTDC may report to the Apex Court.

Gas allocation policy: plan to accord fourth priority to captive power plants shelved
The Ministry of Petroleum is learnt to have shelved its plan to place Captive Power Plants (CPPs) at fourth priority order in gas allocation because of pressure from the top.

Fuel supplies to Nato forces: dispute over new rates hits resumption
Fuel supplies to the Nato forces in Afghanistan through Pakistan’s land routes have delayed after contractors disputed over the fixation of new rates for the long-halted shipments of oil.

National Assembly forms panel to probe domestic, foreign loans
The National Assembly on Thursday decided to constitute a Special Parliamentary Committee to look into necessity and utilization of domestic and foreign loans acquired by Pakistan since 1985.

Withholding tax not applicable on all property transactions
The 0.5 percent adjustable withholding tax under section 236C of the Income Tax Ordinance 2001 on sellers of immovable property would not be applicable on property transactions where the Capital Gains Tax (CGT) is not collected under Finance Act 2012.

Prices of most essential items holding steady
Prices of most of the essential kitchen items remained stable sans any significant change last week, as compared to the preceding week, reveals a survey.